CAFR Year End 09-30-2008 COLLIER COUNTY, FLORIDA
Comprehensive Annual Financial Report
Year Ended September 30, 2008
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The Comprehensive Annual Financial Report (CAFR) is prepared each year by the Clerk of the
Circuit Court on behalf of Collier County government.
On the cover:
The new Collier County courthouse annex nearing completion.
Each constitutional office is represented in the insert (from top to bottom):
Clerk of Courts - main courthouse entrance
Tax Collector's new Wilson Boulevard location
Sheriff's Office star
Property Appraiser's sign at main office location
Office of Supervisor of Elections
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2008
COLLIER COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
THOMAS K. HENNING, CHAIRMAN
DONNA L. FIALA, VICE-CHAIRMAN
JAMES N. COLETTA, Jr.
FRED W. COYLE
FRANK HALAS
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, 2008
TABLE OF CONTENTS
INTRODUCTORY SECTION
Transmittal Letter.." __........ ..............,
Certificate of Achievement ..............
Page
..1
...xxv
HNANCIAL SECTION
Report ofIndcpendent Certified Public i\ccOLUltants
...~..~...~.~.~......~~. 1
l"fanagemcnt's DIscussion and AnalysIs (Unaudited) .
.................... 3
B,\SIC FINANCIAl. ST'ITEME0:TS
Statement ofNe! i\ssctS...........,........ ............... .....'... ,......."...,.....,.................... 14
Statement of ,Activities. ........' .......... ........... __",,"'" ........"..... ................ ..................'".... .......... . 16
Balance Sheet - Covernmental FW1ds" ' ",.'" ., .,..,.". ,.".".....". ,.""..,..",.,.. "...,.,. ,.,.,..".,..,...,..".,. ,."....... 18
Reconciliation of the Balance Sheet of Governmental 1'\U1ds to the Statement of !'.jet ,:>"ssets ................ "'..,.....,...,...,.." .......__"..,,, 19
Statement of Revenues, Expenditures and Changes 111 Fund Balances ,- (;ovcmmcntal Funds.. ."..",,,. ..".....".".............,.. ..,20
Reconciliation of the Statement of Revenues, Expemlitures and Changes in f'-und Balances of Governmental
Funds to the Statement of Activ1ties """ ' .. , ".".".."". ,,,.,,,,. """'"'''''''''''''' '"""",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. ""."" ,,,,,,,. ,,21
General FLU1d Slatement of Revenues, Expenditun:s and Changes in Fund Balances -- Budget and Actual (Non-GA._i\P)."......". 22
Community Redevelopment Statement of Rcvcnul's, Expentlitures and Changes in Fund Balances-
Budget and Actual (Non-ChAP)................ ....................... ............ ....................
Statement of~el Assets - Proprietary Funds.. ....".".".. "."",,,,,,,,,, ....... ,,,., ..".""
Statement of Revenues, Expenses and Changes Ul l'"tllld Net ;-\ssets - Propnelary 1."tmds
Statement of Cash Hows - Proprietary Funds. """".." ..",,,,,,
Statement of FlduClary Assets and Liabil1ties - :\gency Funds "" ,..",,,. .
Notes to the Financial Statements... ""....". . .. ., .,.".
Required Supplementary Information." ..""".., ..""".."""
................................25
......... .....2(,
..28
""",,,,,,,' ,29
31
.33
'" 78
COiV1l3ININC ,'1ND INDIVIDUAL FUND FIK'INCLII. :'l\TEMENTS.
Nonmajor Governmental Funds
Combil11ng Balance Sheet ' , ",,'.....','....'... ....... .......".. .."""". """. , . ....., ..."....""".."",,,,,,,,,..,,,,,,.,,,,.,,,,,,,,,,,,...,,,,,,,,,,,,,...... 82
Combining Statement of Revenues, Expenwtures and Changes Il1 Fund Balances ....."...."........".." .....".."...".""""."""", 90
Combining Schedule of Re-..'enucs, Expenditures and Changt's In FW1d Balances - Budget and A.ctual (Non-Ci-\AP) ....."..............98
Nonmajor Enterprise F\mds
Combining Statement of Net j-\ssets. .". . "".."" " "'''' " . ."... "" '" " """".
Combining Statement of Revenues, Expenses and Changes Il1 Fuml ~et ;\ssets
Combining Statement of Cash Flows.. "".."..,'
"............ .......... 122
............. ........... .......... 123
.......... ...124
intemal Service Funds
Combining Statement of ;-...Jet ,\ssets ....... ..."..... ..'"..",,,..,, .."."......
Combuung Statement of Revenues, Expenses and Changes in Fund '\et
Combining Statement of Cash Flows" ",..,...,,'
:\ssets ...
128
129
130
Fiduciary FW1ds
Combining Statement of Fiduciary ,Assets and! Jabilitles.
Combining Statement of Changes lt1 :\ssets and l.iabilities
134
..135
Component Umts
Combining Statement of Net .\ssets """....".."." ...........
Combining Statement of Revenues, f':xpcnditun.;s and Changes Ul i\et .\ssets.
,.....,..,..."..,...".'...,...,.....,...,..,.."...,..,..,.."........,
138
....139
COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
T ABLE OF CONTENTS - CONTINUED
STATISTICAL SECTION (UNAUDITED)
Net Asset s by Component........ ..,........,.........."..,..,........ '...,......... __........ ..,.... ....... ....,........,.....,................... ......"......,............ ........... ........ .......... .,.. 142
Change ill Net i\.ssets '.............. ... ......, ... ...............".............. .... ......,...,......,..........,.. ..,..................,.. .....................................,............. .........,........... 143
Governmental Activities Tax Revenues by Source ............'...'............................,........,............ ...,.................__.,.............. .................................145
Fnnd Balances of Governmental Funds..,..,...., '...'..............,....,..... ............ ......,..... ...............,....".............. ......... ......,........... ..,............ '.............. 146
Changes in Fund Balances of Govermnental FWlds ,........,...,..............,...,.."...................,...... ....,..............'...,...........,....,..........,..................... 147
j\.ssessed Value and Estimated Actual Value ofTaxablc Property.......,......................................................................................................... 148
Property Tax Rates -- All Direct and Overlapping Governments .........."....................................................................................................., 149
PrinCIpal Tax Payers CO\.U1ty- Wide..".........,..,...,..........,... ,..............,..,... .....,..,. ...,..'.... ,.......,........,............................... ......,............... ......... ..,......, 150
Property 'fax Levies and Collectiuns..................,.....,......,...."......... ............................... .......................................,.. ...................,......................... 151
Ratios of Outstanding Debt by Type ....,..."....,............,...........,..................".........,..............,...... ......................................................................., 152
Ratios of General Bonded Debt Outstanding,.....,.....,........".......................................... ......"...,..."........".......... ,........ ,...................................., 153
Legal Debt l\1argin Infonnation ,........ .."...,... ...................... ... ,...,'...'...,............... ....... ......,....,. .....,.........,............"'.,,............................................ 154
Direct and Overlapping Governmental Activities Debt ...',............................................................,................................................................. 154
Pledged-Revenue Coverage",.. ....,.. ..,.., ..... ... ,.. ................... ...., ,...., ,..,'.. ,........,.....,......,......,...., '., '..", ,.. ,.. ,.. ,... ,.....,.......... .......... ,......... ..... ... ... ........'. 155
Demographic and EcononUc Stanstics ........,..................................,..........,'..... ............... ........ ..................."..,....,............."............ ..................... 156
Principal Etnployers ......,............................', ....,...............,........,........................"......'..... ........".......,............,....................................................,..... 1 57
Full-Time Equivalent CO\.U1ty Employees by Function ....,..,...........................................,,,.,,........................................................................... 158
Operating Indicators by Function,...,.......,........ ,.,...............,."..............,.,.., ..,...............,......,................ .......................,.........".....'.........,.........,., 159
Capital Asset Statisncs by Function,...,.......,....."",. .............,......,..........,.....,.,.... ........,...'...... '.....,.....,..,..". ......,...,.......,......,............".....,......".',.. 160
SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS AND STATE PROJECTS
Report on Internal Control Over Finanoal Reporting and on Compliance and Other Matters
Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards...... ,..,...........,........163
Report of Independent Certified Public Accountants on Compliance \\lith Requirements Applicable to Each
Major Federal Program and State Project and on lnternal Control Over Compliance in Accordance With Ohm
Circular A-133, Section 215.97, Florida Statutes, and Chapter 10,550, Rules q! the AuditorCeneral......................................................... 165
Schedule of Expenditures of Pederal Awards and State Projects".....".........................""...."".......".....................................................,.......168
Notes to the Schedule of Expenditures of Federal Awards and State Projects.................................,.................".......................................177
Schedule of Findings and Questioned Costs .....,................,.....,...,...........,..,..,....,..................................................,......................,......................180
Schedule of Prior A ucitt Fincitngs..,..... ,....,...................,...."......,....,............,..,.............,.............'..'................................................"......................, 1 95
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Dwight E. Brock
Clerk of Courts
'Muptyof 0611ier
CLERK OF TIIEGIRCqIT COURT
COLLIER COUNTY qOURT~USE
3301 TAMIAMI T/l.AIL EAJ:;T
P.O. BOX 4 t$044 '.
NAPLES, FLORIDA'~IOl-30~4
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Clerk of Courts
Accountant
Auditor
Custodian of County Funds
March 10, 2009
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, 2008. 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, in conformance with the court's order, included as pages vii to xxii of this
transmittal letter.
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, 2008, 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.
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.
..~~_._-
_._~_u..._"__.._,_~__"_
_.~---
Fax (239) 252-2755
Email: collierclerk@collierclerk.com
Phone (239) 252-2646
Website: www.collierclcrk.com
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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 electcd 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, cmcrgency management,
transportation scrvices, 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. Budget workshops are conducted during
June with the Board of County Commissioners to form a proposed budget. 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 then held in September to allow taxpayer input and to
adopt the budget as final.
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, cxclusive of new construction) in accordance with property tax reform
measures adopted during special legislative session. The State's special legislative
session also included a constitutional amendment to be voted on in early 2008. 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 ftilure assessment increases for non-homesteaded property starting in 2009
and a new tangible equipment exemption of $25.000.
ECONOMIC CONDITION AND OUTLOOK
Collier County, thc state's largest county at 2,026 square miles. is on the southwcst coast
of Florida. dircctly wcst of Miami. With a 2008 population of 33?,854 (a 58 pcrcent
increase over the ] 998 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, Jishing. ranching and forestry with a growing
services economy and an emerging high technology sector. Gulf of Mexico beaches and
11
the Everglades National Park are important attractions to this area. The park comprises a
substantial portion of the County.
Taxable property market valuation for fiscal year 2008 totaled just over $82.5 billion, or a
very high $248,051 per capita. Unemployment levels in recent years approximate, or are
slightly below those of the state. The 2008 County unemployment rate stood at 5.5%.
Income levels are high, with a per capita personal income of $57,446, which is the
highest in Southwest Florida.
The County's tinancial operations are managed with recurring General Fund operating
surpluses contributing to historically strong cash and General Fund balance positions.
This trend is expected to be negatively impacted by legislation involving property taxes
and a general slowing of the economy. The County's millage for General Fund
operations in tiscal year 2008 was at only 31 % of the statutory 10 mill limit.
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 -09 will continue to be road
construction, utility water, wastewater, solid waste improvements and government
facilities, including libraries. Funding for road construction will be provided by
remaining unspent Road Construction Fund monies and impact fees. Water and
wastewater projects will be funded by unspent bond proceeds and State Revolving Fund
Loan reimbursements. The remaining projects are a mix of advance funding and short
term borrowings.
LONG TERM FINANCIAL PLANNING
Long term tinancial 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 (CIE). The CIE is a planning document that identifies
public facilities that will be required during the next five or more years. The Capital
Improvement Element is the foundation of Collier County's annual Capital Improvement
Program (CIP). Included in the County's current CIP for fiscal years 2009-2013 are
approximately $336 million for transportation projects and approximately $133 million
for water and wastewater facilities and various replacement and rehabilitation projects.
Solid waste projects of approximately $11 million are planned, as well as $48 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.
III
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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 lar FY -2009 as the Board of County Commissioners adopted a millage
neutral policy. The roll back calculation for all future tiseal 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
lar the last tive 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 soli. however there continues to be activity in
the high end rcal cstate market. Historically. Collicr County's cconomy has provcn to be
better insulated trom 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 MANAGEMEJVT
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.
Authorized investments include certificates of deposit. the Local Goverrunent Funds
Surplus Trust Fund, U.S. treasury securities. U.S. agency securities, commercial paper
and bankcrs' acceptances. The weighted average maturity of the total managed portfolio
was 1.42 years as of September 30, 2008. The average yield for fiscal year 2008 was
4.77%. Changes in the fair value of investments are recorded separately trom interest
income in the tinancial statements,
A WARDS
GFOA Certificate a/Achievement.
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certilicate of Achievement tar Excellence in Financial Reporting to Collier
County, Florida l(lr its Comprehensive Annual Financial Report (CAFR) far the tiscal
year ended September 30. 1007. The Certificate of Achievement is a prestigious national
award. rccognizing conformance with the highest standards for preparation of state and
local governmcnt 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
IV
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-two years, from fiscal year 1986 to 2007. 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 I, 2007. 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 nineteen 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 1,2007. 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 A ward is valid for a
period of one year only. The Clerk's Office has received this award for the last seven
consecuti ve years.
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, Maryalice Bailey, Edith Manuel,
CPA, Precious Corrado, June Wathen, Liz Willis, Desiree Gardine, 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 statf 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 atTairs of the County.
v
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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 e39) 530-
6299,
Respectfully,
/
,
,
,
. , I ' -'~'- """- t
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Dwig E. Brock
Clerk of the Circuit Court
Chief Financial Otlicer
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CrystaJIK. Kinzel
Deputy Clerk
Director ofFli1ance and Accounting
!
/
. /
/ / /" /
, .
,
.' /
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Derek M. Johnssen. CPA
Deputy Clerk
General Accounting Manager
VI
IN THE CIRCUIT COURT FOR THE TWENTIETH JUDICIAL c~curi
IN AND FOR COLLIER COUNTY FLORIDA .
CIVIL ACTION r "':
.-..
"
"
,
,.
I '
"
OJ
.
.
DWIGHT E. BROCK, CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
FLORIDA,
i
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"
Plaintiff,
v.
'.
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, AS
EX-OFFICIO TIlE GOVERNING BOARD OF THE
OCHOPEE AREA FIRE CONTROL
AND EMERGENCY MEDICAL CARE
SPECIAL TAXING DISTRICT alk/a THE
CHOPEE FIRE DISTRICT, a Municipal
Services Taxing Unit pursuant to
Section 12S.01(IXq), F.S.;
LINDA T. SWISHER and PAUL WILSON,
Case No. 04-94J-CA
.'
.,
Defendants.
I
BOARD OF COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, on behalf
of COLLIER COUNTY, a Political Sub-
division of the State of Florida,
Petitioner,
Consolidated with
Case No: OS-9S3-CA
v.
.
,
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DWIGHT E. BROCK, CLERK OF THE .'
CIRCUIT COURT OF COLLIER COUNTY, I,,';'J -.' <J
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FLORIDA, ,.~ r-
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Respondent. :;r. " ':1"11
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PAUL WILSON,
Petitioner,
Consolidated with
Case No.: OS-lS06-CA
v.
DWIGHT E. BROCK. CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
Respondent
I
THIS consolidated action was heard on motions tiled and heard before the Court. For the
reasons set forth in the attached Orders, which Orders are incorporated by reference herein, the Court
hereby :
ORDERS AND ADJUDGES:
I. Judgment is hereby rendered in favorofPetitioners, BOARD OF COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, ON BEHALF OF COLLlER COUNTY COLLIER COUNTY
and PAUL WILSON, and against Defendant, DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY, on the Complaints for Writs of Quo Warranto in Case Nos. 05-
9S3-CA and OS-I S06-CA. ,
2. Judgment is hereby rendered in favor of Defendants, BOARD OF COUNTY
COMMrSSIONERS OF COLUER COUNTY, FLORIDA, ETC., LINDA T. swrSHER and PAUL
WILSON, ET AL., on the Complaint for Declaratory Relief in Case No. 04-94 I-CA. Defendants in
Case No. 04-941-CA shall go hence without day.
I The detennination in favor of Petitioner Collier County on its Complaint for Writ of
Quo Warranto controls the outcome of the Complaint for Writ of Quo Warranto filed by
Petitioner Paul Wilson, as a matter oflaw.
V111
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"
,
.
,
3, The Court reserves jurisdiclion 10 determine entitlemenllo and the amount of costs
and attorneys' rees upon proper motion.
DONE AND ORDERED in Fl. Myers, Florida on this IJtday of Stlr/I"J",
,
2007.
(
~'l
~
HONORABLE MICHAEL T. MCHUGH
Copies furnished 10:
J..qadlDe WIU_ Hubbard, Esq.
Office orthe County Anorney
3301 East Tamiami Trail, 8th Floor
Napl.., FL 341 ) 2.
Counselfor Board ofCommw;onerJ
of Collier COlInI)' In Case Nos. OJ-9JJ-CA., CA.-OJ-
IJ06 andOf-941-CA.
AuChony P. Plr.., Jr., Esq.
Sle..a V. BI.aat, Esq.
Woodward, Pires ok Lombardo, P.A.
3200 Tamlami Trail N, Sulle 200
Napl.., PL 341 03
CoutUelfo, Dwight E. B,ock
Clerk ofth. Ci,cu;' Cou,' of Collier County
in Case No. 04-941-CA.
Theod.re L. Tripp, Jr., Esq.
Girvin ok Tripp, P.A.
Post Office Drawer 2040
Port Myers, Florida 33902
Co-Cou",e/f'" BtHUd of Co mmissi one"
of Collier COIInty In Cme Nos. OJ-9JJ-CA.. CA.-OJ-
/ J06 and 04-941-CA. ondlo, Paul Wilson /n Cme No.
OJ-/J06-CA.
David P. Aekertllan, Esq.
Glory P. R.... Esq.
ActemulIl. Link & Senol'l'. P.A.
222 Lakeviow Avenue, Suite 1250
West Palm Beach, PL 33401
Coumel I'" Dwight E. B,ock
Clerk ofth. Circuit Cou,' olCollier County
In Cas" NUl, OJ.9JJ-CA. and CA-OJ-I J06
AD3932. WPD
IX
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-
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"
.'
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY, FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
"5.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
05-1506-CA
,
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON.
o ~~~n~~
~UG 2 7 2007
"
Defendants.
/
ORDER GRANTING, IN PART. AND DENYING, IN PART, THE "CLERK'S MOTION
FOR PARTIAL SUMMARY JUDGMENT REGARDING UNDISPUTED ROLES OF
THE CLERK" AND GRANlING "COLLIER COUNTY'S CROSS-MQIION FOR
SUI\<JMARY JUDGMJi;NT ON THIt UNDISWED ROLES OF
THE CLERK OF COURTS"
THIS MA TIER comes before the Court on the "Clerk's Motion for Partial Summary
Judgment Regarding Undisputed Roles of the Clerk" filed June 11,2007 and "Collier County's
Cross-Motion for Summary Judgment on the t;ndisputed Roles of the Clerk of Courts" filed
August 2, 2007. Both motions were filed pursuant to Florida Rule of Civil Procedure 1.510,
After hearing each motion and argument of counsel, carefully reviewing the motions and the
attachments, and examining the applicahle Jaw, the Court finds as follows:
1. In its complaint, the Clerk, in part, seeks a declaratory judgment as to the general
rights and duties of the Clerk of the Courts,
x
,,' "
2. There are no disputed material facts as it relates to a determination of the
general rights and duties of the Clerk of the Courts. Such a determination is an issue of law.
3. Both the Clerk and the County are seeking summary judgment as it relates to the
general rights and duties of the Clerk of the Courts. Specifically, the parties are seeking a
determination as to whether:
.'
"
(a) the Clerk is the auditor, recorder, and custodian of all County funds;
(b) the Clerk is the accountant for the Board of County Commissioners;
r:
(c) the Clerk has a duty to determine the legality of all County expenditures
before issuing a warrant for payment; and
,;:
.
(d) tbe Clerk'has a duty to prepare and certify the accuracy of the County's
financial statements, including the annual management representation letter
submitted by the County to its outside auditors.
4. Both the Clerk and the County agree and, as a matter ofJaw, th~ Court finds that
(a) The Clerk is the audilor, recorder and custodian of aU County funds. Article
VIII (1 led); Machua CounlY v. Powers. 351 So, 2d 32, 43 (Fla. 1977).
(b) The Clerk is the accountant for the Board of County Commissioners. Fla.
Stat. ~ 125.17.
(c) The Clerk has the duty to determine the legality of all County expenditures
before issuing a warrant for payment. Fla. Stat. ~ 129.09; Alacbua CountD:',
Powers, 351 So. 2d 32, 36 (Fla. 1977).
5. However, the parties dispute the fourth issue of whether "the Clerk has a duty to
prepare and certify the accuracy of the County's financial statements, including the annual
management representation letter submitted by the County to its outside auditors[.]"
6. It is an undisputed fact that the Clerk has historically prepared the County's
financial statements and annually signed a management representation letter that the County
would submit to its outside auditors. It is further undisputed that the Board of County
Commissioners enacted Resolution 06-109 for the 2005 audit, directing that "as ex-offico clerk
Xl
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and accountant to the Collier County Board ofCaunty Commissioners... [the Clerk] provide a
management representation letter in cOlUlection with the annual audit of the County's records
performed by KPMG, LLP[.]" However, it is a disputed issue of law as to whether the Clerk has
a legal obligation to perform these duties.
7. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or incoasistency, this Court will not offer its own independent interpretation of the
'"
.
':
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
.
to find any ambiguity or inconsistency.
8. The Court finds that the Board of County Commissioners' powers, as granted by
statule, are inclusive and encompass all tasks necessary to effectively perform its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Court finds no grant of authority to the
Clerk that gives him the duty of preparing and certifying the accuracy of the County's financial
statements, including the annual management representation letter.
9. The Court acknowledges that multiple parties may have the authority to perform
duties; however, absent a grant of power from the Florida Constitution or general law, the Clerk
does not have the duty to prepare and certify the County's financial statements, unless these tasks
are delegated to him by the Board of County Commissioners, As stated above, the Court finds
no grant of authority to the Clerk from the Florida Constitution or general law.
10. Accordingly, the Court finds that the Clerk's authority to prepare financial
statements on behalf of the County is not derived from a speci fie grant of constitutional or
statutory power, but rather is derived from a delegation of authority by the Board of County
..
Xl!
,
.
.
Commissioners. The scope of this delegation is within the discretion of the Board of Count)'
Commissioners, and may be granted, removed or modified.
11. ln arriving at this finding, the Court has carefully considered Articles II & VIII of the
Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. 99 11.45, 116.D7, 125.01, 125.17, 125.71, 125.74, 136.05, 136.08,218.32,218.33,218.39.
.
"
In addition, the Court has considered applicable case law presented by the parties, including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
.
.'
,
ORDERED AND ADJUDGED that:
"
"
1. The Clerk's motion is granted in part and denied in part, as set forth herein.
,
2. The County's cross motion is granted.
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this 2'1"'"'
day of
J...\J."."...r
, 2007.
(
-
Cv.L
Michael T. McHugh
Circuit Judge
//
.
CERTjFICAU! OF S,gRVICE
I HEREBY CERTIFY that a true and correct copy of the abo-ye order has been furnished
to David P. Ackerman, Ackerman, Link, & SartOf)', P.A., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite J250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Hannon Turner Bldg. 8th Floor,
X111
,_.'----~ "
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Naples, Florida 341 J 7; Theodore L. Tripp, Jr., Garvin & Tripp, P.A., Attorne)' for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(XI), 1700 Monroe Street, Ft. Myers. Florida3390l, this ~ day of
,2007.
Case Numbers: 04-941-CA, Consolidated wilh 05-953-CA, and 05-1506-CA
Order Granling, in Part, and Den)'ing, in Pan, the "Clerk's Motion for Partial Summary Judgment
Regarding Undisputed Roles of the Clerk" and Granting "Collier County's Cross-Motion for Summary
Judgment on Ihe Undisputed Roles of the Clerk of Courts"
m
~ ' . "<l._n . ..
"
.
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY. FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
vs.
Case No. 04-941-CA
Consolidated with
Case Nos. OS-953-CA
05- IS06-CA
",
i',
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AlKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
.',I!~ _? 7 2:JJ7
..........
;'!'
,,',
Defendants.
~~[gD~[g
I
;'"",'
"
,
'"
I
ORDJj:)l GRANTING "COLLI~R COUNTY'S MOTION FOR SUMMoWY
JUDGMENT AS TO CASE NUMBER 05-953-CA AND THE ISSUANCE OF A WRIT IN
QUO WARRANTO;'
THIS MA'ITER comes before the Court on "Collier County's Motion for Summary
Judgment as to Case Number 05-953-CA and the Issuance of a Writ in Quo Warranto" filed
June 11. 2007. The motion was filed pursuant to Florida Rule of Civil Procedure 1.510, After
hearing the motion and counsels' arguments, carefully reviewing the motion and the attaclunents,
and examining the applicable law, the Court finds as follows:
1. The Board of County Commissioners filed a complaint for Writ of Quo Warranto,
seeking a writ prohibiting the Clerk from exercising powers to which he is not entitled as a
matter oflaw.
xv
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2. The County filed a motion for summary judgment requesting a determination that:
Ca) The Clerk's authority as custodian of County funds arises only upon
delivery of funds to the Clerk by the Board or through the direct collection
of fees;
(b) The Clerk's authority as the custodian of the County's funds is limited to
the determination of the lawful basis of an expenditure and does not
extend to the discretionary decisions by the Board to spend County funds;
and
Cc) The authority and responsibility to prepare the County's financial
statements is derived from and dependent upon an exprcss delegation of
that authority by the Board.
3. It is undisputed, by the parties that, the Clerk is the auditor, recorder and custodian of
all County funds, that the Clerk is the accountant for the Board of County Commissioners, and
that the Clerk has the duty to determine the legality of all County expenditures before issuing a
warrant for payment.
4. There are no disputed material facts as it relates to a determination of the powers of
the Clerk. Such a determination is an issue of law.
5. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
Jaws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
6. The Court finds that the Board of County Commissioners' powers, as granted by
statute, are inclusive and encompass all tasks necessary to effectively perform its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Court acknowledges that multiple
parties may have the authority to perform duties; however, absent a grant of power from the
.
XVI
" - ~
- ,~" -- .--
Florida Constitution or general law, the Clerk does not have the authority to perfonn certain
duties unless these tasks are delegated by the Board of County Commissioners.
7. Accordingly, as it relates to issue (a), the Court finds as a maller of law, that to the
extent that the Clerk is the custodian of all County funds, he necessarily can only be the
custodian of those funds to which he has been given custody, which would presumably
encompass all County funds. Even if the Clerk becomes aware or suspects that there are County
,
,
funds of which he has not be given custody, this Court is unaware of any constitutional or
statutory authority that would allow the Clerk to initiate an independent investigation or attempt
,
,
..'i
. ,
to recover those funds, absent instruction from the Board of County Commissioners.
{'
..
8. This does not preclude the Clerk from seeking authority to pursue these funds or
making these funds known to any appropriate authority, but as stated above absent any
constitutional or statutory grant of power the Court Clltlllot acquiesce to the Clerk making
unilateral investigations into these funds.
9, As it relates to issue (b), the Court finds as a matter of law, that prior to signing any
.
warrant for the payment of any claim, bill or indebtedness from County funds, the Clerk is
required to insure that the payment is lawful. Consequently, any auditing necessary to insure the
legality of the expenditure prior to the payment is proper. However, the Coun is unable to find
that the Clerk has been granted any specific constitutional or statutory authority to perfonn
further audits beyond the time that the warrant is signed, unless so directed by the Board of
County Commissioners.
10. As it relates to issue (c), the Court finds as a maller oflaw, that the Clerk's authority
*
'.of4e Co..nty is not-deri...eG-fr.om a speci~llIl~f
constitutional or statutory power, but rather is derived from a delegation of authority by the
xvu
-.-
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,.
,
.
Board of County Conunissioners. The scope of this delegation is within the discretion of the
Board of County Conunissioners, and may be granted, removed or modified.
II. In arriving at these findings, the Court has carefully considered Articles II & VIll of
the Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat SS 11.45, 116.07,125,01, ]25.17, 125.71, 125.74, 136.05, 136.08,218.32,218.33,218.39.
In addition, the Court has considered applicable case law presented by the parties, including, but
not necessarily limited to, AlacllUa v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984).
Accordingly, it is,
ORDERED AND ADJUDGED that County's motion for summary judgment is granted,
as set forth herein.
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this 2'1"'" day of
"--J~U" }
, 2007.
L-PJ: ( L7
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SE~VICE
I HEREBY CERTIFY that a true and correct copy of the above order has been furnished
to David P. Ackerman, Ackerman, Link, & Sartory, P.A., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attomey, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, P.A, Attorney for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(Xl), 1700 Monroe Street, FI. Myers, Florida 33901, this ;).\.1*' day of
<. , 2007.
.~
XV111
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IN THE CIRCUIT COURT OF THE TWENTIETH J1JDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY, FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
\'5.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
05-1506-CA
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OeHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AfKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.01(q), F.S.; LlNPA T. SWISHER
and PAUL WILSON,
o ~~~O~~
.~UG 2 7 2007
Defendants.
I
0-1IDER DENYING TIfE "CLERK'S MOTION FOR PARTIAL SUMMARY
JUDGMENT" AND GRANTING "COLLIER COUNTY'S CROSS MOTION FOR
SUMMARY JUDGMENT AS,TO TilE CLERK'S DECLARATORY J1JDGMENT
COUNT"
THIS MATTER comes before the Court on the "Clerk's Motion for Partial Summary"
filed August 1,2007 and "Collier County's Cross Motion for Summary Judgment as to the
Clerk's Declaratory Judgment Count" filed August 2, 2007. Both motions were filed pursuant
to Florida Rule of Civil Procedure 1.510. After hearing each motion and argument of counsel,
carefully reviewing the motions and the attachmenl.., and examining the applicable law, the
Court finds as follows:
1, [n its complaint, the Clerk, in part, seeks a declaratory judgment as to the rights and
duties of the Clerk of the Courts.
2. There are no disputed material facts as it relates to a determination of the rights and
duties of the Clerk of the Courts. Such a detennination is an issue of law.
X1X
d'. -.
.
3. Both the Clerk and the County are seeking summary judgment as to the declaratory
judgment count oflhe Clerk's amended complainl. Specifically, the Clerk is seeking a
determination that:
(a) the rights of the Clerk to custody of all County funds in the account
referring to the Ochopee FCD Volunteer Account Number 000093417519
at the Bank of America) from the account's inception up to and including
the present;
(b) declaring that the clerk has unconditional unrestricted right, duty and
obligation to audit and examine at any time all bank accounts containing
County funds, including but not limited to the account; and
(c) that the Clerk has the right to custody of all County funds and all accounts
whatsoever and wheresoever situated.
,
":;
4. The County in its cross motion asserts thaI,
"the Clerk is the custodian of all County funds, however, whether the funds at
issue in the Ochopee account are "County" funds is yet to be determined. Further,
although the Clerk may "inspect" and "examine" all public records oflbe Board,
the Clerk has no independent authority to conduct "audits" if that term includes
the unfellered ability 10 interview and interrogate county employees, consultants,
subcontractors, or agents. He may only uinspect" and "examine" the public
records oflbe Board to determine if an expenditure, authorized through the
discretionary spending power of the Board, is a lawful expenditure; and even this
examination must occur before the money is spenL" .
5. Both the Clerk and the County, agree and, as a matter of law, the Court finds that the
Clerk is the custodian of all County funds. However, the other issues are in dispute.
6. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this CoUrt will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this CoUrt is unable
to find any ambiguity or inconsistency.
7. The Court finds that the Board of County Commissioners' powers, as granted by
xx
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statutc, are inclusive and encompass all tasks necessary to effectively perform its duties. No
-,'
such general grant of power has been given 10 the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general I a\\'. The Court acknowledges that multiple
parties may havc the authority to perform duties; however, absent a grant of power from the
Florida Constitution or general law, the Clerk does not have the authority to perform certain
duties unless these tasks are delegated by the Board of County Commissioners.
,
-,'~
8. Florida Statute ~ 125.01 (s) gives the Board of County Commissioners the authority
'.-,
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to, "make investigations of county affairs; inquire into accounts, records, and transactions or any
eounty department, office or officer; and, for these purposes, require reports from any county
.,
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officer or employee and the production of official records." Florida Statute ~ 125. 74( I )(g) gives
, ~ [
the County Administrator or manager the authority (0 supervise the care and custody of all
,
.
county funds. Florida Statute ~ 125.0l(b) gives the Board of County Commissioners the right to
provide for the prosecution and defense ofJegal caUSes on the behalf of the County. This CoUrt
is unable to find any constitutional or statutory authority that would give the Clerk the power to
investigate the nature of funds not currently in its custody or to supervise the care and custody of
funds not currently in its custody or to file a lawsuit regarding those funds.
9. Accordingly, the Court finds that, as a matter of law, this Court can find no
constitutional or statutory authority that would give the Clerk the unbridled right to audit an)' and
all outside bank accounts "whatsoevcr and whcrcsocver situated" into which the Clerk belicves
county funds may have been improperly deposited. However, this finding does not prcclude the
Clerk from reporting any such suspicions of impropriety to the appropriate authority or pcrson
for further investigation.
XX1
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10. 1n arriving at this finding. the Coun has carefully considered Articles II & VllI of the
Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. ~~ 11.45, 116.07, I 25.oJ, 125.17, 125.7], 125.74, 136.05, 136.08, 218.32, 218.33, 218.39.
In addition, the CoUrt has considered applicable case law presented by the parties. including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
lLunI<;Je, 444 So. 2d 554 (Fla. 4th DCA ]984). Accordingly, it is,
ORDERED AND ADJUDGED that:
I. The Clerk's motion is denied.
2. The County's cross motion is granted.
DONE AND ORDERED in Chambers at Fort Myers. Lee County, Florida, this~ 4. T'. . day of
~" '::\'-"'" -L
,2007.
.
-
..J.L--J::?
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the above order has been furnished
to David P. Ackerman, Ackerman, Link, & Sartory, PA., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, JT. and
Steven V. Blount, Woodward, Pires & Lombardo, P A, Attorney for the Plaintiff; 3200 Tarniami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, PA, Attorney for the
Defendant, Post Office Drawer 2040, Fan Myers, Florida 33902; and Court Administration
(X . 1700 Monroe Street, Ft. Myers, Florida 33901, this .,:lLlIlo day of
,2007.
J icial Assistant
Case Numbers: 04-941-CA, Consolidated with 05-95 -CA, and 05-1506-CA
Order Denying the Clerk's Motion for Partial Summary Judgment and Granting the Collier County's
Motion for Summary Judgment as to the Clerk's Declaratory Judgment Count.
XXll
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, 2007
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
,.^.....---
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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 30,2007. This was the twenty-
second 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
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THIS PAGE INTENTIONALLY LEFT BLANK
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IIIII111111
IIIII1 au ERNST & YOUNG
Ernst & YOUOQ LLP
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IdX,i 1 <)')/j .'laB BHiD
W';YW c"i_rorr,
Report of Independent Certified Public Accountants
Members of the Board of County Commissioners
Collier County, Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of Collier County, Florida (the County) as of and
for the year ended September 30, 2008, which collectively comprise the County's basic financial
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 eflectiveness of the
Organization'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 financial statements, assessing the accounting principles used and significant
estimates made by management and evaluating the overalllinancial 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 governmcntal activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of thc County as of Septembcr 30, 2008, and the respecti ve changes in financial
position and, where applicable, cash flows thereof, and the respective budgetary comparison for
the general fund and the community redevelopment fund for the year then ended in conformity
with accounting principles generally accepted in the United States.
As discussed in Note 19, net assets for the business-type activities and the County Water and
Sewer Fund as of September 30, 2007 have been restated.
0902-1032557
1
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I au ERNST & YOUNG
In accordance with Government Auditing Standard.\', we have also issued our report dated
February 76, 2009 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. Thc 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 tinancial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Governmenr 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 for the retiree health plan on page 78 are not a required part of the basic financial
statements but are 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 for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, and the statistical section are
presented for purposes of additional analysis and are not a required part of the basic tinancial
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, Seclion ~15.97, Florida Statutes and Chapter 10.550, Rules of'the
Auditor General, and is not a required part of the basic financial statements. The combining and
individual nonmajor fund financial stalements and schedules 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 material respects
in relation to the basic financial statements taken as a whole. The introductorv section and the
~
statistical section havc not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we express no opinion on them.
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February 26, 2009
0902-1032557
,
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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, 2008. 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-xxii ofthis report.
Financial Highlights
Collier County's assets exceeded its liabilities as of September 30, 2008 by $2,318,834,722. Of
this amount, $3 1 2,792,303 represents unrestricted net assets and may be used to meet future
obligations.
The County's total net assets increased by $141,079,726 over fiscal year 2007, with $82,088,071
of the increase resulting from governmental activities and $58,991,655 resulting from business-
type activities.
As of September 30, 2008 Collier County's governmental fund financial statements showed
combined ending fund balances of $496,012,839, a decrease of $108,483,366 over the previous
fiscal year. Of the total combined ending fund balance, $346,683,059 remains in the various
governmental funds of Collier County as unreserved.
The General Fund reported an unreserved fund balance of $61,952,935 at September 30, 2008, a
decrease of$15,665,809 compared to September 30, 2007.
Total net bonded debt and outstanding loans owed by Collier County increased by $24,092,474
during fiscal year 2008, with an increase in net governmental activities debt of$31,697,959 and a
decrease in the net business-type activities debt of $7,605,485. General government commercial
paper debt in the amount of $57,391 ,000 was issued for the purpose of constructing a Courthouse
Annex, Fleet Facility buildings, the Golden Gate and South Regional Libraries and an Emergency
Operations Center, as well as the purchase of new 800 MHZ equipment and radio locator
systems. Collier County also borrowed $12,000,000 through the State Infrastructure Bank low
interest loan program. In addition, the Forest Lakes Municipal Taxing Services Unit borrowed
$6,215,000 for various drainage improvements. The Collier County Water and Sewer District
also borrowed $2,401,552 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
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Government-Wide Financial Statements
Government-wide financial statements are designed to provide the reader an overview of the financial
position of the Counly 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, 2008.
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 offinancial 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 nct 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 or accrued unused vacation and sick leave, that will
manifcst 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), trom 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.
J!'und 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: governmenlal, 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 gowrnmental fund financial statements focus on
inflows and outflows of expendable resources, as well as balances of expendable resources available at
the end of the tiscal year, on a near term basis. As such, these statements present a narrower view of
financial condition, but are nonetheless Llseful in evaluating Collier County's near term financing
requirements and available resources.
Comparison between the two sets of financial statemenls allows the reader to better assess the future
impact of the government's near term financial decisions. Both the governmental fund balance sheet and
the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the
respective government-wide financial statements to facilitate comparison.
Governmental funds presented individually in Collier County's statements include four major funds, the
General Fund, Road Impact Districls Fund, Road Construction Fund and the Community Redevelopment
Fund. While there are many smaller governmental funds under Collier County management they are
-1
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 76 of this report.
Other Information
The combining and individual nonmajor fund financial statements and schedules mentioned above present
more detailed views of nonmajor governmental and enterprise funds and begin on page 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 changcs in tund 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.
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 $141,079,726, resulting in an ending net assets
balance as of September 30, 2008 of $2,318,834,722. Collier County's investment in capital assets such
5
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as land, roads, buildings, parks and machinery and equipmcnt, net of depreciation or any outstanding debt
relatcd to the construction or purchase of the asset, amounts to 72% 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 $325, I 76,138 and unrestricted net assets of
$312,792,303. 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
30,2007 and 2008. shown in condensed form:
Collier County's Schedule of Net Assets
,( in millions)
Governmental
Activities
Business-type
Activities
2008 2007
as restated
Total
---
2008 2007
as restated
Total
Percentage
Change
2008-2007
2008 2007
Current and other assets $653.2 $767.0 $1775 $1878 $830.7 $954.8 (13.0%)
Capital assets, net 1.5 27 0 1.3128 915.5 865.7 2,442.5 2,178.5 12.1 ~/o
________n_~ -------- --------.- . --------,--.-.-'.--.
Total assets 2.1802 2,079.8 1.0930 1,053.5 3,273.2 ., 13" ., 4 <:;0/0
J, -"j .--
---- -,.._---- - ---- -...-.' '--"'--
Long-term liabilities 537.3 507.9 255.7 264.3 793.0 772.2 2.7%
Current liabilities 1271 137.9 34.5 454 161.6 183.3 (11.8%)
- -------..-..--- ~.'-
Total liabilities 6644 645.8 290.2 309.7 954.6 955.5 (0.1%)
.-....--.-...-- n__________ . ---------------- ___n_..._"_ .._,_ --""'----
Net assets:
Invested in capital assets,
net ofrelated debt 1,0220 8714 6589 6300 1,680.9 1,5014 12.0%
Restricted 2950 244.7 '0' 30.8 325.1 275.5 18.0%
) --
Unrestricted 199.0 317.9 113.7 83.0 312.8 400.9 (22.0%)
..- .---,.--.~- -~ ~~_. _m -- ------
Total net assets $1,516.0 $1,4340 $802.8 $743.8 $2.318.8 52,1778 650
. /0
Note: Certain fiscal year 2007 balances are restated in a manner consistent wilh the restatement discussed in Note 19
on page 75.
(,
Collier County's Schedule of Changes in Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Change
-
2008 2007 2008 2007 2008 2007 2008-2007
as restated as resta ted
-_.'_._~~ __w.._ ---
Revenues
Program revenues:
Charges for services $68.9 $72.5 $1573 $144.8 $226.2 $2173 4.1%
Operating grants and contributions 20.2 27.3 4.4 2.7 24.6 30.0 (18.0%)
Capital grants and contributions 52.3 122.3 23.3 32.7 75.6 155.0 (51.2%)
General revenues:
Property taxes 327.2 345.1 327.2 345.1 (5.2%)
Other taxes and shared revenues 76.7 84.8 76.7 84.8 (9.6%)
Interest income 34.5 431 5.9 6.9 40.4 50.0 (19.2%)
Change in fair value
of investments (.8) 5.8 (.2) 1.3 (1.0) 7.1
Miscellaneous 10.6 8.2 .1 .6 10.7 8.8 (21.6%)
--- ----
Total revenues 589.6 709.1 190.8 189.0 780.4 898.1 (13.1%)
~_._-- ----~.-
Expenses
General government 1127 110.8 112.7 110.8 1.7%
Public safety 183.3 182.8 183.3 182.8 .3%
Physical environment 22.1 19.9 22.1 19.9 ll.l%
Transportation 66.1J 54.2 66.0 54.2 21.8%
Economic environment 13.5 11.7 13.5 11.7 15.4%
Human services 13.5 12.9 13.5 12.9 4.7%
Culture and recreation 43.4 41.6 43.4 41.6 4.3%
Interest on long-term debt 21.5 21.8 21.5 21.8 (1.4%)
Watcr and sewer 85.5 91.1 85.5 91.1 (6.1%)
Solid waste 30.0 32.1J 30.0 32.0 (5.9%)
Airport authority 5.1 43 5.1 4.3 18.6%
Emergency medical services 31J.I 27.3 30.1 27.3 10.6%
Mass transit 9.4 7.8 9.4 7.8 21.0%
Total expenses 476.0 455.7 160.1 162.5 636.1 618.2 2.9%
- --~..-
Increase in net assets before
Net transfers and special item 113.6 253.4 30.7 26.5 144.3 279.9 (48.4%)
Special item - bond expense (3.3) (3.3) 100.IJ%
Transfers, net (n.3) ( 15.1) 28.3 15.1
-~---~-~
Change in net assets 82.0 238.3 59.0 41.6 141.0 279.8 (49.6%)
Net assets - beginning, as restated 1,434.0 1.195.7 743.8 71J2.2 2,177.8 1,897.9 15.7%
-.-.-- - --_...."--
Net assets - ending $1,516.0 $1,434.0 $81J2.8 $743.8 $2,3188 $2,177.8 6.5%
Note: Certain fiscal year 2007 balances are restated in a manner consistent with the restatement discussed in Note 19
on page 75.
7
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Governmental Activities
The current year increase for net assets of governmental activities amounted to $82,088,071, an increase
of 6% over the previous year's net assets. The previous fiscal years' increase was 20% and this trend is
the result of an overall decline in governmental activities revenues. The ad valorem tax millage for fiscal
year 2008 was reduced to 9% below the rolled back millage rate, in accordance with property tax reform
measures adopted by the Florida Legislature. This decrease was offset to a degree by a 7% increase in
taxable assessed value, but the overall result was a decrease in ad valorem tax revenues of $17,809,228,
or 5%. Governmental impact fees are collected to otrset the cost of growth necessitated capital
improvements and are reported as capital contributions in the governmental activities. During fiscal year
2008 the County collected impact fees 1(" transportation, parks, libraries, emergency medical services,
correctional facilities, law enforccment, governmental facilities and fire totaling $36,679,020. This
represents a decrease in total impact fee collections over liscal year 2007 of 57%, and is emblematic of
the widespread slow down in the construction and real eSlate industries. Sales tax revenues decreased by
8% versus fiscal year 2007, and this decrease rellects a general decline in the state's economy. In
addition, gas tax revenues decreased by 4% versus fiscal year 2007 and this decrease is indicative of both
a slowdown in the state's economy as well as an indicator of the etrect of higher tilel costs on demand.
Total government activities expenses increased 4% over tiscal 2007. Transportation expenses increased
by 22% over fiscal year 2007 due to increases in depreciation expense related to projects placed in service
during tiscal 2008 and increases in operational costs. The County's economic environment expenses
increased by 15% over the prcvious tiscal year primarily due to increased operational eosts. Physieal
environment expenses increased II % mainly due to the depreciation on infrastructure projects put into
serviee during liscal year 2008. Governmental aClivities interest expense was $21,445,546 for fiscal year
2008, net of amortizations.
Business-type Activities
Inereases in nel assets related to business-type activities amounted to $58,991,655 in the aggregate,
representing an g% increase over the previous year's net assets. This increase is an increase of 20/0 over
the 2007 rate of inerease in net assets. The majority of lhe increase, or $36,159,958, ean be attributed to
the Collier County Watcr and Sewer Distriet. Water and wastewater operating revenues increased
$8, II 0,279, or 9%, over the previous tiscal year. while costs of operations, including depreciation, were
down 2% overall. Operating revenues increased primarily due to a rate increase of 1 4.5% and imposition
of a water surcharge. These increases were partially offsct by decreased usage caused by water
restrictions and conservation measures. Personal services expenses and operating expenses decreased by
2% and 12%, respectively, when compared to tiscal year 2007. Depreciation expense increased by 14%
over tiscal year 2007, and this increase is due to the recent capital expansion of the County Water and
Sewer Distriet. Over $43M in capital h,cilities were added and improved during fiscal year 2007 and for
fiscal year 2008 a further $1J7M was added. Fiscal year 2008 water and wastewater impact fee
colleclions dropped to $9,753,332, or a dccrease of 53% versus liscal 2007. This was the primary reason
for a 30% decrease in capilal grants and contributions, which includes impact fees. The County charges
watcr and wastewater impact fees 011 new construction in order to finance growth necessitated capital
expansion. The Collier Area Transit Fund received the contribution of a Transit Facility from
govcrnmental activities with a value llf $10,096.889. In addition, solid waste charges for services
increased by 4.4% over liseal year 2007 while operating costs. including depreciation. decreased by 6%
over the same period. The increase in so] id waste charges tor services can be attributed to a ] 20/0 rate
increase, olTset to a degree by less tonnage being accepted into the landtills for FY-"008. These factors
contributed to an incrcasc in net assets year on year of $6, 106,233.
Fund Financial Statement Analysis
As mcntioned above. Collier Counly utilizes fund accounting 10 ensure compliance with linance related
legal requirements.
8
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
ofthe fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service
Funds and Capital Project Funds.
As of September 30, 2008 Collier County governmental funds reported combined fund balances of
$496,Ol2,839, a decrease of $108,483,366 over prior year combined fund balances. Governmental funds
reserved $128,993,148 of fund balance for encumbrances in the next fiscal year, $174,805 for inventory,
deposits and prepaid items, $4,099,533 for debt service and $16,062,294 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 2008:
The General Fund is the main operating fund of Collier County. At September 30, 2008, total fund
balance in the general fund was $68,555,420, of which $61,952,935 was unreserved. As a percentage of
total general fund expenditures and net transfers, the unreserved portion is 17%. The total fund balance
decreased by $12,769,212 or 16%, compared to the September 30, 2007 total fund balance. The decrease
is primarily due to decreased sales tax collections and decreased ad valorem tax collections.
The Road Impact Districts Fund is used to account for the receipt and expenditure of road impact fees.
Road impact fees of $29,141,348 were collected during fiscal year 2008, to be used for growth related
transportation capital improvements. This represenls a decrease in total road impact fee collections
versus fiscal year 2007 of 58%, which is consistent with the slowdown in both the real estate and
construction industries. Capital expenditures of road impact fees decreased by 20% for fiscal year 2008
when compared to fiscal year 2007. The major project completed and capitalized during fiscal year
2008 was the growth necessitated portion of the Golden Gate Parkway Overpass in the amount of
$2,522,001. Major ongoing projects include [mmokalee Road from 1-75 to Collier Boulevard,
Rattlesnake lIammock Road from Polly Avenue to Collier Boulevard and Santa Barbara Boulevard trom
Davis Boulevard to Pine Ridge Road in the combined amount of $62,954,320 through September 30,
2008. These activities resulted in a decrease in fund balance of $35, 168,946 for the Road Impact Districts
Fund.
The Road Construction Fund accounts for the accumulation of gas taxes, bond proceeds and General
Fund transfers for the construction of roads. Capital expenditures in the Road Construction Fund
decreased by 20%, compared to fiscal year 2007. Major projects completed and capitalized during fiscal
year 2008 included portions ofthe Immokalee l-75 Loop, Goodlette Frank Road from Pine Ridge Road to
Golden Gate Parkway, turning lane and intersection improvements and advancements in computerized
signalization systems in the combined total of $24,089,937. Major ongoing projects include lmmokalee
Road from Collier Boulevard to Wilson Boulevard, Vanderbilt Beach Road trom Airport Pulling Road to
1-75, Immokalee Road from US 41 to 1-75, Rattlesnake Hammock Road from Polly Avenue to Collier
Boulevard, Santa Barbara Boulevard from Golden Gate Parkway to Radio Road right of way purchase
and Collier Boulevard from Golden Gate Parkway to lmmokalee Road. The total amount of construction
in progress for these projects was $134,059,507 as of September 30,2008. The combination of these
activities resulted in a decrease in fund balance of $24,069,650 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 lmmokalee Redevelopment Authorities. During fiscal year 2008
the Bayshore/Gateway Triangle purchased $863.642 of land within the Triangle.
9
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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, 2008, total net asscts amounled to $802.790.838 It)f enterprise funds, as compared to
$745,274,760 as of September 30, 2007. 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 majority of the increase in net assets.
For the year ended September 30, 2008 the Water and Sewer District reported capital grants and
contributions of $2],3] 4,876, which includes system development fees of $9,753.332, $10.117,044 m
developer infrastructure contributions and capital grants. contributions and assessments of$I,444,500.
Net Openltinl!, Income/(Loss)
2008 2007
County Water and Sewer $ 22,828,46 ] $ ]0,181,l24
Non-major enterprise funds ( 17,801,466) (19,]33,606)
Total $ 5,026,995 $ (8,952,482)
The Collier County Water and Sewer Fund net operating income increased by $]2,647,337. The increase
in net operating income was the result of an increase in operating revenues of $8, II 0,279, or 9%, over the
previous fiscal year, wbile costs of operations. including depreciation, were down 7% overall. County
Water and Sewer payments in lieu of laxes paid to the General Fund of $3,349,000 were reclassified hom
operating expense to operating transfers for financial statement purposes. Personal services expenses
and operating expenses decreased by 2% and ]2%, respectively, when compared to fiscal year 2007.
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 husiness-type activities amounted to
$2,442,772,916, net of accumulated depreciation. This investment in capital assets, both purchased and
donated, includes land, buildings and improvements, machinery and equipment, parks, roads, beach
renourishment, bridges and drainage structures. Investment in capital assets for the current fiscal year, net
of depreciation, increased by $262,811,967 over the previous year. There was an increase in the
governmental activities of $" 14,464.557. or 16%. The proprietary hmd share of the increase was
$48,347,410, and amounted to a 50/" increase. I'he major factors behind these increases are as follows:
\Vater and sewer, solid waste disposal and airpol1 authority construction in progress increases
amounted to $55,343,920. Of this amount, $45.354,223 was related to water and wastewater
lilcilities constructed by the County Water and Sewer District.
Capitalization as construction in progress of $238,89I,Y87 of governmental activity related costs,
with $] 15,184,788 of this increase related to transportation projects, $73,920,055 related to
government facilities. including an emergency operations centers, libraries, a fleet facility and a
10
courthouse annex and $49,787,144 in parks and recreation, stonnwater, beach renourishment and
other projects.
Purchases of land and non-depreciable assets were $36,734,428 for fiscal year 2008.
Additional information regarding Collier County's capital assets can be found in Note 5 beginning on
page 52 of this report.
Debt Administration
At September 30, 2008, Collier County had net bonded revenue debt of $567,752,549 outstanding, an
increase of $24,092,476 from the previous year. The following table illustrates the balances of all
outstanding long-term debt for the fiscal years ended September 30, 2008 and 2007:
Outstanding Debt
2008
2007
Limited General Obligation Revenue Bonds $ 29,099,538 $ 27,342,246
Revenue Bonds 567,752,549 588,518,153
Florida Local Government Loans 85,560,000 51,430,000
State Revolving Fund Loans 1 l5,830,489 l06,793,982
Line of Credit and Miscellaneous Notes 5,973,707 6,039,428
Total $ 804,216,283 $ 780,123,809
During fiscal year 2008 Collier County borrowed a total of $57,391,000 from the Florida Local
Government's pooled commercial paper program for purposes of constructing a Courthouse Annex, Fleet
Facility buildings, the Golden Gate and South Regional Libraries and an Emergency Operations Center,
as well as the purchase of new 800 MHZ equipment and radio locator systems.
During fiscal year 2008 Collier County drew $12,000,000 down on a low interest State Infrastructure
Bank loan. The proceeds of the loan were used in the construction of the 1-75 and Immokalee Road
interchange.
On October 10, 2007, Collier County issued the $6,2l5,000 Forest Lakes Roadway and Drainage
Municipal Service Taxing Unit Limited General Obligation Bonds, Series 2007. The County issued these
bonds for the purpose of providing funds to finance the costs of certain roadway lighting, roadway related
drainage and roadway restoration within the Forest Lakes Municipal Service Taxing Unit, and to pay
certain costs incurred in connection with the issuance ofthe Series 2007 bonds.
During fiscal year 2008 Collier County prepaid a total of $22,621,000 in variable rate commercial paper
debt. Prepayments totaling $12, I 00,000 were made on the County's Caribbean Gardens loan, issued
during fiscal year 2006 for the purchase of land and buildings commonly referred to as Caribbean
Gardens. This loan is secured by up to a .15 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
I I
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Gardens. This loan is secured by up to a .] 5 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbi]t Beach parking garage.
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 53 of this report.
Budgetary Highlights
Budgetary comparison statements are provided in the basic financial statements for the General Fund and
the Community Redevelopment Fund. Budget columns are presented for both the original budget as well
as the final budget. These columns are followed by a eo]umn for actual revenues and expenditures and a
column for differences between final budget and actual revenues and expenditures.
Significant period expenditure budget increases and decreases, over $200,000 within a department, were
made and are outlined in the following table:
~artment
Budget
Increase/(Decr
ease)
Clerk of the Circuit Court
Clerk of the Circuit Court
Clerk ofthe Circuit Court
County Attorney
Other General Administration
Emergency Management
Transfers Out
Immokalee Redcvelopment
Transfers Out
$ (60],500)
(200,000)
, -5" -00
j,O L,O
217,358
I,] 19,611
438,927
2.863.008
267,607
700,000
Reason for Increase/(Decrease}
Decrease in operating expenditures to special item
Decrease in capital expenditures to special item
Increase to support court ordered bond expense
Outside counsel and professional services
External audit and tax deed application processing
Tropical Storm Fay preparation
Additional General Fund transfers to other funds
Additional contractural services
Additional Redevelopment transfers to other funds
Significant variances between actual results and final budget amounts in the General Fund occurred
during fiscal year 2008. Tax revenues were under budget by $9,875,376 primarily due to the practice of
not budgeting for the discount allowcd 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' Gcncral Fund. Intergovernmental revenucs were under budget primarily due to both
sales tax and statc rcvcnue sharing revenues being signilicantly under budget. General Fund general
government expenditures were under budget primarily due to a $4,000,000 watershed study that will be
ongoing trom 2008-70]0. The project was in the pre-planning stages during fiscal year 2008 and only a
small amount was spent. Also contributing to lhe 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 were under budget by
$963,499 primarily due to leaving positions open due to attrition unfilled and delaying pay increases until
mid year. The Board's Other General and Administrative function was under budget due to expenditures
for property insurance and remittances to other governments and municipalities being significantly' less
than anticipated. General Fund culture and recreation expenditures were under budget primarily due to
surpluses in the Beach and Water Parks operation, as well as Library Administration.
12
Economic Factors and Year 2009 Budgets and Rates
The following factors were taken into account in preparing the fiscal year 2009 budget:
The population of Collier County decreased by .3% from fiscal year 2007 to fiscal year 2008.
During fiscal year 2008, the Florida Legislature continued to impose restrictions on the ability of
municipalities and counties to increase ad valorem millage rates.
The total number of building pcrmits issued during FY -2008 was 20,580, a 30% decrease from
FY-2007.
The annual unemployment rate in Collier County, without seasonal adjustment, increased by
2.5% trom FY-2007 to FY-2008.
Expected decreases in sales tax revenues and gas tax revenues.
The main focus of the Capital Improvement Program in FY -2009 is road construction, various
utilities projects and the finalization of general government facilities construction projects.
