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FY10/11 Reports OF�}iE Sj } Collier Soil & Water Conservation District 14700 Immokalee Road,Naples,Florida 34120 `• ' .:,;;,:` :)". Phone(239)-455-4100•Fax(239)455-2693 Email:cswcd @comcast.net RECEIVED JUL 3 0 2012 LETTER OF TRANSMITTAL TO: DATE: Clerk of Circuit Court July 9, 2012 Finance Department FROM: 2671 Airport Road S., Court Plaza III Collier Soil & Water Naples, FL 34112 Conservation District We are sending you X Attached Under separate cover via the followings items: COPIES DESCRIPTIONS 1 General Purpose Financial Statements Together with Reports of Independent Auditor for Year Ending September 30, 2011 1 State of Florida Annual Local Government Financial Report for FY 2010-2011 �/ Signed: A't'//t. )6,..14/1-e4.4. Kim Bucceri Administrator 1 Collier Soil &Water Conservation District Dennis P.Vasey, Chairman 14700 Immokalee Road °• Naples, FL 34120 ,-: a June 21, 2012 Mark K. Stout, CPA Managing Partner Mark K. Stout, CPA, PL 999 Vanderbilt Beach Road, STE 200 Naples, FL 34108 We reviewed your audit for accuracy and completeness and agree with your comments regarding the corrective actions taken by the Board of Supervisors. The District Continues to take steps to increase revenue while at the same time controlling costs. Respectfully yo , 47vii , i°/421..-1-7 Dennis P. Vasey, Chairman Bruce Reichert Stan Weiner Dennis P. Vasey Tom Cravens James Lang Supervisor, Seat 1 Supervisor, Seat 2 Supervisor, Seat 3 Supervisor, Seat 4 Supervisor, Seat 5 Web Site: http://www.collierswcd.org COLLIER SOIL AND WATER CONSERVATION DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH REPORTS OF INDEPENDENT AUDITOR YEAR ENDED SEPTEMBER 30, 2011 TABLE OF CONTENTS Page(s) INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) i-v BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of Net Assets 3 Statement of Activities 4 FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet 5 Reconciliation of the Balance Sheet- Governmental Funds to the Statement of Net Assets 6 Statement of Revenues,Expenditures and Changes in Fund Balance 7 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance- Governmental Funds to the Statement of Activities 8 NOTES TO THE FINANCIAL STATEMENTS 9-24 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS (General and Special Revenue Funds) Statement of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual- General Fund-Summary Statement. 25 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual General Fund—Detailed Statement 26-27 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Mitigation Land Bank Fund-Summary Statement 28 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual NGGE ROMA Fund—Summary Statement 29 ADDITIONAL REPORTS OF INDEPENDENT AUDITOR Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements 30 Performed in Accordance with Government Auditing Standards Independent Auditor's Report to Management 32 Management's Response to Independent Auditor's Report to Management Exhibit A Mark K. Stout, CPA, PL P.O. Box 771177 Naples, FL 34107 INDEPENDENT AUDITOR'S REPORT Board of Supervisors Collier Soil and Water Conservation District 14700 Immokalee Road Naples, Florida 34120 We have audited the accompanying basic financial statements of Collier Soil and Water Conservation District (the "District"), as of September 30, 2011 and for the year then ended, as listed in the Table of Contents. These basic financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects,the financial position of Collier Soil and Water Conservation District as of September 30, 2011, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards,we have also issued our report dated June 20, 2012, on our consideration of Collier Soil and Water Conservation District's internal control over financial reporting and our tests of its compliance with certain provisions of laws,regulations, contracts, grants, 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. 1 Board of Supervisors Collier Soil and Water Conservation District The Management's Discussion and Analysis on pages i-v is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standard Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the Management's Discussion and Analysis. However,we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the District's basic financial statements. The required supplementary information other than MD&A on pages 25-29 described in the accompanying Table of Contents is presented for the purposes of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. Such information has been subjected to the auditing procedures applied by us in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. cift-4.1g1-AZ"'; °:4$/i46 Mark K. Stout, CPA, PL Naples, Florida June 20, 2012 2 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) Collier Soil and Water Conservation District Dennis P. Vasey, Chairman 14700 Immokalee Road Naples, FL 34120 Management's Discussion and Analysis Since 1984, soil and water conservation district supervisors have addressed ecological issues, helping define the risks of permit approvals and mitigation away from the area of impact to surrounding communities for commercial, public works and residential construction where there are wetland impacts. Although the sale of residential mitigation credits stopped in 2007 because of the construction downturn, we have initially treated 202 acres of our Regional Offsite Mitigation Area and have a reservation for the remaining 10 acres. All of the studies and treatment have been done without public funding. The restoration is proceeding as designed in the Memorandum of Agreement that came to life in 2005 when we reached the first funding trigger. Water conservation continues to be a major consideration since annual rainfall has been below expected levels for the past nine years. This has resulted in permanent water restrictions and we have accelerated our efforts at residential and homeowner/ resident association water savings with exceptional results for both agriculture and residential customers. This service has a huge demand and, when coupled with the rain garden and median projects, has made a difference. To date we delivered Horsepen Strand Conservation Area Phase I to serve as the framework for Northern Golden Gate Estates Flowway Restoration Project that should be completed in 2013. This two-phase