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345 Park Avenue
New York, NY 10017
Telephone 212 909 5600
Fax 212 872 3001
To the Partners of Ernst & Young LLP
and the AICPA Center for Public Company Audit Firms Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Ernst
& Young LLP (the Firm) applicable to non-SEC issuers in effect for the year ended June 30,
2007. The Firm's accounting and auditing practice applicable to SEC issuers was not reviewed
by us since the Public Company Accounting Oversight Board (PCAOB) is responsible for in-
specting that portion of the Firm's accounting and auditing practice in accordance with PCAOB
requirements. A system of quality control encompasses the Firm's organizational structure and
the policies adopted and procedures established to provide it with reasonable assurance of com-
plying with professional standards. The elements of quality control are described in the State-
ments on Quality Control Standards issued by the American Institute of Certified Public Ac-
countants (the AICPA). The design of the system, and compliance with it, are the responsibilities
of the Firm. Our responsibility is to express an opinion on the design of the system and the
Firm's compliance with that system based on our review.
Our review was conducted in accordance with standards established by the Peer Review Commit-
tee of the AICP A Center for Public Company Audit Firms and included procedures to plan and
perform the review that are summarized in the attached description of the peer review process.
Our review would not necessarily disclose all weaknesses in the system of quality control or all
instances ofIack of compliance with it since it was based on selective tests. Because there are in-
herent limitations in the effectiveness of any system of quality control, departures from the sys-
tem may occur and not be detected. Also, projection of any evaluation of a system of quality con-
trol to future periods is subject to the risk that the system of quality control may become inade-
quate because of changes in conditions, or that the degree of compliance with the policies or pro-
cedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice applicable to
non-SEC issuers of Ernst & Young LLP in effect for the year ended June 30, 2007, has been de-
signed to meet the requirements of the quality control standards for an accounting and auditing
practice established by the AICPA, and was complied with during the year then ended to provide
the Firm with reasonable assurance of complying with applicable professional standards.
As is customary in a peer review, we are issuing a letter under this date that sets forth comments
relating to certain policies and procedures or compliance with them. The matters described in
that letter were not considered to be of sufficient significance to affect the opinion expressed in
this report.
KPIV(Gr LL"'P
December 20, 2007
....
I(PMGLLP,KI-'MGLLP,a u.s,illTl<ledl,"billlyparlnersn,p,'s
a 'nernber of KPMG InTernaloOnol. n SWIS' Jssociatior
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Attachment to the Peer Review Report of Emst & Young LLP
Description of the Peer Review Process
Overview
Firms enrolled in the AICP A Center for Public Company Audit Firms (the Center) have their sys-
tem of quality control periodically reviewed by independent peers. These reviews are system and
compliance oriented with the objective of evaluating whether:
The reviewed firm's system of quality control for its accounting and auditing practice appli-
cable to non-SEC issuers has been designed to meet the requirements of the Quality Control
Standards established by the AICPA.
The reviewed firm's quality control policies and procedures applicable to non-SEC issuers
were being complied with to provide the firm with reasonable assurance of complying with
professional standards.
A peer review is based on selective tests and directed at assessing whether the design of and
compliance with the firm's system of quality control for its accounting and auditing practice ap-
plicable to non-SEC issuers provides the firm with reasonable, not absolute, assurance of comply-
ing with professional standards. Consequently a peer review on the lirm's system of quality con-
trol is not intended to, and does not, provide assurance with respect to any individual engagement
conducted by the firm or that none of the financial statements audited by the firm should be re-
stated.
The Center's Peer Review Committee (PRC) establishes and maintains review standards. At
regular meetings and through report evaluation task forces, the PRC considers each peer review,
evaluates the reviewer's competence and performance, and examines every report, letter of com-
ments, and accompanying response from the reviewed firm that states its corrective action plan
before the peer review is finalized. The Center's staff plays a key role in overseeing the perform-
ance of peer reviews working closely with the peer review teams and the PRe.
Once the PRC accepts the peer review reports, letters of comments, and reviewed firms' re-
sponses, these documents are maintained in a file available to the public. In some situations, the
public file also includes a signed undertaking by the firm agreeing to specific follow-up action
requested by the PRe.
Firms that perform audits or playa substantial role in the audit of one or more SEC issuers, as de-
fined by the Public Company Accounting Oversight Board (PCAOB) are required to be registered
with and have their accounting and auditing practice applicable to SEC issuers inspected by the
PCAOB. Therefore, we did not review the firm's accounting and auditing practice applicable to
SEC issuers.
~
Plannin'Z the Review for the Firm's Accountine and Auditing Practice Avv/icable to Non-SEe Issuers
To plan the review of Ernst & Young LLP, we obtained an understanding of (I) the nature and
extent of the firm's accounting and auditing practice, and (2) the design of the firm's system of
quality control sufficient to assess the inherent and control risks implicit in its practice. Inherent
risks were assessed by obtaining an understanding of the firm's practice, such as the industries of
its clients and other factors of complexity in serving those clients, and the organization of the
firm's personnel into practice units. Control risks were assessed by obtaining an understanding of
the design of the firm's system of quality control, including its audit methodology, and monitor-
ing procedures. Assessing control risk is the process of evaluating the effectiveness of the re-
viewed firm's quality control system in preventing the performance of engagements that do not
comply with professional standards.
Performinf! the Review for the Firm's Accountinf! and Auditinf! Practice Aoo/icable to Non-SEe
b;suers
Based on our assessment of the combined level of inherent and control risks, we identified prac-
tice units and selected engagements within those units to test for compliance with the firm's sys-
tem of quality control. The engagements selected for review included audits performed under the
Government Auditing Standards, audits performed under FDIC lA, multi-office audits, and audits
of Employee Benefit Plans. The engagements selected for review represented a cross-section of
the firm's accounting and auditing practice with emphasis on higher-risk engagements. The en-
gagement reviews included examining working paper files and reports and interviewing engage-
ment personnel. We also reviewed the supervision and control of portions of engagements for
non-SEC issuers performed outside the United States.
The scope of the peer review also included examining selected administrative and personnel files
to determine compliance with the lirm's policies and procedures for the elements of quality con-
trol pertaining to independence, integrity, and objectivity; personnel management; and acceptance
and continuance of clients and engagements. Prior to concluding the review, we reassessed the
adequacy of scope and conducted an exit conference with lirm management to discuss our find-
ings and recommendations.
dj$:9
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345 Park Avenue
New York, NY 10017
Telephone 212 909 5600
Fax 212 872 3001
December 20, 2007
To the Partners of
Ernst & Young LLP
and the AICP A Center for Public Company Audit Firms Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Ernst
& Young LLP (the Firm) applicable to non-SEC issuers in effect for the year ended June 30,
2007, and have issued our report thereon dated December 20,2007. The matters described below
were not considered to be of sufficient significance to affect the opinion expressed in that report,
which should be read in conjunction with this letter.
Engagement Performance
Comment - Thc Firm has comprehensive policies that require audit documentation sufficient to
enable an experienced auditor having no previous connection with an engagement to understand
the nature, timing, extent, and results of the procedures performed, evidence obtained, and con-
clusions reached. In some instances, we believe more robust or comprehensive documentation
was needed to support the conclusions reached by engagement teams in the following key areas:
o Use of'Service Orf!anizations - In some instances, the engagement team did not fully
document its testing of user control considerations identified in the SAS No. 70 re-
port.
o Fair Value and Usinf! the Work of a Svecialist - In some instances, there was insuffi-
cient documentation pertaining to the audit procedures performed over management
data used to compute fair values and the engagement team's understanding and
evaluation of the assumptions used by the specialist in its determination of fair value.
. Income Taxes - In some instances, there was insufficient documentation of audit pro-
cedures performed pertaining to the testing of deferred income tax balances and
valuation allowances.
o Combined Risk Assessments - In some instances, there was insufficient documenta-
tion or inconsistencies in the documentation pertaining to changes the engagement
team made in its preliminary combined risk assessment as a result of changes during
the course of the audit.
We were able to satisfY ourselves through discussions with the engagement team or review of
other supplemental documentation that the Firm is taking or has taken appropriate actions to
remediate the deficiencies noted above.
Recommendation - We note that commencing with its 2007 audits, the Firm is deploying a new
automated documentation tool that it believes will assist engagement teams in complying with
firm policies and professional standards pertaining to documentation. We recommend that the
Firm also emphasize the above documentation matters by reminding its executives of the impor-
tance of their involvement in supervising and reviewing audit engagements...
.... KPMG LLP, KPMG LLP au.s.llmiledll.ab'btypartnefs~"p,iS
a member of KPMG Intemat,o".1. a SWISS associatIOn.
{!IL.-
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To the Partners of Ernst & Young LLP
and the Center for Public Company Audit Firms
Peer Review Committee
December 20, 2007
Page 2
Employee Benefit Plans
Comment ~ The Firm has comprehensive policies regarding the audits of employee benefit plans,
which include guidance regarding the audit procedures to be performed to verify the existence
and market values of investments held by such plans. In some instances, engagement teams
placed reliance on service provider's control reports, principally in the areas of investments, to
limit the extent of the additional substantive audit procedures to be performed with respect to in-
vestment values at the plan year end. However, we believe that in certain instances, the engage-
ment team did not sufficiently document the substantive audit procedures performed over invest-
ment values of the plan assets at year-end to comply with professional standards. We were able to
satisfY ourselves through discussions with the engagement team that the Firm is taking or has
taken appropriate actions to remediate the deficiencies noted above.
Recommendation ~ The Firm should emphasize its policies regarding audit documentation of the
substantive audit procedures performed over investment values at year end when placing reliance
on service provider's control reports.
Comment - The Firm has comprehensive policies regarding the content of its documentation per-
taining to each audit engagement. In some instances, audit procedures performed during the audit
of the plan sponsor were also relied upon for the audit of the employee benefit plan, for example,
audit procedures pertaining to payroll and investments, without sufficient documentation in the
files for the audit of the employee benefit plan. We were able to satisfy ourselves through discus-
sions with the engagement team and review of certain audit work papers at the plan sponsor level
that sufficient audit procedures had been performed.
Recommendation ~ For employee benefit plan audits, the Firm should emphasize its policies re-
garding the required contents of its audit documentation for each audit when the Firm audits both
the employee benefit plan and the plan sponsor.
KPM. c::,. UP
December 20, 2007
M-
d/fD/2M f
fkIn 'll731t
ill ERNST & YOUNG
. Emst& Young up
5 Times Square
New York, New York 10036
. Phone: (212) 773-3000
www.evcom
December 20, 2007
AICP A Center for Public Company Audit Firms Peer Review Committee
Dear Committee Members:
We are pleased to provide our response to the letter of comments issued in connection with our
peer review for the year ended June 30, 2007. This letter should be read in connection with that
letter. We believe the peer review program assists us in identifYing areas where we can continue
to improve our performance and quality control systems and processes.
Our overriding objective is to make certain that all aspects of our auditing and quality control
processes are of high quality. As a result, the firm is in the process of deploying a new global
audit documentation platform designed to help drive a more consistent and appropriate execution
and documentation of our Global Audit Methodology. We believe the new platform also has
been designed to better enable the supervision and review of the work performed by our
engagement teams. The platform has been pilot testcd on a sample of calendar 2006 audits and is
being deployed for initial use on calendar 2007 audits.
We have been emphasizing during 2007 and will continue to emphasize awareness regarding the
matters noted in the letter of comments through internal communications and learning programs.
Examples of these activities include:
. Accounting and Auditing Update sessions held in the Fall/Winter 2007, which generally
include partners through seniors. These sessions covered current A&A matters including
the results of all internal and external inspection activitics.
. Audit Release issued in December 2007. This communication covered the areas
identified through all inspection activities along with excerpts and summary comments
from our firm guidance reinforcing each of the topics.
. Audit Quality Executive Events annually held in the Spring/Summer. These events are
attended by partners through managers and focus in-depth on current auditing topics and
the importance of their involvement in supervising and reviewing audit engagements.
. Employee Benefit Plan annual training program held in the Spring.
In addition to these actions, our 2008 internal inspection program will focus on the matters noted
in the letter of comments.
~TnLLP
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2008
COLLIER COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
THOMAS K. HENNING, CHAIRMAN
FRED W. COYLE
DONNA L. FIALA, VICE-CHAIRMAN
JAMES N. COLETTA, Jr.
FRANK HALAS
COUNTY MANAGER
JAMES V. MUDD
COUNTY ATTORNEY
JEFFREY A. KLATZKOW
CLERK OF THE CIRCUIT COURT
AND
CHIEF FINANCIAL OFFICER
DWIGHT E. BROCK
DIRECTOR OF FINANCE AND ACCOUNTING
CRYSTAL K. KINZEL
Prepared by the Finance and Accounting Department
I
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COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS
tjlo(2fJft tL
13A "
INTRODUCTORY SECTION
Transmittal Letter....
Certificate of Achievement..
Page
......1
.............xxv
FINANCIAL SECTION
Report of Independent Certified Public Accountants.......
.................. 1
Management's Discussion and Analysis (Unaudited) ........
3
BASIC FINANCIAL STATEMENTS:
Statement of Net Assets....... ..................
Statement of Activities .............. .
Balance Sheet - Governmental Funds. .................... ....................... . .....................
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets .,"
Statement of Revenues, Expenditures and Changes in Fnnd Balances - Govemmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental
Funds to the Statement of Activities."'...... .................. ................ ................... ......................
General Fnnd - Statement of Revenues, Expenditures and Changes in Fnnd Balances - Budget and Actual (Non-GAAP)...
Community Redevelopment - Statement of Revenues, Expenditures and Changes in Fnnd Balances -
Budget and Actual (Non~GAAP)...... .... ......... .... ......... ........................ ... ..... ....... .......... .........
Statement of Net Assets - Proprietary Fnnds. .......................................... ................... .................
Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Fnnds
Statement of Cash Flows - Proprietary Fnnds ....... ................................. .........................
Statement of Fiduciary Assets and Liabilities - Agency Funds ......"....................... ................. ...
Notes to the Financial Statements.............. ........................
Required Supplementary Information... ................. ................
14
.. ...............16
18
................. 19
..........20
...21
22
..25
.......26
..................28
.......29
.......31
. ....33
...........78
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS:
Norunajor Governmental Funds
Combining Balance Sheet. . ................... ........................ . ..................... ................. ..82
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .....90
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ~ Budget and Actual (Non~GAAP) .....................98
Norunajor Enterprise Funds
Combining Statement of Net Assets ......................
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets.
Combining Statement of Cash Flows....
122
........ 123
. ..124
Internal Service Fnnds
Combining Statement of Net Assets ................ ................
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ..
Combining Statement of Cash Flows.. ................................
........... 128
.......129
.....130
FiduciaJ;y Funds
Combining Statement of Fiduciary Assets and Liabilities..
Combining Statement of Changes in Assets and Liabilities p' .
..134
....135
Component Units
Combining Statement of Net Assets. ...................... .....................
Combining Statement of Revenues, Expenditures and Changes in Net Assets ...
. 138
...139
COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30,2008
TABLE OF CONTENTS - CONTINUED
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STATISTICAL SECTION (DNAUDITED)
Net Assets by Component ............................. ,............ .......................... ........................, ............................ ...........142
Change in Net Assets ......... ................ ....................... ...................... ......... 143
Governmental Activities Tax Revenues by Source.. .................. ............ .................. ...... ........................145
Fnnd Balances of Govemmental Funds ................ .... .................................. ... ............................. .... ....... ...... 146
Changes in Fund Balances of Governmental Funds ...... .......................... .................... .............. 147
Assessed Value and Estimated Actual Value of Taxable Property ................. .............................. ....................... .., .............. 148
Property Tax Rates - All Direct and Overlapping Governments. ................................. ................... .................. ............... . ...... 149
Principal Tax Payers County-Wide.. ...................... ................. ..................... .....150
Property Tax Levies and Collections...... ....................... 151
Ratios of Outstanding Debt by Type ...... ................... .............................. ...... 152
Ratios of General Bonded Debt Outstanding .................. ............... 153
Legal Debt Margin Information ................... ................ ..................... ................ ..... 154
Direct and Overlapping Governmental Activities Debt ......... .. 154
Pledged-Revenue Coverage ................. ................... .................. .. 155
Demographic and Economic Statistics. ....................... ................. ................................. 156
Principal Employers ................. . ............................ ................ ................ .... 157
Full-Time Equivalent County Employees by Function ... ................. ......................... ............... 158
Operating Indicators by Fnnction. .................... .... ...... ....................... ........... ..... ..................... 159
Capital Asset Statistics by Fnnction ........................ ....... ........ ........... ......... .............................. ................... ....... 160
SINGLE AUDIT /SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROTECTS
-
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 GovernmentAuditing Standards ......................163
Report of Independent Certified Public Acconntants on Compliance With Requirements Applicable to Each
Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OI\1B
Circular A-133, Section 215.97, Flotida Statutes, and Chapter 10.550, Ruler of the Auditor General... ....................... ....165
Schedule of Expenditures of Federal Awards and State Projects..... ................................. ............... ............ ............. .. .....168
Notes to the Schedule of Expenditures of Federal Awards and State Projects ................ ..... . . ..... . .. ...177
Schedule of Findings and Questioned Costs .. .......................... ................ ...180
Schedule of Prior Audit Findings.. .......................................... ... ........ .... ......................... .................. ....... ........195
\.
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Dwight E. Brock
Clerk of Courts
'~uJ1tx.Sffe611ier
CLERK OF mE C~RCUIT COURT
COLLIER COUNTY qo.1 URT~USE
3301 TAMIAMI T~IL EA'I;;T
P.O. BOX 4t~044 '\
NAPLES, FLORIDA (3#101-30~4
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Clerk of Courts
Accountant
Auditor
Custodian of County Funds
March 10,2009
To the Citizens and
Members of the Board of County Commissioners,
Collier County, Florida
It is with extreme pleasure that we present to you, the citizens of Collier County and
Members of the Board of County Commissioners, the Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended September 30, 2008. Responsibility for the
accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the Board of County Commissioners and County management.
The Clerk of the Circuit Court's Finance and Accounting Department, as well as County
management, is responsible for establishing and maintaining internal controls to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against loss
from unauthorized use or disposition, the reliability of financial records for preparing
financial statements, and maintaining accountability of assets. The concept of reasonable
assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by
management. The Clerk is not capable of representing that the internal controls of the
County provide reasonable assurance as his office has been precluded from examining
those controls, in conformance with the court's order, included as pages vii to xxii of this
transmittal letter.
Chapter 11.45 of the Florida Statutes requires an independent certified public
accountant's financial audit of counties in the State. For the fiscal year ended September
30,2008, the report of the independent auditor, Ernst and Young LLP, is included in the
financial section of this report. In addition to meeting the requirements set forth in State
statutes, the audit was also designed to meet the requirements of the Federal 1996 Single
Audit Act Amendments and the related OMB Circular A-133.
The Florida Single Audit is required by Florida Statute 215.97. Information relating to
the Single Audits, including the schedule of expenditures of federal awards and state
projects and the independent auditors' report on compliance and internal control over
compliance with requirements applicable to each major federal and state program, are
included in the Federal and State Single Audit Section of this report.
Phone (239) 252-2646
Website: www.collierclerk.com
Fax (239) 252-2755
Email: collierclerk(2Vcollierclerk.com
3!ro!2flJr/ f1L-
l'3A ,II
Governmental accounting and auditing principles require that management provide a
narrative introduction, overview and analysis to accompany the basic financial statements
in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to compliment MD&A and the two should be read in concert.
Collier County's MD&A can be found in the Financial Section immediately following
the independent auditors' report.
PROFILE OF THE GOVERNMENT
Collier County is a Non-Charter County established in 1923 under the Constitution and
the laws of the State of Florida. The Board of County Commissioners is the legislative
body for Collier County and is made up of five residents elected by voters. In addition to
the County Commissioners, voters elect the following five constitutional officers: the
Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax
Collector.
Services provided by Collier County include public safety, emergency management,
transportation services, water and wastewater services, parks, libraries and solid waste
collection and disposal.
Budgets are prepared annually. Formal budgetary integration is employed as a
management control device during the year. Budget workshops are conducted during
June with the Board of County Commissioners to form a proposed budget. The Board's
proposed budget is released by July 15, in accordance with Florida Statutes. The budgets
of Constitutional Officers are presented to the appropriate authorizing bodies according
to state statute. Public hearings are then held in September to allow taxpayer input and to
adopt the budget as final.
The General Fund ad valorem tax millage for fiscal year 2008 was reduced to 9% below
the rolled back millage rate, (the rate which generates the same tax revenue as levied in
the previous year, exclusive of new construction) in accordance with property tax reform
measures adopted during special legislative session. The State's special legislative
session also included a constitutional amendment to be voted on in early 2008. On
January 29, 2008 Florida voters approved statutory revisions that included increases to
the homestead exemption, portability of Save Our Homes tax breaks up to $500,000, a
10% cap on future assessment increases for non-homesteaded property starting in 2009
and a new tangible equipment exemption of $25,000.
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 2008 population of 332,854 (a 58 percent
increase over the 1998 level), the County has been considered to be one of the fastest
growing counties in the state over the last ten years. The County's economic base is
concentrated in tourism and agriculture, fishing, ranching and forestry with a growing
services economy and an emerging high technology sector. Gulf of Mexico beaches and
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the Everglades National Park are important attractions to this area. The park comprises a
substantial portion of the County.
Taxab]e property market valuation for fiscal year 2008 totaled just over $82.5 billion, or a
very high $248,05] per capita. Unemployment levels in recent years approximate, or are
slightly below those of the state. The 2008 County unemployment rate stood at 5.5%.
Income levels are high, with a per capita personal income of $57,446, which is the
highest in Southwest Florida.
The County's financial operations are managed with recurring General Fund operating
surpluses contributing to historically strong cash and General Fund balance positions.
This trend is expected to be negatively impacted by legislation involving property taxes
and a general slowing of the economy. The County's millage for General Fund
operations in fiscal year 2008 was at only 3] % of the statutory] 0 mill limit.
Relevant financial policies include the appropriation of carryforward as revenue in the
following year, recommended General Fund unreserved fund balance of between ]0%
and ] 5% of actual expenditures, the maximization of impact fees as allowed by law and
the use of gas taxes for the Road Construction Capital Improvement Program. The
Collier County debt policy provides for a maximum ratio of total general governmental
debt service to bondable revenues from current sources of ]3%.
The major focus of the Capital Improvement Plan for FY-09 will continue to be road
construction, utility water, wastewater, solid waste improvements and government
facilities, including libraries. Funding for road construction will be provided by
remaining unspent Road Construction Fund monies and impact fees. Water and
wastewater projects will be funded by unspent bond proceeds and State Revolving Fund
Loan reimbursements. The remaining projects are a mix of advance funding and short
term borrowings.
LONG TERM FINANCIAL PLANNING
Long term financial planning in Collier County focuses on the provisions of the Local
Government Comprehensive Planning and Land Development Regu]ation Act. The
provisions of this Act require that local government comprehensive plans include a
Capital Improvement Element (CIE). The CIE is a planning document that identifies
public facilities that will be required during the next five or more years. The Capital
Improvement Element is the foundation of Collier County's annual Capita] Improvement
Program (CIP). Included in the County's current CIP for fiscal years 2009-2013 are
approximately $336 million for transportation projects and approximately $]33 million
for water and wastewater facilities and various replacement and rehabilitation projects.
Solid waste projects of approximately $] 1 million are planned, as well as $48 million for
stormwater management projects. A study is currently underway to determine the type of
infrastructure improvements necessary for development east of Collier Boulevard, in the
rural area of the County. The results of this study have major long term service delivery
issues and associated costs.
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As a result of the State's 2008 tax reform legislation, the taxable value within the
jurisdiction of each taxing authority used in calculation of the rolled back rate will be
increased by an amount equal to the reduction in taxable value occurring as a result of
recent State Constitutional amendments. This legislation did not impact the Collier
County levy for FY-2009 as the Board of County Commissioners adopted a millage
neutral policy. The roll back calculation for all future fiscal years will be impacted.
In summary, residential and commercial development and an established tourism
economy will continue to contribute to a tax base that has averaged 5% growth annually
for the last five years. While recent growth has moderated, this was not unexpected
given the exceptional growth rates of recent years. New home construction is hampered
by the number of existing homes available and a growing number of foreclosures. The
overall housing market remains relatively soft, however there continues to be activity in
the high end real estate market. Historically, Collier County's economy has proven to be
better insulated from economic downturns than other Florida counties, or the nation.
Future years will be challenging, given the current issues in the housing market and the
state budget, inflationary concerns, and revenue limitations imposed by tax reform.
However, Collier County continues to attract affluent retirees, and the growing services
economy and an emerging high technology sector should continue to attract population
growth and development throughout the County.
CASH MANAGEMENT
The Finance and Accounting Division monitors the daily cash needs of the County and
invests the County's portfolio in accordance with the County's written investment policy.
Authorized investments include certificates of deposit, the Local Government Funds
Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper
and bankers' acceptances. The weighted average maturity of the total managed portfolio
was 1.42 years as of September 30, 2008. The average yield for fiscal year 2008 was
4.77%. Changes in the fair value of investments are recorded separately from interest
income in the financial statements.
A WARDS
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, 2007. 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
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contents conform to program standards. The CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements,
A Certificate of Achievement is valid for a period of one year only. Collier County has
received this award for the past twenty-two years, from fiscal year 1986 to 2007. We
believe our current report conforms to the Certificate of Achievement program
requirements, and we are submitting it to the GFOA for consideration for an award again
this year.
Distinguished Budget Presentation Awards:
The Government Finance Officers Association of the United States and Canada presented
an award for Distinguished Presentation to Collier County for its annual budget for the
fiscal year beginning October I, 2007. In order to receive this award, a government unit
must publish a budget document that meets program criteria as a policy document, as an
operations guide, as a financial plan, and as a communications device. The Distinguished
Budget Presentation Award is valid for a period of one year only. Collier County has
received this award for the last nineteen consecutive years.
The Government Finance Officers Association of the United States and Canada presented
an award for Distinguished Presentation to the Office of the Collier County Clerk of the
Circuit Court for its annual budget for the fiscal year beginning October I, 2007. In order
to receive this award, a government unit must publish a budget document that meets
program criteria as a policy document, as an operations guide, as a financial plan, and as
a communications device. The Distinguished Budget Presentation Award is valid for a
period of one year only. The Clerk's Office has received this award for the last seven
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, Maryalice Bailey, Edith Manuel,
CPA, Precious Corrado, June Wathen, Liz Willis, Desiree Gardine, Suzanne Boothby,
Dan Tripaldi, Ashley Pearson, and Karen Oberrath, all Accountants, along with
Constance Murray, CGFO, General Operations Manager, Raymond Milum, Jr., Clerk's
Fiscal Operations Manager, Nancy Fragione, Senior Financial Specialist and Michele
Bettencourt, Office Assistant, and all of the staff of the Finance and Accounting
Department.
Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County
Commissioners, the Constitutional Officers, the County Manager, Division
Administrators and the Department Directors for their assistance throughout the year in
matters pertaining to the financial affairs of the County.
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We hope you find this report informative, accurate and easily readable. If you should
have any questions related to this report or if additional information is desired, do not
hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at (239) 530-
6299.
Res ectfully,
Dwig E. Brock
Clerk of the Circuit Court
Chief Financial Officer
Cryst K. Kinzel
Deputy Clerk
Director.o ance and Accounting
..-
~o~crA
. eputy Clerk
General Accounting Manager
vi
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IN THE CIRCUIT COURT FOR TIlE TWENTIETH nJDICIAL c~curi
IN AND FOR COLLIER COUNTY FLORIDA : .
CIVIL ACTION r'. -,
DWIGHT E. BROCK, CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
v.
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, AS
EX-OFFICIO THE GOVERNING BOARD OF THE
OCHOPEE AREA FIRE CONTROL
AND EMERGENCY MEDICAL CARE
SPECIAL TAXING DISTRICT a/kIa THE
CHOPEE FIRE DISTRICT, a Municipal
Services Taxing Unit pursuant to
Section 12S.01(1)(q), F.S.;
LINDA T. SWISHER and PAUL WILSON,
Defendants.
BOARD OF COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, on behalf
of COLLIER COUNTY, a Political Sub-
division of the State of Florida,
Petitioner,
v.
DWIGHT E. BROCK, CLERK OF TIlE
CIRCUIT COURT OF COLLIER COUNTY,
FLORIDA,
Respondent.
I
vii
Case No, 04-941 -CA
I
Consolidated with
Case No: OS-9S3-CA
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PAUL WILSON,
Petitioner,
Consolidated with
Case No.: OS.I506-CA
v.
DWIGHT E. BROCK. CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
Respondent.
FINAL JUDGMENT
THIS consolidated action was heard on motions filed and heard before the Court. For the
reasons set forth in the attached Orders, which Orders are incorporated by reference herein, the Court
hereby:
ORDERS AND ADJUDGES:
I. Judgment is hereby rendered in favorofPetitioners, BOARD OF COMMISSIONERS
OFCOLLillRCOUNTY,FLORlDA,ONBEHALFOFCOLLIERCOUNTYCOLUERCOUNTY
and PAUL WILSON, and against Defendant, DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY. on the Complaints for Writs of Quo Warranto in Case Nos. 05-
953-CA and 05-1 506-CA. ,
2. JudilJlent is hereby rendered in favor of Defendants, BOARD OF COUNTY
COMMISSIONERS OF COLLillR COUNTY. FLORIDA, ETC., LINDA T. SWISHER and PAUL
WILSON, ET AL., on the Complaint for Declaratory Relief in Case No. 04-94 I-CA. Defendants in
Case No. 04-941-CA shall go hence without day.
I The detennination in favor of Petitioner Collier County on ilS Complaint for Writ of
Quo Warranto controls the outcome of the Complaint for Writ of Quo Warranto filed by
Petitioner Paul Wilson, as a mailer oflaw.
viii
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3. The Court reserves jurisdiction to determine entitlement to and the amount of costs
and attorneys' fees upon proper motion.
DONE AND ORDERED in Fl. Myers, Florida on this t!tday of
2007.
Copies furnished 10:
JlcqudlDe WID..... Hubbard, ilIq.
Offiu oflbe County Attorney
3301 Eut TamlamiTrail, 8th Floor
Napl.., FL 34112.
ColUUelfor BOtUd of Commissioners
of Colli., CoullI)! in C..e NOI. 05-95J-CA. CA-05-
1506 ond 04-941-cA
Theodore L. Tripp, Jr., ilIq.
Girvin" Tripp, P.A.
POS! Office Dnwer 2040
FOIl Myers, Florida 33902
Co-Counsel fOl' BOtUd of Commissioners
of Colli., Coulll)!l. Care NOI. 05-95J-CA. CA-05-
l J06 ond 04-94I-cA andf'" Poul Wi!.on In C..e No.
OJ.1506-CA
AD3932.WPD
[',.."/rl<her
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HONORABLE MICHAEL T. MCHUGH
A.lhony P. Pires, Jr., Esq.
St..e. V. Blount, E.q.
Woodward, Pi..... " Lombardo, P.A.
3200 Tamlami Trail N., Sullo 200
Napl.., FL 341 03
Cou",elfor Dwighl E. Broc.
Clerk ofth. Circuli Courl of Colli., Counly
in Car. No. 04-941-cA
David P. AckanDln, E.q.
Glory P. R.... ilIq.
Ackerman, Link &: Sanory, P.A,
222 Lakovlow Avenue, Sulto 1250
We.t Palm Boach, FL 33401
Counselfor Dwigh' E, Broc.
C/.,k of'''' Clrcui, Court of Collier Cou.1y
inCar.NOI. 05-9JJ-CA andCA-OJ./J06
ix
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IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY. FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff.
"S.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
05-1506-CA
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 12S.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
r~~::~~
Defendants.
I
ORDER GRANTING. IN PART. AND DENYING, IN PART. THE "CLERK'S MOTION
FOR PARTIAL SUMMARY JUDGMENT REGARDING UNDISPUTED ROLES OF
THE CLERK" AND GRANTING "COLLIER COUNTY'S CROSS-MOTION FOR
SUMMARY JUDGMENT ON THE UNDISPUTED ROLES OF
THE CLERK OF COURTS"
THIS MATTER comes before the CoilIt on the "Clerk's Motion for Partial Summary
Judgment Regarding Undisputed Roles of the Clerk" filed June 11.2007 and "Collier County's
Cross-Motion for Summary Judgment on the Undisputed Roles of the Clerk of Courts" filed
August 2,2007. Both motions were filed pursuant to Florida Rule of Civil Procedure 1.510.
After hearing each motion and argument of counsel, carefully reviewing the motions and the
attachments, and examining the applicable law, the Court finds as follows:
I, In its complaint, the Clerk, in part, seeks a declaratory judgment as to the general
rights and duties of the Clerk of the Courts.
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2. There are no disputed material facts' as it relates to a detennination of the
general rights and duties of the Clerk of the Courts. Such a determination is an issue of law.
3. Both the Clerk and the County are seeking summary judgment as it relates to the
general rights and duties of the Clerk of the Courts. Specifically, Ihe parties are seeking a
determination as to whether:
(a) the Clerk is the auditor, recorder, and custodian of all County funds;
(b) the Clerk is the accountant for the Board of County Commissioners;
(c) the Clerk has a duty to determine the legality of all County expenditures
before issuing a warrant for payment; and
(d) the Clerk'has a duty to prepare and certify the accuracy of the County's
financial statements, including the annual management representation letter
submitted by the County to its outside auditors.
4. Both the Clerk and the COWlty agree and, as a matler oflaw, ~~ Court finds that:
(a) The Clerk is the auditor, recorder and custodian of all County funds. Article
VIII (i)(d); Alachua County v. Powers. 351 So. 2d 32, 43 (Fla. 1977).
(b) The Clerk is the accouiltant for the Board of County Commissioners. Fla.
Stat. ~ 125.17.
(c) The Clerk has the duty to determine the legality of all County expenditures
before issuing a warrant for payment. Fla. Stat. ~ 129,09; AIachua County v.
Powers, 351 So. 2d 32, 36 (Fla. 1977).
5. However, the parties dispute the fourth issue of whether "the Clerk has a duty to
prepare and certify the accuracy of the County's financial statements, including the annual
management representation letter submitted by the County to its outside auditors(.]"
6. It is an undisputed fact that the Clerk has historically prepared the County's
financial statements and annually signed a management representation letter that the County
would submit to its outside auditors. It is further undisputed that the Board of COWlty
Commissioners enacted Resolution 06-109 for the 2005 audit, directing that "as el(.offico clerk
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and accountant to the Collier County Board of County Commissioners... [the Clerk] provide a
management representation letter in connection with the annual audit of the County's records
performed by KPMG, LLP[,]" However, it is a disputed issue of law as to whether the Clerk has
a legal obligation to perform these duties.
7. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
,
to find any ambiguity or inconsistency.
8. The Court tinds that the Board of County Commissioners' powers, as granted by
statute, are inclusive and encompass all tasks necessary to effectively perform its dulies. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Court finds no grant of authority to the
Clerk that gives him the duty of preparing and certifying the accuracy of the County's financial
statements, including the annual management representation letter.
9, The Court acknowledges that multiple parties may have the authority to perform
duties; however, absent a grant of power from the Florida Constitution or general law, the Clerk
does not have the duty to prepare and certify the County's financial statements, unless these tasks
are delegated to him by the Board of County Commissioners. As stated above, the Court finds
no grant of authority to the Clerk from the Florida Constitution or general law.
10. According!y, the Court finds that the Clerk's authority to prepare financial
statements on behalf of the County is not derived from a specitic grant of constitutional or
statutory power, but rather is derived from a delegation of authority by the Board of County
xii
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t"..
Commissioners. The scope of this delegation is within the discretion of the Board of Count)"
Commissioners, and may be granted, removed or modified.
11. In arriving at this finding, the Court has carefully considered Articles II & VIII of the
Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. 99 11.45, 116.07, 125.Q1, 125.17,125.71,125.74,136.05,136.08,218.32, 218.33, 218.39.
In addition, the Court has considered applicable case law presented by the parties, including, but
,,',
,
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
"'-'
.~
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
: .:~
f
:-;\{
ORDERED AND ADJUDGED that:
1. The Clerk's motion is granted in part and denied in part, as set forth herein.
.
2. The County's cross motion is granted.
,~;
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this .2'1"'"
day of
J...\Jc,v...r-
-
,2007.
Lfl~L p
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the abo~e order has been furnished
to David P. Ackennan, Ackennan, Link, & Sartory, P.A., Allorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr, and
Steven V, Blount, Woodward, Pires & Lombardo, P.^-, Attorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200. Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg, 8th Floor,
xiii
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Naples, Florida 341 J 2; Theodore L. Tripp, Jr., Garvin & Tripp, P.A., Anorne)' for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(XI), ] 700 Monroe Street, Ft. Myers. Florida 33901, this d-Y-\\" day of
~2007..
~'M ri Pi'J1AL.~
J CIa! ASSIstant
Case Numbers: 04-941-CA, Consolidated with OS-9S3-CA, and 05-1506-CA
Order Granting. in Part, and Denying. in Part, the "Clerk's Motion for Partial Summary Judgment
Regarding Undisputed Roles ofthe Clerk" and tirantjng "Collier County's Cross-Motion for Summary
Judgment on the Undisputed Roles of the Clerk of Courts"
xiv
3 /;o~fK)? ct..
all
,'/
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY. FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUlT
COURT OF COLLIER COUNTY,
FLORIDA;
Plaintiff,
i"
vs.
Case No. 04-941-CA
Consolidated with
Case Nos. OS-9S3-CA
as-lS06-CA
;.{
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A MUnicipal Services Taxing Unit pursuant to
Section 12S.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
~~~~::ijO~
~:~
;'1
'P<
;,.,
Defendants.
I
ORDER GRANTING "COLLIER COUNTY'S MOTlON FOR SUMMARY
JUDGMENT AS TO CASE NUMBER OS-9S3-CA AND THE ISSUANCE OF A WRIT IN
OUO WARRANTO"
THIS MA"ITER comes before the Cowt on "Collier County's Motion for Summary
Judgment as to Case Number OS-953-CA and the Issuance of a Writ in Quo Warranto" filed
June II, 2007. The motion was filed pursuant to Florida Rule of Civil Procedure 1.510. After
hearing the motion and counsels' arguments, carefully reviewing the motion and the attaclunents.
and examining the applicable law, the Court Iinds as follows:
I, The Board of County Commissioners tiled a complaint for Writ of Quo Warranto,
seeking a writ prohibiting the Clerk from exercising powers to which he is not entitled as a
matter of law.
xv
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13AQ
2. The County .filed a motion for summary judgment requesting a determination that:
(a) The Clerk's authority as custodian of County funds arises only upon
delivery of funds to the Clerk by the Board or through the direct collection
of fees;
(b) The Clerk's authority as the custodian of the County's funds is limited \0
the determination of the lawful basis of an expenditure and does not
extend to the discretionary decisions by the Board to spend County funds;
and
(c) The authority and responsibility to prepare the County's financial
statements is derived from and dependent upon an express delegation of
that authority by the Board,
3, rt is undisputed, by the parties tha~ the Clerk is the auditor, recorder and custodian of
all County funds, that the Clerk is the accountant for the Board of County Commissioners, and
that the Clerk has the duty to detennine the legality of all County expenditures before issuing a
warrant for payment.
4. There are no disputed material facts as it relates to a determination of the powers of
the Clerk. Such a determination is an issue of law.
5. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
6. The Court finds that the Board of County Commissioners' powers, as granted by
statute, are inclusive and encompass all tasks necessary to effectively perfonn its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Court acknowledges that multiple
parties may have the authority to perform duties; however, absent a grant of power from the
xvi
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dlft/~ Lt
13A
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I~
Florida Constitution or general law, lhe Clerk does not have the authority to perform certain
duties unless these tasks are delegated by the Board of Counry Conunissioners.
7. Accordingly, as it relates to issue (a), the Court finds as a matter oflaw, lhal to the
extent that the Clerk is the custodian of all County funds, he necessarily can only be the
custodian of those funds to which be has been given custody, which would presumably
encompass all County funds. Even if the Clerk becomes aware or suspects that there are County
funds of which he has not be given custody, this Court is unaware of any constitutional or
statutory authority that would allow the Clerk to initiate an independent investigation or attempt
to recover those funds, absent instruction from the Board of County Commissioners.
8. This does not preclude the Clerk from seeking authority to pursue these funds or
making these funds known to any appropriate authority, but as Slated above absent any
constitutional or statutory grant of power the Court cannot acquiesce to the Clerk making
unilateral investigations into these funds.
9. As it relates to issue (b), the Court finds as a matter of law, that prior to signing any
warrant for the payment of any claim, bill or indebtedness from County funas, the Clerk is
required to insure that the payment is lawful. Consequently, any auditing necessary to insure the
legalily of the expenditure prior to the payment is proper. However, the Coun is unable to find
that the Clerk has been granted any specific constitutionai or statutory authority to perform
further audits beyond the time that the warrant is signed, unless so directed by the Board of
County Commissioners.
10. As it relates to issue (c), the Court finds as a matter oflaw, that the Clerk's authority
-t&prepare finanoial slalemems SB Behalf-of the CS\IIIty is Bst seri'/es frem a spe;il'i; gflIIlt of
constitutional or statutory power, but rather is derived from a delegation of authority by the
xvii
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.~
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,'i
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.13 A ~-I
Board of County Commissioners. The scope of this delegation is within the discretion of the
Board of County Commissioners, and may be granted, removed or modified.
II. In arriving at these findings, the Court has carefully considered Articles II & VIII of
the Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. SS 11.45, 116.07, 125.0], 125.17, 125.71, 125.74, 136.05, 136.08,218.32,2]8.33,218.39.
In addition, the Court has considered applicable case law presented by the parties, including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and W and F Limited v.
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984).
Accordingly, it is,
ORDERED AND ADJUDGED that County's motion for summary judgment is granted,
as set forth herein.
DONE AND ORDERED in Chambers at ~ort Myers, Lee County, Florida, this 2.'1"'" day of
/>-"\l~V" }
, 2007.
/ ,...,-<.. .P
~J'
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the above order has been furnished
to David P. Ackennan, Ackerman, Link, & Sartory, P.A., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 3340 I; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N.,Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, P.A., Attorney for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(XI), 1700 Monroe Street, Ft. Myers, Florida 33901, this ;:l\...l'\\-' day of
Al :~J l.<-A ,2007. .
, c# I ffi ~ DOl,!}..] ,~
J iCial Assistant
xviii
:3 /to / 2UfI tt
-
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t:,
-. '11
131
;q
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY. FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
\'5.
Case No. 04-94I-CA
Consolidated with
Case Nos. OS-9S3-CA
OS-lS06-CA
,:~
:,/
0)
~,
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.01(q), F.S.; LINPA T. SWISHER
and PAUL WILSON,
[O)~~~OV~1f\\
~ AUG 2 7 'EfJ7lU)
''-:\
~,~;
Defendants.
I
ORDER DENYING THE "CLERK'S MOTION FOR PARTIAL SUMMARY
JUDGMENT" AND GRANTING "COLLIER CO~TY'S CROSS MOTION FOR
SUMMARY JUDGMENT AS TO THE CLERK'S DECLARATORY JUDGMENT
COUNT"
THIS MATTER comes before the Court on the "Clerk's Motion for Partial Summary"
filed August 1,2007 and "Collier County's Cross Motion for Summary Judgment as to the
Clerk's Declaratory Judgment Count" filed August 2, 2007. Both motions were filed pursuant
to Florida Rule of Civil Procedure 1.510. After hearing each motion and argument of counsel,
carefully reviewing the motions and the anachmenu, and examining the applicable law, the
Court fmds as follows;
I, In its complaint, the Clerk, in part, seeks a declaratory judgment as to the rights and
duties of the Clerk of the Courts.
2. There are no disputed materialfacts as it relates to a detennination of the rights and
duties of the Clerk of the Courts. Such a detennination is an issue of law.
xix
ol(of1fJO~ ~
1 3 A 1'''1
t--""
3. Both the Clerk and the County are seeking summa')' judgment as to the declaratory
judgment count of the Clerk's amended complaint. Specifically, the Clerk is seeking a
determination that:
(a) the rights of the Clerk to custody of all County funds in the account
referring to the Ochopee FCD Volunteer Account Number 000093417519
at the Bank of America) from the account's inception up to and including
the present;
(b) declaring that the clerk has unconditional unrestricted right, duty and
obligation to audit and examinc at any time all bank accounts containing
County funds, including but not limited to the account; and
(c) that the Clerk has the right to custody of all County funds and all accounts
. whatsoever and wheresoever situated.
4. The County in its cross motion asserts that.
"the Clerk is the custodian of all County funds, however, whether the funds at
issue in the Ochopee account are "County" funds is yet to be determined. Further,
although the Clerk may "inspect" and "examine" all public records of the Board,
the Clerk has no independent authority to conduct "audits" if that term includes
the unfettered ability to interview and interrogate county employees, consultants,
subcontractors, or agents. He may only "inspect" and "examine" the public
records of the Board to determine if an expenditure, authorized through the
discretionary spending power of the Board, is a lawful expenditure; and even this
examination must occur before the money is spent." .
5, Both the Clerk and the County, agree and, as a matter of law, the Court finds that the
Clerk is the custodian of all County funds. However, the other issues are in dispute.
6. This Court does not have the authority LO either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to fmd any ambiguity or inconsistency.
7. The Court finds that the Board of County Commissioners' powers, as granted by
xx
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13 A
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~'i
statUte, are inclusive and encompass all tasks necessary to effectively perform its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Court acknowledges that multiple
parties may have the authority to perform duties; however, absent a grant of power from the
Florida Constitution or general law, the Clerk does not have the authority to perform certain
duties unless these tasks arc delegated by the Board of County Commissioners.
8. Florida Statute 9 125.01 (s) gives the Board of County Commissioners the authority
to, "make investigations of county affairs; inquir~ into accounts, records, and transactions or any
county department, office or officer; and, for these purposes, require reports from any county
officer or employee and the production of official records." Florida Statute 9 J 25. 74( 1 leg) gives
the County Administrator or inanager the authority to supervise the care and custody of all
county funds. Florida Statute 9 125.01(b) gives the Board of County Commissioners the right to
provide for the prosecution and defense of legal causes on the behalf of the County, This Court
is unable to find any constitutional or statutory authority that would give the Clerk the power to
investigate the nature of funds not currently in its custody or to supervise the care and custody of
funds not currently in its custody or to file a lawsuit regarding those funds.
9. Accordingly, the Court finds that, as a matter of law, this Court can find no
constitutional or statutory authority that would give the Clerk the unbridled right to audit any and
all outside bank accounts "whatsoever and wheresoever situated" into which the Clerk believes
county funds may have been improperly deposited, However, this finding does not preclude the
Clerk from reporting any such suspicions of impropriety to the appropriate authority or person
for further investigation.
xxi
ofrof2td1 C!.-
13 A
'53
10. In arriving at this finding. the Court has carefully considered Articles II & VlII of the
Florida Constilution, and all applicable statutes, including, but nol necessarily limited to, Fla.
Stat. ~~ 11.45,116.07,125.01,125.17,125.71,125.74,136.05, 136.08,218.32,218.33,218.39.
In addition, the Court has considered applicable case law presented by the parties. including, but
nol necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
~,444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
ORDERED AND ADJUDGED that:
I. The Clerk's motion is denied.
2. The County's cross motion is granted.
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this,,] qT"\.. day of
~" ~""" -L
,2007.
L-t/:; L-P
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy oflbe above order has been furnished
to David P. Ackerman, Ackerman, Link, & Sartory, P.A., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V, Blount, Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, PA, Attorney for the .
Defendant, Post Office Drawer 2040, Fon Myers, Florida 33902; and Court Administration
(X ,1700MonroeStreet, Ft. Myers, Florida3390l,this ..:!Lllh dayof
,2007,
Case Numbers: 04-941-CA, Consolidated with 05-95 -CA, and 05-1506-CA
Order Denying the Clerk's Motion for Partial Summary Judgment and Granting the Collier County's
Motion for Summary Judgment as 10 the Clerk's Declaratory Judgment Count.
xxii
'-,~
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13 A
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t..
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Collier County
Clerk of the Circuit Court
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting,
;-:.~. H
President
~/~
Executive Director
2/fO/'lI1fI uL
13A
..
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its
comprehensive annual financial report for the fiscal year ended September 30, 2007. This was the twenty-
second consecutive year that the government has achieved this prestigious award. In order to be awarded
a Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfY both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
I
.j ID UtfI (j.
13A .
FINANCIAL SECTION
J!fb/Utf?
13 A
THIS PAGE INTENTIONALLY LEFT BLANK
~
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': 11111111"'"
1IIIIIHtllllilllllllll f1J ERNST & YOUNG
Ernst & Young LlP
100 Northeast Thir'd Avenue
Suite 100
F'or! Lauderdale, Flol"ida 33301
3/ro/2M9 ~
13 A .
Tel: +19548888000
Fax: +1954 888 8160
www.ey.com
Report of Independent Certified Public Accountants
Members of the Board of County Commissioners
Collier County, Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of Collier County, Florida (the County) as of and
for the year ended September 30, 2008, which collectively comprise the County's basic financial
statements as listed in the table of contents, These financial statements are the responsibility of
the County's management Our responsibility is to express opinions on these financial statements
based on our audit
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an audit of the
County's internal control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management and evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the County as of September 30, 2008, and the respective changes in financial
position and, where applicable, cash flows thereof, and the respective budgetary comparison for
the general fund and the community redevelopment fund for the year then ended in conformity
with accounting principles generally accepted in the United States.
As discussed in Note 19, net assets for the business-type activities and the County Water and
Sewer Fund as of September 30, 2007 have been restated.
0902-1032557
A w"':'<nl;~' f', "in\ 1>'1:.,t& YdUrn.l;:,:(,Nd :..;ITI:U'C!
11111111111111111111111111""'" E!/ ERNST & YOUNG
Jjf~16ff1
13 A
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.
In accordance with Government Auditing Standards, we have also issued our report dated
February 26, 2009 on our consideration of the County's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management's Discussion and Analysis on pages 3 through 13 and schedule of funding
progress for the retiree health plan on page 78 are not a required part of the basic financial
statements but are supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, and the statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards and state projects is
presented for purposes of additional analysis as required by the U.S. Office of Management and
Budget Circular A-133, Section 215.97, Florida Statutes and Chapter 10,550, Rules of the
Auditor General, and is not a required part of the basic financial statements. The combining and
individual nonmajor fund financial statements and schedules and the schedule of expenditures of
federal awards and state projects have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated in all material respects
in relation to the basic financial statements taken as a whole. The 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 express no opinion on them.