During fiscal year 2008, the General Fund unreserved fund balance decreased by $15,665,809 to
$61,952,935. As of February 9, 2009, $57,344,608 of the fiscal year 2008 unreserved fund balance has
been appropriated as carryforward for fiscal year 2009.
Other Discussion
The Clerk of Courts is currently involved in litigation with the County. The Court, in the final judgment
in Case #04-941 CA, consolidated with Case numbers 05-953CA and 05- 1 506CA, issued September 12,
2007, incorporates by reference three orders dated August 24, 2007. In Paragraph 8 of the Order
Granting, In Part, and Denying, In Part, the "Clerk's Motion for Partial Summary Judgment Regarding
Undisputed Roles of the Clerk" and_O,-anting "Collier County's Cross-Motion for Summary Judgment on
the Undisputed Roles of the Clerk of Courts", the Court makes the determination that the Clerk has no
duty of preparing and certifying the accuracy of the County's financial statements, including the annual
management representation letter. Please see the court order attached as pages vii to xxii of the
transmittal letter. The Case is in the appellate process, however, pursuant to paragraph 10 of that same
order, the Board is and has limited the Clerk's scope and ability to determine facts through the audit and
examination process, that would allow the Clerk to represent that the financial statements, to our
knowledge, are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and
include all transactions of the County.
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
Court Plaza lll, Suite 202
2671 Airport Road South
Naples, Florida 34112
Our office may also be contacted via the internet at www.collierclerk.com.
13
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Primary Government
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets:
Cash, cash equivalents and investments $ 268.367.830 $ 102.686.884 $ 371,054,714 $ 501.700
Receivables:
Trade, nct 2.978.333 11.253,083 14,231.416
Contributions 15.581.910 15,581,910
Special assessments 85.689 712.118 797,807
Interest 4.428.706 963.024 5.391,730
Unbilled revenue 5.405,140 5,405,140
Notes 88,195 88,195
Due from other governments 11.102.299 1.1J39.049 12,141,348
Internal balances 14.694.619) 4.694.619
Deposits 516.446 13.294 529,740
lm'cntory 862.130 3.618,318 4.480,448
Pn:paid costs 11.693 50.192 61,885
Restricted assets:
Cash. cash equivalents and im'cstrncnts 39,684,980 8.003.143 47,688,123
Total current assets 339,013,592 138,438.864 477,452,456 501,71J1J
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 295.011,379 32.851J,815 327,862.194
Rccci\/ublcs:
Special assessments 341,798 1.1J611.128 1,40 I ,926
Notes 13.7113.097 3.457.71J4 17,160.801
Deferred charges 5.135.357 1,669,166 6,8114,523
Capital assets:
Land and nondepreciable capital assets 733.829,124 161.829.355 895,658,479
Depreciable t:apital assets, net 793,435.998 753,678,439 1,547,114,437
TntaJ noncurrent assets 1,841,456,753 954,545.607 2,796,002,360
] 'utal assets 2,180.4 711,345 1.092,984,471 3.273,454,816 501,700
Thc notes to the tinant:ial statements arc all intcgral part or this statement.
14
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Primary Government
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities:
Accounts payable $ 27,837,366 $ 7,725,378 $ 35,562,744 $
Wages payablt: 5,894,344 1,688,212 7,582.556
Retainage payable 810.740 805,585 1,616,325
Due to other governments 3,532,526 86,140 3,618,666
Due to individuals 329,410 493,589 822,999
Self-insurance claims payable 5,552,207 5,552,207
Compensated absences 10,040,625 1,746,234 11,786,859
Capital lease obligations 153,670 126,145 279,815
Unearned rt:venue 2,673,C)71 2,673,071
Interest payable 8,262,924 2,730,339 10,993,263
Bonds and loans payable 22,332,377 II ,087, 179 33,419,556
Liabilities payable from restricted assets:
Accounts payable 21,500,286 938,511 22,438,797
Retainage payable 17,363,360 6,152,110 23,515,470
Refundable dep()sits 821,334 460,995 1,282,329
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 127,104,240 34,491,944 161,596,184
Noncurrent liabilities:
Arbitrage rebate 677,752 1,505,580 2,183,332
Self-insurance claims payable 4.733,793 4,733,793
Compensated absences 11.134.457 436,559 11,571,016
Capital lease obligations 598,870 491,740 1,090,610
Landfill post-closure liability 1 ,XI5, 160 1,815,160
Net pension obligation 905,979 905,979
Ronds and loans payable, net 519,271,370 251,452,650 770,724,020
Total noncurrent liabilities 537,322,221 255,701,689 793,023,910
Total liabilities 664,426,4C'] 290,193,633 954,620,094
NET ASSETS
Invested in capital assets, net of related debt 1,022,001,435 65X,864,846 1,680,866,281
Restricted for:
Growth related capital expansion 136,996,095 15,637,780 152,633,875
Transportation capital projects 97,820,231 97,820,231
Conservation Collier 30.952.267 30,952,267
Tourist development 25,143,253 25,143,253
Debt service 4.099.533 14,226,979 18,326,512
Renewal and replacement 300.000 300,000
Unrestricted 199,031,070 113,761,233 312,792,303 501,700
Total net assets $ 1,516,(143,884 $ 802,790,838 $ 2,318,834,722 $ 501,700
15
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COLLIER COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30. Z008
FUNCTIONS/PROGRAMS
Primary Government:
Governmental Activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
lI1lerest on long.term debt
'rotal governmental activities
Business-type Activities:
Water and Sewer
Solid \'/ash:
Airport Authority
Mass Transit
Emergency Medical Services
Total business-type activities
Total primary government
Expenses
Fees, Fines and
Charges for
Services
Program
Operating
Crants and
Contributions
$ 112.719.982 $
183.288.162
22.147.876
65.979.880
13.475,268
13.511.552
43.435,217
21,445,546
36.467.916 $
12.544.766
6.539.585
3.936.325
468.476
532.392
8.429.369
935.536
3.50t,247
1.018,598
3.552.541
9,190.584
1.792.843
210.686
476,003.483
68.918.829
20,202,035
85,502.736 100.030.477 121.479
30.024,l)54 36.494.828 74.234
5J)81J{22 3.546.546
9.418.858 1.073.864 4.1125.597
311.160.498 16.167.399 17l. 984
160.187968 157.313.114 4)93.294
$ 636.19U51 $ 226.231.943 $ 24,595,329
Component Units:
Collier County Industrial Deve10pmern Authority $
Collier County Health Facilities Authority
Collier County Housing Finance Authority
Collier County Educational Facilities Authority
Total component units
14.195 $
8.383
32,500
93.500
18,260
152,643
$
122,500
16.788
153.483 $
General n:Vl'l1ues:
Propeny taxes
Gas t8xes
Sales taxes
Tourist taxl::S
. Othcr tilxes
Sta1l' rl'vcnue sharine
,
Intl:n:s! inconll'
Change in rail' value of investml:nts
Miscl:llane()us
Spccial item-bunJ expense (See Note 18)
Irallskr::< !let
['Dtal general revenues, special items and transfers
( 'han~t' 111 net assl'ts
Net assets ~ beginning, as previously reported
Prior period aJjustmellt
Net assets - beginning, as restated
Net assets - ending
The nutl'S to the tinancial statements an: an integral pan oj" Ihls slalCllll'll[
16
Capital
Grants and
Contributions
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental Business-type
Activities Activities
Total
Component
Units
Revenues
$ 8.649,324 $ (66,667,206) $ (66,667,206)
2,525,684 ( 164,716,465) (164.716,465)
4,364,371 (10,225,322) ( 10,225,322)
31,837,924 (26,653,090) (26,653,090)
419,388 (3,396,820) (3,396,820)
(11.186,317) (i 1, 186,317)
4.505,825 (30.289,337) (30,289,337)
(21,445,546) (21,445,546)
52.302,516 (334,580,103) (334,580,103 )
21,3 14,876 $ 35,964,096 35,964,096
6,545.008 6.545,008
1,559,991 24.715 24,715
439,722 (3,879.675) (3,879,675)
18,030 ( 13,803.085) (13.803,085)
23,332,619 24,851,059 24,851,059
$ 75,635,135 (334,580,103) 24,851.059 (309,729,044)
$ (5,812)
32.500
(29,000)
1,472
(840)
327,244,938 327,244,938
18,859.845 18,859,845
30,003,927 30,003,927
14,795,623 14,795,623
4.051,145 4.051,145
8,975,798 8,975,798
34,532,805 5,928.045 40.460,850 3,641
(802.753) (212,24]) 11.014,994)
10,642,523 76.708 10,719,231
(3,287,593) 13,287.593)
(28,348,084) 28,348.084
416.668,174 34,140,596 450,808,770 3,641
82.088,071 58,991.655 141,079.726 2,801
1,433,955.813 745,274.760 2,179,230,573 498,899
(],475.577) (1,475,577)
1,433,955,813 743,799,183 2.177.754,996 498,899
$ 1,516,043,884 $ 802,790,838 $ 2,318,834,722 $ 501.700
17
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('OLLlER COl!NTY, FLORI!):\.
BALANCE SHEET
GOVERNME:'''.rfAL l<TNDS
FOR THE FISCAL YEAR ENDED SErTI<:MBER 30, 2008
ROdd Other Total
General Impact Road (\l1nmunlty Governmental Governmentnl
Fund DIstricts ConstructIOn Redevelopment Funds Funds
ASSETS
Cash, cash eqUlvaknts and ltlvestmenls $ 74,367)IQ $ 85.{J()2,31J7 $ lU'i.208.040 $ 5,577,754 $ 282,736,602 $ 556,892,075
Recclvables
Interest 3,932,342 27,954 468,410 4,428,706
Trade, net 553,1% 16.143 417,190 3.2.15 1344,633 2.334,377
Notes 1 32vnO 1,13{H,S2 24,445 5,301U95 13.79U92
Special assl.:ssmcnls 427,4S7 427,4S7
Due from other funds Un3,'}21 8.425 1,223,220 3,(J65566
Due from other governments 2,4'13,104 4U2.68U 3.124.c)8J 4,')48,425 11,019,142
Dcposlts 3,50U 3500
Inventory l5':lYJ.t 282,609 442,003
Advances to other funds 5.127]94 10,935.100 16,062294
PrepaId costs 11.217 476 11,693
TOIalassets $ 8'1,809,02U $ 9"1 --19 1 $ 112,758,638 $ 5,633,368 $ 307,725)57 $ 608,478,185
- _,~~ , 0_
LIABILITIES AND FlIND BALANCES
Liabilities:
Accounts payabk ! 13.540.547 $ ''111 '1" I 8317,482 $ 86,992 , 23.64'1,123 $ 48,506,477
_, ~.J_ J ~
Wagcs payable 3,713,249 94,675 27,151 1,944132 5,779,207
Due to other funds 1,367':I\)5 26~ 1.~84 1,8S1USS 3,257,932
Due to other governments 1.363.518 2,l6S.944 3,532,462
Due to indiViduals 3U3J62 26,248 329,41U
Deferred revenue 37UJ92 7,130.682 196.]24 24.445 8,279,787 16,002.13U
Re!undable depOSits 594.0:17 20U,O(l() 27,297 S21,334
Retalllage payable 7.267.1160 6,12!LH42 4,778,148 18.174.100
Advances frOlll other funds 16,062,21:14 16,062,294
Tuta] Itabill\ICS 21,253,60U 17,.11(1,340 14,938.4U7 138,588 58,824.411 112,465,346
Fund blllam:es:
Rcserved for
Encumbrances 1.301,IS0 12 /~ 1 (l.X 14 50H}6,872 12'1,331 64.454951 12S,993,148
DepOSits 3,5UO 3.500
lm'cntory 159,394 218 159,612
Advances to other funds 5127,194 lU.935,lUO 16,061,294
Pn:patd costs 11217 476 11.693
Dchtsel'\'lce 4,099.533 4.u99533
Unreserved, reported In
Genera] fund (i1,952.'!35 61.952,935
Special revenue funds 5,365,44Y 116,677,SS6 122,041,.135
Debt ser,.'lce funds !,950,Hn 1,950,878
Caplla] proJect funds 62,830,74H 47,123,359 50,n I ,804 16U,735,':.l11
Total fund balances 68,555,420 75,24],562 n,S2U,nl 5,494,780 248,900,846 496,012,839
T01alltabl]I\ICS and fund halances $ 89,8U'1,02U $ '.12,551,'/02 $ 112,758,638 $ 5,633,36S $ 307,725,257 $ 608,-ln,lS5
The notes to the finanCial statements drc an Integral purt of this statement
1 K
COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE BALAi'iCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENTm' NET ASSETS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Differences in amounts reported for governmental activities in the statement of nct assets on
pages 14,15:
Fund balances - total governmental funds
Capital assets used in governmental activities are not 1inancial resources and therefore arc not
reported in the funds. Those assets consist of:
Land and other non-depreciable assets
Construction in progress
Depreciable assets, net of $391 ,001 ,598 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 recogniLed as an expenditure when due,
All liabilities are reported in the statement of net <lssets. Balances at Septl:mbcr 30, 2008 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 self.insurance and t1eet 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.
ill
.~---- ..
--'.-
,,----~ .
..-------..,,--..--;"'. .--...-
-",,-
$ 311.343,475
422,485,649
779,047,474
$ (8,262,924)
(525.436.000)
(752,540)
(20,97\,667)
(677,752)
376,879
(17,107,361)
562,735
" __~"_"."'_'m_."_
$ 496,012,839
1 ,512,876,598
\5,581.9\0
5,\35,357
\3,329,059
(572,268,630)
45,376,75\
$ 1,5\6,043,884
--...---, .
,-
COLLIER COUNTY, FLORIDA
STATEMENT OF REVf:NUES, EXPENDITURES ANn CHANGES IN FlIND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2008
Road Other Total
General Impact Road Community Governmental Governmental
Funu Districts Construction Redevelopment Funds Funds
Re\"cnues:
I"axes $248.150.424 $ S 12,975.896 S 3.182.300 $ 93,347,805 $ 357.656.425
Licenses and permits 140.761 17,231,731 17.372.492
Intergovernmental 42,093,551 9.186.185 26,172,171 77.451,907
Charges for services 17.558.882 5.052 3,229,429 19.905.622 40,698.985
fines and forfeitures 636.664 3.149.342 3,786.006
Interest income 30,090,172 6.884 23.490 242,379 3.968.330 34.331.255
Change in fair value
of investments (42.064 ) (127,9]6) 1165.1171 (8.356) (407.275) (750.728)
Impat:t tb:s 29,141,348 7.537,672 36.679.020
Special assessments 2.941.370 2.941.370
Miscellaneous 2.308,827 239,673 4,918,580 5,742 3,194.477 10,667,299
-J ntal revenues 340.937,217 29,265,041 30.168.463 3.422.065 177,041,245 580,834.031
Expenditures:
Current:
Ocncral government 63.460,949 33.437,058 96,898,007
Public safety 152.093.485 23,649,002 175,742,487
Physical environment 896.971 8,417,293 9.314.264
Transportation 1.219.118 6.355,505 40,678.452 48,253.075
Economic environment 1,849.794 1,096.445 10.532.522 13.478,761
Human services 10.792.336 2.063.033 12,855,369
Culture and recreation 16.477.418 19.978.570 36,455.988
Debt service:
Principal 43,080.410 43,080,410
Interest 21.816.163 21.816,163
Fisca] charges 164,870 164.870
Capital outlay 4.356.857 63214,869 69.083,387 866,331 148,287.476 285,808,920
Tota] expenditures 249.927.810 64,433,YX7 75.438,892 1,962,776 352,104,849 743,868,3 14
Excess (deficiency) of revenues
over (under) expenditures 91.009.407 (35,168.9461 (45,270,429) 1.459,289 (175,063,604) (163,034,283)
Other tinancing stJurces (uses):
Bonds issued 6.215.000 6.215.000
Premium on bonds issued 30.815 30.815
Loans issued 12.000.000 57.391.000 69,391.000
Sale of capital assets 223.]03 21.518 244.621
Insurance proceeds 7.074 3.517 197.677 208,268
Transfers in 8,326,422 26,160,062 110,337.687 144,824.171
Transfers out n09,047,625) ( 16.962,800) (471.9791 (36,592.961) (163,075,365)
Total other linancing sources (uses} ( 11)0.491,0261 21,200.779 (471.979) 137,600,736 57.838.510
Spl:cialltem - bond expenditure (See Noll: 18) (3,287,5931 (3,287,593)
Nd change in fund balances (12,769,212) (35.168.9461 (24,069.650) 987.310 (37,462.868) (108,483.366)
Fund balances aL beginning of year 8 I ,324,632 110.410.508 121.889,88 I 4.507,470 286,363,714 604,496,205
Fund balances at end of year $ 68,555,420 $75.241.562 $97.820,231 $ 5,494,780 $ 248,900,846 $ 496,012,839
The noks 10 the fll1anclal statements are an Illtegral par! of this statemenl
2(1
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, 2008
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 oyer their estimated useful lives and reportt:d as
depreciation expense.
Capital outlay
Depreciation expense
$ 285,808,920
(60,350,414)
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 proprietary funds are not recorded in the governmental funds as
there is no Ilow 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.
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds.
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 dcbt 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
$ 42,936,000
144,410
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, nt:!
Amortization of deterred loss
Amortization of premium
Amortization of discount
Increase in arbitrage rebate liability
$ (1,782,479)
169,597
(173,475)
(94,219)
1,125,409
(28,336)
( 463,489)
The net revenues of internal service funds are reported with governmental activities.
Change in net assets - governmental activities
The notes to the linancial statements are an integral part of this statement.
21
-~-~._-- -
- ~ , '-'--'-'---~'~-'--'.._,,, .~-~..,,~--
. -.--. '_.'-'-~,- ....~_........_'"
$ (108,483,366)
225,458,506
1,722,918
(23,782,028)
(2,542.377)
304,804
(75,636,815)
43,080,410
(1,246,992)
23,213,011
$ 82,088,071
,., "'-~-'-~
..
.-
COLLIER COUNTY, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BCIJGET AND ACTCiAL (NON-GAAP)
FOR THE FISCAL YEAR !:NIJ}:D SEPTEMBER 30, 2008
Variance with
Final Budget
Original Final Favorable
Bud~ct Budget Actual (Unfavorable)
Revenues:
Taxes $ 15X.025JWO $ 258.025,800 $ 248.150.424 $ (9.875,376)
Licenses and permits 161.000 161.000 140.761 (20,239)
Intergovernmental 47.411,500 47.412.545 42.093.551 (5,318.994)
Charges for services 24,703.448 1.UD2,66S 20.962.782 (3.869.886)
Fines and forfeitures 575.700 575.700 636.664 60.964
Interest income 34.632,300 34.632,300 30.090.172 (4.542.128)
Miscellaneous 10,466,400 10,544,402 12,018,427 1,474.025
Total revenues 375,lJ77,14S 376.184,415 354,092,781 (22,091,634)
Expenditures:
Current:
General government
Hoard of County Commissioners personal services 1.056.700 1.056.700 986.180 70,520
Hoard Dr COllllty Commi<.;sioncrs operating 105.100 133.200 140.039 (6.839)
('ounty manager administralive personal services 973.600 980.200 919.839 60.361
County manager administrative operating 31,300 31,300 60.314 (29,024)
Budget and management persO/1dl services 866.800 860,200 800.416 59.784
Hudget and management operating 72.20U 72.200 73,590 11,390)
Administrative services personal services 5.928.400 5.9Y2,400 5.453,586 538,814
Administratiw services operating 2,838.700 1.T"Hd7U 2.817.560 (81.190)
Administrative services capital uutlay 2U4.300 196.800 60,673 136,127
Iluman resources administration personal services 1.583.100 1.605.100 1,551.058 54.042
Iluman resources administration operating 31 LlOO 2~9.631 271.595 18.036
Human resoun:es administration capital outlay _~.OOO 3.0UO 3,000
Clerk of the Circuit COllrt personal services 7,188.500 7,270,000 6,3U6,5UI 963,499
Clerk of the Circuit Court operating 4.034,6UO 3.433.100 2.517.842 915,258
Clerk of the Circuit Court capital outlay 518.200 31lL200 3,32S 314,872
Property Appraiser personal services 4,914.546 4.914.546 4.813.602 100.944
Property Appraiser operating 2.291.733 2.29],713 2.133.880 157.853
Property Appraiser capital outlay 209.117 209,117 66.190 142,927
Tax Collector personal services lJ.20S.5S I 9.092,126 9.092.126
Tax Collectur operuting 2.491,692 2.400.5\)7 2,391.454 9.143
"J ax Collector l:apltal outlay IOJ.411 21U.569 2]0.569
County attorn;.:>y personal services 3.173.600 3.173,600 3.034,355 139,245
County attorney operating 316.400 -00 -5~ 463.674 70.084
)"'J.I
County attorney capita! uutlay 44.000 16.642 16.120 S22
Natural resources personal servil'es 221.70U 224.000 218.630 5.370
Ndtural resources l)perdling :LSH7,6Ul1 3.HH5.300 204.183 ].681.117
~atural n:Sllun:cs cupital outlay 1.500 !.SOO UOO
"
""
Circuit court costs operating g3,700 73,800 28,722 45,078
Circuit court costs capital outlay 9,900 7,g14 2,Og6
Courthouse security personal services 106,200 106,200 95,325 10,g75
Courthouse security operating 1.016.600 1,016,600 947,738 68,862
Courthouse security capital outlay 62,000 62,000 48,426 13,574
County court cost operating 46,200 43,200 9,662 33,53g
County court cost capital outlay 3,000 2,654 346
State Attorney operating 519.400 519,400 498,762 20,638
State Attorney capital outlay 23,000 23,000 19,610 3,390
Public Defender operating 216.100 216,100 176,628 39,472
Public Defender capital outlay 4.100 4,100 1,933 2.167
Other general administrative personal services 60,000 126,000 125,960 40
Other general administrative operating 7,992,600 9,112,211 6,834,876 2,277,335
Facilities management personal services 3,509.300 3,539,300 3.527.678 11 ,622
Facilities management operating 7,836.700 g,020,577 g.126.g4g (106,271 )
Facilities management l,;apital outlay 26g.000 255,390 158,433 96,957
Sheriff personal services 3,812.900 3,812,900 3,945,863 (132,963)
Sheriff operating 156.500 156,500 133,382 23,118
Sheriff capital outlay 20.912 20,912
Supervisor of Elections personal services 1,7n,500 1,775,650 1.619,69g 155.952
Supervisor of Elections operating 2,230.IOIJ 2,156,739 1,894,613 262,126
Supervisor of Elections capital outlay 3.500 24,856 124,303 (99,447)
Real properly management personal services 932,000 932,000 871,881 60,119
Real property management operating 37,400 37,400 62,213 (24,813)
Real property management capital outlay 2,124 (2,124)
Total general government 83,224,380 83,979,624 73,893,372 10,086,252
Public safety
Sheriff personal services 120,892,900 120.g92,900 122,393,257 (1,500,357)
Sheriff operating 27.488,700 27,467.ng 25,788,601 1,679.lg7
Sheriff capital outlay 4,487.600 4,487,600 3.086.275 1,401,325
Emergency management administration personal services 83IJ.500 830,545 g21.124 9,421
Emergency management administration operating 202,700 641,627 434,983 206.644
Emergency management administration capital outlay 10.000 10,000 9,311 689
Helicopter operations personal services 699,400 745,400 715,515 29,885
Helicopter operations operating 864.800 818,800 837,662 (18,862)
Medical examiner services operating I,JIg.200 1,IJg,200 1,102,343 15,857
Total public safety ] 56,594,800 157.012,860 155,1 89,CJ71 1,823,789
Physical environment
Conservation and resource management personal services 807,70IJ 813.000 727,454 85.546
Conservation and resource management operating 21 0,300 210,3IJO 147,265 63,035
lmmokalee cemetery operating 25,800 25,800 22,252 3,548
Total physical environment I,043,gOO 1,049, I 00 896,971 152,129
Economic environment
Veterans services personal services 285,700 285,700 274,745 10,955
Veterans services operating 80,200 80,200 50,183 30,017
Impact fee assistance operating 750.000 750,000 481,580 268,420
Housing and urban improvement operating 1,612,100 1,612,100 1.524.866 87.234
Total economic environment 2,728,000 2,728,000 2,331,374 396,626
23
,-"~- .
"
-----
,~ ....._',~ .. ,r
'~.,._...~
.-,--..,.
~~~--,-_.. "'-"
~,..--.-.-.._"."
..
.-,
Human services
Health Care Responsibility Act operating 50.UUlI 50.000 14,021 35.979
D(lmcstic animal services personal services 1,967,300 1.967.300 UQl,l29 146,171
Domestic animal services operating 784.600 784.600 818.061 (33.461)
Domestic animal services capital outlay 297,100 415.075 106,809 308.266
Health department operating 1,789,SOO l,n9,SOO 2.054.410 (264,910)
Ikalth department capital nutlay 20,000 20.0UO 18.789 1.211
Mental health operating 917,600 917.600 1.142.425 (224,825)
Client assistanc(,: personal services 605,600 605,600 569.376 36.224
Client assistance operating 4.142.700 ,U70.573 4.041.577 12g,996
Client assistance capilul outlay 3,000 3.000 3.000
Public services division office personal services 304.400 313.300 301.993 11,307
Public services division office operating 19.70U 20,000 29,344 (9,344)
Total human services 10,90 I ,500 11.056.548 IU,917,934 138,614
Culture and recreation
Ijbrary administration personal services 5,549.200 5.653.700 5,23 I ,.193 422,307
Library administration operating 1,238.100 1.238.100 1.356.402 (118,302)
Library <ldministration capital outlay 240,500 240.500 219,390 21,110
l~xtension services personal services 182,300 184.300 177,929 6,371
Extension services operating 11,900 11.900 10.892 1.008
Extension services capital outluy I.uon 1.000 1.000
Beach and water park operation personal services 5,293.700 5,279.500 4.779.954 499,546
Beach and water park operation operating 5.434,700 :\4:;7,226 4.920.848 516,378
Reach and \-vater park operation capital outlay 19U.100 215.874 172.194 43,680
Total culture ami r(,:(,:n:ation 18,1.1,500 18.262.100 16.870.002 1,392,098
Total expenditures 272,633,l)gO 274,088,232 260,098,724 13.989,508
Excess of revenues over expenditures 103.3.3.168 102.096.183 9].994.057 (8,102,126)
Other financing sources (uses):
Sale of capital assets 350.UOO 350.000 223.103 (126.897)
Insurance proceeds 2.254 7.074 4,820
Transfers in 2.000,300 2.000.300 4.922.522 2.922,222
'fransfers out (118,261.968) (121,124.976) ( 110,747.625) 10.377,351
Total other financing sources {uses} (115,911.668) (118.772.422) ( I 05,594.926) 1],177,496
Special item - bond expenditure 3,552.500 3,287,593 264,907
Net change in rund balance 112.568.5001 (20.228,7]9) ( 14.888,462) 5.340,277
Fund balance at beginning of year 50.60nOO 58,0 I g,23 7 58,018,237
Fund balance at end of year ) 38.0]9.300 S 37,n9,498 $ 43.129,775 $ 5,340,277
Rccom:iliation:
Net change in fund bulam:c. budgetary bm,lS
Bad debt expense
Net change in f'<m value of investments
Advances budgeted as Lransfcrs
Impacl fee assistance receivable
Net change in fund balance, ClAAr basis
$ (14.888.4621
(2(),266)
(42.064)
1,700.000
481.580
$ (12,769,212)
The notes to the tinanclal statements arc an integral pc1l1 of this st<ltelllent.
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, 2008
Variance with
Final Budget
Original Final Favorable
Budget Budget Actnal (Unfavorable)
Revenues:
Taxes $ 3,187,300 $ 3,1 82,300 $ 3,182,300 $
Interest income 10.000 10.000 242,379 232,379
Miscellaneous 5,742 5,742
Total revenues 3,192,300 3,192,300 3,430,421 238,121
Expenditures:
Current:
Economic environment
Bayshore/Gateway personal services 318,000 349,020 348,904 116
Bayshore/Gateway operating 679,100 698,100 209,345 488,755
Bayshore/Gateway capital outlay 1,454,000 1,254,000 863,642 390,358
Immokalee redevelopment personal services 180,200 215,381 159,284 56,097
lmmokalee redevelopment operating 387,000 619,426 378,912 240,514
Immokalee redevelopment capital 68,000 68,000 2,689 65,311
Total expenditures 3,086,300 3,203,927 1,962,776 1,241,151
Excess (deficiency) of revenues over
(under) expenditures 106,000 (11,627) 1,467,645 1,479,272
Other financing uses:
Transfers out (500,000) (700,000) (471,979) 228,021
Total other financing uses (500,000) (700,000) (471,979) 228,021
Net change in fund balance (394,000) (711,627) 995,666 1,707,293
Fund balance at beginning of year 3,985,100 4,236,526 4,236,526
Fund balance at end of year $ 3,591.100 $ 3,524,899 $ 5,232,192 $ 1,707,293
Reconciliation:
Excess of revenues over expenditures, budgetary basis
Net change in fair value of investments
Net change in fund balance, GAAP basis
$
995,666
(8,356)
987,310
$
25
.,'_.,-_._~ ..
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n____,_~,..,_......., _
.--_._--,~-_.
'- __", ,"
COLLIER COI'NTY, FLORlIJA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
Busmcss-typc ActivJ(il:s Enterpnse Funds Governmental
Activities -
Coullt} \\'<\Icr Oth\.'f Internal Service
and Sewer I-unds Total Funds
ASSETS
Current assets:
Cash, cash eqUivalents and investments $ 75889646 $ 26.797.238 $ 102.686,884 $ 46.172.114
ReceIvables'
Trade, net :\106.744 6.146,339 11,253.083 643,956
Special assessments 712,IIX 712,118
Interest S27,OW 135.955 963024
Unbilled revenue 5,125.280 279.860 5.405.140
Due from other funds 11.903 71.210 83.113 118.495
Due from other governments 116.315 922.734 ],039,049 83.107
Deposits 13.294 13.294 512,1146
Inventory 3_44~U44 170.074 3.618.318 420,127
Prepaid costs 50,192 50.192
RcstriCled assets
Cash, l:i;lsh eqUIvalents and investments 7,256,234 746,909 8.003.143
Total current assets 98,506.847 35.320,511 133.827,358 47,950,745
Noncurrent aSSl:ts:
Rt:stricled assets.
Cash. cash eqUIvalents and invcstments J2.850.SIS 32.85U,815
Receivables
Special assessments 1.060.12~ 1.060.128
Notes 3,457,704 3,457.704
Deferred charges 1.669.166 1.669.166
Capital assets'
J ,and and nondeprecwble capital assets 14J.49S.43S 18.330.917 161.829.355
Depreciable capital assets, net 722,431.027 31,247,412 753.678.439 14,388.524
Total noncurrcnt assets 904.967.278 49,578,329 954,545,607 14.388,524
rotal assets 1,003,474,125 84,898.840 1,088,372,965 62,339,269
lContinued)
26
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
BusinesHype Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
LIABILITIES
Current liabilities:
Accounts payable $ 4,337,105 $ 3.388,273 $ 7.725,378 $ 831.175
Wages payable 875,626 812,586 1.688,212 115.137
Retainage payable 763,343 42,242 805,585
Due to other funds 8.914 73 8.987 255
Due to other governments 61.n6 24,354 86.140 64
Due to individuals 71,538 422,051 493.589
Self-insurance claims payable 5.552,207
Compensated absences 1,020,949 725,285 1.746.234 162.732
Capital lease obligations 126.145 126,145
Interest payable 2.730,339 2,730,339
Bonds and loans payable 11.087.179 11,087,179
Liabilities payable from restricted assets:
Accounts payable 938,511 938.511
Retalllage payable 6.090.136 61,974 6.152.110
Refundable deposits 154.880 306,115 460.995
Notes payable 72.707 72.707
Unearned revenue 378,820 378,820
Total current liabilities n,2I3.013 6,287,918 34,500.931 6,661.570
Noncurrent liabilities:
Arbitrage rebate 1.505,580 1.505,580
Self-insurance claims payable 4,733.793
Compensated absences 255.237 181,322 436.559 40.683
Capital lease obligations 491,740 491.740
Net pension obligation 905.979
I_andfill post-closure liability 1,815.160 1.815.160
Rands and loans payable, net 251.452.650 251.452.650
Totalnuncurrenl liabilities 253,213,467 2,488,222 255.701.689 5,680,455
Total liabilities 281.426,480 8.776.140 290,202.620 12,342,025
NET ASSETS
Invested in capItal assets, net of related debt 609.904,402 48.960.444 658,864,846 14,388.524
Restricted for growth related capital expansion 15.637,780 15,637.780
Restricted for renewal and replacement 300,000 300,000
Restricted for debt service 14,226.979 14.226.979
Umestricted 81.978,484 27.162,256 109.140,740 35.608.720
Total net assets $ 722,047.645 $ 76.122.700 798,170.345 $ 49.997,244
Cumulative consolidation adjustment for internal service fund activities related to enterprise funds. 4,620,493
Net assets of Business-type Activities $ 802,790.838
The notes to th<: 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, 2008
Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
Operating revenues:
Charges for services $ 98,982.033 $ 56,099,681 $155,081,714 $ 71,392,559
Insurance proceeds 4,0 II ,040
Miscellaneous 709,807 1,521,593 2,231,400 687,070
Total operating revenues 99,691,840 57,621,274 157,313,114 76,090,669
Operating expenses:
Personal services 23,460,326 21.966.708 45,427,034 3,053,585
Operating 26,246,368 50,325,155 76,571,523 61,745,355
Depreciation and amortization 27,156.685 3,130,877 30,287,562 367,265
Total operating expenses 76,863,379 75,422,740 152,286,119 65,166,205
Operating income (loss) 22,828,461 (17,801,466) 5,026.995 10,924,464
Non-operating revenues (expenses):
Operating grants and contributions 121,479 4.271,815 4,393,294
Interest income 5.560.834 367.211 5,928,045 20 I ,550
lnsurance reimbursement 42.197 34,511 76,708
Change in fair value of investments (171,151 ) (41,090) (212,241) (52,025)
Rebatable arbitrage (282.867) (282,867)
Interest expense (8.883.950) ( 10,113) (8,894,063)
Loss on disposal of capital assets ( 17,605) (238,010) (255,615) (21,274)
Total non-operating revenues (expenses) (3,631,063) 4.384,324 753,261 128,251
Income (loss) before contributions and transfers 19.197.398 (13,417,142) 5,780,256 11,052,715
Capital grants and contributions n ,314.876 12,114.633 33,429,509 13,690,992
Transfers in 224,203 24,650,217 24,874,420
Transfers out (4.576,519) (2,046,707) (6,623,226 )
Change in nt:l assets 36,159.958 21,301.001 57,460,959 24,743.707
Net assets - beginning, as previously stated 687,36.1,264 54.821.699 25,253,537
Prior period adjustment (1,475,577)
Net assets - beginning, as restated 685,887,687 54,821,699 25,253,537
Net assets - ending $ 722,047,645 $ 76,122,700 $ 49,997,244
Consolidation adjustment for internal service fund activities related to enterprise funds. 1,530,696
Change in net assets of Business-type Activities $ 58,991,655
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, 2008
Governmental
Activities -
County Other Internal Service
Water and Sewer Funds Total Funds
Cash flows from operating activities:
Cash received for services $ 99,569,348 $ 48,862,066 $148,431,414 $
Cash received from other funds for services 64,846,369
Cash received from employt:es for services 6,636,665
Cash received from insurance 3,657,200
Cash received from other governments for services 18 18 464,435
Cash received from refundable deposits 50,000 524,714 574,714
Cash received from retirees for services 1,269,945
Cash payments on behalf of retirees (1,109,750)
Cash payments tor goods and services (27,254,482) (43,369,790) (70,624,272) (62.390,338)
Cash payments to employees (23,360,622) (21,764,418) (45,125,040) (3,003,320)
Cash payments on refundable deposits (26,000) (631,826) (657,826)
Net cash provided by (used for)
operating activities 48,978,262 (16,379,254) 32,599,008 10,371,206
Cash flows from non-capital financing activities:
Cash received from operating grants 5,142,985 5,142,985
Cash transfers from other funds 224,666 28,449.232 28,673,898
Cash transfers to other funds (4,657. I 02) (5,834,181) (10,491.283)
Net cash provided by (used for) non-
capital financing activities (4,432,436) 27,758.036 23,325,600
Cash flows from capital and related
financing activities:
System development charges ]0,002,538 10,002,538
Special assessment collections 659.742 659.742
Receipts from insurance reimbursements 42,197 34,51 ] 76,708
Proceeds from disposal of capital assets 359,135 29.517 388,652 14,564
Proceeds from capital grants 1.894,500 2.184.153 4,078,653
Proceeds from state revolving loans ],748,134 1,748,134
Payments for capital acquisitions (55,165,974) (13,401,094) (68,567.068) (319,650)
Principal payments on state revolving loans (5,365,046) (5,365,046)
Principal payments on bonds (4,745,000) (4,745.000)
Principal payments on leases (42,398) (42,398)
Interest and fiscal agent fees paid (10,236,755) (10,] 13) ( I 0,246,868)
Net cash provided by (used for) capital and
related financing activities (60,806,529) (I ],205,424) (72,011,953) (305,086)
Cash flows from investing activities:
Interest on investments 6,141,804 325,022 6,466,826 221,440
Change in fair value of investments (171,151) (41.090) (212,241) (52,025)
Net cash provided by investing activities 5,970,653 283.932 6,254,585 169,415
Net increase (decrease) in cash, cash equivalents and investments 1]0.290,050) 457.290 (9,832,760) 10,235,535
Cash, cash equivalents and investments, October I, 2007 126,286,745 27,086,857 153,373,602 35,936,579
Cash, cash equivalents and investments, September 30, 2008 $ 115,996,695 $ 27,544,147 $ 143,540,842 $ 46,172,114
Current cash, cash equivalents and investments $ 75,889,646 $ 26,797,238 $ ] 02,686,884 $ 46.]72,114
Current cash, cash equivalents and investments - restricted 7,256,234 746,909 8,003,143
Noncurrent cash, cash equivalents and inwstmcnts - restricwd 32,850,815 32,850,815
Cash, cash equivalents and investments, September 30, 2008 $ 115,996,695 $ 27,544,147 $ 143.540,842 $ 46,172,114
(Continued)
29
--.---
.
-
........__..._~".._.~
~.-
.-..
_~,__.....M.__,.,,_."._
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FllNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVII>ED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Business-type Activities Enterprisl: Funds Governmental
Activities -
COUllt\- Other Internal Service
Water and Sewer Funds Total Funds
Operating income (loss) $ 22,828,461 $(17,801,466) $ 5,026,995 $ 10.924,464
Adjustments to reconcile operating income (loss) 10
oet cash provided by (used for) operating activities:
Depreciation expense 26,552.696 3.] 30,877 29,683,573 367,265
Amortization of bond issuance costs 543.534 543.534
Amortization of utility acquisition adjustment 60,455 60,455
Net changes in assets and liabilities:
Trade receivable (207,208 ) (936.550) (1,]43,758) (32],282)
Due from other funds 53.388 (7.080) 46,308 39].948
Due from other governments 46.450 566 47.5]6 (33,789)
Deposits (7J!27) (7.027) (95,208)
Prepaid costs 8.290 (50.192) (4],902)
Inventory (279,588) ],808 (277.780) (45,577)
Accounts payable (83] ,8(6) (25.179) (856,9i5) (472.502)
Wages payable r'.792 ] ]3.22] 161.013 20.783
Notes payable
Due to other funds ( 1.056) (W832) (40.888) 115,42] ]
Due to other governments 61.778 3.548 65.326 64
Due to indIviduals 376 405,846 406.222
Compensated absences 51.9]2 88,473 140.385 29,482
Refund<lble deposits 49315 (107,] ]2) (57.797)
Unearned revenue (6.233) (6,233)
Self-insurance claims payable (1,285,000)
Net pension ubilgation 905.979
Landfill post closure liability 11.]49.949) (1,]49,949)
Total adjustments 26-149,illl 1.422,2]2 27,572,0]3 (553,258)
Net cash provided hy (used lor) operating activities $ 48,978,262 $( ]6,379,254) $ 32,599,008 $ ]0,37],206
Non-cash investing, capital and financing activities:
I he enterprise funds experienced a non-cash investing loss due l\l a change in the fair value ofinvestmcnts as follO\vs:
County Water and Sewer
Other funds
Total
$
{171,151)
(41.090)
(212,24])
$
1'hen: \vere non-cash developer contributions of $] 0, I ] 7.044 in the COllnty \\/a1;.;1' and Sev..'er District fund.
There were nun-cash contributions or $1 0,096,889 III the other I.:tlterprise funds, as assets with a historical cost
of $1 0, 163,338 and accumulated depreciation of $66,449 were transferred in from other funds. In addition, assets
\-vith a fair value of $488,580 \verc purchased ti.lr $48.857.
The internal service funds experienced a non-cash investing loss due to a change in tht: fair value of investments as follows:
Internal service funds $ (52,025)
There were non-cash contrihutions of $13,690,992 in the internal servicc funds, as assets with a historical cost
of $13,792,071 and accumulated depreciation of $1 0 L079 were transferred in from other funds.
I he notes to the financial statements drc an integral part of this statement.
.)(1
COLLIER COUNTY, FLORIDA
ST A TEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2008
Agency
Funds
ASSETS
Cash, cash equivalents and investments
Receivables:
Interest
Other
Total assets
$
32,678,806
$
31,275
42,455
32,752,536
LIABILITIES
Due to other governments
Due to individuals
Refundable deposits
Due to special assessment holders
Total liabilities
$
$
4,975,705
\ ,822,1 09
19,981,727
5,972,995
32,752,536
The notes to the financial statements are an integral part of this statement.
3\
THIS PAGE INTENTIONALLY LEFT BLANK
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
INDEX
NOTE
PAGE NUMBER
I Summary of Significant Accounting Policies 34
2 Cash, Cash Equivalents and Investments 46
3 Trade Receivables 49
4 Interfund Payables and Receivables 50
5 Capital Assets 52
6 Long-Term Obligations 53
7 Conduit Debt Obligations 61
8 Defeased Debt 61
9 Pension Plan Obligations 62
10 Transfers 64
II Net Assets/Fund Balances 64
12 Risk Management 66
13 Other Postemployment Benefits 68
14 Landfill Liability 72
15 Significant Contingencies 73
16 Significant Commitments 74
17 Fund Deficits 74
18 Special Item 75
19 Prior Period Adjustment 75
20 Subsequent Events 75
33
_>_._M~.."~
~.____~___~ ___. "" _...., _.......'...r..,._.V" ,__._.
. ,..,_" .'., ." ,,.. ....~~_~_".,..__...._.,_......____....~___.~.__u
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE I - 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 Sheritf each maintain their own aecotll1ting systems.
F or 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 tinancially
accountable for or organizations which should be ineluded in the reporting entity because of the
nature and signitieance of their relationship with the primary government. Financial accountability
is determined by the primary govenunent's ability to appoint the voting majority of the entity's
board, impose its will on the organization, and the existence of a financial benetit/burden
relationship or fiscal dependency.
The County's blended component units consist of organizations whose respective governing Boards
arc 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 signiticantly influenced by the County. In accordance with Governmental Accounting
Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended by GASB
Statement No. 39, Determining TVhether Certain Organizations are Component Units, these
organizations are reported as if they were part of the County's operations.
Collier County 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 County Communitv Redevelopment Agency (CRA)
The CRA was established by Resolution 2000-82 to benefit blighted areas in both
the lmmokalee 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, 2008
NOTE I - 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 County Housing Finance Authority
The Authority was formed in 1980 by Collier County Ordinance 80-66 for the
purpose of stimulating the construction of residential housing for low and
moderate income families through the use of public financing. Their financial
position and results of operations are reported in the accompanying financial
statements and the outstanding conduit debt issued by the Authority is disclosed in
Note 7, "Conduit Debt Obligations".
Collier County Health Facilities Authority
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 tinancial statements and the outstanding conduit
debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations".
Collier County Industrial Development Authority
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 Authority
The Authority was created in ] 999 by Collier County Resolution 99- I 77 to assist
institutions for higher education in the construction, financing and retinancing of
projects. Their financial position and results of operations are reported in the
accompanying tinancial statements and thc 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
~>._~._-
-
_.. _.'_ - ~...._. ........ ".....-..........r ."_~.,_~.~.....n._"_.__..._,_.._.. .._.."....,. _ "._. "
-.,....... _.. ,-.-.-- . ~ ~ .-',
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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
Collier County Health Facilities Authority and
Housing Finance Authority
5811 Pelican Boulevard, Suite 210
Naples, Florida 34108
Bayshore Gateway Community
Redevelopment Agency
2740 Bayshore Drive, Unit 17
Naples, Florida 34112
Collier County Industrial Development
Authority and
Educational Facilities Authority
3050 N. Horseshoe Drive, Suite 120
Naples, Florida 34104
Immokalee Community Redevelopment
Agency
3301 East Tamiami Trail
Naples, Florida 34112
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 etfect 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.
36
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - CONTINUED
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 amoWlts
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 COWlty government.
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 nonmajor funds on an
aggregate basis for the governmental and proprietary funds. Following the governmental fund
balance sheet and statement of revenues, expenditures and changes in fund balances 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 FWld - the General fund is the general operating fund of the County. All general tax
revenues and other receipts that are not accoWlted 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 COWlty
Cornmissioners' general operating fund in the County's consolidated General FWld.
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.
37
--
~. ,-.
"---_._._._._~-,,~-"',.,;,-,-=. .... -""""".~'~~-._' ~;.".",..._-- ._",.._q._,,--_.__..,~~,.,,-~~_..__..-.
-- ~,----- ------,-'--
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF PRESENTATION - CONTINUED
Community Redevelopment Fund - the Community Redevelopment Fund is used to account for the
receipt and expenditure of tax increment revenues relating to the Bayshore/Gateway Triangle and
Immokalee Community Redevelopment Authorities.
The following is reported as a major enterprise fund:
County Water and Sewer Fund - thc County Water and Sewer fund is used to account for the
provision of water, wastewater and eft1uent services to certain portions of the County's
unincorporated area.
Collier County also maintains the following nonmajor fund types:
S.pecial 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.
~ital Project Funds -- Capital project funds are used to account for the acquisition and
construction of major capital facilities other than those financed by proprietary funds.
Enterprise Funds - Enterprise funds are used to account for activities for which a fee is charged
to external users for goods or services.
Internal Service Funds - Internal service funds are used to account for the provision of goods and
services by one department to 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, privatc organizations or other governments. Thc Board of County
Commissioncrs, Shcriff, Clerk of the Circuit Court and Tax Collector all maintain agency funds.
38
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF ACCOUNTING AND MEASUREMENT FOCUS
Basis of accounting refers to when revenues and cxpenditures 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 food 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 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 expeetcd 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.
39
,_,"._~.,_",+,~" - ~"">__'"__o"",,",,_,_._e,~.,".___
._...." .........,..~,..~_ ".," "_.",,,_ ....._.'._.......,,_,,",_...~..""~-.<_.. _ _'._"'~,._...._w,.,_.."'___..._. , ~ _.
_.._.."
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BUDGETS AND BUDGETAR Y DATA
The following are the statutory procedures followed by the Board of County Commissioners in
establishing the budgets for the County:
I) Within fifteen days after certilication 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 wnends 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 linalize the budget and adopt a millage rate. This
hearing is held not less than two days and not more than live days after the day that the
advertisement is lirst published. Prior to September 30, the millage levy is adopted by a
separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage
rate, except as allowed for by emergency provision with strict public notice requirements. This
is followed by the approval and ratification of the final budget.
5) The resolution approved at the tinal hearing is torwarded to the Property Appraiser, Tax
Colleetor 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 wnended in accordancc with the Florida Statutes.
7) Florida Statute Section 129.07, as amended in 19n!, provides that expenditures in excess of
total fund budgets are unlawful. However, because the Board approves all budgetary changes
between departments, except those approwd by the County Manager, the departmental budget
becomes the level of control.
40
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BUDGETS AND BUDGETARY DATA ~ CONTINUED
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 revenucs and expenses and mark to market activity on
investments. All unencwnbered 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 prcsented in the budget to actual statements.
CASH. CASH EQUIVALENTS AND INVESTMENTS
The County maintains a cash and investment pool for all funds. The Clerk of the Circuit Court
administers the investment pool pursuant to Section 28.33 Florida Statutes. Interest is primarily
allocated to the general fund of the Clerk of the Circuit Court, which is included in the
comprehensive general fund in the accompanying financial statements. Some funds are specifically
required to receive interest, and that interest is allocated to those funds based on the individual
fund's average daily balance in the pool. See litigation Note 15. Pursuant to the provisions of
GASB Statement 31, Accounting and Financial Reportingfor Certain Investments andjiJr External
Investment 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.
41
-'--"~-~'~-'~-- - --~'._- _._-,,_.,,"_. ~" ~--~~~"--'-~-'--'"-
~'__."'~__"__,,'_'" _'u_' __~~~~ ., , "._.,.._ _'_._~_.~__
-,--~-~..-
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
ACCOUNTS RECEIVABLE - UNBILLED REVENUE
Unbilled charges for services are accrued in the County Water and Sewer and Goodland Water
funds by prorating subsequent bills.
INVENTORIES AND PREP AID COSTS
Inventory is valued at cost using the first-in, Erst-out method. Inventory in the governmental funds
consists of supplies held for eonsumption. The cost is reeorded as an expenditure at the time
inventory items are consumed rather than when purehased. 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. Invcntories 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 constmcted 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.
classes of depreciable capital assets is as follows:
The estimated useful life of the various
Fixed Asset
Estimated Useful
Life
_~..n_..._.._._.__
20-45 years
3-30 years
4-45 years
3-10 vcars
~
Buildings
Infrastructure
Improvements other than buildings
Machinery and equipment
For constructed assets including buildings, infrastmcture 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.
42
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 reflectcd in the fund financial statements.
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 (F ASB) Statement No. 34, Capitalization of Interest Cost, and F ASB
Statement No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax-Exempt
Borrowings and Certain Gifis and Grants, when applicable.
PROPERTY TAXES
Property taxes become due and payable on November I st of each year and become delinquent on
April I st of the following year. Property taxes receivable and a corresponding allowance for
uncollectible property taxes are not included in the financial statements, as delinquent taxes as of
September 30, 2008 are not significant. Discounts on property taxes are allowed for payments
made prior to the April lst delinquent date as follows: November - 4%, December - 3%, January
- 2%, and February - I %. 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 duc in
November 2008 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, 2008 are as follows:
43
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----.
-,._."-~--"-",--,-,-,,",,,,,""---' , ..,..,_.._~,,..
~ ,---.-. - -'--'.""-"--"._~~~-'~~'~'-'--"'-""~"._--~-~-'.- ,~ --,~-~-
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
PROPERTY TAXES - CONTINUED
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 I, 2007
July 1,2007
Within 35 days of the certification of the assessment roll
October I, 2007
November 1,2007
March 3 ] , 2008
April 1,2008
Prior to June 1, 2008
APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS
In accordance with GASB Statement No. 20, Accounting and Financial Reportingfor Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has
elected not to apply those F ASB 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 trom those estimated
IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
Effective October I, 2007 the County adopted the provisions of GASH Statement No. 45,
Accounting and Financial Reporting by Employers fil/' Postemployment Benefits Other Than
Pensions (GASB Statement No. 45). The effect of this adoption was to establish uniform
reporting standards for other postemployment benefit (OPEB) plans, and to change the
measurement, recognition and display of OPEB expense and related liabilities (assets), note
disclosures and required supplementary information (RSI) in annual financial reports of
govcrnmental entities. See Note 13 1<'" a description of the County's OPEB plan.
~4
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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, 2008 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 agrecments 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.
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 Sheriff's 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 year end.
45
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS
As of September 30, 2008, the County had the following cash, cash equivalents and investments:
Investment Maturities Fair Value Can Date Can Frequency Rating
Cash on hand N/A $ 80,285 N/A N/A N/A
Demand deposits N/A 178,428,415 N/A N/A N/A
State Board of Administration Pool N/A 724,487 N/A N/A N/A
Federal Home Loan Mortgage Corp. 11/17/2008 24.937.500 none N/A AAA
Federal Home Loan Mortgage Corp. I 1/24/2008 24.927.500 none N/A AAA
Federal National Mortgage Assoc. 2/23/2009 24.702,500 none N/A AAA
Federal Home Loan Bank 3/23/7009 24,984,500 none N/A AAA
Federal Home Loan Bank 3/24/2009 24.968,750 none N/A AAA
Federal Home Loan Mortgage Corp. 4/2/2009 24,865,500 7/2/2008 continuous AAA
Federal Home Loan Bank 4/7/2009 49,828.000 7/7/2008 continuous AAA
Federal Home Loan Bank 5/6/2009 49,875.000 11/6/2008 one time AAA
Federal Home Loan Mortgage Corp. 4/30/2010 25.015,000 8/1 /2008 continuous AAA
Federal Home Loan Mortgage Corp, 6/220 I 0 35.003.150 9/2/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/4/2010 50,063,000 9/4/2008 continuous AAA
Federal National Mortgage Assoc. 6/1 7/20 I 0 50,078,000 9/17/2008 continuous AAA
Federal Home Loan Mortgage Corp, 6/30/'20] 0 15.046.500 9/30/2008 continuous AAA
Federal National Mortgage Assoc. 6/30/2010 25,078,250 12/30/2008 one time AAA
Federal National Mortgage Assoc, 6/3 2011 25,039.000 12/3/2008 one time AAA
Federal National Mortgage Assoc. 6/24/20 II 25.117,250 6/24/2009 one time AAA
Federal Home Loan Mortgage Corp. 2,'2/20] 2 25,185,250 2/2/2009 one time AAA
Federal National Mortgage Assoc. 8/22/2012 25,086,000 8/22/2008 Quarterly AAA
Federal National Mortgage Assoc. 1/3/2013 50,250,000 7/3/2008 continuous AAA
Total $ 779,283,837
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. Investment income is allocated monthly to participating funds, as mentioned
above, based on the percentage of each fund's average daily balance in the total pool.
CREDIT RISK
Credit risk is the risk that an issuer or other eounterparty 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 lnvestment Policy limits credit risk by restricting
authorized investments to lhe following: The Florida Local Government Surplus Trust Fund (SBA);
Direct obligations ot: or obligations backed by the lull faith and credit or the United States
Government; U.S. govemment sponsored Corporation/Instrumentalities (except for Student Loan
Marketing Association); Certificate of Deposits collateralized by U.S Government Securities or
46
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
CREDIT RISK - CONTINUED
Agencies; fixed income mutual funds collateralized by U.S. Government Securities or Agencies;
domestic bankers' acceptances rated "AN' or higher; prime commercial paper rated "A-I" and "p-
I"; tax-exempt obligations rated "AN' 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 ofthe collateral shall maintain a
minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and
Instrwnentalities with a term over five (5) 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, 2008, the
Sheriff had $724,487 invested in the State Board of Administration's Local Government Surplus
Funds Trust Fund Investment Pool. Of this amount, $692,653 is invested in the LGIP and
$31,834 in the Fund B Surplus Funds Trust Fund. The LGIP investment is fully liquid and
carries a weighted average days to maturity of 8.5 days. Fund B is accounted for as a fluctuating
net asset value pool and the fair value factor for September 30, 2008 was .798385. The Fund B
amount has a weighted average life of 9.36 years. Fund B cash holdings continue to be
distributed to participants as they become available from maturities, sales and received income.
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 50% to 125% 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 ofthe same type as the depository in default.
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, 2008 the County had demand deposits of $178,428,415. These demand deposits
do not include discretely presented component unit deposits of $501,700. 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.
47
, ---
0...,.... ____. .~~-._. , __,~.__._-....""',=_._'_
,...,.,.,.-.,,". .. -, ~ .....-_. _.._.,-".~._..._.,._-
--.
---~.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
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 strueturing the portfolio to meet daily cash flow
demands. Investments shall have an averagc maturity of not morc than live 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 arc used to invest funds associated with reserves
or liabilities that are not associated with a specifically identilied cash flow schedule.
CONCENTRATION OF CREDIT RISK
The County's investment policy cstablishes limitations on portfolio composition in order to
control credit risk. The policy allows 100 percent of the portfolio to bc invested in U.S.
Government Securities, Agcncies and Instrumentalities (cxcluding mortgage securities), 50
percent to be invcsted in SBA, 30 percent to be invested in Certificates of Deposit, 20 percent to
bc invested in qualifying repurchase agreements and 10 perccnt each in the catcgories 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 ti)llows, at September 30, 2008:
Issuer
Percent of
Portfolio
Fcderal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgagc Association
Total U.S. Government Instrumentalities
29.0%
19.0%
29.0%
77.0%
48
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
CONCENTRATION OF CREDIT RISK - CONTINUED
Reconciliation of cash, cash equivalents and investments to the basic tinancial statements:
Primary government:
Cash, cash equivalents and investments
Restricted cash, cash equivalents and investments - current
Restricted cash, cash equivalents and investments - noncurrent
$ 371,054,714
47,688,123
327,862,194
Agency funds:
Cash, cash equivalents and investments
32,678,806
Total
$ 779,283,837
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 $ 599,40 1 $ 46,205 $ 553,196
Road Impact Districts l6, l43 16,143
Road Construction 4l7,l90 417,190
Community Redevelopment 3,215 3,215
Nonmajor governmental funds 1,409,037 64,404 1,344,633
Total receivables reported in governmental funds 2,444,986 1 lO,609 2,334,377
Total receivables reported in internal service funds 654,823 10,867 643,956
Developer contributions receivable l5,581,910 15,581,910
Total Governmental Activities trade receivables $ l8,68l,719 121,476 18,560,243
County Water and Sewer 5,389,743 282,999 5,l06,744
Nonmajor enterprise funds 23,45 1 ,604 17,305,265 6,l46,339
Total Business-type Activities trade receivables $ 28,841,347 $ 17,588,264 $ 11,253,083
49
'~"--'-
n, ,.","....,." ,~.. '"._.''''' '.___
, .,
.--.-.--"----
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES
ADVANCES
Advances to and advances trom other funds at September 30, 2008 were as follows:
Advance
To
Advance
From
Governmental Activities:
General Fund
Advances were made from the General Fund to the Tourist
Development Fund and the EMS, Library and Law Enforcement
impact fee funds IDr capital improvements. Reimbursement will take
place over the next several years. $
Total General Fund
Other governmental funds:
Other Capital Projects Funds
Advances were made from the County- Wide Capital Improvements
Fund to EMS, Law Enf(,rcement and General Governmental Facilities
impact fee funds for purposes of capital improvement.
