The URL can be used to link to this page

Agenda 03/27/2018 Item #16D 403/27/2018 EXECUTIVE SUMMARY Recommendation to approve an after-the-fact electronic grant application submittal in the amount of $200,000 to the Community and Human Services Division (CHS) FY2018/2019 Housing and Urban Development (HUD) Community Development Block Grant (CDBG) for the replacement of the Immokalee Community Park existing playground with an ADA Compliant playground. OBJECTIVE: To expand recreation activities for users of all abilities. CONSIDERATIONS: The Collier County CHS Division recently announced the opening of the FY2018/2019 grant application cycle for HUD CDBG Funds. The application period continued through February 20, 2018, until 3 PM. Due to the short turnaround, staff secured the County Manager’s approval to submit the grant application as is contemplated in CMA 5330 and is seeking Board of County Commissioner’s (Board) approval after the fact. The replacement of the playground at the Immokalee Community Park is currently listed for replacement in the FY2018/2019 Park’s 306 Capital Projects. The application was submitted electronically. FISCAL IMPACT: Total cost for the project is $250,000. Although this grant application does not require a match; the Division is pledging a monetary match of $50,000. Funds for these services are budgeted within the Parks appropriations in Fund 306 Capital Projects. If awarded, grant revenue in the amount of $200,000 will be recognized through a Budget Amendment. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan related to this action. ADVISORY BOARD RECOMMENDATION: Due to the grant deadline of February 20, 2018, the Parks and Recreation Advisory Board will be notified of this Item at their March 21, 2018, regular meeting. LEGAL CONSIDERATIONS: The Board will have the opportunity to accept or reject the funds if the grant is approved. Accordingly, this Office has no issue with respect to the legality of this request, which is appropriate for Board action and requires a majority vote for Board action. -JAB RECOMMENDATION: To approve an after-the-fact electronic grant application in the amount of $200,000 to CHS’s FY2018/2019 HUD CDBG for the replacement of the Immokalee Community Park existing playground with an ADA compliant playground. Prepared By: Nancy E. Olson, Regional Manager, Parks and Recreation Division ATTACHMENT(S) 1. A Completed Application stamped by CAO (PDF) 2. Attachment 1 BCC 2017-2022 Certificate of Exemption (PDF) 3. Attachment 2 Articles of Incorporation (DOCX) 4. Attachment 3 By-Laws (DOCX) 5. Attachment 4 Organization Chart (PDF) 16.D.4 Packet Pg. 1060 03/27/2018 6. Attachment 5 Board of Directors (PDF) 7. Attachment 6a Division Director Class Spec (DOCX) 8. Attachment 6b Division Director Resume (DOCX) 9. Attachment 6c Matthew Catoe Resume (PDF) 10. Attachment 6d Operations Analyst Class Spec (DOCX) 11. Attachment 6e Operations Manager Class Spec (DOCX) 12. Attachment 6f Operations Manager Resume (DOCX) 13. Attachment 6g FY18 Pay and Classification Plan (PDF) 14. Attachment 7 Certificate of Good Standing (DOCX) 15. Attachment 8 Board Resolution (DOCX) 16. [Linked] Attachment 9a 2015 CAFR Report (PDF) 17. [Linked] Attachment 9b 2016 CAFR Report (PDF) 18. Attachment 10 Acknowledgement Letter0001 (JPG) 19. Attachment 11 Attestations (DOCX) 20. Attachment 12 CertificationofCDBG (DOCX) 21. [Linked] Attachment 13 Procurement Policy (PDF) 22. Attachment 13a IRS Form 990 (DOCX) 23. Attachment 14 Financial Analysis (XLSX) 24. Attachment 15a Render A (PDF) 25. Attachment 15b Render B (PDF) 26. Attachment 15c Render C (PDF) 27. Attachment 15d Render D (PDF) 28. Attachment 15e Render E (PDF) 29. Attachment 16 CM Memo 2018 02-20 CHS CDBG HUD Parks and Rec (PDF) 16.D.4 Packet Pg. 1061 03/27/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.4 Doc ID: 5002 Item Summary: Recommendation to approve an after-the-fact electronic grant application submittal in the amount of $200,000 to the Community and Human Services Division (CHS) FY2018/2019 Housing and Urban Development (HUD) Community Development Block Grant (CDBG) for the replacement of the Immokalee Community Park existing playground with an ADA Compliant playground. Meeting Date: 03/27/2018 Prepared by: Title: Operations Analyst – Parks & Recreation Name: Matthew Catoe 03/02/2018 10:37 AM Submitted by: Title: Division Director - Parks & Recreation – Parks & Recreation Name: Barry Williams 03/02/2018 10:37 AM Approved By: Review: Parks & Recreation Ilonka Washburn Additional Reviewer Completed 03/02/2018 12:08 PM Parks & Recreation Barry Williams Additional Reviewer Completed 03/05/2018 4:12 PM Operations & Veteran Services Sean Callahan Additional Reviewer Completed 03/06/2018 1:02 PM Public Services Department Todd Henry Level 1 Division Reviewer Completed 03/06/2018 1:46 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 03/12/2018 2:13 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 03/12/2018 4:46 PM Grants Edmond Kushi Level 2 Grants Review Completed 03/14/2018 8:45 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/14/2018 9:07 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/15/2018 9:03 AM Grants Therese Stanley Additional Reviewer Completed 03/16/2018 12:46 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 03/17/2018 7:45 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 03/20/2018 10:02 AM Board of County Commissioners MaryJo Brock Meeting Pending 03/27/2018 9:00 AM 16.D.4 Packet Pg. 1062 (qq 3no[erd ut pel.ll lielppr 6ullt"ru ruor] luere[tp lD .to.rppv tpct3lqd '9 ONJ S€A /r (Ne e udn i e! d llf,A sg,,rys' uewnH pue hlunwwoa) alsnulul rarnpaaord 6u0uodo uellur r e^!q ibu90! rnol saoo'9 ONJ se^ , (custig udn g! q !r,A se9rues u?unH pua fitunwwaJ) alallod p3lueuodurl I lueurgrntordrt?tall 'lauuoaJad utUtt/vr s^Eq lcue6t JnoI seoo 't ONy' SEA J (qet s,,ueuncoo eq ul unJ quewe4nbeA Lono4wfuO snoldrcA lo ]/ueueapet,/.oury,9v tff,,eu9 pus etqdunc $nw suolezluea.a peseq,qlle! e '9el ]l apetlq r0ltl ,(rueEB ro uonrzluaBro inotr al 'e ']vlol' r'r " srea^ s6 zuoDBJedo ul uooq nol o^El.l sJEer( IuBr! rvroH'z oN, s9,\ -J atnrsrr (cx3)ro9 $t/n luord-uou e uo[rztulBro rno^ 3l '! NOt.t-vwuolNt NotrvaNvguo AcNf0v :0 uorlcos uo!lEu!olul ^.uo6v 061166910 ^06 U^unooJafiPo l ni$ aoge-zgz$ez 160&z9z$ez seJldx3 NVS sNno qaM xBl auoqdqel i50T66rq'16@lstrefi?ffiai surelltlM IJJSS Joperlo z! !t€ 1l 'satdeN eoe euns l6e3 llerJ' lLrrBlure1 66ze uolsl^lo uo[reJr9u pu! ued aleuolaaluluro9 AunoC relllo3 ,o pJBog tgohzEztez :tar I60566r€tt:5-|||o-t@trdsibltriEB uoslo ,bueN psluoc pelord Foc palord telol 000'06z $ palsanbeu 00'oo0'002 3 IrEd Al!unutuoC selE)lotuull rol ,qlllcEJ punor6^qd VOV uo!st^lo uonea.lceu pus ued sreuolss!utuloc Aunoc Jelllo3lo pJsoS eut|p.eeq gtoztozlz (ggOO) luBrc l.olg lueudolo^oo &tunuuloc 8loz s@!^Jes ueurnH puB Alunuuroc sarruas ueuJnH pue AlunLUUJoc Aunoc Jellpc ;SfueiSn66zaqTdjdfr6J {attzo5 l vv /r^opu!i asottr lulrd lod 3e e^es Ma!^ard allll I'eurf A -&rwn7 puelue euou $sstuoc tBuo0lppv 16.D.4.aPacket Pg. 1063Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1064 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1065 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1066 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1067 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1068 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1069 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1070 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.a Packet Pg. 1071 Attachment: A Completed Application stamped by CAO (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.bPacket Pg. 1072Attachment: Attachment 1 BCC 2017-2022 Certificate of Exemption (5002 : ADA Playground Facility for Immokalee Community Park) Exhibit Articles of Incorporation N/A 16.D.4.c Packet Pg. 1073 Attachment: Attachment 2 Articles of Incorporation (5002 : ADA Playground Facility for Immokalee Community Park) Exhibit By-Laws N/A 16.D.4.d Packet Pg. 1074 Attachment: Attachment 3 By-Laws (5002 : ADA Playground Facility for Immokalee Community Park) Business & Economic Development Division Jace Kentner, Director Administrative Services Department en Golden Price, Dept.Head Bureau of Emergency Services Division Dan Summers, Director Communication & Customer Relations Division Mike Sheffield, Director Fleet Management Division Dan Croft, Director Human Resources Division Amy Lyberg, Director Information Technology Division E. Michael Berrios, Director Procurement Services Division Ted Coyman, Director Risk Management Division Jeff Walker, Director P Executive Director of elican Bay Services Tourism Division Corporate Financial & Corporate Business Division Jack Wert, Director Management Services Operations Neil Dorrill, Director Division Community Redevelopment Tim Durham Mark Isackson, Director Agencies Growth Management Department Public Services Department Public Utilities Department Thaddeus Cohen, Dept. Head Steve Carnell, Dept. Head G. George Yilmaz, Dept. Head James French, Deputy Dept. Head Dan Rodriguez, Deputy Dept. Head Building Plan Review & Domestic Animal Services Inspection Division Division Facilities Management Rich Long, Director Darcy Andrade, Director Division Dennis Linguidi, Director Capital Project Planning, Impact Health Division Fees, and Program Management Stephanie Vick, Director Amy Patterson, Director Operations Support Division Joseph Bellone, Director Community & Human Services Code Enforcement Division Division Mike Ossorio, Director Kim Grant, Director Engineering & Project Development Review Division Management Division Library Division Matt McLean, Director Tom Chmelik, Director Tanya W illiams, Director Solid & Hazardous Waste Operations & Regulatory Mgmt Museum Division Management Division Division Amanda Townsend, Director Dilia Camacho, Interim Ken Kovensky, Director Director Operations & Veteran Svcs Operations Support Division Division Gene Shue, Director Wastewater Division Sean Callahan, Director Beth Johnssen, Director Parks & Recreation Division Road Maintenance Division Barry Williams, Director Travis Gossard, Director Water Division Steve Messner, Director University Extension Service Division Transportation Engineering Twyla Leigh, Director Division Jay Ahmad, Director Public Transit & Neighborhood Enhancement Division Zoning Division Michelle Arnold, Director Michael Bosi, Director Click on box to open the web page of each area. L Deputy County Manager Board of County Commissioners Jeffrey Klatzkow Leo Ochs, Jr. Mark Strain Chief Hearing Examiner County Attorney County Manager Corporate Compliance and Internal Review Michael Nieman, Compliance Counsel Nick Casalanguida August 7, 2017 16.D.4.e Packet Pg. 1075 Attachment: Attachment 4 Organization Chart (5002 : ADA Playground Facility for Immokalee Community Collier County Board of County Commissioners • Donna Fiala District 1 • Andy Solis, Esq: Chairman District 2 • Burt L. Saunders District 3 • Penny Taylor District 4 • William L. McDaniel, Jr: Vice Chairman District 5 16.D.4.f Packet Pg. 1076 Attachment: Attachment 5 Board of Directors (5002 : ADA Playground Facility for Immokalee Community Park) Division Director - Parks and Recreation Bargaining Unit: General/Non-Union Class Code: 15699 COLLIER COUNTY Revision Date: Oct 1, 2017 SALARY RANGE $45.85 - $67.56 Hourly $3,668.27 - $5,404.62 Biweekly $95,375.00 - $140,520.00 Annually PURPOSE OF CLASSIFICATION: The purpose of this classification is to direct operations of the Parks & Recreation Division, to include assessment of community recreational needs, acquisition of land, construction of parks/facilities, and development and implementation of programs to meet community needs. ESSENTIAL FUNCTIONS: Supervises, directs, and evaluates assigned staff, processing employee concerns and problems, directing work, counseling, disciplining, and completing employee performance appraisals. Coordinates daily work activities; organizes, prioritizes, and assigns work; conducts staff meetings; monitors status of work in progress and inspects completed work; confers with assigned staff, assists with complex/problem situations, and provides technical expertise. Ensures divisional compliance with all applicable codes, laws, rules, regulations, standards, policies and procedures; ensures adherence to established safety procedures; monitors work environment and use of safety equipment to ensure safety of employees and other individuals; initiates any actions necessary to correct deviations or violations. Consults with Department Head of Public Services, Board of County Commissioners, or other officials to review division operations/activities, review/resolve problems, receive advice/direction, and provide recommendations; prepares and presents various reports to Board of County Commissioners; serves as liaison and technical advisor to Parks & Recreation Advisory Board; provides staff assistance to Department Head of Public Services as needed. Develops and implements long and short term plans, goals, and objectives for the division; develops five-year plan for growth management; evaluates efficiency and effectiveness of division operations, methods, procedures, and use of resources; implements improvements as needed. Develops, updates, and implements divisional policies and procedures. Develops and implements divisional operating and capital budgets; monitors expenditures to ensure compliance with approved budget; researches alternate funding sources and supplements division funds through grants and donati ons; determines fee schedules for park services. Directs activities involving planning and construction of parks and related facilities; 16.D.4.g Packet Pg. 1077 Attachment: Attachment 6a Division Director Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) coordinates acquisition of land to be used for parks projects; reviews site development plans and architectural drawings for new facilities; supervises construction projects; oversees, coordinates, and monitors work performed by outside contractors; provides project reports to upper management and County Commissioners; approves change orders within designated parameters. Performs regular/periodic inspections of park facilities; monitors park operations and identifies potential problems; initiates work orders for needed repair/maintenance work. Coordinates/conducts assessments of recreational needs and interests of the community; determines appropriate types of programs to offer for various populations and age groups; promotes recreational programs within the community; evaluates participation levels and overall effectiveness and success of programs; implements addition, deletion, or revision of programs; oversees, monitors, participates in, and/or evaluates recreation programs, special events, and major community events. Coordinates division programs, events, and activities with other divisions, outside agencies, or others as needed; coordinates joint programs and facility development with local cities and school systems. Administers and implements contracts with outside service providers; negotiates contracts with consultants and concessionaires; recommends awarding of contra cts to County Commissioners; approves contracts with designated parameters. Recommends changes to legislation and amendments to current ordinances. Compiles or monitors administrative and/or statistical data pertaining to division operations; analyzes data and identifies trends; summarizes data and prepares reports. Performs administrative tasks; reviews/approves time sheets, training requests, and travel requests; reviews/approves purchase requests and invoices. Prepares or completes various forms, reports, correspondence, annual management plans, executive summaries, project reports, meeting agendas, budget documents, grant applications, performance evaluations, policies, procedures, or other documents. Receives various forms, reports, correspondence, budget reports, invoices, contracts, change orders, time sheets, training requests, travel requests, fee schedules, policies, procedures, site development plans, architectural drawings, maps, manuals, publications, reference materials, or other documentation; reviews, completes, processes, forwards or retains as appropriate. Operates a personal computer, motor vehicle, digital camera, copy machine, fax machine, or other equipment as necessary to complete essential functions, to include the use of word processing, spreadsheet, presentation, e mail, Internet, or other computer programs. Monitors inventory of division equipment, materials, and supplies; ensures availability of adequate materials to conduct work activities; initiates orders for new/replacement materials; prepares and reviews bid proposals. Provides information to the public; responds to questions and complaints related to division programs, operations, and activities; researches problems and initiates problem resolution; resolves conflicts involving contractors, consultants, or citizens. Serves as division spokesperson with the media; responds to media requests for information and interviews regarding division programs, activities, and issues. Communicates with County officials, other divisions, employees, volunteers, program participants, vendors, sales representatives, contractors, architects, consultants, local businesses, schools, community organizations, public safety agencies, government agencies, the public, the media, outside organizations, and other individuals as needed to coordinate work activities, review status of work, exchange information, resolve problems, or give/receive advice/direction. Attends meetings, serves on committees, and makes presentations as needed; delivers 16.D.4.g Packet Pg. 1078 Attachment: Attachment 6a Division Director Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) presentations to civic groups and community organizations; develops and monitors Parks & Recreation task force committees. Maintains a comprehensive, current knowledge of applicable laws/regulations; maintains an awareness of new trends and advances in the profession; reads professional literature; maintains professional affiliations; participates in continuing education; attends conferences, workshops, and training sessions as appropriate. ADDITIONAL FUNCTIONS Performs general/clerical tasks, which may include answering telephone calls, making copies, sending/receiving faxes, filing documentation, or processing incoming/outgoing mail. Performs other related duties as required. In the event of a declared state of emergency, employees in this classification may be called to work during days or hours other than those for which they are regularly scheduled. PERFORMANCE APTITUDES Data Utilization: Requires the ability to coordinate, manage, and/or correlate data. Includes exercising judgment in determining time, place and/or sequence of operations, referencing data analyses to determine necessity for revision of organizational components, and in the formulation of operational strategy. Human Interaction: Requires the ability to function in a divisional director capacity for a major organizational unit requiring significant internal and external interaction. Equipment, Machinery, Tools, and Materials Utilization: Requires the ability to operate, maneuver and/or control the actions of equipment, machinery, tools, and/or materials used in performing essential functions. Verbal Aptitude: Requires the ability to utilize a wide variety of reference, descriptive, advisory and/or design data and information. Mathematical Aptitude: Requires the ability to perform addition, subtraction, multiplication and division; ability to calculate decimals and percentages; may include ability to perform mathematical operations with fractions; may include ability to compute discount, interest, profit and loss, ratio and proportion; may include ability to calculate surface areas, volumes, weights, and measures. Functional Reasoning: Requires the ability to apply principles of influence systems, such as motivation, incentive, and leadership, and to exercise independent judgment to apply facts and principles for developing approaches and techniques to resolve problems. Situational Reasoning: Requires the ability to exercise judgment, decisiveness and creativity in situations involving broader aspects of organizational programs and operations, moderately unstable situations, or the direction, control and planning of an entire program or set of programs. ADA COMPLIANCE Physical Ability: Tasks require the ability to exert light physical effort in sedentary to light work, but which may involve some lifting, carrying, pushing and/or pulling of objects and materials of light weight (5-10 pounds). Tasks may involve extended periods of time at a keyboard or workstation. Sensory Requirements: Some tasks require the ability to perceive and discriminate visual cues or signals. Some tasks require the ability to communicate orally. Environmental Factors: Performance of essential functions may require exposure to 16.D.4.g Packet Pg. 1079 Attachment: Attachment 6a Division Director Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) adverse environmental conditions, such as humidity, temperature extremes, or traffic hazards. MINIMUM QUALIFICATIONS: Bachelor's degree in Recreation Administration or closely related field; supplemented by six (6) years of progressively responsible previous experience and/or training that includes public recreation agency management, recreation program administration, long range strategic planning, construction project management, budget management, public relations, and management; or any equivalent combination of education, training, and experience which provides the requisite knowledge, skills, and abilities for this job. Must possess and maintain a valid Florida Driver's License with any applicable endorsements and maintain eligibility requirements and endorsement(s) to drive a County vehicle as provided in CMA 5805. Fingerprinting required. SUPPLEMENTAL INFORMATION: BCC130 Exempt 16.D.4.g Packet Pg. 1080 Attachment: Attachment 6a Division Director Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) Barry Allen Williams 10781 Regent Circle; Naples, FL 34109 (239) 593-4021 Home; (239) 252-4035 Work E-mail: BarryWilliams@colliergov.net Career Summary Highly skilled, professional Parks and Recreation Director with over 22 years experience within a non-profit and governmental setting. Proficient in planning, developing, implementing, and managing large Parks and Recreation Department. Possess exceptional analytic, verbal, and written skills. Knowledgeable regarding management, programmatic, and budgetary tasks. Professional Employment History Collier County Parks and Recreation Department, Director (June 2006-Present) Director of Department  225 regular full time and part time employees and 150 seasonal employees.  61 Regional, Community, and Neighborhood Parks with approximately 2000 acres maintained.  2500 capacity Aquatics Facility and Waterpark  (8) Recreation Community Centers  (2) Skateparks and BMX Track  (2) Community Pools  (3) Fitness Centers with (3) Executive Fitness Centers  $23M budget Collier County Human Services Department, Director (October 2001- June 2006)  Responsible for direction of health related assistance programs for the uninsured in Collier County (population base of 300,000 with estimated number of uninsured of 33,000).  Director of lead agency responsibility for elder services in Collier County. Lead Agency services estimated at $2.2 million.  Partnered with local community organization to develop primary care clinic for the poor through use of Upper Payment Limit programming.  Obtained $850,000 in Community Development Block Grant funds funding for Senior Center in East Naples.  Obtained Federal funding for prescription medications for poor and uninsured in Collier County.  Supervise (18) program, clerical, and fiscal staff.  Annual budget responsibility of $7.25 million.  RSVP Program received NaCO 2003 “Acts of Caring” Award in Social Services 16.D.4.h Packet Pg. 1081 Attachment: Attachment 6b Division Director Resume (5002 : ADA Playground Facility for Immokalee Community Park) Barry Williams Resume Page Two Ruth Cooper Center 2789 Ortiz Avenue Fort Myers, FL 33905 Florida Assertive Community Treatment, Team Leader (May 2000- September 2001)  Responsible for the administration and supervision of Florida Assertive Community Treatment Team (12) clinical and administrative staff.  Budget management of approximately $1.1 million dollars. Director Outpatient Services (May 1999-April 2000)  Responsible for managing outpatient behavioral health clinics in the Lee County area.  Supervised clinical staff, managed budget of approximately $2.5 million dollars. LifeSkills, Inc. 922 State Street Bowling Green, KY 42102 (270) 842-0161 Clinical Director, Adult Services (July 1998-April 1999)  Responsible for clinical direction of adult services within the behavioral health division.  Responsible for (14) program components involving (75) clinical staff.  Provided outpatient substance abuse counseling to court-ordered individuals and persons seeking treatment voluntarily.  Expanded Case Management services by 150%.  Expanded Supported Employment services by 50%. Community Support Director (July 1991-July 1998)  Responsible for development of a service array to assist adults within the community.  Developed this array with the assistance of local, state, and national key informants.  Recognized as “Outstanding Program Administrator” by Governor Brereton C. Jones – 1994.  Recruited and retained professional staff. 16.D.4.h Packet Pg. 1082 Attachment: Attachment 6b Division Director Resume (5002 : ADA Playground Facility for Immokalee Community Park) Barry Williams Resume Page three  Directly supervised (10) program components with staff of (75) and budget of approximately $4 million annually.  Developed contracts between corporation and state government. Education Florida Gulf Coast University Graduated May 2004, Master’s Degree in Business Administration. University of Louisville Graduated December 1990, Master’s Degree in Social Work, Certified Social Worker. Western Kentucky University Graduated May 1987, Bachelor’s degree in Psychology, graduated magna cum laude. License/Certifications Florida Board of Social Work, License # 5815 Certified Parks and Recreation Executive Computer Skills/Miscellaneous Proficient in Microsoft Office Suite, WordPerfect, Lotus 1-2-3, Honorable Discharge from United States Air Force (Staff Sergeant). Organizations/Affiliations  Past Chairperson Collier County Hunger and Homeless Coalition  Past Board Member Collier County Community Alliance  Past Treasurer Florida Association of Social Service Executives (FACSSE)  Current Volunteer Big Brother/Big Sister of Collier County  Past Co-Chair Collier County Health Consortium  Past Vice-President of Education, Collier Communiqué, Toastmaster’s Club  Past Board member Naples Zoo, Inc. 16.D.4.h Packet Pg. 1083 Attachment: Attachment 6b Division Director Resume (5002 : ADA Playground Facility for Immokalee Community Park) Matthew S. Catoe 10641 Wood Ibis Ave, Bonita Springs, FL 34135 (239) 565-3343 matthew.catoe@yahoo.com Objective: Project Manager/Purchasing Summary of Qualifications I am a seasoned US Air Force veteran and District Operations Manager who is a highly logical and resourceful candidate offering significant experience in all areas of material management, purchasing, warehouse management, and inventory control. I have a proven ability to establish, maintain and foster positive and harmonious working relationships as well a strong communication, job coordination, organizational, negotiation and supervisory skills. A major component of my current duties includes the ability to interpret and translate complex contracts and policy documentations. I have maintained a track record of significant achievement, to include reducing costs, improving sales, developing & improving purchasing programs to meet corporate objectives. I believe I would be an asset to any team that strives for continuous improvement. Positions Relevant to this Assignment Collier County Board of County Commissioners, 05/2015 – Present Operations Analyst/Procurement Strategist This position procures a variety of goods, services and construction activities for the various County Divisions; develops and administers contracts pursuant to each purchase in conformance with Local, State and Federal procurement laws; coordinates work between the private sector and operating department staff to develop and evaluate var ious solicitation vehicles for a range of commodities, services, and construction; and, exercises an extensive degree of independent judgment and technical expertise in maintaining the integrity of contract processes, accountability, and assuring clear aud it trails. Responsibilities include: receiving requests from departments; sourcing commodities and services; determining procurement method; developing specifications, scope of work and selection criteria; evaluating vendor responses; responding to vendor protests of awards; developing the proper contract; drafting contracts with terms and conditions; maintenance of standard contract language; negotiating with vendors; oversight and contract administration; review and approval of work orders; drafting of executive summaries; and, modification to contracts and assistance in resolving contract disputes. Act as a liaison with Procurement, Risk Management, Finance, Grants Compliance, County Attorney and Office of Management and Budget. Exide Technologies, Knoxville, TN 03/2011 – 05/2015 District Operations Manager (Last) In this position I had to plan, direct, and coordinate the production, pricing, sales, and distribution of all assigned products. This includes but is not limited to formulating policies, managing daily operations, and planning the use of materials and human resources. I also managed the tasks that are too diverse and general in nature to be classified in any one functional area of management or administration, such as personnel, purchasing, or administrative services. While identifying, developing and implementing best practice that increase performance, I ensured that all resources were managed and directed to ensure effective business operations. All these and ample other tasks were completed with a proven track record of achieving and managing a team to exceed targets. Warehouse Manager (Prior) In this position I directly supervised and coordinated activities of the warehouse and employees in my established areas of responsibility. I mainly acted as an ambassador between associates and higher management which included management functions, such as purchasing, budgeting, accounting, and personnel work, in addition to supervisory duties. I also provided customer service by greeting and assisting customers, and responding to customer inquiries and complaints. It was imperative that I controlled all associated operational costs according to the prevailing annual budget forecast while identifying, developing and securing business opportunities in line with the business plan. Other management tasks included implementing procurement processes, procedures, policy setting, and successful completion of all duties. 16.D.4.i Packet Pg. 1084 Attachment: Attachment 6c Matthew Catoe Resume (5002 : ADA Playground Facility for Immokalee Community Park) MATTHEW S. CATOE Previous Career Highlights *****Detailed description of past employment available upon request***** Interline Brands Inc. 10/2008 – 03/2011 Operations Manager/Procurement Specialist Under the guidance of the Regional Vendor Managed Inventory (VMI) Operations Manager, this position was responsible for researching, sourcing, selling, and maintaining items needed by the customer at the VMI location. This included but was not limited to the following: cross-referencing take-offs, coordinating material(s) for the different phases of a job; working with each of the customer’s divisions to ensure we are supplying the inventory that is needed; purchased machinery, equipment, tools, parts, supplies, or services necessary for the operation of the establishment. I procured raw or semi - finished materials for maintenance and manufacturing. I prepared documents, processed transactions, and maintained files applicable to automated purchasing systems and other electronic methods. I was able to analyze statistical data pertinent to all purchase card functions and performed market research, review requirements to include descriptions, furnished property, availability of funds, justifications for sole source, brand name purchasing, and delivery requirements. UNITED STATES AIR FORCE (USAF), 04/2003 – 5/2008 Medical Logistics Specialist – Purchasing Agent I was charged with analyzing product delivery and supply chain processes to identify or recommend changes to senior management. On a daily basis I managed inventory activities including, but not limited to invoicing, electronic bills, and shipment tracing. I also maintained “just-in-time” ordering to reduce organization inventory from $191K to less than $1K. Additionally, I purchased $35K per day in medical/non-medical supplies; maintained six WRM projects records valued at $5.6 million; manage an equipment management program of 1.9k items valued at $16.8 million; and purchased through government purchase card holder (GPC) program, maintained strict accounting of GPC purchases and reconciled monthly statements of up to $300 thousand. As an internal auditor of processes I managed 26 forward logistics supply accounts of $28 million in annual sales and evaluated and monitored contract performance to ensure compliance with contractual obligations. Education/ Technical Training ❖ B.A. Business Management, In Progress ❖ Logistics Management, Community College of the Air Force, Sheppard AFB, TX ❖ Diploma, Estero High School, May 2002, Estero, FL ❖ Leadership School - March 2008 - Leadership/Mgmt: Role/responsibilities of working leaders; includes theories/techniques of effective leadership/concepts of human behavior in leadership situations; practice in maintaining standards of discipline, counseling/interviewing personnel, personnel mgmt, problem-solving techniques, and work distribution. ❖ Medical Material Specialist – August 2003- Includes procedures/methodology in electronic data system of item/financial accounting, requisitioning, document/stock control, equipment mgmt, and related procedures necessary to operations of AF med supply account. Computer Skills ❖ Proficient in Microsoft Word, Excel, PowerPoint, Outlook ❖ Defense Medical Logistics Standard Support (DMLSS) System Administrator ❖ Defense Logistics Agency Regulation (DLAR) ❖ RS6000 ❖ JD Edwards, XATA, SAP Certifications ❖ Hazardous Material Technical Specialists ❖ Department of Defense Government Purchase Card 16.D.4.i Packet Pg. 1085 Attachment: Attachment 6c Matthew Catoe Resume (5002 : ADA Playground Facility for Immokalee Community Park) Operations Analyst Bargaining Unit: General/Non-Union Class Code: 91004 COLLIER COUNTY Revision Date: Oct 1, 2017 SALARY RANGE $25.06 - $38.72 Hourly $2,004.77 - $3,097.35 Biweekly $52,124.00 - $80,531.00 Annually PURPOSE OF CLASSIFICATION: The purpose of this classification is to coordinate special projects and conduct research and analysis of various divisional functions and operations. Work at this level is of a responsible, technical or professional level relative to a supporting role in the management of a division, department, or operation, but without supervisory or managerial responsibilities. All authority and autonomy inherent in this classification is at the discretion of and delegated by a Division Director or Department Head. ESSENTIAL FUNCTIONS: Conducts operational and legal research, productivity analyses and management studies to assist in the management of divisional operations, programs, and services: compiles and/or monitors various administrative, legal and statistical data pertaining to departmental operations; researches information pertinent to task or project; analyzes data and identifies trends; prepares or generates reports; prepares legal documents and agreements; makes recommendations for changes in policies and procedures to improve operations, provide more responsive service, and/or optimize the use of resources; and develops recommendations for changes in divisional policies and procedures; and provides technical assistance and information to management to aide decision making. Performs financial reviews and analyses for the division: compiles and evaluates operational data and cost histories; monitors and reviews billing activities, expenditures, and financial reports; conducts detailed cost analysis; makes recomm endations to improve cost and operational effectiveness; and participates in budget development. Coordinates special projects for the division, including the planning, design, implementation, and evaluation of moderate construction/maintenance projects, management studies, introduction of new programs, and various professional services: assists in defining the scope of the project; identifies and recommends proper allocation of financial, material, and human resources committed to the project; formulates solutions and resolves problems; facilitates implementation of the project; and provides administrative support to the project as needed. Work at this level is usually relegated to coordination of the division's participation in major, county-wide projects, and serves in a secondary or subordinate role to the designated construction manager for large capital improvement projects. Oversees professional contractors and/or consultants providing services for projects: participates in the evaluation and selection of contractors/consultants; interfaces with and monitors the contractors/consultants to ensure timely and quality completion of project; facilitates cooperation with the project throughout the organization; and 16.D.4.j Packet Pg. 1086 Attachment: Attachment 6d Operations Analyst Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) provides information and support as needed. Assists the division managers with strategic and long-range planning for divisional operations: participates in planning efforts at the local and regional level; keeps Division Director apprised of developments at the state and federal level hat impact the division; monitors pending legislation for impact on operations; oversee compliance with new legislation. Administers grants for various state and federally funded programs: compiles and submits grant applications; researches funding sources and program op portunities; assists divisions with grant activities; monitors and ensures compliance with all requirements for awarded grants. Responds to complaints and questions related to county or division operations, activities, or other issues: responds to county manager and/or board of county commissioners inquiries or complaints as requested, provides information, researches problems, and initiates problem resolution; and works with supervisors and managers to ensure effective communication, coordination and coope ration across units. Represents the department head, division directors and division at various meetings, functions, and events: serves as a liaison to various civic or governmental organizations and committees, taskforces, boards, and commissions; confers regularly with officials from the state, authorities, and commissions; provides information about divisional operations; participates in discussions and decisions; and keeps the division director apprised of activities. ADDITIONAL FUNCTIONS Performs other related duties as required. In the event of a declared state of emergency, employees in this classification may be called to work during days or hours other than those for which they are regularly scheduled. PERFORMANCE APTITUDES Data Utilization: Requires the ability to evaluate, audit, deduce, and/or assess data using established criteria. Includes exercising discretion in determining actual or probable consequences and in referencing such evaluation to identify and select alternatives. Human Interaction: Requires the ability to apply principles of persuasion and/or influence over others in coordinating activities of a project, program, or designated area of responsibility. Equipment, Machinery, Tools, and Materials Utilization: Requires the ability to operate, maneuver and/or control the actions of equipment, machinery, tools, and/or materials used in performing essential functions. Verbal Aptitude: Requires the ability to utilize a wide variety of reference, descriptive, advisory and/or design data and information. Mathematical Aptitude: Requires the ability to perform addition, subtraction, multiplication, and division; the ability to calculate decimals and percentages; the ability to utilize principles of fractions; and the ability to interpret graphs . Functional Reasoning: Requires the ability to apply principles of rational systems; to interpret instructions furnished in written, oral, diagrammatic, or schedule form; and to exercise independent judgment to adopt or modify methods and standards to meet variations in assigned objectives. Situational Reasoning: Requires the ability to exercise judgment, decisiveness and creativity in situations involving evaluation of information against measurable or verifiable criteria. 16.D.4.j Packet Pg. 1087 Attachment: Attachment 6d Operations Analyst Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) Leadership: Requires demonstrated ability to guide the department business plan, represents the administrator, division directors and division at various meetings; serves as a liaison to various committees, confers with the commissioners and managers office regularly; provides information about divisional operations, procedures and policies; and assist in staff training or mentoring as the situation may dictate. Customer Service: Requires the ability to recognize and promote support for internal and external customer needs; exercise judgment to resolve problems, issues and questions that arise; demonstrates an ability to be flexible and sensitive within governmental policies and procedures to internal and external customer needs and concerns. Financial Accountability: Requires the ability to analysis various operational data; makes recommendations to improve cost and operational effectiveness; and participates in budget development when necessary. ADA COMPLIANCE Physical Ability: Tasks require the ability to exert light physical effort in sedentary to light work, but which may involve some lifting, carrying, pushing and/or pulling of objects and materials of light weight (5-10 pounds). Tasks may involve extended periods of time at a keyboard or workstation. Sensory Requirements: Some tasks require the ability to perceive and discriminate sounds, visual cues or signals. Some tasks require the ability to communicate orally. Environmental Factors: Essential functions are regularly performed without exposure to adverse environmental conditions; however some field work with exposure to minor environment conditions may be a function of assignment. MINIMUM QUALIFICATIONS: Bachelor's degree in Public/Business Administration, operations research, a field related to assigned operation, or equivalent technical experience and certification; supplemented by three years of experience in area of assignment; or any equivalent combination of education, training, and experience which provides the requisite knowledge, skills, and abilities for this job. Understands governmental laws, regulations and policies. Must possess and maintain a valid Florida Driver's License with any applicable endorsements and maintain eligibility requirements and endorsement(s) to drive a County vehicle as provided in CMA 5805. Fingerprinting required. SUPPLEMENTAL INFORMATION: BCC119 Exempt 16.D.4.j Packet Pg. 1088 Attachment: Attachment 6d Operations Analyst Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) Manager - Park Operations Bargaining Unit: General/Non-Union Class Code: 15630 COLLIER COUNTY Revision Date: Oct 1, 2017 SALARY RANGE $32.02 - $49.47 Hourly $2,561.42 - $3,957.38 Biweekly $66,597.00 - $102,892.00 Annually PURPOSE OF CLASSIFICATION: The purpose of this classification is to oversee, plan, direct, and supervise fiscal personnel and operational activities within the Parks and Recreation Division. Employee in this classification provides budgetary, operational, and administrative support to the Division Director as assigned. ESSENTIAL FUNCTIONS: Supervises, directs, and evaluates assigned staff, processing employee concerns and problems, directing work, counseling, disciplining, and completing employee performance appraisals Directs the financial staff to ensure all financially related transactions are accurate and processed in a timely manner and are in compliance with financial guidelines relative to the Clerk's office and Budget Office requirements, divisional budgetary allowance, senio r parks management ,and all other division directed policies. Prepares, organizes, implements and administers the yearly divisional revenue/expenditure budget requests including the operating capital budget. Oversees expenses for Parks and Recreation division; prepares cost estimate for budget preparation. Develops and submits budget for assigned units. Maintains records on activities, services and personnel (such as fees, beach users, rentals, users of facilities) in order to monitor and adjust recreation programs. Prepares and analyzes program reports and correspondence for use by staff. Complies and interprets data for reports and memoranda regarding operating achievements. Manages the financial staff to ensure all financially related transactions are acc urate and processed in a timely manner and are in compliance with financial guidelines relative to the Clerk's office and Budget Office requirements, divisional budgetary allowance, senior parks management and all other division directed policies. Serves as the financial liaison to the Office of Management & Budget and the Clerk of Courts finance staff ensuring that budgets are developed on time, that they adhere to the required formats and that invoices and bills are properly reviewed, analyzed and processed. Provides information related to the division's financial matters and data in association with all audits involving the division. Develops and reviews contracts; manages contracts and contractors; Enforces, oversees and tracks agreements, licenses, contracts and warranties. Communicates with Division Director, County officials, employees, other divisions, other jurisdictions, volunteer, contractors, vendors/suppliers, the public, community 16.D.4.k Packet Pg. 1089 Attachment: Attachment 6e Operations Manager Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) organizations and other individuals as needed to plan and execute work activities, review status of work, exchange information, or resolve problems. Prepares or completes required forms, reports, correspondence, budget documents, cost estimates, purchase order requisitions, agenda, action plans, and other documents; develops, reviews, and submits Executive Summaries. Conducts management and supervisory staff meetings in order to review status of operations which communicates necessary management information. Researches, responds to and resolved difficult citizen/user com plaints related to parks and recreation programs that are escalated to this classification's level. Researches and prepares various operational and evaluative reports (beach access, fee policy, outsourcing, etc.) for the division director to present to the Board of Collier County. Performs follow-up work as needed to clarify the contents and intent of the reports. Establishes updates and enforces divisional policies and procedures, governing financial and business decisions within the division; develops and implements internal fiscal controls, policies and procedures to reduce the potential risk of error. Audits all cash handling facilities to ensure proper cash handling procedures are in compliance. Operates a computer, printer, measuring wheel, two-way radio, drafting instruments, motor vehicle, or other equipment as necessary to complete essential functions, to include the use of word processing, spreadsheet, database, or other system software. ADDITIONAL FUNCTIONS Assists with long-term planning and goals. Acts as the information technology liaison for the division. Performs other related duties as required. In the event of a declared state of emergency, employees in this classification may be called to work during days or hours other than those for which they are regularly scheduled. PERFORMANCE APTITUDES Data Utilization: Requires the ability to evaluate, audit, deduce, and/or assess data using established criteria. Includes exercising discretion in determining actual or probable consequences and in referencing such evaluation to identify and select alternatives. Human Interaction: Requires the ability to perform in a supervisory capacity over subordinate supervisors. Equipment, Machinery, Tools, and Materials Utilization: Requires the ability to operate, maneuver and/or control the actions of equipment, machinery, tools, and/or materials used in performing essential functions. Verbal Aptitude: Requires the ability to utilize a wide variety of reference, descriptive, and/or advisory data and information. Mathematical Aptitude: Requires the ability to perform addition, subtraction, multiplication, and division; the ability to calculate decimals and percentages; the ability to utilize principles of fractions; and the ability to interpret graphs. Functional Reasoning: Requires the ability to apply principles of influence systems, such as motivation, incentive, and leadership, and to exercise independent judgment to apply facts and principles for developing approaches and techniques to resolve problems. Situational Reasoning: Requires the ability to exercise judgment, decisiveness and creativity in situations involving evaluation of information against measurable or verifiable criteria. 16.D.4.k Packet Pg. 1090 Attachment: Attachment 6e Operations Manager Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) ADA COMPLIANCE Physical Ability: Tasks require the ability to exert light physical effort in sedentary to light work, but which may involve some lifting, carrying, pushing and/or pulling of objects and materials of light weight (5-10 pounds). Tasks may involve extended periods of time at a keyboard or workstation. Sensory Requirements: Some tasks require the ability to perceive and discriminate visual cues or signals. Some tasks require the ability to communicate orally. Environmental Factors: Performance of essential functions may require exposure to adverse environmental conditions, such as wetness, humidity, temperature and noise extremes, traffic hazards, or violence. MINIMUM QUALIFICATIONS: Bachelor's degree in Business Administration, Public Administration, Recreation, or closely related field; three to five years of experience in management, budgeting, and recreation.; or any equivalent combination of education, training, and experience which provides the requisite knowledge, skills, and abilities for this job. Must possess and maintain a valid Florida driver's license. Fingerprinting required. SUPPLEMENTAL INFORMATION: BCC124 Exempt 16.D.4.k Packet Pg. 1091 Attachment: Attachment 6e Operations Manager Class Spec (5002 : ADA Playground Facility for Immokalee Community Park) Ilonka E. Washburn 15081 Top Sail Court Home: (239)-352-7213; Naples, Florida 34119 Email: iewsuccess@aol.com Mobile: (239)-450-6792 SENIOR MANAGEMENT EXECUTIVE Cross–Functional and Cross–Industry Experience Highly qualified Executive Manager offering international financial and operational experience within government service industries and industrial manufacturing. Results oriented and effectual leader with proven ability to develop high-level strategies and carry out front-line program implementation with strong executive coaching and staff development skills. Talent for proactively identifying and resolving problems, controlling costs, maximizing productivity and international negotiation skills. Advanced computer skills. Strengths in: * Strategic Financial Planning * Executive Auditing * Cost Control * Profitability Improvement * Leadership and Collaboration * Market Analyses * National and International Negotiations * Competitive Analysis PROFESSIONAL EXPERIENCE BOARD OF COUNTY COMMISSIONERS, Collier County, Florida 2007 - present OPERATIONS MANAGER Develop, implement and ensure adherence to capital and operating budgets. Manage financial operations, policies, procedures, and processes for efficiency and effectiveness and implement needed improvements. Provide financial management and perform complex financial analyses to support business decisions, assess profitability of progra ms as well as acquisition of land/facilities. Manage vendor contracts and reimbursements. Supervise, direct and evaluate assigned staff. Responsible for all financial aspects during Disaster Planning and Recovery activities within the Public Services Division. Coordinate FEMA (Federal Emergency Management Agency) reimbursements requests between FEMA, Division Management, Office of Management and Budget, and the Finance department. Achieved increase in annual cost recovery of 26% from previous years. Responsibilities and achievements Provide financial management and oversight Develop and implements capital and operating budgets Develop and implements internal fiscal controls, policies and procedures Establish updates and enforce policies and procedures governing financial and business decisions Review financial operations, policies, procedures, and processes for efficiency and effectiveness and implement needed improvements Perform complex financial analyses to support business decisions 16.D.4.l Packet Pg. 1092 Attachment: Attachment 6f Operations Manager Resume (5002 : ADA Playground Facility for Immokalee Community Park) CLERK OF CIRCUIT COURTS, Collier County, Florida; 1999 - 2006 LEAD SENIOR INTERNAL AUDITOR Audit, manage and or review routine and special internal audits of County operations as an independent, objective appraisal activity within the County to serve as a control by examining and evaluating the adequacy and effectiveness within the County and the quality of performance in carrying out assigned responsibilities. Conduct reviews, assessments and analyses necessary to determine efficiency, effectiveness and compliance with applicable policies and laws. Provide expert advice and leadership to staff as well as oversee and conduct financial, compliance, and performance audits completed through the preparation and distribution of aud it reports. Promoted from Internal Auditor to Senior Internal Auditor to Lead Senior Internal Auditor. Responsibilities and achievements Prepare analyses, appraisals, recommendations, counsel and information of the organization. Appraise economy and efficiency of resources employed Ensure compliance with policies, plans, procedures, laws, and regulations. Review the reliability and integrity of financial and operating information Prepare budgets for the department Update Media NAPLES COMMUNITY HOSPITAL, Collier County, Florida; 1998 - 1999 ACCOUNTANT General ledger accounting with control responsibility for selected non -profit entities and measurements along with internal report writers used to formulate and evaluate financial statements; Reconcile cash and general ledger accounts; Prepare audit schedules. Responsibilities and achievements Data collection, analysis, recording and preparation of contracts, funds and investments Assisted in the establishment of independent cost function centers Preparation of financial statements STATE OF FLORIDA, DEPARTMENT OF HEALTH, Collier County, Florida; 1996 - 1998 ACCOUNTANT General ledger accounting with control responsibility for selected non -profit entities and measurements along with internal report writers used to formulate and evaluate financial statements; Reconcile cash and general ledger accounts; Prepare audit schedules. Responsibilities and achievements Data collection, analysis, recording and preparation of contracts, funds and investments Assisted in the establishment of independent cost function centers Preparation of financial statements 16.D.4.l Packet Pg. 1093 Attachment: Attachment 6f Operations Manager Resume (5002 : ADA Playground Facility for Immokalee Community Park) BETTER HOMES AND GARDENS, Collier County, Florida; 1994 - 1997 REAL ESTATE CONSULTANT Land acquisition, development, construction, residential and commercial sales, and international investment consulting. SIEMENS CORPORATE PURCHASING, Munich, Germany; 1989 - 1994 CORPORATE CONTRACT MANAGER High-profile executive management position leading the contract, marketing, budget development, analysis, and coordination of $1.8 billion of international investment purchases from independent contractors (furniture, warehouse and laboratory facilities / installations, tools, communication networks etc.). Implementation of supplier evaluations, coordination of approximately 120 purchasing departments, cost reduction analysis and guidance of necessary procedures, savings to the company by decreasing purchasing costs where in excess of 35%. Promoted from purchasing agent to Corporate Contract Manager within 8 months. Responsibilities and achievements Formulating cost savings and establishing goals, Implementation and coordination of joint procedures through main user’s convoys. Market and supplier analysis. Approved company plants (National and International travel) Cost, market and price structure analysis. Reduction in lead times. Analysis and determination of future product needs. (Outsourcing/in-house production) Negotiations of contracts (short term and annual agreements). Preparation of statistics for: future material/price changes. 16.D.4.l Packet Pg. 1094 Attachment: Attachment 6f Operations Manager Resume (5002 : ADA Playground Facility for Immokalee Community Park) PROFESSIONAL CERTIFICATIONS CFE - Certified Fraud Examiner ACFE – Association of Certified Fraud Examiners Real Estate License DBPR – Department of Business and Professional Regulation – Florida EDUCATION MBA in International Business Management, President’s list; Dean's List Clemson University, Clemson SC Bachelor of Science degree in Business Management, Dean's List Widener University, Chester, PA. Associates of Science in Industrial Management, Dean's List. President's List. State Technical Institute of Memphis, Tennessee CIVIC / COMMUNITY LEADERSHIP Chairperson of the Community Based Care Alliance Board member of the CBPE – Center of Business and Professional Excellence Board Member of LMS – Local Mitigation Strategy Grant Board Board Member of Safe and Healthy Children’s Coalition Member of AGA – Association of Government Accountants OTHER QUALIFICATIONS/ACCOMPLISHMENTS Published an article in the IIA (Institute of Internal Auditors) Educator Responsible for several high profile audits leading to the return of $2m Bilingual (German / English) FEMA – Federal Emergency Management Association Past Chairperson-Academic Relations Committee, Institute of Internal Auditors Past Board Member of the IIA and Government Finance Officers Association Guest Speaker at Gulf Coast University and Edison Community College, Internal Audit, Accounting and Ethics Published in IIA (Institute of Internal Auditors) Educator, (Southwest Florida Chapter increases Out reach to Students) October 2002 REFERENCES: Supplied upon request. 16.D.4.l Packet Pg. 1095 Attachment: Attachment 6f Operations Manager Resume (5002 : ADA Playground Facility for Immokalee Community Park) 2/2/2018 GRADE TITLE MIN MIDPOINT MAX 102 Non Exempt - Hourly None 10.0635 13.2115 16.3596 Exempt - Annual None 20,932 27,480 34,028 103 Non Exempt - Hourly LIBRARY PAGE 10.5563 13.8582 17.1596 RECREATION WORKER - SEASONAL 10.5563 13.8582 17.1596 Exempt - Annual None 21,957 28,825 35,692 104 Non Exempt - Hourly None 11.0851 14.5529 18.0202 Exempt - Annual None 23,057 30,270 37,482 105 Non Exempt - Hourly CHILDCARE WORKER 11.6389 15.2798 18.9207 COURIER 11.6389 15.2798 18.9207 LIFEGUARD 11.6389 15.2798 18.9207 Exempt - Annual None 24,209 31,782 39,355 106 Non Exempt - Hourly LIBRARY ASSISTANT 12.2212 16.0447 19.8678 MAINTENANCE WORKER 12.2212 16.0447 19.8678 PARKS AND RECREATION ASSISTANT 12.2212 16.0447 19.8678 Exempt - Annual None 25,420 33,373 41,325 FISCAL YEAR 2018 BOARD OF COLLIER COUNTY COMMISSIONERS PAY AND CLASSIFICATION PLAN Page 1 of 11 16.D.4.m Packet Pg. 1096 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 107 Non Exempt - Hourly LINE SERVICE TECHNICIAN I 12.8317 16.8457 20.8596 Exempt - Annual None 26,690 35,039 43,388 108 Non Exempt - Hourly CUSTOMER SERVICE REPRESENTATIVE 13.4726 17.6875 21.9024 Exempt - Annual None 28,023 36,790 45,557 109 Non Exempt - Hourly ANIMAL CARE SPECIALIST 14.1466 18.5721 22.9971 AUTOMATED METER READING TECHNICIAN 14.1466 18.5721 22.9971 EQUIPMENT OPERATOR 14.1466 18.5721 22.9971 Exempt - Annual None 29,425 38,630 47,834 110 Non Exempt - Hourly PARKS AND RECREATION PROGRAM LEADER 15.0043 19.6981 24.3918 PARTS CLERK 15.0043 19.6981 24.3918 PLANT OPERATOR, TRAINEE 15.0043 19.6981 24.3918 SOLID WASTE SPECIALIST 15.0043 19.6981 24.3918 UTILITY TECHNICIAN 15.0043 19.6981 24.3918 Exempt - Annual None 31,209 40,972 50,735 111 Non Exempt - Hourly 4-H OUTREACH COORDINATOR 15.7548 20.6837 25.6120 AUTOMATED METER READING AND REPAIR TECHNICIAN 15.7548 20.6837 25.6120 BUILDING AUTOMATION TECHNICIAN 15.7548 20.6837 25.6120 CASE MANAGER ASSISTANT 15.7548 20.6837 25.6120 CUSTOMER SERVICE SPECIALIST 15.7548 20.6837 25.6120 FLEET SERVICES TECHNICIAN 15.7548 20.6837 25.6120 LIBRARY TECHNICIAN 15.7548 20.6837 25.6120 MUSEUM ASSISTANT 15.7548 20.6837 25.6120 PARK RANGER 15.7548 20.6837 25.6120 PERMITTING TECHNICIAN 15.7548 20.6837 25.6120 VETERINARIAN TECHNICIAN 15.7548 20.6837 25.6120 Exempt - Annual None 32,770 43,022 53,273 Page 2 of 11 16.D.4.m Packet Pg. 1097 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 112 Non Exempt - Hourly ADMINISTRATIVE SECRETARY 16.5423 21.7173 26.8923 ANIMAL SERVICES DISPATCHER 16.5423 21.7173 26.8923 AUTOMOTIVE TECHNICIAN, APPRENTICE 16.5423 21.7173 26.8923 EQUIPMENT OPERATOR, SENIOR 16.5423 21.7173 26.8923 FISCAL TECHNICIAN 16.5423 21.7173 26.8923 HUMAN RESOURCES TECHNICIAN 16.5423 21.7173 26.8923 INVENTORY CONTROL SPECIALIST 16.5423 21.7173 26.8923 LIBRARY TECHNOLOGY SPECIALIST 16.5423 21.7173 26.8923 MAINTENANCE SPECIALIST 16.5423 21.7173 26.8923 TRADESWORKER, APPRENTICE 16.5423 21.7173 26.8923 VOLUNTEER COORDINATOR 16.5423 21.7173 26.8923 Exempt - Annual None 34,408 45,172 55,936 113 Non Exempt - Hourly ANIMAL CONTROL OFFICER 17.3697 22.8034 28.2370 CREW LEADER 17.3697 22.8034 28.2370 LABORATORY TECHNICIAN 17.3697 22.8034 28.2370 LICENSING COMPLIANCE OFFICER 17.3697 22.8034 28.2370 LINE SERVICE TECHNICIAN II 17.3697 22.8034 28.2370 PLANT OPERATOR 17.3697 22.8034 28.2370 PURCHASING TECHNICIAN 17.3697 22.8034 28.2370 SUPERVISOR - PARTS/MATERIALS 17.3697 22.8034 28.2370 TRAFFIC SIGNAL TECHNICIAN, APPRENTICE 17.3697 22.8034 28.2370 Exempt - Annual None 36,129 47,431 58,733 114 Non Exempt - Hourly ADMINISTRATIVE ASSISTANT 18.2385 23.9438 29.6490 ADMINISTRATIVE SUPERVISOR 18.2385 23.9438 29.6490 AUTOMOTIVE TECHNICIAN, JOURNEYMAN 18.2385 23.9438 29.6490 BUSINESS TECHNOLOGY ANALYST 18.2385 23.9438 29.6490 CITIZEN LIAISON 18.2385 23.9438 29.6490 CODE ENFORCEMENT INVESTIGATOR 18.2385 23.9438 29.6490 COMMUNITY SERVICES ASSISTANT 18.2385 23.9438 29.6490 COMMUNITY RELATIONS SPECIALIST 18.2385 23.9438 29.6490 CREW LEADER, SENIOR 18.2385 23.9438 29.6490 EMERGENCY MANAGEMENT TECHNICIAN 18.2385 23.9438 29.6490 GIS TECHNICIAN 18.2385 23.9438 29.6490 GRANTS SUPPORT SPECIALIST 18.2385 23.9438 29.6490 LIBRARY OPERATIONS COORDINATOR 18.2385 23.9438 29.6490 LIBRARY PROGRAM SPECIALIST 18.2385 23.9438 29.6490 MANAGER - PARTS 18.2385 23.9438 29.6490 NETWORK SPECIALIST 18.2385 23.9438 29.6490 ODOR CONTROL SPECIALIST 18.2385 23.9438 29.6490 OPERATIONS COORDINATOR 18.2385 23.9438 29.6490 PARKS AND RECREATION PROGRAM LEADER, SENIOR 18.2385 23.9438 29.6490 PLANNING TECHNICIAN 18.2385 23.9438 29.6490 RISK TECHNICIAN 18.2385 23.9438 29.6490 TRADESWORKER, JOURNEYMAN 18.2385 23.9438 29.6490 TRAFFIC SIGNAL TECHNICIAN 18.2385 23.9438 29.6490 Exempt - Annual None 37,936 49,803 61,670 Page 3 of 11 16.D.4.m Packet Pg. 1098 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 115 Non Exempt - Hourly ACCOUNTING TECHNICIAN 19.1505 25.2019 31.2534 CODE ENFORCEMENT INVESTIGATOR, SENIOR 19.1505 25.2019 31.2534 CODE ENFORCEMENT SPECIALIST 19.1505 25.2019 31.2534 EMS SUPPLY CENTER SPECIALIST 19.1505 25.2019 31.2534 EXECUTIVE SECRETARY 19.1505 25.2019 31.2534 FACILITIES COMPLIANCE OFFICER 19.1505 25.2019 31.2534 HEAVY EQUIPMENT OPERATOR 19.1505 25.2019 31.2534 HUMAN RESOURCES ANALYST 19.1505 25.2019 31.2534 INSTRUMENTATION/ELECTRICAL TECHNICIAN 19.1505 25.2019 31.2534 PLANT MECHANIC 19.1505 25.2019 31.2534 PLANT OPERATOR, SENIOR 19.1505 25.2019 31.2534 PRETREATMENT INSPECTOR 19.1505 25.2019 31.2534 PROPERTY ACQUISITION SPECIALIST 19.1505 25.2019 31.2534 PUBLIC INFORMATION SPECIALIST 19.1505 25.2019 31.2534 SCADA OPERATOR 19.1505 25.2019 31.2534 TECHNICIAN 19.1505 25.2019 31.2534 Exempt - Annual None 39,833 52,420 65,007 116 Non Exempt - Hourly ANIMAL CARE SPECIALIST, SENIOR 21.4322 27.2731 33.1135 ANIMAL CONTROL OFFICER, SENIOR 21.4322 27.2731 33.1135 AUTOMOTIVE TECHNICIAN, MASTER 21.4322 27.2731 33.1135 BENEFITS ANALYST 21.4322 27.2731 33.1135 FIELD SUPERVISOR 21.4322 27.2731 33.1135 PARK RANGER, SENIOR 21.4322 27.2731 33.1135 PROPERTY MAINTENANCE SPECIALIST 21.4322 27.2731 33.1135 TRADESWORKER, MASTER 21.4322 27.2731 33.1135 Exempt - Annual BUSINESS TECHNOLOGY ANALYST, SENIOR 44,579 56,728 68,876 LIBRARIAN 44,579 56,728 68,876 PARKS SPECIAL POPULATIONS COORDINATOR 44,579 56,728 68,876 RECYCLING SPECIALIST 44,579 56,728 68,876 Page 4 of 11 16.D.4.m Packet Pg. 1099 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 117 Non Exempt - Hourly AIRCRAFT MECHANIC I 22.5043 28.6370 34.7692 AUTOMOTIVE TECHNICIAN, PRINCIPAL 22.5043 28.6370 34.7692 BUILDING INSPECTOR 22.5043 28.6370 34.7692 EXECUTIVE SECRETARY TO THE COUNTY MANAGER 22.5043 28.6370 34.7692 INSPECTOR 22.5043 28.6370 34.7692 INSTRUMENTATION/ELECTRICAL TECHNICIAN, SENIOR 22.5043 28.6370 34.7692 PLANNER 22.5043 28.6370 34.7692 PLANS REVIEWER - SIGNS 22.5043 28.6370 34.7692 PROPERTY ACQUISITION SPECIALIST, SENIOR 22.5043 28.6370 34.7692 SUPERVISOR - LANDFILL OPERATIONS 22.5043 28.6370 34.7692 TOURIST DEVELOPMENT TAX COORDINATOR 22.5043 28.6370 34.7692 TRAFFIC SIGNAL TECHNICIAN, SENIOR 22.5043 28.6370 34.7692 Exempt - Annual BUSINESS CENTER PROJECT COORDINATOR 46,809 59,565 72,320 CASE MANAGER 46,809 59,565 72,320 CHEMIST 46,809 59,565 72,320 EDITOR/VIDEOGRAPHER 46,809 59,565 72,320 ENVIRONMENTAL SPECIALIST 46,809 59,565 72,320 EVENTS, SALES AND MARKETING COORDINATOR 46,809 59,565 72,320 FIELD SUPERVISOR, SENIOR 46,809 59,565 72,320 FILM AND ENTERTAINMENT INDUSTRY LIAISON 46,809 59,565 72,320 GRAPHICS SPECIALIST 46,809 59,565 72,320 LIBRARIAN, SENIOR 46,809 59,565 72,320 SUPERVISOR - FOOD PROGRAMS 46,809 59,565 72,320 SUPERVISOR - OPERATIONS 46,809 59,565 72,320 SUPERVISOR - PARKS PROGRAMS 46,809 59,565 72,320 VETERAN SERVICES OFFICER 46,809 59,565 72,320 WELLNESS HEALTH EDUCATOR 46,809 59,565 72,320 118 Non Exempt - Hourly BUILDING INSPECTOR, SENIOR 23.8904 30.4010 36.9111 CAD TECHNICIAN 23.8904 30.4010 36.9111 GIS TECHNICIAN, SENIOR 23.8904 30.4010 36.9111 TECHNICAL SUPPORT PROFESSIONAL 23.8904 30.4010 36.9111 Exempt - Annual ACCOUNTANT 49,692 63,234 76,775 ECONOMIC RESEARCH ANALYST 49,692 63,234 76,775 ENVIRONMENTAL SPECIALIST, SENIOR 49,692 63,234 76,775 EXTENSION AGENT 49,692 63,234 76,775 PROJECT MANAGER, ASSOCIATE 49,692 63,234 76,775 PUBLIC INFORMATION COORDINATOR 49,692 63,234 76,775 REVIEW APPRAISER 49,692 63,234 76,775 RIGHT OF WAY COORDINATOR 49,692 63,234 76,775 SITE PLANS REVIEWER, ASSOCIATE 49,692 63,234 76,775 SUPERVISOR - AIRPORT OPERATIONS 49,692 63,234 76,775 SUPERVISOR - AQUATICS 49,692 63,234 76,775 SUPERVISOR - ATHLETICS 49,692 63,234 76,775 Page 5 of 11 16.D.4.m Packet Pg. 1100 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 119 Non Exempt - Hourly PLANS REVIEWER 25.0596 31.8885 38.7168 Exempt - Annual HUMAN RESOURCES GENERALIST 52,124 66,328 80,531 IMPACT FEE ANALYST 52,124 66,328 80,531 LABORATORY QUALITY ASSURANCE SPECIALIST 52,124 66,328 80,531 MANAGEMENT AND BUDGET ANALYST 52,124 66,328 80,531 OPERATIONS ANALYST 52,124 66,328 80,531 PLANNED UNIT DEVELOPMENT (PUD) COORDINATOR 52,124 66,328 80,531 RISK ANALYST 52,124 66,328 80,531 SAFETY COORDINATOR 52,124 66,328 80,531 SUPERVISOR - COMMUNITY CENTERS 52,124 66,328 80,531 SUPERVISOR - PERMITTING 52,124 66,328 80,531 SUPERVISOR - REVENUE 52,124 66,328 80,531 TOURISM SALES COORDINATOR 52,124 66,328 80,531 TRAINING COORDINATOR 52,124 66,328 80,531 120 Non Exempt - Hourly TECHNICAL SUPPORT PROFESSIONAL, SENIOR 26.3139 33.4846 40.6548 Exempt - Annual APPLICATIONS ANALYST 54,733 69,648 84,562 GRANTS COORDINATOR 54,733 69,648 84,562 IMPACT FEE COORDINATOR 54,733 69,648 84,562 MUSEUM CURATOR - COLLECTIONS 54,733 69,648 84,562 MUSEUM CURATOR - EDUCATION 54,733 69,648 84,562 OCCUPATIONAL HEALTH NURSE 54,733 69,648 84,562 PROPERTY MANAGEMENT SPECIALIST, SENIOR 54,733 69,648 84,562 RECYCLING COORDINATOR 54,733 69,648 84,562 SUPERVISOR - BUSINESS AND ECONOMIC DEVELOPMENT 54,733 69,648 84,562 SUPERVISOR - CODE ENFORCEMENT 54,733 69,648 84,562 SUPERVISOR - LICENSING COMPLIANCE 54,733 69,648 84,562 SUPERVISOR - PARK RANGERS 54,733 69,648 84,562 SUPERVISOR - RECREATION 54,733 69,648 84,562 TOURISM SALES SPECIALIST - SPORTS 54,733 69,648 84,562 Page 6 of 11 16.D.4.m Packet Pg. 1101 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 121 Non Exempt - Hourly None 27.6293 35.1582 42.6870 Exempt - Annual ACCOUNTANT, SENIOR 57,469 73,129 88,789 ARCHITECT 57,469 73,129 88,789 CHIEF OPERATOR 57,469 73,129 88,789 CONTRACT ADMINISTRATION SPECIALIST 57,469 73,129 88,789 ENVIRONMENTAL HEALTH AND SAFETY SPECIALIST 57,469 73,129 88,789 ENVIRONMENTAL SPECIALIST, PRINCIPAL 57,469 73,129 88,789 EXTENSION AGENT, SENIOR 57,469 73,129 88,789 FLOODPLAIN COORDINATOR 57,469 73,129 88,789 MANAGER - BRANCH LIBRARY 57,469 73,129 88,789 MANAGER - MUSEUM 57,469 73,129 88,789 MANAGER - SENIOR PROGRAM AND SOCIAL SERVICES 57,469 73,129 88,789 MANAGER - TELEVISION OPERATIONS 57,469 73,129 88,789 NETWORK ADMINISTRATOR 57,469 73,129 88,789 PLANNER, SENIOR 57,469 73,129 88,789 PROCUREMENT SPECIALIST 57,469 73,129 88,789 PUBLIC RELATIONS SPECIALIST - TOURISM 57,469 73,129 88,789 REVIEW APPRAISER, SENIOR 57,469 73,129 88,789 SENIOR GRANTS AND HOUSING COORDINATOR 57,469 73,129 88,789 SUPERVISOR - BUILDING AUTOMATION CENTER 57,469 73,129 88,789 SUPERVISOR - BUILDING MAINTENANCE 57,469 73,129 88,789 SUPERVISOR - FLEET MAINTENANCE 57,469 73,129 88,789 SUPERVISOR - FLEET OPERATIONS 57,469 73,129 88,789 SUPERVISOR - GIS/CAD 57,469 73,129 88,789 SUPERVISOR - GRANTS COMPLIANCE 57,469 73,129 88,789 SUPERVISOR - IT SERVICE DESK 57,469 73,129 88,789 SUPERVISOR - LABORATORY 57,469 73,129 88,789 SUPERVISOR - LIBRARY 57,469 73,129 88,789 SUPERVISOR - ROAD MAINTENANCE 57,469 73,129 88,789 TOURISM SALES SPECIALIST 57,469 73,129 88,789 VOLUNTEER AGENCY COORDINATOR 57,469 73,129 88,789 122 Non Exempt - Hourly FIELD INSPECTOR, SENIOR 29.0111 36.9163 44.8216 Exempt - Annual CHIEF BUILDING INSPECTOR 60,343 76,786 93,229 MANAGER - HOUSING AND GRANT DEVELOPMENT 60,343 76,786 93,229 Page 7 of 11 16.D.4.m Packet Pg. 1102 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 123 Non Exempt - Hourly None 30.4615 38.7625 47.0630 Exempt - Annual COUNTY SURVEYOR 63,360 80,626 97,891 HUMAN SERVICES PROGRAM MANAGER 63,360 80,626 97,891 MANAGEMENT AND BUDGET ANALYST, SENIOR 63,360 80,626 97,891 MANAGER - CODE ENFORCEMENT OPERATIONS 63,360 80,626 97,891 MANAGER - ENVIRONMENTAL COMPLIANCE 63,360 80,626 97,891 MANAGER - FED/STATE GRANTS OPERATIONS 63,360 80,626 97,891 MANAGER - GRANTS COMPLIANCE 63,360 80,626 97,891 MANAGER - GROUP INSURANCE 63,360 80,626 97,891 MANAGER - INVENTORY AND DISTRIBUTION CONTROL 63,360 80,626 97,891 MANAGER - INVESTIGATIONS - CODE ENFORCEMENT 63,360 80,626 97,891 MANAGER - IRRIGATION QUALITY 63,360 80,626 97,891 MANAGER - METER SERVICES 63,360 80,626 97,891 MANAGER - RISK FINANCE 63,360 80,626 97,891 MANAGER - SOLID WASTE OPERATIONS 63,360 80,626 97,891 MANAGER - VETERAN SERVICES 63,360 80,626 97,891 MANAGER - W/WW ENVIRONMENTAL COMPLIANCE 63,360 80,626 97,891 MANAGER - WASTE REDUCTION AND RECYCLING 63,360 80,626 97,891 MANAGER - WELLNESS PROGRAMS 63,360 80,626 97,891 NETWORK ADMINISTRATOR, SENIOR 63,360 80,626 97,891 OPERATIONS ANALYST, SENIOR 63,360 80,626 97,891 PLANNER, PRINCIPAL 63,360 80,626 97,891 PROGRAMMER ANALYST, SENIOR 63,360 80,626 97,891 PROJECT MANAGER 63,360 80,626 97,891 REGIONAL MANAGER - PARKS AND RECREATION 63,360 80,626 97,891 SECURITY PROFESSIONAL 63,360 80,626 97,891 SENIOR SUPERVISOR - LIBRARY 63,360 80,626 97,891 SIGNAL SYSTEMS NETWORK SPECIALIST 63,360 80,626 97,891 SITE PLANS REVIEWER 63,360 80,626 97,891 SUPERVISOR - ACCOUNTING 63,360 80,626 97,891 124 Non Exempt - Hourly LEAD AIRCRAFT MECHANIC 32.0178 40.7428 49.4673 Exempt- Annual CRA OPERATIONS MANAGER 66,597 84,745 102,892 EMERGENCY MANAGEMENT COORDINATOR 66,597 84,745 102,892 GOVERNMENT AFFAIRS MANAGER 66,597 84,745 102,892 MANAGER - BUSINESS CENTER 66,597 84,745 102,892 MANAGER - DOMESTIC ANIMAL SERVICES OPERATIONS 66,597 84,745 102,892 MANAGER - ENVIRONMENTAL HEALTH AND SAFETY 66,597 84,745 102,892 MANAGER - INTERNAL CONTROLS 66,597 84,745 102,892 MANAGER - LAND DEVELOPMENT CODE 66,597 84,745 102,892 MANAGER - MAINTENANCE - ROAD AND BRIDGE 66,597 84,745 102,892 MANAGER - PARK OPERATIONS 66,597 84,745 102,892 MANAGER - PELICAN BAY SERVICES 66,597 84,745 102,892 MANAGER - PROCUREMENT 66,597 84,745 102,892 MANAGER - PUBLIC TRANSIT 66,597 84,745 102,892 MANAGER - REVENUE 66,597 84,745 102,892 MANAGER - ROAD CONSTRUCTION 66,597 84,745 102,892 MANAGER - TECHNICAL SUPPORT - WW 66,597 84,745 102,892 MANAGER - TECHNICAL SYSTEMS OPERATIONS 66,597 84,745 102,892 MANAGER - TELECOMMUNICATIONS 66,597 84,745 102,892 SUPERVISOR - SITE INSPECTIONS 66,597 84,745 102,892 Page 8 of 11 16.D.4.m Packet Pg. 1103 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 125 Non Exempt - Hourly SUPERVISOR - AIRCRAFT MAINTENANCE 33.5841 42.7356 51.8865 Exempt - Annual ASSISTANT DIVISION DIRECTOR - PARKS AND RECREATION 69,855 88,890 107,924 DATABASE ADMINISTRATOR 69,855 88,890 107,924 EMS CAPTAIN 69,855 88,890 107,924 ENGINEER, SENIOR 69,855 88,890 107,924 MANAGER - AIRPORT 69,855 88,890 107,924 MANAGER - CDES OPERATIONS 69,855 88,890 107,924 MANAGER - COMMUNICATIONS AND CUSTOMER RELATIONS 69,855 88,890 107,924 MANAGER - COMPENSATION 69,855 88,890 107,924 MANAGER - EMPLOYMENT OPERATIONS 69,855 88,890 107,924 MANAGER - ENVIRONMENTAL SERVICES 69,855 88,890 107,924 MANAGER - FINANCIAL AND OPERATIONAL SUPPORT 69,855 88,890 107,924 MANAGER - IT CUSTOMER RELATIONS AND APPLICATIONS MGMT 69,855 88,890 107,924 MANAGER - LANDSCAPE OPERATIONS 69,855 88,890 107,924 MANAGER - PLANNING 69,855 88,890 107,924 MANAGER - PLANS REVIEW AND INSPECTIONS 69,855 88,890 107,924 MANAGER - POWER SYSTEMS 69,855 88,890 107,924 MANAGER - RIGHT OF WAY 69,855 88,890 107,924 MANAGER - TALENT DEVELOPMENT 69,855 88,890 107,924 MANAGER - WASTEWATER COLLECTIONS 69,855 88,890 107,924 SITE PLANS REVIEWER, SENIOR 69,855 88,890 107,924 SUPERINTENDENT - PARKS AND RECREATION 69,855 88,890 107,924 126 Non Exempt - Hourly None 35.2630 44.8726 54.4822 Exempt - Annual ASSISTANT DIVISION DIRECTOR - LIBRARY 73,347 93,335 113,323 CHIEF BUILDING OFFICIAL 73,347 93,335 113,323 DEPUTY DIVISION DIRECTOR - TOURISM 73,347 93,335 113,323 EMS BATTALION CHIEF 73,347 93,335 113,323 MANAGER - DISTRIBUTION 73,347 93,335 113,323 MANAGER - ENGINEERING REVIEW SERVICES 73,347 93,335 113,323 MANAGER - FACILITIES 73,347 93,335 113,323 PLANT MANAGER 73,347 93,335 113,323 PROJECT MANAGER, SENIOR 73,347 93,335 113,323 127 Non Exempt - Hourly MANAGER - FLIGHT OPERATIONS TRAINING 37.0264 47.1163 57.2063 Exempt - Annual MANAGER - CORPORATE COMPLIANCE AND INTERNAL REVIEW 77,015 98,002 118,989 MANAGER - INFORMATION SYSTEMS DEVELOPMENT 77,015 98,002 118,989 MANAGER - NETWORK OPERATIONS 77,015 98,002 118,989 MANAGER - OPERATIONS - WATER/WASTEWATER 77,015 98,002 118,989 SUPERINTENDENT - ROADS AND BRIDGES 77,015 98,002 118,989 Page 9 of 11 16.D.4.m Packet Pg. 1104 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 128 Non Exempt - Hourly None 41.5490 51.0880 60.6269 Exempt - Annual CHIEF PILOT 86,422 106,263 126,104 EMS DIVISION CHIEF 86,422 106,263 126,104 MANAGER - COASTAL MANAGEMENT PROGRAM 86,422 106,263 126,104 MANAGER - POLLUTION CONTROL 86,422 106,263 126,104 MANAGER - PROPERTY ACQUISITION AND CONSTRUCTION MGMT 86,422 106,263 126,104 PROJECT MANAGER, PRINCIPAL 86,422 106,263 126,104 129 Non Exempt - Hourly None 43.6702 54.0053 64.3404 Exempt - Annual CHIEF ENGINEER - TRAFFIC OPERATIONS 90,834 112,331 133,828 DIVISION DIRECTOR - EMS OPERATIONS 90,834 112,331 133,828 SHELTER VETERINARIAN 90,834 112,331 133,828 130 Non Exempt - Hourly None 45.8534 56.7058 67.5577 Exempt - Annual CHIEF - EMERGENCY MEDICAL SERVICES 95,375 117,948 140,520 DIVISION DIRECTOR - BUILDING REVIEW AND PERMITTING 95,375 117,948 140,520 DIVISION DIRECTOR - BUSINESS AND ECONOMIC DEVELOPMENT 95,375 117,948 140,520 DIVISION DIRECTOR - CODE ENFORCEMENT 95,375 117,948 140,520 DIVISION DIRECTOR - COMMUNICATIONS AND CUSTOMER RELATIONS 95,375 117,948 140,520 DIVISION DIRECTOR - COMMUNITY AND HUMAN SERVICES 95,375 117,948 140,520 DIVISION DIRECTOR - COMMUNITY REDEVELOPMENT AGENCIES (CRA)95,375 117,948 140,520 DIVISION DIRECTOR - CORP FINANCIAL AND MGMT SERVICES 95,375 117,948 140,520 DIVISION DIRECTOR - DEVELOPMENT REVIEW 95,375 117,948 140,520 DIVISION DIRECTOR - DOMESTIC ANIMAL SERVICES 95,375 117,948 140,520 DIVISION DIRECTOR - FACILITIES MANAGEMENT 95,375 117,948 140,520 DIVISION DIRECTOR - FLEET MANAGEMENT 95,375 117,948 140,520 DIVISION DIRECTOR - HUMAN RESOURCES 95,375 117,948 140,520 DIVISION DIRECTOR - IMPACT FEE, CAPITAL PROJECT PLANNING AND PROG MGMT 95,375 117,948 140,520 DIVISION DIRECTOR - INFORMATION TECHNOLOGY 95,375 117,948 140,520 DIVISION DIRECTOR - LIBRARY 95,375 117,948 140,520 DIVISION DIRECTOR - MUSEUM 95,375 117,948 140,520 DIVISION DIRECTOR - OPERATIONS SUPPORT 95,375 117,948 140,520 DIVISION DIRECTOR - PARKS AND RECREATION 95,375 117,948 140,520 DIVISION DIRECTOR - PLANNING AND ZONING 95,375 117,948 140,520 DIVISION DIRECTOR - PROCUREMENT SERVICES 95,375 117,948 140,520 DIVISION DIRECTOR - PUBLIC TRANSIT AND NEIGHBORHOOD ENH 95,375 117,948 140,520 DIVISION DIRECTOR - PUBLIC UTILITIES ENGINEERING 95,375 117,948 140,520 DIVISION DIRECTOR - RISK MANAGEMENT 95,375 117,948 140,520 DIVISION DIRECTOR - ROAD MAINTENANCE 95,375 117,948 140,520 DIVISION DIRECTOR - SOLID WASTE 95,375 117,948 140,520 DIVISION DIRECTOR - TOURISM 95,375 117,948 140,520 DIVISION DIRECTOR - TRANSPORTATION ENGINEERING 95,375 117,948 140,520 DIVISION DIRECTOR - UNIVERSITY EXTENSION SERVICES 95,375 117,948 140,520 DIVISION DIRECTOR - WASTEWATER 95,375 117,948 140,520 DIVISION DIRECTOR - WATER 95,375 117,948 140,520 EXECUTIVE DIRECTOR - CORPORATE BUSINESS OPERATIONS 95,375 117,948 140,520 Page 10 of 11 16.D.4.m Packet Pg. 1105 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) GRADE TITLE MIN MIDPOINT MAX 131 Non Exempt - Hourly None 48.1466 59.5413 70.9356 Exempt - Annual DIVISION DIRECTOR - BUREAU OF EMERGENCY SVCS 100,145 123,846 147,546 132 Non Exempt - Hourly None 50.5538 62.5183 74.4822 Exempt - Annual DEPUTY DEPARTMENT HEAD 105,152 130,038 154,923 133 Non Exempt - Hourly None 53.0813 65.6438 78.2058 Exempt - Annual None 110,409 136,539 162,668 134 Non Exempt - Hourly None 55.7351 68.9260 82.1163 Exempt - Annual None 115,929 143,366 170,802 135 Non Exempt - Hourly None 58.5221 72.3726 86.2231 Exempt - Annual DEPARTMENT HEAD - ADMINISTRATIVE SERVICES 121,726 150,535 179,344 DEPARTMENT HEAD - GROWTH MANAGEMENT DEPARTMENT 121,726 150,535 179,344 DEPARTMENT HEAD - PUBLIC SERVICES 121,726 150,535 179,344 DEPARTMENT HEAD - PUBLIC UTILITIES 121,726 150,535 179,344 136 Non Exempt - Hourly None 61.4486 75.9913 90.5341 Exempt - Annual DEPUTY COUNTY MANAGER 127,813 158,062 188,311 INT01 Intern Classification HIGH SCHOOL INTERN 9.7704 Page 11 of 11 16.D.4.m Packet Pg. 1106 Attachment: Attachment 6g FY18 Pay and Classification Plan (5002 : ADA Playground Facility for Immokalee Community Park) Exhibit Certificate of Good Standing N/A 16.D.4.n Packet Pg. 1107 Attachment: Attachment 7 Certificate of Good Standing (5002 : ADA Playground Facility for Immokalee Community Park) Exhibit Board Resolution Applicant has received permission from the Collier County Office of Management and Budget (OMB) to submit an “after-the-fact” grant application. Completed application to be submitted to OMB on Friday, February 16, 2018 for County Manager Approval. County Manager approval, via memo, will be forthcoming on February 20, 2018. This item is slated for the Board of Collier County Commissioner March 23, 2018 Board Meeting. 16.D.4.o Packet Pg. 1108 Attachment: Attachment 8 Board Resolution (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.r Packet Pg. 1109 Attachment: Attachment 10 Acknowledgement Letter0001 (5002 : ADA Playground Facility for Exhibit Attestations and Certifications for All Applicants To be signed by the Chairman of the BOCC at the March 23, 2018 scheduled meeting 16.D.4.s Packet Pg. 1110 Attachment: Attachment 11 Attestations (5002 : ADA Playground Facility for Immokalee Community Park) Exhibit Certification of CDBG/HOME/ESG Funded Construction/Rehabilitation Projects N/A 16.D.4.t Packet Pg. 1111 Attachment: Attachment 12 CertificationofCDBG (5002 : ADA Playground Facility for Immokalee Community Park) Exhibit IRS Form 990 Place Holder 16.D.4.v Packet Pg. 1112 Attachment: Attachment 13a IRS Form 990 (5002 : ADA Playground Facility for Immokalee Community Park) Fiscal Year Fiscal Year BALANCE SHEET Ended in 2018 Ended in 20xx 1 Unrestricted liquid assets (cash and cash investments) 2 Operating Expenses, excluding depreciation 9,863,900.00 3 Monthly Operating Expenses, excluding depreciation (line 2/12)821,991.67 0.00 4 Months of liquid cash available for operations (line 1/3)0.00 #DIV/0! 5 Notes and Mortgages Payable, including lines of credit 6 Temporarily Restricted Assets 7 Endowment Assets Fiscal Year Fiscal Year Budget Year INCOME STATEMENT Ended in 2018 Ended in 20xx Ending 2017 8 Revenue: up to three primary sources*10,941,949.00 a. b. c. d. all others Total 0.00 0.00 9 Expenses 33,356,428.00 a. Program b. Fundraising c. Administrative Total 0.00 0.00 10 Full-Time Equivalent employees - FTE's 225.00 11 Compensation Expense (Salaries and Wages)10,067,989.00 12 Benefits Expenses (Payroll taxes, health, dental, etc.)5,292,266.00 13 Compensation and Benefits as % of Expenses (line11+12/line9)#DIV/0!#DIV/0! 14 Compensation/FTE (line11/line10)44,746.62 #DIV/0! 15 Compensation and Benefits/FTE (line 11+12/line10)68,267.80 #DIV/0! 16 Purchases of Property Plant & Equipment FY 2018-19 Grant Application - Financial Review Spreadsheet 16.D.4.w Packet Pg. 1113 Attachment: Attachment 14 Financial Analysis (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.xPacket Pg. 1114Attachment: Attachment 15a Render A (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.yPacket Pg. 1115Attachment: Attachment 15b Render B (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.zPacket Pg. 1116Attachment: Attachment 15c Render C (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.aaPacket Pg. 1117Attachment: Attachment 15d Render D (5002 : ADA Playground Facility for Immokalee Community Park) 16.D.4.abPacket Pg. 1118Attachment: Attachment 15e Render E (5002 : ADA Playground Facility for Immokalee Community Park) gzgs-z9a-6ez Yv 1. el6g-a9z-6ez,|tl?-utfi epuotJ 'setdeN . loz alns 'Fef treJl rureru.rel 66ze 'lsanbal slql turpjp8a.r suollsanb Aue a^eq no^ J! ,v\oul aur lal aseald pue 'no^ Iupql 'dn lcrd .ro1 8618-ZSZ-6EZ]€ au llpl aspald 'uor1erl;dde lue:8 aql pama!^al aneq noA acu6 f,f,s gloz 'lz r{lrer{ aql le srauo!ss!r.uujol Alunol lo preos aql Aq leno.rdde pel aq} .taue ^, ;iff; leurtxqns roJ uorlelrldde aql a^oJdde Jateuel Aluno]aq1leqlturgsanbaJarea^'punoJeuJntUoqseqlol anc gloz'oz tuenrqal ,o alep anp e ql!/y\ 8loz'oI fuenuer uo palunouue se^ Auunuoddo tutpunJ aq] 'anr1;1aduo: arou.r uorle:r;dde aq1 aleul ol papnllur 8u1aq a:e spun, turqlleur OOO'OSS ra^arr\oq 1ue:8 stql ro1 parlnba: q:1eu ou s! aJaql 'sluaurala Aeld aleudoJdde AUlrqe pue a8e 1o uorlellelsur aql pue luaLudrnba punoJS^eld pete 8ullsrxa aql jo asodsrp pue a^ouJal ol lJed Altunultrlo] aalelotxtlll aql JoJ Attltrel puno.rSr(e16 ygy aql JoJ SH:, ol uollecrldde 99q3 9197 aql 3u!D!urqns s! uols!^ro suolleallau pue slred aqf 0|OO'OSZS Jo lunoure aql ur lJed Allunururol aalelou.ruJl aql JoJ Altltlel punor8Ae;6 yqy aql roJ (gggf) salrruaS uetunH pue Alrunuruol Alunof, Jarllol aql ol uorlelrldde (990f,) ruerg llolg luaudola^aq Alrunu:u.ro3 SIOZ aql Jo ;elo:dde pue /!\e!^ar ratpue4 Aluno3 :lU ,N SIOZ '9I tuenrqal :aleo acuer;dtuo3 slue:g - Ja8euet^ 'Aaluels asaJaql :y\lOUJ luatuuedaO salrruaS lrlqnd - peaH luauruedao llauref a^als :jl JaBeuel A1uno3 ' .r1' 'sqcA '3 oa1 :O1 lluno) lq pa^oJddV pue pa/nar^au uorlelrlddV lupJg iateueN Atunof j ueutrsap Jo' tevm o-Jrw- SurlaaL-r.-r ll€ SIOZ '12 qrren aql le parnbar sr llg aqt lq le^ojddv llej-aql-]auv *rr4ipaY laopng ? lueueoeuBy\ Jo oUO 16.D.4.acPacket Pg. 1119Attachment: Attachment 16 CM Memo 2018 02-20 CHS CDBG HUD Parks and Rec (5002 : ADA Playground Facility for Immokalee Community Comprehensive Annual Financial Report Collier County, Florida Year ended September 30, 2015 Artwork courtesy of Michaela Castaldi. www.artworkbymichaela.com We would like to express our sincere gratitude to Ms. Castaldi for allowing us to use her artwork. COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS TIM NANCE, CHAIRMAN – DISTRICT 5 DONNA FIALA, VICE‐CHAIRMAN – DISTRICT 1 GEORGIA A. HILLER, ESQ. – DISTRICT 2 TOM HENNING – DISTRICT 3 PENNY TAYLOR – DISTRICT 4 COUNTY MANAGER LEO E. OCHS, Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CHIEF FINANCIAL OFFICER DWIGHT E. BROCK DIRECTOR OF FINANCE AND ACCOUNTING CRYSTAL K. KINZEL Prepared by the Office of the Clerk of the Circuit Court, Finance and Accounting Department COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS INTRODUCTORY SECTION Page Transmittal Letter ........................................................................................................................................................................... i Certificate of Achievement .......................................................................................................................................................... vii Organizational Chart .................................................................................................................................................................... viii FINANCIAL SECTION Independent Auditors’ Report ...................................................................................................................................................... 1 Management’s Discussion and Analysis (Unaudited) ................................................................................................................. 4 Basic Financial Statements: Statement of Net Position ...................................................................................................................................................... 16 Statement of Activities ............................................................................................................................................................ 18 Balance Sheet – Governmental Funds ................................................................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................... 21 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ........................................... 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Position ........................................................................................................................ 23 General Fund ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) ........................................................................................................................................................... 24 Bayshore Gateway Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) ................................................................................................ 27 Immokalee Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) ......................................................................................................... 28 Statement of Net Position – Proprietary Funds ...................................................................................................................... 29 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ................................................. 31 Statement of Cash Flows – Proprietary Funds ........................................................................................................................ 32 Statement of Fiduciary Net Position – Agency Funds ............................................................................................................. 34 Notes to the Financial Statements .......................................................................................................................................... 35 Required Supplemental Information .......................................................................................................................................... 82 Combining and Individual Fund Financial Statements and Other Supplemental Information: Nonmajor Governmental Funds Combining Balance Sheet ............................................................................................................................................................. 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................................. 100 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual (Non‐GAAP) ............ 110 Nonmajor Enterprise Funds Combining Statement of Net Position ....................................................................................................................................... 134 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................................................... 136 Combining Statement of Cash Flows .......................................................................................................................................... 137 Internal Service Funds Combining Statement of Net Position ....................................................................................................................................... 140 Combining Statement of Revenues, Expenses and Changes Net Position ............................................................................... 141 Combining Statement of Cash Flows ......................................................................................................................................... 142 Fiduciary Funds Combining Statement of Fiduciary Net Position ....................................................................................................................... 144 Combining Statement of Changes in Fiduciary Net Position...................................................................................................... 145 COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS ‐ CONTINUED Component Units Combining Statement of Net Position ........................................................................................................................................ 148 Combining Statement of Activities ............................................................................................................................................. 149 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ................................................ 152 STATISTICAL SECTION (UNAUDITED) Net Position by Component ........................................................................................................................................................ 154 Change in Net Position ............................................................................................................................................................... 155 Governmental Activities Tax Revenues by Source ..................................................................................................................... 158 Fund Balances of Governmental Funds ..................................................................................................................................... 159 Changes in Fund Balances of Governmental Funds ................................................................................................................... 160 Assessed Value and Estimated Actual Value of Taxable Property ............................................................................................ 162 Property Tax Rates – All Direct and Overlapping Governments ............................................................................................... 163 Principal Tax Payers County‐Wide ............................................................................................................................................. 164 Property Tax Levies and Collections........................................................................................................................................... 165 Ratios of Outstanding Debt by Type .......................................................................................................................................... 166 Ratios of General Bonded Debt Outstanding ............................................................................................................................ 167 Legal Debt Margin Information .................................................................................................................................................. 168 Direct, Overlapping and Underlapping Governmental Activities Debt ..................................................................................... 168 Pledged‐Revenue Coverage ....................................................................................................................................................... 169 Demographic and Economic Statistics ....................................................................................................................................... 170 Principal Employers .................................................................................................................................................................... 171 Budgeted Full‐Time Equivalent County Employees by Function .............................................................................................. 172 Operating Indicators by Function .............................................................................................................................................. 173 Capital Asset Statistics by Function ............................................................................................................................................ 174 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ................. 177 Independent Auditors’ Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A‐133 and Chapter 10.550, Rules of the Auditor General of the State of Florida ................................................ 179 Schedule of Expenditures of Federal Awards and State Financial Assistance ........................................................................... 182 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ..................................................... 187 Schedule of Findings and Questioned Costs ............................................................................................................................... 188 Summary Schedule of Prior Audit Findings ................................................................................................................................ 198 THIS PAGE INTENTIONALLY LEFT BLANK Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.collierclerk.com Email- collierclerk@collierclerk.com County of Collier CLERK OF THE CIRCUIT COURT COLLIER COUNTY COURTHOUSE May 24, 2016 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, 2015. 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 and Comptroller’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. Chapter 218.39 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, 2015 the independent auditor, CliftonLarsonAllen LLP, issued an unmodified opinion on the financial statements. Their report 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 Government Auditing Standards, the U.S. Office of Management and Budget Circular A‐133, Audits of States, Local Governments and Non‐Profit Organizations and the Rules of the Auditor General, Chapter 10.550. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state financial assistance and the independent auditors’ report on compliance and internal control over compliance with requirements applicable to each major federal program and state project, are included in the Federal and State Single Audit Section of this report. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Dwight E. Brock - Clerk of Circuit Court 3315 TAMIAMI TRL E STE 102 NAPLES, FL 34112-5324 P.O. BOX 413044 NAPLES, FL 34101-3044 Clerk of Courts  Comptroller  Auditor  Custodian of County Funds ii Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement 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 Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and is made up of five residents elected by voters. In addition to the County Commissioners, voters elect the following five constitutional officers: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include law enforcement, emergency management, fire and EMS services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports and a transit system. Budgets are prepared annually. Formal budgetary integration is employed as a management control throughout the year. The Board of County Commissioners conducts budget workshops during June of each year. The Board’s proposed budget is released by July 15, in accordance with Florida Statutes. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to state statute. Public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state’s largest county at 2,026 square miles, is on the southwest coast of Florida, directly west of Miami. With a 2015 population of 348,777 (a 6.8 percent increase over the last ten years), Collier County has been considered to be one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 309,939) and three municipalities: the Cities of Naples (pop. 20,968), Marco Island (pop. 17,460) and Everglades (pop. 410). The County’s economic base is concentrated in tourism, agriculture, fishing, ranching and forestry with a growing services economy and an emerging technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. Taxable property market valuation for fiscal year 2015 totaled $64.6 billion, or a very high $185,210 per capita. The County’s millage for General Fund operations in fiscal year 2015 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2015 annual County unemployment rate stood at 5.2%, while the statewide average is 5.4%. Income levels are high, with a per capita personal income of $73,869. iii LONG TERM FINANCIAL PLANNING The County annually performs a three‐year projection of major ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing annual budget policy. On an annual basis the County prepares and adopts a five‐year 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). The total CIP projects planned for fiscal years 2016‐2020 is $613.1 million. Included in the County’s current CIP for fiscal years 2016‐2020 are approximately $300.9 million in water and wastewater projects, $142.0 million in transportation projects, $22.7 million in stormwater projects and $24.4 million in government facilities projects. In addition, parks and recreation projects of approximately $36.3 million are planned, as well as $34.8 million for tourist development funded projects, $25.1 million in solid waste projects and miscellaneous projects totaling $1.8 million. None of the fiscal year 2016 – 2020 Capital Improvement Program is currently planned to be funded by bond or loan proceeds. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as revenue in the following year, maintaining a recommended General Fund unassigned fund balance of between 8% and 16% of actual expenditures and net operating transfers, the assessment of impact fees at such levels as allowed by law and supported by studies, and the earmarking of gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. The Collier County Debt Policy provides that a smaller net present value savings may be considered, but only on a case‐by‐case basis. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. Consistent with Collier County’s Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. During fiscal year 2015, the County refunded a portion of the Series 2006 Water and Sewer Revenue Bonds. This refinancing achieved a net present value savings of over 5% and is further described in Note 6 to the financial statements. The Clerk’s Finance and Accounting Department monitors the daily cash needs of the County and invests the County’s portfolio in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper and bankers’ acceptances. The weighted average maturity of the total managed portfolio, to first call or maturity, was .99 years as of September 30, 2015. The average yield for fiscal year 2015 was .88%, which constitutes a reduction from historical rates, but an increase over recent years. Changes in the fair value of investments are recorded as part of interest income in the financial statements. iv AWARDS GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2014. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past twenty‐nine years, from fiscal year 1986 to 2014. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2014. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last twenty‐ nine 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 and Comptroller for its annual budget for the fiscal year beginning October 1, 2014. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk’s Office has received this award for the last thirteen consecutive 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, Edith Manuel, CPA, Suzanne Boothby, Ron Dortch, Laura Drigotas, Don Holder, Lisa Johnson, Christine Killen, Michael Lofendo and June Wathen, all Accountants, along with Robin Sheley, Operations Manager, Raymond Milum, Jr., Clerk’s v Accounting Manager and Jessica Arencibia and Vanessa Collier, Accounting Technicians, Jennifer Milum, Fiscal Technician, and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Division Administrators and the Department Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at (239) 252‐6299. Respectfully, Certificate of Achievement for Excellence in Financial Reporting 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, 2014. This was the twenty‐ninth 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. Board of County CommissionersPhone 252‐8097Penny TaylorTimNanceDonna FialaGeorgia A. HillerTomHenningJeff KlatzkowCounty AttorneyPhone 252‐8400Leo Ochs, Jr.County ManagerPhone 252‐8383ExecutiveManager of CorporateBusiness OperationsTim DurhamPhone 252‐8383Corporate Financial & Management ServicesMark Isackson,DirectorPhone 252‐8383Communications& Customer RelationsMike Sheffield,ManagerPhone 252‐8383Bureau of Emergency ServicesFacilities ManagementFleet Management Human ResourcesInformation TechnologyProcurement ServicesRisk ManagementCITIZENSAbe SkinnerProperty Appraiser252‐8141Larry RayTax Collector252‐8171KevinRamboskSheriff252‐4434Dwight BrockClerk of Courts252‐2646Jennifer EdwardsSupervisor of Elections252‐8450Judicial Courts & Judges252‐8800Administrative Services DepartmentLen Golden Price, Department HeadPhone 252‐3646Public Transit and Neighborhood EnhancementDomestic Animal ServicesHealthCommunity and Human ServicesOperations and Veterans ServicesLibraryMuseumParks & RecreationUniversity Extension ServicePublic Services DepartmentSteve Carnell, Department HeadPhone 252‐8468Building Plan Review & InspectionCode EnforcementDevelopment ReviewEngineering & Natural ResourcesOperations & Regulatory ManagementOperations SupportRoad MaintenanceTransportation EngineeringZoningGrowth Management DepartmentDavid Wilkison,Department HeadPhone 252‐2370Planning & Project ManagementSolid & Hazardous WasteOperation SupportWastewaterWaterPublic Utilities DepartmentG. George Yilmaz, Department HeadPhone 252‐2540TourismJack Wert,DirectorPhone 252‐2384Pelican Bay ServicesNeil Dorrill,DirectorPhone 597‐1749Economic& Business DevelopmentBruce Register,DirectorPhone 252‐8358County Redevelopment AgencyNaples CRA Jean Jourdan, ManagerPhone 643‐1115Immokalee CRABrad Muckel, ManagerPhone 867‐0025Mark StrainChiefHearing ExaminerPhone 252‐4446 FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements 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 (County), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2015, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the General Fund, the Bayshore Gateway Redevelopment Agency special revenue fund, and the Immokalee Redevelopment Agency special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of a Matter As described in Note 19, the County adopted the provisions of Governmental Accounting Standards Board Statement (GASBS) No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 and the related GASBS No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No. 68. As a result of the implementation of GASBS No. 68 and No. 71, the County reported a restatement for the change in accounting principle. The auditors’ opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis (MD&A) on pages 4 – 15, the schedules of the county’s proportionate share of the net pension liability and of county contributions on page 83, and the other postemployment benefits schedule of funding progress for the retiree health plan on page 84 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, and is also not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County, Florida Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 10, 2016, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 3 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller 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, 2015. 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‐v of this report. Financial Highlights  Collier County’s assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2015 by $2,439,522,571. Of this amount, $178,236,493 represents unrestricted net position and may be used to meet future County obligations.  The County’s total net position decreased by $81,621,204 when compared to fiscal year 2014. The overall decrease includes adjustments that reduced the beginning net position by $160,945,771 as a result of adopting Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Offsetting the effect of this adjustment was a $61,910,320 increase from governmental activities and a $17,414,247 increase resulting from business‐type activities.  As of September 30, 2015 Collier County’s governmental fund financial statements showed combined ending fund balances of $412,533,879, an increase of $43,754,453 over the previous fiscal year. Of the total combined ending governmental fund balance, $54,488,531 is reported as unassigned.  The General Fund reported an unassigned fund balance of $55,002,184 at September 30, 2015, a decrease in unassigned General Fund balance of $2,778,169 when compared to September 30, 2014.  Total face value of bonded debt, notes, outstanding loans and capital leases owed by Collier County decreased by $32,406,904 during fiscal year 2015, with a decrease in governmental activities debt of $18,124,949 and a decrease in the business‐type activities debt of $14,281,955. In September of 2015, the Collier County Water and Sewer District issued the Series 2015 County Water and Sewer Bond to advance refund a portion of the Series 2006 Collier County Water and Sewer Revenue Bonds. Additional information on debt activity can be found in Note 6 to the financial statements beginning on page 53. 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. Collier County’s basic financial statements include government‐wide and fund financial statements, as well as notes to the basic financial statements. This report also contains a statistical section, single audit and other supplementary information in addition to the basic financial statements. Government‐Wide Financial Statements Government‐wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. 4 The Statement of Net Position shows the financial position of Collier County as of September 30, 2015. The statement shows the County’s assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business‐type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business‐type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities reported under the government‐wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County’s near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government’s near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government‐wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County’s statements include three major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies. While there are many smaller governmental funds under Collier County management, they are aggregated in a total column named “other governmental funds”. Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to 5 demonstrate compliance with this budget. Budgetary comparison schedules for any non‐major governmental fund required to adopt an annual budget is presented in the combining statements 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 29 to 33 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, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund and the Solid Waste Disposal Fund are presented individually as major funds. Internal service funds are primarily 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, fleet operations and information technology. 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 on page 34 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 35 to 80 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 87. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position 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. The statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information as well as auditor reports. 6 Government‐Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $2,439,522,571 as of the fiscal year ending September 30, 2015 for Collier County. Positive balances were reported in all categories of net position in the governmental and business‐type activities for fiscal year 2015, as well as fiscal year 2014. Collier County’s net position at September 30, 2015 decreased by $176,816,638 for unrestricted net position and increased $76,596,608 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County’s ongoing obligations. The implementation of GASB Statements No. 68 and 71, related to pensions, had a significant impact on the reporting of the County’s long term liabilities and net position for both governmental and business‐ type activities. These statements require the County to record its proportionate share of the long term liability and deferred inflows and outflows associated with the Florida Retirement System’s defined pension benefit plan and the retiree health insurance subsidy program. The impact of this implementation should not be considered, solely, as evidence of financial difficulties. Collier County’s investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 79.2% of net position as of September 30, 2015, compared to 75.9% as of September 30, 2014. During fiscal year 2015, the County’s net investment in capital assets increased by $18,598,826. Capital assets are used to provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County’s net position and changes in net position for the fiscal years ended September 30, 2014 and 2015, shown in condensed form: 2015 2014 2015 2014 2015 2014 2014‐2015 Current and other assets 509.9$ 466.2$ 239.4$ 233.7$ 749.3$ 699.9$ 7.1% Capital assets, net 1,571.2 1,581.9 910.3 919.5 2,481.5 2,501.4 (0.8%) Total assets 2,081.1 2,048.1 1,149.7 1,153.2 3,230.8 3,201.3 0.9% Deferred outflows of resources 41.7 14.7 10.8 4.8 52.5 19.5 169.2% Long‐term liabilities 490.9 379.7 211.0 197.4 701.9 577.1 21.6% Current liabilities 81.1 82.2 34.1 40.4 115.2 122.6 (6.0%) Total liabilities 572.0 461.9 245.1 237.8 817.1 699.7 16.8% Deferred inflows of resources 22.2 ‐ 4.5 ‐ 26.7 ‐ 100.0% Net position: Net investment in capital assets 1,217.2 1,207.8 714.2 705.1 1,931.4 1,912.9 1.0% Restricted 298.3 223.5 31.6 29.7 329.9 253.2 30.3% Unrestricted 13.1 169.6 165.1 185.4 178.2 355.0 (49.8%) Total net position 1,528.6$ 1,600.9$ 910.9$ 920.2$ 2,439.5$ 2,521.1$ (3.2%) Collier County's Schedule of Net Position (in millions) Total Governmental Activities Business‐type Activities Total Percentage Change 7 2015 2014 2015 2014 2015 2014 2014‐2015 Revenues Program revenues: Fines, fees and charges for services 73.5$ 68.0$ 173.2$ 157.4$ 246.7$ 225.4$ 9.4% Operating grants and contributions 35.5 31.4 5.1 3.0 40.6 34.4 18.0% Capital grants and contributions 30.0 28.9 21.2 30.7 51.2 59.6 (14.1%) General revenues: Property taxes 259.8 244.4 ‐ ‐ 259.8 244.4 6.3% Other taxes and shared revenues 97.2 91.0 ‐ ‐ 97.2 91.0 6.8% Interest income 5.1 2.6 2.2 1.3 7.3 3.9 87.2% Miscellaneous 17.5 13.3 0.1 0.1 17.6 13.4 31.3% Total revenues 518.6 479.6 201.8 192.5 720.4 672.1 7.2% Expenses General government 93.7 92.2 ‐ ‐ 93.7 92.2 1.6% Public safety 174.9 177.3 ‐ ‐ 174.9 177.3 (1.4%) Physical environment 22.8 17.0 ‐ ‐ 22.8 17.0 34.1% Transportation 70.3 71.6 ‐ ‐ 70.3 71.6 (1.8%) Economic environment 9.3 9.3 ‐ ‐ 9.3 9.3 0.0% Human services 13.5 12.8 ‐ ‐ 13.5 12.8 5.5% Culture and recreation 45.1 41.6 ‐ ‐ 45.1 41.6 8.4% Interest on long‐term debt 12.9 12.7 ‐ ‐ 12.9 12.7 1.6% Water and sewer ‐ ‐ 122.8 112.6 122.8 112.6 9.1% Solid waste ‐ ‐ 36.4 33.8 36.4 33.8 7.7% Airport authority ‐ ‐ 4.8 3.8 4.8 3.8 26.3% Mass transit ‐ ‐ 10.4 10.3 10.4 10.3 1.0% Emergency medical services ‐ ‐ 24.1 23.2 24.1 23.2 3.9% Total expenses 442.5 434.5 198.5 183.7 641.0 618.2 3.7% Increase in net position before net transfers 76.1 45.1 3.3 8.8 79.4 53.9 47.3% Transfers, net (14.2) (13.2) 14.2 13.2 ‐ ‐ ‐ Change in net position 61.9 31.9 17.5 22.0 79.4 53.9 47.3% Net position – beginning 1,600.9 1,573.3 920.2 898.6 2,521.1 2,471.9 2.0% Restatement of net position (134.2) (4.3) (26.8) (0.4) (161.0) (4.7) 3325.5% Net position – ending 1,528.6$ 1,600.9$ 910.9$ 920.2$ 2,439.5$ 2,521.1$ (3.2%) Total Collier County's Schedule of Changes in Net Position (in millions) Governmental Activities Business‐type Activities Total Percentage Change 8 Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fee, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenditures followed by general government. ‐ 20 40 60 80 100 120 140 160 180 200 MillionsRevenues and Expenses Governmental Activities Fiscal Year 2015 Revenues Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by fines, fees and charges for services. Property Taxes 50% Fines, Fees and Charges for Services 14% Operating Grants and Contributions 7% Capital Grants and Contributions 6% Gas Taxes 4% Sales Taxes 7% Tourist Taxes 4% Other Income 8% Revenue by Type Governmental Activities Fiscal Year 2015 9 Revenues and expenses are shown by business‐type activity. The Water and Sewer system is the largest business‐type activity followed by the Solid Waste system. ‐ 20 40 60 80 100 120 140 160 Water and Sewer Solid Waste Airport Authority Mass Transit Emergency Medical ServicesMillionsRevenues and Expenses Business‐type Activities Fiscal Year 2015 Revenues Expenses Revenues for business‐type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Capital Grants and Contributions 10% Operating Grants and Contributions 3% Other Income 1% Fines, Fees and Charges for Services 86% Revenue by Type Business‐type Activities Fiscal Year 2015 10 Governmental Activities The current year increase in the net position of governmental activities amounted to $61,910,320, an increase of 4.2% when compared to the previous year’s net position as restated. The previous fiscal years’ increase in net position was 2.0%. The current years’ increase is mainly due to the following:  Overall, revenues related to governmental activities increased by 8.1%, or $38,875,407 while expenses only increased by 1.8%, or $7,922,974.  Governmental activities revenues increased primarily due to an increase in total ad valorem taxes collected in fiscal year 2015 of $15,374,667 when compared to fiscal year 2014. In addition, Half Cent Sales Tax and Tourist Development Tax collections increased a combined 8.8% over fiscal year 2014, or $4,837,933. Permit fees, included in fines, fees and charges for services increased by 20.2%, or $2,583,043, over the same period.  Governmental activities expenses increased primarily due to an increase in the physical environment functional area. Physical environment expenses increased predominately due to expenses related to underground conversion of electrical utilities in the Vanderbilt Beach area and beach renourishment projects associated with Tropical Storm Debbie. Business‐type Activities Increases in net position related to business‐type activities amounted to $17,414,247 in the aggregate, representing a 1.9% increase over the previous year’s net position as restated. The previous fiscal years’ increase in net position was 2.5%. The current years’ increase is mainly due to the following:  The majority of the increase, or $8,055,362, can be attributed to the Collier County Water and Sewer District (District). The increase in the District’s net position is largely due to a 9.0% rate increase that went in to effect October 1, 2014. Water and sewer impact fees, charged to new construction, increased by 14.4% when compared to fiscal year 2014.  Solid waste contributed $2,419,255 to the overall increase in business‐type activities net position. User charges increased by $3,768,581, primarily a result of a 7.0% increase in residential and commercial municipal waste tonnage and construction and demolition waste being accepted into the Naples landfill during fiscal year 2015. Operating costs increased primarily due to an increase in landfill operating costs. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Fund, Debt Service Funds and Capital Project Funds. As of September 30, 2015, Collier County governmental funds reported combined fund balances of $412,533,879, an increase of $43,754,453 when compared to prior year combined fund balances. The governmental funds had non‐spendable fund balances of $6,658,136 consisting of inventory, prepaid items, notes receivable and General Fund and Other Governmental Fund advances to other funds. The restricted fund balance was $293,625,771 and consists of monies whose expenditure is externally 11 constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $112,249,972 in fund balance, $25,662,659 is classified as committed, $32,098,782 is recorded as assigned and $54,488,531 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2015:  The General Fund is the primary operating fund of Collier County. At September 30, 2015, total fund balance in the General Fund was $60,191,643, of which $55,002,184 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 16.9%. The total fund balance decreased by $18,407,167 or 23.4%, compared to the September 30, 2014 total fund balance. The decrease in total fund balance was primarily the result of an increase in General Fund operating transfers to Other Governmental Funds when compared to fiscal year 2014.  