approach was overseen by Big Cypress Basin and intended to insure: First, that we take pains to avoid even the appearance of bias, although researchers are certainly encouraged to take positions on policy issues, we should clearly show how our science leads us to a certain conclusion, and we must demonstrate a willingness to change our minds in the face of compelling evidence. Critics take careful note of our funding sources and our public statements. Second, this process can explicitly warn government against cherry-picking when processing permits that require critical thinking and can have them find examples in the popular press, both in print and online. Third, we are interested in having the public objectively accept our research without compromising the integrity of same. Our financial resources have been prudently used and we are investigating methods to increase our revenue base through changes in the numeric nutrient criteria and narrative parts of the total daily measurable load law that will be enacted in 2012. We maintain a long-term focus and continue to seek opportunities to expand revenue sources. In total, revenues for 2011 were $207,987. Expenses were $247,626 which provided employee and contractor compensation. The District remains debt-free. Bruce Reichert Stan Weiner Dennis P. Vasey Tom Cravens James Lang Supervisor, Seat 1 Supervisor, Seat 2 Supervisor, Seat 3 Supervisor, Seat 4 Supervisor, Seat 5 Web Site: http://www.collierswcd.org The following is a condensed summary of the Districts net assets for fiscal year 2011 compared to fiscal years 2010, 2009, 2008 and 2007. Summary of Net Assets As of As of As of As of As of Assets: 9/30/11 9/30/10 9/30/09 9/30/08 9/30/07 Totals Totals Totals Totals Totals Current Unrestricted Assets $ 121,067 $ 130,702 $ 75,882 $ 72,118 $ 90,352 Current Restricted Assets 68,374 98,218 240,877 330,180 346,387 Non-current Capital Assets 41,765 45,674 49,582 53,979 61,991 Total Assets 234,534 274,594 366,341 456,277 498,730 Liabilities: Accounts Payable - - - 1,179 1,075 Current Accrued Liabilities 3,828 5,017 1,551 3,724 3,615 Current Deferred Revenue 68,374 98,218 240,877 330,180 346,387 Notes Payable - - - - - Total Liabilities 72.202 103.235 242.428 335.083 351.077 Net Assets: Investment in Capital Assets, 41,765 45,674 49,582 53,979 61,991 Net of Related Debt Unrestricted 120,567 125,685 74,331 67,215 85,662 Total Net Assets 162,332 171,359 123,913 121,194 147,653 Total Liabilities and Net Assets $234,534 $ 274,594 $ 366,341 $ 456,277 $ 498,730 ii The following schedule reports the revenues, expenses and changes in net assets for the District for fiscal year 2011 compared to fiscal years 2010, 2009, 2008 and 2007. Summary of Revenues, Expenses and Changes in Net Assets Year Ending Year Ending Year Ending Year Ending Year Ending Revenues: 9/30/11 9/30/10 9/30/09 9/30/08 9/30/07 Totals Totals Totals Totals Totals ` Program Revenues: Conservation& Resource $207,987 $265,287 $252,184 $385,599 $260,848 Management General Revenues: Interest 94 181 788 516 18 Other 30,518 145,471 89,506 21,752 93,135 Gain(loss) on disposal - - - 50 (807) of capital assets Total Revenues 238,599 410,939 342,478 407,917 353,194 Expenses: Personal Services 182,377 175,361 172,274 207,256 211,418 Operating Expenses 61,340 184,224 163,088 219,058 94,355 Depreciation 3,909 3,908 4,397 8,062 11,946 Total Expenses 247,626 363,493 339,759 434,376 317,719 Increase (decrease) in Net Assets 9,027 47,446 2,719 (26,459) 35,475 Net Assets - Beginning of the year 171,359 123,913 121,194 147,653 112,178 Net Assets -End of the year $ 162,332 $ 171,359 $ 123,913 $ 121,194 $ 147,653 iii Budgetary Highlights Budget versus actual comparisons are reported in the required supplementary information other than MD&A on pages 25 thru 29. During the year,revenues were slightly less than expenditures,thus decreasing the existing fund balance in the amount of$5,118. Capital Assets The District owns no land or buildings for its operations. Office space is provided by the U.S. Department of Agriculture at no cost. Capital assets consist of equipment which is depreciated using the straight-line method over the estimated useful life of the asset. (generally 5-10 years) The District did begin to purchase land as part of its Mitigation Land Bank during the year ended September 30,2008. The District expended$41,265 to purchase land in 2008 but did not purchase any in any subsequent years. Depreciation expenses of$3,909 were charged against the capital assets during the fiscal year ended September 30,2011. The District retired$17,715 is capital assets that were no longer being utilized. Economic Factors and Next Year's Budget The District received 96%of its funding from the Florida Department of Agriculture and Consumer Services (FDACS) and the South Florida Water Management District(SFWMD).As this is the District's primary source of funding, it is substantially dependent on the receipt of revenue from these agencies. Loss of these funds and/or a large decrease in this type of funding would have a material effect on the District and a negative impact on overall operations. During FY07 the District began charging its Special Revenue Funds an administrative fee to manage their operations as permitted by the underlying agreements. iv Request for Information This financial report is designed to provide a general overview of the District's finances. Questions concerning any of the information provided in this report should be directed to: Collier Soil&Water Conservation District 14700 Immokalee Road Naples,FL 34120(239)455-4100 v COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF NET ASSETS September 30, 2011 Governmental Activities ASSETS Current assets: Cash $ 121,067 Restricted cash 68,374 Due from other governments - Prepaid insurance 3,328 Total current assets 192,769 Non-current assets: Capital assets: Land 41,265 Depreciable equipment (net of$27,284 accumulated depreciation) 500 Total non-current assets 41,765 TOTAL ASSETS $ 234,534 LIABILITIES AND NET ASSETS LIABILITIES Current liabilities: Accounts payable $ - Accrued liabilities 3,828 Deferred revenue 68,374 Total current liabilities 72,202 TOTAL LIABILITIES 72,202 NET ASSETS Investment in capital assets,net of related debt 41,765 Unrestricted 120,567 TOTAL NET ASSETS 162,332 TOTAL LIABILITIES AND NET ASSETS $ 234,534 The accompanying notes are an integral part of this statement. 