Reimbursement will take place over the next several years.
Tourist Development Fund
Emergency Medical Services Impact Fees Fund
County- Wide Library Impact Fees Fund
Law Enforcement Impact Fees Fund
Government Facilities Impact Fees Fund
Total other governmental funds
Total
5,127,194
5,J?7,194
$
10,935,100
113,094
1,159,300
4,521,800
6,063,500
4,204,600
10,935,100 16,062,294
$ 16,062,294 $ 16,062,294
DUE FROM AND DUE TO
Interfimd receivables and payables generally result from recording the excess fees associated with
Tax Collector services, as excess fees are allocated trom 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. The State Court of Administration fund also allocates unused funds back
to the General Fund at year end. Other oUlstanding balances are the result of time delays between
the provision and payment of interli.md services and to cover temporary cash deficits.
50
Due from and due to other funds at September 30, 2008 were as follows:
Due From Due To
Governmental Activities:
General Fund $ I ,833,921 $ I ,367,995
Road Impact Districts 265
Road Construction 8,425 1,284
Other Governmental Funds:
Road Districts 1,450 l4
Unincorporated Area M STD 459,904 67,095
Community Development 160 l4,354
Water Management and Pollution Control 54,524
Grants and Shared Revenues 2,851 J ,035,183
1mprovement Districts 53,692
Fire Control Districts 41,880
Lighting Districts 6,523
911 Enhancement Fee 126,894
Tourist Development 147,l44 270
State Housing Initiative Partnership 65
State Court Administration 28,194 55 J ,569
Conservation Collier 153,110
Court Information Technology 4,670
Other Special Revenue Funds 157 87,858
Capital Improvement Revenue Bonds 26,428
Pooled Commercial Paper Program Loan 4,709
Caribbean Gardens Loan 131,838
Storm water Improvement Assessment Bonds 1,157
Limited General Obligation Bonds Conservation
Collier Series 2005A 51,695
Forest Lakes Limited General Obligation Bonds 6,938
Parks Improvements 47,002
County-Wide Library Impact Fees 68
Emergency Medical Services Impact Fees 24
Water Management 2,850 324
Other Capital Projects 1,014
Total other governmental funds I ,223,220 J ,888,388
Business-type Activities:
County Waler and Sewer 11,903 8,914
Other Business-type funds:
Solid Waste Disposal 48,996
Emergency Medical Services 197 73
Airport Authority 1,724
Collier Area Transit 20,293
Total other business-type funds 71)10 73
Internal Service Funds l18,495 255
Total All Funds $ 3,267,174 $ 3,267,174
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES - CONTINUED
51
>-"',"~_.~'-~~'-~ - ----
._..._- ._-~- .- ----.., -' -.".....~-~"^"~._.~..."...~-,
"'-,;-",---,~,---,~~,~,"-"-. ..'.,....._,&_-.~_..-
-,. --,-"'
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 5 - CAPITAL ASSETS
A summary of capital asset activity for the year ended September 30, 2008 is as follows:
October 1,2007. Deductionsi September 30,
(is rcslat~d Additions Reclassifications 2008
Governmental Activities:
Capital assets not depreciated:
Land and other non-depredable assets $ n6.744.887 $ 30.648.120 S (6,049.532) $ 311.343.475
Construction in progress 309,189,367 238.891,987 ( 125,595,7(5) 422,485,649
Total capital assets not depreciated 595,934,254 269,540,107 (131,645,237) 733,829.124
Capital assets depreciated:
Buildings 255,lt]I),570 13.792.937 21.368,374 291,080,881
Infrastructure 498.114.433 1.X51.213 43.135.197 543.1 UO.843
Improvements other than buildings 158.169.493 1.859.682 40.922.724 200,951,899
Machinery and equipment 1~9.929,207 14,498,538 (13,574,393) 150,853,352
"f otal capital assets depreciated I.U62,132.703 32,002,370 91.851.902 1,185,986,975
Less accumulated depreciation:
Buildings 62,369.240 8.781.043 (381.744) 70.768.539
In Irastructure ] 44,()25.271 27,084.482 171.109.753
Improvements other than buildings 4U,494.193 7.178.598 48,172,791
Machinery and equipment 97,S77,688 17.673.556 (13,051,350) 102,499,894
Total accumulated depreciation 345,266.392 60.717.679 (13,433,094) 392,550,977
Total depreciable capital assets, net 716,866,311 (28.715,309) 105,284,996 793,435,998
Total governmental acti\'ities
capital assets, nel $ 1.312.800.565 $ 240,824.798 $ (26,360.241 ) $ 1,527,265,122
Business-type Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 17.969,146 $ 6.086.308 $ 2.738 $ 24.058,192
Construction in progress 212,660,373 55.343.920 (130,233,130) 137,771,163
[utal capital assets nut depreciated 230,629,519 61,430,228 ( 130,230,392) 161,829,355
Capital assets depreciated:
Buildings 123.579,978 4,240,657 2.175,722 129.996.357
Improvements other than buildings 715.871.33R 10,209.844 127.022,055 853.103,237
rvlachincry and equipment 26,263,531 4.365.312 (1,795,848) 28,R32.995
Total capital assets depreciated 865.714,847 I 8.R 15.8 13 127,401.929 1.011,932.589
Less accumulated depn:ciation:
Buildings S2,l)fl'i,U52 3.184.368 (25,230) 56,123.190
Improvements other than buildings 16H128.99R 13,128.958 (230.098) 185,927.858
Machinery and cquirment ] 4.666,5U9 3,370,247 ( 1.833,654) 16,203.102
Total accumulated deprel:iatio!l 230,659.559 29.683,573 (2,088.982) 258.254,150
Total depreciable capital assets, net 635.U55.288 ( 10.867.7(0) 129.490.9It 753,678,439
'I"otal business-type activiti..:s
capital assets. net $ 865.684.807 $ 50,562.468 S (739,481 ) $ 915,507,794
52
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 5 - CAPITAL ASSETS - CONTINUED
Schedule of depreciation for fiscal year 2008:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Subtotal
$
Internal Service Funds
Total Governmental Activities
$
$
6,623,752
12,807,778
13,390,084
19,058,326
27,442
729,309
7,713,723
60,350,414
367,265
60,717,679
Total Business-type Activities
$
26,609,025
503,961
711,073
831,926
1,027,588
29,683,573
Water and Sewer
Solid Waste
EMS
Airport Authority
Mass Transit
NOTE 6 - LONG-TERM OBLIGATIONS
SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended September 30,2008:
OOO's Omitted
Premium or
October I, Discount/Loss September 30, Due within
2007 Additions Reductions Amortized, net 2008 one year
Governmental Activities:
Bonds and Loans Payable $ 509,906 $ 75,637 $ (42,936) $ (1,003) $ 541,604 $ 22,332
Arbitrage Rebate 214 464 678
Capital Lease Obligations 897 (144) 753 154
Se]f~Insurancc Claims 11,571 544 (1,829) 10,286 5,552
Net Pension Obligation 1,534 (628) 906
Compensated Absences 19,363 8,460 (6,648) 21,175 10,041
Total $ 541,951 $ 86,639 $ (52,185) $ (1,003) $ 575,402 $ 38,079
Business-type Activities:
Bonds and Loans Payable $ 270,080 $ 2,401 $ (10,110) $ 169 $ 262,540 $ 11,088
Notes Payable 138 2 (67) 73 73
Arbitrage Rebate 1,223 283 1,506
Capital Lease Obligations 68 592 (42) 618 126
Landfill Closure Liability 2,965 ( 1,150) 1,815
Compt:nsaled Absences 2,107 1,715 (\,639) 2,183 1,746
Total $ 276,581 $ 4,993 $ (13,008) $ 169 $ 268,735 $ 13,033
53
-
~-_._--"--'-",-_._._~..~..."'_.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE
Bonds, loans and notes payable at September 30,2008 were composed of the fDllowing:
Governmental Activities Limited General Obligation Bonds
$32,815,000 2005A Limited General Obligation Bonds, Conservation Collier
Program, due in annual installments or $3.285,000 to $4,805,000 through
January 1,2013; interest at 3.00% to 5.00%.
$6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway
and Drainage Municipal Service Taxing Unit. due in installments of
$300,000 to $540,000 through January 1. 207?; interest at 3.75% to 4.25%.
$21,915.000
5,915.000
Total Governmental Activities Limited General Obligation Bonds
27,830,000
Governmental Activities Revenue Bonds
$47,430,000 2002 Capital Improvement Revenue Bonds due in annual
installments of $1 ,780.000 to $2,830.000 through October I, 2016; interest at
1.60% to 5.00%.
32,520,000
$49,360,0002003 Capital Improvement and Refunding Revenue Bonds due
in annual installments of $1.1 30,000 to $2.570,000 through October 1,2033;
interest at 2.00% to 4.75%.
39,625,000
$167.200,0002005 Capital Improvement and Refunding Revenue Bonds due
in annual installments of $2,035,00010 $7,240,000 through October 1,2035;
interest at 2.25% to 5.00%.
154,795,000
$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%.
$96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of
$445.000 to $13,985,000 through June I. ')025; interest at 3.00% to 5.00%.
$1,870,000 1997 Naples Park Area Storm water Improvement Assessment
Bonds due in annual installments of $75,000 to $185,000 through September
1,2012; interest at 6.45% fixed rate.
71,960.000
94.565.000
Total Governmental Activities Revenue Bonds
680,000
394.145,000
54
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
Governmental Activities Loans Payable
$111,346,000 Commercial Paper issued by the Florida Local Government
Finance Commission Pooled Commercial Paper Program, due in installments
of $11 ,235,000 to $74,325,000 through December 4, 2012; monthly variable
rate for the current fiscal year of 3.60% to 1.52%, collateralized by 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 I, 2012; interest at 2.0%.
$7,000,000 Bayshore Gateway Community Redevelopment Ageney Taxable
Non-Revolving Line of Credit, due July 1,2011; quarterly variable interest
for the eurrent fiseal year end of 5 .49%.
Total Governmental Aetivities Loans Payable
Total Governmental Aetivities Obligations
Unamortized Bond Diseount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Governmental Activities Obligations, Net
Less Current Portion of Governmental Activities Obligations
Long-Term Portion of Governmental Aetivities Obligations, Net
Business-type Activities Revenue Bonds
$13,720,000 2003A Taxable County Water and Sewer Refunding Revenue
Bonds due in annual installments of $740,000 to $2,715,000 through July I,
2009; interest at 2.00% to 3.375%.
$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%.
55
.~_.-
, - ~ . , ~,
. '" on ,... ~.... ,-,.. ~., _~.__
,.... ,-, ,......' ,- "'.~' ,-...--.,---- ,.
$85,560,000
12,000,000
5,901,000
103,461,000
$525,436,000
$(562,735)
17,107,361
(376,879)
541,603,747
(22,332,377)
$519,271,370
$740,000
33,630,000
1,540,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRlPTIONS OF BOND ISSUES AND NOTES PAY ABLE ~ CONTINUED
$22,855,000 I999B Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $950,000 to $1,875.000 through July 1,
20l6; interest at 4.00% to 5.125%.
$110,165,0002006 Collier County Water and Sewer Revenue Bonds due in
annual installments of $2,310,000 to $8,695,000, commencing July I, 2017
through July 1,2036; interest at 4.00% to 5.00%.
Total Business-type Activities Revenue Bonds
Business-type Activities Loans and Notes Payable
$166,580 County Water and Sewer District agreement with private developer
payable through use of water and 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 I, 1997.
$13,292,898 County Water and Sewer District State Revolving Fund Loan,
interest payable at 7.65% payable in 40 semiannual payments commencing
January 15, 1999.
$22,238,677 County Water and Sewcr District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
November 15,2001.
$5.160,675 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
October 1 5, 2004.
$6,560,956 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
January 15,2005.
$29,224,004 County Water and Sewer 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.
56
$12,810,000
1 10,165,000
158,885,000
72,707
3,829,418
7,722,455
15,594,001
4,362,272
5,542,177
26,430,765
9,120.428
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$6,895,629 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.96% payable in 40 semiannual payments commencing
July 15,2009.
$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% payable in 40 semiannual payments commencing
April] 5,2008.
$11,476,700 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
August 15, 2008.
$11,478,810 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% 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 Discount
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
57
$1,137,883
4,838,273
3,599,671
4,875,876
8,264,582
8,448,629
64,059
103,903,196
262,788,196
(778,903)
5,030,629
(4,427,386)
262,612,536
(11,087,179)
(72,707)
$25 I ,452,650
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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:
Ciovcrnm(:ntal Activities
Fiscal Limited General Loans and
Year Obligation Bonds Revenue Bonds Not~s Payabk Totals
Principal Interest Prim:ipal Interest Principal Interest
2009 $ 4.355,000 $1,185,881 $ 16.020,000 $ 18.201,347 $ 1.957.377 $ 3,556,668 $ 45,276,273
2010 4490000 1,009,213 16.550.000 17,637,168 1,839,148 3,674,897 45,200,426
, ,
2011 4.705.000 7R3.650 17.120.000 17.004,707 7,776.930 3.571.729 50,962,016
2012 4,940,000 546.994 17.900.000 16.214.913 13.148,449 2,998,001 55,748.357
2013 5.185,000 298,525 17,590,000 15,390,381 78,739,096 645.720 117,848,722
2014-18 2,125,000 650,675 83,925,000 65,225,725 151.926,400
2019-23 2,030,000 177.225 102.815.000 42,6] 2,067 147,634,292
2024-28 64,960.000 19.036.657 83.996.657
2029-33 3(l,215,UOU 9,199.366 45,414,366
2034-38 21.050,000 1,381,536 22,431,536
Totals $ 27,830,000 $4,652,163 S 394, 145,000 $221.903.867 $103,461,000 $14,447,015 $ 766,439,045
Business.type Activities
Fiscal Loans and
Year Revenue Bonds Notcs Payable Totals
,
Principal Interest Principal Interest
7009 $ 4,905,000 $ 7,357,974 $ 6.254,886 $ 2,774,287 $ 21,292,142
2010 5.125,000 7,138,343 6.106,429 2,835,302 21,205,074
2011 4,885,000 6,895,082 6.231.370 2,646,300 20,657,752
7012 5,125,000 6.658,256 6,426,429 2,451,744 20,660,929
2013 5,380.000 6,409,782 5.567,145 2,249,928 19,606,855
2014-18 23,130,000 28,180.744 30,377,830 8,707,538 90,396,112
2019-23 22,200.000 23.213.276 27,387.040 4,339,307 77,139,623
2024-28 27,975.000 17,442,700 14.978.616 926.278 61,322,594
2029-33 35,170.000 10,245,062 573,451 11,837 46,000,350
2034-38 24,990,000 ) ,256,3 73 27,246,373
Totals $ 158,885,000 $115,797,592 $ 103,903,196 $ 26,942,016 $405.527,804
LEGAL DEBT MARGIN
The Constitution of the State of' Florida and lhe Florida Statutes set no legal debt limit.
58
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
RESTRICTIVE COVENANTS
According to the official statements and County rcsolutions authorizing the issuance of the Series
2002, 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as
the Series 2003 and 2005 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 experienccd insurer rating downgrades on its Series 2002,
2003 and 2005 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 March 31, 2009 Collier County will be required to fund the reserve in the amount of
$8,026,972. The total amount of funding required is $19,570,778 and the covenants require that
this be in place by November 30, 2009, if the ratings of the insurers are not upgraded. The
County expects to use 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 1.55.
The covenants of the loan agreement authorizing the Florida Local Government Finance
Commission loans include appropriation in thc annual budget amounts of non ad valorem
revenues or other legally available funds sufficient to satisfy the loan repayments.
Tax increment revenues are pledged for the repayment of the Bayshore Gateway Community
Redevelopment Agency's taxable, non-revolving line of credit. Tax increment collections were
$2,293,300 for the period ended September 30, 2008. Tax incremcnt revenues must cover annual
debt service requirements by 150%. In the opinion of management the agency was in compliance
with this covenant for the year ended September 30, 2008.
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 thc County Water and Sewer District
Bonds, Series 2006, 2003A, 2003B, 1999A and 1999B include an obligation for the County to
fix, establish and maintain such rates and collcct 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 wcre in
compliance with these covenants for the year ended September 30, 2008.
59
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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 suff1cient to pay I 1 5% of the annual dcbt 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, 2008.
INTEREST CAPITALIZED
Interest costs on long-term debt, including capitalized leases, incurred and capitalized during the
year ended September 30, 2008 were as follows:
Total Interest
Cost Incurred
Business-type Activities $ 1 0,604,479
Interest Cost
Capitalized
$1,710,416
Net Interest
Expense
$8,894,063
LEASE OBLlGA TrONS
Capitalized leases payable at September 30, 2008 amountcd to $1,370,425. These obligations,
which are collateralized by equipment and vehicles, have annual installments ranging from
$35,230 to $345,780 including interest ranging from 4.26% to 7.45% and mature through 2015.
Future minimum capital lease obligations as of September 30, 2008 were as follows:
Govcrnmental Business-type
Activities Activities Total
2009 $ 194,439 $ 151,341 $ 345,780
2010 190,660 l51,341 342,001
J011 190,660 151,341 342,001
2012 77,920 131,773 209,693
2013 77,920 98,830 176,750
2014 - 15 113,150 113,150
Total minimum lease payments 844 749 684.626 1,529,375
,
Less amount representing interest (92,209) (66,741) (158,950)
Prcsent value of minimum
lease payments $ 752,540 $ 617,885 $ 1,370,425
60
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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. Therefore, the bonds are not
reported as liabilities in the accompanying financial statements.
As of September 30, 2008 the outstanding principal amount payable on all component unit
conduit debt was $3 I 1,648,943 and is made up of the following:
Total
$ 64,307,428
73,520,000
89,190,000
84,631,5 1 5
$ 3ll,648,943
Industrial development revenue bonds
Housing revenue bonds
Health facilities revenue bonds
Educational facilities revenue bonds
NOTE 8 - DEFEASED DEBT
The County has defeased certain outstanding bond issues 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, 2008 the following issues were considered defeased:
Governmental Activities
Original Debt
Defeased
Defeased Bonds
Outstanding
1986 Capital Improvement Program Revenue Bonds. Sub-Series 5 Mode A
2003 Capital Improvement and Refunding Revenue Bonds
Total Governmental Activities Defeased Debt
$ 12,245,000
4,360,000
$ 16,605,000
$
$
4,595,000
4,265,000
8,860,000
Business-type Activities
Original Debt
Oefeased Bonds
Outstanding
1983 County Water and Sewer District Refunding Bonds
$ 22,000,000
$
6,770,000
61
._~-._~-~-
".
_ . ._._ ...~..____._~__",.~~._ . . _~,~ . "r. - ~'_"'~""""__' _______.~~
"_.,.._----,----
."
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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 5 percent for each year prior to nonnal retirement age or date. The System also
provides death and disability benefits as well as annual cost-of-living adjustments to plan
participants and bcneficiaries. The Florida Legislature established the System under Chapter 121,
Florida Statutes and has sole authority to amend bcnefit provisions.
Special Risk Class members qualify for normal retircmcnt with 6 years of spccial risk service and
agc 55 or with 25 years of special risk servicc at any age. The monthly benefit payable is cqual to
2-3 perccnt of their avcragc linal compensation for each year dcpending on the perccnt in cffect
during the service period. Vested employees may retire before age 55 and receive benefits that are
reduced 5 percent for each ycar 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 membcrs of the System,
etlective July L 1998. Under this program. the employec may retire and havc 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 lhc program does not change the individual
employee's employment conditions. When the DROP period ends, a maximum of 60 months,
employment must be temlinated. At the time of temlination of employment. the cmployee will
receive payment of the accumulated DROP benefits, and bcgin rcceiving their monthly retirement
bencfit (in the same anlount determined at retirement, plus annual cost-of-living increases).
62
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 9 - PENSION PLAN OBLIGATIONS - CONTINUED
PLAN DESCRIPTION - CONTINUED
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.
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, 2008, 2007 and 2006 are represented in the table below.
The County's contributions were equal to the required contributions for each year.
FY -2008 FY -2007 FY -2006
General Fund $ 18,842,653 $ 18,678,498 $ 15,763,159
Road Construction 169,894 160,080 l24,Ol5
Community Redevelopment 24,51 1 22,013 9,231
County Water and Sewer 1,549,255 1,673,956 1 ,263,952
Nonmajor Governmental Funds 4,825,491 4,846,006 2,927,430
Nonmajor Enterprise Funds 2,593, I 07 2,719,220 1,846,197
Internal Service Funds 204,365 207,274 160,116
Totals $ 28,209,276 $ 28,307,047 $ 22,094, 1 00
63
-'---
--
--
----..-.. ..- _. "'"".........~----------,.__....._'''~-,,- -"-"-'---~------
-_._.
COLLIER COllNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE IO-TRANSFERS
Transfers for the year ended September 30, 2008 were as follows:
Transfers from Fund
Transfers to Fund
Governmental Activities:
General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Nonmajor Business Type
General Fund
Nonmajor Governmental Funds
Nonmajor Business Type
Road Construction
Nonmajor Governmental Funds
Nonmajor Governmental Funds General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Road Construction
Community Redevelopment
Business-type Activities:
County Water and Sewer
General Fund
Nonmajor Governmental Funds
General Fund
Nonmajor Governmental Funds
Road Construction
County Water and Sewer
Nonmajor Business-type
Totals
Amount
$ 24,000,000
62,391,] 05
6,303
22,650.217
248,000
14,714,800
2,000,000
200,000
271 ,979
3,957,236
621,722
31,949,703
64,300
3,650,819
925,700
470,367
84,400
1,338,340
153,600
$169,698,591
Transfers between funds move unrestricted revenues collectcd in the General Fund to finance
operating and capital programs accounted for in other funds in accordance with budgetary
authorizalions and to movc rcceipts restrictcp to debt service from the funds collecting the
receipts to the debt service fund as payments become duc.
NOTE 11 - NET ASSETS/FlIND BALANCES
Net assets represent the ditTercnce between total assets and liabilities. Net assets 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.
64
.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 11 - NET ASSETS/FUND BALANCES - CONTINUED
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 for reporting 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 which are not considered available and
spendable resources.
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.
65
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
.
NOTE II - NET ASSETS/FUND BALANCES - CONTINUED
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, exccpt for thc Sherif I Under these programs, the self~insurance
fund provides coverage up to a maximum amount I(Jr 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
$350,000
Excess Carrier's Coverage
$50,000 - $125,000,000
Auto liability claims
Employee health claims
Workers! compensation claims
$200,000 - $2,000,000
$175,000 - $2,000,000
$350,000 - $25,000,000
The aggregate loss exposure on casualty claims is $1,160,000. 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 arumal payouts during the
fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended
September 30, 2008 the operating departments were charged $35,196,296 for workers'
compensation, health and property and casualty self-insurance programs.
66
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 12 - RISK MANAGEMENT - CONTINUED
The claims loss reserve for workers' compensation, health and property and casualty of
$8,192,000 reported at September 30, 2008 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%. Claims loss reserves of
$3,458,207 are recorded as current liabilities.
The Sheriff participates in the Statewide Florida Sheriffs 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
Sheriffs 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 Sheriffs Self-Insurance Fund program for
workers' compensation coverage. The Florida Sheriffs Association Workers' Compensation
Insurance Trust (FSA WIT) 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 Sheriffs 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 $2,094,000 reported at September 30, 2008 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 Sheriffs health claim loss reserve is
recorded as a current liability.
67
-,~-- ,."
- .
-....-,.,
_~_____,,~'r_',"".<'"
-""""..__._'-'-'*"""---~'-'-~-"---
-
-"
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 12 - RISK MANAGEMENT - CONTINUED
CHANGES IN SELF-INSURANCE CLAIMS PAYABLE
Changes in the selt~insurance claims payable for fiscal years 2007 and 2008 were as follows for
the County and Sheriff self-insurance programs:
Property and Group Workers'
Casualty Health Compensation Total
Balance at September 30. 2006 $ 3.097.000 $ 4,275,000 $ 3,886,000 $ 11.258,000
Current year claims incurred and
changes in estimates 1.870.096 38,158,691 723,054 40,751,841
Claim payments (2,030,096) (37,771,691) (637,054 ) (40,438,841)
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 25.472,650 (608,384 ) 25,425,794
Claim payments (1,268,528) (24,928,650) (513,616 ) (26,710,794)
Balance at September 30, 2008 $ 2,230,000 $ 5,206,000 $ 2,850,000 $ 10,286,000
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 lOO% the cost of health care !(lr 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 1 P .080 I, County employees who retire and
immediately begin receiving benelits 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.
At September 30, 7008. the date of the latest actuarial valuation, County plan participation
consisted of:
OPEB plan participants
Retirees receiving benefits
2,352
82
68
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Funding Policy - The County has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the County contributed $158,312 to the OPES Plan.
Annual OPES Cost and Net OPES Obligation - The annual cost (expense) of the County's
OPES Plan is calculated based on the Annual Required Contribution (ARC), an amount
actuarially determined in accordance with the parameters of GASS 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 ofthc County's annual OPES Plan cost for the year,
the amount actually contributed, and the changes in the net OPES Plan obligation.
Annual required contribution $ 514,423
lnterest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense) 514,423
Contributions made (158,312)
Increase in net OPEB obligation (asset) 356, III
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year $ 356,lll
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 31 %
of the annual OPES cost. Information for the two preceding fiscal years is not available as
GASS Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPES Plan was 0.0% funded, the actuarial accrued liability for
benefits was $3,769,254, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $3,769,254. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $173.5 million, and the ratio of the VAAL to the
covered payroll was 2.2%.
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.
69
---'-'-'.~--~~~-~_._--' ~._..-
- .
----
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
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 thc employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential efTects 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 etlects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost mcthod
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 vears. Level Dollar Amount
.
The actuarial assumptions are:
Investment rate of return
Discount rate
Ilealthcare cost trend rate
4%
40 .
. ~()
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 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 lar its retirees who have 6 years of creditable service with the Sheriff and who
receive a monthly rt<tirement benefit from the Florida Retirement System. The Sheriff subsidizes
approximately 20% for single coverage and 21 % for family coverage far qualifying individuals.
Additionally, in accordance with Florida Statute 112.0801, Sheritrs employees who retire and
immediately begin receiving benetits 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, 2008, the date of the latest actuarial valuation, SherifT plan participation
consisted of:
OPEB plan participants 1,374
Retirees receiving benefits 69
Funding Policy - The SherifI has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the Sheriff contributed $469,998 to the OPEB Plan.
70
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 13 - OTHER POST EMPLOYMENT BENEFITS - CONTINUED
Annual OPEB Cost and Net OPEB Obligation - The annual cost (expense) of the Sheriffs 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
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 Sheritrs annual OPEB Plan cost for the year, the amount
actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution $ 1,019,866
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense) I,Ol9,866
Contributions made (469,998)
lncrease in net OPEB obligation (asset) 549,868
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year $ 549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 46%
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. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $128.2 million, and the ratio of the UAAL to the
covered payroll was 7.3%.
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 thc employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future.
71
---"~'"
,---~-
-.........----,."""..",.,.....,
"-"-~-,._.
~..&..,._._-_._'""""
.. -~,
-
..,
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
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 etrect 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 benetits 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 ref1ect a long-term
perspective. Consistent with that perspective. actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% lar the 2009 tiscal year grading to an
ultimate rate of 5% tar the 2014 fiscal year
NOTE 14 - LANDFILL LIABILITY
On May I, 1995 the County entered into a landfill operating agreement with a third party tar the
privatization of the County's landtill operations. Under the contract, the third party is responsible
far the daily operations, capital improvements, 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 lmmokalee landfill
sites. None of the cells that Collier County is responsible lar has accepted waste since December
1989. The County is also responsible for statting 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 PO.l'tc!o.l'ure Care Costs, a liability has been established representing amounts
estimated to be spent on postelosure relating to cclls for which Collier County is responsible.
The County's estimated liability in connection with the landtills is included in the proprietary
funds statement of net assets. The liability decreased by $1,149,949 during the fiscal year
primarily due to the reclamation and rehabilitation of approximately 16 acres at the Naples
landfill site tar which Collier County had been responsible. The acreage is now active and
responsibility for the related closure and postclosure costs rest with the company operating the
land!il!. The landtill liability will be reassessed on an annual basis, and any increase due to
inllation, changes in technology or additional postclosure care requirements will be recorded as a
T'.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 14 - LANDFILL LIABILITY - CONTINUED
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
A venue Landfill site. These funds bear interest and are restricted for the exclusive use of the
Eustis A venue Landfill site's long-term care. There were no deposits, other than interest, or
withdrawals from this account in fiscal year 2008.
NOTE 15 - 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, the Clerk's status as a
budget officer versus a fee officer and the Clerk's entitlement to investment earnings on County
funds. See Note 19, Subsequent Events, for further discussion. No financial liability has been
determined at this time.
ST ATE 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, 2008 was $2, 183,332, of which $677,752
related to governmental activities and $1,505,580 to business-type activities.
73
n""_ __..._,.._...._...__._._._.._____~.__.__. _..__..__._'___. "'_"_"_"'_'_'__""'._"'__,_"._.M...~,,____..,,__'_~__._.._.___.._,.,,_._.._._,."_.____.,_...._..,.~,. ,_,.....~__.~______~_._,_..,,___._._,._________,_____.~_,_<
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 16 - SIGNIFICANT COMMITMENTS
CONSTRUCTION COMMITMENTS
Collier County has active construction projects as of September 30, 2008. The projects include
road construction, governmental facilities and utilities improvements. At year end the County's
commitments with contractors includes the following:
Future
Calegory Commitments
Governmental Activities:
Road Impact Districts Roads $ 11,702,664
Road Construction Roads 48,700,426
Other Governmental Parks 1,513,476
Roads 2,613,786
Buildings 33,187,184
Beach restoralion 770,996
Storm water drainage 5,767,666
Business-type Activities:
COLlnty Water and Sewer Utilities 17,815,982
Other Enterprise Landtill expansion and closure 7,386,859
Airports 534,581
$ 124,993,620
NOTE 17 - FUND DEFICITS
The following funds had fund balance deficits at September 30, 2008:
County- Wide Library Impact Fees - The unreserved fund balance deficit of $(959,428) is
primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies Ironed to the impact fee
fund for the construction of growth necessitated library facilities. It is anticipated that the deficit
will be covcred by future years' impact fee revenues.
Emergency Medical Services Impact Fees - The unreserved fund balance delicil of $(340,051) is
primarily the result of advances from other lunds made prior to September 30, 7008. These
advances were recorded to ensure repayment of non-impact fee monies loaned to the impact fee
lund for thc construction of growth necessitated emergency medical services facilities. It is
anticipated that the deticit will be covered by future years' impact fce rcvenues.
74
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 18 - SPECIAL ITEM
On August 14, 2008 the Circuit Court issued a ruling in Case 07-1056-CA requiring that the
Clerk of the Circuit Court post a bond in the amount of $3,239,000 with the registry of the court
not later than August 29, 2008. Bond was posted by the Clerk of the Circuit Court in the form of
cash on August 26, 2008, including applicable registry fees of $48,593.
NOTE 19 - PRIOR PERIOD ADJUSTMENT
As of September 30, 2007, the County Water and Sewer District had $1,475,577 of planning
costs capitalized as construction in progress. These costs were associated with the development
of long range plans for the District. These costs cannot be specifically identified to a particular
capital asset and as such should not have been capitalized. A prior period adjustment has been
recorded to remove these costs from construction in progress.
Net Assets, September 30, 2007
Adjustment to construction in progress
Net Assets, September 30, 2007, as restated
County Water
and Sewer
$ 687,363,264
(1,475,577)
$ 685,887,687
Had the adjustment been recorded in the 2006-2007 fiscal year, the change in net assets for the
fiscal year ended September 30, 2007 for the County Water and Sewer Fund would have been
decreased from $38,787,4]8 to $37,311,84] and would have decreased from $43,074,858 to
$41,599,281 for the total of all Business-type funds.
NOTE 20 - SUBSEQUENT EVENTS
On November 2],2008 Collier County issued the $13,244,204 Series 2008 Conservation Collier
Limited General Obligation Bonds. The bonds were issued for the purpose of purchasing
approximately 2,511.9 acres of environmentally sensitive land known generally as Pepper Ranch.
On September 25,2008 the Court issued oral ruling in Case 07-1056-CA dated October ], 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], 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
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December I, 2008 are stayed during
75
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 20 - SUBSEQUENT EVENTS - CONTINUED
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.310(b)(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January IS, 2009, the Clerk shall account, in writing, to the Board of County Commissioners the
total amount of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January IS, 2009, the Clerk shall transfer from his
accounts. 2/3rds of the income received on County funds for the previous calendar month, to the
Board's General Fund. The Court found that a cash or surety bond was inappropriate.
In an opinion filed on January 30, 2009 the Second District Court of Appeal of Florida, in Case
7008-3126, reversed and remanded the trial court's December 18, 2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute Section 28.33 as "clear and unambiguous" in authorizing the Clerk
of Courts to claim as incomc interest earned on funds that the Clerk, as custodian of Countv
-
funds, has invested on behalf of the County. This opinion will not be final until all proceedings
are concl uded.
76
REQUIRED SUPPLEMENTARY
INFORMATION
__, _ -_.__."__^,,_".__~,,_;",_~_~_.' , '_"~__'_'_"_""""~'_''''<'''''''-''_''_''''''''.,"'._'",.,._~.."",."","'''''",<'"".,,,,,.._.,,~,_,,_,,~",'____N'~_~"'_,,,,.,_~,--__"_~ 'A ,_,.,,_~_~__,.__..._~___,~_~,___.,. _ _.__,_,,_
Agency
Required SUllplementary Information
Collier Count)'. Florida
Schedule of Funding Pnlgres.li
for the Retiree Health Plan
Actuarial Actuarial
Valuation Value of
Date Assets
Board and Constitutionals
(Non~Sherjtl)
Sheriff
Total
10/1/211117 $
1011 /2007
Actuarial
Accrued
Liahilitv -
Projected
Unit Credit
Unfunded
AAL
S 3.76lJ,254 $ .~.769,154
L),354,OSS
~,354,lIgX
$
$ 13,123.341 ) 13.123,342
K
Funded
Ratio
l)AAL as a
Percentage of
Covered
Payroll
Covered
Payroll
0,0'% $ 173,538,752
0,0%
12X,IX2.543
$ JOI,721,2~5
2.2%
7.3%
Special Revenue Funds
Nonmajor Governmental Funds
ROAD DISTRICTS -- To account for taxes levied and expenditures to carry on all work on roads and
bridges in the County except that provided for in capital project funds.
UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT -- To account for
revenues derived from and expanded for the benefit of the unincorporated areas of the County.
COMMUNITY DEVELOPMENT - To account for building permit and development fees to support
licensing, permitting and inspection services.
WATER MANAGEMENT AND POLLUTION CONTROL -- To account for taxes levied County-
wide to provide water resource management and waler pollution control.
LIGHTING DISTRICTS - To account for taxes levied within municipal service taxing district for
street lighting.
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.
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.
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.
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.
p ,- ,-,_. ,_~".,"~,_~~~,"'-'-'-',_~,'---'_._"~~~'~'~-' '~-"'~"'--"_"~""""'~='~""';~"-'_-"-"'.'.."";~.''-'--,'~',._,""~"- "._-----~', -~~,,-,--~-_.. ".._.^",.~--- --"~~=..~.~;..~--",'"'"-''' ,>-,~,",._~,'~-""~--"'~'--~"'.'--~-~'"
Special Revenue Funds - Continued
UTILITY FEE - To account for fees to be used to etJectively and et1iciently 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 o!'resources to
enhance and increase access to court information.
COURT SERVICES - To account for the accumulation of revcnues 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/IF AS extension.
COURT FACILITIES FEE - To account for the accumulation of resources to improve court
facilities.
AFFORDABLE HOUSING- To account for fees to be used to provide for affordable housing
related projects.
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 reSOUTces and payments of
interest and principal on long-term debt incurred in the retllllding 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 accumulalion of resources and
payment of inlerest and principal on the Commercial Papcr 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.
Debt Service Funds - Continued
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, SERIES 2005A
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 ofresources 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 all 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 valorcm taxcs.
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 expcnditure of parks impact fecs
collected from all qualifYing new construction. The impact fees must be used for the
acquisition/construction of park 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.
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 facilitics.
COl.LlER cm'NTY, FLORIDA
COMBINING BAl.ANCE SHEET
NON~AJOR GOVf:RN1\1ENTAL Fl1~DS
SEPTEMBER 30, 2008
Special Revenue I<'unds
'0
0_
Special Revenue Funds
$ 20.046.989 $ 1,248,2 I 9 $ 520,468
1.268. I 07
14.518
1.914
1.284.539
2,459.495
16,302,955
18,289
90.316
108.605
21.250
218
1.118.146
18.762,450 1.139.614
$ 20.046.989 $ 1,248,219
,...~.,-_...._.._-~--
.-
._.__.~..,.,~_.._..-. >~--_._,..._q'''-_._~-,',,'_.'-_.'-'''--"'~-"' -- ,.---".......,... ''"
.._-~--_..--. --.- -- ...~,,~-
~~~-".
66.278
66,2n
454,190
454. I 90
$ 520,468
$ 5.996.580 $
126.894
126.894
5,869,686
5.869,686
$ 5,996,580
6,333.369 $ 26.682,481 $ 3.196.194
63.814
63.814
],351.133
74,7)]
270
llJ,094
1.539.228
382,472
]0,763
65
1.614.631
2.007.9] ]
6.269.555
$
6.269.555
6,333.369
8.1
2,067,268
23.075.985
434.14]
754.122
25.143,253
$ 26,682,481
1.188.263
$ 3.196.194
(Continued)
COLLIER COLINT\', H.ORIDA
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FliNDS
SEPTEMBER 30,2008
Special Revenue Funds
WO
MHZ GAl' Land
IRCP State Court Confiscated Sales, Roads UtIlity
Fund AdmInIstration Property and Canals Fee
ASSETS
Cash. cash cquiv<llents and investments $ 365.790 $ 656,6:14 $ 717.412 $ 1,716,291 $ 575.504
ReceIvables'
Interest 4.496 10.279
Trade, net 5Jn6 'Ul8 36.662
Notes
Special assessments
Due from other funds 28.194
Due from other governments 320
Inventory 282.391
Advances to other funds
Prepaid costs
Total assets $ 371,986 $ 689.376 $ 741.908 $ 2,008.961 $ 612.166
LIABILITIES AND FLND BALANCES
Liabilities
Accounts payable I 64.lJ)2 35,4UO . liS
\Vages payable S2,B05 10.030
Due to other funds :15l.569
Due to other governments
Due to mdiVlduals
Deferred revenues 282,391
Refundable depOSits
Retalnage payable
^dvances from other funds
Totalliahilitlc'i 164.932 669.774 282,391 10.145
Fund halam;cs (ddicllsl
Reserved for.
Encumbrances
hn'entory
Advances to other funds
PrepUld costs
Debt service
Unreserved, reported in-
SpeCial revenue funds 207,054 19,602 74llJ08 1,726.57U 602.021
Dcbt servIce funds
Capital proJccts funds
Total fund balances (deficits) 207,054 19.602 741.908 1.726.570 602.021
Total liabilities and fund balances $ 371,986 S 689,376 $ 741,908 $ 2,008.961 $ 612,166
See aCl.:ompanying independcnt auditor's report
H4
Special Revenue Funds
Other
Court Court Special
Conservation Impact Fee Information Court Univl.:r:sity Facilities AtTordable Revenue
Collier Escrow Technology Services Extension Fce Housing Funds Total
$ 30.967,598 $ 657.868 $ 8.]2] $ ] ,620.288 $ 35.665 $ 796.6] 9 $ 23] ,496 $ 4,975,004 $ ]39.446.122
]68,38] 6.88] ]2.995 4]8.644
]5.772 46.390 5.]26 8,404 1,322.240
],399)73
]53,110 157 949,589
30.03] 3.747.406
282.609
$ 3],304,86] $
657,868 $
54.51] $ ],650.3]9 $ 35.665 $
808.626 $ 23],496 $ 4.996,560 $ 147.566.383
]2.5]3 202.686 ] ]3 ]25.472 68,842 8.019.253
]3,937 2.704 ].913.033
4,670 87.858 ].887.972
].447.633 3]3 2.168.944
25,493 26.248
3.902.970
]3.132 27,297
2.818 25.835 91.836 15],213
113.094
29,268 13.132 4.670 1.650,319 113 151,307 277.046 18,2] 2.024
60.822
543.579
135.664
12.676.255
218
31.214.771
644.736
49.841
35,552
113.740
23],496
4.583.850
] 16.677.886
31.275.593
$ 3].304.861
644)36
657.868
$
657,319
808.626
231,496
$ 231.496
4.719,514
$ 4,996.560
129.354,359
$ 147.566,383
$
49.841
54.511
$
1.650,319
35.552
$ 35,665
$
(Continued)
85
,~~ -~._,-~ .
,--
",,--..--.
'___ - . .....__,"',..";~~.__._..~.._.-..-_'M_~.~___fi~__~___.,,_.._....-.._ -, .._____~
"--.~_.,,--"-~
COLLIER COU!HY, FLORIDA
COMBINING BALANCE SHEET
:'ION MAJOR GOVERNMENTAL HINDS
SEPTEMBER 30, 2008
Oebt Service .'unds
Pooled SWrmwatcr
Gas Tax Caplla] Commercial Improvement
Revenue Improvement Paper Caribbean Assessment
Bonds Revenue Bonds Program Gardens Loan Bond
ASSETS
Cash, cash equivalents and investments $ 4396,hR6 $ 145,U3U $ 97.347 $ 234,855 $ 457,24]
Recelvables.
Interest 32,847 ~o- l76 6,775 3.276
..)
Trade, net 3.869
Notes
Special assessments 371.898
Due from other funds 26A28 4.709 131,838 ],157
Due horn other governments 112.834 17.742
Inventory
Advances to other hmds
Prepaid costs
Total assets $ 4.429.533 $ 172,333 $ 215,066 $ 395.079 $ 833.572
LIABILITIES AND FUND BALANCES
LiabilitIes.
Accounts payabk
Wages payable
Due to other funds
Due to other governments
Due to indivIduals
Deferred revenues 370,61 I
Rd'undable depOSIts
Relamage payabk
Advances from other funds
Tot<:ll jjabllitl(:s 370.611
Fund balances (deficits):
Reserved for
l:ncumbranCt;s
Inventor\'
Advances to other funds
Prepaid costs
Debt service 4,(j<j9,5J3
l~nrcscrvcd, reported m-
SpecHlI revenue funds
Deht service funds 330.000 172.333 215,066 395,079 462.961
Capital projects funds
Total fund halances (dcticlts) 4.429,533 172,333 215,066 395.079 462,961
Total liabilitIes and fund balances $ 4,429,533 $ 172,333 $ 215,066 $ 395.079 $ 833.572
SI.:C accompanying mdependent auditor's report
86
Capital Projects Funds
limIted General
Obligation Bonds
Conservation Collier
Series 2005A
Community
Redeve]opment
Line of Credit
Forest Lakes
Limited General
Obligation Bonds
TOla]
County.Wide
Capital
Improvements
Parks
Improvements
$ 147.925 $ 943 $ 166.257 $ 5,646,2ts4
],677 4 45,630
3.869
371.898
51,695 6.938 222,765
130,576
$ 31,820.504 $ 18.052.624
6.988
240.885
47.002
148,336
10.935.100
$
201,297 $
943 $
173.199 $ 6,421.022
$ 42.996,489 $ 18,254.950
4,446,453
342.958
370,611
97.684
214.541
25.761
370,611
4,758.678
368,719
13.660,790
10.935.100
2.007,339
4.099,533
201.297 943 173.199 1.950.878
13,641,921 15.878.892
201.297 943 173,]99 6.050.4] I 38.237.81 ] ]7.886.231
$ 201,297 $ 943 $ 173.199 $ 6,421.022 $ 42.996.489 $ ]8,254,950
87
,.
~."'--
,'_ '._'>-0.'___ _.,_~_ "
'.'_H_.,.....~','__ ,__',.,._.' ,
,*'~- .,
,~_..'._~--~-'-~' - --<--_.__......
.----
COI.L1ER COUNTY, FLORIDA
COMBINING BALANCE SIIEET
NON MAJOR GOVERNMENTAL tTNUS
SEPTEMBER 30, 2008
Capital Projects Funds
County-Wide Correctional Emergency Government
Library FaCllltlcs Medical Services Water Facilities
Impact Fees Impact Fees Impact Fees Management Impact Fees
ASSETS
Cash, cash equivalents and investments $ 4,44],76] $ 2,715,799 $ 814,654 I 8,670,205 $ ]3,669.078
Receivables'
Interest 4.]36
Trade, net l,343 375 278 6]7 446
Notes 5(J2,297 21li,96J ]87,970 248.489
Special assessments
Due from other funds 2,850
Due from other governments 308.626 46,8[8 5.214 300.000 29,518
InvenlOry
Advances to olh\:[ funds
Prepaid costs 476
'I'otal assets $ 5,254,503 $ 2.982.953 $ ].008,] ]6 $ 8,977.808 $ 33,947,53]
LIABILITIES AND FlIND BALANCES
Llahilities'
Accounts payabh: 559,177 LHL932 873 ].78].640 6.] 24,686
Wages payabk
Due 10 other funds 68 24 324
Due to other guvernments
Due to individuals
Deferred revenues 502.297 219,961 ]87.970 248,489
Refundabh: deposits
Rl.:!ainage payable 63U.589 I07.X28 350,152 2.595.549
Advances from other funds 4,521,800 1,159,300 4.204.600
Total liabilities 6,113,931 466)2 ] 1.348,167 2.]32,] ]6 ]3.]73.324
Fund balances (defiCits)"
Reserved II)r
Encumbrances 1,184,)07 512,486 741.718 4.749,642 20,050,057
Inventory
Advances tu other funds
Prepaid costs 476
Debt service
Unreserved, reported In:
SpeCIal rcvenue funds
Dl'bt servIce funds
Capital proJccts funds (2,144,41 I) 2,ULl3,746 (],O8],769] 2,096,050 724.]50
rotal fund balances (defiCits) (959,428) 2,516,232 (340.05 ]) 6,845,692 20,774,207
lot'll lJabililles and fund balances $ 5,254,503 $ 2,982,953 $ ].008.] ]6 $ 8.977.808 $ 33.947.53]
Scc accompanymg lIldependent auditor's repurt
~~
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement Capital Governmental
Districts Impact Fees Projects l'ota] Funds
$ 20.105.271 $ 12.051,971 $ 5.302.327 $ 137,644,196 $ 282.736.602
4.116 468,410
7,443 209 825 ]8,524 1,344,633
2.680.764 69,041 3.908.522 5,308.295
55,589 55.5H9 427.487
1,014 50,866 1.223.220
41,046 1.120,443 4,998,425
282,609
10,935,100 lO,935,JOO
476 476
$ 22.834,524 $ 12.121,223 $ 5,359.755 $ 153,737,852 $ 307,725,257
335.004 1.748.153 151.994 15,629.870 23.649.123
31.099 31.099 1.944.132
416 1.888,388
2.168.944
26,248
2,680,764 69,041 4.006,206 8.279.787
27 ,297
630.674 69.891 4,624,985 4,778.198
6.063500 15.949.200 16.062.294
3,015,768 8.511.368 252.984 40.241.776 58.824.411
913,384 6.392.838 1,565,935 51,778,696 64,454,951
218
10,935,100 ]0,935,]00
476 476
4.099.533
116,677.886
1.950.878
18.905.372 (2.782.983) 3.540.836 50,781.804 50,781.804
19.818,756 3.609.855 5.106.771 113,496,076 248,900,846
$ 22,834.524 $ 12.121.223 $ 5,359,755 $ 153.737.852 $ 307.725,257
89
.,-..---.-,
.. ,-
.,-,
.~...-. --,'-.,-
_ '-"'_'_".~_"'""_'-''''__~' '......"""".....<...._..""'_..__~'"'._.,_"."_.<.,, ._._._ '__~_'O___"_'
--..------
COLLIER COli!,;TV, FLORIIlA
COMBI!,;I!,;G STATEMENT OF REVI:NUES, EXPENIlITlIRES A"D CHANGES IN FlIND BALANCt:S
NONMA.IOR GOVERNME!';TAL FUNDS
FOR THE FISCAL VEAR ENDED SEPTEMBER 30, 2008
Special Revenue J<"unds
Water
Management Grants and
Road Unmcorporated Community and Pollution Shared
Districts Area MSTD Development Control Revenues
Revenues:
Taxes $ $ 35,655,325 $ $ 2231043 $
. .
Licenses and perrrllts 585,880 6,187,064 9.924,245 670
Intergovernmental 2,128,876 364.007 215,183 9,751,872
Charges for services j 1.61(J 2,336)/,11'1. 3.221.4]3 322,870 55,691
Fines and forfeitures 407,166
Interest income 2.252 3 L676 201.545 95.638 57.548
Change 111 fall value
of investments ((',OXOI (23.890l 18.3(1) (5,162) \3.921)
lrnpad Ices
SpeCIal assessments !UW5 2.419.855
Miscellaneous [41,763 b79,480 215,980 54,679 120,186
Total n:venucs 2,864,301 45,651A51 13,554.872 5,334.776 9.981,376
Expenditures:
Current;
General government 7.270,243 7J:l20,734 968,574
Pub]u; safety 4,813,65] 8,635,531 1.951.977
Phvsica] el1Vlromnent 534.626 570.300 3J)63A27 45,222
TransportatIOn 20,457.114 15,l] 1324 ],632J~62
Economic environment 234.187 1.690,395
Iluman services 1.943,396
Culture and recreatIOn 10,7lNJJ96 211.724
llebt sCfyicc:
Prinnpal
]nlen::st
Fiscal charges
Capital outlay 2,435,42Y 2,1-:57,972 1.352 ]75,181-: 340,534
TOlal expenditures 22,892,543 41,61l,()9lJ 17.027.917 4.871.477 9,151,822
I':xct'ss (dcficlCm:y) of revenues
over (undt:r) expenditures (20,021-:,242) 4,040352 (3.473.045) 463299 829.554
Other financing sources (uses):
Bonds issued
Premium on bonds lssw::d
Loans Issued
Sale of caplla] assets 16.518
Insuranct: proceeds IUl.629 93,066 574 2,355
Transfers III 19,0:-;5.00U 1,213,643 880.DOO 54,428 255,750
rransfers oul (402.300) (5.1-:07,827) IU47.600) (315,351)
TOla1 other finanCIng sources (uses) llU8,U29 (4501.068) (850.508) (258.568) 255,750
~et change Jl1 fund balances (1.2.1] 9131 (4fl\).716) (4,323.5531 204,73] 1.085,304
Fund balanl'Cs (dclicits) at beginning of ycar 4.U4.^un 143lJ!.94X 8.812.453 3,llJ5,951 3,910,209
Fund balanu's (deficits) at end (If year $ L7lJ9,81) $ IJ.9J L2J2 $ 4.488.900 $ 3,400,682 $ 4,995,513
See accompanying mdependent audllor's repon
~)U
Special Revenue :Funds
State
Fire 911 Public Housing
Improvement Control Lighting Enhancement Records rourist Initiative 800 MHZ
Districts Distncts Districts Fee Modernization Development Partnership ICRP Fund
$ 4.007.145 $ 3,593,247 $ 579,874 $ 1.874.196 $ $ 14,795,623 $ $
38.080 842,318 5.544.411
158.420 7.731 990,305 1.986 295.720 731,598
759.691 70.805 34,498 212,921 289,395 18.057 224,352
(29,765) (1.831) (821) (8.654) (38,947) (3,427) (546)
613.551
170,357
2,248.820
1,279,700
183,953
15.802,990
173
6.061.229
199.417
930,469
37.910
4.971.481
15.915
3.685.867
280.500
178.217
(196.615)
1.056.087
i3.145.609)
7,688,412
(549,004)
(217.494)
6.068.171
30.815
5.000
53
681.680 53.180 6.523 147,144 100.400
(284,158) (124.652) (16,335) (6.905,280)
6,496.508 (66,419) (9.812) (6,758.136) 100.400
6.777.008 111.798 (206.427) 1.056.087 13,145.609) 930,276 (549.004) (117,094)
11.985.442 1.027.816 660,617 4.813.599 9,415.164 24.212.977 1.737.267 324.148
$ 18,762,450 $ 1,139,614 $ 454,190 $ 5,869,686 $ 6.269,555 $ 25,143,253 $ 1.188,263 $ 207.054
91
<","-'-~"
-,-
______.._.~___,__..__,~,-_'._...._.______.~_...._.,.._ .. ..,_,_''''..-.....-~~.......,._....."."..,~_._".. _ 'm__._~_. , _ .___,_._~
COLLIER COlINTY, FLORIDA
COMBtNING STATEMENT OF R}:VENUES, EXPENDITl~RES AND CHANGES IN FUND BALA:'>ICES
NONMAJOR GOVERNMENTAL FlINDS
FOR TilE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Special Revenue Funds
GAC I ,and
State Court Contlso.:ated Sales, Roads Utility Conservation
Admimstratlon Property and Canals Fee Collier
Revenues:
Taxes I \ I I 159.623 $ 12,652,1Y6
Li\:enses and pl:nmts
Intergovernmental
Charges for servJl.:es I(HU8S 6.282 516
I:ines and fortcllures 1.379.585 83,309
Interest mcome 30,669 71.636 1,272.609
Change in faIT value
of investments 11,083) (1,1111 (2,569) (835) (46.472)
Impact fees
Special assessments
Mlscdlancous 9,069 199.980 401 45,670
Total revenues 1,496,156 112.867 269.047 165,471 13.924.519
t::xpcnditures:
Current:
General government 1.223,666
Public safety 1.606.384 25.0UO
Physical environment 180,268 937.339
-j.ransportatlon
EconomIC envlTonment
Human servlccs
Culture and recreatIOn 54.(l62
Debt service:
Principal
Interest
Fiscal charges
Capital outlay 28,503 6,718.744
Total expenditures 2,858,553 25.000 54,062 180.268 7.656.083
Excess lddh:iem:v) ut"n:venUl';s
over (under) expenditures (1,362,347) 87.867 214.985 (14)97) 6.268,436
Other linancing sources (uses):
Bonds issued
Premium 011 bonds lssul:d
Luans issued
Sale of capital assets
Insurance proceeds
Inmsl"ersin 1.248.1\Jl\ 153,110
Transfers OUl (lU20) (662.981)
Total other tlnancing sources (uses) 1,248,198 (8,12U) (509.871)
Nd change in fund balances ( 114,199) 79,747 214,985 (14.797) 5,758,565
Fund balances (deficits) at beginning of year 1J3,801 662.161 1.511,585 616.81S 25.517.028
Fund balances (deficits) at end uf year $ 19,602 $ 741.908 $ 1.726.570 $ 602.021 $ 31,275,593
See accompanYIng lIldependent auditor's report
92
Special Revenue Funds
Other
Court Court Special
Impact Fee Infonnation Court Umvcrsity Facilities Affordable Revenue
Escrow Technology Services Extension Fee Housing Funds Tota]
$ $ $ $ $ $ $ $ 75,548,272
19,473 16,717,332
18,889,747
779,717 9,238,222 472 1.598,356 19,866,312
969,046 310,236 3,149,342
59,404 48,660 4,407 81,892 3,567,655
(1,332) (519) (53) 11,177) (345) (5,121) (191,972)
2,428,660
7,607 148,112 198,418 2,429,070
(1,332) 779,198 9,297,626 8,026 1,0]6,529 152,]74 2,203,254 142,404,418
333,855 9,297.626 551UIl 279,330 30,196,032
752,138 23,309,009
1,410 7,074,932
778,335 39,952,402
10,532,522
] 19,637 2,063,033
11,592 18,557,996
58,474
30,530
1,720 850,740 16,602 18,055,003
333,855 9,297,626 3,130 1,409,251 1,957,634 149,829,933
(1,332)
445,343
4,896
(342,722)
152,174
245,620
(7,425,515)
6,068,171
30,815
4,896
30,656
$ 35552
(392,722)
1,0:"0,041
657,319
152,174
79,322
$ 231,496
72.421
(412,115)
(339,194)
(9],574)
4,813,088
$ 4,719,514
21,518
197,677
23,952,027
(17,246,419)
13,023,789
5,598,274
123,756,085
$ 129,354,359
(559,700)
(559,700)
(1,332) (114,357)
646,068 164,198
$ 644,736 $ 49,841 $
$
(Continued)
93
-'~'"-"------'---'--'------~-"-"~'--'"
COLLIER COLN1\', FLORIDA
COMBINING STATEMENT OF REVEN1IES, EXPENDITURES AND CHAl\m:S IN FUND BALANCES
NOI\MA,JOR GOVERNMENTAL FUNDS
FOR TIlE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Debt Service Funds
Pooled Stormwatcr
(JusTa\: Capital CommercIal Improvement
Revenue Improvement Paper Caribbean Assessment
Bonds Revenue Bonds Program Gardens Loan Bond
Revenues:
Taxes I I $ I 11,956,876 I
I ,lcenses and permits
Intergovernmental
Charges for servlCcs
Fines ,md forfeitures
Interest meume 166,085 4.:H8 4,133 141,202 24,470
Change in fair value
of investments (6.650) ( 1191 (109) (353) (663)
Impact fees
Special assessments 120,069
Miscellaneous 32,994 11,481
Total rcvenues 159,435 4,729 37,018 12,109,206 143,876
Expenditures:
Current:
General guvcmment
Public safety
Physil.::al environment
Transportation
EconomIC envIronment
Human servl(.;es
Culture and recreallon
Debtscr\"ice:
PrinClpal 6,4lJ(HJUU 8.84U,O(J() ] 1,16LOOO 12,100.000 ]45.000
Interest 8089277 10.546,850 IJlI6.592 528.756 53,213
!-'iscal charges 4.57lJ 7,144 14.692 3,434 6.145
Capital outlay
Tolal expenditurcs 14,583,856 19.393,994 12,192,284 12,632,190 204,358
Excess (deficlCl1cy) ufrevenues
over (under) expenditures (14,424.421 ) (19.389,265 ) (12,155,266) (522,984) (60,482)
Other financing sources (uses):
Bonds issued
Premium on bonds issued
l.oans Issued 124,444
Sale of capital assets
Insunmcc proceeds
Transfers m 1J.962,80U 19,364A()U 12,135,973 131,838 1,157
Transfers out l322,166) (4,154)
Total other t1nancing sources (uses) IJ,Y62,800 19,364,'HlO 12,260,417 (190,328) (2,997)
Net ch,mge in fund balances (461,621 ) (24)i651 105.15] (713,]12) (63,479)
Fund balanns (deficits) at heginning of year 4,li91,l54 ]lJ7,ll)S 101I,91S 1,IOS,391 526,440
Fund balances (deficits) at end of year $ 4,429,533 $ 172,333 I 215,066 $ 395079 $ 462.961
,
Sce accompanYll1g ind~pendenl audilOr's repon
94
Capital Projects Funds
Limited General
Obligation Bonds
Conservation Collier
Series 200SA
County-Wide
Capital
Improvements
Forest Lakes
Limited General
Obligatiun Bunds
Community
Redevelopment
Line of Credit
Parks
Improvements
Total
$
$
$
628,862 I 17,799.533
$
$
5,213,795
3,315,968
458,099
151,023
16,767 22 5,639 363,166
(221) (1) (24\)) ,S,365) (47,718) (26,890)
120,069
44,475 41,188 235,500
5,230,341 21 634,252 18,318,878 3,309,438 817,732
2,366,696
225,998
84,878
726,050
249,251
(271,039)
33,385
(26,411,600)
(1,310,847)
(46,540,821 )
146,829
146,829
124.444
13,777,471
51,696 271,978 6,938 45,926,780 23,052,400 2,060,416
(103,962) (13,953) (444,235) (501,981) (348,667)
(52,266) 271,978 139,814 45,753,818 36,327,890 1,711,749
196,985 939 173J 99 (7<7,1103) 9,916,290 400,902
4,312 4 6,837,414 28,321,521 17,485,329
$ 201,297 $ 943 $ 173,199 $ 6,050,411 $ 38,237,811 $ 17,886,231
95
--"~..~-,-----
'..'___ """_'r .."___._,,,,_,__'~,,""" .... "...,.."__.........>___..".~~".,.w.."'~.._..._....,..>_.^_"_
w___'
-,
'"
~_.._,~~""
COLLI[R COl:~TY, FLORIDA
COMBINI~G STATEMENT OF REVENI:ES, EXPENlllTURES AI\D CHANGES 11\ FUND BALANCES
NONMAJOR GOVERNMENTAL FliNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Capital Projects Funds
COllnty-Wlde Corrcclwnal Emergency Government
Llbrarv FacilitIes Medical Services Water Facilities
Impact Fees lmpact Fees Impact Fees Management Impact Fees
Revenues:
Taxes I S $ $ $
Licenses and pcmllts 56,300
I ntcrgovemmental 600,000 3,215,433
Charges for services 2
Fmes and forfeitures
Interest income 63.1 537 32,254
Change in fair value
of investments (6,5471 (4,3S2r (1,226) ( 13,103) (50,790)
Impact fees :'i{)(),430 1,14S,23R 382,027 2,059,626
SpeCial assessments 287,413
Miscellaneous 6,239 2,968 5,774 2,404 2,150
Total revenues 1,100,755 1,146,824 387,112 3,580,703 2,010,986
f:xpcnditures:
Current:
General guvernment 45,590
Pubilc safety 617'i9 22,502
Physical environment 106.739
, rransportatloll
Economic environment
Human servIces
Culture and reneatlOfl sun
Debt service:
PrinCIpal
Interest
Fiscal charges
Capital outlay 12,346,926 654,739 1,200,175 21,041,241 51,606,172
Total expenditures 12,398,654 716,498 1,222,677 21,147,980 51,651,762
Excess (defICiency) of revenues
over (under) expenditures ( 11,297,899) 430,326 (835,565) (17,567,277) (49,640,776)
Other financing sources (uses):
Bonds issued
Premium 011 bonds 15sw;d
I.oans Issued li}6S0.S96 23,139,039
Sale of capItal assets
Insurance proceeds
Transfers in 12,398,2S0 1,291,300
Transfers oul ~U]3,6l<:1} ~ 1 ,9S4,6(0) (838,869) (1,\64,887) (4,170,106)
Total other financing sources (uses) Y,136.YI:'i ~ 1 ,954.6{)()) (838,869) 11,233,363 20,260,233
Net change in fund balances (2.160.YS..J.} ( l,524,27..J.) (1,674,4341 (6.333,914) (29,380,543)
Fund balanu's (delicits) at beginning of year I.2UL:'\:'i(1 4,O..J.(U06 1,334.383 13.179,606 SO,154,750
Fund balances (delicits) at end of year I \Y5Y.42~) I 2,516,232 I (340,051) $ 6,845,692 $ 20,774,207
See <lccornpanYlIlg lIluependent <ludllor's report
l)()
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement CapItal Governmental
Districts Impact Fees Projects Total Funds
$ $ $ $ $ 93,347,805
514,399 17,231,731
7.282424 26,172,171
39,302 6 39.310 19,905,622
3,149,342
4,085 37509 3,968,330
(30,439) (17,852) (7,991) (206938) (407,275)
2,703,249 709,152 34.950 7,537,672 7,537,672
105,228 392.641 2,941,370
405,705 19,004 720.932 3,194,477
3,117,817 695,385 151,197 16,317949 177,041,245
828,740 3,241,026 33,437,058
27,802 1,932 339,993 23,649,002
1,150,744 1,342,361 8,417,293
726,050 40,678,452
10,532,522
2,063,033
328,346 1.420,574 19,978,570
85,936 43,080,410
26.804 21,816,163
164,870
2,654,328 13,104,269 331,868 130,232,473 148,287,476
2,982,674 13,132,071 2,313,284 137,415,217 352,104,849
135,143
(12,436,686)
(2,162,087)
(121,097,268)
(175,063,604)
6,215,000
30,815
9,699,450 57.266,556 57)91,000
21.518
197,677
1,656,514 40,458,880 110,337,687
(3,118,600) (5,027,717) (263,199) ( 18,902,307) (36,592,961)
(3,118,600) 4,671,733 1,393,3 15 78,823,129 137,600,736
(2,983,457) (7,764,953) (768,772) (42,274,139) (37,462,868)
22,802,213 11,374,R08 5JS75,543 ]55,770,215 286,363,714
$ 19,818,756 $ 3,609,855 $ 5,106,771 $ 113,496,076 $ 248,900,846
97
H__'.._>._"__._~__~~__ _.