~-fhLLP
February 26, 2009
0902-1032557
2
li'I'" Frr-,,,-,.,," ""Jr';-'!
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13 A 'II
Management's Discussion and Analysis
(Unaudited)
As Clerk of the Circuit Court and chief financial officer of Collier County, Florida, I present the readers
of the County's financial statements this narrative overview and analysis of the financial activities of
Collier County for the fiscal year ended September 30, 2008. Readers are encouraged to consider the
information presented in this narrative in conjunction with additional information offered in the letter of
transmittal, found on pages i-xxii of this report.
Financial Highlights
Collier County's assets exceeded its liabilities as of September 30,2008 by $2,318,834,722. Of
this amount, $312,792,303 represents unrestricted net assets and may be used to meet future
obligations.
The County's total net assets increased by $141,079,726 over fiscal year 2007, with $82,088,071
of the increase resulting from governmental activities and $58,991,655 resulting from business-
type activities.
As of September 30, 2008 Collier County's governmental fund financial statements showed
combined ending fund balances of $496,012,839, a decrease of $108,483,366 over the previous
fiscal year. Of the total combined ending fund balance, $346,683,059 remains in the various
governmental funds of Collier County as unreserved.
The General Fund reported an unreserved fund balance of$61,952,935 at September 30,2008, a
decrease of $15,665,809 compared to September 30, 2007.
Total net bonded debt and outstanding loans owed by Collier County increased by $24,092,474
during fiscal year 2008, with an increase in net governmental activities debt of $31 ,697,959 and a
decrease in the net business-type activities debt of $7,605,485. General government commercial
paper debt in the amount of$57,391,000 was issued for the purpose of constructing a Courthouse
Annex, Fleet Facility buildings, the Golden Gate and South Regional Libraries and an Emergency
Operations Center, as well as the purchase of new 800 MHZ equipment and radio locator
systems. Collier County also borrowed $12,000,000 through the State Infrastructure Bank low
interest loan program. In addition, the Forest Lakes Municipal Taxing Services Unit borrowed
$6,215,000 for various drainage improvements. The Collier County Water and Sewer District
also borrowed $2,401,552 from the Florida Department of Environmental Protection's State
Revolving Fund Program.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction and explanation of Collier County's
basic financial statements, comprised of government-wide and fund financial statements, as well as notes
to the financial statements. There is additional supplementary information following these financial
statements that may be of interest to the reader.
3
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13 A '.1
Government.Wide Financial Statements
Government-wide financial statements are designed to provide the reader an overview of the financial
position of the County and are similar to private sector financial statements. These statements are
comprised of a Statement of Net Assets and a Statement of Activities and are found on pages 14 to 17 of
this report.
The Statement of Net Assets shows the financial position of Collier County as of September 30, 2008.
The statement shows the County's assets less its liabilities, with the difference being reported as net
assets. Changes in net assets are useful indicators of financial condition.
The Statement of Activities follows the statement of net assets and reports the changes in net assets over
the fiscal period. All changes in net assets are reported as soon as the underlying events that gave rise to
the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are
reported for some items, such as accounts receivable or accrued unused vacation and sick leave, that will
manifest themselves in cash inflows and outflows, respectively, in future fiscal periods.
These statements distinguish Collier County functions that are supported by taxes and intergovernmental
revenues (governmental activities), from business-type activities, which are intended to have their costs
primarily recovered through user fees and charges.
Governmental activities reported in the financial statements are general government, public safety,
physical environment, transportation, economic environment, human services and culture and recreation.
Business-type activities in Collier County include water and sewer, solid waste collections, airport
operations, transit operations and emergency medical services.
Fund Financial Statements
A fund is a group of related accounts used to maintain control over resources that have been segregated to
meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses
fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of
the County can be divided into the following three categories: governmental, proprietary and fiduciary.
Governmental funds - Governmental funds, presented on pages 18 to 25, account for substantially the
same functions as governmental activities reported under the Government-Wide Statement of Net Assets
and Statement of Activities. The difference is that the governmental fund financial statements focus on
inflows and outflows of expendable resources, as well as balances of expendable resources available at
the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of
financial condition, but are nonetheless useful in evaluating Collier County's near term financing
requirements and available resources.
Comparison between the two sets of financial statements allows the reader to better assess the future
impact of the government's near term financial decisions. Both the governmental fund balance sheet and
the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the
respective government-wide financial statements to facilitate comparison.
Governmental funds presented individually in Collier County's statements include four major funds, the
General Fund, Road Impact Districts Fund, Road Construction Fund and the Community Redevelopment
Fund. While there are many smaller governmental funds under Collier County management, they are
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aggregated in a total column named "other governmental funds".
governmental funds have been presented elsewhere in this report.
Combining statements for these other
Proprietary funds - Collier County maintains two different types of proprietary funds, enterprise and
internal service, which are reflected on pages 26 to 30 of this report.
Enterprise funds report, with more detail, the same functions presented as business-type activities in the
government-wide financial statements for water and sewer, Goodland water, solid waste disposal,
emergency medical services, transit and the airport authority. The Collier County Water and Sewer
District Fund is presented individually as a major fund.
Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The
County uses internal service funds to account for health insurance, worker's compensation insurance,
property and casualty insurance and fleet operations. The internal service funds are presented in total in
the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the
report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
of Collier County government. These funds are not presented in the government-wide financial
statements as they do not represent resources available to support Collier County functions. The fiduciary
funds are presented in the on page 31 of this report. All of the County's fiduciary funds are agency funds.
The accounting used for agency funds is based on the concept that assets equal liabilities when the
government is acting in a fiduciary capacity.
Notes to the Financial Statements
The notes provide additional information essential to a full understanding of the data provided in both the
government-wide and fund financial statements. The notes appear on pages 34 to 76 ofthis report.
Other Information
The combining and individual nonmajor fund financial statements and schedules mentioned above present
more detailed views of nonmajor governmental and enterprise funds and begin on page 83. This section
contains combining balance sheets and statements of revenues, expenditures and changes in fund balance
for governmental funds, including budgetary comparisons, and combining balance sheets and statements
of revenues, expenses and changes in fund net assets for enterprise funds. Also included are combining
financial statements for internal service and agency funds. Additional information about the County,
which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this
report.
Government-Wide Financial Analysis
Changes in net assets over time are a useful indicator in assessing financial condition. Collier County's
increase in net assets for this fiscal year amounts to $141,079,726, resulting in an ending net assets
balance as of September 30, 2008 of $2,318,834,722. Collier County's investment in capital assets such
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as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt
related to the construction or purchase of the asset, amounts to 72% of net assets. Capital assets are used
to provide services to the citizens and consequently do not represent spendable resources.
Collier County's net assets also include restricted net assets of $325, 176, 138 and unrestricted net assets of
$312,792,303. Restricted net assets are resources subject to external restriction on how they may be used
while unrestricted net assets may be used to meet the County's ongoing obligations.
Following are Collier County's net assets and changes in net assets for the fiscal years ended September
30, 2007 and 2008, shown in condensed form:
Collier County's Schednle of Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Change
2008 2007 2008 2007 2008 2007 2008-2007
as restated as restated
Current and other assets $653.2 $767.0 $177.5 $187.8 $830.7 $954.8 (13.0%)
Capital assets, net 1.527.0 1,312.8 915.5 865.7 2,442.5 2.178.5 12.1%
Total assets 2,180.2 2,079.8 1,093.0 1,053.5 3.273.2 3,133.3 4.5%
Long-term liabilities 537.3 507.9 255.7 264.3 793.0 772.2 2.7%
Current liabilities 127.1 137.9 34.5 45.4 161.6 183.3 (11.8%)
Total liabilities 664.4 645.8 290.2 309.7 954.6 955.5 (0.1%)
Net assets:
Invested in capital assets,
net of related debt 1,022.0 87 \.4 658.9 630.0 1,680.9 1.50\.4 12.0%
Restricted 295.0 244.7 30.2 30.8 325.1 275.5 18.0%
Unrestricted 199.0 317.9 113.7 83.0 312.8 400.9 (22.0%)
Total net assets $1,516.0 $1,434.0 $802.8 $743.8 $2,318.8 $2,177.8 6.5%
Note: Certain fiscal year 2007 balances are restated in a manner consistent with the restatement discussed in Note 19
on page 75.
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Collier County's Schedule of Changes in Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Change
2008 2007 2008 2007 2008 2007 2008-2007
as restated as restated
Revenues
Program revenues:
Charges for services $68.9 $72.5 $157.3 $144.8 $226.2 $217.3 4.1%
Operating grants and contributions 20.2 27.3 4.4 2.7 24.6 30.0 (18.0%)
Capital grants and contributions 52.3 122.3 23.3 32.7 75.6 155.0 (51.2%)
General revenues:
Property taxes 327.2 345.1 327.2 345.1 (5.2%)
Other taxes and shared revenues 76.7 84.8 76.7 84.8 (9.6%)
Interest income 34.5 43.1 5.9 6.9 40.4 50.0 (19.2%)
Change in fair value
of investments (.8) 5.8 (.2) 1.3 (1.0) 7.1
Miscellaneous 10.6 8.2 .1 .6 10.7 8.8 (21.6%)
Total revenues 589.6 709.1 190.8 189.0 780.4 898.1 (13.1%)
Expenses
General government 112.7 110.8 112.7 110.8 1.7%
Public safety 183.3 182.8 183.3 182.8 .3%
Physical environment 22.1 19.9 22.1 19.9 11.1%
Transportation 66.0 54.2 66.0 54.2 21.8%
Economic environment 13.5 11.7 13.5 11.7 15.4%
Human services 13.5 12.9 13.5 12.9 4.7%
Culture and recreation 43.4 41.6 43.4 41.6 4.3%
Interest on long-term debt 21.5 21.8 21.5 21.8 (1.4%)
Water and sewer 85.5 91.1 85.5 91.1 (6.1%)
Solid waste 30.0 32.0 30.0 32.0 (5.9%)
Airport authority 5.1 4.3 5.1 4.3 18.6%
Emergency medical services 30.1 27.3 30.1 27.3 10.6%
Mass transit 9.4 7.8 9.4 7.8 21.0%
Total expenses 476.0 455.7 160.1 162.5 636.1 618.2 2.9%
Increase in net assets before
Net transfers and special item 113.6 253.4 30.7 26.5 144.3 279.9 (48.4%)
Special item - bond expense (3.3) (3.3) 100.0%
Transfers, net (28.3) (15.1) 28.3 15.1
Change in net assets 82.0 238.3 59.0 41.6 141.0 279.8 (49.6%)
Net assets - beginning, as restated 1,434.0 1,195.7 743.8 702.2 2,177.8 1.897.9 15.7%
Net assets - ending $1,516.0 $1,434.0 $802.8 $743.8 $2,318.8 $2,177.8 6.5%
Note: Certain fiscal year 2007 balances are restated in a manner consistent with the restatement discussed in Note 19
on page 75.
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Governmental Activities
The current year increase for net assets of governmental activities amounted to $82,088,071, an increase
of 6% over the previous year's net assets. The previous fiscal years' increase was 20% and this trend is
the result of an overall decline in governmental activities revenues. The ad valorem tax millage for fiscal
year 2008 was reduced to 9% below the rolled back millage rate, in accordance with property tax reform
measures adopted by the Florida Legislature. This decrease was offset to a degree by a 7% increase in
taxable assessed value, but the overall result was a decrease in ad valorem tax revenues of $17,809,228,
or 5%. Governmental impact fees are collected to offset the cost of growth necessitated capital
improvements and are reported as capital contributions in the governmental activities. During fiscal year
2008 the County collected impact fees for transportation, parks, libraries, emergency medical services,
correctional facilities, law enforcement, governmental facilities and fire totaling $36,679,020. This
represents a decrease in total impact fee collections over fiscal year 2007 of 57%, and is emblematic of
the widespread slow down in the construction and real estate industries. Sales tax revenues decreased by
8% versus fiscal year 2007, and this decrease reflects a general decline in the state's economy. In
addition, gas tax revenues decreased by 4% versus fiscal year 2007 and this decrease is indicative of both
a slowdown in the state's economy as well as an indicator of the effect of higher fuel costs on demand.
Total government activities expenses increased 4% over fiscal 2007. Transportation expenses increased
by 22% over fiscal year 2007 due to increases in depreciation expense related to projects placed in service
during fiscal 2008 and increases in operational costs. The County's economic environment expenses
increased by 15% over the previous fiscal year primarily due to increased operational costs. Physical
environment expenses increased 11 % mainly due to the depreciation on infrastructure projects put into
service during fiscal year 2008. Governmental activities interest expense was $21,445,546 for fiscal year
2008, net of amortizations.
Business-type Activities
Increases in net assets related to business-type activities amounted to $58,991,655 in the aggregate,
representing an 8% increase over the previous year's net assets. This increase is an increase of 2% over
the 2007 rate of increase in net assets. The majority of the increase, or $36,159,958, can be attributed to
the Collier County Water and Sewer District. Water and wastewater operating revenues increased
$8,110,279, or 9%, over the previous fiscal year, while costs of operations, including depreciation, were
down 2% overall. Operating revenues increased primarily due to a rate increase of 14.5% and imposition
of a water surcharge. These increases were partially offset by decreased usage caused by water
restrictions and conservation measures. Personal services expenses and operating expenses decreased by
2% and 12%, respectively, when compared to fiscal year 2007. Depreciation expense increased by 14%
over fiscal year 2007, and this increase is due to the recent capital expansion of the County Water and
Sewer District. Over $43M in capital facilities were added and improved during fiscal year 2007 and for
fiscal year 2008 a further $137M was added. Fiscal year 2008 water and wastewater impact fee
collections dropped to $9,753,332, or a decrease of 53% versus fiscal 2007. This was the primary reason
for a 30% decrease in capital grants and contributions, which includes impact fees. The County charges
water and wastewater impact fees on new construction in order to finance growth necessitated capital
expansion. The Collier Area Transit Fund received the contribution of a Transit Facility from
governmental activities with a value of $10,096,889. In addition, solid waste charges for services
increased by 4.4% over fiscal year 2007 while operating costs, including depreciation, decreased by 6%
over the same period. The increase in solid waste charges for services can be attributed to a 12% rate
increase, offset to a degree by less tonnage being accepted into the landfills for FY -2008. These factors
contributed to an increase in net assets year on year of $6, 1 06,233.
Fund Financial Statement Analysis
As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related
legal requirements.
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Governmental Funds
Governmental funds provide information on near term inflows, outflows and balances of spendable
resources. Unreserved fund balance is a useful measure of net resources available to be spent at the end
of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service
Funds and Capital Project Funds.
As of September 30, 2008 Collier County governmental funds reported combined fund balances of
$496,012,839, a decrease of $108,483,366 over prior year combined fund balances. Governmental funds
reserved $128,993,148 of fund balance for encumbrances in the next fiscal year, $174,805 for inventory,
deposits and prepaid items, $4,099,533 for debt service and $16,062,294 for advances made to other
funds. The remainder of fund balance is considered unreserved and available for discretionary spending.
The following were noteworthy activities and changes relating to the major governmental funds for fiscal
year 2008:
The General Fund is the main operating fund of Collier County. At September 30, 2008, total fund
balance in the general fund was $68,555,420, of which $61,952,935 was unreserved. As a percentage of
total general fund expenditures and net transfers, the unreserved portion is 17%. The total fund balance
decreased by $12,769,212 or 16%, compared to the September 30, 2007 total fund balance. The decrease
is primarily due to decreased sales tax collections and decreased ad valorem tax collections.
The Road Impact Districts Fund is used to account for the receipt and expenditure of road impact fees.
Road impact fees of $29,141,348 were collected during fiscal year 2008, to be used for growth related
transportation capital improvements. This represents a decrease in total road impact fee collections
versus fiscal year 2007 of 58%, which is consistent with the slowdown in both the real estate and
construction industries. Capital expenditures of road impact fees decreased by 20% for fiscal year 2008
when compared to fiscal year 2007. The major project completed and capitalized during fiscal year
2008 was the growth necessitated portion of the Golden Gate Parkway Overpass in the amount of
$2,522,001. Major ongoing projects include Immokalee Road from 1-75 to Collier Boulevard,
Rattlesnake Hammock Road from Polly Avenue to Collier Boulevard and Santa Barbara Boulevard from
Davis Boulevard to Pine Ridge Road in the combined amount of $62,954,320 through September 30,
2008. These activities resulted in a decrease in fund balance of $35, 168,946 for the Road Impact Districts
Fund.
The Road Construction Fund accounts for the accumulation of gas taxes, bond proceeds and General
Fund transfers for the construction of roads. Capital expenditures in the Road Construction Fund
decreased by 20%, compared to fiscal year 2007. Major projects completed and capitalized during fiscal
year 2008 included portions of the Immokalee 1-75 Loop, Goodlette Frank Road from Pine Ridge Road to
Golden Gate Parkway, turning lane and intersection improvements and advancements in computerized
signalization systems in the combined total of $24,089,937. Major ongoing projects include Immokalee
Road from Collier Boulevard to Wilson Boulevard, Vanderbilt Beach Road from Airport Pulling Road to
1-75, Immokalee Road from US 41 to 1-75, Rattlesnake Hammock Road from Polly Avenue to Collier
Boulevard, Santa Barbara Boulevard from Golden Gate Parkway to Radio Road right of way purchase
and Collier Boulevard from Golden Gate Parkway to lmmokalee Road. The total amount of construction
in progress for these projects was $134,059,507 as of September 30, 2008. The combination of these
activities resulted in a decrease in fund balance of $24,069,650 for the Road Construction Fund.
The Community Redevelopment Fund accounts for the receipt and expenditure of tax increment revenues
for the Bayshore/Gateway Triangle and Immokalee Redevelopment Authorities. During fiscal year 2008
the Bayshore/Gateway Triangle purchased $863,642 ofland within the Triangle.
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Proprietary funds
Proprietary fund statements provide the same information as the business-type activities in the
government-wide financial statements, but in greater detail, and on a fund basis for enterprise funds.
At September 30, 2008, total net assets amounted to $802,790,838 for enterprise funds, as compared to
$745,274,760 as of September 30, 2007. Net assets change as a result of operations, non-operating
revenues and expenses, capital contributions and grants and donations. The Collier County Water and
Sewer District's activity represents the majority of the increase in net assets.
For the year ended September 30, 2008 the Water and Sewer District reported capital grants and
contributions of $21,314,876, which includes system development fees of $9,753,332, $10,117,044 in
developer infrastructure contributions and capital grants, contributions and assessments of$I,444,500.
Net Operatin2 Income/(Loss)
2008 2007
County Water and Sewer $ 22,828,461 $ 10,181,124
N on-major enterprise funds (17,801,466) (19,133,606)
Total $ 5,026,995 $ (8,952,482)
The Collier County Water and Sewer Fund net operating income increased by $12,647,337. The increase
in net operating income was the result of an increase in operating revenues of $8, 11 0,279, or 9%, over the
previous fiscal year, while costs of operations, including depreciation, were down 2% overall. County
Water and Sewer payments in lieu of taxes paid to the General Fund of$3,349,000 were reclassified from
operating expense to operating transfers for financial statement purposes. Personal services expenses
and operating expenses decreased by 2% and 12%, respectively, when compared to fiscal year 2007.
Capital Assets
Collier County's financial statements present capital assets in two distinct groups, those that are
depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that
are depreciated and land and construction in progress are examples of assets not depreciated. Collier
County's investment in capital assets for the governmental and business-type activities amounted to
$2,442,772,916, net of accumulated depreciation. This investment in capital assets, both purchased and
donated, includes land, buildings and improvements, machinery and equipment, parks, roads, beach
renourishment, bridges and drainage structures. Investment in capital assets for the current fiscal year, net
of depreciation, increased by $262,811,967 over the previous year. There was an increase in the
governmental activities of $214,464,557, or 16%. The proprietary fund share of the increase was
$48,347,410, and amounted to a 5% increase. The major factors behind these increases are as follows:
Water and sewer, solid waste disposal and airport authority construction in progress increases
amounted to $55,343,920. Of this amount, $45,354,223 was related to water and wastewater
facilities constructed by the County Water and Sewer District.
Capitalization as construction in progress of $238,891 ,987 of governmental activity related costs,
with $115,184,788 of this increase related to transportation projects, $73,920,055 related to
government facilities, including an emergency operations centers, libraries, a fleet facility and a
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courthouse annex and $49,787,144 in parks and recreation, stormwater, beach renourishment and
other projects.
Purchases of land and non-depreciable assets were $36,734,428 for fiscal year 2008.
Additional information regarding Collier County's capital assets can be found in Note 5 beginning on
page 52 ofthis report.
Debt Administration
At September 30, 2008, Collier County had net bonded revenue debt of $567,752,549 outstanding, an
increase of $24,092,476 from the previous year. The following table illustrates the balances of all
outstanding long-term debt for the fiscal years ended September 30, 2008 and 2007:
Outstanding Debt
2008
2007
Limited General Obligation Revenue Bonds
Revenue Bonds
Florida Local Government Loans
State Revolving Food Loans
Line of Credit and Miscellaneous Notes
Total
$ 29,099,538
567,752,549
85,560,000
115,830,489
5,973,707
$ 804,216,283
$ 27,342,246
588,518,153
51,430,000
106,793,982
6,039,428
$ 780,123,809
During fiscal year 2008 Collier County borrowed a total of $57,391,000 from the Florida Local
Government's pooled commercial paper program for purposes of constructing a Courthouse Annex, Fleet
Facility buildings, the Golden Gate and South Regional Libraries and an Emergency Operations Center,
as well as the purchase of new 800 MHZ equipment and radio locator systems.
During fiscal year 2008 Collier County drew $12,000,000 down on a low interest State Infrastructure
Bank loan. The proceeds of the loan were used in the construction of the 1-75 and Immokalee Road
interchange.
On October 10, 2007, Collier County issued the $6,215,000 Forest Lakes Roadway and Drainage
Municipal Service Taxing Unit Limited General Obligation Bonds, Series 2007. The County issued these
bonds for the purpose of providing funds to finance the costs of certain roadway lighting, roadway related
drainage and roadway restoration within the Forest Lakes Municipal Service Taxing Unit, and to pay
certain costs incurred in connection with the issuance of the Series 2007 bonds.
During fiscal year 2008 Collier County prepaid a total of $22,621,000 in variable rate commercial paper
debt. Prepayments totaling $12,100,000 were made on the County's Caribbean Gardens loan, issued
during fiscal year 2006 for the purchase of land and buildings commonly referred to as Caribbean
Gardens. This loan is secured by up to a .15 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
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Gardens. This loan is secured by up to a .15 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
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 ofthis report.
Budgetary Highlights
Budgetary comparison statements are provided in the basic financial statements for the General Fund and
the Community Redevelopment Fund. Budget columns are presented for both the original budget as well
as the final budget. These columns are followed by a column for actual revenues and expenditures and a
column for differences between final budget and actual revenues and expenditures.
Significant period expenditure budget increases and decreases, over $200,000 within a department, were
made and are outlined in the following table:
DeDartment
Clerk of the Circuit Court
Clerk of the Circuit Court
Clerk of the Circuit Court
County Attorney
Other General Administration
Emergency Management
Transfers Out
Immokalee Redevelopment
Transfers Out
Budget
Increase/(Decr
ease)
Reason for Increase/(Decrease)
$ (601,500)
(200,000)
3,552,500
217,358
1,119,611
438,927
2,863,008
267,607
200,000
Decrease in operating expenditures to special item
Decrease in capital expenditures to special item
Increase to support court ordered bond expense
Outside counsel and professional services
External audit and tax deed application processing
Tropical Storm Fay preparation
Additional General Fund transfers to other funds
Additional contractural services
Additional Redevelopment transfers to other funds
Significant variances between actual results and final budget amounts in the General Fund occurred
during fiscal year 2008. Tax revenues were under budget by $9,875,376 primarily due to the practice of
not budgeting for the discount allowed for property taxes. The discount ranges from a maximum 4% to
I %, depending on the date of payment. Interest income was under budget as interest revenues budgeted
within the Clerk of the Circuit Court's General Fund, were also budgeted in the Board of County
Commissioners' General Fund. Intergovernmental revenues were under budget primarily due to both
sales tax and state revenue sharing revenues being significantly under budget. General Fund general
government expenditures were under budget primarily due to a $4,000,000 watershed study that will be
ongoing from 2008-2010. The project was in the pre-planning stages during fiscal year 2008 and only a
small amount was spent. Also contributing to the budget to actual surplus in the general government
function was the Clerk of the Circuit Court's General Fund functions and the Board's Other General and
Administrative function. The Clerk of the Circuit Court's personal services were under budget by
$963,499 primarily due to leaving positions open due to attrition unfilled and delaying pay increases until
mid year. The Board's Other General and Administrative function was under budget due to expenditures
for property insurance and remittances to other governments and municipalities being significantly less
than anticipated. General Fund culture and recreation expenditures were under budget primarily due to
surpluses in the Beach and Water Parks operation, as well as Library Administration.
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Economic Factors and Year 2009 Budgets and Rates
The following factors were taken into account in preparing the fiscal year 2009 budget:
The population of Collier County decreased by .3% from fiscal year 2007 to fiscal year 2008.
During fiscal year 2008, the Florida Legislature continued to impose restrictions on the ability of
municipalities and counties to increase ad valorem millage rates.
The total number of building permits issued during FY-2008 was 20,580, a 30% decrease from
FY-2007.
The annual unemployment rate in Collier County, without seasonal adjustment, increased by
2.5% from FY-2007 to FY-2008.
Expected decreases in sales tax revenues and gas tax revenues.
The main focus of the Capital Improvement Program in FY -2009 is road construction, various
utilities projects and the finalization of general government facilities construction projects.
During fiscal year 2008, the General Fund unreserved fund balance decreased by $15,665,809 to
$61,952,935. As of February 9, 2009, $57,344,608 of the fiscal year 2008 unreserved fund balance has
been appropriated as carryforward for fiscal year 2009.
Other Discussion
The Clerk of Courts is currently involved in litigation with the County. The Court, in the final judgment
in Case #04-94ICA, consolidated with Case numbers 05-953CA and 05-1506CA, issued September 12,
2007, incorporates by reference three orders dated August 24, 2007. In Paragraph 8 of the Order
Granting. In Part. and Denving, In Part, the "Clerk's Motion for Partial Summarv Judgment Regarding
Undisputed Roles of the Clerk" and Granting "Collier County's Cross-Motion for Summary Judgment on
the Undisputed Roles of the Clerk of Courts". the Court makes the determination that the Clerk has no
duty of preparing and certifYing the accuracy of the County's financial statements, including the annual
management representation letter. Please see the court order attached as pages vii to xxii of the
transmittal letter. The Case is in the appellate process, however, pursuant to paragraph 10 of that same
order, the Board is and has limited the Clerk's scope and ability to determine facts through the audit and
examination process, that would allow the Clerk to represent that the financial statements, to our
knowledge, are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and
include all transactions of the County.
Contact Information
This financial report is intended to give the user a general overview of Collier County Government's
finances. Any questions resulting from review of this information may be addressed to:
Collier County Clerk ofthe Circuit Court
Department of Finance and Accounting
Court Plaza III, Suite 202
2671 Airport Road South
Naples, Florida 34112
Our office may also be contacted via the internet at www.collierclerk.com.
13
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
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Primary Government
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets:
Cash, cash equivalents and investments $ 268.367,830 $ 102,686,884 $ 371.054,714 $ 501,700
Receivables:
Trade, net 2,978,333 11,253,083 14,231,416
Contributions 15,581,910 15,581,910
Special assessments 85,689 712.118 797,807
Interest 4,428,706 963,024 5,391,730
Unbilled revenue 5,405.140 5,405.140
Notes 88,195 88,195
Due from other governments 11,102,299 1,039,049 12,141,348
Internal balances (4.694,619) 4,694,619
Deposits 516,446 13,294 529,740
Inventory 862.130 3,618,318 4.480,448
Prepaid costs 11.693 50,192 61,885
Restricted assets:
Cash, cash equivalents and investments 39,684,980 8,003,143 47,688,123
Total current assets 339.013.592 138,438.864 477 ,452,456 501,700
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 295,011,379 32.850,815 327,862,194
Receivables:
Special assessments 341.798 1,060,128 1.401,926
Notes 13,703,097 3,457,704 17,160,801
Deferred charges 5,135.357 1.669.166 6,804,523
Capital assets:
Land and nondepreciable capital assets 733,829,124 161,829,355 895,658,479
Depreciable capital assets, net 793,435,998 753,678,439 1,547,114,437
Total noncurrent assets 1 ,841 ,456,753 954.545.607 2,796,002.360
Total assets 2.180,470.345 1,092.984.471 3,273.454,816 501,700
The notes to the financial statements are an integral part of this statement.
14
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
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Primary Government
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities:
Accounts payable $ 27.837,366 $ 7,725,378 $ 35,562,744 $
Wages payable 5.894.344 1,688,212 7,582.556
Retainage payable 810.740 805.585 1,616,325
Due to other governments 3.532,526 86,140 3,618,666
Due to individuals 329,410 493,589 822,999
Self-insurance claims payable 5,552,207 5,552,207
Compensated absences 10,040.625 1,746,234 11.786,859
Capital lease obligations 153.670 126,145 279,815
Unearned revenue 2.673,071 2.673.071
Interest payable 8,262.924 2,730,339 10,993.263
Bonds and loans payable 22,332,377 11,087,179 33.419,556
Liabilities payable from restricted assets:
Accounts payable 21,500,286 938,511 22,438,797
Retainage payable 17.363.360 6.152.11 0 23,515,470
Refundable deposits 821,334 460,995 1,282,329
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 127,104.240 34,491.944 16I.596,184
Noncurrent liabilities:
Arbitrage rebate 677.752 1.505.580 2,183,332
Self-insurance claims payable 4,733,793 4,733.793
Compensated absences 11,134.457 436.559 11,571,016
Capital lease obligations 598,870 491.740 1.090.610
Landfill post-closure liability 1.815.160 1,815,160
Net pension obligation 905,979 905.979
Bonds and loans payable, net 519,271,370 251,452,650 770,724,020
Total noncurrent liabilities 537,322,221 255,701,689 793,023,910
Total liabilities 664,426,461 290,193,633 954,620.094
NET ASSETS
Invested in capital assets, net of related debt 1,022,001,435 658,864,846 1,680,866.281
Restricted for:
Growth related capital expansion 136,996,095 15,637,780 152,633.875
Transportation capital projects 97.820,231 97,820,231
Conservation Collier 30,952,267 30,952.267
Tourist development 25,143.253 25,143,253
Debt service 4.099.533 14,226,979 18,326,512
Renewal and replacement 300.000 300.000
Unrestricted 199.031,070 113.761.233 312,792.303 501,700
Total net assets $ 1 ,516.043.884 $ 802,790,838 $ 2,318,834,722 $ 501.700
15
, .
I r
3jrOj'Wl
oJ---
COLLIER COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13 A
Il-
FUNCTIONS/PROGRAMS Expenses
Primary Government:
Governmental Activities:
General government $ 112,719.982 $
Public safety 183,288,162
Physical environment 22,147,876
Transportation 65,979,880
Economic environment 13,475.268
Human services 13,511,552
Culture and recreation 43.435,217
Interest on long-term debt 21.445.546
Total governmental activities 476,003,483
Business-type Activities:
Watef and Sewer 85.502,736
Solid Waste 30.024.054
Airport Authority 5,081,822
Mass Transit 9,418,858
Emergency Medical Services 30.160,498
Total business-type activities 160,187.968
Total primary government $ 636,191,451 $
Component Units:
Collier County Industrial Development Authority $ 14.195 $
Collier County Health Facilities Authority
Collier County Housing Finance Authority 122,500
Collier County Educational Facilities Authority 16,788
Total component units $ 153.483 $
Fees, Fines and
Charges for
Services
Pro~ram
Operating
G rants and
Contributions
36,467,916 $ 935.536
12.544,766 3,501,247
6,539,585 1,018,598
3,936.325 3,552,541
468,476 9,190,584
532.392 1,792,843
8.429.369 210.686
68,918,829 20.202.035
100,030,477 121,479
36,494.828 74,234
3,546.546
1,073,864 4,025,597
16.167,399 171,984
157.313,114 4.393,294
226.231,943 $ 24,595,329
8,383
32,500
93,500
18.260
152,643
General revenues:
Property taxes
Gas taxes
Sales taxes
Tourist taxes
Other taxes
State revenue sharing
Interest income
Change in fair value of investments
Miscellaneous
Special item-bond expense (See Note 18)
Transfers, net
Total general revenues, special items and transfers
Change in net assets
Net assets - beginning, as previously reported
Prior period adjustment
Net assets - beginning, as restated
Net assets - ending
The notes to the financial statements are an integral part of this statement.
16
Y/r(l~9
13 A
tJl
~".
;'.;~ I
Capital
Grants and
Contributions
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental Business-type
Activities Activities
Total
Component
Units
Revenues
$ 8,649.324 $ (66,667,206) $ (66,667,206)
2,525,684 (164,716.465) (164,716,465)
4.364.371 (10,225,322) ( 10.225,322)
31.837,924 (26.653,090) (26,653,090)
419,388 (3,396.820) (3.396,820)
(11,186,317) (11,186,317)
4,505.825 (30,289.337) (30,289,337)
(21,445,546) (21,445,546)
52,302,516 (334,580,103) (334,580,103)
21,314,876 $ 35.964,096 35,964,096
6,545,008 6,545.008
1,559,991 24,715 24,715
439,722 (3.879,675) (3,879,675)
18,030 (13,803,085) (13,803,085)
23,332,619 24,851,059 24,851,059
$ 75,635,135 (334,580,103) 24,851,059 (309,729,044)
$ (5,812)
32,500
(29,000)
1,472
(840)
327,244,938 327.244.938
18,859.845 18.859,845
30.003,927 30,003.927
14.795.623 14.795.623
4.051.145 4,051,145
8.975,798 8,975.798
34,532,805 5.928,045 40,460.850 3,641
(802.753) (212,241) (1.014,994)
10.642.523 76,708 10,719,231
(3,287,593) (3,287,593)
(28.348.084) 28.348.084
416.668,174 34,140,596 450,808.770 3,641
82,088,071 58,991,655 141,079,726 2,801
1,433,955,813 745,274,760 2,179,230,573 498,899
(1,475,577) (1,475,577)
1,433.955.813 743,799,183 2,177.754,996 498,899
$ 1,516,043,884 $ 802.790,838 $ 2,318.834,722 $ 501,700
17
'..... af/o/1Uf1 (j/
COLLIER COUNTY, FLORIDA 1 3 A I!!"'I
BALANCE SHEET , .j
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Road Other Tota]
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
~
Cash, cash equivalents and investments $ 74,367,282 $ 85,002,397 $ 109,208,040 $ 5,577,754 $ 282,736,602 $ 556,892,075
Receivables
Interest 3.932,342 27,954 468,410 4,428,706
Trade, net 553,196 16,143 417,190 3,215 1,344,633 2,334,377
Notes 1,327,870 7,130,682 24,445 5,308,295 13,791,292
Special assessments 427,487 427,487
Due from other funds 1,833,921 8,425 1,223,220 3,065,566
Due from other governments 2,493,104 402,680 3,124,983 4,998.425 11,019,192
Deposits 3,500 3,500
Inventory 159,394 282,609 442,003
Advances to other funds 5,127,194 10,935,100 16,062,294
Prepaid costs 11,217 476 11,693
Total assets $ 89,809,020 $ 92,551,902 $ 112,758.638 $ 5,633,368 $ 307,725,257 $ 608,478,185
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 13,540,547 $ 2,912,333 $ 8,317,482 $ 86,992 $ 23,649,123 $ 48,506,477
Wages payable 3,713,249 94,675 27,151 1.944,132 5,779,207
Due to other funds 1,367,995 265 1,284 1,888,388 3,257,932
Due to other governments 1,363,518 2,168,944 3,532.462
Due to individuals 303,162 26,248 329.410
Deferred revenue 371,092 7,130,682 196.124 24,445 8,279,787 16,002,130
Refundable deposits 594,037 200.000 27,297 821,334
Retainage payable 7,267,060 6,128,842 4,778,198 18,174,100
Advances from other funds 16,062,294 16,062,294
Tota] liabilities 21,253,600 17,310,340 14,938,407 138,588 58,824,411 112,465,346
Fund balances:
Reserved for:
Encumbrances 1,301,180 12,410,814 50,696,872 129,331 64,454,951 128,993.148
Deposits 3,500 3,500
Inventory 159,394 218 159,612
Advances to other funds 5,127,194 10,935,100 16,062,294
Prepaid costs 11,217 476 11,693
Debt service 4,099,533 4.099,533
Unreserved, reported in:
General fund 61,952,935 61,952,935
Special revenue funds 5,365,449 116,677,886 122.043,335
Debt service funds 1,950,878 1,950.878
Capital project funds 62,830,748 47,123,359 50,781,804 160,735,911
Tota] fund balances 68.555,420 75,241,562 97,820,231 5,494,780 248,900,846 496,012,839
Total liabilities and fund balances $ 89,809,020 $ 92,551,902 $ 112,758,638 $ 5,633,368 $ 307,725,257 $ 608,478,185
The notes to the financial statements are an integral part of this statement.
18
,
COLLIER COUNTY, FLORIDA
RECONCILIA nON OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Differences in amounts reported for governmental activities in the statement of net assets on
pages 14-15:
Fund balances - total governmental funds
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the funds. Those assets consist of:
Land and other non-depreciable assets
Construction in progress
Depreciable assets, net of$391,001,598 in accumulated
depreciation.
Certain accounts receivable are not financial resources and therefore are not reported in the
governmental funds.
Certain long-term assets are not financial resources and therefore are not reported in the
governmental funds.
Certain revenues will be collected after year-end, but are not available to pay for the current
period's expenditures, and therefore are reported as deferred revenue in the funds.
Certain liabilities applicable to the County's governmental activities are not due and payable in
the current period and accordingly are not reported as fund liabilities. Interest on long-term
debt is not accrued in the governmental funds, but is recognized as an expenditure when due.
All liabilities are reported in the statement of net assets. Balances at September 30,2008 are:
Accrued interest on bonds
Bonds and notes payable
Capital lease obligations
Compensated absences
Arbitrage rebate liability
Unamortized deferred loss
Unamortized premium
Unamortized discount
Internal service funds are used by the County to charge self-insurance and fleet management
services to individual funds. The assets and liabilities of the internal service funds are included
in governmental activities in the statement of net assets. Internal service fund net assets are:
Total net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
19
$ 311,343,475
422,485,649
779.047.474
$ (8.262,924)
(525.436,000)
(752,540)
(20,971,667)
(677,752)
376.879
(17,107,361)
562.735
o!'o/tJa q ct
13 A '.4l I
$ 496,012,839
1.512.876,598
15,581,910
5,135,357
13,329.059
(572,268,630)
45,376,751
$ 1,516,043,884
COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
, I
311012<<11
13 A
ct
Road Other Total
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
Revenues:
Taxes $248,150,424 $ $12.975,896 $ 3,182,300 $ 93.347.805 $ 357,656,425
Licenses and permits 140,761 17,231,731 17.372,492
Intergovernmental 42,093,551 9,186,185 26,172,171 77.451.907
Charges for services 17,558,882 5,052 3,229,429 19,905,622 40.698.985
Fines and forfeitures 636,664 3,149,342 3,786,006
Interest income 30.090.172 6.884 23,490 242,379 3,968,330 34,331,255
Change in fair value
of investments (42,064) (127,916) (165.117) (8,356) (407.275) (750.728)
Impact fees 29,141,348 7,537,672 36.679,020
Special assessments 2,941,370 2,941.370
Miscellaneous 2,308,827 239,673 4.918,580 5,742 3,194,477 10,667,299
Total revenues 340,937.217 29,265,041 30.168,463 3,422.065 177,041,245 580,834,031
Expenditures:
Current:
General government 63,460.949 33,437,058 96,898,007
Public safety 152,093,485 23,649,002 175,742,487
Physical environment 896,971 8,417.293 9,314,264
Transportation 1,219,118 6,355,505 40,678,452 48,253,075
Economic environment 1,849,794 1,096,445 10,532,522 13,478,761
Human services 10,792.336 2.063,033 12,855.369
Culture and recreation 16,477,418 19.978.570 36.455.988
Debt service:
Principal 43,080,410 43,080,410
Interest 21,816.163 21,816,163
Fiscal charges 164,870 164.870
Capital outlay 4.356,857 63,214,869 69,083,387 866.331 148,287,476 285,808,920
Total expenditures 249,927.810 64,433.987 75.438,892 1.962,776 352.104,849 743,868,314
Excess (deficiency) of revenues
over (under) expenditures 91,009,407 (35,168,946) (45,270.429) 1,459,289 (175,063,604) (163.034,283)
Other financing sources (uses):
Bonds issued 6,215,000 6.215.000
Premium on bonds issued 30,815 30,815
Loans issued 12,000,000 57,391,000 69,391,000
Sale of capital assets 223,103 21.518 244,621
Insurance proceeds 7,074 3.517 197,677 208.268
Transfers in 8.326,422 26,160,062 110,337,687 144.824.171
Transfers out (109,047.625) (16.962,800) (471.979) (36.592,961) (163,075,365)
Total other financing sources (uses) (100,491,026) 21,200,779 (471.979) 137,600.736 57,838,510
Special item - bond expenditure (See Note 18) (3,287,593) (3,287,593)
Net change in fund balances (12.769.212) (35.168,946) (24,069,650) 987.310 (37,462.868) (108,483.366)
Fund balances at beginning of year 81,324,632 110,410,508 121,889.881 4,507,470 286.363,714 604,496.205
Fund balances at end of year $ 68.555,420 $75,241,562 $97.820.231 $ 5,494,780 $ 248,900.846 $ 496,012,839
The notes to the financial statements are an integral part ofthis statement
20
COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND:
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2008
Differences in amounts reported for governmental activities in the statement of activities on
pages 16-17:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense.
J/(Of2PJ~
13 A
CIV
$ (108.483,366)
Capital outlay $ 285,808,920
Depreciation expense (60,350.414) 225.458,506
Donations of capital assets are not financial resources to governmental funds, but receiving
donated assets increases net assets in the statement of net assets. 1,722,918
Capital assets transferred to proprietary funds are not recorded in the governmental funds as
there is no flow of current financial resources. (23.782,028)
In the statement of activities, the loss on the sale of capital assets is reported, However, in the
governmental funds the proceeds from the sale of capital assets increase financial resources.
The change in net assets differs from the change in fund balance by the net book value of
assets disposed. (2,542,377)
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds. 304.804
Debt proceeds provide current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net assets. (75,636,815)
Repayment of principal on long-term debt is an expenditure in governmental funds, but a
reduction of long-term liabilities in the statement of net assets.
Bond and loan principal payments $ 42,936,000
Payments on capital lease obligations 144.410 43,080,410
Certain amounts reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental funds.
Increase in compensated absences
Accrued interest on bonds
Amortization of deferred charges, net
Amortization of deferred loss
Amortization of premium
Amortization of discount
Increase in arbitrage rebate liability
$ (1,782,479)
169,597
(173.475)
(94,219)
1,125.409
(28,336)
(463.489)
The net revenues of internal service funds are reported with governmental activities.
Change in net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
21
(1,246.992)
23,213.011
$ 82.088,071
COLLIER COUNTY, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
3ft1>l2/J01
13 A
CI-
-\
.' ~'
Variance with
Final Budget
Original Final Favorable
Bud~et BudEet Actual (Unfavorable)
Revenues:
Taxes $ 258,025,800 $ 258,025,800 $ 248,150.424 $ (9.875.376)
Licenses and permits 161,000 161,000 140,761 (20,239)
Intergoverrunental 47,412,500 47,412,545 42,093.551 (5,318,994)
Charges for services 24,703,448 24,832,668 20,962,782 (3,869,886)
Fines and forfeitures 575,700 575.700 636,664 60,964
Interest income 34,632.300 34,632.300 30,090,172 (4,542,128)
Miscellaneous 10,466,400 10,544,402 12,018,427 1.474.025
Total revenues 375.977,148 376,184,415 354,092,781 (22,091,634)
Expenditures:
Current:
General government
Board of County Commissioners personal services 1,056,700 1,056,700 986.180 70,520
Board of County Commissioners operating 105.200 133.200 140,039 (6,839)
County manager administrative personal services 973,600 980,200 919,839 60.361
County manager administrative operating 31,300 31,300 60.324 (29.024)
Budget and management personal services 866,800 860,200 800,416 59,784
Budget and management operating 72,200 72.200 73,590 (1,390)
Administrative services personal services 5,928.400 5.992,400 5,453,586 538,814
Administrative services operating 2,838,700 2,736,370 2,817,560 (81.190)
Administrative services capital outlay 204.300 196.800 60,673 136,127
Human resources administration personal services 1.583,100 1,605,100 1,551,058 54,042
Human resources administration operating 311,100 289,631 271.595 18,036
Human resources administration capital outlay 3,000 3,000 3,000
Clerk of the Circuit Court personal services 7.188,500 7,270,000 6.306,501 963,499
Clerk of the Circuit Court operating 4,034,600 3,433, I 00 2,517,842 915,258
Clerk of the Circuit Court capital outlay 518.200 318,200 3.328 314,872
Property Appraiser personal services 4,914,546 4.914,546 4.813,602 100,944
Property Appraiser operating 2,291,733 2,291,733 2,133,880 157.853
Property Appraiser capital outlay 209,117 209,117 66,190 142,927
Tax CoiIector personal services 9,208,581 9.092.126 9.092.126
Tax Collector operating 2,491.692 2,400,597 2,391.454 9.143
Tax Collector capital outlay 103,411 210,569 210,569
County attorney personal services 3,173,600 3,173.600 3,034,355 139,245
County attorney operating 316,400 533.758 463.674 70,084
County attorney capital outlay 44,000 16,642 16.120 522
Natural resources personal services 221,700 224,000 218,630 5,370
Natural resources operating 3,887,600 3,885.300 204,183 3.681,117
Natural resources capital outlay 1,500 1,500 1,500
22
ir42/lJ? Cf-
Circuit cairn costs operating 83,700 73,800 28.722 45.07813 I
Circmt co'urt costs capital outlay 9,900 7,814 2.086
Courthouse security personal services 106.200 106,200 95.325 10,875
Courthouse security operating 1.016.600 1,016.600 947,738 68.862
Courthouse security capital outlay 62,000 62,000 48,426 13,574
County court cost operating 46,200 43,200 9,662 33,538
County court cost capital outlay 3.000 2.654 346
State Attorney operating 519,400 519,400 498,762 20,638
State Attorney capital outlay 23.000 23.000 19.610 3,390
Public Defender operating 216,100 216,100 176,628 39,472
Public Defender capital outlay 4,100 4.100 1,933 2,167
Other general administrative personal services 60,000 126,000 125,960 40
Other general administrative operating 7,992,600 9,112,211 6,834,876 2.277,335
Facilities management personal services 3,509.300 3,539,300 3,527,678 11,622
Facilities management operating 7.836.700 8.020,577 8,126,848 (106,271)
Facilities management capital outlay 268,000 255.390 158.433 96,957
Sheriff personal services 3,812,900 3,812.900 3.945,863 (132,963)
Sheriff operating 156.500 156,500 133,382 23,118
Sheriff capital outlay 20,912 20,912
Supervisor of Elections personal services 1.728,500 1,775,650 1,619,698 155,952
Supervisor of Elections operating 2,230,100 2.156,739 1,894,613 262,126
Supervisor of Elections capital outlay 3,500 24,856 124.303 (99,447)
Real property management personal services 932,000 932,000 871.881 60.119
Real property management operating 37,400 37,400 62,213 (24,813)
Real property management capital outlay 2,124 (2,124)
Total general government 83,224,380 83,979,624 73,893,372 10,086,252
Public safety
Sheriff personal services 120,892.900 120.892.900 122.393,257 (1,500,357)
Sheriff operating 27,488,700 27,467,788 25,788,601 1,679.187
Sheriff capital outlay 4,487,600 4.487,600 3.086,275 1,401,325
Emergency management administration personal services 830,500 830,545 821,124 9,421
Emergency management administration operating 202,700 641,627 434,983 206,644
Emergency management administration capital outlay 10,000 10.000 9,311 689
Helicopter operations personal services 699,400 745,400 715,515 29,885
Helicopter operations operating 864.800 818,800 837,662 (18,862)
Medical examiner sentices operating 1,118,200 1,118,200 1,102,343 15,857
Total public safety 156,594.800 157,012,860 155,189.071 1,823.789
Physical environment
Conservation and resource management personal services 807,700 813.000 727.454 85,546
Conservation and resource management operating 210,300 210,300 147,265 63,035
Immokalee cemetery operating 25,800 25,800 22,252 3.548
Total physical environment 1,043,800 1,049, I 00 896,971 152,129
Economic environment
Veterans services personal services 285,700 285,700 274,745 10,955
Veterans services operating 80,200 80,200 50,183 30.017
Impact fee assistance operating 750,000 750,000 481.580 268.420
Housing and urban improvement operating 1,612,100 1,612,100 1,524,866 87,234
Total economic environment 2,728,000 2.728,000 2,331,374 396,626
23
- 4/of7Jd( ct-
Human services 13 A j
Health Care Responsibility Act operating 50,000 50,000 14,021 35,979
Domestic animal services personal services 1,967.300 1,967,300 1,821,129 146.171
Domestic animal services operating 784,600 784.600 818,061 (33,461)
Domestic animal services capital outlay 297,100 415,075 106,809 308,266
Health department operating 1,789,500 1.189.500 2.054,410 (264.910)
Health department capital outlay 20.000 20,000 18,789 1,211
Mental health operating 917,600 917,600 1,142.425 (224.825)
Client assistance personal services 605,600 605.600 569,376 36.224
Client assistance operating 4,142,700 4,170,573 4,041.577 128.996
Client assistance capital outlay 3.000 3,000 3,000
Public services division office personal services 304.400 313,300 301,993 11,307
Public services division office operating 19,700 20,000 29,344 (9,344)
Total human services 10,901,500 11,056,548 10,917.934 138,614
Culture and recreation
Library administration personal services 5,549.200 5.653,700 5,231.393 422.307
Library administration operating 1,238,100 1,238.1 00 1,356,402 (118,302)
Library administration capital outlay 240,500 240,500 219,390 21,110
Extension services personal services 182.300 184.300 177.929 6.371
Extension services operating 11,900 11.900 10.892 1.008
Extension services capital outlay 1,000 1.000 1.000
Beach and water park operation personal services 5,293.700 5.279,500 4,779,954 499,546
Beach and water park operation operating 5,434,700 5,437,226 4,920,848 516,378
Beach and water park operation capital outlay 190,100 215.874 172,194 43,680
Total culture and recreation 18,141,500 18.262.100 16,870,002 1,392,098
Total expenditures 272,633,980 274,088.232 260,098,724 13,989,508
Excess of revenues over expenditures 103,343,168 102,096,183 93.994,057 (8,102,126)
Other financing sources (uses):
Sale of capital assets 350,000 350,000 223,103 (126.897)
Insurance proceeds 2,254 7,074 4.820
Transfers in 2.000,300 2,000,300 4,922,522 2,922.222
Transfers out (118.261,968) (121,124,976) (110,747,625) 10,377.351
Total other financing sources (uses) (115,911.668) (118,772,422) (105.594,926) 13,177,496
Special item - bond expenditure 3,552,500 3,287.593 264,907
Net change in fund balance (12,568.500) (20.228,739) (14,888,462) 5.340.277
Fund balance at beginning of year 50,607,800 58,018,237 58,018.237
Fund balance at end of year $ 38,039,300 $ 37,789,498 $ 43,129,775 $ 5,340,277
Reconciliation:
Net change in fund balance, budgetary basis $ (14,888,462)
Bad debt expense (20,266)
Net change in fair value of investments (42,064)
Advances budgeted as transfers 1,700,000
Impact fee assistance receivable 481.580
Net change in fund balance, GAAP basis $ (12,769,212)
The notes to the financial statements are an integral part of this statement.