3 COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF ACTIVITIES Year Ended September 30, 2011 EXPENSES Governmental Governmental activities Activities Personal services $ 182,377 Operating expenses 61,340 Interest expense - Depreciation 3,909 TOTAL EXPENSES - GOVERNMENTAL ACTIVITIES 247,626 PROGRAM REVENUES Charges for services 207,987 NET PROGRAM REVENUES (DEFICIT) (39,639) GENERAL REVENUES Interest 94 Other 30,518 TOTAL GENERAL REVENUES 30,612 INCREASE (DECREASE) IN NET ASSETS (9,027) NET ASSETS - Beginning of the year 171,359 NET ASSETS - End of the year $ 162,332 The accompanying notes are an integral part of this statement. 4 COLLIER SOIL AND WATER CONSERVATION DISTRICT BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2011 Special Revenue Funds General Mitigation NGGE Total Fund Land Bank ROMA Governmental s Fund Fund Funds ASSETS Cash $ 121,067 $ - $ - $ 121,067 Restricted cash - 55,619 12,755 68,374 Due from other funds - - - - Due from other governments - - - - Other assets 3,328 - - 3,328 TOTAL ASSETS $ 124,395 $ 55,619 $ 12,755 $ 192,769 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ - $ - $ - $ - Due to other funds - - - - Accrued liabilities 3,828 - - 3,828 Deferred revenue - 55,619 12,755 68,374 TOTAL LIABILITIES 3,828 55,619 12,755 72,202 FUND BALANCE Unreserved,undesignated 120,567 - - 120,567 TOTAL FUND BALANCE 120,567 - - 120,567 TOTAL LIABILITIES AND FUND BALANCE $ 124,395 $ 55,619 $ 12,755 $ 192,769 The accompanying notes are an integral part of this statement. 5 COLLIER SOIL AND WATER CONSERVATION DISTRICT RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS - GOVERNMENTAL FUNDS September 30, 2011 Amount Total fund balance for governmental funds $ 120,567 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds Capital assets riot being depreciated: Land 41.265 41,265 Capital assets being depreciated: Equipment 27,784 Less accumulated depreciation (27,284) 500 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Note payable Total net assets of governmental activities $ 162,332 The accompanying notes are an integral part of this statement. 6 COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended September 30, 2011 General Mitigation NGGE Total Fund Land Bank ROMA Governmental Fund Fund Funds REVENUES Charges for services FDACS-LWC AG MIL 144,071 $ - $ - $ 144,071 SFWMD-BCB-MIL 55,000 - - 55,000 SFWMD-Lee County MIL - - - - SFWMD-Cape Coral MIL - - - - ROMA Application Fees 200 - - 200 Administrative Fees 6,988 - - 6,988 HSCA Phase I - - - - Mitigation Credits Purchases - - 1,728 1,728 Interest income 13 60 21 94 Miscellaneous income 41 8,249 22,228 30,518 Debt Service Principal advances - - - - TOTAL REVENUES 206,313 8,309 23,977 238,599 EXPENDITURES Current Conservation/Resource Management Personal services 182,377 - - 182,377 Operating expenditures 29,054 8,309 23,977 61,340 Capital outlay - - - - Debt service Principal reduction - - - - Interest and fiscal charges - - - - TOTAL EXPENDITURES 211,431 8,309 23,977 243,717 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (5,118) - - (5,118) FUND BALANCE—BEGINNING 125,685 - - 125,685 FUND BALANCE-ENDING $ 120,567 $ - $ - $ 120,567 The accompanying notes are an integral part of this statement. 7 COLLIER SOIL AND WATER CONSERVATION DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30, 2011 Amount Net change (excess of revenues over expenditures) in fund balance $ (5,118) - total governmental funds The increase in net assets reported for governmental activities in the Statement of Activities is different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Expenditures for capital assets 0 Less: current year depreciation (3,909) Less: gain on disposition of capital asset 0 (3,909) Change (increase) in net assets of governmental activities $ (9,027) The accompanying notes are an integral part of this statement. 8 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and nature of activities Collier Soil and Water Conservation District(the "District"), is an independent special district created on August 30, 1984,through the request of the State of Florida, Department of Agriculture, under the provisions of Florida Statute 582.15(2), for the purpose of preserving and promoting conservation, development and wise use of land, water and related resources in Collier County, Florida. The District also is permitted to act as a land trust for environmentally sensitive undeveloped land. As such, the District can receive and/or purchase and hold and manage environmentally sensitive undeveloped land. The District is governed by an elected five (5) member Board of Supervisors serving staggered four(4)year terms. Summary of significant accounting policies The following is a summary of the significant accounting policies used in the preparation of these basic financial statements. Reporting entity The District adheres to Governmental Accounting Standards Board(GASB) Statement Number 14, "Financial Reporting Entity, as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are Component Units." These Statements require the financial statements of the District (the primary government) to include its component units, if any. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. Based on the criteria established in GASB 14, as amended, there are no component units required to be included. Therefore, there are no component units included and/or required to be included in the District's basic financial statements. Government-wide Financial Statements The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. General governmental and intergovernmental revenues support the governmental activities. The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government-wide financial statements. 9 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-wide Financial Statements, continued Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement 33, "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government- wide financial statements, rather than reported as expenditures. Proceeds of long- term debt are recorded as liabilities in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government,are reported as a reduction of the related liability in the government-wide financial statements, rather than as expenditures. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function; and 2) grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. Interest income and other items not properly included among program revenues are reported instead as general revenues. 10 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Financial Statements The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the District's governmental funds are presented after the government-wide financial statements. The governmental fund financial statements display information about major funds individually and nonmajor funds in aggregate for governmental funds. Governmental Funds When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, as appropriate, and then from unrestricted resources. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments". The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. All governmental funds of the District are considered major funds. 11 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources management focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. Taxpayer assessed income and gross receipts are considered "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they become measurable and their validity seems certain. Intergovernmental revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on the long-term debt, if any, is recognized when due; and(2) expenditures are generally not divided between years by the recording of prepaid expenditures. Non-current Government Assets/Liabilities GASB 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as notes and bonds payable, be reported in the governmental activities column in the government-wide Statement of Net Assets. 12 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Major Funds—Governmental The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District, except those required to be accounted for in another fund. The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. The District has two special revenue funds: a Mitigation Land Bank Fund (Land Bank) and the North Golden Gate Estates Regional Offsite Mitigation Area Fund (NGGE ROMA). The Land Bank fund consists of funds collected pursuant to an agreement with a real estate developer to provide off-site compensatory mitigation for unavoidable wetland impact related to a specific real estate development. The agreement required the developer to transfer$140,000 to the District for the purchase of approximately 30 acres of undeveloped wetlands. The District is required to then enhance, manage and hold in perpetuity the respective wetlands purchased. The funds are restricted and can only be used for the purchase, enhancement and long-term management of undeveloped wetlands. The NGGE ROMA fund consists of funds collected pursuant to an agreement with the Florida Department of Environmental Protection and the Florida Department of Agriculture and Consumer Services, Division of Forestry to be used as mitigation for private, single-family residence impacts within the North Golden Gate Estates development. Mitigation credits are charged on single-family residential impact permits within the mitigation service area. Funds collected for mitigation credits are to be placed in three separate accounts. The first$666,340 will fund the implementation account which will be used for exotic vegetation eradication within the ROMA. The next $63,720 collected is to fund the management account. The management account is the principal to provide interest money sufficient for annual management costs. After the agreements success criteria are met,the management account will be transferred to the Division of Forestry, which will assume long-term management of the enhancement site. Any remaining mitigation credits collected are to be placed in the acquisition account. Funds will be held in the acquisition account until an amended Mitigation plan for acquisition is approved by the Department of Environmental Protection. 13 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgetary Information The District has elected to report budgetary comparison of major funds as required supplementary information(RSI). All investment revenue is deferred until allowable expenditures are budgeted and incurred. Capital Assets Capital assets, which include land and equipment, are reported in the government-wide Statement of Net Assets. The District owns no buildings. The District follows a capitalization policy, which calls for capitalization of all capital assets that have a cost or donated value of$1,000 or more and have a useful life in excess of one year. All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair market value on the date donated. No debt- related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance, repairs, and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. Expenditures that materially increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement,the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenditures in the government-wide statements but rather are capitalized and depreciated. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Asset Years Equipment 5-10 14 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and budgetary accounting The District has adopted an annual budget for the General Fund for the year ended September 30, 2011, as well as for the Special Revenue Funds. The District follows these procedures in establishing budgetary data. 1. During the summer of each year, the Treasurer or his designee, submits to the Board of Supervisors a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are held to obtain citizen input. 3. The budget is adopted by approval of the Board of Supervisors. 4. Budget amounts, as shown in these financial statements, are as originally adopted or as amended by the Board of Supervisors. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. The District did not amend the General Fund budget during the year. One of the Special Revenue Funds was amended to adjust for an increase in contract costs for follow-up treatments. Compensated absences The District's employees accumulate sick and annual leave, based on the number of years of continuous service. The District allows employees to carry over to the next fiscal year up to 80 hours of sick leave and unlimited annual leave. However, upon termination of employment, the District does not pay or reimburse employees for sick or annual leave. 