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`-Gaunty of Collier
CLERK OF THE C RC IT COURT
Dwight E. Brock COLLIER COUNTY OURT OUSE Clerk of Courts
g 3315 TAMIAMI TRAIL ST, S1 JITE#201 Accountant
Clerk of Courts NAPLES,FLORID 534112-5324 Auditor
Custodian of County Funds
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June 4,2014
The Honorable Tom Henning,Chairman
Collier County Board of County Commissioners
3299 Tamiami Trail East;Building F,Suite 201
Naples,FL 34112
Commissioners:
Audit report 2014-7, Fee Payment Assistance Program: Guadalupe Center, Inc., is enclosed for your
review.
Internal Audit has met with those involved and reviewed this report with management. We are issuing
this report to the Board today, June 4, 2014. The report becomes a public record today and will be
available on the Clerk of Courts website. Audit report 2014-7 is in the consent agenda of the June 10,
2014, Board of County Commissioners meeting. Staff is available to discuss any of the information
regarding this report at your convenience. Please contact Jim Molenaar at 252-2283.
Respectfully,
giV.a4)
Dwight E. rock
Clerk of the Circuit Court
DEB/pb
Cc: Hon.Tim Nance, Vice Chairman
Hon. Donna Fiala
Hon. Georgia Hiller, Esq.
Hon.Fred Coyle
Mr.Leo Ochs
Mr. Jeff Klatzkow
Ms.Crystal Kinzel
Phone- (239)252-2745 Fax-(239)252-2755
Website-www.collierclerk.com Email-collierclerk(c4clerkcollier.com
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Internal Audit Department
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Audit Report 2014-7
Fee Payment Assistance Program:
Guadalupe Center, Inc.
Dwight E. Brock
Clerk of the Circuit Court Issued: June 4, 2014
1299 Tamiami Trail East
Suite #402
Naples. FL 14112-5746
www.collierclerk.com
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Prepared by: Patrick Blaney, Senior Internal Auditor
Kristina Schoen, Internal Auditor
Report Distribution: Board of County Commissioners
Leo Ochs, Jr., County Manager
Amy Patterson, Manager, Impact Fee & Economic Development
Jeff Klatzkow, County Attorney
Mark Isaacson, Office of Management and Budget (OMB) Director
Cc: Dwight E. Brock, Clerk of the Circuit Court
Crystal K. Kinzel, Director of Finance & Accounting
Table of Contents
SUMMARY 2
OBJECTIVE 2
SCOPE 2
BACKGROUND 2
MANAGEMENT RESPONSE 3
CONCLUSION 3
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Internal Audit provided draft Audit Report 2014-7 to the Impact Fee Manager for management response on April
25, 2014. The Impact Fee Manager provided the management response on May 8, 2014.
Summary
Internal Audit conducted a site visit to vouch five Guadalupe Center, Inc., employees, filling created jobs,to payroll
data. Pay rates of those jobs were annualized, averaged, and compared to Ordinance requirements.
Payroll data was compared to the personnel records of employees filling the five created jobs. The data consisted of
employees' names, addresses, hire dates,job titles, and pay rates. The procedures revealed no exceptions.
These tests validated that Guadalupe Center, Inc., had created and continued to retain five jobs paying more than
50% of the County's private-sector average wage, and remains eligible to participate in the Fee Payment Assistance
Program.
Ob'ective
The objectives of this special request were to validate the five employees in the jobs created by Guadalupe Center,
and to validate the wages paid for the jobs created.
Sco s e
This engagement consisted of validating jobs created and their wages, including, but not limited to, the following:
• Reviewing section 125.045, Florida Statutes;
• Reviewing Collier County Ordinances 2003-61, 2004-24, 2004-45, 2005-30, 2006-36, 2008-25, and 2008-46;
• Checking the Tax Collector's records of tax payments;
• Validating payroll records from Guadalupe Center, Inc.;
• Visiting Guadalupe Center and interviewing the Chief Financial Officer;
• Tracing names, addresses,hire dates,job titles,and pay rates,to the personnel records of Guadalupe Center;
• Scheduling payroll data for all employees filling the created jobs; and
• Annualizing, averaging, and comparing pay rates of the five jobs to Ordinance requirements.
Internal Audit examined applicable payroll and personnel records for Guadalupe Center.
Back' round
The Fee Payment Assistance program was a performance-based Collier County initiative authorized in Board of
County Commissioners (BCC) Ordinance 2003-61, as amended. It is found in Chapter 49, Article II, of the Collier
County Code of Ordinances. The program paid selected impact fees for eligible development projects. Eligibility
criteria included the creation of minimum numbers of new jobs at or above specific wage levels. Ordinance 2003-61
states that the program's purposes were to:
1) Provide a performance-based program offering financial relief for eligible targeted industry development or
expansion projects in Collier County to mitigate the effects of rising Impact Fee rates;
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2) Provide for the economic well being of Collier County residents by providing high-wage employment
opportunities in Collier County;
3) Lessen the seasonal cycle of Collier County's economy; and
4) Encourage investment opportunities for new or existing companies thus increasing and diversifying the
County's tax base.
Ordinance 2003-61 originally terminated this program on October 1, 2008, but on September 9, 2008, the BCC
enacted Ordinance 2008-46, which extended the Fee Payment Assistance Program to October 1, 2013.
To be eligible, businesses had to apply to the County Manager prior to making the decision to locate or expand
within Collier County. The Fee Payment Assistance incentive award was calculated by multiplying the total capital
investment (land, building, equipment) of the expansion or relocation by the current millage rate, then multiplying
by either ten (projects located in areas outside the enterprise community) or 15 (projects located within the
enterprise community). This project used the multiplier 15 because it was located within the enterprise community.
This award, $73,998.79, equaled the amount of impact fees due for the project. Payments made under this program
were subject to funding availability.
On January 25, 2005, the BCC approved the application of Guadalupe Center, Inc., to participate in the Fee
Payment Assistance Program. The County Manager executed the BCC approved Fee Payment Assistance
Agreement (OR: 3754 PG: 3815-3821) with Guadalupe Center on March 17, 2005. The legal description for the
property, located at 509 Hope Circle, Immokalee, was included in Exhibit A to the Agreement.
The Agreement required the creation and retention of five new jobs at "an average wage equal to or greater than
50% of the County's (then) current private-sector average wage..." The Agreement also provided that the Fee
Payment Assistance Program would pay EMS, Correctional Facilities, Road, General Government Buildings, and
Fire Protection impact fees totaling$73,998.79.
Internal Audit observed the Impact Fee Office's verification of jobs created in accordance with Collier County's
Fee Payment Assistance Program in order to validate ongoing eligibility for participation. For Guadalupe Center's
location, program criteria called for a minimum of five new jobs paying at least 50% of the County's average
private-sector wage in effect at the time of the agreement. The business also had to pay its property tax bill in full
annually on or before its due date. However, Guadalupe Center is a Section 501(C)(3)not-for-profit corporation that
is exempt from property tax.
Mana ' ement Res s onse
"We appreciate the ongoing cooperation to complete the required annual monitoring of businesses participating in
the various County economic incentive programs. As always, the Internal Audit Department has been thorough,
helpful and direct in its review of this matter, and staff looks forward to the opportunity for continued collaboration
on this annual process. "
Conclusion
Due to Guadalupe Center's compliance with the requirements of the Fee Payment Assistance Program Ordinances,
there are no adverse observations to report.
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