__ "'__..___._~<_.'m ""
, ,~,.,,,,,,,-._~,_--------,......_~._...,.-.. _....-...,-~., ......._.,----_._~....------~.".,...
,. '.'m__.^<__
. -~--,-_.~-,._-_.---...,~
COLLlER COlJNTY, FLORIDA
COMBINING SCHEDllLE OF RHiENlJES, [XPI<:NDITVRES AND CHANGES IN FlIND BALANCES
BlIDGET AND ACTUAL (NON.GAAP)
MAJOR CAPITAL PROJECT AJ\U NONMAJOR GOVI<:RNMENTAL HINDS
FOR THE HSCAL YEAR ENDED SEPTEMBER 30, Z008
Road Impact Districts (Non-GAAPI
Road Construction (Non-GAAPJ
Budget i\ctual Vanallce Budget Actual Variance
Re,,'enues:
Taxes I l I I 16,252,600 $ 12,975,896 \ n,276,7(4)
Licenses and perm lis
Intergovernmental 10,39lo:,89lo: 9.186,lllS (1,212,713)
Chargesforservlccs 5,052 5,()S2 1,200,259 3.229A29 2,029,170
FmcsamJrorfcllures
IntcrestincOlm,: Il,SS4 6,::1::14 23,490 23,490
Impact fees 61,00O.OUO 29,141,341:; (31.1:;58,6521
Spccmlassessmerns
l\11scellaneous 23<1,673 239,673 4,127,788 4,918,580 790,792
Tula] n:vcnucs 61,000,000 "9'9')<157 1,3 I ,6\J7,(43) 31,979,545 30,333,580 (1,645,965)
., .J ~,
Expenditures:
Current
GeneralgovcrnmcnI
I-'ubh\:safety
Physical cnvlrunrnent
'!'ranspUrla\l\Jn 2,076,,"43 1,219,111\ 857,225 7,'111,423 6,355,505 1,555,918
ECOnOIl1lCenvlrunmcnl
I-Iuman services
Culture and recreatIOn
DebtSt;:n:ICt'
Capllaloutlay 106,052,879 63.214,869 42.838,010 147,370,723 57,083,387 90,287,336
TDtal \,Oxpenditurcs 108,12<1,222 t>4,4J3.987 43,6Y5,2J5 155.282,146 63,438,892 91,1::43,254
EXC~%ldefklt)ofrevenues
overlunder) expenditures (47J29,2221 l.15,041,0301 12,088,19:? (123,302,60]) (,33,105,312) 90,197,289
Other financing sources (uses);
Bonds Issued
l,uanslssued 85,902,6UO i8,'i,902,6(0) 8,805,400 (8,805AOO)
Payment 10 rcfundlllg bond escrow
Sale ufcapl\al assets
Insurance proceeds 3,517 3,517
Transfcrslll 215,\150,562- 28,950,562
Transfers out (19,753,300) (19,753,300)
Total other financlllg sources (usesl 85,902,6()() 185,Y02.60U) 18,002,662 9,200,779 (8,801,883)
:-.,'et change in fund balances JU73_378 135,U41 U30) 1,71,814,4(8) (105,299,939) (23,904_533) 81,395,406
Funt! balances at beginning of year 'nY04,374 97,')()4,374 124,228,478 124,228,478
Fund balances (defiCits) at end of year I lJ6,6n752 \ 0:'.)l63,l-14 , (73,814,408) $ 11:;,928,539 I IOU)23,')45 I 81,395,4U6
,~eeaccompaIlYlllg Independent auJllors' r~purt
ReconClllilllUIl
Net change In fund halan\:c, QUdgelary hasls I d:'041.(30) $ (23,904,533)
Change III tim va]llc Ofl1lvcstmcnls \i27LJll,) (165.1171
i\dvancesbudgewdaslranskrs
Unbudgekd funds
I.ktl:rn:drevcllul:s
Net change In fund balance, (Ji\/\P baSIS S (35,168,946) I (24,069,650)
W\
Road Districts (Non-GAAP)
Unincorporated Area MSTD (Non-GAAI))
Budget
Actual
Variance
Budget
Actual
Variance
$ $ $ I 41,673,300 $ ]5,655,325 $ (6,017,975)
590,200 585,880 (4,320) 1,353,800 6,187,064 4,833,264
2,150,300 2,128,876 (21,424) 369,007 369,007
56,900 11.610 (45,290) 2,733,700 2,336,818 (396,882)
7iO,000 407,166 (302,lD4)
2.252 '052 52,000 31,676 (20,324)
35,000 8,805 i,,26,195)
24,900 14],763 116,863 146,237 679,480 533,243
2,822,300 2,870,381 48,081 46,704,0]7 45,675,341 (1,028,696)
7,772,921 7,268,965 503,956
5,096,436 4,813,651 282,785
733,751 534,626 199,125
21,976,6]0 20,457,114 1,519,516 16,819,763 15,111,324 1,708,439
256,300 234,187 22,113
11,996,283 10,789,096 1,207,187
2,699,431 2,435,429 264,002 4,299,967 2,857,972 1,441,995
24,676,061 22,892,543 1,783,518 46,975,421 41,609,!Q] 5,365,600
(21,853,761)
(20,022,162)
1,831,599
(271,]84)
4,065,520
4,336,904
20,000 101,629 81,629 159,440 93,066 (66,374)
19,085,000 19,085,000 3,236,107 3,365,600 129.493
(402,300) (402,300) (8,552,503) (7,959,734) 592,769
18,702,700 18,784,329 81,629 (5,156,9561 (4,501,068) 655,888
(3,151,06Ij (1,237,833) 1,913,228 (5,428,340:, (435,548) 4,992,792
3,256,461 3,256,461 14,140,966 14,140,966
$ 105,400 $ 2,0]8,628 $ 1,913,228 $ 8,712,626 $ 1],705,418 $ 4,992,792
$ (1,237,!D3)
(6,080j
$ (4]5,548)
(23,890)
(un)
$ (1,243,913)
$ (460,716)
99
-",_._--~>--"",----,.._,,-~",
--~-.-
,- ---~ "- ~.~, ""..",-,,-,-, ,~,_._~----
~"__,"M. , _"'_""_'_'~"''''_____''
---"--,--~.
COLLIER COrNTY, FLORIDA
COM81NING SCHEDULE 0.' R.~V[Nl1F:S, EXPENDITURES AND CHANGES IN FUND 8ALAN('ES
8'IDGET AND ACTUAL C\lON-GAAP)
MAJOR (:APITAL PRO.fECT AND ~ONMA,JOR GOVERNMENTAL FtiNDS
FOR THE FISCAL YEAR ENDEJJ SI<:PTEMBER J(J, 2008
Community Deve!opmc:nt (Non-GAAP)
Water Managemc:nl
and Pollution Control (Non-OAAP)
Budget Actual Vanance Budget Actual Variance
Revenues:
Taxes S I I , 2,318,HlO , 2,23 1,043 $ (87,057)
Licenses and permlls 14,170,000 '),')24,245 14,245,755) 800 670 (130)
Inlc:rgovernmental l,i2400 (142.400) I 59,IlOO 215_183 56,183
Chargc:s for sc:rvlces 3~).lU)IJO 'n14l' 11U6587, nO_600 322)\70 52,270
_J _~, J
Flnes and fortClturc:s
Interc:sllllcome 122,OO() 201545 7'J,545 50,700 95,638 44,938
Impactfecs
SpeCial assessments 2,508,300 2.419,855 (88,445)
M1Sl:c:llaneous 33,tJ()() 215_'J8tJ lfol2,980 54,492 54,492
Tota] rc:vc:nuc:s 17,795,4tJtJ 13,563,183 \4,232,217) 5)07,5()U 5,339,751 32,251
Expenditures:
Current
Gc:neralgovc:rnment H,550,610 7,820,734 n'J,876
Public safety 940()5uO 8,635,531 764 <J6l)
. ,
PhYSical envlronmen1 648h()(J 570301 78,29'l 3,435,600 3,063,427 372,173
Transportaliol1 1,6Y3,668 1,632,862 60,806
EcOnOInICenVlronm"nl
Ilumlln serV1C~S
Culturcand recreallon
Debt serVlce
Capital outlay 10,000 1.352 8,648 431,345 175,1811 256,157
rotal expendl1ures 18,60Y,71ll 17,O27,9111 1,581,7Y2 5,560,6lJ 4,871,477 689,136
l~xo.:~ss (UeriC1 t ) of revef]ue~
over (under) expenditures (SI4,310) (3,464,735) (2,650,425) (253,113) 468,274 721,387
Other financing sources (uses):
Bonds lssued
Loans Issued
Payment to refunding bond escrow
SlIle llfcapllal assets 16518 16,518
Insurance proceeds 574 574 2,355 2,355
TransfcrSln 1,14U,UOO 1.140,UOU 50,000 54,428 4,4n
'[ransfersout 12,17U,5(JUj (2,007,600) 162,YUO (413,900) (315,351) 98,549
Total othcr financing souru:s luses) (I,OU,n::1 i,85l!,5(11) 163,474 (363,l)()O) (258,568) 105,332
Net change III I'undbalances iI ll2:-1)921 1,4_'1:','2431 i2481>,9511 (617,013) lO'l.7G6 826,719
Fund balances at beginning ufycar SOS5,'n::! ll,Oll5'-138 3,OU2,213 3,()()2,213
Fund balances (deficits} at end of ~'car S 6,257,040 $ .1,77(),b95 I \2,4116,951) $ 2,385,2()O $ 3,21 ],919 I 826,719
See accompanYIng 1l1dcpendenl alld1tors' rc:pon
Keconu]latJon
Net change in fund balance, budgetary baSIS I \4,315,2431 S 209,706
Change 111 lim value ofinvestmenls iiUllj (5,162)
Advances budgeted as transfers
Unbudgetcd funds 187
Deferreurc:venues
Netchangc tn fund balance, GA1\Pbasls S (4,323,554) $ 204,731
lUll
Grants and Shared Revenues (Non-GAAP)
Improvement Districts (Non-GAAP)
Budget
Actual
Variance
Budget
Actual
Vanance
$
$
I
$ 4,152,200 $ 4,007,145 $
(145,055)
23,232,812
29,819
6,934,796
55,691
(16,298,0]6)
25,872
189,600
38,0&0
]58,420
38,080
(31,180)
51.902
52,902
230,300
759,691
529,39]
113,511
120,186
6,675
201,700
37,910
(163,790)
23,376,142
7,163,575
(]6,212,567)
4,773,800
5,001,246
227,446
2,696,713 835,054 ],861,659
696,775 360,14] 336,634
68,426 45,222 23,204 355,600 200,466 155,134
1,524,072 1,164,901 359,171
15,812,090 3,690,395 12.121,695
4,214,245 1.943,396 2,270849
256,047 21U24 44,323 1,237,600 ],126,895 110,705
799,358 163,534 635,824 15,466,243 2,198,719 13,267,524
24,543,654 7,249,466 17,294,188 18,583,515 4,690,98] 13,892,534
(1,167,512)
(85,891)
1,08],621
(13,809,715)
310,265
14,119,980
5,980,100
6,098,986
]]8,886
331,620 284,741 (46,879) 634,300 681,680 47,380
(34,346) (34,346) (508,800) (284,1581 224,642
297,274 250,395 (46,879) 6,105,600 6,496,508 390,908
(870,238) 164,504 1,034,742 (7,704,115) 6,806,773 14,510,888
1,345,119 1,345,119 9,784,615 9,784,6]5
$ 474,881 $ 1,509,623 $ 1,034,742 $ 2,080,500 $ ]6,591,388 $ 14,510,888
$
164,504
(J,921)
$ 6,806,773
(29,765)
924,721
$ 6,777,008
$ 1,085)04
101
... ,.'''~~-~-<'. ,,_.,.. .'...'"
"~'''~~_.''''~'"''''''',-"".,,,,,---,-'''~''-.'.,--,~--^.^>._,~--' ......
--------",---~-,_.<_.__.,...._._,._...__..,,-
COLLIER {'OliNTY, FLORIDA
COMBINING SCHEDlILE OF REVENUES, EXPENDlTliRES AND CHANGES IN FUND BALANCES
BODGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT A~D NONMAJOR GOVERNM.~:'IITAL HTNDS
I-OR TH.~ FISCAL YEAR I<:NDED SEPTEMBER 30, 2008
FIre Control Districts (Nun-GAAPl
LightIng Districts (Non-GAAP)
lU2
911 Enhancement Fee (Non-OAAP)
Budget
Actual
Variance
$
2,000,500 $ 1,874,196 $ (126,304)
237,500
212,921
(24,579)
170,357
170,357
2,238,000
2,095,188
2,095,188
]42,812
2,257,474
19,474
1,192,733
902,455
1,192,733
902,455
1,064,74\
921,929
142,812
4,441,588
],064,741
921,929
4,441,588
$
4,584,400 $ 5,506,329 S
921,929
$ 1,064,74]
(8,654)
$ 1,056,OS7
Public Records Modernization
Budget
$
1,875,000
225,000
2,100,000
5,540,600
5,826,900
11,367,500
(9,267,500)
19,267,500)
9,267,500
$
Actual
Variance
-'~~-""
,.,.. ,"'_,....,.-'~___~ ._ "........._~ . _.'~n..~...
$
$
990,305
(884,695)
289,395
64,395
1,279,700
(820,300)
2,443,493
3,097,107
1,98],816
3,845,084
4,425,309
6,942,191
(3,145,609)
6,121,89]
(3,145,609)
6,121,891
9,267,500
S 6,121,891 $ 6,121,891
10:\
$ (3,145,609)
$ (3,145,609)
....--..-.-, '..
-...,._._--,-
-_.-.--
COLLIER COl,'NTY, FLORIDA
COMBINI!IIG SCHFDliLE 01, REVENtlF.S, EXPENDITURES AND CHANGES IN FL'ND BALANCES
BIIDGET AND ACTlJAL (~ON-GAAI))
MAJOR eAPn AL PROJECT AND NON MAJOR GOVERNMENTAL I'UNDS
FOR THE I'ISCAL YF.AR .~NDlm SI<:VTEMBER 30, 2008
l'uurisl Devc!opment (Non-GAAI')
Slate Housing initiative Partnership (Non~GAAP)
\{I4
800 MHZ [ReF Fund (Non-GAAP)
Budget
$
781,200
1]2,100
893,300
1,180,300
1,180,300
(287,000)
100,400
100,400
(186,6UO)
284,000
$
97,400 $
Actual
Variance
$
$
731,598
(49,602)
199,417
87,3]7
931,015
37,715
U36,950
43,350
8,674
(8,674)
1,145,624
34,676
(214,609)
72,391
100,400
100,400
(114,209)
72)91
284,000
169,791 $
72)91
$ (114,209)
(546)
(2,339)
$ (117,094)
State Court Administration (Non-GAAP)
Budget
Actual
Vanance
$
$
$
1,882,900
108,585
1,379,585
108,585
(503,3]5)
9,069
9,069
1,882,900
1,497,239
(385,661)
1,495,500
],686,500
])23,666
1,606,384
271,834
80,116
233,900
28,503
205,397
3,415,900
557,347
2,858,553
(1,533,000)
(1,361,314)
171,686
1,980,573
1,248,19S
(732,375)
1,980,573 1,248,198 (732,375)
447,573 ll13,116) (560,689)
360,600 360,600
$ 808,173 $ 247,484 $ (560,689)
$ (]13,116)
(1,083)
$ (114,199)
105
>_"~_.e
_ "",_"_~_""""",,,"_____,,,_,_,,.'_"_~'__.~_..,_,"_'"__ .~........ ~. _________.___m
__ 'w.__._____~
~ _.~----
COLLIER COUNTY, n,ORIDA
COMBINING SCHEDULE or Rl<:VENl!F:S, EXPENDITl.1RF:S AND CHANGt:S IN FU~D BALANCES
8\:DGET AND Acn:AL ("\ON-GAAP)
.\1AJOR CAPITAL PROJECT AND NONMAJOR GOVI':RNM[!''HAI. Fl!NDS
FOR THE FISCAL Y[AR l<:'iDED SEI"n~M8[R JIl, 21108
Confiscated Property (Non~GAAPI
(lAC Land Sales, Roads and Canals (Non~GAAP)
l()(}
Utility Fees (Non-GAAP)
Budget
Actual
Variance
$
120,000 S
159,623 $
39,623
67,000
6,282
(60,718)
401
401
187,000
166,306
(20,694)
222,300
180,268
42,032
2,800
2,800
225,100
180,268
44,832
(38,100)
(13,962)
24,138
$
(13,962)
(835)
$
(14,797)
Conservation Collier (Non-GAAP)
Budget
Actual
Vanance
:}; 13,147,200 $ 12,652,196 $
150,000
(495,004)
516
516
1,272,609
1,122,609
45,670
45,670
13,297,200
13,970,991
673,791
1,068,023
15,974,800
937,339
130,684
6,718,744
9,256,056
]7,042,823
(3,745,623)
7,656,083
9,386,740
6,3]4,908
10,060,531
107
,..__~<o_~_"._~~c,,,"_=~_,____>,_O>'_.-""" " ~.. ".___,,_._ " __ ._'''..,...._".....
$ 5,805,037
(46,472J
$ 5,758,565
~,,_...,.-'_. ""-'-'-~ ,.,. - -~--"""."..,-
......,- ".------
--"~_."-
COLLIER COUNTY, FLORII>A
COMBINING SCIIEDt,'U: OF REVENliES, [XPENDITliRES AND CHANGES IN HiND BALANCES
BlJDGt~T AND ACTtAL (NO~-GAAI')
MAJOR CAPITAL PROJ}:Cr AND NON MAJOR GOVER!"iMENTAL FUNDS
FOR THE F1S('AI~ YEAR ENDE:D SEPTEMBER 30, 2008
Court Informallon Tet:hnology Fee (Non-U/\AP)
Court ServIces
1118
University Extension (Non-GAAP)
Budget
$
4,200
4,200
Actual
Variance
$
$
472
472
7,607
3,407
8,079
3,879
4,500
2,000
6,500
(2,300)
1,410
3,090
1,720
280
3,130
3,370
4,949
7,249
(2,300)
38,800
4,949
7,249
38,800
$
36,500 $
43,749 $
7,249
$
4,949
(53)
$
4,896
Court Facilities Fee (Non-GAAP)
Budget
$
1,161,000
Actual
Variance
$
$
969,046
48,660
(191,954)
48,660
1,161,000
1,017,706
(\43,294)
560,000
1,51S,382
558,5]1
1,489
850,740
667,642
2,078,382
1,409,251
669,131
(391,545)
525,837
(917,382)
(917,3S2)
975,482
$
58,]00 $
109
(391,545)
525,S37
975,482
583,937 $
525,837
$ (39],545)
(1,177)
S (392,722)
,--...,.__._~~--,-_._,--~--_.'"
'-. --- '._~"~~"-----'-""'-~'~'~-"-'-~~--'~-~~'"-" .....' ,-,
_'W___'~
COLLIER COUNTY, FLORIDA
COMBINING SCHEDL'LE OF RJ<:VI<:NlIES, EXPENDlTlJRE:S AND CHANGES IN FlIND BALANCES
IHlDG..:T AND ACnlAL (!\iON-GAAP)
MA,JOR CAl'lTAL PROJECT AND NO:\'MAJOR GOVERNMENTAL HiNDS
FOR THE FISCAL n:AR ENDED StPTI':MBER 30, 2008
Other Special Revenue Funds (Non-(iAAP)
Gas Tax Rewnue Bonds (Non-GAAP)
Budget Adual Variance Budget Actual Variance
Revenues:
I'axes $ S S $ $ I
Llccnses and perm tiS "~5 DUO 1'1,473 'i"J7)
!-,:L
Intergovernmental 20,UUU 1,20,0(0)
Charges for servICes 142,400 924,5S5 11 I 7)n 5:,
Fines and forfeitures lS2.lJOU 310,236 142,664)
lnleresll1lcomc 26,600 7K197 51,597 25,000 166,085 141,085
Impact fees
Speclalassessments
\illscellaneous IOY,6(JU ]4L794 32.]'-)4
Iota] revenues 1,676,5UU ],474,2S5 il02.2]5) 25,UOU 166,OSS 141,OS5
[xpentlitures:
Current
General govemmenl 2lJ7YOU 179,330 2S,57U
Pubhc safety 44'1,70li 331.151 11,1\544
Physlcal enVlronment
'l'ransportatlo!l 435,9011 77loU35 1'i7565
EconOll1lcenvlwnment
f-!umunserVlces 361.901 1]1I,637 242,264
Culture and recn:allOll S6,l)()() I 1.5'~2 74.408
Debt service 14,595,800 14,583,856 11,944
CapIta] outlay 59U,OU() 9,454 5/lO,546
Total expenditures 2,631.401 1.424.444 1,201,902 14,595,llOO 14,583,ll56 11,944
Excess (ddiClt) of revenues
ovcr(undcr) expenditures (954,9011 44,nb 999,687 (14,570,800) (14,4]7,7711 153,029
Other financing sources luses):
Bonds Issued
Loans issued
I'aymenttu l'efLmdmgbondescfOw
Sale of capita] asscts
lnsuranceproceeJs
Transfers III 'oI,I\7UO 7'2,921 125779) 13,962.800 13,962.800
lmnsfcrsoul (nUllO) 14]2,]151 F7,585
TOlal other tinancmg sources (uses) 1341.00li.1 l3j'ol,1941 I,lW6 IJ,%2,SOO 13,462,800
NClchangc III fund balances II 29:',9()1.1 1294,4UKI IU()],491 (608,OUO) 1454.9711 153,029
f'und balances at beginning uf)'ear 3,142,6Ui J,]42,b01 4,709,JOO 4,709,300
Fund balancl~s (deficits) at end of)'ear I ],S4b,70U $ 2,848,193 S I,(J01,4'13 $ 4,101)00 I 4 754 ~"<) I 153,029
',_ ,J.c.
See accompanYlflg mdependent audllors' report
ReconClllatlun
Net change If) fund balance, budgdarybasls $ (2lJ4,40S) S (454,971)
Change IfI r~mvalueoflflveslments i4,9(6) (6,650)
Advances buugeted as transfers
l'nbuJgetcd funds 2U,~,H:W
Dcfcnedrt'v.:nucs
Net change In fund ba]unct', C;Ai\P baSIS S (93,574) S (461,621)
110
r
Capital Improvement Revenue Bonds (Non-GAAP)
Budget
Actual
Variance
$
$
$
4,R48
4,848
4,848
4,848
19,406,80U
19,393,994
12,806
]9,406,800
19,393,994
12,806
(19,406,800)
(19,389,146)
17,654
19,364,400
19,364,400
19,364,400
19,364,400
(42,400)
(24,746)
17,654
42,400
42,400
$
$
17,654 $
17,654
$
(24,746)
(119)
$
(24,865)
Pooled Commercia]
Paper Program (Non-GAAP)
Budget
Actual
Variance
$
$
$
500
4,]33
3,633
32,994
32,994
500
37,127
36,627
16,428,900
12,192,284
4,236,6]6
16,428,900
12,192,284
4,236,616
(16,428,400)
4,273,243
(12,155,157)
124,444
124,444
16,428,900
12,135,973
(4,292,927)
16,428,900
12,260,417
(4,168,483)
500
105,260
104,760
69,900
69,900
5
70,400 $
175,160 $
104,760
$
105,260
(109)
$
105,]51
111
_'''___X~_
_.~,-,~",-,.
..~ ., _~_"".>~____'''~.___~,m'__'' _ ..".. _'~'"~,,,__._,'~'_"",,_<<''''
--
-_..,'" ~,,_.
COLLIER COUNTY, FLORIDA
COM81NING SCHEDLLE OF REVENllES, EXPF,NDlTlJRES AND CHANGES 1!'Il Fl'ND BALANCES
BUDGET AND ACTllAt (NON-GAAP)
:\-1A.JOR CAPITAL PROJECT AND NON MAJOR GOVERNMENTAL FI.lNDS
FOR THE: "'ISCAL YEAR ENDED SEPTEMBER 30, 2008
Caribbean Gardens Loan (Non-GAi\P)
Stomlwaler lmpruvelTIl::nt
Assessment Bond (Non-GAAP)
111
LimIted Genera] Obligation Bonds,
Conservation Collier, Series 2005 (Non-GAAP)
Community Redevelopment
Line of Credit (Non-GAAP)
Budget
Actual
Variance
Budget
Actual
Variance
$
5,4]3,500 $ 5,2]3,795 $ (l99,705)
I
I
$
500
16,767
]6,267
22
22
5,414,000
5,230,562
(183,438)
22
22
4,983,]00
4,981,090
2,010
500,000
271,060
228,940
4,983,100
4,981,090
2,010
500,000
271,060
228,940
430,900
249,472
(181,428)
(500,000)
(27],038)
228,962
51,696 51,696 500,000 27],978 (228,022)
{I 62,400) (103,962) 58,438
(162,400) (52,266) 110,134 500,000 271,978 (228,022)
268,500 197,206 (7L294) 940 940
2,200 2,200
$ 270,700 $ 199,406 $ (71,294) I $ 940 $ 940
I
19n06
(221)
$
940
(II
$
939
I
196,985
113
,,--,.._,~_._.~,---,~~,~---- .
~,..... _".".....,_>_."_.___,_,,~""c~.~ "._ ...
"'~
.._......_._,,~"_..".~.,..,.__~..~_.."__._m . .....__'..,~_".,
--
COLLIER COl'NTY, FI,ORlJ)A
CO:\1B1~ING SCnEDllLE OF REVENUES, EXPENDITURES A~D CHANGES IN HiND BALANCES
BlIDGET AND ACTliAL (NON-GAAP)
MAJOR CAl'lTAl. PROJECT AND NO~MAJOR GOVER,",'MENTAL FliNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
I;orest Lakcs Lllnned General
Obligation Bonds (Non-GAAP)
County-Wide Capital Improvements (Non-GAAP)
Budget Adual Vanancl: Budget Actual Variance
Revenues:
Taxes S 650,OUO S 62::l,l\(j2 S t2L US) $ S $
Llco:nses and pennlts
]ntergovernmental ') ~33 ~99 3,315,968 782,569
-,- ,-'
Charges for serVice,
Fmesandforfelturo:,
Interestmcome 5,639 ~F1li 5700 (5,700)
lrnpactfet:s
Speclalasses,menLs
Mlsctllaneous 4],188 41,188
\'otalrevenues 650,000 634,501 (15.4':19) 2,539,099 3,357,156 818,057
Expenditures:
Current
Genera] govern me III 3,579,296 2,366,696 1,212,600
PubliC safety 495,017 225,998 269,019
PhYSical en\'lronment 171.763 84,878 86,885
Transportation 7~4.254 726,()50 28,204
EconomIc t:nvlIonment
HllrnanservKO:s
Cuhurt: andrecreatlOl] 73.100 96,570 (23,470)
Deblst:rvlce 61J2jUU 600,867 ],633 113.000 112,740 260
Capitaloutlav 50.704,377 16,]08,106 24,596,271
Total expenditures 602jUU 6lJO)i67 163-' 55,890,807 29,72],ll38 26,169,769
EXl.:essuJelll.:lt)01 revcnues
over (under) expenditures 47.5UU 33.634 (13,866) (53,351,708i (26,363,882) 26,987,826
Other finandngsources (uses):
BOllds Issued 146.1.;29 146 ~n9
Loans Issued 14,099,507 13,777,471 (322,036)
Paymenllll rd'undmg bond escro\v
Sale of capital aSStt,
Insurance procteds
'lransfcrsm 6,938 6';)38 23,052,400 23,052,400
Transfers out 1.15,OUOJ \]3,(53) l.U.j7 (8,109,500) (8,010,581) 98,919
T'otalothertinanclflgsourcesiuS<:,j 1.15,OUU) 13'),814 ]54,814 29,U42,407 28,819,290 (223,117)
:\ct change 1tl fund balances 32j(lU 17.\448 ]40,9-H. (24J09,301\ 2,455,408 26,764.709
J.'ulld hlllanccs at beginnin~ of year 24,981,701 24,981,7UI
Fund balllnl~es (deficits) at end ofycllr $ 32,500 S 173,448 $ I.tU,948 $ 672,400 $ 27,437,109 $ 26,764,709
See ,H:wmpanying mdependent auditors' report
Reconcl]latlOn
Net I.:hangt.' 111 fund balance. budgetary baSIS $ 173,448 $ 1,455AO,'S
Changell11iurva1ueof1l1vestments (249\ (.t7718)
Advanct.'s budgctcd as transfers 7.508.60U
Unbudgeted funds
Deferred reVVlllles
~et changt In IUlld balanl.:e, CiAAP hasls $ 173,]',I';l $ 9,916,290
114
Parks Improvements (Non-GAAP)
County-Wide Library Impact Fees (Non~GAAP)
Budget
Actual
Variance
Budget
Actual
Variance
$
$
$
$
$
$
250,000
412,449
458,099
15],023
208,099
(261,426)
1,000,000
600,000
(400,000)
633 633
2,100,000 500,430 (1,599,570)
235,500 235,500 6,239 6,239
897,949 844,622 (53,327) 3,100,000 1,107,302 (1,992,698)
3,348,884
943,930
2,404,954
92,749
5],728
41,02]
16,648,993
1,184,649
]5,464,344
16,835,595
12,346,926
4,488,669
]9,997,877
2,128,579
17,869,298
16,928,344
12,398,654
4,529,690
(19,099,928)
(1,283,957)
17,815,97]
(13,828,344)
(11,291,352)
2,536,992
10,652,700
10,650,596
(2,]04)
2,048,414 2,060,416 12,002 3,092,700 3,092,700
(352,000) ~348,667) 3,333 (1,985,700) (1,513,681) 472,0]9
1,696,414 1,711,749 15,335 11,759,700 12,229,615 469,915
(17,403,514) 427,792 17,831,306 (2,068,644.1 938,263 3,006,907
17,463,864 17,463,864 2,513,624 2,513,624
$ 60,350 $ 17,89\,656 $ 17,831,306 $ 444,980 $ 3,451,887 $ 3,006,907
$
427,792
(26,890)
S 938,263
(6,547)
(3,092,700)
$
400,902
$ (2,160,984)
115
~,,,-~
-,---..
,_.._"----,,.._.."~--_..-. ......,"'..~,........-"_.__.;--"-_....._..- .~-,..~ . -~..."'-' '-'~--"~'-'-~-'-
~.,.-
COLLIER COliNTl', FLORIDA
COMBINING SCH.~DllLE OF R}<:VENt:ES, EXPENDITVRES AND CHANGES IN FlJND BALANCES
BlIDGET AND ACTUAL (NON-GAAP)
MAJOR CAPri AI. PROJECT AND NONMAJOR GOVERNMENTAL nl~DS
FOR THI<: FISCAL VEAR F:NDED SEP'n:MBI':R 311, ZOOS
l'orn;ct!onal Faclhlll:s
1mpacl Fees (Non-lIAAPJ
bnergency Medical SerVices
lmpact Fees (Non-GAAPJ
ll()
Water Management (Non-GAAP)
Government
Facilities Impact Fees (Non-GAAP)
Budget
Actual
Variance
!3udget
Actua]
Variance
63,448
45,590
]7,858
325,000
106,739
218,261
27,668,33]
21,041,241
6,627,090
73,622,060
51,606,172
22,015,888
27,993,331
21,147,980
6,845,35]
73,685,508
51,651,762
22,033,746
(19,464,231)
(17,554,174)
1,910,057
(70,085,5081
(49,589,986)
20,495,522
23,615,300
23,139,039
(476,261)
12,395,400 ]2,398,250 2,850 3,366,500 3,366,500
(1,170,400) (1,164,887) 5,513 (6,262,700) (4,170,106) 2,092,594
11,225,000 11,233,363 8,363 20,719,100 22,335,433 1,616,333
(8,239,23 I) (6,320,811) 1,918,420 (49,366,40S) {27,254,5531 22,111,S55
14,975,231 14,975,231 52,195,508 52,195,508
I 6,736,000 $ 8,654,420 $ 1,918,420 $ 2,829,100 $ 24,940,955 $ 22,111,855
$ (6,320,811) $ (27,254,553)
(1J,103) (50,790)
(2,075,200)
(20)
$ (6,333,934) $ (29,380,543)
117
. '"",--'><-'-,_.~.~--".,-,.,.~-><.,"""","
.._- . '-" ,.'-,~- - - -, ---- _....__....._~--
_._<-,~-,----~
COLLIER COt'l'HY, }'LORIDA
COMBINING SCIIEDl:U: OF REVENIIES, EXPENDlTllRES AND CHANGES 1:\ HIND HALANn:S
8I:DGI':T AN)) ACTlIAL (NON-GAAP)
MAJOR CAPITAL PROJECT ANn NON MAJOR GOVERNMENTAL Fl.1J\'DS
I'on. THF: FISCAL YEAR ENOEn SEPTEMBER 30, 2008
Parks Impact Districts (Non-GAAP )
Law Enforcement Impact Fees (Non-GAAP)
118
Other Capital Projects (Non-GAAP)
Budget
Actual
Variance
$
$
$
116,900
62,800
6
(116,900)
(62,794)
18,400 34,950 16,550
106,100 105,228 (872)
19,004 19,004
304,200 159,188 (145,012)
834,430
6,200
1,934,420
828,740
1,932
],]50,744
5,690
4,268
783,676
734,638
734,638
2,355,292
331,868
2,023,424
5,864,YSO
2,313,284
3,551,696
(5,560,7S0)
(2,154,096)
3,406,684
1,855,500 1,856,5]4 1,014
(265,500) (263,199) 2,301
1,590,000 1,593,315 3,315
(3,970,7S0) (560,781) 3,409,999
6,444,315 6,444,315
$ 2,473,535 $ 5,S83,534 $ 3,409,999
$ (560,781)
(7,991)
(200,000)
$ (768,772)
119
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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.
COLLIER AREA TRANSIT - To account for the provision of public transportation 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 oflanding facilities and the sale offuel at the
airports.
COlLIER COl'NTY, FLORIDA
COMBINING STATEMENT Ot' Nt:T ASSETS
NON MAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2008
Tolal
Emergency Collier NonmaJor
Solid \Vaslc Mcdll:aJ (;oodland Airport Area Enterprise
Disposal SI;;Tvin:s V-.iater Authority l'ranslt Funds
ASSETS
Current assets:
Cash, cash eqUIvalents and lfIycSlments $ IlL 19] ,244 $ 5,087,.,30 $ 390,063 $ 2,874,545 $ 254,056 $ 26,797,238
Receivables:
Trade. net 2.145,449 3,941.096 )(r573 17.237 2,484 6,146.339
Interest 131,398 1,574 2,983 135,955
Unbilled revenue 270,585 9,275 279,860
Due from other funds 48,996 197 1,724 20,24) 71,210
Due from other governments 24,935 4.206 102,354 791,239 922,734
Inventory 13,203 156,871 170,074
Prepaid costs 50.192 50,192
Restricted assets,
Cash, cash equivalents and investments 389.190 131,517 226,202 746,909
Total currel11 assets 20,931,712 9,499,900 441,894 3,378,933 1,068,072 35,320,511
Noncurrent assets:
Capital assets:
Land and Ilondeprlo:cmble capilal assets 9,234,580 3,222,923 5,873,414 18,330,917
Depn:emble capital assets, net 7.749,601 3,711,923 %2,264 10,903,]72 7,920,452 31,247,412
Total noncurrent assets 16.91\4,181 3,71 ],923 %2,264 ]4,126,OY5 13,793,866 49,578,329
rotal assets 37,915,893 13,211,823 1,404,158 ]7,505,028 14,861,938 84,898,840
l.lABILlTIl:S
Current liahilities:
Accounts payable I,Y57,225 197,940 2L795 281L913 422,400 3,388,273
Wages payable 67,33Y 705,643 36,513 3,091 812,586
Retainage payable 42,242 42,242
Due to other funds 73 73
Due to other governments 13() 22,328 1,890 24,354
Due to indIViduals 422,051 422,051
Compensated absences li4.254 591,442 38,575 1,014 725,285
Capital lease obllgatlollS 109,799 16,346 126,145
LiabilitIes payable from restncted assets:
Rctainagc payable 61,974 61,974
Refundable deposits 291.195 14.920 306,115
Unearned rcwnue 97.995 131,517 149,308 378,820
Total current habilllles 2,550,386 2,158,465 44,123 608,439 926,505 6,287,418
Noncurrent liabilities:
Compensated absences 23,564 147,861 9,644 253 181,322
Capital lease obllgations 455.954 35,786 49 L740
Landl1J1 post-closure liability 1,815,160 1,815,160
Total noncurrent liabilitIes 1.838,724 603,1\15 45,430 253 2.488,222
Totallmbilitlcs .-U89,1 ](J 2.762,21\0 44,123 653,869 926,758 'cl,776,140
]\F:T ASSF:TS
Invested 1Il capItal assets, net of related debt 16.484,181 ';,146,17U 962,264 14,073,963 13,793,866 48.960,444
lJ'nrestriCkd 16,542,602 7.303,373 .197,771 2,777,196 141,314 27,162,256
Total net aSSl:ts 1 33.526,783 110,149,5'13 $ l,360,O35 $16,85l,l59 $ 13,935,180 $ 76,122,700
St:e accompanYllIg mdependent auditors' report
122
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REYENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAl, YEAR ENDED SEPTEMBER 30, 2008
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
Operating revenues:
Charges for services $ 35,113,948 $16,050,2IS $ 337,7S4 $ 3.529,561 $ 1,068,170 $ 56,099,681
Miscellaneous 1,380,880 117,181 853 16,985 5,694 1,521,593
Total operating revenues 36,494,828 16,167,399 338,637 3,546,546 1,073,864 57,621,274
Operating expenses:
Personal serVICt;S 1,665,951 19,159,173 1,068,920 72,664 21,966,708
Operating 27,915,603 10,691,950 433,615 3,007,037 8,276,950 50,325,155
Depreciation 503,961 711073 56,329 831,926 1,027,588 3,130,877
Total operating expenses 30,085,515 30,562,196 489,944 4,907,883 9,377,202 75,422,740
Operating Income (loss) 6,409,313 (14,394,797) (151,307) (1,361,337) (8,303,338) (17,801,466)
Non-operating revenues (expenses):
Operating grants and contributions 74,234 171.984 4,025,597 4,271,815
Interest income 314,016 32,617 20,578 367,211
Insurance reimbursement 240 4,836 250 29,185 34,5[1
Change in ''<lIT value of investments (27,482) (7,852) (580) (4,786) (390) (41,090)
Interest expense (6,215) (3,898) (10,113)
Gain (loss) on disposal of capItal assets (10,705) 966 (215,197) (13,074) (238,010)
Total non-operating revenues (expenses) 350,303 196,336 19,998 (223,631) 4,041,318 4,384,324
Income (loss) before
t.:ontnbutions and transfers 6,759,616 (14,198,461) (131,309) (1,584,968) (4,262,020) (13,417,142)
Capital grants and contributions 18,030 (,559,991 10,536,612 12,114,633
Transfers in 48,984 18,087000 1,573,333 4,940,900 24,650,217
Transfers out (702,367) (6000) (1,338,340) (2,046,707)
Total transfers and contributions (653,383) 18,099mO 3,133,324 14,139,172 34,718,[43
Changes in net assets 6,[06,233 3,900569 (131,309) 1,548,356 9,877,152 21,301,001
Net assets - beginning 27,420,550 6,548,974 1,491,344 15,302,803 4,058,028 54,821,699
Net assets - ending $ 33,526,783 $ 10,449,543 $1,360,035 $16,851,159 $13,935,180 $ 76,122,700
See accompanying independent auditors' report,
123
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COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH .'LOWS
NON MAJOR ENTERPRISE FllNDS
FOR THE FISCAL YEAR ENDED SEPTE\1BER 30, 2008
Total
Emergency Collier NonmaJor
Solld Vo/ash: Medical Goodland Airport Area Enterpnse
Disposal Scrvl(CS Water Authority Transit Funds
Cash flows from operating activities:
Cash received for servIces $ 34,42H128 I Y,317S2] I 328,004 I 3,560.144 I 1,232,769 I 48,862,066
Cash receivl;;d from refundable deposlls 524.714 524.714
Cash payments for goods and services (28Jl95,255) (3,509.065) (411,030) (2,%1,587) (8,3Y2,853) (43,369,790)
Cash payments to employees (\'6l3,30! ) (19.018.295) (1,059,979) (72,843) (21,764,418)
Cash payments on refundable deposlts (624,]04) (7,722) (631,826)
~e\ cash prO\.'lded hy (used for) operating
actIvities 4,6l5.6K2 (13,209,839) (83,026) (469,144) (7,232,927) (16,379,254)
Cash flows from non-capital financing activities:
Cash ren:lved from operating grants 4':1)'1') 157,253 4,936,433 5,142,985
Cash transli.:rs from other tunds 3.1137,445 I ~U)96,Y20 1,573,333 4.941,534 28,449,232
Cash transfers to other funds (4,489,207) (6,OOUj (1,338,974) (5,834,181)
Net cash prOVided by (used for) nOI1-
capital financmg actiVities (hlJ2A6J) IK,248.173 1,573,333 8,538,993 27,758,036
Cash flows from capital and related
financing activities:
Receipts from InSUranl'C relmbursemcnts 2-:J-O 4JL\6 250 29,185 34,511
Proceeds froln disposal of capital assets 7.520 15197 6,800 2<;1,517
Proceeds from capital grants 2,184,153 2,184,153
Payments for capital ac<.]ulsltlOlls (Y,126367) (859,452) (1,907,027) (1,508,248) (13,401.,094)
PrinCipal payments on leases 126,728) (15,670) (42,398)
Interest and fiscal agent fees paid \6)15) (3,898) (111,113)
Net cash prOVided by (used for) capItal
and related financmg actIVities (9,IIS,607j .')7'""6')' 257,808 (1,472,263) (11,205,424)
( ~,)~)
Cash flows from investing activities:
Interest on lllvestments 2l17,767 34,162 23.1J93 325,022
Change III fan value of Investmcnts (27..482) (7,852) (580) (4,n6) (390) (41,090)
Net cash proVided by (used lor) I11vestmg actlvltll:S 24U,2X5 26Jl0 22,513 (4,786) (390) 2113,932
Net Illcrease (decrease) in cash, cash eqUIvalents and mvcstmcnts (.U65.103) 4,192282 (60,513) 1)57.211 (l66,587) 457,290
Cash, cash equivalents and investments, Octuber I, 20()"? 23.445,537 I.U26.565 450,576 1,743,536 420,643 27,086,857
Cash, cash equivalents and investments, September 30, 20U8 I 18,SWA34 ! 5,2 1 !U;47 $ 390,063 $ 3,100,747 $ 254,U56 I 27,544,147
Current cash, cash eqUivalents and mvestml'llts I 18,lYl ::'44 I 5,U87,.l.11J ! 39U.()h3 $ 2,874,545 $ 254,056 26797,238
,
Current cash, cash eqUivalents and Investments - restm:tcd 3KlJ,IYU 13l.S17 226,202 746,909
Cash, cash eqUivalents and lllvestments, September 30, luOK ! ]X,580,434 $ 5,218,847 I 390,063 $ 3,10lJ,747 I 254,056 $ 27,544,147
See accompalrymg lIldependent auditors' reron (Conlinued)
12~
COLLIER COUNTY, I(LORIDA
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
NON MAJOR ENTERPRISE FUNDS
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Total
Emergency Collier NonmaJor
Solid Waste Medical Goodland Airport Area Enterpnse
DIsposal Services Water Authority 'l'ransit Funds
Operatmg Income (loss) I 6,409,313 $(14,394,797) $ (151,307) $ (1,361,337) $ (8,303,338) $ (17,801,466)
Adjustments to reconcIle operating income (loss) to
net cash prOVided by (used for) operatmg actiVItieS'
Depreciation expense 503,961 711,073 56,329 83],926 1,027,588 3,]30,877
Net changes In assets and liabilities'
Trade receivable (921,096) (30,740) (11,325) 19,831 6,780 (936,550)
Due from other funds 6 (]97) 596 (7,485) (7,080)
Due from other governments 566 566
Prepaid costs (50,]92) (50,]92)
Inventory 57,350 (55,542) 1,808
Accounts payable (]39,788) (49,683) 19,217 100,948 44,]27 (25,179)
Wages payable 15,721 92,566 4,303 63] ] ]3,221
Due to other funds (40,]6]1 57 692 (420) (39,832)
Due to other governments ]36 3,368 44 3,548
Due to individuals 405,846 405,846
Compensated absences 36,929 48,3]2 4,042 (810) 88,473
Refundable deposits (99,390) (7,722) (]07,] ]2)
Unearned revenue (6,233) (6,233)
Landfill post-closure liability (],149,949) (],149,949)
Total adjustments (1,793,63]) 1,184,958 68,281 892,193 ],070,411 ],422,212
Net cash prOVIded by (used for) operatmg activities $ 4,6]5,682 $ (]3,209,839) $ 183,026) $ (469,]44) $ (7,232,927) $ (]6,379,254)
Non-(ash investing, (apitlllllnd financing adivities:
The nonmajor enterprise funds expeflenced a non-cash Investing loss due to a change m the fair value ornon.cash
and cash eqUIvalents as follows'
Sol1d Waste DIsposal
Emergency MedICal Services
Goodland Water
Airport Authority
Colller Arca Transit
Total
$ 127,482)
(7,852)
(580)
(4,786)
(390)
$ (4],090)
There were non-cash contributions of$ 10,096,889 111 the Collier Area TraJlslt fund, as assets with a historical cost of
$10,163,338 and accumulated depreciation of$66,449 were transferred in from other funds In addition, assets
assets WIth a fair value of$488,5!W were purchased by the County for $48,857
See accompanying mdependent auditors' report
125
THIS PAGE INTENTIONALLY LEFT BLANK
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.
-- ----.~"^,~'~--'-',~--,-'"',~-',,,..~.~'.'._"~~."-'._--=-,-~."--~-"._~' .~ - "',~..,.',."
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COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2008
Sheri ft's
SeltC Self- Fleet
Insurance Insurance Management Total
ASSETS
Current assets:
Cash, cash equivalents and investments $33,211.256 $12,199,418 $ 761,440 $46,172,114
Receivables:
Trade, net 384,170 259,786 643,956
Due trom olher tllnds 100,000 18,495 118,495
Due from other governments 83,107 83,107
Deposils 512,946 512,946
Inventory 3,655 416,472 420,127
Total current assets 34,112,0)7 12,559,204 1,279,514 47,950,745
Noncurrent assets:
Capital assets:
Depreciable capital assets, net 279,355 14,109,169 14,388,524
Total noncurrent assets 279,355 14,109,169 14,388,524
T olal assets 34,391,382 12,559,204 15,388,683 62,339,269
LIABILITIES
Current liabilities:
Accounts payable 333,258 497,917 831,175
Wages payable 39,860 75,277 115,137
Due to other funds 255 255
Due to other governments 64 64
Self-insurance claims payable 3,458,207 2,094,000 5,552,207
Compensated absences 65,185 97,547 162,732
Total current liabilities 3,896,765 2,094,000 670,805 6,661,570
Noncurrent liabilities:
Self-insurance claims payable 4,733,793 4,733,793
Compensated absences 16,296 24,387 40,683
Net pension obligation 356, III 549,868 905,979
Total noncurrent liabilities 5, I 06,200 549,868 24,387 5,680,455
Total liabilities 9,002,965 2,643,868 695,192 12,342,025
NET ASSETS
Invested in capital assets, net of related debt 279,355 14,109,169 14,388,574
Unrestricted 25,109,062 9,915,336 584,322 35,608,720
Total net assets $ 25,388,417 $ 9,915,336 $ 14,693,491 $ 49,997,244
See accompanying independent auditors' report,
128
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Sheriffs
Self- Self- Fleet
Insurance Insurance Management Total
Operating revenues:
Charges for services $ 41,307,131 $ 21,090,320 $ 8,995, I 08 $ 71,392,559
Insurance proceeds 4,009,526 1,514 4,011,040
Miscellaneous 632,088 54,982 687,070
Total operating revenues 45,948,745 21,090,320 9,051,604 76,090,669
Operating expenses:
Personal services 1,072,494 1,981,091 3,053,585
Operating 38,370,716 16,548,096 6,826,543 61,745,355
Depreciation 17,817 349,448 367,265
Total operating expenses 39,461,027 16,548,096 9,157,082 65,166,205
Operating income (loss) 6,487,718 4,542,274 (105,478) 10,924,464
Non-operating revenues (expenses):
Interest income 3,145 198,405 201,550
Change in fair value of investments (50,729) (1,296) (52,025)
Gain (loss) on disposal of capital assets (30,635) 9,361 (21,274)
Total non-operating revenues (expenses) (78,219) 198,405 8,065 128,251
Income (loss) before contributions 6,409,499 4,740,629 (97,413) 11,052,715
Capital contributions 13,690,992 13,690,992
Change in net assets 6,409,499 4,740,629 13,593,579 24,743,707
Net assets - beginning 18,978,918 5,174,707 1,099,912 25,253,537
Net assets - ending $ 25,388,417 $ 9,915,336 $ 14,693,491 $ 49,997,244
See accompanying independent auditors' report.
12')
----~~_.~-_.-_,~_.~ ~._~""
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COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Sheriffs
Self.. Self. Fleet
Insurance Insurance Management Total
Cash flows from operating activities:
Cash received from other funds for services S 35,304,137 $21,000,000 $ 8,542,232 $ 64,846,369
Cash received from employees for services 6.636.665 6,636,665
Cash received from insurance 1,655,686 1,514 3,657,200
Cash received tram other governments for services 464,435 464,435
Cash received from retirees for services 779,625 490,320 1,269,945
Cash payments on behalfofre1irees (8119,079) (100,671 ) (1,109,750)
Cash payments for goods and services (39,822.611 ) ( 15,491,753) (7,075,974) (62,390,338)
Cash payments to employees ( 1,053,940) (1,949,380) (3,003,320)
Net cash providcd by (used for)
operating activities 4,690,483 5,697,896 ( 17,173) 10,371,206
Cash flows from capital and related
fi"ancin~ activities:
Proceeds Irom disposal of capital assets ]4,564 14,564
Payments for capital acquisitions (64,342) (255.308) (319,650)
Net cash used for capital and related
financing activities (64,342) (240,744) (305,086 )
Cash flows from investing activities:
Interest on investments 3.145 218,295 221,440
Change in fair value of investments (5IJ,729) (1,296) (52,025)
Net cash provided by (used tor) investing activities (47584) 218,295 (],296) 169,415
Net increase (decrease) in cash, cash equivalents
and investments 4,578557 5,916,]91 (259,213) 10,235,535
Cash, cash equi,"alents and in,"estments, October 1, 2007 28,632,699 6,283,227 1.020,653 35,936,579
Cash, cash cquh'alents and investments, September 30,2008 $ 33,211,256 $12,]99,418 $ 761,440 $ 46,172,114
See accompanying independent auditors' report. (Continued)
LJO
COLLIER COUNTY, FLORIDA
COMBINING STATEM};NT OF CASH FLOWS
INTERNAL SERVICE FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL VEAR ENDED SEPTEMBER 30, 2008
Sheriffs
Self- ScltC Fleet
Insurance Insurance Management Total
Operating income (loss) $ 6,487,718 $ 4,542,224 $ (105,478) $ 10,924,464
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation expense 17,817 349,448 367,265
Net changes in assets and liabilities:
Trade receivable (288,086) (33,196) (321,282)
Due from other funds 1,583 400,000 (9,635) 391,948
Due from other governments (33,789) (33,789)
Deposits (95,208) (95,208)
Inventory (1,295) (44,282) (45,577)
Accounts payable (267,290) (205,212) (472,502)
Wages payable 4,003 16,780 20,783
Due to other funds (15,421) (15,421)
Due to other governments 64 64
Self-insurance claims payable (1,524,000) 239,000 (1,285,000)
Compensated absences 14,551 14,931 29,482
Net pension obligation 356,111 549,868 905,979
Total adjustments (1,797,235) 1,155,672 88,305 (553,258)
Net cash provided by (used for)
operating 3l.:tivities $ 4,690,483 $ 5,697,896 $ (17,173) $ 10,371,206
Non-cash investing, capital and financing activities:
The internal service funds experienced a non~cash investing loss due to a change in the fair value of non-cash
and cash equivalents as follows:
$
(50,729)
(1,296)
(52,025)
Self-Insurance
Fleet Management
Total
$
There were non-cash contributions of$13,690,992 in the Fleet Management fund, as assets with a historical cost
of $13,792,071 and accumulated depreciation of $1 01 ,079 were transferred in from olher funds,
See accompanying independent auditors' repor!,
131
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THIS PAGE INTENTIONALLY LEFT BLANK
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.