15 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Encumbrances Encumbrances accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because at present it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. Deferred Revenue/Land Bank Fund Through an agreement with a real estate developer, the District received funds to purchase undeveloped wetlands. The intent of the agreement is to provide off-site compensatory mitigation for unavoidable wetland impact related to a specific real estate development. The agreement has no stated time-frame for the related land purchase. The District has recorded these funds as restricted cash and as deferred revenue until the date of expenditure, at which time it will be recognized as revenue and charged to the appropriate expenditure accounts. Deferred Revenue/NGGE ROMA Fund Through an agreement with the Florida Department of Agriculture and Consumer Services, Division of Forestry, the District receives funds through the sale of mitigation credits to be used for the enhancement, management, and future acquisitions of a Regional Offsite Mitigation Area. The District has recorded these funds as restricted cash and as deferred revenue until the date of expenditure, at which time it will be recognized as revenue and charged to the appropriate expenditure accounts. After the agreement's success criteria are achieved, the District will transfer the funds (unexpended cash) in the Management Account over to the Division of Forestry which will assume the long-term management of the enhancement area. Interfund receivables and payables arise from interfund transactions and are recorded by the funds affected in the period in which the transactions are executed. Due From Other Governments No allowance for losses on uncollectible accounts has been recorded since the District considered all amounts to be fully collectible. 16 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund equity In the governmental fund financial statements, reservation of fund balance indicates amounts that are limited for a specific purpose, are not appropriable for expenditure, or are legally segregated for a specific future use. Designations of fund balance represent tentative management plans. Unreserved, undesignated fund balance indicates funds that are available for current expenditure. Interfund Transactions The District considers interfund receivables (due from other funds) and interfund liabilities (due to other funds)to be loan transactions to and from other funds to cover temporary (three months or less) cash needs. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing funds and as reduction of expenditures/expenses in the fund that is reimbursed. Management estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires the District to make estimates and assumptions that affect the reported amounts of assets, liabilities, fund equity, and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenditures during the } reporting period. Actual results could differ from those estimates. NOTE B - CASH AND INVESTMENTS At September 30, 2011, cash was $189,441 including cash on hand of$53 and restricted cash of$68,374. Restricted funds were received for the Land Bank Fund and the NGGE ROMA Fund and were accounted for in the Special Revenue Funds. Deposits The District's deposit policy allows deposits to be held in demand deposit accounts. The District depository is a financial institution designated as qualified depository by the State Treasurer. 17 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE B - CASH AND INVESTMENTS, CONTINUED Deposits, continued At September 30, 2011, the District's deposits were as follows: Bank Carrying Balance Amount General Fund $ 119,771 $ 121,015 Depository Accounts Special Revenue Fund Depository Account 68,374 68,674 $ 188,145 $ 189,689 These deposits were entirely insured by federal depository insurance or by collateral pursuant to the Public Depository Security Act of the State of Florida (Florida Statute 280). Investments Florida Statutes and the District's investment policy authorize investments in certificates of deposit and savings accounts. Certificates of deposit and savings accounts whose values exceed the amount of federal depository insurance are collateralized pursuant to the Public Depository Security Act of the State of Florida(Florida Statute 280). At September 30, 2011, the District held no such investments. However, its cash accounts were held in interest bearing accounts. NOTE C - DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30, 2011 are as follows: Due from Due to Fund other funds Other funds Fund Mitigation Land Bank $ 0 $ 0 Fund NGGE ROMA Fund 0 0 Total $ 0 $ 0 Interfund receivables and payables are eliminated for presentation purposes in the Statement of Net Assets, at September 30, 2011. 18 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE D - DUE FROM OTHER GOVERNMENTS Due from other governments consists of the following at September 30, 2011: Amount Due from South Florida Water Management District $ 0 NOTE E - CAPITAL ASSETS ACTIVITY The following is a summary of changes in capital assets activity for the year ended September 30, 2011 (Note—During 2011, $17,715 of capital assets that were fully depreciated and no longer in use were retired): Balance Balance Increases/ Decreases/ October 1, Additions Retirements September 30, 2010 2011 Capital Assets Not Being Depreciated: Land $ 41,265 $ - $ - $ 41,265 Total Capital Assets Not Being Depreciated 41,265 - - 41,265 Capital Assets Not Being Depreciated: Equipment 45,499 - (17,715) 27,784 Total Capital Assets Being Depreciated 45,499 - (17,715) 27,784 Less Accumulated Depreciation: Equipment (41,090) (3,909) 17,715 (27,284) Total Accumulated Depreciation (41,090) (3,909) 17,715 (27,284) Total Capital Assets Being Depreciated,Net 4,409 (3,909) - 500 Capital Assets,Net $ 45,674 $ (3,909) $ - $ 41,765 19 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED Depreciation expense was charged to the following functions during the fiscal year ended September 30, 2011: Amount General Government- Administration $ 3,909 Total Depreciation Expense $ 3,909 NOTE F- LONG-TERM LIABILITIES The District had no such debt for the fiscal year ended September 30, 2011. NOTE G - RETIREMENT PLAN Plan description and provisions Effective October 1, 2001, all District employees, both full-time and part-time, became participants in the statewide Florida Retirement