The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle. During fiscal year 2015 the Bayshore Gateway Community Redevelopment Agency collected $1,009,800 in tax increment revenues. In addition, miscellaneous revenues of $421,170, consisting mostly of rents and a $152,000 non‐ refundable deposit related to a potential real estate sale, were received. Operating expenditures of $489,557 were associated with the Bayshore Gateway Triangle Community Redevelopment Agency.  The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2015, the Immokalee Community Redevelopment Agency collected $356,000 in tax increment revenues and was reimbursed $2,882,743 primarily for stormwater improvements in downtown Immokalee. In addition, grant revenues of $20,645 were received for transportation improvements. Capital expenditures of $2,793,688 were made for stormwater and transportation improvements with a further $456,551 being spent on associated operating costs. 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, 2015, total net position amounted to $909,442,595 for enterprise funds, as compared to $891,761,778, as restated, as of September 30, 2014, an increase of $17,680,817. Net position changes as a result of operations, non‐operating revenues and expenses, capital contributions and grants and donations. The Collier County Water and Sewer District’s activities represent the largest share of the increase in the business‐type net position. For the year ended September 30, 2015, the Collier County Water and Sewer District reported capital grants and contributions of $17,352,735, which consists of water and sewer impact fees of $12,647,736, $4,698,719 in developer infrastructure contributions and other contributions of $6,280. 2015 2014 County Water and Sewer 1,698,445$ 748,899$ Solid Waste Disposal 2,659,868 1,420,189 Non‐major enterprise funds (21,542,395) (23,394,859) Total (17,184,082)$ (21,225,771)$ Net Operating Income/(Loss) 12 The Collier County Water and Sewer District’s net operating income increased by $949,546 when compared to fiscal year 2014. The increase in net operating income was primarily the result of a 9.0% increase in overall water and sewer rates, effective October 1, 2014. County Water and Sewer payments in lieu of taxes paid to the General Fund of $5,203,400 were reclassified from operating expense to operating transfers for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. Total operating expenses, including depreciation, increased by $7,770,784, or 7.3%, when compared to fiscal year 2014. The Solid Waste Disposal fund’s net operating income increased by $1,239,679 when compared to fiscal year 2014. The increase in net operating income was primarily the result of a 7.0% increase in residential and commercial municipal waste tonnage and construction and demolition waste being accepted into the Naples landfill during fiscal year 2015. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $210,600 were reclassified from operating expense to operating transfers for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. Total operating expenses, including depreciation, increased by $2,512,740, or 7.4%, when compared to fiscal year 2014. Capital Assets Collier County’s financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County’s investment in capital assets for the governmental and business‐type activities amounted to $2,481,507,654, net of accumulated depreciation. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year, net of depreciation, decreased by $19,904,678 when compared to the previous year. There was a decrease in the governmental activities net capital assets of $10,719,890, or .7%, while the business‐type activities capital assets decreased by $9,184,788, or 1.0%. The major capital asset activities during the current and previous fiscal years are as follows:  Capitalization as construction in progress of $41,783,774 for governmental activity related costs including $9,158,445 related to US 41 and Collier Boulevard intersection improvements, $4,434,172 for improvements to Collier Boulevard from Golden Gate Boulevard to Green Boulevard and $2,316,458 for improvements to Golden Gate Boulevard from Wilson Boulevard to Everglades Boulevard. Stormwater improvements of $4,133,696 and $2,381,074 were capitalized relating to County Barn Road and downtown Immokalee, respectively. A total of $6,147,322 was spent on the purchase of a new Supervisor of Election’s building and renovation of the Collier Jail’s heating, ventilation and air conditioning system. The remaining $13,212,607 is related to $5,009,493 in other transportation projects, $3,434,079 in other physical environment projects, $2,162,691 in culture and recreation projects and $2,606,344 in other capital projects.  The business‐type activities capitalized $31,709,969 of construction in process during fiscal year 2015 including $2,083,330 for utility force main transmission system improvements, $2,299,219 for joint utility projects with the Florida Department of Transportation, $2,119,980 for well and plant power systems improvements and $3,190,815 for distribution system improvements. In addition, $1,214,392 was related to the solid waste fund’s ongoing project to construct hammerheads (turnarounds) on rural roads to facilitate trash pickup. The remaining $20,802,233 was made up of $15,186,482 in other County Water and Sewer 13 projects, $343,888 in other airport projects, $886,619 in solid waste projects, $766,325 in Emergency Medical Services projects and $3,618,919 in Mass Transit.  Total purchases of land and non‐depreciable assets were $5,025,821 for fiscal year 2015, compared to $11,531,337 for fiscal year 2014. 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, 2015, Collier County had total bonded debt, notes and loans, net of premiums of $552,212,685, a decrease of $35,339,050 from the previous year. The following table illustrates the balances of all bonds, notes and loans, net, for the fiscal years ended September 30, 2015 and 2014: 2015 2014 Limited General Obligation Bonds, net 3,368,515$ 3,780,677$ Revenue Bonds, net 437,967,928 463,677,586 State Revolving Fund Loans 104,410,895 112,943,672 Miscellaneous Notes 6,465,347 7,149,800 Total 552,212,685$ 587,551,735$ Outstanding Debt On September 30, 2015 the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the par amount of $17,687,000 for the purpose of advance refunding a portion of the District’s Series 2006 Revenue Bonds. 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. General Fund Budgetary Highlights During the current fiscal year, the Board of County Commissioners approved a $2,826,645 increase in General Fund expenditure appropriations between the original and the final amended budget. Significant variances between the original budget and the final amended budget are listed below:  $211,900 increase in charges for services and Clerk’s overall budget to recognize additional revenues received and provide for additional data processing software and minor computer equipment.  $442,201 increase in County Attorney operating due to re‐budgeting of lapsed appropriations from the previous fiscal year.  $340,941 increase in charges for services and Facilities Management operating related to an increase in maintenance requests.  $1,334,000 increase in charges for services and Sheriff’s agency personal services related to special detail duties.  $164,060 increase in Economic Development operating due to re‐budgeting of lapsed appropriations from the previous fiscal year as well as additional funding for a Soft Landing Accelerator project. 14 Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2015. Tax revenues were under budget by $7,803,369 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4% to 1%, depending on the date of payment. General Fund general government expenditures were under budget primarily due to $1,298,463 in unspent budget related to goods and services contracted for in 2015 that had not been received as of September 30, 2015 as well as an effort to reduce spending in all departments. Economic Factors and Year 2016 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2016 budget:  A 7.5% increase in countywide taxable property values.  Millage neutral General Fund and Unincorporated Area General Fund tax rates.  Expected year on year increases in sales tax and state shared revenues of 2.0% and 2.6%, respectively.  No new fees or service charges to Collier County residents.  Expected expanded position requests to meet the increase in service expectations.  Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff and Tax Collector). During fiscal year 2015, the General Fund unassigned fund balance decreased by $2,778,169 to $55,002,184. As of January 22, 2016, $48,509,000 of the fiscal year 2015 unassigned fund balance has been appropriated as carryforward for fiscal year 2016, with $27,890,800 budgeted in reserves. Contact Information This financial report is intended to give the user a general overview of Collier County Government’s finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112‐5746 Our office may also be contacted via the internet at www.collierclerk.com. 15 Governmental Business‐type Component Activities Activities Total Units ASSETS Current assets: Cash, cash equivalents and investments 176,276,278$ 175,718,466$ 351,994,744$ 343,675$ Cash with fiscal agent 11,704,336 ‐ 11,704,336 ‐ Trade receivables, net 2,294,692 12,521,437 14,816,129 ‐ Special assessments receivable ‐ 30,454 30,454 ‐ Interest receivable 442,463 583,558 1,026,021 ‐ Due from other governments 5,955,077 278,267 6,233,344 ‐ Internal balances (3,216,066) 3,216,066 ‐ ‐ Deposits 56,361 ‐ 56,361 ‐ Inventory 2,456,570 5,840,495 8,297,065 ‐ Prepaid costs 143,769 260,788 404,557 ‐ Restricted assets: Cash, cash equivalents and investments 18,131,927 6,412,410 24,544,337 ‐ Trade receivables, net 1,478,909 69,225 1,548,134 ‐ Notes receivable 45,612 ‐ 45,612 ‐ Interest receivable 695,634 47,975 743,609 ‐ Due from other governments 24,439,880 4,140,952 28,580,832 ‐ Deposits 1,250 ‐ 1,250 ‐ Inventory for resale 11,951,923 ‐ 11,951,923 ‐ Total current assets 252,858,615 209,120,093 461,978,708 343,675 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 249,855,487 30,073,608 279,929,095 ‐ Notes receivable 609,564 ‐ 609,564 ‐ Impact fee receivable 4,984,026 ‐ 4,984,026 ‐ Special assessments receivable 5,473 10,118 15,591 ‐ Notes receivable 1,623,781 ‐ 1,623,781 ‐ Unamortized bond insurance 15,570 133,489 149,059 ‐ Capital assets: Land and non‐depreciable capital assets 469,069,032 77,564,459 546,633,491 ‐ Depreciable capital assets, net 1,102,106,605 832,767,558 1,934,874,163 ‐ Total noncurrent assets 1,828,269,538 940,549,232 2,768,818,770 ‐ Total assets 2,081,128,153 1,149,669,325 3,230,797,478 343,675 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 13,545,140 4,843,433 18,388,573 ‐ Deferred outflows of resources related to pensions 28,139,705 5,993,638 34,133,343 ‐ Total deferred outflows of resources 41,684,845$ 10,837,071$ 52,521,916$ ‐$ COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2015 The notes to the financial statements are an integral part of this statement. Primary Government 16 Governmental Business‐type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable 11,854,965$ 11,548,576$ 23,403,541$ ‐$ Wages payable 8,171,109 2,827,581 10,998,690 ‐ Retainage payable 465,898 826,728 1,292,626 ‐ Due to other governments 3,179,545 176,497 3,356,042 ‐ Self‐insurance claims payable 5,703,441 ‐ 5,703,441 ‐ Compensated absences 8,206,198 2,075,855 10,282,053 ‐ Capital lease obligations 595,162 283,358 878,520 ‐ Unearned revenue 13,922 59,217 73,139 ‐ Interest payable 5,201,901 1,603,702 6,805,603 ‐ Bonds and loans payable 20,161,289 6,783,792 26,945,081 ‐ Liabilities payable from restricted assets: Accounts payable 9,171,859 1,338,442 10,510,301 ‐ Wages payable 1,862,254 3,668 1,865,922 ‐ Retainage payable 1,493,880 287,769 1,781,649 ‐ Refundable deposits 1,325,933 88,778 1,414,711 ‐ Notes payable ‐ 64,255 64,255 ‐ Due to other governments 3,731,252 68,553 3,799,805 ‐ Unearned revenue 1,035 75,368 76,403 ‐ Bonds and loans payable ‐ 5,971,084 5,971,084 ‐ Total current liabilities 81,139,643 34,083,223 115,222,866 ‐ Noncurrent liabilities: Self‐insurance claims payable 1,255,993 ‐ 1,255,993 ‐ Compensated absences 13,584,127 518,965 14,103,092 ‐ Capital lease obligations 924,333 790,609 1,714,942 ‐ Landfill post‐closure liability ‐ 1,905,976 1,905,976 ‐ Net OPEB obligation 2,994,152 ‐ 2,994,152 ‐ Net pension liability 134,200,768 26,451,457 160,652,225 ‐ Bonds and loans payable, net 337,886,077 181,346,188 519,232,265 ‐ Total noncurrent liabilities 490,845,450 211,013,195 701,858,645 ‐ Total liabilities 571,985,093 245,096,418 817,081,511 ‐ DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 22,183,538 4,531,774 26,715,312 ‐ NET POSITION Net investment in capital assets 1,217,175,435 714,239,414 1,931,414,849 ‐ Restricted for: Growth related capital expansion 83,591,428 20,820,502 104,411,930 ‐ Transportation capital projects 31,912,751 ‐ 31,912,751 ‐ Tourist development 59,643,088 ‐ 59,643,088 ‐ Conservation 33,843,610 ‐ 33,843,610 ‐ Community redevelopment 12,448,739 ‐ 12,448,739 ‐ Grants 7,690,204 1,320,937 9,011,141 ‐ Debt service 5,370,395 9,069,663 14,440,058 ‐ Nonexpendable purposes ‐ other 2,555,691 ‐ 2,555,691 ‐ Special revenues ‐ other 61,304,221 ‐ 61,304,221 ‐ Renewal and replacement ‐ 300,000 300,000 ‐ Unrestricted 13,108,805 165,127,688 178,236,493 343,675 Total net position 1,528,644,367$ 910,878,204$ 2,439,522,571$343,675$ Primary Government 17 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government 93,643,877$ 34,240,147$ 2,615,827$ 2,348,429$ Public safety 174,874,148 25,227,164 5,542,670 3,100,567 Physical environment 22,812,939 819,750 3,522,778 2,119,602 Transportation 70,295,765 1,093,847 14,716,315 13,324,636 Economic environment 9,308,791 2,883,453 6,451,771 37,887 Human services 13,499,287 534,155 2,386,101 124,905 Culture and recreation 45,116,881 8,684,562 285,378 8,929,822 Interest and fiscal charges 12,912,451 ‐ ‐ ‐ Total governmental activities 442,464,139 73,483,078 35,520,840 29,985,848 Business‐type Activities: Water and sewer 122,857,731 116,644,674 35,674 17,341,213 Solid waste 36,410,616 39,120,692 111,351 ‐ Airport authority 4,770,853 3,349,767 ‐ 368,842 Mass transit 10,416,433 1,719,206 4,788,094 3,455,290 Emergency medical services 24,094,317 12,327,543 206,588 ‐ Total business‐type activities 198,549,950 173,161,882 5,141,707 21,165,345 Total primary government 641,014,089 246,644,960 40,662,547 51,151,193 Component Units: Industrial Development Authority 15$ 32,500$ ‐$ ‐$ Health Facilities Authority 12 75,000 ‐ ‐ Housing Finance Authority 85 32,905 ‐ ‐ Total component units 112$ 140,405$ ‐$ ‐$ General revenues: Property taxes Gas taxes Sales taxes Tourist taxes Communications services tax State revenue sharing Other taxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position ‐ beginning Restatement of net position due to implementation of GASB 68 Net position ‐ beginning, as restated Net position ‐ ending The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 18 Governmental Business‐type Component Activities Activities Total Units (54,439,474)$ ‐$ (54,439,474)$ ‐$ (141,003,747) ‐ (141,003,747) ‐ (16,350,809) ‐ (16,350,809) ‐ (41,160,967) ‐ (41,160,967) ‐ 64,320 ‐ 64,320 ‐ (10,454,126) ‐ (10,454,126) ‐ (27,217,119) ‐ (27,217,119) ‐ (12,912,451) ‐ (12,912,451) ‐ (303,474,373) ‐ (303,474,373) ‐ ‐ 11,163,830 11,163,830 ‐ ‐ 2,821,427 2,821,427 ‐ ‐ (1,052,244) (1,052,244) ‐ ‐ (453,843) (453,843) ‐ ‐ (11,560,186) (11,560,186) ‐ ‐ 918,984 918,984 ‐ (303,474,373) 918,984 (302,555,389) ‐ 32,485$ 74,988 32,820 140,293 259,778,922 ‐ 259,778,922 ‐ 19,546,741 ‐ 19,546,741 ‐ 38,572,787 ‐ 38,572,787 ‐ 21,188,190 ‐ 21,188,190 ‐ 4,855,279 ‐ 4,855,279 ‐ 10,589,362 ‐ 10,589,362 ‐ 2,467,269 ‐ 2,467,269 ‐ 5,068,585 2,209,097 7,277,682 78 17,509,698 94,026 17,603,724 ‐ (14,192,140) 14,192,140 ‐ ‐ 365,384,693 16,495,263 381,879,956 78 61,910,320 17,414,247 79,324,567 140,371 1,600,910,225 920,233,550 2,521,143,775 203,304 (134,176,178) (26,769,593) (160,945,771) ‐ 1,466,734,047 893,463,957 2,360,198,004 203,304 1,528,644,367$ 910,878,204$ 2,439,522,571$ 343,675$ Primary Government Net (Expense) Revenue and Changes in Net Position 19 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds ASSETS Cash, cash equivalents and investments 64,792,690$ 758,649$ 229,191$ 328,933,797$ 394,714,327$ Cash with fiscal agent ‐ ‐ ‐ 11,704,336 11,704,336 Receivables: Interest 168,533 1,771 806 856,405 1,027,515 Trade, net 634,167 ‐ 236 1,849,254 2,483,657 Notes 1,623,781 ‐ ‐ 655,176 2,278,957 Impact fee ‐ ‐ ‐ 4,984,026 4,984,026 Special assessments ‐ ‐ ‐ 5,473 5,473 Due from other funds 5,218,119 ‐ ‐ 15,125,957 20,344,076 Due from other governments 5,392,906 ‐ ‐ 24,974,205 30,367,111 Deposits 4,628 ‐ 625 1,250 6,503 Inventory for resale ‐ 11,722,190 ‐ 229,733 11,951,923 Inventory 1,144,635 ‐ ‐ 922,450 2,067,085 Advances to other funds 711,800 ‐ ‐ 528,901 1,240,701 Prepaid costs 66,169 ‐ ‐ 77,600 143,769 Total assets 79,757,428$ 12,482,610$ 230,858$ 390,848,563$483,319,459$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 7,499,398$ 21,290$ 3,525$ 12,664,573$ 20,188,786$ Wages payable 6,461,737 10,236 14,395 3,153,816 9,640,184 Due to other funds 871,227 ‐ 3,462 18,425,078 19,299,767 Due to other governments 1,397,180 845 ‐ 5,481,949 6,879,974 Unearned revenue 485 ‐ ‐ 7,528 8,013 Refundable deposits 1,261,598 1,500 ‐ 62,835 1,325,933 Retainage payable ‐ ‐ ‐ 1,959,778 1,959,778 Advances from other funds ‐ ‐ 268,901 4,052,080 4,320,981 Total liabilities 17,491,625 33,871 290,283 45,807,637 63,623,416 Deferred inflows of resources: Unavailable revenue 2,074,160 ‐ ‐ 5,088,004 7,162,164 Fund balances (deficit): Nonspendable 3,546,385 ‐ ‐ 3,111,751 6,658,136 Restricted 344,611 12,448,739 ‐ 280,832,421 293,625,771 Committed ‐ ‐ ‐ 25,662,659 25,662,659 Assigned 1,298,463 ‐ ‐ 30,800,319 32,098,782 Unassigned 55,002,184 ‐ (59,425) (454,228) 54,488,531 Total fund balances (deficit)60,191,643 12,448,739 (59,425) 339,952,922 412,533,879 Total liabilities, deferred inflows of resources and fund balances (deficit)79,757,428$ 12,482,610$ 230,858$ 390,848,563$483,319,459$ The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 20 412,533,879$ 411,580,042$ 57,488,990 depreciation 1,086,879,170 1,555,948,202 15,570 7,162,164 (5,201,901)$ (341,276,092) (1,519,495) (21,288,624) (131,485,294) (16,771,274) (517,542,680) 13,545,140 Pension deferred outflows 27,566,066 Pension deferred inflows (21,789,491) 51,205,517 1,528,644,367$ The notes to the financial statements are an integral part of this statement. Total net position ‐ governmental activities Fund balances ‐ total governmental funds Land and other non‐depreciable assets Construction in progress Depreciable assets, net of $805,098,834 in accumulated Accrued interest on bonds Bonds and notes payable Capital lease obligations Compensated absences Unamortized premium Unamortized deferred charges on refunding COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION Internal service funds are used by the County to charge self‐insurance, fleet management and information technology services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Certain revenues will be collected after year‐end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred inflows in the funds. Certain long‐term assets are not financial resources and therefore are not reported in the governmental funds ‐ unamortized bond insurance premium. Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long‐term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2015 are: Differences in amounts reported for governmental activities in the statement of net position on pages 16‐17: SEPTEMBER 30, 2015 Pension liability 21 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Revenues: Taxes 221,480,290$ 1,009,800$ 356,000$ 77,495,048$ 300,341,138$ Licenses, permits and impact fees 309,500 ‐ 710 51,008,451 51,318,661 Intergovernmental 51,121,618 ‐ 20,645 41,676,002 92,818,265 Charges for services 16,277,577 ‐ 2,882,743 18,011,504 37,171,824 Fines and forfeitures 434,229 ‐ ‐ 2,432,366 2,866,595 Interest income 1,086,564 7,719 3,288 3,508,214 4,605,785 Special assessments ‐ ‐ ‐ 3,131,864 3,131,864 Miscellaneous 3,487,550 421,170 ‐ 12,154,314 16,063,034 Total revenues 294,197,328 1,438,689 3,263,386 209,417,763 508,317,166 Expenditures: Current: General government 53,927,908 ‐ ‐ 24,218,751 78,146,659 Public safety 140,857,023 ‐ ‐ 26,930,683 167,787,706 Physical environment 718,830 ‐ ‐ 15,438,233 16,157,063 Transportation 251,022 ‐ ‐ 36,741,483 36,992,505 Economic environment 1,073,596 489,557 456,551 7,139,407 9,159,111 Human services 10,001,930 ‐ ‐ 3,148,589 13,150,519 Culture and recreation 14,243,709 ‐ ‐ 23,278,994 37,522,703 Debt service: Principal 570,323 ‐ ‐ 19,469,106 20,039,429 Interest ‐ ‐ ‐ 13,554,708 13,554,708 Fiscal charges ‐ ‐ ‐ 21,337 21,337 Capital outlay 9,351,915 ‐ 2,793,688 50,040,401 62,186,004 Total expenditures 230,996,256 489,557 3,250,239 219,981,692 454,717,744 Excess (deficiency) of revenues over (under) expenditures 63,201,072 949,132 13,147 (10,563,929) 53,599,422 Other financing sources (uses): Capital leases 1,914,480 ‐ ‐ ‐ 1,914,480 Sale of capital assets 570,843 ‐ ‐ 24,294 595,137 Insurance proceeds 67,208 ‐ ‐ 312,102 379,310 Transfers in 10,644,487 136,800 76,000 185,168,723 196,026,010 Transfers out (94,805,257) (905,700) (192,708) (112,856,241) (208,759,906) Total other financing sources (uses)(81,608,239) (768,900) (116,708) 72,648,878 (9,844,969) Net change in fund balances (18,407,167) 180,232 (103,561) 62,084,949 43,754,453 Fund balances at beginning of year 78,598,810 12,268,507 44,136 277,867,973 368,779,426 Fund balances (deficit) at end of year 60,191,643$ 12,448,739$ (59,425)$ 339,952,922$ 412,533,879$ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA The notes to the financial statements are an integral part of this statement. 22 43,754,453$ 62,186,004$ (72,123,697) (9,937,693) 1,212,136 18,053 (470,738) (46,259) (1,914,480) 19,414,518$ 624,911 20,039,429 3,080,671$ 5,585,576 341,628 (9,385) (1,175,185) 1,506,536 9,329,841 (74,422) 61,910,320$ Change in net position ‐ governmental activities The notes to the financial statements are an integral part of this statement. Amortization of bond insurance premium Amortization of deferred charges on refunding Amortization of premium The net revenues of internal service funds are reported with governmental activities. Net change in fund balances ‐ total governmental funds Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION Differences in amounts reported for governmental activities in the statement of net position on pages 18‐19: Capital outlay Depreciation expense Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. In the statement of net position, the gain or 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 position differs from the change in fund balance by the net book value of assets disposed. Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long‐term liabilities in the statement of net position. Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. Accrued interest on bonds and loans Compensated absences Proceeds from capital leases Bond and loan principal payments Payments on capital lease obligations Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Repayment of principal on long‐term debt is an expenditure in governmental funds, but a reduction of long‐term liabilities in the statement of net position. Pension expense 23 Original Final Budget Budget Actual Variance Revenues: Taxes 229,290,200$ 229,290,200$ 221,486,831$ (7,803,369)$ Licenses, permits and impact fees 280,900 280,900 309,500 28,600 Intergovernmental 44,585,000 44,585,000 51,121,618 6,536,618 Charges for services 17,529,146 19,419,670 16,277,577 (3,142,093) Fines and forfeitures 470,200 470,200 434,229 (35,971) Interest income 452,600 452,600 932,265 479,665 Miscellaneous 7,385,900 7,447,060 10,431,350 2,984,290 Total revenues 299,993,946 301,945,630 300,993,370 (952,260) Expenditures: Current: General government Board of County Commissioners personal services 1,069,700 1,070,200 1,047,704 22,496 Board of County Commissioners operating 83,900 83,900 54,559 29,341 County manager administrative personal services 681,400 693,800 689,017 4,783 County manager administrative operating 40,900 40,900 29,482 11,418 Budget and management personal services 669,700 657,300 562,848 94,452 Budget and management operating 67,000 97,100 87,357 9,743 Administrative services personal services 2,427,800 2,397,200 2,301,015 96,185 Administrative services operating 159,300 190,200 165,456 24,744 Administrative services capital outlay 1,500 16,500 16,497 3 Human resources administration personal services 1,192,400 1,215,973 1,172,865 43,108 Human resources administration operating 300,200 300,200 256,402 43,798 Clerk of the Circuit Court personal services 6,987,800 6,754,200 6,528,467 225,733 Clerk of the Circuit Court operating 1,892,700 2,454,300 2,234,866 219,434 Clerk of the Circuit Court capital outlay 343,100 227,000 226,710 290 Property Appraiser personal services 5,174,383 5,174,383 5,026,460 147,923 Property Appraiser operating 1,549,810 1,549,810 1,572,042 (22,232) Property Appraiser capital outlay 25,000 25,000 121,281 (96,281) Tax Collector personal services 10,040,774 10,040,774 9,708,287 332,487 Tax Collector operating 2,036,647 2,020,178 1,744,766 275,412 Tax Collector capital outlay 29,522 45,991 45,270 721 County attorney personal services 2,197,300 2,212,300 2,191,762 20,538 County attorney operating 367,500 809,701 393,415 416,286 County attorney capital outlay 3,000 3,000 2,268 732 Natural resource planning operating 106,400 106,400 100,100 6,300 Circuit court costs operating 34,700 34,700 33,593 1,107 County court cost operating 22,800 22,800 21,961 839 State Attorney operating 272,500 272,500 264,968 7,532 Public Defender operating 210,700 210,700 205,986 4,714 Other general administrative personal services 200,000 178,100 38,994 139,106 Other general administrative operating 6,733,200 6,599,897 4,619,704 1,980,193 Facilities management personal services 3,846,400 3,846,400 3,789,265 57,135 Facilities management operating 7,917,500 8,258,441 8,191,711 66,730 Facilities management capital outlay 216,800 239,500 239,331 169 Sheriff personal services 2,959,600 2,959,600 3,634,660 (675,060) Sheriff operating 131,700 131,700 78,912 52,788 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 24 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 1,983,100 1,988,100 1,913,220 74,880 Supervisor of Elections operating 1,282,600 1,229,072 1,134,580 94,492 Supervisor of Elections capital outlay 32,200 73,920 73,915 5 Real property management personal services 658,400 658,400 617,493 40,907 Real property management operating 34,500 34,500 32,901 1,599 Total general government 63,984,436 64,924,640 61,170,090 3,754,550 Public safety Sheriff personal services 114,498,800 115,832,800 113,929,185 1,903,615 Sheriff operating 25,544,100 25,923,873 24,287,764 1,636,109 Sheriff capital outlay 2,036,300 2,036,300 4,871,760 (2,835,460) Emergency management administration personal services 859,400 854,400 824,505 29,895 Emergency management administration operating 566,600 571,600 518,770 52,830 Helicopter operations personal services 813,900 803,900 772,782 31,118 Helicopter operations operating 626,600 627,200 587,749 39,451 Helicopter operations capital outlay ‐ 9,400 3,887 5,513 Medical examiner services operating 1,106,200 1,106,200 1,101,284 4,916 Total public safety 146,051,900 147,765,673 146,897,686 867,987 Physical environment Conservation and resource management personal services 628,600 628,600 597,860 30,740 Conservation and resource management operating 147,300 151,540 120,114 31,426 Conservation and resource management capital outlay 39,000 34,760 34,616 144 Immokalee cemetery operating 3,100 3,100 856 2,244 Total physical environment 818,000 818,000 753,446 64,554 Transportation Alternative transportation modes personal services 237,500 237,500 237,054 446 Alternative transportation modes operating 20,000 20,000 13,968 6,032 Alternative transportation modes capital outlay 34,000 34,000 24,690 9,310 Total transportation 291,500 291,500 275,712 15,788 Economic environment Veterans services personal services 301,400 301,400 294,610 6,790 Veterans services operating 53,900 48,200 36,570 11,630 Veterans services capital ‐ 5,700 5,610 90 Economic development personal services 347,700 347,700 279,610 68,090 Economic development operating 1,148,600 1,312,660 462,806 849,854 Total economic environment 1,851,600 2,015,660 1,079,206 936,454 Human services Health Care Responsibility Act operating 46,100 46,100 21,359 24,741 Domestic animal services personal services 1,992,200 1,992,200 1,903,212 88,988 Domestic animal services operating 725,500 706,700 664,523 42,177 Domestic animal services capital outlay 120,200 139,000 ‐ 139,000 Health department operating 1,577,600 1,604,792 1,271,431 333,361 Health department capital outlay 48,000 20,808 20,360 448 Mental health operating 1,154,200 1,154,200 811,516 342,684 Client assistance personal services 675,400 724,400 706,664 17,736 Client assistance operating 4,562,100 4,475,192 4,099,414 375,778 Client assistance capital outlay 24,000 27,800 27,686 114 Public services division office personal services 526,400 526,400 490,473 35,927 Public services division office operating 31,800 33,444 27,119 6,325 Public services division office capital outlay 2,500 7,856 7,856 ‐ Total human services 11,486,000 11,458,892 10,051,613 1,407,279 (continued) COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 25 Original Final Budget Budget Actual Variance Library administration personal services 5,460,500 5,460,500 5,136,126 324,374 Library administration operating 1,495,600 1,491,600 1,447,554 44,046 Library administration capital outlay 82,000 86,000 54,704 31,296 Beach and water park operations personal services 4,299,400 4,273,400 4,014,164 259,236 Beach and water park operations operating 3,962,600 3,914,109 3,640,574 273,535 Beach and water park operations capital outlay 242,500 352,707 310,659 42,048 Total culture and recreation 15,542,600 15,578,316 14,603,781 974,535 Total expenditures 240,026,036 242,852,681 234,831,534 8,021,147 Excess of revenues over expenditures 59,967,910 59,092,949 66,161,836 (8,973,407) Other financing sources (uses): Sale of capital assets 200,000 200,000 570,843 (370,843) Insurance proceeds ‐ 11,757 67,208 (55,451) Transfers in 5,562,079 5,863,152 10,644,487 (4,781,335) Transfers out (77,483,889) (78,179,371) (78,328,083) 148,712 Total other financing sources (uses)(71,721,810) (72,104,462) (67,045,545) (5,058,917) Net change in fund balance (11,753,900) (13,011,513) (883,709) (14,032,324) Fund balance at beginning of year 54,213,300 55,188,913 55,188,913 ‐ Fund balance at end of year 42,459,400$ 42,177,400$ 54,305,204$ (14,032,324)$ Reconciliation: Net change in fund balance, budgetary basis (883,709)$ Net change in fair value of investments 154,299 Change in inventory 1,066,044 Equipment purchases for multi‐period projects not budgeted (1,350,335) Ad valorem refunds not budgeted (6,541) Advances reclassified to transfers (17,386,925) Net change in fund balance, GAAP basis (18,407,167)$ GENERAL FUND COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Culture and recreation The notes to the financial statements are an integral part of this statement. 26 Original Final Budget Budget Actual Variance Revenues: Taxes 1,009,800$1,009,800$1,009,800$ ‐$ Charges for services ‐ 308,740 ‐ (308,740) Interest income 2,000 2,000 6,490 4,490 Miscellaneous 318,500 443,500 421,170 (22,330) Total revenues 1,330,300 1,764,040 1,437,460 (326,580) Expenditures: Economic environment Personal services 257,500 257,500 240,073 17,427 Operating 231,000 240,544 143,446 97,098 Capital outlay ‐ 308,740 ‐ 308,740 Total expenditures 488,500 806,784 383,519 423,265 Excess of revenues over expenditures 841,800 957,256 1,053,941 96,685 Other financing sources (uses): Transfers in 136,800 136,800 136,800 ‐ Transfers out (905,700) (1,030,700) (905,700) (125,000) Total other financing uses (768,900) (893,900) (768,900) (125,000) Net change in fund balance 72,900 63,356 285,041 (28,315) Fund balance at beginning of year 344,800 354,344 354,344 ‐ Fund balance at end of year 417,700$ 417,700$ 639,385$ (28,315)$ Reconciliation: 285,041$ 1,229 Change in inventory held for resale (106,038) 180,232$ The notes to the financial statements are an integral part of this statement. Net change in fund balance, budgetary basis Net change in fair value of investments Net change in fund balance, GAAP basis COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 27 Original Final Budget Budget Actual Variance Revenues: Taxes 356,000$ 356,000$ 356,000$ ‐$ Licenses, permits and impact fees ‐ ‐ 710 710 Intergovernmental ‐ 20,645 20,645 ‐ Charges for services ‐ 3,149,168 2,882,743 (266,425) Interest income 1,000 1,000 2,756 1,756 Total revenues 357,000 3,526,813 3,262,854 (263,959) Expenditures: Economic environment Personal services ‐ 349,850 267,272 82,578 Operating 506,900 303,763 189,279 114,484 Capital outlay ‐ 3,043,101 2,793,688 249,413 Total expenditures 506,900 3,696,714 3,250,239 446,475 Deficiency of revenues under expenditures (149,900) (169,901) 12,615 182,516 Other financing sources: Transfers in 76,000 344,902 76,000 268,902 Transfers out ‐ (192,708) (192,708) ‐ Total other financing uses 76,000 152,194 (116,708) 268,902 Net change in fund balance (73,900) (17,707) (104,093) 451,418 Fund balance at beginning of year 144,500 144,500 144,500 ‐ Fund balance at end of year 70,600$ 126,793$ 40,407$ 451,418$ Reconciliation: (104,093)$ 532 (103,561)$ The notes to the financial statements are an integral part of this statement. Net change in fund balance, budgetary basis Net change in fair value of investments Net change in fund balance, GAAP basis COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 28 Governmental Activities ‐ County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds ASSETS Current assets: Cash, cash equivalents and investments 141,465,535$ 23,674,598$ 10,578,333$ 175,718,466$ 49,549,365$ Receivables: Trade, net 10,103,890 904,331 1,513,216 12,521,437 1,289,944 Special assessments 30,454 ‐ ‐ 30,454 ‐ Interest 389,486 167,177 26,895 583,558 110,582 Due from other funds 15,400 56,984 19,022 91,406 255,514 Due from other governments 248,871 ‐ 29,396 278,267 27,846 Deposits ‐ ‐ ‐ ‐ 51,108 Inventory 5,714,483 ‐ 126,012 5,840,495 389,485 Prepaid costs ‐ ‐ 260,788 260,788 ‐ Restricted assets: Cash, cash equivalents and investments 5,930,561 66,927 414,922 6,412,410 ‐ Trade, net 69,225 ‐ ‐ 69,225 ‐ Interest 47,332 ‐ 643 47,975 ‐ Due from other governments ‐ ‐ 4,140,952 4,140,952 ‐ Total current assets 164,015,237 24,870,017 17,110,179 205,995,433 51,673,844 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 30,073,608 ‐ ‐ 30,073,608 ‐ Receivables: Special assessments 10,118 ‐ ‐ 10,118 ‐ Advances to other funds 1,504,132 1,576,148 ‐ 3,080,280 ‐ Unamortized bond insurance 133,489 ‐ ‐ 133,489 ‐ Capital assets: Land and nondepreciable capital assets 57,789,865 7,774,034 12,000,560 77,564,459 ‐ Depreciable capital assets, net 757,673,076 22,428,263 52,666,219 832,767,558 15,227,435 Total noncurrent assets 847,184,288 31,778,445 64,666,779 943,629,512 15,227,435 Total assets 1,011,199,525 56,648,462 81,776,958 1,149,624,945 66,901,279 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 4,843,433 ‐ ‐ 4,843,433 ‐ Deferred outflows of resources related to pensions 2,367,891 197,944 3,427,803 5,993,638 573,639 Total deferred outflows of resources 7,211,324 197,944 3,427,803 10,837,071 573,639 (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2015 Business‐type Activities Enterprise Funds 29 Governmental Activities ‐ County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds LIABILITIES Current liabilities: Accounts payable 8,521,276$ 2,220,889$ 806,411$ 11,548,576$ 838,038$ Wages payable 1,451,996 131,261 1,244,324 2,827,581 393,179 Retainage payable 806,525 ‐ 20,203 826,728 ‐ Due to other funds 365,859 ‐ 1,025,370 1,391,229 ‐ Due to other governments 172,490 617 3,390 176,497 30,823 Unearned revenue ‐ ‐ 59,217 59,217 6,944 Self‐insurance claims payable ‐ ‐ ‐ ‐ 5,703,441 Compensated absences 1,392,767 129,432 553,656 2,075,855 401,361 Capital lease obligations ‐ ‐ 283,358 283,358 ‐ Interest payable 1,603,702 ‐ ‐ 1,603,702 ‐ Bonds and loans payable 6,783,792 ‐ ‐ 6,783,792 ‐ Liabilities payable from restricted assets: Accounts payable ‐ ‐ 1,338,442 1,338,442 ‐ Wages payable ‐ ‐ 3,668 3,668 ‐ Retainage payable ‐ ‐ 287,769 287,769 ‐ Due to other governments ‐ ‐ 68,553 68,553 ‐ Refundable deposits 73,025 ‐ 15,753 88,778 ‐ Unearned revenue ‐ 66,927 8,441 75,368 ‐ Notes payable 64,255 ‐ ‐ 64,255 ‐ Bonds and loans payable 5,971,084 ‐ ‐ 5,971,084 ‐ Total current liabilities 27,206,771 2,549,126 5,718,555 35,474,452 7,373,786 Noncurrent liabilities: Self‐insurance claims payable ‐ ‐ ‐ ‐ 1,255,993 Compensated absences 348,192 32,358 138,415 518,965 100,340 Capital lease obligations ‐ ‐ 790,609 790,609 ‐ Net OPEB obligation ‐ ‐ ‐ ‐ 2,994,152 Net pension liability 11,556,848 984,622 13,909,987 26,451,457 2,715,474 Landfill post‐closure liability ‐ 1,905,976 ‐ 1,905,976 ‐ Bonds and loans payable, net 181,346,188 ‐ ‐ 181,346,188 ‐ Total noncurrent liabilities 193,251,228 2,922,956 14,839,011 211,013,195 7,065,959 Total liabilities 220,457,999 5,472,082 20,557,566 246,487,647 14,439,745 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 1,551,500 125,701 2,854,573 4,531,774 394,047 NET POSITION Net investment in capital assets 622,018,059 30,070,072 62,151,283 714,239,414 15,156,612 Restricted for grants and other purposes ‐ ‐ 1,320,937 1,320,937 ‐ Restricted for growth related capital expansion 20,820,502 ‐ ‐ 20,820,502 ‐ Restricted for renewal and replacement 300,000 ‐ ‐ 300,000 ‐ Restricted for debt service 9,069,663 ‐ ‐ 9,069,663 ‐ Unrestricted 144,193,126 21,178,551 (1,679,598) 163,692,079 37,484,514 Total net position 796,401,350$ 51,248,623$ 61,792,622$ 909,442,595 52,641,126$ Cumulative consolidation adjustment for internal service fund activities related to enterprise funds 1,435,609 Net position of Business‐type Activities 910,878,204$ The notes to the financial statements are an integral part of this statement. Business‐type Activities Enterprise Funds SEPTEMBER 30, 2015 PROPRIETARY FUNDS STATEMENT OF NET POSITION COLLIER COUNTY, FLORIDA 30 Governmental County Activities ‐ Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Operating revenues: Charges for services 116,069,777$ 38,944,709$ 17,142,340$ 172,156,826$ 78,024,564$ Miscellaneous 574,897 175,983 254,176 1,005,056 61,512 Total operating revenues 116,644,674 39,120,692 17,396,516 173,161,882 78,086,076 Operating expenses: Personal services 25,392,683 2,196,132 20,616,888 48,205,703 6,250,224 Operating 48,950,954 33,015,590 14,444,623 96,411,167 70,439,778 Depreciation and amortization 40,602,592 1,249,102 3,877,400 45,729,094 1,846,856 Total operating expenses 114,946,229 36,460,824 38,938,911 190,345,964 78,536,858 Operating income (loss) 1,698,445 2,659,868 (21,542,395) (17,184,082) (450,782) Non‐operating revenues (expenses): Operating grants and contributions 35,674 111,351 4,994,682 5,141,707 ‐ Interest income 1,802,591 298,855 107,651 2,209,097 462,800 Insurance reimbursement 55,618 3,932 34,476 94,026 1,102,413 Interest expense (5,037,532) ‐ (22,363) (5,059,895) ‐ Gain (Loss) on disposal of capital assets (2,903,749) (17,900) 14,250 (2,907,399) 20,874 Total non‐operating revenues (expenses) (6,047,398) 396,238 5,128,696 (522,464) 1,586,087 Income (loss) before contributions and transfers (4,348,953) 3,056,106 (16,413,699) (17,706,546) 1,135,305 Capital grants and contributions 17,352,735 ‐ 3,824,132 21,176,867 303 Transfers in 518,780 86,810 19,807,408 20,412,998 ‐ Transfers out (5,467,200) (723,661) (11,641) (6,202,502) (1,476,600) Changes in net position 8,055,362 2,419,255 7,206,200 17,680,817 (340,992) Net position ‐ beginning, as previously stated 799,763,895 49,809,654 68,957,822 55,864,001 Restatement of net position due to implementation of GASB 68 (11,417,907) (980,286) (14,371,400) (2,881,883) Net position ‐ as restated 788,345,988 48,829,368 54,586,422 52,982,118 Net position ‐ ending 796,401,350$ 51,248,623$ 61,792,622$ 52,641,126$ (266,570) 17,414,247$ The notes to the financial statements are an integral part of this statement. Consolidation adjustment for internal service fund activities related to enterprise funds Change in net position of Business‐type Activities COLLIER COUNTY, FLORIDA Business‐type Activities Enterprise Funds FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION 31 Governmental County Activities ‐ Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Cash flows from operating activities: Cash received for services 116,406,735$ 38,980,175$ 17,510,425$ 172,897,335$ ‐$ Cash received from other funds for services ‐ ‐ ‐ ‐ 69,358,316 Cash received from employees for services ‐ ‐ ‐ ‐ 6,787,209 Cash received from other governments for services ‐ ‐ ‐ ‐ 368,869 Cash received from refundable deposits 129,000 516,620 ‐ 645,620 ‐ Cash received from retirees for services ‐ ‐ ‐ ‐ 1,385,986 Cash payments on behalf of retirees ‐ ‐ ‐ ‐ (2,439,766) Cash payments for goods and services (42,875,262) (31,199,326) (10,741,931) (84,816,519) (67,021,640) Cash payments to employees (25,971,083) (2,262,088) (21,640,412) (49,873,583) (6,576,435) Cash payments for interfund services (6,957,137) (1,588,857) (3,837,878) (12,383,872) (715,671) Cash payments on refundable deposits (113,000) (519,396) ‐ (632,396) ‐ Net cash provided by (used for) operating activities 40,619,253 3,927,128 (18,709,796) 25,836,585 1,146,868 Cash flows from non‐capital financing activities: Cash received from operating grants 600,000 111,351 5,325,414 6,036,765 ‐ Cash transfers from other funds 472,340 630,587 19,839,712 20,942,639 ‐ Cash transfers to other funds (6,967,200) (677,221) (3,789,622) (11,434,043) (1,884,022) Net cash provided by (used for) non‐capital financing activities (5,894,860) 64,717 21,375,504 15,545,361 (1,884,022) Cash flows from capital and related financing activities: System development charges 12,647,736 ‐ ‐ 12,647,736 ‐ Special assessment collections 8,549 ‐ ‐ 8,549 ‐ Receipts from insurance reimbursements 82,019 3,932 83,834 169,785 1,120,136 Proceeds from loans 17,687,000 ‐ ‐ 17,687,000 ‐ Proceeds from disposal of capital assets 2,059,652 3,528 10,789 2,073,969 23,565 Proceeds from capital grants ‐ ‐ 9,159,557 9,159,557 ‐ Payments for capital acquisitions (26,538,697) (3,713,615) (7,519,748) (37,772,060) (344,946) Principal payments on state revolving loans (8,532,777) ‐ ‐ (8,532,777) ‐ Principal payments on bonds (6,073,205) ‐ ‐ (6,073,205) ‐ Payments to escrow agents (17,882,314) ‐ ‐ (17,882,314) ‐ Principal payments on leases ‐ ‐ (278,323) (278,323) ‐ Interest and fiscal agent fees paid (6,620,035) ‐ (22,363) (6,642,398) ‐ Net cash provided by (used for) capital and related financing activities (33,162,072) (3,706,155) 1,433,746 (35,434,481) 798,755 Cash flows from investing activities: Interest on investments 1,543,217 252,042 89,220 1,884,479 396,555 Net cash provided by investing activities 1,543,217 252,042 89,220 1,884,479 396,555 3,105,538 537,732 4,188,674 7,831,944 458,156 Cash, cash equivalents and investments, October 1, 2014 174,364,166 23,203,793 6,804,581 204,372,540 49,091,209 Cash, cash equivalents and investments, September 30, 2015 177,469,704$ 23,741,525$ 10,993,255$ 212,204,484$ 49,549,365$ 141,465,535$23,674,598$ 10,578,333$ 175,718,466$ 49,549,365$ 5,930,561 66,927 414,922 6,412,410 ‐ 30,073,608 ‐ ‐ 30,073,608 ‐ Cash, cash equivalents and investments, September 30, 2015 177,469,704$ 23,741,525$ 10,993,255$ 212,204,484$ 49,549,365$ (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Current cash, cash equivalents and investments ‐ restricted Current cash, cash equivalents and investments Business‐type Activities Enterprise Funds Net increase in cash, cash equivalents and investments Noncurrent cash, cash equivalents and investments ‐ restricted 32 Governmental County Activities ‐ Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Operating income (loss)1,698,445$ 2,659,868$ (21,542,395)$ (17,184,082)$ (450,782)$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense 40,131,522 1,249,102 3,877,400 45,258,024 1,846,856 Amortization of bond insurance costs 8,273 ‐ ‐ 8,273 ‐ Amortization of deferred charges on debt refundings 462,797 ‐ ‐ 462,797 ‐ Net changes in assets and liabilities: Trade receivable (308,106) (120,922) 135,033 (293,995) (1,161,031) Due from other funds ‐ 23,525 (41,302) (17,777) (173,026) Due from other governments 71,301 ‐ 212 71,513 18,180 Inventory (394,783) ‐ 61,771 (333,012) 380,178 Prepaid costs 5,298 ‐ (52,325) (47,027) ‐ Accounts payable (493,230) 159,356 (149,757) (483,631) 174,037 Wages payable 154,173 12,237 117,135 283,545 36,078 Due to other funds 137 44,660 21,066 65,863 (39,300) Due to other governments ‐ (134) 1,047 913 30,744 Compensated absences (55,124) (10,286) (103,273) (168,683) (16,288) Refundable deposits 16,000 (2,776) (819) 12,405 ‐ Unearned revenue ‐ ‐ 1,054 1,054 (2,828) Self‐insurance claims payable ‐ ‐ ‐ ‐ 386,606 Net OPEB obligation ‐ ‐ ‐ ‐ 463,445 Net pension liability and related deferred outflows/inflows (677,450) (67,907) (1,034,643) (1,780,000) (346,001) Landfill post closure liability ‐ (19,595) ‐ (19,595) ‐ Total adjustments 38,920,808 1,267,260 2,832,599 43,020,667 1,597,650 Net cash provided by (used for) operating activities 40,619,253$ 3,927,128$ (18,709,796)$ 25,836,585$ 1,146,868$ Non‐cash investing, capital and financing activities: 311,643$ 50,161$ 18,541$ 380,345$ 50,182$ 4,698,719 ‐ ‐ 4,698,719 ‐ 11,524 ‐ 433,985 445,509 303 ‐ ‐ (5,769,410) (13,793) ‐ ‐ (13,793) ‐ Capital related accounts payable 2,950,612 132,225 1,133,557 4,216,394 70,823 The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA Business‐type Activities Enterprise Funds STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Change in special assessment receivable Contributed capital assets Developer infrastructure contributions Change in fair value of investments Change in capital related grant receivable 33 Agency Funds ASSETS Cash, cash equivalents and investments 40,975,879$ Receivables: Interest 16,240 Other 33,208 Total assets 41,025,327$ LIABILITIES Due to other governments 8,502,105$ Due to individuals 542,545 Refundable deposits 31,156,744 Due to special assessment holders 823,933 Total liabilities 41,025,327$ COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2015 The notes to the financial statements are an integral part of this statement. 34 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 INDEX NOTE PAGE NUMBER 1 Summary of Significant Accounting Policies 36 2 Cash, Cash Equivalents and Investments 47 3 Trade Receivables 49 4 Interfund Payables and Receivables 50 5 Capital Assets 52 6 Long‐Term Debt 53 7 Conduit Debt Obligations 60 8 Defeased Debt 60 9 Defined Benefit Pension Plans 61 10 Defined Contribution Plan 67 11 Transfers 68 12 Net Position/Fund Balances 69 13 Risk Management 72 14 Other Postemployment Benefits 73 15 Landfill Liability 76 16 Significant Contingencies 77 17 Significant Commitments 78 18 Fund Deficits 79 19 Change in Accounting Principle 80 35 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE REPORTING ENTITY The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the 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 and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board, impose its will on the organization, and the existence of a financial benefit/burden relationship or fiscal dependency. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex‐officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended, 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, Laws of Florida, as amended by Chapter 03‐353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA) The CRA was established by Resolution 2000‐82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010‐10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) The Authority was created in 1981 by Collier County Resolution 81‐222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide for short‐ term and long‐term planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. 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 No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. 36 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED 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 79‐95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Collier County Industrial Development Authority The Authority was created in 1978 by Collier County Resolution 78‐94, rescinded and replaced by Resolution 79‐34, 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 1999 by Collier County Resolution 99‐17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District 3339 East Tamiami Trail, Suite #302 Naples, Florida 34112 Collier County Airport Authority 2005 Mainsail Drive, Suite #1 Naples, Florida 34114 Collier County Industrial Development Authority and Educational Facilities Authority 3050 North Horseshoe Drive, Suite #120 Naples, Florida 34104 Collier County Health Facilities Authority and Housing Finance Authority 5150 Tamiami Trail North, Suite #502 Naples, Florida 34103 Bayshore Gateway Community Redevelopment Agency 3570 Bayshore Drive, Unit #102 Naples, Florida 34112 Immokalee Community Redevelopment Agency 1320 North 15th Street Immokalee, Florida 34142 Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive Naples, Florida 34104 Certain separate legal entities within the County are autonomous organizations with their own governmental powers and constituencies. These entities, which are not included in these financial statements, are as follows: 37 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED The Cities of Naples, Marco Island and Everglades The Cities of Naples, Marco Island and Everglades are in the boundaries of Collier County. Each of these entities has a separately elected board and separate budgeting, accounting and reporting requirements. Collier County School Board The Collier County School Board operates countywide and is completely separate and autonomous. The School Board has five elected board members and a superintendent of schools and operates under regulations prescribed by the State Board of Education and the Florida Statutes. It levies its own taxes and receives part of its income from the State of Florida. 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 Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business‐type activities. As a general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government‐wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund 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 Position reports all financial and capital resources of Collier County’s governmental and business‐type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. 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. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government‐ wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government‐wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government‐wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. 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 are reconciliations explaining the differences between the governmental fund presentation and the government‐wide presentation. 38 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund – the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County’s consolidated General Fund. Bayshore/Gateway and Immokalee Community Redevelopment Area Special Revenue Funds – the Redevelopment funds are used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/Gateway and Immokalee Community Redevelopment Areas. The following are reported as major enterprise funds: County Water and Sewer Fund – the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County’s unincorporated area. Solid Waste Disposal Fund – the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Fund – Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund – Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long‐term obligations. Capital Project Funds – Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. 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 other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self Insurance, Sheriff’s Self Insurance, Fleet Management and Information Technology. Agency Funds – Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain agency funds. 39 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied The government‐wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. 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 proprietary 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. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the 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 fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. 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. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2) Within eighty days of the certification of value, but not earlier than sixty‐five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled‐back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 40 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED 3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4) A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6) The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7) Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the 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 operates as a fee officer, and as such, prepares its 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 Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non‐budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note 17 on page 78. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. 41 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED CASH AND INVESTMENTS The County is required by Section 218.415 Florida Statutes to adopt a written investment policy consistent with the requirements of that statute. The County’s current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014‐260. This investment policy formally establishes guidelines and authorized the following investments: 1) U.S. Treasury and Government Guaranteed – U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2) Federal Agency/Government Sponsored Enterprise – Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3) Corporates – U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non‐profit or other entity; 4) Municipals – Obligations, including both taxable and tax‐exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5) Agency Mortgage Backed Securities – Mortgage backed securities , backed by residential , multi‐family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass‐throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6) Non‐Negotiable Certificates of Deposit ‐ Non‐negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 7) Depository Bank Account – Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8) Commercial Paper – U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 9) Repurchase Agreements – Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 10) Money Market Funds – Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a‐7; 11) Fixed‐Income Mutual Funds – Shares on open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restrictions; 42 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED 12) Local Government Investment Pools – State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13) The Florida Local Government Surplus Funds Trust Funds (Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund’s individual equity in the County’s cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Surplus Funds Trust Fund (Florida Prime), which is an external 2a7‐like investment pool, are stated at share price which is substantively the same as fair value. Florida Prime is administered to by the State Board of Administration (SBA) under the regulatory oversight of the State of Florida, Chapter 19‐7 of the Florida Administrative Code. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency Medical Services receivable which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first‐in, first‐out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non‐spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government‐wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $11,951,923 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business‐type activities columns in the government‐wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at their estimated fair value on the date donated. The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government‐wide financial statements and proprietary fund financial statements. 43 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Depreciation is calculated using the straight‐line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20‐45 years Infrastructure 3‐30 years Improvements other than buildings 4‐45 years Machinery and equipment 3‐20 years 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 Position. For capital lease obligations originating in governmental funds, an expenditure for the asset and the offsetting other financing source is reflected in the fund financial statements in the year of inception. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County’s statement of net position represent changes in actuarial assumptions, the net difference between projected and actual earnings on Health Insurance Subsidy Program investments, changes in the proportion and differences between the County’s contributions and proportionate share of contributions, and the County’s contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as increases in pension expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County’s statement of net position represent the difference between expected and actual economic experience, the net difference between projected and actual earnings on Florida Retirement System Pension investments, and changes in the proportion and differences between the County’s contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as reductions in pension expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements, as deferred inflows. 44 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums and bond insurance 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 which approximates the effective interest method. Bond premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are also reported as other financing sources. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. INTEREST COST In the proprietary funds, interest costs are expensed or capitalized as required by GASB 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre‐November 30, 1989 FASB and AICPA Pronouncements. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2015 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November ‐ 4%, December ‐ 3%, January ‐ 2%, and February ‐ 1%. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1st of each year. No accrual for the property tax levy becoming due in November 2015 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, 2015 are as follows: Property Tax Cycle Date Assessment roll compiled January 1, 2014 Assessment roll certified July 1, 2014 Millage resolution approved Within 35 days of the certification of the assessment roll Beginning of fiscal year for tax levy October 1, 2014 Taxes due and payable (levy date) November 1, 2014 Collection dates By November 30: By December 31: By January 31: By February 28: 4% discount 3% discount 2% discount 1% discount Due date March 31, 2015 Delinquent (lien date) April 1, 2015 Tax certificates sold Prior to June 1, 2015 45 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED 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. Unearned revenues of the County as of September 30, 2015 are gift certificates issued and prepayments on accounts. 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 pay or 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 a payout of unused vacation up to 440 hours for all employees. 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 500 hours of unused vacation time. Both the Clerk of the Circuit Court and Comptroller’s and Tax Collector’s policies 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 200 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. PENSIONS In the government‐wide and proprietary funds statements of net position, liabilities are recognized for the County’s proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS’s and HIS’s fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 46 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NEW ACCOUNTING PRONOUNCEMENTS For the year ended September 30, 2015, the financial statements include the impact of adoption of Governmental Accounting Standards Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The primary objective of these statements is to improve accounting and financial reporting for pensions by State and Local governments. These statements are a result of a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions in providing decision useful information, supporting assessments of accountability and interperiod equity and creating additional transparency. GASB Statement No. 68 replaces the requirements of GASBS No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of GASBS No. 50, Pension Disclosures. NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS 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 based on the percentage of each fund's average daily balance in the total pool. As of September 30, 2015, the County had the following cash, cash equivalents and investments: Investment Final Maturities Fair Value First Call Date Call Frequency Rating * Cash on hand N/A 82,501$ N/A N/A N/A Cash with fiscal agent N/A 11,704,336 N/A N/A N/A Demand deposits N/A 164,819,961 N/A N/A N/A State Board of Administration Pool: Florida PRIME N/A 742,264 N/A N/A AAAm Federal Home Loan Mortgage Corporation 10/14/2016 25,104,775 N/A N/A AA+ Federal National Mortgage Association 11/28/2016 24,989,025 05/28/2014 quarterly AA+ US Treasury Note 11/30/2016 50,042,950 N/A N/A AA+ US Treasury Note 01/15/2017 60,221,100 N/A N/A AA+ US Treasury Note 02/15/2017 25,046,225 N/A N/A AA+ US Tr easury Note 03/15/2017 10,035,030 N/A N/A AA+ Federal Farm Credit Bank 10/23/2017 10,000,870 04/23/2015 continuously AA+ Federal National Mortgage Association 03/29/2018 35,066,535 09/29/2015 quarterly AA+ Federal National Mortgage Association 04/02/2018 50,099,650 10/02/2015 quarterly AA+ Federal Home Loan Mortgage Corporation 05/18/2018 29,996,460 11/18/2015 quarterly AA+ Federal Farm Credit Bank 12/16/2019 25,077,350 12/16/2015 continuously AA+ Federal Home Loan Bank 12/30/2019 15,091,065 12/30/2015 once AA+ Federal Home Loan Bank 12/30/2019 15,094,815 12/30/2015 once AA+ Federal Home Loan Bank 12/30/2019 11,342,951 12/30/2015 quarterly AA+ Federal National Mortgage Association 01/15/2020 15,008,835 07/15/2013 quarterly AA+ Federal Farm Credit Bank 02/03/2020 14,296,313 02/03/2016 continuously AA+ Federal Home Loan Mortgage Corporation 02/13/2020 25,033,400 02/13/2017 once AA+ Federal National Mortgage Association 03/30/2020 50,180,900 03/30/2016 quarterly AA+ Federal Farm Credit Bank 04/01/2020 40,071,080 04/01/2016 continuously AA+ Total 709,148,391$ * Standard and Poor's rating 47 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS – CONTINUED CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The investment practices are governed by Florida Statutes, Chapter 218 and the Investment Policy. The Investment Policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers’ acceptances rated “AA” or higher, prime commercial paper rated “A‐1” and “P‐1”, tax‐exempt obligations rated “AA” or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County’s master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. At September 30, 2015, the Sheriff had $742,264 invested in the State Board of Administration’s Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated “AAAm” by Standard & Poor’s Ratings Services. 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 25% to 200% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK 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, 2015, the County had demand deposits of $164,819,961. All balances in excess of the Federal Depository Insurance Corporation insurance for these demand deposits are fully collateralized by the multiple financial institutions’ collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $343,675 are secured by the Federal Depository Insurance Corporation as individual entity balances do not exceed $250,000. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. 48 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS – CONTINUED The portion of the County’s cash, cash equivalents and investments invested in U.S. Government Instrumentalities is detailed as follows, at September 30, 2015: Issuer % of Portfolio Federal Home Loan Bank 5.86% Federal Farm Credit Bank 12.61% Federal Home Loan Mortgage Corporation 11.30% Federal National Mortgage Association 24.73% Total U.S. Government Instrumentalities 54.50% Reconciliation of cash, cash equivalents and investments to the basic financial statements: Primary government: Cash, cash equivalents and investments 351,994,744$ Cash with Fiscal Agent 11,704,336 Restricted cash, cash equivalents and investments ‐ current 24,544,337 Restricted cash, cash equivalents and investments ‐ noncurrent 279,929,095 Agency funds: Cash, cash equivalents and investments 40,975,879 Total 709,148,391$ NOTE 3 ‐ TRADE RECEIVABLES Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows: Trade Receivables Less Allowance for Doubtful Accounts Net Trade Receivables General Fund 1,171,130$ 536,963$ 634,167$ Bayshore Gateway Community Redevelopment Agency 12,720 12,720 ‐ Immokalee Community Redevelopment Agency 236 ‐ 236 Nonmajor Governmental Funds 2,456,581 607,327 1,849,254 Total receivables reported in Governmental Funds 3,640,667 1,157,010 2,483,657 Total receivables reported in Internal Service Funds 1,304,463 14,519 1,289,944 Total Governmental Activities tr ade receivables 4,945,130$ 1,171,529$ 3,773,601$ County Water and Sewer 10,103,890$ ‐$ 10,103,890$ Solid Waste Disposal 904,806 475 904,331 Nonmajor Enterprise Funds 25,618,140 24,104,924 1,513,216 Total Business ‐type Activities trade receivables 36,626,836$ 24,105,399$ 12,521,437$ 49 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 3 – TRADE RECEIVABLES – CONTINUED The County has multi and single‐family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP). If the homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven. If the property is transferred or sold before the end of the loan period, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate grant program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances to and advances from other funds at September 30, 2015 were as follows: Advance Advance To From Governmental Activities: General Fund 711,800$ ‐$ Immokalee Community Redevelopment Agency ‐ 268,901 Other governmental funds: Unincorporated Area MSTD 528,901 ‐ Improvement Districts ‐ 260,000 Fire Control Districts ‐ 711,800 Government Facilities Impact Fees Fund ‐ 3,080,280 Total Governmental Activities 1,240,701 4,320,981 Business‐type Activities: County Water and Sewer 1,504,132 ‐ Solid Waste Disposal 1,576,148 ‐ Total Business ‐type Activities 3,080,280 ‐ Total Advances 4,320,981$ 4,320,981$ Advances are made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. 50 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES – CONTINUED Due from and due to other funds at September 30, 2015 were as follows: Due From Due To Governmental Activities: General Fund 5,218,119$ 871,227$ Immokalee Community Redevelopment Agency ‐ 3,462 Other Governmental Funds: Road Districts 800,000 ‐ Unincorporated Area MSTD 276,620 18,896 Community Development 21 ‐ Water Management and Pollution Control 41,783 ‐ Grants and Shared Revenues 614,035 9,112,299 Improvement Districts 32,563 3,855 Fire Control Districts 35,162 398 Lighting Districts 10,997 312 Tourist Development 164,537 1,273 State Court Administration 3,137 ‐ Conservation Collier ‐ 8,559 Court Services ‐ 379 Other Sheriff Special Revenue Funds 34,747 445,763 Other Special Revenue Funds ‐ 3,137 Radio Road Limited General Obligation Bonds 816 ‐ Conservation Collier Limited Obligation Bonds 8,559 ‐ Forest Lakes Limited General Obligation Bonds 4,011 ‐ Special Obligation Revenue Bonds ‐ 7,600,000 County‐Wide Capital Improvement ‐ 1,051,307 Parks Improvements 337,528 ‐ Correctional Facilities Impact Fee 1,300,000 ‐ Water Management 2,517 30,385 Parks Impact Fee 2,400,000 ‐ Road Construction 6,257,339 148,515 Government Facilities Impact Fee 2,300,000 ‐ Law Enforcement Impact Fee 500,000 ‐ Other Capital Projects 1,585 ‐ Total other governmental funds 15,125,957 18,425,078 Business‐type Activities: County Water and Sewer 15,400 365,859 Solid Waste 56,984 ‐ Other Business‐type funds: Emergency Medical Services 2,743 ‐ Airport Authority 7,472 979,436 Collier Area Transit 8,807 45,934 Total other business‐type funds 19,022 1,025,370 Internal Service Funds 255,514 ‐ Total All Funds 20,690,996$ 20,690,996$ 51 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 5 – CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2015 is as follows: September 30, 2014 Additions Deductions Reclassifications September 30, 2015 Governmental Activities: Capital assets not depreciated: Land and other non‐depreciable assets 406,357,819$ 4,705,802$ (2,350)$ 518,771$ 411,580,042$ Construction in progress 45,277,969 41,783,774 ‐ (29,572,753) 57,488,990 Total capital assets not depreciated 451,635,788 46,489,576 (2,350) (29,053,982) 469,069,032 Capital assets depreciated: Buildings 438,101,254 2,590 ‐ 7,188,233 445,292,077 Infrastructure 988,509,093 541,637 (8,500) 18,065,018 1,007,107,248 Improvements other than buildings 277,954,464 278,015 (512,064) 3,204,687 280,925,102 Machinery and equipment 181,486,413 16,393,919 (8,201,822) 681,819 190,360,329 Total capital assets depreciated 1,886,051,224 17,216,161 (8,722,386) 29,139,757 1,923,684,756 Less accumulated depreciation: Buildings 150,171,115 13,593,866 ‐ (27,662) 163,737,319 Infrastructure 307,787,802 32,747,654 (3,622) (34,915) 340,496,919 Improvements other than buildings 148,069,247 14,198,000 (165,094) ‐ 162,102,153 Machinery and equipment 149,763,321 13,431,033 (8,082,590) 129,996 155,241,760 Total accumulated depreciation 755,791,485 73,970,553 (8,251,306) 67,419 821,578,151 Total depreciable capital assets, net 1,130,259,739 (56,754,392) (471,080) 29,072,338 1,102,106,605 Total Governmental Activities capital assets, net 1,581,895,527$ (10,264,816)$ (473,430)$ 18,356$ 1,571,175,637$ Business‐type Activities: Capital assets not depreciated: Land and other non‐depreciable assets 32,332,386$ 320,019$ (1,704,343)$ 110,828$ 31,058,890$ Construction in progress 71,218,216 31,709,969 (755,508) (55,667,108) 46,505,569 Total capital assets not depreciated 103,550,602 32,029,988 (2,459,851) (55,556,280) 77,564,459 Capital assets depreciated: Buildings 135,834,560 8,543 (3,375,439) 9,677,747 142,145,411 Improvements other than buildings 1,102,621,203 4,728,727 (3,146,069) 42,745,118 1,146,948,979 Machinery and equipment 51,385,831 4,177,800 (1,262,158) 3,047,642 57,349,115 Total capital assets depreciated 1,289,841,594 8,915,070 (7,783,666) 55,470,507 1,346,443,505 Less accumulated depreciation: Buildings 77,884,927 4,205,552 (3,108,480) ‐ 78,981,999 Improvements other than buildings 367,741,972 35,446,210 (1,061,149) 714 402,127,747 Machinery and equipment 28,248,492 5,606,262 (1,220,422) (68,131) 32,566,201 Total accumulated depreciation 473,875,391 45,258,024 (5,390,051) (67,417) 513,675,947 Total depreciable capital assets, net 815,966,203 (36,342,954) (2,393,615) 55,537,924 832,767,558 Total Business‐type Activities capital assets, net 919,516,805$ (4,312,966)$ (4,853,466)$ (18,356)$ 910,332,017$ 52 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 5 – CAPITAL ASSETS – CONTINUED Schedule of depreciation for fiscal year 2015: General Government 8,761,462$ Public Safety 13,435,519 Physical Environment 7,211,918 Transportation 33,795,287 Economic Environment 240,304 Human Services 432,166 Culture and Recreation 8,247,041 Subtotal 72,123,697 Internal Service Funds 1,846,856 Total Governmental Activities 73,970,553$ Water and Sewer 40,131,522$ Solid Waste 1,249,102 EMS 973,635 Airport Authority 1,413,499 Mass Transit 1,490,266 Total Business‐type Activities 45,258,024$ NOTE 6 – LONG‐TERM DEBT SUMMARY OF CHANGES IN LONG‐TERM OBLIGATIONS The following is a summary of changes in long‐term obligations for the year ended September 30, 2015: October 1, 2014, as Restated Additions Reductions Premium Amortized, net September 30, 2015 Due within one year Governmental Activities: Bonds Payable $ 353,610 $ ‐ $ (18,735)$ ‐ $ 334,875 $ 19,605 Premium on Bonds Payable 18,278 ‐ ‐ (1,507) 16,771 ‐ Notes Payable 7,081 ‐ (680) ‐ 6,401 556 Capital Lease Obligations 230 1,914 (625) ‐ 1,519 595 Self‐Insurance Claims 6,573 52,244 (51,858) ‐ 6,959 5,703 Net Pension Liability 84,865 49,336 ‐ ‐ 134,201 ‐ Net OPEB Obligation 2,531 2,038 (1,575) ‐ 2,994 ‐ Compensated Absences 24,887 6,645 (9,742) ‐ 21,790 8,206 Total 498,055$ 112,177$ (83,215)$ (1,507)$ 525,510$ 34,665$ Business‐type Activities: Bonds and Loans Payable 207,414$ 17,687$ (31,816)$ ‐$ $ 193,285 12,755$ Premium on Bonds Payable 1,100 ‐ (233) (51) 816 ‐ Notes Payable 69 ‐ (5) ‐ 64 64 Capital Lease Obligations 1,222 130 (278) ‐ 1,074 283 Landfill Closure Liability 1,926 ‐ (20) ‐ 1,906 ‐ Net Pension Liability 16,169 10,282 ‐ ‐ 26,451 ‐ Compensated Absences 2,764 2,235 (2,404) ‐ 2,595 2,076 Total 230,664$ 30,334$ (34,756)$ (51)$ 226,191$ 15,178$ 000's Omitted 53 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6 – LONG‐TERM DEBT – CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2015 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal ServiceTaxing Unit,due in installments of $300,000 to $540,000 through January 1,2022;interestat3.75%to 4.25%and collateralized by a limited ad valorem pledgeof up to 4 mils.3,355,000$ Total Governmental Activities Limited General Obligation Bonds 3,355,000$ Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June1,2023;interest at3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds.25,725,000$ $89,780,000 2014 Gas Tax Refunding Revenue Bonds, due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds.88,715,000 $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034;interest at3.00% to 4.50% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 51,270,000 $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 16,370,000 $92,295,000 2011 Special Obligation Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 75,635,000 $73,805,000 2013 Special Obligation Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 73,805,000 Total Governmental Activities Revenue Bonds 331,520,000$ Governmental Activities Notes Payable $7,557,900 Bayshore Gateway Community Redevelopment Agency Taxable Note, due in monthly installments of $41,988 through June 1, 2018; variable interest rate of 30‐Day LIBOR plus 3.75% and collateralized by a pledgeon all legally availablenon‐ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency.6,009,577$ 54 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6 – LONG‐TERM DEBT – CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE – CONTINUED $550,000 2012 Limited General Obligation Note, Radio Road East Municipal Service Taxing Unit, due in installments of $3,847 to $5,408 through June 1, 2022; interest at 3.44% and collateralized by a limited ad valorem pledge of up to .5 mils. 391,515 Total Governmental Activities Notes Payable 6,401,092$ Total Governmental Activities Obligations 341,276,092$ Unamortized Bond Premium 16,771,274$ Governmental Activities Obligations, Net 358,047,366$ Less Current Portion of Governmental Activities Obligations (20,161,289)$ Long ‐Term Portion of Governmental Activities Obligations, Net 337,886,077$ BUSINESS‐TYPE ACTIVITIES Business‐type Activities Revenue Bonds $110,165,000 2006 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July 1, 2036; interestat4.00%to5.00% andcollateralized bya lienon anda pledgeof netrevenues ofthe Collier County Water and Sewer District. 60,160,000$ $11,727,489 2009 Collier County Water and Sewer Revenue Bonds due in annual installments of $1,569,324 to $1,817,005, commencing July 1, 2010 through July 1, 2016; interest at 2.97% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 1,817,005 $17,769,080 2013 Collier County Water and Sewer Refunding RevenueBonds due in annual installments of $1,369,430 to $4,312,275, commencing July 1, 2014 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 9,209,813 $17,687,000 2015 Collier County Water and Sewer Refunding RevenueBonds due in annual installments of $2,533,000 to $4,561,000, commencing July 1, 2017 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 17,687,000 Total Business‐type Activities Revenue Bonds 88,873,818$ Business‐type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non ‐interest bearing agreement. 64,255$ $13,730,740 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.65%payable in 40 semiannual payments commencing January 15,1999 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,538,021 $21,951,544 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 3.05% payable in 40 semiannual payments commencing November 15, 2001 and collateralized by a subordinated pledgeonthenetrevenues oftheCollierCounty Waterand Sewer District.7,964,628 $5,055,347 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05%payablein 40 semiannual payments commencing October 15,2004 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,709,893 55 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6 – LONG‐TERM DEBT – CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE – CONTINUED $6,560,956 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05%payablein 40 semiannual payments commencing January 15,2005 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 3,442,863$ $28,630,467 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.95%payablein 40 semiannual payments commencing June15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.17,447,845 $10,280,778 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.90% payable in 40 semiannual payments commencing September 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 6,011,725 $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 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 3,129,243 $4,210,716 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 40 semiannual payments commencing November 15, 2007 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 2,709,725 $5,625,546 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 3,761,015 $21,126,718 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.25%, 2.64%, 2.71% and 2.79% payablein 40 semiannual payments commencing August15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.15,700,512 $42,505,652 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.25%, 2.37%, 2.64% and 2.79% payable in 40 semiannual payments commencing October 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.36,833,440 $2,864,137 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 2,161,985 Total Business‐type Activities Loans and Notes Payable 104,475,150$ Total Business‐ty pe Activities Obligations 193,348,968$ Unamortized Bond Premium 816,351$ Business‐type Activities Obligations, Net 194,165,319$ Less Current Portion of Business‐type Activities Obligations Payable from Unrestricted Assets (6,783,792)$ Less Current Portion of Business‐type Activities Obligations Payable from Restricted Assets (6,035,339)$ Long ‐Term Portion of Business‐type Activities Obligations, Net 181,346,188$ 56 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 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: Fiscal Year Totals Principal Interest Principal Interest Principal Interest 2016 425,000$ 130,775$ 19,180,000$ 12,261,577$ 556,289$ 240,902$ 32,794,543$ 2017 440,000 113,475 19,900,000 11,529,730 558,121 219,168 32,760,494 2018 460,000 95,475 20,655,000 10,766,957 5,058,027 152,123 37,187,582 2019 475,000 76,181 21,440,000 9,961,048 58,124 6,955 32,017,308 2020 495,000 55,569 22,270,000 9,145,667 60,156 4,924 32,031,316 2021‐25 1,060,000 45,475 116,640,000 33,048,831 110,375 3,513 150,908,194 2026‐30 ‐ ‐ 51,590,000 17,605,916 ‐ ‐ 69,195,916 2031‐35 ‐ ‐ 53,130,000 6,908,263 ‐ ‐ 60,038,263 2036‐40 ‐ ‐ 6,715,000 134,300 ‐ ‐ 6,849,300 Totals 3,355,000$ 516,950$ 331,520,000$ 111,362,289$ 6,401,092$ 627,585$ 453,782,916$ Governmental Activities Limited General Obligation Bonds Revenue Bonds Notes Payable Fiscal Year Totals Principal Interest Principal Interest 2016 3,986,420$ 3,120,912$ 8,832,710$ 2,744,775$ 18,684,817$ 2017 3,902,430 2,990,729 9,010,716 2,502,514 18,406,389 2018 3,968,061 2,925,465 9,259,743 2,253,489 18,406,758 2019 4,031,480 2,859,179 8,623,257 2,003,493 17,517,409 2020 4,099,464 2,791,703 8,862,105 1,764,650 17,517,922 2021‐25 8,725,963 13,211,228 41,164,315 5,329,275 68,430,781 2026‐30 13,195,000 12,835,650 18,722,304 899,518 45,652,472 2031‐35 38,270,000 7,144,977 ‐ ‐ 45,414,977 2036‐40 8,695,000 386,928 ‐ ‐ 9,081,928 Totals 88,873,818$ 48,266,771$ 104,475,150$ 17,497,714$ 259,113,453$ Business‐type Activities Revenue Bonds Notes Payable Loans and CURRENT YEAR DEBT REFUNDINGS On September 30, 2015 the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the par amount of $17,687,000. These bonds were issued for the purpose of advance refunding a portion of the County’s outstanding Series 2006 Water and Sewer Revenue Bonds. The final maturity of the bonds is July 1, 2022, with an interest rate of 1.75%. The refunding achieved a net present value savings of 7.12% on the refunded bonds. The advance refunding achieved an aggregate debt service savings of $1,382,125 and an economic gain of $1,470,675. The refunded Series 2006 bonds have a redemption date of July 1, 2016. 57 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6 – LONG‐TERM DEBT – CONTINUED RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from non‐ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds. According to County resolutions authorizing the issuance of the Series 2012 and 2014 Gas Tax Revenue Refunding Bonds, the issues are payable from and secured by liens on gas tax revenues. Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the Agency’s Series 2013 taxable note. The Agency has additionally covenanted to budget and appropriate from all legally available non‐ad valorem revenues of the Agency to pay the Series 2013 note to the extent the tax increment revenues are insufficient. The Series 2013 note does not constitute an indebtedness of the County and is payable solely from the security provided by the Agency. The Agency is required to have a debt service reserve balance of $800,000 as of the end of fiscal year 2015. The Agency was in compliance with these covenants for the year ended September 30, 2015. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $88,873,818 in Series 2006, 2009, 2013 and 2015 revenue bonds. Proceeds from the bonds were used for rehabilitation or expansion of the District’s water and sewer systems or for the refinancing of bonds issued for rehabilitation or expansion of the District’s water and sewer systems. Principal and interest are payable through July 1, 2036, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds received shall be at least 125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2015 pledged revenues, net of operating expenses, were $43,242,167 and $55,893,517 when system development fees and special assessments were included. Principal and interest paid on the bonds during fiscal year 2015 totaled $9,712,547, providing coverage of 445% and 575%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2015. The 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 is subordinate in all respects to the liens placed upon pledged revenues established by bonded indebtedness. The District must maintain rates and charges for services which together with system development fees are sufficient to pay 115% to 125%, depending upon the individual loan agreement, of the annual debt service requirements on the loans, as well as satisfy the coverage requirements of all senior debt obligations. The District’s State Revolving Fund loans were in compliance with these covenants for the year ended September 30, 2015. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. 58 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6 – LONG‐TERM DEBT – CONTINUED INTEREST CAPITALIZED Interest costs on the long‐term debt of business‐type activities, including capitalized leases, incurred and capitalized during the year ended September 30, 2015 were as follows: Total Interest Cost Incurred Interest Cost Capitalized Net Interest Expense Business‐type Activities $ 6,350,919 $ 1,313,387 $ 5,037,532 Interest expense is shown as a direct expense of the Business‐type Activities. LEASE OBLIGATIONS Capitalized leases payable at September 30, 2015 amounted to $2,593,462. These obligations, which are collateralized by equipment and vehicles, have total annual installments ranging from $59,406 to $964,620 including interest ranging from 1.83% to 4.82% and mature through 2022. As of year‐end, equipment currently leased under capital leases in the governmental activities had a historical cost of $2,930,057 and accumulated depreciation of $855,945. Equipment currently leased under capital leases in the business‐type activities had a historical cost of $1,678,920 and accumulated depreciation of $513,003. Future minimum capital lease obligations as of September 30, 2015 were as follows: Governmental Business ‐type Activities Activities Total 663,211$ 301,409$ 964,620$ 663,211 301,409 964,620 92,887 258,705 351,592 92,887 257,981 350,868 87,622 ‐ 87,622 59,406 ‐ 59,406 Total minimum lease payments 1,659,224 1,119,504 2,778,728 Less amount representing interest (139,729) (45,536) (185,265) Present value of minimum lease payments 1,519,495$ 1,073,968$ 2,593,463$ 2021‐22 2016 2017 2018 2019 2020 The County also leases office space, office equipment and storage space under operating leases. These leases expire or are cancellable within the next fiscal year. In the normal course of operations, these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within the governmental activities for the year ended September 30, 2015 were $1,317,915. Total rental expenditures for all operating leases within business‐type activities governmental activities for the year ended September 30, 2015 were $208,550. 59 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 7 – CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi‐family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2015, the outstanding principal amount payable on all component unit conduit debt was $438,847,215 and is made up of the following: Industrial development revenue bonds 215,190,000$ Housing finance revenue bonds 27,587,215 Health facilities revenue bonds 105,330,000 Educational facilities revenue bonds 90,740,000 Total 438,847,215$ NOTE 8 – DEFEASED DEBT The County has defeased certain outstanding bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the defeased debt. Accordingly, the trust accounts and the defeased bonds are not included in the County's financial statements. At September 30, 2015 the following issues were considered defeased: Original Debt Defeased Bonds Defeased Outstanding 1986 Capital Improvement Program Revenue Bonds, Sub‐Series 5 Mode A 12,245,000$ 1,025,000$ Total Governmental Activities Defeased Debt 12,245,000$ 1,025,000$ Original Debt Defeased Bonds Defeased Outstanding 2006 County Water and Sewer Revenue Bonds 50,005,000$ 50,005,000$ Total Business‐type Activities Defeased Debt 50,005,000$ 50,005,000$ Governmental Activities Business‐type Activities 60 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost‐sharing multiple‐employer defined benefit pension plan, to assist retired members of any State‐administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State‐administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost‐sharing, multiple‐employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ web site (www.dms.myflorida.com). The County’s pension expense totaled $12,733,272 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2015. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost‐of‐living adjustments to eligible participants. 61 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in‐line‐of‐duty or regular disability and survivors’ benefits. The following chart shows the percentage value for each year of service credit earned: Class, Initial Enrollment and Retirement Age/Years of Service: % Value Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement up to age 63 or with 31 years of service 1.63 Retirement up to age 64 or with 32 years of service 1.65 Retirement up to age 65 or with 33 or more years of service 1.68 Regular Class members initially enrolled after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement up to age 66 or with 34 years of service 1.63 Retirement up to age 67 or with 35 years of service 1.65 Retirement up to age 68 or with 36 or more years of service 1.68 Elected County Officers 3.00 Senior Management Service Class 2.00 Special Risk Regular Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost‐of‐living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost‐of‐living adjustment. The annual cost‐of‐living adjustment is a proportion of 3 percent determined by dividing the sum of the pre‐July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost‐of‐living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively, were as follows: Regular employees‐7.37% and 7.26%; County Elected Officials‐43.24% and 42.27%; Senior Management Services‐21.14% and 21.43%; and DROP participants‐12.28% and 18.75%. The County’s contributions to the FRS Plan were $17,830,147 for the year ended September 30, 2015. 62 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED PENSION COSTS At September 30, 2015, the County reported a liability of $95,078,054 for its proportionate share of the FRS Plan’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The County’s proportion of the net pension liability was based on the County’s contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of FRS’s participating employers. At June 30, 2015, the County’s proportion was 0.736107%, which was an increase of 0.032452% from its proportion measured as of June 30, 2014. For the year ended September 30, 2015, the County recognized pension expense of $7,523,684 for its proportionate share of FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience 10,037,428$ 2,254,962$ Changes in Actuarial Assumptions 6,310,649 ‐ Net Difference Between Projected and Actual Earnings on Pension Plan Investments ‐ 22,703,048 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 5,585,758 1,659,713 County Contributions Subsequent to th e Measurement Date 4,207,785 ‐ Total 26,141,620$ 26,617,723$ Deferred outflows of resources related to pensions of $4,207,785, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows: Year Ended September 30 Amount 2016 (6,795,255)$ 2017 (6,795,255) 2018 (6,795,255) 2019 11,935,469 2020 2,957,172 Thereafter 809,236 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per year Salary Increases 3.25% Average, Including Inflation Investment Rate of Return 7.65%, Net of Pension Plan Investment Expense, Including Inflation 63 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2015, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2014. The long‐term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward‐looking capital market economic model. The allocation policy’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 3.2% 3.1% 1.7% Fixed income 18.0% 4.8% 4.7% 4.7% Global equity 53.0%8.5%7.2%17.7% Real estate (property)10.0% 6.8% 6.2% 12.0% Private Equity 6.0% 11.9% 8.2% 30.0% Strategic investments 12.0%6.7%6.1%11.4% Totals 100.0% Assumed Inflation ‐ Mean 2.6%1.9% DISCOUNT RATE The discount rate used to measure the total pension liability was 7.65% for the FRS Plan. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate FRS Plan Discount Rate 6.65% 7.65% 8.65% County's Proportionate Share of the FRS Plan Net Pension Liability 246,368,741$ 95,078,054$ (30,820,648)$ 64 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED PENSION PLAN FIDUCIARY NET POSITION Detailed information about the FRS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at http://www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State‐administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State‐administered retirement system must provide proof of health insurance coverage, which may include Medicare. CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rate rates include a 1.20% and 1.26% HIS Plan subsidy for the periods October 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively, pursuant to Section 112.363, Florida Statues. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County’s contributions to the HIS Plan were $2,614,704 for the year ended September 30, 2015. PENSION COSTS At September 30, 2015, the County reported a liability of $65,574,171 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The County’s proportion of the net pension liability was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all participating employers. At June 30, 2015, the County’s proportion was 0.642983%, which was an increase of 0.021597% from its proportion measured as of June 30, 2014. For the year ended September 30, 2015, the County recognized pension expense of $5,209,587 for its proportionate share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and deferred inflows of resources from the following sources: 65 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience ‐$ ‐$ Changes in Actuarial Assumptions 5,158,975 ‐ Net Difference Between Projected and Actual Earnings on HIS Program Investments 35,497 ‐ Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 2,054,403 97,589 County Contributions Subsequent to the Measurement Date 742,848 ‐ Total 7,991,723$ 97,589$ Deferred outflows of resources related to pensions of $742,848, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ended September 30 Amount 2016 1,222,743$ 2017 1,222,743 2018 1,222,743 2019 1,215,528 2020 1,212,065 Thereafter 1,055,464 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per year Salary Increases 3.25% Average, Including Inflation Municipal Bond Rate 3.80% Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2015, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2014. DISCOUNT RATE The discount rate used to measure the total pension liability was 3.80% for the HIS Plan. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long‐term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay‐as‐you‐go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20‐Bond Municipal Bond Index was adopted as the applicable municipal bond index. Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate HIS Plan Discount Rate 2.80% 3.80% 4.80% Authority's Proportionate Share of the HIS Plan Net Pension Liability 74,718,716$ 65,574,172$ 57,948,994$ 66 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at http://www.dms.myflorida.com. NOTE 10 – DEFINED CONTRIBUTION PLAN The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. The County’s Investment Plan pension expense totaled $4,408,500 for the year ended September 30, 2015. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non‐vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS‐covered employment within the 5‐year period, the employee will regain control over their account. If the employee does not return within the 5‐year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump‐sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 67 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 11 – TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from (2) move receipts restricted to debt service to the debt service fund as payments become due, (3) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations or (4) permanent transfer of advances that are not expected to be repaid in the near future. Transfers for the year ended September 30, 2015 were as follows: Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds 76,753,876$ Solid Waste Disposal 41,510 Nonmajor Business‐type 18,009,871 Bayshore Gateway Community Redevelopment Agency Nonmajor Governmental Funds 905,700 Immokalee Community Redevelopment Agency Nonmajor Governmental Funds 192,708 Nonmajor Governmental Funds General Fund 3,546,453 Bayshore Gateway Community Redevelopment Agency 136,800 Immokalee Community Redevelopment Agency 76,000 Nonmajor Governmental Funds 106,894,939 County Water and Sewer 404,512 Nonmajor Business‐type 1,797,537 Business‐type Activities: County Water and Sewer General Fund 5,203,400 Nonmajor Governmental Funds 218,500 Solid Waste Disposal 45,300 Solid Waste Disposal General Fund 609,393 County Water and Sewer 114,268 Nonmajor Business‐type General Fund 8,641 Nonmajor Governmental Funds 3,000 Internal Service Funds General Fund 1,276,600 Nonmajor Governmental Funds 200,000 Total Operating Transfers 216,439,008$ 68 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued in the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for grants: State and federal government grant monies restricted for grant related purposes. 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 nonexpendable purposes – other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues – other: Balances are restricted for specific uses associated with the revenue collected. 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. Governmental funds report fund balances as either spendable or non‐spendable. Spendable fund balances are further classified as restricted, committed, assigned or unassigned depending upon the extent to which there are external or internal constraints on the spending of these fund balances. Non‐spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. 69 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED Spendable fund balance: Restricted fund balance – Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance – Amounts that can be spent only for specific purposes determined by the County’s highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance – Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance – Unassigned fund balance is the residual classification for the County’s general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractural arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 70 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED A detailed schedule of fund balances at September 30, 2015 is as follows: Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Nonspendable: Endowments ‐$ ‐$ ‐$ 1,582,800$ 1,582,800$ Advances 711,800 ‐ ‐ 528,901 1,240,701 Notes 1,623,781 ‐ ‐ ‐ 1,623,781 Inventory 1,144,635 ‐ ‐ 922,450 2,067,085 Prepaid costs 66,169 ‐ ‐ 77,600 143,769 Total nonspendable fund balance 3,546,385 ‐ ‐ 3,111,751 6,658,136 Restricted for: Community redevelopment ‐ 12,448,739 ‐ ‐ 12,448,739 Federal and state grants 344,611 ‐ ‐ 6,492,651 6,837,262 Bond covenants or debt service ‐ ‐ ‐ 9,751,048 9,751,048 Transportation growth related capital ‐ ‐ ‐ 53,212,385 53,212,385 Parks growth related capital expansion ‐ ‐ ‐ 17,823,101 17,823,101 Transportation capital projects ‐ ‐ ‐ 31,146,406 31,146,406 Community development ‐ ‐ ‐ 33,797,316 33,797,316 Transportation operations ‐ ‐ ‐ 2,701,194 2,701,194 Tourist development ‐ ‐ ‐ 59,643,088 59,643,088 Conservation Collier ‐ ‐ ‐ 33,795,298 33,795,298 Emergency 911 ‐ ‐ ‐ 5,157,790 5,157,790 Law Enforcement ‐ ‐ ‐ 9,422,582 9,422,582 Fire services growth related capital ‐ ‐ ‐ 65,079 65,079 Government facilities growth capital ‐ ‐ ‐ 2,430,165 2,430,165 Libraries growth related capital ‐ ‐ ‐ 1,043,343 1,043,343 Court functions ‐ ‐ ‐ 7,833,160 7,833,160 Public Records Modernization ‐ ‐ ‐ 4,909,801 4,909,801 Other purposes ‐ ‐ ‐ 1,608,014 1,608,014 Total restricted fund balance 344,611 12,448,739 ‐ 280,832,421 293,625,771 Committed for: Special districts ‐ ‐ ‐ 21,856,442 21,856,442 Natural resource management ‐ ‐ ‐ 2,126,587 2,126,587 Utility regulation ‐ ‐ ‐ 1,316,464 1,316,464 Other purposes ‐ ‐ ‐ 363,166 363,166 Total committed fund balance ‐ ‐ ‐ 25,662,659 25,662,659 Assigned for: Parks and recreation ‐ ‐ ‐ 4,443,926 4,443,926 General building & improvements ‐ ‐ ‐ 9,581,141 9,581,141 Water management ‐ ‐ ‐ 13,332,196 13,332,196 Libraries ‐ ‐ ‐ 646,886 646,886 Other purposes 1,298,463 ‐ ‐ 2,796,170 4,094,633 Total assigned fund balance 1,298,463 ‐ ‐ 30,800,319 32,098,782 Unassigned:55,002,184 ‐ (59,425) (454,228) 54,488,531 Total Fund Balances 60,191,643$ 12,448,739$ (59,425)$ 339,952,922$ 412,533,879$ 71 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 13 – RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self‐insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self‐insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self‐insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self‐insurance fund and for all other covered risks of loss. Claim Type County’s Coverage Excess Carrier’s Coverage Property and casualty claims $50,000 ‐$500,000 (5% Named Storm) $50,000 ‐$75,000,000 Auto liability claims $300,000 $300,000 ‐$5,000,000 Employee health claims $325,000 $325,000 ‐Unlimited Workers' compensation claims $500,000 $500,000 ‐Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2015 the operating departments were charged $36,909,612 for workers' compensation, health and property and casualty self‐insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $4,789,434 reported at September 30, 2015 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%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $3,533,441 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self‐Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self‐Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self‐Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self‐insurance fund providing coverage for the first $500,000 of every claim. Re‐insurance is provided through a third party insurer for all claims exceeding $500,000 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 Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self‐insured risks are reported in the basic financial statements of the Statewide Florida Sheriff’s Self‐Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. 72 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 13 – RISK MANAGEMENT – CONTINUED 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 any one incident exceeding $200,000. 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 yet reported. The claims loss reserve for health of $2,170,000 reported at September 30, 2015 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff’s health claim loss reserve is recorded as a current liability. CHANGES IN SELF‐INSURANCE CLAIMS PAYABLE Changes in the self‐insurance claims payable for fiscal years 2014 and 2015 were as follows for the County and Sheriff self‐insurance programs: Property and Group Workers' Casualty Health Compensation Total Balance at September 30, 2013 821,779$ 6,452,000$ 855,099$ 8,128,878$ Current year claims incurred and changes in estimates 1,371,715 43,165,938 226,887 44,764,540 Claim payments (1,084,859) (44,748,938) (486,793) (46,320,590) Balance at September 30, 2014 1,108,635$ 4,869,000$ 595,193$ 6,572,828$ Current year claims incurred and changes in estimates 1,004,390 50,779,519 460,864 52,244,773 Claim payments (1,258,999) (50,084,519) (514,649) (51,858,167) Balance at September 30, 2015 854,026$ 5,564,000$ 541,408$ 6,959,434$ NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS Plan Description – The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County’s health insurance plan at the same group rate as for active employees. The plan does not issue a separate financial report. The Board of County Commissioners and the Tax Collector administer an additional 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 Board, 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. A subsidy is currently provided to fourteen retirees. The Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. At September 30, 2015, the date of the latest actuarial valuation, County plan participation consisted of: OPEB plan participants 2,107 Retirees receiving benefits 70 73 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED Funding Policy ‐ The County has the authority to establish and amend funding policy. For the year ended September 30, 2015, the County contributed $831,869 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the County’s OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County’s annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. 2015 2014 2013 Annual required contribution (ARC) 825,046$ 816,457$ 749,470$ Interest on net OPEB obligation 25,484 25,017 19,502 Adjustment to ARC (42,077) (41,306) (32,200) Annual OPEB cost 808,453 800,168 736,772 Contributions made (831,869) (784,612) (552,929) Increase (decrease) in net OPEB obligation (23,416) 15,556 183,843 Net OPEB obligation ‐ beginning of year 849,469 833,913 650,070 Net OPEB obligation ‐ en d of year 826,053$ 849,469$ 833,913$ Percentage of annual OPEB cost contributed 98% 98% 75% Funded Status and Funding Progress ‐ As of the September 30, 2014 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $6,977,743, and the actuarial value of plan assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $6,977,743. As of the September 30, 2015 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $7,178,976, and the actuarial value of plan assets was $0, resulting in a UAAL of $7,178,976. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $160.4 million, and the ratio of the UAAL to the covered payroll was 4.4%. Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long‐term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the actuarial value of assets. 74 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years, Open Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 6% for the 2016 fiscal year grading to an ultimate rate of 5% for the 2022 fiscal year Plan Description ‐ The Sheriff administers a single‐employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered 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 both single and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as for active employees. The plan does not issue a separate financial report. At September 30, 2015, the date of the latest actuarial valuation, Sheriff plan participation consisted of: OPEB plan participants 1,138 Retirees receiving benefits 104 Funding Policy ‐ The Sheriff has the authority to establish and amend funding policy. For the year ended September 30, 2015, the Sheriff contributed $742,376 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the Sheriff’s OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the Sheriff’s annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. 2015 2014 2013 Annual required contribution (ARC) 1,262,077$ 1,138,923$ 1,151,695$ Interest on net OPEB obligation 50,437 40,348 31,444 Adjustment to ARC (83,277) (66,618) (51,918) Annual OPEB cost 1,229,237 1,112,653 1,131,221 Contributions made (742,376) (776,332) (834,442) Increase in net OPEB obligation 486,861 336,321 296,779 Net OPEB obligation ‐ beginning of year 1,681,238 1,344,917 1,048,138 Net OPEB obligation ‐ end of year 2,168,099$1,681,238$1,344,917$ Percentage of annual OPEB cost contributed 70%70%73% 75 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED Funded Status and Funding Progress ‐ As of the September 30, 2014 actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $14,207,209, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $14,207,209. As of the September 30, 2015 actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $15,133,114, and the actuarial value of assets was $0, resulting in a UAAL of $15,133,114. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $117.6 million, and the ratio of the UAAL to the covered payroll was 12.9%. Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long‐term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years, Closed Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 8% for the 2016 fiscal year grading to an ultimate rate of 5% for the 2022 fiscal year NOTE 15 – LANDFILL LIABILITY On May 1, 1995 the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital 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 Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County’s estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. 76 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 16 – 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, other than as disclosed here, will not materially affect the financial position of the County. During fiscal year 2012, the Federal Emergency Management Agency (FEMA) made a decision to de‐obligate $11,172,273 in sand replacement costs previously reimbursed by the Agency to Collier County. The reimbursed costs were related to a project to repair beach erosion due to Hurricanes Katrina and Wilma. The decision to de‐ obligate the funding is currently under appeal by Collier County. Due to the uncertainty of an appeal, and based upon the opinion of legal counsel, a liability was recorded in the amount of $11,172,273. In fiscal year 2014, Collier County received notification of FEMA’s decision to reinstate $1,853,756 of funding as a result of the first round of appeals. In fiscal year 2015, the county’s second round of appeals was successful and an additional $7,760,504 in funding was reinstated. The remaining balance of $1,558,013 is recorded as a liability in both the entity wide financial statements and the tourist development fund financial statements of Collier County. The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et al v. Collier County, Case No. 08‐6933‐CA; Board of County Commissioners v. Francis D. Hussey, et al., Case No. 08‐6988‐CA consolidated with 08‐6933‐CA; and Sean Hussey, et al. v. Collier County, et al., Case No. 08‐7025‐CA. On September 11, 2008, the Plaintiffs, Francis D. Hussey, Jr. and Mary P. Hussey, husband and wife, and Winchester Lakes Corporation, a Florida corporation, filed an inverse condemnation suit seeking monetary damages from Collier County, Florida, the Honorable Charlie Crist, the Governor of the State of Florida and the Florida Department of Community Affairs. The Husseys contend that the designation of certain real property owned by them through a growth management plan amendment adopted in 2002 had the effect of precluding mining activities on their property, thereby resulting in a substantial diminution in value of the real estate, which the Plaintiffs contend to be compensable under Florida law. The complaint alleges current damage claims in the amount of $91,500,000. The Plaintiffs have also presented a claim for "inverse condemnation based on a regulatory taking of plaintiffs' property," in an amount not specified in the complaint. The Wildlife Federation and Collier County Audubon Society were granted leave to intervene in the suit by the Court on April 29, 2009. On July 9, 2009, the Florida Wildlife Federation and Collier County Audubon Society served upon defendants Francis and Mary Hussey a Notice of Intent to Sue over violations of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) The initial cases were dismissed with prejudice in February 2011 by the trial court and are now on appeal to the Second District Court of Appeals. Pending the outcome of the first appeal, the parties entered into a Settlement Agreement with no costs to be incurred by the County. The Bert Harris Act statute requires Court approval of the Settlement Agreement which approval was denied by the Circuit Court Judge. The denial of this Settlement Agreement is now also on appeal at the Second District Court of Appeal. The Second District Court affirmed denial of the Settlement Agreement. The Second District Court reversed dismissal of the Bert Harris Act claim and affirmed dismissal of the inverse condemnation claim. The County is currently awaiting the Second District Court of Appeal’s ruling on the parties’ Post Opinion Motions. Given the proposed Settlement Agreement (filed October 1, 2015), the County believes that this litigation will be concluded with no risk of liability to the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. The Clerk’s office is aware of inquiries being conducted by various grantor agencies. The impact to the financial statements, if any, is unknown and therefore unable to be calculated at this time. 77 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 16 – SIGNIFICANT CONTINGENCIES – CONTINUED 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. There was no arbitrage rebate liability as of September 30, 2015. NOTE 17 – SIGNIFICANT COMMITMENTS Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been order but not received. Encumbrance commitments do not include construction contracts, as they are included as contract commitments. Collier County has the following encumbrances as of September 30, 2015: Encumbrance Category Commitments Governmental Activities: General Fund General Government 636,637$ Public Safety 40,592 Economic Environment 129,000 Human Services 129,848 Culture and Recreation 93,887 Bayshore Gateway Community Redevelopment Agency Economic Environment 15,735 Immokalee CRA Economic Environment 12,232 Other Governmental Funds General Government 1,682,104 Public Safety 4,423,732 Physical Environment 4,281,737 Transportation 4,622,343 Economic Environment 5,163,099 Human Services 1,452,341 Culture and Recreation 2,439,151 Business‐type Activities: Water and Sewer Utilities 24,491,974 Solid Waste Disposal Landfill 901,983 Other Enterprise Funds Emergency Medical Services 313,680 Airports 17,092 Mass Transit 1,996,282 Total 52,843,449$ 78 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 17 – SIGNIFICANT COMMITMENTS – CONTINUED Collier County has active construction projects as of September 30, 2015. The projects include road construction, governmental facilities and utilities improvements. At year end, the County’s commitments with contractors include the following: Construction Category Commitments Governmental Activities: Immokalee Community Redevelopment Agency Economic Environment 177,510$ Other Governmental Funds Public Safety 1,390,115 Physical Environment 2,655,899 Transportation 40,648,433 Culture and Recreation 1,000,373 Business‐type Activities: Water and Sewer Utilities 14,804,386 Solid Waste Disposal Landfill 591,589 Other Enterprise Funds Airports 121,728 Mass Transit 1,454,509 Total 62,844,542$ NOTE 18 – FUND DEFICITS The following funds had fund balance deficits at September 30, 2015: Fund Amount Immokalee Community Redevelopment Agency $ (59,425) Fire Control Districts (454,228) Total (513,653)$ The fund balance deficits are the result of advances from other funds made prior to September 30, 2015. These advances were recorded to ensure repayment of monies loaned primarily for the acquisition of a fire station. County management anticipates that the deficits will be covered by future years’ revenues. 79 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 19 – CHANGE IN ACCOUNTING PRINCIPLE During the year ended September 30, 2015, the County adopted GASB Statement No. 68 Accounting and Financial Reporting for Pensions, and the related GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68. These pronouncements require the restatement of the September 30, 2014 net position of the governmental activities and proprietary funds as follows: Governmental Activities Business‐Type Activities County Water and Sewer Solid Waste Disposal Other Funds Governmental Activities ‐ Internal Service Funds 1,600,910,225$ 920,233,550$ 799,763,895$ 49,809,654$ 68,957,822$ 55,864,001$ Net Pension Liability as of September 30, (84,865,427) (16,168,963) (7,782,595) (676,326) (7,710,042) (1,888,731) Deferred Outflow of Resources for Unamortized Pension Costs as of September 30, 2014 13,896,713 2,402,902 945,803 80,475 1,376,624 245,469 Deferred Inflow of Resources for Unamortized Pension Costs as of September 30, 2014 (63,207,464) (13,003,532) (4,581,115) (384,435) (8,037,982) (1,238,621) September 30, 2014, as Restated 1,466,734,047$ 893,463,957$ 788,345,988$ 48,829,368$ 54,586,422$ 52,982,118$ Business‐type Activities Enterprise Funds Net Position, September 30, 2014, as Previously Reported Cumulative Affect of Application of GASB 68: 80 REQUIRED SUPPLEMENTARY INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK 2015 2014 County's Proportion of the Net Pension Liability 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability 95,078,054$ 42,933,306$ County's Covered‐Employee Payroll 140,176,971$ 132,386,835$ County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered‐Employee Payroll 67.83% 32.43% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 92.00% 96.09% 2015 2014 Contractually Required Contribution 17,830,147$ 17,287,796$ Contributions in Relation to the Contractually Required Contribution (17,830,147) (17,287,796) Contribution Deficiency (Excess)‐$ ‐$ County's Covered‐Employee Payroll FY 139,443,152$ 133,436,828$ Contributions as a Percentage of Covered Employee Payroll 12.79% 12.96% 2015 2014 County's Proportion of the Net Pension Liability 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability 65,574,171$ 58,101,084$ County's Covered‐Employee Payroll 195,154,275$ 184,577,284$ County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered‐Employee Payroll 33.60% 31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 0.50%0.99% 2015 2014 Contractually Required Contribution 2,614,704$ 2,131,155$ Contributions in Relation to the Contractually Required Contribution (2,614,704) (2,131,155) Contribution Deficiency (Excess)‐$ ‐$ County's Covered‐Employee Payroll FY 193,543,352$ 185,505,694$ Contributions as a Percentage of Covered Employee Payroll 1.35%1.15% LAST TEN FISCAL YEARS* SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS* Note: Information is required to be presented for 10 years. However, until a full 10‐year trend is compiled, the County will pres for which information is available. *The Amounts Presented for Each Fiscal Year were Determined as of June 30. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS* SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS* 83 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) ‐ Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2009 ‐$ 5,814,470$ 5,814,470$ 0.0% 112,828,491$ 5.2% (Non‐Sheriff) Board and Constitutionals 10/1/2010 ‐ 5,825,874 5,825,874 0.0% 105,458,501 5.5% (Non‐Sheriff) Board and Constitutionals 10/1/2011 ‐ 6,564,292 6,564,292 0.0% 106,554,662 6.2% (Non‐Sheriff) Board and Constitutionals 10/1/2012 ‐ 6,650,672 6,650,672 0.0% 105,433,555 6.3% (Non‐Sheriff) Board and Constitutionals 10/1/2013 ‐ 7,093,909 7,093,909 0.0% 102,713,900 6.9% (Non‐Sheriff) Board and Constitutionals 10/1/2014 ‐ 6,977,743 6,977,743 0.0% 109,906,269 6.3% (Non‐Sheriff) Board and Constitutionals 10/1/2015 ‐ 7,178,976 7,178,976 0.0% 116,579,554 6.2% (Non‐Sheriff) Sheriff 10/1/2009 ‐ 14,171,709 14,171,709 0.0% 123,296,677 11.5% Sheriff 10/1/2010 ‐ 12,148,033 12,148,033 0.0% 117,879,632 10.3% Sheriff 10/1/2011 ‐ 12,018,242 12,018,242 0.0% 114,185,572 10.5% Sheriff 10/1/2012 ‐ 13,291,909 13,291,909 0.0% 108,390,240 12.3% Sheriff 10/1/2013 ‐ 13,141,022 13,141,022 0.0% 107,204,015 12.3% Sheriff 10/1/2014 ‐ 14,207,209 14,207,209 0.0%112,902,749 12.6% Sheriff 10/1/2015 ‐ 15,133,114 15,133,114 0.0% 117,563,839 12.9% COLLIER COUNTY, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN OTHER POSTEMPLOYMENT BENEFITS 84 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND OTHER SUPPLEMENTAL INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK Nonmajor Governmental Funds Special Revenue Funds ROAD DISTRICTS – To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT – To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT – To account for building permit and 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 water pollution control. GRANTS AND SHARED REVENUES – To account for the revenues received from federal, state and local grants. IMPROVEMENT DISTRICTS – To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS – To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICTS – To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE – To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT – To account for the 4% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP – To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND – To account for moving traffic violation surcharges received to fund the County’s intergovernmental radio communications program. STATE COURT ADMINISTRATION – To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY – To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS – To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE – To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER – To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY – To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES – To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION – To account for fund accumulation to meet the educational goals of the Collier County UF/IFAS extension. COURT FACILITIES FEE – To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING – To account for fees to be used to provide for affordable housing related projects. OTHER COURT SPECIAL REVENUE FUNDS – To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the Sheriff’s Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment Adoption Awareness Legal Aid Society Teen Court Law Enforcement Training Animal Control Domestic Violence Public Library Juvenile Assessment Center Law Library Driver Education Freedom Memorial Crime Prevention County Drug Abuse Permanent Fund RESOURCE RECOVERY PARK ENDOWMENT – To account for the permanent endowment established for the benefit of the County’s land conservation program. Debt Service Funds RADIO ROAD EAST LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources, surety reserve and payment of interest and principal on the Radio Road East limited general obligation bonds. CONSERVATION COLLIER LIMITED GENERAL OBLIGATION BONDS – 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 TAXABLE NOTE – To account for the accumulation of resources and payment of interest and principal on taxable long‐term debt incurred for the acquisition of land in the Bayshore/Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources and payment of interest and principal on long‐term debt incurred on the Forest Lakes Limited General Obligation Bonds. SPECIAL OBLIGATION REVENUE BONDS – To account for the accumulation of resources and payment of interest and principal on long‐term debt incurred in the refinancing of various outstanding variable rate commercial paper loans. OTHER DEBT SERVICE – To account for the accumulation of resources and payment of interest and principal on variable rate commercial paper loans and special assessment debt incurred in the Naples Park area. 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 valorem taxes. PARKS IMPACT DISTRICTS – To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS – To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION – To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right‐of‐way acquisition, design and construction of various transportation improvements. 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 and construction of government facilities. LAW ENFORCEMENT IMPACT FEES – To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK – To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. 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. Water Management Road Unincorporated Community and Pollution Districts Area MSTD Development Control ASSETS Cash, cash equivalents and investments 2,637,594$ 9,771,544$ 36,676,107$ 2,260,719$ Cash with fiscal agent ‐‐‐‐ Receivables: Interest 8,469 30,350 86,796 7,057 Trade, net 1,277 145,350 6,355 282 Notes ‐‐‐‐ Impact fee ‐‐‐‐ Special assessments ‐‐‐‐ Due from other funds 800,000 276,620 21 41,783 Due from other governments 18,287 403,116 122,900 66,254 Deposits ‐‐‐‐ Inventory for resale ‐‐‐‐ Inventory 904,891 ‐‐17,559 Advances to other funds ‐528,901 ‐‐ Prepaid costs 60,000 4,000 ‐‐ Total assets 4,430,518$ 11,159,881$ 36,892,179$ 2,393,654$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 242,008 1,065,608 186,157 107,960 Wages payable 522,314 806,278 847,461 141,548 Due to other funds ‐18,896 ‐‐ Due to other governments 111 503,153 1,999,460 ‐ Unearned revenues ‐6,493 ‐‐ Refundable deposits ‐‐61,785 ‐ Retainage payable ‐‐‐‐ Advances from other funds ‐‐‐‐ Total liabilities 764,433 2,400,428 3,094,863 249,508 Deferred inflows of resources: Unavailable revenue ‐‐‐‐ Fund balances (deficits): Nonspendable 964,891 532,901 ‐17,559 Restricted 2,701,194 ‐33,797,316 ‐ Committed ‐8,226,552 ‐2,126,587 Assigned ‐‐‐‐ Unassigned ‐‐‐‐ Total fund balances (deficits) 3,666,085 8,759,453 33,797,316 2,144,146 Total liabilities, deferred inflows of resources and fund balances (deficits) 4,430,518$ 11,159,881$ 36,892,179$ 2,393,654$ See accompanying independent auditor's report Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 90 Grants and Fire 911 Shared Improvement Control Lighting Enhancement Tourist Revenues Districts Districts Districts Fee Development 3,597,691$ 13,876,990$ 351,414$ 1,170,603$ 4,196,432$ 52,698,434$ ‐ ‐ ‐ ‐ ‐ ‐ 9,336 36,586 1,790 3,366 10,648 130,836 267,950 377 1,274 242 ‐ 859,626 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 614,035 32,563 35,162 10,997 ‐ 164,537 13,293,675 ‐ 3,254 ‐ ‐ 8,532,800 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 17,782,687$ 13,946,516$ 392,894$ 1,185,208$ 4,207,080$ 62,386,233$ 3,507,945 981,121 5,585 64,860 901,513 1,056,065 145,998 27,705 129,339 6,166 ‐ 126,744 9,112,299 3,855 398 312 ‐ 1,273 172,823 ‐ ‐ ‐ ‐ 1,558,013 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,050 1,230,595 157,815 ‐ ‐ ‐ ‐ ‐ 260,000 711,800 ‐ ‐ ‐ 14,169,660 1,430,496 847,122 71,338 901,513 2,743,145 103,979 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,509,048 ‐ ‐ ‐ 3,305,567 59,643,088 ‐ 12,516,020 ‐ 1,113,870 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (454,228) ‐ ‐ ‐ 3,509,048 12,516,020 (454,228) 1,113,870 3,305,567 59,643,088 17,782,687$ 13,946,516$ 392,894$ 1,185,208$ 4,207,080$ 62,386,233$ Special Revenue Funds 91 State 800 Housing MHZ Initiative IRCP State Court Confiscated Partnership Fund Administration Property ASSETS Cash, cash equivalents and investments 2,402,662$ 27,651$ 187,039$ 340,343$ Cash with fiscal agent ‐ ‐ ‐ ‐ Receivables: Interest 6,312 295 825 934 Trade, net ‐ 19,651 84,402 ‐ Notes 655,176 ‐ ‐ ‐ Impact fee ‐ ‐ ‐ ‐ Special assessments ‐ ‐ ‐ ‐ Due from other funds ‐ ‐ 3,137 ‐ Due from other governments ‐ ‐ ‐ ‐ Deposits ‐ ‐ ‐ ‐ Inventory for resale ‐ ‐ ‐ ‐ Inventory ‐ ‐ ‐ ‐ Advances to other funds ‐ ‐ ‐ ‐ Prepaid costs ‐ ‐ ‐ ‐ Total assets 3,064,150$ 47,597$ 275,403$ 341,277$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 73,120 7,642 307 11,895 Wages payable 7,427 ‐ 107,279 ‐ Due to other funds ‐ ‐ ‐ ‐ Due to other governments ‐ ‐ ‐ ‐ Unearned revenues ‐ ‐ ‐ ‐ Refundable deposits ‐ ‐ ‐ ‐ Retainage payable ‐ ‐ ‐ ‐ Advances from other funds ‐ ‐ ‐ ‐ Total liabilities 80,547 7,642 107,586 11,895 Deferred inflows of resources: Unavailable revenue ‐ ‐ ‐ ‐ Fund balances (deficits): Nonspendable ‐ ‐ ‐ ‐ Restricted 2,983,603 ‐ ‐ 329,382 Committed ‐ 39,955 167,817 ‐ Assigned ‐ ‐ ‐ ‐ Unassigned ‐ ‐ ‐ ‐ Total fund balances (deficits) 2,983,603 39,955 167,817 329,382 Total liabilities, deferred inflows of resources and fund balances (deficits) 3,064,150$ 47,597$ 275,403$ 341,277$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 Special Revenue Funds 92 GAC Land Court Sales, Roads Utility Conservation Information Court University and Canals Fee Collier Technology Services Extension 920,121$ 1,253,072$ 33,759,829$ 1,023,432$ 1,422,535$ 120,665$ ‐ ‐ ‐ ‐ ‐ ‐ 2,631 2,994 85,881 2,925 ‐ 308 ‐ 80,843 576 68,386 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 49,312 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 229,733 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,152,485$ 1,336,909$ 33,846,286$ 1,094,743$ 1,471,847$ 120,973$ ‐ 4 159,190 66,092 223,259 154 ‐ 20,441 15,452 4,253 ‐ ‐ ‐ ‐ 8,559 ‐ 379 ‐ ‐ ‐ ‐ ‐ 1,248,209 ‐ ‐ ‐ 1,035 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,445 184,236 70,345 1,471,847 154 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,152,485 ‐ 33,662,050 1,024,398 ‐ 120,819 ‐ 1,316,464 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,152,485 1,316,464 33,662,050 1,024,398 ‐ 120,819 1,152,485$ 1,336,909$ 33,846,286$ 1,094,743$ 1,471,847$ 120,973$ Special Revenue Funds 93 Other Other Court Court Special Public Safety Facilities Affordable Revenue Revenue Fee Housing Funds Funds ASSETS Cash, cash equivalents and investments 6,726,719$ 155,002$ 4,948,870$ 4,232,911$ Cash with fiscal agent ‐ ‐ ‐ ‐ Receivables: Interest 16,950 392 ‐ 4,893 Trade, net 69,845 ‐ ‐ 12,471 Notes ‐ ‐ ‐ ‐ Impact fee ‐ ‐ ‐ ‐ Special assessments ‐ ‐ ‐ ‐ Due from other funds ‐ ‐ ‐ 34,747 Due from other governments ‐ ‐ ‐ ‐ Deposits ‐ ‐ ‐ ‐ Inventory for resale ‐ ‐ ‐ ‐ Inventory ‐ ‐ ‐ ‐ Advances to other funds ‐ ‐ ‐ ‐ Prepaid costs ‐ ‐ ‐ ‐ Total assets 6,813,514$ 155,394$ 4,948,870$ 4,285,022$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable ‐ ‐ 39,069 147,013 Wages payable ‐ ‐ ‐ ‐ Due to other funds ‐ ‐ ‐ 445,763 Due to other governments ‐ ‐ ‐ ‐ Unearned revenues ‐ ‐ ‐ ‐ Refundable deposits ‐ ‐ ‐ ‐ Retainage payable 4,752 ‐ ‐ ‐ Advances from other funds ‐ ‐ ‐ ‐ Total liabilities 4,752 ‐ 39,069 592,776 Deferred inflows of resources: Unavailable revenue ‐ ‐ ‐ ‐ Fund balances (deficits): Nonspendable ‐ ‐ ‐ ‐ Restricted 6,808,762 ‐ 4,909,801 3,692,246 Committed ‐ 155,394 ‐ ‐ Assigned ‐ ‐ ‐ ‐ Unassigned ‐ ‐ ‐ ‐ Total fund balances (deficits) 6,808,762 155,394 4,909,801 3,692,246 Total liabilities, deferred inflows of resources and fund balances (deficits) 6,813,514$ 155,394$ 4,948,870$ 4,285,022$ See accompanying independent auditor's report Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 94 Permanent Fund Other Total Conservation Special Special Resource Radio Road East Collier Revenue Revenue Recovery Park Limited General Limited General Funds Funds Endowment Obligation Bonds Obligation Bonds 2,991,182$ 187,749,561$ 1,719,029$ 109,536$ 56,850$ ‐ ‐ ‐ ‐ ‐ 7,471 458,045 4,392 296 144 22,844 1,641,751 ‐ ‐ ‐ ‐ 655,176 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,013,602 ‐ 816 8,559 ‐ 22,489,598 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 229,733 ‐ ‐ ‐ ‐ 922,450 ‐ ‐ ‐ ‐ 528,901 ‐ ‐ ‐ ‐ 64,000 ‐ ‐ ‐ 3,021,497$ 216,752,817$ 1,723,421$ 110,648$ 65,553$ 7,183 8,853,750 7,373 ‐ ‐ 6,308 2,914,713 ‐ ‐ ‐ 3,137 9,594,871 ‐ ‐ ‐ 180 5,481,949 ‐ ‐ ‐ ‐ 7,528 ‐ ‐ ‐ ‐ 62,835 ‐ ‐ ‐ ‐ 1,393,162 ‐ ‐ ‐ ‐ 971,800 ‐ ‐ ‐ 16,808 29,280,608 7,373 ‐ ‐ ‐ 103,979 ‐ ‐ ‐ ‐ 1,515,351 1,582,800 ‐ ‐ 472,583 158,112,342 133,248 110,648 65,553 ‐ 25,662,659 ‐ ‐ ‐ 2,532,106 2,532,106 ‐ ‐ ‐ ‐ (454,228) ‐ ‐ ‐ 3,004,689 187,368,230 1,716,048 110,648 65,553 3,021,497$ 216,752,817$ 1,723,421$ 110,648$ 65,553$ Debt Service Funds Special Revenue Funds 95 Community Forest Lakes Special Redevelopment Limited General Obligation Other Taxable Note Obligation Bonds Revenue Bonds Debt Service ASSETS Cash, cash equivalents and investments 27,600$887,087$52,573$ 81,591$ Cash with fiscal agent 800,295 ‐10,904,041 ‐ Receivables: Interest 405 2,277 31,022 3,252 Trade, net ‐‐‐ 40 Notes ‐‐‐ ‐ Impact fee ‐‐‐ ‐ Special assessments ‐‐‐ ‐ Due from other funds ‐4,011 ‐ ‐ Due from other governments ‐‐‐ ‐ Deposits ‐‐‐ ‐ Inventory for resale ‐‐‐ ‐ Inventory ‐‐‐ ‐ Advances to other funds ‐‐‐ ‐ Prepaid costs ‐‐‐ ‐ Total assets 828,300$ 893,375$ 10,987,636$ 84,883$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable ‐‐‐ ‐ Wages payable ‐‐‐ ‐ Due to other funds ‐‐7,600,000 ‐ Due to other governments ‐‐‐ ‐ Unearned revenues ‐‐‐ ‐ Refundable deposits ‐‐‐ ‐ Retainage payable ‐‐‐ ‐ Advances from other funds ‐‐‐ ‐ Total liabilities ‐‐7,600,000 ‐ Deferred inflows of resources: Unavailable revenue ‐‐‐ ‐ Fund balances (deficits): Nonspendable ‐‐‐ ‐ Restricted 828,300 893,375 3,387,636 84,883 Committed ‐‐‐ ‐ Assigned ‐‐‐ ‐ Unassigned ‐‐‐ ‐ Total fund balances (deficits) 828,300 893,375 3,387,636 84,883 Total liabilities, deferred inflows of resources and fund balances (deficits) 828,300$ 893,375$ 10,987,636$ 84,883$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 Debt Service Funds 96 Debt Service Funds Total Emergency Debt County‐Wide County‐Wide Correctional Medical Service Capital Parks Library Facilities Services Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 1,215,237$ 11,326,446$ 1,197,472$ 1,090,308$ 490,543$ 2,018,878$ 11,704,336 ‐ ‐ ‐ ‐ ‐ 37,396 24,025 3,445 2,514 4,336 5,050 40 ‐ 34,040 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 203,974 60,774 57,889 ‐ ‐ ‐ ‐ ‐ ‐ 13,386 ‐ 337,528 ‐ 1,300,000 ‐ ‐ 12,389 ‐ 12,836 35,714 7,793 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12,970,395$ 11,362,860$ 1,572,485$ 1,309,632$ 1,891,367$ 2,089,610$ ‐ 423,849 134,964 62,315 ‐ 162,219 ‐ ‐ ‐ ‐ ‐ ‐ 7,600,000 1,051,307 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 306,563 ‐ ‐ ‐ 17,279 ‐ ‐ ‐ ‐ ‐ ‐ 7,600,000 1,781,719 134,964 62,315 ‐ 179,498 ‐ ‐ ‐ 203,974 60,774 57,889 ‐ ‐ ‐ ‐ ‐ ‐ 5,370,395 ‐ ‐ 1,043,343 1,830,593 1,852,223 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9,581,141 1,437,521 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,370,395 9,581,141 1,437,521 1,043,343 1,830,593 1,852,223 12,970,395$ 11,362,860$ 1,572,485$ 1,309,632$ 1,891,367$ 2,089,610$ Capital Projects Funds 97 Parks Road Water Impact Impact Road Management Districts Districts Construction ASSETS Cash, cash equivalents and investments 13,686,061$ 15,516,684$ 53,930,354$ 28,759,931$ Cash with fiscal agent ‐‐‐ ‐ Receivables: Interest 35,133 42,005 133,716 73,573 Trade, net ‐‐‐ 171,113 Notes ‐‐‐ ‐ Impact fee ‐1,238,057 3,161,944 ‐ Special assessments ‐‐‐ ‐ Due from other funds 2,517 2,400,000 ‐ 6,257,339 Due from other governments ‐78,261 709,177 1,573,310 Deposits ‐1,250 ‐ ‐ Inventory for resale ‐‐‐ ‐ Inventory ‐‐‐ ‐ Advances to other funds ‐‐‐ ‐ Prepaid costs ‐‐‐ 8,000 Total assets 13,723,711$ 19,276,257$ 57,935,191$ 36,843,266$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 424,748 215,099 1,400,818 900,706 Wages payable 2,459 ‐‐ 177,777 Due to other funds 30,385 ‐‐ 148,515 Due to other governments ‐‐‐ ‐ Unearned revenues ‐‐‐ ‐ Refundable deposits ‐‐‐ ‐ Retainage payable 1,520 ‐160,045 81,209 Advances from other funds ‐‐‐ ‐ Total liabilities 459,112 215,099 1,560,863 1,308,207 Deferred inflows of resources: Unavailable revenue ‐1,238,057 3,161,943 ‐ Fund balances (deficits): Nonspendable ‐‐‐ 8,000 Restricted ‐17,823,101 53,212,385 35,527,059 Committed ‐‐‐ ‐ Assigned 13,264,599 ‐‐ ‐ Unassigned ‐‐‐ ‐ Total fund balances (deficits) 13,264,599 17,823,101 53,212,385 35,535,059 Total liabilities, deferred inflows of resources and fund balances (deficits) 13,723,711$ 19,276,257$ 57,935,191$ 36,843,266$ See accompanying independent auditor's report Capital Projects Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 98 Total Total Government Law All Terrain Other Capital Nonmajor Facilities Enforcement Vehicle Capital Projects Governmental Impact Fees Impact Fees Park Projects Funds Funds 3,141,854$ 2,929,999$ 2,998,851$ 1,162,589$ 138,249,970$ 328,933,797$ ‐ ‐ ‐ ‐ ‐ 11,704,336 13,464 8,966 7,554 2,791 356,572 856,405 ‐ ‐ ‐ 2,310 207,463 1,849,254 ‐ ‐ ‐ ‐ ‐ 655,176 191,627 69,761 ‐ ‐ 4,984,026 4,984,026 ‐ ‐ ‐ 5,473 5,473 5,473 2,300,000 500,000 ‐ 1,585 13,098,969 15,125,957 55,127 ‐ ‐ ‐ 2,484,607 24,974,205 ‐ ‐ ‐ ‐ 1,250 1,250 ‐ ‐ ‐ ‐ ‐ 229,733 ‐ ‐ ‐ ‐ ‐ 922,450 ‐ ‐ ‐ ‐ ‐ 528,901 ‐ ‐ ‐ 5,600 13,600 77,600 5,702,072$ 3,508,726$ 3,006,405$ 1,180,348$ 159,401,930$ 390,848,563$ ‐ 6,477 ‐ 72,255 3,803,450 12,664,573 ‐ ‐ ‐ 58,867 239,103 3,153,816 ‐ ‐ ‐ ‐ 1,230,207 18,425,078 ‐ ‐ ‐ ‐ ‐ 5,481,949 ‐ ‐ ‐ ‐ ‐ 7,528 ‐ ‐ ‐ ‐ ‐ 62,835 ‐ ‐ ‐ ‐ 566,616 1,959,778 3,080,280 ‐ ‐ ‐ 3,080,280 4,052,080 3,080,280 6,477 ‐ 131,122 8,919,656 45,807,637 191,627 69,761 ‐ ‐ 4,984,025 5,088,004 ‐ ‐ ‐ 5,600 13,600 3,111,751 2,430,165 3,432,488 ‐ 65,079 117,216,436 280,832,421 ‐ ‐ ‐ ‐ ‐ 25,662,659 ‐ ‐ 3,006,405 978,547 28,268,213 30,800,319 ‐ ‐ ‐ ‐ ‐ (454,228) 2,430,165 3,432,488 3,006,405 1,049,226 145,498,249 339,952,922 5,702,072$ 3,508,726$ 3,006,405$ 1,180,348$ 159,401,930$ 390,848,563$ Capital Projects Funds 99 Water Management Road Unincorporated Community and Pollution Districts Area MSTD Development Control Revenues: Taxes ‐$ 32,673,287$ ‐$ 1,829,677$ Licenses, permits and impact fees 550,175 247,549 24,152,882 800 Intergovernmental 1,650,210 13,201 607 ‐ Charges for services 299,441 3,190,972 2,994,896 354,247 Fines and forfeitures ‐ 376,800 ‐ ‐ Interest income 35,190 162,496 321,348 39,397 Special assessments ‐ ‐ ‐ 2,693,303 Miscellaneous 80,406 201,101 206 3,625 Total revenues 2,615,422 36,865,406 27,469,939 4,921,049 Expenditures: Current: General government ‐ 5,658,865 5,286,286 ‐ Public safety ‐ 4,148,913 11,734,370 ‐ Physical environment ‐ 653,565 852,254 2,864,995 Transportation 15,517,947 7,170,994 ‐ 1,930,047 Economic environment ‐ 98,789 ‐ ‐ Human services ‐ ‐ ‐ ‐ Culture and recreation ‐ 11,079,962 ‐ ‐ Debt service: Principal ‐ ‐ ‐ ‐ Interest ‐ ‐ ‐ ‐ Fiscal charges ‐ ‐ ‐ ‐ Capital outlay 1,957,278 436,928 631,916 129,957 Total expenditures 17,475,225 29,248,016 18,504,826 4,924,999 Excess (deficiency) of revenues over (under) expenditures (14,859,803) 7,617,390 8,965,113 (3,950) Other financing sources (uses): Sale of capital assets ‐ ‐ 12,054 4,344 Insurance proceeds 240,016 30,019 ‐ 48 Transfers in 16,213,600 1,066,714 827,800 41,783 Transfers out (1,205,500) (7,650,943) (223,573) (270,320) Total other financing sources (uses)15,248,116 (6,554,210) 616,281 (224,145) Net change in fund balances 388,313 1,063,180 9,581,394 (228,095) Fund balances (deficits) at beginning of year 3,277,772 7,696,273 24,215,922 2,372,241 Fund balances (deficits) at end of year 3,666,085$ 8,759,453$ 33,797,316$ 2,144,146$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Special Revenue Funds 100 Grants and Fire 911 Shared Improvement Control Lighting Enhancement Tourist Revenues Districts Districts Districts Fee Development ‐$ 3,452,115$ 2,623,789$ 1,265,060$ ‐$ 21,188,191$ ‐ ‐ ‐ ‐ ‐ ‐ 27,313,721 ‐ 3,254 ‐ 1,721,811 2,529,126 1,801 220,372 8,708 ‐ ‐ 14,615 ‐ ‐ ‐ ‐ ‐ ‐ 37,362 164,328 10,236 14,521 44,633 511,028 ‐ ‐ ‐ ‐ ‐ ‐ 612,512 308,613 6,377 10,177 ‐ 7,971,614 27,965,396 4,145,428 2,652,364 1,289,758 1,766,444 32,214,574 1,745,803 ‐ ‐ ‐ ‐ ‐ 2,061,661 ‐ 3,113,849 ‐ 1,670,846 ‐ 564,033 3,157,059 ‐ ‐ ‐ 4,198,681 181,078 988,349 ‐ 925,395 ‐ ‐ 6,392,618 ‐ ‐ ‐ ‐ ‐ 2,962,443 ‐ ‐ ‐ ‐ ‐ 556,769 814,107 ‐ ‐ ‐ 9,817,517 ‐ ‐ 54,588 ‐ ‐ ‐ ‐ ‐ 10,345 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,342,828 1,302,801 64,994 ‐ 1,018,209 499,507 34,807,233 6,262,316 3,243,776 925,395 2,689,055 14,515,705 (6,841,837) (2,116,888) (591,412) 364,363 (922,611) 17,698,869 ‐ ‐ 7,896 ‐ ‐ ‐ ‐ 3,883 1,259 ‐ ‐ ‐ 6,309,867 425,698 551,513 10,599 ‐ 305,236 (3,202) (692,558) (82,151) (78,419) ‐ (875,764) 6,306,665 (262,977) 478,517 (67,820) ‐ (570,528) (535,172) (2,379,865) (112,895) 296,543 (922,611) 17,128,341 4,044,220 14,895,885 (341,333) 817,327 4,228,178 42,514,747 3,509,048$ 12,516,020$ (454,228)$ 1,113,870$ 3,305,567$ 59,643,088$ Special Revenue Funds 101 State Housing Initiative 800 MHZ State Court Confiscated Partnership ICRP Fund Administration Property Revenues: Taxes ‐$ ‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐ ‐ ‐ Intergovernmental 525,997 ‐ ‐ ‐ Charges for services ‐ 402,401 175,280 ‐ Fines and forfeitures ‐ ‐ 952,852 68,048 Interest income 26,251 1,645 3,362 4,070 Special assessments ‐ ‐ ‐ ‐ Miscellaneous 360,248 134,982 5,798 ‐ Total revenues 912,496 539,028 1,137,292 72,118 Expenditures: Current: General government ‐ ‐ 866,444 ‐ Public safety ‐ 1,193,755 1,486,259 67,500 Physical environment ‐ ‐ ‐ ‐ Transportation ‐ ‐ ‐ ‐ Economic environment 648,000 ‐ ‐ ‐ Human services ‐ ‐ ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ Debt service: Principal ‐ ‐ ‐ ‐ Interest ‐ ‐ ‐ ‐ Fiscal charges ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ Total expenditures 648,000 1,193,755 2,352,703 67,500 Excess (deficiency) of revenues over (under) expenditures 264,496 (654,727) (1,215,411) 4,618 Other financing sources (uses): Sale of capital assets ‐ ‐ ‐ ‐ Insurance proceeds ‐ ‐ ‐ ‐ Transfers in ‐ 632,900 1,269,237 ‐ Transfers out (63,143) ‐ (24,537) (63,725) Total other financing sources (uses)(63,143) 632,900 1,244,700 (63,725) Net change in fund balances 201,353 (21,827) 29,289 (59,107) Fund balances (deficits) at beginning of year 2,782,250 61,782 138,528 388,489 Fund balances (deficits) at end of year 2,983,603$ 39,955$ 167,817$ 329,382$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Special Revenue Funds 102 GAC Land Court Sales, Roads Utility Conservation Information Court University and Canals Fee Collier Technology Services Extension ‐$ 338,688$ 12,555$ ‐$ ‐$ ‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 361,895 ‐ ‐ 100,000 432 850,946 6,484,209 32,301 ‐ ‐ ‐ ‐ ‐ ‐ 11,287 12,148 357,594 11,279 10,644 1,255 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 89,056 ‐ ‐ ‐ 11,287 450,836 459,637 862,225 6,856,748 33,556 ‐ ‐ ‐ 699,603 6,856,748 ‐ ‐ ‐ ‐ 32,248 ‐ ‐ ‐ 397,866 769,891 ‐ ‐ 25,638 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12,976 ‐ ‐ 187,769 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 296,561 32,279 ‐ ‐ 187,769 397,866 1,066,452 777,106 6,856,748 25,638 (176,482) 52,970 (606,815) 85,119 ‐ 7,918 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 50,000 91,229 ‐ ‐ ‐ (176) ‐ (917) ‐ ‐ ‐ (176) 50,000 90,312 ‐ ‐ ‐ (176,658) 102,970 (516,503) 85,119 ‐ 7,918 1,329,143 1,213,494 34,178,553 939,279 ‐ 112,901 1,152,485$ 1,316,464$ 33,662,050$ 1,024,398$ ‐$ 120,819$ Special Revenue Funds 103 Other Other Court Court Special Public Safety Facilities Affordable Revenue Revenue Fee Housing Funds Funds Revenues: Taxes ‐$ ‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ Charges for services ‐ ‐ 1,463,188 936,072 Fines and forfeitures 891,401 ‐ ‐ 57,067 Interest income 68,225 1,813 7,650 25,997 Special assessments ‐ ‐ ‐ ‐ Miscellaneous ‐ ‐ ‐ 157,615 Total revenues 959,626 1,813 1,470,838 1,176,751 Expenditures: Current: General government 167,270 ‐ 1,298,620 ‐ Public safety ‐ ‐ ‐ 999,708 Physical environment ‐ ‐ ‐ ‐ Transportation ‐ ‐ ‐ ‐ Economic environment ‐ ‐ ‐ ‐ Human services ‐ ‐ ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ Debt service: Principal ‐ ‐ ‐ ‐ Interest ‐ ‐ ‐ ‐ Fiscal charges ‐ ‐ ‐ ‐ Capital outlay 64,233 ‐ ‐ 110,115 Total expenditures 231,503 ‐ 1,298,620 1,109,823 Excess (deficiency) of revenues over (under) expenditures 728,123 1,813 172,218 66,928 Other financing sources (uses): Sale of capital assets ‐ ‐ ‐ ‐ Insurance proceeds ‐ ‐ ‐ ‐ Transfers in ‐ ‐ ‐ ‐ Transfers out ‐ ‐ ‐ (79,298) Total other financing sources (uses)‐ ‐ ‐ (79,298) Net change in fund balances 728,123 1,813 172,218 (12,370) Fund balances (deficits) at beginning of year 6,080,639 153,581 4,737,583 3,704,616 Fund balances (deficits) at end of year 6,808,762$ 155,394$ 4,909,801$ 3,692,246$ See accompanying independent auditor's report Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 104 Permanent Fund Other Total Conservation Special Special Resource Radio Road East Collier Revenue Revenue Recovery Park Limited General Limited General Funds Funds Endowment Obligation Bonds Obligation Bonds ‐$ 63,383,362$ ‐$ 90,433$ 10,907$ 7,739 24,959,145 ‐ ‐ ‐ ‐ 34,119,822 ‐ ‐ ‐ 315,933 17,845,814 ‐ ‐ ‐ 86,198 2,432,366 ‐ ‐ ‐ 25,466 1,909,225 18,239 1,275 841 ‐ 2,693,303 ‐ ‐ ‐ 1,007,642 10,949,972 ‐ ‐ ‐ 1,442,978 158,293,009 18,239 91,708 11,748 176,838 22,756,477 ‐ 13 36 173,400 26,682,509 ‐ ‐ ‐ ‐ 13,483,982 51,433 ‐ ‐ ‐ 26,713,810 ‐ ‐ ‐ ‐ 7,139,407 ‐ ‐ ‐ 173,170 3,148,589 ‐ ‐ ‐ 55,198 22,511,322 ‐ ‐ ‐ ‐ 54,588 ‐ 50,662 ‐ ‐ 10,345 ‐ 14,417 ‐ ‐ ‐ ‐ 2,570 ‐ 88,126 26,975,732 ‐ ‐ ‐ 666,732 149,476,761 51,433 67,662 36 776,246 8,816,248 (33,194) 24,046 11,712 ‐ 24,294 ‐ ‐ ‐ ‐ 275,225 ‐ ‐ ‐ 667,437 28,463,613 ‐ 816 ‐ (3,137) (11,317,363) ‐ (2,652) (91,025) 664,300 17,445,769 ‐ (1,836) (91,025) 1,440,546 26,262,017 (33,194) 22,210 (79,313) 1,564,143 161,106,213 1,749,242 88,438 144,866 3,004,689$ 187,368,230$ 1,716,048$ 110,648$ 65,553$ Special Revenue Funds Debt Service Funds 105 Community Forest Lakes Special Redevelopment Limited General Obligation Other Taxable Note Obligation Bonds Revenue Bonds Debt Service Revenues: Taxes ‐$ 392,471$ ‐$ 950$ Licenses, permits and impact fees ‐ ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ Charges for services ‐ ‐ ‐ ‐ Fines and forfeitures ‐ ‐ ‐ ‐ Interest income 3,446 10,047 90,226 21,292 Special assessments ‐ ‐ ‐ ‐ Miscellaneous 125,000 ‐ ‐ ‐ Total revenues 128,446 402,518 90,226 22,242 Expenditures: Current: General government ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ Physical environment ‐ ‐ ‐ ‐ Transportation ‐ ‐ ‐ ‐ Economic environment ‐ ‐ ‐ ‐ Human services ‐ ‐ ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ Debt service: Principal 628,856 410,000 8,885,000 9,440,000 Interest 250,631 147,475 9,425,569 3,697,146 Fiscal charges 25 2,941 10,278 5,523 Capital outlay ‐ ‐ ‐ ‐ Total expenditures 879,512 560,416 18,320,847 13,142,669 Excess (deficiency) of revenues over (under) expenditures (751,066) (157,898) (18,230,621) (13,120,427) Other financing sources (uses): Sale of capital assets ‐ ‐ ‐ ‐ Insurance proceeds ‐ ‐ ‐ ‐ Transfers in 905,700 118,211 18,074,421 13,141,600 Transfers out ‐ (12,658) ‐ (4,371) Total other financing sources (uses)905,700 105,553 18,074,421 13,137,229 Net change in fund balances 154,634 (52,345) (156,200) 16,802 Fund balances (deficits) at beginning of year 673,666 945,720 3,543,836 68,081 Fund balances (deficits) at end of year 828,300$ 893,375$ 3,387,636$ 84,883$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Debt Service Funds 106 Debt Service Funds Emergency Total County‐Wide County‐Wide Correctional Medical Debt Service Capital Parks Library Facilities Services Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 494,761$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐ ‐ 635,835 869,236 1,471,250 344,533 ‐ 12,389 ‐ ‐ ‐ ‐ ‐ ‐ 60,640 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 127,127 90,972 11,900 10,284 15,548 18,371 ‐ ‐ ‐ ‐ ‐ ‐ 125,000 ‐ 273,400 ‐ ‐ ‐ 746,888 103,361 981,775 879,520 1,486,798 362,904 49 1,455,798 ‐ ‐ ‐ ‐ ‐ 233,253 ‐ ‐ 5,568 5,323 ‐ 21,434 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 244 569,206 10,933 ‐ ‐ 19,414,518 ‐ ‐ ‐ ‐ ‐ 13,535,238 ‐ ‐ ‐ ‐ ‐ 21,337 ‐ ‐ ‐ ‐ ‐ ‐ 3,555,885 594,639 94,023 ‐ 294,626 32,971,142 5,266,614 1,163,845 104,956 5,568 299,949 (32,224,254) (5,163,253) (182,070) 774,564 1,481,230 62,955 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 32,639 ‐ ‐ ‐ 32,240,748 18,908,900 1,050,338 11,108,925 7,523,200 5,015,700 (110,706) (62,866,036) (333,451) (1,161,000) (1,887,100) (447,700) 32,130,042 (43,957,136) 749,526 9,947,925 5,636,100 4,568,000 (94,212) (49,120,389) 567,456 10,722,489 7,117,330 4,630,955 5,464,607 58,701,530 870,065 (9,679,146) (5,286,737) (2,778,732) 5,370,395$ 9,581,141$ 1,437,521$ 1,043,343$ 1,830,593$ 1,852,223$ Capital Projects Funds 107 Parks Road Water Impact Impact Road Management Districts Districts Construction Revenues: Taxes ‐$ ‐$ ‐$ 13,616,925$ Licenses, permits and impact fees ‐ 8,098,940 11,014,501 ‐ Intergovernmental ‐ ‐ 94,641 7,449,150 Charges for services ‐ ‐ ‐ 105,050 Fines and forfeitures ‐ ‐ ‐ ‐ Interest income 151,262 168,082 544,123 314,340 Special assessments 323,445 ‐ ‐ ‐ Miscellaneous 82,631 ‐ 27 723,166 Total revenues 557,338 8,267,022 11,653,292 22,208,631 Expenditures: Current: General government ‐ ‐ ‐ ‐ Public safety ‐ ‐ ‐ ‐ Physical environment 614,358 ‐ ‐ ‐ Transportation ‐ ‐ 173,975 9,853,698 Economic environment ‐ ‐ ‐ ‐ Human services ‐ ‐ ‐ ‐ Culture and recreation ‐ 126,907 ‐ ‐ Debt service: Principal ‐ ‐ ‐ ‐ Interest ‐ ‐ ‐ ‐ Fiscal charges ‐ ‐ ‐ ‐ Capital outlay 2,046,569 3,107,680 4,610,504 4,787,005 Total expenditures 2,660,927 3,234,587 4,784,479 14,640,703 Excess (deficiency) of revenues over (under) expenditures (2,103,589) 5,032,435 6,868,813 7,567,928 Other financing sources (uses): Sale of capital assets ‐ ‐ ‐ ‐ Insurance proceeds ‐ ‐ ‐ 4,238 Transfers in 5,757,836 ‐ ‐ 16,415,276 Transfers out (4,232,066) (3,318,320) ‐ (20,139,251) Total other financing sources (uses)1,525,770 (3,318,320) ‐ (3,719,737) Net change in fund balances (577,819) 1,714,115 6,868,813 3,848,191 Fund balances (deficits) at beginning of year 13,842,418 16,108,986 46,343,572 31,686,868 Fund balances (deficits) at end of year 13,264,599$ 17,823,101$ 53,212,385$ 35,535,059$ See accompanying independent auditor's report Capital Projects Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 108 Total Total Government Law All Terrain Other Capital Nonmajor Facilities Enforcement Vehicle Capital Projects Governmental Impact Fees Impact Fees Park Projects Funds Funds ‐$ ‐$ ‐$ ‐$ 13,616,925$ 77,495,048$ 2,349,191 1,260,634 ‐ 5,186 26,049,306 51,008,451 ‐ ‐ ‐ ‐ 7,556,180 41,676,002 ‐ ‐ ‐ ‐ 165,690 18,011,504 ‐ ‐ ‐ ‐ ‐ 2,432,366 50,543 36,499 31,254 10,445 1,453,623 3,508,214 ‐ ‐ ‐ 115,116 438,561 3,131,864 ‐ ‐ ‐ 118 1,079,342 12,154,314 2,399,734 1,297,133 31,254 130,865 50,359,627 209,417,763 6,427 ‐ ‐ ‐ 1,462,225 24,218,751 ‐ 4,030 ‐ ‐ 248,174 26,930,683 ‐ ‐ ‐ 1,267,026 1,902,818 15,438,233 ‐ ‐ ‐ ‐ 10,027,673 36,741,483 ‐ ‐ ‐ ‐ ‐ 7,139,407 ‐ ‐ ‐ ‐ ‐ 3,148,589 ‐ ‐ 861 59,521 767,672 23,278,994 ‐ ‐ ‐ ‐ ‐ 19,469,106 9,125 ‐ ‐ ‐ 9,125 13,554,708 ‐ ‐ ‐ ‐ ‐ 21,337 3,536,636 220,732 ‐ 216,370 23,064,669 50,040,401 3,552,188 224,762 861 1,542,917 37,482,356 219,981,692 (1,152,454) 1,072,371 30,393 (1,412,052) 12,877,271 (10,563,929) ‐ ‐ ‐ ‐ ‐ 24,294 ‐ ‐ ‐ ‐ 36,877 312,102 33,299,100 23,682,000 ‐ 1,703,087 124,464,362 185,168,723 (4,382,700) (2,656,600) ‐ (3,948) (101,428,172) (112,856,241) 28,916,400 21,025,400 ‐ 1,699,139 23,073,067 72,648,878 27,763,946 22,097,771 30,393 287,087 35,950,338 62,084,949 (25,333,781) (18,665,283) 2,976,012 762,139 109,547,911 277,867,973 2,430,165$ 3,432,488$ 3,006,405$ 1,049,226$ 145,498,249$ 339,952,922$ Capital Projects Funds 109 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$33,001,100$ 32,673,287$ (327,813)$ Licenses, permits and impact fees 345,000 550,175 205,175 196,000 247,549 51,549 Intergovernmental 1,561,100 1,650,210 89,110 ‐13,201 13,201 Charges for services 228,000 299,441 71,441 3,433,700 3,190,972 (242,728) Fines and forfeitures ‐ ‐‐407,000 376,800 (30,200) Interest income 3,000 29,272 26,272 50,000 135,736 85,736 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous 35,400 80,406 45,006 193,500 201,101 7,601 Total revenues 2,172,500 2,609,504 437,004 37,281,300 36,838,646 (442,654) Expenditures: Current: General government ‐ ‐‐6,541,450 5,657,745 883,705 Public safety ‐ ‐‐4,248,800 4,148,913 99,887 Physical environment ‐ ‐‐816,300 653,565 162,735 Transportation 16,217,551 14,994,231 1,223,320 8,160,470 7,170,994 989,476 Economic environment ‐ ‐‐113,200 98,789 14,411 Human services ‐ ‐‐‐‐ ‐ Culture and recreation ‐ ‐‐12,052,351 11,079,962 972,389 Debt service ‐ ‐‐‐‐ ‐ Capital outlay 2,249,443 1,957,278 292,165 478,301 436,928 41,373 Total expenditures 18,466,994 16,951,509 1,515,485 32,410,872 29,246,896 3,163,976 Excess (deficit) of revenues over (under) expenditures (16,294,494) (14,342,005) 1,952,489 4,870,428 7,591,750 2,721,322 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds 105,000 240,016 135,016 30,000 30,019 19 Transfers in 16,213,600 16,213,600 ‐997,400 1,066,714 69,314 Transfers out (1,205,500) (1,205,500) ‐(8,273,063) (8,179,844) 93,219 Total other financing sources (uses) 15,113,100 15,248,116 135,016 (7,245,663) (7,083,111) 162,552 Net change in fund balances (1,181,394) 906,111 2,087,505 (2,375,235) 508,639 2,883,874 Fund balances at beginning of year 1,494,394 1,494,394 ‐5,762,834 5,762,834 ‐ Fund balances (deficits) at end of year 313,000$ 2,400,505$ 2,087,505$ 3,387,599$ 6,271,473$ 2,883,874$ See accompanying independent auditor's report Reconciliation: 906,111$ 508,639$ 5,918 26,760 ‐(1,120) (523,716)‐ ‐‐ ‐528,901 ‐‐ ‐‐ 388,313$ 1,063,180$ Ad valorem refunds not budgeted Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis Net change in fund balance, budgetary basis COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 (Budgetary Basis) Road Districts Unincorporated Area MSTD Change in inventory held for resale Advances reclassified to transfers Change in inventory Change in fair value of investments (Budgetary Basis) 110 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ 1,893,100$ 1,829,677$ (63,423)$ 14,990,200 24,152,882 9,162,682 600 800 200 ‐ 607 607 ‐ ‐ ‐ 2,567,200 2,994,896 427,696 383,000 354,247 (28,753) ‐ ‐ ‐ ‐ ‐ ‐ 86,700 264,516 177,816 9,000 33,482 24,482 ‐ ‐ ‐ 2,794,400 2,693,303 (101,097) 500 206 (294) ‐ 3,625 3,625 17,644,600 27,413,107 9,768,507 5,080,100 4,915,134 (164,966) 6,825,348 5,286,286 1,539,062 ‐ ‐ ‐ 15,191,582 11,734,370 3,457,212 ‐ ‐ ‐ 1,044,700 852,254 192,446 3,294,373 2,882,500 411,873 ‐ ‐ ‐ 1,965,600 1,930,047 35,553 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 722,047 631,916 90,131 351,409 129,957 221,452 23,783,677 18,504,826 5,278,851 5,611,382 4,942,504 668,878 (6,139,077) 8,908,281 15,047,358 (531,282) (27,370) 503,912 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12,054 12,054 ‐ 4,344 4,344 ‐ ‐ ‐ ‐ 48 48 827,800 827,800 ‐ ‐ 41,783 41,783 (223,573) (223,573) ‐ (308,100) (270,320) 37,780 604,227 616,281 12,054 (308,100) (224,145) 83,955 (5,534,850) 9,524,562 15,059,412 (839,382) (251,515) 587,867 18,790,750 18,790,750 ‐ 2,154,011 2,154,011 ‐ 13,255,900$ 28,315,312$ 15,059,412$ 1,314,629$ 1,902,496$ 587,867$ 9,524,562$ (251,515)$ 56,832 5,915 ‐ (54) ‐ 17,559 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9,581,394$ (228,095)$ (Budgetary Basis) Community Development Water Management and Pollution Control (Budgetary Basis) 111 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$3,570,500$ 3,452,115$ (118,385)$ Licenses, permits and impact fees ‐ ‐‐‐‐ ‐ Intergovernmental 62,979,613 26,362,104 (36,617,509) ‐‐ ‐ Charges for services 294,265 1,801 (292,464) 227,900 220,372 (7,528) Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 2,057 30,248 28,191 25,500 136,000 110,500 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous 658,066 612,512 (45,554) 312,100 308,613 (3,487) Total revenues 63,934,001 27,006,665 (36,927,336) 4,136,000 4,117,100 (18,900) Expenditures: Current: General government 3,150,863 1,684,929 1,465,934 ‐‐ ‐ Public safety 3,941,607 1,374,767 2,566,840 ‐‐ ‐ Physical environment 581,390 564,033 17,357 6,598,759 3,157,059 3,441,700 Transportation 2,061,166 181,078 1,880,088 2,594,754 988,318 1,606,436 Economic environment 17,888,239 6,261,948 11,626,291 ‐‐ ‐ Human services 5,257,801 2,962,443 2,295,358 ‐‐ ‐ Culture and recreation 810,541 556,769 253,772 923,146 814,067 109,079 Debt service ‐ ‐‐‐‐ ‐ Capital outlay 47,785,162 20,335,991 27,449,171 9,179,224 1,302,801 7,876,423 Total expenditures 81,476,769 33,921,958 47,554,811 19,295,883 6,262,245 13,033,638 Excess (deficit) of revenues over (under) expenditures (17,542,768) (6,915,293) 10,627,475 (15,159,883) (2,145,145) 13,014,738 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐3,883 3,883 Transfers in 13,745,524 6,303,059 (7,442,465) 653,200 425,698 (227,502) Transfers out (292,819) (3,202) 289,617 (716,554) (692,558) 23,996 Total other financing sources (uses) 13,452,705 6,299,857 (7,152,848) (63,354) (262,977) (199,623) Net change in fund balances (4,090,063) (615,436) 3,474,627 (15,223,237) (2,408,122) 12,815,115 Fund balances at beginning of year 4,407,659 4,407,659 ‐16,085,137 16,085,137 ‐ Fund balances (deficits) at end of year 317,596$ 3,792,223$ 3,474,627$ 861,900$ 13,677,015$ 12,815,115$ See accompanying independent auditor's report Reconciliation: (615,436)$ (2,408,122)$ 6,478 28,328 ‐(71) ‐‐ (130,670)‐ ‐‐ ‐‐ 204,456 ‐ (535,172)$ (2,379,865)$ Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) Improvement Districts MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS COLLIER COUNTY, FLORIDA (Budgetary Basis) Change in inventory held for resale Advances reclassified to transfers Change in inventory Grants and Shared Revenues (Budgetary Basis) 112 Budget Actual Variance Budget Actual Variance 2,710,900$ 2,623,789$ (87,111)$ 1,301,100$ 1,265,060$ (36,040)$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,254 3,254 ‐ ‐ ‐ 4,000 8,708 4,708 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,300 8,547 6,247 2,500 12,081 9,581 ‐ ‐ ‐ ‐ ‐ ‐ 5,075 6,377 1,302 ‐ 10,177 10,177 2,722,275 2,650,675 (71,600) 1,303,600 1,287,318 (16,282) ‐ ‐ ‐ ‐ ‐ ‐ 3,279,837 3,113,548 166,289 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,026,689 925,384 101,305 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 70,000 64,933 5,067 ‐ ‐ ‐ 66,313 64,994 1,319 10,911 ‐ 10,911 3,416,150 3,243,475 172,675 1,037,600 925,384 112,216 (693,875) (592,800) 101,075 266,000 361,934 95,934 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,166 7,896 2,730 ‐ ‐ ‐ 1,259 1,259 ‐ ‐ ‐ ‐ 543,465 551,513 8,048 ‐ 10,599 10,599 (91,515) (82,151) 9,364 (97,100) (78,419) 18,681 458,375 478,517 20,142 (97,100) (67,820) 29,280 (235,500) (114,283) 121,217 168,900 294,114 125,214 357,600 357,600 ‐ 804,700 804,700 ‐ 122,100$ 243,317$ 121,217$ 973,600$ 1,098,814$ 125,214$ (114,283)$ 294,114$ 1,689 2,440 (301) (11) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (112,895)$ 296,543$ Lighting Districts (Budgetary Basis)Fire Control Districts (Budgetary Basis) 113 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$17,048,600$ 21,188,191$ 4,139,591$ Licenses, permits and impact fees ‐ ‐‐‐‐ ‐ Intergovernmental 1,825,500 1,721,811 (103,689) ‐2,529,126 2,529,126 Charges for services ‐ ‐‐‐14,615 14,615 Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 16,600 36,819 20,219 158,700 422,071 263,371 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous ‐ ‐‐165,000 7,971,614 7,806,614 Total revenues 1,842,100 1,758,630 (83,470) 17,372,300 32,125,617 14,753,317 Expenditures: Current: General government ‐ ‐‐‐‐ ‐ Public safety 2,140,437 1,670,846 469,591 ‐‐ ‐ Physical environment ‐ ‐‐4,255,849 4,198,681 57,168 Transportation ‐ ‐‐‐‐ ‐ Economic environment ‐ ‐‐‐‐ ‐ Human services ‐ ‐‐‐‐ ‐ Culture and recreation ‐ ‐‐13,275,338 9,817,517 3,457,821 Debt service ‐ ‐‐‐‐ ‐ Capital outlay 1,086,000 1,018,209 67,791 9,301,170 499,507 8,801,663 Total expenditures 3,226,437 2,689,055 537,382 26,832,357 14,515,705 12,316,652 Excess (deficit) of revenues over (under) expenditures (1,384,337) (930,425) 453,912 (9,460,057) 17,609,912 27,069,969 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐‐ ‐ Transfers in ‐ ‐‐200,000 305,236 105,236 Transfers out ‐ ‐‐(888,500) (875,764) 12,736 Total other financing sources (uses)‐ ‐‐(688,500) (570,528) 117,972 Net change in fund balances (1,384,337) (930,425) 453,912 (10,148,557) 17,039,384 27,187,941 Fund balances at beginning of year 4,107,637 4,107,637 ‐41,936,388 41,936,388 ‐ Fund balances (deficits) at end of year 2,723,300$ 3,177,212$ 453,912$ 31,787,831$ 58,975,772$ 27,187,941$ See accompanying independent auditor's report Reconciliation: (930,425)$ 17,039,384$ 7,814 88,957 ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ (922,611)$ 17,128,341$ Unbudgeted funds COLLIER COUNTY, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Net change in fund balance, GAAP basis Change in inventory held for resale (Budgetary Basis)911 Enhancement Fee (Budgetary Basis) Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Advances budgeted as transfers MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS BUDGET AND ACTUAL (BUDGETARY BASIS) COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Tourist Development Advances reclassified to transfers Change in inventory 114 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐ ‐ ‐ ‐ ‐ ‐ 4,630,224 525,997 (4,104,227) ‐ ‐ ‐ ‐ ‐ ‐ 436,600 402,401 (34,199) ‐ ‐ ‐ ‐ ‐ ‐ 31,759 21,737 (10,022) 500 1,390 890 ‐ ‐ ‐ ‐ ‐ ‐ 429,191 360,248 (68,943) 128,600 134,982 6,382 5,091,174 907,982 (4,183,192) 565,700 538,773 (26,927) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,230,700 1,193,755 36,945 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,091,563 608,000 4,483,563 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,091,563 608,000 4,483,563 1,230,700 1,193,755 36,945 (389) 299,982 300,371 (665,000) (654,982) 10,018 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 632,900 632,900 ‐ ‐ (63,143) (63,143) ‐ ‐ ‐ ‐ (63,143) (63,143) 632,900 632,900 ‐ (389) 236,839 237,228 (32,100) (22,082) 10,018 706 706 ‐ ‐ ‐ ‐ 317$ 237,545$ 237,228$ (32,100)$ (22,082)$ 10,018$ 236,839$ (22,082)$ 4,514 255 ‐ ‐ ‐ ‐ (40,000) ‐ ‐ ‐ ‐ ‐ ‐ ‐ 201,353$ (21,827)$ Partnership (Budgetary Basis)(Budgetary Basis) 800 MHZ IRCP FundState Housing Initiativeship 115 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐ ‐ ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ ‐ ‐ Charges for services 160,000 175,280 15,280 ‐ ‐ ‐ Fines and forfeitures 974,000 952,852 (21,148) ‐ 68,048 68,048 Interest income 500 2,763 2,263 ‐ 3,357 3,357 Special assessments ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous ‐ 5,798 5,798 ‐ ‐ ‐ Total revenues 1,134,500 1,136,693 2,193 ‐ 71,405 71,405 Expenditures: Current: General government 892,800 866,444 26,356 ‐ ‐ ‐ Public safety 1,586,500 1,486,259 100,241 95,247 67,500 27,747 Physical environment ‐ ‐ ‐ ‐ ‐ ‐ Transportation ‐ ‐ ‐ ‐ ‐ ‐ Economic environment ‐ ‐ ‐ ‐ ‐ ‐ Human services ‐ ‐ ‐ ‐ ‐ ‐ Culture and recreation ‐ ‐ ‐ ‐ ‐ ‐ Debt service ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay 3,000 ‐ 3,000 ‐ ‐ ‐ Total expenditures 2,482,300 2,352,703 129,597 95,247 67,500 27,747 Excess (deficit) of revenues over (under) expenditures (1,347,800) (1,216,010) 131,790 (95,247) 3,905 99,152 Other financing sources (uses): Bonds issued ‐ ‐ ‐ ‐ ‐ ‐ Premiums on bonds issued ‐ ‐ ‐ ‐ ‐ ‐ Payment to refunding bond escrow ‐ ‐ ‐ ‐ ‐ ‐ Sale of capital assets ‐ ‐ ‐ ‐ ‐ ‐ Insurance proceeds ‐ ‐ ‐ ‐ ‐ ‐ Transfers in 1,266,100 1,269,237 3,137 ‐ ‐ ‐ Transfers out (20,600) (24,537) (3,937) (270,573) (63,725) 206,848 Total other financing sources (uses) 1,245,500 1,244,700 (800) (270,573) (63,725) 206,848 Net change in fund balances (102,300) 28,690 130,990 (365,820) (59,820) 306,000 Fund balances at beginning of year 137,000 137,000 ‐ 383,700 383,700 ‐ Fund balances (deficits) at end of year 34,700$ 165,690$ 130,990$ 17,880$ 323,880$ 306,000$ See accompanying independent auditor's report Reconciliation: 28,690$ (59,820)$ 599 713 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 29,289$ (59,107)$ COLLIER COUNTY, FLORIDA Ad valorem refunds not budgeted COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS Confiscated Property (Budgetary Basis) Net change in fund balance, GAAP basis (Budgetary Basis) Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory held for resale Advances budgeted as transfers Unbudgeted funds State Court Administration FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Advances reclassified to transfers Change in inventory 116 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ 170,000$ 338,688$ 168,688$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 100,000 100,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,700 9,312 5,612 1,500 10,020 8,520 ‐ ‐ ‐ ‐ ‐ ‐ 16,500 ‐ (16,500) ‐ ‐ ‐ 20,200 9,312 (10,888) 271,500 448,708 177,208 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 443,535 397,866 45,669 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 274,700 187,769 86,931 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 274,700 187,769 86,931 443,535 397,866 45,669 (254,500) (178,457) 76,043 (172,035) 50,842 222,877 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 50,000 50,000 ‐ (400) (176) 224 ‐ ‐ ‐ (400) (176) 224 50,000 50,000 ‐ (254,900) (178,633) 76,267 (122,035) 100,842 222,877 891,300 891,300 ‐ ‐ ‐ ‐ 636,400$ 712,667$ 76,267$ (122,035)$ 100,842$ 222,877$ (178,633)$ 100,842$ 1,975 2,128 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (176,658)$ 102,970$ Utility FeeGAC Land Sales, (Budgetary Basis)Roads and Canals (Budgetary Basis) 117 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ 12,555$12,555$ ‐$‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐‐ ‐ Intergovernmental ‐ ‐‐‐‐ ‐ Charges for services 9,000 432 (8,568) 750,000 850,946 100,946 Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 148,800 294,943 146,143 3,100 9,322 6,222 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous 27,200 89,056 61,856 ‐‐ ‐ Total revenues 185,000 396,986 211,986 753,100 860,268 107,168 Expenditures: Current: General government ‐ ‐‐775,380 699,603 75,777 Public safety ‐ ‐‐38,300 32,248 6,052 Physical environment 964,108 769,821 194,287 ‐‐ ‐ Transportation ‐ ‐‐‐‐ ‐ Economic environment ‐ ‐‐‐‐ ‐ Human services ‐ ‐‐21,700 12,976 8,724 Culture and recreation ‐ ‐‐‐‐ ‐ Debt service ‐ ‐‐‐‐ ‐ Capital outlay 779,169 296,561 482,608 79,520 32,279 47,241 Total expenditures 1,743,277 1,066,382 676,895 914,900 777,106 137,794 Excess (deficit) of revenues over (under) expenditures (1,558,277) (669,396) 888,881 (161,800) 83,162 244,962 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐‐ ‐ Transfers in 793,100 91,229 (701,871) ‐‐ ‐ Transfers out (15,000) (917) 14,083 ‐‐ ‐ Total other financing sources (uses) 778,100 90,312 (687,788) ‐‐ ‐ Net change in fund balances (780,177) (579,084) 201,093 (161,800) 83,162 244,962 Fund balances at beginning of year 32,288,977 32,288,977 ‐855,100 855,100 ‐ Fund balances (deficits) at end of year 31,508,800$ 31,709,893$ 201,093$ 693,300$ 938,262$ 244,962$ See accompanying independent auditor's report Reconciliation: (579,084)$ 83,162$ 62,651 1,957 (70)‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ (516,503)$ 85,119$ COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Advances budgeted as transfers BUDGET AND ACTUAL (BUDGETARY BASIS) COLLIER COUNTY, FLORIDA Change in inventory held for resale (Budgetary Basis) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS Net change in fund balance, GAAP basis (Budgetary Basis) Unbudgeted funds Conservation Collier Advances reclassified to transfers Change in inventory Court Information Technology 118 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐ ‐ ‐ ‐ ‐ ‐ 261,459 361,895 100,436 ‐ ‐ ‐ 6,814,553 6,484,209 (330,344) 14,000 32,301 18,301 ‐ ‐ ‐ ‐ ‐ ‐ 8,500 10,644 2,144 ‐ 1,037 1,037 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7,084,512 6,856,748 (227,764) 14,000 33,338 19,338 7,084,512 6,856,748 227,764 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 50,400 25,638 24,762 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7,084,512 6,856,748 227,764 50,400 25,638 24,762 ‐ ‐ ‐ (36,400) 7,700 44,100 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (36,400) 7,700 44,100 ‐ ‐ ‐ 70,400 70,400 ‐ ‐$ ‐$ ‐$ 34,000$ 78,100$ 44,100$ ‐$ 7,700$ ‐ 218 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐$ 7,918$ Court Services University Extension (Budgetary Basis) 119 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐‐ ‐ Intergovernmental ‐ ‐‐‐‐ ‐ Charges for services ‐ ‐‐‐‐ ‐ Fines and forfeitures 1,090,000 891,401 (198,599) ‐‐ ‐ Interest income 15,000 56,353 41,353 1,000 1,527 527 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous ‐ ‐‐‐‐ ‐ Total revenues 1,105,000 947,754 (157,246) 1,000 1,527 527 Expenditures: Current: General government 616,200 167,270 448,930 ‐‐ ‐ Public safety ‐ ‐‐‐‐ ‐ Physical environment ‐ ‐‐‐‐ ‐ Transportation ‐ ‐‐‐‐ ‐ Economic environment ‐ ‐‐109,000 ‐ 109,000 Human services ‐ ‐‐‐‐ ‐ Culture and recreation ‐ ‐‐‐‐ ‐ Debt service ‐ ‐‐‐‐ ‐ Capital outlay 2,467,349 64,233 2,403,116 ‐‐ ‐ Total expenditures 3,083,549 231,503 2,852,046 109,000 ‐ 109,000 Excess (deficit) of revenues over (under) expenditures (1,978,549) 716,251 2,694,800 (108,000) 1,527 109,527 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐‐ ‐ Transfers in ‐ ‐‐‐‐ ‐ Transfers out ‐ ‐‐‐‐ ‐ Total other financing sources (uses)‐ ‐‐‐‐ ‐ Net change in fund balances (1,978,549) 716,251 2,694,800 (108,000) 1,527 109,527 Fund balances at beginning of year 6,063,383 6,063,383 ‐‐‐ ‐ Fund balances (deficits) at end of year 4,084,834$ 6,779,634$ 2,694,800$ (108,000)$ 1,527$ 109,527$ See accompanying independent auditor's report Reconciliation: 716,251$ 1,527$ 11,872 286 ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ 728,123$ 1,813$ Net change in fund balance, budgetary basis COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Affordable Housing (Budgetary Basis) BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA Change in fair value of investments Court Facilities Fee Advances reclassified to transfers Change in inventory (Budgetary Basis) Ad valorem refunds not budgeted Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis Change in inventory held for resale 120 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,365,000 1,463,188 98,188 90,000 97,950 7,950 ‐ ‐ ‐ 60,000 57,067 (2,933) 8,300 7,650 (650) 8,700 16,935 8,235 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,373,300 1,470,838 97,538 158,700 171,952 13,252 2,491,900 1,298,620 1,193,280 ‐ ‐ ‐ ‐ ‐ ‐ 587,500 259,366 328,134 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 410,200 ‐ 410,200 12,500 ‐ 12,500 2,902,100 1,298,620 1,603,480 600,000 259,366 340,634 (1,528,800) 172,218 1,701,018 (441,300) (87,414) 353,886 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (135,000) (79,298) 55,702 ‐ ‐ ‐ (135,000) (79,298) 55,702 (1,528,800) 172,218 1,701,018 (576,300) (166,712) 409,588 4,315,031 4,315,031 ‐ 1,786,100 1,786,100 ‐ 2,786,231$ 4,487,249$ 1,701,018$ 1,209,800$ 1,619,388$ 409,588$ 172,218$ (166,712)$ ‐ 3,586 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 150,756 172,218$ (12,370)$ Revenue Funds (Budgetary Basis) Other Public Safety Other Court Special Revenue Funds 121 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Licenses, permits and impact fees 4,900 7,739 2,839 ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ ‐ ‐ Charges for services 348,700 315,933 (32,767) ‐ ‐ ‐ Fines and forfeitures 85,000 86,198 1,198 ‐ ‐ ‐ Interest income 6,500 21,226 14,726 8,600 15,040 6,440 Special assessments ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous 795,778 1,007,642 211,864 ‐ ‐ ‐ Total revenues 1,240,878 1,438,738 197,860 8,600 15,040 6,440 Expenditures: Current: General government 190,300 176,838 13,462 ‐ ‐ ‐ Public safety 547,200 173,400 373,800 ‐ ‐ ‐ Physical environment ‐ ‐ ‐ 69,700 51,433 18,267 Transportation ‐ ‐ ‐ ‐ ‐ ‐ Economic environment ‐ ‐ ‐ ‐ ‐ ‐ Human services 189,900 173,170 16,730 ‐ ‐ ‐ Culture and recreation 133,078 55,198 77,880 ‐ ‐ ‐ Debt service ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay 1,654,400 88,126 1,566,274 ‐ ‐ ‐ Total expenditures 2,714,878 666,732 2,048,146 69,700 51,433 18,267 Excess (deficit) of revenues over (under) expenditures (1,474,000) 772,006 2,246,006 (61,100) (36,393) 24,707 Other financing sources (uses): Bonds issued ‐ ‐ ‐ ‐ ‐ ‐ Premiums on bonds issued ‐ ‐ ‐ ‐ ‐ ‐ Payment to refunding bond escrow ‐ ‐ ‐ ‐ ‐ ‐ Sale of capital assets ‐ ‐ ‐ ‐ ‐ ‐ Insurance proceeds ‐ ‐ ‐ ‐ ‐ ‐ Transfers in 665,100 667,437 2,337 ‐ ‐ ‐ Transfers out ‐ (3,137) (3,137) ‐ ‐ ‐ Total other financing sources (uses) 665,100 664,300 (800) ‐ ‐ ‐ Net change in fund balances (808,900) 1,436,306 2,245,206 (61,100) (36,393) 24,707 Fund balances at beginning of year 1,380,700 1,380,700 ‐ 1,727,700 1,727,700 ‐ Fund balances (deficits) at end of year 571,800$ 2,817,006$ 2,245,206$ 1,666,600$ 1,691,307$ 24,707$ See accompanying independent auditor's report Reconciliation: 1,436,306$ (36,393)$ 4,240 3,199 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,440,546$ (33,194)$ Net change in fund balance, budgetary basis COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Endowment (Budgetary Basis) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Revenue Funds (Budgetary Basis) Change in fair value of investments Ad valorem refunds not budgeted BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS Change in inventory held for resale Advances reclassified to transfers Resource Recovery ParkOther Special Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis COLLIER COUNTY, FLORIDA 122 Budget Actual Variance Budget Actual Variance 93,700$ 90,433$ (3,267)$ ‐$ 10,907$ 10,907$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,059 1,059 400 683 283 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 93,700 91,492 (2,208) 400 11,590 11,190 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 71,000 67,649 3,351 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 71,000 67,649 3,351 ‐ ‐ ‐ 22,700 23,843 1,143 400 11,590 11,190 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 816 816 ‐ ‐ ‐ (4,400) (2,652) 1,748 (91,200) (91,025) 175 (4,400) (1,836) 2,564 (91,200) (91,025) 175 18,300 22,007 3,707 (90,800) (79,435) 11,365 84,000 84,000 ‐ 90,800 90,800 ‐ 102,300$ 106,007$ 3,707$ ‐$ 11,365$ 11,365$ 22,007$ (79,435)$ 216 158 (13) (36) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 22,210$ (79,313)$ Conservation Collier Limited General Obligation Bonds (Budgetary Basis) Radio Road East Limited General Obligation Bonds (Budgetary Basis) 123 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$405,900$ 392,471$ (13,429)$ Licenses, permits and impact fees ‐ ‐‐‐‐ ‐ Intergovernmental ‐ ‐‐‐‐ ‐ Charges for services ‐ ‐‐‐‐ ‐ Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 2,500 2,856 356 1,000 8,250 7,250 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous ‐ 125,000 125,000 ‐‐ ‐ Total revenues 2,500 127,856 125,356 406,900 400,721 (6,179) Expenditures: Current: General government ‐ ‐‐‐‐ ‐ Public safety ‐ ‐‐‐‐ ‐ Physical environment ‐ ‐‐‐‐ ‐ Transportation ‐ ‐‐‐‐ ‐ Economic environment ‐ ‐‐‐‐ ‐ Human services ‐ ‐‐‐‐ ‐ Culture and recreation ‐ ‐‐‐‐ ‐ Debt service 955,000 879,512 75,488 562,000 560,416 1,584 Capital outlay ‐ ‐‐‐‐ ‐ Total expenditures 955,000 879,512 75,488 562,000 560,416 1,584 Excess (deficit) of revenues over (under) expenditures (952,500) (751,656) 200,844 (155,100) (159,695) (4,595) Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐‐ ‐ Transfers in 1,030,700 905,700 (125,000) 114,200 118,211 4,011 Transfers out ‐ ‐‐(16,800) (12,658) 4,142 Total other financing sources (uses) 1,030,700 905,700 (125,000) 97,400 105,553 8,153 Net change in fund balances 78,200 154,044 75,844 (57,700) (54,142) 3,558 Fund balances at beginning of year 627,400 627,400 ‐933,200 933,200 ‐ Fund balances (deficits) at end of year 705,600$ 781,444$ 75,844$ 875,500$ 879,058$ 3,558$ See accompanying independent auditor's report Reconciliation: 154,044$ (54,142)$ 590 1,797 ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ Net change in fund balance, GAAP basis 154,634$ (52,345)$ Taxable Note (Budgetary Basis) Community Redevelopment COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Forest Lakes Limited General BUDGET AND ACTUAL (BUDGETARY BASIS) Change in inventory held for resale Advances reclassified to transfers Obligation Bonds (Budgetary Basis) Advances budgeted as transfers Unbudgeted funds MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS Change in inventory Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted 124 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ 1,500$ 950$ (550)$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,300 84,660 78,360 500 17,772 17,272 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,300 84,660 78,360 2,000 18,722 16,722 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 18,342,700 18,320,847 21,853 13,243,000 13,142,669 100,331 ‐ ‐ ‐ ‐ ‐ ‐ 18,342,700 18,320,847 21,853 13,243,000 13,142,669 100,331 (18,336,400) (18,236,187) 100,213 (13,241,000) (13,123,947) 117,053 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 18,074,700 18,074,421 (279) 13,141,600 13,141,600 ‐ ‐ ‐ ‐ (6,800) (4,371) 2,429 18,074,700 18,074,421 (279) 13,134,800 13,137,229 2,429 (261,700) (161,766) 99,934 (106,200) 13,282 119,482 3,486,600 3,486,600 ‐ 106,300 106,300 ‐ 3,224,900$ 3,324,834$ 99,934$ 100$ 119,582$ 119,482$ (161,766)$ 13,282$ 5,566 3,520 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (156,200)$ 16,802$ Other Debt Service (Budgetary Basis) Special Obligation Revenue Bonds (Budgetary Basis) 125 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐412,000 635,835 223,835 Intergovernmental ‐ 12,389 12,389 ‐‐ ‐ Charges for services ‐ ‐‐62,000 60,640 (1,360) Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 25,000 75,789 50,789 25,000 9,878 (15,122) Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous ‐ ‐‐860,000 273,400 (586,600) Total revenues 25,000 88,178 63,178 1,359,000 979,753 (379,247) Expenditures: Current: General government 1,772,012 1,455,798 316,214 ‐‐ ‐ Public safety 547,609 233,253 314,356 ‐‐ ‐ Physical environment 82,202 21,434 60,768 ‐‐ ‐ Transportation ‐ ‐‐‐‐ ‐ Economic environment ‐ ‐‐‐‐ ‐ Human services ‐ ‐‐‐‐ ‐ Culture and recreation 1,000 244 756 680,434 569,206 111,228 Debt service ‐ ‐‐‐‐ ‐ Capital outlay 13,464,778 4,906,220 8,558,558 1,766,222 594,639 1,171,583 Total expenditures 15,867,601 6,616,949 9,250,652 2,446,656 1,163,845 1,282,811 Excess (deficit) of revenues over (under) expenditures (15,842,601) (6,528,771) 9,313,830 (1,087,656) (184,092) 903,564 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐32,639 32,639 Transfers in 18,908,900 18,908,900 ‐1,012,810 1,050,338 37,528 Transfers out (11,720,300) (11,724,001) (3,701) (333,380) (333,451) (71) Total other financing sources (uses) 7,188,600 7,184,899 (3,701) 679,430 749,526 70,096 Net change in fund balances (8,654,001) 656,128 9,310,129 (408,226) 565,434 973,660 Fund balances at beginning of year 9,215,348 9,215,348 ‐741,313 741,313 ‐ Fund balances (deficits) at end of year 561,347$ 9,871,476$ 9,310,129$ 333,087$ 1,306,747$ 973,660$ See accompanying independent auditor's report Reconciliation: 656,128$ 565,434$ 15,183 2,022 ‐‐ ‐‐ ‐‐ ‐‐ (49,791,700) ‐ ‐‐ (49,120,389)$ 567,456$ Ad valorem refunds not budgeted Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS (Budgetary Basis) County‐Wide Capital Improvememts (Budgetary Basis) COLLIER COUNTY, FLORIDA Change in inventory held for resale Parks Improvements Advances reclassified to transfers Change in fair value of investments Change in inventory Net change in fund balance, budgetary basis 126 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ 640,000 869,236 229,236 1,100,000 1,471,250 371,250 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,000 8,595 4,595 5,200 12,930 7,730 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 644,000 877,831 233,831 1,105,200 1,484,180 378,980 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 185,245 5,568 179,677 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 127,121 10,933 116,188 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 225,516 94,023 131,493 ‐ ‐ ‐ 352,637 104,956 247,681 185,245 5,568 179,677 291,363 772,875 481,512 919,955 1,478,612 558,657 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 679,000 679,000 ‐ 495,300 495,300 ‐ ‐ (1,161,000) (1,161,000) (1,887,100) (1,887,100) ‐ 679,000 (482,000) (1,161,000) (1,391,800) (1,391,800) ‐ 970,363 290,875 (679,488) (471,845) 86,812 558,657 ‐ ‐ ‐ 1,890,745 1,890,745 ‐ 970,363$ 290,875$ (679,488)$ 1,418,900$ 1,977,557$ 558,657$ 290,875$ 86,812$ 1,689 2,618 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,429,925 7,027,900 ‐ ‐ 10,722,489$ 7,117,330$ Correctional Facilities Impact Fees (Budgetary Basis)Impact Fees (Budgetary Basis) County‐Wide Library 127 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$‐$ ‐$ Licenses, permits and impact fees 260,000 344,533 84,533 ‐‐ ‐ Intergovernmental ‐ ‐‐‐‐ ‐ Charges for services ‐ ‐‐‐‐ ‐ Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 1,400 15,269 13,869 45,800 124,903 79,103 Special assessments ‐ ‐‐336,400 323,445 (12,955) Miscellaneous ‐ ‐‐‐82,631 82,631 Total revenues 261,400 359,802 98,402 382,200 530,979 148,779 Expenditures: Current: General government ‐ ‐‐‐‐ ‐ Public safety 59,415 5,323 54,092 ‐‐ ‐ Physical environment ‐ ‐‐1,853,643 614,358 1,239,285 Transportation ‐ ‐‐‐‐ ‐ Economic environment ‐ ‐‐‐‐ ‐ Human services ‐ ‐‐‐‐ ‐ Culture and recreation ‐ ‐‐‐‐ ‐ Debt service ‐ ‐‐‐‐ ‐ Capital outlay 1,731,504 294,626 1,436,878 13,114,614 2,046,569 11,068,045 Total expenditures 1,790,919 299,949 1,490,970 14,968,257 2,660,927 12,307,330 Excess (deficit) of revenues over (under) expenditures (1,529,519) 59,853 1,589,372 (14,586,057) (2,129,948) 12,456,109 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ ‐‐‐‐ ‐ Transfers in 1,799,800 1,799,800 ‐5,754,900 5,757,836 2,936 Transfers out (447,700) (447,700)‐(5,038,115) (4,232,066) 806,049 Total other financing sources (uses) 1,352,100 1,352,100 ‐716,785 1,525,770 808,985 Net change in fund balances (177,419) 1,411,953 1,589,372 (13,869,272) (604,178) 13,265,094 Fund balances at beginning of year 430,219 430,219 ‐14,123,672 14,123,672 ‐ Fund balances (deficits) at end of year 252,800$ 1,842,172$ 1,589,372$ 254,400$ 13,519,494$ 13,265,094$ See accompanying independent auditor's report Reconciliation: 1,411,953$ (604,178)$ 3,102 26,359 ‐‐ ‐‐ ‐‐ ‐‐ 3,215,900 ‐ ‐‐ 4,630,955$ (577,819)$ Unbudgeted funds Net change in fund balance, GAAP basis Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Advances budgeted as transfers Emergency Medical Services Impact Fees (Budgetary Basis) COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COLLIER COUNTY, FLORIDA Change in inventory held for resale (Budgetary Basis) BUDGET AND ACTUAL (BUDGETARY BASIS) Water Management MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS Advances reclassified to transfers FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Change in inventory 128 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ 6,200,000 8,098,940 1,898,940 6,000,000 11,014,501 5,014,501 65,000 ‐ (65,000) 94,600 94,641 41 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 39,800 139,273 99,473 166,000 450,687 284,687 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 27 27 6,304,800 8,238,213 1,933,413 6,260,600 11,559,856 5,299,256 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,937,998 173,975 3,764,023 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 357,586 126,907 230,679 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 11,044,456 3,107,680 7,936,776 36,412,620 4,610,504 31,802,116 11,402,042 3,234,587 8,167,455 40,350,618 4,784,479 35,566,139 (5,097,242) 5,003,626 10,100,868 (34,090,018) 6,775,377 40,865,395 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (2,929,900) (3,318,320) (388,420) (4,873,930) ‐ 4,873,930 (2,929,900) (3,318,320) (388,420) (4,873,930) ‐ 4,873,930 (8,027,142) 1,685,306 9,712,448 (38,963,948) 6,775,377 45,739,325 15,722,842 15,722,842 ‐ 47,446,948 47,446,948 ‐ 7,695,700$ 17,408,148$ 9,712,448$ 8,483,000$ 54,222,325$ 45,739,325$ 1,685,306$ 6,775,377$ 28,809 93,436 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,714,115$ 6,868,813$ (Budgetary Basis) Parks Impact Districts (Budgetary Basis) Road Impact Districts 129 Budget Actual Variance Budget Actual Variance Revenues: Taxes 12,692,000$ 13,616,925$ 924,925$ ‐$‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐1,700,000 2,349,191 649,191 Intergovernmental 7,137,000 7,449,150 312,150 ‐‐ ‐ Charges for services 90,300 105,050 14,750 ‐‐ ‐ Fines and forfeitures ‐ ‐‐‐‐ ‐ Interest income 121,600 259,933 138,333 10,400 41,909 31,509 Special assessments ‐ ‐‐‐‐ ‐ Miscellaneous 241,742 723,166 481,424 ‐‐ ‐ Total revenues 20,282,642 22,154,224 1,871,582 1,710,400 2,391,100 680,700 Expenditures: Current: General government ‐ ‐‐200,613 6,427 194,186 Public safety ‐ ‐‐‐‐ ‐ Physical environment ‐ ‐‐‐‐ ‐ Transportation 9,921,573 9,853,698 67,875 ‐‐ ‐ Economic environment ‐ ‐‐‐‐ ‐ Human services ‐ ‐‐‐‐ ‐ Culture and recreation ‐ ‐‐‐‐ ‐ Debt service ‐ ‐‐10,000 9,125 875 Capital outlay 35,974,172 4,787,005 31,187,167 5,535,350 3,536,636 1,998,714 Total expenditures 45,895,745 14,640,703 31,255,042 5,745,963 3,552,188 2,193,775 Excess (deficit) of revenues over (under) expenditures (25,613,103) 7,513,521 33,126,624 (4,035,563) (1,161,088) 2,874,475 Other financing sources (uses): Bonds issued ‐ ‐‐‐‐ ‐ Premiums on bonds issued ‐ ‐‐‐‐ ‐ Payment to refunding bond escrow ‐ ‐‐‐‐ ‐ Sale of capital assets ‐ ‐‐‐‐ ‐ Insurance proceeds ‐ 4,238 4,238 ‐‐ ‐ Transfers in 16,415,500 16,415,276 (224) 8,217,300 8,217,300 ‐ Transfers out (22,258,265) (20,139,251) 2,119,014 (5,012,700) (5,012,700) ‐ Total other financing sources (uses) (5,842,765) (3,719,737) 2,123,028 3,204,600 3,204,600 ‐ Net change in fund balances (31,455,868) 3,793,784 35,249,652 (830,963) 2,043,512 2,874,475 Fund balances at beginning of year 36,646,016 36,646,016 ‐3,640,063 3,640,063 ‐ Fund balances (deficits) at end of year 5,190,148$ 40,439,800$ 35,249,652$ 2,809,100$ 5,683,575$ 2,874,475$ See accompanying independent auditor's report Reconciliation: 3,793,784$ 2,043,512$ 54,407 8,634 ‐‐ ‐‐ ‐‐ ‐630,000 ‐25,081,800 ‐‐ 3,848,191$ 27,763,946$ Net change in fund balance, GAAP basis Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Advances budgeted as transfers Unbudgeted funds COLLIER COUNTY, FLORIDA Road Construction Change in inventory held for resale Impact Fees (Budgetary Basis) Government Facilities FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 BUDGET AND ACTUAL (BUDGETARY BASIS) (Budgetary Basis) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Advances reclassified to transfers Change in inventory 130 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ 900,000 1,260,634 360,634 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,200 30,486 25,286 10,000 25,786 15,786 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 905,200 1,291,120 385,920 10,000 25,786 15,786 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 148,492 4,030 144,462 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 11,801 861 10,940 ‐ ‐ ‐ ‐ ‐ ‐ 2,394,000 220,732 2,173,268 2,965,271 ‐ 2,965,271 2,542,492 224,762 2,317,730 2,977,072 861 2,976,211 (1,637,292) 1,066,358 2,703,650 (2,967,072) 24,925 2,991,997 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,758,900 3,758,900 ‐ ‐ ‐ ‐ (2,656,600) (2,656,600) ‐ ‐ ‐ ‐ 1,102,300 1,102,300 ‐ ‐ ‐ ‐ (534,992) 2,168,658 2,703,650 (2,967,072) 24,925 2,991,997 ‐ ‐ ‐ 2,967,572 2,967,572 ‐ (534,992)$ 2,168,658$ 2,703,650$ 500$ 2,992,497$ 2,991,997$ 2,168,658$ 24,925$ 6,013 5,468 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 19,923,100 ‐ ‐ ‐ 22,097,771$ 30,393$ Law Enforcement Impact Fees All Terrain Vehicle Park (Budgetary Basis)(Budgetary Basis) 131 Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$ Licenses, permits and impact fees 2,000 5,186 3,186 Intergovernmental ‐ ‐‐ Charges for services ‐ ‐‐ Fines and forfeitures ‐ ‐‐ Interest income 4,600 8,671 4,071 Special assessments 118,600 115,116 (3,484) Miscellaneous ‐ 118 118 Total revenues 125,200 129,091 3,891 Expenditures: Current: General government 75,000 ‐75,000 Public safety 3,852 ‐3,852 Physical environment 1,369,134 1,267,026 102,108 Transportation ‐ ‐‐ Economic environment ‐ ‐‐ Human services ‐ ‐‐ Culture and recreation 261,000 59,521 201,479 Debt service ‐ ‐‐ Capital outlay 351,571 216,370 135,201 Total expenditures 2,060,557 1,542,917 517,640 Excess (deficit) of revenues over (under) expenditures (1,935,357) (1,413,826) 521,531 Other financing sources (uses): Bonds issued ‐ ‐‐ Premiums on bonds issued ‐ ‐‐ Payment to refunding bond escrow ‐ ‐‐ Sale of capital assets ‐ ‐‐ Insurance proceeds ‐ ‐‐ Transfers in 1,702,200 1,703,087 887 Transfers out (7,900) (3,948)3,952 Total other financing sources (uses) 1,694,300 1,699,139 4,839 Net change in fund balances (241,057) 285,313 526,370 Fund balances at beginning of year 759,782 759,782 ‐ Fund balances (deficits) at end of year 518,725$ 1,045,095$ 526,370$ See accompanying independent auditor's report Reconciliation: 285,313$ 1,774 ‐ ‐ ‐ ‐ ‐ ‐ 287,087$ Advances reclassified to transfers Unbudgeted funds Net change in fund balance, GAAP basis (Budgetary Basis) Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory held for resale Advances budgeted as transfers Change in inventory COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Other Capital Projects 132 Nonmajor Enterprise Funds EMERGENCY MEDICAL SERVICES – To account for the provision of emergency ambulance and paramedical services to users throughout the County. AIRPORT AUTHORITY – To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT – To account for the provision of public transportation throughout the County. Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds ASSETS Current assets: Cash, cash equivalents and investments 7,971,973$ 1,042,692$ 1,563,668$ 10,578,333$ Receivables: Trade, net 1,476,879 23,301 13,036 1,513,216 Interest 20,138 2,464 4,293 26,895 Due from other funds 2,743 7,472 8,807 19,022 Due from other governments 29,270 ‐126 29,396 Inventory 35,218 90,794 ‐126,012 Prepaid costs 159,413 ‐101,375 260,788 Restricted assets: Cash, cash equivalents and investments 243,837 24,782 146,303 414,922 Interest receivable 643 ‐‐643 Due from other governments ‐1,326,286 2,814,666 4,140,952 Total current assets 9,940,114 2,517,791 4,652,274 17,110,179 Noncurrent assets: Capital assets: Land and nondepreciable capital assets ‐1,805,421 10,195,139 12,000,560 Depreciable capital assets, net 7,058,659 32,326,464 13,281,096 52,666,219 Total noncurrent assets 7,058,659 34,131,885 23,476,235 64,666,779 Total assets 16,998,773 36,649,676 28,128,509 81,776,958 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions 3,325,754 78,353 23,696 3,427,803 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2015 134 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds LIABILITIES Current liabilities: Accounts payable 348,232 65,958 392,221 806,411 Wages payable 1,186,522 43,483 14,319 1,244,324 Retainage payable ‐ ‐ 20,203 20,203 Due to other funds ‐ 979,436 45,934 1,025,370 Due to other governments ‐ 3,390 ‐ 3,390 Unearned revenue ‐ 59,217 ‐ 59,217 Compensated absences 520,911 28,347 4,398 553,656 Capital lease obligations 283,358 ‐ ‐ 283,358 Liabilities payable from restricted assets: Accounts payable ‐ 11,762 1,326,680 1,338,442 Wages payable ‐ ‐ 3,668 3,668 Retainage payable ‐ ‐ 287,769 287,769 Due to other governments ‐ ‐ 68,553 68,553 Refundable deposits ‐ 15,753 ‐ 15,753 Unearned revenue ‐ 8,441 ‐ 8,441 Total current liabilities 2,339,023 1,215,787 2,163,745 5,718,555 Noncurrent liabilities: Compensated absences 130,228 7,087 1,100 138,415 Capital lease obligations 790,609 ‐ ‐ 790,609 Net pension liability 13,402,201 405,822 101,964 13,909,987 Total noncurrent liabilities 14,323,038 412,909 103,064 14,839,011 Total liabilities 16,662,061 1,628,696 2,266,809 20,557,566 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 2,789,805 46,287 18,481 2,854,573 NET POSITION Net investment in capital assets 5,984,692 34,076,248 22,090,343 62,151,283 Restricted for grants and other purposes 244,480 23,464 1,052,993 1,320,937 Unrestricted (5,356,511) 953,334 2,723,579 (1,679,598) Total net position 872,661$ 35,053,046$ 25,866,915$ 61,792,622$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2015 135 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds Operating revenues: Charges for services 12,213,440$ 3,315,331$ 1,613,569$ 17,142,340$ Miscellaneous 114,103 34,436 105,637 254,176 Total operating revenues 12,327,543 3,349,767 1,719,206 17,396,516 Operating expenses: Personal services 19,443,811 890,934 282,143 20,616,888 Operating 3,374,158 2,471,325 8,599,140 14,444,623 Depreciation 973,635 1,413,499 1,490,266 3,877,400 Total operating expenses 23,791,604 4,775,758 10,371,549 38,938,911 Operating loss (11,464,061) (1,425,991) (8,652,343) (21,542,395) Non‐operating revenues (expenses): Operating grants and contributions 206,588 ‐4,788,094 4,994,682 Interest income 78,253 12,366 17,032 107,651 Insurance reimbursement 8,470 ‐26,006 34,476 Interest expense (22,363) ‐‐(22,363) Gain (loss) on disposal of capital assets 17,277 361 (3,388) 14,250 Total non‐operating revenues (expenses) 288,225 12,727 4,827,744 5,128,696 Loss before contributions and transfers (11,175,836) (1,413,264) (3,824,599) (16,413,699) Capital grants and contributions ‐368,842 3,455,290 3,824,132 Transfers in 15,488,300 658,200 3,660,908 19,807,408 Transfers out (3,000) (8,641) ‐(11,641) Total transfers and contributions 15,485,300 1,018,401 7,116,198 23,619,899 Changes in net position 4,309,464 (394,863) 3,291,599 7,206,200 Net position ‐ beginning, as previously stated 10,443,926 35,813,824 22,700,072 68,957,822 Restatement of net position due to implementation of GASB 68 (13,880,729) (365,915) (124,756) (14,371,400) Net position ‐ as restated (3,436,803) 35,447,909 22,575,316 54,586,422 Net position ‐ ending 872,661$ 35,053,046$ 25,866,915$ 61,792,622$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 136 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds Cash flows from operating activities: 12,281,291$ 3,367,000$ 1,862,134$ 17,510,425$ (2,091,191) (2,083,844) (6,566,896) (10,741,931) (20,444,256) (883,674) (312,482) (21,640,412) (1,241,903) (353,257) (2,242,718) (3,837,878) (11,496,059) 46,225 (7,259,962) (18,709,796) Cash flows from non‐capital financing activities: 177,318 ‐ 5,148,096 5,325,414 15,488,300 685,408 3,666,004 19,839,712 (3,000) (3,786,622) ‐ (3,789,622) 15,662,618 (3,101,214) 8,814,100 21,375,504 Cash flows from capital and related financing activities: 57,828 ‐ 26,006 83,834 2,416 479 7,894 10,789 ‐ 6,461,988 2,697,569 9,159,557 (2,111,473) (2,563,324) (2,844,951) (7,519,748) (278,323) ‐ ‐ (278,323) (22,363) ‐ ‐ (22,363) (2,351,915) 3,899,143 (113,482) 1,433,746 Cash flows from investing activities: 65,382 10,380 13,458 89,220 65,382 10,380 13,458 89,220 1,880,026 854,534 1,454,114 4,188,674 6,335,784 212,940 255,857 6,804,581 8,215,810$ 1,067,474$ 1,709,971$ 10,993,255$ 7,971,973$ 1,042,692$ 1,563,668$ 10,578,333$ 243,837 24,782 146,303 414,922 8,215,810$ 1,067,474$ 1,709,971$ 10,993,255$ Operating loss (11,464,061)$ (1,425,991)$ (8,652,343)$ (21,542,395)$ 973,635 1,413,499 1,490,266 3,877,400 Net changes in assets and liabilities: (17,505) 15,903 136,635 135,033 (2,743) ‐ (38,559) (41,302) 411 ‐ (199) 212 5,266 56,505 ‐ 61,771 49,050 ‐ (101,375) (52,325) (42,362) (22,281) (85,114) (149,757) 117,781 (352) (294) 117,135 ‐ ‐ 21,066 21,066 (48) 1,095 ‐ 1,047 (101,006) (229) (2,038) (103,273) ‐ (819) ‐ (819) ‐ 1,054 ‐ 1,054 (1,014,477) 7,841 (28,007) (1,034,643) (31,998) 1,472,216 1,392,381 2,832,599 (11,496,059)$ 46,225$ (7,259,962)$ (18,709,796)$ Non‐cash investing, capital and financing activities: 13,096$ 2,369$ 3,076$ 18,541$ ‐ ‐ 433,985 433,985 ‐ (6,093,146) 323,736 (5,769,410) ‐ 55,637 1,077,920 1,133,557 See accompanying independent auditor's report Capital related accounts payable Change in capital related grant receivable COLLIER COUNTY, FLORIDA NONMAJOR ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Net increase in cash, cash equivalents and investments Cash received for services Cash payments for goods and services Cash payments to employees Cash payments for interfund services Net cash provided by (used for) operating activities Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non‐capital financing activities Receipts from insurance reimbursements Proceeds from disposal of capital assets Proceeds from capital grants Payments for capital acquisitions Principal payments on leases Interest and fiscal agent fees paid related financing activities Net cash provided by (used for) capital and Interest on investments Net cash provided by investing activities Cash, cash equivalents and investments, October 1, 2014 Cash, cash equivalents and investments, September 30, 2015 Cash, cash equivalents and investments Cash, cash equivalents and investments ‐ restricted Cash, cash equivalents and investments, September 30, 2015 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation expense Trade receivable Due from other funds Due from other governments Inventory Accounts payable Wages payable Prepaid costs Due to other funds Unearned revenue Due to other governments Change in fair value of investments Contributed capital assets Compensated absences Net pension liability and related deferred outflows/inflows Total adjustments Net cash provided by (used for) operating activities Refundable deposits 137 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. INFORMATION TECHNOLOGY – To account for the costs of operating the County data processing facility and telephone communication system. Sheriff's Self‐Self‐Fleet Information Insurance Insurance Management Technology Total ASSETS Current assets: Cash, cash equivalents and investments 36,441,402$ 9,902,000$ 1,092,518$ 2,113,445$ 49,549,365$ Receivables: Trade, net 1,241,235 45,012 3,697 ‐ 1,289,944 Interest 102,147 ‐2,308 6,127 110,582 Due from other funds 12,604 183,556 59,354 ‐ 255,514 Due from other governments 3,005 ‐24,841 ‐ 27,846 Deposits 51,108 ‐‐‐ 51,108 Inventory 300 ‐376,913 12,272 389,485 Total current assets 37,851,801 10,130,568 1,559,631 2,131,844 51,673,844 Noncurrent assets: Capital assets: Depreciable capital assets, net 253,684 ‐10,795,210 4,178,541 15,227,435 Total noncurrent assets 253,684 ‐10,795,210 4,178,541 15,227,435 Total assets 38,105,485 10,130,568 12,354,841 6,310,385 66,901,279 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions 101,567 ‐176,170 295,902 573,639 LIABILITIES Current liabilities: Accounts payable 237,744 ‐339,124 261,170 838,038 Wages payable 67,295 ‐129,581 196,303 393,179 Due to other governments 10,552 ‐20,271 ‐ 30,823 Unearned revenue 6,944 ‐‐‐ 6,944 Self‐insurance claims payable 3,533,441 2,170,000 ‐‐ 5,703,441 Compensated absences 99,923 ‐110,140 191,298 401,361 Total current liabilities 3,955,899 2,170,000 599,116 648,771 7,373,786 Noncurrent liabilities: Self‐insurance claims payable 1,255,993 ‐‐‐ 1,255,993 Compensated absences 24,980 ‐27,535 47,825 100,340 Net OPEB obligation 826,053 2,168,099 ‐‐ 2,994,152 Net pension liability 468,901 861,531 1,385,042 2,715,474 Total noncurrent liabilities 2,575,927 2,168,099 889,066 1,432,867 7,065,959 Total liabilities 6,531,826 4,338,099 1,488,182 2,081,638 14,439,745 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 72,336 ‐115,063 206,648 394,047 NET POSITION Net investment in capital assets 253,684 ‐10,795,210 4,107,718 15,156,612 Unrestricted 31,349,206 5,792,469 132,556 210,283 37,484,514 Total net position 31,602,890$ 5,792,469$ 10,927,766$ 4,318,001$ 52,641,126$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2015 140 Sheriff's Self‐Self‐Fleet Information Insurance Insurance Management Technology Total Operating revenues: Charges for services 45,007,675$ 19,777,998$ 7,614,087$ 5,624,804$ 78,024,564$ Miscellaneous 28,497 ‐ 31,872 1,143 61,512 Total operating revenues 45,036,172 19,777,998 7,645,959 5,625,947 78,086,076 Operating expenses: Personal services 1,104,125 ‐ 2,032,635 3,113,464 6,250,224 Operating 41,047,767 21,159,525 6,037,402 2,195,084 70,439,778 Depreciation 25,566 ‐ 570,481 1,250,809 1,846,856 Total operating expenses 42,177,458 21,159,525 8,640,518 6,559,357 78,536,858 Operating income (loss) 2,858,714 (1,381,527) (994,559) (933,410) (450,782) Non‐operating revenues (expenses): Interest income 413,837 14,430 10,313 24,220 462,800 Insurance reimbursement 1,100,039 ‐ 2,374 ‐ 1,102,413 Gain (Loss) on disposal of capital assets ‐ ‐ 20,725 149 20,874 Total non‐operating revenues (expenses) 1,513,876 14,430 33,412 24,369 1,586,087 Income (loss) before contributions and transfers 4,372,590 (1,367,097) (961,147) (909,041) 1,135,305 Capital grants and contributions 303 ‐ ‐ ‐ 303 Transfers out (1,476,600) ‐ ‐ ‐ (1,476,600) Change in net position 2,896,293 (1,367,097) (961,147) (909,041) (340,992) Net position ‐ beginning, as previously stated 29,201,070 7,159,566 12,775,720 6,727,645 55,864,001 Restatement of net position due to implementation of GASB 68 (494,473) ‐ (886,807) (1,500,603) (2,881,883) Net position ‐ as restated 28,706,597 7,159,566 11,888,913 5,227,042 52,982,118 Net position ‐ ending 31,602,890$ 5,792,469$ 10,927,766$ 4,318,001$ 52,641,126$ COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 See accompanying independent auditor's report 141 Sheriff's Self‐Self‐Fleet Information Insurance Insurance Management Technology Total Cash flows from operating activities: Cash received from other funds for services 37,676,361$ 18,750,000$ 7,306,008$ 5,625,947$ 69,358,316$ Cash received from employees for services 6,787,209 ‐ ‐ ‐ 6,787,209 Cash received from other governments for services ‐ ‐ 368,869 ‐ 368,869 Cash received from retirees for services 586,556 799,430 ‐ ‐ 1,385,986 Cash payments on behalf of retirees (2,439,766) ‐ ‐ ‐ (2,439,766) Cash payments for goods and services (39,043,625) (20,475,265) (5,480,520) (2,022,230) (67,021,640) Cash payments to employees (1,167,377) ‐ (2,083,551) (3,325,507) (6,576,435) Cash payments for interfund services (419,947) ‐ (258,536) (37,188) (715,671) Net cash provided by (used for) operating activities 1,979,411 (925,835) (147,730) 241,022 1,146,868 Cash flows from non‐capital financing activities: Cash transfers to other funds (1,476,600) (407,422) ‐ ‐ (1,884,022) Net cash used for non‐capital financing activities (1,476,600) (407,422) ‐ ‐ (1,884,022) Cash flows from capital and related financing activities: Receipts from insurance reimbursements 1,114,621 ‐ 5,515 ‐ 1,120,136 Proceeds from disposal of capital assets ‐ ‐ 23,416 149 23,565 Payments for capital acquisitions (38,289) ‐ (114,933) (191,724) (344,946) Net cash provided by (used for) capital and related financing activities 1,076,332 ‐ (86,002) (191,575) 798,755 Cash flows from investing activities: Interest on investments 352,702 14,430 8,831 20,592 396,555 Net cash provided by investing activities 352,702 14,430 8,831 20,592 396,555 1,931,845 (1,318,827) (224,901) 70,039 458,156 Cash, cash equivalents and investments, October 1, 2014 34,509,557 11,220,827 1,317,419 2,043,406 49,091,209 Cash, cash equivalents and investments, September 30, 2015 36,441,402$ 9,902,000$ 1,092,518$ 2,113,445$ 49,549,365$ Operating income (loss)2,858,714$ (1,381,527)$ (994,559)$ (933,410)$ (450,782)$ Adjustments to reconcile operating income (loss) to net cash provided (used for) by operating activities: Depreciation expense 25,566 ‐ 570,481 1,250,809 1,846,856 Net changes in assets and liabilities: Trade receivable (1,217,721) 60,387 (3,697) ‐ (1,161,031) Due from other funds (900) (183,556) 11,430 ‐ (173,026) Due from other governments (3,005) ‐ 21,185 ‐ 18,180 Inventory ‐ ‐ 378,518 1,660 380,178 Accounts payable 140,395 ‐ (100,364) 134,006 174,037 Wages payable 4,258 ‐ 26,241 5,579 36,078 Due to other funds (39,300) ‐ ‐ ‐ (39,300) Due to other governments 10,552 ‐ 20,192 ‐ 30,744 Compensated absences (12,707) ‐ 9,226 (12,807) (16,288) Unearned revenue (2,828) ‐ ‐ ‐ (2,828) Self‐insurance claims payable 294,606 92,000 ‐ ‐ 386,606 Net OPEB obligation (23,416) 486,861 ‐ ‐ 463,445 Net pension liability and related deferred outflows/inflows (54,803) ‐ (86,383) (204,815) (346,001) Total adjustments (879,303) 455,692 846,829 1,174,432 1,597,650 Net cash provided by (used for) operating activities 1,979,411$ (925,835)$ (147,730)$ 241,022$ 1,146,868$ Non‐cash investing, capital and financing activities: Change in fair value of investments 71,112$ (26,970)$ 1,824$ 4,216$ 50,182$ Contributed capital assets 303 ‐ ‐ ‐ 303 Capital related accounts payable ‐ ‐ ‐ 70,823 70,823 See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 equivalents and investments Net increase (decrease) in cash, cash 142 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. Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total ASSETS Cash, cash equivalents and investments 26,821,917$ 566,302$ 7,152,324$ 5,613,684$ 821,652$ 40,975,879$ Receivables: Interest ‐ ‐ ‐ 13,959 2,281 16,240 Other ‐ 14,388 18,820 ‐‐ 33,208 Total assets 26,821,917$ 580,690$ 7,171,144$ 5,627,643$ 823,933$ 41,025,327$ LIABILITIES Due to other governments 1,292,816$ 65,223$ 7,144,066$ ‐$‐$ 8,502,105$ Due to individuals ‐ 515,467 27,078 ‐‐ 542,545 Refundable deposits 25,529,101 ‐‐5,627,643 ‐ 31,156,744 Due to special assessment holders ‐ ‐‐‐823,933 823,933 Total liabilities 26,821,917$ 580,690$ 7,171,144$ 5,627,643$ 823,933$ 41,025,327$ COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2015 See accompanying independent auditor's report 144 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash, cash equivalents and investments 26,166,962$ 187,125,599$ 186,470,644$ 26,821,917$ Total assets 26,166,962$ 187,125,599$ 186,470,644$ 26,821,917$ Liabilities: Due to other governments 1,134,274$ 11,122,487$ 10,963,945$ 1,292,816$ Refundable deposits 25,032,688 176,003,112 175,506,699 25,529,101 Total liabilities 26,166,962$ 187,125,599$ 186,470,644$ 26,821,917$ Sheriff Agency Fund Assets: Cash, cash equivalents and investments 600,082$ 3,733,558$ 3,767,338$ 566,302$ Receivable: Other 23,827 14,388 23,827 14,388 Total assets 623,909$ 3,747,946$ 3,791,165$ 580,690$ Liabilities: Due to other governments 60,129$ 65,223$ 60,129$ 65,223$ Due to individuals 563,780 515,467 563,780 515,467 Total liabilities 623,909$ 580,690$ 623,909$ 580,690$ Tax Collector Agency Fund Assets: Cash, cash equivalents and investments 6,817,938$ 889,709,054$ 889,374,668$ 7,152,324$ Receivable: Other 14,902 2,623,036 2,619,118 18,820 Total assets 6,832,840$ 892,332,090$ 891,993,786$ 7,171,144$ Liabilities: Due to other governments 6,747,383$ 1,150,978,126$ 1,150,581,443$ 7,144,066$ Due to individuals 85,457 38,154,904 38,213,283 27,078 Total liabilities 6,832,840$ 1,189,133,030$ 1,188,794,726$ 7,171,144$ Deposits Agency Fund Assets: Cash, cash equivalents and investments 6,603,422$ 979,691$ 1,969,429$ 5,613,684$ Receivables: Interest 7,009 13,959 7,009 13,959 Total assets 6,610,431$ 993,650$ 1,976,438$ 5,627,643$ Liabilities: Refundable deposits 6,610,431$ 962,626$ 1,945,414$ 5,627,643$ Total liabilities 6,610,431$ 962,626$ 1,945,414$ 5,627,643$ (Continued) COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 145 Balance Balance October 1 Additions Deductions September 30 Assets: Cash, cash equivalents and investments 1,117,644$ 9,108$305,100$ 821,652$ Receivables: Interest 1,288 2,281 1,288 2,281 Other ‐‐‐‐ Total assets 1,118,932$ 11,389$ 306,388$ 823,933$ Liabilities: Due to special assessment holders 1,118,932$ 10,101$ 305,100$ 823,933$ Total liabilities 1,118,932$ 10,101$ 305,100$ 823,933$ Total ‐ All Agency Funds Assets: Cash, cash equivalents and investments 41,306,048$ 1,081,557,010$ 1,081,887,179$ 40,975,879$ Receivables: Interest 8,297 16,240 8,297 16,240 Other 38,729 2,637,424 2,642,945 33,208 Total assets 41,353,074$ 1,084,210,674$ 1,084,538,421$ 41,025,327$ Liabilities: Due to other governments 7,941,786$ 1,162,165,836$ 1,161,605,517$ 8,502,105$ Due to individuals 649,237 38,670,371 38,777,063 542,545 Refundable deposits 31,643,119 176,965,738 177,452,113 31,156,744 Due to special assessment holders 1,118,932 10,101 305,100 823,933 Total liabilities 41,353,074$ 1,377,812,046$ 1,378,139,793$ 41,025,327$ See accompanying independent auditor's report ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Pine Ridge and Naples Production Park Agency 146 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. Housing Health Industrial Educational Finance Facilities Development Facilities Authority Authority Authority Authority Totals ASSETS Cash, cash equivalents and investments 125,934$ 92,691$ 54,993$ 70,057$ 343,675$ Total Assets 125,934$ 92,691$ 54,993$ 70,057$ 343,675$ NET POSITION Net position ‐ unrestricted 125,934$ 92,691$ 54,993$ 70,057$ 343,675$ Total Net Position 125,934$ 92,691$ 54,993$ 70,057$ 343,675$ COLLIER COUNTY, FLORIDA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION SEPTEMBER 30, 2015 See accompanying independent auditor's report 148 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Governmental FUNCTIONS/PROGRAMS Expenses Charges for Services Activities Housing Finance Authority 85$32,905$32,820$ Health Facilities Authority 12 75,000 74,988 Industrial Development Authority 15 32,500 32,485 Total 112$140,405$140,293 General revenues: Interest income 78 Total general revenues 78 Change in net position 140,371 Net position ‐ beginning 203,304 Net position ‐ ending 343,675$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS 149 THIS PAGE INTENTIONALLY LEFT BLANK Other Supplemental Information Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. Amount Amount Received Expended in the in the 2015 2015 Source Fiscal Year Fiscal Year British Petroleum: Settlement agreement 1,981,641 ‐ British Petroleum: Gulf Seafood and Tourism Promotional Fund 125,000 491,889 OTHER SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2015 fiscal year. 152 STATISTICAL SECTION (UNAUDITED) Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB 34 for fiscal year 2002. Schedules presenting government‐wide information include information beginning in that fiscal year. Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non‐accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. CONTENTS PAGE FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government’s financial performance and wellbeing have changed over time. Net position by component 154 Change in net position 155 Governmental activities tax revenues by source 158 Fund balances of governmental funds 159 Changes in fund balance of governmental funds 160 REVENUE CAPACITY These schedules contain information to help the reader assess the County’s most significant local revenue source, the Property Tax. Assessed value and estimated actual value of taxable property 162 Property tax rates – All direct and overlapping governments 163 Principal tax payers County‐wide 164 Property tax levies and collections 165 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future. Ratios of outstanding debt by type 166 Ratios of general bonded debt outstanding 167 Legal debt margin information 168 Direct, overlapping and underlapping governmental activities debt 168 Pledged‐revenue coverage 169 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place. Demographic and economic statistics 170 Principal employers 171 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial report relates to the services the County provides and the activities it performs. Budgeted full‐time equivalent County employees by function 172 Operating indicators by function 173 Capital Asset statistics by function/program 174 20152014 2013 2012 2011 2010 2009 2008 2007 2006Governmental Activities: Net investment in capital assets1,217,176$ 1,207,751$ 1,198,971$ 1,187,298$ 1,172,121$ 1,169,052$ 1,131,617$ 1,032,553$ 881,941$ 682,738$ Restricted298,360 223,526 221,501 226,934 253,977 232,571 240,247 295,012 244,746 205,403 Unrestricted13,109 169,633 152,790 147,188 147,080 189,911 192,442 199,031 317,821 318,092Total governmental activities net position1,528,645$ 1,600,910$ 1,573,262$ 1,561,420$ 1,573,178$ 1,591,534$ 1,564,306$ 1,526,596$ 1,444,508$ 1,206,233$ Business‐type Activities: Net investment in capital assets714,239$ 705,065$ 668,160$ 650,684$ 643,777$ 635,702$ 653,320$ 658,865$ 630,015$ 595,722$ Restricted31,511 29,749 34,379 34,199 38,002 37,795 31,227 30,165 30,746 28,087 Unrestricted165,128 185,420 196,050 194,389 177,939 169,514 149,422 113,761 83,038 77,206Total business‐type activities net position910,878$ 920,234$ 898,589$ 879,272$ 859,718$ 843,011$ 833,969$ 802,791$ 743,799$ 701,015$ Primary Government: Net investment in capital assets1,931,415$ 1,912,816$ 1,867,131$ 1,837,982$ 1,815,898$ 1,804,754$ 1,784,937$ 1,691,418$ 1,511,956$ 1,278,460$ Restricted329,871 253,275 255,880 261,133 291,979 270,366 271,474 325,177 275,492 233,490 Unrestricted178,237 355,053 348,840 341,577 325,019 359,425 341,864 312,792 400,859 395,298Total primary government net position2,439,523$ 2,521,144$ 2,471,851$ 2,440,692$ 2,432,896$ 2,434,545$ 2,398,275$ 2,329,387$ 2,188,307$ 1,907,248$ Fiscal Year(unaudited)(amounts expressed in thousands)COLLIER COUNTY, FLORIDANET POSITION BY COMPONENT(accrual basis of accounting)LAST TEN FISCAL YEARS154 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006ExpensesGovernmental activities: General government93,644$ 92,176$ 95,941$ 94,227$ 103,045$ 100,483$ 113,906$ 112,720$ 110,814$ 100,219$ Public safety174,874 177,267 171,210 165,782 173,286 179,276 182,962 183,288 182,821 187,945 Transportation70,296 71,623 69,275 73,000 81,383 76,603 64,601 65,980 54,198 48,986 Culture and recreation45,117 41,630 41,453 42,507 44,205 46,871 45,727 43,435 41,595 34,348 Other activities45,621 39,171 43,067 51,057 39,991 40,937 45,367 49,135 44,500 35,838 Interest on long‐term debt12,912 12,674 16,129 16,412 19,797 19,475 20,492 21,446 21,779 25,841 Total governmental activities expenses442,464$ 434,541$ 437,075$ 442,985 461,707 463,645 473,055 476,004 455,707 433,177 Business‐type activities: Water and Sewer122,858$ 112,643$ 114,041$ 102,642 104,333 103,272 90,042 85,503 89,908 77,049 Solid Waste36,411 33,787 32,760 29,618 28,000 27,416 30,774 30,024 32,033 32,920 Airport Authority4,771 3,764 4,439 4,601 4,458 4,382 3,895 5,082 4,296 3,978 Mass Transit10,416 10,306 10,111 9,925 10,187 9,617 8,974 9,419 7,761 6,000 Emergency Medical Services24,094 23,208 21,545 21,792 22,657 23,073 22,478 22,935 22,026 17,470 Total business‐type activities expenses198,550$ 183,708$ 182,896$ 168,578 169,635 167,760 156,163 152,963 156,024 137,417 Total primary government expenses641,014$ 618,249$ 619,971$ 611,563$ 631,342$ 631,405$ 629,218$ 628,967$ 611,731$ 570,594$ (unaudited)Fiscal YearCOLLIER COUNTY, FLORIDACHANGE IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)(amounts expressed in thousands)155 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Program RevenuesGovernmental activities: Charges for services: General government34,240$ 34,662$ 36,080$ 31,388$ 33,919$ 29,281$ 32,257$ 36,468$ 46,380$ 47,178$ Public safety25,227 21,765 19,735 16,743 15,554 16,385 11,940 12,545 14,293 20,547 Transportation1,094 959 1,045 880 715 829 3,101 3,936 1,902 1,733 Culture and recreation8,685 7,943 8,416 9,126 9,093 8,267 9,830 8,429 7,494 5,878 Other activities4,237 2,661 3,667 4,941 2,296 1,557 1,620 7,541 2,395 2,938 Operating Grants and Contributions35,521 31,444 20,921 22,892 19,503 31,884 21,948 20,202 27,309 43,062 Capital Grants and Contributions29,986 28,945 28,280 20,279 19,347 25,762 24,867 52,303 122,327 99,068 Total governmental activities program revenues 138,990 128,379 118,144 106,249 100,427 113,965 105,563 141,424 222,100 220,404 Business‐type activities: Charges for services: Water and Sewer116,645 107,924 109,176 103,042 105,858 101,062 104,927 100,030 92,091 81,088 Solid Waste39,121 35,368 34,585 34,275 33,769 33,568 32,922 36,495 33,864 33,713 Airport Authority3,350 2,589 3,021 2,805 2,938 2,519 2,353 3,547 2,860 2,459 Mass Transit1,719 1,641 1,450 1,360 1,290 1,145 1,101 1,074 1,153 814 Emergency Medical Services12,327 9,922 10,335 10,249 8,980 10,759 9,114 8,941 9,544 9,255 Operating Grants and Contributions5,142 3,077 3,914 2,948 4,378 4,448 3,235 4,393 2,657 3,138 Capital Grants and Contributions21,165 30,662 24,953 17,818 14,307 10,385 18,147 23,333 32,647 36,496 Total business‐type activities program revenues199,469 191,183 187,434 172,497 171,520 163,886 171,799 177,813 174,816 166,963 Total primary government program revenues 338,459 319,562 305,578 278,746 271,947 277,851 277,362 319,237 396,916 387,367 Net (expense)/revenue:Governmental activities(303,474) (306,162) (318,931) (336,736) (361,280) (349,680) (367,492) (334,580) (233,607) (212,773) Business‐type activities919 7,475 4,538 3,919 1,885 (3,874) 15,636 24,850 18,792 29,546 Total primary government net expense(302,555)$ (298,687)$ (314,393)$ (332,817)$ (359,395)$ (353,554)$ (351,856)$ (309,730)$ (214,815)$ (183,227)$ LAST TEN FISCAL YEARS (CONTINUED)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDAFiscal Year(unaudited)(amounts expressed in thousands)(accrual basis of accounting)156 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006General Revenues and Other Changes in Net PositionGovernmental Activities: Taxes: Property taxes259,779$ 244,404$ 249,352$ 248,232$ 261,630$ 299,389$ 313,290$ 327,245$ 345,054$ 293,240$ Gas taxes19,547 18,556 18,229 18,525 18,311 18,415 18,456 18,860 19,598 20,028 Sales taxes38,573 35,786 32,168 29,713 28,364 26,927 26,779 30,004 32,568 34,671 Tourist taxes21,188 19,137 16,183 14,898 13,884 12,857 12,345 14,796 14,228 13,629 Other taxes7,322 7,840 9,403 9,997 10,155 10,039 12,241 4,051 8,754 9,142 State revenue sharing10,589 9,657 8,792 8,233 8,310 7,854 7,927 8,976 9,652 9,410 Interest income5,069 2,599 1,496 2,430 3,888 4,665 11,455 33,730 48,931 36,388 Miscellaneous17,510 13,333 9,063 7,397 11,498 8,022 12,066 10,642 8,223 10,261 Special item ‐ registry bond ‐ ‐ ‐ ‐ ‐ ‐ 3,239 (3,288) ‐ ‐ Transfers, net(14,192) (13,185) (13,912) (14,447) (13,117) (11,259) (12,596) (28,348) (15,126) (13,229) Total governmental activities365,385$ 338,127$ 330,774$ 324,978 342,923 376,909 405,202 416,668 471,882 413,540 Business‐type Activities: Interest income2,209 1,301 712 1,106 1,609 1,569 2,395 5,716 8,246 3,815 Miscellaneous94 68 154 82 96 88 551 77 620 ‐ Transfers, net14,192 13,184 13,912 14,447 13,117 11,259 12,596 28,348 15,126 13,229 Total business‐type activities16,495 14,553 14,778 15,635 14,822 12,916 15,542 34,141 23,992 17,044 Total primary government381,880$ 352,680$ 345,552$ 340,613$ 357,745$ 389,825$ 420,744$ 450,809$ 495,874$ 430,584$ Change in Net PositionGovernmental activities61,911$ 31,965$ 11,843$ (11,758)$ (18,357)$ 27,229$ 37,710$ 82,088$ 238,275$ 200,767$ Business‐type activities17,414 22,028 19,316 19,554 16,707 9,042 31,178 58,991 42,784 46,590 Total primary government79,325$ 53,993$ 31,159$ 7,796$ (1,650)$ 36,271$ 68,888$ 141,079$ 281,059$ 247,357$ Fiscal Year(unaudited)LAST TEN FISCAL YEARS (CONTINUED)(amounts expressed in thousands)(accrual basis of accounting)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDA157 Fiscal Property Gas Sales Tourist OtherYear Tax Tax Tax Tax Taxes (1) Total2006 293,240 20,028 34,671 13,629 9,142 370,710 2007 345,054 19,598 32,568 14,228 8,754 420,202 2008 327,245 18,860 30,004 14,796 4,051 394,956 2009 313,290 18,456 26,779 12,345 12,241 383,111 2010 299,389 18,415 26,927 12,857 10,039 367,627 2011 261,630 18,311 28,364 13,884 10,155 332,344 2012 248,232 18,525 29,713 14,898 9,997 321,365 2013 249,352 18,229 32,168 16,183 9,403 325,335 2014 244,404 18,556 35,786 19,137 7,840 325,723 2015259,779 19,547 38,573 21,188 7,322 346,409 (1)(amounts expressed in thousands)COLLIER COUNTY, FLORIDAGOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCELAST TEN FISCAL YEARS(unaudited) Pursuant to the Uniform Accounting System direction from the State of Florida, the Communications Services Tax was shown with fees, fines and charges for services for fiscal year 2008, this changed in 2009. 158 2009 2008 2007 2006General fund Reserved8,962$ 6,602$ 3,706$ 963$ Unreserved38,924 61,953 77,619 65,938 Total general fund47,886$ 68,555$ 81,325$ 66,901$ All other governmental funds Reserved105,991$ 142,728$ 294,512$ 197,303$ Unreserved, reported in: Special revenue funds114,208 128,966 124,213 117,489 Debt service funds1,587 1,951 2,621 5,634 Capital projects funds140,544 160,736 107,888 258,851 Total all other governmental funds362,330$ 434,381$ 529,234$ 579,277$ 2015 2014 2013 2012 2011 2010General fund (1) Nonspendable3,546$ 19,843$ 15,744$ 12,914$ 11,805$ 9,460$ Restricted345 125 96 110 ‐ ‐ Committed‐ ‐ ‐ ‐ ‐ ‐ Assigned1,299 850 813 952 1,114 2,182 Unassigned55,002 57,781 56,497 57,091 54,459 59,705 Total general fund60,192$ 78,599$ 73,150$ 71,067$ 67,378$ 71,347$ All other governmental funds Nonspendable3,112$ 53,544$ 46,049$ ‐$ ‐$ 107,626$ Restricted293,281 242,981 223,700 209,352 229,546 232,699 Committed25,663 27,349 29,810 47,406 48,445 48,764 Assigned30,800 28,391 36,364 80,771 79,556 34,215 Unassigned(514) (62,085) (55,212) (48,944) (40,258) 23,192 Total all other governmental funds 352,342$ 290,180$ 280,711$ 288,585$ 317,289$ 446,496$ As part of the implementation, the governmental fund balances for Fiscal Year 2010 were re‐classified.(1) In Fiscal Year 2011, the County implemented GASB 54 under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned. COLLIER COUNTY, FLORIDAFUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)(amounts expressed in thousands)(unaudited)Fiscal Year159 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Revenues:Taxes300,341$ 282,315$ 285,765$ 284,124$ 296,640$ 333,554$ 348,780$ 357,656$ 380,983$ 327,605$ Licenses, permits and impact fees51,319 40,631 35,168 30,436 23,695 28,920 25,950 54,052 100,329 96,335 Intergovernmental92,818 89,392 83,667 79,402 74,453 86,445 69,883 77,452 93,186 113,128 Charges for services37,172 35,149 32,435 30,739 27,855 27,122 35,928 40,699 46,127 43,083 Fines and forfeitures2,866 3,252 3,712 4,205 3,882 5,730 5,916 3,786 4,081 4,835 Interest income4,606 2,393 1,406 2,197 3,602 4,306 11,256 33,580 48,262 36,182 Special assessments3,132 2,922 2,924 3,035 2,725 2,848 2,853 2,942 3,240 1,264 Miscellaneous 16,063 11,553 4,833 4,664 10,565 6,380 11,344 10,667 7,337 9,074 Total revenues508,317 467,607 449,910 438,802 443,417 495,305 511,910 580,834 683,545 631,506 Expenditures:Current: General government78,147 73,739 75,725 73,812 79,499 82,409 95,689 96,898 96,483 83,821 Public safety167,788 163,169 153,566 151,858 160,890 165,017 168,592 175,743 168,602 177,933 Physical environment16,157 11,276 13,790 22,870 14,251 9,974 10,608 9,314 11,760 9,799 Transportation36,992 38,789 37,170 42,176 50,741 43,677 41,171 48,253 39,105 33,735 Economic environment9,159 9,265 14,436 14,393 7,841 11,122 12,125 12,619 10,241 4,719 Human services13,151 12,367 12,254 10,988 13,075 12,116 11,277 12,855 12,237 11,819 Culture and recreation37,523 34,114 33,744 34,253 35,745 37,569 37,212 36,456 35,325 29,172 Debt service: Principal20,039 18,510 25,125 31,602 36,493 34,274 48,085 43,080 36,144 20,977 Interest13,555 14,177 17,565 18,149 20,933 20,340 21,498 21,816 22,407 22,533 Payment to refunding bond escrow‐ 2,086 132 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other fiscal charges21 173 2,165 1,082 434 891 116 165 61 36 Capital outlay62,186 63,613 61,278 49,406 38,726 69,809 176,681 285,809 290,581 255,569 Total expenditures454,718 441,278 446,950 450,589 458,628 487,198 623,054 743,008 722,946 650,113 Excess (deficit) of revenues over (under) expenditures53,599 26,329 2,960 (11,787) (15,211) 8,107 (111,144) (162,174) (39,401) (18,607) Fiscal Year(amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)160 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Other financing sources (uses): Bonds issued‐$ 89,780$ 73,805$ 131,525$ 24,620$ 59,895$ 13,244$ 6,215$ ‐$ ‐$ Premiums on bonds issued‐ ‐ 2,082 17,192 2,050 844 ‐ 31 ‐ ‐ Payment to refunding escrow‐ (89,622) (73,747) (150,550) (26,593) (59,893) ‐ ‐ (4,500) ‐ Capital leases1,915 ‐ 236 ‐ ‐ ‐ ‐ ‐ 1,048 Loans issued‐ ‐ ‐ ‐ ‐ 13,500 69,391 22,390 40,466 Sale of capital assets595 314 233 313 70 248 301 245 365 940 Insurance proceeds379 316 300 270 384 310 753 208 885 792 Transfers in196,026 97,854 90,637 91,524 107,167 105,394 143,275 144,824 166,113 154,580 Transfers out(208,760) (110,052) (102,061) (103,738) (118,037) (114,905) (155,888) (163,075) (181,471) (168,006) Total other financing sources (uses)(9,845) (11,410) (8,751) (13,228) (10,339) (8,107) 15,185 57,839 3,782 29,820 Special item ‐ registry bond ‐ ‐ ‐ ‐ ‐ ‐ 3,239 (3,288) ‐ ‐ Net change in fund balances43,754$ 14,919$ (5,791)$ (25,015)$ (25,550)$ ‐$ (92,720)$ (107,623)$ (35,619)$ 11,213$ Debt service as a percentage of noncapital expenditures8.56% 9.25% 11.66% 12.67% 13.78% 13.30% 15.61% 14.23% 13.56% 11.04%Fiscal Year(amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS (CONTINUED)(modified accrual basis of accounting)161 Total Estimated Assessed Fiscal YearCentrally Less: Total Taxable Direct ActualValue1 as aEnded Residential Personal Assessed Tax Assessed Tax Taxable Percentage of September 30 Property Property Property Exempt Value Rate Value Actual Value200666,375,040 1,956,646 143 6,890,007 61,441,822 4.9433 68,331,829 100%200782,909,061 2,156,726 202 8,023,791 77,042,198 4.6486 85,065,989 100%200888,819,491 2,321,048 226 8,575,874 82,564,891 4.1064 91,140,765 100%200986,949,935 2,430,996 202 10,718,166 78,662,967 4.1246 89,381,133 100%201077,359,174 2,444,323 202 9,826,950 69,976,749 4.4236 79,803,699 100%201167,947,039 2,259,654 171 8,770,667 61,436,197 4.4151 70,206,864 100%201264,464,592 2,248,702 187 8,510,911 58,202,570 4.4149 66,713,481 100%201364,723,621 2,240,098 184 8,471,142 58,492,761 4.4126 66,963,903 100%201466,977,907 2,198,734 152 8,539,021 60,637,772 4.1592 69,176,793 100%201571,149,974 2,186,145 195 8,739,269 64,597,045 4.1582 73,336,314 100%Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1.Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year.1The basis of assessed value required by the state is 100% of actual value including tax exemptions.Source: Property Appraiser Recapitulation Report COLLIER COUNTY, FLORIDAASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)162 COLLIER COUNTY, FLORIDAPROPERTY TAX RATES ‐ ALL DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS(unaudited)Collier CountySpecial DebtCountyFiscal General Revenue ServiceSchool IndependentYear Fund Funds Funds Total District Districts Total2006 3.8772 0.9161 0.1500 4.9433 5.9730 1.3423 12.2586 2007 3.5790 0.8470 0.2226 4.6486 5.5250 1.3403 11.5139 2008 3.1469 0.7362 0.2233 4.1064 5.3510 1.2792 10.7366 2009 3.1469 0.7528 0.2249 4.1246 4.9090 1.2784 10.3120 2010 3.5645 0.7225 0.1366 4.4236 5.2390 1.3243 10.9869 2011 3.5645 0.6926 0.1580 4.4151 5.6990 1.3299 11.4440 2012 3.5645 0.7627 0.0877 4.4149 5.5270 1.2202 11.1621 2013 3.5645 0.7555 0.0926 4.4126 5.5760 1.2395 11.2281 2014 3.5645 0.5873 0.0074 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 4.1582 5.5800 1.1853 10.9235 Sources: Property Appraiser Recapitulation Report Collier County 2013 Annual BudgetBasis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year.Other163 PropertyPercent ofPropertyPercent ofTaxesTotal TaxesTotal Owner/TaxpayerLevied Rank Taxes LeviedLevied Rank Taxes LeviedFlorida Power & Light Company2,772,355$ 1 0.36%2,295,676$ 1 0.29%HHR Naples LLC1,623,995 2 0.21%‐‐ Moorings, Inc The1,146,311 3 0.15%849,977 7 0.11%1Marco Hotel LLC 1,070,714 4 0.14%‐‐ Lee County Electric Co‐Op Inc908,838 5 0.12%‐‐ Mercato LLP819,225 6 0.11%‐‐ 2Century Link 800,795 7 0.10%‐‐ Wal‐Mart Stores East LP793,290 8 0.10%‐‐ Coastland Center LLC782,185 9 0.10%‐‐ Naples HMA, Inc.752,471 10 0.08%‐‐ HMC BN LTD Partnership‐‐ 1,774,333 2 0.23%Sprint‐Florida Incorporated‐‐ 1,739,841 3 0.22%City National Bank of Miami‐‐ 1,061,066 4 0.14%Coastland Center Joint Venture‐‐ 992,480 5 0.13%WCI Communities, Inc.‐‐ 873,064 60.11%CDC Land Investments, Inc.‐‐ 779,601 8 0.10%CC‐Naples Inc‐‐ 765,967 9 0.10%Gerry, Sandra‐‐ 702,607 10 0.09%Total11,470,179$ 1.47%11,834,612$ 1.52%Total Property Taxes Levied 778,888,377$ 782,222,053$ Amounts for taxpayers with similar names have not been combined. Source: Property Appraiser's taxpayer listing in order of taxes levied.Property Appraiser Recapitulation Report.1Marco Hotel was City National Bank of Miami in 20062Century Link was Sprint in 200620152006COLLIER COUNTY, FLORIDAPRINCIPAL TAXPAYERS COUNTY‐WIDE2015 TAX ROLL(unaudited)164 Fiscal Year Total TaxEnded Levy for Collections inSeptember 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy2006 307,068 293,129 95.5% 109 293,238 95.5%2007 362,568 344,945 95.1% 1,522 346,467 95.6%2008 343,906 325,722 94.7% 1,191 326,913 95.1%2009 329,070 312,096 94.8% 2,546 314,642 95.6%2010 314,176 297,953 94.8% 1,355 299,308 95.3%2011 275,704 260,961 94.7% 482 261,443 94.8%2012 261,137 247,749 94.9% 542 248,291 95.1%2013 262,037 248,648 94.9% 1,197 249,845 95.3%2014 255,354 243,137 95.2%615 243,752 95.5%2015271,893 259,121 95.3%‐ 259,121 95.3%Source: Tax Collector Annual ReportFiscal Year of the Levy Total Collections to DateCOLLIER COUNTY, FLORIDAPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS(amounts expressed in thousands)Collected within the(unaudited)165 GeneralLoans andLoans andTotal PercentageFiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal PerYearBonds, net2Bonds, net2Payable LeasesBonds, net2Payable Leases GovernmentIncome1Capita12006 31,344 446,061 51,546 1,029 55,404 124,629 ‐ 710,013 5.59% 2,395 2007 27,342 425,233 57,331 897 163,286 106,932 68 781,089 5.13% 2,539 2008 29,100 409,043 103,461 752 158,709 103,903 618 805,586 4.48% 2,574 2009 37,700 392,124 89,590 599 153,973 106,935 492 781,413 3.94% 2,493 2010 29,854 435,590 19,690 439 148,782 106,509 636 741,500 3.76% 2,352 2011 14,684 415,855 16,914 269 143,992 99,517 387 691,618 3.62%2,174 2012 9,455 391,123 10,224 412 138,983 92,438 175 642,810 3.31% 1,962 2013 4,173 373,862 7,923 323 106,565 111,786 40 604,672 3.01% 1,818 2014 3,780 368,107 7,081 230 95,570 113,013 1,222 589,003 2.67% 1,734 2015 3,369 348,277 6,401 1,519 89,690 104,475 1,074 554,805 2.15% 1,588 1See the Schedule of Demographic and Economic Statistics for personal income and population data.2For fiscal year 2014, bonds are shown net of bond premiums only.Governmental Activities Business‐type ActivitiesCOLLIER COUNTY, FLORIDARATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)166 Percentage ofEstimatedGeneral Less: Amounts Actual TaxableFiscal Obligation Available in DebtValue1of PerYear Bonds Service Fund Total PropertyCapita2200629,530,000 22,576 29,507,424 0.043%90 200725,815,000 4,312 25,810,688 0.030%77 200827,830,000 374,496 27,455,504 0.030%82 200936,719,204 451,641 36,267,563 0.041%109 201029,161,925 496,997 28,664,928 0.036%86 201114,280,000 401,748 13,878,252 0.020%43 20129,340,000 858,621 8,481,379 0.013%26 20134,155,000 446,841 3,708,159 0.006%11 20143,765,000 1,179,024 2,585,976 0.005%8 20153,355,000 1,069,576 2,285,424 0.005%7 1See 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.COLLIER COUNTY, FLORIDARATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS(unaudited)167 The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.Estimated EstimatedPercentage Share of Debt Applicable Based OverlappingOutstanding on Population (1) DebtDirect Debt (2): Limited General Obligation Bonds and Notes Payable (3)3,760,030$ 100.00% 3,760,030$ Gas Tax Bonds (3)115,298,994 100.00% 115,298,994 Special Obligation Bonds (3)219,433,625 100.00% 219,433,625 Capital Leases (3)1,519,495 100.00% 1,519,495 Notes Payable ‐ CRA Taxable6,009,577 100.00% 6,009,577 Subtotal, Direct Debt346,021,721 346,021,721 Overlapping Debt: N/A‐ 0.00%‐ Underlying Debt: City of Naples (4)10,068,000 5.65% 569,307 City of Marco Island (5)13,836,671 4.75% 657,801 City of Everglades (6)‐ 0.12%‐ Subtotal, Underlying Debt23,904,671 1,227,108 Total Direct, Overlapping and Underlying Debt369,926,392$ 347,248,829$ (1) Population numbers obtained from www.freida.labormarketinfo.com.(2) Outstanding debt amounts do not include bond premiums.(3) Totals consist of more than one issuance.(4) Governmental activities debt outstanding amount obtained from the City of Naples.(5) Governmental activities debt outstanding amount obtained from the City of Marco Island.(unaudited)(unaudited)COLLIER COUNTY, FLORIDADIRECT, OVERLAPPING AND UNDERLYING GOVERNMENTAL ACTIVITIES DEBTAS OF SEPTEMBER 30, 2015LEGAL DEBT MARGIN INFORMATIONAS OF SEPTEMBER 30, 2015168 LegallySales Gas AvailableFiscal Tax Tax Non‐Ad ValoremYear Collections Principal Interest Coverage Collections Principal Interest Coverage Collections(5) Principal Interest Coverage2006 34,671 6,665 12,690 1.79 20,029 6,490 8,091 1.37‐ ‐ ‐ N/A200732,568 9,315 11,059 1.60 19,598 6,305 8,274 1.34‐ ‐ ‐ N/A200830,004 8,840 10,547 1.55 18,860 6,490 8,089 1.29‐ ‐ ‐ N/A200926,779 9,205 10,235 1.38 18,456 6,660 7,922 1.27‐ ‐ ‐ N/A201026,927 9,450 9,958 1.39 18,415 6,935 7,645 1.26‐ ‐ ‐ N/A201128,364 9,760 8,978 1.51 18,312 7,185 7,399 1.2676,416 1,545 2,597 18.45201229,713 7,560 5,656 2.25 18,525 7,505 7,077 1.2782,866 4,265 4,265 9.71201332,168 ‐ 3,162 10.17 18,229 7,855 6,453 1.2786,640 9,695 7,249 5.11201435,786 ‐ ‐ N/A 18,556 8,040 4,018 1.5491,043 9,145 9,674 4.84201538,573 ‐ ‐ N/A 19,547 9,440 3,697 1.49102,375 8,885 9,426 5.59Water/ Sewer Less: NetFiscal Charges Operating AvailableYear and Other(1) Expenses(2) Revenue Principal Interest Coverage(3)200684,262 49,563 34,699 4,455 2,833 4.76200798,140 57,669 40,471 4,595 5,436 4.032008105,416 49,707 55,709 4,745 7,527 4.542009107,127 49,766 57,361 4,905 7,358 4.682010101,830 50,893 50,937 5,274 6,843 4.202011106,839 60,107 46,732 4,969 6,711 4.002012104,164 58,155 46,009 5,189 6,494 3.942013105,682 68,916 36,766 5,422 6,268 3.152014109,514 69,710 39,804 5,967 3,986 4.002015118,066 74,344 43,722 6,073 3,639 4.50(1) Operating revenues plus other income; gain on disposal of assets and investment market value, capital grants and contributions and transfers in are not included.(2) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets and investment market value, interest expense and transfers out are not included.(3) Net available revenue divided by total bonded debt service requirements for the County Water and Sewer District.(4) Special Obligation Bonds were first issued in FY‐2010, debt service payments commenced in FY‐2011.(5) The revenues that comprise the legally available non‐ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees. Governmental Activities:Debt ServiceDebt ServiceCOLLIER COUNTY, FLORIDAPLEDGED‐REVENUE COVERAGELAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)Sales Tax BondsDebt ServiceGas Tax Bonds Special Obligation Bonds(4)Debt ServiceBusiness‐type Activities:Water and Sewer Revenue Bonds169 Per CapitaFiscal Personal Personal Median School UnemploymentYear Population(1) Income(1) Income(1) Age(2) Enrollment(3) Rate(4)2006 326,658 12,711,343,000 42,846 44.7 43,288 2.7%2007 333,858 15,236,905,000 49,492 44.5 43,186 3.5%2008 332,854 17,990,169,000 57,446 44.8 42,721 5.5%2009 333,032 19,846,737,000 63,276 45.1 42,534 10.0%2010 331,800 19,739,453,000 62,559 45.2 42,716 12.2%2011 321,520 19,127,928,000 60,049 45.9 42,921 11.4%2012 323,785 19,446,631,000 59,264 46.9 43,238 9.3%2013 329,849 20,075,468,000 60,391 47.1 43,789 7.2%2014 339,642 22,033,344,000 64,872 47.4 44,415 6.3%2015 348,777 25,763,656,000 73,869 47.5 45,228 5.2%Sources: (1) www.bea.gov (2) Florida Statistical Abstract (Table 1.51) (3) Collier County School Board, based on full time equivalent enrollment (4) www.floridajobs.org(unaudited)COLLIER COUNTY, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARS170 Percent of Percent ofTotal County Total CountyEmployer Employees Rank Employment Employees Rank EmploymentCollier County Public Schools 5,280 1 4.29% 5,000 1 4.62%NCH Healthcare System 4,000 2 3.25% 3,500 2 3.24%Publix Supermarkets 2,805 3 2.28% 2,221 5 2.05%Collier County Government (excl. Sheriff) 2,137 4 1.74% 2,364 4 2.19%Arthex, Inc 1,709 5 1.39%‐ ‐ Collier County Sheriff's Office 1,397 6 1.13% 1,100 7 1.02%Ritz Carlton Hotel 1,100 7 0.89% 1,500 6 1.39%Country Club of Naples 1,050 8 0.85%‐ ‐ Seminole Casino ‐ Immokalee 875 9 0.70%‐ ‐ Marriott Corporation775 10 0.63%843 80.78%Employee Professionals‐ ‐ 3,394 33.14%Naples Grande Beach Resort (Registry Resort)‐ ‐ 830 90.77%Cleveland Clinic‐ ‐ 790 10 0.73%Other employers102,054 82.85%86,577 80.07% Totals123,182 100.00%108,119 100.00%Sources:Southwest Florida Economic Development AllianceCollier County Public SchoolsNCH Healthcare SystemPublix Corporate OfficeArthrex, Inc.2016 Collier County Budget BookCOLLIER COUNTY, FLORIDAPRINCIPAL EMPLOYERS(unaudited)20152006171 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Function:General government 1,217 1,216 1,203 1,222 1,219 1,252 1,342 1,398 1,394 1,342 Public safety1,096 1,072 1,061 1,061 1,062 1,053 1,064 1,085 1,103 1,027 Physical environment69 67 67 69 66 66 69 74 77 76 Transportation192 187 187 199 213 234 257 281 280 280 Economic environment27 28 26 28 27 22 22 20 19 18 Human services56 53 51 50 50 54 55 56 61 59 Culture and recreation298 294 289 293 293 308 328 363 379 371 Water and Sewer342 340 342 344 344 335 335 358 346 327 Solid Waste27 28 29 27 27 27 27 27 27 27 Emergency Medical Services193 172 172 172 172 183 185 201 206 206 Airport Authority14 14 16 16 16 16 16 15 15 14 Collier Area Transit3 3 3 3 1 1 1 1 1 ‐ Total3,534 3,474 3,446 3,484 3,490 3,551 3,701 3,879 3,908 3,747 (1) Includes the Board of County Commissioners and the Constitutional OfficersCOLLIER COUNTY, FLORIDABUDGETED FULL‐TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1)LAST TEN FISCAL YEARS(unaudited)Fiscal Year172 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Function:Police:Physical arrests 9,347 11,277 11,277 11,297 20,180 13,310 15,671 20,226 22,028 25,657 Parking violations 931 964 1,182 1,175 1,479 1,283 1,297 843 1,753 2,124 Traffic violations 16,355 19,868 22,211 19,237 19,680 22,051 28,308 49,831 64,372 58,242 Fire:Fires reported 82 37 52 46 468 498 533 586 590 654 Emergency responses (exclude fires) 1,093 1,080 1,024 764 569 825 760 756 743 1,058 Number of calls answered1,175 1,117 1,076 810 1,037 1,323 1,293 1,342 1,333 1,712 Transportation:Collier Area Transit ridership1,177,029 1,181,530 1,361,294 1,207,866 1,154,702 1,064,910 1,109,710 1,166,358 1,180,147 1,052,536 Street resurfacing (lane miles)348078 142 131 85 97 52 44 47 Culture and recreation:Beach parking stickers issued134,051 181,878 122,415 114,778 312,144 98,093 132,218 80,542 76,344 54,074 Library circulation2,302,017 2,578,588 2,578,589 2,768,648 2,760,427 2,969,238 3,034,439 3,000,394 2,916,523 2,722,539 Water:New connections2,204 1,878 1,417 1,189 921 909 704 553 1,593 1,897 Wastewater:Average daily sewage treatment 17,090,074 17,150,000 16,954,000 15,834,000 14,747,000 14,326,000 13,769,205 15,558,000 15,583,055 17,310,468 (thousands of gallons)Sources:Police‐Collier County Sheriff's DepartmentFire‐Collier County Fire Control DistrictTransportation‐Collier County Alternative Transportation DepartmentTransportation‐Collier County Growth Management‐Road and BridgeCulture and Recreation‐Collier County Parks and Recreation DepartmentCulture and Recreation‐Collier County Public LibraryWater‐Collier County Utility BillingWastewater‐Collier County Wastewater DepartmentFiscal YearCOLLIER COUNTY, FLORIDAOPERATING INDICATORS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)173 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Function:Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units276 276 275 275 275 275 275 275 275 272 Fire: Fire stations4 4 3 3 3 3 3 2 2 2 Highways and streets: Streets (miles)1,149 1,151 1,184 1,184 1,184 1,184 1,184 1,184 1,147 1,147 Streetlights4,958 4,958 4,868 4,781 4,759 4,701 4,485 3,767 3,987 3,620 Traffic signals360 370 353 297 295 283 283 224 216 200 Culture and recreation: Parks acreage1,521 1,521 1,521 1,520 1,511 1,473 1,473 1,440 1,436 1,527 Parks61 61 61 61 60 59 59 56 55 47 Swimming pools8 8 8 8 8 8 8 7 7 7 Tennis courts45 45 45 45 45 45 45 45 45 45 Community centers9 8 8 8 8 8 8 8 8 8 Libraries10 10 10 10 10 10 10 9 9 9 Number of volumes in libraries605,408 683,237 692,229 673,131 741,389 797,823 797,978 647,484 769,717 651,592 Water: Number of customers59,443 57,548 55,878 54,190 53,181 51,796 51,499 51,136 59,257 57,664 Water mains (miles)986 925 888 888 886 886 886 870 860 682 Maximum daily capacity (per 1,000 gallons) 31,376,000 30,460,000 30,120,000 29,988,000 29,616,000 28,368,000 33,339,865 30,956,261 36,116,725 34,673,000 Wastewater: Sanitary sewers (miles)1,028 1,030 1,081 1,116 1,115 1,095 1,081 1,053 871 798 Primary and secondary drainage facilities306 306 305 305 303 303 303 303 303 303 Fiscal YearCOLLIER COUNTY, FLORIDACAPITAL ASSET STATISTICS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)174 SINGLE AUDIT/FEDERAL AND STATE SCHEDULE OF FINANCIAL ASSISTANCE The Single Audit/Federal and State schedule of financial assistance section presents Grants compliance reports filed by Collier County with Federal government and State government, respectively. THIS PAGE INTENTIONALLY LEFT BLANK CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the 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, 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 (County), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated May 10, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2015-001 to be a material weakness. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2015-002 to be a significant deficiency. 177 Honorable Board of County Commissioners Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. County’s Response to Findings The County’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs in which the findings are reported. The County’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 178 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida’s (County) compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement and in Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the County’s major federal programs and state projects for the year ended September 30, 2015. The County’s major federal programs and state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133 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 on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County’s compliance. 179 Honorable Board of County Commissioners Collier County, Florida Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2015. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as item 2015-003. Our opinion on each major federal program is not modified with respect to these matters. The County’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs was not subjected to the auditing procedures Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of 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 was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2015-003 to be a material weakness. 180 Honorable Board of County Commissioners Collier County, Florida A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2015-004, 2015-005, 2015-006 to be significant deficiencies. The County’s responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The County’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of OMB Circular A-133 and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 181 CFDA #/Transfers to CSFA #Grant/Contract Number Expenditures Subrecipients Department of Agriculture Indirect Programs: Florida Department of Agriculture and Consumer Services: Summer Food Service Program for Children 10.559 04‐0804 88,824$ ‐$ Cooperative Forestry Assistance 10.664 Collier County 1,050 ‐ Total Department of Agriculture 89,874 ‐ Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: Community Development Block Grants / Entitlement Grants 14.218 B‐04‐UC‐12‐0016 67,246 ‐ Community Development Block Grants / Entitlement Grants 14.218 B‐05‐UC‐12‐0016 1,801 ‐ Community Development Block Grants / Entitlement Grants 14.218 B‐08‐UN‐12‐0003 69,321 ‐ Community Development Block Grants / Entitlement Grants 14.218 B‐11‐UC‐12‐0016 190,596 178,442 Community Development Block Grants / Entitlement Grants 14.218 B‐11‐UN‐12‐0003 63,863 ‐ Community Development Block Grants / Entitlement Grants 14.218 B‐12‐UC‐12‐0016 106,539 95,217 Community Development Block Grants / Entitlement Grants 14.218 B‐13‐UC‐12‐0016 783,963 756,713 Community Development Block Grants / Entitlement Grants 14.218 B‐14‐UC‐12‐0016 866,434 423,987 Total CFDA 2,149,763 1,454,359 Emergency Solutions Grant Program 14.231 E‐12‐UC‐12‐0024E 2,364 2,364 Emergency Solutions Grant Program 14.231 E‐13‐UC‐12‐0024 80,706 64,847 Emergency Solutions Grant Program 14.231 E‐14‐UC‐12‐0024 64,851 52,593 Total CFDA 147,921 119,804 Home Investment Partnerships Program 14.239 M‐03‐UC‐12‐0217 19,760 19,760 Home Investment Partnerships Program 14.239 M‐04‐UC‐12‐0217 47,660 47,660 Home Investment Partnerships Program 14.239 M‐05‐UC‐12‐0017 40,702 40,702 Home Investment Partnerships Program 14.239 M‐06‐UC‐12‐0217 92,946 92,946 Home Investment Partnerships Program 14.239 M‐07‐UC‐12‐0217 35,538 35,538 Home Investment Partnerships Program 14.239 M‐08‐UC‐12‐0217 232,374 168,957 Home Investment Partnerships Program 14.239 M‐10‐UC‐12‐0217 75,722 ‐ Home Investment Partnerships Program 14.239 M‐11‐UC‐12‐0217 43,795 43,795 Home Investment Partnerships Program 14.239 M‐13‐UC‐12‐0217 845 ‐ Home Investment Partnerships Program 14.239 M‐14‐UC‐12‐0217 61,383 ‐ Total CFDA 650,725 449,358 Indirect Programs: Florida Department of Economic Opportunity: Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 07DB‐3V‐09‐21‐01‐Z01 1,921 ‐ Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 08DB‐D3‐09‐21‐01‐A03 1,973 ‐ Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 10DB‐D4‐09‐21‐01‐K09 724,124 300,776 Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 12DB‐P5‐09‐21‐01‐K39 2,642,262 157,021 Total CFDA 3,370,280 457,797 Total Department of Housing and Urban Development 6,318,689 2,481,318 Department of the Interior Direct Programs: Office of the Secretary: Payments in Lieu of Taxes 15.226 Collier County 1,204,083 ‐ Fish and Wildlife Service: Partners for Fish and Wildlife 15.631 F14AC00709 9,994 ‐ National Wildlife Refuge Fund 15.659 Collier County 155,985 ‐ Total Department of the Interior 1,370,062 ‐ Department of Justice Direct Programs: Violence Against Women Office: Supervised Visitation, Safe Havens for Children 16.527 2009‐CW‐AX‐K011 151,529 ‐ (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE 182 CFDA #/Transfers to CSFA #Grant/Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 61,456$ ‐$ Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 180,708 ‐ Total CFDA 242,164 ‐ Criminal Division: Equitable Sharing Program 16.922 Collier County Sheriff 65,274 ‐ Bureau of Justice Assistance: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014‐DJ‐BX‐0305 37,757 ‐ Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015‐JAGC‐COLL‐1‐R3‐109 94,809 ‐ Total CFDA 132,566 ‐ Florida Office of the Attorney General: Crime Victim Assistance 16.575 V005‐14129 126,718 ‐ Florida Department of Children and Families ‐ Florida Coalition Against Domestic Violence: Violence Against Women Formula Grants 16.588 15‐8008‐LE‐INV 74,456 ‐ Violence Against Women Formula Grants 16.588 16‐8008‐LE‐INV 31,472 ‐ Total CFDA 105,928 ‐ Total Department of Justice 824,179 ‐ Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3‐12‐0031‐008‐2013 240,847 ‐ Airport Improvement Program 20.106 3‐12‐0142‐010‐2013 125,269 ‐ Total CFDA 366,116 ‐ Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit_Capital Investment Grants 20.500 FL‐03‐0264‐00 65,461 ‐ Federal Transit_Capital Investment Grants 20.500 FL‐04‐0033‐00 236,348 ‐ Federal Transit_Capital Investment Grants 20.500 FL‐04‐0034‐00 226,710 ‐ Federal Transit_Capital Investment Grants 20.500 FL‐04‐0047‐00 63,596 ‐ Federal Transit_Capital Investment Grants 20.500 FL‐04‐0117‐00 171,674 ‐ Total CFDA 763,789 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X699‐00 510,850 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X731‐00 25,413 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X766‐00 27,403 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X784‐00 154,435 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X816‐00 1,444,763 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X853‐00 1,009,928 ‐ Federal Transit_Formula Grants 20.507 FL‐95‐X069‐00 1,139,119 ‐ ARRA Federal Transit_Formula Grants 20.507 ARRA‐FL‐96‐X019‐00 14,970 ‐ Total CFDA 4,326,881 ‐ Bus and Bus Facilities Formula Program 20.526 FL‐34‐0004‐00 308,334 ‐ Total Federal Transit Cluster 5,399,004 ‐ Indirect Programs: Florida Department of Transportation: Highway Planning and Construction 20.205 425670‐1 / A4377 647,412 ‐ Highway Planning and Construction 20.205 429897‐1 / ARF41 306,919 ‐ Highway Planning and Construction 20.205 429899‐1 / G0258 55 ‐ Highway Planning and Construction 20.205 429900‐1 / ARR00 58 ‐ Highway Planning and Construction 20.205 430868‐1 / AR481 172,313 ‐ Highway Planning and Construction 20.205 430875‐1 / ARS55 58 ‐ Total CFDA 1,126,815 ‐ Metropolitan Transportation Planning and State and Non‐Metropolitan Planning and Research 20.505 410113‐1 / AQR14 206,777 ‐ Formula Grants for Rural Areas 20.509 410120‐1 / AQR01 404,500 ‐ (Continued) 183 CFDA #/Transfers to CSFA #Grant/Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0038 385,764$ ‐$ Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0039 10,838 ‐ Total CFDA 396,602 ‐ Total Department of Transportation 7,899,814 ‐ U.S. Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 2013‐2014‐0001 33 ‐ Help America Vote Act Requirements Payments 90.401 2014‐2015‐0001‐COL 45,417 ‐ Total U.S. Election Assistance Commission 45,450 ‐ Department of Health and Human Services Indirect Programs: Florida Department of Elder Affairs ‐ Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.14 19,536 ‐ Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.15 48,013 ‐ Total CFDA 67,549 ‐ Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.14 115,206 ‐ Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.15 370,405 ‐ Total CFDA 485,611 ‐ Nutrition Services Incentive Program 93.053 NSIP 203.14 740 ‐ Nutrition Services Incentive Program 93.053 NSIP 203.15 39,778 ‐ Total CFDA 40,518 ‐ Total Aging Cluster 593,678 ‐ National Family Caregiver Support, Title III, Part E 93.052 OAA 203.14 23,273 ‐ National Family Caregiver Support, Title III, Part E 93.052 OAA 203.15 98,666 ‐ Total CFDA 121,939 ‐ Florida Department of Revenue: Child Support Enforcement 93.563 COC11 300,590 ‐ Florida Department of State: Voting Access for Individuals with Disabilities_Grants to States 93.617 2014‐2015‐0003‐CLL 8,616 ‐ Total Department of Health and Human Services 1,024,823 ‐ Corporation for National and Community Service Direct Programs: Retired and Senior Volunteer Program 94.002 12SRSFL012 37,933 ‐ Retired and Senior Volunteer Program 94.002 15SRSFL015 8,013 ‐ Total Corporation for National and Community Service 45,946 ‐ Department of Homeland Security Indirect Programs: Florida Executive Office of the Governor: Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) 97.036 13‐DB‐73‐09‐21‐02‐530 1,979,531 ‐ Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters)97.036 13‐IS‐3S‐09‐21‐02‐571 202,178 ‐ Total CFDA 2,181,709 ‐ Emergency Management Performance Grants 97.042 15‐FG‐40‐09‐21‐01‐078 101,065 ‐ Homeland Security Grant Program 97.067 14‐DS‐L5‐09‐21‐01‐343 2,100 ‐ Homeland Security Grant Program 97.067 14‐DS‐L5‐09‐21‐23‐369 58,569 ‐ Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐02‐277 5,425 ‐ Total CFDA 66,094 ‐ Total Department of Homeland Security 2,348,868 ‐ 19,967,705$ 2,481,318$ (Continued) TOTAL EXPENDITURES OF FEDERAL AWARDS 184 CFDA #/Transfers to CSFA #Grant/Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Direct Projects: Emergency Management Programs 31.063 15‐BG‐83‐09‐21‐01‐011 74,920$ ‐$ Emergency Management Programs 31.063 16‐BG‐83‐09‐21‐01‐011 35,429 ‐ Total Florida Executive Office of the Governor 110,349 ‐ Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 154,184 ‐ Total Florida Department of Environmental Protection 154,184 ‐ Direct Projects: Local Economic Development Initiatives 40.012 SL007 721,996 ‐ Indirect Projects: Florida Sports Foundation: Enterprise Florida, Inc 40.003 Football University Nat'l Championship 16,000 ‐ Enterprise Florida, Inc 40.003 HITS Triathlon Series 3,500 ‐ Total CSFA 19,500 ‐ Florida Tourism Industry Marketing Corporation dba VISIT FLORIDA ®: Visit Florida 40.006 Naples, Marco Island, Everglades CVB 23,916 ‐ Total Florida Department of Economic Opportunity 765,412 ‐ Direct Projects: State Aid to Libraries 45.030 11‐ST‐09 63,911 ‐ State Aid to Libraries 45.030 12‐ST‐08 7,575 ‐ State Aid to Libraries 45.030 13‐ST‐08 178,047 ‐ State Aid to Libraries 45.030 14‐ST‐08 1,265 ‐ Total Florida Department of State and Secretary of State 250,798 ‐ Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership (SHIP) Program 52.901 FY 11/12 140,873 60,873 State Housing Initiatives Partnership (SHIP) Program 52.901 FY 12/13 40,000 ‐ State Housing Initiatives Partnership (SHIP) Program 52.901 FY 13/14 360,875 128,968 State Housing Initiatives Partnership (SHIP) Program 52.901 FY 14/15 106,253 1,250 Total Florida Housing Finance Corporation 648,001 191,091 Direct Projects: Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 410656‐1 / ARP71 51,662 ‐ Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 432027‐1 / 432028‐1 / ARF15 631,014 ‐ Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 432027‐1 / 432028‐1 / GO135 148,610 ‐ Total CSFA 831,286 ‐ Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 432029‐1 / ARH55 18,937 ‐ Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 432029‐1 / G0216 5,966 ‐ Total CSFA 24,903 ‐ Aviation Development Grants 55.004 430969‐1 / AR519 (4,234) ‐ Aviation Development Grants 55.004 430983‐1 / AR513 6,959 ‐ Total CSFA 2,725 ‐ Public Transit Block Grant Program 55.010 410139‐1 / AQQ16 1,025,249 ‐ Public Transit Service Development Program 55.012 432836‐1 / AQQ85 28,106 ‐ Public Transit Service Development Program 55.012 435214‐1 / ARJ84 124,028 ‐ Total CSFA 152,134 ‐ (Continued) Florida Executive Office of the Governor Florida Department of State and Secretary of State Florida Department of Transportation Florida Department of Environmental Protection Florida Department of Economic Opportunity 185 CFDA #/Transfers to CSFA #Grant/Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Transportation Regional Incentive Program (TRIP)55.026 425840‐1 / ARF43 2,144,913$ ‐$ Alligator Alley Mile Marker 63 Fire Station 55.036 435389‐1 / ARF81 2,452,707 ‐ Total Florida Department of Transportation 6,633,917 ‐ Florida Department of Children and Families Direct Projects: Public Safety, Mental Health, and Substance Abuse Local Matching Grant 60.115 LHZ46 219,256 184,423 Total Florida Department of Children and Families 219,256 184,423 Florida Department of Health Direct Projects: County Grant Awards 64.005 C3011 54,195 ‐ Total Florida Department of Health 54,195 ‐ Indirect Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.14 11,814 ‐ Home Care for the Elderly 65.001 HCE 203.15 8,939 ‐ Total CSFA 20,753 ‐ Alzheimer's Respite Services 65.004 ADI 203.14 208,061 ‐ Alzheimer's Respite Services 65.004 ADI 203.15 79,457 ‐ Total CSFA 287,518 ‐ Community Care for the Elderly 65.010 CCE 203.14 605,254 ‐ Community Care for the Elderly 65.010 CCE 203.15 154,050 ‐ Total CSFA 759,304 ‐ Total Florida Department of Elder Affairs 1,067,575 ‐ TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 9,903,687$ 375,514$ Florida Department of Elder Affairs 186 Collier County, Florida Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance Year Ended September 30, 2015 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, 2015. 2. 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. 3. Negative Figures on the Schedule of Expenditures Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial Assistance are a result of corrections which reduced expenditures in one grant and increased expenditures in another grant or funding source. Although the current expenditures on a grant may be negative, the total of all expenditures on the grant is expected to be positive over its total period of performance. 187 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part I – Summary Auditors’ Results Financial Statement Section Unmodified Yes Yes No Federal Awards Section Yes Yes Unmodified Yes CFDA Number Name of Federal Program or Cluster 14.218 Community Development Block Grants/ Entitlement Grants 15.226 16.710 20.106 Airport Improvement Program 20.509 97.036 Disaster Grants - Public Assistance 20.500, 20.507, 20.526 Federal Transit Cluster 93.044, 93.045, 93.053 Aging Cluster $599,031 Yes Type of auditors’ report issued: Internal control over financial reporting: Identification of major federal programs: Were significant deficiency(ies) identified not considered to be a material weakness(es) Type of auditors’ report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510 (a) Internal control over compliance: Material weakness(es) identified? Dollar threshold used to determine Type A Federal program Auditee qualified as low-risk auditee? Public Safety Partnership and Community Policing Grants Formula Grants for Rural Areas Material weakness(es) identified? Significant deficiencies identified not considered to be a material weakness(es) Noncompliance material to financial statements noted? Payments in Lieu of Taxes 188 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 No Yes Unmodified CSFA Number Name of State Project 40.012 55.001 Equipment Grant Program 55.010 Public Transit Block Grant Program 55.036 Alligator Alley Mile Marker 63 Fire Station 65.004 Alzheimer's Respite Services $300,000 State Financial Assistance Section Internal control over compliance: Material weakness(es) identified? Were significant deficiency(ies) identified not considered to be a material weakness(es) Type of auditors’ report issued on compliance for major projects: Identification of major State projects: Dollar threshold used to determine Type A State projects Local Economic Development Initiatives Commission for the Transportation Disadvantaged (CTD) Trip and 189 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part II - Financial Statement Findings This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements and abuse related to the financial statements for which Government Auditing Standards requires reporting in a Circular A-133 and Section 215.97, Florida Statutes, audit. 2015-001 Inventory Type of Finding: Material Weakness in Internal Control over Financial Reporting Criteria: County management is responsible for establishing and maintaining internal controls for proper recording of the County’s inventory. Condition: Inventory was not properly recorded on the County’s books for two departments within the general fund for several years. Cause: The individuals who were responsible for reporting the inventory to the Clerk’s office for proper recording on the financial statements were not familiar with the impact in regards to financial reporting. Effect: Inventory was understated in previous years with expenditures overstated in the general fund as well as the Government Wide Statement of Net Position. Recommendation: We recommend that County staff be trained to understand the reporting of inventory to the Clerk’s office for financial reporting purposes. Views of Responsible Officials and Corrective Action Plan: Staff self-reported the end of year inventory reporting omission to the Finance Department. While not properly reported, the inventory was properly tracked, controlled and accounted for. There was no evidence or indication of fraudulent activity identified. A series of trainings have been developed and held for the Administrative Service Department Directors and affected Divisions during September through November of 2015. Training topics reviewed inventory basics, external audit reviews and segregation of duties. 190 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 2015-002 Subcontractor Agreements Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria: The County must have sufficient controls over expenditures to provide reasonable assurance to ensure that costs are allowable under grant agreements and supported by adequate documentation. Such controls would extend to the contractual agreements that govern these expenditures. Condition: The County entered into an agreement with a subcontractor which included specific procurement policies to ensure any purchases were conducted in an open manner resulting in competitive pricing, proper management and oversight, accountability and efficiency, and for the prevention of waste, fraud and abuse. During the term of the agreement, the subcontractor entered into a purchase order with a vendor for over $100,000. The procurement policy requires advertisements for competitive proposals amongst several other items. Not all of the items for this particular procurement were performed by the subcontractor. Cause/Effect: The County Department did not follow establish controls in place as defined by the agreement that the County entered into with the subcontractor. Recommendation: County staff should understand and become familiar with the terms and conditions of their contractor agreements and develop tools to assist in the effective monitoring of the compliance requirements of the agreements. Views of Responsible Officials and Corrective Action Plan: Background: The subcontractor’s purchasing procedures required competition through advertisement for purchase orders above $100,000. Rather, competitive quotations were obtained due to the specialized type of systems furniture specified and to expedite the receipt of goods and assembly prior to the state grant agreement expiration date. On March 8, 2016, the Board of County Commissioners accepted the alternative procurement method, authorized payment and waived the procurement irregularities in the subcontractor’s purchasing policy. Payment in full was issued to the vendor on May 12, 2016. Collier Economic Division staff and team members familiar with the subcontract have provided training to the subcontractor during February 2016 to review the procurement process requirements and proper supporting documentation. Monitoring will continue to take place through review of pay request submittals and communications. 191 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part III - Findings and Questioned Costs – Major Federal Programs This section identifies the audit findings required to be reported by Section .501(a) of Circular A- 133 as well as any abuse findings involving federal awards that is material to a major program. 2015-003 Allowable Costs and Activities Federal Program/State Project Information Department of Justice Passed through Office of Community Oriented Policing Services CFDA 16.710 Public Safety Partnerships and Community Policing Grants Award No. 2012ULWX0008 Award No. 2013ULWX0047 Type of Finding: Material Weakness in Internal Control over Compliance Criteria The Collier County Sheriff is required to provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable in accordance with applicable cost principles. Condition The Collier County Sheriff requested reimbursement for salaries and benefits beyond the approved entry level salary per the grant agreement. Context Out of a population of 12 monthly payroll reimbursement claims, the auditor haphazardly selected a sample of 4 monthly claims for testing. 3 of the 4 monthly claims tested include revised calculations that were corrected in May of 2015. Question Costs None Cause Both the Grant Coordinator and the Assistant Finance Director misunderstood the terms of the agreement. Effect The error was corrected during the fiscal year and was not material to the program; however, had the County not detected the unallowed costs, amounts could have been material. 192 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Recommendation The Collier County Sheriff should implement continued training for the Grant Coordinator and the Assistant Finance Director related to grant compliance. Views of Responsible Officials and Corrective Action Plan When the budget for the COPS Grant was developed it included all salary funding in one category. When some of the initial claims were prepared, amounts were submitted for reimbursement which was above the entry level salaries, but the yearly allocation was not exceeded. When these differences were discovered the Grants Coordinator contacted the COPS Grantor regarding these differences. The Grantor advised to adjust the next claims. The initial claims were never questioned or declined by the Grantor. The Grant Coordinator communicated with the Grantor once the salary differences were discovered on the initial claims. Corrections were made within the grant year minimizing the potential of any questioned or disallowed costs. The Grant Coordinator and Assistant Finance Director have read and understand the terms of the Grants but will review again to ensure grant compliance. Responsible party: Andrea Marsh, Finance Director Planned completion date for corrective action plan: January 2016 2015-004 Reporting Federal Program/State Project Information Department of Justice Passed through Office of Community Oriented Policing Services CFDA 16.710 Public Safety Partnerships and Community Policing Grants Award No. 2012ULWX0008 Award No. 2013ULWX0047 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria The Collier County Sheriff should have review and approval over quarterly reports prior to submission for both performance and financial reports. Condition The same person who prepares the quarterly performance and financial reports submits said reports; thus, there is no independent review. 193 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Context Out of a population of 12 reports, the auditor haphazardly selected a sample of 4 reports (2 financial and 2 performance) and noted that all reports lacked review and approval prior to submission to the grantor. Question Costs None Cause The Grant Coordinator prepares both the Financial and Performance reports in the COPS online system. She does not provide the data to be input or data inputted to the Assistant Finance Director for review and approval prior to submission. Effect Inaccurate reporting could result in potential loss of funding. Recommendation The Collier County Sheriff should design and implement internal control policies and procedures to ensure accurate reporting through review and approval. Views of Responsible Officials and Corrective Action Plan Financial quarterly reports are a compilation of the previous three months’ claims which and are submitted online. The monthly claims are prepared by the Grants Fiscal Clerk, reviewed by the Grants Coordinator, and reviewed, approved and signed by the Assistant Finance Director. The Grants Coordinator calculates the three monthly claim totals and keys the amount into the quarterly report. The Grants Coordinator verifies that the report balances with the total from the claims for the three months. Future procedures will include the Grants Coordinator printing the screen of the information which was keyed for the report prior to submission. The Assistant Finance Director will review verifying that the total balances to the summation of all the claims for that quarter. Once verified, she will sign the printed screen prior to the report being submitted by the Grants Coordinator. The Finance Director will do a post review once each quarterly report has been submitted. Performance reports are prepared by the Grants Coordinator based on information received from the assigned Program Managers. Future procedures will include a report template which the Program Managers will complete and return to the Grants Coordinator for review. As with the online claims submissions, the Assistant Finance Director will also review the reports before final online submission by the Grants Coordinator. The Finance Director will do a post review once each quarterly report has been submitted. Responsible party: Andrea Marsh, Finance Director Planned completion date for corrective action plan: January 2016 194 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 2015-005 Eligibility Federal Program/State Project Information Department of Health and Human Services Passed through the Florida Department of Elder Affairs – Area Agency on Aging for Southwest Florida, Inc. CFDA 93.044, 93.045, 93.053 Aging Cluster Award 14/15 #HM203.14 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Only individuals whom have applied for benefits using the proper standardized forms and been properly reviewed, approved and setup in the Client Information and Registration Tracking System (CIRTS) can be provided with meals by the Aging Cluster. Condition One individual was served a total of 5 meals prior to being enrolled in the CIRTS system. Context The auditor selected 40 individuals to test and noted exceptions with one individual who was served 5 meals. Question Costs None Cause Unallowable costs were incurred due to the individual not being properly determined to be eligible. Effect Lack of controls over these expenditures could result in additional unallowable costs being charged to the grant. Recommendation We recommend that the County implement policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. 195 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Views of Responsible Officials and Corrective Action Plan While enrollment of one individual into CIRTS did not occur within the required timeframe, all requirements were completed after-the-fact within 12 days of the second meal served. As a result, the individual was determined to be eligible. Meals are provided at no charge to eligible program participants. The value of the five ineligible meals received was approximately $50. Unusual circumstances surrounding the single instance led to the oversight of filing the eligibility documentation timely. This is the only meal site that operates as a senior center and holds additional events which attracts as many as 300 individuals. As such, timely enrollment was impacted and the need to develop additional controls is warranted for this type of meal site. In the future, the following process will be implemented: 1. Only Individuals who are formally assessed and have reserved meals will be served a meal. Assessed individuals will have to reserve their meals the week before on the Reservation Form specifying which days they will be eating. 2. Each meal site will have a Daily Registration Form with all clients that have been assessed for that site. This Daily Registration Form will contain the last assessment date, and will also be used as the sign in sheet for that day. 3. Since the program has limited funding, the meal site coordinator will maintain a written waiting list for those desiring to be program participants. When assessed individuals leave or terminate the congregate meal site, the wait listed individuals will then be assessed. The individual will be added to the Daily Registration Form with the date they were assessed. 4. Daily Registration Forms will be submitted weekly to the nutrition supervisor, who will confirm that the client was enrolled at least by the third meal served to ensure that no billing occurs for an individual that has not been assessed into CIRTS within the required timeframe. 5. Corrective actions will begin on June 6, 2016. Monitoring of the corrective action will take place through the Grants Compliance Office one on one monthly meeting with CHS upper management. Responsible party: Therese Stanley, Grants Compliance Manager 196 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part IV - Findings and Questioned Costs – Major State Projects This section identifies the audit findings required to be reported under Rule 10.554(1)(l)4, Rules of the Auditor General. 2015-006 Allowable Costs Florida Department of Economic Opportunity CSFA 40.012 Local Economic Development Initiatives Award No. #SL007 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Compensation for personnel services rendered in conjunction with State awards must be documented and supported. Condition One instance was noted whereby the personnel activity report was not signed by a supervisor. Context Two months of personnel activity reports were reviewed and there was one exception. Questioned Costs None Cause/Effect The Officials over the subcontractor changed during the time of the grant, and new procedures were not put in place to transition the review of the Executive Director’s time sheet. Recommendation When supervisors change during a grant term, control policies and procedures should be updated as necessary. Views of Responsible Officials and Corrective Action Plan This was a singular occurrence during the transition of subcontractor board of director members. Subsequently, a signed timesheet by the Director was found and provided by the subcontractor to the County and forwarded to the external auditor. Collier Economic Development Division staff and team members familiar with the subcontract have provided training to the subcontractor during February 2016 to review support documentation and requirements for timesheets. A checklist template has been developed as assistance. Responsible party: Therese Stanley, Grants Compliance Manager 197 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2015 Prior - Year Findings and Questioned Costs – Finding 2014-001 Federal Program/State Project Information U.S. Department of Transportation CFDA 20.106 Airport Improvement Program Award No. 3-12-0031-010-2012, Award Year – 2012 Award No. 3-12-0142-010-2013, Award Year – 2013 U.S. Department of Homeland Security CFDA 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Award No. PA-04-FL-1785-PW-01146, Award Year - 2009 Condition Based on our testing of cash drawdowns in fiscal year 2014, there were instances of significant time lag between when the County paid for grant expenditures and the date of the related drawdowns for CFDA 20.106, the Airport Improvement Program, and CFDA 97.036, Disaster Grants- Public Assistance. Auditor Recommendation The County should implement procedures to minimize the time lag between the request for cash drawdown and the time that the disbursements are paid by the County by ensuring the County’s Office of Management and Budget (OMB) Department’s internal control protocol to target execution to draws within 30-45 days after quarter-end is being followed by all departments. Also, the County should develop policies and procedures to ensure the County immediately request reimbursement for qualifying grant expenditures incurred before the related grant agreement. Current Status: Corrective Action was taken. Finding 2014-002 Federal Program/State Project Information State of Florida, Department of Transportation CSFA 55.010 Public Transit Block Grant Award No. AQQ16, Award Year - 2012 Condition The Vendor/Contractor did not use the E-Verify system for employees hired during the County’s 2014 fiscal year. Auditor Recommendation County grant personnel should understand and become familiar with the terms and conditions of their vendor/contractor agreements and develop tools to assist in the effective monitoring of compliance requirements. Current Status: Corrective Action was taken. 198 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2015 Finding 2012-02 Federal Program/State Project Information U.S. Department of Housing and Urban Development CFDA 14.218, ARRA-14.253 CDBG – Entitlement Grants Cluster CFDA 14.228 Community Development Block Grant/State’s Program (DRI) U.S. Department of Transportation CFDA 20.205 Highway Planning and Construction (Federal-Aid Highway Program) Florida Department of Transportation CSFA 55.010 Public Transit Block Grant Program Condition Upon selecting 60 cash drawdowns, the auditor noted several instances where there was a significant time lag between when Collier County paid for grant expenditures and when the disbursement was requested for reimbursement. There was a lack of a process to minimize the time between disbursement and reimbursement request. This could adversely affect County cash flows as well as result in the grantor not reimbursing Collier County for reimbursements requested within a reasonable time frame. Auditor Recommendation The County should implement procedures that minimize the time elapsing between the request for a cash drawdown and the time that the disbursements are paid by the County. Fiscal 2013 Status Collier County’s Office of Management and Budget (OMB) Department has developed an internal control protocol to target execution of draws within 30-45 days after quarter-end unless the grantor agency contract explicitly states otherwise. Based on our testing of cash drawdowns in fiscal year 2013, it appears improvements had been made since the prior year with regard to timely reimbursement requests. However, for CFDA 20.205, we noted a drawdown that occurred on June 20, 2013 for $253,350. The initial disbursement within the time period pertaining to this drawdown was incurred 155 days prior to this reimbursement request. For CSFA 55.010, there was a 254 day time lag between the earliest invoice posting date and the actual reimbursement date. Fiscal 2014 Status Based on our testing of cash drawdowns in fiscal year 2014, it appears further improvements have been made with regard to timely reimbursement requests for the two programs noted to still have issues in fiscal year 2013, CFDA 20.205 and CSFA 55.010. However, for CSFA 55.010, auditors noted that one of the two drawdown requests tested had a 500 day time lag between the payment earliest invoice and the related drawdown request date. While some improvement was noted, we identified excessive lag times for one sample selection for CSFA 55.010. This finding is considered partially cleared. Current Status: Corrective Action was taken. 199 THIS PAGE INTENTIONALLY LEFT BLANK An independent member of Nexia International CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida We have audited the financial statements of Collier County, Florida (County) as of and for the fiscal year ended September 30, 2015, and have issued our report thereon dated May 10, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated May 10, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of prior year’s findings and recommendations are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been included in the notes to the basic financial statements. Honorable Board of County Commissioners Collier County, Florida Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the County has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the County’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the County for the fiscal year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 2 Honorable Board of County Commissioners Collier County, Florida Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 3 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Appendix A – Status of Prior Year’s Findings and Recommendations Year Ended September 30, 2015 Prior Year Findings and Recommendations Current Year Status Cleared Partially Cleared Not Cleared 2012-02 Significant Deficiency X 2014-001 Significant Deficiency X 2014-002 Significant Deficiency X 4 An independent member of Nexia International CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida’s (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund; and Section 288.8018(1), Florida Statutes, regarding funds related to the Deepwater Horizon oil spill during the year ended September 30, 2015. Management is responsible for the County's compliance with those requirements. Our responsibility is to express an opinion on the County's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. In our opinion, the County complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the County and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 THIS PAGE INTENTIONALLY LEFT BLANK ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy the following Tables were prepared for the fiscal year ended September 30, 2015. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes 258,663,300$ Governmental Impact Fees 25,430,713 Half Cent Sales Tax 38,572,787 Developmental Fees 26,293,021 State Revenue Sharing 10,084,052 5th Cent Local Option Gas Tax 5,238,931 6th Cent Local Option Gas Tax 6,921,219 Constitutional Gas Tax 4,122,525 Seventh Cent Gas Tax 1,807,291 Ninth Cent Gas Tax 1,456,775 Parks and Recreation Fees 7,538,844 Tourist Development Tax 21,188,190 Court Facilities Fees 891,401 Communications Services Tax 4,855,279 Total bondable revenues 413,064,328$ Fiscal 2015 governmental debt service requirements: Series 2005 Gas Tax Bonds Principal:1,770,000$ Interest:88,500 Series 2012 Gas Tax Bonds Principal:6,605,000 Interest:1,505,150 Series 2014 Gas Tax Bonds Principal:1,065,000 Interest:2,103,496 Series 2010 Special Obligation Bonds Principal:1,850,000 Interest:2,201,412 Series 2010B Special Obligation Bonds Principal:1,960,000 Interest:761,800 Series 2011 Special Obligation Bonds Principal:5,075,000 Interest:3,615,381 Series 2013 Special Obligation Bonds Principal:‐ Interest:2,846,975 Total fiscal 2015 governmental debt service requirements 31,447,714$ Governmental debt ratio of fiscal year 2015 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 7.6% Notes: Debt service is based upon current amortization tables for the fiscal year indicated. Debt prepayments are not included as debt service requirements. TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2015 1 Collier County Water and Sewer District: Total Sales Revenue 113,219,312$ Allowance for Funds Prudently Invested ‐ Miscellaneous Revenue 3,425,362 Total Operating Revenue 116,644,674 Non‐Operating Revenue 1,421,473 Gross Revenue 118,066,147 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization)74,343,637 Net Revenue Available for Debt Service (1)43,722,510$ Total Fiscal Year 2015 Debt Service on Bonds (2)9,712,547$ Net Revenue Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)450% Other Pledged Funds: System Development Fees (Impact Fees)12,647,736$ Special Assessment Proceeds ‐ Total Pledged Funds Available for Debt Service (3)56,370,246$ Total Fiscal Year 2015 Debt Service on Bonds (4)9,712,547$ Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)580% Total Pledged Funds Available for Debt Service After Payment of Bonds (5)46,657,699$ Total Fiscal Year 2015 Debt Service on Subordinated Indebtedness (6)11,513,231$ Calculated Coverage on Subordinated Indebtedness ‐ (5/6)405% Total Pledged Funds Available for System Purposes 35,144,468$ TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2015 2 Summary Debt Statement for Fiscal Year 2015 General Governmental Debt: Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this self-imposed maximum. The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County’s Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased from 8.1%, as of September 30, 2014, to 7.6% for the fiscal year ended September 30, 2015. The decrease in the debt ratio for FY-2015 is primarily the result of an 8.9% increase in overall bondable revenues. Ad valorem tax collection increased by 6.5% over FY-2014 due to a corresponding increase in taxable values. Impact fee collections related to governmental activities (non-enterprise activity) increased by 32.5%, developmental fee collections increased by 19.8% and tourist development tax receipts increased by 10.7%. Recent debt restructurings coupled with the growth of general governmental revenues has produced several consecutive years of decreases in the general governmental debt ratio. Governmental Debt Ratings Table: Current Ratings (as of 4/12/2016) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA- A2 A Special Obligation Bonds AA Aa2 AA+ A rating of AA is an indication by Fitch Ratings of an investment grade instrument, but one which carries a slightly higher risk than a AAA rated bond. Fitch also uses intermediate +/- modifiers for each AA category. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument with very low credit risk, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. A rating of A is an indication by Moody’s of an investment grade instrument with low credit risk but the bond has elements present that suggest a higher susceptibility to impairment over the long term than a Aa investment. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of AA is an indication by Standard and Poor’s of an investment grade instrument issued by a “quality borrower” but with slightly more risk than a AAA grade investment. A rating of A is an indication by Standard and Poor’s of an investment grade instrument but one more susceptible to adverse changes in circumstances and economic conditions than AAA or AA instruments. Standard and Poor’s also uses intermediate +/- modifiers for each category. 3 The County’s Special Obligation Revenue Bonds are secured by a covenant to appropriate in the annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. The combined gas tax revenues are pledged for the payment of all the Gas Tax Revenue bonds. Fiscal year 2015 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue bonds at 149%. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District’s debt 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 impact fees and special assessments, if applicable, must cover bonded debt at 125%. Net revenue coverage on bonded debt was 450% and total pledged funds coverage on bonded debt was 580% for FY-2015, up from 400% and 511%, respectively, for FY-2014. Bonded debt coverages increased primarily due to a 7.9% increase in water and sewer sales revenues. The District’s calculated coverage on subordinated debt, all in the form of State Revolving Fund Loans, increased from 353% to 405%, also as a result of the increase in sales revenue over FY-2014. The total pledged funds coverage required by the subordinated loan agreements varies between 115% and 125%, depending upon the individual loan agreement. In September of 2015, the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the amount of $17,687,000 for purposes of advance refunding a portion of the Water and Sewer District’s Series 2006 Revenue Bonds. The Series 2015 Bond proceeds, together with other available monies, were placed in escrow. The Series 2015 Water and Sewer Refunding Revenue Bond has a fixed interest rate of 1.8%. The advance refunding achieved a net present value savings of 7.1% on the refunded bonds. Enterprise Debt Ratings Table: Current Ratings (as of 4/12/2016) Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA Aa1 - *- Standard & Poor’s does not currently rate County Water and Sewer Revenue Bonds. In December of 2015, Fitch Ratings affirmed the District’s Water and Sewer Revenue Bonds at AAA. A rating of AAA is an indication by Fitch Ratings of an investment grade instrument with very little credit risk. In April of 2016, Moody’s Investors Service upgraded the District’s Water and Sewer Revenue Bonds to Aa1 from Aa2. A rating of Aa is an indication by Moody’s Investors Service of a high 4 quality investment grade instrument, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of Aa1 is the highest rating within the Aa range. Water, wastewater and irrigation quality water user rates and miscellaneous revenues are used to recover system operating, maintenance and capital costs as well as pay debt service. During September 2014 the District’s governing board approved phased rate increases. The District’s water and sewer user rates increased by 9.0%, effective 10/01/2014 with subsequent increases of 5.0% effective 10/01/2015 and 10/01/2016. Over recent years the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s continuing focus is the optimization of resources and a risk based prioritization of capital projects. 5 Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds ........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund .............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Services Fund ..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Fund .....................................................................................8 Statement of Fiduciary Net Position – Agency Fund..................................................................9 Notes to Financial Statements ...................................................................................................10 Supplementary Information Combining Statements of Fiduciary Net Position – All Agency Funds ...................................27 Other Reports Independent Auditors’ Report on 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 ..........................................28 Management Letter ...................................................................................................................30 Independent Accountants’ Report .............................................................................................32 CliftonLarsonAllen LLP CLAconnect.com 1 An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Dwight E. Brock Clerk of the Circuit Court 2 Opinions In our opinion, the 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 for the Clerk as of September 30, 2015, and the respective changes in financial position and, where applicable, budgetary comparisons thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s financial statements. The combining statement, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The combining statement is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statement is fairly stated in all material respects in relation to the financial statements as a whole. Honorable Dwight E. Brock Clerk of the Circuit Court 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 14, 2016 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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 Collier County, Florida Clerk of the Circuit Court Balance Sheet – Governmental Funds September 30, 2015 See accompanying Notes to Financial Statements. 4 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents 2,108,931$ 1,422,535$ 4,948,870$ 8,480,336$ Accounts receivable 114,903 - -114,903 Due from other governments 8,257 49,312 -57,569 Total assets 2,232,091$ 1,471,847$ 4,948,870$ 8,652,808$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 555,365$ 223,259$ 39,069$ 817,693$ Due to Collier County, Florida Board of County Commissioners 423,128 - -423,128 Due to Other Constitutional Officers - 379 -379 Due to other governments - 1,248,209 -1,248,209 Deposits 1,253,598 - -1,253,598 Total liabilities 2,232,091 1,471,847 39,069 3,743,007 Fund balance: Restricted - - 4,909,801 4,909,801 Total fund balance - - 4,909,801 4,909,801 Total liabilities and fund balance 2,232,091$ 1,471,847$ 4,948,870$ 8,652,808$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 5 Total Court Other Special Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 361,895$ -$ 361,895$ Charges for services 3,102,722 6,484,209 1,463,188 11,050,119 Miscellaneous 303 - - 303 Interest income 13,701 10,644 7,650 31,995 Total revenues 3,116,726 6,856,748 1,470,838 11,444,312 Expenditures: General government: Personal services 6,528,467 5,773,044 872,969 13,174,480 Operating 1,809,230 292,286 425,651 2,527,167 Capital outlay 226,710 - - 226,710 Total expenditures 8,564,407 6,065,330 1,298,620 15,928,357 Excess (deficiency) of revenues over (under) expenditures (5,447,681) 791,418 172,218 (4,484,045) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 5,869,500 - - 5,869,500 Transfers out: Distribution of excess fees to State of Florida - (791,418) - (791,418) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (421,819) - - (421,819) Total other financing sources (uses)5,447,681 (791,418) - 4,656,263 Net change in fund balance - - 172,218 172,218 Fund balances – beginning of year - - 4,737,583 4,737,583 Fund balances – end of year -$ -$ 4,909,801$ 4,909,801$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 2,788,100$ 3,000,000$ 3,102,722$ 102,722$ Miscellaneous - - 303 303 Interest income 20,000 20,000 13,701 (6,299) Total revenues 2,808,100 3,020,000 3,116,726 96,726 Expenditures: General government: Personal services 6,987,800 6,754,200 6,528,467 225,733 Operating expenditures 1,346,700 1,908,300 1,809,230 99,070 Capital outlay 343,100 227,000 226,710 290 Total expenditures 8,677,600 8,889,500 8,564,407 325,093 Excess (deficiency) of revenues over (under) expenditures (5,869,500) (5,869,500) (5,447,681) 421,819 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 5,869,500 5,869,500 5,869,500 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (421,819) (421,819) Total other financing sources (uses) 5,869,500 5,869,500 5,447,681 (421,819) Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Court Services Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 219,000$ 261,459$ 361,895$ 100,436$ Charges for services 7,177,100 6,814,553 6,484,209 (330,344) Interest income 8,500 8,500 10,644 2,144 Total revenues 7,404,600 7,084,512 6,856,748 (227,764) Expenditures: General government: Personal services 6,890,400 6,559,112 5,773,044 786,068 Operating expenditures 514,200 525,400 292,286 233,114 Total expenditures 7,404,600 7,084,512 6,065,330 1,019,182 Excess of revenues over expenditures - - 791,418 791,418 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida - - (791,418) 791,418 Total other financing (uses)- - (791,418) 791,418 Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Other Special Revenue Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 1,365,000$ 1,365,000$ 1,463,188$ 98,188$ Interest income 8,300 8,300 7,650 (650) Total revenues 1,373,300 1,373,300 1,470,838 97,538 Expenditures: General government: Personal services 989,600 989,600 872,969 116,631 Operating expenditures 1,491,500 1,502,300 425,651 1,076,649 Capital outlay 412,600 410,200 - 410,200 Total expenditures 2,893,700 2,902,100 1,298,620 1,603,480 Net change in fund balance (1,520,400) (1,528,800) 172,218 1,701,018 Fund balance – beginning of year 3,141,662 4,315,031 4,737,583 422,552 Fund balance – end of year 1,621,262$ 2,786,231$ 4,909,801$ 2,123,570$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Fund September 30, 2015 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 26,821,918$ Liabilities Due to the Collier County, Florida Board of County Commissioners 341,868$ Due to other governments 950,949 Deposits 25,529,101 Total liabilities 26,821,918$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 10 1.Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (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. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk’s general fund. Court-related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. The State transitioned the Clerk in July, 2013 to be self-funded from fees and fines. Pursuant to Section 28.37, Florida Statute, any surplus revenues over expenditures will be returned to the State. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 11 1.Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These 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 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 – 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 – The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund – The other special revenue fund is a special revenue fund used to account for revenues 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 equipment, personnel training, and technical assistance in modernizing the public records system of the office, and revenues mandated by Section 28.24(12)(e), Florida Statutes, to be used exclusively for funding court-related technology needs. This fund also accounts for revenues and expenditures pursuant to Section 28.37(5), Florida Statutes. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 12 1.Summary of Significant Accounting Policies (continued) 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 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. 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 of County Commissioners. Court-related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund 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 other financing use in the accompanying purpose financial statements. 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 – Agency 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 full accrual basis of accounting. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 13 1.Summary of Significant Accounting Policies (continued) Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Compensated Absences All 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 (with limited exceptions per the employee manual). 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 governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk’s funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these 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 liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 14 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non-spendable fund balances at the Clerk as of September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk’s fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 15 2. Budgetary Process (continued) If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, 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. If 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. For the year ended September 30, 2015, the Clerk had sufficient revenues to meet expenditures. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk’s fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. 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 Clerk. 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. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 16 3.Cash and Cash Equivalents At September 30, 2015, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A 7,600$ N/A Demand deposits N/A 35,294,654 N/A Total cash and cash equivalents 35,302,254$ 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 financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. Cash and cash equivalents as of September 30, 2015 are reported as $8,480,336 and $26,821,918 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2015, 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. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 17 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 Florida PRIME 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 located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk’s funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. 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 income is allocated to each fund based on its proportionate balance in the pool. Interest income of $13,701 is reported in the general fund for the year ended September 30, 2015, as the portion of interest earned on Clerk funds. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 18 5.Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1,September 30, 2014 Additions Deductions Transfer-out 2015 Capital assets depreciated: Machinery and equipment 7,410,520$ 226,710$ (8,857)$ (54,956)$ 7,573,417$ Less accumulated depreciation (4,943,685) (707,497) 8,857 54,956 (5,587,369) Total Capital assets depreciated 2,466,835 (480,787) --1,986,048 Total capital assets, net 2,466,835$ (480,787)$ -$-$1,986,048$ 6.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,September 30, 2014 Additions Deletions 2015 Accrued compensated absences 1,947,947$ 839,443$ (958,991)$ 1,828,399$ Of these liabilities, $895,916 is expected to be paid during the fiscal year ending September 30, 2016. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 19 7.Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 20 7. Pension Plans (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 21 7. Pension Plans (continued) As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 22 7. Pension Plans (continued) FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 23 7.Pension Plans (Continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $754,155, $738,661, and $562,051 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. 8.Related Party Transactions The Board provided funding for the Clerk in the amount of $5,869,500. The Supervisor of Elections provided funding in the amount of a $45,000 fee for financial services performed by the Clerk. At September 30, 2015, the Clerk had a payable due to the Board of $764,996, comprised as follows: Distribution of excess fees 421,819$ Amounts due for various services 1,309 Agency funds due 341,868 Total due to Board of County Commissioners 764,996$ The Clerk also had a payable to the Collier County Sheriff at September 30, 2015 of $379 from the Court Services Fund for juror meals. 9.Risk Management Collier County, Florida (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, 2015, the Clerk was charged $2,468,141 by the County for participation in the risk management program. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 24 9.Risk Management (continued) The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% named storm deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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 self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10.Other Postemployment Healthcare Benefits (OPEB) Plan The Clerk follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The Clerk 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 financial statements of Collier County, Florida. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 25 10.Other Postemployment Healthcare Benefits (OPEB) Plan (continued) Under Florida Statutes, retirees originally hired prior to July 1, 2011, 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Clerk had a net OPEB obligation of $38,747 as of September 30, 2015. 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 November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 11.Claims and Contingencies Litigation The Clerk 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, 2015, the Clerk was involved in approximately 101,368 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 321 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are approximately 16 actions for foreclosure of property in which the Clerk has been a named defendant. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 26 11.Claims and Contingencies (continued) Litigation (continued) Clerk continues to be involved in a class action involving a Florida Statute related to ownership of interest earned on monies paid into the registry of the court and an inverse condemnation allegation asserting that the Clerk has improperly retained interest accruing on funds in the court’s registry. Two other cases with similar claims have been filed in Florida. Both cases found against the plaintiff. The plaintiffs filed motion for the Florida Supreme Court to rule on the cases. The court denied the motion. The plaintiffs have filed to have the U.S. Supreme Court hear the case. All proceedings in our case have been stayed until final resolution with the other cases. The Clerk is involved in a litigation regarding fees for public records requests. The Clerk has entered into new litigation against County Manager and Purchasing Director joined by the BOCC over the purchasing policies/actions in procurement. The Clerk’s office expects to prevail in all of the above actions. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk of the Circuit Court. Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2015 27 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents 4,899,492$ 21,907,264$ 15,162$ 26,821,918$ Liabilities Due to Collier County, Florida Board of County Commissioners 341,868$ -$ -$ 341,868$ Due to other governments 935,787 - 15,162 950,949 Deposits 3,621,837 21,907,264 - 25,529,101 Total liabilities 4,899,492$ 21,907,264$ 15,162$ 26,821,918$ CliftonLarsonAllen LLP CLAconnect.com 28 An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the 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, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements, and have issued our report thereon dated January 14, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Clerk’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Dwight E. Brock Clerk of the Circuit Court 29 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 CliftonLarsonAllen LLP CLAconnect.com 30 An independent member of Nexia International MANAGEMENT LETTER Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30, 2015 and have issued our report thereon dated January 14, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on 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 and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Dwight E. Brock Clerk of the Circuit Court 31 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 CliftonLarsonAllen LLP CLAconnect.com 32 An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of court performance standards and budgets, during the year ended September 30, 2015. Management is responsible for the Clerk’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk’s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund – Budgetary Basis ............................................5 Notes to Financial Statements .......................................................................................................6 Other Reports Independent Auditors’ Report on 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 ................................................................21 Management Letter ........................................................................................................................23 Independent Accountants’ Report ..................................................................................................25 1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Honorable Abe Skinner Property Appraiser 2 Opinion In our opinion, the 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, 2015, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report 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 included under the heading Independent Auditors’ Report on 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. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2015 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 809,790$ Total assets 809,790$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 30,945$ Due to Collier County, Florida Board of County Commissioners 703,354 Due to other taxing districts 75,491 Total liabilities 809,790 Fund balance - Total liabilities and fund balance 809,790$ Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 6,579,893$ Miscellaneous 794,878 Interest 5,620 Total revenues 7,380,391 Expenditures: General government: Personal services 5,026,460 Operating 1,453,804 Capital outlay 121,282 Total expenditures 6,601,546 Excess of revenues over expenditures 778,845 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (703,354) Distribution of excess fees and commissions to other governmental agencies (75,491) Total other financing uses (778,845) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$ Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund (Budgetary Basis) Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 6,579,893$ 6,579,893$ 6,579,893$ -$ Interest Revenue - - 5,620 5,620 Miscellaneous - - 794,878 794,878 Total revenues 6,579,893 6,579,893 7,380,391 800,498 Expenditures: General government: Personal services 5,174,383 5,174,383 5,026,460 147,923 Operating 1,380,510 1,380,510 1,453,804 (73,294) Capital outlay 25,000 25,000 121,282 (96,282) Total expenditures 6,579,893 6,579,893 6,601,546 (21,653) Excess of revenues over expenditures - - 778,845 778,845 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (703,354) (703,354) Distribution of excess commissions and fees to other governmental agencies - - (75,491) (75,491) Total other financing uses - - (778,845) (778,845) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 6 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser’s total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser’s office. The Property Appraiser’s financial statements include only the funds of the Property Appraiser’s office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, 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 financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 7 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 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 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 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 liabilities of the current 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 certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser’s revenue is received from taxing authorities. These monies 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. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. 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. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 8 1. Summary of Significant Accounting Policies (continued) Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board 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 other financing use-transfer out in the accompanying financial statements. 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 Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave 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 and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the 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 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 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. 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 are not recognized under the budgetary basis of accounting; however, the revenues have been recognized under GAAP. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 10 2. Budgetary Process (continued) The actual results of operations in the statement of revenues and 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, 2015, from the budgetary basis of accounting to the GAAP basis of accounting are as follows: Miscellaneous Revenues Budgetary Basis -$ Revenues not budgeted: Miscellaneous 794,878 Interest 5,620 GAAP Basis 800,498$ During the year, the Property Appraiser exceeded the budgeted amount for operating expenditures and capital outlay mainly as a result of other contractual services, vehicles and computer equipment related expenditures which were not expected at the time of the budget preparation. These budget overages were partially offset by budget savings in the personnel services category. 3. Cash At September 30, 2015, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 809,665 Total cash 809,790$ Type Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 11 3. Cash (continued) Custodial Credit Risk At September 30, 2015, 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. 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 Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly 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 recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 12 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds 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 financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1, September 30, 2014 Additions Deductions 2015 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,560,828 121,282 - 1,682,110 Total capital assets 1,576,160 121,282 - 1,697,442 Less accumulated depreciation (1,270,868) (97,195) - (1,368,063) Total capital assets, net 305,292$ 24,087$ -$ 329,379$ 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, September 30, 2014 Increase Decrease 2015 Accrued compensated absences 299,899$ 317,098$ 286,715$ 330,282$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 13 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2015, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 14 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 15 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 17 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 18 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser’s employer contributions to the plan for the years ended September 30, 2015, 2014 and 2013, were $377,140, $315,882, and $203,538, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Property Appraiser follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description The Property Appraiser 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 financial statements of Collier County, Florida (the County). Under Florida Statutes, retirees originally hired prior to July 1, 2011 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Property Appraiser provides no subsidy to the retiree, or their dependents, for group health care. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 19 7. Other Postemployment Healthcare 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Property Appraiser had a net OPEB obligation of $28,262 as of September 30, 2015. 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 November 2013. 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 year ended September 30, 2015, the Board paid fees to the Property Appraiser that amounted to $5,917,161. At September 30, 2015, the Property Appraiser had a payable due to the Board of $703,354, respectively, comprised as follows: Distribution of excess commissions and fees 703,354$ 9. Risk Management Collier County, Florida (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 Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2015, the Property Appraiser was charged $940,547 by the County for participation in the risk management program. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 20 9. Risk Management (continued) The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 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 $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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 self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a 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. 21 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the 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, the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements, and have issued our report thereon dated January 8, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Abe Skinner Property Appraiser 22 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2015-001 – Budget Criteria Florida Statutes 195.087 (1)(a) requires the Property Appraiser to submit a budget for operation of the Property Appraiser’s office for the fiscal year to the Florida Department of Revenue (DOR) for review and approval. Total expenditures should not exceed the total appropriations as approved by DOR. Condition The Property Appraiser’s total expenditures exceeded its final approved total appropriations. Cause A budget amendment was not submitted prior to the expenditure of additional amounts for capital outlay. Effect The Property Appraiser expended $21,653 in excess of final approved appropriations. Recommendation We recommend that management and the Property Appraiser periodically review budget to actual reports to determine if the Property Appraiser is adhering to its adopted budget. If circumstances arise that will cause the Property Appraiser to incur total expenditures in excess of approved total appropriations, the Property Appraiser should first submit a budget amendment to the DOR. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 23 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2015, and have issued our report thereon dated January 8, 2016. Auditors’ Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on 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 and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in those reports which are dated January 8, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. Honorable Abe Skinner Property Appraiser 24 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 25 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County, Florida Property Appraiser’s (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Property Appraiser’s compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Property Appraiser’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser’s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget (Non-GAAP) and Actual – General Fund ........................................................................6 Statement of Net Position – Internal Service Fund ..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund ....................................................................................................................8 Statement of Cash Flows – Internal Service Fund ...........................................................................9 Statement of Fiduciary Net Position – Agency Funds ...................................................................10 Notes to Financial Statements ........................................................................................................11 Required Supplementary Information Schedule of Funding Progress for the Retiree Health Plan............................................................34 Combining Financial Information Combining Statement of Fiduciary Net Position – Agency Funds ................................................35 Combining Statement of Changes in Assets and Liabilities – Agency Funds ...............................36 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2015 Contents (continued) Other Reports Independent Auditors’ Report on 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....................................................................37 Management Letter ........................................................................................................................39 Independent Accountants’ Report ..................................................................................................41 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................42 1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Kevin Rambosk Sheriff 2 Opinions In our opinion, the 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 for the Sheriff as of September 30, 2015, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress for the Retiree Health Plan, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Honorable Kevin Rambosk Sheriff 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff’s financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 12, 2016 on our consideration of the Sheriff’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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 Collier County, Florida Sheriff Balance Sheet – Governmental Funds September 30, 2015 See accompanying Notes to Financial Statements.4Grant Other Non-MajorSpecial Prisoner Federal Equitable Special Revenue General Revenue Welfare Sharing Funds TotalAssetsCash and cash equivalents 7,654,030$ 189,921$ 1,569,302$ 871,511$ –$ 10,284,764$ Accounts receivable 40,547 14,529 – – – 55,076 Due from other funds 456,995 – 25,000 – – 481,995 Due from other governments 38,725 49,251 – – – 87,976 Due from Collier County, Florida Board ofCounty Commissioners 1,054,712 85,511 – – 948,243 2,088,466 Total assets 9,245,009$ 339,212$ 1,594,302$ 871,511$ 948,243$ 12,998,277$ Liabilities and fund balancesLiabilities:Accounts payable 1,566,201$ 16,276$ 106,561$ 5,617$ 948,243$ 2,642,898$ Accrued expenses 7,461,250 – – – – 7,461,250 Due to other funds 183,556 – 440,146 5,617 – 629,319 Due to Collier County, Florida Board ofCounty Commissioners 34,002 – – – – 34,002 Unearned revenue – 103,979 – – – 103,979 Total liabilities 9,245,009 120,255 546,707 11,234 948,243 10,871,448 Fund balances:Restricted – 218,957 1,047,595 860,277 – 2,126,829 Total liabilities and fund balances 9,245,009$ 339,212$ 1,594,302$ 871,511$ 948,243$ 12,998,277$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2015 See accompanying Notes to Financial Statements.5Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Welfare SharingFunds TotalRevenues:Grant revenue –$ 992,422$ –$ –$ –$ 992,422$ Charges for services 1,375,714 – 838,122 – – 2,213,836 Interest income – 607 3,335 2,141 – 6,083 Other revenue – – – 157,615 – 157,615 Total revenues 1,375,714 993,029 841,457 159,756 – 3,369,956Expenditures:General government:Personal services 3,634,660 – – – – 3,634,660 Operating expenditures 78,912 – – – – 78,912 Public safety:Personal services 113,929,185 542,499 533,885 – 884,816 115,890,385 Operating expenditures 20,834,616 226,140 151,335 65,274 1,495,767 22,773,132 Capital outlay 7,657,091 6,837 99,963 – 1,028,361 8,792,252 Debt Service - principal 570,323 – – – – 570,323 Total expenditures 146,704,787 775,476 785,183 65,274 3,408,944 151,739,664Excess (deficiency) of revenues over (under) expenditures (145,329,073) 217,553 56,274 94,482 (3,408,944) (148,369,708)Other financing sources (uses): Proceeds from capital leases 1,914,480 – – – – 1,914,480 Transfers in:Collier County, Florida Board of County Commissioners appropriations 142,092,500 – – – – 142,092,500 Collier County, Florida Board of County Commissioners 1,350,335 – – – 3,408,944 4,759,279 Transfers out:Distribution of excess appropriations to Collier County,Florida Board of County Commissioners (28,242) – – – – (28,242) Total other financing sources 145,329,073 – – – 3,408,944 148,738,017Net change in fund balances – 217,553 56,274 94,482 – 368,309 Fund balances – beginning of year – 1,404 991,321 765,795 – 1,758,520 Fund balances – end of year –$ 218,957$ 1,047,595$ 860,277$ –$ 2,126,829$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements.6 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services –$ 1,379,000$ 1,375,714$ (3,286)$ Expenditures: General government: Personal services 2,959,600 2,959,600 3,634,660 (675,060) Operating expenditures 131,700 131,700 78,912 52,788 Capital outlay – – – Public safety: Personal services 114,498,800 115,832,800 113,929,185 1,903,615 Operating expenditures 22,466,100 22,511,100 20,567,896 1,943,204 Capital outlay 2,036,300 2,036,300 5,229,319 (3,193,019) Total expenditures 142,092,500 143,471,500 143,439,972 31,528 Excess of expenditures over revenues (142,092,500) (142,092,500) (142,064,258) 28,242 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 142,092,500 142,092,500 142,092,500 – Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (28,242) (28,242) Total other financing sources 142,092,500 142,092,500 142,064,258 (28,242) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year –$ –$ –$ –$ Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2015 See accompanying Notes to Financial Statements.7 Assets Cash and cash equivalents 1,936,139$ Investments 7,965,861 Due from other funds 183,556 Other receivable 45,012 Total assets 10,130,568 Liabilities: Self insurance claims payable 2,170,000 Net other postemployment benefit obligation 2,168,099 Total liabilities 4,338,099 Net position: Unrestricted 5,792,469 Total net position 5,792,469$ Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements.8 Operating revenues: 19,777,998$ Operating expenses: 19,415,269 884,997 Net other postemployment benefit expense 486,861 372,398 21,159,525 (1,381,527) Nonoperating revenues: 41,400 Decrease in fair value of investments (26,970) Total nonoperating revenues 14,430 (1,367,097) Net position – beginning of year 7,159,566 Net position – end of year 5,792,469$ Charges for services Claims and claims expenses Interest income Change in net position Reinsurance premiums Administrative and other expenses Total operating expenses Operating income (loss) Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements.9 Operating activities (19,217,870)$ (884,997) (372,398) 18,750,000 799,430 (925,835) Noncapital and Related Financing Activities Amounts repaid to other funds (407,422) Net cash used by noncapital and related financing activities (407,422) Investing activities 41,400 Sales of securities (49,444) (8,044) (1,341,301) Cash, cash equivalents, and investments – beginning of year 3,277,440 Cash, cash equivalents, and investments – end of year 1,936,139$ Reconciliation of operating loss to net cash (1,381,527)$ 60,387 (183,556) Increase in net other postemployment benefit obligation 486,861 92,000 (925,835)$ Net cash provided by operating activities net cash used by operating activities: Increase in receivables Increase in due to/from other funds Decrease in self-insurance claims payable Adjustments to reconcile operating loss to Operating loss Cash payments for reinsurance premiums Cash payments for claims and claims related services Cash payments for administrative services and supplies Cash received from other funds for services used by operating activities Net cash used by operating activities Cash received from retirees for services Net decrease in cash, cash equivalents, and investments Investment income Net cash provided by investing activities Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2015 See accompanying Notes to Financial Statements.10 Cash and cash equivalents 566,302$ Due from individuals and businesses 14,388 580,690$ Due to other funds 36,232$ Due to Collier County, Florida 28,991 Due to individuals and businesses 515,467 580,690$ Total liabilities Liabilities Board of County Commissioners Assets Total assets Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 11 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (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 Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County’s corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and agency funds of the Sheriff’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550 Rules of the Auditor General - 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 financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2015 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 accounting principles generally accepted in the United States of America. 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. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 12 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from 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 annually; therefore, no unappropriated general fund balance is carried forward. The 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 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 liabilities of the current 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, money 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. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue 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. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 13 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund – The general fund is used to account for the general operations of the 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 from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. The Sheriff also has the following non-major funds: Reported as Other Non-major Special Revenue Funds Confiscated Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 14 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Civil Citation – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911 – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training – Criminal Justice Education and Training – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. 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 flows. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 15 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash equivalents also include amounts deposited in Florida PRIME 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. All investments are stated at fair value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 1,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff 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 for the County. Use of Estimates The preparation of the 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 financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2015. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 16 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Sheriff’s fund balances for the grant special revenue fund, prisoner welfare fund and federal equitable sharing fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 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 for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from capital leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 17 2. Budgetary Process (continued) The differences between the budgetary basis and the GAAP basis for the General Fund budget as discuss above are as follows: Total expenditures - budgetary basis 143,439,972$ Expenditures not budgeted: Vehicles and equipment purchased with proceeds from capital lease obligation 1,914,480 Expenditures for multi-period projects that are not budgeted 1,350,335 Total expenditure - GAAP basis 146,704,787$ Total other financing sources (uses) - budgetary basis 142,064,258$ Other financing sources not budgeted: Proceeds from capital lease obligations 1,914,480 Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)1,350,335 145,329,073$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 18 3. Cash, Cash Equivalents and Investments At September 30, 2015, the carrying value of the Sheriff’s cash, cash equivalents and investments was as follows: Type Average Maturity Carrying Value Credit Rating Cash on hand N/A 21,107$ N/A Demand deposits N/A 12,023,834 N/A Local government surplus funds trust fund: Florida Prime N/A 742,264 AAAm Total cash and cash equivalents 12,787,205 Money Market N/A 237,265 Not rated Treasury Note 11/15/2015 500,125 AAA Federal National Mortgage Association 10/26/2015 750,750 AAA Federal Home Loan Bank 12/11/2015 501,655 AAA Federal Home Loan Mortgage Corp. Note 1/21/2016 1,699,320 AAA Federal Home Loan Bank 2/19/2016 850,196 AAA Federal Home Loan Mortgage Corp. 3/15/2016 1,004,130 AAA Federal Home Loan Mortgage Corp. 5/13/2016 700,749 AAA Federal National Mortgage Association 7/5/2016 1,000,020 AAA Federal Home Loan Bank 9/9/2016 721,651 AAA Total Investments 7,965,861 Total cash, cash equivalents and investments 20,753,066$ The total cash, cash equivalent and investments balances at September 30, 2015, were as follows: General fund 7,654,030$ Grant special revenue fund 189,921 Prisoner welfare fund 1,569,302 Federal equitable sharing fund 871,511 Internal service fund 9,902,000 Agency funds 566,302 20,753,066$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 19 3. Cash, Cash Equivalents and Investments (continued) Custodial Credit Risk At September 30, 2015, the Sheriff’s demand 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. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET’s policy required execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff’s name. Credit Risk The Sheriff’s policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff’s Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the US Treasury. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the state treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2015, the Sheriff had $742,264 invested in Florida Prime. Florida Prime is rated “AAAm” by Standard & Poor’s Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 20 3. Cash, Cash Equivalents and Investments (continued) Concentration of Credit Risk The Sheriff’s investments are included in the internal service fund which is used to account for the Sheriff’s self-insured health plan. The Florida Sheriff’s Multiple Employer Trust administers the investments for the Sheriff’s self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month’s required funding by more than $100,000. Investments can be made in government securities. The Sheriff’s portfolio managed by the self- insurance trust includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits which are not managed by the self-insurance trust, which are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff’s portfolio invested in FSMET is detailed as follows, at September 30, 2015: % of Portfolio Money Market 3% Treasury Note 6% Federal National Mortgage Association 22% Federal Home Loan Bank 26% Federal Home Loan Mortgage Corp. Note 21% Federal Home Loan Mortgage Corp. 22% Total 100% Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 21 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2014 Additions Reclassifications 2015 Governmental Activities Capital assets not depreciated: Construction in Progress 691,071$ 1,370,437$ (691,071)$ 1,370,437$ Total capital assets not depreciated 691,071 1,370,437 (691,071) 1,370,437 Capital assets depreciated : Machinery and equipment 67,251,490 8,613,461 (4,935,373) 70,929,578 Total capital assets depreciated 67,251,490 8,613,461 (4,935,373) 70,929,578 Less accumulated depreciation: Machinery and equipment (58,180,645) (5,630,445) 4,916,296 (58,894,794) Total Accumulated depreciation (58,180,645) (5,630,445) 4,916,296 (58,894,794) Total Depreciable capital assets, net 9,070,845 2,983,016 (19,077) 12,034,784 Total Governmental Activities capital assets, net 9,761,916$ 4,353,453$ (710,148)$ 13,405,221$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 22 5. Long-Term Liabilities The Sheriff has entered into certain capital lease agreements under which the related equipment will become the property of the Sheriff’s Office when all terms of the lease agreements are met. Stated Interest Rate Present Value of Remaining Payments as of September 30, 2015 Governmental fund activities: Vehicles and related equipment 4.50% 1,068,029$ Telephone system 4.82% 276,128 Total Capital Lease Obligations 1,344,157$ Equipment and related accumulated amortization under capital leases are as follows: Governmental Activities Equipment 1,914,480$ Less: accumulated amortization - Net Value 1,914,478$ Year ending September 30: Governmental Activities 2016 633,509$ 2017 633,509 2018 63,185 2019 63,185 2020 57,920 Total minimum lease payments 1,451,308 Less: amount representing interest (107,151) Present value of remaining payments 1,344,157$ As of September 30, 2015, the future minimum lease payments under capital lease for each of the next five years and in the aggregate are: Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 23 5. Long-Term Liabilities (continued) 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, Deductions/ September 30, 2014 Additions Reclassifications 2015 Capital lease agreements -$ 1,914,480$ (570,323)$ 1,344,157$ Compensated Absences 14,483,453 1,431,788 (3,471,779) 12,443,462 Total 14,483,453$ 3,346,268$ (4,042,102)$ 13,787,619$ Of these liabilities, approximately $1,160,000 is expected to be paid during the fiscal year ending September 30, 2015. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2015, were as follows: Due From Due To General fund 456,995$ 183,556$ Inmate Trust - 36,232 Prisoner welfare fund 25,000 440,146 Federal equitable sharing - 5,617 Internal service fund 183,556 - 665,551$ 665,551$ Interfund receivables and payables generally represent recurring activities between funds. 7. Related-Party Transactions The Board provided funding for the Sheriff for the year of $146,851,779. At September 30, 2015, the Sheriff had a payable due to the Board of $62,993 comprised of the following: General fund: Distribution of excess appropriations $ 28,242 Distribution of interest collected 5,559 Miscellaneous payables 201 Agency funds 28,991 Total $ 62,993 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 24 7. Related-Party Transactions (continued) Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $2,088,466 at September 30, 2015. Agency Funds The Sheriff’s Office administers funds for the Collier County Sheriff’s Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 25 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 26 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in- line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 27 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 28 8. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $13,341,786, $12,767,042, and $10,162,432 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 29 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). Plan Description The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for of retirees who have six 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 both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s 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, 2015, the date of the latest actuarial valuation, the Sheriff’s plan participation consisted of: OPEB plan participants 1,138 Retirees receiving benefits 104 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay as you go basis. For the year ended September 30, 2015, the Sheriff contributed $742,376 to the OPEB Plan. The annual other postemployment benefit cost for the plan 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 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 as of October 1, 2015. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 30 9. Other Postemployment Benefits (continued) Annual OPEB Cost and Net OPEB Obligation The annual cost (expense) of the Sheriff’s OPEB Plan is calculated based on the ARC. The following table shows the components of the Sheriff’s annual OPEB Plan cost for the year ended September 30, 2015, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 1,262,077 Interest on net OPEB obligation 50,437 Adjustment to annual required contribution (83,277) Annual OPEB cost (expense) 1,229,237 Contributions made (742,376) Increase in net OPEB obligation (asset) 486,861 Net OPEB obligation – beginning of year 1,681,238 Net OPEB obligation (asset) – end year $ 2,168,099 No trust or agency fund has been established for the plan. The Sheriff’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended September 30, 2015 and the preceding years were as follows: Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPEB Cost Cost Contributed Obligation September 30, 2015 September 30, 2014 $ 1,229,237 $ 1,112,653 60% 70% $ 2,168,099 $ 1,681,238 September 30, 2013 $ 1,131,221 73% $ 1,344,917 Funded Status and Funding Progress As of the September 30, 2015 actuarial valuation date, the OPEB Plan was 0% funded, the actuarial accrued liability for benefits was $15,133,114, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $15,133,114. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was approximately $117.6 million, and the ratio of the UAAL to the covered payroll was 12.9%. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 31 9. Other Post Employment Benefits (continued) Funded Status and Funding Progress (continued) The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Projected Unit Credit Method Amortization method Closed Amortization period 30 years, Level Dollar Amount The actuarial assumptions are: Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 8% for the 2016 fiscal year grading to an ultimate rate of 5% for the 2022 fiscal year Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 32 10. Self-Insurance Program The Sheriff’s Office participates in the Statewide Florida Sheriff’s 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: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers’ compensation coverage. The Florida Sheriffs Workers’ Compensation Self Insurance Program is a self-insurance program providing coverage for the first $500,000 ($350,000 for policy years 2002/2003 – 2006/2007) of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $10,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. 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 self-insured risks are reported in the basic financial statements of the 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 any one incident exceeding $200,000. In FY15 there was one covered member who had a deductible amount of $450,000 because of a history of high claims. Specific claim excess coverage for this individual was for claims exceeding $450,000. The maximum annual individual stop loss payment amount is unlimited. 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 yet reported. The Sheriff’s Office uses a Third Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 33 10. Self-Insurance Program (continued) Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2015 and 2014 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2014 $ 3,600,000 $ 17,354,000 $ (18,876,000) $ 2,078,000 2015 $ 2,078,000 $ 15,167,000 $ (19,415,000) $ 2,170,000 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. Collier County, Florida Sheriff Schedule of Funding Progress for the Retiree Health Plan September 30, 2015 34 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) – Percentage of Valuation Value of Projected Unfunded Funded Covered Covered Date Assets Unit Credit AAL Ratio Payroll Payroll 10/1/2013 –$ 13,141,022$ 13,141,022$ 0.0% 107,204,015$ 12.2% 10/1/2014 –$ 14,207,209$ 14,207,209$ 0.0% 112,902,749$ 12.6% 10/1/2015 –$ 15,133,114$ 15,133,114$ 0.0% 117,563,839$ 12.9% Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2015 35 TotalCivil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers FundsCash and cash equivalents 55,349$ 229,474$ 206,982$ 60,219$ 14,278$ 566,302$ Due from individuals and businesses – – – 14,388 – 14,388 55,349$ 229,474$ 206,982$ 74,607$ 14,278$ 580,690$ Due to other funds –$ –$ –$ 36,232$ –$ 36,232$ Due to Collier County, Florida Board17,360 – – 11,631 – 28,991 Due to individuals and businesses 37,989 229,474 206,982 26,744 14,278 515,467 55,349$ 229,474$ 206,982$ 74,607$ 14,278$ 580,690$ Total liabilitiesAssetsLiabilitiesTotal assetsof County Commissioners Collier County, Florida Sheriff Combining Statement of Changes in Assets and Liabilities – Agency Funds Year Ended September 30, 2015 36 October 1, September 30, 2014 Additions Deletions 2015AssetsCash and cash equivalents 600,082$ 3,733,558$ (3,767,338)$ 566,302$ Due from individuals and businesses 23,827 14,388 (23,827) 14,388 Total assets 623,909$ 3,747,946$ (3,791,165)$ 580,690$ LiabilitiesDue to other funds 33,110$ 36,232$ (33,110)$ 36,232$ Due to Collier County, Florida Boardof County Commissioners 27,019 28,991 (27,019) 28,991 Due to individuals and businesses 563,780 515,467 (563,780) 515,467 Total liabilities 623,909$ 580,690$ (623,909)$ 580,690$ 37 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the 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, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated January 12, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Sheriff’s internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Kevin Rambosk Sheriff 38 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 CliftonLarsonAllen LLP CLAconnect.com 39An independent member of Nexia International MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2015 and have issued our report thereon dated January 12, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Schedule of Findings and Responses; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated January 12, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Kevin Rambosk Sheriff 40 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 CliftonLarsonAllen LLP CLAconnect.com 41An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff’s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Sheriff's compliance with those requirements. Our responsibility is to express an opinion on the Sheriff's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriff’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff’s compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 CliftonLarsonAllen LLP CLAconnect.com 42An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES 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 (Sheriff), solely to assist you in evaluating the procedures and policies as defined by the Sheriff over its investigative funds for the year ended September 30, 2015. The Sheriff’s management is responsible for the Sheriff’s 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, 2015 (the population sampled from included transactions from October 1, 2014 through September 30, 2015), and performed the following procedures with respect to the Sheriff’s policies and procedures over investigative funds: 1. We obtained the “Disbursement for Investigation” form and observed that the form was properly completed and authorized by appropriate personnel. 2. We obtained the “Purchase of Evidence/Information Voucher” and observed 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. 3. We observed that the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed that the amount deposited agreed to the amount returned per the “Receipt for Funds Received” form detail. Honorable Kevin Rambosk Sheriff 43 We were not engaged to, and did not, conduct an audit or 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. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General Fund ..................................................................................................................5 Notes to Financial Statements ..........................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards ..............................................22 Management Letter ........................................................................................................................24 Independent Accountants’ Report ..................................................................................................26 1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Jennifer J. Edwards Supervisor of Elections 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2015, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2016 on our consideration of the Supervisor’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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisors’ internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 26, 2016 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2015 See accompanying Notes to Financial Statements 3 Grant General Special Total Fund Revenue 2015 Assets Cash and cash equivalents 237,671$ 1,000$ 238,671$ Accounts receivable 87 - 87 Total assets 237,758$ 1,000$ 238,758$ Liabilities and fund balance Liabilities: Accounts payable 14,548$ -$ 14,548$ Accrued liabilities 74,379 - 74,379 Due to Other Governments 2,446 - 2,446 Due to Collier County, Florida Board of County Commissioners 146,385 - 146,385 Total liabilities 237,758 - 237,758 Fund balances: Restricted - 1,000 1,000 Total fund balances - 1,000 1,000 Total liabilities and fund balance 237,758$ 1,000$ 238,758$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2015 See accompanying Notes to Financial Statements 4 Grant General S pecial Total Fund Revenue 2015 Revenues: Intergovernmental -$ 54,004$ 54,004$ Interest - 29 29 Total revenues - 54,033 54,033 Expenditures: General government: Personal services 1,913,220 - 1,913,220 Operating 1,102,680 60,875 1,163,555 Capital outlay 73,915 - 73,915 Total expenditures 3,089,815 60,875 3,150,690 Excess of expenditures over revenues (3,089,815) (6,842) (3,096,657) Other financing sources (uses): Transfers in: General Fund - 6,808 6,808 Collier County, Florida Board of County Commissioners appropriations 3,238,700 - 3,238,700 Transfers out: Special revenue fund (6,808) - (6,808) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (142,077) - (142,077) Total other financing sources 3,089,815 6,808 3,096,623 Net change in fund balance - (34) (34) Fund balance – beginning of the yea r - 1,034 1,034 Fund balance – end of the yea r -$ 1,000$ 1,000$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues -$ -$ -$ -$ Expenditures: General government: Personal services 1,983,100 1,988,100 1,913,220 74,880 Operating 1,223,400 1,169,872 1,102,680 67,192 Capital outlay 32,200 73,920 73,915 5 Total expenditures 3,238,700 3,231,892 3,089,815 142,077 Excess of expenditures over revenues (3,238,700) (3,231,892) (3,089,815) 142,077 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,238,700 3,238,700 3,238,700 - Transfers out: Special Revenue Fund - (6,808) (6,808) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (142,077) (142,077) Total other financing sources (uses) 3,238,700 3,231,892 3,089,815 (142,077) Net change in fund balance - - - - Fund balance – beginning of the year - - - - Fund balance – end of the year -$ -$ -$ -$ Budget Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 6 1. Summary of Significant Accounting Policies and Practices Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor’s office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the SOE are funded by appropriations from the Collier County, Florida Board of County Commissioners (BOCC), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the SOE’s general fund. The special revenue fund of the SOE is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 7 1. Summary of Significant Accounting Policies and Practices (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. 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 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 Supervisor has the following major governmental funds: General Fund – The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund – The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by 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 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 considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 8 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 revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The SOE does not currently hold investments. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 9 1. Summary of Significant Accounting Policies and Practices (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor 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. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor’s fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 10 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor’s annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor’s total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor 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. 3. Cash and Cash Equivalents At September 30, 2015, the carrying value of the Supervisor’s cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand $ 200 N/A Demand deposits 238,471 N/A Total cash and cash equivalents $ 238,671 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 11 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2015, the Supervisor’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. Credit Risk The Supervisor’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 Supervisor to invest in Florida PRIME (formerly 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 recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. 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 Supervisor has no specific investment policy regarding interest rate risk. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 12 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor 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 Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Additions Deductions 2015 Machinery and equipment 1,176,876$ 73,915$ (136,969)$ 1,113,822$ Less accumulated depreciation (1,010,980) (54,858) 110,461 (955,377)$ Machinery and equipment, net 165,896$ 19,057$ (26,508)$ 158,445$ Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 13 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, September 30, 2014 Increase Retirement 2015 Accrued compensated absences $ 196,105 $ 110,200 $ 150,568 $ 155,737 Of these liabilities, approximately $119,917 is expected to be paid during the fiscal year ending September 30, 2016, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 14 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 15 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 16 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 17 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 18 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $106,131, $103,864, and $76,386 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 19 7. Related-Party Transactions For the year ended September 30, 2015, the Board provided funding for the Supervisor that amounted to $3,238,700. At September 30, 2015, the Supervisor had a payable due to the Board of $146,385 comprised as follows: Distribution of excess appropriations $ 142,077 Distribution of interest earnings 1,288 Amounts due for various services 3,020 Total due to Board of County Commissioners $ 146,385 8. Risk Management Collier County, Florida (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 Supervisor participates in the County’s self-insurance program. During the year ended September 30, 2015, the Supervisor was charged $279,509 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 20 8. 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 $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Healthcare Benefits (OPEB) Plan The SOE follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The SOE 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 financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011, 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) are also eligible to participate in the medical plan. The Supervisor provides no subsidy to the retiree, or their dependents, for group health care. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 21 9. Other Postemployment Healthcare 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Supervisor had a net OPEB obligation of $9,736 as of September 30, 2015. 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 November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 10. Contingencies Grant funds received by the Supervisor 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. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor’s grants. In fiscal 2015 the matching funds transferred was $6,808. 22 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the 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, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated January 26, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Supervisor’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Jennifer J. Edwards Supervisor of Elections 23 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 26, 2016 24 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2015 and have issued our report thereon dated January 26, 2016. Auditors’ Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report which is dated January 26, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Jennifer J. Edwards Supervisor of Elections 25 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 26, 2016 26 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections’ (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Supervisor’s compliance with those requirements. Our responsibility is to express an opinion on the Supervisor's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Supervisor’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor’s compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 26, 2016 Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2015 and 2014 Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2015 and 2014 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheets – General Fund ....................................................................................................3 Statements of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Statements of Fiduciary Net Position – Agency Funds ................................................................6 Notes to Financial Statements .......................................................................................................7 Other Reports Independent Auditors’ Report on 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 ................................................................24 Management Letter ........................................................................................................................26 Independent Accountants’ Report ..................................................................................................28 1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2015 and 2014, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Larry H. Ray Tax Collector 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2015 and 2014, and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2015, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015 and 2014, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statement is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 8, 2016 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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 Collier County, Florida Tax Collector Balance Sheets – General Fund See accompanying Notes to Financial Statements. 3 2015 2014 Assets Cash and cash equivalents 7,118,870$ 6,383,588$ Due from other funds 64,735 73,087 Prepaid rent 30,789 23,079 Prepaid expense 19,780 – Security deposit 4,628 4,628 Total assets 7,238,802$ 6,484,382$ Liabilities and fund balance Liabilities: Accounts payable 40,242$ 25,922$ Due to Collier County, Florida Board of County Commissioners 6,364,300 5,725,702 Due to other governmental agencies 834,260 732,758 Total liabilities 7,238,802 6,484,382 Fund balance: Nonspendable 55,197 27,707 Unassigned (55,197) (27,707) Total fund balance – – Total liabilities and fund balance 7,238,802$ 6,484,382$ September 30 Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance General Fund See accompanying Notes to Financial Statements. 4 2015 2014 Revenues: Commissions and fees 18,285,749$ 17,201,400$ Miscellaneous 254,225 234,947 Total revenues 18,539,974 17,436,347 Expenditures: General government: Personal services 9,708,288 9,344,705 Operating 1,587,856 1,587,153 Capital outlay 45,270 46,029 Total expenditures 11,341,414 10,977,887 Excess of revenues over expenditures 7,198,560 6,458,460 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,364,300) (5,725,702) Distribution of excess commissions and fees to other governmental agencies (834,260) (732,758) Total other financing uses (7,198,560) (6,458,460) Net change in fund balance – – Fund balance, beginning of year – – Fund balance, end of year –$ –$ Year Ended September 30 Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 17,408,353$ 17,408,353$ 18,285,749$ 877,396$ Miscellaneous 260,000 260,000 254,225 (5,775) Total revenues 17,668,353 17,668,353 18,539,974 871,621 Expenditures: General government: Personal services 10,040,774 10,040,774 9,708,288 332,486 Operating 1,825,647 1,809,178 1,587,856 221,322 Capital outlay 29,522 45,991 45,270 721 Total expenditures 11,895,943 11,895,943 11,341,414 554,529 Excess of revenues over expenditures 5,772,410 5,772,410 7,198,560 1,426,150 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (5,079,721) (5,079,721) (6,364,300) (1,284,579) Distribution of excess commissions and fees to other governmental agencies (692,689) (692,689) (834,260) (141,571) Total other financing uses (5,772,410) (5,772,410) (7,198,560) (1,426,150) Net change in fund balance – – – – Fund balance, beginning of year – – – – Fund balance, end of year –$ –$ –$ –$ Budget Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds September 30, 2015 and 2014 See accompanying Notes to Financial Statements. 6 2015 2014 Assets Cash and cash equivalents 7,152,324$ 6,817,938$ Accounts receivable 18,820 14,902 Total assets 7,171,144$ 6,832,840$ Liabilities Due to other funds 64,735$ 73,087$ Due to Collier County, Florida Board of County Commissioners 1,030,992 1,138,080 Due to other governmental agencies 6,048,339 5,536,216 Due to individuals and businesses 27,078 85,457 Total liabilities 7,171,144$ 6,832,840$ September 30 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 7 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector’s operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector’s office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector’s financial statements include only the funds of the Tax Collector’s office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These 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. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 8 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 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 liabilities of the current fiscal year). For this purpose, the Tax Collector 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. 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 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. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. 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 Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 9 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds – Fiduciary funds are used to account for assets held by the Tax Collector in a 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. Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board 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 another financing use-transfer out in the accompanying financial statements. Compensated Absences All full-time employees of the Tax Collector 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 and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 10 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within 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 against property in the County as specified in Florida Statutes Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter 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 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% 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 taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. 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 certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 11 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these 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. 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 accounting principles generally accepted in the United States of America. 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 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. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 12 3. Cash At September 30, 2015 and 2014, the carrying value of the Tax Collector’s cash was as follows: 2015 2014 Carrying Carrying Value Value Cash on hand 33,900$ 32,700$ Demand deposits 14,237,294 13,168,826 Total cash and cash equivalents 14,271,194$ 13,201,526$ Type Such amounts are reported as $7,118,870 and $7,152,324 for 2015 and $6,383,588 and $6,817,938 for 2014 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2015, 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 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 Tax Collector’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME 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 recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the state of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 13 3. Cash (continued) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 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 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 financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1 2014 Additions Deletions September 30 2015 Infrastructure 11,735$ -$ -$ 11,735$ Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,251,583 45,270 (74,655) 2,222,198 Total Capital Assets 2,375,232 45,270 (74,655) 2,345,847 Less accumulated depreciation: (2,105,422) (126,245) 74,451 (2,157,216) Total capital assets, net 269,810$ (80,975)$ (204)$ 188,631$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 14 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2014: October 1 2013 Additions Deletions September 30 2014 Infrastructure 11,735$ -$ -$ 11,735$ Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,313,698 46,029 (108,144) 2,251,583 Total Capital Assets 2,437,347 46,029 (108,144) 2,375,232 Less accumulated depreciation: (2,064,019) (149,546) 108,143 (2,105,422) Total capital assets, net 373,328$ (103,517)$ (1)$ 269,810$ 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 September 30 2014 Increase Decrease 2015 Accrued compensated absences 1,152,878$ 670,017$ (597,987)$ 1,224,908$ October 1 September 30 2013 Increase Decrease 2014 Accrued compensated absences 1,110,288$ 450,850$ (408,260)$ 1,152,878$ Of these liabilities, approximately $600,000 is expected to be paid during the fiscal year ending September 30, 2016, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 15 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 16 6. Pension Plans (continued)  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 17 6. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 18 6. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 19 6. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $598,808, $545,011, and $359,211 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 20 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Tax Collector follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description. The Tax Collector 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 financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) 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 for employees hired prior to June 1, 2015. 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Tax Collector’s agency had a net OPEB obligation of $13,851 and $14,077 as of September 30, 2015 and 2014, respectively. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 21 7. Other Postemployment Healthcare 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 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, 2015. The notes to the financial statements of the County disclose additional information regarding the other postemployment benefit plan as a whole. 8. Related-Party Transactions During the fiscal years ended September 30, 2015 and 2014, the Board paid commissions and fees to the Tax Collector that amounted to $16,391,328 and $15,458,070, respectively. At September 30, 2015 and 2014, the Tax Collector had a payable due to the Board of $7,395,292 and $6,863,782, respectively, comprised as follows: 2015 2014 Distribution of excess commissions and fees 6,364,300$ 5,725,702$ Agency funds due to the Board 1,030,992 1,138,080 7,395,292$ 6,863,782$ 9. Risk Management Collier County, Florida (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, 2015 and 2014, the Tax Collector was charged $2,833,407 and $2,800,412, respectively, by the County for participation in the risk management program. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 22 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 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 $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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 self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2015. The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2016 270,963$ 2017 247,105 2018 81,043 2019 83,469 2020 28,095 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 23 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $362,182 and $359,126 for the years ended September 30, 2015 and 2014, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2015 or 2014. 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 Collector. 24 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited, in accordance with the 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, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements, and have issued our report thereon dated January 8, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Larry H. Ray Tax Collector 25 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 26 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2015, and have issued our report thereon dated January 8, 2016. Auditor’s Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in that report which is dated January 8, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Larry H. Ray Tax Collector 27 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 28 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Larry Ray Tax Collector Collier County, Florida We have examined the Collier County Tax Collector, Collier County, Florida’s (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Tax Collector's compliance with those requirements. Our responsibility is to express an opinion on the Tax Collector's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Tax Collector’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 Comprehensive Annual Financial Report Collier County, Florida Year ended September 30, 2016 Cover photo courtesy of Raymond Milum, Jr. COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2016 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS DONNA FIALA, CHAIRMAN – DISTRICT 1 TIM NANCE, VICE‐CHAIRMAN – DISTRICT 5 GEORGIA A. HILLER, ESQ. – DISTRICT 2 TOM HENNING – DISTRICT 3 PENNY TAYLOR – DISTRICT 4 COUNTY MANAGER LEO E. OCHS, Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CHIEF FINANCIAL OFFICER DWIGHT E. BROCK CHIEF DEPUTY CLERK AND DIRECTOR OF FINANCE AND ACCOUNTING CRYSTAL K. KINZEL Prepared by the Office of the Clerk of the Circuit Court, Finance and Accounting Department COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Page Transmittal Letter .................................................................................................................................................................. i Certificate of Achievement ................................................................................................................................................. vii Organizational Chart ........................................................................................................................................................... viii FINANCIAL SECTION Independent Auditors’ Report ............................................................................................................................................. 1 Management’s Discussion and Analysis (Unaudited) ........................................................................................................ 4 Basic Financial Statements: Statement of Net Position ............................................................................................................................................ 16 Statement of Activities .................................................................................................................................................. 18 Balance Sheet – Governmental Funds ......................................................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .............................. 21 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Position .............................................................................................................. 23 General Fund ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) ................................................................................................................................................. 24 Bayshore Gateway Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) ...................................................................................... 27 Immokalee Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) ...................................................................................... 28 Statement of Net Position – Proprietary Funds ............................................................................................................ 29 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ...................................... 31 Statement of Cash Flows – Proprietary Funds .............................................................................................................. 32 Statement of Fiduciary Net Position – Agency Funds ................................................................................................... 34 Notes to the Financial Statements ................................................................................................................................ 35 Required Supplemental Information ................................................................................................................................ 81 Combining and Individual Fund Financial Statements and Other Supplemental Information: Nonmajor Governmental Funds Combining Balance Sheet ................................................................................................................................................... 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................... 98 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual (Non‐GAAP) .... 106 Nonmajor Enterprise Funds Combining Statement of Net Position ............................................................................................................................. 130 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................................. 131 Combining Statement of Cash Flows ................................................................................................................................ 132 Internal Service Funds Combining Statement of Net Position ............................................................................................................................. 134 Combining Statement of Revenues, Expenses and Changes Net Position ..................................................................... 135 Combining Statement of Cash Flows ............................................................................................................................... 136 Fiduciary Funds Combining Statement of Fiduciary Net Position ............................................................................................................. 138 Combining Statement of Changes in Fiduciary Net Position ........................................................................................... 139 COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2016 TABLE OF CONTENTS ‐ CONTINUED Component Units Combining Statement of Net Position .............................................................................................................................. 143 Combining Statement of Activities ................................................................................................................................... 144 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ...................................... 146 STATISTICAL SECTION (UNAUDITED) Net Position by Component .............................................................................................................................................. 148 Change in Net Position ..................................................................................................................................................... 149 Governmental Activities Tax Revenues by Source ........................................................................................................... 152 Fund Balances of Governmental Funds ........................................................................................................................... 153 Changes in Fund Balances of Governmental Funds ......................................................................................................... 154 Assessed Value and Estimated Actual Value of Taxable Property .................................................................................. 156 Property Tax Rates – All Direct and Overlapping Governments ..................................................................................... 157 Principal Tax Payers County‐Wide ................................................................................................................................... 158 Property Tax Levies and Collections ................................................................................................................................ 159 Ratios of Outstanding Debt by Type ................................................................................................................................ 160 Legal Debt Margin Information ........................................................................................................................................ 161 Direct, Overlapping and Underlapping Governmental Activities Debt .......................................................................... 161 Pledged‐Revenue Coverage ............................................................................................................................................. 162 Demographic and Economic Statistics ............................................................................................................................. 163 Principal Employers .......................................................................................................................................................... 164 Budgeted Full‐Time Equivalent County Employees by Function .................................................................................... 165 Operating Indicators by Function .................................................................................................................................... 166 Capital Asset Statistics by Function ................................................................................................................................. 167 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................................................... 171 Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the State of Florida ..................................................................................................................... 173 Schedule of Expenditures of Federal Awards and State Financial Assistance ................................................................. 176 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ........................................... 181 Schedule of Findings and Questioned Costs ..................................................................................................................... 182 Summary Schedule of Prior Audit Findings ...................................................................................................................... 187 Corrective Action Plan ....................................................................................................................................................... 188 THIS PAGE INTENTIONALLY LEFT BLANK Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.collierclerk.com Email- collierclerk@collierclerk.com County of Collier CLERK OF THE CIRCUIT COURT COLLIER COUNTY COURTHOUSE April 11, 2017 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, 2016. 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 and Comptroller’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. Chapter 218.39 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, 2016 the independent auditor, CliftonLarsonAllen LLP, issued an unmodified opinion on the financial statements. Their report 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 Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental Entity Audits. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state financial assistance and the independent auditors’ report on compliance and internal control over compliance with requirements applicable to each major federal program and state project, are included in the Federal and State Single Audit Section of this report. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Dwight E. Brock - Clerk of Circuit Court 3315 TAMIAMI TRL E STE 102 NAPLES, FL 34112-5324 P.O. BOX 413044 NAPLES, FL 34101-3044 Clerk of Courts  Comptroller  Auditor  Custodian of County Funds ii Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement 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 Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and is made up of five residents elected by voters. In addition to the County Commissioners, voters elect the following five constitutional officers: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include law enforcement, emergency management, fire and EMS services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports and a transit system. Budgets are prepared annually. Formal budgetary integration is employed as a management control throughout the year. The Board of County Commissioners conducts budget workshops during June of each year. The Board’s proposed budget is released by July 15, in accordance with Florida Statutes. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to state statute. Public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state’s largest county at 2,026 square miles, is on the southwest coast of Florida, directly west of Miami. With a 2016 population of 353,936 (a 6 percent increase over the last ten years), Collier County has been considered to be one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 314,323) and three municipalities: the Cities of Naples (pop. 21,512), Marco Island (pop. 17,690) and Everglades (pop. 411). The County’s economic base is concentrated in tourism, agriculture, fishing, ranching and forestry with a growing services economy and an emerging technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. Taxable property market valuation for fiscal year 2016 totaled $70.1 billion, or a very high $198,027 per capita. The County’s millage for General Fund operations in fiscal year 2016 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2016 annual County unemployment rate stood at 4.9%, while the statewide average is 5.0%. Income levels are high, with a per capita personal income of $78,473. iii LONG TERM FINANCIAL PLANNING The County annually performs a three‐year projection of major ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing annual budget policy. On an annual basis the County prepares and adopts a five‐year 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). The total CIP projects planned for fiscal years 2017‐2021 is $764.6 million. Included in the County’s current CIP for fiscal years 2017‐2021 are approximately $283.7 million in water and wastewater projects, $281.6 million in transportation projects, $32.2 million in stormwater projects and $35.6 million in government facilities projects. In addition, parks and recreation projects of approximately $44.8 million are planned, as well as $43.8 million for tourist development funded projects, $19.9 million in solid waste projects, $10.1 million in library projects, $9.5 million in public safety projects and miscellaneous projects totaling $3.4 million. None of the fiscal year 2017 – 2021 Capital Improvement Program is currently planned to be funded by bond or loan proceeds. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as revenue in the following year, maintaining a recommended General Fund unassigned fund balance of between 8% and 16% of actual expenditures and net operating transfers, the assessment of impact fees at such levels as allowed by law and supported by studies, and the earmarking of gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. The Collier County Debt Management Policy provides that a smaller net present value savings may be considered, but only on a case‐by‐case basis. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. Consistent with Collier County’s Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. During fiscal year 2016, the County Water and Sewer District refunded its remaining Series 2006 Water and Sewer Revenue Bonds. This refinancing achieved a net present value savings of over 5% and is further described in Note 6 to the financial statements. The Clerk’s Finance and Accounting Department monitors the daily cash needs of the County and invests the County’s portfolio in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper and bankers’ acceptances. The weighted average maturity of the total managed portfolio, to first call or maturity, was .76 years as of September 30, 2016. The average yield for fiscal year 2016 was .94%, which constitutes a reduction from historical rates, but an iv increase over recent years. Changes in the fair value of investments are recorded as part of interest income in the financial statements. AWARDS GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2015. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past thirty years, from fiscal year 1986 to 2015. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2015. 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 thirty 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 and Comptroller for its annual budget for the fiscal year beginning October 1, 2015. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk’s Office has received this award for the last fourteen consecutive 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 v personnel who contribute to its production. In particular, we would like to express our appreciation to Kelly Jones, Finance Manager, Robin Sheley, Operations Manager, Raymond Milum, Jr., Accounting Manager and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Division Administrators and the Department Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Crystal K. Kinzel, Chief Deputy Clerk and Director of Finance and Accounting, at (239) 252‐6299. Respectfully, Dwight E. Brock Clerk of the Circuit Court and Comptroller Crystal K. Kinzel Chief Deputy Clerk Director of Finance and Accounting Derek M. Johnssen, CPA Deputy Clerk Assistant Finance Director Certificate of Achievement for Excellence in Financial Reporting 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, 2015. This was the thirtieth 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. Board of County CommissionersPhone 252‐8097Penny TaylorTimNanceDonna FialaGeorgia A. HillerTomHenningJeff KlatzkowCounty AttorneyPhone 252‐8400Leo Ochs, Jr.County ManagerPhone 252‐8383ExecutiveManager of CorporateBusiness OperationsTim DurhamPhone 252‐8383Communications& Customer RelationsMike Sheffield,ManagerPhone 252‐8383Bureau of Emergency ServicesFacilities ManagementFleet Management Human ResourcesInformation TechnologyProcurement Services Records Management Risk ManagementCITIZENSAbe SkinnerProperty Appraiser252‐8141Larry RayTax Collector252‐8171KevinRamboskSheriff252‐4434Dwight BrockClerk of Courts252‐2646Jennifer EdwardsSupervisor of Elections252‐8450Judicial Courts & Judges252‐8800Administrative Services DepartmentLen Golden Price, Department HeadPhone 252‐3646Domestic Animal ServicesCommunity and Human ServicesHealthLibraryMuseumOperations and Veterans ServicesParks & RecreationPublic Transit & Neighborhood EnhancementUniversity Extension ServicePublic Services DepartmentSteve Carnell, Department HeadPhone 252‐8468Building Plan Review & InspectionCapital Project Planning, Impact Fees & Program ManagementCode EnforcementDevelopment ReviewOperations & Regulatory ManagementOperations SupportRoad MaintenanceTransportation EngineeringZoningGrowth Management DepartmentDavid Wilkison,Department HeadPhone 252‐2370Operation SupportEngineering & Project ManagementSolid & Hazardous WasteWastewaterWaterPublic Utilities DepartmentG. George Yilmaz, Department HeadPhone 252‐2540TourismJack Wert,DirectorPhone 252‐2384Pelican Bay ServicesNeil Dorrill,DirectorPhone 597‐1749Economic& Business DevelopmentJace Kentner,Interim DirectorPhone 252‐8358Corporate Financial & Management ServicesMark Isackson, DirectorPhone 252‐8383Mark StrainChiefHearing ExaminerPhone 252‐4446Nick CasalanguidaDeputy County ManagerPhone 252‐8383Michael NiemanCorporate Compliance and Internal Review ManagerPhone 252‐8383 FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements 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 (County), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund, the Bayshore Gateway Redevelopment Agency special revenue fund, and the Immokalee Redevelopment Agency special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis (MD&A) on pages 4 – 15, the schedules of the county’s proportionate share of the net pension liability and of county contributions on page 81, and the other postemployment benefits schedule of funding progress for the retiree health plan on page 82 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, is also presented for purposes of additional analysis and is also not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County, Florida Other Matters (Continued) Other Information (Continued) The combining and individual fund financial statements and other supplemental information and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 22, 2017, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 3 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller 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, 2016. 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‐v of this report. Financial Highlights  Collier County’s assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2016 by $2,484,013,381. Of this amount, $171,764,839 represents unrestricted net position and may be used to meet future County obligations.  The County’s total net position increased by $44,490,810 when compared to fiscal year 2015, with a $27,322,069 increase from governmental activities and a $17,168,741 increase resulting from business‐ type activities.  As of September 30, 2016 Collier County’s governmental fund financial statements showed combined ending fund balances of $441,586,665, an increase of $29,052,786 over the previous fiscal year. Of the total combined ending governmental fund balance, $53,872,028 is reported as unassigned.  The General Fund reported an unassigned fund balance of $53,960,944 at September 30, 2016, a decrease in unassigned General Fund balance of $1,041,240 when compared to September 30, 2015.  Total face value of bonded debt, notes, outstanding loans and capital leases owed by Collier County decreased by $45,380,286 during fiscal year 2016, with a decrease in governmental activities debt of $20,743,470 and a decrease in the business‐type activities debt of $24,636,816. In May of 2016, the Collier County Water and Sewer District issued the Series 2016A County Water and Sewer Bonds to current refund the remaining Series 2006 Collier County Water and Sewer Revenue Bonds. Additional information on debt activity can be found in Note 6 to the financial statements beginning on page 54. 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. Collier County’s basic financial statements include government‐wide and fund financial statements, as well as notes to the basic financial statements. This report also contains a statistical section, single audit and other supplementary information in addition to the basic financial statements. Government‐Wide Financial Statements Government‐wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. The Statement of Net Position shows the financial position of Collier County as of September 30, 2016. The statement shows the County’s assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. 4 The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business‐type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business‐type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities reported under the government‐wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County’s near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government’s near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government‐wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County’s statements include three major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies. While there are many smaller governmental funds under Collier County management, they are aggregated in a total column named “other governmental funds”. Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for any non‐major governmental fund required to adopt an annual budget is presented in the combining statements 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 29 to 33 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, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund are presented individually as major funds. 5 Internal service funds are primarily 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, fleet operations and information technology. 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 on page 34 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 35 to 79 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 85. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position 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. The statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information as well as auditor reports. Government‐Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $2,484,013,381 as of the fiscal year ending September 30, 2016 for Collier County. Positive balances were reported in all categories of net position in the governmental and business‐ type activities for fiscal year 2016, as well as fiscal year 2015. Collier County’s net position at September 30, 2016 decreased by $6,449,867 for unrestricted net position and increased $33,835,875 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County’s ongoing obligations. Increases in restricted net position were mainly due to a 40.0% increase in restricted net position related to transportation capital projects and a 29.3% increase in total impact fee collections, which are restricted for growth related capital expansion. The fiscal year 2015 implementation of GASB Statements No. 68 and 71, related to pensions, had a significant impact on the reporting of the County’s long term liabilities and net position for both governmental and business‐type activities. These statements require the County to record its proportionate share of the long term liability and deferred inflows and outflows associated with the Florida Retirement System’s defined pension benefit plan and the retiree health insurance subsidy program. 6 Collier County’s investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 78.4% of net position as of September 30, 2016, compared to 79.2% as of September 30, 2015. During fiscal year 2016, the County’s net investment in capital assets increased by $17,104,802. Capital assets are used to provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County’s net position and changes in net position for the fiscal years ended September 30, 2015 and 2016, shown in condensed form: 2016 2015 2016 2015 2016 2015 2015‐2016 Current and other assets 546.8$ 509.9$ 250.4$ 239.4$ 797.2$ 749.3$ 6.4% Capital assets, net 1,565.0 1,571.2 904.8 910.3 2,469.8 2,481.5 (0.5%) Total assets 2,111.8 2,081.1 1,155.2 1,149.7 3,267.0 3,230.8 1.1% Deferred outflows of resources 102.0 41.7 23.2 10.8 125.2 52.5 138.5% Long‐term liabilities 562.0 490.9 215.5 211.0 777.5 701.9 10.8% Current liabilities 91.7 81.1 34.4 34.1 126.1 115.2 9.2% Total liabilities 653.7 572.0 249.9 245.1 903.6 817.1 10.6% Deferred inflows of resources 4.1 22.2 0.4 4.5 4.5 26.7 (83.1%) Net position: Net investment in capital assets 1,225.5 1,217.2 723.0 714.2 1,948.5 1,931.4 0.9% Restricted 328.0 298.3 35.8 31.6 363.8 329.9 9.2% Unrestricted 2.5 13.1 169.3 165.1 171.8 178.2 (1.6%) Total net position 1,556.0$ 1,528.6$ 928.1$ 910.9$ 2,484.1$ 2,439.5$ 1.8% Collier County's Schedule of Net Position (in millions) Total Governmental Activities Business‐type Activities Total Percentage Change 7 2016 2015 2016 2015 2016 2015 2015‐2016 Revenues Program revenues: Fines, fees and charges for services 75.0$ 73.5$ 183.2$ 173.2$ 258.2$ 246.7$ 4.7% Operating grants and contributions 26.4 35.5 4.4 5.1 30.8 40.6 (24.1%) Capital grants and contributions 36.8 30.0 25.4 21.2 62.2 51.2 21.5% General revenues: Property taxes 281.1 259.8 ‐ ‐ 281.1 259.8 8.2% Other taxes and shared revenues 101.4 97.2 ‐ ‐ 101.4 97.2 4.3% Interest income 4.9 5.1 2.0 2.2 6.9 7.3 (5.5%) Miscellaneous 6.0 17.5 0.2 0.1 6.2 17.6 (64.8%) Total revenues 531.6 518.6 215.2 201.8 746.8 720.4 3.7% Expenses General government 104.2 93.7 ‐ ‐ 104.2 93.7 11.2% Public safety 205.3 174.9 ‐ ‐ 205.3 174.9 17.4% Physical environment 22.5 22.8 ‐ ‐ 22.5 22.8 (1.3%) Tr anspor ta tion 70.6 70.3 ‐ ‐ 70.6 70.3 0.4% Economic environment 11.3 9.3 ‐ ‐ 11.3 9.3 21.5% Human services 14.4 13.5 ‐ ‐ 14.4 13.5 6.7% Culture and recreation 49.5 45.1 ‐ ‐ 49.5 45.1 9.8% Interest on long‐term debt 12.1 12.9 ‐ ‐ 12.1 12.9 (6.2%) Water and sewer ‐ ‐ 130.8 122.8 130.8 122.8 6.5% Solid waste ‐ ‐ 39.3 36.4 39.3 36.4 8.0% Emergency medical services ‐ ‐ 26.5 24.1 26.5 24.1 10.0% Airport authority ‐ ‐ 4.4 4.8 4.4 4.8 (8.3%) Mass transit ‐ ‐ 11.3 10.4 11.3 10.4 8.7% Total expenses 489.9 442.5 212.3 198.5 702.2 641.0 9.5% Increase in net position before net transfers 41.7 76.1 2.9 3.3 44.6 79.4 (43.8%) Transfers, net (14.3) (14.2) 14.3 14.2 ‐ ‐ ‐ Change in net position 27.4 61.9 17.2 17.5 44.6 79.4 (43.8%) Net position – beginning 1,528.6 1,600.9 910.9 920.2 2,439.5 2,521.1 (3.2%) Restatement of net position ‐ (134.2) ‐ (26.8) ‐ (161.0) ‐ Net position – ending 1,556.0$ 1,528.6$ 928.1$ 910.9$ 2,484.1$ 2,439.5$ 1.8% Total Collier County's Schedule of Changes in Net Position (in millions) Governmental Activities Business ‐type Activities Total Percentage Change 8 Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fee, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenses followed by general government. ‐ 50 100 150 200 250 General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and RecreationMillionsRevenues and Expenses Governmental Activities Fiscal Year 2016 Revenues Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by fines, fees and charges for services. Property Taxes 53% Fines, Fees and Charges for Services 14% Operating Grants and Contributions 5% Capital Grants and Contributions 7% Gas Taxes 4% Sales Taxes 8% Tourist Taxes 4%Other Income 5% Revenue by Type Governmental Activities Fiscal Year 2016 9 Revenues and expenses are shown by business‐type activity. The Water and Sewer system is the largest business‐type activity followed by the Solid Waste system. ‐ 20 40 60 80 100 120 140 160 Water and Sewer Solid Waste Emergency Medical Services Airport Authority Mass TransitMillionsRevenues and Expenses Business‐type Activities Fiscal Year 2016 Revenues Expenses Revenues for business‐type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Fines, Fees and Charges for Services 85% Operating Grants and Contributions 2% Capital Grants and Contributions 12% Other Income 1% Revenue by Type Business‐type Activities Fiscal Year 2016 10 Governmental Activities The current year increase in the net position of governmental activities amounted to $27,322,069, an increase of 1.8% when compared to the previous year’s net position. The previous fiscal years’ increase in net position was 4.2%. The current years’ increase is mainly due to the following: Overall, revenues related to governmental activities increased by 2.5%, or $12,960,436 while expenses increased by 10.7%, or $47,490,517. Governmental activities revenues increased primarily due to an increase in total ad valorem taxes collected in fiscal year 2016 of $21,356,784 when compared to fiscal year 2015. In addition, Half Cent Sales Tax and Gas Tax collections increased a combined 5.2% over fiscal year 2015, or $3,017,685. Governmental activities expenses increased primarily due to increases in the public safety and general government functional areas. Public safety expenses increased predominately due to an increase in pension expense over the amount recognized in fiscal year 2015. General government expenses increased due to increases in pension expense, salaries and maintenance expense related to facilities. Business‐type Activities The increase in net position related to business‐type activities amounted to $17,168,741 in the aggregate, representing a 1.9% increase over the previous year’s net position. The previous fiscal years’ increase in net position was also 1.9%. The current years’ increase is mainly due to the following: The majority of the increase, or $11,902,262, can be attributed to the Collier County Water and Sewer District (District). The increase in the District’s net position is largely due to a 5.0% rate increase that went in to effect October 1, 2015. In addition, water and sewer impact fee collections, charged to new construction, increased by 7.9% when compared to fiscal year 2015. Solid waste contributed $2,534,151 to the overall increase in business‐type activities net position. User charges increased by $2,821,006, or 7.2% over fiscal year 2015, primarily as a result of a 6.9% increase in residential and commercial municipal waste tonnage and construction and demolition waste being accepted into the Naples landfill during fiscal year 2016. Operating costs increased primarily due to an increase in landfill operating costs. Emergency Medical Services contributed $2,751,781 to the overall increase in business‐type activities net position. User charges increased by $866,066 over fiscal year 2015 as a result of a 3.5% increase in ambulance calls over the same interval. Operating transfers from the governmental activities exceeded the operating loss generated by the operation of Emergency Medical Services. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Fund, Debt Service Funds and Capital Project Funds. As of September 30, 2016, Collier County governmental funds reported combined fund balances of $441,586,665, an increase of $29,052,786 when compared to prior year combined fund balances. The governmental funds had non‐spendable fund balances of $6,730,508 consisting of inventory, prepaid items, notes receivable and General Fund and Other Governmental Fund advances to other funds. The restricted fund balance was $324,597,817 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $110,258,340 in fund 11 balance, $26,069,145 is classified as committed, $30,317,167 is recorded as assigned and $53,872,028 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2016:  The General Fund is the primary operating fund of Collier County. At September 30, 2016, total fund balance in the General Fund was $59,573,533, of which $53,960,944 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 17.1%. The total fund balance decreased by $618,110 or 1.0%, compared to the September 30, 2015 total fund balance.  The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle. During fiscal year 2016, the Bayshore Gateway Community Redevelopment Agency collected $1,124,200 in tax increment revenues and was reimbursed $81,037 for stormwater improvements. In addition, the agency received $122,246 in miscellaneous revenues for rents. Operating expenditures of $2,612,209 were associated with the Bayshore Gateway Triangle Community Redevelopment Agency, including a $2,155,231 write down of land held for resale. In addition, capital expenditures of $90,042 were made for stormwater improvements.  The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2016, the Immokalee Community Redevelopment Agency collected $440,300 in tax increment revenues. Operating expenditures of $381,889 were associated with the Immokalee Community Redevelopment Agency. 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, 2016, total net position amounted to $926,808,495 for enterprise funds, as compared to $909,442,595, as of September 30, 2015, an increase of $17,365,900. Net position changes as a result of operations, non‐operating revenues and expenses, capital contributions and grants and donations. The Collier County Water and Sewer District’s activities represent the largest share of the increase in the business‐type net position. For the year ended September 30, 2016, the Collier County Water and Sewer District reported capital grants and contributions of $22,737,854, which consists of water and sewer impact fees of $13,643,674, $8,941,251 in developer infrastructure contributions and other capital contributions of $152,929. 2016 2015 County Water and Sewer (2,710,740)$ 1,698,445$ Solid Waste Disposal 2,550,706 2,659,868 Emergency Medical Services (13,307,366) (11,464,061) Non ‐major enterprise funds (11,419,753) (10,078,334) Total (24,887,153)$ (17,184,082)$ Net Operating Income/(Loss) The Collier County Water and Sewer District’s net operating income decreased by $4,409,185 when compared to fiscal year 2015. The decrease in net operating income was primarily the result of a 10.1% increase in total operating expenses. The District added eighteen (18) full time equivalent positions during fiscal year 2016. In addition, several substantial repair and maintenance projects were performed during fiscal year 2016. County Water and Sewer payments in lieu of taxes paid to the General Fund of $5,351,100 were reclassified from operating expense to operating transfers for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. 12 The Solid Waste Disposal fund’s net operating income decreased by $109,162 when compared to fiscal year 2015. The marginal change in net operating income was the result of a 6.9% increase in residential and commercial municipal waste tonnage and construction and demolition waste offset by an increase in landfill operating costs during fiscal year 2016. Total operating expenses, including depreciation, increased by $2,906,764, or 8.0%, when compared to fiscal year 2015. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $220,600 were reclassified from operating expense to operating transfers for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Emergency Medical Services fund’s net operating income decreased by $1,843,305 when compared to fiscal year 2015. The decrease in net operating income was the result of an 11.3% increase in total operating cost, offset by an $866,066 increase in charges for services. Operating expenses increased mainly due to increased personal services costs, including pension expense. Capital Assets Collier County’s financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County’s investment in capital assets for the governmental and business‐type activities amounted to $2,469,722,865, net of accumulated depreciation. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year, net of depreciation, decreased by $11,784,789 when compared to the previous year. There was a decrease in the governmental activities net capital assets of $6,250,938, or .4%, while the business‐type activities capital assets decreased by $5,533,851, or .6%. The major capital asset activities during the current and previous fiscal years are as follows: Capitalization as construction in process of $46,544,228 for governmental activity related costs including $7,068,344 related to county wide 800 MHz system upgrades, $7,990,179 for improvements to Collier Boulevard from Golden Gate Boulevard to Green Boulevard and $8,326,663 for improvements to Golden Gate Boulevard from Wilson Boulevard to Everglades Boulevard. A total of $4,503,944 was spent on the acquisition and renovation of a new Supervisor of Election’s building, new Sheriff’s substation and renovation of the Collier Jail’s heating, ventilation and air conditioning system. The remaining $18,655,098 is related to $9,848,841 in other transportation projects, $2,384,641 in other physical environment projects, $2,568,488 in culture and recreation projects and $3,853,128 in other capital projects. The business‐type activities capitalized $27,041,589 of construction in process during fiscal year 2016 including $4,693,000 for utility force main transmission system improvements, $2,144,513 for master pump systems improvements and $5,797,929 for distribution system improvements. In addition, $1,299,872 was related to the solid waste fund’s ongoing project to construct hammerheads (turnarounds) on rural roads to facilitate trash pickup. The remaining $13,106,275 was made up of $10,701,579 in other County Water and Sewer projects, $11,021 in other airport projects, $743,522 in other solid waste projects and $1,650,153 in Mass Transit. Total purchases of land and non‐depreciable assets were $5,908,695 for fiscal year 2016, compared to $5,025,821 for fiscal year 2015. Additional information regarding Collier County’s capital assets can be found in Note 5 beginning on page 53 of this report. 13 Debt Administration At September 30, 2016, Collier County had total bonded debt, notes and loans, net of premiums, of $516,823,410, a decrease of $35,389,275 from the previous year. The following table illustrates the balances of all bonds, notes and loans, net, for the fiscal years ended September 30, 2016 and 2015: 2016 2015 Limited General Obligation Bonds, net 2,941,353$ 3,368,515$ Revenue Bonds, net 412,330,561 437,967,928 State Revolving Fund Loans 95,642,438 104,410,895 Miscellaneous Notes 5,909,058 6,465,347 Total 516,823,410$ 552,212,685$ Outstanding Debt On May 26, 2016 the Collier County Water and Sewer District issued the Series 2016A Water and Sewer Refunding Revenue Bonds in the par amount of $48,105,000 for the purpose of currently refunding the District’s remaining Series 2006 Revenue Bonds. 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 54 of this report. General Fund Budgetary Highlights During the current fiscal year, the General Fund expenditure appropriations increased by $3,184,406. Significant variances between the original budget and the final amended budget are listed below: $338,200 increase in charges for services and Clerk’s overall budget to recognize additional revenues received and provide for additional data processing software and minor computer equipment. $346,032 increase in County Attorney operating due to re‐budgeting of lapsed appropriations from the previous fiscal year. $637,160 increase in charges for services and Facilities Management operating related to an increase in maintenance requests. $1,233,000 increase in charges for services and Sheriff’s agency personal services related to special detail duties. $421,600 increase in Economic Development operating due to re‐budgeting of lapsed appropriations from the previous fiscal year as well as additional funding for a Soft Landing Accelerator project. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2016. Tax revenues were under budget by $9,232,643 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4% to 1%, depending on the date of payment. General Fund general government expenditures were under budget primarily due to $1,673,668 in unspent budget related to goods and services contracted for in 2016 that had not been received as of September 30, 2016 as well as an effort to reduce spending in all departments. 14 Economic Factors and Year 2017 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2017 budget: A 7% increase in countywide taxable property values. Millage neutral General Fund and Unincorporated Area General Fund tax rates. Expected year on year increases in sales tax and state shared revenues of 2.7% and 3.3%, respectively. No new fees or service charges to Collier County residents. Expected expanded position requests to meet the increase in service expectations. Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff and Tax Collector). During fiscal year 2016, the General Fund unassigned fund balance decreased by $1,041,240 to $53,960,944. As of December 20, 2016, $48,199,500 of the fiscal year 2016 unassigned fund balance has been appropriated as carryforward for fiscal year 2017, with $35,907,900 budgeted in reserves. Contact Information This financial report is intended to give the user a general overview of Collier County Government’s finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112‐5746 Our office may also be contacted via the internet at www.collierclerk.com. 15 Governmental Business‐type Component Activities Activities Total Units ASSETS Current assets: Cash and investments 187,998,460$ 184,696,473$ 372,694,933$ 292,288$ Cash with fiscal agent 11,887,225 ‐11,887,225 ‐ Trade receivables, net 1,123,921 13,684,759 14,808,680 ‐ Special assessments receivable ‐31,435 31,435 ‐ Interest receivable 279,016 405,267 684,283 ‐ Due from other governments 3,471,443 424,064 3,895,507 ‐ Internal balances (2,683,492) 2,683,492 ‐ ‐ Deposits 55,736 ‐55,736 ‐ Inventory 2,879,141 5,719,060 8,598,201 ‐ Prepaid costs 70,508 110,363 180,871 ‐ Restricted assets: Cash and investments 19,485,205 6,481,112 25,966,317 ‐ Trade receivables, net 1,211,795 48,571 1,260,366 ‐ Notes receivable 54,611 ‐54,611 ‐ Interest receivable 455,393 33,958 489,351 ‐ Due from other governments 20,898,854 4,267,562 25,166,416 ‐ Deposits 1,875 ‐1,875 ‐ Inventory for resale 9,796,692 ‐9,796,692 ‐ Total current assets 256,986,383 218,586,116 475,572,499 292,288 Noncurrent assets: Restricted assets: Cash and investments 282,803,893 31,845,588 314,649,481 ‐ Notes receivable 484,896 ‐484,896 ‐ Impact fee receivable 4,926,021 ‐4,926,021 ‐ Special assessments receivable 4,154 10,419 14,573 ‐ Notes receivable 1,597,726 ‐1,597,726 ‐ Unamortized bond insurance 13,079 ‐13,079 ‐ Capital assets: Land and non‐depreciable capital assets 475,133,997 85,861,683 560,995,680 ‐ Depreciable capital assets, net 1,089,790,702 818,936,483 1,908,727,185 ‐ Total noncurrent assets 1,854,754,468 936,654,173 2,791,408,641 ‐ Total assets 2,111,740,851 1,155,240,289 3,266,981,140 292,288 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 12,447,091 4,977,541 17,424,632 ‐ Deferred outflows of resources related to pensions 89,580,431 18,199,822 107,780,253 ‐ Total deferred outflows of resources 102,027,522$ 23,177,363$ 125,204,885$ ‐$ Primary Government COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2016 The notes to the financial statements are an integral part of this statement. 16 Governmental Business‐type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable 15,840,476$ 11,851,906$ 27,692,382$ ‐$ Wages payable 8,129,664 1,630,949 9,760,613 ‐ Retainage payable 829,492 1,101,269 1,930,761 ‐ Due to other governments 4,043,437 3,874 4,047,311 ‐ Self‐insurance claims payable 6,283,371 ‐ 6,283,371 ‐ Compensated absences 9,342,255 2,225,263 11,567,518 ‐ Capital lease obligations 621,513 382,180 1,003,693 ‐ Notes payable 558,121 ‐ 558,121 ‐ Unearned revenue 424,133 52,983 477,116 ‐ Net pension liability 1,962,146 356,541 2,318,687 ‐ Interest payable 4,896,544 1,530,753 6,427,297 ‐ Bonds and loans payable 20,340,000 7,085,210 27,425,210 ‐ Liabilities payable from restricted assets: Accounts payable 8,387,772 1,993,430 10,381,202 ‐ Wages payable 1,231,150 2,039 1,233,189 ‐ Retainage payable 3,045,725 127,662 3,173,387 ‐ Refundable deposits 1,078,103 78,851 1,156,954 ‐ Notes payable ‐ 64,255 64,255 ‐ Due to other governments 4,706,408 38,011 4,744,419 ‐ Unearned revenue ‐ 93,305 93,305 ‐ Bonds and loans payable ‐ 5,827,937 5,827,937 ‐ Total current liabilities 91,720,310 34,446,418 126,166,728 ‐ Noncurrent liabilities: Self‐insurance claims payable 1,618,799 ‐ 1,618,799 ‐ Compensated absences 17,321,005 556,315 17,877,320 ‐ Capital lease obligations 315,801 864,848 1,180,649 ‐ Notes payable 5,286,682 ‐ 5,286,682 ‐ Landfill post‐closure liability ‐ 1,883,503 1,883,503 ‐ Net OPEB obligation 3,875,092 ‐ 3,875,092 ‐ Net pension liability 223,315,901 44,777,387 268,093,288 ‐ Bonds and loans payable, net 310,251,339 167,409,866 477,661,205 ‐ Total noncurrent liabilities 561,984,619 215,491,919 777,476,538 ‐ Total liabilities 653,704,929 249,938,337 903,643,266 ‐ DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 4,097,008 432,370 4,529,378 ‐ NET POSITION Net investment in capital assets 1,225,519,574 723,000,077 1,948,519,651 ‐ Restricted for: Growth related capital expansion 97,368,645 23,507,009 120,875,654 ‐ Transportation capital projects 44,659,573 ‐ 44,659,573 ‐ Tourist development 65,047,351 ‐ 65,047,351 ‐ Conservation 33,253,360 ‐ 33,253,360 ‐ Community redevelopment 10,449,604 ‐ 10,449,604 ‐ Grants 6,159,788 3,896,465 10,056,253 ‐ Debt service 266,760 8,056,609 8,323,369 ‐ Nonexpendable purposes ‐ other 1,582,800 ‐ 1,582,800 ‐ Special revenues ‐ other 69,180,927 ‐ 69,180,927 ‐ Renewal and replacement ‐ 300,000 300,000 ‐ Unrestricted 2,478,054 169,286,785 171,764,839 292,288 Total net position 1,555,966,436$ 928,046,945$ 2,484,013,381$ 292,288$ Primary Government 17 Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government 104,187,990$ 35,184,120$ 1,043,509$ 2,940,047$ Public safety 205,347,062 25,276,222 4,465,612 3,880,657 Physical environment 22,500,001 586,745 1,465,908 1,192,931 Transportation 70,560,064 4,879,501 9,959,877 18,515,473 Economic environment 11,323,170 104,487 6,771,076 20,170 Human services 14,433,560 539,044 2,461,019 116,443 Culture and recreation 49,525,583 8,392,929 220,248 10,152,508 Interest and fiscal charges 12,077,226 ‐‐‐ Total governmental activities 489,954,656 74,963,048 26,387,249 36,818,229 Business‐type Activities: Water and sewer 130,791,857 123,856,151 ‐22,608,100 Solid waste 39,270,697 41,918,294 112,552 ‐ Emergency medical services 26,529,274 13,161,018 65,176 ‐ Airport authority 4,402,169 3,072,836 ‐529,329 Mass transit 11,332,459 1,224,647 4,256,647 2,229,804 Total business‐type activities 212,326,456 183,232,946 4,434,375 25,367,233 Total primary government 702,281,112 258,195,994 30,821,624 62,185,462 Component Units: Industrial Development Authority 35,555$ 2,550$ ‐$‐$ Health Facilities Authority 3,466 50 ‐‐ Housing Finance Authority 2,636 75 ‐‐ Educational Facilities Authority 12,563 50 ‐‐ Total component units 54,220$ 2,725$ ‐$‐$ General revenues: Property taxes Gas taxes Sales taxes Tourist taxes Communications services tax State revenue sharing Other taxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in pet position Net position ‐ beginning Net position ‐ ending The notes to the financial statements are an integral part of this statement. FUNCTIONS/PROGRAMS COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Program Revenues 18 Governmental Business‐type Component Activities Activities Total Units (65,020,314)$ ‐$(65,020,314)$ ‐$ (171,724,571) ‐ (171,724,571) ‐ (19,254,417) ‐ (19,254,417) ‐ (37,205,213) ‐ (37,205,213) ‐ (4,427,437) ‐ (4,427,437) ‐ (11,317,054) ‐ (11,317,054) ‐ (30,759,898) ‐ (30,759,898) ‐ (12,077,226) ‐ (12,077,226) ‐ (351,786,130) ‐ (351,786,130) ‐ ‐ 15,672,394 15,672,394 ‐ ‐ 2,760,149 2,760,149 ‐ ‐ (13,303,080) (13,303,080) ‐ ‐ (800,004) (800,004) ‐ ‐ (3,621,361) (3,621,361) ‐ ‐ 708,098 708,098 ‐ (351,786,130) 708,098 (351,078,032) ‐ (33,005)$ (3,416) (2,561) (12,513) (51,495)$ 281,135,706 ‐ 281,135,706 ‐ 20,478,239 ‐ 20,478,239 ‐ 40,658,974 ‐ 40,658,974 ‐ 21,838,332 ‐ 21,838,332 ‐ 4,702,746 ‐ 4,702,746 ‐ 11,099,695 ‐ 11,099,695 ‐ 2,577,194 ‐ 2,577,194 ‐ 4,891,181 2,010,391 6,901,572 108 5,976,442 199,942 6,176,384 ‐ (14,250,310) 14,250,310 ‐‐ 379,108,199 16,460,643 395,568,842 108 27,322,069 17,168,741 44,490,810 (51,387) 1,528,644,367 910,878,204 2,439,522,571 343,675 1,555,966,436$ 928,046,945$ 2,484,013,381$ 292,288$ Net (Expense) Revenue and Changes in Net Position Primary Government 19 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Funds Agency Agency Funds Funds ASSETS Cash and investments 67,854,846$ 957,371$ 337,697$ 363,069,357$ 432,219,271$ Cash with fiscal agent ‐ ‐ ‐ 11,887,225 11,887,225 Receivables: Interest 90,287 1,553 536 557,174 649,550 Trade, net 548,279 ‐ ‐ 1,782,657 2,330,936 Notes 1,597,726 ‐ ‐ 539,507 2,137,233 Impact Fee ‐ ‐ ‐ 4,926,021 4,926,021 Special assessments ‐ ‐ ‐ 4,154 4,154 Due from other funds 4,496,930 14,876 ‐ 13,978,579 18,490,385 Due from other governments 2,966,499 ‐ ‐ 21,380,025 24,346,524 Deposits 4,628 ‐ 625 1,250 6,503 Inventory for resale ‐ 9,566,959 ‐ 229,733 9,796,692 Inventory 1,487,018 ‐ ‐ 1,024,567 2,511,585 Advances to other funds 563,900 ‐ ‐ 447,701 1,011,601 Prepaid costs 26,796 ‐ ‐ ‐ 26,796 Total assets 79,636,909$ 10,540,759$ 338,858$ 419,827,950$ 510,344,476$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 9,099,141$ 2,489$ 5,561$ 13,910,285$ 23,017,476$ Wages payable 6,943,186 5,890 7,192 2,164,788 9,121,056 Due to other funds 721,324 168,480 ‐ 13,605,511 14,495,315 Due to other governments 2,210,075 ‐ ‐ 6,539,756 8,749,831 Unearned revenues 315 ‐ ‐ 413,345 413,660 Refundable deposits 1,014,768 1,500 ‐ 61,835 1,078,103 Retainage payable ‐ ‐ ‐ 3,875,217 3,875,217 Advances from other funds ‐ ‐ 238,901 2,728,250 2,967,151 Total liabilities 19,988,809 178,359 251,654 43,298,987 63,717,809 Deferred inflows of resources: Unavailable revenue 74,567 ‐ ‐ 4,965,435 5,040,002 Fund balances: Nonspendable 3,675,440 ‐ ‐ 3,055,068 6,730,508 Restricted 263,481 10,362,400 87,204 313,884,732 324,597,817 Committed ‐ ‐ ‐ 26,069,145 26,069,145 Assigned 1,673,668 ‐ ‐ 28,643,499 30,317,167 Unassigned 53,960,944 ‐ ‐ (88,916) 53,872,028 Total fund balances 59,573,533 10,362,400 87,204 371,563,528 441,586,665 Total liabilities, deferred inflows of resources and fund balances 79,636,909$ 10,540,759$ 338,858$ 419,827,950$ 510,344,476$ The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 20 441,586,665$ Land and other non‐depreciable assets 417,017,620$ Construction in progress 58,116,377 Depreciable assets, net of $884,120,065 in accumulated depreciation 1,073,355,847 1,548,489,844 13,079 5,040,002 Accrued interest on bonds (4,896,544)$ Bonds and notes payable (321,114,803) Capital lease obligations (937,314) Compensated absences (26,142,844) Pension liability (220,714,819) Unamortized premium (15,321,339) (589,127,663) 12,447,091 87,741,555 (4,055,083) 53,830,946 Total net position ‐ governmental activities 1,555,966,436$ The notes to the financial statements are an integral part of this statement. Pension deferred inflows Fund balances ‐ total governmental funds Capital assets used in governmental activities are not financial resources and therefore are Internal service funds are used by the County to charge self‐insurance, fleet management and information technology services to individual funds. The assets, deferred outflows, liabilities and deferred inflows of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: Certain long‐term assets are not financial resources and therefore are not reported in the governmental funds ‐ unamortized bond insurance premium. 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 inflows 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‐temr debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2016 are: Unamortized deferred charges on refunding Pension deferred outflows not reported in the funds. Those assets consist of: COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Differences in amounts reported for governmental activities in the statement of net position on pages 16‐17 21 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Funds Agency Agency Funds Funds Revenues: Taxes 239,815,402$ 1,124,200$ 440,300$ 81,534,977$ 322,914,879$ Licenses, permits and impact fees 310,727 ‐‐60,722,128 61,032,855 Intergovernmental 53,717,345 ‐‐30,232,089 83,949,434 Charges for services 16,844,531 81,037 ‐21,436,036 38,361,604 Fines and forfeitures 402,238 ‐‐2,305,766 2,708,004 Interest income 1,078,792 10,129 3,032 3,347,672 4,439,625 Special assessments ‐‐‐3,745,804 3,745,804 Miscellaneous 2,742,134 122,246 186 3,735,910 6,600,476 Total revenues 314,911,169 1,337,612 443,518 207,060,382 523,752,681 Expenditures: Current: General government 58,770,288 ‐‐25,828,643 84,598,931 Public safety 147,803,650 ‐‐29,571,568 177,375,218 Physical environment 849,319 ‐‐14,433,746 15,283,065 Transportation 267,847 ‐‐35,743,254 36,011,101 Economic environment 1,650,968 2,612,209 381,889 6,415,980 11,061,046 Human services 10,896,535 ‐‐3,140,974 14,037,509 Culture and recreation 15,754,220 ‐‐25,131,239 40,885,459 Debt service Principal 560,283 ‐‐20,183,187 20,743,470 Interest 57,429 ‐‐12,655,969 12,713,398 Fiscal charges ‐‐‐18,580 18,580 Capital outlay 11,681,119 90,042 ‐55,427,111 67,198,272 Total expenditures 248,291,658 2,702,251 381,889 228,550,251 479,926,049 Excess (deficit) of revenues over (under) expenditures 66,619,511 (1,364,639) 61,629 (21,489,869) 43,826,632 Other financing sources (uses): Sale of capital assets 286,858 ‐‐19,531 306,389 Insurance proceeds 437,506 ‐‐358,504 796,010 Transfers in 10,455,705 136,800 85,000 110,976,073 121,653,578 Transfers out (78,417,690) (858,500) ‐(58,253,633) (137,529,823) Total other financing sources (uses) (67,237,621) (721,700) 85,000 53,100,475 (14,773,846) Net change in fund balances (618,110) (2,086,339) 146,629 31,610,606 29,052,786 Fund balances at beginning of year 60,191,643 12,448,739 (59,425) 339,952,922 412,533,879 Fund balances (deficit) at end of year 59,573,533$ 10,362,400$ 87,204$ 371,563,528$ 441,586,665$ COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 The notes to the financial statements are an integral part of this statement. 22 29,052,786$ Capital outlay 67,198,272$ Depreciation expense (74,600,143) (7,401,871) 706,694 (195,465) (567,716) (2,122,162) Bond and loan principal payments 20,161,289$ Payments on capital lease obligations 582,181 20,743,470 Compensated absences (4,854,220)$ Pension expense (11,319,628) Accrued interest on bonds and loans 305,357 Amortization of bond insurance premium (2,491) AmortizatIon of deferred charges on refunding (1,098,049) AmortizatIon of premium 1,449,935 (15,519,096) 2,625,429 Change in net position ‐ governmental activities 27,322,069$ The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Differences in amounts reported for governmental activities in the statement of activities on pages 18‐19: Repayment of principal on long‐term debt is an expenditure in governmental funds, but a reduction of long‐term liabilities in the statement of net position. The net revenues of internal service funds are reported with governmental activities. FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 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. Governmental funds report capital outlays as expenditures. However, in the statement of Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. Capital assets transferred to and from proprietary funds are not recorded in the In the statement of net position, the gain or 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 position differs from the change in fund balances by the net book value of assets disposed. Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. Net change in fund balances ‐ total governmental funds net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation expense. governmental funds as there is no flow of current financial resources. 23 Original Final Budget Budget Actual Variance Revenues: Taxes 249,066,300$ 249,066,300$ 239,833,657$ (9,232,643)$ Licenses, permits and impact fees 303,300 303,300 310,727 7,427 Intergovernmental 47,835,000 47,835,000 53,717,345 5,882,345 Charges for services 18,727,116 20,641,728 16,844,531 (3,797,197) Fines and forfeitures 508,400 508,400 402,238 (106,162) Interest income 588,100 588,100 1,109,161 521,061 Miscellaneous 7,654,457 7,720,395 9,611,765 1,891,370 Total revenues 324,682,673 326,663,223 321,829,424 (4,833,799) Expenditures: Current: General government Board of County Commissioners personal services 1,103,200 1,108,200 1,065,965 42,235 Board of County Commissioners operating 85,200 85,200 60,014 25,186 County manager administrative personal services 862,400 892,400 875,837 16,563 County manager administrative operating 42,100 42,100 33,231 8,869 County manager administrative capital outlay ‐ 1,300 1,270 30 Corporate planning and performance improvements operating ‐ 40,000 36,175 3,825 Budget and management personal services 681,400 681,400 656,366 25,034 Budget and management operating 69,300 94,450 77,150 17,300 Administrative services personal services 2,477,600 2,477,600 2,378,244 99,356 Administrative services operating 191,200 199,200 183,459 15,741 Administrative services capital outlay 17,900 11,450 11,193 257 Human resources administration personal services 1,318,100 1,318,100 1,267,894 50,206 Human resources administration operating 309,800 306,377 283,245 23,132 Human resources administration capital outlay ‐ 3,423 2,282 1,141 Clerk of the Circuit Court personal services 7,129,200 6,644,000 6,630,979 13,021 Clerk of the Circuit Court operating 2,090,500 2,610,000 2,413,387 196,613 Clerk of the Circuit Court capital outlay 119,300 423,200 345,030 78,170 Property Appraiser personal services 5,271,569 5,271,569 5,349,372 (77,803) Property Appraiser operating 1,648,533 1,648,533 1,715,890 (67,357) Property Appraiser capital outlay 25,000 25,000 9,204 15,796 Tax Collector personal services 10,603,138 10,603,138 10,126,106 477,032 Tax Collector operating 2,770,517 2,795,270 2,700,549 94,721 Tax Collector capital outlay 296,600 346,930 326,313 20,617 County attorney personal services 2,244,100 2,244,100 2,213,623 30,477 County attorney operating 384,500 730,532 349,696 380,836 County attorney capital outlay 3,000 3,000 ‐ 3,000 Natural resource planning operating 101,100 101,100 101,036 64 Circuit court operating 34,700 34,700 32,140 2,560 County court operating 22,800 22,800 21,611 1,189 State Attorney operating 271,800 271,800 257,502 14,298 Public Defender operating 225,100 226,800 226,799 1 Other general administrative personal services 200,000 170,000 26,215 143,785 Other general administrative operating 6,946,500 6,827,105 5,293,033 1,534,072 Facilities management personal services 4,252,100 4,105,530 4,097,080 8,450 Facilities management operating 8,317,100 8,954,260 8,769,393 184,867 Facilities management capital outlay 78,300 93,519 39,795 53,724 Sheriff personal services 3,689,800 3,689,800 3,837,585 (147,785) Sheriff operating 167,400 167,400 105,749 61,651 Sheriff capital outlay ‐ ‐ 24,969 (24,969) COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 24 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 2,209,400 2,104,400 2,078,651 25,749 Supervisor of Elections operating 1,737,900 1,825,037 1,788,946 36,091 Supervisor of Elections capital outlay 106,000 119,136 119,009 127 Public services operations personal services 274,500 278,100 277,906 194 Public services operations operating 9,800 7,300 4,147 3,153 Real property management personal services 647,900 647,900 631,981 15,919 Real property management operating 35,500 35,500 30,065 5,435 Total general government 69,071,857 70,288,659 66,876,086 3,412,573 Public safety Sheriff personal services 122,420,600 123,653,600 119,108,878 4,544,722 Sheriff operating 26,901,800 27,010,157 24,908,139 2,102,018 Sheriff capital outlay 2,716,900 2,716,900 9,025,540 (6,308,640) Emergency management administration personal services 862,900 862,900 832,113 30,787 Emergency management administration operating 682,700 682,700 629,802 52,898 Helicopter operations personal services 835,900 792,900 784,410 8,490 Helicopter operations operating 686,500 729,637 684,320 45,317 Helicopter operations capital outlay ‐ 4,098 1,254 2,844 Medical examiner services operating 1,244,800 1,244,800 1,242,008 2,792 Total public safety 156,352,100 157,697,692 157,216,464 481,228 Physical environment Conservation and resource management personal services 686,100 694,500 685,112 9,388 Conservation and resource management operating 172,900 192,900 160,153 32,747 Conservation and resource management capital outlay 22,800 2,800 1,378 1,422 Immokalee cemetery operating 5,100 5,100 4,054 1,046 Total physical environment 886,900 895,300 850,697 44,603 Transportation Alternative transportation modes personal services 243,400 245,875 245,401 474 Alternative transportation modes operating 25,700 23,725 22,446 1,279 Total transportation 269,100 269,600 267,847 1,753 Economic environment Veterans services personal services 320,200 312,400 301,736 10,664 Veterans services operating 49,700 48,250 34,184 14,066 Veterans services capital outlay ‐ 1,450 1,141 309 Economic development personal services 354,800 354,800 308,326 46,474 Economic development operating 1,107,900 1,529,500 1,006,722 522,778 Economic development capital outlay ‐ 3,200 2,779 421 Total economic environment 1,832,600 2,249,600 1,654,888 594,712 Human services Health Care Responsibility Act operating 46,100 46,100 10,131 35,969 Domestic animal services personal services 2,067,700 2,066,700 2,004,514 62,186 Domestic animal services operating 831,500 867,500 827,940 39,560 Domestic animal services capital outlay 175,500 187,348 118,155 69,193 Health department operating 1,728,700 1,978,000 1,963,419 14,581 Mental health operating 1,385,000 1,385,000 1,384,800 200 Client assistance personal services 799,500 791,156 718,070 73,086 Client assistance operating 4,529,300 4,381,662 3,697,877 683,785 Client assistance capital outlay 3,200 3,200 ‐ 3,200 Public services division office personal services 279,800 281,800 281,138 662 Public services division office operating 29,700 29,700 22,533 7,167 Public services division office capital outlay 1,500 4,000 2,840 1,160 Total human services 11,877,500 12,022,166 11,031,417 990,749 (continued) COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 25 Original Final Budget Budget Actual Variance Culture and recreation Library administration personal services 5,387,200 5,389,900 5,136,497 253,403 Library administration operating 2,185,700 2,199,847 2,103,843 96,004 Library administration capital outlay 50,000 83,194 83,134 60 Beach and water park operations personal services 3,278,500 3,290,600 3,080,300 210,300 Beach and water park operations operating 2,701,600 2,658,311 2,257,199 401,112 Beach and water park operations capital outlay 29,400 62,392 59,874 2,518 Parks maintenance personal service 1,217,500 1,207,500 1,192,977 14,523 Parks maintenance operating 2,208,900 2,093,067 1,973,606 119,461 Parks maintenance capital outlay 127,000 242,996 241,928 1,068 Total culture and recreation 17,185,800 17,227,807 16,129,358 1,098,449 Total expenditures 257,475,857 260,650,824 254,026,757 6,624,067 Excess of revenues over expenditures 67,206,816 66,012,399 67,802,667 1,790,268 Other financing sources (uses): Sale of capital assets 250,000 250,000 73,126 (176,874) Insurance proceeds ‐ 26,787 41,459 14,672 Transfers in 5,230,284 5,350,859 10,603,605 5,252,746 Transfers out (77,435,300) (78,052,193) (78,417,690) (365,497) Total other financing sources (uses) (71,955,016) (72,424,547) (67,699,500) 4,725,047 Net change in fund balance (4,748,200) (6,412,148) 103,167 6,515,315 Fund balance at beginning of year 50,131,500 51,774,574 51,774,574 ‐ Fund balance at end of year 45,383,300$ 45,362,426$ 51,877,741$ 6,515,315$ Reconciliation: Net change in fund balance, budgetary basis 103,167$ Ad valorem tax refunds not budgeted (18,255) Net change in fair value of investments (30,369) Miscellaneous revenue related to indirect cost (7,124,000) Miscellaneous revenue related to Sheriff assets not budgeted 254,369 Change in inventory 342,382 General government expenditures related to indirect cost 7,124,000 Public safety expenditures for multi‐period projects not budgeted (867,135) Public safety capital outlay funded by outside sources not budgeted (864,148) Insurance proceeds related to Sheriff assets not budgeted 396,047 Proceeds from sale of Sheriff assets not budgeted 213,732 Advances budgeted as transfers (147,900) Net change in fund balance, GAAP basis (618,110)$ The notes to the financial statements are an integral part of this statement. STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 COLLIER COUNTY, FLORIDA GENERAL FUND 26 Original Final Budget Budget Actual Variance Revenues: Taxes 1,124,200$ 1,124,200$ 1,124,200$ ‐$ Charges for services ‐ 103,050 81,037 (22,013) Interest income 2,200 2,200 10,540 8,340 Miscellaneous 150,000 150,000 122,246 (27,754) Total revenues 1,276,400 1,379,450 1,338,023 (41,427) Expenditures: Economic environment Personal services 273,700 308,700 292,981 15,719 Operating 243,100 248,835 163,997 84,838 Capital outlay ‐ 103,050 90,042 13,008 Total expenditures 516,800 660,585 547,020 113,565 Excess of revenues over expenditures 759,600 718,865 791,003 72,138 Other financing sources (uses): Transfers in 136,800 136,800 136,800 ‐ Transfers out (858,500) (858,500) (858,500) ‐ Total other financing sources (uses) (721,700) (721,700) (721,700) ‐ Net change in fund balances 37,900 (2,835) 69,303 72,138 Fund balances at beginning of year 431,700 447,435 447,435 ‐ Fund balances at end of year 469,600$ 444,600$ 516,738$ 72,138$ Reconciliation: Net change in fund balance, budgetary basis 69,303$ Net change in fair value of investments (411) Change in fair value of inventory for resale (2,155,231) Net change in fund balance, GAAP basis (2,086,339)$ The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 27 Original Final Budget Budget Actual Variance Revenues: Taxes 440,300$ 440,300$ 440,300$ ‐$ Interest income 800 800 3,170 2,370 Miscellaneous ‐ ‐ 186 186 Total revenues 441,100 441,100 443,656 2,556 Expenditures: Economic environment Personal services 261,200 261,200 229,817 31,383 Operating 264,900 264,900 152,072 112,828 Total expenditures 526,100 526,100 381,889 144,211 Excess (deficit) of revenues over (under) expenditures (85,000) (85,000) 61,767 146,767 Other financing sources (uses): Transfers in 85,000 85,000 85,000 ‐ Transfers out (30,000) (222,708) (30,000) 192,708 Total other financing sources (uses) 55,000 (137,708) 55,000 192,708 Net change in fund balances (30,000) (222,708) 116,767 339,475 Fund balances at beginning of year 227,600 420,308 420,308 ‐ Fund balances at end of year 197,600$ 197,600$ 537,075$ 339,475$ Reconciliation: Net change in fund balance, budgetary basis 116,767$ Net change in fair value of investments (138) Advances budgeted as transfers 30,000 Net change in fund balance, GAAP basis 146,629$ The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 28 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Current assets: Cash and investments 145,146,827$ 26,023,911$ 11,214,985$ 2,310,750$ 184,696,473$ 58,068,287$ Receivables: Trade, net 10,420,279 861,341 2,364,835 38,304 13,684,759 4,780 Special assessments 31,435 ‐‐‐31,435 ‐ Interest 236,864 145,052 18,567 4,784 405,267 84,859 Due from other funds ‐42,499 ‐39,295 81,794 69,730 Due from other governments 376,002 17,744 29,270 1,048 424,064 23,773 Deposits ‐‐‐‐‐51,108 Inventory 5,601,051 ‐46,312 71,697 5,719,060 367,556 Prepaid costs ‐‐110,363 ‐110,363 43,712 Restricted assets: Cash and investments 5,907,020 72,703 143,558 357,831 6,481,112 ‐ Trade, net 48,571 ‐‐‐48,571 ‐ Interest receivable 33,714 ‐244 ‐33,958 ‐ Due from other governments ‐‐‐4,267,562 4,267,562 ‐ Total current assets 167,801,763 27,163,250 13,928,134 7,091,271 215,984,418 58,713,805 Noncurrent assets: Restricted assets: Cash and investments 31,845,588 ‐‐‐31,845,588 ‐ Receivables: Special assessments 10,419 ‐‐‐10,419 ‐ Advances to other funds 1,006,761 948,789 ‐‐1,955,550 ‐ Capital assets: Land and nondepreciable capital assets 68,363,678 8,274,776 ‐9,223,229 85,861,683 ‐ Depreciable capital assets, net 740,451,861 22,969,104 6,963,025 48,552,493 818,936,483 16,434,855 Total noncurrent assets 841,678,307 32,192,669 6,963,025 57,775,722 938,609,723 16,434,855 Total assets 1,009,480,070 59,355,919 20,891,159 64,866,993 1,154,594,141 75,148,660 Deferred charges on debt refundings 4,977,541 ‐‐‐4,977,541 ‐ Deferred outflows of resources related to pensions 7,011,433 559,638 10,336,288 292,463 18,199,822 1,838,876 Total deferred outflows of resources 11,988,974 559,638 10,336,288 292,463 23,177,363 1,838,876 (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 Business‐type Activities Enterprise Funds ASSETS DEFERRED OUTFLOWS OF RESOURCES 29 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds LIABILITIES Current liabilities: Accounts payable 8,589,928 2,375,921 426,816 459,241 11,851,906 1,210,772 Wages payable 884,037 74,541 639,622 32,749 1,630,949 239,758 Retainage payable 1,097,148 4,121 ‐ ‐ 1,101,269 ‐ Due to other funds ‐ 500 ‐ 591,802 592,302 3,554,292 Due to other governments 278 113 ‐ 3,483 3,874 14 Unearned revenues ‐ ‐ ‐ 52,983 52,983 10,473 Self‐insurance claims payable ‐ ‐ ‐ ‐ ‐ 6,283,371 Compensated absences 1,523,844 133,793 532,764 34,862 2,225,263 416,332 Capital lease obligations ‐ ‐ 382,180 ‐ 382,180 ‐ Interest payable 1,530,753 ‐ ‐ ‐ 1,530,753 ‐ Net pension liability 218,773 17,738 109,387 10,643 356,541 51,442 Bonds and loans payable 7,085,210 ‐ ‐ ‐ 7,085,210 ‐ Liabilities payable from restricted assets: Accounts payable ‐ ‐ 115,397 1,878,033 1,993,430 ‐ Wages payable ‐ ‐ ‐ 2,039 2,039 ‐ Retainage payable ‐ ‐ ‐ 127,662 127,662 ‐ Due to other governments ‐ ‐ ‐ 38,011 38,011 ‐ Refundable deposits 69,025 ‐ ‐ 9,826 78,851 ‐ Unearned revenue ‐ 72,703 ‐ 20,602 93,305 ‐ Notes payable 64,255 ‐ ‐ ‐ 64,255 ‐ Bonds and loans payable 5,827,937 ‐ ‐ ‐ 5,827,937 ‐ Total current liabilities 26,891,188 2,679,430 2,206,166 3,261,936 35,038,720 11,766,454 Noncurrent liabilities: Self‐insurance claims payable ‐ ‐ ‐ ‐ ‐ 1,618,799 Compensated absences 380,961 33,448 133,191 8,715 556,315 104,084 Capital lease obligations ‐ ‐ 864,848 ‐ 864,848 ‐ Net OPEB obligation ‐ ‐ ‐ ‐ ‐ 3,875,092 Net pension liability 18,326,087 1,523,878 24,142,675 784,747 44,777,387 4,511,786 Landfill post‐closure liability ‐ 1,883,503 ‐ ‐ 1,883,503 ‐ Bonds and loans payable, net 167,409,866 ‐ ‐ ‐ 167,409,866 ‐ Total noncurrent liabilities 186,116,914 3,440,829 25,140,714 793,462 215,491,919 10,109,761 Total liabilities 213,008,102 6,120,259 27,346,880 4,055,398 250,530,639 21,876,215 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 157,330 12,524 256,125 6,391 432,370 41,925 NET POSITION Net investment in capital assets 630,093,025 30,965,458 5,500,423 56,441,171 723,000,077 16,299,166 Restricted for grants and other purposes ‐ ‐ 28,405 3,868,060 3,896,465 ‐ Restricted for growth related capital expansion 23,507,009 ‐ ‐ ‐ 23,507,009 ‐ Restricted for renewal and replacement 300,000 ‐ ‐ ‐ 300,000 ‐ Restricted for debt service 8,056,609 ‐ ‐ ‐ 8,056,609 ‐ Unrestricted 146,346,969 22,817,316 (1,904,386) 788,436 168,048,335 38,770,230 Total net position 808,303,612$ 53,782,774$ 3,624,442$ 61,097,667$ 926,808,495 55,069,396$ 1,238,450 Net position of Business‐type Activities 928,046,945$ The notes to the financial statements are an integral part of this statement. Cumulative consolidation adjustment for internal service fund activities related to enterprise funds Business‐type Activities Enterprise Funds COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 30 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Operating revenues: Charges for services 123,481,745$ 41,765,715$ 13,079,506$ 4,238,118$ 182,565,084$ 82,556,667$ Miscellaneous 374,406 152,579 81,512 59,365 667,862 296,456 Total operating revenues 123,856,151 41,918,294 13,161,018 4,297,483 183,232,946 82,853,123 Operating expenses: Personal services 29,612,893 2,507,503 21,815,500 1,285,850 55,221,746 7,905,317 Operating 54,860,727 35,530,396 3,510,255 11,243,548 105,144,926 73,541,015 Depreciation and amortization 42,093,271 1,329,689 1,142,629 3,187,838 47,753,427 2,189,294 Total operating expenses 126,566,891 39,367,588 26,468,384 15,717,236 208,120,099 83,635,626 Operating income (loss) (2,710,740) 2,550,706 (13,307,366) (11,419,753) (24,887,153) (782,503) Non‐operating revenues (expenses): Operating grants and contributions ‐112,552 65,176 4,256,647 4,434,375 ‐ Interest income 1,614,522 277,154 95,032 23,683 2,010,391 451,556 Insurance reimbursement 185,229 9,202 5,511 ‐199,942 579,550 Interest expense (3,205,541) ‐(18,158) ‐(3,223,699) ‐ Gain (loss) on disposal of capital assets (977,109) 45,913 125,586 20,111 (785,499) 358,267 Total non‐operating revenues (expenses) (2,382,899) 444,821 273,147 4,300,441 2,635,510 1,389,373 Income (loss) before contributions and transfers (5,093,639) 2,995,527 (13,034,219) (7,119,312) (22,251,643) 606,870 Capital grants and contributions 22,737,854 158 ‐2,824,686 25,562,698 ‐ Transfers in 14,200 180,900 15,786,000 4,507,153 20,488,253 3,098,000 Transfers out (5,756,153) (642,434) ‐(34,821) (6,433,408) (1,276,600) Total transfers and contributions 16,995,901 (461,376) 15,786,000 7,297,018 39,617,543 1,821,400 Changes in net position 11,902,262 2,534,151 2,751,781 177,706 17,365,900 2,428,270 Net position ‐ beginning 796,401,350 51,248,623 872,661 60,919,961 52,641,126 Net position ‐ ending 808,303,612$ 53,782,774$ 3,624,442$ 61,097,667$ 55,069,396$ Consolidation adjustment for internal service fund activities related to enterprise funds (197,159) Change in net position of Business‐type Activities 17,168,741$ The notes to the financial statements are an integral part of this statement. Business‐type Activities Enterprise Funds COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 31 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Cash flows from operating activities: Cash received for services 123,416,206$ 41,909,040$ 12,242,706$ 4,286,186$ 181,854,138$ ‐$ Cash received from other funds for services ‐‐‐‐ ‐77,534,297 Cash received from employees for services ‐‐‐‐ ‐7,129,276 Cash received from other governments for services ‐‐‐‐ ‐246,199 Cash received from refundable deposits 90,000 825,694 ‐2,500 918,194 ‐ Cash received from retirees for services ‐‐‐‐ ‐1,504,942 Cash payments on behalf of retirees ‐‐‐‐ ‐(1,071,796) Cash payments for goods and services (50,768,172) (33,897,807) (2,253,157) (8,102,923) (95,022,059) (69,476,073) Cash payments to employees (29,066,706) (2,476,649) (21,039,194) (1,271,074) (53,853,623) (7,809,628) Cash payments for interfund services (6,860,971) (1,588,857) (1,210,379) (2,616,089) (12,276,296) (747,785) Cash payments on refundable deposits (94,000) (819,918) ‐(2,121) (916,039) ‐ Net cash provided by (used for) operating activities 36,716,357 3,951,503 (12,260,024) (7,703,521) 20,704,315 7,309,432 Cash flows from non‐capital financing activities: Cash received from operating grants ‐108,773 65,176 3,758,262 3,932,211 ‐ Cash transfers from other funds 511,571 3,339,400 15,786,000 7,281,249 26,918,220 3,098,000 Cash transfers to other funds (5,756,153) (3,172,082) ‐(3,260,483) (12,188,718) (1,276,600) Net cash provided by (used for) non‐capital financing activities (5,244,582) 276,091 15,851,176 7,779,028 18,661,713 1,821,400 Cash flows from capital and related financing activities: System development charges 13,664,329 ‐‐‐ 13,664,329 ‐ Special assessment collections 98 ‐‐‐ 98 ‐ Receipts from insurance reimbursements 185,229 9,202 5,511 ‐ 199,942 1,813,569 Proceeds from loans 500,000 ‐‐‐ 500,000 ‐ Proceeds from disposal of capital assets 202,448 54,600 21,932 26,537 305,517 358,997 Proceeds from capital grants 21,795 ‐‐2,514,710 2,536,505 ‐ Payments for capital acquisitions (22,727,890) (2,232,945) (255,609) (2,751,274) (27,967,718) (3,261,755) Principal payments on state revolving loans (8,768,456) ‐‐‐ (8,768,456) ‐ Principal payments on bonds (3,986,420) ‐‐‐ (3,986,420) ‐ Payments to escrow agents (1,939,376) ‐‐‐ (1,939,376) ‐ Principal payments on leases ‐‐(299,097) ‐ (299,097) ‐ Interest and fiscal agent fees paid (4,970,362) ‐(18,158) ‐ (4,988,520) ‐ Net cash used for capital and related financing activities (27,818,605) (2,169,143) (545,421) (210,027) (30,743,196) (1,089,189) Cash flows from investing activities: Interest on investments 1,776,561 296,638 97,002 25,656 2,195,857 477,279 Net cash provided by investing activities 1,776,561 296,638 97,002 25,656 2,195,857 477,279 Net increase (decrease) in cash and investments 5,429,731 2,355,089 3,142,733 (108,864) 10,818,689 8,518,922 Cash and investments, October 1, 2015 177,469,704 23,741,525 8,215,810 2,777,445 212,204,484 49,549,365 Cash and investments, September 30, 2016 182,899,435$ 26,096,614$ 11,358,543$ 2,668,581$ 223,023,173$ 58,068,287$ Current cash and investments 145,146,827$ 26,023,911$ 11,214,985$ 2,310,750$ 184,696,473 58,068,287$ Current cash and investments‐restricted 5,907,020 72,703 143,558 357,831 6,481,112 ‐ Noncurrent cash and investments‐restricted 31,845,588 ‐‐‐ 31,845,588 ‐ Cash and investments, September 30, 2016 182,899,435$ 26,096,614$ 11,358,543$ 2,668,581$ 223,023,173$ 58,068,287$ (Continued) Business‐type Activities Enterprise Funds PROPRIETARY FUNDS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 32 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Operating income (loss)(2,710,740)$ 2,550,706$ (13,307,366)$ (11,419,753)$ (24,887,153) (782,503)$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense 41,583,299 1,329,689 1,142,629 3,187,838 47,243,455 2,189,294 Amortization of bond insurance costs 4,289 ‐‐‐ 4,289 ‐ Amortization of deferred charges on debt refundings 505,683 ‐‐‐ 505,683 ‐ Net changes in assets and liabilities: Trade receivable (316,391) 42,990 (887,956) (1,967) (1,163,324) 51,145 Due from other funds 15,400 (406) 2,743 1,377 19,114 4,228 Due from other governments (127,131) (13,965) ‐(776) (141,872) 4,073 Inventory 113,432 ‐(11,094) 19,097 121,435 21,929 Prepaid costs ‐‐49,050 101,375 150,425 (43,712) Accounts payable (2,683,318) 12,956 (21,593) 400,814 (2,291,141) 237,045 Retainage payable (210,128) ‐‐‐ (210,128) ‐ Wages payable (567,959) (56,720) (546,900) (26,682) (1,198,261) (153,421) Due to other funds ‐15,880 ‐(6,395) 9,485 3,735,848 Due to other governments (225) (504) ‐93 (636) (30,809) Compensated absences 163,846 5,451 14,816 2,645 186,758 18,715 Refundable deposits (4,000) ‐‐(5,927) (9,927) ‐ Unearned revenue ‐5,776 ‐5,927 11,703 3,529 Self‐insurance claims payable ‐‐‐‐ ‐942,736 Net OPEB obligation ‐‐‐‐ ‐880,940 Net pension liability and related deferred outflows/inflows 950,300 82,123 1,305,647 38,813 2,376,883 230,395 Landfill post closure liability ‐(22,473) ‐‐ (22,473) ‐ Total adjustments 39,427,097 1,400,797 1,047,342 3,716,232 45,591,468 8,091,935 Net cash provided by (used for) operating activities 36,716,357$ 3,951,503$ (12,260,024)$ (7,703,521)$ 20,704,315$ 7,309,432$ Non‐cash investing, capital and financing activities: Change in fair value of investments (59,622)$ (9,606)$ (2,752)$ 45$(71,935)$ 30,749$ Developer infrastructure contributions 8,941,251 ‐‐‐ 8,941,251 ‐ Contributed capital assets 129,754 158 104,500 681,603 916,015 ‐ New capital lease obligations ‐‐(472,158) ‐ (472,158) ‐ Change in capital related grant receivable ‐‐‐371,629 371,629 ‐ Change in special assessment receivable 1,282 ‐‐‐ 1,282 ‐ Bond proceeds 59,653,146 ‐‐‐ 59,653,146 ‐ Payment to escrow agent (59,521,338) ‐‐‐ (59,521,338) ‐ Underwriters discount (131,808) ‐‐‐ (131,808) ‐ Capital related accounts payable 2,812,036 274,301 215,574 1,192,637 4,494,548 135,689 The notes to the financial statements are an integral part of this statement. Business‐type Activities Enterprise Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 33 Agency Funds Cash and investments 38,655,974$ Receivables: Interest 9,393 Other 28,888 Total assets 38,694,255$ LIABILITIES Due to other governments 7,787,297$ Due to individuals 621,816 Refundable deposits 30,120,466 Due to special assessment holders 164,676 Total liabilities 38,694,255$ The notes to the financial statements are an integral part of this statement. ASSETS COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2016 34 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 INDEX NOTE PAGE NUMBER 1 Summary of Significant Accounting Policies 36 2 Cash and Investments 48 3 Trade Receivables 51 4 Interfund Payables and Receivables 52 5 Capital Assets 53 6 Long‐Term Debt 54 7 Conduit Debt Obligations 61 8 Defined Benefit Pension Plans 61 9 Defined Contribution Plan 68 10 Transfers 69 11 Net Position/Fund Balances 69 12 Risk Management 72 13 Other Postemployment Benefits 73 14 Landfill Liability 76 15 Significant Contingencies 77 16 Significant Commitments 78 17 Fund Deficits 79 18 Subsequent Event 79 35 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities (GAAP). The more significant of the County’s accounting policies are described below. THE REPORTING ENTITY Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The GASB is the standard setting body for the establishment of GAAP in governmental entities. Determination of the financial reporting entity of the County is founded upon the objective of accountability. These financial statements include the County government (the primary government) and two types of legally separate component units (blended and discrete). Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board and impose its will on the organization or there is a potential specific financial benefit/burden relationship. Financial accountability also exists if an organization is fiscally dependent and there is potential specific financial benefit/burden relationship. 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 Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the 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 and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex‐officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with GASB Statement No. 14, as amended, these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District (District) ‐ The District was established by Chapter 88‐499, Laws of Florida, as amended by Chapter 03‐353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA) ‐ The CRA was established by Resolution 2000‐82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority ‐ The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010‐10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) ‐ The Authority was created in 1981 by Collier County Resolution 81‐ 222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. 36 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB No. 14, as amended, 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 79‐95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Collier County Industrial Development Authority ‐ The Authority was created in 1978 by Collier County Resolution 78‐94, rescinded and replaced by Resolution 79‐34, 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 1999 by Collier County Resolution 99‐17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District 3339 East Tamiami Trail, Suite #302 Naples, Florida 34112 Collier County Airport Authority 2005 Mainsail Drive, Suite #1 Naples, Florida 34114 Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive Naples, Florida 34104 Immokalee Community Redevelopment Agency 750 South 5th Street Immokalee, Florida 34142 Bayshore Gateway Community Redevelopment Agency 3570 Bayshore Drive, Unit #102 Naples, Florida 34112 Collier County Health Facilities Authority Collier County Housing Finance Authority Collier County Industrial Development Authority Collier County Educational Facilities Authority 5100 Tamiami Trail North, #103 Naples, Florida 34103 37 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Certain separate legal entities within the County are autonomous organizations with their own governmental powers and constituencies. These entities, which are not included in these financial statements, are as follows: The Cities of Naples, Marco Island and Everglades ‐ The Cities of Naples, Marco Island and Everglades are in the boundaries of Collier County. Each of these entities has a separately elected board and separate budgeting, accounting and reporting requirements. Collier County School Board ‐ The Collier County School Board operates countywide and is completely separate and autonomous. The School Board has five elected board members and a superintendent of schools and operates under regulations prescribed by the State Board of Education and the Florida Statutes. It levies its own taxes and receives part of its income from the State of Florida. 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 Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business‐type activities. As a general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government‐wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund 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 Position reports all financial and capital resources of Collier County’s governmental and business‐type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. 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. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government‐wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government‐wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government‐wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. 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 are reconciliations explaining the differences between the governmental fund presentation and the government‐wide presentation. 38 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund – the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County’s consolidated General Fund. Bayshore/Gateway and Immokalee Community Redevelopment Area Special Revenue Funds – the Redevelopment funds are used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/Gateway and Immokalee Community Redevelopment Areas. The following are reported as major enterprise funds: County Water and Sewer Fund – the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County’s unincorporated area. Solid Waste Disposal Fund – the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Emergency Medical Services – the Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund – Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long‐term obligations. Capital Project Funds – Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. 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 other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self Insurance, Sheriff’s Self Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. 39 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED Agency Funds – Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain agency funds. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied The government‐wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. 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 proprietary 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. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the 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 fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. 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. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. 40 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1)Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2)Within eighty days of the certification of value, but not earlier than sixty‐five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled‐back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3)Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4)A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5)The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6)The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7)Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the 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 operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida Statutes. 41 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED 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 Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non‐budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note 16 on page 78. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH AND INVESTMENTS Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies. The County’s current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014‐260 and is consistent with the requirements of that statute. This investment policy authorized the following investments: 1)U.S. Treasury and Government Guaranteed – U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2)Federal Agency/Government Sponsored Enterprise – Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3)Corporates – U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non‐profit or other entity; 4)Municipals – Obligations, including both taxable and tax‐exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5)Agency Mortgage Backed Securities – Mortgage backed securities, backed by residential, multi‐family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass‐throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6)Non‐Negotiable Certificates of Deposit ‐ Non‐negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 42 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED 7) Depository Bank Account – Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8) Commercial Paper – U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 9) Repurchase Agreements – Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 10) Money Market Funds – Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a‐7; 11) Fixed‐Income Mutual Funds – Shares on open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restrictions; 12) Local Government Investment Pools – State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13) The Florida Local Government Surplus Funds Trust Funds (Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund’s individual equity in the County’s cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Surplus Funds Trust Fund (Florida Prime) are stated at fair value. The County categorizes its fair value measurements within the fair value hierarchy established in Governmental Accounting Standards Board Statement No. 72, “Fair Value Measurements and Application”. Florida PRIME is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the County’s position in the pool is the same as the value of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2016, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 27.6 percent of Florida PRIME’s portfolio at September 30, 2016. In accordance with Governmental Accounting Standards Board Statement No. 79, “Certain External Investment Pools and Pool Participants”, as a participant in a qualifying external investment pool, the County should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates) in notes to the financial statements. 43 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48‐hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days." With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2016, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency Medical Services receivable which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first‐in, first‐out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non‐spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government‐wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $9,796,692 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business‐type activities columns in the government‐wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at their estimated fair value on the date donated. 44 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government‐wide financial statements and proprietary fund financial statements. Depreciation is calculated using the straight‐line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20‐45 years Infrastructure 3‐30 years Improvements other than buildings 4‐45 years Machinery and equipment 3‐20 years 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 Position. For capital lease obligations originating in governmental funds, an expenditure for the asset and the offsetting other financing source is reflected in the fund financial statements in the year of inception. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County’s statement of net position represent changes in actuarial assumptions, the net difference between projected and actual earnings on investments, changes in the proportion and differences between the County’s contributions and proportionate share of contributions and the County’s contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. In addition, deferred outflows related to the difference between expected and actual economic experience relating to the Florida Retirement System Pension were reported. These amounts will be recognized as increases in pension expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County’s statement of net position represent the difference between expected and actual economic experience and changes in the proportion and differences between the County’s contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as reductions in pension expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements, as deferred inflows. 45 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums and bond insurance 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 which approximates the effective interest method. Bond premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are also reported as other financing sources. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. INTEREST COST In the proprietary funds, interest costs are expensed or capitalized as required by GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre‐November 30, 1989 FASB and AICPA Pronouncements. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2016 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November ‐ 4%, December ‐ 3%, January ‐ 2%, and February ‐ 1%. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1st of each year. No accrual for the property tax levy becoming due in November 2016 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, 2016 are as follows: Property Tax Cycle Date Assessment roll compiled January 1, 2015 Assessment roll certified July 1, 2015 Millage resolution approved Within 35 days of the certification of the assessment roll Beginning of fiscal year for tax levy October 1, 2015 Taxes due and payable (levy date) November 1, 2015 Collection dates By November 30: By December 31: By January 31: By February 29: 4% discount 3% discount 2% discount 1% discount Due date March 31, 2016 Delinquent (lien date) April 1, 2016 Tax certificates sold Prior to June 1, 2016 46 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED 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. Unearned revenues of the County as of September 30, 2016 are gift certificates issued and prepayments on accounts. 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 pay or 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 a payout of unused vacation up to 440 hours for all employees. 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 500 hours of unused vacation time. Both the Clerk of the Circuit Court and Comptroller’s and Tax Collector’s policies 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 200 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. PENSIONS In the government‐wide and proprietary funds statements of net position, liabilities are recognized for the County’s proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS’s and HIS’s fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 47 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 2 – CASH AND INVESTMENTS 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 and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. As of September 30, 2016, the County had the following cash and investments: Investment Final Maturities Fair Value First Call Date Call Frequency Rating * Cash on hand N/A 82,691$ N/A N/A N/A Cash with fiscal agent N/A 11,887,225 N/A N/A N/A Demand deposits N/A 195,836,371 N/A N/A N/A State Board of Administration Pool: Florida PRIME N/A 746,297 N/A N/A AAAm Federal Home Loan Mortgage Corporation 10/18/2016 500,990 N/A N/A AA+ Federal National Mortgage Association 12/14/2016 200,895 N/A N/A AA+ Federal Home Loan Mortgage Corporation 1/11/2017 1,698,725 N/A N/A AA+ US Treasury Note 1/15/2017 10,012,130 N/A N/A AA+ US Treasury Note 2/2/2017 899,001 N/A N/A AA+ Federal Home Loan Bank 2/21/2017 998,710 N/A N/A AA+ US Treasury Note 3/2/2017 998,480 N/A N/A AA+ US Treasury Note 3/15/2017 10,013,280 N/A N/A AA+ US Treasury Note 4/27/2017 1,196,808 N/A N/A AA+ Federal Home Loan Bank 6/9/2017 10,026,380 2/13/2017 once AA+ Federal Home Loan Mortgage Corporation 7/18/2017 497,920 N/A N/A AA+ Federal Home Loan Bank 7/21/2017 25,000,700 1/21/2016 quarterly AA+ US Treasury Note 8/17/2017 895,608 N/A N/A AA+ Federal Home Loan Mortgage Corporation 10/27/2017 24,991,150 1/27/2016 quarterly AA+ Federal Home Loan Mortgage Corporation 11/24/2017 25,004,225 N/A N/A AA+ US Treasury Note 11/30/2017 24,980,475 N/A N/A AA+ US Treasury Note 11/30/2017 10,019,530 2/24/2016 quarterly AA+ Federal Home Loan Bank 12/1/2017 9,022,293 N/A N/A AA+ Federal Home Loan Bank 12/8/2017 20,004,460 N/A N/A AA+ Federal Home Loan Bank 12/8/2017 25,005,575 N/A N/A AA+ Federal Home Loan Bank 12/19/2017 23,067,666 N/A N/A AA+ Federal Farm Credit Bank 3/14/2018 25,072,475 N/A N/A AA+ Federal Home Loan Bank 6/8/2018 25,169,825 12/21/2016 continuously AA+ Federal Home Loan Bank 8/23/2018 25,001,125 N/A N/A AA+ Federal Home Loan Mortgage Corporation 9/13/2018 25,001,675 N/A N/A AA+ Federal Farm Credit Bank 12/21/2018 25,031,650 N/A N/A AA+ Federal Farm Credit Bank 7/1/2019 40,141,520 1/12/2017 quarterly AA+ Federal National Mortgage Association 7/12/2019 24,961,100 1/27/2017 quarterly AA+ Federal Home Loan Mortgage Corporation 8/28/2019 25,000,925 11/23/2016 quarterly AA+ Federal National Mortgage Association 8/28/2019 14,993,100 11/28/2016 quarterly AA+ Federal Home Loan Mortgage Corporation 2/13/2020 25,039,000 N/A N/A AA+ Federal National Mortgage Association 7/27/2020 24,892,625 12/13/2016 quarterly AA+ Federal Home Loan Bank 9/27/2021 24,953,175 12/27/2016 continuously AA+ Federal National Mortgage Association 9/30/2021 25,008,150 3/30/2017 quarterly AA+ Total 763,853,930$ 48 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 2 – CASH AND INVESTMENTS – CONTINUED CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County’s investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers’ acceptances rated “AA” or higher, prime commercial paper rated “A‐1” and “P‐1”, tax‐exempt obligations rated “AA” or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County’s master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. At September 30, 2016, the Sheriff had $746,297 invested in the State Board of Administration’s Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated “AAAm” by Standard & Poor’s Ratings Services. 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 25% to 200% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. At September 30, 2016, the County had demand deposits of $195,836,371. All balances in excess of the Federal Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial institutions’ collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $292,288 are secured by the FDIC as individual entity balances do not exceed $250,000. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The County’s investment 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. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. 49 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 2 – CASH AND INVESTMENTS – CONTINUED The dollar weighted average days to maturity (WAM) of Florida PRIME at September 30, 2016, is 50 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida PRIME at September 30, 2016, is 70 days. The portion of the County’s cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2016: Issuer % of Portfolio Federal Home Loan Bank 24.64% Federal Farm Credit Bank 11.81% Federal Home Loan Mortgage Corporation 16.72% Federal National Mortgage Association 11.79% Total U.S. Government Agencies 64.96% Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments 372,694,933$ Cash with Fiscal Agent 11,887,225 Restricted cash and investments ‐ current 25,966,317 Restricted cash and investments ‐ noncurrent 314,649,481 Agency funds: Cash, cash equivalents and investments 38,655,974 Total 763,853,930$ FAIR VALUE MEASUREMENTS GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB Statement No. 72 are described as follows: Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 – Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs, if any, reflect the County’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County’s own data. The County has the following recurring fair value measurements as of September 30, 2016: US Treasury Notes classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for those securities. As of September 30, 2016, the fair value of the County’s US Treasury Notes was $59,015,312. US Agency obligations classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in active markets for those securities. As of September 30, 2016, the fair value of the County’s US Agency obligations was $496,286,034. 50 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 3 ‐ TRADE RECEIVABLES Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows: Trade Receivables Less Allowance for Doubtful Accounts Net Trade Receivables General Fund 1,220,425$ 672,146$ 548,279$ Bayshore Gateway Community Redevelopment Agency 12,720 12,720 ‐ Immokalee Community Redevelopment Agency 114,405 114,405 ‐ Nonmajor Governmental Funds 2,389,984 607,327 1,782,657 Total receivables reported in Governmental Funds 3,737,534 1,406,598 2,330,936 Total receivables reported in Internal Service Funds 19,299 14,519 4,780 Total Governmental Activities trade receivables 3,756,833$ 1,421,117$ 2,335,716$ County Water and Sewer 10,469,692$ 842$ 10,468,850$ Solid Waste Disposal 862,418 1,077 861,341 Emergency Medical Services 26,248,194 23,883,359 2,364,835 Nonmajor Enterprise Funds 56,325 18,021 38,304 Total Business‐type Activities trade receivables 37,636,629$ 23,903,299$ 13,733,330$ The County has multi and single‐family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP). If the homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven. If the property is transferred or sold before the end of the loan period, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate grant program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances are made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. Advances to and advances from other funds at September 30, 2016 were as follows: Advance To Advance From Governmental Activities: General Fund 563,900$ ‐$ Immokalee Community Redevelopment Agency ‐ 238,901 Other governmental funds: Unincorporated Area MSTD 447,701 ‐ Improvement Districts ‐ 208,800 Fire Control Districts ‐ 563,900 Government Facilities Impact Fees Fund ‐ 1,955,550 Total Governmental Activities 1,011,601 2,967,151 Business‐type Activities: County Water and Sewer 1,006,761 ‐ Solid Waste Disposal 948,789 ‐ Total Business‐type Activities 1,955,550 ‐ Total Advances 2,967,151$ 2,967,151$ 51 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES – CONTINUED DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2016 were as follows: Due From Due To Governmental Activities: General Fund 4,496,930$ 721,324$ Bayshore Gateway Community Redevelopment Agency 14,876 168,480 Other Governmental Funds: Road Districts 837,000 1,515 Unincorporated Area MSTD 309,848 3,585 Community Development 500 ‐ Water Management and Pollution Control 47,196 ‐ Grants and Shared Revenues 811,902 4,670,320 Improvement Districts 34,547 100,000 Fire Control Districts 27,064 ‐ Lighting Districts 10,940 ‐ 911 Enhancement Fee ‐ 33,978 Tourist Development 170,668 ‐ Confiscated Property ‐ 1,893 Other Public Safety Revenue Funds ‐ 48,828 Radio Road Limited General Obligation Bonds 630 ‐ Community Redevelopment Taxable Note 144,609 ‐ Forest Lakes Limited General Obligation Bonds 104,175 ‐ Special Obligation Revenue Bonds ‐ 7,950,000 County‐Wide Capital Improvement ‐ 6,200 Parks Improvements 349,437 ‐ Correctional Facilities Impact Fee 1,360,000 ‐ Water Management 158,409 398,027 Parks Impact Fee 2,511,000 ‐ Road Impact Districts ‐ 376,775 Road Construction 4,171,651 14,390 Government Facilities Impact Fee 2,405,000 ‐ Law Enforcement Impact Fee 523,000 ‐ Other Capital Projects 1,003 ‐ Total other governmental funds 13,978,579 13,605,511 Business‐type Activities: Solid Waste 42,499 500 Other Business‐type funds: Airport Authority 7,472 411,129 Collier Area Transit 31,823 180,673 Total other business‐type funds 39,295 591,802 Internal Service Funds 69,730 3,554,292 Total All Funds 18,641,909$ 18,641,909$ 52 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 5 – CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2016 is as follows: September 30, 2015 Additions Deductions Reclassifications September 30, 2016 Governmental Activities: Capital assets not depreciated: Land and other non‐depreciable assets 411,580,042$ 5,575,393$ (123,915)$ (13,900)$ 417,017,620$ Construction in progress 57,488,990 46,544,228 (28,122) (45,888,719) 58,116,377 Total capital assets not depreciated 469,069,032 52,119,621 (152,037) (45,902,619) 475,133,997 Capital assets depreciated: Buildings 445,292,077 151,135 (681,268) 8,914,301 453,676,245 Infrastructure 1,007,107,248 145,801 ‐ 29,173,167 1,036,426,216 Improvements other than buildings 280,925,102 449,916 (297,968) 4,425,968 285,503,018 Machinery and equipment 190,360,329 18,435,937 (11,499,196) 3,197,512 200,494,582 Total capital assets depreciated 1,923,684,756 19,182,789 (12,478,432) 45,710,948 1,976,100,061 Less accumulated depreciation: Buildings 163,737,319 14,074,709 (671,662) ‐ 177,140,366 Infrastructure 340,496,919 33,999,645 ‐ ‐ 374,496,564 Improvements other than buildings 162,102,153 14,212,229 (101,286) ‐ 176,213,096 Machinery and equipment 155,241,760 14,502,854 (11,289,075) 3,794 158,459,333 Total accumulated depreciation 821,578,151 76,789,437 (12,062,023) 3,794 886,309,359 Total depreciable capital assets, net 1,102,106,605 (57,606,648) (416,409) 45,707,154 1,089,790,702 Total Governmental Activities capital assets, net 1,571,175,637$ (5,487,027)$ (568,446)$ (195,465)$ 1,564,924,699$ Business‐type Activities: Capital assets not depreciated: Land and other non‐depreciable assets 31,058,890$ 333,302$ ‐$ 18,400$ 31,410,592$ Construction in progress 46,505,569 27,041,589 (764,570) (18,331,497) 54,451,091 Total capital assets not depreciated 77,564,459 27,374,891 (764,570) (18,313,097) 85,861,683 Capital assets depreciated: Buildings 142,145,411 22,395 (22,075) 4,550,270 146,696,001 Improvements other than buildings 1,146,948,979 8,992,105 (2,223,936) 12,676,450 1,166,393,598 Machinery and equipment 57,349,115 6,357,104 (2,997,165) 1,280,453 61,989,507 Total capital assets depreciated 1,346,443,505 15,371,604 (5,243,176) 18,507,173 1,375,079,106 Less accumulated depreciation: Buildings 78,981,999 4,258,767 (12,536) ‐ 83,228,230 Improvements other than buildings 402,127,747 36,655,461 (1,829,017) ‐ 436,954,191 Machinery and equipment 32,566,201 6,329,227 (2,933,837) (1,389) 35,960,202 Total accumulated depreciation 513,675,947 47,243,455 (4,775,390) (1,389) 556,142,623 Total depreciable capital assets, net 832,767,558 (31,871,851) (467,786) 18,508,562 818,936,483 Total Business‐type Activities capital assets, net 910,332,017$ (4,496,960)$ (1,232,356)$ 195,465$ 904,798,166$ 53 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 5 – CAPITAL ASSETS – CONTINUED Schedule of depreciation for fiscal year 2016: General Government 8,252,771$ Public Safety 14,918,523 Physical Environment 7,459,176 Transportation 34,657,986 Economic Environment 320,605 Human Services 412,639 Culture and Recreation 8,578,443 Subtotal 74,600,143 Internal Service Funds 2,189,294 Total Governmental Activities 76,789,437$ Water and Sewer 41,583,299$ Solid Waste 1,329,689 EMS 1,142,629 Airport Authority 1,443,398 Mass Transit 1,744,440 Total Business‐type Activities 47,243,455$ NOTE 6 – LONG‐TERM DEBT SUMMARY OF CHANGES IN LONG‐TERM OBLIGATIONS The following is a summary of changes in long‐term obligations for the year ended September 30, 2016: October 1, 2015 Additions Reductions Premium Amortized, net September 30, 2016 Due within one year Governmental Activities: Bonds Payable $ 334,875 $ ‐ $ (19,605)$ ‐ $ 315,270 $ 20,340 Premium on Bonds Payable 16,771 ‐ ‐ (1,450) 15,321 ‐ Notes Payable 6,401 ‐ (556) ‐ 5,845 558 Capital Lease Obligations 1,519 ‐ (582) ‐ 937 622 Self‐Insurance Claims 6,959 50,785 (49,842) ‐ 7,902 6,283 Net Pension Liability 134,201 91,077 ‐ ‐ 225,278 1,962 Net OPEB Obligation 2,994 2,072 (1,191) ‐ 3,875 ‐ Compensated Absences 21,790 13,014 (8,141) ‐ 26,663 9,342 Total 525,510$ 156,948$ (79,917)$ (1,450)$ 601,091$ 39,107$ Business‐type Activities: Bonds and Loans Payable 193,285$ 48,105$ (72,915)$ ‐$ $ 168,475 12,913$ Premium on Bonds Payable 816 12,048 (790) (226) 11,848 ‐ Notes Payable 64 ‐ ‐ ‐ 64 64 Capital Lease Obligations 1,074 472 (299) ‐ 1,247 382 Landfill Closure Liability 1,906 ‐ (22) ‐ 1,884 ‐ Net Pension Liability 26,451 18,683 ‐ ‐ 45,134 357 Compensated Absences 2,595 2,481 (2,294) ‐ 2,782 2,225 Total 226,191$ 81,789$ (76,320)$ (226)$ 231,434$ 15,941$ 000's Omitted 54 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 6 – LONG‐TERM DEBT – CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2016 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25% and collateralized by a limited ad valorem pledge of up to 4 mils.2,930,000$ Total Governmental Activities Limited General Obligation Bonds 2,930,000$ Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds,due in annual installments of $2,700,000 to $6,605,000 through June 1, 2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds.23,025,000$ $89,780,000 2014 Gas Tax Refunding Revenue Bonds,due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds.81,515,000 $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034; interest at 3.00%to 4.50% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 49,365,000 $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 14,330,000 $92,295,000 2011 Special Obligation Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 70,300,000 $73,805,000 2013 Special Obligation Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 73,805,000 Total Governmental Activities Revenue Bonds 312,340,000$ Governmental Activities Notes Payable $7,557,900 Bayshore Gateway Community Redevelopment Agency TaxableNote,due in monthly installments of $41,988 through June 1, 2018; variable interest rate of 30‐Day LIBOR plus 3.75% and collateralized by a pledge on all legally available non‐ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency. 5,505,721$ 55 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 6 – LONG‐TERM DEBT – CONTINUED $550,000 2012 Limited General Obligation Note, Radio Road East Municipal Service Taxing Unit, due in installments of $3,847 to $5,408 through June 1, 2022; interest at 3.44% and collateralized by a limited ad valorem pledge of up to .5 mils.339,082 Total Governmental Activities Notes Payable 5,844,803$ Total Governmental Activities Obligations 321,114,803$ Unamortized Bond Premium 15,321,339$ Governmental Activities Obligations, Net 336,436,142$ Less Current Portion of Governmental Activities Obligations (20,898,121)$ Long‐Term Portion of Governmental Activities Obligations, Net 315,538,021$ BUSINESS‐TYPE ACTIVITIES Business‐type Activities Revenue Bonds $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $1,369,430 to $4,312,275, commencing July 1, 2014 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 7,040,398$ $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $2,533,000 to $4,561,000, commencing July 1, 2017 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 17,687,000 $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000, commencing July 1, 2029 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 48,105,000 Total Business‐type Activities Revenue Bonds 72,832,398$ Business‐type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non‐interest bearing agreement.64,255$ $13,730,740 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.65% payable in 40 semiannual payments commencing January 15, 1999 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.1,714,626 $21,951,544 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing November 15, 2001 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.6,736,021 $5,055,347 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing October 15, 2004 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.2,443,943 $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 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.3,104,979 $28,630,467 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.95% payable in 40 semiannual payments commencing June 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.16,007,563 56 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 6 – LONG‐TERM DEBT – CONTINUED $10,280,778 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.90% payable in 40 semiannual payments commencing September 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 5,514,243$ $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 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,855,539 $4,210,716 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 40 semiannual payments commencing November 15, 2007 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,516,161 $5,625,546 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.3,505,100 $21,126,718 County Water and Sewer District State Revolving Fund Loan,interest payableat 2.25%, 2.64%, 2.71% and 2.79% payable in 40 semiannual payments commencing August 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.14,622,015 $42,505,652 County Water and Sewer District State Revolving Fund Loan,interest payableat 2.25%, 2.37%, 2.64% and 2.79% payable in 40 semiannual payments commencing October 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.34,588,439 $2,864,137 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,033,809 Total Business‐type Activities Loans and Notes Payable 95,706,693$ Total Business‐type Activities Obligations 168,539,091$ Unamortized Bond Premium 11,848,177$ Business‐type Activities Obligations, Net 180,387,268$ Less Current Portion of Business‐type Activities Obligations Payable from Unrestricted Assets (7,085,210)$ Less Current Portion of Business‐type Activities Obligations Payable from Restricted Assets (5,892,192)$ Long‐Term Portion of Business‐type Activities Obligations, Net 167,409,866$ 57 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 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: Fiscal Year Totals Principal Interest Principal Interest Principal Interest 2017 440,000$ 113,475$ 19,900,000$ 11,529,730$ 558,121$ 234,992$ 32,776,318$ 2018 460,000 95,475 20,655,000 10,766,957 5,058,027 162,999 37,198,458 2019 475,000 76,181 21,440,000 9,961,048 58,124 6,955 32,017,308 2020 495,000 55,569 22,270,000 9,145,667 60,156 4,924 32,031,316 2021 520,000 34,000 23,085,000 8,307,969 62,258 2,821 32,012,048 2022‐26 540,000 11,475 105,570,000 29,055,993 48,117 692 135,226,277 2027‐31 ‐ ‐ 50,565,000 15,616,260 ‐ ‐ 66,181,260 2032‐36 ‐ ‐ 48,855,000 4,717,088 ‐ ‐ 53,572,088 Totals 2,930,000$ 386,175$ 312,340,000$ 99,100,712$ 5,844,803$ 413,383$ 421,015,073$ Governmental Activities Limited General Obligation Bonds Revenue Bonds Notes Payable Fiscal Year Totals Principal Interest Principal Interest 2017 3,902,430$ 2,818,267$ 9,074,972$ 2,502,514$ 18,298,183$ 2018 3,968,061 2,753,808 9,259,742 2,253,489 18,235,100 2019 4,031,480 2,688,256 8,623,257 2,003,493 17,346,486 2020 4,099,464 2,621,655 8,862,105 1,764,650 17,347,874 2021 4,164,963 2,553,914 9,107,639 1,519,112 17,345,628 2022‐26 4,561,000 12,106,067 38,344,582 4,229,333 59,240,982 2027‐31 15,885,000 11,258,250 12,434,396 480,348 40,057,994 2032‐36 32,220,000 4,990,500 ‐ ‐ 37,210,500 Totals 72,832,398$ 41,790,717$ 95,706,693$ 14,752,939$ 225,082,747$ Business‐type Activities Revenue Bonds Notes Payable Loans and CURRENT YEAR DEBT REFUNDING On May 26, 2016, the Collier County Water and Sewer District issued the Series 2016A Water and Sewer Refunding Revenue Bonds in the par amount of $48,105,000. These bonds were issued for the purpose of currently refunding the District’s remaining Series 2006 Water and Sewer Revenue Bonds. The final maturity of the refunding bonds is July 1, 2036, with an interest rate of 5.00%. The refunding achieved a net present value savings of 17.97% on the refunded bonds. The current refunding achieved an aggregate debt service savings of $15,922,828 and an economic gain of $10,737,030. The refunded Series 2006 bonds were redeemed on July 1, 2016. 