_..... '."-<--,-~-^,~,_"-_,,_------,,
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COLLIER COC'iTY, FLORIIlA
COMBINING STATEMENT OF FlIll'CIARY ASSETS AND LIABILITIES
AGENCY FlINDS
SEPTEMBER 30, 2008
ASSETS
Clerk
ol'Courts
Agency Fund
Shenff
Agency Fund
Tax
Collector
Agency Fund
Deposits
---Agency Fund
Pille Ridge
and Naples
Production Park
~gency Fund
Total
Cash, cash equivalents and investments $ 17,848,166 $ 426,505 $ 4,927,906 $ 3,569,302 $ 5,906,927 $ 32,678,806
Receivables:
Interest 31,275 31,275
Other 1,885 5,777 34,793 42,455
T oral a~scts $ 17,848,166 $ 428,390 $ 4,933,683 $ 3,569,302 $ 5,972,995 $ 32,752,536
LIABILITIES
Due 10 other governments $ ],435,741 $ 7iU96 $ .1,469,368 $ $ $ 4,975,705
Due to individuals 357,794 1,464,315 1,822, I 09
Refundable depOSIts 16,412,425 3,569,302 19,981,727
Due to speCial assessment holders 5,972,995 5,972,995
Totalliabihtlcs $ 17,848,166 $ 42~,390 S 4,933,683 $ 3,569,302 $ 5,972,995 $ 32,752,536
See accompanying independent audi1ors. report
134
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Balant:l;: Balance
October 1 Additions Deductions ~tember 30
Clerk of Courts Ae:encv Fund
Assets:
Cash, cash equivalents and investments $17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Total assets $ 1 7,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Liabilities:
Due to other governments
Refundable deposits
Total liabilities
$ 1,004,350
16,277,706
$17,282,056
$ 10,964,655
243,365,557
$ 254,330,212
$ 10,533,264
243,230,838
$ 253,764,102
$ 1,435,741
16,412,425
$ 17,848,166
Sheriff A~encv Fund
Assets:
Cash, cash equivalents and investments $ 396,490 $ 5,638,970 $ 5,608,955 $ 426,505
Receivable:
Other 133 1,885 133 1,885
Total assets $ 396,623 $ 5,640,855 $ 5,609,088 $ 428,390
Liabilities:
Due to other governments $ 59,132 $ 364,023 $ 352,559 $ 70,596
Due to individuals 337,491 618,463 598,160 357,794
Total liabilities $ 396,623 $ 982,486 $ 950,719 $ 428,390
Tax Collector A2encv Fund
Assets:
Cash, cash equivalents and investments $ 4,303,742 $1,019,312,011 $ 1,018,687,847 $ 4,927,906
Receivable:
Interest 10,811 10,811
Other 11,101 2,234,409 2,239,733 5,777
Total assets $ 4,325,654 $1,021,546,420 $ 1,020,938,391 $ 4,933,683
Liabilities:
Due to other governments $ 3,202,302 $ 989,848,360 $ 989,581,294 $ 3,469,368
Due to individuals 1,123,352 31,628,385 31,287,422 1,464,315
Total liabilities $ 4,325,654 $1,021,476,745 $ 1,020,868,716 $ 4,933,683
!!glosits Ae;encv Fund
Assets:
Cash, cash equivalents and investments $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Total assets $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Liabilities:
Refundable deposits $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Total liabilities $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
(Continued)
135
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COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Balanc-:
October I
Additions
Deductions
Balance
~(embcr 30
Pine Ridze and Naples Production Park Aeency Fund
Assets:
Cash, cash equivalents and investments $ 4,594,257 $ 1,339,651 $ 26,981 $ 5,906,927
Receivables:
Interest 57,550 31,275 57,550 31,275
Other 98,539 34,793 98,539 34,793
Total assets $ 4,750,346 $ 1,405,719 $ 183,070 $ 5,972,995
I,iabilities:
Due to special assessment holders $ 4,750,346 $ 1,405,719 $ 183,070 $ 5,972,995
Total liabilities $ 4,750,346 $ 1,405,719 $ 183,070 $ 5,972,995
Total - All Aeency Funds
Assets:
Cash, cash equivalents and investments
Receivables:
In1eres1
Other
Total assets
$31,719,081 $1,281,567,725 $ 1,280,606,248 $ 32,678,806
68,361 31,275 57,550 31,275
109,773 2,271,087 2,338,272 42,455
$31,897,215 $1,283,870,087 $ 1,283,002,070 $ 32,752,536
Liabilities:
Due \0 other governments
Due to individuals
Refundable deposits
Due to special assessment holders
Total liabilities
$ 4,265,784
1,460,843
21,420,242
4,750,346
$31,897,215
$1.001,177,038
32,246,848
244.310.553
1,405,719
$1,279,140,158
$ 1,000,467,117
31,885,582
245,749,068
183,070
$ 1,278,284,837
$ 4,975,705
1,822,109
19,981,727
5,972,995
$ 32,752,536
See accompanymg independent auditors' report.
136
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.
-.. ._.,_...~"._."-~~._,..--_..'._....,,...--,. ,",
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COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Collier County
Housing
Finance
Authority
Collier County
Health
Facilities
Authority
Collier County
Industrial
Development
Authority
Collier County
Educational
Facilities
Authority
Totals
ASSETS
Cash, cash equivalents and investments $
313,716 $
165,781 $
3,655 $
18,548 $ 501,700
Total Assets $
313,716 $
165,781 $
3,655 $
18,548 $ 501,700
NET ASSETS
Net assets - unrestricted
$
313,716 $
165,781 $
3,655 $
18,548 $ 501,700
Total Net Assets
$
313,716 $
165,781 $
3,655 $
18,548 $ 50 I ,700
See accompanying independent auditors' report,
138
COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
FUNCTIONS/PROGRAMS
Net (Expense)
Revenue and Changes
Program Revenues in Net Assets
Fees, Fines and
Charges for Governmental
Expenses Services Activities
$ 14,195 $ 8,383 $ (5,812)
32,500 32,500
122,500 93,500 (29,000)
16,788 18,260 1,472
$ 153,483 $ 152,643 (840)
Collier County Industrial Development Authority
Collier County Health Facilities Authority
Collier County Housing Finance Authority
Collier County Educational Facilities Authority
Total
General revenues:
Interest income
Total general revenues
Change in net assets
Net assets ~ beginning
Net assets - ending
$
3,641
3,641
2,801
498,899
501,700
See accompanying independent auditor's report,
13~
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THIS PAGE INTENTIONALLY LEFT BLANK
Statistical Section
(Unaudited)
Statistical schedules differ from financial statements because 1hey 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 1he governmenl's
financial performance and wellbeing have changed over time.
Ne1 assets by componen1
Change in net assets
Governmental activities tax revenues by source
Fund balances of governmental funds
Changes in fund balance 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 value of taxable property
Property Tax Rates - All direct and overlapping governments
Principal Taxpayers County-wide
Property Tax levies and collections
]48
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 ou1standing debt by type
Ratios of general bonded debt outstanding
Legal debt margin information
Direct and overlapping governmental activities debt
Pledged-revenue coverage
152
153
154
154
155
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indica10rs to help the rear understand 1he
environment wi1hin which the County's financial aC1ivities 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 i1 performs.
Full-time equivalent County employees by function
Operating indicators by function
Capital Asset statistics by function/program
158
159
160
Sources: Unless olhenvise noted. the informatIOn In these schedules is derlvedjrom the comprehensive annuaifinanciai repay/sf or the relevant
year, The County implemented GASB 34for jiscal year 2002. Schedules presenting government-wide information include informarion beginning
in fhalflscal year.
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COLLIER COLINTY, FLOH.IDA
~ET ASSETS BY COMPO!';ENT
LAST SEVE!,; FISCAL VEARS (I)
(accrual basis of accouTlllng)
(amounts expressed in thousands)
( unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Governmental Al'tivities:
Invested III capital assets, net of rdated debt $ L022.00] \ 871.389 $ 672,186 $ 57U,512 $ 500,549 $ 444,703 $ 377,404
Restricted 295.012 244,746 205,403 14g,587 142,306 103,280 83,292
Unrestricted 199031 317,821 318,092 275,438 175,297 104,170 96,360
Total governmental activities ne\ assets \ 1.516,044 $ 1433956 $ 1195,681 $ 994,537 $ 818,152 $ 652,153 $ 557,056
Business-type Activities:
Invested in capital assets, Tlet of related debt $ 651U\65 $ 63l.4!}l $ 596,907 $ 543,017 $ 519,478 $ 479,730 $ 401,329
Restncted ]0,165 )0.746 28.087 21,243 11.642 12,045 9,968
Cnrestncted 113.761 83,u38 :7,206 90,608 77,563 80,307 132,908
Total business-type acllvlIies net assets $ 802,791 $ 745.275 $ 702,200 $ 654,868 $ 608,683 $ 572,082 $ 544,205
Primary Govcrnment:
Invested III capital assets, Tlet of related debt $ 1,(80)!66 $ 1,502,81W $ 1,26Y,OY3 $ 1,11J,529 $ 1,020,027 $ 924,433 $ 778,733
Restrictcd 325,]77 275.492 233.490 169830 153,948 ]]5.325 93,260
[}nrestncted 312,792 400,859 395,2910: 366,046 252,860 Ig4,477 229,26S
Tota] prunary government net assets $ 2.3 1~,835 $ 2,179,231 $ LS97,S81 $ 1,649,405 $ 1,426,835 $ 1,224,235 11,101,261
(I) Only seven tlscal years aTe avmlable due to implementatIOn ofGASB 34 It! hscal year 2002,
142
COLLIER COUNTY, FLORIDA
CHANGE IN NET ASSETS
LAST SEVEN FISCAL YEARS (1)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Expenses
Governmental activities:
General government $ 112,720 $ 110,814 $ 100,219 $ 85,182 $ 81,150 $ 67,885 $ 66,635
Public safety 183,288 182,821 187,945 140,761 133,930 114,207 103,718
Transportation 65,980 54,198 46,266 43,714 33,970 35,255 28,718
Culture and recreation 43,435 41,595 34,348 30,329 25,405 25,640 31,809
Other activities 49,135 44,500 35,838 31,713 24,110 24,528 29,288
Interest on long.term debt 21,446 21,779 25,841 14,507 8,566 5,697 3,109
Total governmental activities expenses 476,004 455,707 430,457 346,206 307,131 273,212 263,277
Business-type activities:
Water and Sewer 85,SIJ3 89,617 76,307 63,759 60,590 57,223 51,547
Solid Waste 30,024 32,033 32,920 24,420 23,036 20,317 21,210
Airport Authority 5,082 4,296 3,978 3,625 3,346 3,027 3,020
Mass Transit 9,419 7,761 6,000
Emergency Medical Services 30,160 27,305 22,541 20,887 19,114 18,279 14,653
Total business.type activities expenses 160,188 161,012 141,746 112,691 106,086 98,846 90,430
lata] primary government expenses $ 636,192 $ 616,719 $ 572,203 $ 458,897 $ 413,217 $ 372,058 $ 353,707
Program Revenues
Governmental activities:
Charges for services:
General government $ 36,468 $ 46,380 $ 47,178 $ 45,433 $ 37,967 $ 26,188 $ 20,418
Public safely 12,545 14,293 20,547 18,392 15,127 16,811 15,205
Transportation 3,936 1,902 1,733 667 959 3,423 639
Culture and recreation 8,429 7,494 5,878 5,050 4,416 4,151 3,637
Oth~r activities 7,541 2,395 2,938 2,869 2,114 2,556 3,268
Operating Grants and Contributions 20,202 27,309 43,062 15,151 19,759 10,008 12,531
Capital Grants and Contributions 52,303 122,327 99,068 104,711 97,370 55,979 35,332
Total govenunental activities program revenues 141,424 222, 100 220,404 192,273 177,712 119,116 91,030
Business-type activities:
Charges for servil,;es;
Water and Sewer 100,030 92,091 81,088 73,686 65,152 58,955 50,455
Solid Waste 36,495 33,864 33,713 23,661 21,938 20,698 21,121
Airport Authorily 3,547 2,860 2,459 2,288 1,878 1,580 1,425
Mass Transit 1,074 1,153 814
Emergency Medical Services 16,167 14,823 14,326 12,855 10,904 7,912 6,783
Operating Grants and Contributions 4)93 2,657 3,138 165 31 59 116
Capital Grants and Contributions 23,333 32,647 36,273 28,260 32,040 26,325 31,458
Total business-type activities program revenues 185,039 180,095 171,811 140,915 131,943 115,529 111,358
Total primary government program revenues 326,463 402,195 392,215 333,188 309,655 234,645 202,388
Net (expense)/revcnue:
Governmental activities (334,580) (233,607) (210,053 ) (153,933) (129,419) (154,096) ( 172,247)
Business-type activities 24,851 19,083 30,065 28,224 25,857 16,683 20,928
Total primary government net expense $ (309,729) $ (214,524) $ (179,988) $ (125,709) $ ( 103,562) $ (137,413) $ (151,319)
143
COLLIER COUNTY, FLORIDA
CHANGE IN NET ASSKrS
LAST SEVEN FISCAL YEARS (CONTINUED)
(accrual basis of accllunting)
(amounts expressed ill thousanus)
(unaudited)
Fisl:ul Year
2008 2007 2006 2005 2004 2003 2002
General Revenues and Other Changes
in Net Assets
Governmental Activities:
Taxes
Property taxes $ 327.245 $ 345,054 $ 293.240 $ 237,452 $ 213.353 $ 174,291 $ 147,753
Cias taxes 18,860 19,598 20,028 20,127 19,887 17,731 17,333
Sales taxes 30.004 32,568 34.671 32,949 31.323 27,846 26,611
Tourist taxes 14.796 14.228 13,629 10.484 9,720 8,377 8,184
Other taxes 4.051 8.754 9.142 7.089 5.796 5,604 4,893
Slate revenue sharing 8.976 9.652 9,410 8,555 7.973 7,190 6,81 I
Interest income 34.533 43.109 38,455 16.732 12,216 10,693 16.253
Change in fair value of investments (803) 5.822 (2.067) (2.780) (5,813) 476 (2.111)
Miscellam:ous 10,642 8.223 \0.261 10.671 8,491 3,525 6,409
Special item - bond expense 13.288)
Transfers, net (28,348) ( 15,126) (13,229) (10,584) (7,529) (6,540) (15,703)
Total govenullenlal activities 416,668 471,882 413,540 330,695 295,417 249,193 216,433
Business-type Activities:
Interest income ,'i.LJ18 6.907 4,139 5,610 4.348 3,903 9,288
Change in I':lir v31uc of investments (212) 1.339 (324) (463) ( 1,417) 154 (1,415)
Miscellam:ous 1'7 620 285 597 799
Transfers, nd 28.348 15,126 13,229 10.584 7,529 6,540 15,703
l'ota1 business-type activities 34,141 23,992 17,044 15,73 I 10,745 11,194 24,375
Total primary government $ 450,809 $ 495,874 $ 430,584 $ 346,426 $ 306.162 $ 260,387 $ 240,808
Change in Net Assets
Govemmental activities $ 82,1188 $ 238.275 $ 203,487 S 176.762 $ 165,998 $ 95.097 $ 44,186
"
Husiness-tYPl: activities 58,992 43,075 47,109 43.955 36,602 27,877 45,303
Total primary government $ 141,080 $ 281.350 $ 250,596 $ 220,717 $ 202,600 $ 122,974 $ 89,489
(I) Only seven fiscal years arc available due to implt:mcntation of (;ASH 34 111 fiscal year 2002,
144
COLLIER COUNTY, FLORIDA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Fiscal
Year
Property
Tax
Gas
Tax
Sales
Tax
Tourist
Tax
Other
Taxes
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
145
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COLLIER COUNTY, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(modified accrual basis of accounting)
~
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
General fund
Reserved $ 6.602 $ 3,706 $ 963 $ 363 $ 468 $ 894 $ 980
Unreserved 61,953 77.619 65,938 58,891 52,836 40.537 27,812
Total general tund $ 68,555 $ 81.325 $ 66,901 $ 59,254 $ 53,304 $ 41,431 $ 28,792
All other governmental funds
Reserved $ 142,728 $ 294,512 $ 197.303 $ 212,521 $ 131,531 $ 79.643 $ 33,547
Unreserved, reported in:
Special revenue funds 122,043 118,150 112,875 105,721 72,943 48,558 57,317
Debt service funds 1,951 2,621 5,634 3,891 4,389 4,405 4,653
Capital projects funds 160,736 107,888 256.348 125,476 18,252 76,513 23,923
Total all other governmental funds $ 427,458 $ 523,171 $ 572,160 $ 447,609 $ 227,115 $ 209,119 $ 119,440
146
COLLIER COUNTY, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expn:ssed in thousands)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Revenues:
Taxes $ 357,656 $ 380,983 $ 327,605 $ 268,536 $ 242,562 $ 200,398 $ ]72,99]
Licenses and permits J7,373 15,537 23,630 21,227 J8,07] 13,377 12,962
Intergovenunental 77,452 9],186 113,128 74,537 71,554 64,352 57,485
Charges for services 40,699 46,127 43,083 41,45] ] 1,383 27,444 22,082
Fines and forfeItures 3,786 4,081 4,835 4,407 6,848 6,854 6,112
Interest income 34,331 42,71 ] 38,174 16,658 12,146 10,648 16,137
Change ill fair value of investments (751 ) 5,551 (1,992) (2,683) (5,541) 476 (1,995)
Impact fees 36,679 84,792 70,202 38,766 ]5,653 24,841 34,065
Special assessments 2,942 3,240 1,264 3,680 2,643 2,390 2,516
Miscellaneous 10,667 7,337 9,074 9,922 8,490 7,713 5,607
Total revenues 580,834 683,545 629,003 476,501 403,809 358,493 327,962
Expenditures:
Current:
General government 96,898 96,483 83,821 7],992 67,831 65,094 61,137
Public safety 175,743 168,602 177,933 135,1 ]0 124,276 I J6,572 104,234
I'hysical environment 9,3]4 ] 1,760 9,799 11,644 5,958 9,528 12,056
"!'ransportation 48,253 39,105 33,735 32,911 24,273 28,116 20,295
Economic environment 13,479 11,690 9,333 5,981 6,439 6,945 6,632
Human servIces 12855 12,237 11,819 11,8]0 9,576 9,72] 8,343
,
Culture and recreation 36,456 35,325 29,172 26,238 23,]45 22,449 22,543
Debt service:
Principal 43,080 36,]44 20,977 14,374 14,247 8,585 29,243
Interest and other fiscal charges 21,981 22,468 22,569 14,304 ]0,049 6,925 4,856
Capital oUllay 285,809 290,581 255,569 174,640 170,145 78,20J 96,952
Total expendl1ures 743,&68 724,395 654,727 501,004 455,939 352,136 366,291
Excess (deficit) of revenues
over (under) expenditures (163,034) (40,&50) (25,724) (24,503) (52,130) 6,357 (38,329)
Other financing sources (uses):
Bonds issued 6,215 296,270 49,360 102,125 47,430
Premiums on bonds Issued 3] J6,785 4,703
Payment to rdunding escrow (4,500) (60,027) (5,079) (3,657)
Capital leases 1,048 16 28
Loans issued 69)91 22,390 40,466 8,000 45,245 8,250
Sale of capital assets 245 365 940
Insurance prOl.:ceds 208 885 792
Transfers in 144.824 166,113 154,580 97,632 84,50& 57,020 37,685
Transfers out (163,075) (181,471) (168,006) (107,728) (92,037) (64,227) (53,517)
Total other t1nancing sources (uses) 57..839 3,782 29,820 250,948 81,997 95.964 39,876
Special item - hond expenditure (3.288)
Net change in fund balances $ (]08,483) $ (37,068) $ 4,096 $ 226,445 $ 29,867 $ 102)21 $ 1,547
Debt service as a percentage of noncapital
expenditures 1420% 135]% 10,91'% 8,79% 8,50% 566% 12.66%
147
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COLLIER COUNTY, FLORIDA
ASSESSED V ALlJE AND ESTIMATED ACTUAL VALVE OF TAXABLE PROPERTY
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Total Estimated Assessed
Fiscal Year Centrally Less: Total 'faxable Direct Actual Value' 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 $ 1,651,435 $ 110 $ 4.345,843 $ 33,395,00] 130569 $ 37,740,844 100%
2003 42,635,220 1,770,370 113 4,915,279 39,490,424 12,7941 44.405,7U3 100%
20U4 49,712,793 1,802,265 ] 17 5.529,447 45,985,728 12.6552 51,515,175 100%
20U5 55.37U,248 1,820,777 127 5,928,339 51,262,813 12.34U2 57,191,152 100%
2006 66,375,040 1.956,646 143 6,890,007 61,441,822 12.23U3 68,331,829 100%
2007 82,909,061 2,156,726 202 8,023,791 77 ,042,198 llAnU 85,065,989 100%
2008 88,819.491 2.321,048 226 8.575,874 82.564.891 IU,7l7l 91,140,765 100%
Property is assessed as of January I, and taxes based on these assessments are levied and become due on the following November I.
Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding
calendar year,
lThe basis of assessed value required by the stale is 100% of actual value.
Source: Property Appraiser Recapitulation Report
14H
COLLIER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
LAST SEVEN FISCAL YEARS
( unaudited)
Collier County
Other
Fiscal
Year
General
Fund
Special
Revenue
Funds
Debt
Service
Funds
Total
County
School
District
Independent
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
5.3574
1.2792
10.7430
Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January I and taxes
based on those assessments are levied according to the tax rate in effect that tax year and become due on
November I. 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
140
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COLLIER COUNTY, FLORIDA
PRINCIPAL TAXPAYERS COUNTY-WIDE
2008 TAX ROLL
(amounts expressed in thousands)
(unaudited)
2UU8 1999
Property Pen:t:nt of Property Percent of
Taxes Total Taxes Total
Owner/Taxpayer Levied Rank faxes Levied Levied Rank Taxes Levied
Florida Power & Light Company S 2A17,yg7 (l.27O/0 $ 1.715.U62 0.50%
HHR Naples LLe 1.665,595 2 U,II)% 0,00%
Embarq Corporation 1,29Y,02H ] 0.15% 1,589,067 2 0.47%
City National Bank of Miami 983.659 4 0,11%1 992,04U 5 0.29\10
CC~Naplcs, Inc. 953,906 5 0, 11~'o 0.00%
Collier liMA. lne. 952,328 (, (),ll% 0.00%
Coastland Center Joint Venture 923.227 0 0,100/0 1.114,788 3 0.33%
,
Naples HMA Inc. 92U.995 8 (),]()U.-()
rhe Moorings, Inc. 765.781 9 O,U9(~/O
Wal.Mart Stores East LP 68U 599 10 O,Oso/Q
.
liMe BN IT!) Partnership 0,00% 1,031,27U 4 0.30%
WC! Communtics. Ine. {),OOU'o 616.229 6 0.18%
Collier lk'vdopment Corporatioll ().O(jl)/O 596.246 7 0.17%
Man:o Island Utilities ().l)O~.-;) 556,778 8 0.16%
Calumd Florida, Inc. ().oooo 495.604 9 0, 15~.-o
Lutgert fR, Raymond L 0.00% 486,529 10 0.14%
Total S 11,563,107 1.31\}O $ 9,193,614 2,70%
~
Total Property Taxes Levied
$ ~84,859,641
$ 340,819,438
Amounts for 1axpay.:rs \vith similar mimes havc not been cumbined,
Suuree: Properly Appraiser's 1axpayer listing in ordcr of taxes lev'kd,
Properly Appraiser Recapitulation Report.
Emban.j \vas Sprint in 1998
11Ci
COLLIER COUNTY, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST SEVEN 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
~tember 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy
2002 $ 157,744 $ 146,033 92,6% $ 178 $ 146,2] 1 92.69%
2003 185,633 174,116 93,8% 136 174,252 93.87%
2004 225,773 213,009 94.3% 325 213,334 94.49%
2005 251,772 237,184 94.2% 240 237,424 94.30%
2006 307,068 293,129 95.5% 98 293,227 95.49%
2007 362,568 344,945 95,1% 109 345,054 95.]7%
2008 343,906 325,722 94,7% 1,522 327,244 95.16%
Source: Tax Collector Annual Report
151
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-
COLLIER COUNTY, FLORIDA
RA nos OF OUTSTANDING DEBT BY TYPE
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Governmental Activities Business-type Activities
General I ,oans and Total Percentage
Fiscal Obliga1ion Revenue Luans Capital R('venue Noles Capital Primary of Personal Per
Year Bonds Bonds Payable Leases Bonds Payable Leases Government Incomt: 1 C . 1
aplta
2002 $ 795 $ S5,IS5 S 9,256 $ 791 S ?S.725 S 40.369 $ 327 $ 215,44S 2,11% 848
2003 176,775 S,486 279 71.505 ',33 ' 165 312,545 2,86% 1.179
)~ ,. )
2004 20S,9S0 51,649 109 66,S60 74.545 7J 402,215 3.47% 1,45S
2005 32,S15 444,375 14.030 S2 62,515 113.067 25 666 909 5,61% 2,33 I
,
2006 29,530 429,735 51,546 1.029 5S,060 124.629 694.529 5.46% 2,341
2007 25,S15 409,620 57.331 S97 163.630 106,932 6S 764,293 5.02% 2,483
200S 27,830 394,145 103.461 752 15S,S85 1(13.903 618 ?S9,594 4.39% 2,521
ISee the Schedule ufDemographic and Econumic Slatistics for personal income and population data.
152
COLLIER COUNTY, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST SEVEN FISCAL YEARS
( unaudited)
Percentage of
Estimated
General Less: Amounts Actual Taxable
Fiscal Obligation Available in Debt Value10f Per
Year Bonds Service Fund Total Property Capital
2002 $ 795,000 $ 76,461 $ 718,539 0.002% 3
2003
2004
2005 32,815,000 21,935 32,793,065 0,064% 107
2006 29,530,000 22,576 29,507,424 0,048% 90
2007 25,815,000 4,312 25,810,688 0.034% 77
2008 27,830,000 374,496 27,455,504 0.033% 82
ISee 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.
153
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COLLIER COUNTY, FLORIDA
LEGAL DEBT MARGIN INFORMATION
AS OF SEPTEMBER 30, 2008
( 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, 2008
I unaudited)
Governmental Entity
Net Debt
Outstanding (1)
Percentage
Applicable to This
Governmental Unit
Direct Debt:
Debt repaid with property taxes: County
$ 38,795,425
100.00%
Overlal2Ping:
Overlapping debt for governmental entities within Collier COllnty is not presented
(1) Excludes amounts available in Debt Service Funds for payment of interest and principal.
154
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COLLIER COUNTY, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST SEVEN FISCAL YEARS
(amoun1s expressed in thousands)
(unaudited)
Population( I)
Personal
Income(2)
Per Capita
Personal
Income(2)
Median
Age(3)
School
Enrollment(4)
Unemployment
Rate(5)
Fiscal
Year
2002 264,475 $ 10,197,520 $ 40,121 40.5 37,110 4.2%
2003 284,918 10,940,352 41,)69 44 ] 38,] 96 4.7%
2004 292,466 1] ,601,373 42,050 45.2 40,416 3.9%
2005 306,186 ] 1,878,015 4 ],5] 3 45.6 41,232 3.6%
2006 326,658 12,7]1,343 42,846 44.7 43,000 2.7%
2007 333,858 15,"36,905 49,492 44.5 42,722 3.5%
2008 332,854 17,990,169 57,446 44.8 42,7] 1 5.5%
Sources: (I) www.tred.labormarketinfo.com
(2) University ofF]orida, Bureau of Economic and Business Research,
Per Capita and Total Personal Income revised by Department of Commerce, 2006
(3) Florida Statistical Abstract(Table 1.51) 2007
(4) Collier County School Board, based on l,dl time equivalen1 enrollment
(5) www.fred.labormarketinfo.com
156
COLLIER COUNTY, FLORIDA
PRINCIPAL EMPLOYERS
(Unaudited)
2008 1999
Percent of Percent of
Total County Total County
Q!>ployer Employees Rank Employment Employees Rank Employment
Collier County Public Schools 6,685 1 5.46% 3,956 1 4,75%
Nell Hcalthcare System 3,007 2 2.46% 2,752 2 3.30%
Collier County Government 2,984 3 2.44% 2,602 3 3.12%
Publix Supermarkets 2,214 4 1.81% 2,155 4 2.59%
Wal-Mart 1,547 5 1.26% 390 10 0.47%
Collier County Sheriffs Office 1,273 6 1.04% 953 5 1.14%
Marriott 743 7 0,61% 862 6 1.03%
Fif\h Third Bank 733 8 0.60% 0.00%
Naples Grande Resort and Club 605 9 0.49% 612 9 0,73%
Barron Collier Partnership 600 10 0.49% 340 0.41%
Winn Dixie Stores, Inc. 779 7 0.93%
Ritz Carlton Hotel 776 8 0,93%
Other employers 101,978 83.34% 67,177 80.59%
Total 122,369 100.00% 83,354 100.00%
Sources: Economic Development Coundl Collier County, 2007
1999 Collier County Adopted Budget
Florida Department of Labor & Employment; Bureau or Labor Market Information ES.202 report for 1999 and 2008,
157
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COLLIER COUNTY, FLORIDA
FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION
LAST FIVE FISCAL YEARS*
( unaudited)
Fiscal Year
Function:
General government 1.127 1300 1,264 1,225 1,126
Public safety 1,118 Lll7 1,144 1,000 987
Physical environment 65 73 67 57 58
Transportation 754 268 244 265 253
Economic environment Y' 18 16 ] 5 15
--
Human services 47 52 -, 55 48
)~
Cul1ure and recreation 335 397 389 337 335
Water and Sewer 309 336 312 297 288
Solid Was1e 72 23 27 76 23
Airport Authority 14 15 13 13 14
Emergency Medical Services 168 188 167 158 161
To1al 3,481 3,787 3,696 3,448 3,308
2008
2006
2005
2007
* Information prior to fiscal year 2004 is no1 available.
15H
2004
COLLIER COUNTY, FLORIDA
OPERA TlNG INDICA TORS BY FUNCTION
LAST SEVEN FISCAL YEARS
(unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Function:
Police:
Physical arrests 20,226 22,1l28 25,657 17,214 14,788 13,506 11,423
Parking violations 843 1,753 2,124 1,372 2,115 1,468 1,678
Traffic violations 49,831 64,372 58,242 56,056 50.883 39,869 39,342
Fire:
Fires reported 586 590 654 353 262 153 153
Emergency responses 1,213 1,148 1,539 1,652 1,056 868 668
Number of calls answered 1,840 1,779 2,235 2,049 1.360 1,072 858
'rransportation:
Collier Area Transit ridership 1,166,358 1,180,147 1,052,536 95],601 627,824 475,820 324.037
Street resurfacing (lane miles) 52 44 47 22 53 70 81
Culture and recreation:
Beach parking stickers issued 80,542 76,344 54,074 57,875 42,000 30,000 20,000
Library circulation 3,000,394 2,916,523 2,722,539 2,853,926 2,877 ,230 2,788,262 2,485,3]4
Water:
New connections 553 1.593 1.897 2,597 2,910 1,592 2,923
Wastewater:
Average daily sewage treatment 15,558,000 15,583,055 17,3]0,468 17,095,890 16,526,027 15,6]6,438 15,342,466
(thousands of gallons)
I See the Schedule of Demographic and Economic Statistics on page 133 for personal income and population data.
159
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COLLIER COllNTY, FLORIDA
CAPITAL ASSET STATISTICS BY FI;NCTlON
LAST SEVEN FISCAL VEARS
I unaudIted)
Fiscal Year
200S 2007 2006 2005 2004 2003 2002
Function:
Public Safety
Policl: StHtiohs 7 " 7 " 7 1 7
, ,
Patrol Units 275 275 272 260 25] 256 257
Fire'
Fife stations , 2 2 2 2 7 2
-
Highways and streets,
Streets (miles) 1184 1.147 1147 ],149 1,121 1,210 1.463
Streetlights 3.767 3,987 3,620 3,327 ]075 2,758 2,378
Traffic signals 224 216 20(} 198 196 193 181
Culture <lnd recreation:
Parks acreage 1.440 1,436 1,527 1.486 1,396 1,549 1,546
Parks 56 55 47 47 46 46 44
S\vlInming Pools 1 1 1 ] 2 2 2
Tenllls Courts 45 45 4" 43 43 43 43
Community Centers 8 8 8 1 6 6 6
Libraries 'J " " " 9 9 9
Number of volumes III libraries 647.484 76lJ)17 651.592 556,737 583,684 539,887 456,233
WalcI
Number of water and sewer <.:ustomcrs 51.136 'ill ~.r7 57.664 55.767 53,170 50,260 48,668
,. ,~)
\Vater mains (miles) 87U S6U 682 685 668 646 639
f\1axlOlllm daily capacity {per LUOO gallons) JU.Y56,261 36,[ 16.725 34,673 OOU 31.940, []8 31,342,779 34,243,600 31,902.378
\,\' astewater,
Sanitary sewers (miles) 1.053 871 798 802 784 763 755
Primary and Secondary dramagc faCIlities 303 303 3()3 311 311 311 311
16U
.
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,
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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 for Collier County, Florida (the County) as of and for the
year ended September 30, 2008, which collectively comprise the County's basic financial
statements and have issued our report thereon dated February 26, 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
Cornptroller 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 financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control over financial reporting, Accordingly, we do not
express an opinion on the effectiveness of the COlmty's internal control over financial reporting,
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over financial reporting that might be significant deficiencies or material
weaknesses, However, as discussed below, we identified certain deficiencies in internal control
over financial reporting that we consider to be significant deficiencies,
A control deficiency 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 significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the
entity's internal contro\. We consider the deficiency described in the accompanying schedule of
findings and questioned costs as item 2008-0 to be a significant deficiency in internal control
over financial reporting,
0902-1032557
163
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11111 au ERNST & YOUNG
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the entity's internal control. Our consideration of internal
control over financial reporting was for the limited purpose described in the first paragraph of
this section and would not necessarily identity all deficiencies in internal control that might be
significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses, However, we do not believe that
the significant deficiency described above is a material weakness,
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's 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 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, The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards,
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, 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,
of
February 26, 2009
U\)02-1032557
164
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II au ERNST & YOUNG
Ernst & YounQ LLP
lOO ~Jorihcd')i I'hircl I'<V('_'rIU('
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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 OMB Circular A-133, Section 215,97, Florida Statutes, and
Chapter 10,550, Rules of the Auditor General
Members of the Board of Co un tv 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 Executive Office
of the Governor's State Projects Compliance Supplement, that are applicable to each of its major
federal programs and state projects for the year ended September 30, 2008, 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 Standards, issued by the Comptroller General of the United States; OMB Circular
A-133, Audits of States, Local Governments, and Non-Profit Organizations; Section 215,97,
Florida Statutes (Section 215,97); and Chapter 10,550, Rules of the Auditor General (Chapter
10,550), State of Florida, Those standards, OMB 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 provide a legal
determination of the County's compliance with those requirements,
0902-1032557
165
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1I11111111I1111 au ERNST & YOUNG
As described in item 2008-1 in the accompanying schedule of findings and questioned costs, the
County did not comply with requirements regarding allowable costs that are applicable to its
Community Development Block Grant (CDBG) Program and Home Investment Partnerships
Program (HOME) Program, As described in item 2008-1 and 2008-5 in the accompanying
schedule of findings and questioned costs, the 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 2008-2 in the accompanying schedule
of findings and questioned costs, the County did not comply with requirements regarding
reporting that are applicable to its State Criminal Alien Assistance Program (SCAAP),
Compliance with such requirements is necessary, 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, 2008, The
results of our auditing procedures also disclosed an instance of noncompliance with those
requirements that is required to be reported in accordance with OMB Circular A-133,
Section 215,97, or Chapter 10,550, and which is described in the accompanying schedule of
findings and questioned costs as item 2008- 3,
Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal
control over compliance with the requirements or 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 requirements that could have a
direct and material effect on a major federal program or state project in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance, but not for the
purpose of expressing an opinion on thc effectiveness of internal control over compliance,
Accordingly, we do not express an opinion on the effectiveness or the County's internal control
over compliance,
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 deficiencics or matcrial weaknesses as defined below,
Howevcr, as discussed below, we idcntificd ccrtain deficiencies in internal control over
compliance that wc consider to be signiticant deficicncies and others that we consider to be
material weaknesses,
0902-1032557
166
I'"
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II1I1 au ERNST & YOUNG
A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of
compliance requirement of a federal program or state project 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 internal control over compliance
described in the accompanying schedule of findings and questioned costs as items 2008-1
through 2008-6 to be significant deficiencies,
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 federal program or state project will not be prevented or detected by the entity's
internal control. Of the significant deficiencies in internal control over compliance described in
the accompanying schedule of findings and questioned costs, we consider items 2008-1 and
2008-5 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, others within the entity, the Auditor Genera] 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,
of
February 26, 2009
0902-]032557
167
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Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
ror the hSL:al Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
('FDA #/
('SFA #
DCDarlment of Aericulture
Direct Programs.
Rural Busmess-Cooperativc ServIce:
Rural Rusiness Enterprise Ciranl
J() 769
1 ndircc\ Programs
Florida Department of Education:
Summer Food SCf\iJce Program for Childn:n
10559
Florida Dcpartment or Agriculture illld Consumer ServIces
Cooperative Foresty Assistance
Cooperative Foresty Assistance
Total ('FDA
10664
10.664
Total Department of Agriculture
Devartment of Com merte
Dircd Programs
N<llional Fish and ,^"jldhfC Foundation
jo,dUl,;auonal PartnershIp Prognun .I Sea funk JJlsonentalll1n
114:-11
Totall>epartmcnt of Commcrce
Deoartmcnt of Ilousinl! and lJrban Development
Direct Programs:
Community Planning and Development
C\nnmunity Development Block (inuns ,i l.:ntltlement (('DBGl
Community Development Block (inmts / I':ntltlemem (CDBCi)
Community Development l310ck Grants / l'"ntitlement (CDBG)
Community Developmem13I()1.;k Orallts / r:ntlllement (CDBlil
Commumty Development Block (irants;' Enlitlement (CDBU)
Cl1mmulllty Development I~loek Grants / EntItlement (CDBCil
TutallTDA
14218
14218
14,218
14218
14218
14218
Emergency Shelter (irants Program (ESCi)
14231
Supportive I-lousmg Program (CUe)
SupportIve I lousing Program (COe ')
Supportive Housing Program (CoCl
SUpportl"C Ilollsing Program (CuC)
[otal ('FDA
1-4235
14235
1-421"
1423:;
110m..: Investment Parlucrshlps Program (HOMEl
HOTlle Investment PartnershIps Program (] IOMU
Ilome Investment Partnerships Program \I-lOMI ')
Total ('FDA
14239
14239
1-4239
See aecompanymg noks to the schedule oj" expenditures of federalll\vards and state proJects
16H
Grant/Contract Number
Collier County
04-0804
Isles of Capri FITe District
Ochopec Fire Distnct
2006-0114-004
H-03-UC-12-00 16
B-04-UC-12-0016
8-05-lIC-12-00 16
B-06-UC-12-0016
8-07-UC- 12-0016
B-08-L1C-12-0016
S-07-Ul'-12-0024
FL14B:;()-6001
FL14B50-6002
FI_14B50-6003
FI141160-6003
M-06-UC-12-0217
M-07-lJC-12-0217
M-08-LC-12-0217
Expenditures
$
400,896
365,288
2.375
5,220
7,595
773,778
123450
123,450
180380
126,960
98.122
196,678
1031,856
146,537
1,780,533
98,012
111,262
IUI,57h
72.41:;
33,401
318,654
1-1772
.)."
214_927
26,7K3
494.482
(l'ontlllLlcul
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30,2008
Fede.-al or State Grantor/Pass.Through Grantor Program Title
CFDA #/
CSFA #
Indirect Programs:
Department of Community A traiTs:
Community Development Block Grant / State's Program (DRI)
Community Development Block Grant I State's Program (DRl)
Total CFDA
14.228
14.228
Total Department of Housing and Urban Development
Deoartment of the Interior
Direct Programs:
Fish and Wildlife Service:
Partners for Fish and Wildlife / Conservation Collier Land
Habitat Restoration Project
Partnt=TS for Fish and Wildlife / Derelict Vessel Removal
Total CFDA
15631
15.631
1 ndirect Programs'
Flonda Department of Environmental Protection:
Clean Vessel Act
Clean Vessel Act
Total CFDA
15.616
15.616
Total Department (If the Interior
Department of Treasurv
Direct Programs:
Department of Treasury'
Federal f:quitablc Sharing
21.unknown
Total Department of Treasury
Department of Justice
Direct Programs:
Office of Justice Programs:
[.'ederal Equitable Sharing
l6.unkown
Services for Trafficking Victims I Anti Trafficking Task Force
16.320
State C'riminal Alien Assistance Program (SCAAP)
16.606
Public Safely Partnership and Community Policing Grants I
COPS Secure Our Schools
16.710
Edward I3yrne Memunal Justice Asslstance Grant Program
Edward Byrne Memorial Justice AssIstance Grant Program
Total CFDA
16.738
16.738
169
--
--
--".-
w ".__
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______" ....... _. , r_ ..
_."_.~,,-_...
Grant/Contnet Number
07DB-3V-09-21-0J-Z01
U8DB-D3-09-21-01-A03
4018151021
401816J091
LE636
LE637
Collier County
Collier County
200S-VT-BX-0002
2008.AP-I3X-0316
2007-CK-WX-0089
2005-CJ-BX-0753
2006-DJ-BX-0474
Expenditures
$
748,497
26,332
774,829
3,466,510
25,600
30,000
55,600
23,212
22,868
46,080
101,680
104,804
104,804
36,227
140,593
411,848
20,409
13L069
38,410
169,479
(Continued)
.
......-
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Pmgram Title
('FilA #/
CSFA #
Office on Violence AgainST V,/omen
Supervlscd Visitation, Sate llavens for Childn:n
16527
lndin::ct Programs:
Florida Department of Juvemle Justice
Juvenile ACGountability Block (jrants i Peer Mediation Program
16523
Flonda Onice of MtllffiCY General
Crime ViCtlll1 ASslstalKC (VUCA)
16575
Florida Department of Law Enforcement:
Edward Byrne Memorial Formula Urant ,I Sexual Prcdatol
16.579
Commumty ProsecutIon and ProJCl.:t SaIl: Neigbborhoods i
Anti-Clang Imtiative
]6601)
FlOrIda Department ofCh,ldren and Families
VIOlence Against Women Formula Grants ,'" STOP
Violence Agall1st Women Fonnula (irants"" S fOP
Total CFDA
16,588
16 SSH
Total Department of .Justil'e
Department of Transportation
Dlf~ct Programs:
F~deral Aviation Administratiorl:
AIrport Improvement / lmk Master l'ianlJpdat(;
AIrport Improvement / Marcu Master Plan Study Update
Airport improvement / Marcu Apron Phase I & II
Airportlmprovcment / /l.1arco Phase II Surcharge/Constructlon
Alfport Improvement / Milfco South Taxnvay & Apmn DesIgn
Total ('FDA.
2010()
20lU6
2(J J06
2U,106
201U6
Federal Transit Admll1istration.
Federal TranSIt Cluster:
Federal Transit-Capital Investment (irants./ Sectlllll )~{Iq
Federal Transit-Capital Investment (irants,l SectIOn :1109
Federal Transit-Capital lllvestment (jrants./ Secllon 5309
'I otal CFDA
20 SOO
20500
20,.'i()(J
Federal lranslt-Fun11Ula (jrants,l Secl10n 5W7
Federal Transit-FomlUla Grams / St;(,:[IUIl 5~07
Federal J ranslt-FomlUla Grants,l Sectlllll 5307
Federal Transit-Formula Grants,l Section 5307
!-ederal Transit-Fonnula brant" / St;CIlOll 5307
Total CFDA
20507
20..'i()7
20507
20.507
20 :;07
Total Federal TranSIt Cluster
170
Grant/Contract Number
2007-CW-AX-0007
SB-I05
V7022
2008JAGCCOLL 1 Q9170
2008PMAGCOLL 1 R6005
LNOl6
U\816
3-12-0031-003-2006
3-12-0142-002-2006
3-12-0142-003-2006
3-12-0142-004-2007
3-12-0142-005-2008
1'1.-03-0264-00
1'].-03-0297-00
1"1.-03-0312-00
Fl.-90-X508-00
Fl.-90-X553-t)O
l-'L-90-X580-00
H -9()-X645-00
I. L-90-X66S-00
Expenditures
$
99.575
32,245
140.395
135,330
16,755
123,480
34,848
158,328
1.361,183
7,500
51,205
4,843
397,545
23,72t
484,814
13,165
102,986
129,127
245,278
212,815
J,910
86,870
1.360,158
214,276
1,876,029
2,121,307
(Continued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30,2008
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA #/
CSFA #
Indirect Programs-
Florida Department of Transportation
Highway Planning and Construction I Lighting
Highway Planning and ConstructIOn I Pedestrian Bridge
Highway Planning and Construction
Highway Plmming and Construction I SidewaJks & Lighting
Highway Planning and Construction / Bicycle/Pedestrian Bridges
Highway Planning and Construction
Highway Planning and Construction j Paved Shoulders
Highway Plalllling and Construction / Bike Lane/Trail Study
Highway Planning and Construction I Sidewalks
Total CFDA
20.205
20.205
20.205
20.205
20.205
20.205
20205
20205
20.205
Federal Transit-Metropolitan Planmng Grants .I Section 5303
20505
Formula Grants for Other Than Urbanized Areas / Imk Circulator
20.509
Capital Assistance Program for Elderly Persons and Persons
with Disabilities / Section 5310
Capital Assistanl.:e Program for Elderly Persons and Persons
with Disabilities i SCl.:lion 5310
Total CFDA
20513
20.513
Total Department of Transportation
General Service Administration
Indircl.:t Programs:
Florida Department of State:
Voter Education Election Rdonn
39.011
Total General Service Administration
Environmental Protection Al!encv
Indirect Programs:
Florida Department of Environment a] ProtectIOn:
CapitaliLation Grants li.lT Clean Water State Revolving Funds
Capitalization Grants fix Clean Water State Revolvmg Funds
Total CFD^
66.458
66.458
CapitalizatIOn Grants For Urinking Water State Revolvmg Funds
CapitahzatlOn Grants For Drinking Water State Revolvmg Funds
Capitailzation Grants For Drinking Water State Revolving Funds
Capitalization Grants For Drinkmg Water State Revolving Funds
Total CFDA
66.468
66.468
66.468
66.468
Total Environmental Protection Agency
171
"~..._.-
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Grant/Contract Number
412559
412627
414327
415566
415590
416342
417350
417940
420887
AM 356
AM357
FL-16-0031
FL-16-0032
Colher County
WW597180
WWG 12059715L 03
OWIIIIOIO
OWIIII020
OWIIII030
DWIIII040
Expenditures
$
19.445
70,674
337,320
632.000
270,161
94,863
203,866
307.567
200,000
2,135,897
62,294
202,068
146.439
293,277
439,716
5,446,096
75,367
75,367
237,761
699,429
937,190
1,701,447
159,619
3.200,000
3,200,000
8,261,066
9,198,256
(Continued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Tille
cr.DA #/
CSFA #
Election Assistance Commission (EAO
Indirect Programs:
Division of Elco:tions'
Help Amenca Vote Act Requirements Payments / Poll V/orkers
Recnutment
Help America Vote Act ReqUirements Payments l Voter
Education
Help America Vote Act Rcqum~mcnts Payments I Vlll1tlg
Systems ASSIStance (HA V ^ 2U02)
4U -tOt
t)() 401
4u.4(Jl
Total Election Assistanu' Commission ([,\C)
Department of Health and Hllman Sen'icfs
Indirect Programs:
Florida Department of Elder Atnms - Mea Agency on Aging lur
Southwest Florida. Inc.,
Agmg Cluster
Special Programs for the Aging - Title J ll, Part I~ - (iranlS for
Supportive Services and Semor Centers
Special Programs for the Aging - Title III, Part B - Urants for
Supponive Services and Senior Centers
I otlll ('FDA
93044
93,044
SpeCIal Programs for the Agmg-Tltle Ill. Partl '-I-Nutrition
Servl~es
Specllll Programs for the Agmg-Tltk ilL Part C-2-NutntlOn
Services
SpeCIal Programs lor the Aging-TIt!.: Ill. Part C-I-Nutnllon
SerVices
Spl:\"'ial Programs tor the Agll1g-Tltle IlL ['art (-2-Nutntwn
Services
Tolal('FDA
lj104';
~ ~
91 iJ4"
~ ~
9304'i
l)3 ()4.'i
NutntlOn ServIces Incenlive Prugrmn, C-l
NutntlOll Services Incentive Program. C-2
Total ('FDA
93053
lj3053
Total Agmg C1uskr
National Family Caregiver Support - TItle Ill-I:
National Family Caregiver Support - Title lll-[
Total ('FDA
93.052
93,052
Flurida l)eparlment or Revenue
Child Support Enforcement
Child Support Lnfi:Jrcemcnt
Total CFDA
9.1 563
(13563
172
Grant/Contract Number
Collier Cuunty
(:olher County
('oilier County
OAA 203,08
OAA 203,07
OAA 203,07
OAA 203,07
OAA 20] 08
Ot\A 203 OlS
NSIP 20]08
NSIP 203.08
OAA 203,07
OAA 203.08
COli
CD311
Expenditures
$
28,010
16.169
154,776
198,955
76,703
113,120
189,823
10,501
8~405
l38,613
108,307
265,826
7.418
9,095
16.514
472,162
10,659
8,561
19,221
223,974
30,031
254,004
((\mtlllued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State GrantorlPass-Through Grantor Program Title
CFDA #/
CSFA #
Division of Elections:
Voting Access for Individuals with Disabilities-Grants to States
93617
Total Department of Health and Human Services
Corooration for National and Community Service
Dlrcct Programs:
Retired and Senior Volunteer Program
94 _ 002
Total Corporation for National and Community Service
Department of Homeland Security
Direct Programs:
Assistance to Firefighters Grant I Isle of Capri
97 044
IndIrect Programs:
Florida Department of Law Enforcement:
State Domestic Preparedness Equipment Support Program /
H S issue 2
97004
Homeland Security Grant Program / H.S. Issue 21
Homeland Security Cjrant Program
Homeland Security Grant Program / H_S_ Issue 20
Total CFDA
97067
97.067
97.067
Flonda Department of Community Affairs:
Disaster Grants - Public Assistance / Tropical Storm Fay
97.036
Hazard Mitigation Grant
Hazard Mitigation Grant
Hazard Mitigation Grant
Total CFDA
97.039
97039
97039
Emergency Management Performance Grant
97,042
Total Department of Homeland Security
TOTAL EXPENDITURES OF FEDERAL AWARDS
173
--~----~--
--'.'--"---"-,--,..,~_.,-~,-~ ~"--,,,,--,-_.,,,,,,,.,.
-,-..--_.'-
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Grant/Contract Number
Collier County
06SRSFL004
EMW-2006-f0-04104
2007SIISPCOLL2Q50U3
07-DS-5N-09-21-0 1-116
07-DS-5N-09-21-0 1-21 U
2U08SHSPCOLL3S40 II
Collier County
07-EC-33-09-21-0 1-486
08I1M-60-09-21-01-017
08HM-60-09-21-01-055
08-BO-24-09-21-0 1-318
Expenditures
$
13,323
758,710
67,313
67,313
1,873
9,507
6,188
13,956
19,648
39,791
269,554
1,639,223
11,875
16,800
1,667,898
42,045
2,030,669
$ 23,706,771
(Continued)
'_._.~-,~,
.._---~--~
37()()3 05COI
37.017 A8119
37050 IU8-07
37050 1(;8-09
Collier County, Florida
Schedule of Expenditures of
Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass~Through Grantor Program Title
('FDA #/
CSFA #
Florida .Executive Office of the GO\'crnor
Office ofTounsm, Trade and Economic Development
Rural InfTastructure, lmmokalee Airport
31.030
Total Florida Executh'e Office or the Governor
Florida Department of Environmental Protection
Beach Erosion Control Program
Florida Recreation Development ASSIstance Program
InnovatIve Waste Reduction and Recydmg Grants
Innovative Waste Reduction and RecyclIng (jrants
Total CSFA
Water Protection and Sustainabihty Program
37066
Total Florida Department or ~:nvironmental Protection
Florida Department of State and Sccrehlf\' of State
Pubhc Library Construction Program
Publlc Libnu),' ConstructH.m Program
Total CSFA
45 U2U
45020
State Aid to Libranes
State Aid to Llbranes
Stale A Id to Llbranes
Slate Aid tt) LIbraries
TOlal CSFA
45030
45030
45,030
45 ()30
CommUnI!y Libranes in Caring
45042
Total Florida Department of State and Secretary of State
Florida Deoartmcnt orCommunih' Affairs
Emergency Management Programs
)200l.l.
Local Emergency Managelm:n! and MiligatlOn InltlallveS
:i2010
Fmergcncy Mmlagcment I)ro.lect~
:;202J
Total Florida Department of Community Affairs
Florida lIousin2 Finance Corporation
Sl<lte llousll1g 11lltiativcs Partnership Program (SHIP)
Slate Huusing Initiatives Partnership Program (SH]P)
State Housing Il1ltla!lves P<lrtnership Program (SH]P)
Slate Iluusmg Illltiatlves Partnership Prugnml (SHIPl
:i2901
52 YOI
:;2 clUI
:i2l)()1
Total Florida HOllsing FinanCl' Corporatioll
174
GranUContract Number
01'05-136
460001J 1144
06-PI,C-04
U7-PLC-04
05-ST-12
06-ST-12
(17-ST-12
OR-ST-12
os-cue-03
08-80-24-09-21-01-318
07+C-33-09-21-01-486
08CP-04-09-21-0 1-126
J-.y 06
FY 07
J.'Y 08
FY 09
Expenditures
I
319,422
319,422
576,570
104,943
54,984
19,250
74,234
97,250
852,997
300.000
300,000
600,000
810
142,62l.1.
24,993
33,016
201,447
9239
,
810,687
102.934
J,51O,094
8,400
1,621,428
48.158
1.893,340
2,955,243
647,669
5,544,4] 1
(Contlllued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Fede.-al or State GrantorlPass~Through Grantor Program Title
CFDA #/
CSFA #
Grant/Contract Number
Expenditures
Florida Deoartment of Transportation
Commission for the Transportation Disadvantaged (('TO)
Trip and Equipment Grant Program
Commission for the Transportation Disadvantaged (CTD)
Trip and Equipment Grant Program
Total CSF A
55.001
55001
Commission tor the Transportation Disadvantaged (CTD)
Planning Grant Program
Commission for the Transportation Disadvantaged (eTO)
Planmng Grant Program
Tota] CSF A
55002
55.002
Aviation Development Grants / Marco Mitigation
Aviation Development Grants / Marco Land Acquisition
Aviation Development Grants i Immokalee Master Plan Study
Aviation Development Grants i Marco Master Plan Study
Aviation Development Grants I Marco Mitigation Phase [I
Aviation Development (jrants / Everglades Taxiway
Aviation Development Grants j Marco Taxiway "C" Phase I
Aviation Development Grants I Imk Emergency Generator
A viation Development Grants I Marco Apron Phase I & II
Total CSFA
55004
55004
55004
55004
55.U04
55.004
55004
55.004
55.004
County Incentive Grant Program! PD&E Study SR82
55.008
Public Transit Block Grant Program
Public Transit Block Grant Program
Total CSF A
55.010
55010
Public Transit Service Development Program! Red Route
55012
Toll Facihtes Revolving Trust Fund I Jolly Bridge Fcasability Study
55019
Transportation Regional Incentive Program I CR 951 GO to Imk
55026
Total Florida Department of Transportatioll
Florida Deoartment of Children and Families
Homeless Challenge Grant / CDC
60.014
Total Florida Department of Children and Families
Florida Deoartment of Health
County Grant A wards / Emergency Medical Services
County Grant ^ wards / I.~mergcney Medical SeT\ficcs
64.005
64.005
Total Florida Department of Health
Florida Department of Elder Affairs
Area Agency on Aging tor Southwest Florida, lnc:
Home Care fOT the Elderly (HCE)
Home Care lor the Elderly (llCE)
Total CSFA
65001
65001
175
--~'_.~--,-_.-
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,........-....-.....,.