System(FRS) under the authority of Article X, Section 14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS is noncontributory and is totally administered by the State of Florida. The District contributed 100% of the required contributions. Pension costs for the District 9.85% of gross wages for the year ended September 30, 2011. The District's contributions to the plan were $15,559, $13,825, and$14,462 for the fiscal years ended September 30, 2011, 2010, and 2009, respectively. The District's covered payroll expense for the fiscal years ended September 30, 2011, 2010, and 2009 was $166,817, $161,536, and $139,871, respectively. There were no employee contributions permitted or made to the plan. Employees who retire at or after age 62 with 6 years of creditable service, 6 years of senior management service and age 62, 6 years of special risk service and age 55, or 30 years of service (25 years for special risk) regardless of age, are entitled to a retirement benefit,payable monthly for life, equal to 1.5%to 3.3%per year of creditable service, depending on the class of employee (regular, special risk, etc.) based on average final compensation of the five (5) highest fiscal years' compensation. Benefits vest after 6 years (6 years for senior management) of credited service. Vested employees may retire anytime after vesting and incur a 5% benefit reduction for each year prior to normal retirement age. 20 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE G - RETIREMENT PLAN, CONTINUED Plan description and provisions, continued Early retirement, disability, death, and survivor benefits are also offered. Benefits are established by State Statute. The plan provides for a constant 3% cost-of-living adjustment for retirees. The Plan also provides several other plan and/or investment options that may be elected by the employee. Each offers specific contribution and benefit options. The Plan documents should be referenced for complete detail. Description of funding policy This is a cost sharing, multi-employer plan available to governmental units within the state and actuarial information with respect to an individual participating entity is not available. Participating employers are required, by statute, to pay monthly contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are adequate to accumulate sufficient assets to pay benefits when due. Plan information A copy of the FRS's June 30, 2011 annual report can be obtained by writing to the Florida Division of Retirement, Cedars Executive Center, 2639-C North Monroe Street, Tallahassee, Florida 32399-1560, or by calling (850) 488-5706. NOTE H - SELF-INSURANCE PROGRAM The District is a member of the Florida League of Cities self-insurers program for general liability, auto, property and workers' compensation. The program purchases excess and other specific coverages from third party carriers. Members of the program are billed annually for their portion of the program and are not assessable for unanticipated losses incurred by the program. Maximum liability coverage is $200,000. Premiums charged during the year totaled $6,755. Other types of insurances are carried by the District through third party insurance carriers. 21 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE I - OPERATIONAL SUPPORT The District's operations are supported in part by the United States Department of Agriculture through the Natural Resource Conservation Service (NRCS). As such, the partnership with NRCS provides the District with its office space and other occupancy costs including but not limited to utilities,janitorial services, and telephone service at no cost to the District. The NRCS also provides the District the use of office equipment at no cost. The benefit of such subsidies is not reflected within the financial statements as no objective basis is available to value these benefits. NOTE J- ECONOMIC DEPENDENCE The District's operations are substantially dependent on the receipt of revenue from the Florida Department of Agriculture and Consumer Services (FDACS) and South Florida Water Management District (SFWMD). Loss of these funds and/or large decreases in this type of funding would have a material effect on the District and a negative impact on overall operations. For the year ended September 30, 2011, 96% of total General Fund revenue is attributable to funds received from the FDACS and SFWMD. NOTE K- MITIGATION LAND BANK FUND ACTIVITY During the year ended September 30, 2011, the Mitigation Land Bank Fund had the following activity: Amount Deferred revenue, October 1, 2010 $ 63,235 Land Bank receipts 633 Interest income receipts 60 Less: Land Purchase - Professional and Consulting Fees (5,600) Administrative Fees (1,200) Administrative Expenses (1,094) Bank fees and Interest expense (415) Deferred revenue, September 30, 2011 $ 55,619 22 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE L - NGGE ROMA FUND ACTIVITY During the year ended September 30, 2011, the NGGE ROMA Fund had the following activity: Amount Deferred revenue, October 1, 2010 $ 34,983 Mitigation credit receipts 1,728 Interest income receipts 21 Less: Labor and Contract Labor (13,896) Administrative &Professional Fees (9,724) Bank fees (357) Deferred revenue, September 30, 2011 $ 12,755 NOTE M - COMMITMENTS Land Trust The District has a Mitigation Land Bank agreement with a real estate developer which required the developer to transfer $140,000 to the District for the purchase of approximately 30 acres of undeveloped wetlands. The District is, further, required to then enhance, manage and hold in perpetuity the respective wetlands purchased. The District has the right to transfer the land to another entity for long-term management and ownership at its discretion subject to approval by the Army Corp of Engineers. The developer entered the agreement to provide off-site compensatory mitigation for unavoidable wetland impact related to a specific real estate development. The agreement has no stated time-frame for the related land purchase. The funds are being accounted for in the Special Revenue Fund Mitigation Land Bank Fund. During fiscal year ending September 30, 2008,the District purchased 2.28 acres of undeveloped wetland for approximately $41,265. 