24
t~~ fl-"
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,';
COLLIER COUNTY, FLORIDA
COMMUNITY REDEVELOPMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Variance with
Final Bndget
Original Final Favorable
Budget Bndget Actnal (Unfavorable)
Revenues:
Taxes $ 3,182,300 $ 3.182.300 $ 3.182,300 $
Interest income 10,000 10.000 242,379 232,379
Miscellaneous 5,742 5,742
Total revenues 3,192,300 3,192,300 3,430,421 238,121
Expenditures:
Current:
Economic environment
Bayshore/Gateway personal services 318,000 349,020 348,904 116
Bayshore/Gateway operating 679,100 698,100 209.345 488.755
Bayshore/Gateway capital outlay 1,454,000 1.254,000 863,642 390,358
Immokalee redevelopment personal services 180,200 215,381 159,284 56,097
Immokalee redevelopment operating 387,000 619,426 378,912 240,514
Immokalee redevelopment capital 68,000 68,000 2,689 65,311
Total expenditures 3,086,300 3,203,927 I ,962,776 1,241,151
Excess (deficiency) of revenues over
(under) expenditures 106.000 (11.627) 1 ,467 ,645 1.479,272
Other financing uses:
Transfers out (500,000) (700,000) (471,979) 228,021
Total other financing uses (500,000) (700,000) (471,979) 228,021
Net change in fund balance (394.000) (711.627) 995,666 1,707,293
Fund balance at beginning of year 3.985,100 4,236,526 4,236,526
Fund balance at end of year $ 3,591,100 $ 3,524,899 $ 5,232,192 $ 1,707,293
Reconciliation:
Excess of revenues over expenditures, budgetary basis $ 995,666
Net change in fair value of investments (8.356)
Net change in fund balance, GAAP basis $ 987.310
25
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
1(0/24i1
13A
~
.' .
b i
,,'.
Businesswtype Activities Enterprise Funds Governmental
Activities -
County Waler Other Internal Service
and Sewer Funds Total Funds
ASSETS
Current assets:
Cash, cash equivalents and investments $ 75,889,646 $ 26,797,238 $ 102,686,884 $ 46,172,114
Receivables.
Trade, net 5,106,744 6,146,339 11,253,083 643,956
Special assessments 712,118 712,118
Interest 827,069 135,955 963,024
Unbilled revenue 5,125,280 279,860 5,405,140
Due from other funds 11,903 71,210 83,113 118,495
Due from other governments 116,315 922,734 1,039,049 83,107
Deposits 13,294 13,294 512,946
Inventory 3,448,244 170,074 3,618,318 420,127
Prepaid costs 50,192 50,192
Restricted assets:
Cash, cash equivalents and investments 7,256,234 746,909 8,003,143
Total current assets 98,506,847 35,320,511 133,827.358 47,950.745
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 32,850,815 32,850,815
Receivables:
Special assessments 1,060,128 1,060,128
Notes 3.457,704 3,457,704
Deferred charges 1,669,166 1,669,166
Capital assets.
Land and nondepreciable capital assets 143,498,438 18,330,917 161,829,355
Depreciable capital assets, net 722,431,027 31,247,412 753,678,439 14,388,524
Total noncurrent assets 904,967,278 49,578,329 954,545,607 14,388,524
Total assets 1,003,474,125 84,898,840 1,088,372,965 62,339,269
(Continued)
26
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
3/r~~
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Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
LIABILITIES
Current liabilities:
Accounts payable $ 4,337,105 $ 3,388,273 $ 7,725,378 $ 831,175
Wages payable 875,626 812,586 1,688,212 115,137
Retainage payable 763,343 42,242 805,585
Due to other funds 8,914 73 8,987 255
Due to other governments 61,786 24,354 86,140 64
Due to individuals 71,538 422,051 493,589
Self-insurance claims payable 5,552,207
Compensated absences 1,020,949 725,285 1,746,234 162,732
Capital lease obligations 126,145 126,145
Interest payable 2,730,339 2,730,339
Bonds and loans payable 11,087,179 11,087,179
Liabilities payable from restricted assets:
Accounts payable 938,511 938,511
Retainage payable 6,090,136 61,974 6,152,110
Refundable deposits 154,880 306,115 460,995
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 28,213,013 6,287,918 34,500,931 6,661,570
Noncurrent liabilities:
Arbitrage rebate 1,505,580 1,505,580
Self-insurance claims payable 4,733,793
Compensated absences 255,237 181,322 436,559 40,683
Capital lease obligations 491,740 491,740
Net pension obligatIOn 905,979
Landfill post-closure liability 1,815,160 1,815,160
Bonds and loans payable, net 251,452,650 251,452,650
T atal noncurrent liabilities 253,213,467 2,488,222 255,70 I ,689 5,680,455
Tatalliabilities 281,426,480 8,776,140 290,202,620 12,342,025
NET ASSETS
Invested in capital assets, net of related debt 609,904,402 48,960,444 658,864,846 14,388,524
Restricted far growth related capital expansion 15,637,780 15,637,780
Restricted for renewal and replacement 300,000 300,000
Restricted for debt service 14,226,979 14,226,979
Unrestricted 81,978,484 27,162,256 109,140,740 35,608,720
Total net assets $ 722,047,645 $ 76,122,700 798,170,345 $ 49.997,244
Cumulative consolidation adjustment for internal service fund activities related to enterprise funds. 4.620,493
Net assets of Business-type Activities $ 802,790,838
The notes to the financial statements are an integral part of this statement
27
COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
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Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
Operating revenues:
Charges for services $ 98.982.033 $ 56,099,681 $155.081,714 $ 71,392,559
Insurance proceeds 4,011,040
Miscellaneous 709,807 1,521.593 2.231,400 687,070
Total operating revenues 99,691,840 57,621,274 157,313,114 76,090,669
Operating expenses:
Personal services 23,460,326 21.966.708 45,427,034 3,053,585
Operating 26,246,368 50,325,155 76,571.523 61.745,355
Depreciation and amortization 27,156,685 3,130.877 30,287,562 367,265
Total operating expenses 76,863,379 75,422,740 152,286,119 65,166,205
Operating income (loss) 22,828,461 (17,801.466) 5,026,995 10,924,464
Non-operating revenues (expenses):
Operating grants and contributions 121,479 4,271,815 4,393,294
Interest income 5,560,834 367,211 5.928,045 201,550
Insurance reimbursement 42,197 34,511 76,708
Change in fair value of investments (171,151) (41,090) (212,241) (52,025)
Rebatable arbitrage (282.867) (282.867)
Interest expense (8.883,950) (10.113) (8,894,063)
Loss on disposal of capital assets (17,605) (238,010) (255,615) (21,274)
Total non-operating revenues (expenses) (3,631,063) 4.384,324 753,261 128,251
Income (loss) before contributions and transfers 19.197,398 (13,417,142) 5,780.256 11,052,715
Capital grants and contributions 21,314,876 12,114,633 33,429,509 13,690,992
Transfers in 224,203 24,650,217 24,874,420
Transfers out (4,576,519) (2,046,707) (6,623.226)
Change in net assets 36.159,958 21,301.001 57,460,959 24,743,707
Net assets. beginning, as previously stated 687,363,264 54,821,699 25,253.537
Prior period adjustment (1,475,577)
Net assets ~ beginning, as restated 685,887,687 54,821,699 25,253,537
Net assets - ending $ 722,047.645 $ 76,122,700 $ 49,997,244
Consolidation adjustment for internal service fund activities related to enterprise funds. 1,530,696
Change in net assets of Business-type Activities $ 58,991,655
The notes to the financial statements are an integral part of this statement.
28
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COLLIER COUNTY, FLORIDA 1 A .,
STATEMENT OF CASH FLOWS \
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Governmental
Activities -
County Other Internal Service
Water and Sewer Funds Total Funds
Cash flows from operating activities:
Cash received for services $ 99.569.348 $ 48,862,066 $148,431,414 $
Cash received from other funds for services 64.846,369
Cash received from employees for services 6.636,665
Cash received from insurance 3.657,200
Cash received from other governments for services 18 18 464.435
Cash received from refundable deposits 50,000 524.714 574.714
Cash received from retirees for services 1,269,945
Cash payments on behalf of retirees (1,109,750)
Cash payments for goods and services (27.254,482) (43,369,790) (70.624,272) (62,390,338)
Cash payments to employees (23,360,622) (21,764,418) (45,125,040) (3,003,320)
Cash payments on refundable deposits (26,000) (631,826) (657,826)
Net cash provided by (used for)
operating activities 48,978,262 (16.379.254) 32,599,008 10,371,206
Cash flows from non-capital financing activities:
Cash received from operating grants 5,142.985 5,142,985
Cash transfers from other funds 224,666 28,449,232 28,673.898
Cash transfers to other funds (4.657.102) (5,834.181 ) (10.491.283)
Net cash provided by (used for) non-
capital financing activities (4,432,436) 27,758,036 23,325,600
Cash flows from capital and related
financing activities:
System development charges 10,002,538 10,002,538
Special assessment collections 659.742 659,742
Receipts from insurance reimbursements 42.197 34,511 76,708
Proceeds from disposal of capital assets 359,135 29,517 388,652 14,564
Proceeds from capital grants 1,894,500 2,184,153 4.078.653
Proceeds from state revolving loans 1,748.134 1.748,134
Payments for capital acquisitions (55,165,974) (13,401,094) (68,567,068) (319,650)
Principal payments on state revolving loans (5,365,046) (5,365,046)
Principal payments on bonds (4.745,000) (4.745,000)
Principal payments on leases (42,398) (42,398)
Interest and fiscal agent fees paid (10,236,755) (10.113) (10,246,868)
Net cash provided by (used for) capital and
related financing activities (60,806,529) (11.205.424) (72,011,953) (305,086)
Cash flows from investing activities:
Interest on investments 6,141,804 325,022 6,466,826 221,440
Change in fair value of investments (171.151) (41,090) (212,241) (52.025)
Net cash provided by investing activities 5,970,653 283.932 6.254,585 169.415
Net increase (decrease) in cash, cash equivalents and investments (10,290,050) 457,290 (9,832,760) 10,235,535
Cash, cash equivalents and investments, October I, 2007 126,286,745 27,086.857 153,373,602 35,936,579
Cash, cash equivalents and investments, September 30,2008 $ 115,996,695 $ 27,544,147 $ 143,540.842 $ 46,172,114
Current cash, cash equivalents and investments $ 75,889,646 $ 26.797,238 $ 102,686.884 $ 46,172,114
Current cash, cash equivalents and investments - restricted 7.256,234 746.909 8,003.143
Noncurrent cash, cash equivalents and investments ~ restricted 32,850,815 32,850,815
Cash, cash equivalents and investments, September 30, 2008 $ 115.996,695 $ 27,544.147 $ 143,540,842 $ 46,172,114
(Continued)
29
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
3{t6!2Pt
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Business-type Activities Enterprise Funds Governmental
Activities-
County Other Internal Service
Water and Sewer Funds Total Funds
Operating income (loss) $ 22.828,461 $(17.801.466) $ 5,026,995 $ 10,924,464
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense 26,552,696 3,130,877 29,683,573 367,265
Amortization of bond issuance costs 543,534 543,534
Amortization of utility acquisition adjustment 60,455 60.455
Net changes in assets and liabilities:
Trade receivable (207.208) (936.550) (1,143,758) (321,282)
Due from other funds 53.388 (7,080) 46,308 391,948
Due from other governments 46,950 566 47,516 (33,789)
Deposits (7,027) (7,027) (95,208)
Prepaid costs 8,290 (50,192) (41.902)
Inventory (279.588) 1,808 (277,780) (45,577)
Accounts payable (831.806) (25,179) (856.985) (472,502)
Wages payable 47,792 113.221 161,013 20,783
Notes payable
Due to other funds (1,056) (39.832) (40,888) (15,421)
Due to other governments 61,778 3,548 65,326 64
Due to individuals 376 405.846 406,222
Compensated absences 51,912 88,473 140,385 29,482
Refundable deposits 49,315 (107,112) (57,797)
Unearned revenue (6,233) (6,233)
Self-insurance claims payable (1,285,000)
Net pension obilgation 905,979
Landfill post closure liability (1.149,949) (1.149,949)
Total adjustments 26.149,801 1,422,212 27.572,013 (553,258)
Net cash provided by (used for) operating activities $ 48.978,262 $(16,379.254) $ 32,599,008 $ 10,371 ,206
Non-cash investing, capital and financing activities:
The enterprise funds experienced a non-cash investing loss due to a change in the fair value of investments as follows:
County Water and Sewer $ (171,151)
Other funds (41,090)
Total $ (212,241)
There were non.cash developer contributions of $1 0, 117,044 in the County Water and Sewer District fund.
There were non-cash contributions of $1 0,096,889 in the other enterprise funds, as assets with a historical cost
of$10,163,338 and accumulated depreciation of $66,449 were transferred in from other funds. In addition, assets
with a fair value of$488,580 were purchased for $48,857.
The internal service funds experienced a non.cash investing loss due to a change in the fair value of investments as follows:
Internal service funds $ (52,025)
There were non-cash contributions of$13,690,992 in the internal service funds, as assets with a historical cost
of$13,792,071 and accumulated depreciation of$101,079 were transferred in from other funds.
The notes to the financial statements are an integral part of this statement.
30
COLLIER COUNTY, FLORIDA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2008
Agency
Funds
ASSETS
Cash, cash equivalents and investments $ 32,678,806
Receivables:
Interest 31.275
Other 42,455
Total assets $ 32,752.536
LIABILITIES
Due to other governments $ 4,975,705
Due to individuals 1,822,109
Refundable deposits 19,981,727
Due to special assessment holders 5.972.995
Total liabilities $ 32.752,536
The notes to the financial statements are an integral part of this statement.
31
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rP
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
01 {()/~~ ~
13 A r.
INDEX
NOTE
PAGE NUMBER
1 Summary of Significant Accounting Policies 34
2 Cash, Cash Equivalents and lnvestments 46
3 Trade Receivables 49
4 1nterfund Payab1es and Receivables 50
5 Capital Assets 52
6 Long-Term Obligations 53
7 Conduit Debt Obligations 61
8 Defeased Debt 61
9 Pension Plan Obligations 62
10 Transfers 64
11 Net Assets/Fund Balances 64
12 Risk Management 66
13 Other Postemployment Benefits 68
14 Landfill Liability 72
15 Significant Contingencies 73
16 Significant Commitments 74
17 Fund Deficits 74
18 Special Item 75
19 Prior Period Adjustment 75
20 Subsequent Events 75
33
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE REPORTING ENTITY
The primary government consists of Collier County, a political subdivision of the State of Florida
that was established in 1923 by the Florida State Legislature. The County is governed by a Board
of County Commissioners which consists of five members elected within single member districts.
In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property
Appraiser, Sheriff, Clerk of the Circuit Court and Supervisor of Elections. The Constitutional
Officers are elected county wide. Under the direction of the Clerk of the Circuit Court, the Collier
County Finance and Accounting Department maintains the accounting system for the operations of
the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court.
The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems.
For financial reporting purposes the operations of the Board of County Commissioners and the
Constitutional Officers are combined and presented as the primary government.
Component units are legally separate agencies that the primary government is financially
accountable for or organizations which should be included in the reporting entity because of the
nature and significance of their relationship with the primary government. Financial accountability
is determined by the primary government's ability to appoint the voting majority of the entity's
board, impose its will on the organization, and the existence of a financial benefit/burden
relationship or fiscal dependency.
The County's blended component units consist of organizations whose respective governing Boards
are composed entirely of the Board of County Commissioners serving ex-officio. These entities are
legally separate, however financial support has been pledged and financial or operational policies
may be significantly influenced by the County. In accordance with Governmental Accounting
Standards Board (GAS B) Statement No. 14, The Financial Reporting Entity, as amended by GASB
Statement No. 39, Determining Whether Certain Organizations are Component Units, these
organizations are reported as if they were part of the County's operations.
Collier Countv Water and Sewer District
The District was established by Chapter 88-499, as amended by Chapter 03-353,
Laws of Florida, to provide water, sewer and effluent services to portions of the
unincorporated area of Collier County.
Goodland Water District
The District was established by a Special Referendwn Election authorized by
Collier County Ordinance 75-5 and Section 125.01(q), Florida Statutes. The
District provides potable water service to the residents of Goodland.
Collier County Community Redevelopment Agencv (CRA)
The CRA was established by Resolution 2000-82 to benefit blighted areas in both
the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment
areas. These two redevelopment areas are geographically separate and distinct.
34
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3{ (oj fJtJ~
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The County's discretely presented component units consist of organizations whose board members
are appointed by the Board of County Commissioners. The County is able to impose its will on
these entities because of its ability to remove appointed members from the component units'
Boards. The Authorities maintain their own financial records, but do not issue separate financial
statements. GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB 39,
requires that the financial data of the following organizations be reported in separate columns to
emphasize that they are legally separate from the County.
Collier County Housing Finance Authority
The Authority was formed in 1980 by Collier County Ordinance 80-66 for the
purpose of stimulating the construction of residential housing for low and
moderate income families through the use of public financing. Their financial
position and results of operations are reported in the accompanying financial
statements and the outstanding conduit debt issued by the Authority is disclosed in
Note 7, "Conduit Debt Obligations".
Collier County Health Facilities Authority
The Authority was established in 1979 by Collier County Ordinance 79-75 for the
purpose of assisting health facilities in the acquisition, construction and financing
of projects within the County. Their financial position and results of operations
are reported in the accompanying 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 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 99-177 to assist
institutions for higher education in the construction, financing and refinancing of
projects. Their financial position and results of operations are reported in the
accompanying financial statements and the outstanding conduit debt issued by the
Authority is disclosed in Note 7, "Conduit Debt Obligations".
Financial information on the individual component units can be obtained from their respective
administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit
Court.
35
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
J/r42(f)q tfi--
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
THE REPORTING ENTITY - CONTINUED
Administrative Offices:
Collier County Water and Sewer District and
Goodland Water District
3301 East Tamiami Trail
Naples, Florida 34112
Collier County Health Facilities Authority and
Housing Finance Authority
5811 Pelican Boulevard, Suite 210
Naples, Florida 34108
Bayshore Gateway Community
Redevelopment Agency
2740 Bayshore Drive, Unit 17
Naples, Florida 34112
Collier County Industrial Development
Authority and
Educational Facilities Authority
3050 N. Horseshoe Drive, Suite 120
Naples, Florida 34104
Immokalee Community Redevelopment
Agency
3301 East Tamiami Trail
Naples, Florida 34112
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS
The basic financial statements are made up of the government wide financial statements and fund
financial statements. Both of these sets of financial statements distinguish between the
governmental and business type activities of Collier County. The government wide financial
statements consist of a Statement of Net Assets and a Statement of Activities. These statements
report on the financial condition of Collier County, at the reporting entity level. Internal balances
represent net amounts due between the governmental and business-type activities. As a general
rule, the effect of interfund activity has been eliminated from the government wide financial
statements. Fiduciary funds are not included in these presentations as their assets do not
represent amounts that are available for Collier County government operations. The Statement
of Net Assets reports all financial and capital resources of Collier County's governmental and
business-type activities. Net assets equal assets minus liabilities, and is shown in three
categories: invested in capital assets, net of related debt; restricted net assets and unrestricted net
assets. The Statement of Activities reports results of operations on a functional activity
(program) basis and demonstrates to what degree the particular program has been self-
supporting.
36
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
I
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1
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - CONTINUED
Program revenues are reported in the following three categories: charges for services, operating
grants and contributions and capital grants and contributions. Charges for services are 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 goverrunent.
When both restricted and unrestricted resources are available, restricted resources will be used first
for incurred expenditures, and unrestricted as needed.
The fund financial statements follow the goverrunent 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 goverrunental and proprietary funds. Following the goverrunental fund
balance sheet and statement of revenues, expenditures and changes in fund balances is a
reconciliation explaining the differences between the goverrunental fund presentation and the
goverrunent wide presentation.
BASIS OF PRESENT AnON
The following are reported as major governmental funds:
General Fund - the General fund is the general operating fund of the County. All general tax
revenues and other receipts that are not accounted for in other funds are accounted for in the
General Fund. The general operating funds of the Clerk of the Circuit Court, Property Appraiser,
Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County
Commissioners' general operating fund in the County's consolidated General Fund.
Road Impact Districts Fund - the Road Impact Districts Capital Project fund is used to account for
the receipt and expenditure of road impact fees collected from qualifying new construction. The
impact fees must be used for the acquisition and construction of transportation related facilities by
district.
Road Construction Fund - the Road Construction Capital Project fund is used to account for the
receipt and expenditure of gas taxes and bond proceeds. Projects include, but are not limited to,
right-of-way acquisition, design and construction of various transportation improvements.
37
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
J/r6( aJ1 ~
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF PRESENTATION - CONTINUED
Community Redevelopment Fund - the Community Redevelopment Fund is used to account for the
receipt and expenditure of tax increment revenues relating to the Bayshore/Gateway Triangle and
Immokalee Community Redevelopment Authorities.
The following is reported as a major enterprise fund:
County Water and Sewer Fund - the County Water and Sewer fund is used to account for the
provision of water, wastewater and effluent services to certain portions of the County's
unincorporated area.
Collier County also maintains the following nonmajor fund types:
Special Revenue Funds - Special revenue funds are used to account for the accumulation of
resources set aside for a specific purpose.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources
for the payment of principal, interest and other expenditures on long-term obligations, other than
bonds and notes payable from the operations of business-type activities.
Capital Proiect Funds - Capital project funds are used to account for the acquisition and
construction of major capital facilities other than those financed by proprietary funds.
Enterprise Funds - Enterprise funds are used to account for activities for which a fee is charged
to external users for goods or services.
Internal Service Funds - Internal service funds are used to account for the provision of goods and
services by one department to another department within the County or to other governmental
units on a cost reimbursement basis.
Agencv Funds - Agency funds are custodial in nature and do not report the results of operations
(assets equal liabilities). Agency funds are clearing accounts for assets held by the government
as an agent for individuals, private organizations or other governments. The Board of County
Commissioners, Sheriff, Clerk of the Circuit Court and Tax Collector all maintain agency funds.
38
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
J/ta/2m?
00
13A
~,-'"
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF ACCOUNTING AND MEASUREMENT FOCUS
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made regardless of the measurement focus applied.
The government wide financial statements, as well as the fund financial statements for the
proprietary funds, are reported using the economic resources measurement focus and the accrual
basis of accounting. Revenues are recognized in the period in which they are earned and expenses
are recognized in the period incurred. Grant revenues are recognized when eligibility requirements
are met. The intent in proprietary operations is that the costs of providing goods or services to the
general public be financed primarily through user charges, or where periodic determination of
revenues earned, expenses incurred, and/or net income is deemed appropriate.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
All governmental fund financial statements are reported using a current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recognized in the period in which they become both measurable and
available to finance expenditures of the current period. Available means collectible within the
current period or soon enough thereafter, generally 60 days, to be used to pay liabilities of the
current period. Primary revenues including non-grant intergovernmental revenues, charges for
services and interest are treated as susceptible to accrual under the modified accrual basis. In
applying the susceptibility-to-accrual concept to grant revenues, the legal and contractual
requirements of the numerous individual programs are used as guidance. In addition, grant
revenues are considered available if they are expected to be collected within one year of the end of
the current fiscal period.
Property taxes are discussed later in this footnote. Other revenue sources are not considered
measurable and available and are not treated as susceptible to accrual. Expenditures are recorded
when the related fund liability is incurred. Exceptions to this general rule include accrued
compensated absences and principal and interest on long-term debt.
39
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
o/ro/ '[bra cJ-,
13A
\< \.
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:
I) 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 intradepartmental budget changes less than $50,000 that do
not alter the total expenditures of the department. All other budgetary changes must be
approved by the Board of County Commissioners as a matter of policy. The initial adopted
budget was amended in accordance with the Florida Statutes.
7) Florida Statute Section 129.07, as amended in 1978, provides that expenditures in excess of
total fund budgets are unlawful. However, because the Board approves all budgetary changes
between departments, except those approved by the County Manager, the departmental budget
becomes the level of control.
40
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3(/()funt
131
~
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BUDGETS AND BUDGETARY DATA - CONTINUED
Formal budgetary integration is employed as a management control device during the fiscal year for
all funds. Budgets have been legally adopted by the Board for all Board funds except for agency
funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax
Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts is
a fee officer, and as such, prepares his budget in accordance with Section 218.35, Florida Statutes.
The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are
submitted to and approved by the Board. The Clerk of Court's budget for court related functions is
prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court
Operations Corporation for approval by the Florida Department of Revenue.
Budgets are adopted for all governmental funds except as described in the previous paragraph.
These budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP) except for certain non-budgeted revenues and expenses and mark to market activity on
investments. All unencumbered appropriations lapse at the end of the current year. Capital
project costs are budgeted in the year they are anticipated to be obligated. In subsequent years,
the unused budget is reappropriated until the project is completed. Proprietary funds are
budgeted on a basis consistent with generally accepted accounting principles, except that capital
related and debt transactions are based upon cash receipts and disbursements. Estimated
beginning fund balances are considered in the budgetary process.
For purposes of the budgetary presentation, certain transactions that have been accounted for in
the governmental funds statements of revenues, expenditures and changes in fund balances have
not been reflected in the budgetary financial statements. Specifically, bad debt expense and the
net change in fair value of investments are not presented in the budget to actual statements.
CASH, CASH EOUIV ALENTS AND INVESTMENTS
The County maintains a cash and investment pool for all funds. The Clerk of the Circuit Court
administers the investment pool pursuant to Section 28.33 Florida Statutes. Interest is primarily
allocated to the general fund of the Clerk of the Circuit Court, which is included in the
comprehensive general fund in the accompanying financial statements. Some funds are specifically
required to receive interest, and that interest is allocated to those funds based on the individual
fund's average daily balance in the pool. See litigation Note 15. Pursuant to the provisions of
GASB Statement 31, Accounting and Financial Reportingfor Certain Investments andfor External
Investment Pools, all investments are stated at fair value. Cash equivalents are short-term
investments with maturities of three months or less from the date purchased.
41
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3/(D~~ cJ-->
13iA
,
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
ACCOUNTS RECEIVABLE - UNBILLED REVENUE
Unbilled charges for services are accrued in the County Water and Sewer and Goodland Water
funds by prorating subsequent bills.
INVENTORIES AND 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 offset by a reserve, which indicates that they
do not constitute available resources. Inventories and prepaid costs in the government wide and
proprietary fund financial statements are reported as an expense when consumed.
CAPITAL ASSETS
Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded
at their fair value on the date donated. Facilities constructed using system development impact
fees, collected from developers and customers, are stated at cost.
The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess
of one year. Expenditures for maintenance and repairs are charged to operating expenses. The cost
of assets retired or sold, together with the related accumulated depreciation, is removed from the
accounts and any gain or loss on disposition is credited or charged to earnings.
Depreciation is calculated using the straight-line method.
classes of depreciable capital assets is as follows:
The estimated useful life of the various
Fixed Asset
Estimated Useful
Life
20-45 years
3-30 years
4-45 years
3-10 years
Buildings
Infrastructure
Improvements other than buildings
Machinery and equipment
For constructed assets including buildings, infrastructure and improvements other than buildings a
half year convention is used in placing these assets into service. Costs incurred in the
renourishment of beaches are included in the infrastructure class of capital assets and are capitalized
and depreciated over three years. Infrastructure acquired prior to fiscal years ended after June 30,
1980 is not reported.
42
: \
Jfib/~~
CJ6
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13 A
'"
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
CAPITAL LEASE OBLIGATIONS
In the government wide financial statements and proprietary fund financial statements capital lease
obligations and the related cost of assets acquired are reflected in the Statement of Net Assets. For
capital lease obligations originating in governmental funds, an expenditure for the asset and the
offsetting amount of the financing source is reflected in the fund financial statements.
BOND PREMTIJMS, DISCOUNTS AND ISSUANCE COSTS
Bond premiwns, discounts and issuance costs for the governmental activities and the business-type
activities are deferred and amortized over the term of the bonds using the straight-line method.
Bond discounts are presented as a reduction of the face amount of bonds payable, premiwns as an
increase, while issuance costs are recorded as deferred charges, which are shown on the face of the
Statement of Net Assets as a component of noncurrent assets. In the governmental fund financials,
bond premiwns, discounts and issuance costs are recognized in the current period.
DEFEASANCE OF DEBT
For refundings resulting in the defeasance of debt, generally accepted accounting principles require
that the difference between the reacquisition price and the net carrying amount of the old debt be
deferred and amortized over the shorter of the life of the new debt or the remaining life of the old
debt as a component of interest expense. The straight-line method is used for amortization of the
deferred charge.
INTEREST COST
In the proprietary funds interest costs are capitalized in accordance with the provisions of Financial
Accounting Standards Board (F ASB) Statement No. 34, Capitalization of Interest Cost, and F ASB
Statement No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax-Exempt
Borrowings and Certain Gifts and Grants, when applicable.
PROPERTY TAXES
Property taxes become due and payable on November 1st of each year and become delinquent on
April 1st of the following year. Property taxes receivable and a corresponding allowance for
uncollectible property taxes are not included in the financial statements, as delinquent taxes as of
September 30, 2008 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 - I %. Tax certificates for the full amount of any unpaid taxes must be sold
not later than June 1st of each year. No accrual for the property tax levy becoming due in
November 2008 is included in the accompanying financial statements, since such taxes are
collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for
the fiscal year ended September 30, 2008 are as follows:
43
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
3((IJ ('LtJ1 (JL
13 A
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
PROPERTY TAXES - CONTINUED
Property Tax Cycle
Assessment roll compiled
Assessment roll certified
Millage resolution approved
Beginning of fiscal year for tax levy
Taxes due and payable (levy date)
Due date
Delinquent (lien date)
Tax certificates sold
Date
January 1, 2007
July I, 2007
Within 35 days ofthe certification of the assessment roll
October 1, 2007
November 1,2007
March 3 I, 2008
April I, 2008
Prior to June 1,2008
APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS
In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has
elected not to apply those F ASB Statements and Interpretations issued after November 30, 1989.
ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results may differ from those estimated.
IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
Effective October 1, 2007 the County adopted the provisions of GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions (GASB Statement No. 45). The effect of this adoption was to establish uniform
reporting standards for other postemployment benefit (OPEB) plans, and to change the
measurement, recognition and display of OPEB expense and related liabilities (assets), note
disclosures and required supplementary information (RSI) in annual financial reports of
governmental entities. See Note 13 for a description of the County's OPEB plan.
44
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
1~t9, t
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
UNEARNED REVENUE AND DEFERRED REVENUE
In instances where assets have been received by the County for services to be rendered in future
periods, asset balances are offset by an unearned revenue liability account in the financial
statements. Examples of unearned revenues of the County as of September 30, 2008 are unspent
State Housing Initiative Partnership (SHIP) monies and cash receipts associated with unspent
advance grant agreements.
Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not
meet the availability criterion under the modified accrual basis of accounting. Primary examples of
the County's deferred revenues are amounts associated with SHIP loans made to qualifying
organizations and deferred impact fee agreements made with developers and individuals.
ACCRUED COMPENSATED ABSENCES
The County follows the provisions of GASB Statement No. 16, Accounting for Compensated
Absences. This statement provides for the measurement of accrued vacation leave and other
compensated absences using the 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 Cornmissioners' policy to allow employees of record on August 2, 1996 a
sick leave payment upon termination for any service period earned prior to August 2, 1996 and
100% of allowable vacation hours at the current rate of pay. The Sheriffs policy allows for a
percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours, and
up to 400 hours of unused vacation time. Both the Clerk of the Circuit Court's and Tax Collector's
policy's allow for a percentage of unused sick leave payout based upon years of service, and up to
240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of
unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 240
hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of
unused sick leave payout based upon years of service, and up to 440 hours of unused vacation.
Payments for compensated absences are made by the respective fund. Accrued compensated
absences are recorded as liabilities in the government-wide financial statements and the proprietary
fund financials. A liability is reported in governmental funds only if they have matured, for
example, as a result of employee resignations or retirements, and are considered due and payable as
of year end.
45
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3{(tJ(trdt (jJ
13 A
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS
As of September 30, 2008, the County had the following cash, cash equivalents and investments:
Investment Maturities Fair Value Call Date Call Frequency Rating
Cash on hand N/A $ 80,285 N/A N/A N/A
Demand deposits N/A 178,428,415 N/A N/A N/A
State Board of Administration Pool N/A 724,487 N/A N/A N/A
Federal Home Loan Mortgage Corp. 11/17/2008 24,937,500 none N/A AAA
Federal Home Loan Mortgage Corp. 11/24/2008 24,927,500 none N/A AAA
Federal National Mortgage Assoc. 2/23/2009 24,702,500 none N/A AAA
Federal Home Loan Bank 3/23/2009 24,984,500 none N/A AAA
Federal Home Loan Bank 3/24/2009 24,968,750 none N/A AAA
Federal Home Loan Mortgage Corp. 4/2/2009 24,865,500 7/2/2008 continuous AAA
Federal Home Loan Bank 4/7/2009 49,828,000 7/7/2008 continuous AAA
Federal Home Loan Bank 5/6/2009 49,875,000 11/6/2008 one time AAA
Federal Home Loan Mortgage Corp. 4/30/2010 25,015,000 8/1/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/2/20 I 0 35,003,150 9/2/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/4/2010 50,063,000 9/4/2008 continuous AAA
Federal National Mortgage Assoc. 6/17/2010 50,078,000 9/17/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/30/2010 15,046,500 9/30/2008 continuous AAA
Federal National Mortgage Assoc. 6/30/2010 25,078,250 12/30/2008 one time AAA
Federal National Mortgage Assoc. 6/3/2011 25,039,000 12/3/2008 one time AAA
Federal National Mortgage Assoc. 6/24/20 II 25,117,250 6/24/2009 one time AAA
Federal Home Loan Mortgage Corp. 2/2/2012 25,185,250 2/2/2009 one time AAA
Federal National Mortgage Assoc. 8/22/2012 25,086,000 8/22/2008 Quarterly AAA
Federal National Mortgage Assoc. 1/3/2013 50,250,000 7/3/2008 continuous AAA
Total $ 779,283,837
The County maintains a cash and investment pool that is available for use by all funds. Each fund's
portion of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents
and Investments. Investment income is allocated montWy to participating funds, as mentioned
above, based on the percentage of each fund's average daily balance in the total pool.
CREDIT RISK
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The County's investment practices are governed by Florida Statutes, Chapter 218 and
the County's Investment Policy. The County's Investment Policy limits credit risk by restricting
authorized investments to the following: The Florida Local Government Surplus Trust Fund (SBA);
Direct obligations of, or obligations backed by the full faith and credit of the United States
Government; U.S. government sponsored Corporation/Instrumentalities (except for Student Loan
Marketing Association); Certificate of Deposits collateralized by U.S Government Securities or
46
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
gkl'Wr
13A
.ct
. ,(
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
CREDIT RISK - CONTINUED
Agencies; fixed income mutual funds collateralized by U.S. Government Securities or Agencies;
domestic bankers' acceptances rated "AA" or higher; prime commercial paper rated "A-I" and "p-
I"; 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. Govemment securities and 104 percent on Agencies and
Instrumentalities with a term over five (5) years, and must be marked to market at least weekly.
The SBA is an investment pool administered by the State Board of Administration, under the
regulatory oversight of the State of Florida. The SBA operates two pools, Fund A (LGIP) and Fund
B, with Fund B carrying a AAArn rating from Standard & Poor's. At September 30, 2008, the
Sheriff had $724,487 invested in the State Board of Administration's Local Government Surplus
Funds Trust Fund Investment Pool. Of this amount, $692,653 is invested in the LGIP and
$31,834 in the Fund B Surplus Funds Trust Fund. The LGIP investment is fully liquid and
carries a weighted average days to maturity of 8.5 days. Fund B is accounted for as a fluctuating
net asset value pool and the fair value factor for September 30,2008 was .798385. The Fund B
amount has a weighted average life of 9.36 years. Fund B cash holdings continue to be
distributed to participants as they become available from maturities, sales and received income.
CUSTODIAL CREDIT RISK
All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280,
"Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are
required to pledge eligible collateral having a market value equal to or greater than the average
daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging
level. The pledging level may range from 50% to 125% depending upon the depository's financial
condition. Any losses to public deposits are covered by applicable deposit insurance, sale of
securities pledged as collateral, and if necessary, assessments against other qualified public
depositories of the same type as the depository in default.
The policy requires execution of a third-party custodial safekeeping agreement for purchased
securities and collateral, and requires that securities be held in the County's name. At
September 30, 2008 the County had demand deposits of$178,428,415. These demand deposits
do not include discretely presented component unit deposits of $501,700. These deposits were
fully covered by federal depository insurance or by collateral, in the County's name as required
by Sections 280.07 and 280.08 of the Florida Statutes.
47
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
8('()[~1 rJl-;
13 A
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
INTEREST RATE RISK
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. One of the primary objectives of the investment policy is to match investment
cash flow and maturity with known cash needs and anticipated cash flow requirements. The
County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow
demands. Investments shall have an average maturity of not more than five years, except for the
Florida Local Government Surplus Trust Fund (SBA), which has no stated final maturity, and
mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably
definable as to amount and disbursement date and are used to invest funds associated with reserves
or liabilities that are not associated with a specifically identified cash flow schedule.
CONCENTRA nON OF CREDIT RISK
The County's investment policy establishes limitations on portfolio composition in order to
control credit risk. The policy allows 100 percent of the portfolio to be invested in U.S.
Government Securities, Agencies and Instrumentalities (excluding mortgage securities), 50
percent to be invested in SBA, 30 percent to be invested in Certificates of Deposit, 20 percent to
be invested in qualifying repurchase agreements and 10 percent each in the categories of fixed
income mutual funds, domestic bankers' acceptances, prime commercial paper and tax-exempt
obligations.
The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed
as follows, at September 30, 2008:
Issuer
Percent of
Portfolio
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgage Association
Total U.S. Government Instrumentalities
29.0%
19.0%
29.0%
77.0%
48
..
. .
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
~o/ 2bO? Cf-
13 All
NOTE 2 - CASH. CASH EOUlV ALENTS AND INVESTMENTS - CONTINUED
CONCENTRA nON OF CREDIT RISK - CONTINUED
Reconciliation of cash, cash equivalents and investments to the basic financial statements:
Primary government:
Cash, cash equivalents and investments
Restricted cash, cash equivalents and investments - current
Restricted cash, cash equivalents and investments - noncurrent
$ 371,054,714
47,688,123
327,862,194
Agency funds:
Cash, cash equivalents and investments
32,678,806
Total
$ 779,283,837
NOTE 3 - TRADE RECEIVABLES
Trade receivables for governmental and business-type activities are net of an allowance for doubtful
accounts as follows:
Trade Allowance for Net Trade
Receivables Doubtful Accounts Receivables
General Fund $ 599,40 I $ 46,205 $ 553,196
Road Impact Districts 16,143 16,143
Road Construction 417,190 417,190
Community Redevelopment 3,215 3,215
Nonmajor governmental funds 1,409,037 64,404 1,344,633
Total receivables reported in governmental funds 2,444,986 110,609 2,334,377
Total receivables reported in internal service funds 654,823 10,867 643,956
Developer contributions receivable 15,581,910 15,581,910
Total Governmental Activities trade receivables $ 18,681,719 121,476 18,560,243
County Water and Sewer 5,389,743 282,999 5,106,744
Nonmajor enterprise funds 23,451,604 17,305,265 6,146,339
Total Business-type Activities trade receivables $ 28,841,347 $ 17,588,264 $ 11,253,083
49
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
~~(~
13 A
(j./
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NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES
ADVANCES
Advances to and advances from other funds at September 30, 2008 were as follows:
Advance
To
Advance
From
Govermnental Activities:
General Fund
Advances were made from the General Fund to the Tourist
Development Fund and the EMS, Library and Law Enforcement
impact fee funds for capital improvements. Reimbursement will take
place over the next several years. $
Total General Fund
Other governmental funds:
Other Capital Projects Funds
Advances were made from the County-Wide Capital Improvements
Fund to EMS, Law Enforcement and General Governmental Facilities
impact fee funds for purposes of capital improvement.
Reimbursement will take place over the next several years.
Tourist Development Fund
Emergency Medical Services Impact Fees Fund
County-Wide Library Impact Fees Fund
Law Enforcement Impact Fees Fund
Govermnent Facilities Impact Fees Fund
Total other govermnental funds
Total
5,127,194
5,127,194
$
10,935,100
113,094
I, I 59,300
4,52 I ,800
6,063,500
4,204,600
10,935,100 16,062,294
$ 16,062,294 $16,062,294
DUE FROM AND DUE TO
Interfund receivables and payables generally result from recording the excess fees associated with
Tax Collector 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. The State Court of Administration fund also allocates unused funds back
to the General Fund at year end, 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, 2008
Jfiof1tfff
131
a-
I
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES - CONTINUED
Due from and due to other funds at September 30, 2008 were as follows:
Due From Due To
Governmental Activities:
General Fund $ I ,833,921 $ 1,367,995
Road Impact Districts 265
Road Construction 8,425 1,284
Other Governmental Funds:
Road Districts 1,450 14
Unincorporated Area MSTD 459,904 67,095
Community Development 160 14,354
Water Management and Pollution Control 54,524
Grants and Shared Revenues 2,851 1,035,183
Improvement Districts 53,692
Fire Control Districts 41,880
Lighting Districts 6,523
911 Enhancement Fee 126,894
Tourist Development 147,144 270
State Housing Initiative Partnership 65
State Court Administration 28,194 551,569
Conservation Collier 153,110
Court Information Technology 4,670
Other Special Revenue Funds 157 87,858
Capital Improvement Revenue Bonds 26,428
Pooled Commercial Paper Program Loan 4,709
Caribbean Gardens Loan 131,838
Stormwater Improvement Assessment Bonds 1,157
Limited General Obligation Bonds Conservation
Collier Series 2005A 51,695
Forest Lakes Limited General Obligation Bonds 6,938
Parks Improvements 47,002
County- Wide Library Impact Fees 68
Emergency Medical Services Impact Fees 24
Water Management 2,850 324
Other Capital Projects 1.014
Total other governmental funds 1 ,223.220 1,888,388
Bnsiness-type Activities:
County Water and Sewer 11,903 8,914
Other Business-type funds:
Solid Waste Disposal 48,996
Emergency Medical Services 197 73
Airport Authority 1,724
Collier Area Transit 20,293
Total other business-type funds 71,210 73
Internal Service Funds 118,495 255
Total All Funds $ 3,267,174 $ 3,267,174
51
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
, 3({(){1ffi)q
. 13 A
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\.'
, 1
NOTE 5 - CAPITAL ASSETS
A summary of capital asset activity for the year ended September 30, 2008 is as follows:
October 1,2007, Deductions! September 30.
as restated Additions Reclassifications 2008
Governmental Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 286,744,887 $ 30.648,120 $ (6.049.532) $ 311.343,475
Construction in progress 309.1 89,367 238,891,987 (125.595,705) 422,485,649
Total capital assets not depreciated 595,934,254 269.540.107 (131,645,237) 733,829,124
Capital assets depreciated:
Buildings 255.919.570 13,792,937 21.368,374 291,080.881
Infrastructure 498.114,433 1,851,213 43,135,197 543,100.843
Improvements other than buildings 158,169,493 1,859,682 40.922.724 200,951,899
Machinery and equipment 149,929,207 14,498,538 (13.574.393) 150,853,352
Total capital assets depreciated 1,062,132,703 32,002,370 91.851,902 1,185.986,975
Less accumulated depreciation:
Buildings 62,369.240 8,781,043 (381,744) 70.768,539
Infrastructure 144,025.271 27.084,482 171,109.753
Improvements other than buildings 40.994.193 7,178,598 48,172,791
Machinery and equipment 97,877,688 17,673,556 (13,051,350) 102,499,894
Total accumulated depreciation 345,266,392 60,717,679 (13,433,094) 392,550,977
Total depreciable capital assets, net 716,866,311 (28,715,309) 105,284.996 793,435,998
Total governmental activities
capital assets, net $ 1,312,800,565 $ 240,824,798 $ (26,360,241) $ 1,527,265,122
Business-type Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 17.969.146 $ 6,086,308 $ 2,738 $ 24,058,192
Construction in progress 212.660,373 55,343.920 (130,233,130) 137,771.163
Total capital assets not depreciated 230.629.519 61.430,228 (130.230,392) 161,829,355
Capital assets depreciated:
Buildings 123,579,978 4,240,657 2,175,722 129,996.357
Improvements other than buildings 715,871.338 10.209,844 127,022,055 853,103,237
Machinery and equipment 26.263,531 4.365,312 (1,795,848) 28,832,995
Total capital assets depreciated 865.714,847 18,815,813 127,401.929 1,011.932,589
Less accumulated depreciation:
Buildings 52,964,052 3.1 84,368 (25,230) 56,123,190
Improvements other than buildings 163.028,998 23.128,958 (230,098) 185,927,858
Machinery and equipment 14,666,509 3,370,247 (1.833,654) 16,203,102
Total accumulated depreciation 230,659,559 29,683,573 (2,088,982) 258.254,150
Total depreciable capital assets, net 635,055,288 (10,867.760) 129.490,911 753.678.439
Total business-type activities
capital assets, net $ 865.684,807 $ 50,562,468 $ (739.481) $ 915,507,794
52
Jpo(!fJ'J7
131
Ct-
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 5 - CAPITAL ASSETS - CONTINUED
Schedule of depreciation for fiscal year 2008:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Subtotal
Internal Service Funds
Total Governmental Activities
Water and Sewer
Solid Waste
EMS
Airport Authority
Mass Transit
Total Business-type Activities
NOTE 6 - LONG-TERM OBLIGATIONS
,.......
(I
$
6.623,752
12,807,778
13.390.084
19,058.326
27,442
729,309
7,713,723
60,350,414
367,265
60,717,679
26,609,025
503,961
711,073
831,926
1,027,588
29,683,573
$
$
$
SUMMARY OF CHANGES IN LONG-TERM OBLIGA TraNS
The following is a summary of changes in long-term obligations for the year ended September 30, 2008:
OOO's Omitted
Premium or
October 1. Discount/Loss September 30, Due within
2007 Additions Reductions Amortized. net 2008 one year
Governmental Activities:
Bonds and Loans Payable $ 509,906 $ 75.637 $ (42,936) $ (1.003) $ 541,604 $ 22,332
Arbitrage Rebate 214 464 678
Capital Lease Obligations 897 (144) 753 154
Self-Insurance Claims 11,571 544 (],829) 10,286 5,552
Net Pension Obligation 1,534 (628) 906
Compensated Absences 19,363 8,460 (6,648) 2],]75 10.041
Totai $ 541,951 $ 86,639 $ (52,185) $ (1,003) $ 575,402 $ 38,079
Business-type Activities:
Bonds and Loans Payabie $ 270,080 $ 2,401 $ (l0.! 10) $ 169 $ 262.540 $ 11,088
Notes Payabie ]38 2 (67) 73 73
Arbitrage Rebate ],223 283 1.506
Capital Lease Obligations 68 592 (42) 6]8 126
Landfill Ciosure Liability 2,965 (],]50) 1,8]5
Compensated Absences 2,107 1,7] 5 (1,639) 2.183 1.746
Total $ 276,581 $ 4,993 $ ( 13,008) $ ]69 $ 268,735 $ 13.033
53
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE
JI{~[t9#t
13 A
cP-
Bonds, loans and notes payable at September 30, 2008 were composed of the following:
Governmental Activities Limited General Obligation Bonds
$32,815,000 2005A Limited General Obligation Bonds, Conservation Collier
Program, due in annual installments of $3,285,000 to $4,805,000 through
January I, 2013; interest at 3.00% to 5,00%.
$6,215,0002007 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%.
Total Governmental Activities Limited General Obligation Bonds
Governmental Activities Revenue Bonds
$47,430,000 2002 Capital Improvement Revenue Bonds due in annual
installments of $1,780,000 to $2,830,000 through October 1, 2016; interest at
1.60% to 5.00%.
$49,360,0002003 Capital Improvement and Refunding Revenue Bonds due
in annual installments of$I,130,000 to $2,570,000 through October 1,2033;
interest at 2.00% to 4.75%.