__.__._._______^..~""''''" '," ..fi.'_.._'....._ .~_
_ v..__. ..._.,.,,~'~..,__..___.~___..~..~__,.'.,_'"_'~_'"
AOT48
AP621
AORn
AP647
AI526
AI935
ANF46
ANF50
ANH17
ANHI9
AOE09
AOEIO
AOK80
419950-2-22-01
AM350
AOW93
AOK37
ANY74
420991-1-58-01
HEZ23
C6011
C7011
liCE 203.08
llCE]1l/31220J07
$
467,749
151,813
619,562
10,738
9,121
19,859
167,155
44,542
220
1,347
10,462
],367
10,917
30,860
127
268,998
102,839
160,619
234,500
395,119
106,655
225,36]
1.751,687
3,490,081
85,221
85,221
130,578
41,406
171,984
169
4,007
4,176
(Continued)
--- _."_.--~~_.--_...~~......^,._-,
Collier Counly, Florida
Schedule of Expenditures of
Federal A wards and Stale Projects
For the Fiscal Year Ended September 3U, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
('FDAt:l-1
CSFA #
Alzheimer's Respite Services (A])l)
Alzhcimcr's Respite Services (ADI)
Alzheimer's Respite ServIces (AUl)
TotalC'SFA
65004
65.004
650U4
Community Care for the Elderly (CCE)
Community Care for the Elderly (('eE)
Total CSFA
6501U
65.Q]()
Total Florida Department of Elder Affairs
Florida Fish and Wildlife Conservation Commission
Florida Boatmg Improvement Program
77 006
Total Florida Fish and Wildlife Conservation Commission
Florida Deoartment of Juvenile Justice
Delmquency Preventioll i TRAl'
Delmquency PreventlOn./ FTRAC
80029
80 U29
Total Florida Department of Juvenile .Justice
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE
176
Grant/Contract Number
AD! 203.07
AD! 203 08
AD! 203 06
CCE 203.07
eeE 203.08
06163
Dp.576
GS-120
Expenditures
$
94,600
17.863
14,720
127,183
579,273
40,673
619,946
751,304
20,000
20,000
89,692
69,021
158,713
$ 13,826,248
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
A wards and State Projects
Year Ended September 30, 2008
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 Schedule is presented in accordance with the requirements of U,S, Office
of Management and Budget (OMB) 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, 2008,
2. State Revolving Funds
Reconciliation of State Revolving Funds (CFDA# 66.458 and CFDA# 66.468) expended to cash
received during fiscal year 2008:
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
$ 9,198,256
788,200
52,208
(8,290,529)
$ 1,748,135
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 l-75/lmmokalee 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 loan repayments only as no proceeds were
received under the loan and no projcct expenditures were incurred or paid directly by the County,
0902-]032557
177
"_._~._._____'^__<,_,_._. __.._,'_"'''M _,_....,._.~. ,,,__~,,~_~,........"..,,,,~,,~,_._.~"~,"._.,__""'"~'.,~ .
"'---~'-'-"
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
A wards and State Projects (continued)
3. State Infrastructure Bank Loan (continued)
As of September 30, 2008, the County recognized $12,000,000 in loan proceeds and construction
in process in the basic financial statements, Ilowever, no amounts have been reflected in the
Schedule as no loan repayment expenditures have been made during fiscal year 2008, The
repayment schedule for this loan is as follows:
Payment Date
Principal
Interest
Total
10/1 /2008 $ 1,957,377 $ 82,623 $ 2,040,0000
10/1/2009 1.839.1 48 200,852 2,040,0000
10/1/2010 1,875,930 164,070 2,040,000
1011/2011 1.913.449 P6,55l 2,040,000
10/1/2012 4,414,096 88,282 4,502,378
$ 12,000,000 $ 662,378 $ 12,662,3 78
4. Subgrant Awards
The following subgrant awards were made by Collier County during fiscal year 2008:
CFDA/CSF A
Number
Subgrant
Amount
Program Title,..
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 Program
Homeless Challenge Grant
14,218
1,209,862
14,2?8
14,231
14,735
14.239
448,025
98,012
316,163
461.595
52.901
60,014
181,350
85,221
04U2-1031557
178
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects (continued)
5. 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 are in compliance with the terms of the grant agreements and
applicable federal and state laws and regulations,
0902-1032557
179
'''~"'''-,--_._-~-"--~ ,----.~,_.
. ,"-"-,-.,-~,,~-->~~.,~ -,._,---~,,-~,.__.,.._,-~^.-._~"~,.~,_._-,---_._,----_.,,'"
Collier County, Florida
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2008
Part I-Summary of Auditor's Results
Financial Statements Section
Type of auditor's report issued:
Internal control over tinancial reporting:
Material weakness( es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Federal Awards and State Projects Section
Internal control over major programs:
Material weakness(es) identified?
Signiticant deficiency(ies) identitied that are not
considered to be material weaknesses')
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) ofOMB
Circular A-133, Section 215,97, Florida Statutes, and
Chapter 10,550. Rules of the Auditor General. State
of Florida'!
0')02-1(1:1155'
180
Unqualified
Yes
x
No
x
Yes
None reported
Yes
x
No
x
Yes
No
x Yes None reported
Qualified for the Community
Development Block Grant Program
(CFDA# 14,218), the Home Investment
Partnerships Program (CFDA# 14,239),
the State Criminal Alien Assistance
Program (CFDA# 16606). and the
State Housing Initiatives Partnership
Program (CSFA# 52,901); and
Unqualified for all other major
programs
x
No
Yes
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Identification of major federal
programs and state projects:
Federal Programs
CFDA Number
14,218
14.239
14,228
16,606
20,205
20,500/20,507
66.468
97,039
State Projects
CSFA Number
45,020
52,901
52,010
Dollar threshold used to distinguish
between Type A and Type B programs:
. Federal Programs
. State Projects
Auditee qualified as low-risk auditee?
0902-1032557
,"-","---"'-~~
._-<.,--_.,.
-_._, ..._.."_.__<._u,,,,.,~. ..~'.., '''''''_'''"' ,
T ~"'-"__'___'''''''''''-''__''___'" ,n _ "'__"___'_'.~'_~_ ,__ _~__._'_._'_'____
Federal Aeency!Name of Federal Proeram
U,S, Department of Housing and Urban Development:
Community Development Block Grant Program (CDBG)
Home Investment Partnerships Program (HOME)
Community Development Block Grant / State's
Program (DRI)
U,S, Department of Justice:
State Criminal Alien Assistance Program (SCAAP)
U.S, Department of Transportation:
Highway Planning and Construction
Federal Transit Cluster
U,S, Environmental Protection Agency:
Capitalization Grants For Drinking Water State
Revolving Funds
U,S, Department of Homeland Security:
Hazard Mitigation Grant
State Aeency!Name of State Project
Florida Department of State and Secretary of State:
Public Library Construction Program
Florida Housing Finance Corporation:
State Housing Initiatives Partnership Program
(SHIP)
Florida Department of Community Affairs:
Local Emergency Management and Mitigation
Initiatives
$ 711,203
$ 414,787
Yes
x
No
181
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Part II-Financial Statement Findings Section
This section identifies the significant deticiencies, 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,
Finding 2008-0
Financial Reporting
Condition
In connection with our audit we noted a financial reporting difference that required an audit
adjustment to restate the fiscal year 2008 beginning net assets for the County Water and Sewer
enterprise fund and the entity-wide busincss-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 determined that planning costs that could not be
reasonably associated with specific assets should not have been capitalized,
This misstatement resultcd from linancial reporting deticiencies related to the capitalization
process that had been noted in prior audit reports, The County has multiple departments building
and incurring costs that can be capitalized and costs that are operating in nature, As such, it is
critical that the County continue to improve linancial reporting controls in order to ensure costs
are 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,
Afanagement 's Response and Corrective Actiun Plan
Management concurs with this finding and is committed to the further enhancement of its
capitalization procedures, particularly as thcy relate to construction work in process, Thc
County's procedures, put into place as a result of the fiscal year 2007 audit, identified and
addressed the issuc discussed above for all county dcpartments that administer capital asscts,
0902-10_,}557
187
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 findings required to be reported by Circular A-133
section ,51 O(a), Section 215,97, Florida Statutes, and Chapter 10,550, Rules of the Auditor
General, State of Florida, such as material weaknesses, significant 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 2008-1
Federal/State Program Information
Federal Agency: US 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
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSF A No, 52,901
Criteria
Allowable Costs: Compensation for personnel services rendered in connection with Federal
awards must be documented and supported as described in OMB Circular A-87, Cost Principles
for State, Local and Indian Tribal Governments (A-87), Additionally, pursuant to the SHIP
Program Manual, administrative costs for the SHIP state program 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 lirst-hand knowledge of the work
performed by the employee,
0902-J032557
183
._.~
.---- .-
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" - ~-"",_._",_....."..",..,.,_. ..... ."',, . ,~--"'....".."'.~-----
,.
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
. 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 ret1ect an after-the-fact distribution of the actual activity of each employee,
b) must account for the total activity for which each employee 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
for interim accounting purposes,
Condition/Context
We noted that for the majority of tiscal year 2008, 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 used a Personnel Activity Report
(P AR) 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 cstimate of the 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 (the department 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. SIIIP, or CDBG) 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 majority of fiscal year 2008, these timeshects
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,
Questioned Costs
Total salaries and related costs are summarized as follows:
HOME (CFDA # 14,239)
CDBG (CFDA # 14,718)
SHIP (CSFA # 52901)
$ 75.066
$ 173.204
$ 220,576
0<)02-]0325:1'
184
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 for the majority of
fiscal year 2008, The payroll charged to a grant was based on the PAR, or budgeted amount, and
there was no process in place to compare the PAR percentage used by the payroll department to
allocate costs during the majority of the year to the actual time incurred by the employee based
on the timesheets, Additionally, PAR reports do not include the employee's signature and are
completed annually; however, for employees who work solely on one grant, certification forms
are required to be completed at least semi-annually,
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 timesheet. 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 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 of Re.\ponsible Officials and Planned Corrective Action
This finding has been resolved effective July 1,2008, All grant staff are required to complete bi-
weekly 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 1, 2009, the Human Resources department will process bi-weekly
time and effect entries for all Housing and Human Services grant staff. Staff will continue to
complete their bi-weekly time sheets , 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,
0902"]())2557
185
-----
-.
,,- ...~ , "~---~',,"-"~~~'~'-'-
,--." ",'""'.~..,....-.....",,._,.. ~_.-
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r ,
--~ ~ .~--
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Finding 2008-2
Federal Program Information
U,S, Department of Justice
State Criminal Alien Assistance Program (SCAAP) -- CFDA No, 16,606
Criteria
Reporting: The County applied for the fiscal year 2007 SCAAP grant and received the award
funds during fiscal year 2008, The fiscal year 2007 SCAAP reporting period is from July 1,2005
through June 30, 2006, Applicants provide correctional officer staffing and salary costs, the total
of all inmate days, and details about eligible inmates housed in their correctional facilities during
this 12-month reporting period, Using financial data supplied on the application, including each
applicant's annual correctional otIicer salary costs, the award amount is determined pursuant to
an established formula,
The "FY 2007 SCAAP Guidelines" indicates the following with respect to the "Correctional
Officer Salary Calculation:"
"Salary information reported in the SCAAP application must ret1ect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
delinition, The reported sum should total the jurisdiction's actual salary expenditures for the
reporting period, not an estimate or avcrage, Correctional officer salary costs may include
premium pay for specialized service, shift differential pay, and fixed-pay increases for time
in service, It may also include overtime rcquired by negotiated contract, statute, or regulation
such as union agreements, contractual obligations, and required post staffing minimums, "
In the "FY 2005 SC AAP Guidelines," the last sentence above made reference to benefits and
stated that correctional officer salary costs "may also include employee 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 (.yywwc whitehQljsegQv/oml;J/circLilars/a087/toc,html) provides general guidance on
how benefits are defined for units of government." However, the FY 2006 and FY 2007 SCAAP
Guidelines omitted this reference and do not provide any mention of benefits being a qualitying
officer salary cost.
As noted in our prior year finding number "007-07 in the accompanying "Schedule of Prior
Findings," we contacted the Department of Justice (DOJ) in the prior year for clarification based
on the salary delinition in the FY 7006 SCAAP award and were informed that "only actual salary
costs, regular salary or ovcrtime required by either contractual agreement or written policy. were
allowable costs for the FY "006 SCAAP applications," Iherc was no change in the salary
definition trom the FY 7006 SCAAP award to the FY 7{)07 SCAAP award as noted above,
O'J02-10315:'i7
186
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Condition/Context
In addition to overtime which appears to be allowable based on the information stated above, the
County included wage benefits (i,e, incentives, training costs, retirement, group life and health
insurance, 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 certified correctional officers employed during the reporting period reported
in the application of 321 was overstated by 65 due to vacant positions being erroneously
included in the amount submitted in the application,
Questioned Costs
Undeterminable
Cause
We were informed by representatives of the Collier County Sheriff's Office (Sheriff) that in
connection with their FY 2005 SCAAP grant application they verbally communicated with the
head of SCAAP in Washington D,C, who stated that benefits were an allowable salary cost, and
that the rules had been recently amended to provide for the inclusion of overtime and benefits
which were previously not allowable, Additionally, the Sheriff provided documentation
indicating that beginning with the FY 2005 SCAAP grant, the Sheriff began including allowed
overtime as well as benefits and they so informed the DOl via an electronic submission of an
explanation for the increase in salary costs from the prior year's application which exceeded
15%, The application for the FY 2005 SCAAP grant was accepted by the DOl, There is no
documentation in the SCAAP guidelines and related materials of the change in rules as described
with respect to the FY 2006 SCAAP grant.
Effect
The award amount received for the FY 2007 SCAAP grant would have been impacted by the
amount of benefits included in the salary cost total reported on the grant 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 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 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,
0902-1032557
187
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Views ofRe;ponsible Officials and 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,
Finding 2008-3
Federal Program Injormation
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 Plmming and Construction Federal
Transit Cluster - CrDA No, 20,500/20,507
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 subrecipients), 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
verification may be accomplished by checking the Excluded Parties List System (EPLS)
maintained by the General Services Administration (GSA), collecting a certification 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 thc agreements, as applicable, for certain sample
transactions selected for testing,
Questioned Costs
N/A
09Ul-1U3255'
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
Internal controls with respect to suspension and debarment were not operating effectively as no
documentation was maintained indicating that the EPLS was checked for the selected 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 verify whether the County met its requirement to
verify that the entities were not suspended or debarred or otherwise 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), collecting 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 Responsible Officials and 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 subrecipients, 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 file, Debarment and audit reports have also been included in the Master File
Checklist which is included in the file 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 for all federal transit grant procurements over $50,000,
Other steps are taken by the Purchasing Department at the time of advertisement of bids and
requests for 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,
0902-]032557
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Finding 2008-4
Federal Program Information
V,S, Environmental Protection Agency
Capitalization Grants For Drinking Water State Revolving Funds (SRF) - CFDA No, 66.468
Criteria
Allowable Costs: Effective internal controls over the approval of costs charged to the federal
program are required to be in place,
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,
Questioned Costs
N/A
Cause/Effect
The invoices had not yet been entered into the general ledger system or paid at the time that they
were submitted for reimbursement. Per review of the invoice. we noted that the charges related
to allowable costs under the terms of the loan program, However, a control deficiency exists as
there was no evidence of review and approval of the invoices for allowability prior to being
charged to the loan program,
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,
0902-1032557
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials and 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 verifies
whether all the invoices are properly approved and are paid, After this approval, it goes to the
Project Manager, Director and the Administrator for approval of the disbursement request.
Finding 2008-5
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No, 52,901
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, immediately
preceding submittal of the report,
. Annual reports for the Closeout Fiscal Year (2005/2006), Interim Fiscal Year 2
(2006/2007), and Interim Fiscal year 3 (2007/2008) (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,
0902-1032557
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Questioned Costs
Unknown
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 efTectively,
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,
Views of Responsible Officials and Planned Corrective Action
The HHS staff performs a reconciliation of SHIP transactions monthly to ensure that the Annual
SHIP report tracks to the SI III' annual report. This procedure was implemented after the last
audit. The SHIP grant support specialist runs a report at the end of each month and reconciles
those transactions to the activity in the SHIP spreadsheet. These reports are maintained
throughout the year and are expected to greatly improve staff's ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
The Department of Housing and Human Services recognizes the importance of reconciling
statutory reports, internal staff reports, and the general ledger. Procedures were implemented
following the FY07 audit. While these procedures greatly improved the accuracy and
accountability of thc statutory and internal staff reports, they did not account for the point-in-
time nature of the statutory reports,
To effectively 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 time frame,
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,
1)902.]032557
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Finding 2008-6
Federal Program Information
U,S, Department of Housing and Urban Development (HUD)
Community Development Block Grant / State's Program (DRl)
CFDA No, 14,228
Criteria
Reporting: Effective internal controls over the review ofreports required to be submitted to the
grantor agency are required to be in place,
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),
Questioned Costs
N/A
Cause/Effect
Effective supervisory review controls were not in place, Possible errors or omissions in reports
could go undetected if a formal review is not conducted and documented,
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,
0902-1032557
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Views ofResponsihle Officials and Planned Corrective Action
The Department of Housing and Human Services has implemented 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 the Housing Manager. Once
approved as accurate, the Housing Manager signs the report to indicate completed review,
Copies of signed reports are maintained by stafT of the Department of Housing and Human
Services,
0402.1\f\2557
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-~.-~-->_.
Collier County, Florida
Schedule of Prior Audit Findings
For the Year Ended September 30, 2008
A. The current status of findings reported for the years ended September 30, 2007 and 2006
related to the County's basic financial statements is as follows:
Finding 2007-01
Fixed Asset Capitalization and Depreciation
Condition
In performing the fiscal 2007 audit of fixed assets, we identified certain differences resulting in
adjustments to the County's basic financial statements, These differences included a prior period
restatement to expense amounts incorrectly capitalized, and reclassifications of amounts
improperly transferred to and from construction-in-progress,
Recommendation
.
The County should revise its construction and fixed assets accounting processes and procedures
to incl ude:
. Review of contract terms for significant projects to determine proper classification of
project costs as capital assets or maintenance expense
. Expanded definition of capital assets
. Enhanced criteria for transfer of projects from construction-in-progress to fixed assets
. Periodic reconciliations of construction-in-progress costs to determine the proper and
timely capitalization of project costs
In addition, we recommend that the County utilize a fixed asset software program to accumulate
construction-in-progress costs, Much of the process involved in reconciling capital construction
costs is labor intensive and could be better automated, These expenditures should be reconciled
during the year rather than performing a comprehensive review at the end of the fiscal year. This
would accelerate this portion of the financial statement close process and reduce the risk of
manual errors,
0\>02.1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management Response and Corrective Action Plan
The Finance and Accounting Department concurs that all contracts need stringent initial review
to ensure proper expenditure classification, The initial review of contracts will be taken up as
part of the Board of County Commissioners' agenda review, Criteria for transfer of projects from
construction in progress to depreciable assets will not be purely quantitative for future fiscal
years, Increased reliance will be placed upon County departments and project managers for
information relating to capital asset in service dates, Reconcilement of construction in progress
costs are now occurring on a monthly basis, The County is currently working on a project
management system that will be fully integrated with thc County's existing SAP database,
Construction in progress status information wi II be captured within that project management
system and will be followed with a confirmation process to ensure capital assets are captured
appropriately and efficiently,
Current Status
Fiscal year 2008 capitalizations from work in process were based upon communications with
various County Departments, Critical analysis of the work in process balances identified
planning costs that had been capitalized and would have been more appropriately expensed (See
Finding 2008-0), Work on the County's new project management system is ongoing and will
benefit future reporting periods,
Finding 2007-02
Accounting for Impact Fee Deferrals
Condition
During fiscal 2007 the Clerk's internal audit department performed a review of the County's
public records, This review identified approximately $5,6 million in impact fee deferrals that had
not been recorded on the County's books, This balance was recorded as a prior period
restatement to increase net assets in the government-wide tinancial statements and water and
scwer fund,
Recummendatiun
The County should review and revise its process for identifying impact fee deferrals to ensure
that all contracts arc recorded,
0902-1032.'i57
t96
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management Response and Corrective Action Plan
Moving forward, a standard process will be instituted to ensure that impact fee deferrals are
communicated by the County to Clerk's Finance, Once both an impact fee deferral agreement
has been recorded in Official Records and the transaction has been posted to the CD Plus system
in Community Development Services, the County will provide notification to the Finance
Department to record the deferral in SAP, In addition, on a quarterly basis Clerk's Finance will
reconcile impact fee deferrals recorded in SAP against the County's list of deferrals to validate
that all deferrals have been recorded,
Current Status
Impact fee deferrals are properly recorded as of September 30, 2008,
Finding 2007-03
Accounting for Nonexchange Revenue
Condition
In 2007 and prior years, the County has recorded funds received for the Emergency 91 1 Wireless
Tax as deferred revenue, The criteria for revenue recognition pursuant to GASB 33 related to this
tax had been met.
Recommendation
The County should review the supporting documentation for all significant nonexchange revenue
streams to determine when the revenue recognition criteria in OASB 33 have been met.
Management Response and Corrective Action Plan
We have reviewed all non-exchange revenue transactions of which we are aware to determine
that the recognition criteria of GASB 33 has been met.
Current Status
The Emergency 911 Wireless Tax is not recorded as deferred as of September 30, 2008,
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-04
Accounting for State Housing Initiatives Partnership (SHIP) Deferred Impact Fee
Receivables
Condition
During our audit of impact fee deferrals, we noted that the County recorded notes receivable of
approximately $2,8 million which represented SHIP-related deferred impact fee credit
agreements entered into in prior years, Under the County's Consolidated Impact Fee Ordinance
(2001-13), the SI-lIP deferral program allows Jor thc waiver of the impact fee revenue after 15
years unless an agreement is defaulted, In the past, the County has not recorded a reserve for
SHIP notes that are not expected to be collected,
Recommendation
The County should establish and implement a policy for reserving impact fee amounts that are
not expected to be collected,
Management Response and Corrective Action Plan
We agree that the asset needs to be recorded at net realizable value and will work with the
department to establish an appropriate allowance for financial statement reporting purposes,
Current Status
SHIP related deferred impact fee agreements are not reported as receivables in the financial
statements as of September 30, 2008,
The following finding was reported by the County's prior auditor for the year ended
September 30, 2006,
Finding 2006-1
Condition
The County had historically recorded impact fee revenues as unearned revenue until the County
had met all the restrictions in the enabling legislation related to the fee, Also, the County has not
recorded developer donated properties received in lieu of impact fces in previous years,
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
Corrective action was taken,
Currently, impact fee credit ledgers are supplied by the Community Development and
Environmental Services Department at the end of the fiscal year. These ledgers map to
Developer Contribution Agreements and list value received, or to be received, in return for
impact fee credits, as well as outstanding impact fee credit balances by Developer Contribution
Agreement (DCA), Rights of way, easements and land are recorded as provided for in the DCA
and construction improvements are recorded as accounts receivable until completion, Capital
assets related to impact fee credit balances are current and booked through September 30, 2008,
B. The current status of findings reported for the years ended September 30, 2007 and 2006
related to major federal programs and state projects is as follows:
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,
0902-]032557
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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 Manager will review 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 invoiceslreimbursement requests with all reconciliation documentation attached the same
day the request is submitted to the grantor, Payments Irom the grantor will continue to be
received by the Finance Department.
Current Status
The Grants Coordinator 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 Information
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 final repol1 be submitted to the South Florida
Water Management District (the "District," pass though entity) by August 1, 2007 to provide a
final summary o('the project. The tinal 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
rcconcile this total to the cxpenditures lar the project as recorded in the general ledger system,
IIowever, we were able to agree the District's cost sharc in the final report to the grant agreement
and we noted that the cxpenditures in the general ledger system and in the tinal report were
significantly higher than thc District's cost share under the grant agreement.
0')02-1032557
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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 expenditures to be wholly or partially
reimbursed by a grantor agency vs, other general project expenditures,
Planned Corrective Aclion
At the completion of the project (actually four different 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 sprcadsheet will be created to track and identify expenditures associated with
purchase order numbers by grant task.
Current Stalus
Public Utilities Engineering Department Grant Coordinator wrote and submitted all project
reports to the grantor. The Coordinator has maintained all project documents for each grant.
The Coordinator workcd with the Utility Billing and Customer Service section of Public Utilities
to invoice for grant reimbursements, An Excel spreadsheet was created and used to track and
identify expenditures associated with purchase order numbers by grant task,
Finding 2007-07
Federal Program Information
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 Sheriff 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 retained to
support any such correspondence,
Views of Responsible Officials and Planned Corrective Action
The Collier County Sheriffs 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 Sheriffs 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 (OMS) has a "SCAAP HELP" link in its SCAAP application site that is
available for applicant clarification or to resolve cont1icting 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 Guidclines c1earlv indicate in the "Correctional Officcr Definition" who does and does
-
not qualify for inclusion in the ofjjcer count.
The "FY 2006 SCAAP Guidelines" with respect to the "Correctional Officer Salary Calculation"
is included in the audit Criteria section above, There is no reference to benefits not being eligible
for inclusion in the "~c1UaL~iil<lrL~)(P~l1ditures" 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, Wc do not believe it is logical for benefits to be an allowable
cost for only one year (FY2005) and then to revert back to years prior to 2005,
0\)02.l032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
When comparing the above referenced SCAAP 2006 Guidelines Correctional Officer Salary
Calculation section to the SCAAP 2005 Guidelines Correctional Officer Salary Calculation
section, commencing in 2005, benefits are allowable inclusions in the correctional officer salary
calculation, No SCAAP Guideline after 2005 states that benefits are excluded, The CCSO
maintains DOJ/BJA did not exclude benefits in SCAAP Guidelines after 2005 and that SCAAP
2005 Guidelines supersede 2002 SCAAP Frequently Asked Questions about the eligibility of the
inclusion of benefits in the SCAAP 2006 corrections 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 fixed-pay increases for time in service, It may <ilso include emQlgyee
!Jenefits and overtime required by negotiated contract, statute, or regulation (e,g" union
agreements, contractual obligations, required post statling minimums, etc), Office of
Management and Budget (OMB) Circular A-87 (www,whitehouse,gov/omb/
circulars/aOll.7/toc,htmJ) provides general guidance on how benefits are defined 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 specific 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 benefit 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
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 offer both the grantor and the grantee with application field 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 for 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 benefits, and overtime in actual salary
0')02-]032557
203
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
expenditures, Management believes the intent of the SCAAP 2005 Guidelines was there to
continue to permit the inclusion of benefits in the correctional officer salary calculation since
DOJ/BJA did not state otherwise in writing,
Current Status
See current year finding 2008-2,
Finding 2007-08
Federal/State Program Information
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 financial assistance project awards expended for each
individual federal and state program, Various revisions were required from the original Schedule
to the final Schedule due to errors and/or omissions that were identified by the County
throughout the reconciliation process which extended for several months or through inquiries we
posed in relation to specific grants or variances Irom 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,
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 reporting requirements,
OY02"1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
The County has developed a training curriculum to both elevate the importance of and to provide
instruction about proper grant management. Participation in these courses has been supported by
upper management and employees involved in grants are encouraged to attend, Further, a Grant
Manual was developed and issued in October 2007 and Grant Coordination Policy updates have
been made to provide additional instruction, The County Manager has initiated a new program
called Expect Compliance at Every Level (XCEL), which is a self assessment tool designed to
allow mangers to formally assess and manage business risk, including internal control structures
and operations, All areas of county operations will take part in this initiative; however, the initial
focus is financial processes, including grants, Regular reporting to upper management is
required, resulting in increased quality control and accountability, Additionally, an XCEL
review will be performed specifically to determine an improved process for development of the
Schedule, seeking potential departmental and centralized controls to avoid this issue in the
future, The Grants Office will be responsible for accomplishing this analysis in coordination
with XCEL team experts by August 2009 and recommendations will be made to the County
Manager for implementation, Long term, project management enhancements to the County's
SAP system are expected to streamline the process and provide improved accuracy of
information.
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 on site
reviews) as described by the One-Year Action Plan, approved by HUD,
0902-\032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
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
, ,
momtonng,
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, subrecipients provide a monthly status report on projects which
is a type of monitoring, Annual audits are requested from each subrecipient and those noted in
the finding have been reccived and placed in their files,
Management will, however, document 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,
Current Status
New desk monitoring policies and procedures have been implemented in FY2008, A desk
monitoring form has been designed and grant coordinators are now monitoring their
subrecipients on a regular basis, Desk monitorings are reported monthly to the HHS Director via
the Grant Section's monthly report. Thc Grant Operations Manager ensures compliance by
quarterly sample testing of active tilcs, Feedback is given to the grant coordinators on the
quality, quantity and subject matter of the monitoring, Testing is conducted to ensure all active
tiles are reviewed by the Grants Operations Manager at least once during the year.
To ensure audit reports are received and reviewed annually, the Grants Section has implemented
Standard Operating Procedure #1-116 which outlines the process for requesting subrecipient
audit reports, The reports are now requested annually in the December timeframe, to be received
no later than December 3151 of each calendar year and reviewed by the assigned grant
coordinator by January 301h A report is then forwarded to both the HIlS Director and the Grants
Operations Manager by the Operations Coordinator. Request date has been added to the master
calendar. Current audit reports and debarment certification letters are now also required for new
subrecipients as part of the grant application submission process, Assigned grant coordinators
are responsible for checking EPLS for all subrecipients. vendors and contractors associated with
anv funded activitv,
. .
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-10
Federal Program Information
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 one participant to whom HOME funds were provided during the
year was assigned an incorrect file number and was actually a participant for the CDBG,
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
1) A journal entry will be processed to post the expenditure to the proper fund account.
2) Controls over data entry will be reviewed, and if necessary, revised,
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 CDSG 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 verified,
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-11
Federal/State Program Infurmation
Federal Agency: US Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) -- CFDA No, 14,239
Community Development Block Program (COB G) ~ CFDA No, 14,218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP)- CSFA No, 52,901
('ondition/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 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 (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 CDBG) 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 time sheets are not provided to the County's payroll
department to adjust the allocation of payroll costs !rom the estimate as indicated in the annual
PAR form to actual time spent. Thus, therc is not an "after the fact" accounting based on actual
actlvlly,
Also, we noted a salaried employee in our sample for the CDBG program whose payroll is
allocated 100% to the grant; howevcr, semi-annual certifications were not completed as
described above,
0002-1032557
;08
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that the County continue to use the time sheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each timesheet. 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 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.
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 time sheet documentation
process developed in FY 2006,
3) Management will review the time sheets quarterly and compare them against cost allocations
to make adjustments accordingly,
4) The PAR forms will be revised to accommodate employee's signature,
5) Departmental policies and procedures will be revised to reflect changes,
Current Status
See current year finding 2008-1,
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
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 spreadshect 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 (lDlS), howevcr, \DIS is unable to generate a report that
identifies the matching previously submitted,
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 IDlS (including source of funding: index numbers to trace
source to general ledger) and the general ledger.
Planned Corrective Action
I) Housing and Human Services (HI-IS) staff will review the HOME program guidelines to
further understand thc HOME match requirements,
2) llllS statT has recently developed a tracking system to track the HOME match contributions
in compliance with ')4 CFR 92,504 which is an improvement to the current tracking
mechanism"
0902-1032.5)7
')10
Collier County, Florida
Schedule of Prior Audit Findings (continued)
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
As stated in the corrective action plan above, HHS fiscal staff has developed a HOME match log
to track all HOME expenditure that require match and where the matching funds originate, With
each drawn down of a HOME project, the corresponding match is documented on the log in
compliance with 24 CFR 92,504,
Additionally, the HOME Match Report was completed and submitted with the Consolidated
Annual Performance and Evaluation Report (CAPER),
In addition, the Department has developed a number of matrices that are completed and others
that are scheduled to be completed, Each matrix outlines the Federal program guidelines,
procedures in place, monitoring of those procedures and any action needed to take, A HOME
matrix was developed, reviewed and implemented by the Department.
Finding 2007-13
Federal Program information
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (l-IOME)
CFDA No, 14.239
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 oflow-income housing,
Recommendation
We recommend that the County/Department 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.
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Planned Corrective Action
Housing and Human Services will review the HOME program guidelines and update our
checklist 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 relatcs to
construction, a Section 3 form will be included in thc award package and completed, The report
will be sent to the field office by the deadline required,
Current Status
HUD 6000), Section 3 Summary Report, Economic Opportunities for Low- and Very- Low
Income Persons form are now part of the agreement award package and reviewed at the pre-
construction meeting for each project ovcr $200,000, The reporting dates have now been
included in the Department's Master Calendar. Submission of the Section 3 report along with a
copy of the Consolidated Annual Performance and Evaluation Report (CAPER) is submitted
annually per HUD requirements prior to Oct 1st annually,
In addition, the Department has developed a number of matrices that are completed and others
that are scheduled to be completed, Each matrix outlines the Federal program guidelines,
procedures in place, monitoring of those procedures and any action needed to take, A HOME
matrix was developed, reviewed and implemented by thc Department.
Finding 2007-14
State Program InjiJrmation
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No, 52,90 I
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we wcre unable to validate the amount of expenditures
reported in the Annual Report. Additionally, we noted that there were no amounts reported for
"program income (interest)" for the 2004J7005 and 2005J7006 grant award periods, however,
interest was earned on the unspent portion of the rcspective advances and should have been
reflected as program revenue,
O\)()2-10_,='-557
212
Collier County, Florida
Schedule of Prior Audit Findings (continued)
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 staff 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
See current year finding 2008-5,
Finding 2007-15
Federal Program information
U,S, Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBG)
CFDA No, 14,218
Condition/Context
The County did not maintain documentation indicating that it had checked the EPLS for
sub awards 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,
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
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 performed, The debarment certification will be
added to our checklist for the project tile,
Current Status
Debarment certification letters are now also required for new subrecipients as part of the grant
application submission process, A subrecipient folder checklist has now been implemented to
ensure compliance, Assigned Grant Coordinators check all subrecipients, vendors and
contractors against the EPLS listing, Screen Prints of EPLS listing are made to prove
verification and are included in the file,
Finding 2007-16
Federal Program Information
U,S, Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBG)
CFDA No, 14,718
Condition/Context
The Form 60002, Section 3 Summary Report, I,'conomic ()pportunitiesjiJr 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, However, this
award amount relates to the 2007-2008 entitlement for thc program year that began on July 1,
2007, Accordingly, it appears that the incolTect award was used to complete this report.
The expenditures reported in the C04PR76 -- CDBe; Financial Summary report for the period of
July I, 7006 through June 30, 2007 based on the IDIS system had not been appropriately
reconciled to the County's general ledger.
(j'-J02-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures 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 Human Services (HHS) staff 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.
Current Status
Responsibility to ensure correct year data for the Section 3 Summary Report has been assigned
as a coordinated effort 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 for ensuring the general ledger accurately reflects 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 Department
Director.
The Section 3 report was completed and submitted on time,
The following findings
September 30, 2006,
were reported by the County's prior auditor for the year ended
0902-J032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-2
CFDA Number:
Award Numbers:
Award Years:
U ,S, Department of Housing and Urban Development
Community Development Block Grant (CDBG)
Home Investment Partnerships Program (HOME)
#14,218,14,239
M-05-UC-120217, B-04-UC-1200l6, B-05-UC-120016
2004,2005
Federal Agency:
Program:
Recommendation
The County has now completed an Environmental Review Record for each of the projects
mentioned in this finding, Environmental reviews should be completed for each project prior to
IDlS set-up and prior to expending any grant funds, To ensure completion of environmental
assessments, we recommend implementation of oversight controls, After each ERR is completed,
it should (I) be signed and dated by the appropriate staff member and (2) be reviewed and
approved by management. The approved ERR should then be forwarded to the person
responsible for IDlS set-up (to initiate this process) and subsequently placed in the appropriate
file, We recommend the County update its policies and procedures to document all controls and
processes associated with environmental reviews,
l'vfanagemenl '5 Response
Collier County concurs with this finding and as indicated in the recommendation above has
already implemented additional environmental practices and procedures, Consequently, our
positive completion of all environmental reviews and implementation of additional practices and
procedures has validated all HUD eligible activities and any and all questioned costs associated
with these and future projects,
(J')02-1032557
716
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services Department has updated the Environmental
Review policies and procedures already in place to reflect the process in a more comprehensive
and detailed manner when completing the Environmental Reviews (ERR), To ensure compliance
with HUD regulations, Collier County will require the appropriate staff members to attend HUD
sponsored Environmental training, Staff has attended HUD Environmental training as required,
Another level of control added to the Environmental Review process is the review of each of the
ERRs by the Grants Operations Coordinator (GOC) after the Grants Management Coordinators
complete ERR documents for their projects/activities to determine the appropriate level of
clearance, The GOC will check the ERRs to make sure the projects/activities have correctly been
categorized as to the level of environmental review required, therefore assuring that the
established procedures have been followed and all HUD required forms are included in the ERR,
Finding 2006-3
Federal Agency:
Program:
CFDA Number:
Award Numbers:
Award Years:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14,239
M-03-UC-I202I7, M-04-UC-1202I7, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend formal policies and procedures with respect to Community Housing
Development Organization (CHDO) certifications, The policies should address initial CHDO
certification as well as CHDO re-certifications, and require completion of an annual checklist.
For initial certifications, the County should have documentation to support each item on this
checklist. Documentation required for re-certilications should also be described, To ensure
proper controls are in place, we recommend coordination of CHDO documentation by one
individual and review and approval by another,
0902-]032557
217
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management's Response
Collier County Housing Development Corporation (CCHOC)
Low Income Community Input: The by-laws of CCHOC include a statement of compliance that
CCHOC would create a "process for low income community input." CCHOC did adopt by
Board motion a formal written process for low income community input, CCHOC's actions since
its inception have reinforced this policy. CCHOC has now adopted an official corporate
resolution on January II, 2007 validating that their official policy of low income community
input has been in existence since creation of the organization, Low income Board representation:
As part of the County's CHOO Certification checklist process, low-income board participation is
vcrified by staff CCHOC has always and continues to maintain their required minimum number
oflow income board members, CHOO Certilication Date: The certification process for CCHOC
occurred over approximately a 9 month period, On December 8, 2005 county staff attended the
Board meeting where the CCHOC adopted the two remaining policy items, thus completing all
of the HUO checklist requirements li:lr thcir CflDO certilication status,
Em!l-Qwermcnt AllianceQf Southwest Florida (EASE)
CHOO Low-income community input and CHOO Capacity: EASF has been a State of Florida
certified CHDO since 2002, The State guidelines for CHDO certification are identical to HUD
guidelines, Documentation of State CHDO approval is on file with Collier County, EASF has
been operating in Collier County sincc 2000 which substantiates their capacity and experience
working in the low-income community of Immokalee.
Big Cypress HQusing CogorajioI1
CDHO Capacity and Staffing: Big Cypress CHDO operates as a subsidiary of Everglades
Community Association, The staff of the organization is allocated to the parent organization
supporting the CHDO and charges their time accordingly, Everglades Community Association
opcrates 3 certified CHDOs throughout Florida in Collier, Manatee, and Miami-Dade counties
utilizing the same staffing relationships, Everglades Community Association and its subsidiaries
have developed over 1,000 units throughout Florida, It is common practice for non profits to
create new corporate cntities I()r each new housing development. As a result, staff remains on the
parent corporation's payroll for administrative expediency, Big Cypress retains the staff talent by
absorbing the appropriate cost of their share of the parent corporation's payroll cost.
0902-10:-2557
218
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Chilpter 8 of Building HOME (page 8-11) specifically provides for alternative staffing plans that
would allow this staffing arrangement to satisfy the requirement for staff capacity and
experience, Big Cypress Housing Corporation developed and owns the 79-unit Main Street
Village in Immokalee, In addition, Steve Kirk, President and Executive Director received a
national award from the Housing Assistance Council in Washington, D,C. in December 2006 for
his efforts to develop housing for migrant farm workers, In essence, it is our opinion, that this
CHDO meets the HOME requiremcnts in substance over form,
General
Collier County is confident that all three organizations have been appropriately certified as
Community Housing Development Organizations (CHDOs) and that all expenditures are in
compliance with HUD HOME regulations, The HUD CHDO Certification checklist will
continue to be used annually for recertifying all organizations seeking CHDO status in Collier
County,
Current Year Status
The HUD CHDO Certification checklist is used annually to recertify all organizations seeking
CHDO status in Collier County, It is the responsibility of one Grant Coordinator to certify the
CHDO status which is then confirmed by a member of the HHS management team, All
paperwork is contained within the files of the organizations seeking CHDO status,
CCHDC.: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on CCHDC's By-laws, corporate resolution and board list.
EASF: As part of the recertification process, Collier County Housing and Human Services
requires ClIDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on EASF's by-laws, board resolution, and board list.
BCHC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on Big Cypress' by-laws, board resolution and board list.
0902-10.12557
219
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-4
Federal Agency:
Program:
CFDA Number:
Award Numbers:
Award Years:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
We recommend thorough research and review of CHDO requirements prior to entering into a
contractual agreement, Additional review and approval procedures should be developed with
respect to CHDO expenditures to ensure that all conditions are met prior to the release of any
CHDO funds, We recommend formal documentation of all CHDO requirements and controls,
A1anagement '5 Re.\ponse
Collier County reviewed HUD HOME rules and made the determination that the Collier County
Housing Development Corporation (CCHDC) was acting as a developer in the case of the Cirrus
Pointe project. The joint venture agreement between comc and Jim Fields states that both
parties are responsible for the development of the project. This contractual agreement details the
property owncr and the CHDO's specific obligations to bring this project from conception to
completion, "The parties desire to form a joint venture for the development and sale of the parcel
according to this agreement. The parties hereby create a Joint Venture for the construction and
sale of 108 residential condominium units on the parcel." In addition, the CHDO will be
involved in efforts to secure additional financing for this project and the prequalification and sale
of the affordable units, HUD encourages CIIDO's to develop partnerships in order to more
successfully develop, construct, finance and sell affordable housing, According to HUD
regulations a CHDO is defined as a "Developer" when it "has a contractual obligation to a
property owner to develop a project." In addition, "In the Developer role, the CHDO carries out
some or all of the principal project development activities," (Building HOME pgs 8-12 and 8-
15), On January 16, 2007, staff requested clarification from the Miami HUD office on this
matter.
Corrective Action: Attend training on CCHDO's sponsored by the National Association fllr
County, Community and Economic Development in June, 2007 and update the certification
checklist and policies and procedures to retlect thc training within 30 days,
0';0:>1032557
720
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Because of the transition of staff members in Housing and Human Services, attendance at the
CHDO training in June was not possible, This training was attended by staff and all internal
practices and procedures were updated to reflect any changes from the training, In a conference
call with the Miami Field Otlice, it was determined that HUD would not render an opinion based
on the audit. For future CHDO contractual agreements, technical assistance will be requested to
clarify CHDO requirements and all proposed CHDO expenditures will be reviewed to ensure
that all conditions are met prior to the release of funds,
Finding 2006-5
Federal Agency:
Program:
CFDA Number:
Award Number:
Award year:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14,239
M-05-UC-120217
2005
Recommendation
We recommend the County review any future joint venture agreements that are associated with
CHDO set-aside funds and ensure that the requirements described above are met prior to the
expenditure of HOME funds,
Management's Response
Collier County will continue to review all joint venture (JV) agreements as an integral part of its
evaluation of HOME CHDO projects and their compliance with HUD regulations,
Current Year Status
Staff attended Joint Venture training on April 19, 2007, The staff members then provided in
house training for the rest of the Grants staff on July 16, 2007, Legal documents continue to be
reviewed by the County Attorney, The contract with the Cirrus Pointe was extended by the
Board of County Commissioners for the work to be completed by 12/09, Staff is continuing to
monitor this project. Although the project is permitted, due to the downturn in the housing
market, no construction has commenced at this time, Housing and Human Services grants staff is
providing technical assistance to the developer to ensure a successful completion of this project.
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-6
Federal Agency:
Program:
CFDA Number:
Award Number:
1\ ward Year:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14,239
M-03-UC-120217
7003
Recommendation
We recommend the County develop and utilize a checklist describing all documentation
requirements for real property acquisitions, Management level personnel should review and
formally approve all significant steps (as described on the checklist) in the property acquisition
process, We also recommend sending any future Uniform Relocation Act (URA) letters via
"certified" mail to document compliance with the above-noted requirements,
/vfanagemenl '.I' Response
With regards to this land acquisition activity, the seller was delinquently notified of all URA
requirements by the co-developer of the project, Benelicial Communities, Collier County has
implemented a project checklist requiring management approval certifying URA requirements
have been met by sub-recipients prior to disbursement of funds,
Current Year Status
Stan attended URA training in April 2007, Policies and procedures were updated to reflect the
training in July, 2007, Subrecipients will receive training and technical assistance on policies and
procedures regarding the Uniform Relocation Act. Appropriate paperwork will be on file,
including documentation of URA lettcrs sent by certified mail.
Q')()2.1032557
222
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-7
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217
2003,2004
Recommendation
As noted in this finding, the County has already corrected this error. This was the first year the
County utilized HOME funds for a tenant-based rental assistance (TBRA) program, In the future,
we recommend careful review of all HOME regulations and guidance when starting
programs/projects that are new to the County,
Management's Response
Collier County has corrected this situation,
Current Year Status
Collier County Housing and Human Services will carefully review all procedures and regulations
before starting new programs, Staff members will attend the requisite training as it is offered and
request technical assistance from the Miami Field Office, The department will scrutinize
administrative costs and ensure these costs are expended from the appropriate categories,
0902-1032557
223
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-8
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14,239
M-03-UC-120217. M-04-UC-120217, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend the County develop detailed policies and procedures with respect to HOME
match and provide training for all personnel involved in the HOME match process, As part of
this process, the County needs to develop procedures to separately identify SHIP "match" loans
and ensure repayment of these loans is deposited into the HOME Investment Trust Fund local
account. The County should revise and re-file its 2006 match report with HUD, based upon the
new procedures,
A1anagement '.I' Re;ponse
No HOME activities using SHIP match have been re-paid to Collier County, The situation
described in the recommendation has not occurred, Collier County will develop a detailed policy
and procedure to handle the re-payment of matched funds should the situation ever arise,
Current Year Status
The County uses SHIP tunds as match contribution to the HOME funds, HOME recipients that
receive SHIP match will be identified and setup in IDIS, A written procedure to address this
issue has been completed,
00U2.I032557
224
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-9
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U,S, Department of Housing and Urban Development
Community Development Block Grant (CDBG)
#14,218
B-04-UC-120016, B-05-UC-120016
2004,2005
Recommendation
We recommend Collier County Human Services provide payroll and/or other documentation to
support the cost of providing intake services, Any costs that cannot be supported by underlying
documentation should be returned to the CDBG program,
We recommend the County adhere to the payment and documentation standards established in its
contractual agreements, If changes are considered necessary, the County and its subrecipient
should amend the appropriate sections of the agreement,
The County should carefully consider all docunlentation and monitoring requirements prior to
entering into subrecipient agreements for medical-related services and other "Public Services"
(as defined by the CDBG program), Such contracts often require significant oversight from both
a programmatic and financial management (documentation review) perspective,
Management's Response
All reimbursements made for these projects were made in accordance with the executed
contracts, Management continues to ensure that programmatic and fiscal controls are in place for
all public service projects and other CDBO eligible activities,
Current Year Status
This project was closed out on October 19, 2007, During the monitoring, it was observed that
each file contained sufficient documentation to support the cost of providing intake services,
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-10
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward Year:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14,239
M-05-UC-120? 17
2005
Recommendation
The County utilized this program income prior to year-end and developed a process to
incorporate program income into its cash draw process, We recommend the County update its
written policies and procedures for cash draws to ref1ect the requirements associated with
,
program Income,
Management ',I' Response
Collier County concurs with this finding, Stan has developed policies and procedures to address
this situation as described by the auditor in the context/effect section above,
Current Year Status
The County received Home program income for the first time in FY 2006, The income was
spent, but not drawn in lDlS, Procedures are in place to ensure all future program income are
spent and drawn in IDIS before entitlement funds are used,
0'-102-10325')7
226
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006- II
Federal Agency:
Program:
CFDA Number:
Award Nwnber:
Award Year:
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217
2003
Recommendation
Using reasonable allocation methods, we recommend the County determine and docwnent the
amount/cost of land associated with the 4 single-family units and the amount associated with the
51 apartment units, The County should then either:
(1) require Big Cypress to return the portion of HOME funds associated with the 51-unit
apartment complex; or
(2) amend its contractual agreement with Big Cypress to include the 51 units of rental
housing and impose the applicable "period of affordability" requirements for the
HOME program,
We also recommend the County clearly describe the intended use of HOME funds in its
contractual agreements, The County should not approve and fund HOME expenditures that are
not detailed in the contract "scope of work",
Management's Response
Collier County has amended this contractual agreement effective March 2, 2007 to include the
51 units of rental housing and the applicable period of affordability,
Current Year Status
This contract was amended in March 2007 to include all 55 units, All legal contracts, including
the scope of work, are reviewed by the County Attorney, The scope of work for each project
clearly reflects the intended use of all grant funding,
090}-l032557
227
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-12
CFDA Number:
Award Number:
A ward Year:
U,S, Department of Housing and Urban Development
Community Development Block Grant (CDBG) and
Home Investment Partnerships Program (HOME)
#14,218 and #14,239
M-05-UC-120717, B-05-lJC-120016
2005
Federal Agency:
Program:
Recommendation
We recommend the County continue utilizing the timesheet documentation process it developed
in FY 2006,
lvfanagement 's Response
Collier County will continue utilizing the limesheet documentation process developed in FY
2006,
Current Year Status
Collier County Housing and Human Services continues to utilize the timesheet documentation
process for all grants staff members, Any new employees hired are also trained on the time sheet
documentation process, See also finding 2007-11 above,
Finding 2006-13
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward Year:
U ,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14,239
M-03-LJC-120217. M-04-lJC-120717, M-05-UC-120217
2003.2004.2005
Recommendation
We recommend the County carefully review the language of all HOME contracts to ensure
compliance with 24 CFR 92,504, Written agreements should specifically address each provision
as described in this IIOME regulation,
041J2.]1J3:!S57
228
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management's Response
Collier County will review all contractual agreements to ensure they comply with all
requirements of 24 CFR including 92,504, Regarding the Big Cypress deed restrictions
referenced above, the developer requested an additional change to reflect a revised legal
description, This agreement has been reviewed by the County attorney's office and will be on the
agenda for approval by the Board of County Commissions in July 2007, All agreements are
reviewed by the County attorney's office, Management will pursue review by HUD source for
compliance with HUD legal sufficiency,
Current Year Status
The contract in question has been amended and approved by the Board of County
Commissioners, Additionally, the contracts from Housing and Human Services have undergone
a rigorous review process by the County Attorney, Purchasing and staff members with the Clerk
of Courts, With the approval of the 2009 Action Plan by the Board of County Commissioners,
contract templates will be included and submitted to HUD by May 15,2009,
Finding 2006-14
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
V,S, Department of Transportation
Highway Planning and Construction
#20,205
195431
October 1,2005 - September 30, 2006
Recommendation
KPMG recommends that the County implement procedures to ensure that Davis-Bacon Act
requirements are included in contracts and that certified payrolls are obtained from contractors
and subcontractors when required,
0902-]032557
229
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this finding; however, proper steps to assure this problem does not
occur in the future have already been taken, This finding pertains to a construction contract that
was let in 2004, At the time the contract was let, the Purchasing Department was not aware that
this project was to be grant funded and hence did not insert the requirements raised under the
finding, The issue of grant compliance in certain County contracts was brought to our attention
in a subsequent annual audit finding, Purchasing staff formally addressed this issue in March
2006 by modifying the pre-bidding checklist. The modified list includes a determination of the
funding source, If grant funds are part of the revenue for the project, the Purchasing staff inserts
the appropriate additional conditions to the bid and contract terms,
Current Year Status
A new Grants Coordinator with prior grant compliance experience was hired in June of2007, All
newlv executed LAP-funded and FTA-funded contracts continue to include the Davis-Bacon Act
~
requirements and arc reviewed for updates, Currently, there are no non local LAP projects in the
construction phase that would require the collection of certified payrolls, A written procedure has
been developed for future contracts which require certilied payroll collection, This procedure
will include informing contractors at pre-bid meetings and post-award meetings that Davis
Bacon applies, and certified payroll records are a requirement of the project. Internal procedures
include informing project managers and budget analysts of Davis Bacon requirements as well as
identifying which projects require payroll certification compliance, The Grants Coordinator will
monitor collection ofthe reports and be the official holder of record,
Finding 2006-15
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward Year:
U ,S, Department of Agriculture
Watershed Protection and Flood Prevention
#10,904
69-4209-6-1617
October 1,2005 -.. September 30, 2006
Recommendation
The County should implement procedures to ensure that special provisions are included in
contracts when required by grant agreements,
(I'J02.IO_,2557
'30
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this finding; however, the contract was placed by the Purchasing
Department prior to the event that beeame the basis for the grant. The work was ordered by the
Stormwater Management Department pursuant to the clean up and removal of debris from
County drainage canals following Hurricane Wilma, The contract was placed by the Purchasing
Department several months prior to the event. The contract is available for use by any County
department and is not linked to a particular funding source or end user.
Current Year Status
A new Grants Coordinator with prior grant compliance was hired in June of 2007 and will
monitor all grants within the Transportation Division to ensure projects using grant funded
sources are properly procured following the requirements specific of the grantor.
Finding 2006-16
State Agency:
Program:
CFDA Number:
Award Number:
Award Year:
Florida Department of State
State Aid to Libraries
#45,030
06-ST-12
October I, 2005 - September 30, 2006
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained,
Management's Response
Management concurs with this finding, This reporting issue is related to staff turnover and
implementation of a new library automation system, Management will ensure that when staff
members are hired, they are trained to run the appropriate reports and cross trained with other
staff members, This will provide additional staff that can run and reproduce the reports when
needed and to show from where the information was derived, Prior to submittal, all reports will
be reviewed by cross trained staff and the director to verify the accuracy and completeness of
information provided, The Library will retain supporting documentation to be made available
after reports are submitted,
0902-1032557
231
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Director is compiling and reviewing all reports, with assistance from current employees, Library
has been unable to afford additional training from vendor. However, vendor is implementing an
on-line training program that will be evaluated and used if it appears to meet the Library needs
for report training, Library consulted February 23, 2009, with vendor concerning this newly
established on-line training program, Training program roll-out should be complete in Summer
2009, Library Director and one Branch Manager are scheduled to attend a general data reporting
training session on March 25, 2009, Although not specifically about Library's automation
system, the class should provide additional assistance in using standard office programs to
evaluate specific library data, Records and paper trail of information used as basis for reports are
being archived locally, Two additional staff members have been designated to report on and keep
track of particular data elements that are used to compile reports,
Finding 2006-17
Program:
CFDA Number:
Award Number:
Award Year:
Florida Department of Elder Affairs/Area Agency on Aging for
Southwest Florida, Inc,
Communitv Care for the Elderlv
~ '
#65,010
CCE 304,203,06, CCE 302,203,05
July I, 2005 - June 30, 2006 and July 1, 2006 - June 30, 2007
State Agency:
Recommendation
The County should ensure authorization by someone other than the preparer is obtained in order
to properly segregate the duties of requesting and approving state reimbursement requests,
Management's Response
Management concurs with the finding and has implemented practices and procedures to resolve
this issue, The required reporting duties of preparer and approver have now been delegated to
separate individuals, Fiscal support staff has been trained to prepare the expenditure and request
for funds reports and have now accepted this responsibility, The reports will in turn be reviewed
for completeness and accuracy by the accounting supervisor, who will then sign off as the
approver,
09lJ:!-I0325'i7
232
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
The accounting staff implemented the practices and procedures as outlined in the Management's
Response, Fiscal staff has been trained to prepare the reports and now completes them with great
accuracy, The supervisor continues to sign off on the reports for completeness, timeliness and
accuracy,
Finding 2006-18
State Agency:
Program:
CFDA Number:
Award Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52,901
2003/04, 2004/05
Recommendation
Reconciliations of both revenue and expense (between the SHIP Annual Report and the general
ledger) should be formally documented, reviewed, and approved, Policies and procedures should
be written to describe the entire reporting process, including reconciliation controls, the manner
in which data is compiled and the documentation to be maintained,
idanagement's Response
As indicated in the finding the reconciliation of the SHIP report and General Ledger has been
completed and are correct. The SHIP Annual Report submitted to the State was correct. A policy
and procedure has been implemented requiring reconciliations to be completed for the SHIP
program on a monthly basis,
Current Year Status
Staff is working towards a monthly reconciliation of the SHIP program on a monthly basis, See
current year finding 2008-5 above,
Finding 2006-19
State Agency:
Program:
CFDA Number:
A ward Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52,901
2004/05
0902-]032557
233
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
The County budgeted for increased SHIP activity in FY 2007 and believes that they will meet the
encumbrance and expenditure requirements as of June 30, 2007, The County periodically
reviews the expenditure and encumbrance levels of the SHIP program, We recommend written
policies that address this process and formal documentation of this control on a quarterly (or
more frequently) basis,
Management's Reclponse
Collier County agrees with this finding, however all 2004/2005 SHIP funds were not only
encumbered but also expended by December 31, 2006c six months prior to their statutory
expenditure deadline, Collier County has amended its LHAP to allow greater flexibility to
encumber and expend all SHIP funds consistent with statutory requirements, The State of Florida
was notified of the situation prior to July 7006 and agreed to the County's plan to encumber and
expend the SHIP funds in the fall of 2006,
Current Year Status
Due to market conditions, the 2004/2005 funds could not be encumbered in a timely manner,
The State of Florida was noti tied of the situation and an extension was given, The SHIP
coordinator keeps a log on encumbered and spent activities,
Finding 2006-20
State Agency:
Program:
CFDA Number:
A ward Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SIllP) Program
#52,901
2003/04, 2004/05, 2005/06
Recommendation
We recommend the County continue utilizing the timesheet documentation process it developed
in FY 2006,
Management ',I' Re.lponse
Collier County
2006,
will continue utilizing the timesheet documentation process developed in FY
U9(12.IOJ2557
234
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services continues to utilize the time sheet documentation
process for all grants staff members, Any new employees hired are also trained on the timesheet
documentation process, See also finding 2007-11 above,
09U2-1032557
235
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Members of the Board of County Commissioners
Collier COtmty, Florida:
Management Letter and State Reporting Requirements
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 as of and for the year ended
September 30, 2008, which collectively comprise Collier County, Florida's basic financial
statements and have issued our report thereon dated February 26, 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, We have also issued Our
report dated February 26, 2009, on our consideration of Collier County, Florida's internal control
over financial reporting and on compliance and other matters based on an audit of financial
statements performed in accordance with Government Auditing Standards, 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 10,550,
Rules of the Auditor General, which govern the conduct of local governmental entity audits
performed in the State of Florida,
The suggestions included in this letter, which resulted from our consideration of internal control,
elVer financial reporting are submitted to assist in improving accounting procedures and controls,
. CURRENT YEAR FINDINGS AND RECOMMENDATIONS
lere are no current year recommendations,
I
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S1I ERNST & YOUNG
B. ST A TUS OF PRIOR YEAR RECOMMENDATIONS
The following is a summary of prior year recommendations that were not repeated in the current
year recommendations, were not implemented, or were only partially implemented by the
County during the current year,
Prior Y cars' Observation
~~---
2007-0 I Self insurance
Status
Self insurance reserves are reviewed on an on-
going basis taking current and long range plans
of the County into consideration.