23 COLLIER SOIL AND WATER CONSERVATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2011 NOTE M - COMMITMENTS, CONTINUED Regional Offsite Mitigation Area The District has an agreement with the Florida Department of Environmental Protection and the Florida Department of Agriculture and Consumer Services, Division of Forestry for the enhancement, management, and future acquisition of a Regional offsite Mitigation Area. The activities are funded through the sale of mitigation credits on single-family residential construction impacting the north Golden Gate Estates area. Once the agreement's success criteria are achieved, the District will transfer the funds in the management account to the Division of Forestry which will assume the long-term management of the enhancement area. NOTE N - CONTINGENCIES The District is involved from time to time in certain routine litigation, the substance of which, either as liabilities or recoveries, would not materially affect the financial position of the District. Although the final outcome of the lawsuits, assertions, and claims or the exact amount of costs and/or potential recovery is not presently determinable, in the opinion of the District's legal counsel, the resolution of these matters-are not anticipated to have a materially adverse effect on the financial condition of the District. As a general policy, the District plans to contest any such matter. NOTE O - EXPENDITURES IN EXCESS OF BUDGET Florida Statute 189.418(3) prohibits actual expenses in excess of budgeted expenditures. We, however, noted during the year ended September 30, 2011 that the District did expend some small amounts in excess of approved budget in the General Fund. We did note that the expenditures were approved by the Board of Supervisors but that the budget was not formally increased as required by Statute. 24 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&,A COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND - SUMMARY STATEMENT Year Ended September 30, 2011 General Fund REVENUES Variance Original Final Actual Favorable Charges for services Budget Budget (Unfavorable) LWC AG MIL $ 144,071 $ 144,071 $ 144,071 $ - BCB Urban MIL 55,000 55,000 55,000 - Lee County MIL - - Cape Coral MIL - Malibu Lakes Administrative Fees 3,494 3,494 3,203 (291) ROMA Administrative Fees 3.494 3.494 3,785 291 ROMA Application Fees 1,000 1,000 200 (800) Interest income 24 24 13 (11) Miscellaneous income 203 203 41 (162) Carryover 100,000 100,000 - (100,000) TOTAL REVENUES - 307,286 307,286 206,313 (100,973) EXPENDITURES Current General government-Administration Personal services 186,963 186,963 182,377 4,586 Operating expenditures 27,633 27,633 29,054 (1,421) Capital outlay - -- -Debt service - Principal reduction - Interest and fiscal charges - - TOTAL EXPENDITURES 214,596 214,596 211,431 3,165 EXCESS OF REVENUES OVER (UNDER)EXPENDITURES $ 92,690 $ 92.690 $ (5,118) $ 97,808 FUND BALANCE-Beginning 125,685 FUND BALANCE-Ending $ 120.567 The accompanying notes are an integral part of this statement. 25 COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND - DETAILED STATEMENT Year Ended September 30, 2011 General Fund REVENUES Variance Original Final Actual Favorable Charges for services Budget Budget (Unfavorable) LWC AG MIL $ 144,071 $ 144,071 $ 144,071 $ - BCB Urban MIL 55,000 55,000 55,000 - Lee County MIL - - - - - - Cape Coral MIL - Malibu Lakes Administrative Fees 3,494 3,494 3,203 (291) ROMA Administrative Fees 3.494 3.494 3,785 291 ROMA Application Fees 1,000 1,000 200 (800) Interest income 24 24 13 (11) Miscellaneous income 203 203 41 (162) Carryover 100,000 100,000 - (100,000) TOTAL REVENUES 307,286 307,286 206,313 (100,973) EXPENDITURES Current Operating Expenditures Personal services Salaries,taxes and benefits 171,500 171,500 166,818 4,682 Retirement 15,463 15,463 15,559 (96) TOTAL-PERSONAL SERVICES 186,963 186,963 182,377 4,586 Office Expenses Computer Equipment 1,199 1,199 1,184 15 Office Supplies 500 500 483 17 Other Supplies 320 320 632 (312) Books and Publications 100 100 254 (154) Postage and Shipping 150 150 105 45 Bank Service Charges 60 60 118 (58) Office Expenses-Other 1,200 1,200 296 904 TOTAL-OFFICE EXPENSES 3,529 3,529 3,072 457 Other Operating Expenses Dues 755 755 710 45 Insurance 9,509 9,509 8,087 1,422 Printing/Advertising 1,878 1,878 692 1,186 Professional Fees 6,000 6,000 9,366 (3,366) Cellular Phone 1,140 1,140 1,232 (92) Vehicle Expenses 2,769 2,769 5,339 (2,570) Training 400 400 - 400 Subtotal-Other Operating Expenses 22,451 22,451 25,426 (2,975) The accompanying notes are an integral part of this statement. 26 COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL — GENERAL FUND — DETAILED STATEMENT, CONTINUED Year Ended September 30, 2011 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) Other Operating Expenses(Continued) Travel 13 13 327 (314) - Florida Plats Sales Tax 8 8 8 - Contingency Fund - IFAS Citrus Grove Irrigation Project 1,330 1,330 87 1,243 TOTAL—OTHER OPERATING EXPENSES 23,802 23,802 25,840 (2,038) TOTAL—OPERATING EXPENSES $ 214,294 $ 214,294 $ 211,289 $ 3,005 CAPITAL OUTLAY Equipment 302 302 142 160 - TOTAL—CAPITAL OUTLAY DEBT SERVICE - - Principal reduction - - Interest and fiscal charges - TOTAL EXPENDITURES 214,596 214,596 211,431 3,165 EXCESS OF REVENUES OVER (UNDER)EXPENDITURES $ 92,690 $ 92,690 $ (5,118) $ (97,808) FUND BALANCE—BEGINNING $ 125,685 FUND BALANCE-ENDING $ 120.567 The accompanying notes are an integral part of this statement. 27 COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SPECIAL REVENUE FUND - SUMMARY STATEMENT Year Ended September 30, 2011 Mitigation Land Bank Fund Ori mal Variance REVENUES g Final Actual Favorable Budget Budget (Unfavorable) Interest Income $ 106 $ 106 $ 60 $ (46) Income 2,811 2,811 633 (2,178) - HSCA Phase I Carryover 63,235 63,235 7,616 (55,619) TOTAL REVENUES 66,152 66,152 8,309 (57,843) EXPENDITURES Current - - Reporting/Monitoring Expense - - Land Management Labor - Administrative Fees 1,200 1,200 1,200 - Professional Fees 48,053 48,053 5,600 42,453 Printing/Reproduction 582 582 582 Postage and Delivery 212 212 212 Supplies/Miscellaneous Expenses 300 300 300 - Service Charge 453 453 415 38 TOTAL OPERATING EXPENDITURES 50,800 50,800 8,309 42,491 DEBT SERVICE Principal Advances 0 0 Principal Reductions 0 0 Interest and Fiscal Charges - - 0 0 NET—DEBT SERVICE COSTS - - 0 0 TOTAL EXPENDITURES 50.800 50,800 8,309 42,491 EXCESS OF REVENUES OVER (UNDER)EXPENDITURES i 15,352 i 15,352 - i (15,352) FUND BALANCE—BEGINNING FUND BALANCE-ENDING The accompanying notes are an integral part of this statement. 