$167,200,0002005 Capital Improvement and Refunding Revenue Bonds due
in annual installments of $2,035,000 to $7,240,000 through October 1,2035;
interest at 2.25% to 5.00%.
$102,125,0002003 Gas Tax Revenue Bonds, due in annual installments of
$1,495,000 to $6,865,000 through June 1,2023; interest at 2.00% to 5.25%.
$96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of
$445,000 to $13,985,000 through June 1,2025; interest at 3.00% to 5.00%.
$1,870,000 1997 Naples Park Area Stormwater Improvement Assessment
Bonds due in annual installments of$75,000 to $185,000 through September
1,2012; interest at 6.45% fixed rate.
Total Governmental Activities Revenue Bonds
54
$21,915,000
5,915,000
27,830,000
32,520,000
39,625,000
154,795,000
71,960,000
94,565,000
680,000
394,145,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
Governmental Activities Loans Pavable
$111,346,000 Commercial Paper issued by the Florida Local Government
Finance Commission Pooled Commercial Paper Program, due in installments
of $11,235,000 to $74,325,000 through December 4, 2012; monthly variable
rate for the current fiscal year of 3.60% to 1.52%, collateralized by non ad
valorem revenue.
$12,000,000 Florida Department of Transportation State Infrastructure Bank
Loan, due in annual installments of $1,839,148 to $4,414,096 through
October 1,2012; interest at 2.0%.
$7,000,000 Bayshore Gateway Community Redevelopment Agency Taxable
Non-Revolving Line of Credit, due July 1, 2011; quarterly variable interest
for the current fiscal year end of 5.49%,
Total Governmental Activities Loans Payable
Total Governmental Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Governmental Activities Obligations, Net
Less Current Portion of Governmental Activities Obligations
Long-Term Portion of Governmental Activities Obligations, Net
Business-type Activities Revenue Bonds
$13,720,000 2003A Taxable County Water and Sewer Refunding Revenue
Bonds due in annual installments of $740,000 to $2,715,000 through July I,
2009; interest at 2.00% to 3.375%.
$33,630,000 2003B County Water and Sewer Refunding Revenue Bonds due
in annual installments of $1,410,000 to $4,125,000 through July 1, 2021;
interest at 4.25% to 5.50%.
$6,605,000 1999A Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $35,000 to $1,035,000 through July 1,
2010; interest at 3.00% to 4.25%.
55
2fo/2<<J? a-
131
,.",
l,.;j:l
$85,560,000
12,000,000
5,901,000
103,461,000
$525,436,000
$(562,735)
17,107,361
(376,879)
541,603,747
(22,332,377)
$519,271,370
$740,000
33,630,000
1,540,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$22,855,000 1999B Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $950,000 to $1,875,000 through July I,
2016; interest at 4.00% to 5.125%.
$110,165,0002006 Collier County Water and Sewer Revenue Bonds due in
annual installments of $2,310,000 to $8,695,000, commencing July I, 2017
through July 1,2036; interest at 4.00% to 5.00%.
Total Business-type Activities Revenue Bonds
Business-type Activities Loans and Notes Pavable
$166,580 County Water and Sewer District agreement with private developer
payable through use of water and sewer system development fee credits.
Non interest bearing agreement.
$14,547,667 County Water and Sewer District State Revolving Fund Loan,
interest payable at 4.25% payable in 20 semiannual payments commencing
October 1, 1992.
$13,292,898 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.65% payable in 40 semiannual payments commencing
January 15, 1999.
$22,238,677 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
November 15, 2001.
$5,160,675 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
October 15, 2004.
$6,560,956 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
January 15,2005.
$29,224,004 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.95% payable in 40 semiannual payments commencing
June 15,2006.
$10,525,509 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.90% payable in 40 semiannual payments commencing
September 15,2006.
56
~
3~()(7Jl>9 ~
13 A ~
$12,810,000
110,165,000
158,885,000
72,707
3,829,418
7,722,455
15,594,001
4,362,272
5,542,177
26,430,765
9,120,428
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRlPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$6,895,629 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.96% payable in 40 semiannual payments commencing
July 15,2009.
$5,445,223 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.92% payable in 40 semiannual payments commencing
December 15, 2005.
$5,188,500 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2,74% payable in 40 semiannual payments commencing
November 15, 2007.
$7,123,496 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.75% payable in 40 semiannual payments commencing
April 15, 2008.
$11,476,700 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
August 15, 2008.
$11,478,810 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
October 15,2009.
$3,294,890 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.79% payable in 40 semiannual payments commencing
December 15,2009.
Total Business-type Activities Loans and Notes Payable
Total Business-type Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Business-type Activities Obligations, Net
Less Current Portion of Business-type Activities Obligations Payable from
Unrestricted Assets
Less Current Portion of Business-type Activities Obligations Payable from
Restricted Assets
Long-Term Portion of Business-type Activities Obligations, Net
57
3~/tf(
13 A
Cl-,
.
$1,137,883
4,838,273
3,599,671
4,875,876
8,264,582
8,448,629
64,059
103,903,196
262,788,196
(778,903)
5,030,629
(4,427,386)
262,612,536
(11,087,179)
(72,707)
$251,452,650
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
~{prfl?
13 A
f~
NOTE 6 - LONG-TERM DEBT - CONTINUED
SUMMARY QF DEBT SERVICE REQUIREMENTS TQ MATURITY
The total annual debt service requirements to maturity of long-term debt, excluding compensated
absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows:
Governmental Activities
Fiscal Limited General Loans and
Year Obligation Bonds Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest Principal Interest
2009 $ 4.355.000 $1,185,881 $ 16.020,000 $ 18,201,347 $ 1,957,377 $ 3.556,668 $ 45,276.273
2010 4,490,000 1,009,213 16,550,000 17,637,168 1,839.148 3,674,897 45.200,426
2011 4.705,000 783.650 17,120,000 17,004,707 7,776,930 3.571,729 50.962,016
2012 4,940,000 546,994 17,900,000 16,214,913 13.148,449 2,998.001 55.748,357
2013 5,185.000 298,525 17,590.000 15,390,381 78,739,096 645.720 117,848.722
2014-18 2,125,000 650,675 83.925,000 65,225.725 151,926,400
2019-23 2,030.000 177 ,225 102,815.000 42,612.067 147,634,292
2024-28 64,960,000 19,036.657 83,996,657
2029-33 36,215,000 9,199.366 45,414,366
2034-38 21,050,000 1,381,536 22,431,536
Totals $ 27,830,000 $4,652,163 $ 394, 145.000 $221,903,867 $103,461,000 $14,447.015 $ 766,439,045
Business-type Activities
Fiscal Loans and
Year Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest
2009 $ 4,905,000 $ 7,357,974 $ 6,254,886 $ 2,774.282 $ 21,292,142
2010 5,125,000 7,138,343 6.106,429 2.835,302 21,205,074
2011 4,885,000 6,895,082 6,231.370 2,646,300 20,657,752
2012 5,125,000 6,658.256 6,426,429 2,451,244 20,660.929
2013 5.380,000 6,409.182 5,567,145 2,249,928 19,606,855
2014-18 23,130,000 28,180,744 30,377,830 8,707,538 90,396,112
2019-23 22.200,000 23,213,276 27,387,040 4,339,307 77.139,623
2024-28 27,975,000 17,442,700 14,978,616 926,278 61,322,594
2029-33 35,170,000 10,245,062 573,451 11,837 46,000,350
2034-38 24,990,000 2,256,373 27,246.373
Totals $ 158,885,000 $115,797,592 $ 103,903,196 $ 26,942.016 $405,527,804
LEGAL DEBT MARGIN
The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.
58
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3/lo{e f
13 A
ct
1<'
..
NOTE 6 - LONG-TERM DEBT - CONTINUED
RESTRICTIVE COVENANTS
According to the official statements and County resolutions authorizing the issuance of the Series
2002, 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as
the Series 2003 and 2005 Gas Tax Revenue Bonds, the issues are payable from and secured by
liens on the local government half-cent sales tax and gas tax revenues, respectively.
During fiscal year 2008 Collier County experienced insurer rating downgrades on its Series 2002,
2003 and 2005 Capital Improvement Revenue Refunding Bonds. The covenants related to these
issues require that in the event of an insurer downgrade below "A", by either Moody's or
Standard and Poor's, the County must fund a cash reserve to replace the surety within twelve
months. By March 31, 2009 Collier County will be required to fund the reserve in the amount of
$8,026,972. The total amount of funding required is $19,570,778 and the covenants require that
this be in place by November 30, 2009, if the ratings of the insurers are not upgraded. The
County expects to use internal borrowings to achieve the required reserve funding. All required
principal and interest payments have been made in a timely manner on these bonds and the
County's pledged coverage on these bonds is 1.55.
The covenants of the loan agreement authorizing the Florida Local Government Finance
Commission loans include appropriation in the annual budget amounts of non ad valorem
revenues or other legally available funds sufficient to satisfY the loan repayments.
Tax increment revenues are pledged for the repayment of the Bayshore Gateway Community
Redevelopment Agency's taxable, non-revolving line of credit. Tax increment collections were
$2,293,300 for the period ended September 30,2008. Tax increment revenues must cover annual
debt service requirements by IS 0%. In the opinion of management the agency was in compliance
with this covenant for the year ended September 30,2008.
Water and sewer revenue bonds are payable solely from and secured by a first lien upon and
pledge of the net revenues and certain other fees and charges derived from operation of the
County's water and sewer system. The pledge of net revenues derived by the County from the
operation of the system does not constitute a lien upon the system or any other property of the
County. The covenants of the resolutions authorizing the County Water and Sewer District
Bonds, Series 2006, 2003A, 2003B, 1999A and 1999B include an obligation for the County to
fix, establish and maintain such rates and collect such fees, rentals or other charges for the
services and facilities of the water and sewer system, and to revise the same whenever necessary,
so as to provide in each year net revenues, as defined in the resolutions authorizing the revenue
bonds, which together with system development fees and special assessment proceeds received
shall be adequate to pay at least 125% of the annual debt service requirements for the Water and
Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at
least 100% of the annual debt service for the bonds. In addition, bond covenants require a
renewal and replacement amount equal to $300,000 to be set aside in the County Water and
Sewer District Funds. In the opinion of management, the water and sewer funds were in
compliance with these covenants for the year ended September 30, 2008.
59
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
:3{c~ { 01
13 A
~
.....,
',:.,,;<,t'
NOTE 6 - LONG-TERM DEBT - CONTINUED
The Collier County Water and Sewer District has several State Revolving Fund loans outstanding
with the Florida Department of Environmental Protection. These loans are collateralized by a
lien on pledged revenues consisting of net revenues from the operations of the County Water and
Sewer System and system development fees. The lien shall be subordinate in all respects to liens
placed upon pledged revenues established by bonded indebtedness. The County Water and
Sewer District shall maintain rates and charges for services which together with system
development fees sufficient to pay 115% of the annual debt service requirements on the loans, as
well as satisfY the coverage requirements of all senior debt obligations. In the opinion of
management, the State Revolving funds were in compliance with these covenants for the year
ended September 30, 2008.
INTEREST CAPITALIZED
Interest costs on long-term debt, including capitalized leases, incurred and capitalized during the
year ended September 30, 2008 were as follows:
Total Interest
Cost Incurred
Business-type Activities $10,604,4 79
Interest Cost
Caoitalized
$1,710,416
Net Interest
Exoense
$8,894,063
LEASE OBLIGATIONS
Capitalized leases payable at September 30, 2008 amounted to $1,370,425. These obligations,
which are collateralized by equipment and vehicles, have annual installments ranging from
$35,230 to $345,780 including interest ranging from 4.26% to 7.45% and mature through 2015.
Future minimum capital lease obligations as of September 30, 2008 were as follows:
Goverrunental Business-type
Activities Activities Total
2009 $ 194,439 $ 151,341 $ 345,780
2010 190,660 151,341 342,001
2011 190,660 151,341 342,001
2012 77,920 131,773 209,693
2013 77 ,920 98,830 176,750
2014 - 15 113,150 113,150
Total minimum lease payments 844,749 684,626 1,529,375
Less amount representing interest (92,209) (66,741) (158,950)
Present value of minimum
.
lease payments $ 752,540 $ 617,885 $ 1,370,425
60
'~<
~" .
~>.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3/10/ fJ?
13 A
~
. 04
~!.
~
NOTE 7 - CONDUIT DEBT OBLIGATIONS
COMPONENT UNIT CONDUIT DEBT
The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority
and Educational Facilities Authority, all component units of Collier County, issue debt
instruments for the purpose of providing capital financing to independent third parties. Industrial
development revenue bonds have been issued to provide financial assistance to public entities for
the acquisition and construction of industrial and commercial facilities. Housing revenue bonds
have been issued for the purpose of financing the development of multi-family residential rental
communities. The health facility revenue bonds were issued to provide financing for the
construction of health park facilities. The educational facility revenue bonds were used to provide
financing for the construction of educational facilities. These bonds were secured by the financed
property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the
debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor
the County is obligated in any manner for repayment of the bonds. Therefore, the bonds are not
reported as liabilities in the accompanying financial statements.
As of September 30, 2008 the outstanding principal amount payable on all component unit
conduit debt was $311,648,943 and is made up of the following:
Industrial development revenue bonds
Housing revenue bonds
Health facilities revenue bonds
Educational facilities revenue bonds
$ 64,307,428
73,520,000
89, I 90,000
84,631,515
$ 3 11,648,943
Total
NOTE 8 - DEFEASED DEBT
The County has defeased certain outstanding bond issues by placing the proceeds of new bonds
in irrevocable trusts to provide for all future debt service payments on the defeased debt.
Accordingly, the trust accounts and the defeased bonds are not included in the County's financial
statements. At September 30, 2008 the following issues were considered defeased:
Business-type Activities
Original Debt Defeased Bonds
Defeased Outstanding
$ 12,245,000 $ 4,595,000
4,360,000 4.265,000
$ 16,605,000 $ 8,860,000
Defeased Bonds
Original Debt Outstanding
$ 22,000,000 $ 6,770,000
Governmental Activities
1986 Capital Improvement Program Revenue Bonds, Sub-Series 5 Mode A
2003 Capital Improvement and Refunding Revenue Bonds
Total Governmental Activities Defeased Debt
1983 County Water and Sewer District Refunding Bonds
61
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
'Jp%C(
13 A
f
NOTE 9 - PENSION PLAN OBLIGATIONS
RETIREMENT PLAN
Substantially all full time and part time employees of the County are eligible to participate in the
State of Florida Retirement System (the System), a cost sharing, multiple employer program
administered by the State of Florida, Division of Retirement. The System provides two retirement
plans from which eligible employees can choose: the Pension Plan (defined benefit) and the
Investment Plan (defined contribution). The County follows the provisions of GASB 27,
Accounting for Pensions by State and Local Governmental Employers, as described in the
following disclosure.
PLAN DESCRIPTION
Employees who are regular risk members and retire at or after age 62 with 6 years of credited
service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable
monthly for life, equal to 1.6 percent of their average final compensation for each year of credited
service. Final average compensation is the employee's average of the five highest years of salary
earned during credited service. Vested employees may retire before age 62 and receive benefits that
are reduced 5 percent for each year prior to normal retirement age or date. The System also
provides death and disability benefits as well as annual cost-of-living adjustments to plan
participants and beneficiaries. The Florida Legislature established the System under Chapter 121,
Florida Statutes and has sole authority to amend benefit provisions.
Special Risk Class members qualifY for normal retirement with 6 years of special risk service and
age 55 or with 25 years of special risk service at any age. The monthly benefit payable is equal to
2-3 percent of their average final compensation for each year depending on the percent in effect
during the service period. Vested employees may retire before age 55 and receive benefits that are
reduced 5 percent for each year prior to normal retirement age or date.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative method
for payment of retirement benefits for a specified and limited period for members of the System,
effective July I, 1998. Under this program, the employee may retire and have their benefits
accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work
for a System employer. The act of participating in the program does not change the individual
employee's employment conditions. When the DROP period ends, a maximum of 60 months,
employment must be terminated. At the time of termination of employment, the employee will
receive payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
62
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3ftJ!~?
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NOTE 9 - PENSION PLAN OBLIGATIONS - CONTINUED
PLAN DESCRIPTION - CONTINUED
The System publishes an annual report that provides ten-year historical trend information regarding
progress made in accumulating sufficient assets to pay benefits when due. The report may be
obtained by writing the Division of Retirement, Research, Education and Policy Section, 1317
Winewood Boulevard, Tallahassee, Florida 32315-9000, or by calling (866) 738-2366, or accessing
their internet site at www.dms.mvtlorida.com.
FUNDING POLICY
The System is non-contributory for employees and the County is required to contribute at an
actuarially determined rate. The current rate is 20,92% for special risk employees, 16.53% for
county elected officials, 9.85% for regular employees, 13.12% for senior management and 10.91 %
for DROP employees of annual covered payroll. The contributions of the County are established by
the State Legislature and therefore subject to amendment. The County's contributions to the
System for the years ending September 30, 2008, 2007 and 2006 are represented in the table below.
The County's contributions were equal to the required contributions for each year.
FY-2008 FY-2007 FY -2006
General Fund $ 18,842,653 $ 18,678,498 $ 15,763,159
Road Construction 169,894 160,080 124,015
Community Redevelopment 24,511 22,013 9,231
County Water and Sewer 1,549,255 1,673,956 1,263,952
Nonmajor Governmental Funds 4,825,491 4,846,006 2,927,430
Nonmajor Enterprise Funds 2,593,107 2,719,220 1,846,197
Internal Service Funds 204,365 207,274 160,116
Totals $ 28,209,276 $ 28,307,047 $ 22,094, I 00
63
.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTEIO-TRANSFERS
Transfers for the year ended September 30, 2008 were as follows:
Transfers from Fund
Transfers to Fund
Governmental Activities:
General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Nonmajor Business Type
General Fund
Nonmajor Governmental Funds
Nonmajor Business Type
Road Construction
Nonmajor Governmental Funds
Nonmajor Governmental Funds General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Road Construction
Community Redevelopment
Business-type Activities:
County Water and Sewer
General Fund
Nonmajor Governmental Funds
General Fund
Nonmajor Governmental Funds
Road Construction
County Water and Sewer
Nonmajor Business-type
Totals
JVo[ tf1
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;
Amount
$ 24,000,000
62,391,105
6,303
22,650,217
248,000
14,714,800
2,000,000
200,000
271,979
3,957,236
621,722
31,949,703
64,300
3,650,819
925,700
470,367
84,400
1,338,340
153,600
$169,698,591
Transfers between funds move umestricted revenues collected in the General Fund to finance
operating and capital programs accounted for in other funds in accordance with budgetary
authorizations and to move receipts restricte,p to debt service from the funds collecting the
receipts to the debt service fund as payments become due.
NOTE 11 - NET ASSETSIFUND BALANCES
Net assets represent the difference between total assets and liabilities. Net assets are categorized
as follows:
Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the
acquisition of these assets and net of depreciation is reported separately in the net assets section.
64
:Ct
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
t/ID/Oq
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NOTE 11 - NET ASSETS/FUND BALANCES - CONTINUED
Restricted for growth related capital expansion: Impact fee and system development charges
restricted for growth related capital expansion.
Restricted for transportation capital projects: Gas taxes and other revenues restricted for
transportation capital improvements.
Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the
purchase of environmentally sensitive land.
Restricted for Tourist development: Tourist development tax proceeds are restricted for tourist
related activities.
Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and
have been funded by operating transfers from the appropriate funds. The use of monies in the
sinking fund is restricted to the payment of principal and interest on long-term debt.
Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of
County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund
is restricted to funding the cost of additions, replacement or major repair of water and wastewater
capital assets.
Unrestricted: Balances are not restricted for specific purposes.
The following categories are used for reporting governmental fund balances in the fund financial
statements.
Fund Balances ReservedlUnreserved
Reserved for prepaid costs: Balances represent insurance, travel and other expenses paid in
advance and which are not considered available and spendable resources.
Reserved for inventory: Balances represent items which are not considered available and
spendable resources.
Reserved for advances to other funds: Balances represent long-term advances made to other
funds which do not constitute expendable and available financial resources.
Reserved for encumbrances: Balances are segregated for expenditure upon vendor performance.
Reserved for debt service: Balances represent monies legally restricted to the payment of
principal and interest on long-term debt.
65
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
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NOTE 11 - NET ASSETS/FUND BALANCES - CONTINUED
Unreserved, reported in general fund: Balances in the general fund not reserved for specific
purposes.
Unreserved, reported in special revenue funds: Balances in the special revenue funds not reserved
for specific purposes.
Unreserved, reported in debt service funds: Balances in the debt service funds not reserved for
specific purposes.
Unreserved, reported in capital project funds: Balances in the capital project funds not reserved
for specific purposes.
NOTE 12 - RISK MANAGEMENT
The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal
service fund is maintained by the County to administer insurance activities relating to workers'
compensation, health and property and casualty, which covers general, property, auto, public
official and crime liabilities. The County self insurance program covers operations of the Board
and the constitutional officers, 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 ofloss.
Claim Type
Property and casualty claims
County's Coverage
$50,000 - $500,000
(5% Named Storm)
$200,000
$175,000
$350,000
Excess Carrier's Coverage
$50,000 - $125,000,000
Auto liability claims
Employee health claims
Workers' compensation claims
$200,000 - $2,000,000
$175,000 - $2,000,000
$350,000 - $25,000,000
The aggregate loss exposure on casualty claims is $1,160,000. Settled claims have not exceeded
the insurance provided by third party carriers in any of the past three years. All divisions of the
County, excluding the Sheriff, participate in this program. Charges to operating departments are
based upon amounts believed by management to meet the required annual payouts during the
fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended
September 30, 2008 the operating departments were charged $35,196,296 for workers'
compensation, health and property and casualty self-insurance programs.
66
"""
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3/W{O Y
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H.
NOTE 12 - RISK MANAGEMENT - CONTINUED
The claims loss reserve for workers' compensation, health and property and casualty of
$8,192,000 reported at September 30, 2008 was calculated by third party actuaries based upon
GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be
reported when it is probable that a loss has been incurred and the amount of that loss can be
reasonably estimated. The estimated liabilities for unpaid losses related to workers'
compensation and property and casualty were discounted at 3.5%. Claims loss reserves of
$3,458,207 are recorded as current liabilities.
The Sheriff participates in the Statewide Florida Sheriffs Self-Insurance Fund for its professional
liability insurance, The fund is managed by representatives of the participating Sheriff offices
and provides professional liability insurance to participating Sheriff agencies. The Florida
Sheriffs Self-Insurance Fund provides liability insurance coverage subject to the following
limitations: $3,100,000 for any claim involving a single individual, $3,200,000 for any incident
which involves multiple claims and aggregate, $3,500,000 ultimate net loss per Sheriff during
any policy period.
The Sheriff also participates in the Statewide Florida Sheriffs Self-Insurance Fund program for
workers' compensation coverage. The Florida Sheriffs Association Workers' Compensation
Insurance Trust (FSA WIT) is a limited self-insurance fund providing coverage for the first
$350,000 of every claim. Re-insurance is provided through a third party insurer for all claims
exceeding $350,000 up to $10,000,000 and an aggregate of $500,000 depending on type of
bodily injury. Settled claims have not exceeded the insurance provided by third party carriers in
any of the past three years.
Premiums charged to participating Sheriffs are based upon amounts believed by Fund
management to meet the estimated annual payouts during the fiscal year and to pay for the
estimated operating costs of the program. All liabilities associated with these self-insured risks
are reported in the basic financial statements of the Statewide Florida Sheriffs Self-Insurance
Fund. The Sheriff cannot be additionally assessed for claims paid by the program.
The Sheriff has also established a self-funded employee health plan. An internal service fund is
used to account for the activities of the plan. Excess coverage has been purchased which
provides specific claim excess coverage for anyone incident exceeding $150,000 up to
$1,000,000. Payments to the internal service fund are based on actuarial estimates of amounts
needed to pay prior year and current year claims.
The claims loss reserve for health of $2,094,000 reported at September 30, 2008 was calculated
by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires
that a liability for claims be reported when it is probable that a loss has been incurred and the
amount of that loss can be reasonably estimated. The entire Sheriffs health claim loss reserve is
recorded as a current liability.
67
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3froloq
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11
NOTE 12 - RISK MANAGEMENT - CONTINUED
CHANGES IN SELF -INSURANCE CLAIMS PAYABLE
Changes in the self-insurance claims payable for fiscal years 2007 and 2008 were as follows for
the County and Sheriff self-insurance programs:
Property and Group Workers'
Casualty Health Compensation Total
Balance at September 30, 2006 $ 3,097,000 $ 4,275,000 $ 3,886,000 $ 11,258,000
Current year claims incurred and
changes in estimates 1,870,096 38,158,691 723,054 40,751,841
Claim payments (2,030,096) (37,771,691) (637,054 ) (40,438,841)
Balance at September 30, 2007 2,937,000 4,662,000 3,972,000 11,571,000
Current year claims incurred and
changes in estimates 561,528 25,472,650 (608,384) 25,425,794
Claim payments (1,268,528) (24,928,6 SO) (513,616) (26,710,794)
Balance at September 30, 2008 $ 2,230,000 $ 5,206,000 $ 2,850,000 $ 10,286,000
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The Board and the Tax Collector administer a single-employer defined benefit
plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that
subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick
leave remaining at the time of retirement and have completed 15 years of continuous service with
the Board. In addition, the retiree must retire from the County, be at least 55 years of age or have
completed 30 years of service under the Florida Retirement System (FRS) and be eligible to
receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to
100% subsidy toward the cost of coverage under the active plan. The Tax Collector offers an
OPEB plan that subsidizes 100% the cost of health care for employees with 10 years of service,
between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement.
Additionally, in accordance with Florida Statute 112.0801, County employees who retire and
immediately begin receiving benefits from the FRS have the option of paying premiums to
continue in the County's health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, County plan participation
consisted of:
OPEB plan participants
Retirees receiving benefits
2,352
82
68
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
2/rof01
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NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Funding Policv - The County has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the County contributed $158,312 to the OPEB Plan.
Annual OPEB Cost and Net OPEB Obligation - The annual cost (expense) of the County's
OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal
cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years.
The following table shows the components of the County's annual OPEB Plan cost for the year,
the amount actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year
$
514,423
514,423
(158,312)
356,111
$
356,111
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 31 %
of the annual OPEB cost. Information for the two preceding fiscal years is not available as
GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for
benefits was $3,769,254, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $3,769,254. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $173.5 million, and the ratio of the UAAL to the
covered payroll was 2.2%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates
of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the
annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future.
69
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
8( IO! ff1
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NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
Plan Description - The Sheriff administers a single-employer defined benefit plan (OPEB Plan)
and can amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost
of health care for its retirees who have 6 years of creditable service with the Sheriff and who
receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes
approximately 20% for single coverage and 21 % for family coverage for qualifying individuals.
Additionally, in accordance with Florida Statute 112.0801, Sheriffs employees who retire and
immediately begin receiving benefits from the FRS have the option of paying premiums to
continue in the Sheriffs health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEB plan participants 1,374
Retirees receiving benefits 69
Funding Policv - The Sheriff has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the Sheriff contributed $469,998 to the OPEB Plan.
70
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3fiO/6Q
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NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Annual OPEB Cost and Net OPEB Obligation - The annual cost (expense) ofthe Sheriffs OPEB
Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is proj ected to cover the normal cost each year
and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following
table shows the components of the Sheriffs annual OPEB Plan cost for the year, the amount
actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year
$
1,019,866
1,019,866
(469,998)
549,868
$
549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 46%
of the annual OPEB cost. Information for the two preceding fiscal years is not available as
GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for
benefits was $9,354,088, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $9,354,088. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $128.2 million, and the ratio of the UAAL to the
covered payroll was 7.3%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates
of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the
annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future.
71
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
?;([+~
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NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
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 assets. The liability decreased by $1,149,949 during the fiscal year
primarily due to the reclamation and rehabilitation of approximately 16 acres at the Naples
landfill site for which Collier County had been responsible. The acreage is now active and
responsibility for the related closure and postclosure costs rest with the company operating the
landfill. 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
72
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
af{401
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NOTE 14 - LANDFILL LIABILITY - CONTINUED
current cost. The County has funded an escrow account with Fifth Third Bank in the amount of
$10,000 to comply with Rule 62-701.630, Florida Administrative Code for the inactive Eustis
Avenue Landfill site. These funds bear interest and are restricted for the exclusive use of the
Eustis Avenue Landfill site's long-term care. There were no deposits, other than interest, or
withdrawals from this account in fiscal year 2008.
NOTE 15 - SIGNIFICANT CONTINGENCIES
LITIGATION
The County is involved as defendant or plaintiff in certain litigation and claims arising in the
ordinary course of operations. In the opinion of County legal counsel, the range of potential
recoveries or liabilities will not materially affect the financial position of the County. Litigation
is pending between the Clerk of the Circuit Court and the Board of County Commissioners
regarding the role of the Clerk of the Circuit Court as County Auditor, the Clerk's status as a
budget officer versus a fee officer and the Clerk's entitlement to investment earnings on County
funds. See Note 19, Subsequent Events, for further discussion. No financial liability has been
determined at this time.
STATE AND FEDERAL GRANTS
Grant monies received and disbursed by the County are for specific purposes and are subject to
review by the grantor agencies. Such audits may result in requests for reimbursement due to
disallowed expenditures. Based upon prior experience, the County does not believe that such
disallowances, if any, would have a material effect on the financial position of the County.
ARBITRAGE REBATE
In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction
funds in excess of the interest costs incurred are required to be rebated to the federal government.
The total arbitrage rebate liability as of September 30, 2008 was $2,183,332, of which $677,752
related to governmental activities and $1,505,580 to business-type activities.
73
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
:3~1 D~
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NOTE 16 - SIGNIFICANT COMMITMENTS
CONSTRUCTION COMMITMENTS
Collier County has active construction projects as of September 30, 2008. The projects include
road construction, governmental facilities and utilities improvements. At year end the County's
commitments with contractors includes the following:
Future
Category Commitments
Governmental Activities:
Road Impact Districts Roads $ 11,702,664
Road Construction Roads 48,700,426
Other Governmental Parks 1,513,476
Roads 2,613,786
Buildings 33,187,184
Beach restoration 770,996
Storm water drainage 5,767,666
Business-type Activities:
County Water and Sewer Utilities 17,815,982
Other Enterprise Landfill expansion and closure 2,386,859
Airports 534,581
$ 124,993,620
NOTE 17 - FUND DEFICITS
The following funds had fund balance deficits at September 30, 2008:
Countv- Wide Library Impact Fees - The unreserved fund balance deficit of $(959,428) is
primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies lOIUled to the impact fee
fund for the construction of growth necessitated library facilities. It is anticipated that the deficit
will be covered by future years' impact fee revenues.
Emergency Medical Services Impact Fees - The unreserved fund balance deficit of$(340,051) is
primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies loaned to the impact fee
fund for the construction of growth necessitated emergency medical services facilities. It is
anticipated that the deficit will be covered by future years' impact fee revenues.
74
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
~Jlo{O~
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NOTE 18 - SPECIAL ITEM
On August 14, 2008 the Circuit Court issued a ruling in Case 07-1056-CA requiring that the
Clerk of the Circuit Court post a bond in the amount of $3,239,000 with the registry of the court
not later than August 29, 2008. Bond was posted by the Clerk of the Circuit Court in the form of
cash on August 26, 2008, including applicable registry fees of $48,593.
NOTE 19 - PRIOR PERIOD ADJUSTMENT
As of September 30, 2007, the County Water and Sewer District had $1,475,577 of planning
costs capitalized as construction in progress. These costs were associated with the development
of long range plans for the District. These costs cannot be specifically identified to a particular
capital asset and as such should not have been capitalized. A prior period adjustment has been
recorded to remove these costs from construction in progress.
Net Assets, September 30, 2007
Adjustment to construction in progress
Net Assets, September 30, 2007, as restated
County Water
and Sewer
$ 687,363,264
(1,475,577)
$ 685,887,687
Had the adjustment been recorded in the 2006-2007 fiscal year, the change in net assets for the
fiscal year ended September 30, 2007 for the County Water and Sewer Fund would have been
decreased from $38,787,418 to $37,311,841 and would have decreased from $43,074,858 to
$41,599,281 for the total of all Business-type funds.
NOTE 20 - SUBSEQUENT EVENTS
On November 21, 2008 Collier County issued the $13,244,204 Series 2008 Conservation Collier
Limited General Obligation Bonds. The bonds were issued for the purpose of purchasing
approximately 2,511.9 acres of environmentally sensitive land known generally as Pepper Ranch.
On September 25,2008 the Court issued oral ruling in Case 07-1056-CA dated October 1, 2008
requiring the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash bond
previously deposited into the Court registry. On October 6, 2008 the Second District Court of
Appeal reversed the Court orders and remanded back to the Twentieth Judicial Circuit for a full
evidentiary hearing related to maintaining the automatic appellate stay and the propriety of a
bond, if any, and the amount, if any, of such a bond. On December I, 2008, the Twentieth
Judicial Circuit Court conducted the full evidentiary hearing pursuant to the mandate of the
Second District Court of Appeal and on December 18, 2008 the Court Ordered and Adjudged
that the Clerk cause to be released to the County's General Fund the $3,239,000 cash bond
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December 1, 2008 are stayed during
75
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3110{ d(
13 A
t
NOTE 20 - SUBSEQUENT EVENTS - CONTINUED
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.310(b)(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January 15, 2009, the Clerk shall account, in writing, to the Board of County Commissioners the
total amount of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January 15,2009, the Clerk shall transfer from his
accounts, 2/3rds of the income received on County funds for the previous calendar month, to the
Board's General Fund. The Court found that a cash or surety bond was inappropriate.
In an opinion filed on January 30, 2009 the Second District Court of Appeal of Florida, in Case
2D08-3126, reversed and remanded the trial court's December 18,2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute Section 28.33 as "clear and unambiguous" in authorizing the Clerk
of Courts to claim as income interest earned on funds that the Clerk, as custodian of County
funds, has invested on behalf of the County. This opinion will not be final until all proceedings
are concluded.
76
REQUIRED SUPPLEMENTARY
INFORMATION
lJlp;lflq ~
13 A ~
Required Supplementary Information
Collier County, Florida
Schedule of Funding Progress
for the Retiree Health Plan
~J&(dr
13 A
Actuarial
Accrued VAAL as a
Actuarial Actuarial Liability- Percentage of
Valuation Value of Projected Unfunded Funded Covered Covered
Agency Date Assets Unit Credit AAL Ratio Payroll Payroll
Board and Constitutionals 10/1/2007 $ $ 3,769,254 $ 3,769,254 0.0% $ 173,538,752 2.2%
(Non-Sheriff)
Sheriff 10/1/2007 9,354,088 9,354,088 0.0% 128,182,543 7.3%
Total $ $ 13,123,342 $ 13,123,342 $ 301,721,295
78
~
II'
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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.
PUBLIC RECORDS MODERNIZATION - To account for the statutory surcharge on recording
documents to be paid to the Clerk of the Circuit Court for the modernization of the Clerk's official
records management system.
TOURIST DEVELOPMENT To account for the 4% tourist development tax.
STATE HOUSING INITIATIVE PARTNERSHIP - To account for state revenues received to
provide affordable residential housing for very low to moderate income persons and those who have
special housing needs.
800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND - To
account for moving traffic violation surcharges received to fund the County's intergovernmental radio
communications program.
STATE COURT ADMINISTRATION To account for County monies used to fund the operation of
the court system.
CONFISCATED PROPERTY - To account for the accumulation and expenditure of proceeds from
the sale of property confiscated by the Sheriff.
GAC LAND SALES. ROADS AND CANALS To account for principal and settlement fees received
from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration
and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area.
L
13 A
Special Revenue Funds - Continued
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.
IMP ACT FEE ESCROW - To account for impact fees relating to certain projects under construction
until permits are issued.
COURT INFORMATION TECHNOLOGY FEE - To account for the accumulation of resources to
enhance and increase access to court information.
COURT SERVICES - To account for the accumulation of revenues associated with the function of
the local court system.
UNIVERSITY EXTENSION - To account for fund accumulation to meet the educational goals of
the Collier County UF/IFAS extension.
COURT FACILITIES FEE - To account for the accumulation of resources to improve court
facilities.
AFFORDABLE HOUSING - To account for fees to be used to provide for affordable housing
related projects.
OTHER SPECIAL REVENUE FUNDS - To account for the accumulation of resources for the
following programs:
Miscellaneous Florida Statutes Fee Collections
Adoption Awareness
Teen Court
Animal Control
Public Library
Law Library
Inmate Welfare
County Drug Abuse
Law Enforcement Training
Euclid and Lake1and Assessment
Legal Aid Society
Federal Equitable Sharing
Domestic Violence
Juvenile Assessment Center
Driver Education
Crime Prevention
Freedom Memorial
Debt Service Funds
GAS TAX REVENUE BONDS - To account for the accumulation of resources and payments of
interest and principal on long-term debt incurred in the refunding of the 1986 Road Improvement
Revenue Bonds.
CAPITAL IMPROVEMENT REVENUE BONDS - To account for the accumulation of resources
and payment of interest and principal on long-term debt incurred on various Revenue Bonds.
POOLED COMMERCIAL PAPER PROGRAM - To account for the accumulation of resources and
payment of interest and principal on the Commercial Paper loan program.
CARIBBEAN GARDENS LOAN - To account for the accumulation of resources and payment of
interest and principal on long-term debt incurred in the acquisition of Caribbean Gardens.
.
:i1/old1 '11 >
13 A ;. i
Debt Service Funds - Continued
STORMWATER IMPROVEMENT ASSESSMENT BONDS To account for the accumulation of
resources and payment of interest and principal on long-term debt incurred in the refunding of the
Commercial Paper loans.
LIMITED GENERAL OBLIGATION BONDS. CONSERVATION COLLIER, SERIES 2005A
To account for tbe accumulation of resources and payment of interest and principal on long-term debt
incurred for the acquisition of environmentally sensitive lands.
COMMUNITY REDEVELOPMENT LINE OF CREDIT - To account for the accumulation of
resources and payment of interest and principal on long-term debt incurred acquisition of land in tbe
Bayshore/Gateway Community Redevelopment Agency.
FOREST LAKES LIMITED GENERAL OBLIGATION BONDS - To account for the
accumulation of resources and payment of interest and principal on long-term debt incurred on the Forest
Lakes Limited General Obligation Bonds.
Capital Project Funds
COUNTY-WIDE CAPITAL IMPROVEMENTS - To account for Capital Projects, designated by
The Board of County Commissioners, to be funded by a County-wide one third mil levy.
PARKS IMPROVEMENTS - To account for tbe 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 LffiRARY 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 tbe 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.
GOVERNMENT FACILITIES IMPACT FEES - To account for the receipt and expenditure of
government facilities impact fees collected from qualifYing new construction. The impact fees must be
used for the acquisition/construction of park facilities.
PARKS IMPACT DISTRICTS - To account for the receipt and expenditure of parks impact fees
collected from all qualifYing new construction. The impact fees must be used for tbe
acquisition/construction of park facilities.
OTHER CAPITAL PROJECTS - To account for major capital expenditure financed from resources
other than proceeds from the issuance of long-term debt and the one third mil levy.
LAW ENFORCEMENT IMPACT FEES - To account for the receipt and expenditure of law
enforcement impact fees collected from all qualifYing new construction. The impact fee must be used for I
tbe acquisition/construction of law enforcement related facilities.
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
3([0 rtJ~
1~ A
,(
.\
Special Revenue Funds
Water
Management Grants and
Road Unincorporated Community and Pollution Shared
Districts Area MSTD Development Control Revenues
ASSETS
Cash, cash equivalents and investments $ 4.011.521 $ 15,739.160 $ 5,539,973 $ 3,449,171 $ 5,805.640
Receivables:
Interest 41,397 10,692 7,352
Trade, net 21,879 507,798 63,017 9,346 11,429
Notes 238,000
SpeciaJ assessments
Due from other funds 1,450 459,904 160 54.524 2,851
Due from other governments 389.388 691.239 35.111 59,208 2,227,570
Inventory
Advances to other funds
Prepaid costs
Total assets $ 4.424,238 $ 17,398.101 $ 5,679.658 $ 3.582.941 $ 8,292,842
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 1.122,622 2.565,242 38,988 79.037 453,198
Wages payable 501,699 519,586 419,927 103,222 68,795
Due to other funds 14 67,095 14,354 1,035,183
Due to other governments 68 3,529 702,569 14,832
Due to individuals 755
Deferred revenues 20 280,607 1.725,321
Refundable deposits 14,165
Retainage payable 30.810
Advances from other funds
Total liabilities 1.624,423 3,466.869 1,190,758 182,259 3,297,329
Fund balances (deficits):
Reserved for:
Encumbrances 7.221 2.117.651 189,359 224,667 4.415,138
Inventory
Advances to other funds
Prepaid costs
Debt service
Unreserved, reported in:
Special revenue funds 2,792,594 11,813.581 4,299.541 3.176.015 580.375
Debt service funds
Capital projects funds
Total fund balances (deficits) 2,799,815 13,931.232 4,488.900 3,400,682 4.995,513
Total liabilities and fund balances $ 4,424.238 $ 17.398,101 $ 5.679,658 $ 3,582.941 $ 8,292.842
See accompanying independent auditor's report
82
16,302,955
18,762,450
$ 20,046,989
1.118.146
1.139.614
$ 1,248.219
454.190
454.190
$ 520,468
5,869,686
5,869,686
$ 5,996,580
83
6.269.555
$
6.269,555
6.333.369
23,075,985
25,143,253
$ 26,682,481
754.122
1.188,263
$ 3,196,194
(Continued)
3/tof tJ1
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o~
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COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
3f(o[b~
13 A
~
,
-
Special Revenue Funds
800
MHZ GAC Land
IRCP State Court Confiscated Sales, Roads Utility
Fund Administration Property and Canals Fee
ASSETS
Cash, cash equivalents and investments $ 365.790 $ 656.654 $ 737,412 $ 1,716.291 $ 575.504
Receivables:
Interest 4,496 10,279
Trade, net 5,876 4,528 36.662
Notes
Special assessments
Due from other funds 28,194
Due from other governments 320
Inventory 282,391
Advances to other funds
Prepaid costs
Total assets $ 371,986 $ 689,376 $ 741,908 $ 2,008.961 $ 612.166
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 164,932 35,400 115
Wages payable 82.805 10,030
Due to other funds 551,569
Due to other governments
Due to individuals
Deferred revenues 282,391
Refundable deposits
Retainage payable
Advances from other funds
Total liabilities 164.932 669.774 282,391 10,145
Fund balances (deficits):
Reserved for
Encumbrances
Inventory
Advances to other funds
Prepaid costs
Debt service
Unreserved, reported in:
Special revenue funds 207,054 19,602 741.908 1,726.570 602,021
Debt service funds
Capital projects funds
Total fund balances (deficits) 207,054 19,602 741,908 1,726,570 602,021
Total liabilities and Fund balances $ 371,986 $ 689,376 $ 741,908 $ 2.008.961 $ 612,166
See accompanying independent auditor's report
84
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13 A
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t' ,.
..
Special Revenue Funds
Other
Court Court Special
Conservation Impact Fee Infannation Court University Facilities Affordable Revenue
Collier Escrow Technology Services Extension Fee Housing Funds Total
$ 30.967,598 $ 657,868 $ 8,121 $ 1,620,288 $ 35.665 $ 796.619 $ 231,496 $ 4,975,004 $ 139,446,122
168,381 6,881 12.995 418.644
15,772 46,390 5,126 8,404 1,322.240
1,399,773
153,110 157 949.589
30.031 3.747.406
282.609
$ 31,304,861 $ 657.868 $ 54.511 $ 1,650,319 $ 35.665 $ 808,626 $ 231,496 $ 4,996,560 $ 147,566,383
12.513 202,686 113 125,472 68,842 8.019,253
13.937 2,704 1.913.033
4,670 87,858 1,887,972
1.447.633 313 2.168,944
25,493 26,248
3.902.970
13,132 27,297
2,818 25,835 91.836 153,213
113,094
29,268 13,132 4,670 1,650,319 113 151,307 277.046 18,212,024
60.822 543.579 135,664 12,676,255
218
31,214,771 644,736 49.841 35.552 113,740 231,496 4.583,850 116.677.886
31,275,593 644,736 49.841 35,552 657,319 231,496 4.719.514 129,354,359
$ 31.304.861 $ 657.868 $ 54,511 $ 1.650,319 $ 35.665 $ 808.626 $ 231,496 $ 4.996,560 $ 147,566,383
(Continued)
85
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
.~ t~fI=t
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.,CJU
~
Debt Service Funds
Pooled Stormwater
Gas Tax Capital Commercial Improvement
Revenue Improvement Paper Caribbean Assessment
Bonds Revenue Bonds Program Gardens Loan Bond
~
Cash, cash equivalents and investments $ 4.396.686 $ 145.030 $ 97.347 $ 234,855 $ 457.241
Receivables.
Interest 32.847 875 176 6,775 3.276
Trade, net 3.869
Notes
Special assessments 371,898
Due from other funds 26,428 4,709 131,838 1.157
Due from other governments 112,834 17,742
Inventory
Advances to other funds
Prepaid costs
Total assets $ 4,429,533 $ 172.333 $ 215,066 $ 395,079 $ 833,572
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Wages payable
Due to other funds
Due to other governments
Due to individuals
Deferred revenues 370,611
Refundable deposits
Retainage payable
Advances from other funds
Total liabilities 370,611
Fund balances (deficits):
Reserved for:
Encumbrances
Inventory
Advances to other funds
Prepaid costs
Debt service 4.099.533
Unreserved, reported in:
Special revenue funds
Debt service funds 330.000 172,333 215,066 395,079 462,961
Capital projects funds
Total fund balances (deficits) 4,429,533 172,333 215,066 395,079 462,961
Total liabilities and fund balances $ 4,429,533 $ 172,333 $ 215,066 $ 395,079 $ 833,572
See accompanying independent auditor's report
86
".
Capital Projects Funds
Limited General
Obligation Bonds Community Forest Lakes County-Wide
Conservation Collier Redevelopment Limited General Capital Parks
Series 2OO5A Line of Credit Obligation Bonds Total Improvements Improvements
$ 147.925 $ 943 $ 166,257 $ 5.646.284 $ 31.820.504 $ 18.052,624
1.677 4 45.630
3.869 6,988
371.898
51,695 6.938 222,765 47,002
130,576 240,885 148.336
10.935.100
$ 201.297 $ 943 $ 173,199 $ 6.421.022 $ 42,996,489 $ 18.254.950
4,446,453
342,958
370,611 97,684
214.541 25,761
370,611 4.758.678 368,719
13.660.790 2.007,339
10.935,100
4.099.533
201,297 943 173.199 1,950,878
13.641.921 15,878,892
201,297 943 173.199 6.050.411 38,237,811 17,886,231
$ 201.297 $ 943 $ 173.199 $ 6,421.022 $ 42,996,489 $ 18,254,950
87
?Jto[or
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tIv
A
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
~Itol~
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~
I
Capital Projects Funds
County.Wide Correctional Emergency Government
Library Facilities Medical Services Water Facilities
Impact Fees Impact Fees Impact Fees Management Impact Fees
ASSETS
Cash, cash equivalents and investments $ 4,441,761 $ 2,715,799 $ 814,654 $ 8.670,205 $ 33.669.078
Receivables:
Interest 4.136
Trade, net 1.343 375 278 617 446
Notes 502,297 219,961 187,970 248,489
Special assessments
Due from other funds 2,850
Due from other governments 308,626 46,818 5.214 300,000 29.518
Inventory
Advances to other funds
Prepaid costs 476
Total assets $ 5,254,503 $ 2,982,953 $ 1,008,116 $ 8,977,808 $ 33,947,531
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 559,177 138.932 873 1,781,640 6,124.686
Wages payable
Due to other funds 68 24 324
Due to other governments
Due to individuals
Deferred revenues 502,297 219,961 187,970 248,489
Refundable deposits
Retainage payable 630,589 107.828 350,152 2.595,549
Advances from other funds 4.521,800 1,159,300 4.204,600
Total liabilities 6,213.931 466,721 1,348,167 2,132,116 13,173,324
Fund balances (deficits):
Reserved for:
Encumbrances 1.184,507 512,486 741.718 4,749,642 20,050,057
Inventory
Advances to other funds
Prepaid costs 476
Debt service
Unreserved, reported in.
Special revenue funds
Debt service funds
Capital projects funds (2.144,411) 2.003,746 (1,081,769) 2,096.050 724.150
Total fund balances (deficits) (959,428) 2,516.232 (340.051) 6.845,692 20.774,207
Total liabilities and fund balances $ 5,254,503 $ 2,982,953 $ 1,008,116 $ 8,977 ,808 $ 33.947.531
See accompanying independent auditor's report
88
alto(11
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Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement Capital Governmental
Districts Impact Fees Projects Total Funds
$ 20.105,271 $ 12,051,973 $ 5,302.327 $ 137,644,196 $ 282,736.602
4.136 468,410
7.443 209 825 18.524 1,344,633
2.680,764 69.041 3.908,522 5,308,295
55.589 55.589 427,487
1.014 50,866 1,223.220
41,046 1,120,443 4.998.425
282,609
10,935,100 10,935,100
476 476
$ 22.834,524 $ 12,121,223 $ 5,359,755 $ 153,737,852 $ 307,725,257
335,004 1,748.153 151.994 15.629.870 23.649,123
31.099 31.099 1,944,132
416 1,888.388
2.168,944
26.248
2.680.764 69,041 4,006,206 8,279,787
27,297
630,674 69.891 4.624.985 4.778.198
6,063,500 15,949,200 16.062,294
3.015,768 8,511,368 252,984 40,241,776 58.824,411
913,384 6,392.838 1.565.935 51.778.696 64,454,951
218
10.935.100 10.935,100
476 476
4,099,533
116.677,886
1.950.878
18,905,372 (2,782,983) 3,540.836 50,781,804 50,781,804
19.818,756 3,609,855 5,106,771 113,496,076 248,900,846
$ 22.834.524 $ 12.121,223 $ 5,359,755 $ 153,737,852 $ 307,725,257
89
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
:3r(&[f)~
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r....
F'.