Implemented
2007-02 Inventory pricing
7007-05 Program change
2007 -06 Logical access
Implemented
Discussions are underway regarding the
establishment of ongoing reserves for
uncollected receivables,
Implemented
The recommendations made are consistent
with our implementation philosophy and
long term plans, Our long term plan favors
twO factor authentication rather than
password complexity as a means to
achieve the same end, We will take the
recommendations under advisement as we
continue our research and planning,
2007-03 Inventory - expensing low-cost items
2007 -04 Accounts receivable
C. OTHER REQUIRED COMMUNICATIONS
The Rules of'the Auditor General, Section 10,554 (l)(i)(I), require that we address in the
management letter whether or not corrective actions have been taken to address significan'
findings and recommendations made in the preceding annual financial audit report, The status 0
recommendations made in the preceding annual linancia\ audit is included above,
As required by the Rules of'the Auditor General, Section IO,554( I )(i)(2), the scope of our au(
included a review of the provisions of Section 218.415. Florida Statutes, regarding t
investment of public funds. In connection with our audit, we determined that Collier Coun
Florida complied with Section 218.415. Florida Sratures,
?
-
.",
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
management, accounting procedures, and internal controls, Current year recommendations to
improve Collier County, Florida's financial management, accounting procedures, or internal
controls are included above,
The Rules of the Auditor General, Section 1O,554(1)(i)(4), require that we address in a
management letter any violations of provisions of contracts and grant agreements or abuse that
have an effect on the financial statements that is less than material but more than
inconsequential. The results of our audit disclosed no violations of provisions of contracts and
grant agreements or abuse that would have an effect on the financial statements that is less than
material but more than inconsequentia1.
The Rules of the Auditor General, Section 1O,554(1)(i)(5), require disclosure in the management
letter of the following matters, if not addressed in the auditor's report on internal control over
financial reporting and on compliance and other matters or in the schedule of findings and
questioned costs, and are not clearly inconsequential:
(a) Violations of laws, rules, regulations, and contractual provisions or abuse that have
occurred, or are likely to have occurred, would have an immaterial effect on the
financial statements, and were discovered within the scope of the audit;
(b) Control deficiencies 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.
Ie results of our audit disclosed no violations of laws, rules, regulations, and contractual
)visions or abuse, no improper or illegal expenditures, and no control deficiencies other than
' internal control recommendations included above,
,Rules of the Auditor General, Section 10,554(1)(i)(6), also require that the name or official
and legal authority for the primary government and each component unit of the reporting
,y be disclosed in the management letter, unless disclosed in the notes to the financial
ments, In that regard, Collier County, Florida was established under Chapter 107, Section I,
da Statutes, The legal authority for Collier County and its component units are discussed in
1 to the financial statements,
3
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The Rules otthe Auditor General, Section 10.554(1 )(i)(7)(a), state that a management letter shall
include a statement as to whether or not a local governmental entity is in a state of financial
emergency as a consequence of conditions described in Section 218,503( 1), Florida Statutes,
Management of Collier County, Florida has determined that Collier County, Florida is not in a
state of financial emergency as defincd in Section 218,503(1), In connection with our audit of the
financial statements of Collier County, Florida, the results of our tests did not indicate that
Collier County, Florida is in a state of financial emergency as a consequence of the conditions in
Section 218.503(1),
As required by the Rules of the Auditor Ueneral, Section 1 0,554( 1 )(i)(7)(b), we determined that
the financial report for the year ended September 30, 2008 to be filed by Collier County, Florida
with the Florida Department of Financial Services pursuant to Section 218,32(1)(a), Florida
Statutes, is in agreement with the annual fmancial audit report for the current audit period,
As required by the Rules otthe Auditor Ueneral, Sections 10,554(1)(i)(7)(C) and 10,556(7), we
applied financial condition assessment procedures, It is management's fesponsibility to monitor
the County's financial condition, and OUf financial condition assessment was based in part on
representations made by management and the review of financial information provided by same,
This report is intended solely for the information and use of the Board of County
Commissioners, management 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,
~y
L.L.'P
February 26, 2009
4
ANNUAL DEBT REPORT
(Unaudited)
Pursuant to the Collier County Debt Policy the following Tables and Summary Debt Statement
were prepared for the fiscal year ended September 30, 2008,
Table I, Calculation of Collier County General Governmental Debt Ratio
Table 2, Calculation of Collier County Enterprise Debt Ratios
Summary Debt Statement for Fiscal Year 2008
_ _."_""__H.~'~__'._~M~.,'.,.-~,~__~~..~'''''___~__ ,~,_.o~_~."~,.-..-=.........____~._~_________._...,<. .____
TABLE 1
Calculation of Collier County General Governmental Debt Ratio
For the Fiscal Year Ended Septemher 30,2008
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
6th Cent Local Option Gas Tax
5th 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
$ 307,977,046
36,679,020
30,003,927
12,490,300
8,500,145
6,594,170
4,974,571
4,130,403
1,753,546
1,407,155
6,707,255
14,795,623
969,046
5,816,640
Total bondable revenues
$ 442,798,847
Fiscal 2008 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:
Commercial Paper Program
Principal:
Interest:
$ 2,260,000
1,557,813
1,315,000
1,686,744
5,265,000
7,302,294
6,030,000
3,464,440
460,000
4,624,838
640,000
1,016,592
Total fiscal 2008 governmental debt service requirements
$ 35,622,721
Governmental debt ratio of fiscal year 2008 debt service
to bondable revenues (130;(, maximum allowed by policy)
8.04%
Notes:
All revenues are GAAP hased accrual, and debt service is based upon current amortization tables for
the liscal year indicated_ Debt prepayments are not included as debt service requirements_
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TABLE 2
Calculation of Collier County Enterprise Debt Ratios
For the Fiscal Year Ended September 30, 2008
Collier County Water and Sewer District:
Total Sales Revenue
Allowance for Funds Prudently Invested
Miscellaneous Revenue
Total Operating Revenue
$ 96,216,613
570,684
2,904,543
99,691,840
Non-Operating Revenue
5,724,510
Gross Revenue
105,416,350
Less: Operation and Maintenance
Expense (excluding Depreciation)
49,706,694
Net Revenue Available for Debt Service
$ 55,709,656
Total Fiscal Year 2008 Debt Servit:c on Bonds
$ 12,272.149
Net Revenue Debt Service Coverage on Bonded Debt
(100% Required)
454%
Other Pledged Funds:
System Development Fees
Special Assessment Proceeds
S 9,753,332
659,742
Total Pledged Funds
Available for Debt Service
S 66,122,730
Total Fiscal Year 2008 Debt Service on Bonds
$ 12,272,149
Total Pledged Funds Debt Service Coverage on Bonded Debt
(125% Required)
539%
Net Revenue Available for Debt
Service After Payment of Bonds
$ 43.437,507
Total Fiscal Year 2008 Debt Service on
Subordinated Indebtedness
S 8,069,375
Calculated Coverage on
Subordinated Indebtedness
538~/o
Net Revenue Available for System
Purposes
$ 35,368,132
Summary Debt Statement for J'iseal Year 2008
General Governmental Debt:
The governmental debt ratio increased from 7.5% for fiscal year ended September 30, 2007 to
8.0% for fiscal year ended September 30, 2008. The governmental debt ratio is defined as the
ratio of debt service requirements to total bondable revenues. The major reason for the increase
in the debt ratio was a decrease in bondable revenues of 12.')%, or $61,668,845. Governmental
impact fee revenues decreased by 56.7% versus last fiscal year, developmental fees were down
by 23.8% and sales tax receipts were 7.9% less than fiscal year 2007. Total governmental debt
service requirements decreased by 5.8% from fiscal year 2007 to fiscal year 2008. Collier
County's maximum allowable governmental debt ratio is 13.0%, and the County is below the
.
maxImum.
Prepayments totaling $22,621,000 were made on County pooled commercial paper debt. These
prepayments are not shown as part of debt service requirements for purposes of calculating the
governmental debt service ratio.
Total non general obligation borrowings for fiscal year 2008 were $69,391,000, with
$57,391,000 in commercial paper loans and a State Infrastructure Bank Loan of $12,000,000.
Collier County Enterprise Debt:
Currently, the Collier County Water and Sewer District (District) is the only enterprise activity
with bonded debt outstanding. The Collier County Debt Policy does not set a maximum
allowable enterprise debt ratio, but coverage requirements are set by bond covenants. Net
revenues, defined as operating revenues plus non-operating revenues less operating expenses,
excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined
as net revenues plus system development fees and special assessments must cover bonded debt at
125%. Net revenue coverage on bonded debt was 454% and total pledged funds coverage on
bonded debt was 539% for fiscal year 2008. Net revenue coverage increased during fiscal year
2008 as operating revenues increased by 8.9% and operating expenses decreased by 13.8%, due
to cost saving measures put in place by District management and the reclassification of payment
in lieu of taxes from the operating expense calegory. Bonded debt service payments increased
by 22.3% as the Series 2006 bond issue. closed in December 2006, was outstanding for the entire
fiscal year. Total pledged funds coverage went down primarily as a resulI of an 86.5% deerease
in system development f'ees collected.
The District's calculated coverage on subordinated debt, all State Revolving Fund Loans, is
538%. The total pledged funds coverage required by the loan agreements varies bel ween 115%
and 125%.
During fiscal year 2008, the District borrowed $2,401,552 from the State Revolving Fund
program
The District does not maintain separate Renewal and Replacement Reserves for its capital
spending program. The District's current 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
uncertainly and, therefore, increases the District's outstanding debt coverage. Beginning in
FY07 and throughout FY08, the District, operating in a volatile 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 approximated
$167 million. The District recognized that in the period FY07 through FYIO it would be facing
significant increases in fixed operating costs with declining operating margins. The deferral of
significant capital rehabilitation projects in FY07 and FY08 continues to enhance the District's
liquidity and financial flexibility. These decisions protect the District's highly favorable bond
rating; avoids the 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 the
right financial position to respond when the economic environment recovers. However, this
deferral of capital spending has elevated the risk level of everyday operations within the utility.
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.
THIS PAGE INTENTIONALLY LEFT BLANK
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Clerk of the Circuit Court
Year Ended September 30, 2008
With Report of Independent Certified Public Accountants
0811-1001887
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Financial Statements
Year Ended September 30, )008
Contents
Report of Independent Certified Public Accountants .....................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmenlal 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 Revenues, Expenditures. and Changes in Fund Balance --
Budget and Actual -- Court Services Fund....................................................................................6
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance--
Budget and Actual-- Public Records Modernization Fund ..........................................................7
Special-Purpose Statement of Revenues. Expenditures. and Changes in Fund Balance-
Budget and Actual -- Juvenile Assessment Fund ..........................................................................8
Special-Purpose Balance Sheet. Agency funds ............................................................................9
Notes to Financial Statements........................................................................................................1 0
Combining Financial Statements
Combining Balance Sheet -- Agency Funds...................................................................................26
Statement of Changes in Assets and Liabilities - Agency Funds..................................................27
Other Reports
Report of Independent Certitied 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 (iovernmenl Auditing Standards ...........28
Management LeIter....................................................................................................................... .30
1)811-1iJO]88"
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11111 iJJ ERNST & YOUNG
Ernst & Young LLP
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Report of Independent Certified Public Accountants
The 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 the year ended September 30, 2008, 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
been derived from the Clerk's special-purpose financial statements for the year ended
September 30, 2007 and in our report dated March 4, 2008, 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
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Clerk's internal control over fInancial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit proeedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Clerk'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 audit provides a reasonable basis
for our opinions.
As discussed in Note 1, the accompanying special-purpose fInancial statements referred to above
were prepared for the purpose of complying with Section 218.29, Florida Statutes, and
Chapter 10.577(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 Clerk's
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 statemcnts present only the Clerk and do not purport to, and do
not, present fairly the financial position of Collier County, Florida, as of September 30, 2008,
and the changes in its t1nancial position, where applicable, for the year then ended, in conformity
with accounting principles generally acccpted in the United States.
0811-1001887
1
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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 Clerk as of September 30, 2008, and the respective changes in
financial position thereof, and the respective budgetary comparison for the general fund, the
court services fund, the public records modernization fund, and the juvenile assessment fund for
the year then ended in conformity with accounting principles generally accepted in the United
States.
In accordance with Governmenf Audifing Sfandards, we have also issued our report dated
February 8, 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 the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Governmenf Audifing Sfandards 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
statements. The combining information is presented for purposes of additional analysis and is not
a required part of the special-purpose financial statements. The combining information has been
subjected to the auditing procedures applied in the audit of the 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 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 be and should not be used by anyone other than these specified
parties.
~~T
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February 8, 2009
USII-]DOI8S7
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Collier County, Florida
Clerk ofthe Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - General Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Ori2"inal Final Actual (Negative)
Revenues:
Charges for services $ 4,178,500 $ 4,178,500 $ 3,283,635 $ (894,865)
Interest income 16,] 32,300 ] 6, 132,300 32,310,084 ]6,177,784
Total revenues 20,310,800 20,3] 0,800 35,593,719 15,282,919
Expenditures:
General government:
Personal services 7,]88,500 7,270,000 6,306,501 963,499
Operating expenditures 3,378,100 2,776,600 2,014,082 762,518
Capital outlay 518,200 318,200 3,328 314,872
Total expenditures 11,084,800 10,364,800 8,323,911 2,040,889
Excess of revenues over expenditures 9,226,000 9,946,000 27,269,808 17323,808
Other financing sources (uses),
Transfers in:
Collier County, Florida Board of County
Commissioners appropriations ,164,800 364,800 364,800
Other funds 37,000 37,000
Transfers out:
Collier County, Florida Board of County
Commissioners'
Distribution of excess appropriations
DIstribution of surplus interest (9,590,800) (6,758,300) (24,384,015) (17,625,715)
Total other financmg sources (uses) (9,226,000) (6,393,500) (23,982,215) (17,588,715)
Special Item - Bond Expense (3,552,500) (3,287,593) 264,907
Excess of revenues and other financing
sources over expenditures
Fund balance - begirmmg of year
Fund balance - end of year $ - $ - $ - $
See accompanying nutes,
OS11.1001887
5
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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- Court Services Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues
Charges for services , 12,080.5U(J $ 12.080.500 $ 13,000,945 $ 920,445
Interest income 236,700 236,700 59,404 (177,296)
Total revenues 12,317,200 ] 2,3] 7,200 13,060,349 743,]49
Expenditurr.~s:
General government.
Personal servlCCS li,22S,OOO 9,228,000 8,961,905 266,095
Operating expenditures 746707 774,111 335,721 438,390
Capital Outlay
Total expenditures 9,974.707 ]0,002,]] ] 9,297,626 704,485
Excess of revenues over expenditures 2,342,493 2,315,089 3,762,723 ],447,634
Other financmg suurces (uses)
Transfers In hom other funds
Transfers out:
Other funds
Dlstrihutlon of excess cOlin revenue to
the Slate (2,342,493) (2,3]5,089) (3,762,723) (1,447,634)
Total othef finam:mg sources (uses) (2,342,493) (2,315,089) (3,762,723) (1,447,634)
Excess of revenues and other rinancmg
sources over expenditures
Fund balance - begll1ning of year
Fund balance- end of year 5 5 .. $ - $
See accompanying nores.
0811-1001887
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, 2008
0811-1001887
7
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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- Juvenile Assessment Fund
Year Ended September 30, 2008
Original
Final
Actual
Variance
With Final
Budget
Positive
(Negative)
Budget
Revenues'
Miscellaneous
Interest income
Total revenues
$
UOO $
I,JOO $
27,079 $
25)79
1,300
I,JOO
27,079
25,779
Expenditures'
General government-
Operating
Total expendItures
Excess (deficiency) of expenditures over (under) revenues
IOO,U(J(J
100,000
(98,700)
100,000
100,000
(98,700)
100,000
100,000
(72,921)
25,779
Other financing sources'
Transfers 10 from the Collier County, Florida
Board of County Commissioners
Total other financing sources
E:xcess (deficiency) ofrevcnues and other
financing sources over (under) expenditures and other uses
Fund balance - begmmng of year
Fund balance -- cnd of year
98,700
98,700
98,700
98,700
72,921
72,92t
(25,779)
(25,779)
$
- $
- $
11,123
11,123 $
11,123
11,123
,)'ee accompanymg notes.
0:-\11-1001887
8
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Balance Sheet - Agency Funds
September 30
2008 2007
Assets
Cash and cash equivalents
Due from other funds
Total assets
$ 17,848,166 $ 17,273,210
8,846
$ 17,848,166 $ 17,282,056
Liabilities
Due to the Collier County,
Florida Board of County Commissioners
Due to other governments
Due to other funds
Deposits
Total liabilities
$
86,359 $
1,349,382
55,536
907,195
41,619
16,277,706
$ 17,282,056
16,412,425
$ 17,848,166
See accompanying notes.
0811.1001887
9
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements
Year Ended September 30, 7008
1, Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Clerk of the Circuit Court (the Clerk) is an elected constitutional
officer as provided for by the Constitution of the State of Florida. The Clerk's budget is
presented pursuant to Chapter 218. Florida Statutes. Addi1ionally, a budge1 is submitted to the
Florida Clerks of Court Operations Corporation (the Corporation) for the court services fund.
The Clerk's budget including the public records modernization fund and the juvenile assessment
center fund is approved by the Clerk.
The special-purpose financial statements presented include the general fund, special revenue
funds, and agency funds of the Clerk'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 olthe Auditor General jiJr Local Governmental Entity Audits.
Section 10.556(4), Rules olthe Auditor General for Local Governmental Entity Audits, requires
the Clerk to only present fund financial statements. Accordingly, due to the omission of
government-wide financial statements and rclated disclosures including a management's
discussion and analysis, these special-purpose tinancial statements do not constitute a complete
presentation of the financial position of thc Clerk as of September 30, 2008 and the changes in
its financial position for the year then ended in conformity with Governmental Accounting
Standards Board (crASB) Statement No. 34. Basic Financial Statements - and Management's
Discussion and Analysis - jiJr State and Local Governments. but otherwise constitute special-
purpose financial statements prepared in conformity with accounting principles generally
accepted in the United Statcs..
The financial activities of the Clerk. as a constitutional otlicer, arc included in the Collier
County, Florida Comprehensive Annual Financial Report.
The general operations of the Clerk are funded by fees trom third parties, appropriations from
the Collier County. Florida Board of' Coun1y Commissioners (Board), and interest income.
Pursuant to Section 218.37(2) Florida Stat lites. funds remaining in the gcncral fund, at fiscal
year end in excess of' amounts expended, are returned to the Board. Excess revenues returned to
the Board are retlected as transfers out in the Clerk's general lund. Court-related operations are
funded by the State via charging fees and fines and any surplus is returned to the State.
iJ811-IU018W7
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 statements report detailed information about the Clerk. The
focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is reported in a separate column.
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 sheet. Operating statements for these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets.
The Clerk reports the following major governmental funds:
General Fund u 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 - This fund was established to account for court-related filing fees,
service charges, fines, and court costs of the Clerk as mandated by Section 28.35, Florida
Statutes.
Public Records Modernization Fund -- This fund is mandated by Section 28.24(12)(d),
Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and
maintenance of cquipment, personnel training, and technical assistance in modernizing the
public records system of the office. Effective July 1, 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 established to account for revenues and
expenditures applicable to juvenile assessments center.
081]-1001887 ]1
--
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are
classified as court-related and non-court-related. The Clerk's general fund activity, which is
classified as non-court-related, is funded through service charges for recording instruments and
documents into the official records. interest income and through transfers in from the Board.
Excess revenues at the end of the year, due back to the Board, are shown as distributions of
excess appropriations in the general fund.
Court-related activities are funded by the fees chargcd by the Clerk as authorized by Florida
Statutes, for maintaining the County and Circuit Court records, and collecting the tines and fees
assessed by the courts. These court fees are to be used exclusively for funding court-related
operations of the Clerk. The excess of revenues collected over expenditures is returned to the
Florida Clerks of Court Operations Corporation.
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 current liabilities of the tlscal year). For this
purpose, the Clerk considers revenues to be available if they are collected within 60 days after
year-end. Expenditures are recorded when the related fund liability is incurred, except for certain
compensated absences, which are recognized as expenditures to the extent they have matured.
Charges for services, interest income, and other revenues are recognized as they are earned and
become measurable and available to pay liabilities of the current period.
Florida Statutes provide that the amount by which rcvenues and transfcrs exceed annual
expenditures for the general fund be remitted to thc Board immediatcly following the fiscal year
for which the funding was provided or following the tlscal year during which other revenues
were recognized. The amount of this distribution is recorded as a liability and as other financing
use in the accompanying special-purpose linancial statements.
Section 28.37(4), Florida Slalutes. further provides that by January I, each year; for the
preceding fiscal year Octobcr I through Seplember 30, the Clerk must remit to thc Department
of Revenue the cumulative excess of all fees, service charges, court costs, and fines retained by
the Clerk over the amount needed to meet the approved budget amounts established by
Section /8.36, Florida Swtules. The amount of the distribution is recorded as a liability and as
other financing use in the accompanying special-purpose tlnancial statements.
081 J -I (10 18~7
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 expended in governmental funds are capitalized in the basic financial statements
of Collier County, Florida rather than in the governmental funds of the Clerk.
Additionally, the Clerk reports the following fund type:
Fiduciary Funds - Agency Funds .. These funds are 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 measurement 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 matuntIes of three
months or less. Prior to November, 2007 the cash equivalents included deposits with the Florida
State Board of Administration Local Government Surplus Trust Fund Pooled Investment
Account (SBA). Shares of this investment pool (SBA) are based on the pool's share price, which
approximates fair value. The Clerk has withdrawn all funds from the SBA accounts.
Compensated Absences
Full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of
unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees
receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave,
depending on years of service. Vacation leave and sick leave are included in operating costs
when the payments are made to employees. The Clerk does not, nor is he legally required to,
accumulate financial resources for these un-matured obligations. Accordingly, the liability for
compensated absences is not reported in the general fund, but rather is reported in the basic
financial statements ol'Collier County, Florida.
Use of Estimates
The preparation of these special-purpose financial statements requires management of the Clerk
to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabililies at the date of the special-purpose
financial statements and the reported amounts of revenues and expenditures during that period.
Actual results could differ from those estimales.
0811-1001887
13
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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 statemen1s include certain prior year summarized comparative
information in total but not at the 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, 2007. from which the summarized information was derived.
2, Budgetary Process
Florida Statutes govern the preparation, adoption. and administration of the Clerk's annual
budget. The budget of the Clerk is prepared for the general fund transfer and juvenile assessment
funds, which is submitted to and approved by 1he Board. The Clerk also prepares and approves
the budget for the public records modernization fund and the budget related to his recording
function based on anticipated fees.
Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on
or before August 15 and submitted to the Corporation. If the Clerk estimates that projected
revenues are insufficient to meet anticipatcd cxpenditures, the Clerk must report the revenue
deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can
increase fees up to the maximum amounts specified by law to resolve the deficit. I l' a revenue
deficit is still projected, a request can be submitted to release funds from the Department of
Revenue Clerks of the Court Trust Fund.
The budgc1 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 Clerk's transfer budget funded by the Board must be approved by
the Board, amendments to the Clerk's fee budget are at the discretion of the Clerk, and any
amendments of the court budget must be approved by the Corporation for the court services
fund. Expenditures may notlcgally 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 major object expenditure categories are made at the discretion of the
Clerk.
liSII-IOOlgS7
14
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process (coutinued)
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Clerk's cash and cash equivalents was as
follows:
Type
Maturity
Carrying
Value
Credit Rating
Cash on hand
Demand deposits
Total cash and cash equivalents
N/A
N/A
$ 6,150
50,294,940
$ 50,301,090
N/A
N/A
The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each
fund type's portion of these balances is presented as cash and cash equivalents in the
accompanying special-purpose financial statements. Interest income is allocated to each fund
based on its proportionate balance in thc pool.
Cash and cash equivalents as of September 30, 2008 are reported as $32,452,924 and
$17,848,166 in the governmental funds and fiduciary funds, respectively.
Custodial Credit Risk
At September 30, 2008, the Clerk's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
0811-1001887
15
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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 investment of surplus funds. Sections 219.075 and 218.415,
Florida Statutes. authorize the Clerk to invest in the Local Government Surplus Funds Trust
Fund or any intergovernmental investment pool authorized pursuant to the Florida Inter-local
Cooperation Act; Securities and Exchange Commission registered money market funds with the
highest credit quality rating from a nationally recognized rating agency; direct obligations of the
United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits
or savings accounts in banks organized under the laws of the United States and doing business
and situated in the State of Florida, savings and loan associations which are under state
supervision, or in federal savings and loan associations loeated 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 10 place public funds with institutions that participate in a collateral pool under the
Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who
may make additional assessments to ensure that no public funds will be lost.
Interest Rate Risk
The Clerk has no specific investment policy regarding interest rate 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 meet expenses. Interest revenue Irom funds invested is recorded as income of the
offiee of the Clerk and any exeess interest earnings are returned to the Board at year-end as
deseribed in Note 1. Interest income of $32,310,084 reported in the general fund for the year
ended September 30, 2008 consists of $31,584,216 related to interest earned on funds invested
pursuant to Florida Statute 28.33, and $725,868 of interest earned on Clerk funds.
OXII-I\JU1XX7
16
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
S. Receivables
Pursuant to Florida Statutes, Section 28.246, the Clerk shall establish and maintain a system of
accounts receivable for court-related fees, charges, and costs. Since July 1, 2004 the accumulated
receivables through September 30, 2007 totaled $18,936,086. For the current period October I,
2007 through September 30, 2008 accumulated additional receivables totaled $5,337,197 for a
total cumulative receivable balance of $24,273,283. 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 made to collect these and any future balances
outstanding due the Clerk.
For the current year, additional receivables include inter-fund receivables of $4,009,828 due
from the Board of County Commissioners for charges for services by the Clerk to the Board as
permitted by Florida Statutes. The Board of County Commissioners disputes these charges and
has refused to pay as of the date of these linancial statements. These amounts have been reported
as deferred revenues on the balance sheet as they have not been receivable within the Clerk's
period of availability of sixty days of fiscal year end. Clerk management believes these charges
are appropriate under Florida Statutes.
6. Capital Assets
Capital assets used by the governmental fund type operations 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 recorded as expenditures in the governmental funds of
the Clerk and capitalized at cost in the basic financial statements 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 valued at their estimated fair value on the date received.
The Clerk maintains custodial responsibility for the capital assets used by the office. No
depreciation has been provided on capital assets in the accompanying special-purpose financial
statements. However, depreciation expense on these assets is recorded in the basic financial
statements of Collier County, Florida.
Ol:!11.IOOI887
17
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
7. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reflected in the
basic financial statements of Collier County, Florida:
September 30,
2007 Additions
September 30,
Deletions 2008
Accrued compensated absences
$ 1,670,114 $ 1,272,416 $ 1,131,005 $ 1,811,525
Of these obligations, approximately $1,231,837 is expected to be paid during the tlscal year
ending September 30, 2009. These long-term liabilities are not reported in the special-purpose
financial statements of the Clerk since they have not matured.
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 benetlt plan
administered by the State of Florida, Division of Retirement. The System is a detlned benefit
plan for all s1a1e and participating county, district board, community college, and university
employees (Pension Plan). The System also offers eligible employees participation in an
alternative defined contribution plan (Investment Plan). The Clerk 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 Clerk's employees are not determinable.
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 ofticials of their average final compensation for each year of credited
service. Average final compensation is the employee's average of the five highest fiscal years of
salary earned during credited service. Vested employees may retire before age 6~ and receive
bene!its that are reduced 5% 1'01' each year prior to normal retirement age or date. Employees
participating in Ihe Pension Plan are vested after one year or service with no age requirements.
The System also provides death and disability benefi1s. Benefits are established by Chapter 121,
Florida Statutes.
01;]1"10018"''':'
18
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
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 participation in the program does not change
conditions of employment. 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-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. This report may be
obtained by writing to 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.tl.us.
The Clerk is required to contribute an actuarially determined rate. The current rate is 16.53% for
county elected officials, 9.85% for regular employees, 13.12% for senior management, and
10.91 % for DROP employees. The 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, 2008, 2007, and 2006 were $1,213,623, $1,134,120, and $802,329, respectively,
equal to the required contributions for each year.
9, Related Party Transactions
The Board provided funding for the Clerk in the amount of $364,800. The Supervisor of
Elections also provided funding in the amount of a $37,000 transfer. At September 30, 2008, 1he
Clerk had a payable due to the Board of $24,534,005 comprised as follows:
Distribution of excess interest
Agency funds due
Amounts due for various services
Total due to Board of County Commissioners
$ 24,384,015
86,359
63,631
$ 24,534,005
0811+1001887
19
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
9. Related Party Transactions (continued)
Also at September 30, 2008 the Clerk had a receivable due from the Board of $4,848,777
comprised as follows:
Charges for services - deferred revenue
Investment Interest
Amounts due from various services
Total due from Board of County Commissioners
$ 4,009,828
810,744
28,205
$ 4,848,777
Additionally a transfer of $72,921 was made to the Juvenile Assessment fund by the Board.
10. 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. During the year
ended September 30, 2008, the Clerk was charged $7 ,473.959 by the County for participation in
the risk management program.
The County retains the first $350,000 per claim for workers' compensation, and has purchased
outside excess coverage for up to $25 million for employment liability claims and statutory
limits for each injury and illness. The County also provides coverage for $200,000 per claim for
general liability and auto liability coverage and has purchased outside excess coverage for up to
$2 million per claim. Negligence claims in excess of the stalutory limits set in Section 768.28,
Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per
occurrence can only be recovered through an ac1 of the State Legislature. Property claims are
subject to a 5% wind deductible and a $50.000 deductible for all other perils. The County also
retains the first $100,000 per claim/$200.000 per occurrence I()!' public onicial errors and
omissions and crime coverage and has purchased outsidc exccss coverage t(ll' 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.
Ollll-lOOUjH7
20
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
10. Risk Management (continued)
The County is self-insured for health claims covering all of its employees 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
performed each year to estimate the amounts needed to pay prior and future claims and to
establish reserves.
11. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits other than
Pensions.
Plan Description. The Clerk 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. The 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.
As required by Section 112.081, Florida Statutes, retirees, and their eligible dependents are
provided the same health care coverage 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 participate in the 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 Clerk 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 the participating
agencies on a pay as you go basis through the County's self insurance internal service fund. The
Clerk contributes an additional amount to the County per each active employee to accumulate
resources to fund retiree healthcare. The Clerk contributed $9,455 to the group health plan for
OPEB costs during the fiscal year ended September 30, 2008. The Clerk's share of the County's
net OPEB obligation at September 30, 2008 was $21,268, which is recorded in the basic
financial statements of the County.
0811-1001887
21
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1 L Other Postemployment HeaIthcare Benefits (OPEB) 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 offunding 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. Thc notcs to the financial statcments of the County disclose additional
information regarding the other post employment benefit 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, 2008, the Clerk was involved in approximately 8,377 collection cases. These are
court actions designed to collect fees and costs imposed by the courts in criminal cases. The
Clerk was involved in approximately 934 bond forfeiture actions. Those cases involve collecting
forfeitures of criminal appearance bonds. There is currently one case pending before the Second
District Court of Appeal. There are approximately 78 actions for foreclosure of property in
which the Clerk has been a named defendant.
In addition to the above action, the Clerk was a plaintiff in an action to recover funds from a
party who misrepresented information in order to wrongfully seize $20,000 from the Clerk. The
Clerk obtained a judgment in that case and is currently seeking to enforce the judgment. The
Clerk is a party defendant in pending litigation relating to the issuance of a tax deed wherein the
plaintiffs assert in part that the tax deed sale was not properly conducted and that the allegedly
rightful property owner did nol receive notice of the tax deed sale.
Collier County Litigation
The law firm of Woodward, Pires and Lombardo, P.A., represents the Clerk as plaintifT in a
Declaratory Judgment and a request for an accounting action which has been pending since
2004. The defendant is the Board of County Commissioners and two County employees (one of
which has retired). In that action. there was a 14-day hearing to disquali(y counseL which was
081J-l00\887
22
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
12. Claims and Contingencies (continued)
denied after the extended hearing. During the hearing numerous expert witnesses were hired and
called as witnesses. In addition, during discovery, the Clerk learned that the Fire Department
Chief for the Isle of Capri Fire Department, to which some of the financial records pertain, plead
"No Contest" to a misdemeanor violation regarding record keeping and has claimed a Fifth
Amendment right (right not to incriminate himself) in response to questions propounded at
depositions on the case.
During the course of the Declaratory action litigation, and at or about the time of filing the
Motion to Disqualify Clerk's Counsel, the County and a County employee (since retired) each
filed a Petition for Writ of Quo Warranto alleging the Clerk has no right to audit, examine, or
inspect anything other than to determine lawfulness of expenditures and that the time in which
the audit can occur is only between a request for payment being made by the Clerk and payment
of the bill. This action forced the Clerk to employ additional counsel to represent the Clerk as the
Defendant in the Quo Warranto action. The Clerk then employed the law firm of Ackerman,
Link and Sartory to represent the Clerk in the Quo Warranto action.
The cases have now had four separate judges assigned and the Clerk has had to ask to disqualify
one judge because it was discovered that at the direction of the Chief Judge, the Deputy Court
Administrator held exparte communications with counsel for the County and the County
employees about who to appoint as a replacement judge in the case.
On September 24, 2007, the fourth assigned judge (being assigned the case by the Chief Judge
without notice to or at the request of any party, removing the case from the judge that had
presided over the case for over 15 months) after having only been assigned to the case for less
than a month en1ered a final judgment, granting motions for summary judgment filed by the
County. This final judgment is currently on appeal to the Second District Court of Appeals with
Common Cause and the Florida Association of Court Clerks and Comptrollers (FACe) filing
Amicus Briefs on behalf of the Clerk. The cases were fully briefed and argued and the parties are
awaiting the judgment of the Second District Court of Appeals.
There has also been another case which was tiled by the County in 2007 asserting that the
Clerk's office is a budget office of the County and that interest income derived by the Clerk from
investing Collier County taxpayer funds are not income of the Clerk. The Clerk and his counsel
attempted to get the Florida Attorney General to resolve this issue, but the County refused and
0811-1001887
23
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
12, Claims and Contingencies (continued)
filed the case in Circuit Court. This lawsuit concerns the same issues involved in a 2002 case
be1ween the Clerk and the County, initiated by the Clerk, wherein in 2002, the County settled
with the Clerk agreeing that Florida Statute 28.33, which states as follows:
"Investment of county funds by the clerk of the circuit court - The clerk of the circuit court
in each county shall invest county fimds in excess of those required to meet expenses as
provided in s. 21B. 415. No clerk investing such fimds shall be liable jiJr the loss of any
interest when circumstances require the withdrawal ojjunds placed in a time deposit and
needed for immediate payment of county obligations. Except jiJr interest earned on moneys
deposited in the registry of the court. all interest accruingfi'om moneys deposited shall he
deemed income olthe office olthe clerk oj the circuit court investing such moneys and shall
he deposited in the same account as are o/herfees and commissions of the clerk's office. "
was controlling. The Board passed a resolution stating the above as the settlement. The County
and Clcrk are now re-litigating that same issue. On June 18, 2008, the trial court entered a partial
final summary judgment in favor of the county on the interest income issue. The Clerk timely
appealed to the Second District Court of Appeals. The case is fully briefed and oral argument
was held December 3, 2008.
The Clerk believes that the checks and balances for local government, which are in jeopardy,
demand these actions be defended vigorously. The Clerk believes that the fundamental interest
of taxpayers to preserve the traditional role of the Clerk of Courts, as a check and balance in
local government, is too great to abandon.
The Clerk and its counsel believe that the Clerk's position is legally correct. There are claims for
damages and the Clerk is incapable of determining what the outcome will be. If the Court allows
the County to control income trom interest revenue and the County maintains its positions that
they are not required to fund any of the financial functions of the Clerk's office, the Clerk will be
unable to tlmd its operations.
The cost expended by the Clerk in terms of attorney fees and costs related to litigation, during
the year ended September 30, 2008, was approximately $860,000.
U811-]0()1<,\S7
24
Collier County, Florida
Clerk ofthe Circuit Court
Notes to Special-Purpose Financial Statements (continued)
13. Subsequent Event
On September 25, 2008 the Court issued an oral ruling in Case 07-1056-CA dated October I,
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 I, 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
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December 1, 2008 are stayed during
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.310(b)(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January 15, 2009, the Clerk shall account, in writing, to the Board of County Commissioners the
total amount of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January 15, 2009, the Clerk shall transfer from his
accounts, two-thirds of the income received on County funds for the previous calendar month, to
the Board's General Fund. The Court found that a cash or surety bond was inappropriate.
In an opinion filed on January 30, 2009 the Second District Court of Appeal of Florida, in case
2D08-3126, reversed and remanded the trial court's December 18, 2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute 28.33 as "clear and unambiguous" in authorizing the Clerk of
Courts to claim as income interest earned on funds that the Clerk, as custodian of County funds,
has invested on behalf of the County. This opinion will not be final until all proceedings are
concluded.
081]-1001887
25
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Combining Financial Statements
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Collier County, Florida
Clerk of the Circuit Court
Combining Balance Sheet - Agency Funds
September 30, 2008
Jury and
Clerk's Court Ordinary
A2ency Registry Witness Total
Assets
Cash and cash equivalents $ 3,752,011 $ 14,071,318 $ 24,837 $ 17,848,166
Total assets $ 3,752,011 $ 14,071 ,318 $ 24,837 $ 17,848,166
Liabilities
Due to the Collier County, Florida
Board of County Commissioners $ 86,359 $ "" $ ~ $ 86,359
Due to other governments 1,324,545 24,837 1,349,382
Deposits 2,341,107 14,071,318 16,412,425
Total liabilities $ 3,752,011 $ 14,071,318 $ 24,837 $ 17,848,166
0811-1001887
26
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Clerk of the Circuit Court
Statement of Changes in Assets and Liabilities - Agency Funds
Year Ended September 30, 2008
Balance Balance
October 1, Septem ber 30,
2006 Additions Deletions 2007
Assets
Cash and cash equivalents $ 17.273,210 $ 254.]]0.212 $ 25],755,256 $ 17,848,166
Due from other funds 8,846 8,846
Total assets $ 17,282,056 $ 254,]]0,212 $ 253,764,102 $ 17,848,166
Liabilities
Due to the Collier County, Florida
Board of Count)" Commissioners $ 55.5]6 $ 144.582 $ 11],759 86,359
Due to other governments ~07.l95 10,820.07] 10.177,886 1,349,382
Due to other funds 41.619 41.619
Deposits 16)77,706 24],]65,557 24],2]0,8]8 16,412,425
Total liabilities $ 17,282,056 $ 254,]30)12 $ 253,764,102 $ 17,848,166
0811-!OU1XX7
27
0811-1001887
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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
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
remaining fund information of the Collier County, Florida Clerk of the Circuit Court (the Clerk)
as of and for the year ended September 30, 2008, and have issued our report thereon dated
February 8, 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.
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 the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Clerk's internal control over financial reporting. Accordingly,
we do not express an opinion on the effectiveness of the Clerk's internal control over financial
reporting.
A control deficiency 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 significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the enlity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be 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.
081!-lOOIS87
28
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether 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 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 express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
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 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.
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LLP
February 8, 2009
0811-1001887
29
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Management Letter
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
remaining fund information of the Collier County, Florida Clerk of the Circuit Court (the Clerk)
as of and for the year ended September 30, 2008, and have issued our report thereon dated
February 8, 2009.
We conducted our audit in accordance with auditing standards generally accepted in thc 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 February 8, 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 for improvement in accounting procedures and controls.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current year annual audit.
Prior Year Findings and Recommendations
2007-1 Financial Statement Close Process
Observation
In performing the fiscal year )007 audit. we identified certain audit difJerences that resulted in
adjustments to the Clerk's special-purpose financial statements. Noted audit difTerences included
reclassifications and other adjustmcnts in the areas of reporting of cash and cash equivalcnt
balances; revemle and expense recognition. and othcr modifications in the special-purpose
financial statement presenta1ion and disclosurc. These differenccs could have becn identified by
manageme.nt through a more efTectivc financial statcment close process.
0811-100 I g~7
30
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11I1 i!/ ERNST & YOUNG
Recommendation
We recommend that the Clerk's accounting department review its financial statement close
process and establish formalized procedures to ensure the proper reconciliation of all significant
accounts and the appropriate disposition of reconciling items. The Clerk's review of its financial
statement close process should also incorporate the implementation of effective monitoring
controls, such as documented supervisory reviews and approvals at various stages of the process.
In reviewing and implementing changes to its financial statement closing process, the Clerk
should review the duties of its accounting personnel to assess whether it has sufficient
accounting personnel with the appropriate experience and training to effectively perform the
financial statement close process.
Current Status
In the current fiscal year just ended we have drawn on the knowledge of the finance department
to assist in preparation of the documents necessary for the closing and audit processes. The new
personnel in our office are now more experienced after completing a second audit. Additionally,
we have transferred additional personnel into the accounting department to assist us with our
daily processes as well as our year-end closing process.
Other Required Communications
No matters of noncompliance with Section 2 18.4 I 5, 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 other than
the internal control recommendations included above.
The Clerk was established by the Cons1itution of the State of Florida, Article VIII, Section led).
Section 10.554(1 )(i)8., Rules of the Auditor General, requires a statement as to whether or not
the Clerk complied with Section 28.35, Florida Statutes, regarding the budget and performance
standards certified by the Florida Clerk of Courts Operations Corporation. The results of our
audit did not identify any instances of noncompliance that are required to be reported.
0811-1001887
31
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This management letter 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 be and should not be used by anyone other than these specified
parties,
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February 8, 2009
0811-1(J()]SS7
32
".,
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Property Appraiser
Year Ended September 30, 2008
With Report oflndependent Certified Public Accountants
0811-1007792
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Collier County, Florida
Property Appraiser
Special-Purpose Financial Statements
Y car Ended September 30, 200g
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - General 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 Balanee -
Budget and Actual- (Budgetary Basis) - General Fund..............................................................5
Notes to Special-Purpose Financial Statements............................................................................ ...6
Report 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 Slandards.....................................................................16
Management Letter....................................................................................................................... .18
U811.I007N2
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II1, i!l ERNST & YOUNG
Ernst & Young LLP
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Report ofIndependent Certified Public Accountants
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the accompanying 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, 2008 as listed in the table of contents. These special-purpose financial
statements are the responsibility of the Property Appraiser's management. Our responsibility is
to express an opinion on these special-purpose 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 special-purpose
financial slatements are free of material misstatement. We were not engaged to perform an audit
of the Property Appraiser'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 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 well
as evaluating the overall special-purpose financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
As discussed in Note I, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, Chapter
10.557(3), Rules of the Auditor General fiJr Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the
Property Appraiser's 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 statements present 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, 2008, and the changes in its financial position, where
applicable, for the year then ended, in conformity with accounting principles generally accepted
in the United States.
0811-]OOn92
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the general fund of the Property Appraiser as of
September 30, 2008, and the changes in financial 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 issued our report dated
December 10, 2008 on our consideration of the Property Appraiser's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is 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.
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 used by anyone other
than these speeified parties.
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December 10, 2008
()~ll-lIJ077(n
2
Collier County, Florida
Property Appraiser
Special-Purpose Balance Sheet - General Fund
September 30, 2008
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
Totalliabilities
Fund balance
Total liabilities and fund balance
See accompanying notes.
081].1007792
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$ 1,137,662
$ 1,137,662
$ 78,611
943,383
115,668
1,137,662
$ 1,137,662
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Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures,
and Changes in Fund Balance -- General Fund
Year Ended September 30, 2008
Revenues:
Commissions and fees
Miscellaneous
Total revenues
Expenditures:
General government:
Personal services
Operating
Capital outlay
Distribution of excess fees to other taxing distriets
Total expenditures
Excess or revenues over expenditures
Other financing uses:
Distribution of excess fees to Collier County, Florida
Board or County Commissioners
Tota] other linancing uses
Excess of revenues over expenditures and other financing uses
Fund balance, beginning of year
Fund balance, end of year
See accompanying notes.
D~l ] -] 007792
$ 6,68] ,996
683,314
7,365,310
4,813,602
] ,426,467
66,190
] 15,668
6,421,927
943,383
(943,383)
(943,383)
$
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 Ended September 30, 2008
Budget
Original Final
Variance With
Final Budget
Positive
Actual (Negative)
Revenues:
Commissions and fees $ 6,681,996 $ 6,681,996 $ 6,681 ,996 $
Miscellaneous revenues 683,314 683,314
Total revenues 6,681,996 6,681,996 7,365,310 683,314
Expenditures:
General government:
Personal services
Operating
Capital outlay
Total expenditures
Excess of revenues over expenditures
4,914,546 4,914,546 4,813,602 100,944
1,558,333 1,558,333 1,426,467 ]31,866
209,117 209,] 17 66,190 142,927
6,68] ,996 6,681,996 6,306,259 375,737
1,059,051 1,059,051
Other financing uses:
Distribution of excess fees to Collier
County, Florida Board of County
Commissioners
Distribution of excess fees to other
taxing districts
Total other financing uses
Excess of revenues over expenditures
and other financing uses
(943,383)
(943,383)
(115,668)
( 1 ,059,051)
( 115,668)
(1,059,051 )
J
- $
- -$
Fund balance, beginning of year
Fund balance, end of year
$
$
See accompanying notes.
0811.1007792
5
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements
September 30, 7008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Property Appraiser (the Property Appraiser) is an elected
constitutional officer 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 Commissioners (Board).
The special-purpose financial statements presented include the general fund of the Property
Appraiser's oflice. 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 Generaljor Local Governmental Entity Audits.
Section 1 0.556(4), Rules ojthe Auditor General jor Local Governmental Entity Audits, requires
the Collier County, Florida Property Appraiser linancial statements to only present fund financial
statements. Accordingly, due to the omission of government-wide financial statements and
related disclosures, including a managcment's discussion and analysis, these special-purpose
linancial statements do no1 constitute a complete presentation of thc financial position of the
Collicr County. Florida Property Appraiser as of September 30, 7008 and the changes in its
financial position for the year then ended, in conformity with Governmental Accounting
Standards Board (ClASB) Statement No. 34, Basic Financial Statements - and Management '.I'
Discussion and Analysis. for State and Local Governments, but otherwise constitute financial
statements prepared in conformity with U.S. generally accepted accounting principles.
The financial activities of the Propcrty Appraiser, as a cons1itutional officer, are included in the
Collier County, Florida Comprehensive Annual Financial Report.
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Property
Appraiser. The focus of governmcntal fund financial statements is on major funds rather than
reporting fi.mds by typc. Each major fund is reported in a separate column.
0811-I0077lJ}
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 resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets. The Property Appraiser's only governmental fund is the general fund. The general fund is
used to account for the general operations of the Property Appraiser.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Property Appraiser considers revenues to be available if they are collected within 60
days after year end. Expenditures are recorded when the related fund liability is incurred, except
for compensated absences, which are recognized as expenditures to the extent they have
matured.
Substantially all of the Property Appraiser's revenue is received from taxing authorities. These
moneys are virtually unrestricted and are revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenue at the time of receipt; earlier
if the "susceptible to accrual" criteria are met.
Miscellaneous revenue is recognized as it is earned and becomes measurable and available to pay
liabilities of the current period.
Florida Statutes provide that the amount by which revenues exceed annual expenditures be
remitted to each governmental agency immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized.
Florida Statutes further provide that the excess of revenucs over expenditures held by the
Property Appraiser be distributed to each governmental agency in the same proportion as the fees
paid by each governmental agency bear to total fee revenues. The amount of this distribution is
recorded as a liability and as an expenditure or other financing use in the accompanying
special-purpose financial statements.
08] 1-1007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in the general fund operations are capitalized in the basic financial
statements of Collier County, Florida rather than in the governmental funds of the Property
Appraiser.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less.
Compensated Absences
All full-time employees of the Property Appraiser are 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% of allowable accumulated vacation hours and a percentage
of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation time
and sick leave are included in operating costs when the payments are made to employees. The
Property Appraiser does not, nor is he 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 special-purpose financial statements requires management of the Property
Appraiser to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
tinancial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
()~ I j.I(j(J'1792
8
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's
annual budget. The Property Appraiser prepares a budget for the general fund and submits it to
the Florida Department of Revenue for approval. A copy of the approved budget is provided to
the Board of County Commissioners, Any subsequent amendments to the Property Appraiser's
total budget must be approved by the Florida Department of Revenue, The annual budget serves
as the legal authorization for expenditures, Expenditures may not legally exceed appropriations
at the fund level. Appropriations lapse at year end, Budget control is maintained at the
departmental major object expenditure level. Budgetary changes within major object expenditure
categories are made at the discretion of the Property Appraiser.
The original budget is the first complete appropriated budget, The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized,
The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs
from generally accepted accounting principles (GAAP), Certain revenues received from non ad
valorem commissions and other sources and expenditures paid for from these revenues are not
recognized under the budgetary basis of accounting; however, the revenues and expenditures
have been recognized under GAAP,
The actual results of operations in the statement of revenues, expenditures, and changes in fund
balance - budget to actual - general fund are presented on a budgetary basis, Adjustments to
convert the results of operations for the year ended September 30, 2008 from 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
$
683,314
$ 683,314
0811-1007792
9
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Property Appraiser's cash and cash equivalents
was as follows:
Type
Carrying
Value
Cash on hand
Deposit accounts
Repurchase agreements
Total cash and cash equivalents
$ 125
247,214
890,323
$ 1,137,662
Custodial Credit Risk
At September 30, 2008, the Property Appraiser's deposits were entirely covered by federal
depository insurance or by collateral pledged with the state treasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter, in the event of default by a participating financial institution
(a qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Interest Rate Risk
The Property Appraiser has no specific investment policy regarding interest rate risk.
Credit Risk
The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes,
regarding the deposit of funds received and the investment of surplus funds. Sections 219.075
and 218.415, Florida S'talule.I, authorize the Property Appraiser to invest in the Local
Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant
to the Florida Interlocal Cooperation Act: Securities and Exchange Commission registered
money market funds with the highes1 credit quality rating from a nationally recognized rating
agency; direct obligations of the United Stales Treasury: federal agencies and instrumentalities,
or interest-bearing timc deposits or savings accounts in banks organized under the laws of the
United States and doing business and siluated in the Statc of Florida, savings and loan
O1HI-]()()77LJ2
10
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3, Cash and Cash Equivalents (continued)
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 Property Appraiser are reported in the basic financial statements of
Collier County, Florida rather than in the general 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 assets are valued at their estimated fair value on the date received.
The Property Appraiser maintains custodial responsibility for the capital assets used by the
office. No depreciation expense has been provided on capital assets in these special-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,
2007
Net
Increase
September 30,
2008
Accrued compensated absences
$388,562
$16,229
$404,791
Of these liabilities, approximately $25,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Property Appraiser since they have not matured.
0811-1007792
II
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
6, Employee Retirement Plan
Substantially all full-time employees of the Property Appraiser filling regularly established
positions are eligible to participate in the State of Florida Retirement System (System), a
cost-sharing multiple-employer public retirement system 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 Property Appraiser participates in the Elected State Officers' Class. The
plan is administered by the State of Florida. Contribution rates are established statewide for all
participa1ing governmental units. Accordingly, the actuarial information and related disclosures
attributable to the Property Appraisers' 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 rcgular employees, 2% for senior management, and 3% for
County elected officials of their final average compensation for each year of credited service.
Final average compensation is the employee's average of the five highest fiscal years of salary
earned during credited service. Vested employces 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 one year of service with no age requirement. The System also
provides death and disability benefits. Benefits are established by Chapter 121, Florida Stmutes,
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 speeified and limited period !,)r 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 fllf a System employer. The participation in the program does nol 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 bene1its, and begin receiving their monthly retirement
benefit (in 1he same amount determined at relirement, plus annual cost-of-living increases).
OSII-lOl)7"7Li2
12
Collier County, Florida
Property Appraiser
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 accwnulating 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 their Internet site at www.frs.state.fl.us.
The Property Appraiser is required to contribute an actuarially determined rate. The current rate
is 16.53% for county elected officials, 9.85% for regular employees, 13.12% for senior
management and 10.91% for DROP employees based on covered payroll. The contribution
requirements of the Property Appraiser are established and may be amended by the State of
Florida. The Property Appraiser's contributions to the plan for the years ended September 30,
2008,2007, and 2006 were $374,414, $356,873 and $275,095, respectively, equal to the required
contributions for each year.
7. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description. The Property Appraiser 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. The 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.
As required by Section ] 12.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active cmployees. Under Florida Statues, retirees are
eligible to participate in the 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 Appraiser provides no subsidy to the retiree, or
their dependents, for group health care.
0811-]()07792
13
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment HeaIthcare 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
Property Appraiser contributes an additional amount to the County per each active employee to
accumulate resources to fund retiree health care. The Property Appraiser contributed $4,986 to
the group health plan during the fiscal year ended September 30,2008. The Property Appraiser's
share of the County's net OPEB obligation at September 30, 2008 was $11,217, which is
recorded in the basic financial statements of the Coun1v.
-
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 beneiit plan as a whole.
8. Related-Party Transactions
For the year ended September 30, 2008, the Board paid fees to the Property Appraiser that
amounted to $5,952,187. At September 30,2008, the Property Appraiser had a payable due to
the Board of County Commissioners of $943,383 represen1ing the distribution of excess fees.
9. Risk Management
Collier County, Florida (the County) is exposed to various risks ofloss including, but not limited
to general liability, health and life. property and casualty. auto and physical damage, and
workers' compensation. The County is substantially sel!~insured and accounts for and finances
its risk of uninsured losses through an internal service ti.ll1d. All liabilities associated with these
se[[~insured risks are reported in the basic financial statements of the County. During the year
ended September 30, 2008. the Property Appraiser was charged $722,299 by the County for
participation in the risk management program.
OS] l-j0{J77'/2
14
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
9, Risk Management (continned)
The County provides coverage for up to $350,000 per claim for workers' compensation, and has
purchased outside excess coverage for up to $25 million for employer 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
coverage 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 lifetime limit of $2,000,000.
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 materially affect the financial
position of the Property Appraiser.
0811-1007792
15
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Report 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, 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, 2008, and have issued our report thereon dated December 10, 2008. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to tinancial audits contained in Government Auditing
Standards. issued by the Comptroller General of the Unitcd States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Property Appraiser's internal control
over financial rcporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the special-purpose tinancial statements, but not for the purpose of
cxpressing an opinion on the cffectiveness of the Property Appraiser's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Property Appraiser's internal control over financial reporting.
A conlrol deticiency exists when the design or operation of a control does not allow management
or employees, in the normal coursc of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process. or report financial da1a reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood thai a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected bv the entitv's internal conlro!.
- -
A material weakness is a significant deticiency. or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
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Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identifY all deficiencies
in internal control that might be 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser'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, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of the Property Appraiser in a separate
letter dated December 10, 2008.
This report is intended solely for the information and use of the Property Appraiser,
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.
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UP
December 10, 2008
08] 1-]()07792
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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, 2008, and
have issued our report thereon dated December 10, 2008.
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 ot the Auditor General, which govern the conduct of local
governmental audits perfonned in the State of Florida and require that certain items be addressed in this
letter.
We have also issued our report dated December 10, 2008 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.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current annual financial audit.
Prior Year Findings and Recommendations
See Exhibit A for the status of prior year recommendations.
Other Required Communications
No matters of noncompliance with Section 218A 15, Flol'lda 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 other than the internal control
rccommendations included ahove.
The Property Appraiser was established by the Constitution of the State of Florida, Article VIII, Section
I(d),
This management letter is intended solely for the information and use of the Property Appraiser,
management, the 80ard 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.
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UP
December 10, 2008
08] ] -lU(n7'/.~
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Collier County, Florida
Property Appraiser
Status of Prior Year's Recommendations
September 30, 2008
Recommendation
Status
Purchasing Policy
Document verbal approvals for purchases
made without purchase orders
Logical Access
Require each user to possess and utilize
their own user lD
Still applicable.
Implemented.
Require network passwords to provide
adequate protection trom compromise
Implemented.
0811-1007792
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Exhibit A
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Sheriff
Year Ended September 30, 2008
With Report of Independent Certified Public Accountants
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Collier County, Florida
Sheriff
Special-Purpose Financial Statements
Year Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ...................................................................... I
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 Rcvenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - General Fund...............................................................................................5
Special-Purposc Statement of Net Assets-Internal Service Fund .................................................6
Special-Purpose Statement of Revenues, Expenses, and Changes in Net Assets -
Internal Service Fund............................................................... ............. ..... ............. ........... ....... ....7
Special-Purpose Statement of Cash Flows -Internal Service Fund................................................8
Special-Purpose Balance Sheet - Agency Funds ............................................................................9
Notes to Special-Purpose Financial Statemenls.............................................................................1 0
Combining Financial Information
Combining Special-Purpose Balance Sheet - Agency Funds .......................................................26
Required Supplementary Information
Schedule of Funding Progress for the Retiree Health Plan ..........................................................27
Report oflndependent 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 ...........28
Report on Agreed-Upon Procedures Applied to Investigative Funds ...........................................3 I
Management Letter........................................................................................................................ 3 3
0810-0999255
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Report of Independent 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, 2008, as listed in the table of contents. These special-
purpose financial statements are the responsibility of the Sheriffs management. Our
responsibility is to express opinions on these special-purpose 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 special-purpose
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, evidence supporting the
amounts and disclosures in the special-purpose financial statements, assessing the accounting
principles used and significant estimates madc 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 Note 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 for Local Governmental Entity Audits. These special-
purpose financial statements are not intended to be a complete presentation of the Sheriff s
financial position, as of September 30, 2008, and the changes in its financial position, where
applicable, for the year then ended 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, present fairly the financial position of Collier County,
Florida, as of September 30, 2008, and the changes in its financial position, where applicable, for
the year then ended in conformity with accounting principles generally accepted in the United
States.