28 COLLIER SOIL AND WATER CONSERVATION DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SPECIAL REVENUE FUND - SUMMARY STATEMENT Year Ended September 30, 2011 NGGE ROMA Fund Original Variance REVENUES g Final Actual Favorable Budget Budget (Unfavorable) Interest income $ 57 $ 57 $ 21 $ (36) Mitigation Credits Purchased 9,677 9,677 1,728 (7,949) Carryover 133,760 133,760 22,228 (111,532) TOTAL REVENUES 143,494 143,494 23,977 (119,517) EXPENDITURES Current Report Preparation 7,500 7,500 5,525 1,975 Chemicals Expense 8,034 8,034 3,196 4,838 Labor—ROMA Monitoring - - Labor—ROMA Treatments 90,000 90,000 10,700 79,300 - Equipment—Monitoring Supplies - - - - Equipment—Other - Administrative fees 939 939 1,200 (261) - - Contract Labor - Bank Service Charges 329 329 357 (28) Miscellaneous - - 455 (455) Postage and Delivery 166 166 212 (46) Printing and Reproduction 455 455 582 (127) Professional Fees 939 939 1,450 (511) Supplies 234 234 300 (66) TOTAL OPERATING EXPENDITURES 108,596 108,596 23,977 84,619 EXCESS OF REVENUES OVER (UNDER)EXPENDITURES $ 34,898 $ 34,898 - $ (34,898) FUND BALANCE—BEGINNING FUND BALANCE-ENDING The accompanying notes are an integral part of this statement. 29 ADDITIONAL REPORTS OF INDEPENDENT AUDITOR Mark K. Stout, CPA, PL P.O. Box 771177 Naples, FL 34107 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Supervisors Collier Soil and Water Conservation District 14700 Immokalee Road Naples, Florida 34120 We have audited the basic financial statements of Collier Soil and Water Conservation District as of and for the year ended September 30, 2011 and have issued our report thereon dated June 20, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered Collier Soil and Water Conservation District's internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing our opinion on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of Collier Soil and Water Conservation District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Collier Soil and Water Conservation District's internal control over financial reporting. 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 identified no deficiencies in internal control over financial reporting that we consider to be significant deficiencies. 30 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 basic 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 basic 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 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether Collier Soil and Water Conservation District's basic 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 basic 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 also noted certain other matters that we reported to management of Collier Soil and Water Conservation District in a separate letter dated June 20, 2012. This report is intended solely for the information and use of the Board of Supervisors, management, the Auditor General of the State of Florida, and other federal and state audit agencies. This report is not intended to be, and should not be, used by anyone other than these specified parties. Mark K. Stout, CPA, PL Naples, Florida June 20, 2012 31 Mark K. Stout, CPA, PL P.O. Box 771177 Naples, FL 34107 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Supervisors Collier Soil and Water Conservation District 14700 Immokalee Road Naples, FL 34120 We have audited the basic financial statements of Collier Soil and Water Conservation District (the "District") as of and for the fiscal year ended September 30, 2010 and have issued our report thereon dated June 20, 2012. In connection with our audit, we are submitting the following comments and recommendations in accordance with Chapter 10.550 "Rules of the Auditor General - Local Governmental Entity Audits" (Revised September 30, 2010) Rule 10.557(3) and Section 218.39(4) of the Florida Statutes. Prior Year Comments That No Longer Apply: 1. Deteriorating Financial Condition Should Be Monitored Although we do not believe the District to be in a state of financial emergency, the District had previously exhibited a decrease in a certain indicator of a deteriorating financial condition in comparison to its peer group. Our financial condition assessment of the District included the use of many procedures, including the indicator testing criteria established by the Office of the Auditor General of the State of Florida (Rule 10.550). The use of such criteria had previously indicated that the unreserved, undesignated fund balance was decreasing and lower than its peer group. The unreserved, undesignated fund balance has stopped decreasing as a result of steps taken by the District and remains only slightly below its peer group. Thus we believe all prior year management letter comments seemed to have been satisfactorily addressed by management and staff and require no further additional comment this year. We have included in this letter all comments which came to our attention during the course of our audit regarding Item 1, as applicable, of the "Rules of the Auditor General-Local Governmental Entity Audits," Rule 10.554, Section(1)(i). In regard to Item 1, nothing came to our attention to cause us to believe that at any time during the year the Collier Soil and Water Conservation District met any of the criteria for being in a state of financial emergency as defined in Florida Statute 218.503(1). In regard to item 7(c)(1), we applied financial condition assessment procedures pursuant to Rule 10.556(7) and noted the correction of the indicator of deteriorating financial condition as defined by Statute. 32 As such, we do not believe the District to be in a state of financial emergency as a consequence of conditions described in Section 218.503(1) of the Florida Statutes. Additionally, in regard to Item 7(b), we represent that the financial report filed with the Department of Financial Services, pursuant to Florida Statute 218.32(1)(a), is in agreement with the annual financial audit report for the same period. This report is intended solely for the information and use of the Board of Supervisors, management, the Auditor General of the State of Florida, and other federal and state audit agencies. This report is not intended to be, and should not be, used by anyone other than these specified parties. Mark K. 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