Special Revenue Funds
Water
Management Grants and
Road Unincorporated Community and Pollution Shared
Districts Area MSTD Development Control Revenues
Revenues:
Taxes $ $ 35,655,325 $ $ 2,231,043 $
Licenses and permits 585,880 6,187,064 9.924.245 670
Intergovernmental 2.128,876 369.007 215,183 9,751,872
Charges for services 11.610 2,336,818 3,221,413 322.870 55,691
Fines and forfeitures 407,166
Interest income 2,252 31,676 201.545 95,638 57.548
Change in fair value
of investments (6.080) (23.890) (8.311) (5,162) (3.921)
Impact fees
Special assessments 8,805 2,419.855
Miscellaneous 141,763 679,480 215,980 54,679 120,186
Total revenues 2.864,301 45,651,451 13.S54.872 5,334,776 9,981,376
Expenditures:
Current:
General government 7,270,243 7,820,734 968.574
Public safety 4,813,651 8,635,531 1.951.977
Physical environment 534,626 570,300 3.063,427 45.222
Transportation 20,457,114 15.111,324 1.632,862
Economic environment 234.187 3,690,395
Human services 1,943,396
Culture and recreation 10,789.096 211,724
Debt service:
Principal
Interest
Fiscal charges
Capital outlay 2.435,429 2.857,972 1,352 175,188 340,534
Total expenditures 22,892.543 41.611,099 17,027,917 4,871,477 9.151.822
Excess (deficiency) of revenues
over (under) expenditures (20,028,242) 4,040,352 (3,473,045) 463.299 829,554
Other financing sources (uses):
Bonds issued
Premium on bonds issued
Loans issued
Sale of capital assets 16,518
Insurance proceeds 101.629 93,066 574 2,355
Transfers in 19,085,000 1,213,693 880,000 54,428 255.750
Transfers out (402,300) (5.807,827) (1,747,600) (315.351)
Total other financing sources (uses) 18,784,329 (4.501.068) (850,508) (258,568) 255,750
Net change in fund balances (1.243,913) (460,716) (4,323,553) 204,731 1.085,304
Fund balances (deficits) at beginning of year 4.043.728 14,391,948 8,812,453 3,195,951 3.910.209
Fund balances (deficits) at end of year $ 2,799.815 $ 13.931.232 $ 4,488,900 $ 3,400.682 $ 4,995.513
See accompanying independent auditor's report
90
~/ff)f 01
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Special Revenue Funds
State
Fire 911 Public Housing
Improvement Control Lighting Enhancement Records Tourist Initiative 800 MHZ
Districts Districts Districts Fee Modernization Development Partnership ICRP Fund
$ 4,007,145 $ 3,593.247 $ 579.874 $ 1.874.196 $ $ 14,795,623 $ $
38,080 842,318 5.544,411
158,420 7.731 990,305 1.986 295,720 731,598
759.691 70.805 34.498 212.921 289,395 18.057 224,352
(29.765) (1,831) (821) (8,654) (38,947) (3,427) (546)
37,910 15.915 170,357 183,953 173 199,417
4.971.481 3,685,867 613,551 2,248,820 1,279,700 15,802,990 6,061,229 930,469
91
(' (...
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COLLIER COUNTY, FLORIDA
COl\1BINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
~,' NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
,
'{....'.'1
.'1
Special Revenue Funds
GAe Land
State Court Confiscated Sales, Roads Utility Conservation
Administration Property and Canals Fee Collier
Revenues:
Taxes $ $ $ $ 159,623 $ 12.652.196
Licenses and permits
Intergovernmental
Charges for services 108.585 6,282 516
Fines and forfeitures 1,379.585 83.309
Interest income 30.669 71.636 1.272.609
Change in fair value
of investments (1,083) (1,111) (2,569) (835) (46,472)
Impact fees
Special assessments
Miscellaneous 9.069 199,980 401 45,670
Total revenues 1,496,156 112,867 269,047 165.471 13.924,519
Expenditures:
Current:
General govenunent 1,223,666
Public safety 1,606,384 25,000
Physical environment 180.268 937,339
Transportation
Economic environment
Human services
Culture and recreation 54,062
Debt service:
Principal
Interest
Fiscal charges
Capital outlay 28,503 6.718,744
Total expenditures 2,858,553 25,000 54,062 180.268 7.656.083
Excess (deficiency) of revenues
over (under) expenditures (1.362,397) 87,867 214.985 (14.797) 6,268.436
Other financing sources (uses):
Bonds issued
Premium on bonds issued
Loans issued
Sale of capital assets
Insurance proceeds
Transfers in 1.248,198 153,110
Transfers out (8,120) (662,981)
Total other financing sources (uses) 1,248,198 (8,120) (509,871)
Net change in fund balances (114.199) 79.747 214.985 (14.797) 5.758.565
Fund balances (deficits) at beginning afyear 133,801 662,161 1.511,585 616,818 25.517,028
Fund balances (deficits) at end aryear $ 19.602 $ 741,908 $ 1,726,570 $ 602,021 $ 31,275,593
See accompanying independent auditor's report
92
1(re) 09
13 A
C/....
~"I
Special Revenue Funds
Other
Court Court Special
Impact Fee Information Court University Facilities Affordable Revenue
Escrow Technology Services Extension Fee Housing Funds Total
$ $ $ $ $ $ $ $ 75,548,272
19,473 16,717.332
18,889,747
779.717 9.238.222 472 1.598,356 19.866,312
969,046 310,236 3.149.342
59.404 48,660 4,407 81.892 3,567,655
(1,332) (5t9) (53) (1.177) (345) (5.121) (191,972)
2,428,660
7,607 148.112 198,418 2,429.070
(1.332) 779,198 9,297,626 8,026 1,016.529 152,174 2,203,254 142.404,418
333.855 9,297.626 558.511 279,330 30,196,032
752,138 23,309,009
1,410 7,074,932
778,335 39,952,402
10,532,522
119.637 2,063,033
11,592 18,557,996
58,474
30,530
1,720 850,740 16.602 18.055.003
333,855 9,297,626 3,130 1,409,251 1.957.634 149.829.933
(1,332) 445,343 4,896 (392,722) 152.174 24S.620 (7.425.515)
6,068,171
30.815
21,518
197.677
72.921 23.952.027
(559.700) (412.115) (17,246,419)
(559,700) (339.194) 13.023,789
(1,332) (114,357) 4.896 (392,722) 152,174 (93.574) 5.598.274
646,068 164.198 30.656 1,050,041 79,322 4.813.088 123,756,085
$ 644,736 $ 49,841 $ $ 35.552 $ 657.319 $ 231,496 $ 4.719.514 $ 129.354,359
(Continued)
93
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
0((O[~
13 A
t
Debt Service Funds
Pooled Stonnwater
Gas Tax Capital Commercial Improvement
Revenue Improvement Paper Caribbean Assessment
Bonds Revenue Bonds Program Gardens Loan Bond
Revenues:
Taxes $ $ $ $ 11.956.876 $
Licenses and pennits
Intergovernmental
Charges for services
Fines and forfeitures
Interest income 166,085 4,848 4,133 141,202 24,470
Change in fair value
of investments (6,650) (119) (109) (353) (663)
Impact fees
Special assessments 120,069
Miscellaneous 32.994 11,481
Total revenues 159,435 4,729 37,018 12,109,206 143.876
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service:
Principal 6.490,000 8.840,000 11.161.000 12,100.000 145.000
Interest 8.089,277 10,546,850 1,016.592 528.756 53.213
Fiscal charges 4,579 7.144 14.692 3.434 6.145
Capital outlay
Total expenditures 14.583,856 19,393,994 12, I 92.284 12,632. I 90 204,358
Excess (deficiency) of revenues
over (under) expenditures (14,424,421) (19,389,265) (12,155,266) (522.984) (60,482)
Other financing sources (uses):
Bonds issued
Premium on bonds issued
Loans issued 124,444
Sale of capital assets
Insurance proceeds
Transfers in 13,962.800 19,364,400 12,135.973 13 1.838 1,157
Transfers out (322,166) (4,154)
Total other financing sources (uses) 13.962,800 19,364,400 12.260.417 (190,328) (2,997)
Net change in fund balances (461,621) (24.865) 105,151 (713,312) (63,479)
Fund balances (deficits) at beginning of year 4,891.154 197,198 109,915 1,108,391 526,440
Fund balances (deficits) at end of year $ 4,429,533 $ 172,333 $ 215,066 $ 395.079 $ 462.961
See accompanying independent auditor's report
94
95
3/ro(()?
13 A
~
I
'5floto~
COLLIER COUNTY, FLORIDA 1
. c;OMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 .
w
3A
I
I
Capital Projects Funds
County-Wide Correctional Emergency Government
Library Facilities Medical Services Water Facilities
Impact Fees Impact Fees Impact Fees Management Impact Fees
Revenues:
Taxes $ $ $ $ $
Licenses and pennits 56,300
Intergovernmental 600.000 3,215.433
Charges for services 2
Fines and forfeitures
Interest income 633 537 32.254
Change in fair value
of investments (6,547) (4,382) (1,226) (13,103) (50,790)
Impact fees 500,430 1,148,238 382,027 2.059.626
Special assessments 287.413
Miscellaneous 6,239 2,968 5,774 2,404 2,150
Total revenues 1,100,755 1,146,824 387,112 3,580,703 2,010,986
Expenditures:
Current:
General government 45.590
Public safety 61,759 22,502
Physical environment 106,739
Transportation
Economic envirornnent
Human services
Culture and recreation 51,728
Debt service:
Principal
Interest
Fiscal charges
Capital outlay 12,346,926 654,739 1,200,175 21,041.241 51,606.172
Total expenditures 12.398,654 716,498 1,222.677 21,147,980 51,651,762
Excess (deficiency) of revenues
over (under) expenditures (11,297,899) 430,326 (835.565) (17,567,277) (49.640,776)
Other financing sources (uses):
Bonds issued
Premium on bonds issued
Loans issued 10.650,596 23.139.039
Sale of capital assets
lnsurance proceeds
Transfers in 12,398,2S0 1.291,300
Transfers out (1.513,681) (1,954,600) (838,869) (1,164,887) (4,170.106)
Total other financing sources (uses) 9,136.915 (1.954,600) (838.869) 11,233,363 20,260,233
Net change in fund balances (2.160.984) (1,524,274) (1.674.434) (6,333.914) (29,380,543)
Fund balances (deficits) at beginning of year 1,201,556 4,040,506 1,334,383 13,179,606 50,154,750
Fund balances (deficits) at end of year $ (959,428) $ 2.516.232 $ (340.051) $ 6.845.692 $ 20,774,207
See accompanying independent auditor's report
96
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement Capital Governmental
Districts Impact Fees Projects Total Funds
$ $ $ $ $ 93,347,805
514,399 17,231,731
7,282.424 26,172,171
39.302 6 39,310 19.905.622
3.149,342
4,085 37,509 3.968,330
(30,439) (17.852) (7.991) (206,938) (407.275)
2.703,249 709.152 34,950 7,537,672 7.537.672
105,228 392,641 2,941,370
405,705 19,004 720.932 3,194,477
3,117,817 695,385 151,197 16,317.949 177,041.245
828.740 3,241,026 33,437.058
27,802 1.932 339,993 23,649,002
1.150.744 1.342,361 8,417,293
726.050 40,678,452
10.532.522
2.063.033
328,346 1,420.574 19.978.570
85.936 43,080,410
26.804 21,816,163
164,870
2.654,328 13,104,269 331.868 130.232,473 148,287,476
2.982,674 13,132,071 2,313,284 137,415,217 352,104,849
135.143 (12,436.686) (2,162,087) (121,097,268) (175.063.604)
6.215.000
30,815
9.699,450 57.266.556 57,391,000
21,518
197,677
1.656,514 40,458,880 110,337,687
(3,118.600) (5.027.717) (263,199) ( 18,902,307) (36.592.961)
(3.118.600) 4.671.733 1.393,315 78.823,129 137.600,736
(2.983,457) (7.764.953) (768.772) (42,274,139) (37.462.868)
22.802,213 11.374,808 5,875,543 155,770,215 286,363,714
$ 19,818,756 $ 3.609.855 $ 5.106.771 $ 113,496,076 $ 248.900.846
97
J jl (j/tfJoq
13 A
t
'"
COLLIER COUNTY, FLORIDA
CQMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON.GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, :Z008
98
8!1~6~
13 A
~
.
.Jk
,." ~'1
Road Districts (Non-GAAP) Unincorporated Area MSTD (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ 41,673,300 $ 35,655,325 $ (6,017.975)
590,200 585,880 (4.320) 1,353,800 6,187,064 4,833,264
2,150,300 2,128,876 (21,424) 369,007 369,007
56,900 11,610 (45,290) 2,733,700 2,336,818 (396.882)
710,000 407,166 (302.834)
2,252 2,252 52,000 31,676 (20,324)
35,000 8,805 (26.195)
24,900 141,763 116,863 146,237 679,480 533,243
2,822,300 2,870,381 48,081 46,704,037 45,675,341 (1,028,696)
7,772,921 7,268,965 503,956
5,096,436 4,813,651 282,785
733,751 534,626 199,125
21,976,630 20,457,114 1,519,516 16,819,763 15,111,324 1,708,439
256,300 234,187 22,113
11,996,283 10,789,096 1,207,187
2,699,431 2,435,429 264,002 4,299,967 2,857,972 1,441,995
24,676,061 22,892,543 1,783,518 46,975,421 41,609,821 5,365,600
(21,853,761) (20,022,162) 1,831,599 (271,384) 4,065,520 4,336,904
20,000 101,629 81,629 159,440 93,066 (66.374)
19,085,000 19,085,000 3,236,107 3,365,600 129,493
(402,300) (402,300) (8,552,503) (7,959,734) 592,769
18,702,700 18,784,329 81,629 (5.156.956) (4,501,068) 655,888
(3,151,061) (1.237.833) 1,913,228 (5,428,340) (435.548) 4,992,792
3,256,461 3,256,461 14,140,966 14,140,966
$ 105,400 $ 2,018,628 $ 1,913,228 $ 8,712,626 $ 13,705,418 $ 4,992,792
$ (1,237,833)
(6.080)
$ (435.548)
(23.890)
(1.278)
$ (1,243,913)
$ (460,716)
99
BIr'[fJ1
13 A
.,
o!t~d?
COLLlERCOUNTY,FLORIDA 13 A
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON.GAAP)
MAJOR eArIT AL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
cPo
I
I
Water Management
Community Development (Non-GAAP) and Pollution Control (Non-GAAP)
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes $ $ $ $ 2,318,100 $ 2,231,043 $ (87.057)
Licenses and permits 14,170,000 9,924,245 (4.245.755) 800 670 (lJO)
Intergovernmental 142,400 (142.400) 159,000 215,183 56,183
Charges for services 3,328,000 3,221,413 (106.587) 270,600 322,870 52,270
Fines and forfeitures
Interest income ]22,000 20],545 79,545 50,700 95,638 44,938
Impact fees
Special assessments 2,508,300 2,419,855 (88.445)
Miscellaneous 33,000 215,980 182,980 54,492 54,492
Total revenues 17,795,400 13,563,183 (4,232,217) 5,307,500 5,339,751 32,251
Expenditures:
Current
General government 8,550,610 7,820,734 729,876
Public safety 9,400,500 8,635,531 764,969
Physical environment 648,600 570,301 78,299 3,435,600 3,063,427 372,173
Transportation ],693,668 1,632,862 60,806
Economic environment
Human services
Culture and recreation
Debt service
Capital outlay 10,000 ],352 8,648 431,345 175,188 256,]57
Total expenditures 18,609,710 ]7,027,918 1,581,792 5,560,613 4,871,477 689,136
Excess (deficit) ofrevenues
over (under) expenditures (814,310) (3,464,735) (2,650,425) (253,113) 468,274 721,387
Otber financing sources (uses):
Bonds issued
Loans issued
Payment to refunding bond escrow
Sa]eofcapital assets ]6,518 16,518
Insurance proceeds 574 574 2,355 2,355
Transfers in 1,140,000 1,140,000 50,000 54,428 4,428
Transfers out (2,170,500) (2,007,600) 162,900 (413,900) (315,351) 98,549
Total other financing sources (uses) (],013,982) (850,508) ]63,474 (363.900) (258,568) ]05,332
Net change in fund balances (1,828,292) (4,3]5,243) (2,486.951) (617.013) 209,706 826,7]9
Fund balances at beginning of year 8085,938 8,085,938 3,002,213 3,002,213
Fund balances (deficits) at end of year $ 6,257,646 $ 3,770,695 $ (2,486,951) $ 2,385,200 $ 3,211,919 $ 826,719
See accompanying independent auditors' report.
Reconci]iation
Net change in fund balance, budgetary basis $ (4,315,243) $ 209,706
Change in fair value of investments (8,311) (5.162)
Advances budgeted as transfers
Unbudgeted funds 187
Deferred revenues
Net change in fund balance, GAAP basis $ (4,323,554) $ 204,731
100
Grants and Shared Revenues (Non.GAAP) Improvement Districts (Non.GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ 4,152,200 $ 4,007,145 $ (145.055)
23,232,812 6,934,796 (16,298,016) 38,080 38,080
29,819 55,69\ 25,872 189,600 158,420 (31.180)
52,902 52,902 230,300 759,691 529,391
113,511 120,186 6,675 201,700 37,910 (163,790)
23,376,142 7,163,575 (16,212,567) 4,773,800 5,001,246 227,446
2,696,713 835,054 1,861,659
696,775 360,141 336,634
68,426 45,222 23,204 355,600 200,466 155,134
\,524,072 ],]64,901 359,171
15,812,090 3,690,395 12,12],695
4,2]4,245 1,943,396 2,270,849
256,047 211,724 44,323 ],237,600 1,126,895 110,705
799,358 ]63,534 635,824 15,466,243 2,198,719 13,267,524
24,543,654 7,249,466 17,294,188 18,583,515 4,690,981 13,892,534
(1,167,5]2) (85.891) ],081,621 (13.809.715) 310,265 14,119,980
5,980,100 6,098,986 118,886
331,620 284,74] (46.879) 634,300 68],680 47,380
(34,346) (34,346) (508,800) (284,158) 224,642
297,274 250,395 (46,879) 6,105,600 6,496,508 390,908
(870,238) 164,504 1,034,742 (7,704,115) 6,806,773 14,510,888
t,345,119 1,345,119 9,784,615 9,784,615
$ 474,881 $ 1,509,623 $ ],034,742 $ 2,080,500 $ 16,591,388 $ 14,510,888
$
164,504
(3.921)
$ 6,806,773
(29,765)
924,72]
$ 1,085,304
$ 6,777,008
101
fJ/to/ rff
: 13 A
rJ..-:,
~.
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
?;(to [09
13 A
r)->
I
Fire Control Districts (Non-GAAP) Lighting Districts (Non-GAAP)
Budget Actual Variance Bud~et Actua] Variance
Revenues;
Taxes $ 3,735,900 $ 3,593,247 $ (]42,653) $ 600,100 $ 579,874 $ (20,226)
Licenses and permits
Intergovernmental
Charges for services ]7,500 7,731 (9.769)
Fines and forfeitures
Interest income 49,200 70,805 21,605 ]5,900 34,498 18,598
Impact fees
Special assessments
Miscellaneous 9,214 15,915 6,701
Total revenues 3,811,814 3,687,698 (124,1]6) 616,000 614,372 (1,628)
Expenditures:
Current
General government
Public safety 3,443,714 3,192,306 251,408
Physical environment
Transportation 1,004,730 807,866 196,864
Economic environment
Human services
Culture and recreation
Debt service 82,100 81,699 40]
Capital outlay 230,575 233,645 (3.070) 18,750 2,300 16,450
Total expenditures 3.756,389 3,507,650 248,739 1,023,480 810,166 213,314
Excess (deficit) of revenues
over (under) expenditures 55,425 180,048 124,623 (407,480) (195,794) 211,686
Other financing sources (uses):
Bonds issued
Loans issued
Payment to refunding bond escrow
Sale of capital assets 5,000 5,000
Insurance proceeds 53 53
Transfers in 261,600 292,480 30,880 7,300 6,523 (777)
Transfers out (384.899) (363.952) 20,947 (l9.800) (16,335) 3,465
Tota] other financing sources (uses) (123,299) (66,419) 56,880 (12,500) (9.812) 2,688
Net change in fund balances (67.874) 113,629 181,503 (4]9.980) (205.606) 214,374
Fund balances at beginning of year 745,875 745,875 665,280 665,280
Fund balances (deficits) at end of year $ 678,001 $ 859,504 $ 181,503 $ 245,300 $ 459,674 $ 214,374
See accompanying independent auditors' report
Reconciliation:
Net change in fund balance, budgetary basis $ 113,629 $ (205.606)
Change in fair value of investments (l.83]) (82])
Advances budgeted as transfers
Unbudgeted funds
Deferred revenues
Net change in fund balance, GAAP basis $ ]]],798 $ (206,427)
102
2,095,188
1,192,733
142,812
1,064,741
142,812
1,064,741
4,441,588
4,441,588
$ 4,584,400 $ 5,506,329 $
$ 1,064,741
(8.654)
$ 1,056,087
902,455
921,929
92],929
92],929
5,826,900
11,367,500
(9,267,500)
1,981,816
4,425,309
(3,145,609)
(9,267.500)
(3,145,609)
9,267,500
$
9,267,500
$ 6,121,891 $ 6,121,891
$ (3,145.609)
$ (3,145,609)
103
3/tofo?
13 A
3,845,084
6,942,191
6,121,891
6,121,891
~
\.,,~
COLLffiR COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
?;{rO(DC(
13 A
~
l
t'~
Tourist Development (Non.GAAP) State Housing Imtiative Partnership (Non.GAAP)
BudRet Actual Variance Budget Actual Variance
Revenues:
Taxes $ 14,499,300 $ 14,795,623 $ 296,323 $ $ $
Licenses and permits
Intergovernmental 1,259,800 842,3]8 (417.482) 5,226,676 5,544,411 317,735
Charges for services 1,986 ],986 3,483,953 295,720 (3,188,233)
Fines and forfeitures
Interest income 1,500 18,057 16,557 224,352 224,352
Impact fees
Special assessments
Miscellaneous 20,000 183,953 163,953 173 173
Total revenues 15,780,600 15,841,937 61,337 8,710,629 6,064,656 (2,645,973)
Expenditures:
Current'
General government
Public safety
Physical environment 3,031,229 ),541,874 1,489,355
Transportation
Economic environment 9,574,425 6,607,940 2,966,485
Human services
Culture and recreation 8,156,133 6,364,567 ],791,566
Debt service 7,305 (7.305)
Capita] outlay 4,819,542 200,772 4,618,770 2,300 2,293 7
Total expenditures 16,006,904 8,114,518 7,892,386 9,576,725 6,6]0,233 2,966,492
Excess (deficit) of revenues
over (under) expenditures (226.304) 7,727,419 7,953,723 (866.096) (545,577) 320,519
Other financing sources (uses):
Bonds issued
Loans issued
Payment to refunding bond escrow
Sale of capita] assets
Insurance proceeds
Transfers in 676,800 1,027,705 350,905
Transfers out (7,737,600) (7,785,841) (48,241)
Total other financing sources (uses) (7,060,800) (6,758,136) 302,664
Net change in fund balances (7.287.104) 969,283 8,256,387 (866.096) (545.577) 320,5]9
Fund balances at beginning of year 22,885,644 22,885,644 866,096 866,096
Fund balances (deficits) at end of year $ 15,598,540 $ 23,854,927 $ 8,256,387 $ $ 320,519 $ 320,519
See accompanying independent auditors' report
Reconciliation
Net change in fund balance, budgetary basis $ 969,283 $ (545,577)
Change in fair value of investments (38,947) (3.427)
Advances budgeted as transfers
Unbudgeted funds (60)
Deferred revenues
Net change in fund balance, GAAP basis $ 930,276 $ (549,004)
104
3/10 {o 1
13 A
~
I
800 MHZ IRCP Fund (Non-GAAP) State Court Administration (Non-GAAP)
Budget Actual Variance Budget Actual Variance
I I I I I I
781,200 731,598 (49.602) 108,585 ]08,585
1,882,900 1,379,585 (503.315)
112,100 199,417 87,317 9,069 9,069
893,300 931,015 37,715 1,882,900 1,497,239 (385,661)
1,495,500 1,223,666 271,834
1,180,300 1,136,950 43,350 1,686,500 \,606,384 80,116
8,674
(8.674)
233,900
28,503
205,397
1,180,300
1,l45,624
34,676
3,415,900
2,858,553
557,347
(287,000)
(214,609)
72,391
(1,533,000)
(1,361,314)
171,686
100,400 100,400 1,980,573 1,248,198 (732,375)
100,400 100,400 \,980,573 1,248,198 (732,375)
(186.600) (114,209) 72,391 447,573 (113,116) (560.689)
284,000 284,000 360,600 360,600
I 97,400 I 169,791 I 72,391 I 808,\73 I 247,484 I (560,689)
I
(114.209)
(546)
I (113.116)
(1.083)
(2,339)
I
(117,094)
$ (114,199)
105
(.
\
~lro(o~
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON~GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
106
13 A
cJL
Jllo~~
13 A
i
Utility Fees (Non~GAAP) Conservation Collier (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ 120,000 159,623 $ 39,623 $ }3,147,200 $ 12,652,196 $ (495.004)
67,000 6,282 (60,718) 516 516
150,000 ] ,272,609 1,122,609
401 401 45,670 45,670
187,000 166,306 (20,694) 13,297,200 13,970,991 673,791
222,300
180,268
42,032
1,068,023
937,339
130,684
2,800
2,800
15,974,800
6,718,744
9,256,056
225,100
180,268
44,832
17,042,823
7,656,083
9,386,740
(J8.100)
(13,962)
24,]38
(3,745,623)
6,314,908
10,060,53]
2,644,900 2,798,010 153,]10
(3,441,514) (3,307,881) 133,633
(796.614) (509,871) 286,743
(J8.IOO) (13.962) 24,138 (4.542.2J7) 5,805,037 10,347,274
538,900 538,900 23,816,223 23,816,223
$ 500,800 $ 524,938 $ 24,138 $ 19,273,986 $ 29,621,260 $ 10,347,274
$
(13.962)
(835)
$ 5,805,037
(46.472)
$
(14,797)
$ 5,758,565
107
COLLIER COUNTY, FLORIDA ;1 ro(tlt 1 3 A
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES .
BUDGET AND ACTUAL (NONMGAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 3D, 2008
~
.
J
Court Infonnation Technology Fee (Non~GAAP) Court Services
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes $ $ $ $ $ $
Licenses and permits
Intergovernmental
Charges for services 1,502,600 779,717 (722.883) 9,765,411 9,238,222 (527.189)
Fines and forfeitures
lnterest income 236,700 59,404 (177 ,296)
Impact fees
Special assessments
Miscellaneous
Total revenues 1,502,600 779,717 (722,883) 10,002,111 9.297,626 (704,485)
Expenditures:
Current
General government 731,893 333,855 398,038 10,002,]]} 9,297,626 704,485
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service
Capitalout]ay 62,500 62,500
Total expenditures 794,393 333,855 460,538 10,002,111 9,297,626 704,485
Excess (deficit) of revenues
over (under) expenditures 708,207 445,862 (262.345)
Other financing sources (uses):
Bonds issued
Loans issued
Payment to refunding bond escrow
Sale of capital assets
Insurance proceeds
Transfers in
Transfers out (738,700) (559,700) 179,000
Tota] other financing sources (uses) (738,700) (559,700) 179,000
Net change in fund balances (30.493) (113,838) (83,345)
Fund balances at beginning of year 299,700 299,700
Fund balances (deficits) at end of year $ 269,207 $ 185,862 $ (83,345) $ $ $
See accompanying independent auditors' report.
Reconci]iation
Net change in fund balance, budgetary basis $ (113.838) $
Change in fair value of investments (519)
Advances budgeted as transfers
Unbudgeted funds
Deferred revenues
Net change in fund balance, GAAP basis $ (114,357) $
108
,fro f{jJD~
13 A
rJ->
I
University Extension (Non-GAAP) Court Facilities Fee (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ $ $
472 472
1,16],000 969,046 (191,954)
48,660 48,660
4,200 7,607 3,407
4,200 8,079 3,879 ],161,000 1,017,706 (143,294)
560,000 558,51] 1,489
4,500 1,410 3,090
2,000
],720
280
1,518,382
850,740
667,642
6,500
3,130
3,370
2,078,382
1,409,251
669,131
(2,300)
4,949
7,249
(917,382)
(391,545)
525,837
(2,300)
4,949
7,249
(917,382)
(391.545)
525,837
38,800
38,800
975,482
975,482
$
36,500 $
43,749 $
7,249
$
58,100 $ 583,937 $
525,837
$
4,949
(53)
$ (391.545)
(1.177)
$
4,896
$ (392,722)
109
, .. .- ~b{t( oq
COLLIER COUNTY, FLORIDA 1 "'2 A
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES J
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
cP,
I
i
Other Special Revenue Funds (Non-GAAP) Gas Tax Revenue Bonds (Non-GAAP)
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes $ $ $ $ $ $
Licenses and pennits 25,000 19,473 (5.527)
Intergovernmental 20.000 (20.000)
Charges forselVices ],]42,400 924,585 (217.815)
Fines and forfeitures 352,900 310,236 (42.664)
Interest income 26.600 78,197 51,597 25,000 166,085 141,085
Impact fees
Special assessments
Miscellaneous 109,600 ]41,794 32,194
Total revenues 1676,500 1,474,285 (202,2]5) 25,000 166,085 141,085
Expenditures:
Current:
Genera] government 207,900 ]79,330 28,570
Public safety 449,700 33],151 ]18,549
Physical environment
Transportation 935,900 778,335 157,565
Economic environment
Human services 361,901 119,637 242,264
Culture and recreation 86,000 ]1,592 74,408
Debt service 14,595,800 14,583,856 11,944
Capita] outlay 590,000 9,454 580,546
Tota] expenditures 2,631,40] 1,429,499 1,201,902 14,595,800 14,583,856 ] 1,944
Excess (deficit) of revenues
over (under) expenditures (954,90]) 44,786 999,687 (14,570,800) (14,4]7,771) 153,029
Other financing sources (uses):
Bonds issued
Loans issued
Payment to refunding bond escrow
Sale of capita] assets
Insurance proceeds
Transfers in 98,700 72,921 (25.779) ]3,962,800 13,962,800
Transfers out (439,700) (4]2,115) 27,585
Total other financing sources (uses) (341,000) (339,194) ],806 13,962,800 13,962,800
Net change in fund balances (1,295,901) (294,408) 1,001,493 (608,000) (454,971) ]53,029
Fund balances at beginning of year 3,142,601 3,]42,601 4,709,300 4,709,300
Fund balances (deficits) at end of year $ ],846,700 $ 2,848,193 $ 1,001,493 $ 4,10],300 $ 4,254,329 $ ]53,029
See accompanying independent auditors' report
Reconciliation:
Net change in fund balance, budgetary basis $ (294,408) $ (454.971)
Change in fair value of investments (4.996) (6.650)
Advances budgeted as transfers
Unbudgeted funds 205,830
Deferred revenues
Net change in fund balance, GAAP basis $ (93,574) $ (46],621)
110
J
3/ta[ oq
13 A
~
I
Capital Improvement Revenue Bonds (Non-GAAP)
Pooled Commercial
Paper Program (Non-GAAP)
Budget
Actual
Variance
Budget
Actual
Variance
$
$
$
$
$
$
4,848
4.848
500
4,133
3,633
32,994
32,994
4.848
4.848
500
37,127
36,627
19,406,800 19,393,994 12,806 16,428,900 12,192,284 4,236,6]6
19,406,800 19,393,994 12,806 ]6,428,900 12,192,284 4,236,616
(19.406.800) (19,389,146) 17,654 (16,428,400) (12,155,157) 4,273,243
124,444 ]24,444
19,364,400 19,364,400 16,428,900 12,135,973 (4.292.927)
19,364,400 19,364,400 16,428,900 12,260,417 (4,168,483)
(42.400) (24,746) 17,654 500 105,260 104,760
42,400 42,400 69,900 69,900
$ $ ]7,654 $ 17,654 $ 70,400 $ 175,160 $ 104,760
$
(24.746)
(119)
$
]05,260
(109)
$
(24,865)
$
105,151
111
?J(p I 09
13 A
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON~GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
112
rJ-;
"',~
H
Limited Genera] Obligation Bonds,
Conservation Collier, Series 2005 (Non.GAAP)
Budget
Actual
$
5,413,500 $ 5,213,795 $
500
16,767
Variance
(199,705)
16,267
5,414,000
5,230,562
(183,438)
4,983,100
4,981,090
2,010
4,983,100
4,981,090
2,0]0
430,900
249,472
$
197,206
(221)
$
196,985
(181,428)
Community Redeve]opment
Line of Credit (Non-GAAP)
Budget
Actua]
$
$
22
3(rDfo1
13 A
Variance
$
22
22
22
500,000
27],060
228,940
500,000
271,060
51,696 51,696 500,000 271,978 (228.022)
(162.400) (103,962) 58,438
(162,400) (52,266) 110,134 500,000 271,978 (228.022)
268,500 197,206 (71,294) 940 940
2,200 2,200
$ 270,700 $ 199,406 $ (71.294) $ $ 940 $ 940
(500,000)
(271,038)
$
940
(I)
$
939
113
228,940
228,962
d-->
~
':31~ro4
COLLIER COUNTY, FLORIDA 13 A
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR eArn AL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
114
~,
j
J/rOf61
15 A
rL
I
Parks Improvements (Non-GAAP) County. Wide Library Impact Fees (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ $ $
250,000 458,099 208,099
412,449 151,023 (261.426) 1,000,000 600,000 (400.000)
633 633
2,100,000 500,430 (1.599.570)
235,500 235,500 6,239 6,239
897,949 844,622 (53,327) 3,100,000 ],]07,302 (1,992,698)
3,348,884 943,930 2,404,954 92,749 51,728 41,021
16,648,993 1,184,649 15,464,344 16,835,595 12,346,926 4,488,669
19,997,877 2,128,579 17,869,298 16,928,344 12,398,654 4,529,690
(19,099,928) (1,283,957) 17,815,971 (13,828,344) (11,291,352) 2,536,992
10,652,700 10,650,596 (2.104)
2,048,414 2,060,416 12,002 3,092,700 3,092,700
(352,000) (348.667) 3,333 (1,985,700) (1,513,681) 472,019
1,696,414 1,711,749 15,335 11,759,700 12,229,615 469,915
(17,403,514) 427,792 ]7,831,306 (2,068,644) 938,263 3,006,907
17,463,864 17,463,864 2,513,624 2,513,624
$ 60,350 $ ]7,891,656 $ 17,831,306 $ 444.980 $ 3,451,887 $ 3,006,907
$
427,792
(26.890)
$ 938,263
(6.547)
(3.092,700)
$
400,902
$ (2,160,984)
115
3{ID iff1
13 A
"
'sr
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON.GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
116
~
...
f
~!D'
13 A
~
I
Government
Water Management (Non-GAAP) Facilities Impact Fees (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ $ $
1,359,000 56,300 (I,lD2.7DD)
6,866,000 3,215,433 (3,650,567)
2 2
6,100 32,254 26,154
3,600,000 2,059,626 (1.54D.374)
298,000 287,413 (ID.587)
2,404 2,404 2,150 2,150
8,529,100 3,593,806 (4,935,294) 3,600,000 2,061,776 (1,538,224)
63,448 45,590 17,858
325,000 106,739 218,261
27,668,331 21,041,241 6,627,090 73,622,060 51,606,172 22,015,888
27,993,331 21,147,980 6,845,351 73,685,508 51,651,762 22,033,746
09,464,23]) (17,554,]74) 1,910,057 (70,085,508) (49,589,986) 20,495,522
23,615,300 23,139,039 (476.261)
12,395,400 ]2,398,250 2,850 3,366,500 3,366,500
(1,170,400) (1.164.887) 5,513 (6,262,700) (4,170,106) 2,092,594
11,225,000 ] ],233,363 8,363 20,719,100 22,335,433 1,616,333
(8,239,23]) (6,320,8] ]) ],918,420 (49,366,408) (27,254,553) 22,111,855
14,975,231 14,975,231 52,195,508 52,195,508
$ 6,736,000 $ 8,654,420 $ 1,918,420 $ 2,829,100 $ 24,940,955 $ 22,111,855
117
"
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND AcrUAL (NON-GAAP)
MAJOR eArlT AL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
118
.3//6[ 07
13 A
rh-
I
'?~o[o?
13 A
Other Capital Proiects (Non-OAAP)
Budget Actual Variance
$ $ $
116,900 (116.900)
62,800 6 (62,794)
18,400 34,950 16,550
106,100 105,228 (872)
19,004 19,004
304,200 159,]88 045,012)
834,430 828,740 5,690
6,200 1,932 4,268
1,934,420 1,150,744 783,676
734,638 734,638
2,355,292 331,868 2,023,424
5,864,980 2,313,284 3,551,696
(5,560,780) (2,154,096) 3,406,684
l,855,500 1,856,514 1,014
(265,500) (263,199) 2,301
1,590,000 1,593,315 3,315
(3,970,780) (560.781) 3,409,999
6,444,315 6,444,315
$ 2,473,535 $ 5,883,534 $ 3,409,999
$ (560,781)
(7,991)
(200.000)
$ (768,772)
119
(jL/
,
Ii
~t
,I
3/rf> [ cf(
13 A
-~.~
THIS PAGE INTENTIONALLY LEFT BLANK
cJ-;
1
13 A
Nonmajor Enterprise Funds
SOLID WASTE DISPOSAL - To account for tbe provision of solid waste disposal services to users
tbroughout tbe County.
EMERGENCY MEDICAL SERVICES - To account for the provision of emergency ambulance and
paramedical services to users tbroughout the County.
GOODLAND WATER - To account for tbe provision of potable water services to residents of
Goodland.
AIRPORT AUTHORITY - To account for tbe provision of landing facilities and tbe sale of fuel at the
airports.
COLLIER AREA TRANSIT - To account for tbe provision of public transportation tbroughout tbe
County.
?POlh 6JG
COLLIER COUNTY, FLORIDA A 1
COMBINING STATEMENT OF NET ASSETS I
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2008
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
ASSETS
Current assets:
Cash, cash equivalents and investments $ 18.191.244 $ 5,087.330 $ 390,063 $ 2,874,545 $ 254.056 $ 26,797,238
Receivables:
Trade, net 2.145.949 3.941.096 39,573 17.237 2,484 6.146,339
Interest 131,398 1.574 2,983 135.955
Unbilled revenue 270.585 9,275 279.860
Due from other funds 48,996 197 1,724 20,293 71,210
Due from other governments 24.935 4.206 102,354 791.239 922,734
Inventory 13.203 156,871 170.074
Prepaid costs 50,192 50,192
Restricted assets:
Cash, cash equivalents and investments 389,190 131,517 226.202 746,909
Total current assets 20,931,712 9.499.900 441.894 3,378,933 1.068.072 35,320,511
Noncurrent assets:
Capital assets:
Land and nondepreciable capital assets 9,234,580 3,222,923 5.873.414 18,330,917
Depreciable capital assets, net 7,749,601 3.711,923 962.264 10,903,172 7,920,452 31,247,412
Total noncurrent assets 16,984,181 3,711,923 962,264 14.126.095 13,793,866 49.578,329
Total assets 37,915.893 13.211.823 1,404,158 17.505,028 14.861.938 84.898,840
LIABILITIES
Cun-ent liabilities:
Accounts payable 1,957,225 197,940 21.795 288.913 922,400 3,388,273
Wages payable 67,339 705,643 36,513 3.091 812,586
Retainage payable 42.242 42,242
Due to other funds 73 73
Due to other governments 136 22,328 1,890 24.354
Due to individuals 422.051 422,051
Compensated absences 94,254 591,442 38,575 1.014 725,285
Capital lease obligations 109,799 16,346 126,145
Liabilities payable from restricted assets:
Retainage payable 61,974 61.974
Refundable deposits 291,195 14,920 306,115
Unearned revenue 97,995 131,517 149,308 378,820
Total current liabilities 2,550,386 2.IS8,465 44,123 608,439 926.505 6,287,918
Noncurrent liabilities:
Compensated absences 23,564 147.861 9.644 253 181.322
Capital lease obligations 455.954 35,786 491,740
Landfill post-closure liability 1.815.160 1,815.160
Total noncurrent liabilities 1,838.724 603.815 4S,430 253 2.488,222
Total liabilities 4,389,110 2,762.280 44.123 653.869 926,758 8,776.140
NET ASSETS
Invested in capital assets, net of related debt 16.984.181 3,146.170 962.264 14.073,963 13.793,866 48.960,444
Unrestricted 16,542.602 7,303.373 397.771 2,777.196 141,314 27,162,256
Total net assets $ 33.526,783 $10.449,543 $ 1.360,035 $16,851,159 $ 13,935,180 $ 76,122.700
See accompanying independent auditors' report.
122
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
3(fP{Dcr
13 A
~I
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
Operating revenues:
Charges for services $ 35,113,948 $16.050,218 $ 337,784 $ 3,529,561 $ 1,068.170 $ 56.099,681
Miscellaneous 1,380,880 117.181 853 16,985 5.694 1.521,593
Total operating revenues 36,494,828 16.167,399 338,637 3,546.546 1.073.864 57,621,274
Operating expenses:
Personal services 1.665.951 19.159.173 1,068.920 72,664 21,966,708
Operating 27.915,603 10.691,950 433,615 3.007.037 8,276,950 50,325.155
Depreciation 503.961 711,073 56,329 831.926 1,027,588 3.130.877
Total operating expenses 30.085.515 30.562.196 489.944 4.907.883 9,377,202 75,422,740
Operating income (loss) 6.409,313 (14,394,797) (151,307) (1.361.337) (8,303,338) (17.801.466)
Non.operating revenues (expenses):
Operating grants and contributions 74,234 171,984 4,025,597 4,271,815
Interest income 314,016 32,617 20.578 367,211
Insurance reimbursement 240 4,836 250 29.185 34,511
Change in fair value of investments (27,482) (7.852) (580) (4.786) (390) (41.090)
Interest expense (6,215) (3.898) (10,113)
Gain (loss) on disposal of capital assets (10,705) 966 (215.197) (13,074) (238.010)
Total non-operating revenues (expenses) 350,303 196,336 19.998 (223,631 ) 4.041,318 4,384,324
Income (toss) before
contributions and transfers 6,759,616 (14,198.461) (131,309) (1,584.968) (4,262,020) (13,417.142)
Capital grants and contributions 18.030 1,559,991 10,536,612 12.114.633
Transfers in 48,984 18.087,000 1,573,333 4,940,900 24.650.217
Transfers out (702,367) (6.000) (1,338,340) (2,046,707)
Total transfers and contributions (653,383) 18.099.030 3,133,324 14,139,172 34,718.143
Changes in net assets 6.106,233 3,900,569 (131,309) 1,548,356 9.877.152 21.301.001
Net assets - beginning 27,420.550 6,548,974 1,491,344 15,302.803 4,058.028 54,821,699
Net assets - ending $ 33,526,783 $10.449.543 $1,360,035 $16,851,159 $13,935,180 $ 76.122,700
See accompanying independent auditors' report,
123
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRtSE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
1lv[tl
cJ-
13 A
,
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
Cash flows from operating activities:
Cash received for services $ 34.423,628 $ 9,317.521 $ 328.004 $ 3,560,144 $ 1.232.769 $ 48.862.066
Cash received from refundable deposits 524.714 524.714
Cash payments for goods and services (28,095,255) (3.509.065) (411,030) (2,961.587) (8,392.853) (43,369,790)
Cash payments to employees (1.613,301) (19,018,295) (1,059,979) (72.843) (21,764.418)
Cash payments on refundable,deposits (624,104) (7.722) (631.826)
Net cash provided by (used for) operating
activities 4.615.682 (13,209.839) (83.026) (469.144) (7.232.927) (16,379,254)
Cash flows from non~capital financing activities:
Cash received from operating grants 49,299 157.253 4.936.433 5.142.985
Cash transfers from other funds 3.837,445 18.096.920 1.573.333 4.941,534 28,449,232
Cash transfers to other funds (4,489,207) (6,000) (1,338.974) (5,834.181)
Net cash provided by (used for) 000-
capital financing activities (602,463) 18,248,173 1.573.333 8.538.993 27,758.036
Cash flows from capital and related
financing activities:
Receipts from insurance reimbursements 240 4.836 250 29.185 34,511
Proceeds from disposal of capital assets 7.520 15.197 6.800 29,517
Proceeds from capital grants 2.184.153 2.184.153
Payments for capital acquisitions (9.126.367) (859.452) (1,907.027) (1.508.248) (13,401.094)
Principal payments on leases (26.728) (15,670) (42,398)
Interest and fiscal agent fees paid (6.215) (3.898) (10.113)
Net cash provided by (used for) capital
and related financing activities (9.118,607) (872,362) 257.808 (1.472.263) (11,205,424)
Cash flows from investing activities:
Interest on investments 267.767 34.162 23.093 325.022
Change in fair value of investments (27,482) (7,852) (580) (4,786) (390) (41.090)
Net cash provided by (used for) investing activities 240,285 26,310 22,513 (4.786) (390) 283.932
Net increase (decrease) in cash, cash equivalents and investments (4.865,103) 4.192.282 (60.513) 1,357.211 (166.587) 457.290
Cash, cash equivalents and investments, October 1, 2007 23,445.537 1.026,565 450,576 1.743.536 420.643 27.086.857
Cash, cash equivalents and investments, September 30, 2008 $ 18.580,434 1 5,218.847 1 390,063 $ 3,100,747 $ 254,056 $ 27.544,147
Current cash, cash equivalents and investments 118,191,244 1 5,087,330 1 390.063 1 2,874,545 1 254.056 26,797.238
Current cash, cash equivalents and investments. restricted 389.190 131.517 226,202 746.909
Cash, cash equivalents and investments, September 30, 2008 $ 18,580,434 1 5.218.847 $ 390.063 1 3.100.747 $ 254.056 $ 27,544.147
See accompanying independent auditors' report (Continued)
124
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
NONMAJOR ENTERPRISE FUNDS
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
"((/)[01
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Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Nea Enterprise
Disposal Services Water Authority Transit Funds
Operating income (loss) $ 6,409.313 $ (14,394.797) $(151,307) $ (1,361,337) $ (8.303,338) $ (17,801,466)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities
Depreciation expense 503.961 711.073 56,329 831,926 1.027.588 3.130.877
Net changes in assets and liabilities:
Trade receivable (921,096) (30.740) (11.325) 19.831 6,780 (936.550)
Due from other funds 6 (197) 596 (7,485) (7.080)
Due from other governments 566 566
Prepaid costs (50.192) (50.192)
Inventory 57,350 (55.542) 1.808
Accounts payable (139,788) (49.683) 19.217 100.948 44,127 (25.179)
Wages payable 15.721 92.566 4.303 631 113.221
Due to other funds (40.161) 57 692 (420) (39.832)
Due to other governments 136 3,368 44 3.548
Due to individuals 405.846 405.846
Compensated absences 36.929 48.312 4.042 (810) 88.473
Refundable deposits (99,390) (7.722) (107.112)
Unearned revenue (6.233) (6.233)
Landfill post-closure liability (1.149.949) (1,149.949)
Total adjustments (1.793,631) 1.184,958 68,281 892,193 1.070,411 1,422.212
Net cash provided by (used for) operating activities $ 4.615.682 $(13.209.839) $ (83,026) $ (469,144) $ (7.232,927) $ (16,379.254)
Non-cash investing, capital and financing activities:
The nonmajor enterprise funds experienced a non-cash investing loss due to a change in the fair value of non-cash
and cash equivalents as follows.
Solid Waste Disposal
Emergency Medical Services
Goodland Water
Airport Authority
Collier Area Transit
Total
$ (27,482)
(7.852)
(580)
(4.786)
(390)
$ (41.090)
There were non-cash contributions of$1O,096,889 in the Collier Area Transit fund, as assets with a historical cost of
$10,163,338 and accumulated depreciation of $66,449 were transferred in from other funds In addition, assets
assets with a fair value of$488,580 were purchased by the County for $48,857
See accompanying independent auditors' report
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Internal Service Funds
SELF-INSURANCE - To account for tbe self-insurance costs of providing coverage for property,
general and vehicle liability. To account for tbe provisions of health benefits to Board and participating
constitutional officer employees and tbeir dependents. To account for payment of workers'
compensation claims, in lieu of insurance.
SHERIFF'S SELF-INSURANCE - To account for the proVISIons of healtb benefits to Sheriff
employees and their dependents. To account for payment of workers' compensation claims, in lieu of
insurance.
FLEET MANAGEMENT - To account for fuel, oil, lubricants, repairs and maintenance of County
vehicles and the use of certain County owned vehicles by County employees.
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2008
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d--,
Sheriffs
Self- Self- Fleet
Insurance Insurance Management Total
ASSETS
Current assets:
Cash, cash equivalents and investments $33,211,256 $12,199,418 $ 761,440 $46,172,114
Receivables:
Trade, net 384,170 259,786 643,956
Due from other funds 100,000 18,495 118,495
Due from other governments 83,107 83,107
Deposits 512,946 512,946
Inventory 3,655 416,472 420,127
Total current assets 34,112,027 12,559,204 1,279,514 47,950,745
Noncurrent assets:
Capital assets:
Depreciable capital assets, net 279,355 14,109,169 14,388,524
Total noncurrent assets 279,355 14,109,169 14,388,524
Total assets 34,391,382 12,559,204 15,388,683 62,339,269
LIABILITIES
Current liabilities:
Accounts payable 333,258 497,917 831,175
Wages payable 39,860 75,277 115,137
Due to other funds 255 255
Due to other governments 64 64
Self-insurance claims payable 3,458,207 2,094,000 5,552,207
Compensated absences 65,185 97,547 162,732
Total current liabilities 3,896,765 2,094,000 670,805 6,661,570
Noncurrent liabilities:
Self-insurance claims payable 4,733,793 4,733,793
Compensated absences 16,296 24,387 40,683
Net pension obligation 356,111 549,868 905,979
Total noncurrent liabilities 5,106,200 549,868 24,387 5,680,455
Total liabilities 9,002,965 2,643,868 695,192 12,342,025
NET ASSETS
Invested in capital assets, net of related debt 279,355 14,109,169 14,388,524
Unrestricted 25,109,062 9,915,336 584,322 35,608,720
Total net assets $ 25,388,417 $ 9,915,336 $ 14,693,491 $49,997,244
See accompanying independent auditors' report.