0810-0999255
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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, 2008, 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 United States.
In accordance with Government Auditing Standards, we have also issued our report dated
February 24, 2009 on our consideration of the Sheriffs 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 Schedule of Funding Progress for the Retiree Health Plan on page 27 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 supplemcntary 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 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 the special-
purpose financial statements and, in our opinion. is fairly stated in all material respects in
relation to the special-purpose tinancial statements taken as a whole.
This rcport is intended solely for thc 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
partics.
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February 24, 2009
081u-0999255
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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, 2008
Variance With
Budget
Budget Positive
Original Final Actual (Negative)
Expenditures:
General government:
Personal services $ 3,812.900 $ 3.812,900 $ 3,945,863 $ (132,963 )
Operating expenditures 156.500 156,500 133,382 23.118
Public safety:
Personal services 120,892,900 120,892,900 122,393,257 (1,500,357)
Operating expenditures 23,322,100 23,322, I 00 22,082,668 1,239,432
Capital outlay 4,487,600 4,487,600 3,086,275 1,401,325
Total expenditures 152,672,000 152,672,000 151,641,445 1,030,555
Excess of expenditures over revenues ( 152,672,000) (152.672,000) (151,641,445) 1,030,555
Other financing sources (uses):
Transfers in:
Collier County, Florida Board of County
Commissioners appropriations 1 52,672.001l 152.672,000 152,672,000
Transfers out:
Distribution of excess appropriations to
Collier County, Florida Board of
County Commissioners (1,030,555) (1,030,555)
Total other financing sources 152,672,000 152,672,000 151,641,445 (1,030,555)
Excess of revenues and other
financing sources over expenditures $ - $ ~~ $
Fund balance- beginning ofyt:ar
Fund balance --- end of year $
See accompanying notes,
081 O~()')992SS
5
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Collier County, Florida
Sheriff
Special-Purpose Statement of Net Assets - Internal Service Fund
September 30. 2008
Assets
Cash and cash equivalents
Other receivable
Due from other funds
Total assets
$ 12,199,418
259,786
100,000
-$ 12,559,204
Liabilities and net assets
Liabilities:
Self insurance claims payable
Net other postemployment benefit obligation
Total liabilities
$ 2,094,000
549,868
2,643,868
Net assets:
Unrestricted
Total liabilities and net assets
9,915,336
$ 12,559,204
See accompanying notes.
081U,099<n55
6
Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenses, and
Changes in Net Assets - Internal Service Fund
Year Ended September 30, 2008
Operating revenues:
Charges for services
$ 21,090,320
Operating expenses:
Claims and claims related expenses
Reinsurance premiums
Net other postemployement benefit expense
Administrative and other expenses
Total operating expenses
Operating income
] 5,]63,709
540,58]
549,868
293,938
] 6,548,096
4,542,224
Nonoperating revenues:
Interest income
Change in net assets
Net assets - beginning of year
Net assets - end of year
198,405
4,740,629
5,174,707
-$ 9,915,336
See accompanying notes.
0810-0999255
7
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Collier County, Florida
Sheriff
Special-Purpose Statement of Cash Flows - Internal Service Fund
Y car Ended September 30. 2008
Operating activities
Cash payments for claims and claims related services
Cash payments for reinsurance premiums
Cash payments for administrative services and supplies
Cash received from other funds for services
Cash received from retirees for services
Net cash provided by operating activities
$ (14,957,905)
(540,581)
(293,938)
21,000,000
490,320
5,697,896
Investing activities
Interest on investments
218,295
Net change in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
5,916,191
6,283,227
$ 12,199,418
Reconciliation of operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Increase in receivables
Decrease in due from other funds
Increase in self-insurance claims payable
Increase in net other postemployment benefit obligation
Net cash provided by operating activities
$ 4,542,224
(33,196)
400,000
239,000
549,868
-$ 5,697,896
See accompanying notes.
0810-0999255
8
Collier County, Florida
Sheriff
Special-Purpose Balance Sheet - Agency Funds
September 30, 2008
Assets
Cash and cash equivalents
Accounts receivable
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.
08]0-0999255
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-'''-''''''"-'-~''~'''-'''- -... - '."-'''~'''.. ,-,,---,~.._.,_.~......,~
$
426,505
1,885
428,390
-$
$
21,335
$
49,261
357,794
428,390
9
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements
September 30, 2008
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
Sheriff s budget is submitted to the Collier County, Florida Board of County Commissioners
(Board) for approval.
The Collier County, Florida SherifT is the chief law enforcement of1icer of Collier County,
Florida (the County) and is responsible for operating the County's corrections facilities. The
special-purpose financial statements include the general lund, special revenue funds, proprietary
fund, and agency funds of the Sheriffs 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 Generaljur Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires
the Sheriff to only present fund financial statements. Accordingly, due to the omission of
government-wide financial statements and related disclosures, including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of the Collier County, Florida Sheriff as of September 30,
2008 and the changes in its financial position and its cash flows, where applicable, for the year
then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement
No. 34, Basic Financial Statements and Management's Discussion and Analysis - for State
and Local Governments, but otherwise constitute financial statements prepared in conformity
with U.S. generally accepted accounting principles.
As a result of the budgetary oversight by the Board and the financial dependency on the Board,
the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive
Annual Financial Report.
Transfers are provided by appropriations hom the Board pursuant to law. Estimated receipts and
budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board
all excess appropriations amlUally; therefore, no unappropriated general fund balance is carried
forward.
01;10-0999255
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 reporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the 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 current liabilities of the fiscal year). For this
purpose, the Sheriff considers revenues to be available if they are collected within 60 days after
year end with the exception of grants, which have a period of availability of one year. Grants are
recognized as revenue as soon as all eligibility requirements have been met. Expenditures are
recorded when the related fund liability is incurred, except for compensated absences, which are
recognized as expenditures to the extent they have matured.
Substantially all of the Sheriff s funding is appropriated by the Board. In applying the
susceptible to accrual concept to intergovernmental revenue, there are essentially two types of
revenue. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures
incurred. Grant revenue is recorded in this manner. In the other, moneys are virtually
unrestricted and are revocable only for failure to comply with prescribed compliance
requirements. These resources are reflected as rcvenue at the time of receipt, or earlier, if the
"susceptible to accrual" criteria are met.
Other revenue is recognized as earned and becomes measurable and available to pay liabilities of
the current period.
0810-0999255
11
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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 inunediately 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 Collier County, Florida Shcriff has four major governmental funds:
General Fund - The general fund is used to account for the general operations of the Sheriff and
includes all transactions which are not accounted for in another fund.
Grant Special Revenue Fund - This fund is used to account for the proceeds of federal and state
grant revenues that are legally restricted to specified purposes.
Prisoner Welfare Fund This fund is used to account for the proceeds of inmate related services
and is legally restricted to specified purposes, which benefit the inmate population.
Federal Equitable Sharing Fund- The revenue irom these funds are 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 fimds are to be used for the specified purpose of the respective
fund.
()8jO-099n5~
12
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. 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 measurement of results of
operations or have a measurement focus. 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 Sheriff on a cost-reimbursement basis. Proprietary
funds are accounted for using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash t1ows.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less. Cash equivalents also include amounts deposited in the Local Government
Surplus Trust Fund administered by the State Board of Administration, a 2a-7 like investment
pool. Shares of the investment pool are based on the pool's share price, which approximates 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 percentage of unused sick leave,
depending on years of service, not to exceed ] ,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, accumulate expendable financial resources for these unmatured
obligations. Accordingly, the liability for compensated absences is not reported in the
governmental funds, but rather is reported in the basic financial statements of Collier County,
Florida.
0810-0999255
13
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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 self-insurance claims
payable. Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Sheriff s annual
budget. The Sheriff prepares a budget for the general fund and submits it to the Board 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 Sheritf 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.
0810-0999255
14
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Sheriffs cash and cash equivalents was as
follows:
Average Carrying Credit
Type Maturity Value Rating
Cash on hand N/A $ 15,981 N/A
Demand deposits N/A 26,316,756 N/A
Local government surplus funds trust fund:
Pool A 8.5 days 692,653 AAAm
PoolB 9.36 years* 31,834 Umated
Total cash and cash equivalents $ 27,057,224
* This immaterial investment is classified as a cash equivalent on the special-purpose balance
sheet.
The total cash and cash equivalent balances at September 30, 2008 were as follows:
General fund
Grant special revenue fund
Prisoner welfare fund
Federal equitable sharing fund
Internal service fund
Agency funds
$ 9,787,900
3,121,781
549,959
971,661
12,199,418
426,505
$ 27,057,224
Custodial Credit Risk
At September 30, 2008, 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 financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
government entity for the loss.
0810-0999255
15
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Interest Rate Risk
The Sheriff has no specific investment policy regarding interest rate risk.
Credit Risk
The Sheriffs policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the
deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415,
Florida Statutes, authorize the Sheriff to invest in the local government surplus funds trust fund;
obligations of the United States Treasury; federal agencies and instrumentalities, or any
intergovernmental pool authorized pursuant to the Florida lnterlocal Corporation Act; Securities
and Exchange Cornmission registered money market fund 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 are under statc supervision, or in
federal savings and loan associations located in the State of Florida and organized under federal
law and federal supervision, provided that any such deposits are secured by collateral as may be
prescribed by law. Additionally, Florida Statutes allow local governments to place public funds
with institutions that participatc 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.
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 LUIP) 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 Bassets
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, 2008, the
Sheriff had $724,487 invested in the Pool. Of this amount, $692,653 is invested in the LGJP.
which is rated "AAAll1" by Standard & Poor's Ratings Services, and $31,834 in the Fund B
Surplus Funds Trust Fund, which is not ratcd by a nationally recognized statistical rating agency.
The LUll' investmcnt is tully liquid and carries a weighted average days to maturity of 8.5 days.
OS]()-OY9'J255
16
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Fund B is accounted for as a fluctuating NA V (net asset value) pool and the fair value factor for
September 30, 2008 was .798385. The Fund B amount has a weighted average life of 9.36 years.
Fund B cash holdings continue to be distributed to participants as they become available from
maturities, sales and received income.
4. Capital Assets
Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier
County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such
assets are recorded as expenditures in the governmental funds of the Sheriff, and are capitalized
at cost in the basic financial statements of 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 the date received. The Sheriff maintains
custodial responsibility for the capital assets used by his office. No depreciation has been
provided on capital assets in these special-purpose financial statements. However, depreciation
expense on these assets is recorded in the basic financial statements of Collier County, Florida.
A summary of changes in capital assets, which are reported in the basic financial statements of
Collier County, Florida follows:
Balance
October 1,
2007
Additions
Balance
Septem ber 30,
Retirements 2008
Machinery and equipment
Less accumulated depreciation
Machinery and equipment, net
$ 57,097,873
(37,200,438)
$ 19,897,435
$ 3,997,937
(7,705,769)
$ (3,707,832)
$ 4,359,799
(4,187,491)
$ 172,308
$ 56,736,011
(40,7]8,716)
$ 16,017,295
08]0-0999255
17
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities
The following is a summary of changes in long-term liabilities, which are reported in the basic
financial statements of Collier County, Florida:
October I,
2007
Increases
September 30,
Retirements 2008
Accrued compensated absences
$ 10,314,977 $ 3.194,868
$ (2,010,778) $ 11,499,067
Of these liabilities, approximately $663,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Sheriff since they have not matured.
6. Interfund Balances and Transfers
Due from and due to other funds at September 30, 2008 were as follows:
Due from
Due to
General fund $ 59,664 $ 100,000
Prisoner welfare special revenue fund 57,664
Federal equitable sharing fund 2.000
I nternal service fund lOO,OOO
$ 159,664 $ 159,664
Interfund receivables and payables generally reprcscnt recurring activities between funds.
Oil I O~09992 55
18
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
7. Related-Party Transactions
The Board of County Conunissioners provided funding for the Sheriff for the year of
$ I 52,672,000. At September 30, 2008, the Sheriff had a payable due to the Board of County
Conunissioners of$I,132,119 comprised of the following:
General fund:
Distribution of excess appropriations
Distribution of interest collected
Miscellaneous pay abies
Agency funds
Total
$ 1,030,555
39,222
13,081
49,261
$ 1,132,119
Additionally, the Sheriff had a receivable from the Board related to services provided to the
County of $298,246 at September 30, 2008.
8. Employee Retirement Plan
Substantially all full-time and part-time 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 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 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 govenunental units. Accordingly, the actuarial
information and related disclosures attributable to the Sheriff s 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, 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 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
regardless of age, are entitled to a retirement benefit payable monthly for life, up to 3% for each
year of credited service times their final average compensation. 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 for regular risk and 55 for special risk and receive retirement
0810-0999255
19
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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 after 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 specitled and limited period for members of the
System, effective July 1, ] 998. 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 Systcm 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 benefits, and begin receiving thcir monthly retirement
benetlt (in the same amount determined at retirement, plus annual cost-of-living increascs).
The System publishes an annual rcport 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, Tallahassec, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.trs.state.tlus.
The Sherif! is required to contribute an actuarially determined ratc. The current rate is 20.92%
for special risk cmployees, 16.53% for county elected officials, 9.85% for regular employees,
13.12% for senior management and 10.91 % for DROP employees based on covered payroll. The
contribution requirements of the Sherit1' are established and may be amended by the State of
Florida. The Sheriffs contributions to the plan for the years ended September 30, 2008, 2007,
and 2006 were $15,179,541, $14,688,803 and $12,207,823, respectively, equal to the required
contributions for cach vear.
.
0810-0999255
20
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 by Employers jor Postemployment Benefits Other Than
Pensions.
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.
At September 30, 2008, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEB plan participants 1,374
Retirees receiving benefits 69
Funding Policy
The Sheriff has the authority to establish and amend funding policy. For the year ended
September 30, 2008, the Sheriff contributed $469,998 to the OPEB Plan.
AnnualOPEB Cost and Net OPEB Obligation
The annual cost (expense) 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 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 Sheriffs annual OPEB Plan cost for the year ended September 30, 2008, the
amount actually contributed, and the changes in the net OPEB Plan obligation.
0810-0999255
21
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required 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
$
1,019,866
1,019,866
(469,998)
549,868
$
549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress
The contributions made for fiscal ycar 2008 were 46% 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. The
covered payroll (annual payroll of active employees covered by the OPEB Plan) was $128.2
million, and the ratio of the UAAL to the covered payroll was 7.3%.
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 luture employment. mortality. and the healthcare cost trend. Amounts
determincd 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.
0810-09')'125'1
22
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
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 offices and provides professional liability insurance to participating
agencies. The Fund provides liability insurance coverage subject to the following limitations:
$3, I 00,000 for any claim involving a single individual, $3,200,000 for any incident which
involves multiple claims and an aggregate of $3,500,000 ultimate net loss per Sheritf during any
policy period. The Sheriff also participates in the Florida Sheriffs' Self-Insurance Fund program
for workers' compensation coverage. The Florida Sheriffs' Association Workers' Compensation
0810-0999255
23
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
10. Self-Insurance Program (continued)
Insurance Trust is a limited self-insurance fund providing coverage for the first $350,000 of
every claim. 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-funded employee health plan for active employees and
retirees. An internal service fund is used to account for the activities of the plan. Excess coverage
has been purchased which provides specific claim excess coverage for 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 including claims
incurred but not yct reported.
Changes in the balance of estimated lOsurance claims payable for the fiscal year ended
September 30, 2008 is as follows:
Balance
October I
New Claims
and Changes
in Estimates
Claim
Payments
Balance
September 30
Fiscal year ending:
2008
$ 1,855,000 $15,196,905 $(14,957,905) $ 2,094,000
0810-099'1255
24
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
11. 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 Sheriff.
Federal and State Grants
Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these
grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the
opinion of management, disallowed costs, if any, would be immaterial to the financial position of
the Sheriff.
0810-0999255
25
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0810-099925:
Collier County, Florida
Sheriff
Schedule of Funding Progress
for the Retiree Health Plan
Actuarial
Accrued VAAL as a
Actuarial Actuarial Liability (AAL)- Percentage of
Valuation Value of Projected Unfunded Funded Covered Covered
Date Assets Unit Credit AAL Ratio Payroll Payroll
101l/2007 $ - $ 9,354,088 $ 9,354,088 0,0% $ 128,182,544 7.3%
08]0-0999255
27
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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, 2008, and have issued our report thereon dated February 24, 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.
Internal Control Over J;'inancial Reporting
In planning and performing our audit, we considered the Sheriffs internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the efTectiveness of the SheriWs internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control
over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over financial reporting that might be significant deficiencies or material
weaknesses. However, as discussed below, wc identified certain defieiencies in internal control
over financial reporting that we consider to be significant deficiencies.
A control deficiency 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 deteet
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control defieiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles sueh that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control. We consider the following deficiency to be a significant
deficiency in internal control over iinancial reporting:
OR10-0999255
28
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2008-1 Accounting/or Grant Revenue
Criteria
GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange
Transactions, sets forth the accounting criteria for revenue recognition of most grants.
Condition
The Sheriff recorded grant funds received as deferred revenue for a particular grant in which
the criteria for revenue recognition pursuant to GASB 33 had been met.
Context
Approximately $7,900 was recorded as deferred revenue as of September 30, 2008 related to
the grant in question.
}"ffect
Revenue is understated.
Cause
The Sheriff had consistently recorded the grant receipts as deferred revenue and recorded the
related revenue when the funds were ultimately expended; however, the criteria for revenue
recognition had been achieved at the time the grant award was received.
Recommendation
We recommend that the Sheriff review grant award documents to determine when the
eligibility criteria in GASB 33 have been achieved.
Management Response and Corrective Action Plan
Future receipts will be booked as current revenue.
OH1(J-0999255
29
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A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control. Our
consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in the internal control that might be significant deficiencies and, accordingly, would not
necessarily disclose all significant deficiencies that are also considered to be material
weaknesses. However, we do not believe that the significant deficiency described above is a
material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheritrs 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, accordingly. we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing S'tandards.
We noted certain matters that we reported to management of the Sheriff in a separate letter dated
February 24, 2009.
This report is intended solely for the information and use of the Sheriff, 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<dT
UP
February 24, 2009
0810-099')255
30
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Ernst & Young LLP
100 Nortile,lst ThinJ Avenue
SUIte /00
Fort LducJerc1a!r', \-Iorida 3:L)(11
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Report on Agreed-Upon Procedures Applied to Investigative Funds
Honorable Kevin Rambosk, Sheriff
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 the investigative funds for the year ended
September 30, 2008. 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 make 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, 2008 and performed the following procedures with respect to the Sheriff s
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. No 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.
. We noted that the un-used funds returned, if applicable, were properly deposited per
review of the corresponding deposit and bank statement detail and noted that the amount
deposited agreed to the amount returned per the "Receipt for Funds Received" form
detail. We noted one instance in which the case number on the "Receipt for Funds
Received" form did not agree with the corresponding case number on the "Disbursement
for Investigation" form, however, no exceptions were noted with respect to the amounts
returned and deposited.
31
0810-0999255
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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, we 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.
~'f
LLP
February 24, 2009
0810.0999255
32
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Ernst & YounQ LLP
100 Northeast ThIIT! Iwcnue
SUite 100
Fort Lduder(Jdle, Florida 33301
Tel:' 1. 954 Ba8 gOOo
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WWWyy.com
Management Letter
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the special-purpose fmancial 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, 2008, and have issued our report thereon dated February 24, 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 February 24, 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 for improvement in accounting procedures and controls.
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:
2007-1 Accounting for Miscellaneous Charges for Services
Observation
Other than operating transfers from the Board of County Commissions (BOCC) and grant funds,
the Sheriff also receives various types of cash receipts such as for direct reimbursement of
certain expenses, charges for services to third parties such as for providing off duty traffic
control and security details at contracted hourly amounts, as well as fees charged for housing of
federal prisoners at specified rates per prisoner housed. We noted that the Sheriff records these
33
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types of receipts in the general ledger as either a reduction to the related expense in the income
statement (i.e., special details) or as a due to the BOCC with no effect in the income statement as
the related revenue is recorded at the BOCC level since the Sheriff is not a fee officer (i.e.,
housing of federal prisoners).
Recommendation
We recommend that the Sheriff review the various types of miscellaneous receipts to determine
if they are a direct reimbursement of expense and properly recorded as such per accounting
principles generally accepted in the United States (GAAP). Alternatively, if the underlying
transaction is a charge for a service, it should be reflected on a gross basis in the Sheriffs
financial statements pursuant to GAAP (i.e., both the revenue and expense reflected in the
income statement) and the budget should be amended accordingly. For example, revenues
received for charges for special details should be reflected as revenue as opposed to netting the
related expense in accordance with GAAP. The Sheriff should investigate whether similar fees
such as those received for housing of federal prisoners should be reflected on a gross basis in the
Sheriff's financial statements pursuant to GAAP. This should not impact the fees remitted to the
BOCC as the revenue would coincide with a corresponding transfer out to the BOCC for the
funds remitted to it pursuant to Florida Statutes Section 30.51.
Management's Current Reclponse
In order to implement this change in reporting for major cash receipt types, we will have to
request that the county Office of Management and Budget draft and process budget amendments
for FY09. We will then have to work with the Budget Ofllce to modify future years' budget
submissions. It is unknown at this timc if the change can be made in the already approved FY09
budget.
Current Year Findings and Recommendations
2008-1 Cash Receipts Process
Observation
As part of the cash receipts process, funds received for deposit into the operating account are
forwarded to the fiscal clcrk (or an alternate/back up clerk) responsible for rcceipt and bank
deposit preparation. The fiscal clerk enters the receipts into the cash management module of
general ledger system and generates a Receiptf(Jr Funds Received form for each individual cash
receipt. A Cash Receipts by Method rcport is generated to indicate the total of the cash receipts
for preparation of the bank deposit. Bank deposits are typically preparcd by the fiscal clerk but
can be prepared also by the cash supervisor or the manager. Once the deposits are prepared, they
0810-0',)99255
34
I'"~
are secured in a safe until the courier arrives to take the deposit to the banlc 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 fmance director can make deposits at the bank.
At month end, the Cash Receipt Summary Report is generated from the system which provides a
query of all cash receipts 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 2008 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
Sheriff s 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 include 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 deposits and investigative funds.
The basic idea underlying segregation of incompatible duties 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 segregated are:
. Custody of assets,
. Authorization or approval ofrelated transactions affecting those assets, and
. Recording or reporting of related transactions.
An essential feature of segregation of incompatible duties/responsibilities within an organization
is that no one employee or group of employees has exclusive control over any transaction or
group of transactions. In addition, a control over the processing of a transaction should not be
performed by the same individual who is responsible for recording or reporting the transaction.
35
08]0-0999255
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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 Sheriff
consider implementing additional monitoring controls over the process such as having someone
independent of the tasks above I) 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 Response
The entire cash receipts process is being reviewed and documented in detail. Controls will be
strengthened where possible given staffing limitations.
2008-2 IT Controls
Policies and Proccdures
-----.----------------.- ---._---
Observation
Formal IT policies and procedures were unavailable at the time of our audit. The lack of formal
defined IT policies and procedures increases the risk that processes will not be followed, which
could lead to:
. Unauthorized and inappropriate changes being migrated to production
. Unauthorized users being granted inappropriate access to systems
Recommendation
We recommend that the Sheriff document IT policies and procedures. They should be reviewed,
updated, and implemented as appropriate to describe the manage change. logical access, and IT
Operations proccsses around the financial system. Also, procedures around updating,
maintaining and communicating such policies should be documentcd.
0810-099')255
36
",
Management's Response
The Sheriff has documented general IT policies and procedures. However, we agree that policies
need to be developed that specifically address the agency's financial system.
Manage Changes
Observation
A central repository is not in place to maintain supporting documentation (i.e. authorized
requests, testing and approval documentation) for changes being made to the financial system.
We noted that the developer, who is responsible for program change development for the
financial system, maintains the documentation within his/her inbox. The risk exists that if a
developer were to leave the Sheriff s office or inadvertently delete any supporting
documentation, there would be lack of an audit trail to show changes to the system were
appropriately authorized, tested, and approved.
Recommendation
We recommend that Collier County establishes a central repository for maintaining change
management documentation to allow evidence to be obtained more efficiently.
Management's Response
Concur. Future changes will be maintained.
Observation
A segregation of duties issue exists in that the developer has access to develop changes and
migrate those changes into the fmancial system production environment. An unauthorized and
unapproved change could be promoted to the production environment increasing the risk of key
financial data/programs being intentionally or unintentionally modified. We noted that instances
exist where the developer has moved changes into production during the 2008 audit period. In
addition, a compensating monitoring control is not in place whereby changes moved to
production are periodically reviewed by someone independent of developing and migrating
changes to validate the changes were appropriately authorized, tested, and approved.
37
0810-0999255
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Recommendation
We recommend that management consider segregating the duties for the development of Changes
from the migration of changes. If this is not feasible for the organization, given resource
constraints, we recommend that management implement a monitoring control to validate that
changes that are placed into the production environment are authorized, tested, and approved.
This review should consist of a person, independent of developing and migrating changes,
reconciling a system generated list of changes that are in the production environment to formal
documentation to support that the change was authorized, tested, and approved by the
appropriate individuals.
Management's Response
Because we do have limited resources and we anticipate additional resource constraints in the
future, it is not feasible to segregate the development and migration duties, but we concur with
the recommendation to implcment a monitoring control.
Logical Security
Observation
The financial system is limited in its password parameter capabilities. The system does not
require a minimum character limit, password complexity, password expiration, or account
lockout. We noted that it is possible to have a "blank" paSsword.
In addition, a formal process is not in placc for monitoring user access (i.e. failed log-on). The
risk exists that an unauthorized individual might gain access to critical data and, depending on
access rights, be able to modify such data.
Recommendation
We recommend that a formal process be established to monitor users' access to determine if any
breach in security occurred. We also recommend that IT reach out to the vendor to determine if
system upgrades or fixes exist that would allow lor increase strength in password controls to
prevent unauthorized access to the system.
ivfanagement's Response
We will investigate the possibility of strengthening password controls.
OiS10-09lJ9255
38
I'"
It should be noted that, while "stronger" passwords would be desirable, there are multiple layers
of password security currently provided. In order to get access to the agency's internal network,
you must have physical access to an agency facility. In the case of the Financial System, that
means access to the Headquarters facility or the purchasing facility. Access to the internal
network also requires login and password, and this password is a "strong" password, requiring a
minimum of 8_characters, alpha, numeric and special characters, password expiration every 90-
days, and account lockout after 3 unsuccessful tries. In addition, the Financial System has to be
installed on the physical workstation, and it has only been installed on a limited number of
machines, most of which are in the Finance Division area which is not only in a controlled
building, but in an area of the building that is further controlled and secured. Once you have
access to a workstation that has Flexgen loaded on it, you need two more separate login and
passwords, one for Flexgen and one for the Financial System itself.
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, 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 I(d).
This management letter is intended solely for 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
February 24, 2009
39
0810-0999255
";'Co' ,.1 \"',J"! "t"..-"!",,,.,]
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Supervisor of Elections
Year Ended September 30, 2008
With Report of Independent Certified Public Accountants
081]-]001894
,._,-_.. ..._,,,--,~~,.------,~..-.-,.~--- .,.-
Collier County, Florida
Supervisor of Elections
Special-Purpose Financial Statements
Year Ended September 30, 2008
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 Balance -
Governmental Funds....................................................... ..... .........................................................4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual -- General Fund........ ..... ........ ..........................................................................5
Notes to Special-Purpose Financial Statements...............................................................................6
Report 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...... ................. .............................................16
Management Letter....... ................................................................................................................ .18
1)811-1(10IS'I4
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I111 $!I ERNST & YOUNG
Ernst & Young LLP
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401 [u~t Jackson Str-ep!
rdmpd, Florida 33602
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Report ofIndependent Certified Public Accountants
The Honorable Jennifer J. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the accompanying 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, 2008, as listed in the table of contents. These special-purpose
financial statements are the responsibility of the Supervisor of Elections' management. Our
responsibility is to express opinions on these special-purpose 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 special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Supervisor of Elections' 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 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, as well as evaluating the overall special-purpose financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.
As discussed in Note I, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.29, Florida Statutes, and
Chapter 10.577(3), Rules of the Auditor General jor Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation 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 statements 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 September 30, 2008, and the changes in its financial position,
where applicable, for the year then ended, in conformity with accounting principles generally
accepted in the United States.
081J-100lk94
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I II i!I ERNST & YOUNG
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 of the Supervisor of
Elections as of September 30, 2008, and the respective changcs in financial position thereof and
the budgetary comparison for the gcncral fund for the year then ended in conformity with
accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, wc have also issued our report dated
December 10, 2008, 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
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.
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.
~-t
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December 10, 2008
IJK11.jD01S94
2
Collier County, Florida
Supervisor of Elections
Special-Purpose Balance Sheet - Governmental Funds
September 30, 2008
Grant
General Special Total
Fund Revenue 2008
Assets
Cash and cash equivalents $ 778,335 $ 112,197 $ 890,532
Accounts receivable 25 25
Due from other funds 1,359 1,359
Total assets $ 778,360 $ 113,556 $ 891,916
Liabilities and fund balance
Liabilities:
Accounts payable
Accrued liabilities
Due to Collier County, Florida Board
of Commissioners
Due to other funds
Deferred revenue
Total liabilities
$ 368,702 $
39,012
- $
368,702
39,012
778,360
87,168
87,168
369,287
1,359
87,168
865,528
369,287
1,359
Fund balance
Total liabilities and fund balance
$ 778,360 $
26,388
113,556 $
26,388
891,916
See accompanying notes.
0811-1001894
3
Collier County, Florida
Supervisor of Elections
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Governmental Funds
For the Year Ended September 30, 2008
Grant
General Special Total
Fund Revenue 2008
Revenues:
Intergovernmental $ 13,323 $ 119,546 $ 132,869
Interest 4,646 4,646
Total revenues 13,373 124,192 137,515
Expenditures:
General government:
Personal services 1,619,698 1,619,698
Operating expenditures 1.857,013 133,520 1,990,533
Capital outlay 119,637 119,637
Total expenditures 3,596,348 133,520 3,729,868
Excess of expenditures over revenues (3,583,025) (9,328) (3,592,353)
Other financing sources (uses):
Transfers in:
General Fund 5,355 5,355
Collier County, Florida Board of
County Commissioners appropriations 3,947.400 3,947,400
Operating transfers out
Special Revenue Fund (5,355) (5,355)
Collier Countv Clerk of Circuit Courts (37.000) (37,000)
,
Distribution of excess appropriations:
Collier Countv, Florida Board of
,
-, .-, .. (322,020) (322,020)
County COnmllSS10ners
Total other financing sources 3,583,075 5,355 3,588,380
Excess of revenues and other financing
sources over expenditures (3,973) (3,973)
Fund balance .. October I, 2007 30,361 30,361
Fund balance - September 30, 2008 $ $ 26,388 $ 26,388
See accompanying noles.
OX 11-1 (1) I ~911
4
Collier County, Florida
Supervisor of Elections
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance ~ Budget and Actual - General Fund
For the Year Ended September 30, 2008
Budget
Original Final
Actual
Variances with
Final Budget
Positive
(Negative)
Revenues
$
- $
- $
13,323 $
13,323
Expenditures:
General government:
Personal services 1,728,500 1,775,650 1,619,698 155,952
Operating expenditures 2,177,900 2,104,539 1,857,013 247,526
Capital outlay 3,500 24,856 119,637 (94,781)
Total expenditures 3,909,900 3,905,045 3,596,348 308,697
Excess of expenditures over revenues (3,909,900) (3,905,045) (3,583,025) 322,020
Other furancing sources (uses):
Operating transfers in:
Collier County, Florida Board of
County Commissioners appropriations 3,909,900 3,947,400 3,947,400
Operating transfers out:
Special Revenue Fund (5,355) (5,355)
Collier County Clerk of Circuit Courts (37,000) (37,000)
Distribution of excess appropriations:
Collier County, Florida Board of
County Commissioners (322,020) (322,020)
Total other financing sources 3,909,900 3,905,045 3,583,025 (322,020)
Excess of revenues and other financing
sources over expenditures
Fund balance - October 1, 2007
Fund balance - September 30, 2008
$
- $
- $
- $
See accompanying notes.
015]]-1001894
5
---.---.".-.- -.---.--"
.-
_.~_._._..
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements
September 30. ')008
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) j{)r approval.
The special-purpose financial statements prcsented include the general fund and grant special
revenue fund ofthe Supervisor of Elections' 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 Generalf(Jr Local Governmental Entity Audits.
Section I 0.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires
the 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 special-purpose financial
statements do not constitute a complete presentation of the financial position of the Supervisor of
Elections as of September 30, 2008, and the changes in its financial position for the year then
ended, in conformity with Govcrnmental Accounting Standards Board (GASB) Statement
No. 34, Basic Financial Statements and AIanagement 's f)iscussion and Analysis--Ior State
and Local Governments, but otherwise constitute linancial statements prepared in conformity
with accounting principlcs generally accepted in the United States of America.
As a result of the budgetary oversight by thc Board and financial dependency on the Board, the
financial activities of the Supervisor of Elections are included in the Collier County, Florida (the
County) Comprehensive Annual Financial Report.
Transfers are provided by appropriations from thc Board pursuant to law. Estimated receipts and
budgctcd general fund balanccs must cqual appropriations. The Supervisor of Elections is
required to refund to the Board all excess appropriations annually; therefore, no unappropriated
gencral fund balance is carried forward.
0811.I(jO\S(n
6
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Supervisor
of Elections. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements for this fund present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net 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 expenditures that are not accounted
for in another fund.
Grant Special Revenue Fund - The grants fund is used to account for the activities of voter
education and poll worker training grants from the State of Florida.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance liabilities of the current fiscal year). For this
purpose, the Supervisor of Elections considers revenues to be available if they are collected
within 60 days after year-end. Expenditures are recorded when the related fund liability is
incurred, except for compensated absences, which are recognized as expenditures to the extent
they have matured.
The appropriations from the Board are the primary source of funds considercd to be susceptiblc
to accrual.
Intergovernmental revenues are recognized when
amounts are available from the grantor.
eligibility requirements are met and related
0811-1001894
7
., -----
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies Practices (continued)
Interest income and other revenues are recognized as they are earned and become measurable
and available to pay liabilities of the current period.
Florida Statutes provide that the amount by which revenues and transfers exceed annual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenues were recognized.
The amount of this distribution is recorded as a liability and as an other financing use in the
accompanying special-purpose financial statcments.
Capital outlays expended in general Jund operations are capitalized in the basic financial
statements of the County rather than in the governmental funds of the Supervisor of Elections.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less. Cash equivalents in the Local Government Surplus Trust Fund are administered
by the State Board of Administration (SBA), a 2a-7-like investment pool. Shares of the
investment pool are based on the pool's share price, which approximates fair value. At
September 30, 7008, the Supervisor of Elections had no amounts on deposit in the SBA.
Compensated Absences
All full-time employees of the Supervisor of Elections are allowed to accumulate an unlimited
number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective
October I, 2007, the vacation leave limit was increased to 480 hours. Upon termination,
employees receive 100% of allowable accumulated vacation hours and a percentage of unused
sick leavc, depending on years of service. Vacation timc and sick leave are included in operating
costs when the payments are made to employees. The Supcrvisor of Elcctions does not, nor is
she legally required to accumulate tinancial resources Illf these unmatured obligations.
Accordingly, the liability jl)r compcnsatcd absences is not reported in the general fund, but rather
is reported in thc basic tinancial statements of the County.
081!.](JUjX')4
8
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Use of Estimates
The preparation of the special-purpose 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 Statutes 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 of Elections' 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 departmental major object expenditure level. Budgetary changes
within major object expenditure categories are made at the discretion of the Supervisor of
Elections.
The Supervisor of Elections does not budget for the grant special revenue fund as it is funded by
State grants and is governed by those documents.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
081J-I001894
9
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying 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 equivalcnts
$ 200
890,332
$ 890,532
N/A
N/A
Custodial Credit Risk
At September 30, 2008, 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 guidance in Section 219.075, Florida
Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections
219.075 and 218.415, Florida Statutes, authorize the Supervisor of Elections to invest in the
Local Government Surplus Funds Trust Fund or any intergovernmental investment pool
authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange
Commission registered money market funds with the highest credit quality rating from a
nationally rccognized rating agency; direct obligations of the United States Treasury; federal
agencies and instrumcntalities or interest-bearing timc dcposits or savings accounts in banks
organized undcr the laws of thc 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.
OSll-IOOJ m-l
10
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose 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 the County 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 provided on capital assets in these special-purpose
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 that are reported in the basic
financial statements of the County:
September 30,
2007 Increase
September 30,
Retirement 2008
Accrued compensated absences $ 108,604
$ 93,968
$ 43,632
$ 158,940
Of these liabilities, approximately $43,600 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Supervisor of Elections since they have not matured.
0811-1001894
1 1
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plans
Substantially all full-time employees of the Supervisor of Elections tilling 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 schoo] board, community college, and university employees (Pension Plan). The
System also otTers eligible employees participation in an alternative defined contribution plan
(Investrnent 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 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, 2.0% for senior management and
3.0% for county elected ofticials for each year of credited service times the final average
compensation. Final average compensation is the employee's avcrage of the tive highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
rcceive benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the Investment Plan are vested after one year of scrvicc with no age requirement.
The System also provides death and disability benefits. Benefits are cstablished by Chapter] 21,
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 spccified and limited period for members of thc
System, effectivc July 1, 1998. Under this program, thc employee may retire and have their
benefits accumulatc in the Florida Retiremcnt Systcm Trust Fund, earning interest, while
continuing to work for a system employer. The participation in thc program does not change
conditions of employment. When thc DROP period cnds, maximum of 60 months, employment
must be terminatcd. At the time of tcrmination of employment, the employee will receive
paymcnt of the accumulated DROP benefits and bcgin recciving their monthly retirement benefit
(in the same amount determined at retirement, plus annual eost-ol~living increases).
0811.]()OIS').j
12
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plans (continued)
The System publishes an annual report that provides 10-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.frs.state.fl.us.
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, 2008, 2007, and 2006,
were $127,461, $117,905, and $88,644, respectively, equal to the required contributions for
each year.
7. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description
The Supervisor of Elections participates in a group health care plan that covers eligible retirees,
and their dependents, of the Board and all Constitutional Officers with the exception of the
Sheriff. The 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 basic financial statements of the County.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage 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 participate in the active medical plan by paying the active rate if they have attained
0811-1001894
13
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Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment HeaIthcare Benefits (OPEB) Plan (continued)
age 62 and have six 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 Supervisor 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 the participating agencies on a pay as you
go basis through the County's self-insurancc internal service fund. The Supervisor of Elections
contributes an additional amount to the County per cach active employee to accumulate
rcsources to fund retiree health care. The Supervisor of Elections contributed $2,525 to the group
hcalth plan during the fiscal year ended September 30. 7008. The Supervisor of Elections' share
of the County's net OPEB obligation at Septembcr 30. 7008, was $5.681, which is recorded in
the basic financial statements of the Countv.
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
UASB Statement 45. The ARC represents a lcvel of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a
period not to exceed 30 ycars. An actuarial valuation on thc plan as a wholc 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. Rclated-Party Transactions
For the year ended September 30, 7008, the Board provided funding for the Supervisor of
Elections that amounted to $3,947,400. At September 30. 2008, the Supervisor of Elections had a
payable due to the Board of $369,287 comprised as follows:
Distribution of cxcess appropriations
Distribution of cxcess fee special election
Distribution of intcrcst carnings
Amounts due for various serviccs
Total due to the Board
$ 270,539
101,481
40,969
6,298
$ 369,287
1i811.](lOIS<J4
14
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management
The County is exposed to various risks of loss including, but not limited to, general liability,
health and life, property and casualty, auto and physical damage, and workers' compensation.
The County is substantially self-insured and accounts for and finances its risk of uninsured losses
through an internal service fund. All liabilities associated with these self-insured risks are
reported in the basic financial statements of the County. During the year ended September 30,
2008, the Supervisor of Elections was charged $186,125 by the County for participation in the
risk management program.
The County provides coverage for up to $350,000 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
coverage 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.
The County also provides coverage for up to $200,000 per claim for public official'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 coverage with a maximum lifetime limit of $2,000,000.
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 Elections. In the opinion of management, disallowed costs, if any,
would be inunaterial to the financial position of the Supervisor of Elections.
08]]-1001894
15
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Report 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 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, 2008, and have issued our report thereon dated December 10, 2008. 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.
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 special-purpose financial statements, but not for the purpose of
expressing an opinion on the effcctiveness 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 control deficiency 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 significant dcticicncy is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiatc, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is morc than a remotc likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detectcd by the entity's internal control.
A material weakness is a significant deficicncy, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control ovcr Iinancial reporting that we consider to be
material weaknesses, as dcfined above.
0811-IOiJ11;94
16
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' 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, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Supervisor of Elections,
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.
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December 10, 2008
0811-100]894
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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. 2008, and have issued our report thereon dated December 10,2008.
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 addresscd in this letter.
We have also issued our report dated December 10, 2008, 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 for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
There were no findings or recommendations made in the preceding annual financial audit.
Current Year Findings and Recommendations
There arc no findings or recommendations to be reported as a result of our audit.
Other Required Communications
No matters of noncompliance with Section 218.415. Florida Statutes, regarding the investment
of public funds were identificd within the scope of our audit.
The rcsults of our audit disclosed no violations of laws, rulcs, regulations or contractual
provisions or abuse. no improper or illegal expenditures, and no control deficiencies.
Thc Supervisor of Elections was established by the Constitution of the state of Florida.
Article VIII, Section I(d).
0S11-j()i)JS94 18
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II1111 $!I ERNST & YOUNG
This management letter 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.
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December 10, 2008
081 ).1001894
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0810"0995776
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Tax Collector
Years Ended September 30, 2008 and 2007
With Report oflndependent Certified Public Accountants
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Collier County, Florida
Tax Collector
Special-Purpose Financial Statements
Years Ended September 30, 2008 and 2007
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, Expenditurcs, and Changes in Fund Balance -
Budget and Actual.. General Fund- Budgetary Basis ................................................................5
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds..........................6
Notes to Special- Purpose Financial Statements............................................................................... 7
Report 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 Lettcr ..................................................................... ............................... ..... ...............2 I
0810.09LJ57'(,
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Report ofIndependent Certified Public Accountants
Honorable Guy L. Carlton, 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 30,2008 and 2007, 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 audit.
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 free of material misstatement. We were 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 for 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 tlnancial 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 Note 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 for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the Tax
Collector's financial position and its changes in financial position, where applicable, therefore,
for the year then ended, in conformity with accounting principles generally accepted in the
United States. Additionally, the special-purpose statements present only the Tax Collector and do
not purport to, and do not, present fairly the financial position of Collier County, Florida, as of
September 30, 2008 and 2007, and the changes in its financial position, where applicable, for the
years then ended, in conformity with accounting principles generally accepted in the United
States.
0810-0995776
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In our opinion, the spccial-purpose financial statements rcferred to above present fairly, in all
material respects, the respective financial position of the general fund and the aggregate
rcmaining fund information of the Tax Collector as of September 30, 2008 and 2007, 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 Governmenl Auditing Standards. we have also issued our report dated
December 10, 2008 on our consideration of the 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 Standards and should be considered in assessing the results of our audit.
This report 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 ofthe State
of Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
~T
December 10, 2008
0810-0Y'J5776
2
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Collier County, Florida
Tax Collector
Special-Purpose Balance Sheets - General Fund
September 30, 2008 and 2007
2008 2007
Assets
Cash and cash equivalents
Due from other funds
Interest receivable
Prepaid rent
Security deposit
Total assets
$ 11,274,120
64,941
$ 10,857,529
46,710
29,921
4,628
4,628
$ 11,348,317
$ 10,934,160
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
$
25,213 $
24,782
10,083,315
1,239,789
11,348,317
9,750,322
1,159,056
10,934,160
$ 11 ,348,317 $ 10,934,160
See accompanying notes.
0810-0995776
3
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Collier County, Florida
Tax Collector
Special-Purpose Statements of Revenues, Expenditures,
and Changes in Fund Balance ~ General Fund
Years Ended September 30, 2008 and 2007
2008
2007
Revenues:
Commissions and fees
Miscellaneous
Total revenues
$ 22-083,395
687,701
22,771,096
$ 21,578,802
756,222
22,335,024
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
9,092,126
2.145,297
210,569
8,367,490
2,532,138
526,018
1,239,789
12,687,781
10,083,315
1,159,056
12,584,702
9,750,322
Other financing uses:
Distribution of excess commissions and
fces to Collier County, Florida Board of County
Commissioners
Total other financing uses
(10,083,315)
(10,083,315)
(9,750,322)
(9,750,322)
Excess ofrcvenues over expenditures and other financing uses
Fund balancc, beginning of year
Fund balance, end of year
$
$
See accompanying notes.
0810-099577(,
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, 2008
Budget
Original Final
Variance With
Final Budget
Positive
Actnal Negative
Revenues:
Comm issions and fees
Misce Ilaneous
Total revenues
$ 21,912,237
645,000
22,557,237
$ 22,083,395
687,701
22,771,096
Expenditures:
General government:
Personal services
Operating
Capital outlay
Total expenditures
9,208,581
2,236,392
103,411
11,548,384
9,092,126
2,145,297
210,569
11,447,992
. Excess of revenues over expenditures
11,008,853
11,323,104
11,323,104
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
$22,083,395
687,701
22,771,096
$
9,092,126
2,145,297
210,569
1] ,447,992
(9,907,968)
(10,083,3] 5) (10,083,3] 5)
(I, I 00,885)
(11,008,853)
(1,239,789)
(] ],323,104)
Excess ofrevenues over expenditures
and other financing uses
Fund balance, beginning of year
Fund balance, end of year
(1,239,789)
(11,323,104)
$
- $
$
- $
See accompanying notes.
0810-0995776
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Tax Collector
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds
September 30, 200g and 2007
2008 2007
Assets
Cash and cash equivalents $ 4,927,906 $ 4,303,742
Accounts receivable 5,777 11,101
Interest receivable 10,811
Total assets $ 4,933,683 $ 4,325,654
Liabilities
Due to other funds $ 64,941 $ 46,710
Due to Collier County, Florida Board of
County Commissioners 809,788 741,481
Due to other governmental agencies 2,594,639 2,414,110
Due to individuals and businesses 1,464,315 1,123,353
Total liabilities $ 4,933,683 $ 4,325,654
See accompanying noles.
Ijg I ()~(J99577()
6
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements
September 30, 2008
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
Conunissioners (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 A uditor General for Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor Generalfor Local Governmental Entity Audits, requires
the Collier County, Florida Tax Collector to only present fund financial statements. Accordingly,
due to the omission of certain financial statement 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 Collier County, Florida Tax Collector as of
September 30, 2008 and 2007 and the changes in its financial position for the years then ended,
in conformity with Governmental Accounting Standards Board (GAS B) Statement No. 34, Basic
Financial Statements - and Management's Discussion and Analysis... for State and Local
Governments, but otherwise constitute special-purpose financial statements prepared in
conformity with U.S. generally accepted accounting principles (GAAP).
The financial activities of the Tax Collector, as a constitutional officer, are included in the
Collier County, Florida Comprehensive Annual Financial Report.
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Tax
Collector. 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.
0810-0995776
7
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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 t10w 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 general fund. The general fund is used
to account for the general operations of the Tax Collector and includes all transactions not
accounted for in another fund.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance 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 tor certain compensated absences, which are recognized as expenditures to the
extent they have matured.
Interest income and other revenue are recognized as they are earned and become measurable and
available to pay liabilities of the current period.
Substantially all of the Tax Collector's revenue is received from taxing authorities. These monies
are virtually umestricted and are revocable only lor failure to comply with prescribed
compliance requirements. These resources are ret1ectcd as rcvcnue at the time of receipt; earlier
if the "susceptible to accrual" criteria is met.
Florida Statutes provide that the amount by which rcvenues exceed annual expenditures be
remitted to each governmental agency immediately following the fiscal year for which the
funding was providcd or following thc fiscal year during which other revenue was recognized.
Florida Statutes further provide that the excess of revenues over expenditures held by the Tax
Collector bc distributed to each governmental agency in the same proportion as the commissions
and fees paid by each governmental agency bear to total commission and fee revenue. The
amounts of these distributions are recorded as liabilities and as an expenditure or other financing
uses in the accompanying special-purpose financial statements.
IIX](j-o')()~n()
8
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
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.
Fiduciary Funds
Agency Funds - Fiduciary funds are used to account for assets held by the Tax Collector in a
trustee capacity or as an agent for individuals, private organizations, and other governments.
Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of
results of operations or have a measurement focus. Agency funds are accounted for using the
accrual basis of accounting.
Cash and Cash Equivalents
Cash and cash equivalents are highly liquid investments with original maturities of three months
or less.
Compensated Absences
All full-time employees of the 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 accumulated vacation hours and a percentage of unused
sick leave, depending on years of service. Vacation and sick leave payments are included in
operating costs when the payments are made to the employees. The Tax Collector does not, nor
is he 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.
Property Taxes
Property taxes in Collier County are levied by the Board and other taxing authorities. The
millage levies are determined on the basis of estimates of revenue needs and the total taxable
valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad
valorem tax millage in excess of 10 mills on the dollar can be levied by the Board of County
Commissioners against property in the County as specified in Florida Statutes Section 200.071.
08]0-0995776
9
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Each year the total taxable property valuation is established by the Collier County, Florida
Property Appraiser, and the list of property assessments is submitted to the State Department of
Revenue for approval. Taxes, assessed as of December 1 of each year, are due and payable on
November I of each year or as soon thereaftcr as the assessment roll is opened for collection.
Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount
due and paying it before April 1 of the year following the year in which the tax was assessed.
Chapter 197, Florida Statutes, governs property tax collections as follows:
Current Taxes
All property taxes become due and payable on November I, and are delinquent on April 1
of the following year. Discounts are allowed for early payment of 4% in November; 3% in
December; 2% in January; and 1% for payment in February.
Unpaid Taxes - Sale of Tax Certificates
The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all
real property for unpaid taxcs. The land is struck off the tax roll to the purchaser of the tax
certificate. Certificates not sold are struck off to the Countv. The Tax Collector must receive
-
payment before the certificates are delivered. Any person owning land upon which a tax
certificate has been sold may redeem the tax certificate by paying the Tax Collector the face
amount of the tax certificate plus interest and other costs.
Tax Deeds
Two years after the purchase of a tax certificate the owner may file an application for tax
deed sale. The County, as a certificatc owner, excrcises similar procedures. Tax deeds are
issued to the highest biddcr f(,r the propcrty which is sold at public auction. The Clerk of the
Circuit Court administers these sales.
081().OSl9577(,
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 the fund level. Appropriations lapse at year end. Budget control is maintained
at the departmental major object expenditure level. Budgetary changes within major object
expenditure categories are made at the discretion of the Tax Collector.
The original budget is the first complete appropriatcd 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.
There is a difference 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 through this fund are reported as other financing uses. On a GAAP
basis, these distributions are reported as expenditures because there is a reduction in the new
financial resources of the County.
0810-0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008 and 2007, the carrymg value of the Tax Collector's cash and cash
equivalents were as follows:
Type
2008
Carrying
Value
2007
Carrying
Value
Credit
Rating
Cash on hand
Demand deposits
Total cash and cash equivalents
$ 33.010
16,169,016
$ 16,202,026
$ 31,470
15,129,80 I
$ 15,]61,271
N/A
N/A
Such amounts are reported as $11,274,120 and $4,927,906 for 2008 and $10,857,529 and
$4,303,742 for 2007 in the governmental and agency funds. respectively.
Custodial Credit Risk
At September 30, 2008, the Tax Collector's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the cvent of default by a participating iinancial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Interest Rate Risk
The Tax Collector has no specific investment policy regarding interest rate risk.
Credit Risk
The Tax Collector's policy is to follow thc guidancc in Section 219.075. Florida Statutes,
rcgarding the deposit of lunds rcccived and the investment of surplus funds. Sections 219.075
and 218.415, Florida Stalutes. authorize the Tax Collector to invcst in thc Local Government
Surplus Funds Trust Fund or any intergovernmental investmcnt pool authorized pursuant to the
Florida lnterlocal Coopcration Act: Securities and Exchange Commission registered money
market lunds with the highest crcdit quality rating Irom a nationally recognized rating agency;
{]Xl(J-U995771>
12
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
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 the 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 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
Tax Collector maintains custodial responsibility for the capital assets used by the office. No
depreciation expense has been provided on capital assets in these special-purpose financial
statements. However, depreciation expense on these assets is recorded in the basic financial
statements of Collier County, Florida.
5. Long-Term Liabilities
The following is a summary of changes in long-term liabilities which are reported in the basic
financial statements of Collier County, Florida:
October 1
2007
Net
additions
September 30
2008
Accrued compensated absences
$1,041,948
$95,691
$1,137,639
Octo ber 1
2006
Net
additions
September 30
2007
Accrued compensated absences
$889,024
$152,924
$1,041,948
0810-0995776
13
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities (continued)
Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending
September 30, 2009. 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 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 Tax Collector participates in the
Elected State Omcers' 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
determinable.
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% je)r regular employees, 2% for senior management, and
3% for county elected ot1icials for each year of credited service times their final average
compensation. Final average compensation is the employec's average of the five highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
receivc benefits that are reduced 5% lelf each year prior to normal retirement age. Employees
participating in the Investment Plan are vcsted aftcr onc year of service with no age requirement.
The System also provides death and disability benefits. BeneJits are established by Chapter 121,
Florida Statutes, and Chapter 22B. Flurida Administrative ('ode.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits I' Of a specificd and limited period for members of the
System, efJective 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 cmployer. The participation in the program does not change
conditions of employment. When the DROP period cnds, maximum of 60 months, employment
DS10-O'J'1S776
14
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan (continued)
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-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. 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 their Internet site at bttp://www.frs.statc.fl.11s.
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 the State of Florida. The Tax
Collector's contributions to the plans for the years ended September 30, 2008, 2007, and 2006
were $643,986, $595,152 and $439,343, respectively, equal to the required contributions for each
year.
7. Other Postemployment HeaIthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers jor Postemployment Benefits Other Than
Pensions.
Plan Description. The Tax Collector 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. The Board administers the plan and establishes the
benefits. The health care 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.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable (0 active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
0810-0995i76
15
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment HeaIthcare Benefits (OPEB) Plan (continued)
age 62 and have six 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. In addition, the Tax Collector provides a 100% subsidy for
retirees between the ages of 55 and 65 with more than 10 years of service and 800 hours of
accumulated sick leave to remit at the time of retirement.
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 the County per each active employee to
accumulate resources to fund retiree health care. The Tax Collector contributed $4,410 to the
group health plan during the fiscal year ended September 30, 2008. The Tax Collector's share of
the County's net OPEB obligation at September 30, 2008 was $9,921, which is recorded in the
basic financial statements of the Countv.
.
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
GASH 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 am011ize 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
During the fiscal years ended September 30. 2008 and 2007, the Board paid commissions and
fees to the Tax Collector that amounted to $20,277,863 and $19,962,056, respectively. At
September 30, 2008 and 2007, the Tax Collector had a payable due to the Board of County
Commissioners of $1 0,893, 103 and $10.491,803, respcctively, comprised as follows:
2008
2007
Distribution of excess commissions and fees
Agency funds due to the Board
$ 10.083.315
809.788
$ 10,893,103
$ 9,750,322
741,481
$ 10,491,803
OSlO.099'i776
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 30,2008
and 2007, the Tax Collector was charged $1,957,894 and $1,761,403, respectively, by the
County for participation in the risk management program.
The County provides coverage for up to $350,000 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
coverage 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 lifetime limit of $2 million.
0810-0995776
17
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Tax Collector
Notes to Special-Purpose Financial Statements (continued)
10. Commitments and Contingencies
Leases
The Tax Collector has noncancelable operating leases for certain office facilities that were
utilized solely by the Tax Collector for fiscal year 2008. The following is a schedule of future
minimum lease payments under the operating leases:
Fiscal year ending September 30:
2009
2010
2011
2012
2013
$ 271,166
238,869
198,640
62,475
64,974
Rental expense for all operating leases aggregated $226,249 and $260,573 for the years ended
September 30,2008 and 2007, respectively. There were no contingent rentals or sublease rentals
associated with leases in effect at September 30. 2008 or 2007.
Litigation
The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising
from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the
range of potential recoveries or liabilities will not materially affect the financial position of the
Tax Collcctor.
0810-0995776
18
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Report 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 Guy 1. Carlton, 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, 2008, and have issued our report thereon dated
December 10, 2008. 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.
Internal Control Over Financial Reporting
In plarrning and performing 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 special-purpose financial statements, but not for the purpose of expressing an
,
opinion on the effectiveness of the Tax Collector's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal
control over financial reporting.
A control deficiency 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 significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
0810-0995776
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Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over tinancial reporting that we consider to be
material weaknesses, as detined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's special-purpose
financial statements are ffee 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 efIect 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 express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
We noted certain matters that we reported to management of the Tax Collector in a separate
letter dated December 10, 2008.
This report is intended solely for 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.
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December 10, 2008
081l!.OlJlJ577(,
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Management Letter
Honorable Guy 1. Carlton, 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, 2008, and have issued our report thereon dated
December 10, 2008.
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 10, 2008 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 for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
See Exhibit A for the status of prior year recommendations.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current 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 other than
the internal control recommendations included above.
OS I 0~0995776
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The Tax Collector was established by the Constitution of the State of Florida, Article VlII,
Section led).
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.
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December 10, 2008
OSlU-OlJYS77(-,
22
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Collier County, Florida
Tax Collector
Status of Prior Year Recommendation
September 30, 2008
Recommendation
Status
Exhibit A
IT Access Controls
Password length should be no less than 6
characters.
Reset account lockout counter value
should be set at 60 minutes or higher.
Account lockout threshold should be set
to 3-5 attempts.
Consider enabling password complexity.
0810-()995776
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Implemented.
Implemented.
Implemented.
Still applicable.
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