58 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 6 – LONG‐TERM DEBT – CONTINUED RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from non‐ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds. According to County resolutions authorizing the issuance of the Series 2012 and 2014 Gas Tax Revenue Refunding Bonds, the issues are payable from and secured by liens on gas tax revenues. Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the Agency’s Series 2013 taxable note. The Agency has additionally covenanted to budget and appropriate from all legally available non‐ad valorem revenues of the Agency to pay the Series 2013 note to the extent the tax increment revenues are insufficient. The Series 2013 note does not constitute an indebtedness of the County and is payable solely from the security provided by the Agency. The Agency is required to have a debt service reserve balance of $800,000 as of the end of fiscal year 2016. The Agency was in compliance with these covenants for the year ended September 30, 2016. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $72,832,398 in Series 2013, 2015 and 2016 revenue bonds. Proceeds from the bonds were used for the refinancing of bonds issued for rehabilitation or expansion of the District’s water and sewer systems. Principal and interest are payable through July 1, 2036, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2016 pledged revenues, net of operating expenses, were $40,982,058 and $54,625,732 when system development fees were included. Principal and interest paid on the bonds during fiscal year 2016 totaled $6,827,648, providing coverage of 600% and 800%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2016. The 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 is subordinate in all respects to the liens placed upon pledged revenues established by bonded indebtedness. The District must maintain rates and charges for services which together with system development fees are sufficient to pay 115% to 125%, depending upon the individual loan agreement, of the annual debt service requirements on the loans, as well as satisfy the coverage requirements of all senior debt obligations. The District’s State Revolving Fund loans were in compliance with these covenants for the year ended September 30, 2016. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. 59 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 6 – LONG‐TERM DEBT – CONTINUED INTEREST CAPITALIZED Interest costs on the long‐term debt of business‐type activities, including capitalized leases, incurred and capitalized during the year ended September 30, 2016 were as follows: Total Interest Cost Incurred Interest Cost Capitalized Net Interest Expense Business‐type Activities $ 4,761,115 $ 1,537,416 $ 3,223,699 Interest expense is shown as a direct expense of the Business‐type Activities. LEASE OBLIGATIONS Capitalized leases payable at September 30, 2016 amounted to $2,184,342. These obligations, which are collateralized by equipment and vehicles, have total annual installments ranging from $29,702 to $1,059,053 including interest ranging from 1.83% to 4.82% and mature through 2022. As of year‐end, equipment currently leased under capital leases in the governmental activities had a historical cost of $2,942,557 and accumulated depreciation of $1,648,225. Equipment currently leased under capital leases in the business‐type activities had a historical cost of $2,518,891 and accumulated depreciation of $1,043,377. Future minimum capital lease obligations as of September 30, 2016 were as follows: Governmental Business‐type Activities Activities Total 663,212$ 395,841$ 1,059,053$ 92,889 353,137 446,026 92,887 352,412 445,299 92,887 94,430 187,317 40,233 78,693 118,926 29,702 ‐ 29,702 Total minimum lease payments 1,011,810 1,274,513 2,286,323 Less amount representing interest (74,496) (27,485) (101,981) Present value of minimum lease payments 937,314$ 1,247,028$ 2,184,342$ 2022 2017 2018 2019 2020 2021 The County also leases office space, office equipment and storage space under operating leases. These leases expire or are cancellable within the next fiscal year. In the normal course of operations, these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within the governmental activities for the year ended September 30, 2016 were $2,546,579. Total rental expenditures for all operating leases within business‐type activities governmental activities for the year ended September 30, 2016 were $399,054. 60 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 7 – CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi‐family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2016, the outstanding principal amount payable on all component unit conduit debt was $434,393,772 and is made up of the following: Industrial development revenue bonds 214,835,000$ Housing finance revenue bonds 25,378,772 Health facilities revenue bonds 104,895,000 Educational facilities revenue bonds 89,285,000 Total 434,393,772$ NOTE 8 – DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost‐sharing multiple‐employer defined benefit pension plan, to assist retired members of any State‐administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State‐administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ web site (www.dms.myflorida.com). The County’s pension expense totaled $37,906,261 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2016. 61 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost‐of‐living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in‐line‐of‐ duty or regular disability and survivors’ benefits. 62 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED The following chart shows the percentage value for each year of service credit earned: % Value (per year of service) Retirement up to age 62 or up to 30 years of service 1.60 Retirement up to age 63 or with 31 years of service 1.63 Retirement up to age 64 or with 32 years of service 1.65 Retirement up to age 65 or with 33 or more years of service 1.68 Retirement up to age 65 or up to 33 years of service 1.60 Retirement up to age 66 or with 34 years of service 1.63 Retirement up to age 67 or with 35 years of service 1.65 Retirement up to age 68 or with 36 or more years of service 1.68 3.00 2.00 Service from December 1, 1970, through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 Special Risk Regular Class, Initial Enrollment and Retirement Age/Years of Service: Regular Class members initially enrolled before July 1, 2011 Regular Class members initially enrolled on or after July 1, 2011 Elected County Officers Senior Management Service Class As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost‐of‐living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost‐of‐living adjustment. The annual cost‐of‐living adjustment is a proportion of 3 percent determined by dividing the sum of the pre‐July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost‐of‐living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, were as follows: Regular employees‐7.26% and 7.52%; County Elected Officials‐42.27% and 42.47%; Senior Management Services‐21.43% and 21.77%; and DROP participants‐12.88% and 12.99%. The County’s contributions to the FRS Plan were $20,563,824 for the year ended September 30, 2016. PENSION COSTS At September 30, 2016, the County reported a liability of $195,167,590 for its proportionate share of the FRS Plan’s net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The County’s proportion of the net pension liability was based on the County’s contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016, relative to the total employer contributions received from all of FRS’s participating employers. At June 30, 2016, the County’s proportion was 0.772939%, which was an increase of 0.036832% from its proportion measured as of June 30, 2015. 63 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED For the year ended September 30, 2016, the County recognized pension expense of $31,295,717 for its proportionate share of FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience 14,943,531$ 1,817,142$ Changes in Actuarial Assumptions 11,807,054 ‐ Net Difference Between Projected and Actual Earnings on Pension Plan Investments 50,448,442 ‐ Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 9,135,750 1,558,370 County Contributions Subsequent to the Measurement Date 5,922,271 ‐ Total 92,257,048$ 3,375,512$ Deferred outflows of resources related to pensions of $5,922,271, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ended September 30 Amount 2017 11,920,278$ 2018 11,920,278 2019 31,588,212 2020 22,157,963 2021 4,076,857 Thereafter 1,295,677 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per year Salary Increases 3.25%, Average, Including Inflation Investment Rate of Return 7.60%, Net of Pension Plan Investment Expense Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013. The long‐term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward‐looking capital market economic model. The allocation policy’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. 64 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED The target allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 3.0% 3.0% 1.7% Fixed income 18.0%4.7%4.6%4.6% Global equity 53.0% 8.1% 6.8% 17.2% Real estate (property)10.0% 6.4% 5.8% 12.0% Private Equity 6.0% 11.5% 7.8% 30.0% Strategic investments 12.0% 6.1% 5.6% 11.1% Totals 100.0% Assumed Inflation ‐ Mean 2.6%1.9% DISCOUNT RATE The discount rate used to measure the total pension liability was 7.60% for the FRS Plan. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate FRS Plan Discount Rate 6.60%7.60%8.60% County's Proportionate Share of the FRS Plan Net Pension Liability 359,316,745$ 195,167,590$ 58,535,096$ PENSION PLAN FIDUCIARY NET POSITION Detailed information about the FRS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State‐administered retirement systems in paying th eir health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 65 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED BENEFITS PROVIDED For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State‐administered retirement system must provide proof of health insurance coverage, which may include Medicare. CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rates include a 1.66% HIS Plan subsidy for the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, pursuant to Section 112.363, Florida Statues. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County’s contributions to the HIS Plan were $3,415,537 for the year ended September 30, 2016. PENSION COSTS At September 30, 2016, the County reported a liability of $75,244,385 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The County’s proportion of the net pension liability was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016, relative to the total employer contributions received from all participating employers. At June 30, 2016, the County’s proportion was 0.645620%, which was an increase of 0.002637% from its proportion measured as of June 30, 2015. For the year ended September 30, 2016, the County recognized pension expense of $6,610,544 for its proportionate share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience ‐$ 171,379$ Changes in Actuarial Assumptions 11,807,758 ‐ Net Difference Between Projected and Actual Earnings on HIS Program Investments 38,044 ‐ Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 2,828,235 982,487 County Contributions Subsequent to the Measurement Date 849,168 ‐ Total 15,523,205$ 1,153,866$ 66 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED Deferred outflows of resources related to pensions of $849,168, resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ended September 30 Amount 2017 2,449,206$ 2018 2,449,206 2019 2,441,962 2020 2,438,484 2021 2,114,861 Thereafter 1,626,452 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per year Salary Increases 3.25%, Average, Including Inflation Municipal Bond Rate 2.85% Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013. DISCOUNT RATE The discount rate used to measure the total pension liability was 2.85% for the HIS Plan. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long‐term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay‐as‐ you‐go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20‐Bond Municipal Bond Index was adopted as the applicable municipal bond index. PENSION LIABILITY SENSITIVITY The following presents the County’s proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate HIS Plan Discount Rate 1.85%2.85%3.85% County's Proportionate Share of the HIS Plan Net Pension Liability 86,322,403$ 75,244,385$ 66,050,232$ 67 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. NOTE 9 – DEFINED CONTRIBUTION PLAN The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .04% of payroll from July 1, 2015 to June 30, 2016 and .06% of payroll from July 1, 2016 to June 30, 2017 in addition to forfeited benefits of plan members. The County’s Investment Plan pension expense totaled $3,589,697 for the year ended September 30, 2016. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non‐vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS‐covered employment within the 5‐year period, the employee will regain control over their account. If the employee does not return within the 5‐year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump‐sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 68 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 10 – TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from, (2) move receipts restricted to debt service to the debt service fund as payments become due and (3) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations. Transfers for the year ended September 30, 2016 were as follows: Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds 59,200,873$ Solid Waste Disposal 42,500 Emergency Medical Services 15,786,000 Nonmajor Business‐type 2,737,317 Internal Service Funds 651,000 Bayshore Gateway CRA Nonmajor Governmental Funds 858,500 Nonmajor Governmental Funds General Fund 3,186,554 Bayshore Gateway CRA 136,800 Immokalee CRA 85,000 Nonmajor Governmental Funds 50,614,243 County Water and Sewer 14,200 Nonmajor Business‐type 1,769,836 Internal Service Funds 2,447,000 Business‐type Activities: County Water and Sewer General Fund 5,351,100 Nonmajor Governmental Funds 266,653 Solid Waste Disposal 138,400 Solid Waste Disposal General Fund 641,451 Nonmajor Governmental Funds 983 Nonmajor Business‐type Nonmajor Governmental Funds 34,821 Internal Service Funds General Fund 1,276,600 Total Operating Transfers 145,239,831$ NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued in the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. 69 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for grants: State and federal government grant monies restricted for grant related purposes. 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 nonexpendable purposes – other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues – other: Balances are restricted for specific uses associated with the revenue collected. 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. Governmental funds report fund balances as either spendable or non‐spendable. Spendable fund balances are further classified as restricted, committed, assigned or unassigned depending upon the extent to which there are external or internal constraints on the spending of these fund balances. Non‐spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. Spendable fund balance: Restricted fund balance – Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance – Amounts that can be spent only for specific purposes determined by the County’s highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance – Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance – Unassigned fund balance is the residual classification for the County’s general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractual arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 70 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED A detailed schedule of fund balances at September 30, 2016 is as follows: Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Nonspendable: Endowments ‐$ ‐$ ‐$ 1,582,800$ 1,582,800$ Advances 563,900 ‐ ‐ 447,701 1,011,601 Notes 1,597,726 ‐ ‐ ‐ 1,597,726 Inventory 1,487,018 ‐ ‐ 1,024,567 2,511,585 Prepaid costs 26,796 ‐ ‐ ‐ 26,796 Total nonspendable fund balance 3,675,440 ‐ ‐ 3,055,068 6,730,508 Restricted for: Community redevelopment ‐ 10,362,400 87,204 ‐ 10,449,604 Federal and state grants 263,481 ‐ ‐ 8,511,028 8,774,509 Bond covenants or debt service ‐ ‐ ‐ 9,541,371 9,541,371 Transportation growth related capital ‐ ‐ ‐ 56,862,980 56,862,980 Parks growth related capital expansion ‐ ‐ ‐ 23,125,404 23,125,404 Transportation capital projects ‐ ‐ ‐ 43,873,982 43,873,982 Community development ‐ ‐ ‐ 39,551,787 39,551,787 Transportation operations ‐ ‐ ‐ 2,960,385 2,960,385 Tourist development ‐ ‐ ‐ 65,021,180 65,021,180 Conservation Collier ‐ ‐ ‐ 33,253,360 33,253,360 Emergency 911 ‐ ‐ ‐ 3,594,920 3,594,920 Law Enforcement ‐ ‐ ‐ 10,209,383 10,209,383 Fire services growth related capital ‐ ‐ ‐ 71,261 71,261 Government facilities growth capital ‐ ‐ ‐ 2,318,366 2,318,366 Libraries growth related capital ‐ ‐ ‐ 1,098,532 1,098,532 Court functions ‐ ‐ ‐ 7,556,502 7,556,502 Public records modernization ‐ ‐ ‐ 4,825,868 4,825,868 Other purposes ‐ ‐ ‐ 1,508,423 1,508,423 Total restricted fund balance 263,481 10,362,400 87,204 313,884,732 324,597,817 Committed for: Special districts ‐ ‐ ‐ 22,177,565 22,177,565 Natural resource management ‐ ‐ ‐ 1,915,391 1,915,391 Utility regulation ‐ ‐ ‐ 1,418,550 1,418,550 Other purposes ‐ ‐ ‐ 557,639 557,639 Total committed fund balance ‐ ‐ ‐ 26,069,145 26,069,145 Assigned for: Parks and recreation ‐ ‐ ‐ 5,097,291 5,097,291 General building & improvements ‐ ‐ ‐ 9,252,494 9,252,494 Water management ‐ ‐ ‐ 12,041,456 12,041,456 Libraries ‐ ‐ ‐ 467,044 467,044 Other purposes 1,673,668 ‐ ‐ 1,785,214 3,458,882 Total assigned fund balance 1,673,668 ‐ ‐ 28,643,499 30,317,167 Unassigned:53,960,944 ‐ ‐ (88,916) 53,872,028 Total Fund Balances 59,573,533$ 10,362,400$ 87,204$ 371,563,528$ 441,586,665$ 71 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 12 – RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self‐insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self‐insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self‐insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self‐insurance fund and for all other covered risks of loss. Claim Type County’s Coverage Excess Carrier’s Coverage Property and casualty claims $50,000 ‐$500,000 (5% Named Storm) $50,000 ‐$75,000,000 Auto liability claims $300,000 $300,000 ‐ $5,000,000 Employee health claims $400,000 $400,000 ‐ Unlimited Workers' compensation claims $500,000 $500,000 ‐ Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2016 the operating departments were charged $39,516,689 for workers' compensation, health and property and casualty self‐insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $5,523,170 reported at September 30, 2016 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%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $3,904,371 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self‐Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self‐Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self‐Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self‐insurance fund providing coverage for the first $500,000 of every claim. Re‐insurance is provided through a third party insurer for all claims exceeding $500,000 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 Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self‐insured risks are reported in the basic financial statements of the Statewide Florida Sheriff’s Self‐Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. 72 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 12 – RISK MANAGEMENT – CONTINUED 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 any one incident exceeding $200,000. 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 yet reported. The claims loss reserve for health of $2,379,000 reported at September 30, 2016 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff’s health claim loss reserve is recorded as a current liability. CHANGES IN SELF‐INSURANCE CLAIMS PAYABLE Changes in the self‐insurance claims payable for fiscal years 2015 and 2016 were as follows for the County and Sheriff self‐ insurance programs: Property and Group Workers' Casualty Health Compensation Total Balance at September 30, 2014 1,108,635$ 4,869,000$ 595,193$ 6,572,828$ Current year claims incurred and changes in estimates 1,004,390 50,779,519 460,864 52,244,773 Claim payments (1,258,999) (50,084,519) (514,649) (51,858,167) Balance at September 30, 2015 854,026$ 5,564,000$ 541,408$ 6,959,434$ Current year claims incurred and changes in estimates 1,494,744 48,722,181 567,829 50,784,754 Claim payments (1,154,593) (48,175,181) (512,244) (49,842,018) Balance at September 30, 2016 1,194,177$ 6,111,000$ 596,993$ 7,902,170$ NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS Plan Description – The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County’s health insurance plan at the same group rate as for active employees. The plan does not issue a separate financial report. The Board of County Commissioners and the Tax Collector administer an additional 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 Board, 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. A subsidy is currently provided to six retirees. The Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. 73 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED At October 1, 2015, the date of the latest actuarial valuation, County plan participation consisted of: OPEB plan participants 2,107 Retirees receiving benefits 70 Funding Policy ‐ The County has the authority to establish and amend funding policy. For the year ended September 30, 2016, the County contributed $373,477 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the County’s OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County’s annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. 2016 2015 2014 Annual required contribution (ARC) 825,788$ 825,046$ 816,457$ Interest on net OPEB obligation 24,782 25,484 25,017 Adjustment to ARC (40,917) (42,077) (41,306) Annual OPEB cost 809,653 808,453 800,168 Contributions made (373,477) (831,869) (784,612) Increase (decrease) in net OPEB obligation 436,176 (23,416) 15,556 Net OPEB obligation ‐ beginning of year 826,053 849,469 833,913 Net OPEB obligation ‐ en d of year 1,262,229$ 826,053$ 849,469$ Percentage of annual OPEB cost contributed 46% 103%98% Funded Status and Funding Progress ‐ As of September 30, 2015, the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $7,178,976, and the actuarial value of plan assets was $0, resulting in a UAAL of $7,178,976. As of September 30, 2016, the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $7,487,742, and the actuarial value of plan assets was $0, resulting in a UAAL of $7,487,742. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $125.7 million, and the ratio of the UAAL to the covered payroll was 6%. Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long‐term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the actuarial value of assets. 74 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years, Open Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 6% for the 2017 fiscal year grading to an ultimate rate of 5% for the 2022 fiscal year Plan Description ‐ The Sheriff administers a single‐employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered 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 both single and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s employees who retire and immediately begin receiving benefits from the FRS have th e option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as for active employees. The plan does not issue a separate financial report. At October 1, 2016, the date of the latest actuarial valuation, Sheriff plan participation consisted of: OPEB plan participants 1,105 Retirees receiving benefits 106 Funding Policy ‐ The Sheriff has the authority to establish and amend funding policy. For the year ended September 30, 2016, the Sheriff contributed $818,021 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the Sheriff’s OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the Sheriff’s annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. 2016 2015 2014 Annual required contribution (ARC)1,305,135$ 1,262,077$ 1,138,923$ Interest on net OPEB obligation 65,043 50,437 40,348 Adjustment to ARC (107,393) (83,277) (66,618) Annual OPEB cost 1,262,785 1,229,237 1,112,653 Contributions made (818,021) (742,376) (776,332) Increase in net OPEB obligation 444,764 486,861 336,321 Net OPEB obligation ‐ beginning of year 2,168,099 1,681,238 1,344,917 Net OPEB obligation ‐ end of year 2,612,863$ 2,168,099$ 1,681,238$ Percentage of annual OPEB cost contributed 65% 60% 70% 75 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED Funded Status and Funding Progress ‐ As of September 30, 2015, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $15,133,114, and the actuarial value of assets was $0, resulting in a UAAL of $15,133,114. As of September 30, 2016, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $15,684,350, and the actuarial value of assets was $0, resulting in a UAAL of $15,684,350. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $122.9 million, and the ratio of the UAAL to the covered payroll was 12.8%. Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long‐term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years, Closed Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 8% for the 2017 fiscal year grading to an ultimate rate of 5% for the 2023 fiscal year NOTE 14 – LANDFILL LIABILITY On May 1, 1995 the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital 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 Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County’s estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. 76 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 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, other than as disclosed here, will not materially affect the financial position of the County. The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et al v. Collier County, Case No. 08‐ 6933‐CA; Board of County Commissioners v. Francis D. Hussey, et al., Case No. 08‐6988‐CA consolidated with 08‐6933‐CA; and Sean Hussey, et al. v. Collier County, et al., Case No. 08‐7025‐CA. On September 11, 2008, the Plaintiffs, Francis D. Hussey, Jr. and Mary P. Hussey, husband and wife, and Winchester Lakes Corporation, a Florida corporation, filed an inverse condemnation suit seeking monetary damages from Collier County, Florida, the Honorable Charlie Crist, the Governor of the State of Florida and the Florida Department of Community Affairs. The Husseys contend that the designation of certain real property owned by them through a growth management plan amendment adopted in 2002 had the effect of precluding mining activities on their property, thereby resulting in a substantial diminution in value of the real estate, which the Plaintiffs contend to be compensable under Florida law. The complaint alleges current damage claims in the amount of $91,500,000. The Plaintiffs have also presented a claim for "inverse condemnation based on a regulatory taking of plaintiffs' property," in an amount not specified in the complaint. The Wildlife Federation and Collier County Audubon Society were granted leave to intervene in the suit by the Court on April 29, 2009. On July 9, 2009, the Florida Wildlife Federation and Collier County Audubon Society served upon defendants Francis and Mary Hussey a Notice of Intent to Sue over violations of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) On February 1, 2017, the Second District Court of Appeals affirmed an Order (without issuing a written opinion) of the Collier County Circuit Court approving the County’s Settlement Agreement with the Husseys, et al. The Circuit Court’s order had been appealed by the Florida Wildlife Federation, Inc. and the Collier County Audubon Society, Inc., who had intervened in the lawsuit. The time for any party to file an appeal has passed and as such this case is closed. Briefly stated, the Settlement Agreement provides as follows: 1)The County will re‐designate 578 acres of the Hussey parcel as Receiving Lands in exchange for the re‐ designation as Sending Lands of the 578 acres of Rural Fringe Receiving Lands owned by the S.R. 846 Land Trust (the “846 land”). This exchange is a net swap. It leaves the identical acreage within the Rural Fringe with a Sending Designation and identical acreage with a Receiving Designation. Collier County will amend the Future Land Use Map designation of these 578 acres accordingly. 2)Within 180 days, Husseys must deed to the County 180 feet of right‐of‐way for the future Wilson Boulevard Extension (Blackburn Road) along the southern property line of the HHH Ranch. The Owner will receive road impact fee credits for this dedication. 3)The HHH Ranch lands shall be subject to the Preservation and Native Vegetation Retention Standards within CCMA Policies based upon the existing native vegetation as depicted by a FLUCCS Map, which map shall be prepared by the Husseys, subject to County approval. The map shall be prepared and presented for review within 180 days. No development rights were conferred by this Agreement, and the County was not required to make any payment in the form of damages or otherwise to the Plaintiffs. 77 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 15 – SIGNIFICANT CONTINGENCIES – CONTINUED STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. There was no arbitrage rebate liability as of September 30, 2016. NOTE 16 – SIGNIFICANT COMMITMENTS Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been order but not received. Encumbrance commitments do not include construction contracts, as they are included as contract commitments. Collier County had the following encumbrances as of September 30, 2016: Encumbrance Category Commitments Governmental Activities: General Fund General Government 614,599$ Economic Environment 130,052 Human Services 911,322 Culture and Recreation 16,503 Bayshore Gateway Community Redevelopment Agency Economic Environment 52,956 Other Governmental Funds General Government 1,407,833 Public Safety 4,666,555 Physical Environment 3,347,610 Transportation 14,253,220 Economic Environment 3,878,472 Human Services 1,455,393 Culture and Recreation 2,737,206 Business‐type Activities: Water and Sewer Utilities 25,637,988 Solid Waste Disposal Landfill 884,674 Emergency Medical Services Emergency Medical Services 665,818 Other Enterprise Funds Airports 163,999 Ma ss Transit 1,562,516 Internal Service Funds General Government 144,744 Total 62,531,460$ 78 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 16 – SIGNIFICANT COMMITMENTS – CONTINUED Collier County has active construction projects as of September 30, 2016. The projects include road construction, governmental facilities and utilities improvements. At year end, the County’s commitments with contractors include the following: Construction Category Commitments Governmental Activities: Other Governmental Funds General Government 1,009,833$ Public Safety 1,241,488 Physical Environment 5,965,994 Transportation 33,750,427 Culture and Recreation 304,610 Business‐type Activities: Water and Sewer Utilities 30,266,299 Other Enterprise Funds Mass Transit 121,294 Total 72,659,945$ NOTE 17 – FUND DEFICITS The following fund had a fund balance deficit at September 30, 2016: Fund Amount Fire Control Districts (88,916)$ Total (88,916)$ The fund balance deficit is the result of advances from other funds made prior to September 30, 2016. These advances were recorded to ensure repayment of monies loaned primarily for the acquisition of a fire station. County management anticipates that the deficits will be covered by future years’ revenues. NOTE 18 – SUBSEQUENT EVENT In November of 2016, the Collier County Water and Sewer District (the District) borrowed $89,982,000 from Florida Community Bank, N.A. for purposes of currently refunding all of the District’s outstanding State Revolving Fund loans. The final maturity of the loan is July 1, 2029, with an interest rate of 1.80%. The refunding achieved a net present value savings of 4.19% on the refunded bonds and an aggregate debt service savings of $4,611,821. 79 THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION 2016 2015 2014 County's Proportion of the Net Pension Liability 0.772938545% 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability 195,167,590$ 95,078,054$ 42,933,306$ County's Covered‐Employee Payroll *144,013,741$ 140,176,971$ 132,386,835$ County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered‐Employee Payroll 135.52%67.83%32.43% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 84.88%92.00%96.09% * Covered payroll is pensionable wages as of the measurement date. 2016 2015 2014 Contractually Required Contribution 20,563,824$ 17,830,147$ 17,287,796$ Contributions in Relation to the Contractually Required Contribution (20,563,824) (17,830,147) (17,287,796) Contribution Deficiency (Excess)‐$ ‐$ ‐$ County's Covered‐Employee Payroll FY 148,556,236$ 139,443,152$ 133,436,828$ Contributions as a Percentage of Covered Employee Payroll 13.84%12.79%12.96% 2016 2015 2014 County's Proportion of the Net Pension Liability 0.645620406% 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability 75,244,385$ 65,574,171$ 58,101,084$ County's Covered‐Employee Payroll *199,870,915$ 195,154,275$ 184,577,284$ County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered‐Employee Payroll 37.65%33.60%31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 0.97%0.50%0.99% * Covered payroll is pensionable wages as of the measurement date. 2016 2015 2014 Contractually Required Contribution 3,415,537$ 2,614,704$ 2,131,155$ Contributions in Relation to the Contractually Required Contribution (3,415,537) (2,614,704) (2,131,155) Contribution Deficiency (Excess)‐$ ‐$ ‐$ County's Covered‐Employee Payroll FY 206,179,415$ 193,543,352$ 185,505,694$ Contributions as a Percentage of Covered Employee Payroll 1.66%1.35%1.15% Note: Information is required to be presented for 10 years. However, until a full 10‐year trend is compiled, the County will present information for only those years for which information is available. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS 82 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) ‐ Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2009 ‐$ 5,814,470$ 5,814,470$ 0% 112,828,491$ 5.2% (Non‐Sheriff) Board and Constitutionals 10/1/2010 ‐ 5,825,874 5,825,874 0% 105,458,501 5.5% (Non‐Sheriff) Board and Constitutionals 10/1/2011 ‐ 6,564,292 6,564,292 0% 106,554,662 6.2% (Non‐Sheriff) Board and Constitutionals 10/1/2012 ‐ 6,650,672 6,650,672 0% 105,433,555 6.3% (Non‐Sheriff) Board and Constitutionals 10/1/2013 ‐ 7,093,909 7,093,909 0% 102,713,900 6.9% (Non‐Sheriff) Board and Constitutionals 10/1/2014 ‐ 6,977,743 6,977,743 0%109,906,269 6.3% (Non‐Sheriff) Board and Constitutionals 10/1/2015 ‐ 7,178,976 7,178,976 0% 116,579,554 6.2% (Non‐Sheriff) Sheriff 10/1/2009 ‐$ 14,171,709$ 14,171,709$ 0% 123,296,677$ 11.5% Sheriff 10/1/2010 ‐ 12,148,033 12,148,033 0% 117,879,632 10.3% Sheriff 10/1/2011 ‐ 12,018,242 12,018,242 0% 114,185,572 10.5% Sheriff 10/1/2012 ‐ 13,291,909 13,291,909 0% 108,390,240 12.3% Sheriff 10/1/2013 ‐ 13,141,022 13,141,022 0% 107,204,015 12.3% Sheriff 10/1/2014 ‐ 14,207,209 14,207,209 0% 112,902,749 12.6% Sheriff 10/1/2015 ‐ 15,133,114 15,133,114 0% 117,563,839 12.9% Sheriff 10/1/2016 ‐ 15,685,350 15,685,350 0% 122,939,572 12.8% REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA OTHER POST EMPLOYMENT BENEFITS SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEATH PLAN 83 THIS PAGE INTENTIONALLY LEFT BLANK COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND OTHER SUPPLEMENTAL INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK Nonmajor Governmental Funds Special Revenue Funds ROAD DISTRICTS – To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT – To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT – To account for building permit and 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 water pollution control. GRANTS AND SHARED REVENUES – To account for the revenues received from federal, state and local grants. IMPROVEMENT DISTRICTS – To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS – To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICTS – To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE – To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT – To account for the 4% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP – To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND – To account for moving traffic violation surcharges received to fund the County’s intergovernmental radio communications program. STATE COURT ADMINISTRATION – To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY – To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS – To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE – To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER – To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY – To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES – To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION – To account for fund accumulation to meet the educational goals of the Collier County UF/IFAS extension. COURT FACILITIES FEE – To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING – To account for fees to be used to provide for affordable housing related projects. OTHER COURT SPECIAL REVENUE FUNDS – To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the Sheriff’s Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment Adoption Awareness Legal Aid Society Teen Court Law Enforcement Training Animal Control Domestic Violence Public Library Juvenile Assessment Center Law Library Driver Education Freedom Memorial Crime Prevention County Drug Abuse Permanent Fund RESOURCE RECOVERY PARK ENDOWMENT – To account for the permanent endowment established for the benefit of the County’s land conservation program. Debt Service Funds RADIO ROAD EAST LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources, surety reserve and payment of interest and principal on the Radio Road East limited general obligation bonds. CONSERVATION COLLIER LIMITED GENERAL OBLIGATION BONDS – 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 TAXABLE NOTE – To account for the accumulation of resources and payment of interest and principal on taxable long‐term debt incurred for the acquisition of land in the Bayshore/Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources and payment of interest and principal on long‐term debt incurred on the Forest Lakes Limited General Obligation Bonds. SPECIAL OBLIGATION REVENUE BONDS – To account for the accumulation of resources and payment of interest and principal on long‐term debt incurred in the refinancing of various outstanding variable rate commercial paper loans. OTHER DEBT SERVICE – To account for the accumulation of resources and payment of interest and principal on variable rate commercial paper loans and special assessment debt incurred in the Naples Park area. 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 valorem taxes. PARKS IMPACT DISTRICTS – To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS – To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION – To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right‐of‐way acquisition, design and construction of various transportation improvements. 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 and construction of government facilities. LAW ENFORCEMENT IMPACT FEES – To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK – To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. 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. Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue ASSETS Cash and investments 2,589,520$ 9,408,936$ 42,107,483$ 1,976,074$ 4,188,320$ Cash with fiscal agent ‐‐‐ ‐ ‐ Receivables: Interest 7,046 18,017 61,860 3,763 3,766 Trade, net 37,250 399,536 255 148 4,575 Notes ‐‐‐‐ ‐ Impact Fee ‐‐‐‐ ‐ Special assessments ‐‐‐‐ ‐ Due from other funds 837,000 309,848 500 47,196 811,902 Due from other governments 30,350 380,029 217,822 44,686 7,519,935 Deposits ‐‐‐‐ ‐ Inventory for resale ‐‐‐‐ ‐ Inventory 1,012,224 ‐‐12,343 ‐ Advances to other funds ‐447,701 ‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 4,513,390$ 10,964,067$ 42,387,920$ 2,084,210$ 12,528,498$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 243,060$ 942,670$252,416$ 69,961$ 1,943,574$ Wages payable 296,185 459,768 553,956 86,515 105,668 Due to other funds 1,515 3,585 ‐‐ 4,670,320 Due to other governments 21 503,937 1,967,976 ‐ 19,476 Unearned revenues ‐413,345 ‐‐ ‐ Refundable deposits ‐‐61,785 ‐ ‐ Retainage payable ‐‐‐‐ 1,434,368 Advances from other funds ‐‐‐‐ ‐ Total liabilities 540,781 2,323,305 2,836,133 156,476 8,173,406 Deferred inflows of resources: Unavailable revenue ‐‐‐‐ 39,414 Fund balances (deficits): Nonspendable 1,012,224 447,701 ‐12,343 ‐ Restricted 2,960,385 ‐39,551,787 ‐ 4,315,678 Committed ‐8,193,061 ‐1,915,391 ‐ Assigned ‐‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits) 3,972,609 8,640,762 39,551,787 1,927,734 4,315,678 Total liabilities, deferred inflows of resources and fund balances (deficits) 4,513,390$ 10,964,067$ 42,387,920$ 2,084,210$ 12,528,498$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Special Revenue Funds 90 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 13,413,501$ 491,989$ 1,331,568$ 3,095,934$ 58,658,851$ 1,444,214$ 76,995$ 276,894$ ‐ ‐ ‐ ‐‐‐‐ ‐ 21,218 1,425 2,235 4,946 88,406 2,261 202 667 277 381 80 ‐802,622 18,050 18,026 94,473 ‐ ‐ ‐ ‐‐539,507 ‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 34,547 27,064 10,940 ‐170,668 ‐‐ ‐ ‐ 3,254 ‐ ‐8,537,099 2,210,279 ‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 13,469,543$ 524,113$ 1,344,823$ 3,100,880$ 68,257,646$ 4,214,311$ 95,223$ 372,034$ 386,409$ 46$ 43,684$ 40,469$ 1,397,643$ 10,005$ 1,296$ 1,753$ 15,307 49,083 4,025 ‐80,447 8,956 ‐ 63,377 100,000 ‐ ‐ 33,978 ‐‐‐ ‐ ‐ ‐ ‐ ‐1,718,935 ‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐50 ‐‐ ‐ 71,637 ‐ ‐ ‐39,391 ‐‐ ‐ 208,800 563,900 ‐ ‐‐‐‐ ‐ 782,153 613,029 47,709 74,447 3,236,466 18,961 1,296 65,130 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ 3,026,433 65,021,180 4,195,350 ‐ ‐ 12,687,390 ‐ 1,297,114 ‐‐‐93,927 306,904 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ (88,916) ‐ ‐‐‐‐ ‐ 12,687,390 (88,916) 1,297,114 3,026,433 65,021,180 4,195,350 93,927 306,904 13,469,543$ 524,113$ 1,344,823$ 3,100,880$ 68,257,646$ 4,214,311$ 95,223$ 372,034$ Special Revenue Funds 91 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Property and Canals Fee Collier Technology ASSETS Cash and investments 218,550$ 929,704$ 1,368,644$ 33,086,950$ 1,013,509$ Cash with fiscal agent ‐‐‐‐ ‐ Receivables: Interest 385 1,398 2,048 49,901 1,752 Trade, net ‐‐55,219 283 71,580 Notes ‐‐‐‐ ‐ Impact Fee ‐‐‐‐ ‐ Special assessments ‐‐‐‐ ‐ Due from other funds ‐‐‐‐ ‐ Due from other governments ‐‐‐‐ ‐ Deposits ‐‐‐‐ ‐ Inventory for resale ‐229,733 ‐‐ ‐ Inventory ‐‐‐‐ ‐ Advances to other funds ‐‐‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 218,935$ 1,160,835$ 1,425,911$ 33,137,134$ 1,086,841$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable ‐$‐$4$11,809$ 20,327$ Wages payable ‐‐7,357 8,728 2,392 Due to other funds 1,893 ‐‐‐ ‐ Due to other governments ‐‐‐‐ ‐ Unearned revenues ‐‐‐‐ ‐ Refundable deposits ‐‐‐‐ ‐ Retainage payable ‐‐‐‐ ‐ Advances from other funds ‐‐‐‐ ‐ Total liabilities 1,893 ‐7,361 20,537 22,719 Deferred inflows of resources: Unavailable revenue ‐‐‐‐ ‐ Fund balances (deficits): Nonspendable ‐‐‐‐ ‐ Restricted 217,042 1,160,835 ‐33,116,597 1,064,122 Committed ‐‐1,418,550 ‐ ‐ Assigned ‐‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits) 217,042 1,160,835 1,418,550 33,116,597 1,064,122 Total liabilities, deferred inflows of resources and fund balances (deficits) 218,935$ 1,160,835$ 1,425,911$ 33,137,134$ 1,086,841$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Special Revenue Funds 92 Other Other Other Total Court Court Special Public Safety Special Special Court University Facilities Affordable Revenue Revenue Revenue Revenue Services Extension Fee Housing Funds Funds Funds Funds 1,530,273$ 124,727$ 6,541,568$ 156,573$ 4,890,203$ 4,044,965$ 1,765,384$ 194,731,329$ ‐ ‐ ‐ ‐ ‐‐‐ ‐ ‐ 188 9,691 235 ‐2,531 3,129 287,070 ‐ ‐ 64,412 ‐‐35,529 24,913 1,627,609 ‐ ‐ ‐ ‐‐‐‐ 539,507 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ 2,249,665 40,813 ‐ ‐ ‐19,250 ‐‐ 19,003,517 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ 229,733 ‐ ‐ ‐ ‐‐‐‐ 1,024,567 ‐ ‐ ‐ ‐‐‐‐ 447,701 ‐ ‐ ‐ ‐‐‐‐ ‐ 1,571,086$ 124,915$ 6,615,671$ 156,808$ 4,909,453$ 4,083,025$ 1,793,426$ 220,140,698$ 5,472$ ‐$ 17,666$ ‐$33,346$14,694$ 270,548$ 5,706,852$ 236,203 ‐ ‐ ‐50,239 ‐2,600 2,030,806 ‐ ‐ ‐ ‐‐48,828 ‐ 4,860,119 1,329,411 ‐ ‐ ‐‐‐‐ 5,539,756 ‐ ‐ ‐ ‐‐‐‐ 413,345 ‐ ‐ ‐ ‐‐‐‐ 61,835 ‐ ‐ 105,625 ‐‐‐30,995 1,682,016 ‐ ‐ ‐ ‐‐‐‐ 772,700 1,571,086 ‐ 123,291 ‐83,585 63,522 304,143 21,067,429 ‐ ‐ ‐ ‐‐‐‐ 39,414 ‐ ‐ ‐ ‐‐‐‐ 1,472,268 ‐ 124,915 6,492,380 ‐4,825,868 4,019,503 515,778 170,607,853 ‐ ‐ ‐ 156,808 ‐‐‐ 26,069,145 ‐ ‐ ‐ ‐‐‐973,505 973,505 ‐ ‐ ‐ ‐‐‐‐ (88,916) ‐ 124,915 6,492,380 156,808 4,825,868 4,019,503 1,489,283 199,033,855 1,571,086$ 124,915$ 6,615,671$ 156,808$ 4,909,453$ 4,083,025$ 1,793,426$ 220,140,698$ Special Revenue Funds 93 Permanent Fund Conservation Resource Radio Road East Collier Community Forest Lakes Recovery Park Limited General Limited General Redevelopment Limited General Endowment Obligation Bonds Obligation Bonds Taxable Note Oblibation Bonds ASSETS Cash and investments 1,716,994$ 110,026$648$128$ 741,346$ Cash with fiscal agent ‐‐‐802,559 ‐ Receivables: Interest 2,569 173 ‐‐ 1,118 Trade, net ‐‐‐‐ ‐ Notes ‐‐‐‐ ‐ Impact Fee ‐‐‐‐ ‐ Special assessments ‐‐‐‐ ‐ Due from other funds ‐630 ‐144,609 104,175 Due from other governments ‐‐‐‐ ‐ Deposits ‐‐‐‐ ‐ Inventory for resale ‐‐‐‐ ‐ Inventory ‐‐‐‐ ‐ Advances to other funds ‐‐‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 1,719,563$ 110,829$648$947,296$ 846,639$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable ‐$‐$‐$‐$ ‐$ Wages payable ‐‐‐‐ ‐ Due to other funds ‐‐‐‐ ‐ Due to other governments ‐‐‐‐ ‐ Unearned revenues ‐‐‐‐ ‐ Refundable deposits ‐‐‐‐ ‐ Retainage payable ‐‐‐‐ ‐ Advances from other funds ‐‐‐‐ ‐ Total liabilities ‐‐‐‐ ‐ Deferred inflows of resources: Unavailable revenue ‐‐‐‐ ‐ Fund balances (deficits): Nonspendable 1,582,800 ‐‐‐ ‐ Restricted 136,763 110,829 648 947,296 846,639 Committed ‐‐‐‐ ‐ Assigned ‐‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits) 1,719,563 110,829 648 947,296 846,639 Total liabilities, deferred inflows of resources and fund balances (deficits) 1,719,563$ 110,829$648$947,296$ 846,639$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Debt Service Fund 94 Total Emergency Special Other Debt County‐Wide Count‐Wide Correctional Medical Obligation Debt Service Capital Parks Library Facilities Services Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 33,261$ 89,262$ 974,671$ 13,601,989$ 1,851,077$ 1,102,706$ 868,723$ 564,082$ 11,084,666 ‐ 11,887,225 ‐‐‐‐ ‐ 515 141 1,947 21,833 3,186 2,141 3,273 1,047 ‐ 47 47 ‐4,687 ‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐201,042 60,421 56,905 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ 249,414 ‐349,437 ‐1,360,000 ‐ ‐ ‐ ‐ 12,389 ‐13,755 24,283 5,293 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 11,118,442$ 89,450$ 13,113,304$ 13,636,211$ 2,208,387$ 1,319,644$ 2,316,700$ 627,327$ ‐$ ‐$ ‐$ 3,610,426$ 126,784$ 20,070$ ‐$ 1,935$ ‐ ‐ ‐ ‐‐‐‐ ‐ 7,950,000 ‐ 7,950,000 6,200 ‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ 767,091 ‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 7,950,000 ‐ 7,950,000 4,383,717 126,784 20,070 ‐ 1,935 ‐ ‐ ‐ ‐‐201,042 60,421 56,905 ‐ ‐ ‐ ‐‐‐‐ ‐ 3,168,442 89,450 5,163,304 ‐‐1,098,532 2,256,279 568,487 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ 9,252,494 2,081,603 ‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 3,168,442 89,450 5,163,304 9,252,494 2,081,603 1,098,532 2,256,279 568,487 11,118,442$ 89,450$ 13,113,304$ 13,636,211$ 2,208,387$ 1,319,644$ 2,316,700$ 627,327$ Debt Service Fund Capital Project Funds 95 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees ASSETS Cash and investments 12,385,367$ 20,557,907$ 59,992,553$ 44,995,802$ 1,820,948$ Cash with fiscal agent ‐‐ ‐ ‐ ‐ Receivables: Interest 20,021 33,980 92,836 65,473 7,658 Trade, net ‐‐‐147,927 ‐ Notes ‐‐‐‐ ‐ Impact Fee ‐1,220,416 3,128,471 ‐ 189,487 Special assessments ‐‐‐‐ ‐ Due from other funds 158,409 2,511,000 ‐4,171,651 2,405,000 Due from other governments ‐99,838 559,566 1,621,074 40,310 Deposits ‐1,250 ‐‐ ‐ Inventory for resale ‐‐‐‐ ‐ Inventory ‐‐‐‐ ‐ Advances to other funds ‐‐‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 12,563,797$ 24,424,391$ 63,773,426$ 51,001,927$ 4,463,403$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 174,276$ 78,571$ 2,247,900$ 1,489,286$ ‐$ Wages payable 2,949 ‐‐108,897 ‐ Due to other funds 398,027 ‐376,775 14,390 ‐ Due to other governments ‐‐‐1,000,000 ‐ Unearned revenues ‐‐‐‐ ‐ Refundable deposits ‐‐‐‐ ‐ Retainage payable 238 ‐1,157,300 137,305 ‐ Advances from other funds ‐‐‐‐ 1,955,550 Total liabilities 575,490 78,571 3,781,975 2,749,878 1,955,550 Deferred inflows of resources: Unavailable revenue ‐1,220,416 3,128,471 ‐ 189,487 Fund balances (deficits): Nonspendable ‐‐‐‐ ‐ Restricted ‐23,125,404 56,862,980 48,252,049 2,318,366 Committed ‐‐‐‐ ‐ Assigned 11,988,307 ‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits) 11,988,307 23,125,404 56,862,980 48,252,049 2,318,366 Total liabilities, deferred inflows of resources and fund balances (deficits) 12,563,797$ 24,424,391$ 63,773,426$ 51,001,927$ 4,463,403$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Capital Project Funds 96 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Capital Project Governmental Impact Fees Park Projects Funds Funds 3,399,342$ 3,013,795$ 1,492,072$ 165,646,363$ 363,069,357$ ‐ ‐ ‐‐11,887,225 7,199 4,507 2,434 265,588 557,174 ‐ ‐ 2,387 155,001 1,782,657 ‐ ‐ ‐‐539,507 69,279 ‐ ‐4,926,021 4,926,021 ‐ ‐ 4,154 4,154 4,154 523,000 ‐ 1,003 11,479,500 13,978,579 ‐ ‐ ‐2,376,508 21,380,025 ‐ ‐ ‐1,250 1,250 ‐ ‐ ‐‐229,733 ‐ ‐ ‐‐1,024,567 ‐ ‐ ‐‐447,701 ‐ ‐ ‐‐‐ 3,998,820$ 3,018,302$ 1,502,050$ 184,854,385$ 419,827,950$ 374,820$ 2,614$ 76,751$ 8,203,433$ 13,910,285$ ‐ ‐ 22,136 133,982 2,164,788 ‐ ‐ ‐795,392 13,605,511 ‐ ‐ ‐1,000,000 6,539,756 ‐ ‐ ‐‐413,345 ‐ ‐ ‐‐61,835 131,267 ‐ ‐2,193,201 3,875,217 ‐ ‐ ‐1,955,550 2,728,250 506,087 2,614 98,887 14,281,558 43,298,987 69,279 ‐ ‐4,926,021 4,965,435 ‐ ‐ ‐‐3,055,068 3,423,454 ‐ 71,261 137,976,812 313,884,732 ‐ ‐ ‐‐26,069,145 ‐ 3,015,688 1,331,902 27,669,994 28,643,499 ‐ ‐ ‐‐(88,916) 3,423,454 3,015,688 1,403,163 165,646,806 371,563,528 3,998,820$ 3,018,302$ 1,502,050$ 184,854,385$ 419,827,950$ Capital Project Funds 97 Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue Revenues: Taxes ‐$34,811,695$ ‐$1,981,982$ ‐$ Licenses, permits and impact fees ‐39,065 24,468,105 615 ‐ Intergovernmental 1,737,615 ‐‐‐ 17,170,282 Charges for services 270,588 3,285,833 3,274,745 334,994 36,646 Fines and forfeitures ‐311,177 ‐‐ ‐ Interest income 26,785 163,208 358,135 32,178 27,855 Special assessments ‐‐‐3,219,735 ‐ Miscellaneous 66,275 253,769 50,039 2,471 935,967 Total revenues 2,101,263 38,864,747 28,151,024 5,571,975 18,170,750 Expenditures: Current: General government ‐6,327,837 6,682,858 ‐ 689,365 Public safety ‐4,279,501 13,616,516 ‐ 2,211,027 Physical environment ‐717,169 1,187,888 3,063,119 374,309 Transportation 15,272,508 6,973,391 357,834 2,110,610 42,089 Economic environment ‐56,660 ‐‐ 4,905,336 Human services ‐‐‐‐ 2,961,501 Culture and recreation ‐11,889,352 ‐‐ 221,349 Debt service Principal ‐‐‐‐ ‐ Interest ‐‐‐‐ ‐ Fiscal charges ‐‐‐‐ ‐ Capital outlay 290,808 522,007 169,852 462,363 12,255,333 Total expenditures 15,563,316 30,765,917 22,014,948 5,636,092 23,660,309 Excess (deficit) of revenues over (under) expenditures (13,462,053) 8,098,830 6,136,076 (64,117) (5,489,559) Other financing sources (uses): Sale of capital assets ‐1,400 29 18,102 ‐ Insurance proceeds 239,077 38,981 530 16,000 ‐ Transfers in 16,280,100 1,462,090 877,800 47,197 6,297,176 Transfers out (2,750,600) (9,719,992) (1,259,964) (233,594) (987) Total other financing sources (uses) 13,768,577 (8,217,521) (381,605) (152,295) 6,296,189 Net change in fund balances 306,524 (118,691) 5,754,471 (216,412) 806,630 Fund balances at beginning of year 3,666,085 8,759,453 33,797,316 2,144,146 3,509,048 Fund balances (deficits) at end of year 3,972,609$ 8,640,762$ 39,551,787$ 1,927,734$ 4,315,678$ See accompanying independent auditor's report Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 98 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 3,721,514$ 2,837,328$ 1,296,327$ ‐$21,838,332$ ‐$‐$ ‐$ ‐ ‐ ‐ ‐‐ ‐‐ ‐ ‐ ‐ ‐ 1,834,390 568,862 2,210,279 ‐ ‐ 183,223 54,722 ‐ ‐11,364 ‐420,780 296,050 ‐ ‐ ‐ ‐‐‐‐ 947,235 132,519 10,996 14,874 29,901 510,541 16,790 794 3,180 5,502 ‐ ‐ ‐‐‐‐ ‐ 664,765 2,040 9,729 60 88,992 438,662 136,759 10,847 4,707,523 2,905,086 1,320,930 1,864,351 23,018,091 2,665,731 558,333 1,257,312 ‐ ‐ ‐ ‐‐‐‐ 975,740 ‐ 2,987,912 ‐ 1,747,143 ‐‐1,190,588 1,464,585 1,988,443 ‐ ‐ ‐4,506,366 ‐‐ ‐ 1,184,640 ‐ 1,069,231 ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐1,453,984 ‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 832,094 ‐ ‐ ‐11,504,475 ‐‐ ‐ ‐ 21,897 ‐ ‐‐‐‐ ‐ ‐ 7,805 ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 368,752 20,294 ‐ 396,342 735,523 ‐‐ ‐ 4,373,929 3,037,908 1,069,231 2,143,485 16,746,364 1,453,984 1,190,588 2,440,325 333,594 (132,822) 251,699 (279,134) 6,271,727 1,211,747 (632,255) (1,183,013) ‐ ‐ ‐ ‐‐‐‐ ‐ 17,786 ‐ 6,339 ‐‐‐12,727 ‐ 508,047 592,163 10,940 ‐170,032 ‐673,500 1,361,400 (688,057) (94,029) (85,734) ‐(1,063,667) ‐‐ (39,300) (162,224) 498,134 (68,455) ‐(893,635) ‐686,227 1,322,100 171,370 365,312 183,244 (279,134) 5,378,092 1,211,747 53,972 139,087 12,516,020 (454,228) 1,113,870 3,305,567 59,643,088 2,983,603 39,955 167,817 12,687,390$ (88,916)$ 1,297,114$ 3,026,433$ 65,021,180$ 4,195,350$ 93,927$ 306,904$ Special Revenue Funds 99 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Property and Canals Fee Collier Technology Revenues: Taxes ‐$‐$261,037$4,312$ ‐$ Licenses, permits and impact fees ‐‐‐‐ ‐ Intergovernmental ‐‐‐14,700 ‐ Charges for services ‐‐100,350 570 863,982 Fines and forfeitures 9,760 ‐‐‐ ‐ Interest income 2,645 8,363 11,835 302,410 10,324 Special assessments ‐‐‐‐ ‐ Miscellaneous ‐‐‐78,476 ‐ Total revenues 12,405 8,363 373,222 400,468 874,306 Expenditures: Current: General government ‐‐‐‐ 763,972 Public safety 67,000 ‐‐‐ 43,205 Physical environment ‐‐247,764 580,258 ‐ Transportation ‐‐‐‐ ‐ Economic environment ‐‐‐‐ ‐ Human services ‐‐‐‐ 7,001 Culture and recreation ‐13 ‐‐ ‐ Debt service Principal ‐‐‐‐ ‐ Interest ‐‐‐‐ ‐ Fiscal charges ‐‐‐‐ ‐ Capital outlay ‐‐23,372 430,636 20,404 Total expenditures 67,000 13 271,136 1,010,894 834,582 Excess (deficit) of revenues over (under) expenditures (54,595) 8,350 102,086 (610,426) 39,724 Other financing sources (uses): Sale of capital assets ‐‐‐‐ ‐ Insurance proceeds ‐‐‐‐ ‐ Transfers in ‐‐‐64,980 ‐ Transfers out (57,745) ‐‐(7) ‐ Total other financing sources (uses) (57,745) ‐‐64,973 ‐ Net change in fund balances (112,340) 8,350 102,086 (545,453) 39,724 Fund balances at beginning of year 329,382 1,152,485 1,316,464 33,662,050 1,024,398 Fund balances (deficits) at end of year 217,042$ 1,160,835$ 1,418,550$ 33,116,597$ 1,064,122$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Special Revenue Funds 100 Other Other Other Total Court Court Special Public Safety Special Special Court University Facilities Affordable Revenue Revenue Revenue Revenue Services Extension Fee Housing Funds Funds Funds Funds ‐$ ‐$ ‐$ ‐$‐$‐$‐$ 66,752,527$ ‐ ‐ ‐ ‐‐‐7,894 24,515,679 310,321 ‐ ‐ ‐19,250 ‐‐ 23,865,699 6,263,767 20,778 ‐ ‐1,500,055 954,131 293,189 18,165,767 ‐ ‐ 900,299 ‐‐56,756 80,539 2,305,766 12,146 1,122 60,972 1,414 11,159 21,801 25,306 1,797,253 ‐ ‐ ‐ ‐‐‐‐ 3,225,237 ‐ ‐ ‐ ‐‐82,486 159,021 2,980,358 6,586,234 21,900 961,271 1,414 1,530,464 1,115,174 565,949 143,608,286 6,586,234 ‐ 428,322 ‐1,611,974 ‐179,378 24,245,680 ‐ ‐ ‐ ‐‐1,026,098 130,600 28,764,175 ‐ 16,432 ‐ ‐‐‐‐ 12,681,748 ‐ ‐ ‐ ‐‐‐‐ 27,010,303 ‐ ‐ ‐ ‐‐‐‐ 6,415,980 ‐ ‐ ‐ ‐‐‐172,472 3,140,974 ‐ ‐ ‐ ‐‐‐77,695 24,524,978 ‐ ‐ ‐ ‐‐‐‐ 21,897 ‐ ‐ ‐ ‐‐‐‐ 7,805 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ 1,372 849,331 ‐2,423 11,819 1,607,210 18,167,841 6,586,234 17,804 1,277,653 ‐1,614,397 1,037,917 2,167,355 144,981,381 ‐ 4,096 (316,382) 1,414 (83,933) 77,257 (1,601,406) (1,373,095) ‐ ‐ ‐ ‐‐‐‐ 19,531 ‐ ‐ ‐ ‐‐‐‐ 331,440 ‐ ‐ ‐ ‐‐250,000 86,000 28,681,425 ‐ ‐ ‐ ‐‐‐‐ (15,993,676) ‐ ‐ ‐ ‐‐250,000 86,000 13,038,720 ‐ 4,096 (316,382) 1,414 (83,933) 327,257 (1,515,406) 11,665,625 ‐ 120,819 6,808,762 155,394 4,909,801 3,692,246 3,004,689 187,368,230 ‐$ 124,915$ 6,492,380$ 156,808$ 4,825,868$ 4,019,503$ 1,489,283$ 199,033,855$ Special Revenue Funds 101 Permanent Fund Conservation Resource Radio Road East Collier Community Forest Lakes Recovery Park Limited General Limited General Redevelopment Limited General Endowment Obligation Bonds Obligation Bonds Taxable Note Oblibation Bonds Revenues: Taxes ‐$68,126$ 84$‐$ 413,620$ Licenses, permits and impact fees ‐‐‐‐ ‐ Intergovernmental ‐‐‐‐ ‐ Charges for services ‐‐‐‐ ‐ Fines and forfeitures ‐‐‐‐ ‐ Interest income 15,354 1,148 2 2,357 7,416 Special assessments ‐‐‐‐ ‐ Miscellaneous 250 ‐‐‐ ‐ Total revenues 15,604 69,274 86 2,357 421,036 Expenditures: Current: General government ‐29 11 ‐ ‐ Public safety ‐‐‐‐ ‐ Physical environment 9,093 ‐‐‐ ‐ Transportation ‐‐‐‐ ‐ Economic environment ‐‐‐‐ ‐ Human services ‐‐‐‐ ‐ Culture and recreation ‐‐‐‐ ‐ Debt service Principal ‐52,434 ‐503,856 425,000 Interest ‐12,646 ‐237,894 130,775 Fiscal charges ‐2,584 ‐111 2,957 Capital outlay 2,996 ‐‐‐ ‐ Total expenditures 12,089 67,693 11 741,861 558,732 Excess (deficit) of revenues over (under) expenditures 3,515 1,581 75 (739,504) (137,696) Other financing sources (uses): Sale of capital assets ‐‐‐‐ ‐ Insurance proceeds ‐‐‐‐ ‐ Transfers in ‐630 ‐858,500 104,175 Transfers out ‐(2,030)(64,980)‐ (13,215) Total other financing sources (uses)‐(1,400)(64,980) 858,500 90,960 Net change in fund balances 3,515 181 (64,905) 118,996 (46,736) Fund balances at beginning of year 1,716,048 110,648 65,553 828,300 893,375 Fund balances (deficits) at end of year 1,719,563$ 110,829$ 648$947,296$ 846,639$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Debt Servive Fund 102 Total Emergency Special Other Debt County‐Wide Count‐Wide Correctional Medical Obligation Debt Service Capital Parks Library Facilities Services Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees ‐$ 761$ 482,591$ ‐$‐$‐$ ‐$‐$ ‐ ‐ ‐ ‐573,399 1,002,395 1,798,860 451,547 ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ ‐46,180 ‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ 21,582 8,791 41,296 97,560 16,366 12,527 15,898 10,331 ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ 28,496 350,182 ‐ ‐‐ 21,582 9,552 523,887 126,056 986,127 1,014,922 1,814,758 461,878 ‐ ‐ 40 1,409,617 ‐‐ ‐‐ ‐ ‐ ‐ 757,116 ‐‐ 472 15,479 ‐ ‐ ‐ 46,335 ‐‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ 30 480,663 17,947 ‐‐ 9,280,000 9,900,000 20,161,290 ‐‐‐ ‐‐ 9,019,619 3,241,960 12,642,894 ‐‐‐ ‐‐ 7,757 5,171 18,580 ‐‐‐ ‐‐ ‐ ‐ ‐ 8,322,769 1,135,534 367,486 ‐1,432,835 18,307,376 13,147,131 32,822,804 10,535,867 1,616,197 385,433 472 1,448,314 (18,285,794) (13,137,579) (32,298,917) (10,409,811) (630,070) 629,489 1,814,286 (986,436) ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ 25,000 ‐‐ ‐‐ 18,066,600 13,142,900 32,172,805 17,199,800 1,605,437 585,000 488,800 150,700 ‐ (754) (80,979) (7,143,636) (331,285) (1,159,300) (1,877,400) (448,000) 18,066,600 13,142,146 32,091,826 10,081,164 1,274,152 (574,300) (1,388,600) (297,300) (219,194) 4,567 (207,091) (328,647) 644,082 55,189 425,686 (1,283,736) 3,387,636 84,883 5,370,395 9,581,141 1,437,521 1,043,343 1,830,593 1,852,223 3,168,442$ 89,450$ 5,163,304$ 9,252,494$ 2,081,603$ 1,098,532$ 2,256,279$ 568,487$ Debt Servive Fund Capital Project Funds 103 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees Revenues: Taxes ‐$‐$‐$14,299,859$ ‐$ Licenses, permits and impact fees ‐9,109,610 18,632,706 30,100 2,955,204 Intergovernmental ‐‐188,009 6,178,381 ‐ Charges for services ‐‐‐3,224,089 ‐ Fines and forfeitures ‐‐‐‐ ‐ Interest income 123,447 188,297 550,150 350,601 48,003 Special assessments 385,756 ‐‐‐ ‐ Miscellaneous 18 4,752 ‐371,854 ‐ Total revenues 509,221 9,302,659 19,370,865 24,454,884 3,003,207 Expenditures: Current: General government ‐‐‐‐ 173,306 Public safety ‐‐‐‐ ‐ Physical environment 663,139 ‐‐‐ ‐ Transportation ‐‐289,148 8,443,803 ‐ Economic environment ‐‐‐‐ ‐ Human services ‐‐‐‐ ‐ Culture and recreation ‐45,023 ‐‐ ‐ Debt service Principal ‐‐‐‐ ‐ Interest ‐‐‐‐ 5,270 Fiscal charges ‐‐‐‐ ‐ Capital outlay 4,424,258 1,019,633 12,461,119 4,599,996 1,832,630 Total expenditures 5,087,397 1,064,656 12,750,267 13,043,799 2,011,206 Excess (deficit) of revenues over (under) expenditures (4,578,176) 8,238,003 6,620,598 11,411,085 992,001 Other financing sources (uses): Sale of capital assets ‐‐‐‐ ‐ Insurance proceeds ‐‐‐2,064 ‐ Transfers in 5,564,403 ‐‐17,287,100 4,065,600 Transfers out (2,262,519) (2,935,700) (2,970,003) (16,004,777) (5,169,400) Total other financing sources (uses) 3,301,884 (2,935,700) (2,970,003) 1,284,387 (1,103,800) Net change in fund balances (1,276,292) 5,302,303 3,650,595 12,695,472 (111,799) Fund balances at beginning of year 13,264,599 17,823,101 53,212,385 35,556,577 2,430,165 Fund balances (deficits) at end of year 11,988,307$ 23,125,404$ 56,862,980$ 48,252,049$ 2,318,366$ See accompanying independent auditor's report Capital Project Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 104 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Capital Project Governmental Impact Fees Park Projects Funds Funds ‐$ ‐$ ‐$14,299,859$ 81,534,977$ 1,647,065 ‐ 5,563 36,206,449 60,722,128 ‐ ‐ ‐6,366,390 30,232,089 ‐ ‐ ‐3,270,269 21,436,036 ‐ ‐ ‐‐2,305,766 40,640 27,139 12,810 1,493,769 3,347,672 ‐ ‐ 134,811 520,567 3,745,804 ‐ ‐ ‐755,302 3,735,910 1,687,705 27,139 153,184 62,912,605 207,060,382 ‐ ‐ ‐1,582,923 25,828,643 34,326 ‐ ‐807,393 29,571,568 ‐ ‐ 1,033,431 1,742,905 14,433,746 ‐ ‐ ‐8,732,951 35,743,254 ‐ ‐ ‐‐6,415,980 ‐ ‐ ‐‐3,140,974 ‐ 17,856 44,742 606,261 25,131,239 ‐ ‐ ‐‐20,183,187 ‐ ‐ ‐5,270 12,655,969 ‐ ‐ ‐‐18,580 1,406,113 ‐ 253,901 37,256,274 55,427,111 1,440,439 17,856 1,332,074 50,733,977 228,550,251 247,266 9,283 (1,178,890) 12,178,628 (21,489,869) ‐ ‐ ‐‐19,531 ‐ ‐ ‐27,064 358,504 1,616,400 ‐ 1,558,603 50,121,843 110,976,073 (1,872,700) ‐ (4,258) (42,178,978) (58,253,633) (256,300) ‐ 1,554,345 7,969,929 53,100,475 (9,034) 9,283 375,455 20,148,557 31,610,606 3,432,488 3,006,405 1,027,708 145,498,249 339,952,922 3,423,454$ 3,015,688$ 1,403,163$ 165,646,806$ 371,563,528$ Capital Project Funds 105 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$35,827,000$ 34,811,695$ (1,015,305)$ Licenses, permits and impact fees ‐ ‐‐212,000 39,065 (172,935) Intergovernmental 1,561,100 1,737,615 176,515 ‐ ‐ ‐ Charges for services 229,100 270,588 41,488 3,699,900 3,285,833 (414,067) Fines and forfeitures ‐ ‐‐340,000 311,177 (28,823) Interest income 5,000 27,249 22,249 61,100 168,940 107,840 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 23,100 66,275 43,175 179,900 253,769 73,869 Total revenues 1,818,300 2,101,727 283,427 40,319,900 38,870,479 (1,449,421) Expenditures: Current: General government ‐ ‐‐7,084,982 6,325,210 759,772 Public safety ‐ ‐‐4,458,343 4,279,501 178,842 Physical environment ‐ ‐‐965,300 717,169 248,131 Transportation 16,532,314 15,165,175 1,367,139 8,177,982 6,973,391 1,204,591 Economic environment ‐ ‐‐106,300 56,660 49,640 Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐12,741,735 11,889,352 852,383 Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 354,648 290,808 63,840 630,955 522,007 108,948 Total expenditures 16,886,962 15,455,983 1,430,979 34,165,597 30,763,290 3,402,307 Excess (deficit) of revenues over (under) expenditures (15,068,662) (13,354,256) 1,714,406 6,154,303 8,107,189 1,952,886 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ 1,400 1,400 Insurance proceeds 110,000 239,077 129,077 30,000 38,981 8,981 Transfers in 16,280,100 16,280,100 ‐1,550,770 1,660,260 109,490 Transfers out (2,750,600) (2,750,600) ‐(9,952,530) (9,836,962) 115,568 Total other financing sources (uses) 13,639,500 13,768,577 129,077 (8,371,760) (8,136,321) 235,439 Net change in fund balances (1,429,162) 414,321 1,843,483 (2,217,457) (29,132) 2,188,325 Fund balances at beginning of year 1,496,462 1,496,462 ‐5,917,684 5,917,684 ‐ Fund balances (deficits) at end of year 67,300$ 1,910,783$ 1,843,483$ 3,700,227$ 5,888,552$ 2,188,325$ Reconciliation: Net change in fund balance, budgetary basis 414,321$ (29,132)$ Change in fair value of investments (464)(5,732) Ad valorem refunds not budgeted ‐(2,627) Change in inventory (107,333) ‐ Advances budgeted as transfers ‐(81,200) Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis 306,524$ (118,691)$ See accompanying independent auditor's report Road Disctricts COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 (Budgetary Basis) Unincorporated Area MSTD (Budgetary Basis) 106 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$2,055,600$ 1,981,982$ (73,618)$ 20,891,100 24,468,105 3,577,005 600 615 15 ‐ ‐‐‐‐ ‐ 2,863,500 3,274,745 411,245 433,600 334,994 (98,606) ‐ ‐‐‐‐ ‐ 131,900 370,923 239,023 9,000 33,309 24,309 ‐ ‐‐3,340,700 3,219,735 (120,965) 500 50,039 49,539 ‐2,471 2,471 23,887,000 28,163,812 4,276,812 5,839,500 5,573,106 (266,394) 8,298,023 6,682,858 1,615,165 ‐‐ ‐ 17,616,781 13,616,516 4,000,265 ‐‐ ‐ 1,465,700 1,187,888 277,812 3,439,124 3,068,209 370,915 370,600 357,834 12,766 2,178,899 2,110,610 68,289 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,007,500 169,852 837,648 452,611 462,363 (9,752) 28,758,604 22,014,948 6,743,656 6,070,634 5,641,182 429,452 (4,871,604) 6,148,864 11,020,468 (231,134) (68,076) 163,058 ‐ 29 29 ‐18,102 18,102 ‐ 530 530 ‐16,000 16,000 977,800 977,800 ‐‐47,672 47,672 (1,321,900) (1,359,964) (38,064) (267,700) (234,069) 33,631 (344,100) (381,605) (37,505) (267,700) (152,295) 115,405 (5,215,704) 5,767,259 10,982,963 (498,834) (220,371) 278,463 29,061,905 29,061,905 ‐1,793,434 1,793,434 ‐ 23,846,201$ 34,829,164$ 10,982,963$ 1,294,600$ 1,573,063$ 278,463$ 5,767,259$ (220,371)$ (12,788) (1,131) ‐(126) ‐5,216 ‐‐ ‐‐ 5,754,471$ (216,412)$ Water Management and Pollution Control (Budgetary Basis)(Budgetary Basis) Community Development 107 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$3,854,700$ 3,721,514$ (133,186)$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental 48,079,069 16,038,132 (32,040,937) ‐ ‐ ‐ Charges for services 92,464 36,646 (55,818) 259,400 183,223 (76,177) Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 3,295 27,031 23,736 35,300 137,432 102,132 Special assessments ‐ ‐‐5,645 5,502 (143) Miscellaneous 411,278 935,967 524,689 669,200 664,765 (4,435) Total revenues 48,586,106 17,037,776 (31,548,330) 4,824,245 4,712,436 (111,809) Expenditures: Current: General government 2,485,234 650,483 1,834,751 ‐ ‐ ‐ Public safety 4,452,520 1,638,843 2,813,677 ‐ ‐ ‐ Physical environment 444,925 374,309 70,616 3,691,054 1,988,443 1,702,611 Transportation 1,859,203 42,089 1,817,114 2,259,731 1,182,406 1,077,325 Economic environment 10,053,778 4,905,336 5,148,442 ‐ ‐ ‐ Human services 5,422,817 2,961,501 2,461,316 ‐ ‐ ‐ Culture and recreation 753,422 221,349 532,073 1,049,731 831,984 217,747 Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 38,710,907 12,169,145 26,541,762 8,281,181 368,752 7,912,429 Total expenditures 64,182,806 22,963,055 41,219,751 15,281,697 4,371,585 10,910,112 Excess (deficit) of revenues over (under) expenditures (15,596,700) (5,925,279) 9,671,421 (10,457,452) 340,851 10,798,303 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ 17,786 17,786 Transfers in 12,716,175 6,576,647 (6,139,528) 473,500 508,047 34,547 Transfers out (196,461) (147,044) 49,417 (762,940) (739,257) 23,683 Total other financing sources (uses) 12,519,714 6,429,603 (6,090,111) (289,440) (213,424) 76,016 Net change in fund balances (3,076,986) 504,324 3,581,310 (10,746,892) 127,427 10,874,319 Fund balances at beginning of year 3,782,200 3,782,200 ‐11,670,792 11,670,792 ‐ Fund balances (deficits) at end of year 705,214$ 4,286,524$ 3,581,310$ 923,900$ 11,798,219$ 10,874,319$ Reconciliation: Net change in fund balance, budgetary basis 504,324$ 127,427$ Change in fair value of investments (698)(4,913) Ad valorem refunds not budgeted ‐(2,344) Change in inventory ‐‐ Advances budgeted as transfers ‐51,200 Unbudgeted funds 303,004 ‐ Net change in fund balance, GAAP basis 806,630$ 171,370$ See accompanying independent auditor's report Grants and Shared Revenues Improvement Districts (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 108 Budget Actual Variance Budget Actual Variance 2,942,900$ 2,837,328$ (105,572)$ 1,343,500$ 1,296,327$ (47,173)$ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 15,000 54,722 39,722 ‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,200 11,325 10,125 2,500 15,385 12,885 ‐ ‐‐‐‐ ‐ 3,700 2,040 (1,660) ‐9,729 9,729 2,962,800 2,905,415 (57,385) 1,346,000 1,321,441 (24,559) ‐ ‐‐‐‐ ‐ 3,234,054 2,987,867 246,187 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐1,195,900 1,069,073 126,827 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 30,000 29,702 298 ‐‐ ‐ 20,294 20,294 ‐‐‐ ‐ 3,284,348 3,037,863 246,485 1,195,900 1,069,073 126,827 (321,548) (132,448) 189,100 150,100 252,368 102,268 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐6,339 6,339 751,000 721,300 (29,700) ‐10,940 10,940 (413,852) (371,066) 42,786 (101,400) (85,734) 15,666 337,148 350,234 13,086 (101,400) (68,455) 32,945 15,600 217,786 202,186 48,700 183,913 135,213 104,300 104,300 ‐985,700 985,700 ‐ 119,900$ 322,086$ 202,186$ 1,034,400$ 1,169,613$ 135,213$ 217,786$ 183,913$ (329)(511) (45)(158) ‐‐ 147,900 ‐ ‐‐ 365,312$ 183,244$ Fire Control Districts Lighting Districts (Budgetary Basis)(Budgetary Basis) 109 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$19,605,900$ 21,838,332$ 2,232,432$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental 1,725,000 1,834,390 109,390 ‐ 568,862 568,862 Charges for services ‐ ‐‐27,000 11,364 (15,636) Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 21,000 31,072 10,072 202,700 492,191 289,491 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ 60 60 59,000 88,992 29,992 Total revenues 1,746,000 1,865,522 119,522 19,894,600 22,999,741 3,105,141 Expenditures: Current: General government ‐ ‐‐‐ ‐ ‐ Public safety 2,949,069 1,747,143 1,201,926 ‐ ‐ ‐ Physical environment ‐ ‐‐5,026,709 4,506,366 520,343 Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐14,844,772 11,504,475 3,340,297 Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 417,686 396,342 21,344 9,902,233 735,523 9,166,710 Total expenditures 3,366,755 2,143,485 1,223,270 29,773,714 16,746,364 13,027,350 Excess (deficit) of revenues over (under) expenditures (1,620,755) (277,963) 1,342,792 (9,879,114) 6,253,377 16,132,491 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in ‐ ‐‐5,545,700 2,968,227 (2,577,473) Transfers out ‐ ‐‐(6,420,200) (3,861,862) 2,558,338 Total other financing sources (uses)‐ ‐‐(874,500) (893,635) (19,135) Net change in fund balances (1,620,755) (277,963) 1,342,792 (10,753,614) 5,359,742 16,113,356 Fund balances at beginning of year 3,898,255 3,898,255 ‐50,658,048 50,658,048 ‐ Fund balances (deficits) at end of year 2,277,500$ 3,620,292$ 1,342,792$ 39,904,434$ 56,017,790$ 16,113,356$ Reconciliation: Net change in fund balance, budgetary basis (277,963)$ 5,359,742$ Change in fair value of investments (1,171) 18,350 Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis (279,134)$ 5,378,092$ See accompanying independent auditor's report 911 Enhancement Fee Tourist Development (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 110 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ ‐ ‐‐‐‐ ‐ 6,537,979 2,210,279 (4,327,700) ‐‐ ‐ ‐ ‐‐425,700 420,780 (4,920) ‐ ‐‐‐‐ ‐ 19,664 17,537 (2,127) 300 812 512 ‐ ‐‐‐‐ ‐ 109,277 438,662 329,385 131,000 136,759 5,759 6,666,920 2,666,478 (4,000,442) 557,000 558,351 1,351 ‐ ‐‐‐‐ ‐ ‐ ‐‐1,240,300 1,190,588 49,712 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,666,920 1,453,984 5,212,936 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,666,920 1,453,984 5,212,936 1,240,300 1,190,588 49,712 ‐ 1,212,494 1,212,494 (683,300) (632,237) 51,063 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐12,727 12,727 ‐ ‐‐673,500 673,500 ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐673,500 686,227 12,727 ‐ 1,212,494 1,212,494 (9,800) 53,990 63,790 ‐ ‐‐31,200 31,200 ‐ ‐$ 1,212,494$ 1,212,494$ 21,400$ 85,190$ 63,790$ 1,212,494$ 53,990$ (747)(18) ‐‐ ‐‐ ‐‐ ‐‐ 1,211,747$ 53,972$ State Housing Initiativeship Partnership 800 MHZ IRCP Fund (Budgetary Basis)(Budgetary Basis) 111 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services 165,000 296,050 131,050 ‐ ‐ ‐ Fines and forfeitures 968,700 947,235 (21,465) ‐ 9,760 9,760 Interest income 1,300 3,257 1,957 2,200 2,752 552 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ 10,847 10,847 ‐ ‐ ‐ Total revenues 1,135,000 1,257,389 122,389 2,200 12,512 10,312 Expenditures: Current: General government 1,030,000 975,740 54,260 ‐ ‐ ‐ Public safety 1,537,700 1,464,585 73,115 67,500 67,000 500 Physical environment ‐ ‐‐‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 3,000 ‐3,000 ‐ ‐ ‐ Total expenditures 2,570,700 2,440,325 130,375 67,500 67,000 500 Excess (deficit) of revenues over (under) expenditures (1,435,700) (1,182,936) 252,764 (65,300) (54,488) 10,812 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 1,492,700 1,492,700 ‐‐ ‐ ‐ Transfers out (170,600) (170,600) ‐(117,670) (57,745) 59,925 Total other financing sources (uses) 1,322,100 1,322,100 ‐(117,670) (57,745) 59,925 Net change in fund balances (113,600) 139,164 252,764 (182,970) (112,233) 70,737 Fund balances at beginning of year 168,000 168,000 ‐363,203 363,203 ‐ Fund balances (deficits) at end of year 54,400$ 307,164$ 252,764$ 180,233$ 250,970$ 70,737$ Reconciliation: Net change in fund balance, budgetary basis 139,164$ (112,233)$ Change in fair value of investments (77)(107) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis 139,087$ (112,340)$ See accompanying independent auditor's report State Court Administration Confiscated Property (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 112 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$167,900$ 261,037$ 93,137$ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐100,000 100,350 350 ‐ ‐‐‐‐ ‐ 3,500 8,680 5,180 1,500 12,261 10,761 ‐ ‐‐‐‐ ‐ 17,000 ‐(17,000) ‐‐ ‐ 20,500 8,680 (11,820) 269,400 373,648 104,248 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐441,840 247,764 194,076 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 700 13 687 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐26,500 23,372 3,128 700 13 687 468,340 271,136 197,204 19,800 8,667 (11,133) (198,940) 102,512 301,452 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 19,800 8,667 (11,133) (198,940) 102,512 301,452 833,400 833,400 ‐1,196,740 1,196,740 ‐ 853,200$ 842,067$ (11,133)$ 997,800$ 1,299,252$ 301,452$ 8,667$ 102,512$ (317)(426) ‐‐ ‐‐ ‐‐ ‐‐ 8,350$ 102,086$ GAC Land Sales, Roads and Canals Utility Fee (Budgetary Basis)(Budgetary Basis) 113 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ 4,334$ 4,334$ ‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental 14,700 14,700 ‐‐ ‐ ‐ Charges for services ‐ 570 570 750,000 863,982 113,982 Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 163,700 313,900 150,200 3,800 10,697 6,897 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 27,200 78,476 51,276 ‐ ‐ ‐ Total revenues 205,600 411,980 206,380 753,800 874,679 120,879 Expenditures: Current: General government ‐ ‐‐788,992 763,972 25,020 Public safety ‐ ‐‐57,300 43,205 14,095 Physical environment 769,336 580,258 189,078 ‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐14,752 7,001 7,751 Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 568,811 430,636 138,175 98,008 20,404 77,604 Total expenditures 1,338,147 1,010,894 327,253 959,052 834,582 124,470 Excess (deficit) of revenues over (under) expenditures (1,132,547) (598,914) 533,633 (205,252) 40,097 245,349 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 585,100 564,980 (20,120) ‐ ‐ ‐ Transfers out (514,082) (500,007) 14,075 ‐ ‐ ‐ Total other financing sources (uses) 71,018 64,973 (6,045) ‐ ‐ ‐ Net change in fund balances (1,061,529) (533,941) 527,588 (205,252) 40,097 245,349 Fund balances at beginning of year 33,425,408 33,425,408 ‐822,052 822,052 ‐ Fund balances (deficits) at end of year 32,363,879$ 32,891,467$ 527,588$ 616,800$ 862,149$ 245,349$ Reconciliation: Net change in fund balance, budgetary basis (533,941)$ 40,097$ Change in fair value of investments (11,490) (373) Ad valorem refunds not budgeted (22)‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis (545,453)$ 39,724$ See accompanying independent auditor's report Conservation Collier Court Information Technology (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 114 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ ‐ ‐‐‐‐ ‐ 219,000 310,321 91,321 ‐‐ ‐ 6,572,264 6,263,767 (308,497) 28,000 20,778 (7,222) ‐ ‐‐‐‐ ‐ 4,400 12,146 7,746 ‐1,164 1,164 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,795,664 6,586,234 (209,430) 28,000 21,942 (6,058) 6,795,664 6,586,234 209,430 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐52,550 16,432 36,118 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐1,450 1,372 78 6,795,664 6,586,234 209,430 54,000 17,804 36,196 ‐ ‐‐(26,000) 4,138 30,138 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐(26,000) 4,138 30,138 ‐ ‐‐89,900 89,900 ‐ ‐$ ‐$‐$63,900$ 94,038$ 30,138$ ‐$4,138$ ‐(42) ‐‐ ‐‐ ‐‐ ‐‐ ‐$4,096$ University Extension Court Services (Budgetary Basis) 115 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐‐ ‐ ‐ Fines and forfeitures 945,000 900,299 (44,701) ‐ ‐ ‐ Interest income 20,000 63,328 43,328 ‐ 1,467 1,467 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ ‐‐‐ ‐ ‐ Total revenues 965,000 963,627 (1,373) ‐ 1,467 1,467 Expenditures: Current: General government 756,430 428,322 328,108 ‐ ‐ ‐ Public safety ‐ ‐‐‐ ‐ ‐ Physical environment ‐ ‐‐‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐131,000 ‐ 131,000 Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 2,393,059 849,331 1,543,728 ‐ ‐ ‐ Total expenditures 3,149,489 1,277,653 1,871,836 131,000 ‐ 131,000 Excess (deficit) of revenues over (under) expenditures (2,184,489) (314,026) 1,870,463 (131,000) 1,467 132,467 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in ‐ ‐‐‐ ‐ ‐ Transfers out ‐ ‐‐‐ ‐ ‐ Total other financing sources (uses)‐ ‐‐‐ ‐ ‐ Net change in fund balances (2,184,489) (314,026) 1,870,463 (131,000) 1,467 132,467 Fund balances at beginning of year 6,696,389 6,696,389 ‐131,000 131,000 ‐ Fund balances (deficits) at end of year 4,511,900$ 6,382,363$ 1,870,463$ ‐$ 132,467$ 132,467$ Reconciliation: Net change in fund balance, budgetary basis (314,026)$ 1,467$ Change in fair value of investments (2,356) (53) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis (316,382)$ 1,414$ See accompanying independent auditor's report Court Facilities Fee Affordable Housing (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 116 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ ‐ ‐‐‐‐ ‐ 19,250 19,250 ‐‐‐ ‐ 1,405,000 1,500,055 95,055 90,000 91,106 1,106 ‐ ‐‐60,000 56,756 (3,244) 6,900 11,159 4,259 10,400 16,495 6,095 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,431,150 1,530,464 99,314 160,400 164,357 3,957 2,594,650 1,611,974 982,676 ‐‐ ‐ ‐ ‐‐538,024 186,568 351,456 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,128,700 2,423 1,126,277 11,976 11,819 157 3,723,350 1,614,397 2,108,953 550,000 198,387 351,613 (2,292,200) (83,933) 2,208,267 (389,600) (34,030) 355,570 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐(199,299) (138,141) 61,158 ‐ ‐‐(199,299) (138,141) 61,158 (2,292,200) (83,933) 2,208,267 (588,899) (172,171) 416,728 4,479,529 4,479,529 ‐1,819,065 1,819,065 ‐ 2,187,329$ 4,395,596$ 2,208,267$ 1,230,166$ 1,646,894$ 416,728$ (83,933)$ (172,171)$ ‐(607) ‐‐ ‐‐ ‐‐ ‐500,035 (83,933)$ 327,257$ Other Public Safety Revenue Funds Other Court Special Revenue Funds (Budgetary Basis) 117 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees 8,400 7,894 (506)‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services 317,100 293,189 (23,911) ‐ ‐ ‐ Fines and forfeitures 81,000 80,539 (461)‐ ‐ ‐ Interest income 9,600 26,337 16,737 8,600 15,939 7,339 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 104,700 159,021 54,321 ‐ 250 250 Total revenues 520,800 566,980 46,180 8,600 16,189 7,589 Expenditures: Current: General government 240,300 179,378 60,922 ‐ ‐ ‐ Public safety 516,000 130,600 385,400 ‐ ‐ ‐ Physical environment ‐ ‐‐41,904 9,093 32,811 Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services 183,600 172,472 11,128 ‐ ‐ ‐ Culture and recreation 121,150 77,695 43,455 ‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 1,641,158 1,607,210 33,948 2,996 2,996 ‐ Total expenditures 2,702,208 2,167,355 534,853 44,900 12,089 32,811 Excess (deficit) of revenues over (under) expenditures (2,181,408) (1,600,375) 581,033 (36,300) 4,100 40,400 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 86,000 86,000 ‐‐ ‐ ‐ Transfers out ‐ ‐‐‐ ‐ ‐ Total other financing sources (uses) 86,000 86,000 ‐‐ ‐ ‐ Net change in fund balances (2,095,408) (1,514,375) 581,033 (36,300) 4,100 40,400 Fund balances at beginning of year 2,587,708 2,587,708 ‐1,709,000 1,709,000 ‐ Fund balances (deficits) at end of year 492,300$ 1,073,333$ 581,033$ 1,672,700$ 1,713,100$ 40,400$ Reconciliation: Net change in fund balance, budgetary basis (1,514,375)$ 4,100$ Change in fair value of investments (1,031) (585) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis (1,515,406)$ 3,515$ See accompanying independent auditor's report Other Special Revenue Funds Resource Recovery Park Endowment (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 118 Budget Actual Variance Budget Actual Variance 70,600$ 68,126$ (2,474)$ ‐$84$ 84$ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ 1,189 1,189 500 2 (498) ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 70,600 69,315 (1,285) 500 86 (414) ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 71,000 67,664 3,336 ‐‐ ‐ ‐ ‐‐‐‐ ‐ 71,000 67,664 3,336 ‐‐ ‐ (400) 1,651 2,051 500 86 (414) ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ 630 630 ‐‐ ‐ (4,400) (2,030) 2,370 (84,900) (64,980) 19,920 (4,400) (1,400) 3,000 (84,900) (64,980) 19,920 (4,800) 251 5,051 (84,400) (64,894) 19,506 105,900 105,900 ‐84,600 84,600 ‐ 101,100$ 106,151$ 5,051$ 200$19,706$ 19,506$ 251$(64,894)$ (41)‐ (29)(11) ‐‐ ‐‐ ‐‐ 181$(64,905)$ Radio Road East Limited General Conservation Collier Limited General Obligation Bonds (Budgetary Basis)Obligation Bonds (Budgetary Basis) 119 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$428,600$ 413,620$ (14,980)$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐‐ ‐ ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 3,800 2,361 (1,439) 2,000 7,681 5,681 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ ‐‐‐ ‐ ‐ Total revenues 3,800 2,361 (1,439) 430,600 421,301 (9,299) Expenditures: Current: General government ‐ ‐‐‐ ‐ ‐ Public safety ‐ ‐‐‐ ‐ ‐ Physical environment ‐ ‐‐‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service 771,000 741,861 29,139 559,300 558,732 568 Capital outlay ‐ ‐‐‐ ‐ ‐ Total expenditures 771,000 741,861 29,139 559,300 558,732 568 Excess (deficit) of revenues over (under) expenditures (767,200) (739,500) 27,700 (128,700) (137,431) (8,731) Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 858,500 858,500 ‐100,000 104,175 4,175 Transfers out ‐ ‐‐(17,500) (13,215) 4,285 Total other financing sources (uses) 858,500 858,500 ‐82,500 90,960 8,460 Net change in fund balances 91,300 119,000 27,700 (46,200) (46,471) (271) Fund balances at beginning of year 792,900 792,900 ‐873,200 873,200 ‐ Fund balances (deficits) at end of year 884,200$ 911,900$ 27,700$ 827,000$ 826,729$ (271)$ Reconciliation: Net change in fund balance, budgetary basis 119,000$ (46,471)$ Change in fair value of investments (4)(265) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis 118,996$ (46,736)$ See accompanying independent auditor's report Community Redevelopment Taxable Note Forest Lakes Limited General (Budgetary Basis)Obligation Bonds (Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 120 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$1,500$ 761$ (739)$ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,300 32,329 26,029 200 9,248 9,048 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,300 32,329 26,029 1,700 10,009 8,309 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 18,331,800 18,307,376 24,424 13,171,000 13,147,131 23,869 ‐ ‐‐‐‐ ‐ 18,331,800 18,307,376 24,424 13,171,000 13,147,131 23,869 (18,325,500) (18,275,047) 50,453 (13,169,300) (13,137,122) 32,178 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 18,066,600 18,066,600 ‐13,142,900 13,142,900 ‐ ‐ ‐‐(1,400) (754) 646 18,066,600 18,066,600 ‐13,141,500 13,142,146 646 (258,900) (208,447) 50,453 (27,800) 5,024 32,824 3,255,900 3,255,900 ‐27,900 27,900 ‐ 2,997,000$ 3,047,453$ 50,453$ 100$32,924$ 32,824$ (208,447)$ 5,024$ (10,747) (457) ‐‐ ‐‐ ‐‐ ‐‐ (219,194)$ 4,567$ Special Obligation Revenue Bonds Other Debt Service (Budgetary Basis)(Budgetary Basis) 121 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐412,000 573,399 161,399 Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐46,180 46,180 ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 25,000 100,458 75,458 6,000 16,853 10,853 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ 28,496 28,496 620,000 350,182 (269,818) Total revenues 25,000 128,954 103,954 1,084,180 986,614 (97,566) Expenditures: Current: General government 2,580,143 1,409,617 1,170,526 ‐ ‐ ‐ Public safety 753,891 757,116 (3,225) ‐ ‐ ‐ Physical environment 89,467 46,335 43,132 ‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ 30 (30)1,248,252 480,663 767,589 Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 15,301,368 8,322,769 6,978,599 1,918,844 1,135,534 783,310 Total expenditures 18,724,869 10,535,867 8,189,002 3,167,096 1,616,197 1,550,899 Excess (deficit) of revenues over (under) expenditures (18,699,869) (10,406,913) 8,292,956 (2,082,916) (629,583) 1,453,333 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ 25,000 25,000 28,939 ‐ (28,939) Transfers in 17,199,800 17,199,800 ‐1,570,000 1,605,437 35,437 Transfers out (8,622,936) (7,143,636) 1,479,300 (332,000) (331,285) 715 Total other financing sources (uses) 8,576,864 10,081,164 1,504,300 1,266,939 1,274,152 7,213 Net change in fund balances (10,123,005) (325,749) 9,797,256 (815,977) 644,569 1,460,546 Fund balances at beginning of year 10,708,105 10,708,105 ‐1,215,876 1,215,876 ‐ Fund balances (deficits) at end of year 585,100$ 10,382,356$ 9,797,256$ 399,899$ 1,860,445$ 1,460,546$ Reconciliation: Net change in fund balance, budgetary basis (325,749)$ 644,569$ Change in fair value of investments (2,898) (487) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis (328,647)$ 644,082$ See accompanying independent auditor's report County‐Wide Capital Improvements Parks Improvements (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 122 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ 750,000 1,002,395 252,395 1,181,200 1,798,860 617,660 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,000 12,918 11,918 2,000 16,378 14,378 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 751,000 1,015,313 264,313 1,183,200 1,815,238 632,038 ‐ ‐‐‐‐ ‐ ‐ ‐‐389,177 472 388,705 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 134,162 17,947 116,215 ‐‐ ‐ ‐ ‐‐‐‐ ‐ 390,118 367,486 22,632 ‐‐ ‐ 524,280 385,433 138,847 389,177 472 388,705 226,720 629,880 403,160 794,023 1,814,766 1,020,743 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 585,000 585,000 ‐488,800 488,800 ‐ (1,159,300) (1,159,300) ‐(1,877,400) (1,877,400) ‐ (574,300) (574,300) ‐(1,388,600) (1,388,600) ‐ (347,580) 55,580 403,160 (594,577) 426,166 1,020,743 856,380 856,380 ‐‐‐ ‐ 508,800$ 911,960$ 403,160$ (594,577)$ 426,166$ 1,020,743$ 55,580$ 426,166$ (391)(480) ‐‐ ‐‐ ‐‐ ‐‐ 55,189$ 425,686$ County‐Wide Library Impact Fee Correctional Facilities Impact Fees (Budgetary Basis)(Budgetary Basis) 123 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees 279,000 451,547 172,547 ‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐‐ ‐ ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 500 10,861 10,361 45,000 128,038 83,038 Special assessments ‐ ‐‐400,700 385,756 (14,944) Miscellaneous ‐ ‐‐‐ 18 18 Total revenues 279,500 462,408 182,908 445,700 513,812 68,112 Expenditures: Current: General government ‐ ‐‐‐ ‐ ‐ Public safety 74,238 15,479 58,759 ‐ ‐ ‐ Physical environment ‐ ‐‐2,625,579 663,139 1,962,440 Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 1,617,021 1,432,835 184,186 13,082,213 4,424,258 8,657,955 Total expenditures 1,691,259 1,448,314 242,945 15,707,792 5,087,397 10,620,395 Excess (deficit) of revenues over (under) expenditures (1,411,759) (985,906) 425,853 (15,262,092) (4,573,585) 10,688,507 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 150,700 150,700 ‐5,561,400 5,564,403 3,003 Transfers out (448,000) (448,000) ‐(3,243,114) (2,262,519) 980,595 Total other financing sources (uses) (297,300) (297,300) ‐2,318,286 3,301,884 983,598 Net change in fund balances (1,709,059) (1,283,206) 425,853 (12,943,806) (1,271,701) 11,672,105 Fund balances at beginning of year 1,968,359 1,968,359 ‐13,293,906 13,293,906 ‐ Fund balances (deficits) at end of year 259,300$ 685,153$ 425,853$ 350,100$ 12,022,205$ 11,672,105$ Reconciliation: Net change in fund balance, budgetary basis (1,283,206)$ (1,271,701)$ Change in fair value of investments (530)(4,591) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐‐ Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis (1,283,736)$ (1,276,292)$ See accompanying independent auditor's report Emergency Medical Services Impact Fees Water Management (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 124 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ 6,700,000 9,109,610 2,409,610 9,200,000 18,632,706 9,432,706 ‐ ‐‐‐188,009 188,009 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 31,900 194,440 162,540 210,000 569,456 359,456 ‐ ‐‐‐‐ ‐ ‐ 4,752 4,752 ‐‐ ‐ 6,731,900 9,308,802 2,576,902 9,410,000 19,390,171 9,980,171 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐6,233,697 289,148 5,944,549 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 313,770 45,023 268,747 ‐‐ ‐ ‐ ‐‐‐‐ ‐ 16,268,194 1,019,633 15,248,561 45,172,861 12,461,119 32,711,742 16,581,964 1,064,656 15,517,308 51,406,558 12,750,267 38,656,291 (9,850,064) 8,244,146 18,094,210 (41,996,558) 6,639,904 48,636,462 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ (2,935,700) (2,935,700) ‐(7,537,666) (2,970,003) 4,567,663 (2,935,700) (2,935,700) ‐(7,537,666) (2,970,003) 4,567,663 (12,785,764) 5,308,446 18,094,210 (49,534,224) 3,669,901 53,204,125 16,984,808 16,984,808 ‐52,030,415 52,030,415 ‐ 4,199,044$ 22,293,254$ 18,094,210$ 2,496,191$ 55,700,316$ 53,204,125$ 5,308,446$ 3,669,901$ (6,143) (19,306) ‐‐ ‐‐ ‐‐ ‐‐ 5,302,303$ 3,650,595$ Parks Impact Districts Road Impact Districts (Budgetary Basis)(Budgetary Basis) 125 Budget Actual Variance Budget Actual Variance Revenues: Taxes 12,793,300$ 14,299,859$ 1,506,559$ ‐$ ‐$ ‐$ Licenses, permits and impact fees 30,100 30,100 ‐1,890,000 2,955,204 1,065,204 Intergovernmental 5,706,700 6,178,381 471,681 ‐ ‐ ‐ Charges for services 2,874,393 3,224,089 349,696 ‐ ‐ ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 129,500 362,278 232,778 8,400 49,746 41,346 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 1,357,423 371,854 (985,569) ‐ ‐ ‐ Total revenues 22,891,416 24,466,561 1,575,145 1,898,400 3,004,950 1,106,550 Expenditures: Current: General government 75,000 ‐75,000 200,325 173,306 27,019 Public safety ‐ ‐‐‐ ‐ ‐ Physical environment ‐ ‐‐‐ ‐ ‐ Transportation 8,643,533 8,443,803 199,730 ‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐5,500 5,270 230 Capital outlay 47,791,431 4,599,996 43,191,435 1,994,574 1,832,630 161,944 Total expenditures 56,509,964 13,043,799 43,466,165 2,200,399 2,011,206 189,193 Excess (deficit) of revenues over (under) expenditures (33,618,548) 11,422,762 45,041,310 (301,999) 993,744 1,295,743 Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ 2,064 2,064 ‐ ‐ ‐ Transfers in 19,857,000 20,457,000 600,000 4,065,600 4,065,600 ‐ Transfers out (19,638,181) (19,174,677) 463,504 (6,299,400) (6,299,400) ‐ Total other financing sources (uses) 218,819 1,284,387 1,065,568 (2,233,800) (2,233,800) ‐ Net change in fund balances (33,399,729) 12,707,149 46,106,878 (2,535,799) (1,240,056) 1,295,743 Fund balances at beginning of year 35,763,409 35,763,409 ‐5,397,999 5,397,999 ‐ Fund balances (deficits) at end of year 2,363,680$ 48,470,558$ 46,106,878$ 2,862,200$ 4,157,943$ 1,295,743$ Reconciliation: Net change in fund balance, budgetary basis 12,707,149$ (1,240,056)$ Change in fair value of investments (11,677) (1,743) Ad valorem refunds not budgeted ‐‐ Change in inventory ‐‐ Advances budgeted as transfers ‐1,130,000 Unbudgeted funds ‐‐ Net change in fund balance, GAAP basis 12,695,472$ (111,799)$ See accompanying independent auditor's report (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Road Construction Government Facilities Impact Fees 126 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ 1,030,600 1,647,065 616,465 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 2,300 42,013 39,713 14,000 28,162 14,162 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,032,900 1,689,078 656,178 14,000 28,162 14,162 ‐ ‐‐‐‐ ‐ 144,461 34,326 110,135 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐10,940 17,856 (6,916) ‐ ‐‐‐‐ ‐ 3,070,253 1,406,113 1,664,140 2,987,871 ‐ 2,987,871 3,214,714 1,440,439 1,774,275 2,998,811 17,856 2,980,955 (2,181,814) 248,639 2,430,453 (2,984,811) 10,306 2,995,117 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,616,400 1,616,400 ‐‐‐ ‐ (1,872,700) (1,872,700) ‐‐‐ ‐ (256,300) (256,300) ‐‐‐ ‐ (2,438,114) (7,661) 2,430,453 (2,984,811) 10,306 2,995,117 3,135,314 3,135,314 ‐2,985,511 2,985,511 ‐ 697,200$ 3,127,653$ 2,430,453$ 700$2,995,817$ 2,995,117$ (7,661)$ 10,306$ (1,373) (1,023) ‐‐ ‐‐ ‐‐ ‐‐ (9,034)$ 9,283$ Law Enforcement Impact Fees All Terrain Vehicle Park (Budgetary Basis)(Budgetary Basis) 127 Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$ Licenses, permits and impact fees 2,000 5,563 3,563 Intergovernmental ‐ ‐‐ Charges for services ‐ ‐‐ Fines and forfeitures ‐ ‐‐ Interest income 3,400 13,214 9,814 Special assessments 133,500 134,811 1,311 Miscellaneous ‐ ‐‐ Total revenues 138,900 153,588 14,688 Expenditures: Current: General government ‐ ‐‐ Public safety 9,552 ‐9,552 Physical environment 1,148,963 1,033,431 115,532 Transportation 375,737 44,742 330,995 Economic environment ‐ ‐‐ Human services ‐ ‐‐ Culture and recreation 482,676 253,901 228,775 Debt service ‐ ‐‐ Capital outlay ‐ ‐‐ Total expenditures 2,016,928 1,332,074 684,854 Excess (deficit) of revenues over (under) expenditures (1,878,028) (1,178,486) 699,542 Other financing sources (uses): Sale of capital assets ‐ ‐‐ Insurance proceeds ‐ ‐‐ Transfers in 1,557,600 1,558,603 1,003 Transfers out (6,300) (4,258) 2,042 Total other financing sources (uses) 1,551,300 1,554,345 3,045 Net change in fund balances (326,728) 375,859 702,587 Fund balances at beginning of year 993,828 993,828 ‐ Fund balances (deficits) at end of year 667,100$ 1,369,687$ 702,587$ Reconciliation: Net change in fund balance, budgetary basis 375,859$ Change in fair value of investments (404) Ad valorem refunds not budgeted ‐ Change in inventory ‐ Advances budgeted as transfers ‐ Unbudgeted funds ‐ Net change in fund balance, GAAP basis 375,455$ See accompanying independent auditor's report Other Capital Projects (Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 128 Nonmajor Enterprise Funds AIRPORT AUTHORITY – To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT – To account for the provision of public transportation throughout the County. Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Current assets: Cash and investments 1,424,403$ 886,347$ 2,310,750$ Receivables: Trade, net 18,798 19,506 38,304 Interest 1,537 3,247 4,784 Due from other funds 7,472 31,823 39,295 Due from other governments ‐ 1,048 1,048 Inventory 71,697 ‐ 71,697 Restricted assets: Cash and investments 128,228 229,603 357,831 Due from other governments 1,049,430 3,218,132 4,267,562 Total current assets 2,701,565 4,389,706 7,091,271 Noncurrent assets: Capital assets: Land and nondepreciable capital assets 1,816,442 7,406,787 9,223,229 Depreciable capital assets, net 31,609,886 16,942,607 48,552,493 Total noncurrent assets 33,426,328 24,349,394 57,775,722 Total assets 36,127,893 28,739,100 64,866,993 Deferred outflows of resources related to pensions 225,879 66,584 292,463 LIABILITIES Current liabilities: Accounts payable 73,619 385,622 459,241 Wages payable 26,686 6,063 32,749 Due to other funds 411,129 180,673 591,802 Due to other governments 3,483 ‐ 3,483 Unearned revenues 52,983 ‐ 52,983 Compensated absences 27,659 7,203 34,862 Net pension liability 8,869 1,774 10,643 Liabilities payable from restricted assets: Accounts payable 489,000 1,389,033 1,878,033 Wages payable ‐ 2,039 2,039 Retainage payable ‐ 127,662 127,662 Due to other governments ‐ 38,011 38,011 Refundable deposits 9,826 ‐ 9,826 Unearned revenue 20,602 ‐ 20,602 Total current liabilities 1,123,856 2,138,080 3,261,936 Noncurrent liabilities: Compensated absences 6,915 1,800 8,715 Net pension liability 617,361 167,386 784,747 Total noncurrent liabilities 624,276 169,186 793,462 Total liabilities 1,748,132 2,307,266 4,055,398 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 4,860 1,531 6,391 NET POSITION Net investment in capital assets 32,921,617 23,519,554 56,441,171 Restricted for grants and other purposes 1,147,230 2,720,830 3,868,060 Unrestricted 531,933 256,503 788,436 Total net position 34,600,780$ 26,496,887$ 61,097,667$ See accompanying independent auditor's report DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2016 ASSETS 130 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Operating revenues: Charges for services 3,054,600$ 1,183,518$ 4,238,118$ Miscellaneous 18,236 41,129 59,365 Total operating revenues 3,072,836 1,224,647 4,297,483 Operating expenses: Personal services 976,540 309,310 1,285,850 Operating 1,985,494 9,258,054 11,243,548 Depreciation 1,443,398 1,744,440 3,187,838 Total operating expenditures 4,405,432 11,311,804 15,717,236 Operating loss (1,332,596) (10,087,157) (11,419,753) Non‐operating revenues: Operating grants and contributions ‐4,256,647 4,256,647 Interest income 12,216 11,467 23,683 Gain on disposal of capital assets 7,115 12,996 20,111 Total non‐operating revenues 19,331 4,281,110 4,300,441 Loss before contributions and transfers (1,313,265) (5,806,047) (7,119,312) Capital grants and contributions 529,329 2,295,357 2,824,686 Transfers in 366,491 4,140,662 4,507,153 Transfers out (34,821)‐(34,821) Total transfers and contributions 860,999 6,436,019 7,297,018 Changes in net position (452,266) 629,972 177,706 Net position ‐ beginning 35,053,046 25,866,915 60,919,961 Net position ‐ ending 34,600,780$ 26,496,887$ 61,097,667$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 131 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services 3,075,075$ 1,211,111$ 4,286,186$ Cash received from refundable deposits 2,500 ‐ 2,500 Cash payments for goods and services (1,620,384) (6,482,539) (8,102,923) Cash payments to employees (962,742) (308,332) (1,271,074) Cash payments for interfund services (349,595) (2,266,494) (2,616,089) Cash payments on refundable deposits (2,121) ‐ (2,121) Net cash provided by (used for) operating activities 142,733 (7,846,254) (7,703,521) Cash flows from non‐capital financing activities: Cash received from operating grants ‐3,758,262 3,758,262 Cash transfers from other funds 754,561 6,526,688 7,281,249 Cash transfers to other funds (991,198) (2,269,285) (3,260,483) Net cash provided by (used for) non‐capital financing activities (236,637) 8,015,665 7,779,028 Cash flows from capital and related financing activities: Proceeds from disposal of capital assets 7,266 19,271 26,537 Proceeds from capital grants 806,185 1,708,525 2,514,710 Payments for capital acquisitions (247,533) (2,503,741) (2,751,274) Net cash provided by (used for) capital and related financing activities 565,918 (775,945) (210,027) Cash flows from investing activities: Interest on investments 13,143 12,513 25,656 Net cash provided by investing activities 13,143 12,513 25,656 Net increase (decrease) in cash and investments 485,157 (594,021) (108,864) Cash and investments, October 1, 2015 1,067,474 1,709,971 2,777,445 Cash and investments, September 30, 2016 1,552,631$ 1,115,950$ 2,668,581$ Cash and investments ‐ restricted 1,424,403$ 886,347$ 2,310,750$ Cash and investments ‐ restricted 128,228 229,603 357,831 Cash and investments, September 30, 2016 1,552,631$ 1,115,950$ 2,668,581$ Operating loss (1,332,596)$ (10,087,157)$ (11,419,753)$ Adjustments to reconcile operating loss to net cash provided by (used for) operating activities: Depreciation expense 1,443,398 1,744,440 3,187,838 Net changes in assets and liabilities: Trade receivable 4,503 (6,470) (1,967) Due from other funds ‐1,377 1,377 Due from other governments ‐(776) (776) Inventory 19,097 ‐ 19,097 Prepaid costs ‐101,375 101,375 Accounts payable (5,560) 406,374 400,814 Wages payable (16,797) (9,885) (26,682) Due to other funds ‐(6,395) (6,395) Due to other governments 93 ‐ 93 Compensated absences (860)3,505 2,645 Refundable deposits (5,927) ‐ (5,927) Unearned revenue 5,927 ‐ 5,927 Net pension liability and related deferred outflows/inflows 31,455 7,358 38,813 Total adjustments 1,475,329 2,240,903 3,716,232 Net cash provided by (used for) operating activities 142,733$ (7,846,254)$ (7,703,521)$ Non‐cash investing, capital and financing activities: Change in fair value of investments 334$(289)$ 45$ Contributed capital assets ‐681,603 681,603 Change in capital related grant receivable 276,856 94,773 371,629 Capital related accounts payable 490,459 702,178 1,192,637 See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 132 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. MOTOR POOL CAPITAL RECOVERY – To account for the accumulation of resources for the replacement of vehicles and heavy equipment for County governmental activities. INFORMATION TECHNOLOGY – To account for the costs of operating the County data processing facility and telephone communication system. Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Current assets: Cash and investments 40,656,352$ 11,683,121$ 1,017,171$ 2,294,727$ 2,416,916$ 58,068,287$ Receivables: Trade, net 4,780 ‐‐‐‐ 4,780 Interest 65,753 11,531 851 3,645 3,079 84,859 Due from other funds 26,790 2,000 40,940 ‐‐ 69,730 Due from other governments 3,005 ‐20,768 ‐‐ 23,773 Deposits 51,108 ‐‐‐‐ 51,108 Inventory ‐‐367,556 ‐‐ 367,556 Prepaid costs ‐‐‐‐43,712 43,712 Total current assets 40,807,788 11,696,652 1,447,286 2,298,372 2,463,707 58,713,805 Noncurrent assets: Capital assets: Depreciable capital assets, net 234,770 ‐10,361,204 2,626,987 3,211,894 16,434,855 Total noncurrent assets 234,770 ‐10,361,204 2,626,987 3,211,894 16,434,855 Total assets 41,042,558 11,696,652 11,808,490 4,925,359 5,675,601 75,148,660 Deferred outflows of resources related to pensions 307,967 ‐540,421 ‐990,488 1,838,876 LIABILITIES Current liabilities: Accounts payable 314,822 ‐293,368 135,689 466,893 1,210,772 Wages payable 39,658 ‐72,981 ‐127,119 239,758 Due to other funds ‐3,554,292 ‐‐‐ 3,554,292 Due to other governments ‐‐14 ‐‐ 14 Unearned revenues 10,473 ‐‐‐‐ 10,473 Self‐insurance claims payable 3,904,371 2,379,000 ‐‐‐ 6,283,371 Compensated absences 92,395 ‐124,973 ‐198,964 416,332 Net pension liability 8,278 ‐16,556 ‐26,608 51,442 Total current liabilities 4,369,997 5,933,292 507,892 135,689 819,584 11,766,454 Noncurrent liabilities: Self‐insurance claims payable 1,618,799 ‐‐‐‐ 1,618,799 Compensated absences 23,099 31,244 49,741 104,084 Net OPEB Obligation 1,262,229 2,612,863 ‐‐‐ 3,875,092 Net pension liability 770,937 ‐1,384,279 ‐2,356,570 4,511,786 Total noncurrent liabilities 3,675,064 2,612,863 1,415,523 ‐2,406,311 10,109,761 Total liabilities 8,045,061 8,546,155 1,923,415 135,689 3,225,895 21,876,215 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 7,059 ‐12,157 ‐22,709 41,925 NET POSITION Net investment in capital assets 234,770 ‐10,361,204 2,491,298 3,211,894 16,299,166 Unrestricted 33,063,635 3,150,497 52,135 2,298,372 205,591 38,770,230 Total net position 33,298,405$ 3,150,497$ 10,413,339$ 4,789,670$ 3,417,485$ 55,069,396$ See accompanying independent auditor's report DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2016 ASSETS 134 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services 46,608,188$ 20,046,310$ 7,487,186$ 1,670,800$ 6,744,183$ 82,556,667$ Miscellaneous 246,509 ‐29,840 19,404 703 296,456 Total operating revenues 46,854,697 20,046,310 7,517,026 1,690,204 6,744,886 82,853,123 Operating expenses: Personal services 1,327,602 ‐2,479,887 ‐4,097,828 7,905,317 Operating 43,464,013 22,725,776 5,005,986 ‐2,345,240 73,541,015 Depreciation 31,919 ‐587,415 300,893 1,269,067 2,189,294 Total operating expenditures 44,823,534 22,725,776 8,073,288 300,893 7,712,135 83,635,626 Operating income (loss)2,031,163 (2,679,466) (556,262) 1,389,311 (967,249) (782,503) Non‐operating revenues: Interest income 365,712 37,494 6,525 26,092 15,733 451,556 Insurance reimbursement 570,536 ‐9,014 ‐‐ 579,550 Gain on disposal of capital assets 4,704 ‐26,296 327,267 ‐ 358,267 Total non‐operating revenues 940,952 37,494 41,835 353,359 15,733 1,389,373 Income (loss) before contributions and transfers 2,972,115 (2,641,972) (514,427) 1,742,670 (951,516) 606,870 Transfers in ‐‐‐3,047,000 51,000 3,098,000 Transfers out (1,276,600) ‐‐‐‐ (1,276,600) Total transfers and contributions (1,276,600) ‐‐3,047,000 51,000 1,821,400 Changes in net position 1,695,515 (2,641,972) (514,427) 4,789,670 (900,516) 2,428,270 Net position ‐ beginning 31,602,890 5,792,469 10,927,766 ‐4,318,001 52,641,126 Net position ‐ ending 33,298,405$ 3,150,497$ 10,413,339$ 4,789,670$ 3,417,485$ 55,069,396$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 135 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services 39,102,196$ 22,700,000$ 7,297,011$ 1,690,204$ 6,744,886$ 77,534,297$ Cash received from employees for services 7,129,276 ‐‐‐ ‐ 7,129,276 Cash received from other governments for services ‐‐246,199 ‐ ‐ 246,199 Cash received from retirees for services 604,340 900,602 ‐‐ ‐ 1,504,942 Cash payments on behalf of retirees (1,071,796) ‐‐‐ ‐ (1,071,796) Cash payments for goods and services (40,692,619) (21,845,444) (4,805,220) ‐ (2,132,790) (69,476,073) Cash payments to employees (1,326,011) ‐(2,445,798) ‐ (4,037,819) (7,809,628) Cash payments for interfund services (452,196) ‐(257,422) ‐ (38,167) (747,785) Net cash provided by operating activities 3,293,190 1,755,158 34,770 1,690,204 536,110 7,309,432 Cash flows from non‐capital financing activities: Cash transfers from other funds ‐‐‐3,047,000 51,000 3,098,000 Cash transfers to other funds (1,276,600) ‐‐‐ ‐ (1,276,600) Net cash provided by (used for) non‐capital financing activities (1,276,600) ‐‐3,047,000 51,000 1,821,400 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 1,804,555 ‐9,014 ‐ ‐ 1,813,569 Proceeds from disposal of capital assets 4,704 ‐27,026 327,267 ‐ 358,997 Payments for capital acquisitions (13,005) ‐(154,139) (2,792,191) (302,420) (3,261,755) Net cash provided by (used for) capital and related financing activities 1,796,254 ‐(118,099) (2,464,924) (302,420) (1,089,189) Cash flows from investing activities: Interest on investments 402,106 25,963 7,982 22,447 18,781 477,279 Net cash provided by investing activities 402,106 25,963 7,982 22,447 18,781 477,279 Net increase (decrease) in cash and investments 4,214,950 1,781,121 (75,347) 2,294,727 303,471 8,518,922 Cash and investments, October 1, 2015 36,441,402 9,902,000 1,092,518 ‐ 2,113,445 49,549,365 Cash and investments, September 30, 2016 40,656,352$ 11,683,121$ 1,017,171$ 2,294,727$ 2,416,916$ 58,068,287$ Cash and investments 40,656,352$ 11,683,121$ 1,017,171$ 2,294,727$ 2,416,916$ 58,068,287$ Cash and investments ‐ restricted ‐‐‐‐ ‐ ‐ Cash and investments, September 30, 2016 40,656,352$ 11,683,121$ 1,017,171$ 2,294,727$ 2,416,916$ 58,068,287$ Operating income (loss)2,031,163$ (2,679,466)$ (556,262)$ 1,389,311$ (967,249)$ (782,503)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 31,919 ‐587,415 300,893 1,269,067 2,189,294 Net changes in assets and liabilities: Trade receivable 2,436 45,012 3,697 ‐ ‐ 51,145 Due from other funds (14,186) ‐18,414 ‐ ‐ 4,228 Due from other governments ‐‐4,073 ‐ ‐ 4,073 Inventory 300 ‐9,357 ‐ 12,272 21,929 Prepaid costs ‐‐‐‐ (43,712) (43,712) Accounts payable 77,078 ‐(45,756) ‐ 205,723 237,045 Wages payable (27,637) ‐(56,600) ‐ (69,184) (153,421) Due to other funds ‐3,735,848 ‐‐ ‐ 3,735,848 Due to other governments (10,552) ‐(20,257) ‐ ‐ (30,809) Compensated absences (9,409) ‐18,542 ‐ 9,582 18,715 Unearned revenue 3,529 ‐‐‐ ‐ 3,529 Self‐insurance claims payable 733,736 209,000 ‐‐ ‐ 942,736 Net OPEB obligation 436,176 444,764 ‐‐ ‐ 880,940 Net pension liability and related deferred outflows/inflows 38,637 ‐72,147 ‐ 119,611 230,395 Total adjustments 1,262,027 4,434,624 591,032 300,893 1,503,359 8,091,935 Net cash provided by operating activities 3,293,190$ 1,755,158$ 34,770$ 1,690,204$ 536,110$ 7,309,432$ Non‐cash investing, capital and financing activities: Change in fair value of investments (13,073)$ 45,191$ 288$ (1,014)$ (643)$ 30,749$ Capital related accounts payable ‐‐‐135,689 ‐ 135,689 See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 136 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. Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total Cash and investments 25,203,051$ 628,987$ 6,657,055$ 6,002,530$ 164,351$ 38,655,974$ Receivables: Interest ‐‐ ‐ 9,068 325 9,393 Other ‐1,618 27,270 ‐‐ 28,888 Total assets 25,203,051$ 630,605$ 6,684,325$ 6,011,598$ 164,676$ 38,694,255$ LIABILITIES Due to other governments 1,094,183$ 61,919$ 6,631,195$ ‐$‐$ 7,787,297$ Due to individuals ‐568,686 53,130 ‐‐ 621,816 Refundable deposits 24,108,868 ‐‐6,011,598 ‐ 30,120,466 Due to special assessment holders ‐‐‐‐164,676 164,676 Total liabilities 25,203,051$ 630,605$ 6,684,325$ 6,011,598$ 164,676$ 38,694,255$ See accompanying independent auditor's report ASSETS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2016 138 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash and investments 26,821,917$ 168,669,558$ 170,288,424$ 25,203,051$ Total assets 26,821,917$ 168,669,558$ 170,288,424$ 25,203,051$ Liabilities: Due to other governments 1,292,816$ 9,694,394$ 9,893,027$ 1,094,183$ Refundable deposits 25,529,101 158,975,164 160,395,397 24,108,868 Total liabilities 26,821,917$ 168,669,558$ 170,288,424$ 25,203,051$ Sheriff Agency Fund Assets: Cash and investments 566,302$ 628,987$ 566,302$ 628,987$ Receivable: Other 14,388 1,618 14,388 1,618 Total assets 580,690$ 630,605$ 580,690$ 630,605$ Liabilities: Due to other governments 65,223$ 61,919$ 65,223$ 61,919$ Due to individuals 515,467 568,686 515,467 568,686 Total liabilities 580,690$ 630,605$ 580,690$ 630,605$ Tax Collector Agency Fund Assets: Cash and investments 7,152,324$ 937,390,095$ 937,885,364$ 6,657,055$ Receivable: Other 18,820 2,949,859 2,941,409 27,270 Total assets 7,171,144$ 940,339,954$ 940,826,773$ 6,684,325$ Liabilities: Due to other governments 7,144,066$ 1,231,748,699$ 1,232,261,570$ 6,631,195$ Due to individuals 27,078 40,240,199 40,214,147 53,130 Total liabilities 7,171,144$ 1,271,988,898$ 1,272,475,717$ 6,684,325$ Deposits Agency Fund Assets: Cash and investments 5,613,684$ 1,564,523$ 1,175,677$ 6,002,530$ Receivables: Interest 13,959 9,068 13,959 9,068 Total assets 5,627,643$ 1,573,591$ 1,189,636$ 6,011,598$ Liabilities: Refundable deposits 5,627,643$ 1,553,660$ 1,169,705$ 6,011,598$ Total liabilities 5,627,643$ 1,553,660$ 1,169,705$ 6,011,598$ (Continued) COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 139 Balance Balance October 1 Additions Deductions September 30 Assets: Cash and investments 821,652$ 5,994$663,295$ 164,351$ Receivables: Interest 2,281 324 2,280 325 Total assets 823,933$ 6,318$ 665,575$ 164,676$ Liabilities: Due to special assessment holders 823,933$ 3,843$663,100$ 164,676$ Total liabilities 823,933$ 3,843$ 663,100$ 164,676$ Total ‐ All Agency Funds Assets: Cash and investments 40,975,879$ 1,108,259,157$ 1,110,579,062$ 38,655,974$ Receivables: Interest 16,240 9,392 16,239 9,393 Other 33,208 2,951,477 2,955,797 28,888 Total assets 41,025,327$ 1,111,220,026$ 1,113,551,098$ 38,694,255$ Liabilities: Due to other governments 8,502,105$ 1,241,505,012$ 1,242,219,820$ 7,787,297$ Due to individuals 542,545 40,808,885 40,729,614 621,816 Refundable deposits 31,156,744 160,528,824 161,565,102 30,120,466 Due to special assessment holders 823,933 3,843 663,100 164,676 Total liabilities 41,025,327$ 1,442,846,564$ 1,445,177,636$ 38,694,255$ See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Pine Ridge and Naples Production Park Agency Fund 140 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. THIS PAGE INTENTIONALLY LEFT BLANK Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total Cash and investments 21,988$ 89,320$ 123,435$ 57,545$ 292,288$ Total assets 21,988$ 89,320$ 123,435$ 57,545$ 292,288$ NET POSITION Net position ‐ unrestricted 21,988$ 89,320$ 123,435$ 57,545$ 292,288$ Total Net Position 21,988$ 89,320$ 123,435$ 57,545$ 292,288$ See accompanying independent auditor's report ASSETS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS SEPTEMBER 30, 2016 143 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Governmental Expenses Charges for Services Activities Industrial Development Authority 35,555$2,550$(33,005)$ Health Facilities Authority 3,466 50 (3,416) Housing Finance Authority 2,636 75 (2,561) Educational Facilities Authority 12,563 50 (12,513) Total 54,220$2,725$(51,495) General revenues: Interest income 108 Total general revenues 108 Change in net position (51,387) Net position ‐ beginning 343,675 Net position ‐ ending 292,288$ See accompanying independent auditor's report FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Functions/Programs COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS 144 Other Supplemental Information Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. Amount Amount Received Expended in the in the 2016 2016 Source Fiscal Year Fiscal Year British Petroleum: Gulf Seafood and Tourism Promotional Fund 125,000$ 6,454$ Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2016 fiscal year. OTHER SUPPLEMENTAL INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 146 STATISTICAL SECTION (UNAUDITED) Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB 34 for fiscal year 2002. Schedules presenting government‐wide information include information beginning in that fiscal year. Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non‐accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. CONTENTS PAGE FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government’s financial performance and wellbeing have changed over time. Net position by component 148 Change in net position 149 Governmental activities tax revenues by source 152 Fund balances of governmental funds 153 Changes in fund balance of governmental funds 154 REVENUE CAPACITY These schedules contain information to help the reader assess the County’s most significant local revenue source, the Property Tax. Assessed value and estimated actual value of taxable property 156 Property tax rates – All direct and overlapping governments 157 Principal tax payers County‐wide 158 Property tax levies and collections 159 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future. Ratios of outstanding debt by type 160 Legal debt margin information 161 Direct, overlapping and underlying governmental activities debt 161 Pledged‐revenue coverage 162 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place. Demographic and economic statistics 163 Principal employers 164 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial report relates to the services the County provides and the activities it performs. Budgeted full‐time equivalent County employees by function 165 Operating indicators by function 166 Capital Asset statistics by function/program 167 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Governmental Activities: Net investment in capital assets1,225,520$ 1,217,176$ 1,207,751$ 1,198,971$ 1,187,298$ 1,172,121$ 1,169,052$ 1,131,617$ 1,032,553$ 881,941$ Restricted327,968 298,360 223,526 221,501 226,934 253,977 232,571 240,247 295,012 244,746 Unrestricted2,478 13,109 169,633 152,790 147,188 147,080 189,911 192,442 199,031 317,821 Total governmental activities net position1,555,966$ 1,528,645$ 1,600,910$ 1,573,262$ 1,561,420$ 1,573,178$ 1,591,534$ 1,564,306$ 1,526,596$ 1,444,508$ Business‐type Activities: Net investment in capital assets723,000$ 714,239$ 705,065$ 668,160$ 650,684$ 643,777$ 635,702$ 653,320$ 658,865$ 630,015$ Restricted35,760 31,511 29,749 34,379 34,199 38,002 37,795 31,227 30,165 30,746 Unrestricted169,287 165,128 185,420 196,050 194,389 177,939 169,514 149,422 113,761 83,038 Total business‐type activities net position928,047$ 910,878$ 920,234$ 898,589$ 879,272$ 859,718$ 843,011$ 833,969$ 802,791$ 743,799$ Primary Government: Net investment in capital assets1,948,520$ 1,931,415$ 1,912,816$ 1,867,131$ 1,837,982$ 1,815,898$ 1,804,754$ 1,784,937$ 1,691,418$ 1,511,956$ Restricted363,728 329,871 253,275 255,880 261,133 291,979 270,366 271,474 325,177 275,492 Unrestricted171,765 178,237 355,053 348,840 341,577 325,019 359,425 341,864 312,792 400,859 Total primary government net position2,484,013$ 2,439,523$ 2,521,144$ 2,471,851$ 2,440,692$ 2,432,896$ 2,434,545$ 2,398,275$ 2,329,387$ 2,188,307$ Fiscal Year(unaudited)(amounts expressed in thousands)COLLIER COUNTY, FLORIDANET POSITION BY COMPONENT(accrual basis of accounting)LAST TEN FISCAL YEARS148 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007ExpensesGovernmental activities: General government104,188$ 93,644$ 92,176$ 95,941$ 94,227$ 103,045$ 100,483$ 113,906$ 112,720$ 110,814$ Public safety205,347 174,874 177,267 171,210 165,782 173,286 179,276 182,962 183,288 182,821 Transportation70,560 70,296 71,623 69,275 73,000 81,383 76,603 64,601 65,980 54,198 Culture and recreation49,526 45,117 41,630 41,453 42,507 44,205 46,871 45,727 43,435 41,595 Other activities48,256 45,621 39,171 43,067 51,057 39,991 40,937 45,367 49,135 44,500 Interest on long‐term debt12,077 12,912 12,674 16,129 16,412 19,797 19,475 20,492 21,446 21,779 Total governmental activities expenses489,954$ 442,464$ 434,541$ 437,075$ 442,985$ 461,707$ 463,645$ 473,055$ 476,004$ 455,707$ Business‐type activities: Water and Sewer130,792$ 122,858$ 112,643$ 114,041$ 102,642$ 104,333$ 103,272$ 90,042$ 85,503$ 89,908$ Solid Waste39,271 36,411 33,787 32,760 29,618 28,000 27,416 30,774 30,024 32,033 Emergency Medical Services26,529 24,094 23,208 21,545 21,792 22,657 23,073 22,478 22,935 22,026 Airport Authority4,402 4,771 3,764 4,439 4,601 4,458 4,382 3,895 5,082 4,296 Mass Transit11,333 10,416 10,306 10,111 9,925 10,187 9,617 8,974 9,419 7,761 Total business‐type activities expenses212,327 198,550 183,708 182,896 168,578 169,635 167,760 156,163 152,963 156,024 Total primary government expenses702,281$ 641,014$ 618,249$ 619,971$ 611,563$ 631,342$ 631,405$ 629,218$ 628,967$ 611,731$ COLLIER COUNTY, FLORIDACHANGE IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)(amounts expressed in thousands)(unaudited)Fiscal Year149 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Program RevenuesGovernmental activities: Charges for services: General government35,184$ 34,240$ 34,662$ 36,080$ 31,388$ 33,919$ 29,281$ 32,257$ 36,468$ 46,380$ Public safety25,276 25,227 21,765 19,735 16,743 15,554 16,385 11,940 12,545 14,293 Transportation4,880 1,094 959 1,045 880 715 829 3,101 3,936 1,902 Culture and recreation8,393 8,685 7,943 8,416 9,126 9,093 8,267 9,830 8,429 7,494 Other activities1,230 4,237 2,661 3,667 4,941 2,296 1,557 1,620 7,541 2,395 Operating Grants and Contributions26,387 35,521 31,444 20,921 22,892 19,503 31,884 21,948 20,202 27,309 Capital Grants and Contributions36,818 29,986 28,945 28,280 20,279 19,347 25,762 24,867 52,303 122,327 Total governmental activities program revenues 138,168 138,990 128,379 118,144 106,249 100,427 113,965 105,563 141,424 222,100 Business‐type activities: Charges for services: Water and Sewer123,856 116,645 107,924 109,176 103,042 105,858 101,062 104,927 100,030 92,091 Solid Waste41,918 39,121 35,368 34,585 34,275 33,769 33,568 32,922 36,495 33,864 Emergency Medical Services13,161 12,327 9,922 10,335 10,249 8,980 10,759 9,114 8,941 9,544 Airport Authority3,073 3,350 2,589 3,021 2,805 2,938 2,519 2,353 3,547 2,860 Mass Transit1,225 1,719 1,641 1,450 1,360 1,290 1,145 1,101 1,074 1,153 Operating Grants and Contributions4,435 5,142 3,077 3,914 2,948 4,378 4,448 3,235 4,393 2,657 Capital Grants and Contributions25,367 21,165 30,662 24,953 17,818 14,307 10,385 18,147 23,333 32,647 Total business‐type activities program revenues213,035 199,469 191,183 187,434 172,497 171,520 163,886 171,799 177,813 174,816 Total primary government program revenues351,203 338,459 319,562 305,578 278,746 271,947 277,851 277,362 319,237 396,916 Net (expense)/revenue:Governmental activities(351,786) (303,474) (306,162) (318,931) (336,736) (361,280) (349,680) (367,492) (334,580) (233,607) Business‐type activities708 919 7,475 4,538 3,919 1,885 (3,874) 15,636 24,850 18,792 Total primary government net expense(351,078)$ (302,555)$ (298,687)$ (314,393)$ (332,817)$ (359,395)$ (353,554)$ (351,856)$ (309,730)$ (214,815)$ Fiscal Year(unaudited)(amounts expressed in thousands)(accrual basis of accounting)LAST TEN FISCAL YEARS (CONTINUED)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDA150 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007General Revenues and Other Changes in Net PositionGovernmental Activities: Taxes: Property taxes281,136$ 259,779$ 244,404$ 249,352$ 248,232$ 261,630$ 299,389$ 313,290$ 327,245$ 345,054$ Gas taxes20,478 19,547 18,556 18,229 18,525 18,311 18,415 18,456 18,860 19,598 Sales taxes40,659 38,573 35,786 32,168 29,713 28,364 26,927 26,779 30,004 32,568 Tourist taxes21,838 21,188 19,137 16,183 14,898 13,884 12,857 12,345 14,796 14,228 Other taxes7,280 7,322 7,840 9,403 9,997 10,155 10,039 12,241 4,051 8,754 State revenue sharing11,100 10,589 9,657 8,792 8,233 8,310 7,854 7,927 8,976 9,652 Interest income4,891 5,069 2,599 1,496 2,430 3,888 4,665 11,455 33,730 48,931 Miscellaneous5,976 17,510 13,333 9,063 7,397 11,498 8,022 12,066 10,642 8,223 Special item ‐ registry bond‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,239 (3,288) ‐ Transfers, net(14,250) (14,192) (13,185) (13,912) (14,447) (13,117) (11,259) (12,596) (28,348) (15,126) Total governmental activities379,108$ 365,385$ 338,127$ 330,774$ 324,978 342,923 376,909 405,202 416,668 471,882 Business‐type Activities: Interest income2,011 2,209 1,301 712 1,106 1,609 1,569 2,395 5,716 8,246 Miscellaneous200 94 68 154 82 96 88 551 77 620 Transfers, net14,250 14,192 13,184 13,912 14,447 13,117 11,259 12,596 28,348 15,126 Total business‐type activities16,461 16,495 14,553 14,778 15,635 14,822 12,916 15,542 34,141 23,992 Total primary government395,569$ 381,880$ 352,680$ 345,552$ 340,613$ 357,745$ 389,825$ 420,744$ 450,809$ 495,874$ Change in Net PositionGovernmental activities27,322$ 61,911$ 31,965$ 11,843$ (11,758)$ (18,357)$ 27,229$ 37,710$ 82,088$ 238,275$ Business‐type activities17,169 17,414 22,028 19,316 19,554 16,707 9,042 31,178 58,991 42,784 Total primary government44,491$ 79,325$ 53,993$ 31,159$ 7,796$ (1,650)$ 36,271$ 68,888$ 141,079$ 281,059$ Fiscal Year(unaudited)LAST TEN FISCAL YEARS (CONTINUED)(amounts expressed in thousands)(accrual basis of accounting)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDA151 Fiscal Property Gas Sales Tourist OtherYear Tax Tax Tax Tax Taxes (1) Total2007 345,054 19,598 32,568 14,228 8,754 420,202 2008 327,245 18,860 30,004 14,796 4,051 394,956 2009 313,290 18,456 26,779 12,345 12,241 383,111 2010 299,389 18,415 26,927 12,857 10,039 367,627 2011 261,630 18,311 28,364 13,884 10,155 332,344 2012 248,232 18,525 29,713 14,898 9,997 321,365 2013 249,352 18,229 32,168 16,183 9,403 325,335 2014 244,404 18,556 35,786 19,137 7,840 325,723 2015 259,779 19,547 38,573 21,188 7,322 346,409 2016281,136 20,478 40,659 21,838 7,280 371,391 (1)(amounts expressed in thousands)COLLIER COUNTY, FLORIDAGOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCELAST TEN FISCAL YEARS(unaudited) Pursuant to the Uniform Accounting System direction from the State of Florida, the Communications Services Tax was shown with fees, fines and charges for services for fiscal years 2007 and 2008. This tax is no longer included beginning in 2009. 152 2009 2008 2007General fund Reserved8,962$ 6,602$ 3,706$ Unreserved38,924 61,953 77,619 Total general fund47,886$ 68,555$ 81,325$ All other governmental funds Reserved105,991$ 142,728$ 294,512$ Unreserved, reported in: Special revenue funds114,208 128,966 124,213 Debt service funds1,587 1,951 2,621 Capital projects funds140,544 160,736 107,888 Total all other governmental funds362,330$ 434,381$ 529,234$ 2016 2015 2014 2013 2012 2011 2010General fund (1) Nonspendable3,675$ 3,546$ 19,843$ 15,744$ 12,914$ 11,805$ 9,460$ Restricted264 345 125 96 110 ‐ ‐ Committed‐ ‐ ‐ ‐ ‐ ‐ ‐ Assigned1,674 1,299 850 813 952 1,114 2,182 Unassigned53,961 55,002 57,781 56,497 57,091 54,459 59,705 Total general fund59,574$ 60,192$ 78,599$ 73,150$ 71,067$ 67,378$ 71,347$ All other governmental funds Nonspendable3,055$ 3,112$ 53,544$ 46,049$ ‐$ ‐$ 107,626$ Restricted324,334 293,281 242,981 223,700 209,352 229,546 232,699 Committed26,069 25,663 27,349 29,810 47,406 48,445 48,764 Assigned28,644 30,800 28,391 36,364 80,771 79,556 34,215 Unassigned(89) (514) (62,085) (55,212) (48,944) (40,258) 23,192 Total all other governmental funds382,013$ 352,342$ 290,180$ 280,711$ 288,585$ 317,289$ 446,496$ As part of the implementation, the governmental fund balances for Fiscal Year 2010 were re‐classified.(unaudited)Fiscal Year(1) In Fiscal Year 2011, the County implemented GASB 54 under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned. COLLIER COUNTY, FLORIDAFUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)(amounts expressed in thousands)153 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Revenues:Taxes322,915$ 300,341$ 282,315$ 285,765$ 284,124$ 296,640$ 333,554$ 348,780$ 357,656$ 380,983$ Licenses, permits and impact fees61,033 51,319 40,631 35,168 30,436 23,695 28,920 25,950 54,052 100,329 Intergovernmental83,949 92,818 89,392 83,667 79,402 74,453 86,445 69,883 77,452 93,186 Charges for services38,362 37,172 35,149 32,435 30,739 27,855 27,122 35,928 40,699 46,127 Fines and forfeitures2,708 2,866 3,252 3,712 4,205 3,882 5,730 5,916 3,786 4,081 Interest income4,440 4,606 2,393 1,406 2,197 3,602 4,306 11,256 33,580 48,262 Special assessments3,746 3,132 2,922 2,924 3,035 2,725 2,848 2,853 2,942 3,240 Miscellaneous 6,600 16,063 11,553 4,833 4,664 10,565 6,380 11,344 10,667 7,337 Total revenues523,753 508,317 467,607 449,910 438,802 443,417 495,305 511,910 580,834 683,545 Expenditures:Current: General government84,599 78,147 73,739 75,725 73,812 79,499 82,409 95,689 96,898 96,483 Public safety177,375 167,788 163,169 153,566 151,858 160,890 165,017 168,592 175,743 168,602 Physical environment15,283 16,157 11,276 13,790 22,870 14,251 9,974 10,608 9,314 11,760 Transportation36,011 36,992 38,789 37,170 42,176 50,741 43,677 41,171 48,253 39,105 Economic environment11,061 9,159 9,265 14,436 14,393 7,841 11,122 12,125 12,619 10,241 Human services14,038 13,151 12,367 12,254 10,988 13,075 12,116 11,277 12,855 12,237 Culture and recreation40,886 37,523 34,114 33,744 34,253 35,745 37,569 37,212 36,456 35,325 Debt service: Principal20,743 20,039 18,510 25,125 31,602 36,493 34,274 48,085 43,080 36,144 Interest12,713 13,555 14,177 17,565 18,149 20,933 20,340 21,498 21,816 22,407 Payment to refunding bond escrow‐ ‐ 2,086 132 ‐ ‐ ‐ ‐ ‐ ‐ Other fiscal charges19 21 173 2,165 1,082 434 891 116 165 61 Capital outlay67,198 62,186 63,613 61,278 49,406 38,726 69,809 176,681 285,809 290,581 Total expenditures479,926 454,718 441,278 446,950 450,589 458,628 487,198 623,054 743,008 722,946 Excess (deficit) of revenues over (under) expenditures43,827 53,599 26,329 2,960 (11,787) (15,211) 8,107 (111,144) (162,174) (39,401) (amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year154 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Other financing sources (uses): Bonds issued‐$ ‐$ 89,780$ 73,805$ 131,525$ 24,620$ 59,895$ 13,244$ 6,215$ ‐$ Premiums on bonds issued‐ ‐ ‐ 2,082 17,192 2,050 844 ‐ 31 ‐ Payment to refunding escrow‐ ‐ (89,622) (73,747) (150,550) (26,593) (59,893) ‐ ‐ (4,500) Capital leases‐ 1,915 ‐ 236 ‐ ‐ ‐ ‐ ‐ Loans issued‐ ‐ ‐ ‐ ‐ ‐ 13,500 69,391 22,390 Sale of capital assets306 595 314 233 313 70 248 301 245 365 Insurance proceeds796 379 316 300 270 384 310 753 208 885 Transfers in121,654 196,026 97,854 90,637 91,524 107,167 105,394 143,275 144,824 166,113 Transfers out(137,530) (208,760) (110,052) (102,061) (103,738) (118,037) (114,905) (155,888) (163,075) (181,471) Total other financing sources (uses)(14,774) (9,845) (11,410) (8,751) (13,228) (10,339) (8,107) 15,185 57,839 3,782 Special item ‐ registry bond‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,239 (3,288) ‐ Net change in fund balances 29,053$ 43,754$ 14,919$ (5,791)$ (25,015)$ (25,550)$ ‐$ (92,720)$ (107,623)$ (35,619)$ Debt service as a percentage of noncapital expenditures8.11% 8.56% 9.25% 11.66% 12.67% 13.78% 13.30% 15.61% 14.23% 13.56%Fiscal Year(amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS (CONTINUED)(modified accrual basis of accounting)155 Total Estimated Assessed Fiscal YearCentrally Less: Total Taxable Direct ActualValue as aEnded Residential Personal Assessed Tax Assessed Tax Taxable Percentage of September 30 Property Property Property Exempt Value Rate Value Actual Value1200782,909,061 2,156,726 202 8,023,791 77,042,198 4.6486 85,065,989 100%200888,819,491 2,321,048 226 8,575,874 82,564,891 4.1064 91,140,765 100%200986,949,935 2,430,996 202 10,718,166 78,662,967 4.1246 89,381,133 100%201077,359,174 2,444,323 202 9,826,950 69,976,749 4.4236 79,803,699 100%201167,947,039 2,259,654 171 8,770,667 61,436,197 4.4151 70,206,864 100%201264,464,592 2,248,702 187 8,510,911 58,202,570 4.4149 66,713,481 100%201364,723,621 2,240,098 184 8,471,142 58,492,761 4.4126 66,963,903 100%201466,977,907 2,198,734 152 8,539,021 60,637,772 4.1592 69,176,793 100%201571,149,974 2,186,145 195 8,739,269 64,597,045 4.1582 73,336,314 100%201676,970,360 2,353,841 134 9,235,508 70,088,827 4.1572 79,324,335 100%Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1.Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year.1The basis of assessed value required by the state is 100% of actual value including tax exemptions.Source: Property Appraiser Recapitulation Report COLLIER COUNTY, FLORIDAASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)156 COLLIER COUNTY, FLORIDAPROPERTY TAX RATES ‐ ALL DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS(unaudited)Collier CountySpecial DebtCountyFiscal General Revenue ServiceSchool IndependentYear Fund Funds Funds Total District Districts Total2007 3.5790 0.8470 0.2226 4.6486 5.5250 1.3403 11.5139 2008 3.1469 0.7362 0.2233 4.1064 5.3510 1.2792 10.7366 2009 3.1469 0.7528 0.2249 4.1246 4.9090 1.2784 10.3120 2010 3.5645 0.7225 0.1366 4.4236 5.2390 1.3243 10.9869 2011 3.5645 0.6926 0.1580 4.4151 5.6990 1.3299 11.4440 2012 3.5645 0.7627 0.0877 4.4149 5.5270 1.2202 11.1621 2013 3.5645 0.7555 0.0926 4.4126 5.5760 1.2395 11.2281 2014 3.5645 0.5873 0.0074 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 4.1572 5.4800 1.1331 10.7703 Sources: Property Appraiser Recapitulation Report Collier County Adopted BudgetBasis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year.Other157 PropertyPercent ofPropertyPercent ofTaxesTotal TaxesTotal Owner/TaxpayerLevied Rank Taxes LeviedLevied Rank Taxes LeviedHHR Naples LLC1,788,013$ 1 0.22%2,400,343$ 1 0.26%Florida Power & Light Company1,559,104 2 0.19%1,770,797 2 0.19%PR Mercato LLP1,034,694 3 0.13%805,029 6 0.09%The Arlington of Naples, Inc.900,888 4 0.11%‐‐ Naples HMA, Inc.814,584 5 0.10%‐‐ Arthrex Manufacturing, Inc.803,972 6 0.10%‐‐ Collier HMA, Inc.793,135 7 0.10%‐‐ Lee County Electric Co‐Op, Inc.788,170 8 0.10%‐‐ Wal‐Mart Stores East LP756,812 9 0.09%‐‐ Waterside at Pelican Bay LLC577,010 10 0.07%‐‐ Century Link‐‐ 1,352,890 3 0.15%City National Bank of Miami‐‐ 1,087,490 4 0.12%Coastland Center Joint Venture‐‐ 939,656 5 0.10%CC‐Naples Inc‐‐ 785,280 7 0.09%Naples Golf & Beach Club, Inc.‐‐ 675,694 8 0.07%Gerry, Sandra‐‐ 652,798 9 0.07%CDC Land Investments, Inc.‐‐ 639,481 10 0.07%Total9,816,382$ 1.21%11,109,458$ 1.20%Total Property Taxes Levied 820,222,636$ 922,849,721$ Amounts for taxpayers with similar names have not been combined. Source: Property Appraiser's taxpayer listing in order of taxes levied.Property Appraiser Recapitulation Report.20162007COLLIER COUNTY, FLORIDAPRINCIPAL TAXPAYERS COUNTY‐WIDE2016 TAX ROLL(unaudited)158 Fiscal Year Total TaxEnded Levy for Collections inSeptember 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy2007 362,568 344,945 95.1% 1,522 346,467 95.6%2008343,906 325,722 94.7%1,191 326,913 95.1%2009329,070 312,096 94.8%2,546 314,642 95.6%2010314,176 297,953 94.8%1,355 299,308 95.3%2011275,704 260,961 94.7%482 261,443 94.8%2012261,137 247,749 94.9%542 248,291 95.1%2013262,037 248,648 94.9%1,197 249,845 95.3%2014255,354 243,137 95.2%615 243,752 95.5%2015271,893 259,121 95.3%78259,199 95.3%2016295,304 281,138 95.2%‐281,138 95.2%Source: Tax Collector Annual ReportFiscal Year of the Levy Total Collections to DateCOLLIER COUNTY, FLORIDAPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS(amounts expressed in thousands)Collected within the(unaudited)159 Limited General Loans andLoans andTotal PercentageFiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal PerYearBonds2Bonds2Payable LeasesBonds2Payable Leases GovernmentIncome1Capita12007 25,815$ 409,620$ 57,331$ 897$ 163,630$ 106,932$ 68$ 764,293$ 5.02% 2,485$ 2008 27,830 394,145 103,461 752 158,885 103,903 618 789,594 4.39% 2,522 2009 36,719 377,940 89,590 599 153,980 106,935 492 766,255 3.86% 2,442 2010 29,162 421,285 19,690 439 148,983 106,509 636 726,704 3.68% 2,302 2011 14,280 402,040 16,914 269 144,014 99,517 387 677,421 3.54% 2,126 2012 9,340 376,275 10,224 412 138,825 92,438 175 627,689 3.23% 1,914 2013 4,155 362,780 7,923 323 109,642 111,787 40 596,650 2.97% 1,794 2014 3,765 349,845 7,081 230 94,470 113,013 1,222 569,626 2.59% 1,680 2015 3,355 331,520 6,401 1,519 88,874 104,475 1,074 537,218 2.19% 1,618 2016 2,930 312,340 5,845 937 72,832 95,707 1,247 491,838 1.91% 1,499 1See the Schedule of Demographic and Economic Statistics for personal income and population data.2 The outstanding debt amounts do not include any bond premiums which are included in the information provided in the notesCOLLIER COUNTY, FLORIDARATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited) to the financial statements.Governmental ActivitiesBusiness‐type Activities160 The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.Estimated EstimatedPercentage Share of Debt Applicable Based OverlappingOutstanding on Population (1) DebtDirect Debt (2): Limited General Obligation Bonds 2,930,000$ 100.00% 2,930,000$ Gas Tax Bonds (3)104,540,000 100.00% 104,540,000 Special Obligation Bonds (3)207,800,000 100.00% 207,800,000 Capital Leases (3)937,314 100.00% 937,314 Notes Payable (3)5,844,803 100.00% 5,844,803 Subtotal, Direct Debt322,052,117 322,052,117 Overlapping Debt: N/A‐ 0.00%‐Underlying Debt: City of Naples (4)8,532,000 6.08% 518,746 City of Marco Island (5)11,586,332 5.00% 579,317 City of Everglades (6)‐ 0.12%‐ Subtotal, Underlying Debt20,118,332 1,098,063 Total Direct, Overlapping and Underlying Debt342,170,449$ 323,150,180$ (1) Population numbers obtained from www.florida‐demographics.com/cities_by_population.(2) Outstanding debt amounts do not include bond premiums.(3) Totals consist of more than one issuance.(4) Governmental activities debt outstanding amount obtained from the City of Naples.(5) Governmental activities debt outstanding amount obtained from the City of Marco Island.(6) Governmental activities debt outstanding amount obtained from the City of Everglades.(unaudited)(unaudited)COLLIER COUNTY, FLORIDADIRECT, OVERLAPPING AND UNDERLYING GOVERNMENTAL ACTIVITIES DEBTAS OF SEPTEMBER 30, 2016LEGAL DEBT MARGIN INFORMATIONAS OF SEPTEMBER 30, 2016161 LegallyGas AvailableFiscal Tax Non‐Ad ValoremYear Collections Principal Interest Coverage Collections(5) Principal Interest Coverage200719,598$ 6,305$ 8,274$ 1.34‐$ ‐$ ‐$ N/A200818,860 6,4908,089 1.29‐ ‐ ‐ N/A200918,456 6,6607,922 1.27‐ ‐ ‐ N/A201018,415 6,9357,645 1.26‐ ‐ ‐ N/A201118,312 7,1857,399 1.2676,416 1,545 2,597 18.45201218,525 7,5057,077 1.2782,866 4,265 4,265 9.71201318,229 7,8556,453 1.2786,640 9,695 7,249 5.11201418,556 8,0404,018 1.5491,043 9,145 9,674 4.84201519,547 9,4403,697 1.49102,375 8,885 9,426 5.59201620,478 9,9003,242 1.56107,268 9,280 9,020 5.86Water/ Sewer Less:NetFiscal Charges Operating AvailableYear and Other(1) Expenses(2) Revenue PrincipalInterest Coverage(3)200798,140$ 57,669$ 40,471$ 4,595$ 5,436$ 4.032008105,416 49,707 55,709 4,745 7,527 4.542009107,127 49,766 57,361 4,905 7,358 4.682010101,830 50,893 50,937 5,274 6,843 4.202011106,839 60,107 46,732 4,969 6,711 4.002012104,164 58,155 46,009 5,189 6,494 3.942013105,682 68,916 36,766 5,422 6,268 3.152014109,514 69,710 39,804 5,967 3,986 4.002015118,066 74,344 43,722 6,073 3,639 4.502016125,456 84,474 40,982 3,986 2,841 6.00(1) Operating revenues plus other income; gain on disposal of assets and investment market value, capital grants and contributions and transfers in are not included.(2) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets and investment market value, interest expense and transfers out are not included.(3) Net available revenue divided by total bonded debt service requirements for the County Water and Sewer District.(4) Special Obligation Bonds were first issued in FY‐2010, debt service payments commenced in FY‐2011.(5) The revenues that comprise the legally available non‐ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees. Debt ServiceBusiness‐type Activities:Water and Sewer Revenue BondsCOLLIER COUNTY, FLORIDAPLEDGED‐REVENUE COVERAGEDebt ServiceGas Tax BondsDebt ServiceSpecial Obligation Bonds(4)LAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)Governmental Activities:162 Per CapitaFiscal Personal Personal Median School UnemploymentYear Population(1) Income(2) Income(3) Age(4) Enrollment(5) Rate(6)2007 333,858 15,236,905,000 49,492 44.5 43,186 3.5%2008 332,854 17,990,169,000 57,446 44.8 42,721 5.5%2009 333,032 19,846,737,000 63,276 45.1 42,534 10.0%2010 331,800 19,739,453,000 62,559 45.2 42,716 12.2%2011 321,520 19,127,928,000 60,049 45.9 42,921 11.4%2012 323,785 19,446,631,000 59,264 46.9 43,238 9.3%2013 329,849 20,075,468,000 60,391 47.1 43,789 7.2%2014 339,642 22,033,344,000 64,872 47.4 44,415 6.3%2015 348,777 24,571,667,000 73,869 47.5 45,228 5.2%2016353,936 25,763,656,000 78,473 47.9 47,289 4.9%Sources:(1)www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demographic(2)www.bebr.ufl.edu/data/localities/125/county(3)www.bebr.ufl.edu/data/localities/120/county(4)www.bebr.ufl.edu/data/localities/196/county(5)www.collierschools.com/Page/349(6)www.floridajobs.org(unaudited)COLLIER COUNTY, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARS163 Percent of Percent ofTotal County Total CountyEmployer Employees Rank Employment Employees Rank EmploymentCollier County Public Schools 5,361 1 3.87% 6,685 1 4.62%NCH Healthcare System4,315 2 3.11%3,007 23.24%Collier County Government (excl. Sheriff)2,276 3 1.64%2,635 32.19%Arthex, Inc2,105 4 1.52%‐ ‐Collier County Sheriff's Office1,401 5 1.01%1,273 61.02%Publix Supermarkets1,249 6 0.90%2,214 42.05%Ritz Carlton Hotel1,100 7 0.79%‐ ‐Seminole Casino ‐ Immokalee1,000 8 0.72%‐ ‐JW Marriott ‐ Marco Island801 9 0.58%743 70.78%Naples Grande Beach Resort (1)488 10 0.35%605 90.77%Other employers118,576 85.51%101,883 85.33% Totals138,672 100.00%119,045 100.00%(1) The Naples Grande Beach Resort property has also operated as the Registry Resort and the Waldorf Astoria Naples in recent years.Sources:Southwest Florida Economic Development AllianceCollier County Public SchoolsNCH Healthcare SystemPublix Corporate OfficeArthrex, Inc.2016 Collier County Budget BookCOLLIER COUNTY, FLORIDAPRINCIPAL EMPLOYERS(unaudited)20162007164 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Function:General government 1,262 1,217 1,216 1,203 1,222 1,219 1,252 1,342 1,398 1,394 Public safety 1,124 1,096 1,072 1,061 1,061 1,062 1,053 1,064 1,085 1,103 Physical environment 70 69 67 67 69 66 66 69 74 77 Transportation 211 192 187 187 199 213 234 257 281 280 Economic environment 26 27 28 26 28 27 22 22 20 19 Human services56 56 53 51 50 50 54 55 56 61 Culture and recreation304 298 294 289 293 293 308 328 363 379 Water and Sewer384 342 340 342 344 344 335 335 358 346 Solid Waste28 27 28 29 27 27 27 27 27 27 Emergency Medical Services 193 193 172 172 172 172 183 185 201 206 Airport Authority15 14 14 16 16 16 16 16 15 15 Collier Area Transit4 3 3 3 3 1 1 1 1 1 Total3,677 3,534 3,474 3,446 3,484 3,490 3,551 3,701 3,879 3,908 (1) Includes the Board of County Commissioners and the Constitutional OfficersCOLLIER COUNTY, FLORIDABUDGETED FULL‐TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1)LAST TEN FISCAL YEARS(unaudited)Fiscal Year165 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Function:Police:Physical arrests 9,359 9,347 11,277 11,277 11,297 20,180 13,310 15,671 20,226 22,028 Parking violations 867 931 964 1,182 1,175 1,479 1,283 1,297 843 1,753 Traffic violations 14,462 16,355 19,868 22,211 19,237 19,680 22,051 28,308 49,831 64,372 Fire:Fires reported 31 82 37 52 46 468 498 533 586 590 Emergency responses (exclude fires)839 1,093 1,080 1,024 764 569 825 760 756 743 Number of calls answered870 1,175 1,117 1,076 810 1,037 1,323 1,293 1,342 1,333 Transportation:Collier Area Transit ridership1,082,519 1,177,029 1,181,530 1,361,294 1,207,866 1,154,702 1,064,910 1,109,710 1,166,358 1,180,147 Street resurfacing (lane miles)34 34 80 78 142 131 85 97 52 44 Culture and recreation:Beach parking stickers issued139,828 134,051 181,878 122,415 114,778 312,144 98,093 132,218 80,542 76,344 Library circulation2,349,418 2,302,017 2,578,588 2,578,589 2,768,648 2,760,427 2,969,238 3,034,439 3,000,394 2,916,523 Water:New connections2,023 2,204 1,878 1,417 1,189 921 909 704 553 1,593 Wastewater:Average daily sewage treatment 17,863,860 17,090,074 17,150,000 16,954,000 15,834,000 14,747,000 14,326,000 13,769,205 15,558,000 15,583,055 (thousands of gallons)Sources:Police‐Collier County Sheriff's DepartmentFire‐Collier County Bureau of Emergency Services, Greater Naples Fire DistrictTransportation‐Collier County Alternative Transportation , Road and BridgeCulture and Recreation‐Collier County Parks and Recreation, Public LibraryWater‐Collier County Utility BillingWastewater‐Collier County WastewaterCOLLIER COUNTY, FLORIDAOPERATING INDICATORS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)Fiscal Year166 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Function:Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units274 276 276 275 275 275 275 275 275 275 Fire: Fire stations4 4 4 3 3 3 3 3 2 2 Highways and streets: Streets (miles)1,159 1,149 1,151 1,184 1,184 1,184 1,184 1,184 1,184 1,147 Streetlights5,182 4,958 4,958 4,868 4,781 4,759 4,701 4,485 3,767 3,987 Traffic signals365 360 370 353 297 295 283 283 224 216 Culture and recreation: Parks acreage1,521 1,521 1,521 1,521 1,520 1,511 1,473 1,473 1,440 1,436 Parks61 61 61 61 61 60 59 59 56 55 Swimming pools8 8 8 8 8 8 8 8 7 7 Tennis courts45 45 45 45 45 45 45 45 45 45 Community centers9 9 8 8 8 8 8 8 8 8 Libraries10 10 10 10 10 10 10 10 9 9 Number of volumes in libraries567,248 605,408 683,237 692,229 673,131 741,389 797,823 797,978 647,484 769,717 Water: Number of customers61,830 59,443 57,548 55,878 54,190 53,181 51,796 51,499 51,136 59,257 Water mains (miles)1,015 986 925 888 888 886 886 886 870 860 Maximum daily capacity (per 1,000 gallons) 33,877,000 31,376,000 30,460,000 30,120,000 29,988,000 29,616,000 28,368,000 33,339,865 30,956,261 36,116,725 Wastewater: Sanitary sewers (miles)1,021 1,028 1,030 1,081 1,116 1,115 1,095 1,081 1,053 871 Primary and secondary drainage facilities294 306 306 305 305 303 303 303 303 303 Police‐Collier County Sheriff's DepartmentFire‐Collier County Bureau of Emergency ServicesHighway and Streets‐Collier County Traffic Operations, Transportation Engineering, Road and BridgeCulture and Recreation‐Collier County Public Library, Parks and RecreationWater‐Collier County Water, Utility BillingWastewater‐Collier County Stormwater, WastewaterCOLLIER COUNTY, FLORIDACAPITAL ASSET STATISTICS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)Fiscal Year167 THIS PAGE INTENTIONALLY LEFT BLANK SINGLE AUDIT/FEDERAL AND STATE SCHEDULE OF FINANCIAL ASSISTANCE The Single Audit/Federal and State schedule of financial assistance section presents Grants compliance reports filed by Collier County with Federal government and State government, respectively. THIS PAGE INTENTIONALLY LEFT BLANK CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the 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, 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 (County), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated March 22, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 171 Honorable Board of County Commissioners Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the County’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 172 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida’s (County) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the requirements described in the State of Florida Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on each of the County’s major federal programs and state projects for the year ended September 30, 2016. The County’s major federal programs and state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Auditor General Local Governmental Entity Audits. Those standards, the Uniform Guidance, 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 on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County’s compliance. 173 Honorable Board of County Commissioners Collier County, Florida Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2016. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2016-001 and 2016-002. Our opinion on each major federal program and state project is not modified with respect to these matters. The County’s responses to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and corrective action plan. The County’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and major state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program of state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program and state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 174 Honorable Board of County Commissioners Collier County, Florida Report on Internal Control Over Compliance (Continued) Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as items 2016-001 and 2016-002 that we consider to be significant deficiencies. The County’s responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and corrective action plan. The County’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 175 CFDA #/ Transfers to CSFA #Grant / Contract Number Expenditures Subrecipients Department of Agriculture Indirect Programs: Florida Department of Agriculture and Consumer Services: Summer Food Service Program for Children 10.559 04‐0804 67,944$ ‐$ Cooperative Forestry Assistance 10.664 Collier County 7,400 ‐ Total Department of Agriculture 75,344 ‐ Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: Community Development Block Grants/Entitlement Grants 14.218 B‐05‐UC‐12‐0016 139,563 102,917 Community Development Block Grants/Entitlement Grants 14.218 B‐07‐UC‐12‐0016 4,169 4,169 Community Development Block Grants/Entitlement Grants 14.218 B‐08‐UN‐12‐0003 33,390 ‐ Community Development Block Grants/Entitlement Grants 14.218 B‐10‐UC‐12‐0016 212,000 212,000 Community Development Block Grants/Entitlement Grants 14.218 B‐11‐UC‐12‐0016 17,035 17,035 Community Development Block Grants/Entitlement Grants 14.218 B‐11‐UN‐12‐0003 3,922 ‐ Community Development Block Grants/Entitlement Grants 14.218 B‐12‐UC‐12‐0016 22,867 22,867 Community Development Block Grants/Entitlement Grants 14.218 B‐13‐UC‐12‐0016 359,613 278,560 Community Development Block Grants/Entitlement Grants 14.218 B‐14‐UC‐12‐0016 923,856 881,096 Community Development Block Grants/Entitlement Grants 14.218 B‐15‐UC‐12‐0016 1,379,126 957,627 Total CFDA 3,095,541 2,476,271 Emergency Solutions Grant Program 14.231 E‐13‐UC‐12‐0024 16,550 7,958 Emergency Solutions Grant Program 14.231 E‐14‐UC‐12‐0024 98,589 44,721 Emergency Solutions Grant Program 14.231 E15‐UC‐12‐0016 96,511 73,606 Total CFDA 211,650 126,285 Shelter Plus Care 14.238 FL0394C4D061000 7,399 7,399 Home Investment Partnerships Program 14.239 M‐06‐UC‐12‐0217 36,783 ‐ Home Investment Partnerships Program 14.239 M‐08‐UC‐12‐0217 17,186 ‐ Home Investment Partnerships Program 14.239 M‐09‐UC‐12‐0217 324,135 ‐ Home Investment Partnerships Program 14.239 M‐10‐UC‐12‐0217 191,325 ‐ Home Investment Partnerships Program 14.239 M‐11‐UC‐12‐0217 296,620 ‐ Home Investment Partnerships Program 14.239 M‐12‐UC‐12‐0217 91,289 ‐ Home Investment Partnerships Program 14.239 M‐13‐UC‐12‐0217 366,940 ‐ Home Investment Partnerships Program 14.239 M‐14‐UC‐12‐0217 157,512 37,395 Home Investment Partnerships Program 14.239 M15‐UC120217 45,625 ‐ Total CFDA 1,527,415 37,395 Total Department of Housing and Urban Development 4,842,005 2,647,350 Department of the Interior Direct Programs: Office of the Secretary: Payments in Lieu of Taxes 15.226 Collier County 1,431,631 ‐ Fish and Wildlife Service: National Wildlife Refuge Fund 15.659 Collier County 164,003 ‐ Total Department of the Interior 1,595,634 ‐ Department of Justice Direct Programs: Office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 174,875 ‐ Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 168,855 ‐ Total CFDA 343,730 ‐ Criminal Division: Equitable Sharing Program 16.922 Collier County Sheriff 81,893 ‐ (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE 176 CFDA #/ Transfers to CSFA #Grant / Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Bureau of Justice Assistance: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014‐DJ‐BX‐0305 31,102$ ‐$ Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015‐DJ‐BX‐0731 21,291 ‐ Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016‐JAGC‐COLL‐1‐H3‐196 68,697 ‐ Total CFDA 121,090 ‐ Florida Office of the Attorney General: Crime Victim Assistance 16.575 V005‐14129 131,194 ‐ Florida Department of Children and Families ‐ Florida Coalition Against Domestic Violence: Violence Against Women Formula Grants 16.588 16‐8008‐LE‐INV 74,476 ‐ Total Department of Justice 752,383 ‐ Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3‐12‐0031‐008‐2013 65,811 ‐ Airport Improvement Program 20.106 3‐12‐0031‐009‐2016 5,377 ‐ Airport Improvement Program 20.106 3‐12‐0031‐010‐2016 1,350 ‐ Airport Improvement Program 20.106 3‐12‐0142‐011‐2016 6,622 ‐ Total CFDA 79,160 ‐ Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit_Capital Investment Grants 20.500 FL‐03‐0264‐00 37,847 ‐ Federal Transit_Capital Investment Grants 20.500 FL‐04‐0033‐00 1,652 ‐ Federal Transit_Capital Investment Grants 20.500 FL‐04‐0117‐00 10,479 ‐ Total CFDA 49,978 ‐ Federal Transit_Formula Grants 20.507 1032‐2016‐3 245,351 ‐ Federal Transit_Formula Grants 20.507 FL‐2016‐056‐00 1,065,935 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X699‐00 14,786 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X766‐00 34,279 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X816‐00 267,263 ‐ Federal Transit_Formula Grants 20.507 FL‐90‐X853‐00 533,848 ‐ Federal Transit_Formula Grants 20.507 FL‐95‐X069‐00 1,252 ‐ Federal Transit_Formula Grants 20.507 FL‐95‐X076‐00 1,071,342 ‐ Federal Transit_Formula Grants 20.507 FL‐95‐X085‐00 29,555 ‐ Federal Transit_Formula Grants 20.507 FL‐95‐X086‐00 17,988 ‐ Total CFDA 3,281,599 ‐ Bus and Bus Facilities Formula Program 20.526 FL‐34‐0004‐00 45,228 ‐ Bus and Bus Facilities Formula Program 20.526 FL‐34‐0019‐00 276,160 ‐ Total CFDA 321,388 ‐ Total Federal Transit Cluster 3,652,965 ‐ Indirect Programs: Florida Department of Transportation: Highway Planning and Construction 20.205 425670‐1‐14‐01 / A4377 405,632 ‐ Highway Planning and Construction 20.205 429899‐1‐58‐01, 429899‐1‐68‐01 / G0258 371,724 ‐ Highway Planning and Construction 20.205 429900‐1‐58‐01 / ARR00 392,001 ‐ Highway Planning and Construction 20.205 430868‐1‐18‐01 / AR481 41,833 ‐ Highway Planning and Construction 20.205 430875‐1‐58‐01 / ARS55 310,773 ‐ Highway Planning and Construction 20.205 430879‐1‐58‐01 / G0A31 90 ‐ Highway Planning and Construction 20.205 433177‐1‐58‐01, 433177‐1‐68‐01 / G0870 77 ‐ Highway Planning and Construction 20.205 439314‐1‐14‐01 / G0B56 91,851 ‐ Total CFDA 1,613,981 ‐ Metropolitan Transportation Planning and State and Non‐Metropolitan Planning and Research 20.505 410113‐1‐14‐24 / AQR14 24,108 ‐ Formula Grants for Rural Areas 20.509 410120‐1‐84‐34 / G0738 366,406 ‐ (Continued) 177 CFDA #/ Transfers to CSFA #Grant / Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 435210‐1‐93‐12; FL‐16‐X010‐02 144,420$ ‐$ Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0039 421,909 ‐ Total CFDA 566,329 ‐ Total Department of Transportation 6,302,949 ‐ U.S. Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 2015‐2016‐0001‐CLL 31,549 ‐ Total U.S. Election Assistance Commission 31,549 ‐ Department of Health and Human Services Indirect Programs: Florida Department of Elder Affairs ‐ Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.15 6,856 ‐ Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.16 241,380 ‐ Total CFDA 248,236 ‐ Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.15 148,523 ‐ Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.16 444,359 ‐ Total CFDA 592,882 ‐ Nutrition Services Incentive Program 93.053 NSIP 203.15 5,051 ‐ Nutrition Services Incentive Program 93.053 NSIP 203.16 44,862 ‐ Total CFDA 49,913 ‐ Total Aging Cluster 891,031 ‐ National Family Caregiver Support, Title III, Part E 93.052 OAA 203.15 33,643 ‐ National Family Caregiver Support, Title III, Part E 93.052 OAA 203.16 107,802 ‐ Total CFDA 141,445 ‐ Florida Department of Revenue: Child Support Enforcement 93.563 1704FLCSES / COC11 217,267 ‐ Florida Department of State: Voting Access for Individuals with Disabilities_Grants to States 93.617 2015‐2016‐0004‐CLL 1,607 ‐ Total Department of Health and Human Services 1,251,350 ‐ Corporation for National and Community Service Direct Programs: Retired and Senior Volunteer Program 94.002 15SRSFL015 58,359 ‐ Total Corporation for National and Community Service 58,359 ‐ Department of Homeland Security Indirect Programs: Florida Executive Office of the Governor: Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) 97.036 13‐DB‐73‐09‐21‐02‐530 33,118 ‐ Emergency Management Performance Grants 97.042 16‐FG‐5A‐09‐21‐01‐078 103,466 ‐ Emergency Management Performance Grants 97.042 17‐FG‐P9‐09‐21‐01‐085 10,333 ‐ Total CFDA 113,799 ‐ Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐01‐240 15,993 ‐ Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐02‐277 37,571 ‐ Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐02‐278 19,975 ‐ Homeland Security Grant Program 97.067 16‐DS‐T9‐09‐21‐01‐302 80,362 ‐ Total CFDA 153,901 ‐ Total Department of Homeland Security 300,818 ‐ 15,210,391$ 2,647,350$ TOTAL EXPENDITURES OF FEDERAL AWARDS 178 CFDA #/ Transfers to CSFA #Grant / Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Direct Projects: Emergency Management Programs 31.063 16‐BG‐83‐09‐21‐01‐011 70,356$ ‐$ Emergency Management Programs 31.063 17‐BG‐83‐09‐21‐01‐018 35,875 ‐ Total Florida Executive Office of the Governor 106,231 ‐ Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 481,818 ‐ Beach Management Funding Assistance Program 37.003 15CO1 48,406 ‐ Total Florida Department of Environmental Protection 530,224 ‐ Direct Projects: 40.012 SL007 1,529 ‐ Total Florida Department of Economic Opportunity 1,529 ‐ Florida Housing Finance Corporation Direct Projects: 40.901 Collier County FY 2015‐2016 116,990 ‐ State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2011‐2012 20,000 ‐ State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2012‐2013 320,000 ‐ State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2013‐2014 471,415 111,415 State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2014‐2015 433,579 12,925 Total CSFA 1,244,994 124,340 Total Florida Housing Finance Corporation 1,361,984 124,340 Direct Projects: State Aid to Libraries 45.030 13‐ST‐08 30,373 ‐ State Aid to Libraries 45.030 14‐ST‐08 177,418 ‐ State Aid to Libraries 45.030 15‐ST‐08 33,437 ‐ Total Florida Department of State and Secretary of State 241,228 ‐ Direct Projects: Aviation Development Grants 55.004 430969‐1‐94‐01 / AR519 3,821 ‐ Aviation Development Grants 55.004 435447‐1‐94‐01 / AR865 43,948 ‐ Aviation Development Grants 55.004 438877‐1‐94‐01 / G0594 247,200 ‐ Aviation Development Grants 55.004 433631‐1‐94‐01 / G0576 155,200 ‐ Total CSFA 450,169 ‐ Public Transit Block Grant Program 55.010 410139‐1‐84‐01 / AQQ16 896,635 ‐ Public Transit Service Development Program 55.012 432836‐1‐94‐01 / AQQ85 38,241 ‐ Public Transit Service Development Program 55.012 435214‐1‐84‐01 / ARJ84 178,053 ‐ Total CSFA 216,294 ‐ Transportation Regional Incentive Program (TRIP)55.026 425840‐1‐58‐01 / ARF43 3,995,089 ‐ Alligator Alley Mile Marker 63 Fire Station 55.036 435389‐1‐94‐01 / ARF81 1,273,253 ‐ Indirect Projects: Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 43202718401, 43202818401 / GO135 524,151 ‐ Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 43202718401, 43202818401 / G0B09 196,486 ‐ Total CSFA 720,637 ‐ (Continued) Florida Executive Office of the Governor Florida Department of State and Secretary of State Florida Department of Transportation Florida Department of Environmental Protection Florida Department of Economic Opportunity Local Economic Development Initiatives State Housing Initiatives Partnership Program (SHIP) 179 CFDA #/ Transfers to CSFA #Grant / Contract Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 43202911401 / G0216 19,975$ ‐$ Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 43202911401 / G0C36 4,955 ‐ Total CSFA 24,930 ‐ Total Florida Department of Transportation 7,577,007 ‐ Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 60.115 LHZ46 258,922 240,087 Total Florida Department of Children and Families 258,922 240,087 Florida Department of Health Direct Projects: Emergency Medical Services (EMS) Matching Awards 64.003 M4066 104,261 ‐ County Grant Awards 64.005 C3011 18,899 ‐ County Grant Awards 64.005 C4011 159,951 ‐ Total CSFA 178,850 ‐ Total Florida Department of Health 283,111 ‐ Indirect Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.15 25,107 ‐ Home Care for the Elderly 65.001 HCE 203.16 12,920 ‐ Total CSFA 38,027 ‐ Alzheimer's Respite Services 65.004 ADI 203.15 205,489 ‐ Alzheimer's Respite Services 65.004 ADI 203.16 41,656 ‐ Total CSFA 247,145 ‐ Community Care for the Elderly 65.010 CCE 203.15 593,088 ‐ Community Care for the Elderly 65.010 CCE 203.16 166,892 ‐ Total CSFA 759,980 ‐ Total Florida Department of Elder Affairs 1,045,152 ‐ TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 11,405,388$ 364,427$ Florida Department of Elder Affairs 180 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2016 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 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, 2016. 2. 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. 3. Negative Figures on the Schedule of Expenditures Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial Assistance are a result of corrections which reduced expenditures in one grant and increased expenditures in another grant or funding source. Although the current expenditures on a grant may be negative, the total of all expenditures on the grant is expected to be positive over its total period of performance. 4. Indirect Cost Rate The County has not elected to use the 10 percent de minimus cost rate allowed under the Uniform Guidance. 181 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016 Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? x yes none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? x yes no Identification of Major Federal Programs CFDA Number(s) Name of Federal Program or Cluster 14.239 Home Investment Partnerships Program 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities 20.500, 20.507, 20.526 Federal Transit Cluster 93.044, 93.045, 93.053 Aging Cluster Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? yes x no 182 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016 Section I – Summary of Auditors’ Results (Continued) State Financial Assistance 1. Internal control over state projects:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes x no reported 2. Type of auditors’ report issued on compliance for state projects: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with Chapter 10.557? yes x no Identification of Major State Projects CSFA Number(s) Name of State Project 37.003 Beach Management Funding Assistance Program 40.901 State Housing Initiatives Partnership (SHIP) Program 55.026 Transportation Regional Incentive Program (TRIP) 55.012 Public Transit Development Program 65.010 Community Care for the Elderly Dollar threshold used to distinguish between Type A and Type B state projects: $ 342,162 183 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016 Part II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Part III – Findings and Questioned Costs – Major Federal Programs 2016-001 Eligibility Federal Program Department of Health and Human Services Passed through the Florida Department of Elder Affairs – Area Agency on Aging for Southwest Florida, Inc. CFDA 93.044, 93.045, 93.053 Aging Cluster Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria Only individuals whom have applied for benefits using the proper standardized forms and been properly reviewed, approved and setup in the Client Information and Registration Tracking System (CIRTS) can be provided with meals by the Aging Cluster. Condition Five individuals were served a total of 41 meals prior to being enrolled in the CIRTS system. Context The auditor selected 60 individuals to test and noted the condition above. Sample was a statistically valid sample. Questioned Costs None Cause Unallowable costs were incurred due to the individuals not being properly determined to be eligible. Effect Lack of controls over these expenditures could result in additional unallowable costs being charged to the grant. Repeat Finding Yes. Prior year finding 2015-005. 184 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016 Part III – Findings and Questioned Costs – Major Federal Programs (Continued) Recommendation We recommend that the County implement policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. Views of Responsible Officials and Corrective Action Plan There is no disagreement with the audit finding. 2016-002 Program Income and Reporting Federal Program Department of Housing and Urban Development CFDA 14.239 Home Investment Partnership Program (HOME) Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria In accordance with 24 CFR 92.502 (a) the participating jurisdiction must report all program income in HUD's computerized disbursement and information system. Condition Based on our testing of program income in fiscal year 2016, recapture payments from the State of Florida SHIP program were incorrectly recorded and reported as HOME program income. Although eligible for HOME match, these SHIP recapture payments had not been designated as HOME match in the HOME match log that was reported in the annual report and in IDIS. Context Auditors randomly selected two of the four HOME program receipts for testing. Sample was a statistically valid sample. In fiscal year 2016, the only program income received by the HOME program was SHIP recaptured payments designated as HOME match in the year of disbursement. Auditor requested HOME match log to ensure proper recording of recaptured funds. The receipts selected for testing were not previously designated as HOME match. Additionally, per management's review of the remaining two receipts there was one additional error identified. Questioned Costs None 185 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016 Part III – Findings and Questioned Costs – Major Federal Programs (Continued) Cause During the receipting process, the incorrect file was accessed when determining the proper program for coding. The County did not have the proper review procedure in place to detect improper codings. Effect The fiscal year 2016 HOME program income was incorrectly reported in IDIS, the annual report and reimbursement requests were understated by the amount of improperly coded program income. Repeat Finding No Recommendation We recommend that the County enhance its review procedures to ensure that program income is recorded to the appropriate program. Additionally, the County should ensure that program income is properly reported in the annual report. Management’s Response There is no disagreement with the audit finding. Part IV – Findings and Questioned Costs – Major State Projects Our audit did not disclose any matters required to be reported in accordance with Rule 10.554(1)(l)4, Rules of the Florida Auditor General. 186 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2016 Finding 2015-001 Corrective action was taken. Finding 2015-002 Corrective action was taken. Finding 2015-003 Corrective action was taken. Finding 2015-004 Corrective action was taken. Finding 2015-006 Corrective action was taken. Finding 2015-005 See current year finding 2016-001. Reason for finding’s recurrence The corrective action plan implemented by management commenced on June 6, 2016. The 5 events of noncompliance occurred prior to that date. . 187 COLLIER COUNTY, FLORIDA Corrective Action Plan Year Ended September 30, 2016 Oversight Agency for Audit: Department of Transportation Collier County Board of County Commissioners respectfully submits the following corrective action plan for the year ended September 30, 2016. Audit period: FY 2016 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HEALTH AND HUMAN SERVICES 2016-001 Aging Cluster – CFDA No. 93.044, 93.045, 93.053 Recommendation: That the County implements policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Eligibility was determined after the required timeframe for noncompliant test selections and occurred prior to implementation of the corrective actions on June 6, 2016. The corrective actions remain in place to ensure clients are registered within the required timeframe. Name(s) of the contact person(s) responsible for corrective action: Therese Stanley, Grants Compliance Manager Planned completion date for corrective action plan: June 6, 2016 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2016-002 Home Investment Partnership Program (HOME) – CFDA No. 14.239 Recommendation: That the County enhances its review procedures to ensure that program income is recorded to the appropriate program. Additionally, the County should ensure that program income is properly reported in the annual report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A single document (the cumulative HOME Match Log) will track all HOME program matches inclusive of SHIP loans. Use of a single log will support HOME program income postings as accurate. The HOME Match Log currently serves as support to the annual HOME Match Report and as such will ensure SHIP loans are recorded timely on the report. 188 COLLIER COUNTY, FLORIDA Corrective Action Plan Year Ended September 30, 2016 The secondary (SHIP/HOME Match) log used to identify both actual and future SHIP loan use as HOME match has been eliminated. Should HOME program match needs merit use of additional SHIP loans as a source, current year SHIP loans will be identified and recorded on the HOME Match Log without delay. The 2016 HOME Match report has been revised and submitted to HUD to include the missing SHIP loan values. The HOME (SHIP) Revenue (Intake) Form will be enhanced to document review of the HOME Match Log in the determination of SHIP loan pay backs as HOME program income. Name(s) of the contact person(s) responsible for corrective action: Therese Stanley, Grants Compliance Manager Planned completion date for corrective action plan: March 31, 2017 If the Department of Transportation has questions regarding this plan, please call Therese Stanley at 239-252-2959. 189 THIS PAGE INTENTIONALLY LEFT BLANK 190 CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida We have audited the financial statements of Collier County, Florida (County) as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated March 22, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated March 22, 2017, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of prior year’s findings and recommendations are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been included in the notes to the basic financial statements. Honorable Board of County Commissioners Collier County, Florida Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the County has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the County’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the County for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 2 Honorable Board of County Commissioners Collier County, Florida Page 3 Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 3 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Appendix A – Status of Prior Year’s Findings and Recommendations Year Ended September 30, 2016 Prior Year Findings and Recommendations Current Year Status Cleared Partially Cleared Not Cleared 2015-001 Material Weakness X 2015-002 Significant Deficiency X 2015-003 Compliance and Material Weakness X 2015-004 Significant Deficiency X 2015-005 (current year finding 2016-001) Significant Deficiency X 2015-006 Significant Deficiency X 4 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida’s (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund; and Section 288.8018(1), Florida Statutes, regarding funds related to the Deepwater Horizon oil spill during the year ended September 30, 2016. Management is responsible for the County's compliance with those requirements. Our responsibility is to express an opinion on the County's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. Our examination disclosed material noncompliance with Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund. The County charged this program $14,027 in nonallowable costs. In our opinion, except for the noncompliance reported in the previous paragraph, the County complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the County and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 THIS PAGE INTENTIONALLY LEFT BLANK ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2016. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes 280,655,632$ Governmental Impact Fees 35,602,950 Half Cent Sales Tax 40,658,974 Developmental Fees 26,811,247 State Revenue Sharing 10,516,907 5th Cent Local Option Gas Tax 5,494,066 6th Cent Local Option Gas Tax 7,274,673 Constitutional Gas Tax 4,284,837 Seventh Cent Gas Tax 1,893,544 Ninth Cent Gas Tax 1,531,119 Parks and Recreation Fees 7,324,453 Tourist Development Tax 21,838,332 Court Facilities Fees 900,299 Communications Services Tax 4,702,746 Total bondable revenues 449,489,779$ Fiscal 2016 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal:2,700,000$ Interest:1,174,900 Series 2014 Gas Tax Bonds Principal:7,200,000 Interest:2,067,059 Series 2010 Special Obligation Bonds Principal:1,905,000 Interest:2,145,913 Series 2010B Special Obligation Bonds Principal:2,040,000 Interest:671,600 Series 2011 Special Obligation Bonds Principal:5,335,000 Interest:3,355,131 Series 2013 Special Obligation Bonds Principal:‐ Interest:2,846,975 Total fiscal 2016 governmental debt service requirements 31,441,578$ Governmental debt ratio of fiscal year 2016 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 7.0% Notes: Debt service is based upon current amortization tables for the fiscal year indicated. Debt prepayments are not included as debt service requirements. TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2016 1 Collier County Water and Sewer District: Total Sales Revenue 120,672,583$ Allowance for Funds Prudently Invested ‐ Miscellaneous Revenue 3,183,568 Total Operating Revenue 123,856,151 Non‐Operating Revenue 1,599,527 Gross Revenue 125,455,678 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization)84,473,620 Net Revenue Available for Debt Service (1)40,982,058$ Total Fiscal Year 2016 Debt Service on Bonds (2)6,827,648$ Net Revenue Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)600% Other Pledged Funds: System Development Fees (Impact Fees)13,643,674$ Special Assessment Proceeds ‐ Total Pledged Funds Available for Debt Service (3)54,625,732$ Total Fiscal Year 2016 Debt Service on Bonds (4)6,827,648$ Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)800% Total Pledged Funds Available for Debt Service After Payment of Bonds (5)47,798,084$ Total Fiscal Year 2016 Debt Service on Subordinated Indebtedness (6)11,513,231$ Calculated Coverage on Subordinated Indebtedness ‐ (5/6)415% Total Pledged Funds Available for System Purposes 36,284,853$ TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2016 2 Summary Debt Statement for Fiscal Year 2016 General Governmental Debt: Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this self-imposed maximum. The Constitution of the State of Florida and the Florida Statutes set no legal debt limit at the local level. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County’s Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased from 7.6%, for the fiscal year ended September 30, 2015, to 7.0% for the fiscal year ended September 30, 2016. The decrease in the debt ratio for FY-2016 is primarily the result of an 8.8% increase in overall bondable revenues. Ad valorem tax collection increased by 8.5% over FY-2015 due to a corresponding increase in taxable property values. In addition, impact fee collections related to governmental activities (non-enterprise activity) increased by 40.0% and Half-Cent Sales Tax collections were 5.4% greater than FY-2015. Recent debt restructurings coupled with the growth of general governmental revenues has produced several consecutive years of decreases in the general governmental debt ratio, as shown in the chart below: 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% FY‐2011 FY‐2012 FY‐2013 FY‐2014 FY‐2015 FY‐2016 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Governmental Debt Ratings Table: Current Ratings (as of 1/11/2017) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA- A2 A Special Obligation Bonds AA Aa2 AA+ A rating of AA is an indication by Fitch Ratings of an investment grade instrument, but one which carries a slightly higher risk than a AAA rated bond. Fitch also uses intermediate +/- modifiers for each AA category. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument with very low credit risk, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. A rating of A is an indication by Moody’s of an investment grade instrument with low credit risk but the bond has elements present that suggest a higher susceptibility to impairment over the long term than a Aa investment. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of AA is an indication by Standard and Poor’s of an investment grade instrument issued by a “quality borrower” but with slightly more risk than a AAA grade investment. A rating of A is an indication by Standard and Poor’s of an investment grade instrument but one more susceptible to adverse changes in circumstances and economic conditions than AAA or AA instruments. Standard and Poor’s also uses intermediate +/- modifiers for each category. The County’s Special Obligation Revenue Bonds are secured by a covenant to appropriate in the annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. The combined gas tax revenues are pledged for the payment of all the Gas Tax Revenue Bonds. Fiscal year 2016 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue Bonds at 151%. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District’s debt 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 impact fees and special assessments, if applicable, must cover bonded debt at 125%. Net revenue coverage on bonded debt was 600% and total pledged funds coverage on bonded debt was 800% for FY-2016, up from 450% and 580%, respectively, for FY- 2015. Bonded debt coverages increased primarily due to a 6.6% increase in water and sewer sales revenues and a 27.9% decrease in annual bonded debt service. The District’s calculated coverage on subordinated debt, all in the form of State Revolving Fund Loans, increased from 405% to 415%, 4 also as a result of the factors mentioned above. The total pledged funds coverage required by the subordinated loan agreements varies between 115% and 125%, depending upon the individual loan agreement. In May of 2016, the Collier County Water and Sewer District issued the Series 2016A Water and Sewer Refunding Revenue Bonds in the amount of $48,105,000 for the purpose of refunding the District’s remaining Series 2006 Revenue Bonds. The Series 2016 bond proceeds, together with other available monies, were placed in escrow. The Series 2016 Water and Sewer Refunding Revenue Bonds have a fixed interest rate of 5.0%. The current refunding achieved a net present value savings of 18.0% on the refunded bonds. Enterprise Debt Ratings Table: Current Ratings (as of 1/11/2017) Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA Aa1 - *- Standard & Poor’s does not currently rate County Water and Sewer Revenue Bonds. In December of 2015, Fitch Ratings affirmed the District’s Water and Sewer Revenue Bonds at AAA. A rating of AAA is an indication by Fitch Ratings of an investment grade instrument with very little credit risk. In April of 2016, Moody’s Investors Service upgraded the District’s Water and Sewer Revenue Bonds to Aa1 from Aa2. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of Aa1 is the highest rating within the Aa range. Water, wastewater and irrigation quality water user rates and miscellaneous revenues are used to recover system operating, maintenance and capital costs as well as pay debt service. In September of 2014 the District’s governing board approved phased rate increases. The District’s water and sewer user rates increased by 9.0%, effective 10/01/2014 with subsequent increases of 5.0% effective 10/01/2015 and 10/01/2016. Over recent years the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s continuing focus is the optimization of resources and a risk based prioritization of capital projects. 5 Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds ........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund .............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Services Fund ..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Fund .....................................................................................8 Statement of Fiduciary Net Position – Agency Fund..................................................................9 Notes to Financial Statements ...................................................................................................10 Supplementary Information Combining Statements of Fiduciary Net Position – All Agency Funds ...................................26 Other Reports Independent Auditors’ Report on 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 ..........................................27 Management Letter ...................................................................................................................29 Independent Accountants’ Report .............................................................................................31 CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Clerk’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Dwight E. Brock Clerk of the Circuit Court 2 Opinions In our opinion, the 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 for the Clerk as of September 30, 2016, and the respective changes in financial position and, where applicable, budgetary comparisons thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s financial statements. The combining statement, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The combining statement is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statement is fairly stated in all material respects in relation to the financial statements as a whole. Honorable Dwight E. Brock Clerk of the Circuit Court 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 18, 2017 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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 Collier County, Florida Clerk of the Circuit Court Balance Sheet – Governmental Funds September 30, 2016 See accompanying Notes to Financial Statements. 4 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents 1,706,233$ 1,530,273$ 4,890,203$ 8,126,709$ Accounts receivable 67,019 46,985 - 114,004 Allowance for doubtful accounts - (46,985) - (46,985) Due from other governments 8,376 40,813 19,250 68,439 Total assets 1,781,628$ 1,571,086$ 4,909,453$ 8,262,167$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 574,639$ 241,675$ 83,585$ 899,899$ Due to Collier County, Florida Board of County Commissioners 200,221 - - 200,221 Due to other governments - 1,329,411 - 1,329,411 Deposits 1,006,768 - - 1,006,768 Total liabilities 1,781,628 1,571,086 83,585 3,436,299 Fund balance: Restricted - - 4,825,868 4,825,868 Total fund balance - - 4,825,868 4,825,868 Total liabilities and fund balance 1,781,628$ 1,571,086$ 4,909,453$ 8,262,167$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Other Total Court Special Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 310,321$ 19,250$ 329,571$ Charges for services 3,198,283 6,263,767 1,500,055 10,962,105 Interest income 15,209 12,146 11,159 38,514 Total revenues 3,213,492 6,586,234 1,530,464 11,330,190 Expenditures: General government: Personal services 6,630,979 5,393,157 1,004,902 13,029,038 Operating 2,055,249 302,174 607,072 2,964,495 Capital outlay 345,030 - 2,423 347,453 Total expenditures 9,031,258 5,695,331 1,614,397 16,340,986 Excess (deficiency) of revenues over (under) expenditures (5,817,766) 890,903 (83,933) (5,010,796) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,014,400 - - 6,014,400 Transfers out: Distribution of excess fees to State of Florida - (890,903) - (890,903) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (196,634) - - (196,634) Total other financing sources (uses) 5,817,766 (890,903) - 4,926,863 Net change in fund balance - - (83,933) (83,933) Fund balances – beginning of year - - 4,909,801 4,909,801 Fund balances – end of year -$ -$ 4,825,868$ 4,825,868$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 2,793,000$ 3,131,200$ 3,198,283$ 67,083$ Interest income 16,200 16,200 15,209 (991) Total revenues 2,809,200 3,147,400 3,213,492 66,092 Expenditures: General government: Personal services 7,129,200 6,644,000 6,630,979 13,021 Operating expenditures 1,575,100 2,094,600 2,055,249 39,351 Capital outlay 119,300 423,200 345,030 78,170 Total expenditures 8,823,600 9,161,800 9,031,258 130,542 Excess (deficiency) of revenues over (under) expenditures (6,014,400) (6,014,400) (5,817,766) 196,634 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,014,400 6,014,400 6,014,400 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (196,634) (196,634) Total other financing sources (uses) 6,014,400 6,014,400 5,817,766 (196,634) Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Court Services Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 219,000$ 219,000$ 310,321$ 91,321$ Charges for services 6,818,653 6,572,264 6,263,767 (308,497) Interest income 4,400 4,400 12,146 7,746 Total revenues 7,042,053 6,795,664 6,586,234 (209,430) Expenditures: General government: Personal services 6,516,853 6,290,364 5,393,157 897,207 Operating expenditures 525,200 505,300 302,174 203,126 Total expenditures 7,042,053 6,795,664 5,695,331 1,100,333 Excess of revenues over expenditures - - 890,903 890,903 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida - - (890,903) 890,903 Total other financing (uses) - - (890,903) 890,903 Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Other Special Revenue Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental -$ 19,250$ 19,250$ -$ Charges for services 1,405,000 1,405,000 1,500,055 95,055 Interest income 6,900 6,900 11,159 4,259 Total revenues 1,411,900 1,431,150 1,530,464 99,314 Expenditures: General government: Personal services 1,028,600 1,136,100 1,004,902 131,198 Operating expenditures 1,524,300 1,458,550 607,072 851,478 Capital outlay 1,043,700 1,128,700 2,423 1,126,277 Total expenditures 3,596,600 3,723,350 1,614,397 2,108,953 Net change in fund balance (2,184,700) (2,292,200) (83,933) 2,208,267 Fund balance – beginning of year 2,611,593 4,479,529 4,909,801 430,272 Fund balance – end of year 426,893$ 2,187,329$ 4,825,868$ 2,638,539$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Funds September 30, 2016 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 25,203,051$ Liabilities Due to the Collier County, Florida Board of County Commissioners 328,284$ Due to other governments 765,899 Deposits 24,108,868 Total liabilities 25,203,051$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 10 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (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. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk’s general fund. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. The State transitioned the Clerk in July, 2013 to be self-funded from fees and fines. Pursuant to Section 28.37, Florida Statute, any surplus revenues over expenditures will be returned to the State. Measurement Focus, Basis of Accounting, and Basis of Presentation These 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. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 11 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 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 – 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 – The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund – The other special revenue fund is a special revenue fund used to account for revenues 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 equipment, personnel training, and technical assistance in modernizing the public records system of the office, and revenues mandated by Section 28.24(12)(e), Florida Statutes, to be used exclusively for funding court-related technology needs. This fund also accounts for revenues and expenditures pursuant to Section 28.37(5), Florida Statutes. 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 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. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 12 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 of County Commissioners. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund 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 other financing use in the accompanying purpose financial statements. 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 – Agency 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 full accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 13 1. Summary of Significant Accounting Policies (continued) Compensated Absences All 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 (with limited exceptions per the employee manual). 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 governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk’s funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these 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 liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non-spendable fund balances at the Clerk as of September 30, 2016. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 14 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk’s fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, 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. If 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. For the year ended September 30, 2016, the Clerk had sufficient revenues to meet expenditures. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 15 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk’s fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. 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 Clerk. 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. 3. Cash and Cash Equivalents At September 30, 2016, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A 7,600$ N/A Demand deposits N/A 33,322,160 N/A Total cash and cash equivalents 33,329,760$ 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 financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 16 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2016 are reported as $8,126,709 and $25,203,051 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2016, 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. 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 Florida PRIME 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 located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk’s funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 17 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 income is allocated to each fund based on its proportionate balance in the pool. Interest income of $15,209 is reported in the general fund for the year ended September 30, 2016, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2015 Additions Deductions out 2016 Capital assets depreciated: Machinery and equipment 7,573,417$ 347,453$ (651,361)$ (6,173)$ 7,263,336$ Less accumulated depreciation (5,587,369) (655,461) 651,359 6,173 (5,585,298) Total capital assets depreciated 1,986,048 (308,008) (2) - 1,678,038 Total capital assets, net 1,986,048$ (308,008)$ (2)$ -$ 1,678,038$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 18 6. 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, September 30, 2015 Additions Deletions 2016 Accrued compensated absences 1,828,399$ 887,990$ (913,778)$ 1,802,611$ Of these liabilities, $901,306 is expected to be paid during the fiscal year ending September 30, 2017. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 19 7. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 20 7. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre- July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 21 7. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 22 7. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk’s contributions made to the plans during the years ended September 30, 2016, 2015, and 2014 were $750,024, $754,154, and $738,661, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County comprehensive annual financial report or County-wide financial statements. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 23 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $6,014,400. The Supervisor of Elections provided funding in the amount of a $46,400 fee for financial services performed by the Clerk. At September 30, 2016, the Clerk had a payable due to the Board of $528,505, comprised as follows: Distribution of excess fees 196,634$ Amounts due for various services 3,587 Agency funds due 328,284 Total due to Board of County Commissioners 528,505$ 9. Risk Management Collier County, Florida (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, 2016, the Clerk was charged $2,424,957 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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 self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 24 10. Other Postemployment Healthcare Benefits (OPEB) Plan The Clerk follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The Clerk 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 financial statements of Collier County, Florida. Under Florida statutes, retirees originally hired prior to July 1, 2011, 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Clerk had a net OPEB obligation of $56,221 as of September 30, 2016. 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 on October 1, 2015. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 25 11. Claims and Contingencies Litigation The Clerk 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, 2016, the Clerk was involved in approximately 104,800 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 250 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are approximately 11 actions for foreclosure of property in which the Clerk has been a named defendant. The Clerk was involved in litigation of a Florida Statute related to ownership of interest earned on monies paid into the registry of the court and an inverse condemnation allegation asserting that the Clerk has improperly retained interest accruing on funds in the court’s registry. Two other cases with similar claims were filed in Florida. Both cases found against the respective plaintiffs. The plaintiffs filed a motion for the Florida Supreme Court to rule on the cases. The court denied the motion. The plaintiffs filed to have the U.S. Supreme Court hear the case. The Supreme Court chose not to hear the case and our case settled just after the close of the fiscal year. The Clerk was involved in a litigation regarding fees for public records requests. There is currently a motion for recovery of attorney’s fees in this case. The Clerk is contesting this claim. The Clerk was involved in litigation against the County Manager and Purchasing Director joined by the Board of County Commissioners. This case has settled. There is currently a motion for recovery of costs in this case. These costs are being contested by the Clerk. The Clerk submitted a demand notice for return of payment from a vendor. This matter is continuing and in negotiations for settlement. The Clerk made payments pursuant to a garnishment order to a vendor. The BOCC has an intervention case against the Clerk, stating the Clerk had no authority to make these payments. The BOCC agreed to drop its intervention and authorized the Clerk to settle the claims. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk of the Circuit Court. Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2016 26 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents 5,126,814$ 20,070,784$ 5,453$ 25,203,051$ Liabilities Due to Collier County, Florida Board of County Commissioners 328,284$ -$ -$ 328,284$ Due to other governments 760,446 - 5,453 765,899 Deposits 4,038,084 20,070,784 - 24,108,868 Total liabilities 5,126,814$ 20,070,784$ 5,453$ 25,203,051$ CliftonLarsonAllen LLP CLAconnect.com 27 INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the 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, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements, and have issued our report thereon dated January 18, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Clerk’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Dwight E. Brock Clerk of the Circuit Court 28 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 CliftonLarsonAllen LLP CLAconnect.com 29 MANAGEMENT LETTER Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30, 2016 and have issued our report thereon dated January 18, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Independent Auditors’ Report on 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 and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 18, 2017, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Dwight E. Brock Clerk of the Circuit Court 30 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 CliftonLarsonAllen LLP CLAconnect.com 31 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of court performance standards and budgets, during the year ended September 30, 2016. Management is responsible for the Clerk’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk’s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 THIS PAGE INTENTIONALLY LEFT BLANK Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Notes to Financial Statements .......................................................................................................6 Other Reports Independent Auditors’ Report on 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 ................................................................21 Management Letter ........................................................................................................................25 Independent Accountants’ Report ..................................................................................................28 CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Honorable Abe Skinner Property Appraiser 2 Opinion In our opinion, the 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, 2016, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report 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 included under the heading Independent Auditors’ Report on 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. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2016 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 839,955$ Total assets 839,955$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 57,300$ Due to Collier County, Florida Board of County Commissioners 706,795 Due to other taxing districts 75,860 Total liabilities 839,955 Fund balance - Total liabilities and fund balance 839,955$ Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 6,777,902$ Miscellaneous 866,136 Interest 5,832 Total revenues 7,649,870 Expenditures: General government: Personal services 5,349,372 Operating 1,508,639 Capital outlay 9,204 Total expenditures 6,867,215 Excess of revenues over expenditures 782,655 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (706,795) Distribution of excess fees and commissions to other governmental agencies (75,860) Total other financing uses (782,655) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$ Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 6,777,902$ 6,777,902$ 6,777,902$ -$ Interest Revenue - - 5,832 5,832 Miscellaneous - - 866,136 866,136 Total revenues 6,777,902 6,777,902 7,649,870 871,968 Expenditures: General government: Personal services 5,271,569 5,271,569 5,349,372 (77,803) Operating 1,481,333 1,481,333 1,508,639 (27,306) Capital outlay 25,000 25,000 9,204 15,796 Total expenditures 6,777,902 6,777,902 6,867,215 (89,313) Excess of revenues over expenditures - - 782,655 782,655 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (706,795) (706,795) Distribution of excess commissions and fees to other governmental agencies - - (75,860) (75,860) Total other financing uses - - (782,655) (782,655) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 6 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser’s total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser’s office. The Property Appraiser’s financial statements include only the funds of the Property Appraiser’s office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, 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 financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 7 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 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 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 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 liabilities of the current 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 certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser’s revenue is received from taxing authorities. These monies 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. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. 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. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 8 1. Summary of Significant Accounting Policies (continued) Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board 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 other financing use-transfer out in the accompanying financial statements. 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 Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave 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 and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the 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 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 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. 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. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 10 2. Budgetary Process (continued) During the year, the Property Appraiser exceeded the budgeted amount for operating expenditures mainly as a result of other contractual services which were not expected at the time of the budget preparation. These budget overages were partially offset by budget savings in the personnel services category. 3. Cash At September 30, 2016, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 839,830 Total cash 839,955$ Type Custodial Credit Risk At September 30, 2016, 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. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 11 3. Cash (continued) 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 Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly 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 recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds 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 financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 12 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2016: October 1, September 30, 2015 Additions Deductions 2016 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,682,110 9,204 141,641 1,549,673 Total capital assets 1,697,442 9,204 141,641 1,565,005 Less accumulated depreciation (1,368,063) (98,658) (141,641) (1,325,080) Total capital assets, net 329,379$ (89,454)$ -$ 239,925$ 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, September 30, 2015 Increase Decrease 2016 Accrued compensated absences 330,282$ 342,551$ 318,700$ 354,133$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 13 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 14 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 15 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 17 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 18 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser’s employer contributions to the plan for the years ended September 30, 2016, 2015 and 2014, were $451,635, $377,140, and $315,882, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Property Appraiser follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description The Property Appraiser 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 financial statements of Collier County, Florida (the County). Under Florida Statutes, retirees originally hired prior to July 1, 2011 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Property Appraiser provides no subsidy to the retiree, or their dependents, for group health care. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 19 7. Other Postemployment Healthcare 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Property Appraiser had a net OPEB obligation of $50,327 as of September 30, 2016. 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 November 2013. 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 year ended September 30, 2016, the Board paid fees to the Property Appraiser that amounted to $6,120,340. At September 30, 2016, the Property Appraiser had a payable due to the Board of $706,795, respectively, comprised as follows: Distribution of excess commissions and fees 706,795$ 9. Risk Management Collier County, Florida (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 Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2016, the Property Appraiser was charged $1,044,773 by the County for participation in the risk management program. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 20 9. Risk Management (continued) The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 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 $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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 self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a 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. CliftonLarsonAllen LLP CLAconnect.com 21 INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the 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, the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements, and have issued our report thereon dated January 12, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, described below as item 2016-002, that we consider to be a material weakness. Honorable Abe Skinner Property Appraiser 22 2016-002 – Audit Adjustment Criteria The Property Appraiser is responsible for ensuring the accuracy of the financial statements. Condition A material audit adjustment was required to correct revenue, expenditures, and fund balance. Cause An erroneous entry was recorded to net revenue and expenditures for the amount that the Property Appraiser was over budget for the year. Effect Revenue and expenditures were understated. Recommendation We recommend that management and the Property Appraiser review the financial information to ensure the no journal entries are prepared that net revenue and expenditure items. View of Responsible Officials and Planned Corrective Actions Management agrees that the entry needed to be corrected. Management has put processes into place to ensure that all entries are reviewed for accuracy and approved. Honorable Abe Skinner Property Appraiser 23 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described below as item 2016-001. 2016-001 – Budget Criteria Florida Statutes 195.087 (1)(a) requires the Property Appraiser to submit a budget for operation of the Property Appraiser’s office for the fiscal year to the Florida Department of Revenue (DOR) for review and approval. Total expenditures should not exceed the total appropriations as approved by DOR. Condition The Property Appraiser’s total expenditures exceeded its final approved total appropriations. Cause A budget amendment was not submitted prior to the expenditure of additional amounts for capital outlay. Effect The Property Appraiser expended $89,313 in excess of final approved appropriations. Recommendation We recommend that management and the Property Appraiser periodically review budget to actual reports to determine if the Property Appraiser is adhering to its adopted budget. If circumstances arise that will cause the Property Appraiser to incur total expenditures in excess of approved total appropriations, the Property Appraiser should first submit a budget amendment to the DOR. View of Responsible Officials and Planned Corrective Actions Management encountered some unexpected expenses, such as increased insurance and a billing form FRS did not file a budget amendment. Management has added the budget to the accounting software to allow budget to actual to be monitored in a timely fashion. Property Appraiser’s Response to Findings The Property Appraiser’s responses to the findings identified in our audit are described previously. The Property Appraiser’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Honorable Abe Skinner Property Appraiser 24 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 CliftonLarsonAllen LLP CLAconnect.com 25 MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2016, and have issued our report thereon dated January 12, 2017. Auditors’ Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports We have issued our Independent Auditors’ Report on 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 and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 12, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of significant finding and recommendations made in the preceding financial audit report are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. Honorable Abe Skinner Property Appraiser 26 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with out audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 COLLIER COUNTY, FLORIDA PROPERTY APPRAISER MANAGEMENT LETTER SEPTEMBER 30, 2016 27 APPENDIX A – PRIOR YEAR FINDINGS AND RECOMMENDATIONS Cleared Partially Cleared Not Cleared Compliance X Current Year Status Prior Year Findings 2015-001 Budget Current year comment 2016-001 Budget CliftonLarsonAllen LLP CLAconnect.com 28 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County, Florida Property Appraiser’s (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Property Appraiser’s compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Property Appraiser’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser’s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget (Non-GAAP) and Actual – General Fund ........................................................................6 Statement of Net Position – Internal Service Fund ..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund ....................................................................................................................8 Statement of Cash Flows – Internal Service Fund ...........................................................................9 Statement of Fiduciary Net Position – Agency Funds ...................................................................10 Notes to Financial Statements ........................................................................................................11 Required Supplementary Information Schedule of Funding Progress for the Retiree Health Plan............................................................35 Combining Financial Information Combining Statement of Fiduciary Net Position – Agency Funds ................................................36 Combining Statement of Changes in Assets and Liabilities – Agency Funds ...............................37 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2016 Contents (continued) Other Reports Independent Auditors’ Report on 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....................................................................38 Management Letter ........................................................................................................................40 Schedule of Findings and Responses .............................................................................................42 Independent Accountants’ Report ..................................................................................................44 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................45 THIS PAGE INTENTIONALLY LEFT BLANK 1 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Sheriff’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Kevin Rambosk Sheriff 2 Opinions In our opinion, the 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 for the Sheriff as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress for the Retiree Health Plan, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Honorable Kevin Rambosk Sheriff 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff’s financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2016 on our consideration of the Sheriff’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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 Collier County, Florida Sheriff Balance Sheet – Governmental Funds September 30, 2016 See accompanying Notes to Financial Statements. 4 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Welfare SharingFunds TotalAssetsCash and cash equivalents 7,920,755$ 424,490$ 1,558,640$ 879,204$ –$ 10,783,089$ Accounts receivable 42,862 – – – – 42,862 Due from other funds 3,650,206 – 25,000 – – 3,675,206 Due from other governments 25,718 76,882 – – – 102,600 Due from Collier County, Florida Board ofCounty Commissioners 8,130 88,513 – – 84,924 181,567 Total assets 11,647,671$ 589,885$ 1,583,640$ 879,204$ 84,924$ 14,785,324$ Liabilities and fund balancesLiabilities:Accounts payable 2,430,915$ 27,510$ 6,242$ 5,558$ 43,363$ 2,513,588$ Accrued expenses 9,179,329 – – – – 9,179,329 Due to other funds 2,000 – 32,518 10,619 41,561 86,698 Due to Collier County, Florida Board ofCounty Commissioners 35,427 – – – – 35,427 Unearned revenue– 39,414 – – – 39,414 Total liabilities 11,647,671 66,924 38,760 16,177 84,924 11,854,456 Fund balances:Restricted– 522,961 1,544,880 863,027 – 2,930,868 Total liabilities and fund balances 11,647,671$ 589,885$ 1,583,640$ 879,204$ 84,924$ 14,785,324$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Welfare SharingFunds TotalRevenues:Grant revenue–$ 1,225,477$ –$ –$ –$ 1,225,477$ Charges for services 1,426,310 – 863,025 – – 2,289,335 Interest income– 1,483 3,756 2,157 – 7,396 Other revenue– – – 82,486 – 82,486 Total revenues 1,426,310 1,226,960 866,781 84,643 – 3,604,694Expenditures:General government:Personal services 3,837,585 – – – – 3,837,585 Operating expenditures 105,749 – – – – 105,749 Capital outlay24,969 – – – – 24,969 Public safety:Personal services 119,108,879 639,864 228,444 – 941,622 120,918,809 Operating expenditures 21,903,054 196,904 141,052 81,893 1,504,975 23,827,878 Capital outlay9,274,962 86,188 – – 408,161 9,769,311 Debt Service - principal 560,283 – – – – 560,283 Debt Service - interest 57,429 – – – – 57,429 Total expenditures 154,872,910 922,956 369,496 81,893 2,854,758 159,102,013Excess (deficiency) of revenues over (under) expenditures (153,446,600) 304,004 497,285 2,750 (2,854,758) (155,497,319)Other financing sources (uses):Transfers in:Collier County, Florida Board of County Commissioners appropriations 152,607,400 – – – – 152,607,400 Collier County, Florida Board of County Commissioners 867,135 – – – 2,854,758 3,721,893 Transfers out:Distribution of excess appropriations to Collier County,Florida Board of County Commissioners(27,935) – – – – (27,935) Total other financing sources 153,446,600 – – – 2,854,758 156,301,358Net change in fund balances– 304,004 497,285 2,750 – 804,039 Fund balances – beginning of year– 218,957 1,047,595 860,277 – 2,126,829 Fund balances – end of year–$ 522,961$ 1,544,880$ 863,027$ –$ 2,930,868$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 6 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services –$ 1,305,000$ 1,426,310$ 121,310$ Expenditures: General government: Personal services 3,689,800 3,689,800 3,837,585 (147,785) Operating expenditures 167,400 167,400 105,749 61,651 Capital outlay – – 24,969 (24,969) Public safety: Personal services 122,420,600 123,653,600 119,108,878 4,544,722 Operating expenditures 23,612,700 23,684,700 21,903,054 1,781,646 Capital outlay 2,716,900 2,716,900 9,025,540 (6,308,640) Total expenditures 152,607,400 153,912,400 154,005,775 (93,375) Excess of expenditures over revenues (152,607,400) (152,607,400) (152,579,465) 27,935 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 152,607,400 152,607,400 152,607,400 – Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (27,935) (27,935) Total other financing sources 152,607,400 152,607,400 152,579,465 (27,935) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year –$ –$ –$ –$ Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2016 See accompanying Notes to Financial Statements. 7 Assets Cash and cash equivalents 3,795,984$ Investments 7,887,137 Due from other funds 2,000 Interest receivable 11,531 Total assets 11,696,652 Liabilities: Self insurance claims payable 2,379,000 Due to other funds 3,554,292 Net other postemployment benefit obligation 2,612,863 Total liabilities 8,546,155 Net position: Unrestricted 3,150,497 Total net position 3,150,497$ Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 8 Operating revenues: 20,046,310$ Operating expenses: 21,035,931 981,425 Net other postemployment benefit expense 444,764 263,656 22,725,776 (2,679,466) Nonoperating revenues: 69,114 Realized loss on sale of investments (76,811) Increase in fair value of investments 45,191 Total nonoperating revenues 37,494 (2,641,972) Net position – beginning of year 5,792,469 Net position – end of year 3,150,497$ Interest income, net of management fees Change in net position Reinsurance premiums Administrative and other expenses Total operating expenses Operating loss Charges for services Claims and claims expenses Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 9 Operating activities (20,600,363)$ (981,425) (263,656) 22,700,000 900,602 1,755,158 Investing activities 57,583 Purchase of securities (9,240,161) Proceeds from sales of securities 9,050,000 (132,578) 1,622,580 Cash, cash equivalents, and investments – beginning of year 2,173,404 Cash, cash equivalents, and investments – end of year 3,795,984$ Reconciliation of operating loss to net cash (2,679,466)$ 45,012 3,735,848 Increase in net other postemployment benefit obligation 444,764 209,000 1,755,158$ Adjustments to reconcile operating loss to Operating loss Cash payments for reinsurance premiums Cash payments for claims and claims related services Cash payments for administrative services and supplies Cash received from other funds for services provided by operating activities Net cash provided by operating activities Cash received from retirees for services Net increase in cash, cash equivalents, and investments Interest earnings, net of management fees Net cash used by investing activities Net cash provided by operating activities net cash used by operating activities: Decrease in other receivables Increase in due to/from other funds Increase in self-insurance claims payable Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2016 See accompanying Notes to Financial Statements. 10 Cash and cash equivalents 628,987$ Due from individuals and businesses 1,618 630,605$ Due to other funds 70,034$ Due to Collier County, Florida 25,703 Due to individuals and businesses 534,868 630,605$ Total liabilities Liabilities Board of County Commissioners Assets Total assets Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 11 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (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 Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County’s corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and agency funds of the Sheriff’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General - 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 financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2016 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 accounting principles generally accepted in the United States of America. 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. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 12 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from 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 annually; therefore, no unappropriated general fund balance is carried forward. The 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 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 liabilities of the current 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, money 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. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue 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. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 13 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund – The general fund is used to account for the general operations of the 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 from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. The Sheriff also has the following non-major funds: Reported as Other Non-major Special Revenue Funds Confiscated Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 14 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Civil Citation – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911 – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training – Criminal Justice Education and Training – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. 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 flows. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 15 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida Prime, an investment pool administered by the State Board of Administration (“SBA”), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff’s position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2016, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 27.6% of Florida PRIME’s portfolio at September 30, 2016. In accordance with GASB 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory council. The Trustees shall convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 16 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments (continued) With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2016, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. 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 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 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 the Sheriff 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 for the County. Use of Estimates The preparation of the 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 financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 17 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2016. Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Sheriff’s fund balances for the grant special revenue fund, prisoner welfare fund and federal equitable sharing fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 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 for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from capital leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 18 2. Budgetary Process (continued) The differences between the budgetary basis and the GAAP basis for the General Fund budget as discuss above are as follows: Total expenditures - budgetary basis 154,005,775$ Expenditures not budgeted: Expenditures for multi-period projects that are not budgeted 867,135 Total expenditure - GAAP basis 154,872,910$ Total other financing sources (uses) - budgetary basis 152,579,465$ Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)867,135 Total other financing sources (uses) - GAAP basis 153,446,600$ This space intentionally left blank Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 19 3. Cash, Cash Equivalents and Investments At September 30, 2016, the carrying value of the Sheriff’s cash, cash equivalents and investments was as follows: Type Maturity Carrying Value Credit Rating * Cash on hand N/A 18,529$ N/A Demand deposits N/A 14,339,347 N/A Money Market N/A 103,887 Not rated Local government surplus funds trust fund: Florida Prime N/A 746,297 AAAm Total cash and cash equivalents 15,208,060$ Treasury Note 2/2/2017 899,001 AA+ Treasury Note 3/2/2017 998,480 AA+ Treasury Note 4/27/2017 1,196,808 AA+ Treasury Note 8/17/2017 895,608 AA+ Federal Home Loan Mortgage Corp. 10/18/2016 500,990 AA+ Federal Home Loan Mortgage Corp. 1/11/2017 1,698,725 AA+ Federal Home Loan Mortgage Corp. 7/18/2017 497,920 AA+ Federal National Mortgage Association 12/14/2016 200,895 AA+ Federal Home Loan Bank 2/21/2017 998,710 AA+ Total Investments 7,887,137 Total cash, cash equivalents, and investments 23,095,197$ * Standard & Poor's The total cash, cash equivalent and investments balances at September 30, 2016, were as follows: General fund 7,920,755$ Grant special revenue fund 424,490 Prisoner welfare fund 1,558,640 Federal equitable sharing fund 879,204 Internal service fund 11,683,121 Agency funds 628,987 Total cash, cash equivalents, and investments 23,095,197$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 20 3. Cash, Cash Equivalents and Investments (continued) Custodial Credit Risk At September 30, 2016, the Sheriff’s demand 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. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET’s policy required execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff’s name. Credit Risk The Sheriff’s policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff’s Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2016, the Sheriff had $746,297 invested in Florida Prime. Florida Prime is rated “AAAm” by Standard & Poor’s Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 21 3. Cash, Cash Equivalents and Investments (continued) Concentration of Credit Risk The Sheriff’s investments are included in the internal service fund which is used to account for the Sheriff’s self-insured health plan. The Florida Sheriff’s Multiple Employer Trust (FSMET) administers the investments for the Sheriff’s self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month’s required funding by more than $100,000. Investments can be made in government securities. The Sheriff’s portfolio managed by FSMET includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSMET and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff’s portfolio invested in FSMET is detailed as follows, at September 30, 2016: % of Portfolio Federal Home Loan Mortgage Corp. 34% Federal National Mortgage Association 3% Federal Home Loan Bank 12% Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2016: U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 22 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 the County. 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 expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2015 Additions Reclassifications 2016 Governmental Activities Capital assets not depreciated: Construction in Progress 1,370,437$ 1,099,145$ (193,260)$ 2,276,323$ Total capital assets not depreciated 1,370,437 1,099,145 (193,260) 2,276,323 Capital assets depreciated : Machinery and equipment 70,929,578 9,916,398 (5,966,230) 74,879,746$ Total capital assets depreciated 70,929,578 9,916,398 (5,966,230) 74,879,746 Less accumulated depreciation: Machinery and equipment (58,894,794) (6,585,526) 5,911,178 (59,569,142)$ Total Accumulated depreciation (58,894,794) (6,585,526) 5,911,178 (59,569,142) Total Depreciable capital assets, net 12,034,784 3,330,872 (55,052) 15,310,604 Total Governmental Activities capital assets, net 13,405,221$ 4,430,017$ (248,312)$ 17,586,927$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 23 5. Long-Term Liabilities The Sheriff has entered into certain capital lease agreements under which the related equipment will become the property of the Sheriff’s Office when all terms of the lease agreements are met. Stated Interest Rate Present Value of Remaining Payments as of September 30, 2016 Governmental fund activities: Vehicles and related equipment 4.50% 545,766$ Telephone system 4.82% 238,107 Total Capital Lease Obligations 783,873$ Equipment and related accumulated depreciation under capital leases are as follows: Governmental Activities Equipment 1,926,980$ Less: accumulated depreciated (767,721) Net Value 1,159,259$ As of September 30, 2016, capital lease annual amortization are as follows: Year ending September 30: Governmental Activities 2017 633,509$ 2018 63,185 2019 63,185 2020 63,185 2021 10,531 Total minimum lease payments 833,595 Less: amount representing interest (49,722) Present value of remaining payments 783,873$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 24 5. Long-Term Liabilities (continued) 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, Deductions/ September 30, 2015 Additions Reclassifications 2016 Capital lease agreements 1,344,157$ -$ (560,284)$ 783,873$ Compensated Absences 12,443,462 6,174,965 (2,169,131) 16,449,296 Total 13,787,619$ 6,174,965$ (2,729,415)$ 17,233,169$ Of these liabilities, approximately $1,160,000 is expected to be paid during the fiscal year ending September 30, 2016. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2016, were as follows: Due From Due To General fund 3,650,206$ 2,000$ Prisoner welfare fund 25,000 32,518 Federal equitable sharing fund - 10,619 Other non-major special revenue funds - 41,561 Internal service fund 2,000 3,554,292 Agency funds - 36,216 Total 3,677,206$ 3,677,206$ Interfund receivables and payables generally represent recurring activities between funds. 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $156,329,293. At September 30, 2016, the Sheriff had a payable due to the Board of $61,130 comprised of the following: General fund: Distribution of excess appropriations $ 27,935 Distribution of interest collected 6,787 Miscellaneous payables 705 Agency funds 25,703 Total $ 61,130 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 25 7. Related-Party Transactions (continued) Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $181,567 at September 30, 2016. Agency Funds The Sheriff’s Office administers funds for the Collier County Sheriff’s Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 26 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 27 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in- line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 28 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 29 8. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff’s contributions made to the plans during the years ended September 30, 2016, 2015, and 2014 were $15,023,011, $13,341,786, and $12,767,042, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 30 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). Plan Description The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for of retirees who have six 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 both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s 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, 2016, the date of the latest actuarial valuation, the Sheriff’s plan participation consisted of: OPEB plan participants 1,105 Retirees receiving benefits 106 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay as you go basis. For the year ended September 30, 2016, the Sheriff contributed $818,021 to the OPEB Plan. The annual other postemployment benefit cost for the plan 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 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 as of October 1, 2016. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 31 9. Other Postemployment Benefits (continued) Annual OPEB Cost and Net OPEB Obligation The annual cost (expense) of the Sheriff’s OPEB Plan is calculated based on the ARC. The following table shows the components of the Sheriff’s annual OPEB Plan cost for the year ended September 30, 2016, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 1,305,135 Interest on net OPEB obligation 65,043 Adjustment to annual required contribution (107,393) Annual OPEB cost (expense) 1,262,785 Contributions made (818,021) Increase in net OPEB obligation (asset) 444,764 Net OPEB obligation – beginning of year 2,168,099 Net OPEB obligation (asset) – end year $ 2,612,863 No trust or agency fund has been established for the plan. The Sheriff’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended September 30, 2016 and the preceding years were as follows: Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPEB Cost Cost Contributed Obligation September 30, 2016 September 30, 2015 September 30, 2014 $ 1,262,785 $ 1,229,237 $ 1,112,653 64% 60% 70% $ 2,612,863 $ 2,168,099 $ 1,681,238 Funded Status and Funding Progress As of the September 30, 2016 actuarial valuation date, the OPEB Plan was 0% funded, the actuarial accrued liability for benefits was $15,684,350, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $15,684,350. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was approximately $122.9 million, and the ratio of the UAAL to the covered payroll was 12.8%. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 32 9. Other Post Employment Benefits (continued) Funded Status and Funding Progress (continued) The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Projected Unit Credit Method Amortization method Closed Amortization period 30 years, Level Dollar Amount The actuarial assumptions are: Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 8% for the 2016 fiscal year grading to an ultimate rate of 5% for the 2023 fiscal year Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 33 10. Self-Insurance Program The Sheriff’s Office participates in the Statewide Florida Sheriff’s 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: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers’ compensation coverage. The Florida Sheriffs Workers’ Compensation Self Insurance Program is a self-insurance program providing coverage for the first $500,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $10,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. 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 self-insured risks are reported in the basic financial statements of the 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 any one incident exceeding $200,000. In FY15 there was one covered member who had a deductible amount of $450,000 because of a history of high claims. Specific claim excess coverage for this individual was for claims exceeding $450,000. The maximum annual individual stop loss payment amount is unlimited. 