128
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COLLIER COUNTY, FLORIDA I 13:1
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET A!jSETS n
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
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COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Sheriffs
Self- Self- Fleet
Insurance Insurance Management Total
Cash flows from operating activities:
Cash received from other funds for services $ 35,304,137 $21,000,000 $ 8,542,232 $ 64,846,369
Cash received from employees for services 6,636,665 6,636,665
Cash received from insurance 3,655,686 1,514 3,657,200
Cash received from other governments for services 464,435 464,435
Cash received from retirees for services 779,625 490,320 1,269,945
Cash payments on behalf of retirees (809,079) (300,671) (1,109,750)
Cash payments for goods and services (39,822,611 ) (15,491,753) (7,075,974) (62,390,338)
Cash payments to employees (1,053.940) (1,949.380) (3,003,320)
Net cash provided by (used for)
operating activities 4,690,483 5,697.896 (17,173) 10,371,206
Cash flows from capital and related
financing activities:
Proceeds from disposal of capital assets 14,564 14,564
Payments for capital acquisitions (64,342) (255,308) (319,650)
Net cash used for capital and related
financing activities (64,342) (240,744) (305,086)
Cash flows from investing activities:
Interest on investments 3,145 218,295 221,440
Change in fair value of investments (50.729) (1,296) (52.025)
Net cash provided by (used for) investing activities (47,584) 218,295 (1,296) 169,415
Net increase (decrease) in cash, cash equivalents
and investments 4,578,557 5,916,191 (259,213) 10,235,535
Cash, cash equivalents and investments, October 1, 2007 28,632,699 6,283,227 1 ,020,653 35,936,579
Cash, cash equivalents and investments, September 30, 2008 $ 33,211 ,256 $12,199,418 $ 761,440 $ 46,172,114
See accompanying independent auditors' report. (Continued)
130
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
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Sheri/f,
Self- Self- Fleet
Insurance Insurance Management Total
Operating income (loss) $ 6,487,718 $ 4.542,224 $ (105,478) $ 10.924,464
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation expense 17,817 349,448 367,265
Net changes in assets and liabilities:
Trade receivable (288,086) (33,196) (321,282)
Due from other funds 1,583 400,000 (9,635) 391,948
Due from other governments (33,789) (33,789)
Deposits (95,208) (95,208)
Inventory (1,295) (44,282) (45,577)
Accounts payable (267,290) (205,212) (472,502)
Wages payable 4,003 16,780 20,783
Due to other funds (15,421) ( 15,421)
Due to other governments 64 64
Self-insurance claims payable (1,524,000) 239,000 (1,285,000)
Compensated absences 14,551 14,931 29,482
Net pension obligation 356,111 549,868 905,979
Total adjustments (1,797,235) 1,155,672 88,305 (553,258)
Net cash provided by (used for)
operating activities $ 4,690,483 $ 5,697,896 $ (17.173) $ 10,371 ,206
Non-cash investing, capital and financing activities:
The internal service funds experienced a non.cash investing loss due to a change in the fair value of non-cash
and cash equivalents as follows:
Self-Insurance
Fleet Management
Total
$
(50,729)
(1,296)
(52,025)
$
There were non-cash contributions of$13,690,992 in the Fleet Management fund, as assets with a historical cost
of$13,792,07] and accumulated depreciation of$101,079 were transferred in from other funds.
See accompanying independent auditors' report.
131
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Fiduciary Funds
CLERK OF COURTS AGENCY FUND - To account for monies held in Trust by the Clerk of the
Circuit Court prior to disbursement.
SHERIFF AGENCY FUND - To account for monies held in a custodial capacity by the Sheriff.
TAX COLLECTOR AGENCY FUND - To account for assets held by the Tax Collector prior to legal
disbursement.
DEPOSITS AGENCY FUND - To account for monies held by the County for businesses and
individuals.
PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND - To account for the receipt
of special assessments and the payment of principal and interest on behalf of assessment holders.
3M()~
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2008
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COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
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Balance Balance
October 1 Additions Deductions September 30
Clerk of Courts Al!encv Fuod
Assets:
Cash, cash equivalents and investments $17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Total assets $17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Liabilities:
Due to other governments $ 1,004,350 $ 10,964,655 $ 10,533,264 $ 1,435,741
Refundable deposits 16,277,706 243,365,557 243,230,838 16,412,425
Total liabilities $17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Sheriff Aeeocv Food
Assets:
Cash, cash equivalents and investments $ 396,490 $ 5,638,970 $ 5,608,955 $ 426,505
Receivable:
Other 133 1,885 133 1,885
Total assets $ 396,623 $ 5,640,855 $ 5,609,088 $ 428,390
Liabilities:
Due to other governments $ 59,132 $ 364,023 $ 352,559 $ 70,596
Due to individuals 337,491 618,463 598,160 357,794
Total liabilities $ 396,623 $ 982,486 $ 950,719 $ 428,390
Tax Collector Al!encv Fund
Assets:
Cash, cash equivalents and investments $ 4,303,742 $1,019,312,011 $ 1,018,687,847 $ 4,927,906
Receivable:
Interest 10,811 10,811
Other 11,101 2,234,409 2,239,733 5,777
Total assets $ 4,325,654 $1,021,546,420 $ 1,020,938,391 $ 4,933,683
Liabilities:
Due to other governments $ 3,202,302 $ 989,848,360 $ 989,581,294 $ 3,469,368
Due to individuals 1,123,352 31,628,385 31,287,422 1,464,315
Total liabilities $ 4,325,654 $1,021,476,745 $ 1,020,868,716 $ 4,933,683
DeDosits Ae-encv Fund
Assets:
Cash, cash equivalents and investments $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Total assets $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Liabilities:
Refundable deposits $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Total liabilities $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
(Continued)
135
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COLLIER COUNTY, FLORIDA 13 A
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
r:J-;
.
Balance Balance
October 1 Additions Deductions September 30
Pine Ridlle and Naoles Production Park Allencv Fund
Assets:
Cash, cash equivalents and investments $ 4,594,257 $ 1,339,651 $ 26,981 $ 5,906,927
Receivables:
Interest 57,550 31,275 57,550 31,275
Other 98,539 34,793 98,539 34,793
Total assets $ 4,750,346 $ 1,405,719 $ 183,070 $ 5,972,995
Liabilities:
Due to special assessment holders $ 4,750,346 $ 1,405,719 $ 183,070 $ 5,972,995
Total liabilities $ 4,750,346 $ 1,405,719 $ 183,070 $ 5,972,995
Total - All A.encv Funds
Assets:
Cash, cash equivalents and investments $31,719,081 $1,281,567,725 $ 1,280,606,248 $ 32,678,806
Receivables:
Interest 68,361 31,275 57,550 31,275
Other 109,773 2,271,087 2,338,272 42,455
Total assets $31,897,215 $1,283,870,087 $ 1,283,002,070 $ 32,752,536
Liabilities:
Due to other governments $ 4,265,784 $1,001,177,038 $ 1,000,467,117 $ 4,975,705
Due to individuals 1,460,843 32,246,848 31,885,582 1,822,109
Refundable deposits 21,420,242 244,310,553 245,749,068 19,981,727
Due to special assessment holders 4,750,346 1,405,719 183,070 5,972,995
Total liabilities $31,897,215 $1,279,140,158 $ 1,278,284,837 $ 32,752,536
See accompanying independent auditors' report.
136
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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
througb 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 higber education in the construction, fmancing and
refinancing of projects.
3froff)1
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COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Collier County Collier County Collier County Collier County
Housing Health Industrial Educational
Finance Facilities Development Facilities
Authority Authority Authority Authority Totals
ASSETS
Cash, cash equivalents and investments $ 313,716 $ 165,781 $ 3,655 $ 18,548 $ 501,700
Total Assets $ 313,716 $ 165,781 $ 3,655 $ 18,548 $ 501,700
NET ASSETS
Net assets - unrestricted $ 313,716 $ 165,781 $ 3,655 $ 18,548 $ 501,700
Total Net Assets $ 313,716 $ 165,781 $ 3,655 $ 18,548 $ 501,700
See accompanying independent auditors' report.
138
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COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Net (Expense)
Revenue and Changes
Program Revenues in Net Assets
Fees, Fines and
Charges for Governmental
Expenses Services Activities
14,]95 $ 8,383 $ (5,812)
32,500 32,500
122,500 93,500 (29,000)
16,788 18,260 1,472
153,483 $ 152,643 (840)
FUNCTIONS/PROGRAMS
Collier County Industrial Development Authority $
Collier County Health Facilities Authority
Collier County Housing Finance Authority
Collier County Educational Facilities Authority
Total $
General revenues:
Interest income
Total general revenues
Change in net assets
Net assets - beginning
Net assets - ending
$
3,641
3,641
2,801
498,899
501,700
See accompanying independent auditor's report.
139
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Statistical Section
(Unaudited)
13 A
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
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the government's
financial performance and wellbeing have changed over time.
Net assets by component
Change in net assets
Governmental activities tax revenues by source
Fund balances of governmental funds
Changes in fund balance of governmental funds
REVENUE CAPACITY
These schedules contain information to help the reader assess the COUtllry's most significant local
revenue source, the Property Tax.
Assessed value and estimated actual value of taxable property
Property Tax Rates - All direct and overlapping governments
Principal Taxpayers County-wide
Property Tax levies and collections
DEBT CAPACITY
These schedules present information to help reader assess the affordability of the County's current
levels of outstanding debt and the County's ability to issue additional debt in the future.
Ratios of outstanding debt by type
Ratios of general bonded debt outstanding
Legal debt margin information
Direct and overlapping governmental activities debt
Pledged-revenue coverage
DEMOGRAPIDC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the rear Utlderstand the
environment within which the County's financial activities take place.
Demographic and economic statistics
Principal employers
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the
information in the County's financial report relates to the services the County provides and the
activities it performs.
Full-time equivalent County employees by function
Operating indicators by function
Capital Asset statistics by function/program
PAGE
142
143
145
146
147
148
149
150
151
152
153
154
154
155
156
157
158
159
160
Sources: Unless otherwise noted, the information in these schedules is derivedfrom the comprehensive annualfinancial reports for the relevant
year. The County implemented GASH 34 for fiscal year 2002, Schedules presenting government-wide information include information beginning
in that fiscal year.
3/l0/df
COLLIER COUNTY, FLORIDA
NET ASSETS BY COMPONENT
LAST SEVEN FISCAL YEARS (I)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
13A
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Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Governmental Activities:
Invested in capital assets, net of related debt $ 1.022,001 $ 871.389 $ 672.186 $ 570.512 $ 500,549 $ 444,703 $ 377,404
Restricted 295,012 244,746 205,403 148.587 142,306 103,280 83,292
Unrestricted 199,031 317,821 318.092 275,438 175,297 104,170 96,360
Total governmental activities net assets $ 1.516,044 $ 1.433,956 $ 1,195.681 $ 994.537 $ 818,152 $ 652,153 $ 557.056
Business.type Activities:
Invested in capital assets, net of related debt $ 658.865 $ 631.491 $ 596,907 $ 543.017 $ 519,478 $ 479,730 $ 401.329
Restricted 30.165 30,746 28.087 21.243 11,642 12,045 9.968
Unrestricted 113,761 83,038 77,206 90,608 77.563 80,307 132.908
Total business.type activities net assets $ 802.791 $ 745,275 $ 702,200 $ 654,868 $ 608,683 $ 572.082 $ 544.205
Primary Government:
Invested in capital assets, net of related debt $ 1,680.866 $ 1.502,880 $ 1,269,093 $ 1.113,529 $ 1.020,027 $ 924,433 $ 778.733
Restricted 325,177 275,492 233.490 169,830 153,948 115.325 93.260
Unrestricted 312,792 400.859 395,298 366,046 252.860 184,477 229,268
Total primary government net assets $ 2,318,835 $ 2,179,231 $ 1.897,881 $ 1,649,405 $1,426.835 $ 1,224,235 $ 1,101,261
(1) Only seven fiscal years are available due to implementation ofGASB 34 in fiscal year 2002.
142
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COLLIER COUNTY, FLORIDA 13
CHANGE IN NET ASSETS A
LAST SEVEN FISCAL YEARS (1)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Expenses
Governmental activities:
General government $ 112,720 $ 110,814 $ 100,219 $ 85,182 $ 81,150 $ 67,885 $ 66,635
Public safety 183,288 182,821 187,945 140,761 133,930 114,207 103,718
Transportation 65,980 54,198 46,266 43,714 33,970 35,255 28,718
Culture and recreation 43,435 41,595 34,348 30,329 25,405 25,640 31,809
Other activities 49,135 44,500 35,838 31,713 24,110 24,528 29,288
Interest on long-term debt 21,446 21,779 25,841 14,507 8,566 5,697 3,109
Total governmental activities expenses 476,004 455,707 430,457 346,206 307,131 273,212 263,277
Business-type activities:
Water and Sewer 85,503 89,617 76,307 63,759 60,590 57,223 51,547
Solid Waste 30,024 32,033 32,920 24,420 23,036 20,317 21,210
Airport Authority 5,082 4,296 3,978 3,625 3,346 3,027 3,020
Mass Transit 9,419 7,761 6,000
Emergency Medical Services 30,160 27,305 22,541 20,887 19,114 18,279 14,653
Total business-type activities expenses 160,188 161,012 141,746 112,691 106,086 98,846 90,430
T ota] primary government expenses $ 636,192 $ 616,719 $ 572,203 $ 458,897 $ 413,217 $ 372,058 $ 353,707
Program Revenues
Governmental activities:
Charges for services:
General government $ 36,468 $ 46,380 $ 47,178 $ 45,433 $ 37,967 $ 26,188 $ 20,418
Public safety 12,545 14,293 20,547 18,392 15,127 16,811 15,205
Transportation 3,936 1,902 1,733 667 959 3,423 639
Culture and recreation 8,429 7,494 5,878 5,050 4,416 4,151 3,637
Other activities 7,541 2,395 2,938 2,869 2,114 2,556 3,268
Operating Grants and Contributions 20,202 27,309 43,062 15,151 19,759 10,008 12,531
Capital Grants and Contributions 52,303 122,327 99,068 104,711 97,370 55,979 35,332
Total governmental activities program revenues 141,424 222, I 00 220,404 192,273 177,712 119,116 91,030
Business-type activities:
Charges for services:
Water and Sewer 100,030 92,091 81,088 73,686 65,152 58,955 50,455
Solid Waste 36,495 33,864 33,713 23,661 21,938 20,698 21,121
Airport Authority 3,547 2,860 2,459 2,288 1,878 1,580 1,425
Mass Transit 1,074 1,153 814
Emergency Medical Services 16,167 14,823 14,326 12,855 10,904 7,912 6,783
Operating Grants and Contributions 4,393 2,657 3,138 165 31 59 116
Capital Grants and Contributions 23,333 32,647 36,273 28,260 32,040 26,325 31,458
Total business-type activities program revenues 185,039 180,095 171,811 140,915 131,943 115,529 111,358
Total primary government program revenues 326,463 402,195 392,215 333,188 309,655 234,645 202,388
Net (expense)/revenue:
Governmental activities (334,580) (233,607) (210,053) (153,933) (129,419) (154,096) (172,247)
Business-type activities 24,851 19,083 30,065 28,224 25,857 16,683 20,928
Total primary government net expense $(309,729) $ (214,524) $ (179,988) $ (125,709) $ (103,562) $ (137,413) $ (151,319)
143
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COLLIER COUNTY, FLORIDA
CHANGE IN NET ASSETS
LAST SEVEN FISCAL YEARS (CONTINUED)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
General Revenues and Other Changes
in Net Assets
Governmental Activities:
Taxes
Property taxes $ 327,245 $ 345,054 $ 293,240 $ 237,452 $ 213,353 $ 174,291 $ 147,753
Gas taxes 18,860 19,598 20,028 20,127 19,887 17,731 17,333
Sales taxes 30,004 32,568 34,671 32,949 31,323 27,846 26,611
Tourist taxes 14,796 14,228 13,629 10,484 9,720 8,377 8,184
Other taxes 4,051 8,754 9,142 7,089 5,796 5,604 4,893
State revenue sharing 8,976 9,652 9,410 8,555 7,973 7,190 6,811
Interest income 34,533 43,109 38,455 16,732 12,216 10,693 16,253
Change in fair value of investments (803) 5,822 (2,067) (2,780) (5,813) 476 (2,111)
Miscellaneous 10,642 8,223 10,261 10,671 8,491 3,525 6,409
Special item M bond expense (3,288)
Transfers, net (28,348) (15,126) (13,229) (10,584) (7,529) (6,540) (15,703)
Total governmental activities 416,668 471,882 413,540 330,695 295,417 249,193 216,433
Business-type Activities:
Interest income 5,928 6,907 4,139 5,610 4,348 3,903 9,288
Change in fair value of investments (212) 1,339 (324) (463) (1,417) 154 (1,415)
Miscellaneous 77 620 285 597 799
Transfers, net 28,348 15,126 13,229 10,584 7,529 6,540 15,703
Total business-type activities 34,141 23,992 17 ,044 15,731 10,745 11,194 24,375
Total primary government $ 450,809 $ 495,874 $ 430,584 $ 346,426 $ 306,162 $ 260,387 $ 240,808
Change in Net Assets
Governmental activities $ 82,088 $ 238,275 $ 203,487 $ 176,762 $ 165,998 $ 95,097 $ 44,186
Business-type activities 58,992 43,075 47,109 43,955 36,602 27,877 45,303
Total primary government $ 141,080 $ 281,350 $ 250,596 $ 220,717 $ 202,600 $ 122,974 $ 89,489
(l) Only seven fiscal years are available due to implementation of GASB 34 in fiscal year 2002.
144
COLLIER COUNTY, FLORIDA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST SEVEN FISCAL YEARS
3flDf61 ~
13A
(amounts expressed in thousands)
(unaudited)
Fiscal Property Gas Sales Tourist Other
Year Tax Tax Tax Tax Taxes Total
2002 $ 147,753 $ 17,333 $ 26,611 $ 8,184 $ 4,893 $ 204,774
2003 174,291 17,731 27,846 8,377 5,604 233,849
2004 213,353 19,887 31,323 9,720 5,796 280,079
2005 237,452 20,127 32,949 10,484 7,089 308,101
2006 293,240 20,028 34,671 13,629 9,142 370,710
2007 345,054 19,598 32,568 14,228 8,754 420,202
2008 327,245 18,860 30,004 14,796 4,051 394,956
145
COLLIER COUNTY, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
5frOf()Q 13 A tL~
Fiscal Year
2007
2006
2005
2004
2003
2002
2008
General fund
Reserved
Unreserved
Total general fund
$ 6,602
61,953
$ 68,555
$ 3,706
77,619
$ 81,325
$ 963
65,938
$ 66,901
$ 363
58,891
$ 59,254
$ 468
52,836
$ 53,304
$ 894
40,537
$ 41,431
$
980
27,812
28,792
$
All other governmental funds
Reserved $ 142,728 $ 294,512 $ 197,303 $ 212,521 $ 131,531 $ 79,643 $ 33,547
Unreserved, reported in:
Special revenue funds 122,043 118,150 112,875 105,721 72,943 48,558 57,317
Debt service funds 1,951 2,621 5,634 3,891 4,389 4,405 4,653
Capital projects funds 160,736 107,888 256,348 125,476 18,252 76,513 23,923
Total all other governmental funds $ 427,458 $ 523,171 $ 572,160 $ 447,609 $227,115 $209,119 $ 119,440
146
".~
.
COLLIER COUNTY, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
3 rl~(ft (jL
13A
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Revenues:
Taxes $ 357,656 $ 380.983 $ 327,605 $ 268,536 $ 242,562 $ 200,398 $172,991
Licenses and permits 17,373 15.537 23.630 21,227 18.071 13,377 12.962
Intergovernmental 77,452 93,186 113.128 74,537 71.554 64,352 57,485
Charges for services 40.699 46,127 43.083 41,451 31.383 27,444 22.082
Fines and forfeitures 3.786 4,081 4,835 4,407 6,848 6.854 6,112
Interest income 34,331 42.711 38,174 16.658 12.146 10,648 16,137
Change in fair value of investments (751) 5.551 (1,992) (2,683) (5,541) 476 (1.995)
Impact fees 36.679 84,792 70,202 38,766 15,653 24,841 34.065
Special assessments 2,942 3.240 1,264 3.680 2,643 2,390 2,516
Miscellaneous 10.667 7,337 9.074 9,922 8.490 7,713 5.607
Total revenues 580,834 683.545 629,003 476.501 403,809 358,493 327,962
Expenditures:
Current:
General government 96.898 96,483 83,821 73.992 67.831 65.094 61,137
Public safety 175,743 168,602 177.933 135.110 124,276 116,572 104,234
Physical environment 9,314 11.760 9,799 11.644 5,958 9.528 12.056
Transportation 48,253 39.105 33.735 32,911 24,273 28,116 20.295
Economic environment 13.479 11,690 9,333 5.981 6,439 6.945 6,632
Human services 12,855 12.237 11.819 11,810 9.576 9,721 8,343
Culture and recreation 36,456 35,325 29.172 26,238 23,145 22,449 22,543
Debt service:
Principal 43.080 36.144 20.977 14,374 14.247 8.585 29,243
Interest and other fiscal charges 21,981 22,468 22.569 14,304 10,049 6.925 4,856
Capital outlay 285,809 290.581 255.569 174,640 170,145 78.201 96.952
Total expenditures 743.868 724.395 654,727 501.004 455.939 352,136 366.291
Excess (deficit) of revenues
over (under) expenditures (163.034) (40.850) (25,724) (24,503) (52.130) 6,357 (38,329)
Other financing sources (uses):
Bonds issued 6.215 296.270 49,360 102.125 47,430
Premiums on bonds issued 31 16,785 4,703
Payment to refunding escrow (4,500) (60.027) (5.079) (3,657)
Capital leases 1,048 16 28
Loans issued 69,391 22,390 40,466 8,000 45.245 8,250
Sale of capital assets 245 365 940
Insurance proceeds 208 885 792
Transfers in 144.824 166,113 154.580 97.632 84,508 57.020 37.685
Transfers out (163.075) (181.471) (168,006) (107.728) (92.037) (64,227) (53.517)
Total other financing sources (uses) 57,839 3.782 29,820 250.948 81,997 95,964 39.876
Special item - bond expenditure (3.288)
Net change in fund balances $ (108,483) $ (37.068) $ 4.096 $ 226,445 $ 29.867 $ 102,321 $ 1.547
Debt service as a percentage of non capital
expenditures 14.20% 13.5J% 10.91% 8.79% 8.50% 5.66% 12.66%
147
f.\
3/to[ f)1
COLLIER COUNTY, FLORIDA 13 A
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY .
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
~
"
Total Estimated Assessed
Fiscal Year Centrally Less: Total Taxable Direct Actual Value! as a
Ended Residential Personal Assessed Tax Assessed Tax Taxable Percentage of
September 30, Property Property Property Exempt Value Rate Value Actual Value
2002 $ 36,089,299 $ 1,651,435 $ 110 $4,345,843 $ 33,395,001 13.0569 $ 37,740,844 100%
2003 42,635,220 1,770,370 113 4,915,279 39,490,424 12.7941 44,405,703 100%
2004 49,712,793 1,802,265 117 5,529,447 45,985,728 12.6552 51,515,175 100%
2005 55,370,248 1,820,777 127 5,928,339 51,262,813 12.3402 57,191,152 100%
2006 66,375,040 1,956,646 143 6,890,007 61,441,822 12.2303 68,331,829 100%
2007 82,909,061 2,156,726 202 8,023,791 77,042,198 11.4780 85,065,989 100%
2008 88,819,491 2,321,048 226 8,575,874 82,564,891 10.7171 91,140,765 100%
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.
lThe basis of assessed value required by the state is 100% of actual value.
Source: Property Appraiser Recapitulation Report
148
COLLIER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
LAST SEVEN FISCAL YEARS
(unaudited)
3fol'1 tJ-;
13 A
Collier County Other
Special Debt County
Fiscal General Revenue Service School Independent
Year Fund Funds Funds Total District Districts Total
2002 3.8772 0.6670 0.0256 4.5698 7.1370 1.3 813 13.0881
2003 3.8772 0.6767 0.0215 4.5754 6.9110 1.3554 12.8418
2004 3.8772 0.9226 0.0000 4.7998 6.5240 1.3562 12.6800
2005 3.8772 0.9177 0.0000 4.7949 6.2200 1.3562 12.3711
2006 3.8772 0.9161 0.1500 4.9433 5.9730 1.3423 12.2586
2007 3.5790 0.8470 0.2226 4.6486 5.5250 1.3403 11.5139
2008 3.1469 0.7362 0.2233 4.1064 5.3574 1.2792 10.7430
Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes
based on those assessments are levied according to the tax rate in effect that tax year and become due on
November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year
ending during the following calendar year.
Sources: Property Appraiser Recapitulation Report.
Collier County 2009 Annual Budget
149
, '\\ WDfoq
13A .ft
COLLIER COUNTY, FLORIDA
PRINCIPAL TAXPAYERS COUNTY-WIDE
2008 TAX ROLL
(amounts expressed in thousands)
(unaudited)
2008 1999
Property Percent of Property Percent of
Taxes Total Taxes Total
Owner/Taxpayer Levied Rank Taxes Levied Levied Rank Taxes Levied
Florida Power & Light Company $ 2,417,987 0.27% $ 1,715,062 0.50%
HHR Naples LLC 1,665,595 2 0.19% 0.00%
I Embarq Corporation 1,299,028 3 0.15% 1,589,067 2 OA7%
City National Bank of Miami 983,659 4 0.11% 992,040 5 0.29%
CC-Naples, Inc. 953,906 5 0.11% 0.00%
Collier HMA, Inc. 952,328 6 0.11% 0.00%
CoastIand Center Joint Venture 923,227 7 0.10% 1,114,788 3 0.33%
Naples HMA, Inc. 920,995 8 0.10%
The Moorings, Inc. 765,781 9 0.09%
Wal-Mart Stores East LP 680,599 10 0.08%
HMC BN L TD Partnership 0.00% 1,031,270 4 0.30%
WCI Communties, Inc. 0.00% 616,229 6 0.18%
Collier Development Corporation 0.00% 596,246 7 0.17%
Marco Island Utilities 0.00% 556,778 8 0.16%
Calumet Florida, Inc. 0.00% 495,604 9 0.15%
Lutgen TR, Raymond L 0.00% 486,529 10 0.14%
Total $ 11,563,107 1.31% $ 9,193,614 2.70%
Total Property Taxes Levied $ 884,859,641 $ 340,819,438
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.
\ Embarq was Sprint in 1998
150
4"
cI-
COLLIER COUNTY, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
13 A
i
Fiscal Year Total Tax Collected within the
Ended Levy for Fiscal Year of the Levy Collections in Total Collections to Date
Septemher 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy
2002 $ 157,744 $ 146,033 92.6% $ 178 $ 146,211 92.69%
2003 185,633 174,116 93.8% 136 174,252 93.87%
2004 225,773 213,009 94.3% 325 213,334 94.49%
2005 251,772 237,184 94.2% 240 237,424 94.30%
2006 307,068 293,129 95.5% 98 293,227 95.49%
2007 362,568 344,945 95.1% 109 345,054 95.17%
2008 343,906 325,722 94.7% 1,522 327,244 95.16%
Source: Tax Collector Annual Report
151
?J/~[() ~
COLLIER COUNTY, FLORIDA
RA nos OF OUTSTANDING DEBT BY TYPE
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
13 A
.~
Governmental Activities Business-type Activities
General Loans and Total Percentage
Fiscal Obligation Revenue Loans Capital Revenue Notes Capital Primary of Personal Pec
Year Bonds Bonds Payable Leases Bonds Payable Leases Government Income 1 C . I
aplta
2002 $ 795 $ 85,185 $ 9,256 $ 791 $ 78,725 $ 40,369 $ 327 $ 215,448 2.11% 848
2003 176,775 8,486 279 71,505 55,335 165 312,545 2.86% 1,179
2004 208,980 51,649 108 66,860 74,545 73 402,215 3.47% 1,458
2005 32,815 444,375 14,030 82 62,515 113,067 25 666,909 5.61% 2,331
2006 29,530 429,735 51,546 1,029 58,060 124,629 694,529 5.46% 2,341
2007 25,815 409,620 57,331 897 163,630 106,932 68 764,293 5.02% 2,483
2008 27,830 394,145 103,461 752 158,885 103,903 618 789,594 4.39% 2,521
I See the Schedule of Demographic and Economic Statistics for personal income and population data.
152
COLLIER COUNTY, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST SEVEN FISCAL YEARS
(unaudited)
3(t1tft ~
13 A
Percentage of
Estimated
General Less: Amounts Actual Taxable
Fiscal Obligation Available in Debt Value I of Per
Year Bonds Service Fund Total Property Capita2
2002 $ 795,000 $ 76,461 $ 718,539 0.002% 3
2003
2004
2005 32,815,000 21,935 32,793,065 0.064% 107
2006 29,530,000 22,576 29,507,424 0.048% 90
2007 25,815,000 4,312 25,810,688 0.034% 77
2008 27,830,000 374,496 27,455,504 0.033% 82
lSee the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2See the Schedule of Demographic and Economic Statistics population data.
153
~1'0b4
AlA
~
COLLIER COUNTY, FLORIDA
...,.."
:k,~,
LEGAL DEBT MARGIN INFORMATION
AS OF SEPTEMBER 30,2008
(unaudited)
The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2008
(unaudited)
Governmental Entity
Net Debt
Outstanding (1)
Percentage
Applicable to This
Governmental Unit
Direct Debt:
Debt repaid with property taxes: County
$ 38,295,425
100.00%
Overlapping:
Overlapping debt for governmental entities within Collier County is not presented
(1) Excludes amounts available in Debt Service Funds for payment of interest and principal.
154
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COLLIER COUNTY, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
, -
,ij
Per Capita
Fiscal Personal Personal Median School Unemployment
Year Population( 1) Income(2) 1ncome(2) Age(3 ) Enrollment( 4) Rate( 5)
2002 264,475 $ 10,197,520 $ 40,121 40.5 37,110 4.2%
2003 284,918 10,940,352 41,269 44.1 38,196 4.7%
2004 292,466 11,601,373 42,050 45.2 40,416 3.9%
2005 306,186 11,878,015 41,513 45.6 41,232 3.6%
2006 326,658 12,711,343 42,846 44.7 43,000 2.7%
2007 333,858 15,236,905 49,492 44.5 42,722 3.5%
2008 332,854 17,990,169 57,446 44.8 42,711 5.5%
Sources: (1) www.fred.1abormarketinfo.com
(2) University of Florida, Bureau of Economic and Business Research,
Per Capita and Total Personal Income revised by Department of Commerce, 2006
(3) Florida Statistical Abstract(Table 1.51) 2007
(4) Collier County School Board, based on full time equivalent enrollment
(5) www.fred.labormarketinfo.com
156
,
,
COLLIER COUNTY, FLORIDA
PRINCIPAL EMPLOYERS
(Unaudited)
3/r;/11
13 A
rt-
2008 1999
Percent of Percent of
Total County Total County
Employer Employees Rank Employment Employees Rank Employment
Collier County Public Schools 6,685 5.46% 3,956 4.75%
NCH Healthcare System 3,007 2 2.46% 2,752 2 3.30%
Collier County Government 2,984 3 2.44% 2,602 3 3.12%
Publix Supermarkets 2,214 4 1.81% 2,155 4 2.59%
Wal-Mart 1,547 5 1.26% 390 10 0.47%
Collier County Sheriffs Office 1,273 6 1.04% 953 5 1.14%
Marriott 743 7 0.61% 862 6 1.03%
Fifth Third Bank 733 8 0.60% 0.00%
Naples Grande Resort and Club 605 9 0.49% 612 9 0.73%
Barron Collier Partnership 600 10 0.49% 340 0.41%
Winn Dixie Stores, Inc. 779 7 0.93%
Ritz Carlton Hotel 776 8 0.93%
Other employers 101,978 83.34% 67,177 80.59%
Total 122,369 100.00% 83,354 100.00%
Sources: Economic Development Council Collier County, 2007
1999 Collier County Adopted Budget
Florida Department of Labor & Employment; Bureau of Labor Market Infonnation ES-202 report for 1999 and 2008.
157
J{~01
COLLIER COUNTY, FLORIDA 13 A
FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION
LAST FIVE FISCAL YEARS*
(unaudited)
d--
,
'!
Fiscal Year
2008 2007 2006 2005 2004
Function:
General government 1,127 1,300 1,264 1,225 1,126
Public safety 1,118 1,117 1,144 1,000 987
Physical environment 65 73 67 57 58
Transportation 254 268 244 265 253
Economic environment 22 18 16 15 15
Hwnan services 47 52 53 55 48
Culture and recreation 335 397 389 337 335
Water and Sewer 309 336 312 297 288
Solid Waste 22 23 27 26 23
Airport Authority 14 15 13 13 14
Emergency Medical Services 168 188 167 158 161
Total 3,481 3,787 3,696 3,448 3,308
* Information prior to fiscal year 2004 is not available.
158
-"..
COLLIER COUNTY, FLORIDA
OPERATING INDICA TORS BY FUNCTION
LAST SEVEN FISCAL YEARS
(unaudited)
4{O(61 cI--
13 A
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Function:
Police:
Physical arrests 20,226 22,028 25,657 17,214 14,788 13,506 11,423
Parking violations 843 1,753 2,124 1,372 2,115 1,468 1,678
Traffic violations 49,831 64,372 58,242 56,056 50,883 39,869 39,342
Fire:
Fires reported 586 590 654 353 262 153 153
Emergency responses 1,213 1,148 1,539 1,652 1,056 868 668
Number of calls answered 1,840 1,779 2,235 2,049 1,360 1,072 858
Transportation:
Collier Area Transit ridership 1,166,358 1,180,147 1,052,536 951,601 627,824 475,820 324,037
Street resurfacing (lane miles) 52 44 47 22 53 70 81
Culture and recreation:
Beach parking stickers issued 80,542 76,344 54,074 57,875 42,000 30,000 20,000
Library circulation 3,000,394 2,916,523 2,722,539 2,853,926 2,877 ,230 2,788,262 2,485,314
Water:
New connections 553 1,593 1,897 2,597 2,910 1,592 2,923
Wastewater:
Average daily sewage treatment 15,558,000 15,583,055 17,310,468 17,095,890 16,526,027 15,616,438 15,342,466
(thousands of gallons)
lSee the Schedule of Demographic and Economic Statistics on page 133 for personal income and population data.
159
COLLIER COUNTY, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST SEVEN FISCAL YEARS
(unaudited)
2(ro{o Cf
13A
~
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Function:
Public Safety:
Police Stations 7 7 7 7 7 7 7
Patrol Units 275 275 272 260 253 256 257
Fire:
Fire stations 2 2 2 2 2 2 2
Highways and streets:
Streets (miles) 1.184 1,147 1,147 1,149 1,121 1,210 1,463
Streetlights 3.767 3.987 3,620 3.327 3.075 2.758 2.378
Traffic signals 224 216 200 198 196 193 181
Culture and recreation:
Parks acreage 1,440 1,436 1.527 1.486 1,396 1,549 1.546
Parks 56 55 47 47 46 46 44
Swimming Pools 7 7 7 3 2 2 2
TelU1isCourts 45 45 45 43 43 43 43
Community Centers 8 8 8 7 6 6 6
Libraries 9 9 9 9 9 9 9
Number of volumes in libraries 647,484 769.717 651,592 556,737 583.684 539.887 456.233
Water:
Number of water and sewer customers 51.136 59,257 57,664 55.767 53,170 50.260 48.668
Water mains (miles) 870 860 682 685 668 646 639
Maximum daily capacity (per 1,000 gallons) 30.956,261 36.116.725 34,673.000 31.940.118 31,342,779 34.243.600 31.902,378
Wastewater:
Sanitary sewers (miles) 1,053 871 798 802 784 763 755
Primary and Secondary drainage facilities 303 303 303 311 311 311 311
160
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13 A
Single Audit/Federal and State Schedule
of Financial Assistance
The Single AuditlFederal and State schedule of financial assistance section presents Grants
compliance reports filed by Collier County with Federal govemment and State government,
respectively.
THIS PAGE INTENTIONALLY LEFT BLANK
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Ernst & YounQ LLP
100 NorttH.'dst nlird Avenue
Suite 700
For-t Lauderdale, Florida 33301
Tel: -t 1 954 888 8000
Fax: +1954 888 8160
www.ey.com
3((oID9
13 A
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Report ofIndependent Certified Public Accountants on
Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing Standards
Members of the Board of County Commissioners
Collier County, Florida
We have audited the financial statements of the governmental activIties, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information for Collier County, Florida (the County) as of and for the
year ended September 30, 2008, which collectively comprise the County's basic financial
statements and have issued our report thereon dated February 26, 2009. We conducted our audit
in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness ofthe County's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over financial reporting that might be significant deficiencies or material
weaknesses. However, as discussed below, we identified certain deficiencies in internal control
over financial reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the
entity's internal control. We consider the deficiency described in the accompanying schedule of
findings and questioned costs as item 2008-0 to be a significant deficiency in internal control
over financial reporting.
0902-1032557
163
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A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the entity's internal control. Our consideration of internal
control over financial reporting was for the limited purpose described in the first paragraph of
this section and would not necessarily identifY all deficiencies in internal control that might be
significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. However, we do not believe that
the significant deficiency described above is a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit and, accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
The County's response to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the County's response and,
accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the Board of County
Commissioners, others within the entity, the Auditor General of the State of Florida, federal and
state awarding agencies and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
~THJ.J.P
February 26, 2009
0902-1032557
164
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Ernst & YounQ lLP
100 Northeast Third Avenue
Suite 7()O
For't l.auder'dale, Florida 3330:1
Tel: +195488B8000
Fax: +1 9~)4 888 8160
www.ev.com
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13 A
Report ofIndependent Certified Public Accountants on Compliance
With Requirements Applicable to Each Major Federal Program and
State Project and on Internal Control Over Compliance in Accordance
With OMB Circular A-133, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules ofthe Auditor General
Members of the Board of County Commissioners
Collier County, Florida
Compliance
We have audited the compliance of Collier County, Florida (the County), with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-133 CompUance Supplement, and the requirements described in the Executive Office
of the Governor's State Projects Compliance Supplement, that are applicable to each of its major
federal programs and state projects for the year ended September 30, 2008. The County's major
federal programs and state projects are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs. Compliance with the requirements
of laws, regulations, contracts, and grants applicable to each of its major federal programs and
state projects is the responsibility of the County's management. Our responsibility is to express
an opinion on the County's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular
A-l33, Audits of States, Local Governments, and Non-Profit Organizations; Section 215.97,
Florida Statutes (Section 215.97); and Chapter 10.550, Rules of the Auditor General (Chapter
10.550), State of Florida. Those standards, OMB Circular A-133, Section 215.97 and Chapter
10.550 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program or state project occurred. An audit includes
examining, on a test basis, evidence about the County's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination of the County's compliance with those requirements.
0902-]032557
165
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As described in item 2008-1 in the accompanying schedule of findings and questioned costs, the
County did not comply with requirements regarding allowable costs that are applicable to its
Community Development Block Grant (CDBG) Program and Home Investment Partnerships
Program (HOME) Program. As described in item 2008-1 and 2008-5 in the accompanying
schedule of findings and questioned costs, the County did not comply with requirements
regarding allowable costs and reporting that are applicable to its State Housing Initiative
Partnership (SHIP) Program. Further, as described in item 2008-2 in the accompanying schedule
of findings and questioned costs, the County did not comply with requirements regarding
reporting that are applicable to its State Criminal Alien Assistance Program (SCAAP).
Compliance with such requirements is necessary, in our opinion, for the County to comply with
requirements applicable to these programs.
1n our opinion, except for the noncompliance described in the preceding paragraph, the County
complied, in all material respects, with the requirements referred to above that are applicable to
each of its major federal programs and state projects for the year ended September 30, 2008. The
results of our auditing procedures also disclosed an instance of noncompliance with those
requirements that is required to be reported in accordance with OMB Circular A-l33,
Section 215.97, or Chapter 10.550, and which is described in the accompanying schedule of
findings and questioned costs as item 2008-3.
Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to federal programs and state projects. In planning and performing our audit, we
considered the County's internal control over compliance with requirements that could have a
direct and material effect on a major federal program or state project in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance, but not for the
purpose of expressing an opinion on 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 would not necessarily identify all deficiencies in the County's
internal control that might be significant deficiencies or material weaknesses as defined below.
However, as discussed below, we identified certain deficiencies in internal control over
compliance that we consider to be significant deficiencies and others that we consider to be
material weaknesses.
0902-1032557
166
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A control deficiency in an entity's internal control over compliance exists when the design or
operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect noncompliance with a type of
compliance requirement of a federal program or state project on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects
the entity's ability to administer a federal program or state project such that there is more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal
program or state project that is more than inconsequential will not be prevented or detected by
the entity's internal control. We consider the deficiencies in internal control over compliance
described in the accompanying schedule of findings and questioned costs as items 2008-1
through 2008-6 to be significant deficiencies.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement ofa federal program or state project will not be prevented or detected by the entity's
internal control. Of the significant deficiencies in internal control over compliance described in
the accompanying schedule of findings and questioned costs, we consider items 2008-1 and
2008-5 to be material weaknesses.
The County's response to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the County's response and,
accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the Board of County
Commissioners, others within the entity, the Auditor General of the State of Florida, federal and
state awarding agencies, and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
~-fnLL'P
February 26, 2009
0902-1032557
167
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Collier County, Florida
Schedule of Expenditures of
Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Throu~h Grantor Program Title
Denartment of Af!riculture
Direct Programs:
Rural Business~Cooperative Service:
Rural Business Enterprise Grant
Indirect Programs:
Florida Department of Education:
Summer Food Service Program for Children
Florida Department of Agriculture and Consumer Services:
Cooperative Foresty Assistance
Cooperative Foresty Assistance
TotalCFDA
Total Department of Agriculture
Denartment of Commerce
Direct Programs
National Fish and Wildlife Foundation:
Educational Partnership Program / Sea Turtle Disorientation
Total Department of Commerce
Denartment of HousinI! and Urban Develonment
Direct Programs:
Community Planning and Development:
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Total CFDA
Emergency Shelter Grants Program (ESG)
Supportive Housing Program (Cae)
Supportive Housing Program (CoC)
Supportive Housing Program (CoC)
Supportive Housing Program (Coe)
Total CFDA
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program (HOME)
Total CFDA
CFDA #/
CSFA #
Grant/Contract Number
Expenditures
10.769
Collier County
$
400,896
10.559
04-0804
365,288
10.664
]0.664
Isles of Capri Fire District
Ochopee Fire District
2,375
5,220
7,595
773,778
11.481
2006-0114-004
123,450
123,450
14.218 B-03-UC-12-0016 180,380
14.218 B-04-UC- ]2-00 16 126,960
14.218 B-05-UC-12-0016 98,122
14.218 B-06-UC-12-0016 196,678
14.2]8 B-07-UC-12-0016 1,031,856
14.218 B-08-UC-12-0016 146,537
1,780,533
14.231 S-07-UC-12-0024 98,012
14.235 FLl4B50-6001 111,262
14.235 FLl4B50-6002 101,576
14.235 FLl4B50-6003 72,415
14.235 FLl4B60-6003 33,401
318,654
14.239 M-06-UC-12-0217 252,772
14.239 M-07-UC-12-0217 214,927
14,239 M-08-UC-12-0217 26,783
494,482
(Continued)
See accompanying notes to the schedule of expenditures of federal awards and state projects.
168
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State GrantorlPass- Throu~h Grantor Program Title
Indirect Programs:
Department of Community Affairs:
Community Development Block Grant / State's Program (DR!)
Community Development Block Grant / State's Program (DRl)
Total CFDA
Total Department of Housing and Urban Development
DeDartment of the Interior
Direct Programs:
Fish and Wildlife Service:
Partners for Fish and Wildlife / Conservation Collier Land
Habitat Restoration Project
Partners for Fish and Wildlife J Derelict Vessel Removal
Total CFDA
Indirect Programs:
Florida Department of Environmental Protection:
Clean Vessel Act
Clean Vessel Act
Total CFDA
Total Department of the Interior
Deoartment ofTreasurv
Direct Programs:
Department of Treasury
Federal Equitable Sharing
Total Department of Treasury
Denartment of Justice
Direct Programs:
Office of Justice Programs:
Federal Equitable Sharing
Services for Trafficking Victims / Anti Trafficking Task Fon.:e
State Criminal Alien Assistance Program (SCAAP)
Public Safety Partnership and Community Policing Grants /
COPS Secure Our Schools
Edward Byrne Memorial Justice Assistance Grant Program
Edward Byrne Memorial Justice Assistance Grant Program
Total CFDA
169
CFDA #/
CSFA #
14.228
14.228
15.631
15.631
15.616
15.616
21 ,unknown
Grant/Contract Number
07DB-3V-09-21-01-Z01
08DB-D3-09-2 1 -0 I-AOJ
401815J021
401816J091
LE636
LE637
Collier County
?[rrJ I rIf rt-
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Expenditures
$
748,497
26,332
774,829
3,466,510
25,600
30,000
55,600
23,212
22,868
46,080
101,680
104,804
104,804
16.unkown Collier County 36,227
16.320 2005-VT-BX-0002 140,593
16.606 2008-AP-BX-0316 411,848
16.710 2007-CK-WX-0089 20,409
16738 2005-CJ-BX-0753 131.069
16.738 2006-DJ-BX-0474 38,410
169,479
(Continued)
Collier County, Florida
?JJlb[ o~
Schedule of Expenditures of
Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State GrantorlPass-Through Grantor Program Title
Office on Violence Against Women:
Supervised Visitation, Safe Havens for Children
Indirect Programs:
Florida Department of Juvenile Justice
Juvenile Accountability Block Grants / Peer Mediation Program
Florida Office of Attorney General:
Crime Victim Assistance (VOCA)
Florida Department of Law Enforcement:
Edward Byrne Memorial Formula Grant I Sexual Predator
Community Prosecution and Project Safe Neighborhoods I
Anti-Gang Initiative
Florida Department of Children and Families:
Violence Against Women Formula Grants / STOP
Violence Against Women Fonnula Grants I STOP
Total CFDA
Total Department of Justice
Deoartment of TranSDortation
Direct Programs:
Federal Aviation Administration:
Airport Improvement / lmk Master Plan Update
Airport Improvement / Marco Master Plan Study Update
Airport Improvement / Marco Apron Phase I & II
Airport Improvement / Marco Phase II Surcharge/Construction
Airport Improvement / Marco South Taxiway & Apron Design
Total CFDA
Federal Transit Administration"
Federal Transit Cluster:
Federal Transit-Capital Investment Grants / Section 5309
Federal Transit-Capital Investment Grants / Section 5309
Federal Transit-Capital Investment Grants / Section 5309
Total CFDA
Federal Transit-Formula Grants / Section 5307
Federal Transit-Formula Grants / Section 5307
Federal Transit-Formula Grants / Section 5307
Federal Transit-Formula Grants / Section 5307
Federal Transit-Formula Grants / Section 5307
Total CFDA
Total Federal Transit Cluster
170
CFDA #/
CSFA #
16.527
Grant/Contract Number
2007-CW-AX-0007
13A
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Expenditures
$
99,575
16.523 SB-I05 32,245
16.575 V7022 140,395
16.579 2008JAGCCOLLlQ9170 135,330
16.609 2008PMAGCOLLlR6005 16,755
16.588 LNOl6 123,480
16.588 LN816 34,848
158,328
1,361,183
20.106
20.106
20.106
20.106
20.106
20.500
20.500
20.500
20.507
20.507
20.507
20.507
20.507
3-12-0031-003-2006
3- 12-0 142-002-2006
3-12-0142-003-2006
3- 12-0142-004-2007
3-12-0142-005-2008
FL-03-0264-00
FL-03-0297-00
FL-03-0312-00
FL-90-X508-00
FL-90-X553-00
FL-90-X580-00
FL-90-X645-00
FL-90-X665-00
7,500
51,205
4,843
397,545
23,721
484,814
13,165
102,986
129,127
245,278
212,815
1,910
86,870
1,360,158
214,276
1,876,029
2,121,307
(Continued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
Indirect Programs:
Florida Department of Transportation:
Highway Planning and Construction / Lighting
Highway Planning and Construction / Pedestrian Bridge
Highway Planning and Construction
Highway Planning and Construction I Sidewalks & Lighting
Highway Planning and Construction I Bicycle/Pedestrian Bridges
Highway Planning and Construction
Highway Planning and Construction / Paved Shoulders
Highway Planning and Construction / Bike Lanerrrail Study
Highway Planning and Construction I Sidewalks
Total CFDA
Federal Transit-Metropolitan Planning Grants I Section 5303
Formula Grants for Other Than Urbanized Areas / lmk Circulator
Capital Assistance Program for Elderly Persons and Persons
with Disabilities I Section 5310
Capital Assistance Program for Elderly Persons and Persons
with Disabilities I Section 5310
Total CFDA
Total Department of :rransportation
General Service Administration
Indirect Programs:
Florida Department of State'
Voter Education Election Reform
Total General Service Administration
Environmental Protection Al!encv
Indirect Programs:
Florida Department of Environmental Protection:
Capitalization Grants for Clean Water State Revolving Funds
Capitalization Grants for Clean Water State Revolving Funds
Total CFDA
Capitalization Grants For Drinking Water State Revolving Funds
Capitalization Grants For Drinking Water State Revolving Funds
Capitalization Grants For Drinking Water State Revolving Funds
Capitalization Grants For Drinking Water State Revolving Funds
Total CFDA
Total Environmental Protection Agency
171
20.205 412559 $ 19,445
20.205 412627 70,674
20.205 414327 337,320
20.205 415566 632,000
20.205 415590 270,161
20.205 416342 94,863
20.205 417350 203,866
20.205 417940 307,567
20.205 420887 200,000
2,135,897
20.505 AM356 62,294
20.509 AM 357 202,068
20.513 FL- I 6-003 I 146,439
20.513 FL-16-0032 293,277
439,716
5,446,096
CFDA #/
CSFA #
39.011
66.458
66.458
66.468
66.468
66.468
66.468
Grant/Contract Number
Collier County
WW597180
WWG 12059715L 03
DWIII1010
DWIIII 020
DWIIII030
DWII11040
410r OJ
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Expenditures
75,367
75,367
237,761
699,429
937,190
1,701,447
159,619
3,200,000
3,200,000
8,26 I ,066
9,198,256
(Continued)
Collier County, Florida
Schedule of Expenditures of
Federal Awards and State Projects
3/to(o~
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
Election Assistance Commission lEAC)
Indirect Programs:
Division of Elections:
Help America Vote Act Requirements Payments / Poll Workers
Recruitment
Help America Vote Act Requirements Payments / V otef
Education
Help America Vote Act Requirements Payments / Voting
Systems Assistance (HA VA 2002)
Total Election Assistance Commission (EAC)
DeDartment of Health and Human Services
Indirect Programs:
Florida Department of Elder Affairs - Area Agency on Aging for
Southwest Florida, lne:
Aging Cluster:
Special Programs for the Aging ~ Title III, Part B - Grants for
Supportive Services and Senior Centers
Special Programs for the Aging - Title Ill, Part B - Grants for
Supportive Services and Senior Centers
Total CFDA
Special Programs for the Aging-Title 1II, Part C-I-Nutrition
Services
Special Programs for the Aging-Title III, Part C-2-Nutrition
Services
Special Programs for the Aging-Title III, Part C~ I-Nutrition
Services
Special Programs for the Aging-Title Ill, Part C-2-Nutrition
Services
Total CFDA
Nutrition Services lncentive Program, C-I
Nutrition Services Incentive Program, C-2
Total CFDA
Total Aging Cluster'
National Family Caregiver Support - Title III-E
National Family Caregiver Support - Title III-E
Total CFDA
Florida Department of Revenue:
Child Support Enforcement
Child Support Enforcement
Total CFDA
CFDA #/
CSFA #
90.401
90.401
90401
93.044
93.044
Grant/Contract Number
Collier County
Collier County
Collier County
OAA 203.08
OAA 20307
93.045 OAA 203.07
93.045 OAA 203.07
93.045 OAA 20308
93045 OAA 203.08
93.053 NSIP 203.08
93.053 NSIP 203.08
93.052
93.052
93563
93.563
172
OAA 203.07
OAA 203.08
CC311
CD311
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...
Expenditures
$
28,010
16,169
154,776
198,955
76,703
113,120
189,823
10,501
8,405
138,613
108,307
265,826
7,418
9,095
16,514
472,162
10,659
8,561
19,221
223,974
30,031
254,004
(Continued)
Collier County, Florida
3ft~~ d-
13 A
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State GrantorlPass-Through Grantor Program Title
CFDA #/
CSFA #
Grant/Contract Number
Expenditures
Division of Elections:
Voting Access for Individuals with Disabilities-Grants to States
93.617
Collier County
$
13,323
758,710
Total Department of Health and Human Services
COfDucation for National and Community Service
Direct Programs:
Retired and Senior Volunteer Program
94.002
06SRSFL004
67,313
67,313
Total Corporation for National and Community Service
Deosrtment of Homeland Security
Direct Programs
Assistance to Firefighters Grant / Isle of Capri
97.044
EMW-2006-FO-04104
1,873
Indirect Programs:
Florida Department of Law Enforcement:
State Domestic Preparedness Equipment Support Program /
H.S. Issue 2
Total Department of Homeland Security
97.004 2007SHSPCOLL2Q5003 9,507
97.067 07-DS-5N-09-21-01-116 6,188
97.067 07-DS-5N-09-2 I -01-210 13,956
97.067 2008SHSPCOLUS4011 19,648
39,791
97036 Collier County 269,554
97039 07-EC-33-09-21-0 1-486 1,639,223
97039 08HM-60-09-21-0 1-0 17 11,875
97.039 08HM-60-09-21-0 I-OS 5 16,800
1,667,898
97.042 08-80-24-09-21-01-318 42,045
2,030,669
$ 23,706,771
(Continued)
Homeland Security Grant Program / H.S. Issue 21
Homeland Security Grant Program
Homeland Security Grant Program / H,S. Issue 20
Total CFDA
Florida Department of Community Affairs:
Disaster Grants - Public Assistance / Tropical Storm Fay
Hazard Mitigation Grant
Hazard Mitigation Grant
Hazard Mitigation Grant
Total CFDA
Emergency Management Performance Grant
TOTAL EXPENDITURES OF FEDERAL AWARDS
173
1J/ro f o~
~
Collier County, Florida
13 A
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'.
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 200S
Federal or State GrantorlPass-Through Grantor Program Title
CFDA #/
CSFA #
Grant/Contract Number
Expenditures
Florida Executive Office of the Governor
Office of Tourism, Trade and Economic Development:
Total Florida Department of State and Secretary of State
31.030 OT05-136 $ 319,422
319,422
37,003 05CO! 576,570
37.017 A8119 104,943
37050 1GS-07 54,984
37050 IGS-09 19,250
74,234
37.066 4600001144 97,250
852,997
45.020 06-PLC-04 300,000
45.020 07-PLC-04 300,000
600,000
45,030 05-ST-12 810
45.030 06-ST-12 142,62S
45.030 07-ST-12 24,993
45,030 OS-ST-12 33,016
201,447
45042 08-CLlC-03 9,239
S10,687
Rural Infrastructure, Immokalee Airport
Total Florida Executive Office of the Governor
Florida Deoartment of Environmental Protection
Beach Erosion Control Program
Florida Recreation Development Assistance Program
Innovative Waste Reduction and Recycling Grants
Innovative Waste Reduction and Recycling Grants
Total CSF A
Water Protection and Sustainability Program
Total Florida Department of Environmental Protection
Florida DeDartment of State and Secretary of State
Public Library Construction Program
Public Library Construction Program
Total CSF A
State Aid to Libraries
State Aid to Libraries
State Aid to Libraries
State Aid to Libraries
Total CSF A
Community Libraries in Caring
Florida DeDartment ofCommunitv Affairs
Local Emergency Management and Mitigation Initiatives
52.010
07 -EC-33-09-21-0 1-486
102,934
1,510,094
8,400
Emergency Management Programs
52.008
08-BG-24-09-21-01-318
Emergency Management Projects
52.023
OSCP-04-09-21-0 I -126
Total Florida Department of Community Affairs
1,621,428
Florida Housinl! Finance Corooration
State Housing Initiatives Partnership Program (SHIP)
State Housing Initiatives Partnership Program (SHIP)
State Housing Initiatives Partnership Program (SHIP)
State Housing Initiatives Partnership Program (SHIP)
52.901
52.901
52.901
52.901
FY06
FY 07
FY 08
FY09
48,15S
1,893,340
2,955,243
647,669
5,544,41 I
Total Florida Housing Finance Corporation
(Continued)
174
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State GrantorlPass~Through Grantor Program Title
Florida Deoartment of TranSDortation
Commission for the Transportation Disadvantaged (eTD)
Trip and Equipment Grant Program
Commission for the Transportation Disadvantaged (CTD)
Trip and Equipment Grant Program
Total CSF A
Commission for the Transportation Disadvantaged (CTD)
Planning Grant Program
Commission for the Transportation Disadvantaged (CTD)
Planning Grant Program
Total CSF A
Aviation Development Grants / Marco Mitigation
Aviation Development Grants I Marco Land Acquisition
Aviation Development Grants I Immokalee Master Plan Study
Aviation Development Grants (Marco Master Plan Study
A viatioD Development Grants / Marco Mitigation Phase II
Aviation Development Grants I Everglades Taxiway
Aviation Development Grants I Marco Taxiway "C" Phase I
Aviation Development Grants I Imk Emergency Generator
Aviation Development Grants I Marco Apron Phase I & II
Total CSF A
County Incentive Grant Program I PD&E Study SR82
Public Transit Block Grant Program
Public Transit Block Grant Program
Total CSF A
Public Transit Service Development Program I Red Route
Toll Facilites Revolving Trust Fund I Jolly Bridge Feasability Study
Transportation Regional Incentive Program I CR951 GO to Imk
Total Florida Department of Transportation
Florida Denartment of Children and Families
Homeless Challenge Grant I CoC
Total Florida Department of Children and Families
Florida Denartment of Health
County Grant Awards I Emergency Medical Services
County Grant Awards I Emergency Medical Services
Total Florida Department of Health
Florida Denartment of Elder Affairs
Area Agency on Aging for Southwest Florida, Inc:
Home Care for the Elderly (HCE)
Home Care for the Elderly (HCE)
Total CSFA
175
CFDA #/
CSFA #
~!r"(fJ'
Grant/Contract Number
55.001
AOT48
55.001
AP621
55002 AOR72
55.002 AP647
55.004 A1526
55.004 AI935
55.004 ANF46
55.004 ANF50
55.004 ANHI7
55.004 ANHI9
55.004 AOF09
55.004 AOFIO
55.004 AOK80
55.008 419950-2.22-01
55.010 AM350
55.010 AOW93
55.012 AOK37
55.019 ANY74
55.026 420991-1-58-01
60.014
HFZ23
64.005
64.005
C6011
C7011
65001
65.001
HCE 203.08
HCE 31 1/312203.07
13 A
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I
Expenditures
$ 467,749
151,813
619,562
10,738
9,121
19,859
167,155
44,542
220
1,347
10,462
3,367
10,917
30,860
127
268,998
102,839
160,619
234,500
395,119
106,655
225,363
1,751,687
3,490,081
85,221
85,221
130,578
41,406
171,984
169
4,007
4,176
(Continued)
Collier County, Florida
3{(o(o1
13 ~
ct-
Schedule of Expenditures of
Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2008
CFDA #/
Federal or State Grantor/Pass- Through Grantor Program Title CSFA # Grant/Contract Number Expenditures
Alzheimer's Respite Services (ADI) 65.004 ADl203.07 $ 94,600
Alzheimer's Respite Services (ADI) 65.004 ADl203.08 17,863
Alzheimer's Respite Services (ADI) 65.004 ADl203.06 14,720
Total CSF A 127,183
Community Care for the Elderly (eeE) 65.010 CCE 203.07 579,273
Community Care for the Elderly (eeE) 65.010 CCE 203.08 40,673
Total CSF A 619,946
Total Florida Department of Elder Affairs 751,304
Florida Fish and Wildlife Conservation Commission
Florida Boating Improvement Program 77.006 06163 20,000
Total Florida Fish and Wildlife Conservation Commission 20,000
Florida Denartment of Juvenile Justice
Delinquency Prevention / TRAC 80.029 DP-576 89,692
Delinquency Prevention I FTRAC 80.029 GS-120 69,021
Total Florida Department of Juvenile Justice 158,713
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 13,826,248
176
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Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects
Year Ended September 30, 2008
1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and State Projects (the
Schedule) includes the Federal and State grant activity for Collier County, Florida (the County)
and is presented on the modified accrual basis of accounting for expenditures accounted for in
the governmental funds and the accrual basis of accounting for expenditures in proprietary funds.
Under the modified accrual basis, revenue is recognized if it is both measurable and available for
use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if
measurable. Under the accrual basis, expenditures are recognized in the period liabilities are
incurred.
The information in the Schedule is presented in accordance with the requirements of U.S. Office
of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, and Section 215.97, Florida Statutes. Therefore, some amounts
presented in the Schedule may differ from amounts presented, or used in the preparation of, the
basic financial statements for the fiscal year ended September 30, 2008.
2. State Revolving Funds
Reconciliation of State Revolving Funds (CFDA# 66.458 and CFDA# 66.468) expended to cash
received during fiscal year 2008:
Expenses reported on Single Audit Schedule
Reimbursements received for prior year expenses
Retainage timing differences, net
Less current year expenses that have not been reimbursed
Total State Revolving Fund reimbursements received
$ 9,198,256
788,200
52,208
(8,290,529)
$ 1,748,135
3. State Infrastructure Bank Loan
The County received a $12,000,000 State Infrastructure Bank Loan from the Florida Department
of Transportation in fiscal year 2008 for construction of the 1-75/1mmokalee Road interchange.
The Florida Department of Transportation included this project with their concurrent widening of
1-75 and retained the loan proceeds to fund the project. Accordingly, the County's expenditures
for purposes of reporting on the Schedule consist of loan repayments only as no proceeds were
received under the loan and no project expenditures were incurred or paid directly by the County.
0902-1032557
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Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects (continued)
3. State Infrastructure Bank Loan (continued)
As of September 30, 2008, the County recognized $12,000,000 in loan proceeds and construction
in process in the basic financial statements. However, no amounts have been reflected in the
Schedule as no loan repayment expenditures have been made during fiscal year 2008. The
repayment schedule for this loan is as follows:
Payment Date Principal Interest Total
10/1/2008 $ 1,957,377 $ 82,623 $ 2,040,0000
10/1/2009 1,839,148 200,852 2,040,0000
10/1/2010 1,875,930 164,070 2,040,000
10/1/2011 1,913,449 126,551 2,040,000
10/1/2012 4,414,096 88,282 4,502,378
$ 12,000,000 $ 662,378 $ 12,662,378
4, Subgrant Awards
The following subgrant awards were made by Collier County during fiscal year 2008:
Program Title
Federal:
Community Development Block Grant
Community Development Block Grant / State's
Program
Emergency Shelter Grant
Supportive Housing Program
Home Investment Partnerships Program
State:
State Housing lnitiatives Partnership Program
Homeless Challenge Grant
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CFDAlCSF A
Number
Subgrant
Amount
14.218
1,209,862
14.228
14.231
14.235
14.239
448,025
98,012
316,163
461,595
52.901
60.014
181,350
85,221
Collier County, Florida
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Notes to the Schedule of Expenditures of Federal
Awards and State Projects (continued)
5. Contingency
The grant revenue amounts received are subject to audit and adjustment. If any expenditures or
expenses are disallowed by the grantor agencies as a result of such an audit, any claim for
reimbursement to the grantor agencies would become a liability of the County. In the opinion of
management, all grant expenditures are in compliance with the terms of the grant agreements and
applicable federal and state laws and regulations.
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Collier County, Florida
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2008
Part I-Summary of Auditor's Results
Financial Statements Section
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Federal Awards and State Projects Section
lnternal control over major programs:
Material weakness( es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesses?
Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required to be
reported in accordance with section .510(a) ofOMB
Circular A-B3, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules ofthe Auditor General, State
of Florida?
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180
Unqualified
Yes
X No
3(ro(o1 ~
13 A
X Yes
None reported
Yes
X No
X Yes
No
X Yes None reported
Qualified for the Community
Development Block Grant Program
(CFDA# 14.218), the Home Investment
Partnerships Program (CFDA# 14.239),
the State Criminal Alien Assistance
Program (CFDA# 16.606), and the
State Housing Initiatives Partnership
Program (CSFA# 52.901); and
Unqualified for all other major
programs
X Yes
No
3!{OrO~
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"
'}
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
ldentification of major federal
programs and state projects:
Federal Programs
CFDA Number
14.218
14.239
14.228
16.606
20.205
20.500/20.507
66.468
97.039
State Projects
CSFA Number
45.020
52.901
52.010
Dollar threshold used to distinguish
between Type A and Type B programs:
. Federal Programs
. State Projects
Auditee qualified as low-risk auditee?
0902~]032557
Federal Al!:encv/Name of Federal Prol!:ram
U.S. Department of Housing and Urban Development:
Community Development Block Grant Program (CDBG)
Home Investment Partnerships Program (HOME)
Community Development Block Grant / State's
Program (DR!)
U.S. Department of Justice:
State Criminal Alien Assistance Program (SCAAP)
U.S. Department of Transportation:
Highway Planning and Construction
Federal Transit Cluster
U.S. Environmental Protection Agency:
Capitalization Grants For Drinking Water State
Revolving Funds
U,S. Department of Homeland Security:
Hazard Mitigation Grant
State Al!:encv/Name of State Proiect
Florida Department of State and Secretary of State:
Public Library Construction Program
Florida Housing Finance Corporation:
State Housing Initiatives Partnership Program
(SHIP)
Florida Department of Community Affairs:
Local Emergency Management and Mitigation
Initiatives
$ 711,203
$ 414,787
Yes
X No
181
Collier County, Florida
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Schedule of Findings and Questioned Costs (continued)
Part II-Financial Statement Findings Section
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts,
violations of provisions of contracts and grant agreements, and abuse related to the financial
statements for which Government Auditing Standards require reporting.
Finding 2008-0
Financial Reporting
Condition
In connection with our audit we noted a financial reporting difference that required an audit
adjustment to restate the fiscal year 2008 beginning net assets for the County Water and Sewer
enterprise fund and the entity-wide business-type activities by approximately $1.5 million relatec
to planning costs that had been inappropriately capitalized in prior periods. During the 2003
fiscal year end close process management comprehensively evaluated costs capitalized as work
in process through fiscal year 2007 and determined that planning costs that could no, be
reasonably associated with specific assets should not have been capitalized.
This misstatement resulted from financial reporting deficiencies related to the capitalization
process that had been noted in prior audit reports. The County has multiple departments building
and incurring costs that can be capitalized and costs that are operating in nature. As such, it is
critical that the County continue to improve financial reporting controls in order to ensure costs
are not inappropriately capitalized.
Recommendation
We recognize the County has put some controls in place around the capitalization of costs and
the review of these capitalizations. We recommend that management continue to review and
improve its control and monitoring activities related to its capital assets and that such
enhancements also involve other county departments that are vested with the responsibility of
administering capital assets.
Management's Response and Corrective Action Plan
Management concurs with this finding and is committed to the further enhancement of its
capitalization procedures, particularly as they relate to construction work in process. The
County's procedures, put into place as a result of the fiscal year 2007 audit, identified and
addressed the issue discussed above for all county departments that administer capital assets.
0902-1032557
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Part III-Federal Awards and State Projects
Findings and Questioned Costs Section
This section identifies the audit findings required to be reported by Circular A-133
section .5l0(a), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor
General, State of Florida, such as material weaknesses, significant deficiencies, and material
instances of noncompliance, including questioned costs, as well as any abuse findings involving
federal awards or state projects that are material to a major program.
Finding 2008-1
Federal/State Program Information
Federal Agency: US Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) - CFDA No. 14.239
Cornmunity Development Block Program (CDBG) - CFDA No. 14.218
State Agency: Florida Housing Finance Corporation
State Housing lnitiatives Partnership Program (SHIP) - CSF A No. 52.901
Criteria
Allowable Costs: Compensation for personnel services rendered in connection with Federal
awards must be documented and supported as described in OMB Circular A-87, Cost Principles
for State, Local and Indian Tribal Governments (A-87). Additionally, pursuant to the SHIP
Program Manual, administrative costs for the SHIP state program should also be in conformance
with A-87. According to A-87, the standards regarding time distribution are in addition to the
payroll documentation and require the following:
. Charges to Federal awards for salaries and wages, whether treated as direct or indirect
costs, will be based on payrolls documented in accordance with the generally accepted
practice of the governmental unit and approved by responsible official(s) of the
governmental unit.
. Where employees are expected to work solely on a single Federal award or cost
objective, charges for their salaries and wages will be supported by periodic certifications
that the employees worked solely on the program for the period covered by the
certification. These certifications will be prepared at least semi-annually and will be
signed by the employee or supervisory official having first-hand knowledge of the work
performed by the employee.
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Collier County, Florida
" ,
:?M~~
13A
'IL
Schedule of Findings and Questioned Costs (continued)
. Where employees work on multiple activities or cost objectives, a distribution of their
salaries or wages will be supported by personnel activity reports or equivalent
documentation which meets the following standards (unless a statistical system or other
substitute system has been approved by the cognizant Federal agency):
a) must reflect an after-the-fact distribution ofthe actual activity of each employee,
b) must account for the total activity for which each employee is compensated,
c) must be prepared at least monthly and must coincide with one or more pay periods,
and
d) must be signed by the employee.
e) Budget estimates or other distribution percentages determined before the services are
performed do not qualify as support for charges to Federal awards but may be used
for interim accounting purposes.
Condition/Context
We noted that for the majority of fiscal year 2008, the County's documentation suppor'.mg
payroll allocations for employees that work on multiple grants did not meet federal standards as
described in OMB Circular A-87 above. The County has used a Personnel Activity Report
(PAR) to allocate payroll salaries for employees who work on multiple activities. These reports
are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the
employees are expected to work on a grant. The PAR does not show the total activity for which
an employee is compensated and does not require the employee's signature.
The County's Department of Housing and Human Services (the department responsible for the
administration of the HUD grants) initiated a timesheet process in fiscal year 2006 whereby
employees in the department indicate the projects (HOME, SHIP, or CDBG) to which their time
relates each week. These timesheets are signed by the employees and supervisors and kept in the
department for internal control purposes. For the majority of fiscal year 2008, these timesheets
were not provided to the County's payroll department to adjust the allocation of payroll costs
from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an
"after the fact" accounting based on actual activity.
Questioned Costs
Total salaries and related costs are summarized as follows:
HOME (CFDA # 14.239)
CDBG (CFDA # 14.218)
SH1P (CSFA # 52.901)
$ 75,066
$ 373,204
$ 220,576
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Collier County, Florida
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f
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
The PARs and time sheets used do not meet the requirements of OMB Circular A-87 with respect
to the documentation supporting the allocation of salaries and related costs for the majority of
fiscal year 2008. The payroll charged to a grant was based on the PAR, or budgeted amount, and
there was no process in place to compare the PAR percentage used by the payroll department to
allocate costs during the majority of the year to the actual time incurred by the employee based
on the timesheets. Additionally, PAR reports do not include the employee's signature and are
completed annually; however, for employees who work solely on one grant, certification forms
are required to be completed at least semi-annually.
Recommendation
We recommend that the County continue to use the time sheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each timesheet. In addition, the County
should implement a process to provide the timesheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the-fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to the actual amount (based on the time sheets) should be made, Alternatively, the payroll
department could charge payroll costs to the grants based on actual timesheets submitted weekly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
period,
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Views of Responsible Officials and Planned Corrective Action
This finding has been resolved effective July 1, 2008. All grant staff are required to complete bi-
weekly timesheets indicating the amount of hours spent on each grant. This time sheet is signed
by the employee and the employee's supervisor. Journal entries are then made by fiscal staff to
charge actual time and effort worked to the appropriate grant. In an effort to mitigate this finding
even further, effective January 1,2009, the Human Resources department will process bi-weekly
time and effect entries for all Housing and Human Services grant staff. Staff will continue to
complete their bi-weekly timesheets. The timesheets will be sent to Human Resources to enter
the actual time into SAP prior to the payroll actually posting to SAP. This will allow for actual
time spent to be charged directly to the appropriate grant in SAP, thereby eliminating the need to
process journal entries at a later date.
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Collier County, Florida
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13A
Schedule of Findings and Questioned Costs (continued)
Finding 2008-2
Federal Program Information
U.S. Department of Justice
State Criminal Alien Assistance Program (SCAAP) -- CFDA No. 16.606
Criteria
Reporting: The County applied for the fiscal year 2007 SCAAP grant and received the award
funds during fiscal year 2008. The fiscal year 2007 SCAAP reporting period is from July 1,2005
through June 30, 2006. Applicants provide correctional officer staffing and salary costs, the total
of all inmate days, and details about eligible inmates housed in their correctional facilities during
this l2-month reporting period. Using financial data supplied on the application, including each
applicant's annual correctional officer salary costs, the award amount is determined pursuant to
an established formula.
The "FY 2007 SCAAP Guidelines" indicates the following with respect to the "Correctional
Officer Salary Calculation:"
"Salary information reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
definition. The reported sum should total the jurisdiction's actual salary expenditures for the
reporting period, not an estimate or average. Correctional officer salary costs may include
premium pay for specialized service, shift differential pay, and fixed-pay increases for time
in service. It may also include overtime required by negotiated contract, statute, or regulation
such as union agreements, contractual obligations, and required post staffing minimums."
In the "FY 2005 SCAAP Guidelines," the last sentence above made reference to benefits and
stated that correctional officer salary costs "may also include employee benefits and overtime
required by negotiated contract, statute, or regulation (e.g., union agreements, contractual
obligations, required post staffing minimums, etc). Office of Management and Budget (OMB)
Circular A-87 (www.whitehouse.gov/omb/circulars/a087/toc.html) provides general guidance on
how benefits are defined for units of government." However, the FY 2006 and FY 2007 SCAAP
Guidelines omitted this reference and do not provide any mention of benefits being a qualifying
officer salary cost.
As noted in our prior year finding number 2007-07 in the accompanying "Schedule of Prior
Findings," we contacted the Department of Justice (DOJ) in the prior year for clarification based
on the salary definition in the FY 2006 SCAAP award and were informed that "only actual salary
costs, regular salary or overtime required by either contractual agreement or written policy, were
allowable costs for the FY 2006 SCAAP applications," There was no change in the salary
definition from the FY 2006 SCAAP award to the FY 2007 SCAAP award as noted above.
0902-]032557
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Collier County, Florida
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Schedule of Findings and Questioned Costs (continued)
Condition/Context
In addition to overtime which appears to be allowable based on the information stated above, the
County included wage benefits (i.e, incentives, training costs, retirement, group life and health
insurance, and workers compensation) totaling $6.5 million in the calculation of total
correctional salaries reported in the SCAAP grant application for the FY 2007 SCAAP grant.
Also, the number of certified correctional officers employed during the reporting period reported
in the application of 321 was overstated by 65 due to vacant positions being erroneously
included in the amount submitted in the application.
Questioned Costs
Undeterminable
Cause
We were informed by representatives of the Collier County Sheriff's Office (Sheriff) that in
connection with their FY 2005 SCAAP grant application they verbally communicated with the
head of SCAAP in Washington D.C. who stated that benefits were an allowable salary cost, and
that the rules had been recently amended to provide for the inclusion of overtime and benefits
which were previously not allowable. Additionally, the Sheriff provided documentation
indicating that beginning with the FY 2005 SCAAP grant, the Sheriff began including allowed
overtime as well as benefits and they so informed the DOl via an electronic submission of an
explanation for the increase in salary costs from the prior year's application which exceeded
15%. The application for the FY 2005 SCAAP grant was accepted by the DOl. There is no
documentation in the SCAAP guidelines and related materials of the change in rules as described
with respect to the FY 2006 SCAAP grant.
Effect
The award amount received for the FY 2007 SCAAP grant would have been impacted by the
amount of benefits included in the salary cost total reported on the grant application.
Recommendation
We understand from the Sheriff s personnel that benefits were appropriately excluded from the
FY 2008 SCAAP award application. In the future, we recommend that the Sheriff review
program guidelines and contact the grantor agency if reporting criteria are not clearly stated or if
clarification is needed in interpreting information contained in the program guidelines. Written
documentation from the grantor agency should be retained to support any such correspondence.
Additionally, a thorough review of future applications should be made in order to detect potential
errors such as with respect to the number of correctional officer positions reported as noted
above.
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Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials and Planned Corrective Action
As stated in the recommendation, the calculation was changed for the FY2008 application. We
concur with this recommendation to contact the grantor agency in writing, if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines. We do believe, having dealt with this grant for many years, that there have
been years in which the criteria for calculation could be interpreted differently by different
parties. Documentation has not always been clear in establishing guidelines.
Finding 2008-3
Federal Program Information
Federal Agency/Program:
U.S. Department of Housing and Urban Development (HUD): Community Development Block
Grant / State's Program (DRI) - CFDA No. 14.228
U.S. Department of Transportation: Highway Planning and Construction Federal
Transit Cluster - CFDA No. 20.500/20.507
Criteria
Procurement, Suspension and Debarment: Non-Federal entities are prohibited from contracting
with or making subawards under covered transactions to parties that are suspended or debarred
or whose principals are suspended or debarred, All nonprocurement transactions (i.e., subawards
to subrecipients), irrespective of award amount, are considered covered transactions. When a
non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal
entity must verify that the entity is not suspended or debarred or otherwise excluded. This
verification may be accomplished by checking the Excluded Parties List System (EPLS)
maintained by the General Services Administration (GSA), collecting a certification from the
entity, or adding a clause or condition to the covered transaction with that entity.
Condition/Context
Although the County indicated that its practice is to check the EPLS system, no documentation
evidencing that it had checked the EPLS was maintained, and a certification from the entity was
not collected or clause or condition included in the agreements, as applicable, for certain sample
transactions selected for testing.
Questioned Costs
N/A
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Schedule of Findings and Questioned Costs (continued)
Cause/Effect
lnternal controls with respect to suspension and debarment were not operating effectively as no
documentation was maintained indicating that the EPLS was checked for the selected contract
vendors or subrecipients, as applicable. Additionally, there was no evidence that the County had
obtained a certification from the entity or added a clause or condition to the contract with the
entity, as applicable. Therefore, we could not verify whether the County met its requirement to
verify that the entities were not suspended or debarred or otherwise excluded.
Recommendation
The County should perform the required verification by checking the EPLS (and documenting
evidence of the verification, when it was performed and by whom), collecting a certification
from the entity, or adding a clause or condition to the contract with that entity in accordance with
the Federal requirements.
Views of Responsible Officials and Planned Corrective Action
Management concurs with this finding.
While the Department of Housing and Human Services (HHS) has always checked vendors
against the EPLS listing; this check did not include non-profit subrecipients. As of December
2008, HHS now requires current audit reports and debarment certification letters for all
subrecipients as part of the grant application submission process. Once awards are made, the
assigned Grant Coordinator is responsible for checking all subrecipients, vendors and contractors
against the EPLS listing. Screen prints of the EPLS listing are made to prove verification and are
included in the file, Debarment and audit reports have also been included in the Master File
Checklist which is included in the file folder and reviewed by the Grants Manager,
The Transportation Division has started a new procedure during FY09 where all grant related
purchase orders will be approved by the Grants Coordinator. At the time of review for approval,
the Grants Coordinator performs verification that the vendor has not been suspended or debarred
or otherwise excluded at the EPLS website. The verification is printed and maintained in the
grant procurement file. In addition, current procedures include federal clause language and a
written certification for all federal transit grant procurements over $50,000.
Other steps are taken by the Purchasing Department at the time of advertisement of bids and
requests for proposals that include review of each project to determine if grant funding is
involved and whether there are specific compliance issues related to debarment. Forms are
provided to vendors requiring they certify they are not on the Excluded Parties List.
Furthermore, departments managing grants have been provided a link on the Purchasing
Department website to the EPLS website so they can complete their own verification.
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Schedule of Findings and Questioned Costs (continued)
Finding 2008-4
Federal Program Information
U.S. Environmental Protection Agency
Capitalization Grants For Drinking Water State Revolving Funds (SRF) - CFDA No, 66.468
Criteria
Allowable Costs: Effective internal controls over the approval of costs charged to the federal
program are required to be in place.
Condition/Context
We reviewed all of the invoices supporting the loan expenditures reported and noted two
invoices for consulting services dated in August 2008 totaling $12,942 included in the August
28, 2008 disbursement request that had not been reviewed and approved by the related Project
Manager prior to seeking reimbursement under the loan program. We did not identify any
discrepancies or exceptions in our compliance testing.
Questioned Costs
N/A
Cause/Effect
The invoices had not yet been entered into the general ledger system or paid at the time that they
were submitted for reimbursement. Per review of the invoice, we noted that the charges related
to allowable costs under the terms of the loan program, However, a control deficiency exists as
there was no evidence of review and approval of the invoices for allowability prior to being
charged to the loan program.
Recommendation
We recommend that all invoices be properly reviewed and approved to ensure that they are
allowable costs prior to being charged to the loan program.
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Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials and Planned Corrective Action
Public Utilities initiated a procedure for grants in December 2008 that now includes adding the
Accounting Technician's name to the SRF transmittal sheet. The Accounting Technician verifies
whether all the invoices are properly approved and are paid. After this approval, it goes to the
Project Manager, Director and the Administrator for approval of the disbursement request.
Finding 2008-5
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
Criteria
Reporting:
. In accordance with Section 420.9075(10), Florida Statutes, each county or eligible
municipality shall submit to the Corporation by September 15 of each year a report of its
affordable housing programs and accomplishments through June 30, immediately
preceding submittal of the report.
. Annual reports for the Closeout Fiscal Year (2005/2006), lnterim Fiscal Year 2
(2006/2007), and Interim Fiscal year 3 (2007/2008) (the Annual Report) must be
included in the submission to the Corporation.
. The local SHIP administrator's tracking system and annual reports must exactly match
the information recorded in the local city or county's general ledger,
. SHIP administrators, therefore, are required to regularly reconcile their tracking system
with the local finance department's general ledger. They should meet with the director of
their finance department to create a process that will ensure compliance with the single
audit act.
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validate the amount of expenditures
and program income reported in the Annual Report.
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Schedule of Findings and Questioned Costs (continued)
Questioned Costs
Unknown
Cause/Effect
The financial information submitted in the annual statutory reports did not agree to and was not
reconciled with the general ledger. This could result in incorrect and/or inconsistent information
between the reports filed and the underlying financial records and indicates that the County may
not be in compliance with the provisions of the SHIP Program Manual requiring that amounts
reported in the Annual Report match the amounts reported in the general ledger. Internal controls
with respect to reporting were not operating effectively.
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being filed
with the State.
Views of Responsible Officials and Planned Corrective Action
The HHS staff performs a reconciliation of SHIP transactions monthly to ensure that the Annual
SHIP report tracks to the SHIP annual report. This procedure was implemented after the last
audit. The SHIP grant support specialist runs a report at the end of each month and reconciles
those transactions to the activity in the SH1P spreadsheet. These reports are maintained
throughout the year and are expected to greatly improve staff s ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
The Department of Housing and Human Services recognizes the importance of reconciling
statutory reports, internal staff reports, and the general ledger. Procedures were implemented
following the FY07 audit. While these procedures greatly improved the accuracy and
accountability of the statutory and internal staff reports, they did not account for the point-in-
time nature of the statutory reports.
To effectively control for, and document, the complete reconciliation of the statutory reports and
general ledger, the Department of Housing and Human Services will produce a "screen shot"
from within the general ledger software (SAP) to be included with the statutory report. The
purpose of this activity is to document the status of funds during the reporting timeframe.
Prior to submitting statutory reports, the Department of Housing and Human Services will
provide a copy of the report to the Clerk of Courts Finance Department for review. Approval of
the statutory report lies with the Board of County Commissioners.
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Schedule of Findings and Questioned Costs (continued)
Finding 2008-6
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Grant / State's Program (DR!)
CFDA No. 14.228
Criteria
Reporting: Effective internal controls over the review of reports required to be submitted to the
grantor agency are required to be in place.
Condition/Context
This federal grant is passed through to the County from the State of Florida, Department of
Community Affairs (the Department). The grant agreement between the Department and the
County sets forth various reporting requirements. We noted that the County completed the
required reports, as applicable, during fiscal year 2008, and we did not note any discrepancies,
However, there was no evidence that a review as to accuracy and completeness took place for
certain reports submitted to the Department (i.e. Contractual Obligation and MBE Report,
Projection of Contract Payments Form and Disaster Quarterly Status Report).
Questioned Costs
N/A
Cause/Effect
Effective supervisory review controls were not in place. Possible errors or omissions in reports
could go undetected if a formal review is not conducted and documented.
Recommendation
The County should implement procedures whereby review by someone other than the preparer is
obtained to help ensure completeness and accuracy of the reports submitted to the Department.
Such reviews and approvals should be documented to evidence that the review took place.
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Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials and Planned Corrective Action
The Department of Housing and Human Services has implemented procedures to ensure all
reports are reviewed for accuracy prior to submission to the Department of Community Affairs,
Once prepared, reports are reviewed for errors and/or omissions by the Housing Manager. Once
approved as accurate, the Housing Manager signs the report to indicate completed review.
Copies of signed reports are maintained by staff of the Department of Housing and Human
Services.
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Schedule of Prior Audit Findings
For the Year Ended September 30, 2008
A. The current status of fmdings reported for the years ended September 30, 2007 and 2006
related to the County's basic financial statements is as follows:
Finding 2007-01
Fixed Asset Capitalization and Depreciation
Condition
In performing the fiscal 2007 audit of fixed assets, we identified certain differences resulting in
adjustments to the County's basic financial statements. These differences included a prior period
restatement to expense amounts incorrectly capitalized, and reclassifications of amounts
improperly transferred to and from construction-in-progress.
Recommendation
.
The County should revise its construction and fixed assets accounting processes and procedures
to include:
. Review of contract terms for significant projects to determine proper classification of
project costs as capital assets or maintenance expense
. Expanded definition of capital assets
. Enhanced criteria for transfer of projects from construction-in-progress to fixed assets
. Periodic reconciliations of construction-in-progress costs to determine the proper and
timely capitalization of project costs
In addition, we recommend that the County utilize a fixed asset software program to accumulate
construction-in-progress costs. Much of the process involved in reconciling capital construction
costs is labor intensive and could be better automated. These expenditures should be reconciled
during the year rather than performing a comprehensive review at the end of the fiscal year. This
would accelerate this portion of the financial statement close process and reduce the risk of
manual errors.
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Schedule of Prior Audit Findings (continued)
Management Response and Corrective Action Plan
The Finance and Accounting Department concurs that all contracts need stringent initial review
to ensure proper expenditure classification. The initial review of contracts will be taken up as
part ofthe Board of County Commissioners' agenda review. Criteria for transfer of projects from
construction in progress to depreciable assets will not be purely quantitative for future fiscal
years. Increased reliance will be placed upon County departments and project managers for
information relating to capital asset in service dates. Reconcilement of construction in progress
costs are now occurring on a monthly basis. The County is currently working on a project
management system that will be fully integrated with the County's existing SAP database.
Construction in progress status information will be captured within that project management
system and will be followed with a confirmation process to ensure capital assets are captured
appropriately and efficiently.
Current Status
Fiscal year 2008 capitalizations from work in process were based upon communications with
various County Departments. Critical analysis of the work in process balances identified
planning costs that had been capitalized and would have been more appropriately expensed (See
Finding 2008-0). Work on the County's new project management system is ongoing and will
benefit future reporting periods.
Finding 2007-02
Accounting for Impact Fee Deferrals
Condition
During fiscal 2007 the Clerk's internal audit department performed a review of the County's
public records. This review identified approximately $5.6 million in impact fee deferrals that had
not been recorded on the County's books. This balance was recorded as a prior period
restatement to increase net assets in the government-wide financial statements and water and
sewer fund.
Recommendation
The County should review and revise its process for identifYing impact fee deferrals to ensure
that all contracts are recorded.
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Schedule of Prior Audit Findings (continued)
Management Response and Corrective Action Plan
Moving forward, a standard process will be instituted to ensure that impact fee deferrals are
communicated by the County to Clerk's Finance. Once both an impact fee deferral agreement
has been recorded in Official Records and the transaction has been posted to the CD Plus system
in Community Development Services, the County will provide notification to the Finance
Department to record the deferral in SAP. In addition, on a quarterly basis Clerk's Finance will
reconcile impact fee deferrals recorded in SAP against the County's list of deferrals to validate
that all deferrals have been recorded.
Current Status
lmpact fee deferrals are properly recorded as of September 30, 2008.
Finding 2007-03
Accounting for Nonexchange Revenue
Condition
In 2007 and prior years, the County has recorded funds received for the Emergency 911 Wireless
Tax as deferred revenue. The criteria for revenue recognition pursuant to GASB 33 related to this
tax had been met.
Recommendation
The County should review the supporting documentation for all significant nonexchange revenue
streams to determine when the revenue recognition criteria in GASB 33 have been met.
Management Response and Corrective Action Plan
We have reviewed all non-exchange revenue transactions of which we are aware to determine
that the recognition criteria of GASB 33 has been met.
Current Status
The Emergency 911 Wireless Tax is not recorded as deferred as of September 30, 2008.
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Schedule of Prior Audit Findings (continued)
Finding 2007-04
Accounting for State Housing Initiatives Partnership (SHIP) Deferred Impact Fee
Receivables
Condition
During our audit of impact fee deferrals, we noted that the County recorded notes receivable of
approximately $2.8 million which represented SHIP-related deferred impact fee credit
agreements entered into in prior years. Under the County's Consolidated Impact Fee Ordinance
(2001-13), the SHIP deferral program allows for the waiver of the impact fee revenue after 15
years unless an agreement is defaulted. ln the past, the County has not recorded a reserve for
SHIP notes that are not expected to be collected,
Recommendation
The County should establish and implement a policy for reserving impact fee amounts that are
not expected to be collected.
Management Response and Corrective Action Plan
We agree that the asset needs to be recorded at net realizable value and will work with the
department to establish an appropriate allowance for financial statement reporting purposes.
Current Status
SHIP related deferred impact fee agreements are not reported as receivables in the financial
statements as of September 30, 2008.
The following finding was reported by the County's prior auditor for the year ended
September 30, 2006.
Finding 2006-1
Condition
The County had historically recorded impact fee revenues as unearned revenue until the County
had met all the restrictions in the enabling legislation related to the fee. Also, the County has not
recorded developer donated properties received in lieu of impact fees in previous years.
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Schedule of Prior Audit Findings (continued)
Current Status
Corrective action was taken.
Currently, impact fee credit ledgers are supplied by the Community Development and
Environmental Services Department at the end of the fiscal year. These ledgers map to
Developer Contribution Agreements and list value received, or to be received, in return for
impact fee credits, as well as outstanding impact fee credit balances by Developer Contribution
Agreement (DCA). Rights of way, easements and land are recorded as provided for in the DCA
and construction improvements are recorded as accounts receivable until completion, Capital
assets related to impact fee credit balances are current and booked through September 30, 2008.
B, The current status of findings reported for the years ended September 30, 2007 and 2006
related to major federal programs and state projects is as follows:
Finding 2007-05
Federal Program Information
U.S. Department of Transportation
Highway Planning and Construction
CFDA Number: 20.205
Condition/Context
The same individual is responsible for both completing and approving the reimbursement
requests. The grant coordinator prepares the reimbursement requests and submits them to the
grantor agency for reimbursement. However, there is no review of the reimbursement requests
by someone other than the preparer for completeness and accuracy,
Recommendation
The County should ensure review and authorization by someone other than the preparer is
obtained in order to properly segregate the duties of requesting and approving reimbursement
requests, and to help ensure completeness and accuracy of the requests. Such reviews and
approvals should be documented to evidence that the review took place.
Planned Corrective Action
The following actions will be implemented.
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Schedule of Prior Audit Findings (continued)
All grant reimbursement requests will be reviewed by the appropriate Official(s).
For all LAP funded highway projects, the Grants Coordinator will prepare the reimbursement
request. The Operations Manager will review and approve the request prior to submission to the
grantor and Finance. The Operations Manager's review will be documented to provide an audit
trail to demonstrate segregation of duties.
For all grants other than LAP, invoices/reimbursement requests will be developed and/or
approved by the appropriate project manager and forwarded to the Grants Coordinator for
review, approval and processing. The Grants Coordinator will provide Finance a copy of the
grant invoiceslreimbursement requests with all reconciliation documentation attached the same
day the request is submitted to the grantor. Payments from the grantor will continue to be
received by the Finance Department.
Current Status
The Grants Coordinator ensures all LAP reimbursement requests have a documented review by
the Operation's Manager. In absence of the Operation Manager, the Division Administrator
serves as backup. The reimbursement request process identified in the corrective action plan was
put into place late 2007 and continues to be followed.
Finding 2007-06
State Program Information
Florida Department of Environmental Protection
Statewide Surface Water Restoration and Wastewater Projects
CFSA Number: 37.039
Condition/Context
The project's grant agreement required that a final report be submitted to the South Florida
Water Management District (the "District," pass though entity) by August 1, 2007 to provide a
final summary of the project. The final report to the grantor agency indicated "Scheduled Value"
for the deliverables totaling $16.5 million. The County was not able to provide support for or
reconcile this total to the expenditures for the project as recorded in the general ledger system.
However, we were able to agree the District's cost share in the final report to the grant agreement
and we noted that the expenditures in the general ledger system and in the final report were
significantly higher than the District's cost share under the grant agreement.
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Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained. Additionally, a more organized/systematic
approach should be taken to better identify specific project expenditures to be wholly or partially
reimbursed by a grantor agency vs, other general project expenditures,
Planned Corrective Action
At the completion of the project (actually four different projects combined under CFSA Number:
37.039), staff recorded that the incurred costs were equal to the original costs projected in the
grant. In fact, the actual costs incurred were greater than anticipated in the grant. As a result,
since actual costs exceeded the costs projected in the grant, staff felt that this satisfied the grant
agreement.
For the current year and going forward, the Public Utilities Engineering Department Grant
Coordinator will write and submit all interim and final project reports to the grantor, with
guidance on the exact project status from the respective project manager. The Coordinator will
maintain all project documents for each grant. Invoices and payment receipts for grant
reimbursements are issued by the Utility Billing and Customer Service section of Public Utilities.
Finally, an Excel spreadsheet will be created to track and identify expenditures associated with
purchase order numbers by grant task.
Current Status
Public Utilities Engineering Department Grant Coordinator wrote and submitted all project
reports to the grantor. The Coordinator has maintained all project documents for each grant.
The Coordinator worked with the Utility Billing and Customer Service section of Public Utilities
to invoice for grant reimbursements, An Excel spreadsheet was created and used to track and
identify expenditures associated with purchase order numbers by grant task.
Finding 2007-07
Federal Program Information
U.S. Department of Justice
State Criminal Alien Assistance Program (SCAAP)
CFDA Number: 16.606
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Schedule of Prior Audit Findings (continued)
Condition/Context
In addition to overtime which appears to be allowable, the County included wage benefits (i.e.
incentives, training costs, retirement, group life and health insurance, and workers compensation)
totaling $5.2 million in the calculation of total correctional salaries reported in the SCAAP grant
application for the FY 2006 SCAAP grant.
Recommendation
The Sheriff should review program guidelines and contact the grantor agency if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines. Written documentation from the grantor agency should be retained to
support any such correspondence.
Views of Responsible Officials and Planned Corrective Action
The Collier County Sheriff's Office (CCSO) concurs with this recommendation to contact the
grantor agency in writing, as is CCSO's practice, ifreporting criteria are not clearly stated or if
clarification is needed in interpreting information contained in the program guidelines. Written
documentation from the grantor agency will be retained, as CCSO normally does, to support any
such correspondence.
The Collier County Sheriffs Office has received SCAAP awards every year since 1997. SCAAP
guidelines are followed regarding all application submission requirements and eligible and
ineligible application inclusions. Questions arise when SCAAP Guidelines and SCAAP online
application forms have used different verbiage. The Bureau of Justice Assistance' Grant
Management System (GMS) has a "SCAAP HELP" link in its SCAAP application site that is
available for applicant clarification or to resolve conflicting statements, SCAAP HELP refers
grantees directly to the applicable year's State Criminal Alien Assistance Program Guideline for
proper direction in resolving questionable grant rules to follow for or in the grant application.
The SCAAP Guidelines clearly state if a cost is eligible or ineligible. For example the FY 2006
SCAAP Guidelines clearly indicate in the "Correctional Officer Definition" who does and does
not qualify for inclusion in the officer count.
The "FY 2006 SCAAP Guidelines" with respect to the "Correctional Officer Salary Calculation"
is included in the audit Criteria section above. There is no reference to benefits not being eligible
for inclusion in the "actual salary expenditures" for the application reporting period. The 2006
SCAAP Guidelines are silent about benefits and management believes that it was reasonable to
include them in the calculation. We do not believe it is logical for benefits to be an allowable
cost for only one year (FY2005) and then to revert back to years prior to 2005.
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Schedule of Prior Audit Findings (continued)
When comparing the above referenced SCAAP 2006 Guidelines Correctional Officer Salary
Calculation section to the SCAAP 2005 Guidelines Correctional Officer Salary Calculation
section, commencing in 2005, benefits are allowable inclusions in the correctional officer salary
calculation. No SCAAP Guideline after 2005 states that benefits are excluded. The CCSO
maintains DOJ/BJA did not exclude benefits in SCAAP Guidelines after 2005 and that SCAAP
2005 Guidelines supersede 2002 SCAAP Frequently Asked Questions about the eligibility of the
inclusion of benefits in the SCAAP 2006 corrections officer salary calculation.
FY 2005 SCAAP Guidelines indicates the following with respect to the "Correctional Officer
Salary Calculation:"
"Salary information reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
definition. The reported sum should total the jurisdiction's actual salary expenditures for
the applicable reporting period, not a projection, estimate, or average. Correctional officer
salary costs may include premium pay for specialized service (e.g., bilingual officers), shift
differential pay, and fixed-pay increases for time in service. It may also include employee
benefits and overtime required by negotiated contract, statute, or regulation (e.g., union
agreements, contractual obligations, required post staffing minimums, etc). Office of
Management and Budget (OMB) Circular A-87 (www.whitehouse.gov/omb/
circulars/a087/toc.html) provides general guidance on how benefits are defined for units of
government."
To correct any possible questionable DOJIBJA verbiage in the future, however, management will
request written clarification, as it normally does, from the DOJ/BJA when there is an unclear
SCAAP directive, contradiction, or what appears to be an omission in SCAAP Guidelines and
not depend on SCAAP Guidelines to be complete. Nonetheless, there is a duty on the part of the
grantor agency (DOJ/BJA) to explicitly state and include specific language in the SCAAP
Guidelines each year about what costs are eligible and ineligible for application content.
Suppressing words in SCAAP Guidelines by DOJ/BJA does not indicate benefit eligibility
exclusion. It should also be noted that grantees and auditors are not privy to the numbers
DOJIBJA uses in the formula to calculate and determine SCAAP awards which are only partial
reimbursement for the costs associated with the control and custody of criminal illegal aliens.
Grantees must interpret grantor developed applications that may omit important application
sections that would offer both the grantor and the grantee with application field options to
indicate what is in compliance with grantor guidelines (e.g., a separate field for wages, a separate
field for fringe benefits, a separate field for overtime). Also, there is the concept of fixed
compensation that is not addressed as eligible or ineligible by DOJ/BJA in their SCAAP
Guidelines, and would be applicable to grantees nationwide since fixed compensation includes
all benefits. This would mean that DOJ/BJA would be obligated, unless explicitly stated about
what would be ineligible, to include wages, fringe benefits, and overtime in actual salary
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Schedule of Prior Audit Findings (continued)
expenditures. Management believes the intent of the SCAAP 2005 Guidelines was there to
continue to permit the inclusion of benefits in the correctional officer salary calculation since
DOJ/BJA did not state otherwise in writing.