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 yet reported. The Sheriff’s Office uses a Third-Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2016 and 2015 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2015 $ 2,078,000 $ 15,167,000 $ (19,415,000) $ 2,170,000 2016 $ 2,170,000 $ 16,473,000 $ (21,022,000) $ 2,379,000 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 34 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. Collier County, Florida Sheriff Schedule of Funding Progress for the Retiree Health Plan September 30, 2016 35 `Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) – Percentage of Valuation Value of Projected Unfunded Funded Covered Covered Date Assets Unit Credit AAL Ratio Payroll Payroll 10/1/2014 –$ 14,207,209$ 14,207,209$ 0.0% 112,902,749$ 12.6% 10/1/2015 –$ 15,133,114$ 15,133,114$ 0.0% 117,563,839$ 12.9% 10/1/2016 –$ 15,685,350$ 15,685,350$ 0.0% 122,939,572$ 12.8% Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2016 36 TotalCivil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers FundsCash and cash equivalents 37,822$ 230,157$ 212,096$ 132,407$ 16,505$ 628,987$ Due from individuals and businesses – – – 1,618 – 1,618 37,822$ 230,157$ 212,096$ 134,025$ 16,505$ 630,605$ Due to other funds –$ –$ –$ 36,216$ –$ 36,216$ Due to Collier County, Florida Board16,150 – – 9,553 – 25,703 Due to individuals and businesses 21,672 230,157 212,096 88,256 16,505 568,686 37,822$ 230,157$ 212,096$ 134,025$ 16,505$ 630,605$ Total liabilitiesAssetsLiabilitiesTotal assetsof County Commissioners Collier County, Florida Sheriff Combining Statement of Changes in Assets and Liabilities – Agency Funds Year Ended September 30, 2016 37 October 1, September 30, 2015 Additions Deletions 2016AssetsCash and cash equivalents 566,302$ 628,987$ (566,302)$ 628,987$ Due from individuals and businesses 14,388 1,618 (14,388) 1,618 Total assets 580,690$ 630,605$ (580,690)$ 630,605$ LiabilitiesDue to other funds 36,232$ 36,216$ (36,232)$ 36,216$ Due to Collier County, Florida Boardof County Commissioners 28,991 25,703 (28,991) 25,703 Due to individuals and businesses 515,467 568,686 (515,467) 568,686 Total liabilities 580,690$ 630,605$ (580,690)$ 630,605$ CliftonLarsonAllen LLP CLAconnect.com 38 INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the 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, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated December 20, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Sheriff’s internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Kevin Rambosk Sheriff 39 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 CliftonLarsonAllen LLP CLAconnect.com 40 MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2016 and have issued our report thereon dated December 20, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Schedule of Findings and Responses; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated December 20, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Kevin Rambosk Sheriff 41 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we made recommendations as listed in the following schedule of findings and responses. The Sheriff’s responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The Sheriff’s responses were not subjected to the auditing procedures applied in the audit and, accordingly, we express no opinion on the responses. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 Collier County, Florida Sheriff Schedule of Findings and Responses September 30, 2016 42 Current Year Findings and Recommendations MLC 2016-001 User Access Rights Criteria: Employee access rights to the system applications should be restricted to not include conflicting duties. Additionally, terminated employees should be removed from the system in a timely manner. Condition: During the audit, CLA noted that fiscal payroll clerk user rights were not properly restricted for adding new employees. Additionally, two terminated employees had access rights that were not disabled/deleted timely. Effect: There is an increased risk that access and user rights are inappropriately granted and are not appropriately restricted which could cause a lack of segregation of duties within the control environment of the Sheriff. Additionally, the IT department does not have a process in place to ensure a terminated employee’s rights are disabled/deleted in a timely manner. This results in increased security risk and to network vulnerabilities. Recommendation: The IT department should ensure that individuals are not granted conflicted access to the system and are appropriately restricted. Additionally, the IT department should develop a process to ensure terminated employees are removed from access to the system in a timely manner. Management’s Response: User rights for fiscal payroll clerks have been reviewed and modified so new employees can no longer be added. Access rights to the finance system are periodically updated by the IT department to disable/delete terminated employees. It should be noted that when any employee is terminated from the agency, their network login (primary login for access to any agency programs) is disabled by the IT department upon the member’s termination. Members cannot access any agency programs unless they are using any agency issued desktop or laptop computer. While the finance program access for the two noted employees was not immediately disabled, their network login was disabled upon their termination. This would have made it extremely difficult for either of them to access the finance program as they would have had to have access to an agency computer which had the finance program installed, and which another member was logged on to the network. Measures have been put in place to disable/delete a member’s access to finance programs when their employment has been terminated. Collier County, Florida Sheriff Schedule of Findings and Responses September 30, 2016 43 MLC 2016-002 E911 Expenditures Criteria: Florida Statutes Section 365.172 defines allowable expenditures for E911 funding. Condition: During the audit, CLA noted unallowable expenditures consisting of $12,361 of promotional items, $703 of auto insurance and $963 liability insurance that were paid from E911 funds. Effect: The Sheriff did not comply with the restrictions on the use of E911 funding and monitoring procedures over the use of E911 funds and did not identify the issue. Recommendation: Sheriff personnel should become familiar with and develop a clear understanding of the allowable expenditures under E911 funding and develop tools to assist in the effective monitoring of restrictions under this funding. Management’s Response: Measures have been put in place to thoroughly review any expenditures under E911 funding to ensure they are appropriate and in accordance with Florida Statute 365.172. CliftonLarsonAllen LLP CLAconnect.com 44 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff’s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Sheriff's compliance with those requirements. Our responsibility is to express an opinion on the Sheriff's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriff’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff’s compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 CliftonLarsonAllen LLP CLAconnect.com 45 INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES 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 (Sheriff), solely to assist you in evaluating the procedures and policies as defined by the Sheriff over its investigative funds for the year ended September 30, 2016. The Sheriff’s management is responsible for the Sheriff’s 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, 2016 (the population sampled from included transactions from October 1, 2015 through September 30, 2016), and performed the following procedures with respect to the Sheriff’s policies and procedures over investigative funds: 1. We obtained the “Disbursement for Investigation” form and observed that the form was properly completed and authorized by appropriate personnel. 2. We obtained the “Purchase of Evidence/Information Voucher” and observed 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. 3. We observed that the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed that the amount deposited agreed to the amount returned per the “Receipt for Funds Received” form detail. Honorable Kevin Rambosk Sheriff 46 We were not engaged to, and did not, conduct an audit or 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. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General Fund ..................................................................................................................5 Notes to Financial Statements ..........................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards ..............................................21 Management Letter ........................................................................................................................23 Independent Accountants’ Report ..................................................................................................25 1 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the entity’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Jennifer J. Edwards Supervisor of Elections 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2016, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 11, 2017 on our consideration of the Supervisor’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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisors’ internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2016 See accompanying Notes to Financial Statements 3 Grant General Special Total Fund Revenue 2016 Assets Cash and cash equivalents 166,741$ -$ 166,741$ Accounts receivable 281 - 281 Total assets 167,022$ -$ 167,022$ Liabilities and fund balance Liabilities: Accounts payable 30,203$ -$ 30,203$ Accrued liabilities 91,107 - 91,107 Due to Collier County, Florida Board of County Commissioners 45,712 - 45,712 Total liabilities 167,022 - 167,022 Fund balances: Restricted - - - Total fund balances - - - Total liabilities and fund balance 167,022$ -$ 167,022$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2016 See accompanying Notes to Financial Statements 4 Grant General Special Total Fund Revenue 2016 Revenues: Intergovernmental -$ 33,116$ 33,116$ Interest - 39 39 Total revenues - 33,155 33,155 Expenditures: General government: Personal services 2,078,651 - 2,078,651 Operating 1,750,761 38,882 1,789,643 Capital outlay 119,009 - 119,009 Total expenditures 3,948,421 38,882 3,987,303 Excess (deficiency) of expenditures over revenues (3,948,421) (5,727) (3,954,148) Other financing sources (uses): Transfers in: General Fund - 4,727 4,727 Collier County, Florida Board of County Commissioners appropriations 3,994,700 - 3,994,700 Transfers out: Special revenue fund (4,727) - (4,727) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (41,552) - (41,552) Total other financing sources (uses) 3,948,421 4,727 3,953,148 Net change in fund balance - (1,000) (1,000) Fund balance – beginning of the yea r - 1,000 1,000 Fund balance – end of the year -$ -$ -$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues -$ -$ -$ -$ Expenditures: General government: Personal services 2,209,400 2,104,400 2,078,651 25,749 Operating 1,679,300 1,766,437 1,750,761 15,676 Capital outlay 106,000 119,136 119,009 127 Total expenditures 3,994,700 3,989,973 3,948,421 41,552 Excess (deficiency)of expenditures over revenues (3,994,700) (3,989,973) (3,948,421) 41,552 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,994,700 3,994,700 3,994,700 - Transfers out: Special Revenue Fund - (4,727) (4,727) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (41,552) (41,552) Total other financing sources (uses) 3,994,700 3,989,973 3,948,421 (41,552) Net change in fund balance - - - - Fund balance – beginning of the year - - - - Fund balance – end of the year -$ -$ -$ -$ Budget Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 6 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor’s office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the SOE are funded by appropriations from the Collier County, Florida Board of County Commissioners (BOCC), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the SOE’s general fund. The special revenue fund of the SOE is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 7 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. 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 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 Supervisor has the following major governmental funds: General Fund – The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund – The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by 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 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 considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 8 1. Summary of Significant Accounting Policies (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 revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. 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 Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor 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. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2016. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor’s fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 10 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor’s annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor’s total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor 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. 3. Cash and Cash Equivalents At September 30, 2016, the carrying value of the Supervisor’s cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand $ 200 N/A Demand deposits 166,541 N/A Total cash and cash equivalents $ 166,741 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 11 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2016, the Supervisor’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. Credit Risk The Supervisor’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 Supervisor to invest in Florida PRIME (formerly 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 recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. 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 Supervisor has no specific investment policy regarding interest rate risk. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 12 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor 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 Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2015 Additions Deductions 2016 Machinery and equipment 1,113,822$ 119,009$ (39,589)$ 1,193,242$ Less accumulated depreciation (955,377) (73,164) 39,589 (988,952)$ Machinery and equipment, net 158,445$ 45,845$ -$ 204,290$ 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, September 30, 2015 Increase Decrease 2016 Accrued compensated absences $ 155,737 $ 106,140 $ 61,167 $ 200,710 Of these liabilities, approximately $78,277 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 13 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 14 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 15 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 17 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor’s contributions made to the plans during the years ended September 30, 2016, 2015 and 2014, were $114,600, $106,131 and $103,864, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 18 7. Related-Party Transactions For the year ended September 30, 2016, the Board provided funding for the Supervisor that amounted to $3,994,700. At September 30, 2016, the Supervisor had a payable due to the Board of $45,712 comprised as follows: Distribution of excess appropriations $ 41,552 Distribution of interest earnings 2,909 Amounts due for various services 1,251 Total due to Board of County Commissioners $ 45,712 8. Risk Management Collier County, Florida (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 Supervisor participates in the County’s self-insurance program. During the year ended September 30, 2016, the Supervisor was charged $293,099 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 19 8. 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 $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Healthcare Benefits (OPEB) Plan The Supervisor follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description The SOE 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 financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011, 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) are also eligible to participate in the medical plan. The Supervisor 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Supervisor had a net OPEB obligation of $18,147 as of September 30, 2016. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 20 9. Other Postemployment Healthcare 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 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 November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 10. Contingencies Grant funds received by the Supervisor 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. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor’s grants. Transfers were required in the amount of $4,727 for the year ending September 30, 2016. 21 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the 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, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated January 11, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Supervisor’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Jennifer J. Edwards Supervisor of Elections 22 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 23 CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2016 and have issued our report thereon dated January 11, 2017. Auditors’ Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 11, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Jennifer J. Edwards Supervisor of Elections 24 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 25 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections’ (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Supervisor’s compliance with those requirements. Our responsibility is to express an opinion on the Supervisor's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Supervisor’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor’s compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 THIS PAGE INTENTIONALLY LEFT BLANK Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2016 and 2015 Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2016 and 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheets – General Fund ....................................................................................................3 Statements of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Statements of Fiduciary Net Position – Agency Funds ................................................................6 Notes to Financial Statements .......................................................................................................7 Other Reports Independent Auditors’ Report on 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 ................................................................25 Management Letter ........................................................................................................................27 Independent Accountants’ Report ..................................................................................................29 CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Larry H. Ray Tax Collector 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2016 and 2015, and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2016, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2016 and 2015, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statement is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 5, 2017 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 included under the heading Independent Auditors’ Report on 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. 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 Collier County, Florida Tax Collector Balance Sheets – General Fund See accompanying Notes to Financial Statements. 3 2016 2015 Assets Cash and cash equivalents 7,643,628$ 7,118,870$ Due from other funds 70,902 64,735 Prepaid rent 26,796 30,789 Prepaid expense - 19,780 Security deposit 4,628 4,628 Total assets 7,745,954$ 7,238,802$ Liabilities and fund balance Liabilities: Accounts payable 17,329$ 40,242$ Due to Collier County, Florida Board of County Commissioners 6,865,518 6,364,300 Due to other governmental agencies 863,107 834,260 Total liabilities 7,745,954 7,238,802 Fund balance - - Total liabilities and fund balance 7,745,954$ 7,238,802$ September 30, Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance General Fund See accompanying Notes to Financial Statements. 4 2016 2015 Revenues: Commissions and fees 19,579,160$ 18,285,749$ Miscellaneous 277,346 254,225 Total revenues 19,856,506 18,539,974 Expenditures: General government: Personal services 10,126,106 9,708,288 Operating 1,675,462 1,587,856 Capital outlay 326,313 45,270 Total expenditures 12,127,881 11,341,414 Excess of revenues over expenditures 7,728,625 7,198,560 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,865,518) (6,364,300) Distribution of excess commissions and fees to other governmental agencies (863,107) (834,260) Total other financing uses (7,728,625) (7,198,560) Net change in fund balance - - Fund balance, beginning of year - - Fund balance, end of year -$ -$ Year Ended September 30, Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 18,975,914$ 18,975,914$ 19,579,160$ 603,246$ Miscellaneous 248,857 248,857 277,346 28,489 Total revenues 19,224,771 19,224,771 19,856,506 631,735 Expenditures: General government: Personal services 10,603,138 10,603,138 10,126,106 477,032 Operating 1,837,174 1,871,366 1,675,462 195,904 Capital outlay 296,600 346,930 326,313 20,617 Total expenditures 12,736,912 12,821,434 12,127,881 693,553 Balance of revenues over expenditures 6,487,859 6,403,337 7,728,625 1,325,288 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (5,763,317) (5,688,234) (6,865,518) (1,177,284) Distribution of excess commissions and fees to other governmental agencies (724,542) (715,103) (863,107) (148,004) Total other financing uses (6,487,859) (6,403,337) (7,728,625) (1,325,288) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds See accompanying Notes to Financial Statements. 6 2016 2015 Assets Cash and cash equivalents 6,657,055$ 7,152,324$ Accounts receivable 27,270 18,820 Due from other funds - - Total assets 6,684,325$ 7,171,144$ Liabilities Due to other funds 70,895$ 64,735$ Due to Collier County, Florida Board of County Commissioners 952,005 1,030,992 Due to other governmental agencies 5,608,295 6,048,339 Due to individuals and businesses 53,130 27,078 Total liabilities 6,684,325$ 7,171,144$ September 30, Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 7 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector’s operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector’s office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector’s financial statements include only the funds of the Tax Collector’s office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These 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. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 8 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 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 liabilities of the current fiscal year). For this purpose, the Tax Collector 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. 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 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. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. 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 Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 9 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds – Fiduciary funds are used to account for assets held by the Tax Collector in a 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. Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board 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 another financing use-transfer out in the accompanying financial statements. Compensated Absences All full-time employees of the Tax Collector 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 and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 10 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within 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 against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter 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 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% 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 taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. 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 certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 11 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these 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. 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 accounting principles generally accepted in the United States of America. 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 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. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 12 3. Cash At September 30, 2016 and 2015, the carrying value of the Tax Collector’s cash was as follows: 2016 2015 Carrying Carrying Value Value Cash on hand 35,443$ 33,900$ Demand deposits 14,265,240 14,237,294 Total cash and cash equivalents 14,300,683$ 14,271,194$ Type Such amounts are reported as $7,643,628and $6,657,055 for 2016 and $7,118,870 and $7,152,324 for 2015 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2016, 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 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 Tax Collector’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME 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 recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the state of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 13 3. Cash (continued) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 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 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 financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2016: October 1, 2015 Additions Deletions/ Reclassifications September 30, 2016 Capital Assets not depreciated: Construction in progress -$ 20,384$ -$ 20,384$ Total assets not depreciated - 20,384 - 20,384 Infrastructure 11,735 - - 11,735 Buildings - 62,174 (62,174) - Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,222,198 243,755 (85,545) 2,380,408 Total Capital Assets 2,345,847 326,313 (147,719) 2,524,441 Less accumulated depreciation: (2,157,216) (117,334) 85,545 (2,189,005) Total capital assets, net 188,631$ 208,979$ (62,174)$ 335,436$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 14 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1, 2014 Additions Deletions/ Reclassifications September 30, 2015 Infrastructure 11,735$ -$ -$ 11,735$ Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,251,583 45,270 (74,655) 2,222,198 Total Capital Assets 2,375,232 45,270 (74,655) 2,345,847 Less accumulated depreciation: (2,105,422) (126,245) 74,451 (2,157,216) Total capital assets, net 269,810$ (80,975)$ (204)$ 188,631$ 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, September 30, 2015 Increase Decrease 2016 Accrued compensated absences 1,224,908$ 596,587$ (647,657)$ 1,173,838$ October 1, September 30, 2014 Increase Decrease 2015 Accrued compensated absences 1,152,878$ 670,017$ (597,987)$ 1,224,908$ Of these liabilities, approximately $650,000 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 15 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 16 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 17 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 18 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 19 6. Pension Plans (continued) FRS Investment Plan (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 20 6. Pension Plans (continued) After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector’s contributions made to the plans during the years ended September 30, 2016, 2015, and 2014 were $606,522, $598,808, and $545,011, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Tax Collector follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description The Tax Collector 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 financial statements of Collier County, Florida. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 21 7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued) Under Florida Statutes, retirees originally hired prior to July 1, 2011 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 hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) 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 for employees hired prior to June 1, 2015. 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. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Tax Collector had a net OPEB obligation of $10,638 and $13,851 as of September 30, 2016 and 2015, respectively. 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 1, 2015. The notes to the financial statements of the County disclose additional information regarding the other postemployment benefit plan as a whole. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 22 8. Related-Party Transactions During the fiscal years ended September 30, 2016 and 2015, the Board paid commissions and fees to the Tax Collector that amounted to $17,638,997 and $16,391,328, respectively. At September 30, 2016 and 2015, the Tax Collector had a payable due to the Board of $7,817,523 and $7,395,292, respectively, comprised as follows: 2016 2015 Distribution of unused commissions and fees 6,865,518$ 6,364,300$ Agency funds due to the Board 952,005 1,030,992 7,817,523$ 7,395,292$ 9. Risk Management Collier County, Florida (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, 2016 and 2015, the Tax Collector was charged $2,948,054 and $2,833,407, respectively, by the County for participation in the risk management program. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 23 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 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 $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage 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 self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2016. The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2017 238,798$ 2018 244,360 2019 250,334 2020 199,976 2021 146,800 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 24 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $378,915 and $362,182 for the years ended September 30, 2016 and 2015, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2016 or 2015. 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 Collector. CliftonLarsonAllen LLP CLAconnect.com 25 INDEPENDENT AUDITORS’ REPORT ON 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 Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited, in accordance with the 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, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements, and have issued our report thereon dated January 5, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Larry H. Ray Tax Collector 26 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Tax Collector’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 CliftonLarsonAllen LLP CLAconnect.com 27 MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2016, and have issued our report thereon dated January 5, 2017. Auditors’ Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in those reports which are dated January 5, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Larry H. Ray Tax Collector 28 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 CliftonLarsonAllen LLP CLAconnect.com 29 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Larry Ray Tax Collector Collier County, Florida We have examined the Collier County Tax Collector, Collier County, Florida’s (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Tax Collector's compliance with those requirements. Our responsibility is to express an opinion on the Tax Collector's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Tax Collector’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 THIS PAGE INTENTIONALLY LEFT BLANK ORDINANCE NO. 2017 -QJL_ AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO. 2013-69, AS AMENDED, KNOWN AS THE COLLIER COUNTY PROCUREMENT ORDINANCE, IN ORDER TO ADD PROCUREMENT METHODS, ESTABLISH EXEMPT PROCUREMENT CATEGORIES, AND TO UPDATE AND CLARIFY OTHER PROVISIONS OF THE ORDINANCE; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION INTO THE CODE OF LAWS AND ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissi.oners (the Board) desires to seek the maximum value for the County by procuring the best value in obtaining commodities and contractual services; and WHEREAS, to better effectuate this desire, on December 10, 2013, the Board adopted Ordinance No. 2013-69, known as the Collier County Purchasing Ordinance; and WHEREAS, the Board subsequently amended Ordinance No. 2013-69 through its adoption of Ordinance No. 2015-37, Ordinance No. 2015-51, Ordinance No. 2016-11, and Ordinance No. 2016-19; and WHEREAS, the Board seeks additional revisions to Ordinance No. 2013-69, as amended, to increase efficiency and ease of administration. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that Ordinance No. 2013-69, as amended, is further amended as follows: SECTION ONE: Title and Citation. This Ordinance shall be known and may be cited as the ''Collier County Procurement Ordinance" or "Procurement Ordinance." .,,~, ;.. l.~~ :; " SECTION TWO: Purpose. The purpose of this Procurement Ordinance is to codify and formalize Collier County's Procurement Policy, to provide for the fair and equitable treatment of all persons involved in public purchasing by the County, to maximize the purchasing value of public funds in procurement, and to provide safeguards for maintaining a procurement system of quality and integrity. Any provision of this Ordinance in conflict with statute is null and void as to the conflict. SECTION THREE: Applicability and Approved Thresholds. 1. This Procurement Ordinance applies to the procurement of goods and services by the County after the effective date of this Procurement Ordinance. This Procurement Ordinance shall apply to all expenditures of public funds by the Board of County Commissioners for public purchasing, irrespective of the source of the funds. Nothing in this section shall prevent the County from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with law. 2. Nothing contained herein shall be construed as requiring Collier County's Constitutional Officers (Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector), Court Administration, State Attorney, Public Defender or the Collier County Metropolitan Planning Organization non-county funds to be covered by the provisions of this Procurement Ordinance. However, ·the services of the Collier County Procurement Services Division Procurement Services Director may be made available for consultation. 3. The Board of County Commissioners shall execute formal contracts in excess of $50,000 having a binding effect upon the County, to include revenue generating contracts, and hereby delegates to the County Manager or designees, the authority to approve contracts or agreements and amendments, extensions, and renewals of such contracts or agreements, including change orders, work orders and other ancillary documents, providing the total amount of County expenditure for any such contract or agreement does not exceed $50,000 unless otherwise specified by action ofthe Board of County Commissioners. 2 The $50,000 limitation set forth above shall be detennined by the following: a. the per fiscal year dollar total expenditure for term contracts, b. the per fiscal year dollar expenditure for fixed-fee agreements, c. the per fiscal year dollar expenditure for lease agreements, d. the total dollar expenditure included in the contract for lump-sum or specific project agreements. 4. Following formal action taken by the Board of County Commissioners on purchases greater than the formal competitive threshold, the Board delegates to the County Manager or designee the authority to carry out the administrative and ministerial actions necessary to effectuate the Board's action, including but not limited to the subsequent issuance of Work or Purchase Orders. SECTION FOUR: Definitions. Agency shall mean all departments, divisions, units and offices under the Board of County Commissioners, including the Collier County Redevelopment Agencies, the Collier County Airport Authority, Collier County Water Sewer District and all departments under the auspices of the County Manager. Also included are those elected or appointed officials that agree to utilize procurement services provided by the Collier County Board of County Commissioners. Change Order shall mean a written order by a project manager, approved by the Procurement Services Director and the Board of County Commissioners, directing the contractor to change a contract's amount, requirements, or time. All changes must be within the original scope of the contract and in accordance with the Board approved contract's changes clause or, if no such clause is set forth within the agreement, in accordance with this Procurement Ordinance. Consultant/Contractor/Supplier/Vendor shall mean a provider of goods or services to the County agency. These terms may be used interchangeably. Continuing Contract shall mean a contra~t for professional services as defined under Florida Statute 287.055. 3 County Manager shall mean the County Manager or County Administrator of Collier County, or designee, as defined in the County Administration Law of 1974, F .S. ch. 125, pt. III. Extension shall mean an increase in the time allowed for the contract period due to circumstances which make performance impracticable or impossible, or which prevent a new contract from being executed. An extension must be in writing, and may not change the contract's amount or requirements unless provided for in the original solicitation, contract, or as otherwise stated in this Ordinance. Fixed Term Contract is a type of contract in which a source of supply is established for a specific period of time for specified services or supplies; usually characterized by an estimated or definite minimum quantity, with the possibility of additional requirements beyond the minimum, all at a predetermined unit price. Fixed-Fee Agreement is a contract providing for a finn price, or a price that may be adjusted only in accordance with contract clauses providing for revisions of the contract price under stated circumstances. Lease Agreement is a contract outlining the tenns in which one party agrees to rent property owned by another party, which may include real estate or personal property for a specified amount of time. Lump Sum or Specific Project Agreement is a contract where a finn fixed total price is offered by the vendor for the completion of a project; typically this is done through a competitive process and where the final invoicing will require no cost breakdown. Minority business enterprise or any other designation assigned by the Office of Supplier Diversity shall mean a firm or individual whom satisfies the registration requirements of that agency and/or satisfies the requirements outlined in Florida Statute Chapter 287.0943(2)(e), Chapter 295.187, Chapter 60A-9, Florida Administrative Code. Purchase Order shall mean a form of contract which encumbers appropriated funds and which is directed to a single vendor to furnish or deliver commodities or services to the County. 4 .. ~ .. Purchasing Card shall mean a credit card officially assigned to specific employees under the purview of the Board of County Commissioners for the purpose of transacting small and/or strategic purchases. Responsible Bidder/Proposer shall mean a vendor who has the financial and technical capacity to perform the requirements of the solicitation and subsequent contract. Responsive Bidder/Proposer shall mean a vendor who has submitted a bid or proposal that fully conforms in all material respects to the solicitation and all of its requirements, including form and substance. Single source refers to a procurement directed to one source because of standardization, warranty, or other factors, even though other competitive sources may be available. Sole source refers to a procurement where the selection of one particular supplier to the exclusion of all others may be based on a lack of competition, proprietary technology, copyright, warranty or a supplier's unique capability. Work Order/Work Assignment is a contract instrument issued under the terms and conditions of an approved continuing or fixed fee agreement, which authorizes a contractor or consultant to perform a specific task within the broader scope of the master agreement. Nothing in the work order shall conflict with the terms and conditions of the fixed fee contract, and all work done must fall within the scope and term of the underlying agreement. SECTION FIVE: Establishment of Procurement Services Division and Procurement Services Director. I. There is hereby established the Collier County Procurement Services Division, which shall be a distinct administrative department under the direction of the County Manager. a. The Procurement Services Director of the Procurement Services Division shall have the authority to negotiate all purchases for all Agencies. Except as required by State, Federal or Local Law. In keeping with F .S. ch. 125, this Procurement Ordinance grants to the Procurement Services Director only those powers and duties which are administrative and ministerial in 5 nature and does not delegate any govenunental power imbued in the Board of County Commissioners as the governing body of the County pursuant to Fla. Const. Art. VIII, § 1 (e). The Procurement Services Director may delegate to one or more Procurement Services Division employees any and all aspects of the authority vested in the Procurement Services Director by the County Manager. Except as otherwise specified by law, this Article shall apply to every procurement under the authority of the Collier County Board of County Commissioners and to elected or appointed officials (Clerk of the Circuit Court, County Attorney, Property Appraiser, Sheriff, Supervisor of Elections, Tax Collector and Collier County M.P.O.) who choose to utilize procurement services provided by the Collier County Board of County Commissioners. b. Notwithstanding any other provision of the Procurement Ordinance, the Procurement Services Director is authorized to issue purchase orders at the written request of elected or appointed officials. c. Nothing in this article shall limit the Collier County Board of County Commissioners' right to waive any provisions contained herein when the Collier County Board of County Commissioners shall deem it in the best interest of the County. SECTION SIX: Duties of Procurement Services Division. Within the constructs of this Ordinance, the Procurement Services Division shall be responsible for: 1. Seeking Maximum Value: Acting to procure for the County the highest quality commodities and contractual services at least expense to the County. 2. Encouraging competition: Endeavoring to obtain as full and open competition as possible on all purchases, services and sales. 6 3. Procurement Analysis: Keeping informed of current developments in the field of purchasing, prices, market conditions and new products, and securing for the County the benefits of research conducted in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition, and by private business and organizations. 4. Procurement Manual: Preparing and recommending for adoption by the County Manager a Procurement Manual for the implementation of this Procurement Ordinance. The Procurement Manual shall be maintained and published on-line for the benefit of the public. 5. Division Systems, Procedures and Standards: The adoption of systems, procedures, forms, standards, reporting and evaluation tools related to: (i) the effective development, negotiation and administration of County contracts, and (ii) the evaluation of performance of contractors, suppliers and vendors doing business with Collier County. 6. Non-Contract Purchases: Reviewing non-contract purchases under $50,000.00, as defined in SECTION THREE, to determine if an aggregated contract approach may provide value and offer pricing advantages to the County. 7. Tax Exemption: Procuring items for the County to exercise its tax exemption status when eligible. 8. Inquiry and Control: Full authority to: a. Question the quality, quantity, and kinds of items requisitioned in order that the best interests of the County are served; b. Ensure the timely, proper and orderly acquisition of services to the various operating divisions; c. Ensure purchases are consistent with the Procurement Ordinance; d. Determine if specific purchases should be approved by the Board prior to the purchase. 7 e. Determine work assignment rotation schemes when multiple contracts are awarded for the same service. 9. Records of Procurement activity shall be maintained in compliance with the Chapter 119, Florida Statutes, "Public Records." SECTION SEVEN: Ethical Standards. 1. Every employee, elected or appointed official of Collier County has the responsibility to maintain the confidence of the citizens of Collier County by conducting the procurement process in an ethical, fair and transparent manner. Collier County employees shall act in good faith to discharge their duties and avoid either the intent or appearance of unethical practices in procurement relationships, actions and communications. 2. Any attempt by Collier County employees, elected or appointed official of Collier County to realize personal gain from the procurement process is a breach of public trust. All County employees shall govern themselves in accordance with the Standards of Conduct as set forth in applicable Collier County Government Regulations, to include the Collier County Ethics Ordinance No. 2003-53 as amended, County Manager Administrative Procedures (CMA) Code of Ethics, and F.S. ch. 112. 3. Collier County requires each vendor who seeks to do business with Collier County to comply with the following ethical standards: a. No vendor shall discuss or consult with other vendors intending to compete for the same or similar contract for the purpose of bid rigging, collusion or other activities that are illegal, unethical or limiting competition. b. No vendor shall submit false information or intentionally submit misleading information to Collier County. 8 c. After the issuance of any solicitation, no current or prospective vendor or any person acting on their behalf, shall contact, communicate with or discuss any matter relating to the solicitation with any Collier County employee or elected or appointed official, other than the Procurement Services Director or his/her designees. This prohibition ends upon execution of the final contract or upon cancellation of the solicitation. Any current or prospective vendor that lobbies any Collier County employee or elected or appointed official while a solicitation is open or being recommended for award (i) may be deemed ineligible for award of that solicitation by the Procurement Services Director, and (ii) will be subject to Suspension and Debarment outlined in SECTION TWENTY- EIGHT. 4. Failure to comply with this Section shall be deemed a violation of ethical standards subject to administrative actions and may be subject to civil, and/or criminal penalties for ethical violations as described below: a. Employees who violate the ethics standards described in this section shall be subject to administrative disciplinary action, following Collier County Government Human Resources procedures and guidelines, up to and including dismissal from Collier County Government employment. b. Vendors who violate the ethics standards described in this Section shall be subject to Suspension and Debarment as provided in SECTION TWENTY-EIGHT ofthis Article. 5. Vendors doing business with Collier County shall comply with the provisions of Section 287.133, Florida Statutes ("Public Entity Crimes Act"). SECTION EIGHT: Exemptions to the Competitive Process. The following categories of procurements may be eligible for exemption to the competitive process waivers of competition based upon the determination of the County 9 Manager or designee Procurement Services Director that approval of such an exemption waiver is in the best interest of the County. 1. Purchases from another government agency or from a nonprofit organization authorized to do business in the State of Florida. 2. Dues and memberships in trade or professional organizations; registration fees for trade or career fairs; fees and costs of job-related seminars and training. 3. Subscriptions, periodicals, newspapers, books, electronic information, media, maps, pamphlets and similar material in printed or electronic form. 4. Advertisements. 5. Utility Services: water, sewer, electrical, gas, or other regulated utility, communications and data transmission services subject to govenunent rate control. 6. Educational or academic programs; educational or recreational field trip instructors, trainers, facilitators, professional advisors and speakers. 7. Legal services including retaining services of law firms or other outside counsel for any reason, expert witnesses, court reporter services, appraisal services, trial consultants or similar persons or firms deemed by the Collier County Attorney as necessary to address the legal needs of Collier County, together with document management and production, legal research, and information technology products and services. 8. Goods or services purchased from grants, gifts, bequests or donations to the extent of the application of this Article would conflict with the requirements, conditions, or limitations attached to the grant, gift, bequest, or donation. 9. Products or services necessary to maintain existing warranties and licenses or to maintain compatibility with existing Collier County systems. 10. Repairs based upon shop estimates for equipment that has been disassembled. 11. Personnel services; recruitment services. 10 12. Works of Art for Public Display 13. Direct purchase orders issued when it is in the best interest of Collier County. Collier County may make direct purchases of goods and services when the County can procure these items at a lower cost and/or realize a tax or delivery savings. 14. Financial Instruments: professional services required for the issuance of Collier County debt, debt service and Collier County investments related thereto, including the selection of investment bankers for Collier County's Underwriting Pool and the selection of Collier County's Financial Advisor. 15. Entertainment services for County·sponsored events. 16. Services for management studies, executive analysis and related matters as directed by the County Manager. 17. Where specified by general law, ordinance or Collier County Board of County Commissioners policies, any purchase governed by explicit provisions of general law or other Collier County ordinance or Collier County Board of County Commissioners policies (resolution) unless the solicitation indicates the applicability of this Article, and this Article shall apply only to the extent set out in the solicitation. SECTION NINE: Small Purchases (Purchases $3,000 or less). A purchase shall not be artificially divided or split so as to qualify under this or any other section of this Procurement Ordinance. All small purchases will be obtained by a Single Quote, with documentation, and generally be processed using a regular purchase order, or a purchasing card in accordance with SECTION TWENTY·SEVEN 26 of this Procurement Ordinance. Operating Division staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not utilized, staff will procure the highest quality items or services at the least expense to the County. Only the Board's Procurement Services staff may approve a qualification based Small Purchase. 11 SECTION TEN: Informal Competition (Purchases Exceeding $3,000 but Not Greater Than $50,000). A purchase shall not be artificially divided or split so as to qualifY under this or any other section of this Procurement Ordinance. Operating Division staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not available, or staff demonstrates that the price under contract exceeds the price on a non- contract, staff will procure the highest quality items or services at the least expense to the County by using the following informal competition process: 1. Purchases exceeding $3,000 but not greater than $50,000 may be solicited by quotation as follows: a. Minimum Number Quotes: Purchases in excess of $3,000 but not greater than $50,000 shall be based on a good faith effort by either Operating Division Staff or Procurement Staff to obtain at least three (3) documented competitive quotes. b. Solicitation of Quotes: Quotes may be solicited in writing or electronically. Only the Procurement Services staff may issue a qualification based solicitation. Final recommended award of any quote will be reviewed and approved by the Procurement Services Director. SECTION ELEVEN: Procurement Methods. Collier County's procurement methods may include, but are not limited to the following: 1. Informal quotes may be solicited and awarded by designated Collier County employees as set forth in the Procurement Manual without public announcement and without fonnal competition. 2. Request for Quote (RFQ) may be issued by either the Operating Division Staff or by the Procurement Staff. Any resulting contract shall be awarded to the responsible and responsive vendor submitting the lowest or best overall quote which meets all specifications. 12 3. Invitations to Bid (ITB) shall be issued by the Procurement Services Director with public announcement and competition. Any resulting contract shall be awarded to the responsive and responsible bidder submitting the lowest or best overall bid which meets all specifications. 4. Cooperative Purchasing a. Piggybacking The Procurement Services Director shall have the authority to procure goods or services from vendors who have been selected, as a result of a competitive selection process for a federal, state or municipal govenunent, or any other governmental agency, political subdivision, or government- related association, provided that the originating entity utilized a competitive process similar to Collier County's. The Procurement Services Director shall annually bring forward to the Board of County Commissioners a list of recommended cooperatives for Board consideration. b. Consolidated Joint Purchasing The Procurement Services Director shall have the authority to join with other government entities and consortiums in cooperative purchasing ventures when in the best interest of Collier County. 5. Request for Proposals (RFP) shall be issued by the Procurement Services Director with public announcement and competition. Any resulting contract shall be awarded to the responsive and responsible proposer submitting the best proposal according to the criteria set forth in the solicitation. 6. Request for Professional Services (RPS) shall be issued by the Procurement Services Director to procure professional engineering, architectural, landscape architectural or surveying and mapping services in accordance with the Consultants' Competitive Negotiation Act (CCNA), F.S. § 287.055. 13 7. Invitation to Negotiate (ITN) shall be issued by the Procurement Services Director with public announcement and competition. An ITN is used when it is determined beneficial to issue a written solicitation for competitive sealed replies to select one or more vendors with which to conduct negotiations. 8. Emergency Procurements may be used in the event of an unexpected and urgent need where health and safety or the conservation of public resources is at riskt or during Board absences (all efforts should be made to obtain Board approval prior to anticipated recesses), using such competition as is practical under the circmnstances, as follo~s: a. Following a declaration of the existence of an emergency situation by the County, the Collier County Board of County Commissioners or their designee may declare the existence of an emergency procurement condition and may suspend any or all of the provisions of this article and authorize an emergency procurement. b. The Collier County Manager or his/her designee, on a case by case basis may approve an emergency purchase based upon the Procurement Services Director's good faith review of the available sources that may timely respond to the urgent need for goods and services and the documentation of the emergency conditions related to that purchase. Upon written determination and approval of the Collier County Manager, the emergency purchase may be made. The Collier County Manager will report to the Collier County Board of County Commissioners all such emergency procurements at the next available Board meeting. c. This section in no way constrains the provisions of Collier County's Civil Emergency powers and authority pursuant to F.S. ch. 252, Emergency Management. 9. Invitation for Qualifications (IFQ) shall be issued by the Procurement Services Director when it is in Collier County's best interest to limit participation in the solicitation 14 process to those bidders, proposers or offerors who demonstrate a capability to provide the goods and services required by the Collier County or when qualifications are the only criteria. 10. Sole Source Procurement is a selection of one particular supplier to the exclusion of all others. This decision may be based on lack of competition, proprietary technology, copyright, warranty or a supplier's unique capability. 11. Single Sourcing is a procurement decision whereby purchases are directed to one source because of standardization, warranty, or other factors, even though other competitive sources may be available. 12. Reverse Auctions shall be issued by the Procurement Services Director when it is deemed to be the most efficient means of obtaining the best price through open competition. 13. Requests for Information (RFI) shall be issued by the Procurement Services Director when it is in Collier County's best interest to request information from potential vendors prior to the issuance of a planned solicitation. 14. It is the intent of the Board of County Commissioners to establish an amount of fifty thousand dollars ($50,000.00) as the County's threshold for formal competitive solicitations to include IFB, RFP, RPS, ITN, IFQ, and Reverse Auctions administered under the supervision of the Procurement Services Director. Award of any resulting agreements or contracts shall be made by the Board except where otherwise provided for in this Procurement Ordinance or unless an exception is granted by the Board. 15. Use of Past Performance Data: In order to promote the quality delivery of commodities and services, County departments shall record and consider the past perfonnance of vendors in the award of contracts exceeding the competitive threshold. This objective shall be accomplished as follows: a. The Procurement Services Division shall be responsible for each of the following: 15 (1) Developing, implementing and maintaining administrative procedures, instructions and technologies necessary to collect past vendor performance data. (2) Ensuring that relevant past performance data is properly gathered and considered prior to award of subsequent contracts. b. Operating departments shall be responsible for each of the following: (1) Conducting periodic performance evaluations of vendors under contract with the County pursuant to the procedures established in SECTION 11. (2) Considering the past performance of vendors during the evaluation of bids and proposals pursuant to the procedures established in SECTION 11, subsection 15.a.(2). SECTION TWELVE: RESERVED RIGHTS. 1. Reserved Rights: Collier County reserves the right in any solicitation to accept or reject any or all bids, proposals or offers; to waive minor irregularities and teclmicalities; or to request resubmission. Also, Collier County reserves the right to accept all or any part of any bid, proposal, or offer, and to increase or decrease quantities to meet additional or reduced requirements of Collier County. Notwithstanding any other provisions of this Article, if none or only one responsive and responsible bid or proposal is ·received following any solicitation, the County Manager, or designee, reserves the right to reject all bids, proposals or offers and to negotiate with any responsible providers to secure the best terms and conditions in the sole interest of the County unless otherwise provided by law. 2. Rejection of Bids and Negotiation: a. The Procurement Services Director shall have authority to review all submittals in response to a County solicitation and to review these submittals for responsiveness, responsibility, price and other factors in 16 making a detennination for Recommendation of A ward. The Procurement Services Director may reject any submittal and cancel any solicitation at anytime prior to a contract being signed. The Board of County Commissioners shall have the authority to reject any and all bids at any time. b. If the lowest, responsive bid exceeds the budgeted amount and, if the purchase is not funded in whole or in part with interagency grant dollars, the Procurement Services Director may negotiate changes with the apparent lowest responsible and responsive bidder that will bring prices into budgeted limits subject to the final approval and acceptance of the Board. If the budgeted amount includes grant funds, the Procurement Services Director shall be authorized to conduct such negotiations provided said actions are not prohibited by law or the grant conditions. All Notices of Recommended Award will be generated and posted by the Procurement Services Director prior to presentation of any contract for signature by the Board of County Commissioners. SECTION THIRTEEN: Unsolicited Proposals. 1. The Board incorporates by reference F.S. § 255.065, as may be amended from time to time, which addresses the procurement of services for qualifying projects through public- private partnerships, including through an offer of an unsolicited proposal. 2. a. The Board shall by separate Resolution establish all Application Fees referenced under F.S. §255.065 that a private entity must pay concurrent with the submission of an unsolicited proposal. Payment shall be made by cash, cashier's check, or some other non-cancellable instrument. Personal checks shall not be accepted. 17 b. To the extent that the cost to evaluate an unsolicited proposal costs more than the Initial Application Fee adopted by Resolution, the County may request payment of any additional amounts required to conduct its review as provided in F.S. §255.065. SECTION FOURTEEN: Small and Disadvantaged Minority and Women Business Enterprises. 1. Policy Statement: Collier County stands committed to providing equal opportunities to small businesses and disadvantaged business enterprises (DBE), minority business enterprises (MBEs) and women business enterprises (WBEs) as well as to all vendors, consultants, contractors and subcontractors who seek to do business with the County. Pursuant to this policy, Collier County encourages its vendors, consultants, contractors and subcontractors to provide qualified small businesses and DBE's with an equal opportunity to participate in the formal competitive processes for the procurement of commodities and services by the County. The Policy is not intended to require or to allow partiality toward or discrimination against any small business or DBE, MBE, WBE, or any other vendor, consultant, contractor or subcontractor on the basis of gender, race or national origin, or other such factors, but rather to create an opportunity for small businesses and DBEs, MBEs, WBEs, and all qualified vendors, consultants, contractors and subcontractors to participate in the County's formal competitive processes. Nothing in this Policy shall be construed to provide for or require any preference or set-aside based on gender, race, national origin or any other such factor. 2. Implementing Measures: In an effort to implement this policy, the County may undertake the following measures: a. Designate the Procurement Services Director to administer this policy. b. Utilize outreach programs to identify, register and educate small businesses and DBEs, MBEs and WBEs to participate in the procurement/contract process which may include: 18 (1) Attending trade fairs which include representatives from these enterprises. (2) Attending meetings and social events wherein these enterprises are present. (3) Utilizing publications aimed at reaching these enterprises. ( 4) Utilizing Purchasing Directories and other reference sources that list these enterprises. ( 5) Publicizing this Policy to encourage these enterprises to participate in the County's procurement process. ( 6) Other actions designed to identify opportunities for these enterprises who seek to provide commodities and services to the County. c. Maintain a list of these enterprises. d. Disseminate information regarding competitive opportunities with the County in order to allow qualified small businesses and DBEs, MBEs and WBEs to participate in the County's procurement process. 3. Conformity with Applicable Law: The provisions of this section shall be construed in conformity with applicable state and federal law. To the extent that state law conflicts with federal law, federal law shall supersede such state law. SECTION FIFTEEN: Procedure to Provide Preference to Local Businesses in County Contracts. Except where otherwise provided by federal or state law or other funding source restrictions or as otherwise set forth in this Procurement Ordinance, purchases of commodities and services shall give preference to local businesses in the following manner: 1. "Local Business" defined. Local business means the vendor has a current Business Tax Receipt issued by the Collier County Tax Collector for at least one year prior to 19 bid or proposal submission to do business within Collier County, and that identifies the business with a permanent physical business address located within the limits of Collier County from which the vendor's staff operates and performs business in an area zoned for the conduct of such business. A Post Office Box or a facility that receives mail, or a non-permanent structure such as a construction trailer, storage shed, or other non-permanent structure shall not be used for the purpose of establishing said physical address. In addition to the foregoing, a vendor shall not be considered a "local business" unless it contributes to the economic development and well-being of Collier County in a verifiable and measurable way. This may include, but not be limited to, the retention and expansion of employment opportunities, support and increase to the County's tax base, and residency of employees and principals of the business within Collier County. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to be eligible for consideration as a "local business" under this section. A vendor who misrepresents the Local Preference status of its firm in a proposal or bid submitted to the County will lose the privilege to claim Local Preference status for a period of up to one year. 2. Preference in purchase of commodities and services by means of competitive bid, request for proposals, qualifications or other submittals and competitive negotiation and selection. Under any such applicable solicitation, bidders/proposers desiring to receive local preference will be invited and required to affirmatively state and provide documentation as set forth in the solicitation in support of their status as a local business. Any bidder/proposer who fails to submit sufficient documentation with their bid/proposal offer shall not be granted local preference consideration for the purposes of that specific contract award. Except where federal or state law, or any other funding source, mandates to the contrary, Collier County and its agencies and instrumentalities, will give preference to local businesses in the following manner: a. Competitive bid (local price match option). Each fonnal competitive bid solicitation shall clearly identify how the price order of the bids received will be evaluated and determined. When a responsible and responsive, non-local business submits the lowest price bid, and the bid submitted by one or more responsible and responsive local businesses is within ten percent of the price submitted by the non-local business, then the local 20 business with the apparent lowest bid offer (i.e., the lowest local bidder) shall have the opportunity to submit an offer to match the price(s), less one (1) dollar, offered by the overall lowest, responsible and responsive bidder. In such instances, staff shall first verify if the lowest non-local bidder and the lowest local bidder are in fact responsible and responsive bidders. Next, the Procurement Services Division shall determine if the lowest local bidder meets the requirements ofF.S. § 287.087 (Preferences to businesses with drug-free workplace programs). If the lowest local bidder meets the requirements ofF.S. § 287.087, the Procurement Services Division shall invite the lowest local bidder to submit a matching offer, less one (I) dollar, within five (5) business days thereafter. If the lowest local bidder submits an offer that fully matches the lowest bid, less one (1). dollar, from the lowest non-local bidder tendered previously, then award shall be made to the local bidder. If the lowest local bidder declines or is unable to match the lowest non-local bid price(s), then award will be made to the lowest overall responsible and responsive bidder. If the lowest local bidder does not meet the requirement of F.S. § 287.087, and the lowest non-local bidder does, award will be made to the bidder that meets the requirements ofthe reference state law. b. Request for proposals, qualifications or other submittals and competitive negotiation and selection. For all purchases of commodities and services procured through the Competitive Proposals or Competitive Selection and Negotiation methods not otherwise exempt from this local preference section, the RFP solicitation shall include a weighted criterion for local preference that equals 10 percent of the total points in the evaluation criteria published in the solicitation. Purchases of professional services as defined and subject to F.S. § 287.055 and audit and accounting services subject to F.S. § 11.45shall not be subject to this local preference section. c. Should a tie bid occur between a non-local bidder and a local bidder, the County shall award the contract to the local bidder. Should a tie occur 21 between two local bidders, the County will"flip a coin" between the two lowest bidders. The coin toss winner will be awarded the contract upon approval by the Board of County Commissioners. 3. Waiver of the application of local preference. The application of Local Preference to a particular purchase or contract may be waived upon approval of the Board of County Commissioners, or as identified where exempt from competitive process in SECTION EIGHT. 4. Comparison of qualifications. The preferences established herein in no way prohibit the right of the Board of County Commissioners to compare quality of materials proposed for purchase and compare qualifications, character, responsibility and fitness of all persons, firms or corporations submitting bids or proposals. Further, the preferences established herein in no way prohibit the right of the County Commission from giving any other preference permitted by law instead of the preferences granted herein. 5. Reciprocity. In the event Lee County, or any other Florida county or municipality ("local government") deemed appropriate by the Collier County Board of Commissioners, extends preferences to local businesses, Collier County may enter into an interlocal agreement with such local government wherein the preferences of this section may be extended and made available to vendors that have a valid occupational license issued by that specific local government to do business in that local government that authorizes the vendor to provide the commodities and services to be purchased, and a physical business address located within the limits of that local government. Post Office Boxes are not verifiable and shall not be used for the purpose of establishing said physical address. In addition to the foregoing, a vendor shall not be considered a "local business" unless it contributes to the economic development and well-being of the said local government whichever is applicable, in a verifiable and measurable way. This may include, but not be limited to, the retention and expansion of employment opportunities, the support and increase to that local government's tax base, and residency of employees and principals of the business located within the limits ofthat local government. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to be eligible for consideration as a "local business .. under this section. In no event shall the amount 22 of the preference accorded other local govenunent firms exceed the amount of preference that such local government extends to Collier County firms competing for its contracts. 6. Purview and administration of this Local Preference Policy. This policy shall apply to all departments and units under the direct purview of the Board of County Commissioners. For purchases of $50,000.00 or less, the Procurement Services Division shall systematically encourage departments to include local vendors when soliciting quotations in accordance with this policy. 7. This Policy shall not be utilized with respect to any competitive solicitation for construction services in which 50 percent or more of the cost will be paid from state- appropriated funds which have been appropriated at the time of the competitive solicitation. SECTION SIXTEEN: Payment of Invoices. 1. Agencies under the purview of the Board of County Commissioners shall be in compliance with F.S. § 218.70, otherwise known as the "Local Government Prompt Payment Act." Pursuant to this, the requirements of this section shall apply to the following transactions: a. The purchase of commodities and services; b. The purchase or lease of personal property; c. The lease of real property. 2. The County Manager shall establish and maintain procedures that authorize minor payment variances between the purchase order and invoice where warranted. The authority to pay such variances shall not exceed 5% of the purchase order amount or $500, whichever is less. 3. The County Manager shall establish and maintain a process to address freight and delivery charges not in compliance with FOB destination terms contained in the County General Tenns and Conditions. 4. It shall be the responsibility of the County Manager, in consultation with the Clerk's Finance Director and operating Divisions, to establish, procedures for the timely payment 23 of all transactions as defmed herein. Such procedures shall include, but are not limited to the following: a. Formally defining the County's requirements for the content and submission of a proper invoice, codifying the County's payment requirements and notifying each vendor of their availability. b. Steps required for the receipt of all invoices and the prompt return of improper invoices. c. Steps required for the resolution of payment disputes between the County and a vendor. 5. ' Vendor Payment Dispute Resolution Process. The purpose of this section is to establish a procedure whereby payment disputes with vendors who provide goods and services to the County are resolved in a timely manner and in keeping with the Local Government Prompt Payment Act. a. Definitions. The definitions set forth in the Local Government Prompt Payment Act (F .S. § 218.72, 20 16) are hereby incorporated by reference. b. If an improper payment request or invoice is submitted by a vendor, the County shall, within 10 days after the improper payment request or invoice is received, notify the vendor, in writing, that the payment request or invoice is improper and indicate what corrective action on the part of the vendor is needed to make the payment request or invoice proper. c. If the parties are unable to reach resolution on the payment dispute, the County Manager shall appoint a Hearing Examiner, to whom the matter will be referred to. The Hearing Examiner shall have the sole and full authority to thereafter resolve the dispute. The proceedings before the Hearing Examiner to resolve the dispute shall commence within 45 days after the date the payment request or improper invoice was received by the County and shall be concluded with final written decision by the Hearing Examiner within 60 days after the date the payment request or improper 24 invoice was received by the County. These proceedings are not subject to F.S. ch. 120, and do not constitute an administrative hearing. Rather, these proceedings are intended to be quasi-judicial, open to the public, with the written decision of the Hearing Examiner being final, subject only to certiorari review. If the dispute is resolved in favor of the County, interest charges shall begin to accrue 15 days after the Hearing Examiner's final decision. If the dispute is resolved in favor of the Vendor, interest begins to accrue as of the original date the payment became due. d. If the County does not timely commence this dispute resolution process within the time required, a contractor may give written notice to the County of the failure to timely commence this dispute resolution procedure. If the County fails to commence this dispute resolution procedure within four business days after such notice, any amounts resolved in the contractor's favor shall bear mandatory interest, as set forth in F.S. ch. 218, from the date the payment request or invoice containing the disputed amounts was submitted to the County. If the dispute resolution procedure is not commenced within 4 business days after the notice, the objection to the payment request or invoice shall be deemed waived. The waiver of an objection pursuant to this paragraph does not relieve a contractor of its contractual obligations. e. In an action to recover amounts due under this part, the court shall award court costs and reasonable attorney's fees, including fees incurred through appeal, to the prevailing party. f. The conduct of the Hearing Examiner proceedings, including notice, process, and criteria, shall be set forth in the Procurement Division's Policies and Procedures. SECTION SEVENTEEN: Advanced Payments for Goods and Services. Procedures for the pre-payment of goods and services with County funds including, but not limited to, dues and membership, insurance, maintenance agreements, subscriptions, travel 25 arrangements, postage, and other purchases as prescribed by the Department of Financial Services through their Administrative Rules. As provided for in F.S. § 28.235, the Clerk of the Circuit Court is authorized to make advanced payments on behalf of the County for goods and services based on those established procedures. SECTION EIGHTEEN: Standardization, Cooperative Purchasing Agreements and Governmental Contracts. 1. Where standardization is determined to be desirable by the Board of County Commissioners or included in the Procurement Manual, the purchase of commodities may be made by negotiation with the approval of the purchase by the Board t if under the Formal Competitive Threshold, with approval of the purchase by the Procurement Services Director. 2. Annually, the Board of County Commissioners will approve a list of authorized purchasing cooperative organizations and governmental schedules and contracts. The Procurement Services Director may approve purchases using these approved cooperative organizations, agreements and contracts with no further action required by the Board providing that funds have been budgeted for these specific purposes. Additionally, the Procurement Services Director may join other public agencies in cooperative purchasing organizations and/or agreements if is determined to be in the County's best interest, and if the consortium agreement has not had prior Board approval. The use of any new cooperative agreement must be approved by the Board prior to the use of the agreement. SECTION NINETEEN: Contract Administration. 1. Contract Document: Every procurement of contractual services or commodities shall be evidenced by a written document containing all provisions and conditions of the procurement. Said document shall include, but not be limited to: a. A listing of the scope of services to be performed or commodities to be purchased. b. A provision specifying the criteria and the fmal date, or number of days, by which such criteria must be met for completion of the work. 26 c. A provision specifying the terms of cancellation by the County and where applicable, a provision specifying the terms of renewal. d. Where applicable, a provision establishing the appropriate types and levels of insurance to be carried by the vendor. Said provision shall be employed in a manner consistent with minimum insurance standards approved by the Board of County Commissioners. e. A provision requiring the contractor/vendor to inform the County if he/she has been convicted of a public entity crime subsequent to July 1, 1989. A purchase order that embodies these provisions shall be sufficient documentation of the procurement. Except as otherwise provided in this Procurement Ordinance, the Procurement Services Director shall determine the circumstances under which a Board approved purchase order (and all documents included by reference) shall serve as the contract document. 2. Contract Manager: Every procurement of services shall be administered by the requesting Agency/Department. 3. Contracts: Notices that terminate in its entirety a Board-approved purchase or contract must be approved by the Board of County Commissioners prior to its termination. a. Modifications to Work Orders, Change Orders, and Amendments issued under a purchase order or contract that exceed ten percent ( 1 0%) of the current Board approved aggregate amount, or twenty percent (20%) of the current Board approved number of days must be approved by the Board. b. Modifications to Work Orders, Change Orders, and Amendments issued under a purchase order or contract that do not exceed ten percent (10%) of the current Board approved aggregate amount, or twenty percent (20%) of the current Board approved number of days will be reported on the Procurement Services Administrative Ratification Report and presented to the Board for approval. 27 c. Modifications to Board approved purchases or contracts by the issuances of the following, but not limited to, direct material purchases, notices to proceed or noncompliance, stop work notices, authorization for the use of approved allowances and reallocation of funds between line items, supplemental agreements, and changes by letter may be authorized and executed by the Procurement Services Director without further approval by the Board. d. All material changes in scope of contracts must be approved by the Board in advance. e. Sections 3.a through 3.b shall not be applicable to term contracts, fixed-fee contracts, or blanket purchase orders where the County desires to procure commodities and/or services on an as needed basis without having to obligate itself to a total contract amount. Rather, such purchases shall be based on fixed unit prices or other predetermined pricing methods and shall be limited in quantity by the amount of funds appropriated in the budget of the operating Division(s}. Such purchases shall be subject to all other provisions of this Procurement Ordinance. The Board shall have broad authority, within the limits of the law, to evaluate and approve any recommended contract modification without requiring further competition. 4. Contract Extension: Extension(s) of a Board-approved contract for commodities or non-construction services may be requested by the contract manager to the Procurement Services Director in writing for a period not to exceed six (6) months (cumulatively) and shall be subject to the same terms and conditions set forth in the contract, if the extension period is provided for in the Board approved contract. The Procurement Services Director shall have the authority to authorize and execute all such extensions, which must be issued prior to the expiration of the contract. Any extension(s) that exceed six months (cumulatively) shall be approved by the Board of County Commissioners. 5. Contract Renewal: The Procurement Services Director shall authorize and execute renewals of contracts for commodities and/or services subject to the following conditions: 28 a. That the Contractor has performed in a satisfactory manner and that the Procurement Services Director has received a request to renew from the Contractor or Project Manager verifying the Contractor's satisfactory performance. b. That the Board-approved contract pursuant to SECTION ELEVEN Paragraph 14 provided for a renewal and is renewed subject to the terms and conditions set forth in the initial contract. Cost and term modifications are addressed in the original solicitation document and/or resultant contract. c. That the renewal is done for a set period of time identified in the solicitation document and/or contract, commencing at the end of the contract period. d. That a contract under the formal competitive threshold with multiple renewal year option terms may be approved annually by the Procurement Services Director. Proposed renewals that fail to meet one or more of the conditions set forth herein will require the approval of the Board of County Commissioners. 6. Contract Approval: All contracts for commodities and services exceeding SECTION ELEVEN Paragraph 14, Formal Competitive Threshold, shall be authorized by the Board of County Commissioners. Once approved, subsequent purchase orders referencing those Board approved contracts may be issued by the Procurement Services Director. Contracts below SECTION ELEVEN Paragraph 14, Formal Competitive Threshold, shall be subject to the review and approval by the County Attorney staff and signed by the Procurement Services Director. Purchase orders may be issued by the Procurement Services Director. 7. Work Orders: The Procurement Services Director may execute any work order if the work order is equal to or below such Board approval parameters for work orders as are set forth in the Board approved term contract for services under which the work order is generated. 29 Work orders must be in sufficient detail to audit according to the approved contract. 8. Consent to Assignments of Contract: For all Board approved contracts, the Board of County Commissioners shall approve all assigrunents of contracts requested by the predecessor contracting party. 9. Authority Limitation and Delegation; Promulgation of Procedures: The Procurement Services Director may delegate to one or more Procurement Services Division employees any or all aspects of the authority vested in the Procurement Services Director. All authority to execute documents that is vested in the Procurement Services Director or any other person shall be subject to the limits of any applicable federal, state or other law. 10. Payments to Contractors, Vendors and Consultants: Prior to the execution of a formal contract subject to this Procurement Ordinance, the Procurement Services Director shall establish a formal payment schedule and payment terms within the agreement. Such terms and conditions shall be consistent with the requirements of all applicable laws and the formal solicitation documents. In accordance with F.S. § 218.735(8), the Procurement Services Director may establish, subject to Board approval, procedures to re4uce to 5% the amount of retainage withheld from each subsequent progress payment issued to a contractor where applicable. The Procurement Services Director may establish, in writing, a schedule(s) to further reduce the percentage of cumulative retainage held throughout the course of the project schedule where warranted and according to law. Recommendation to reduce the percentage of cumulative retainage shall be subject to the following: a. That the term "cumulative retainage" is defined to mean "the dollar total of the funds retained from all payments issued under the contract divided by the gross dollar total of all monthly pay requests (or the total of all payment amounts deemed allowable by the project manager, whichever is less)". 30 b. That any decision to reduce retainage shall be formally communicated in a letter to the Contractor's representative and that the letter affirmatively states that the Contractor has performed the contract work in a satisfactory manner. c. That the cumulative retainage not be adjusted until at least 50% of the work has been completed and payment has been issued. d. That the Procurement Services Director's letter expressly sets forth the percentage of cumulative retainage to be held for the remaining pay requests. 11. The Procurement Services Director may authorize the partial release or payment of contract retainage to the contractor prior to final completion of all project work provided that: a. The contractor has performed in a satisfactory manner to date as verified in writing by the Project Manager. b. The total aggregate work under the agreement is at least 50% completed and accepted (i.e.; payments equaling at least 50% of the contract amount less retainage have been issued). c. The retainage dollar amount to be released is based upon and consistent with the prevailing percentage of cumulative retainage being held at the time that the retainage is released. SECTION TWENTY: Performance and Payment Bonds. A contractor or vendor shall provide a surety bond from a surety company to guarantee full and faithful performance of a contract obligation and the payment of labor and material expended pursuant to a contract whenever, and in such amounts, as required by statute or otherwise as deemed necessary by the Procurement Services Director. An irrevocable letter of credit from a financial institution operating within the State of Florida (or other alternative forms of surety as permitted under Florida law) may be sufficient in place of the performance bond if so provided for in the bid and contract documents. All such bonds or letters of credit shall be 31 approved as to fonn by the County Attorney, and held by the Clerk's Board Minutes and Records Department. SECTION TWENTY ONE: Unauthorized Purchases. All purchases made shall be consistent and in compliance with the Procurement Ordinance. Any purchase or contract made contrary to the provisions hereof and contrary to Florida law shall not be approved and the County shall not be bound thereby. SECTION TWENTY-TWO: Prohibition against Subdivision. No contract or purchase shall be subdivided to avoid the requirements of this Procurement Ordinance or of State law. SECTION TWENTY-THREE: Protest of Bid or Proposal Award. The purpose of this section is to accommodate legitimate protests concerning fonnal competitive solicitations and recommended contract awards prior to award of a contract by the Board of County Commissioners. 1. Any respondent to an IFB, ITN, RFP, IFQ or RPS who alleges to be aggrieved in connection with the solicitation or award of a contract, (hereafter referred to as "the protesting party") may protest to the Procurement Services Director, who shall serve as the sole recipient of any and all notices of intent to protest and all formal protests. 2. With respect to a protest of the tenns, conditions and specifications contained in a solicitation, including any provisions governing the methods for evaluation of bids, proposals or replies, awarding contracts, reserving rights for further negotiation or modifying or amending any contract, the protesting party shall file a notice of intent to protest within three (3) days, excluding weekends and County holidays, after the first publicationt whether by posting or formal advertisement of the solicitation. The formal written protest shall be filed within five (5) days of the date the notice of intent is filed. Fonnal protests of the terms, conditions and specifications shall contain all of the information required for the Procurement Services Director, to render a decision on the fonnal protest and determine whether postponement of the bid opening or proposal/response closing time is appropriate. The Procurement Services Director's 32 decision shall be considered final and conclusive unless the protesting party files an appeal of the Procurement Services Director's decision. 3. Any actual bidder or respondent to who desires to protest a recommended contract award shall submit a notice of intent to protest to the Procurement Services Director within three (3) calendar days, excluding weekends and County holidays, from the date of the initial posting of the recommended award. 4. All formal protests with respect to a recommended contract award shall be submitted in writing to the Procurement Services Director for a decision. Said protests shall be submitted within five (5) calendar days~ excluding weekends and County holidays, from the date that the notice of intent to protest is received by the Procurement Services Director, and accompanied by the fee, as set forth below. The protesting party must have standing as defined by established Florida case law to maintain a protest. The formal protest shall contain, but not be limited to the following information: a. Name and address of County Agency affected and the solicitation number and title. b. The name and address of the protesting party. c. A statement of disputed issues of material fact. If there are no disputed material facts, the written letter must so indicate. d. A concise statement of the ultimate facts alleged and of any relevant rules, regulations, statutes, and constitutional provisions entitling the protesting party to relief. e. The protesting party's entitled demand for the relief. f. Such other information as the protesting party deems to be material to the issue. The formal protest shall contain all arguments, facts or data supporting and advancing the protestor's position. Under no circumstances shall the protestor have the right to amend, 33 supplement or modify its fonnal protest after the filing thereof. Nothing herein shall preclude the County's authority to request additional information from the protesting party or other bidders or proposers in conjunction with the review and rendering of decisions on the protest, including any subsequent appeal. 5. In the event of a timely protest of contract award consistent with the requirements of this section, the Procurement Services Director shall not proceed further with the award of the contract until all appropriate administrative remedies as delineated under this section have been exhausted or until the Board of County Commissioners makes a detennination on the record that the award of a contract without delay is in the best interests of the County. During this process, the protesting party shall limit their communications with the County to the Office of the County Attorney, and neither the protesting party, their agents or their representatives shall have any private contact or discussions with individual County Commissioners, the County Manager, other County employees, or any independent hearing officer (where applicable) regarding the protest except such communications as may be required or permitted during a hearing, if applicable, or a meeting of the County Commission wherein the solicitation or award is to be considered. 6. The Procurement Services Director shall review the merits of each timely protest and in consultation with the Contract Manager and other appropriate County staff, issue a decision stating the reasons for the decision and the protesting party's rights of appeal under this section. Said decision shall be in writing and mailed or otherwise furnished to the protesting party. The decision of the Procurement Services Director shall be final and conclusive unless the protesting party delivers a subsequent written notice of appeal to the County Manager within three (3) calendar days, excluding weekends and County holidays from the date of receipt of the decision. In filing a written objection to the Procurement Services Director's decision, the protestor shall not introduce new arguments or alter in any other way their protest submission. An appeal of the Procurement Services Director's decision shall be limited to a review of the grounds set forth in the formal protest, and no new grounds or arguments will be introduced or considered. 7. In the event of a subsequent appeal pursuant to subsection F, the County Manager shall determine whether to appoint an independent Hearing Officer to review the formal protest 34 ···.·· and the Procurement Services Director's decision. The Hearing Officer's review shall be limited to the grounds set forth in the formal protest. The protesting party shall have the burden of proof. The Hearing Officer shall consider the formal protest, the Procurement Services Director's decision, and supporting documents and evidence presented at the hearing. In any hearing, irrelevant, immaterial or unduly repetitious evidence shall be excluded. All other evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs shall be admissible whether or not such evidence would be admissible in a trial in the courts of Florida. The Hearing Officer may grant the motion of any person having standing under Florida law to intervene in the proceedings. Persons or parties shall have the right to be represented by counsel in the proceedings, to call witnesses, and present evidence; provided, however, that the Hearing Officer shall not have the right to compel attendance of witnesses or to permit or compel any discovery. The Hearing Officer will have a maximum of 60 days to schedule and conduct a hearing into the matter and issue a recommended finding of fact and an opinion in writing to the County Manager or designee for submission to the Board of County Commissioners. Should the Hearing Officer find in favor of the County, the protesting party pay, in full, the costs of the Hearing Officer. If the Hearing Officer's recommended decision is in favor of the protesting party, then the County will assume this cost. The County Manager's discretion as to whether to appoint a Hearing Officer shall in no way afford the protestor the right to demand such an appointment or hearing. The decision of a Hearing Officer on a protesting party's appeal shall be submitted to the Board for its consideration as part of a final award decision. Nothing herein sha,ll be construed as creating a right of judicial review of the Hearing Officer's decision, nor shall such decision be binding upon the Board. Additionally, nothing herein shall be construed as limiting the Board's right to reject any and all bids or proposals. 8. Decisions of the Procurement Services Director and Hearing Officer (where applicable) will be provided to the protestor prior to the award recommendation being presented to the Board of County Commissioners. Neither the County Manager's decision nor the Hearing Officer's recommended decision shall be construed as an award recommendation triggering additional rights of protest pursuant to this policy. Notwithstanding anything set forth herein to 35 the contrary, the Board of County Commissioners shall retain the authority to make the final award decision. 9. Failure to file a formal protest within the time and manner prescribed by this policy shall constitute a waiver of the right to protest by any protesting party as defmed by subsection "A 11 of this policy. 10. As a condition of filing a fonnal protest to the Procurement Services Director the protesting party shall submit a non*refundable filing fee for the purpose of defraying the costs of administering the protest. The filing fee shall be submitted with the formal protest. Failure to pay the filing fee shall result in the denial of the protest. The amount of the filing fee shall be as follows: !Estimated Contract Amount lfiling Fee $250,000.00 or less ~500.00 $250,000.01 to $500,000.00 $1,000.00 $500,000.01 to $5 million $3,000.00 $5 million or more $5,000.00 This fee may be modified by Resolution of the Board of County Commissioners. SECTION TWENTY -FOUR: Contract Claims. All actual or prospective claims arising against the County from contractors, vendors or any other party in direct privity with the County to provide goods or services shall first be directly addressed by the parties' administrative representatives in a manner consistent with the agreement between the parties and in accordance with the County's procedures Manual. For any prospective or actual claims or disputes arising under any contract entered into by the County, the Procurement Services Director must determine the facts of the dispute. All 36 contract claims should follow the County's Vendor Payment Dispute Resolution Process outlined in SECTION SIXTEEN. SECTION TWENTY -FIVE: Inspection and Testing. The Procurement Services Director shall inspect, or supervise the inspection of, or cause to be inspected, all deliveries of commodities or services to determine their conformance with the specifications set forth in an order or contract. 1. Inspection by Operating Department: The Procurement Services Director shall authorize operating departments to inspect, prior to use, all deliveries made to such operating departments under rules and regulations which the Procurement Services Director shall prescribe. 2. Testing: The Procurement Services Director shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. In the performance of such tests, the Procurement Services Director shall have the authority to make use of laboratory facilities of any Agency of the County or of any contracted outside laboratory. SECTION TWENTY-SIX: Purchasing Card Program. The Procurement Services Director shall be responsible for the overall management and operation of the County's purchasing card program in conformance with the Collier County Administrative Practices and Procedures Manual. For the purpose of this Procurement Ordinance, a purchasing card is a credit card officially assigned to specific employees under the purview of the Board of County Commissioners' agency for the purpose of transacting small and/or strategic purchases. The Procurement Services Director shall be authorized to assign cards to employees for these purchases. The Procurement Services Director shall be responsible for establishing the following dollar limits for each assigned card: 1. Single Transaction Limit: Not to exceed $1,000.00 per card unless otherwise authorized by the Procurement Services Director. 37 2. Monthly Spending Limit: Not to exceed $10,000.00 per card unless otherwise authorized by the Procurement Services Director. 3. Strategic Purchases: The Procurement Services Director may utilize (or delegate the authority to other Agency staff to utilize) a purchasing card to place orders that exceed the limits set forth under this section in instances where one or more of the following is true: a. Where the purchase is to address a valid public emergency; or b. Where the County will earn revenue through card program rebates; or c. Where a vendor is requiring the County to order by purchasing card. 4. Sales Tax Compliance: Pursuant to F.S. § 212.08(6), County purchases transacted with vendors within the State of Florida are exempt from the State sales and use tax. In such instances, it is the responsibility of the cardholder to provide the vendor with the appropriate tax exemption information when the card is presented to the vendor. In the event that the cardholder fails to provide the vendor with the appropriate tax exemption information when the card is presented the cardholder may be responsible for payment of the tax. It is the position of the Board that it is not cost effective or in the public interest to require a cardholder to seek a credit for sales tax collected when the total sale does not exceed $300. In the event that the total sale exceeds $300, the cardholder's Director is responsible to ensure the tax is returned to the County for the purchase. In all such instances, the Procurement Services Director shall ensure that the purchase has been approved subject to all other provisions of this policy. All fixed assets purchased using a purchasing card shall be properly reported to the Fixed Assets Section of the Clerk of Courts Finance Division so that it can be properly recorded. SECTION TWENTY-SEVEN: Conflict of Interest. The procurement of goods and shall comply with all applicable state, local and federal laws concerning ethics and conflict of interest. SECTION TWENTY-EIGHT: Debarment and Suspension. 38 The County Manager may suspend and/or debar vendors, contractors, consultants and other interested and affected persons from active participation in obtaining County contracts upon approval of the Board. The purpose of any such action shall be to protect the County's interests and the integrity of the County's contracting process. The suspension and debarment processes shall be considered to be separate from and in addition to the award evaluation and vendor performance evaluation processes authorized elsewhere in this Procurement Ordinance. 1. Definition of Terms: For the purposes of this section, the following terms have been defined as follows: a. Affiliate refers to associated business entities or individuals that control or could control the contractor or are controlled by the contractor or could be controlled by the contractor. b. Civil Judgment refers to a judgment or finding of a civil offense by any court of competent jurisdiction. c. Contractor means any individual or legal entity that: (1) Directly or indirectly (e.g.; through an affiliate), submits offers for or is awarded, or reasonably may be expected to submit offers for or be awarded, a County contract for construction or for procurement of commodities and services, including professional services; or (2) Conducts business, or reasonably may be expected to conduct business, with the County as an agent, surety, representative or subcontractor of another contractor. d. Conviction means a judgment or conviction of a criminal offense, felony or misdemeanor, by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere. 39 e. Debarment means action taken by the County to exclude a contractor from County contracting and County-approved subcontracting for a reasonable, specified period as provided herein. f. Preponderance of the Evidence means proof by information that, compared with that opposing it, leads to the conclusion that the fact at issue is more probably true than not. g. Subcontractor: Any individual or legal entity that offers or agrees to provide commodities or services to a party deemed to be a contractor under this section. h. Suspension refers to action taken by the County Manager to temporarily disqualify a contractor from County contracting or County-approved subcontracting pending action of the Board. 2. Suspension: The Procurement Services Director shall recommend to the County Manager the suspension of a contractor, subcontractor or person from consideration for award of contracts if there appears to be a reasonable basis for debarment as set forth herein. If a suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. The suspension period shall not exceed tmee six (6) months without the approval of the Board of County Commissioners. 3. Debarment: a. Causes for Debarment: The prospective causes for debarment include one or more of the following: (1) Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract. (2) Conviction under state or federal law of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business 40 --··-··--- integrity or business honesty which currently, seriously and directly affects responsibility as a contractor. (3) Conviction under state or federal antitrust laws arising out of the submission of bids, proposals or other competitive offers. (4) Violation(s) of County contract(s) provisions, which is (are) deemed to be serious and to warrant debannent, including the failure, without good cause, to perfonn in accordance with the terms, conditions, specifications, scope, schedule or any other provisions of the contract(s). (5) Refusal to provide bonds, insurance or other required coverage and certifications thereof within a reasonable time period. ( 6) Refusal to accept a purchase order, agreement or contract, or perform accordingly provided such order was issued timely and in conformance with the solicitation and offer received. (7) Presence of principals or corporate officers in the business of concern, who were principals within another business at the time when the other business was suspended or debarred within the last three (3) years under the provisions of this section. (8) Violation of the ethical standards set forth under applicable state or county laws. (9) Debarment of the contractor by another public agency. 41 --------·----··---- (10) Submitting false invoices or invoices that mislead, misrepresent the true costs incurred or falsely identifY either a source of material or a provider of a service. ( 11) Any other cause deemed to be so serious and compelling as to materially affect the qualifications or integrity of the contractor. b. Procedure: ( 1) The county department requesting the suspension or debarment action shall submit to the Procurement Services Director a written complaint setting forth the reason(s) for seeking debarment. (2) The Procurement Services Director shall review the complaint, verify whether it is compliant with the provision of this Procurement Ordinance, direct any appropriate changes and forward the complaint to the contractor. (3) The contractor shall review the complaint and shall provide a written response (with supporting documentation) to each allegation. The response shall be provided to the Procurement Services Director within ten (10) business days of receipt of the notice of allegations. In the event that the contractor fails to respond to the complaint within the prescribed time period, the complaint, as forwarded to the contractor, shall become an effective suspension or debarment decision without further appeal. (4) In the event that the contractor files a timely and complete response to the complaint and the suspension or debarment action is based upon a conviction, judgment or other event(s) where there 42 is no significant dispute over material facts, the Procurement Services Director shall determine the period of debarment on the basis of the undisputed material information set forth or referenced in the complaint, the contractor's reply and the parameters set forth in this section. In the event that the Contractor objects to the Procurement Services Director's recommendation, the Contractor shall have a maximum of three (3) business days to file an appeal of the debarment decision with the Procurement Services Director. The appeal will be forwarded to and considered by the County Manager, who will review the record compiled by the initiating department and the contractor. Should the County Manager overturn the Procurement Services Director's decision; the County Manager shall formally cite the reasons for doing so. (5) In the event that the contractor files a timely and complete reply to the complaint and where the facts are in dispute, the Procurement Services Director will convene a committee (hereinafter referred to as "the committee") consisting of at least three individuals who will review the complaint and the contractor's reply. The County Manager shall formally appoint the committee, which will generally consist of county employees, none of whom shall be a member of the department initiating the complaint. At the discretion of the County Manager, a member from private industry with a particular area of relevant expertise may be appointed to the committee, provided that this member is not a direct or indirect competitor of the firm in question. The Office of the County Attorney shall appoint a representative to attend the committee's review of the findings. The representative shall not be considered a voting member of the committee, but shall be available to provide legal counsel to the committee as necessary. All members appointed to serve on the debarment committee shall disclose, to 43 the Procurement Services Director any actual or prospective conflicts of interest at the time of appointment or at the time in which the member becomes aware of the actual or prospective conflict. ( 6) The Procurement Services Director shall chair the committee and serve as the Procurement Department's representative to the committee. The Procurement Services Director shall preside over and facilitate the deliberations of the committee as a non-voting member and serve as the County's liaison to the Contractor. All voting committee members are prohibited from having any communication regarding the issue outside the committee deliberations with any of the parties involved in the specific suspension or debarment or their representatives until after the committee decision has been issued or, in the event of an appeal of that decision by the contractor, until the conclusion of the appeal process. All committee deliberations are subject to F.S. § 286.011. (7) Where the material facts are in dispute, the committee shall evaluate the evidence, judge the credibility of witnesses and base its decision upon the preponderance of the evidence. Should the contractor fail to appear at the hearing, the contractor shall be presumed to be unresponsible and or non-responsive and shall be subject to suspension or debarment. The committee decision shall be by a majority vote of those voting members in attendance. The committee shall be the sole trier of fact. In the event that the committee decides to impose a debarment, the decision will formally include, but not be strictly limited to the following information: (i) The specific reasons for the action; 44 (ii) The scope of the debarment; and (iii) The period of debarment, including the effective and expiration dates. The committee's decision shall be issued in writing within 20 business days of the conclusion of the hearing unless the committee extends this period for good cause. (8) The Procurement Services Director shall forward the committee's decision to the contractor and affiliates involved. Should the contractor object to the committee's decision, the contractor shall have a maximum of three (3) business days to file an appeal of the decision with the Procurement Services Director. The appeal will be forwarded to and considered by the County Manager, who will review the record compiled by the initiating department, the contractor and the committee. Should the County Manager overturn the committee's decision; the County Manager shall formally cite the reasons for doing so. Final recommendation for debarment shall be approved by the Board. c. Debarment Period: (1) The committee shall recommend the period of debarment. The debarment period shall be commensurate with the severity of the cause(s) and approved by the Board. 45 -----------~ (2) The committee (having the same or different composition) may recommend to the Board a reduction in the debarment period upon a written request from the contractor to do so, based on one or more of the following reasons: (i) Newly discovered material evidence; (ii) A reversal of the conviction, civil judgment or other action upon which the debarment was based; (iii) Bona fide change in ownership or management; (iv) Elimination of other causes for which the debarment was imposed; or (v) Other reasons that the committee might deem appropriate. The contractor's request shall be submitted to the Procurement Services Director in writing and shall be based on one or more of the aforementioned reasons. 3. The decision of the Board regarding a reduction of the debarment period is final and not subject to appeal. d. The Effects of Debarment: ( 1) Debarred contractors are excluded from receiving County contracts. Departments shall not solicit offers from, award contracts to, or consent to subcontractors with debarred contractors. Debarred contractors are excluded from conducting 46 business with the County as agents, representatives, subcontractors or partners of other contractors. (2) The Procurement Services Division-shall maintain a list of firms places under a Suspended or De bared category and shall make that list known as a public record. (3) Divisions may not renew or otherwise extend the duration of current contracts with debarred contractors in place at the time of the debarment unless the Board determines that it is in the best interests of the County to allow the contractor to continue or finish the work within an additional, limited period oftime. ( 4) When a debarred contractor is proposed as a subcontractor for any subcontract subject to County approval, the department shall not consent to subcontracts with such contractors. (5) The County shall not be responsible for any increases in contract costs or other expenses incurred by a contractor as a result of rejection of proposed subcontractors, provided that the subcontractor was debarred prior to the submission of the applicable bid or proposal offer. e. The Scope of Debarment: Debarment applies to all officers, Directors, Managers, principals, Procurement Services Directors, partners, qualifiers, divisions or other organizational elements of the debarred contractor, unless the debarment decision is limited by its terms to specific divisions, organizational elements or commodity/services. The committee's decision includes any existing affiliates of the contractor if they are specifically named and are given written notice of the proposed debarment and an 47 . :- opportunity to respond. Future affiliates of the contractor are subject to the pre-existing terms of the committee's decision. SECTION TWENTY-NINE: Waiver of Ordinance. The Board of County Commissioners shall have the authority to waive any and all Procurement Ordinance provisions within lawful guidelines and upon fonnal Board action. SECTION TIDRTY: Conruet and Severability. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION TIDRTY-ONE: Inclusion in the Code of Laws and Ordinances. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinance of Collier County, Florida. The sections of the Ordinance may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section,'' "article," or any other appropriate word. SECTION THIRTY-TWO: Effective Date. This Ordinance shall be effective upon filing with the Department of State. 48 :,.______________ - · .. :. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this 14th day of March , 2017. ATIEST: DWIGHT E. BROCK~ Clerk ~-o) , Attest as to Chairman.'s \ signature only. ' • · BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA B:~~.~ 49 This ordinance filed with •h• Secretory O'f ~te's Office thf' ..J..5...~oy of ~kL . 2-l?.J.J.. and ocknowledgeme,t of that filin received this \ 5 ~ doy of c By-t-~=-----r~--,.~H- RICK SCOTT Governor March 15, 2017 FLORIDA DEPARTMENT of STATE Honorable Dwight E. Brock Clerk of the Circuit Court Collier County Post Office Box 413044 Naples, Florida 34101-3044 Attention: Martha Vergara, BMR Senior Clerk Dear Mr. Brock: KEN DETZNER Secretary of State Pursuant to the provisions of Section 125.66, Florida Statutes, this will acknowledge receipt of your electronic copy of Collier County Ordinance No. 2017-08, which was filed in this office on March 15, 2017. Sincerely, Ernest L. Reddick Program Administrator ELR/Ib R. A. Gray Building • 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270 www.dos.state.fl.us