Current Status
See current year finding 2008-2.
Finding 2007-08
Federal/State Program Information
Schedule of Expenditures of Federal A wards and State Financial Assistance Projects
Condition/Context
The Schedule of Expenditures of Federal Awards and State Financial Assistance Projects (the
Schedule) provides total federal and state financial assistance project awards expended for each
individual federal and state program. Various revisions were required from the original Schedule
to the final Schedule due to errors and/or omissions that were identified by the County
throughout the reconciliation process which extended for several months or through inquiries we
posed in relation to specific grants or variances from prior year amounts, We were also notified
of a communication the County recently received from a grantor agency indicating that certain
programs were not reported in the Schedule in prior years.
Recommendation
The County should implement additional procedures and internal controls to ensure the
information used to develop the Schedule is accurate and complete and submitted on a timely
basis.
Planned Corrective Action
The County will review its current policies, processes and procedures. Additional procedures and
internal controls will be developed and implemented to monitor the information used to develop
the Schedule for grants and aid programs. A major consideration will be a central coordination
point for the processing and control of reporting requirements.
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Schedule of Prior Audit Findings (continued)
Current Status
The County has developed a training curriculum to both elevate the importance of and to provide
instruction about proper grant management. Participation in these courses has been supported by
upper management and employees involved in grants are encouraged to attend, Further, a Grant
Manual was developed and issued in October 2007 and Grant Coordination Policy updates have
been made to provide additional instruction. The County Manager has initiated a new program
called Expect Compliance at Every Level (XCEL), which is a self assessment tool designed to
allow mangers to formally assess and manage business risk, including internal control structures
and operations. All areas of county operations will take part in this initiative; however, the initial
focus is financial processes, including grants, Regular reporting to upper management is
required, resulting in increased quality control and accountability. Additionally, an XCEL
review will be performed specifically to determine an improved process for development of the
Schedule, seeking potential departmental and centralized controls to avoid this issue in the
future. The Grants Office will be responsible for accomplishing this analysis in coordination
with XCEL team experts by August 2009 and recommendations will be made to the County
Manager for implementation. Long term, project management enhancements to the County's
SAP system are expected to streamline the process and provide improved accuracy of
information.
Finding 2007-09
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
While the County has a broad standard of monitoring subrecipients, outlined in the One-Year
Action Plan, they do not have detailed policies and procedures in place to carry out such
monitoring. We selected two of the three subrecipients (Big Cypress, Inc. and Collier County
Housing Authority-CCHA) to which HOME funds were disbursed during the fiscal year. At the
time we performed our testing, we noted Collier County had not obtained or reviewed the audit
reports for either subrecipient during the year. County staff subsequently obtained the audit
reports. We also noted that there was no evidence of the monitoring (phone, desk or onsite
reviews) as described by the One-Year Action Plan, approved by HUD.
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Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that management document and implement the policies and procedures required
to properly monitor subrecipients, and that management keep records to evidence such
monitoring.
Planned Corrective Action
Staff performs extensive desk and phone monitoring of all subrecipients. Desk monitoring occurs
during the receipt, analysis and processing of each payment request and phone monitoring occurs
on an ongoing basis. In addition, subrecipients provide a monthly status report on projects which
is a type of monitoring. Annual audits are requested from each subrecipient and those noted in
the finding have been received and placed in their files.
Management will, however, document and implement more detailed policies and procedures
regarding monitoring and ensure that accurate records are kept as evidence of project monitoring.
Details should include dates of phone and desk monitoring, items covered and any follow-up
needed.
Current Status
New desk monitoring policies and procedures have been implemented in FY2008. A desk
monitoring form has been designed and grant coordinators are now monitoring their
subrecipients on a regular basis. Desk monitorings are reported monthly to the HHS Director via
the Grant Section's monthly report, The Grant Operations Manager ensures compliance by
quarterly sample testing of active files. Feedback is given to the grant coordinators on the
quality, quantity and subject matter of the monitoring. Testing is conducted to ensure all active
files are reviewed by the Grants Operations Manager at least once during the year.
To ensure audit reports are received and reviewed annually, the Grants Section has implemented
Standard Operating Procedure #1-116 which outlines the process for requesting subrecipient
audit reports. The reports are now requested annually in the December timeframe, to be received
no later than December 31 st of each calendar year and reviewed by the assigned grant
coordinator by January 30th A report is then forwarded to both the HHS Director and the Grants
Operations Manager by the Operations Coordinator. Request date has been added to the master
calendar. Current audit reports and debarment certification letters are now also required for new
subrecipients as part of the grant application submission process. Assigned grant coordinators
are responsible for checking EPLS for all subrecipients, vendors and contractors associated with
any funded activity.
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Schedule of Prior Audit Findings (continued)
Finding 2007-10
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
During our testing of the HOME grant and review of the participants' files that were selected for
eligibility testing, we noted that one participant to whom HOME funds were provided during the
year was assigned an incorrect file number and was actually a participant for the CDBG.
Recommendation
We recommend that management review monitoring controls to ensure that participants are
charged to the correct program and that any errors are identified and corrected.
Planned Corrective Action
1) A journal entry will be processed to post the expenditure to the proper fund account.
2) Controls over data entry will be reviewed, and if necessary, revised.
Current Status
This finding has been resolved as each fiscal staff member responsible for signing off on
expenditures has been given a list of all account expenditures codes for HOME and CDBG and
has been instructed to compare the account string on the request for payment, to the account
string on the master account list. They have also been instructed to place a check mark or initials
next to the account string on the request for payment to ensure that it has been verified.
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Schedule of Prior Audit Findings (continued)
Finding 2007-11
Federal/State Program Information
Federal Agency: US Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) - CFDA No. 14.239
Community Development Block Program (CDBG) - CFDA No. 14.218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSF A No. 52,901
Condition/Context
We noted that the County's documentation supporting payroll allocations for employees that
work on multiple grants did not meet federal standards as described in OMB Circular A-87. The
County uses a Personnel Activity Report (PAR) to allocate payroll salaries for employees who
work on multiple activities. These reports are prepared annually, at the beginning of each fiscal
year, based on an estimate of the time the employees are expected to work on a grant. The PAR
does not show the total activity for which an employee is compensated and does not require the
employee's signature.
The County's Department of Housing and Human Services (the department responsible for the
administration of the HUD grants) initiated a timesheet process in FY 2006 whereby employees
in the department indicate the projects (HOME, SHIP, or CDBG) to which their time relates each
week. These timesheets are signed by the employees and supervisors and kept in the department
for internal control purposes. These timesheets are not provided to the County's payroll
department to adjust the allocation of payroll costs from the estimate as indicated in the annual
PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual
activity ,
Also, we noted a salaried employee in our sample for the CDBG program whose payroll is
allocated 100% to the grant; however, semi-annual certifications were not completed as
described above.
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Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that the County continue to use the timesheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each timesheet. In addition, the County
should implement a process to provide the time sheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the-fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to the actual amount (based on the time sheets) should be made. Alternatively, the payroll
department could charge payroll costs to the grants based on actual timesheets submitted weekly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
period.
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Planned Corrective Action
1) Housing and Human Services Department will work with Human Resources Payroll staff
regarding the SAP module for time tracking to develop a process that will enable us to
charge the actual time incurred by the employee (after the fact) to a grant versus projected
budgeted allocation based on the PAR.
2) Housing and Human Services staff will continue utilizing the timesheet documentation
process developed in FY 2006.
3) Management will review the timesheets quarterly and compare them against cost allocations
to make adjustments accordingly.
4) The PAR forms will be revised to accommodate employee's signature.
5) Departmental policies and procedures will be revised to reflect changes.
Current Status
See current year finding 2008-1.
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Schedule of Prior Audit Findings (continued)
Finding 2007-12
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
The HOME Match Report was not submitted for fiscal year 2007. The County was not aware
that this report was required, and did not meet any of the exemption criteria.
In addition, the records used to track the HOME match contributions are not in accordance with
24 CFR 92.504. The tracking spreadsheet utilized by the County shows the matching
contributions by program but does not indicate the exact amount that was contributed. There is
no clear indication in the spreadsheet as to the date the contribution was made to the program
and we were unable to validate the amount contributed from the spreadsheet to the general ledger
as there are no index numbers or dates in the spreadsheet. In addition, the spreadsheet is not
reviewed to ensure compliance with the matching requirements. Upon drawdown of entitlements
the County is required to input the match contributed to the project to HUD's Integrated
Disbursement and lnformation System (IDIS), however, lDIS is unable to generate a report that
identifies the matching previously submitted.
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting and recordkeeping
requirements. The County should implement a tracking system to ensure reporting requirements
are being met. The County should improve its method of tracking matching contributions to
support the amounts reported in lDIS (including source of funding: index numbers to trace
source to general ledger) and the general ledger.
Planned Corrective Action
1) Housing and Human Services (HHS) staff will review the HOME program guidelines to
further understand the HOME match requirements.
2) HHS staff has recently developed a tracking system to track the HOME match contributions
in compliance with 24 CFR 92.504 which is an improvement to the current tracking
mechanism,.
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Schedule of Prior Audit Findings (continued)
3) The HOME Match Report (HUD-40107-A) will be completed by September 30 of each year
and included in the Consolidated Annual Performance and Evaluation Report (CAPER).
4) Departmental policies and procedures will be revised to reflect the changes made.
Current Status
As stated in the corrective action plan above, HHS fiscal staff has developed a HOME match log
to track all HOME expenditure that require match and where the matching funds originate. With
each drawn down of a HOME project, the corresponding match is documented on the log in
compliance with 24 CFR 92.504,
Additionally, the HOME Match Report was completed and submitted with the Consolidated
Annual Performance and Evaluation Report (CAPER).
ln addition, the Department has developed a number of matrices that are completed and others
that are scheduled to be completed. Each matrix outlines the Federal program guidelines,
procedures in place, monitoring of those procedures and any action needed to take. A HOME
matrix was developed, reviewed and implemented by the Department.
Finding 2007-13
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
The County did not submit Form HUD 60002 during the program year. The program received a
grant of which $200,000 went to a subrecipient, Big Cypress, to provide financial assistance with
the construction of low-income housing.
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting requirements. The
County should implement a tracking system to ensure reporting requirements are being met.
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Schedule of Prior Audit Findings (continued)
Planned Corrective Action
Housing and Human Services will review the HOME program guidelines and update our
checklist to ensure that the Section 3 reports are completed as indicated. Whenever a
subrecipient receives $200,000 or more in CDBG or HOME assistance as it relates to
construction, a Section 3 form will be included in the award package and completed. The report
will be sent to the field office by the deadline required.
Current Status
HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very- Low
Income Persons form are now part of the agreement award package and reviewed at the pre-
construction meeting for each project over $200,000. The reporting dates have now been
included in the Department's Master Calendar. Submission of the Section 3 report along with a
copy of the Consolidated Annual Performance and Evaluation Report (CAPER) is submitted
annually per HUD requirements prior to Oct 1 st annually.
In addition, the Department has developed a number of matrices that are completed and others
that are scheduled to be completed. Each matrix outlines the Federal program guidelines,
procedures in place, monitoring of those procedures and any action needed to take. A HOME
matrix was developed, reviewed and implemented by the Department.
Finding 2007-14
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validate the amount of expenditures
reported in the Annual Report. Additionally, we noted that there were no amounts reported for
"program income (interest)" for the 2004/2005 and 2005/2006 grant award periods, however,
interest was earned on the unspent portion of the respective advances and should have been
reflected as program revenue.
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Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being filed
with the State. The County should also establish a separate general ledger account or index code
for each entitlement year for interest income and ensure that interest income is appropriately
captured, reported, and expended as appropriate.
Planned Corrective Action
The HHS staff will perform a reconciliation of SHIP transactions monthly to ensure that the
Annual SHIP report tracks to the SHIP ammal report. This is a new procedure that was just
implemented. The SHIP grant support specialist will run reports at the end of each month and
reconcile those transactions to the activity in the SHIP spreadsheet. These reports are maintained
throughout the year and are expected to greatly improve staffs ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
Current Status
See current year finding 2008-5.
Finding 2007-15
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBG)
CFDA No. 14.218
Condition/Context
The County did not maintain documentation indicating that it had checked the EPLS for
subawards to subrecipients. Additionally, there was no certification from the entity or clause or
condition included in subrecipient agreements.
Recommendation
The County should perform verification of subrecipients by checking the EPLS (and
documenting evidence of the verification, when it was performed and by whom), collecting a
certification from the entity, or adding a clause or condition to the contract with that entity in
accordance with the Federal requirements.
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Schedule of Prior Audit Findings (continued)
Planned Corrective Action
HHS has reviewed the debarment status of every contractor and sub-contractor v.orking on
construction projects in the EPLS system. The department will add debarment certification
criteria to the application process for each sub-recipient. No contract will be executed with a sub-
recipient until debarment review for that entity is performed. The debarment certification will be
added to our checklist for the project file.
Current Status
Debarment certification letters are now also required for new subrecipients as part of the grant
application submission process. A subrecipient folder checklist has now been implemented to
ensure compliance. Assigned Grant Coordinators check all subrecipients, vendors and
contractors against the EPLS listing. Screen Prints of EPLS listing are made to prove
verification and are included in the file.
Finding 2007-16
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBG)
CFDA No. 14.218
Condition/Context
The Form 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-
Income Persons submitted by the County on January 18, 2008 for the reporting period of July 1,
2006 to June 30, 2007 specified that the total amount of award was $2,400,655. However, this
award amount relates to the 2007-2008 entitlement for the program year that began on July 1,
2007. Accordingly, it appears that the incorrect award was used to complete this repOlt.
The expenditures reported in the C04PR26 - CDBG Financial Summary report for the period of
July 1, 2006 through June 30, 2007 based on the IDIS system had not been appropriately
reconciled to the County's general ledger.
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Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures that require that financial reports extracted from IDIS
be reconciled to the general ledger and reviewed and approved by appropriate staff on a timely
basis. Evidence of the reconciliation and of the review should be documented and retained.
Performance reports should be thoroughly reviewed for accuracy and completeness before they
are submitted.
Planned Corrective Action
1) Housing and Human Services (HHS) staff will review the HUD program guidelines
regarding report submission requirements,
2) HHS staff is in the process of development a reporting calendar whereas all HUD reports will
be submitted in a timely manner.
3) Report Form 60003, Section 3 Summary Report will be completed and submitted prior to the
deadline of September 30 of each year.
Current Status
Responsibility to ensure correct year data for the Section 3 Summary Report has been assigned
as a coordinated effort to the Grant Section's Operations Coordinator and the Accountant. The
Operations Coordinator is responsible for producing proof of award amount for each subrecipient
award and the Accountant is responsible for ensuring the general ledger accurately reflects the
award amount. The Accountant is responsible for completion of the C04PR26.
A department master calendar was created and HUD report deadlines and other important
deadlines are listed and reviewed by the Grants Operations Manager and the Department
Director.
The Section 3 report was completed and submitted on time.
The following findings were reported by the County's pnor auditor for the year ended
September 30, 2006.
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Schedule of Prior Audit Findings (continued)
Finding 2006-2
CFDA Number:
Award Numbers:
Award Years:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG)
Home Investment Partnerships Program (HOME)
#14.218,14.239
M-05-UC-120217, B-04-UC-120016, B-05-UC-120016
2004,2005
Federal Agency:
Program:
Recommendation
The County has now completed an Environmental Review Record for each of the projects
mentioned in this finding. Environmental reviews should be completed for each project prior to
ID1S set-up and prior to expending any grant funds. To ensure completion of environmental
assessments, we recommend implementation of oversight controls. After each ERR is completed,
it should (1) be signed and dated by the appropriate staff member and (2) be reviewed and
approved by management. The approved ERR should then be forwarded to the person
responsible for IDIS set-up (to initiate this process) and subsequently placed in the appropriate
file. We recommend the County update its policies and procedures to document all controls and
processes associated with environmental reviews.
Management's Response
Collier County concurs with this finding and as indicated in the recommendation above has
already implemented additional environmental practices and procedures. Consequently, our
positive completion of all environmental reviews and implementation of additional practices and
procedures has validated all HUD eligible activities and any and all questioned costs associated
with these and future projects.
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Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services Department has updated the Environmental
Review policies and procedures already in place to reflect the process in a more comprehensive
and detailed manner when completing the Environmental Reviews (ERR). To ensure compliance
with HUD regulations, Collier County will require the appropriate staff members to attend HUD
sponsored Environmental training. Staff has attended HUD Environmental training as required.
Another level of control added to the Environmental Review process is the review of each of the
ERRs by the Grants Operations Coordinator (GOe) after the Grants Management Coordinators
complete ERR documents for their projects/activities to determine the appropriate level of
clearance. The GOC will check the ERRs to make sure the projects/activities have correctly been
categorized as to the level of environmental review required, therefore assuring that the
established procedures have been followed and all HUD required forms are included in the ERR.
Finding 2006-3
Federal Agency:
Program:
CFDA Number:
Award Numbers:
Award Years:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-1202I 7, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend formal policies and procedures with respect to Community Housing
Development Organization (CHDO) certifications. The policies should address initial CHDO
certification as well as CHDO re-certifications, and require completion of an annual checklist.
For initial certifications, the County should have documentation to support each item on this
checklist. Documentation required for re-certifications should also be described. To ensure
proper controls are in place, we recommend coordination of CHDO documentation by one
individual and review and approval by another.
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Schedule of Prior Audit Findings (continued)
Management's Response
Collier County Housing Development Corporation (CCHDC)
Low Income Community Input: The by-laws of CCHDC include a statement of compliance that
CCHDC would create a "process for low income community input." CCHDC did adopt by
Board motion a formal written process for low income community input. CCHDC's actions since
its inception have reinforced this policy. CCHDC has now adopted an official corporate
resolution on January 11, 2007 validating that their official policy of low income community
input has been in existence since creation of the organization. Low income Board representation:
As part of the County's CHDO Certification checklist process, low-income board participation is
verified by staff. CCHDC has always and continues to maintain their required minimum number
of low income board members. CHDO Certification Date: The certification process for CCHDC
occurred over approximately a 9 month period. On December 8, 2005 county staff attended the
Board meeting where the CCHDC adopted the two remaining policy items, thus completing all
of the HUD checklist requirements for their CHDO certification status.
Empowerment Alliance of Southwest Florida (EASF)
CHDO Low-income community input and CHDO Capacity: EASF has been a State of Florida
certified CHDO since 2002. The State guidelines for CHDO certification are identical to HUD
guidelines. Documentation of State CHDO approval is on file with Collier County. EASF has
been operating in Collier County since 2000 which substantiates their capacity and experience
working in the low-income community ofImmokalee.
Big Cypress Housing Corporation
CDHO Capacity and Staffing: Big Cypress CHDO operates as a subsidiary of Everglades
Community Association. The staff of the organization is allocated to the parent organization
supporting the CHDO and charges their time accordingly, Everglades Community Association
operates 3 certified CHDOs throughout Florida in Collier, Manatee, and Miami-Dade counties
utilizing the same staffing relationships. Everglades Community Association and its subsidiaries
have developed over 1,000 units throughout Florida. It is common practice for nonprofits to
create new corporate entities for each new housing development. As a result, staff remains on the
parent corporation's payroll for administrative expediency. Big Cypress retains the statItalent by
absorbing the appropriate cost oftheir share of the parent corporation's payroll cost.
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Schedule of Prior Audit Findings (continued)
Ch{lpter 8 of Building HOME (page 8-11) specifically provides for alternative staffing plans that
would allow this staffing arrangement to satisfy the requirement for staff capacity and
experience. Big Cypress Housing Corporation developed and owns the 79-unit Main Street
Village in Immokalee. In addition, Steve Kirk, President and Executive Director received a
national award from the Housing Assistance Council in Washington, D.C. in December 2006 for
his efforts to develop housing for migrant farm workers. In essence, it is our opinion, that this
CHDO meets the HOME requirements in substance over form.
General
Collier County is confident that all three organizations have been appropriately certified as
Community Housing Development Organizations (CHDOs) and that all expenditures are in
compliance with HUD HOME regulations. The HUD CHDO Certification checklist will
continue to be used annually for recertifying all organizations seeking CHDO status in Collier
County.
Current Year Status
The HUD CHDO Certification checklist is used annually to recertify all organizations seeking
CHDO status in Collier County. It is the responsibility of one Grant Coordinator to certify the
CHDO status which is then confirmed by a member of the HHS management team. All
paperwork is contained within the files of the organizations seeking CHDO status.
CCHDC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on CCHDC's By-laws, corporate resolution and board list.
EASF: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on EASF's by-laws, board resolution, and board list.
BCHC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on Big Cypress' by-laws, board resolution and board list.
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Schedule of Prior Audit Findings (continued)
Finding 2006-4
Federal Agency:
Program :
CFDA Number:
Award Numbers:
Award Years:
U.S. Department of Housing and Urban Development
Home lnvestrnent Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
We recommend thorough research and review of CHDO requirements prior to entering into a
contractual agreement. Additional review and approval procedures should be developed with
respect to CHDO expenditures to ensure that all conditions are met prior to the release of any
CHDO funds. We recommend formal documentation of all CHDO requirements and controls.
Management's Response
Collier County reviewed HUD HOME rules and made the determination that the Collier County
Housing Development Corporation (CCHDC) was acting as a developer in the case of the Cirrus
Pointe project. The joint venture agreement between CCHDC and Jim Fields states that both
parties are responsible for the development of the project. This contractual agreement details the
property owner and the CHDO's specific obligations to bring this project from conception to
completion, "The parties desire to form a joint venture for the development and sale of the parcel
according to this agreement. The parties hereby create a Joint Venture for the construction and
sale of 108 residential condominium units on the parcel." In addition, the CHDO will be
involved in efforts to secure additional financing for this project and the prequalification and sale
of the affordable units. HUD encourages CHDO's to develop partnerships in order to more
successfully develop, construct, finance and sell affordable housing. According to HUD
regulations a CHDO is defined as a "Developer" when it "has a contractual obligation to a
property owner to develop a project." ln addition, "In the Developer role, the CHDO carries out
some or all of the principal project development activities." (Building HOME pgs 8-12 and 8-
15). On January 16, 2007, staff requested clarification from the Miami HUD office on this
matter.
Corrective Action: Attend training on CCHDO's sponsored by the National Association for
County, Community and Economic Development in June, 2007 and update the certification
checklist and policies and procedures to reflect the training within 30 days.
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Schedule of Prior Audit Findings (continued)
Current Year Status
Because of the transition of staff members in Housing and Human Services, attendance at the
CHDO training in June was not possible. This training was attended by staff and all internal
practices and procedures were updated to reflect any changes from the training. In a conference
call with the Miami Field Office, it was determined that HUD would not render an opinion based
on the audit. For future CHDO contractual agreements, technical assistance will be requested to
clarity CHDO requirements and all proposed CHDO expenditures will be reviewed to ensure
that all conditions are met prior to the release of funds.
Finding 2006-5
Federal Agency:
Program:
CFDA Number:
Award Number:
Award year:
u.s. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-1202l7
2005
Recommendation
We recommend the County review any future joint venture agreements that are associated with
CHDO set -aside funds and ensure that the requirements described above are met prior to the
expenditure of HOME funds.
Management's Response
Collier County will continue to review all joint venture (JV) agreements as an integral part of its
evaluation of HOME CHDO projects and their compliance with HUD regulations.
Current Year Status
Staff attended Joint Venture training on April 19, 2007. The staff members then provided in
house training for the rest of the Grants staff on July 16, 2007. Legal documents continue to be
reviewed by the County Attorney. The contract with the Cirrus Pointe was extended by the
Board of County Commissioners for the work to be completed by 12/09. Staff is continuing to
monitor this project. Although the project is permitted, due to the downturn in the housing
market, no construction has commenced at this time. Housing and Human Services grants staff is
providing technical assistance to the developer to ensure a successful completion ofthis project.
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Schedule of Prior Audit Findings (continued)
Finding 2006-6
Federal Agency:
Program:
CFDA Number:
A ward Number:
Award Year:
U,S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217
2003
Recommendation
We recommend the County develop and utilize a checklist describing all documentation
requirements for real property acquisitions. Management level personnel should review and
formally approve all significant steps (as described on the checklist) in the property acquisition
process. We also recommend sending any future Uniform Relocation Act (URA) letters via
"certified" mail to document compliance with the above-noted requirements.
Management's Response
With regards to this land acquisition activity, the seller was delinquently notified of all URA
requirements by the co-developer of the project, Beneficial Communities. Collier County has
implemented a project checklist requiring management approval certifying URA requirements
have been met by sub-recipients prior to disbursement of funds.
Current Year Status
Staff attended URA training in April 2007. Policies and procedures were updated to reflect the
training in July, 2007, Subrecipients will receive training and technical assistance on policies and
procedures regarding the Uniform Relocation Act. Appropriate paperwork will be on file,
including documentation ofURA letters sent by certified mail.
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Schedule of Prior Audit Findings (continued)
Finding 2006-7
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-1202l7
2003,2004
Recommendation
As noted in this finding, the County has already corrected this error, This was the first year the
County utilized HOME funds for a tenant-based rental assistance (TBRA) program. In the future,
we recommend careful review of all HOME regulations and guidance when starting
programs/projects that are new to the County.
Management's Response
Collier County has corrected this situation.
Current Year Status
Collier County Housing and Human Services will carefully review all procedures and regulations
before starting new programs. Staff members will attend the requisite training as it is offered and
request technical assistance from the Miami Field Office. The department will scrutinize
administrative costs and ensure these costs are expended from the appropriate categories.
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Schedule of Prior Audit Findings (continued)
Finding 2006-8
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-1202l7, M-04-UC-120217, M-05-UC-120217
2003,2004,2005 .
Recommendation
We recommend the County develop detailed policies and procedures with respect to HOME
match and provide training for all personnel involved in the HOME match process. As part of
this process, the County needs to develop procedures to separately identify SHIP "match" loans
and ensure repayment of these loans is deposited into the HOME lnvestment Trust Fund local
account. The County should revise and re-file its 2006 match report with HUD, based upon the
new procedures,
Management's Response
No HOME activities using SHIP match have been re-paid to Collier County. The situation
described in the recommendation has not occurred. Collier County will develop a detailed policy
and procedure to handle the re-payment of matched funds should the situation ever arise.
Current Year Status
The County uses SH1P funds as match contribution to the HOME funds. HOME recipients that
receive SHIP match will be identified and setup in IDIS, A written procedure to address this
issue has been completed.
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Schedule of Prior Audit Findings (continued)
Finding 2006-9
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S, Department of Housing and Urban Development
Community Development Block Grant (CDBG)
#14.218
B-04-UC-120016, B-05-UC-120016
2004,2005
Recommendation
We recommend Collier County Human Services provide payroll and/or other documentation to
support the cost of providing intake services. Any costs that cannot be supported by underlying
documentation should be returned to the CDBG program.
We recommend the County adhere to the payment and documentation standards established in its
contractual agreements. If changes are considered necessary, the County and its subrecipient
should amend the appropriate sections of the agreement.
The County should carefully consider all documentation and monitoring requirements prior to
entering into subrecipient agreements for medical-related services and other "Public Services"
(as defined by the CDBG program). Such contracts often require significant oversight from both
a programmatic and financial management (documentation review) perspective.
Management's Response
All reimbursements made for these projects were made in accordance with the executed
contracts. Management continues to ensure that programmatic and fiscal controls are in place for
all public service projects and other CDBG eligible activities.
Current Year Status
This project was closed out on October 19,2007. During the monitoring, it was observed that
each file contained sufficient documentation to support the cost of providing intake services.
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Schedule of Prior Audit Findings (continued)
Finding 2006-10
Federal Agency:
Program:
CFDA Number:
A ward Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
The County utilized this program income prior to year-end and developed a process to
incorporate program income into its cash draw process, We recommend the County update its
written policies and procedures for cash draws to reflect the requirements associated with
program income.
Management's Response
Collier County concurs with this finding. Staff has developed policies and procedures to address
this situation as described by the auditor in the context/effect section above.
Current Year Status
The County received Home program income for the first time in FY 2006. The income was
spent, but not drawn in IDIS. Procedures are in place to ensure all future program income are
spent and drawn in ID1S before entitlement funds are used.
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Schedule of Prior Audit Findings (continued)
Finding 2006-11
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217
2003
Recommendation
Using reasonable allocation methods, we recommend the County determine and document the
amount/cost of land associated with the 4 single-family units and the amount associated with the
51 apartment units. The County should then either:
(1) require Big Cypress to return the portion of HOME funds associated with the 51-unit
apartment complex; or
(2) amend its contractual agreement with Big Cypress to include the 51 units of rental
housing and impose the applicable "period of affordability" requirements for the
HOME program.
We also recommend the County clearly describe the intended use of HOME funds in its
contractual agreements. The County should not approve and fund HOME expenditures that are
not detailed in the contract "scope of work".
Management's Response
Collier County has amended this contractual agreement effective March 2, 2007 to include the
51 units of rental housing and the applicable period of afford ability.
Current Year Status
This contract was amended in March 2007 to include all 55 units. All legal contracts, including
the scope of work, are reviewed by the County Attorney. The scope of work for each project
clearly reflects the intended use of all grant funding.
0902-1032557
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Finding 2006-12
Federal Agency:
Program:
CFDA Number:
A ward Number:
Award Year:
Recommendation
Collier County, Florida
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Schedule of Prior Audit Findings (continued)
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG) and
Home Investment Partnerships Program (HOME)
#14.218 and #14.239
M-05-UC-120217, B-05-UC-120016
2005
We recommend the County continue utilizing the timesheet documentation process it developed
in FY 2006.
Management's Response
Collier County will continue utilizing the timesheet documentation process developed in FY
2006.
Current Year Status
Collier County Housing and Human Services continues to utilize the timesheet documentation
process for all grants staff members. Any new employees hired are also trained on the time sheet
documentation process. See also finding 2007-11 above.
Finding 2006-13
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
Recommendation
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217, M-05-UC-I20217
2003,2004,2005
We recommend the County carefully review the language of all HOME contracts to ensure
compliance with 24 CFR 92,504. Written agreements should specifically address each provision
as described in this HOME regulation.
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Schedule of Prior Audit Findings (continued)
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Management's Response
Collier County will review all contractual agreements to ensure they comply with all
requirements of 24 CFR including 92.504. Regarding the Big Cypress deed restrictions
referenced above, the developer requested an additional change to reflect a revised legal
description. This agreement has been reviewed by the County attorney's office and will be on the
agenda for approval by the Board of County Commissions in July 2007. All agreements are
reviewed by the County attorney's office. Management will pursue review by HUD source for
compliance with HUD legal sufficiency.
Current Year Status
The contract in question has been amended and approved by the Board of County
Commissioners. Additionally, the contracts from Housing and Human Services have undergone
a rigorous review process by the County Attorney, Purchasing and staff members with the Clerk
of Courts. With the approval of the 2009 Action Plan by the Board of County Commissioners,
contract templates will be included and submitted to HUD by May 15,2009.
Finding 2006-14
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Transportation
Highway Planning and Construction
#20.205
195431
October 1, 2005 - September 30, 2006
Recommendation
KPMG recommends that the County implement procedures to ensure that Davis-Bacon Act
requirements are included in contracts and that certified payrolls are obtained from contractors
and subcontractors when required.
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Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this finding; however, proper steps to assure this problem does not
occur in the future have already been taken. This finding pertains to a construction contract that
was let in 2004. At the time the contract was let, the Purchasing Department was not aware that
this project was to be grant funded and hence did not insert the requirements raised under the
finding. The issue of grant compliance in certain County contracts was brought to our attention
in a subsequent annual audit finding. Purchasing staff formally addressed this issue in March
2006 by modifying the pre-bidding checklist. The modified list includes a determination of the
. funding source. If grant funds are part of the revenue for the project, the Purchasing staff inserts
the appropriate additional conditions to the bid and contract terms.
Current Year Status
A new Grants Coordinator with prior grant compliance experience was hired in June of 2007. All
newly executed LAP-funded and FTA-funded contracts continue to include the Davis-Bacon Act
requirements and are reviewed for updates, Currently, there are no nonlocal LAP projects in the
construction phase that would require the collection of certified payrolls. A written procedure has
been developed for future contracts which require certified payroll collection. This procedure
will include informing contractors at pre-bid meetings and post-award meetings that Davis
Bacon applies, and certified payroll records are a requirement of the project. Internal procedures
include informing project managers and budget analysts of Davis Bacon requirements as well as
identifying which projects require payroll certification compliance. The Grants Coordinator will
monitor collection of the reports and be the official holder of record.
Finding 2006-15
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Agriculture
Watershed Protection and Flood Prevention
#10.904
69-4209-6-1617
October 1,2005 - September 30, 2006
Recommendation
The County should implement procedures to ensure that special provisions are included in
contracts when required by grant agreements.
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Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this finding; however, the contract was placed by the Purchasing
Department prior to the event that became the basis for the grant. The work was ordered by the
Stormwater Management Department pursuant to the clean up and removal of debris from
County drainage canals following Hurricane Wilma. The contract was placed by the Purchasing
Department several months prior to the event. The contract is available for use by any County
department and is not linked to a particular funding source or end user.
Current Year Status
A new Grants Coordinator with prior grant compliance was hired in June of 2007 and will
monitor all grants within the Transportation Division to ensure projects using grant funded
sources are properly procured following the requirements specific of the grantor.
Finding 2006-16
State Agency:
Program:
CFDA Number:
Award Number:
Award Year:
Florida Department of State
State Aid to Libraries
#45.030
06-ST-12
October 1, 2005 - September 30, 2006
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained.
Management's Response
Management concurs with this finding. This reporting issue is related to staff turnover and
implementation of a new library automation system. Management will ensure that when staff
members are hired, they are trained to run the appropriate reports and cross trained with other
staff members. This will provide additional staff that can run and reproduce the reports when
needed and to show from where the information was derived. Prior to submittal, all reports will
be reviewed by cross trained staff and the director to verify the accuracy and completeness of
information provided. The Library will retain supporting documentation to be made available
after reports are submitted.
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Schedule of Prior Audit Findings (continued)
Current Year Status
Director is compiling and reviewing all reports, with assistance from current employees. Library
has been unable to afford additional training from vendor. However, vendor is implementing an
on-line training program that will be evaluated and used if it appears to meet the Library needs
for report training. Library consulted February 23, 2009, with vendor concerning this newly
established on-line training program. Training program roll-out should be complete in Summer
2009. Library Director and one Branch Manager are scheduled to attend a general data reporting
training session on March 25, 2009. Although not specifically about Library's automation
system, the class should provide additional assistance in using standard office programs to
evaluate specific library data. Records and paper trail of information used as basis for reports are
being archived locally. Two additional staff members have been designated to report on and keep
track of particular data elements that are used to compile reports,
Finding 2006-17
State Agency:
Florida Department of Elder Affairs/Area Agency on Aging for
Southwest Florida, Inc.
Community Care for the Elderly
#65.010
CCE 304.203.06, CCE 302.203.05
July 1,2005 - June 30, 2006 and July 1,2006 - June 30, 2007
Program:
CFDA Number:
Award Number:
Award Year:
Recommendation
The County should ensure authorization by someone other than the preparer is obtained in order
to properly segregate the duties of requesting and approving state reimbursement requests,
Management's Response
Management concurs with the finding and has implemented practices and procedures to resolve
this issue. The required reporting duties of preparer and approver have now been delegated to
separate individuals. Fiscal support staff has been trained to prepare the expenditure and request
for funds reports and have now accepted this responsibility. The reports will in turn be reviewed
for completeness and accuracy by the accounting supervisor, who will then sign off as the
approver.
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Current Year Status
Collier County, Florida
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Schedule of Prior Audit Findings (continued)
The accounting staff implemented the practices and procedures as outlined in the Management's
Response, Fiscal staff has been trained to prepare the reports and now completes them with great
accuracy. The supervisor continues to sign off on the reports for completeness, timeliness and
accuracy,
Finding 2006-18
State Agency:
Program:
CFDA Number:
Award Year:
Recommendation
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2003/04, 2004/05
Reconciliations of both revenue and expense (between the SHIP Annual Report and the general
ledger) should be formally documented, reviewed, and approved. Policies and procedures should
be written to describe the entire reporting process, including reconciliation controls, the manner
in which data is compiled and the documentation to be maintained.
Management's Response
As indicated in the finding the reconciliation of the SHIP report and General Ledger has been
completed and are correct. The SHIP Annual Report submitted to the State was correct. A policy
and procedure has been implemented requiring reconciliations to be completed for the SHIP
program on a monthly basis.
Current Year Status
Staff is working towards a monthly reconciliation of the SHIP program on a monthly basis. See
current year finding 2008- 5 above.
Finding 2006-19
State Agency:
Program:
CFDA Number:
Award Year:
0902-1032557
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2004/05
233
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Schedule of Prior Audit Findings (continued)
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Recommendation
The County budgeted for increased SHIP activity in FY 2007 and believes that they will meet the
encumbrance and expenditure requirements as of June 30, 2007, The County periodically
reviews the expenditure and encumbrance levels of the SHIP program. We recommend written
policies that address this process and formal documentation of this control on a quarterly (or
more frequently) basis.
Management's Response
Collier County agrees with this finding, however all 2004/2005 SHIP funds were not only
encumbered but also expended by December 31, 2006, six months prior to their statutory
expenditure deadline. Collier County has amended its LHAP to allow greater flexibility to
encumber and expend all SHIP funds consistent with statutory requirements. The State of Florida
was notified of the situation prior to July 2006 and agreed to the County's plan to encumber and
expend the SHIP funds in the fall of 2006.
Current Year Status
Due to market conditions, the 2004/2005 funds could not be encumbered in a timely manner.
The State of Florida was notified of the situation and an extension was given. The SH1P
coordinator keeps a log on encumbered and spent activities.
Finding 2006-20
State Agency:
Program:
CFDA Number:
Award Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2003/04, 2004/05, 2005/06
Recommendation
We recommend the County continue utilizing the timesheet documentation process it developed
in FY 2006.
Management's Response
Collier County will continue utilizing the timesheet documentation process developed in FY
2006.
0902-1032557
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services continues to utilize the timesheet documentation
process for all grants staff members. Any new employees hired are also trained on the timesheet
documentation process, See also finding 2007-11 above.
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111111111111111111111111111"'" i!J ERNST & YOUNG
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Ernst & Young LLP 13 A
100 Nortl)east Thir.d Avenue
Suite 700
Fort LiludNdale. Florida 33301
Tei: + 1 954 ass 8000
Fax: +19:)4 ElS8 8160
www.ey.com
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Management Letter and State Reporting Requirements
Members of the Board of County Commissioners
Collier County, Florida:
We have audited the financial statements of the governmental actlVtl1es, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Collier County, Florida as of and for the year ended
September 30, 2008, which collectively comprise Collier County, Florida's basic financial
statements and have issued our report thereon dated February 26, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. We have also issued our
report dated February 26, 2009, on our consideration of Collier County, Florida's internal control
over financial reporting and on compliance and other matters based on an audit of financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550,
Rules of the Auditor General, which govern the conduct of local governmental entity audits
performed in the State of Florida.
The suggestions included in this letter, which resulted from our consideration of internal control,
over financial reporting are submitted to assist in improving accounting procedures and controls.
A. CURRENT YEAR FINDINGS AND RECOMMENDATIONS
There are no current year recommendations.
1
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B. STATUS OF PRIOR YEAR RECOMMENDATIONS
The following is a summary of prior year recommendations that were not repeated in the current
year recommendations, were not implemented, or were only partially implemented by the
County during the current year.
Prior Years' Observation
2007-01 Self insurance
Status
Self insurance reserves are reviewed on an on-
going basis taking current and long range plans
of the County into consideration.
2007-05 Program change
2007 -06 Logical access
Implemented
Implemented
Discussions are underway regarding the
establishment of ongoing reserves for
uncollected receivables.
Implemented
The recommendations made are consistent
with our implementation philosophy and
long term plans. Our long term plan favors
two factor authentication rather than
password complexity as a means to
achieve the same end. We will take the
recommendations under advisement as we
continue our research and planning.
2007-02 Inventory pricing
2007 -03 Inventory - expensing low-cost items
2007-04 Accounts receivable
C. OTHER REQUIRED COMMUNICATIONS
The Rules of the Auditor General, Section 10.554 (l)(i)(l), require that we address in the
management letter whether or not corrective actions have been taken to address significant
findings and recommendations made in the preceding annual financial audit report. The status of
recommendations made in the preceding annual financial audit is included above.
As required by the Rules of the Auditor General, Section 10.554(1)(i)(2), the scope of our audit
included a review of the provisions of Section 218.415, Florida Statutes, regarding the
investment of public funds. In connection with our audit, we determined that Collier County,
Florida complied with Section 218.415, Florida Statutes.
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The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in a
management letter any recommendations to improve Collier County, Florida's financial
management, accounting procedures, and internal controls. Current year recommendations to
improve Collier County, Florida's financial management, accounting procedures, or internal
controls are included above.
The Rules of the Auditor General, Section 10.554(1)(i)(4), require that we address in a
management letter any violations of provisions of contracts and grant agreements or abuse that
have an effect on the financial statements that is less than material but more than
inconsequential. The results of our audit disclosed no violations of provisions of contracts and
grant agreements or abuse that would have an effect on the financial statements that is less than
material but more than inconsequential.
The Rules of the Auditor General, Section 1O.554(1)(i)(5), require disclosure in the management
letter of the following matters, if not addressed in the auditor's report on internal control over
financial reporting and on compliance and other matters or in the schedule of findings and
questioned costs, and are not clearly inconsequential:
(a) Violations of laws, rules, regulations, and contractual provisions or abuse that have
occurred, or are likely to have occurred, would have an immaterial effect on the
financial statements, and were discovered within the scope of the audit;
(b) Control deficiencies that are not significant deficiencies, including, but not limited to:
(1) lmproper or inadequate accounting procedures (e.g., the omission of required
disclosures from the annual financial statements);
(2) Failures to properly record financial transactions; and
(3) Other inaccuracies, shortages, defalcations, and instances of fraud discovered by,
or that come to the attention of, the auditor.
The results of our audit disclosed no violations of laws, rules, regulations, and contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than
the internal control recommendations included above.
The Rules of the Auditor General, Section 10.554(1)(i)(6), also require that the name or official
title and legal authority for the primary govemment and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. In that regard, Collier County, Florida was established under Chapter 107, Section 1,
Florida Statutes. The legal authority for Collier County and its component units are discussed in
Note I to the financial statements.
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The Rules of the Auditor General, Section 10.554(1)(i)(7)(a), state that a management letter shall
include a statement as to whether or not a local governmental entity is in a state of financial
emergency as a consequence of conditions described in Section 218.503(1), Florida Statutes.
Management of Collier County, Florida has determined that Collier County, Florida is not in a
state of financial emergency as defined in Section 218.503(1), In connection with our audit of the
financial statements of Collier County, Florida, the results of our tests did not indicate that
Collier County, Florida is in a state of financial emergency as a consequence of the conditions in
Section 218.503(1).
As required by the Rules of the Auditor General, Section 10.554(1 )(i)(7)(b), we determined that
the financial report for the year ended September 30, 2008 to be filed by Collier County, Florida
with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida
Statutes, is in agreement with the annual financial audit report for the current audit period.
As required by the Rules of the Auditor General, Sections 10.554(1)(i)(7)(c) and 10.556(7), 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.
This report is intended solely for the information and use of the Board of County
Commissioners, management and the Auditor General of the State of Florida, and is not intended
to be and should not be used by anyone other than these specified parties.
~"HLLP
February 26, 2009
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ANNUAL DEBT REPORT
(Unaudited)
Pursuant to the Collier County Debt Policy the following Tables and Summary Debt Statement
were prepared for the fiscal year ended September 30, 2008.
Table 1. Calculation of Collier County General Govemmental Debt Ratio
Table 2. Calculation of Collier County Enterprise Debt Ratios
Summary Debt Statement for Fiscal Year 2008
TABLE 2
Calculation of Collier Couuty Enterprise Debt Ratios
For the Fiscal Year Ended September 30, 2008
Collier County Water and Sewer District:
Total Sales Revenue
Allowance for Funds Prudently Invested
Miscellaneous Revenue
Total Operating Revenue
Non-Operating Revenue
Gross Revenue
Less: Operation and Maintenance
Expense (excluding Depreciation)
Net Revenue Available for Debt Service
Total Fiscal Year 2008 Debt Service on Bonds
Net Revenue Debt Service Coverage on Bonded Debt
(100% Required)
Other Pledged Funds:
System Development Fees
Special Assessment Proceeds
Total Pledged Funds
Available for Debt Service
Total Fiscal Year 2008 Debt Service on Bonds
Total Pledged Funds Debt Service Coverage on Bonded Debt
(I 25% Required)
Net Revenue Available for Debt
Service After Payment of Bonds
Total Fiscal Year 2008 Debt Service on
Subordinated Indebtedness
Calculated Coverage on
Subordinated Indebtedness
Net Revenue Available for System
Purposes
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$ 96,2 I 6,613
570,684
2,904,543
99,691,840
5,724,510
105,416,350
49,706,694
$ 55,709,656
$ 12,272,149
454%
$ 9,753,332
659,742
$ 66, I 22, 730
$ 12,272,149
539%
$ 43,437,507
$ 8,069,375
538%
$ 35,368,132
TABLE 1
Calculation of Collier County General Governmental Debt Ratio
For the Fiscal Year Ended September 30, 2008
Bondable revenues, as defined by Collier County Debt Policy:
Current Ad Valorem Taxes
Governmental Impact Fees
Half Cent Sales Tax
Developmental Fees
State Revenue Sharing
6th Cent Local Option Gas Tax
5th Cent Local Option Gas Tax
Constitutional Gas Tax
Seventh Cent Gas Tax
Ninth Cent Gas Tax
Parks and Recreation Fees
Tourist Development Tax
Court Facilities Fees
Communications Services Tax
$ 307,977,046
36,679,020
30,003,927
12,490,300
8,500,145
6,594,170
4,974,571
4,130,403
1,753,546
1,407,155
6,707,255
14,795,623
969,046
5,816,640
$ 442,798,847
Total bondable revenues
Fiscal 2008 governmental debt service requirements:
Series 2002 Capital Improvement Bonds
Principal;
Interest:
Series 2003 Capital Improvement Bonds
Principal:
Interest:
Series 2005 Capitallmprovemeut Bonds
Princi pal:
Interest:
Series 2003 Gas Tax Bonds
Principal:
Interest:
Series 2005 Gas Tax Bonds
Principal:
[nterest:
Commercial Paper Program
Principal:
Interest:
$ 2,260,000
1,557,813
1,315,000
1,686,744
5,265,000
7,302,294
6,030,000
3,464,440
460,000
4,624,838
640,000
1,016,592
$ 35,622,721
Total fiscal 2008 governmental debt service requirements
Governmental debt ratio of fiscal year 2008 debt service
to bondable revenues (130/0 maximum allowed by policy)
Notes:
All revenues are GAAP based accrual, and debt service is based upon current amortization tables for
the fiscal year indicated. Debt prepayments are not included as debt service requirements.
31to~ ~
I 13A rw,"'1
I ,.4
,
I
8.04%
11\O~ f
Summary Debt Statement for Fiscal Year 2008
General Governmental Debt:
The governmental debt ratio increased from 7.5% for fiscal year ended September 30, 2007 to
8.0% for fiscal year ended September 30, 2008. The governmental debt ratio is defined as the
ratio of debt service requirements to total bondable revenues. The major reason for the increase
in the debt ratio was a decrease in bondable revenues of 12.2%, or $61,668,845. Governmental
impact fee revenues decreased by 56.7% versus last fiscal year, developmental fees were down
by 23.8% and sales tax receipts were 7.9% less than fiscal year 2007, Total governmental debt
service requirements decreased by 5.8% from fiscal year 2007 to fiscal year 2008. Collier
County's maximum allowable governmental debt ratio is 13.0%, and the County is below the
maximum.
Prepayments totaling $22,621,000 were made on County pooled commercial paper debt. These
prepayments are not shown as part of debt service requirements for purposes of calculating the
governmental debt service ratio.
Total non general obligation borrowings for fiscal year 2008 were $69,391,000, with
$57,391,000 in commercial paper loans and a State lnfrastructure Bank Loan of$12,000,000.
Collier County Enterprise Debt:
Currently, the Collier County Water and Sewer District (District) is the only enterprise activity
with bonded debt outstanding. The Collier County Debt Policy does not set a maximum
allowable enterprise debt ratio, but coverage requirements are set by bond covenants. Net
revenues, defined as operating revenues plus non-operating revenues less operating expenses,
excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined
as net revenues plus system development fees and special assessments must cover bonded debt at
125%. Net revenue coverage on bonded debt was 454% and total pledged funds coverage on
bonded debt was 539% for fiscal year 2008. Net revenue coverage increased during fiscal year
2008 as operating revenues increased by 8.9% and operating expenses decreased by 13.8%, due
to cost saving measures put in place by District management and the reclassification of payment
in lieu of taxes from the operating expense category. Bonded debt service payments increased
by 22.3% as the Series 2006 bond issue, closed in December 2006, was outstanding for the entire
fiscal year. Total pledged funds coverage went down primarily as a result of an 86.5% decrease
in system development fees collected.
The District's calculated coverage on subordinated debt, all State Revolving Fund Loans, is
538%. The total pledged funds coverage required by the loan agreements varies between 115%
and 125%.
During fiscal year 2008, the District borrowed $2,401,552 from the State Revolving Fund
program
b/rofdt d
13 I~
The District does not maintain separate Renewal and Replacement Reserves for its capital
spending program. The District's current strategy of revenue-centric, cost-contained, real-time
capital program management, and its decisions against measured operational risk, were
deliberately designed to manage deferral of capital construction, This responds to market
uncertainty and, therefore, increases the District's outstanding debt coverage. Beginning in
FY07 and throughout FY08, the District, operating in a volatile and uncertain cost and revenue
market environment, deferred with measured operational risk significant levels of spending in
capital improvement projects. The deferred capital expenditures in FY08 alone approximated
$167 million. The District recognized that in the period FY07 through FYlO it would be facing
significant increases in fixed operating costs with declining operating margins. The deferral of
significant capital rehabilitation projects in FY07 and FY08 continues to enhance the District's
liquidity and financial flexibility. These decisions protect the District's highly favorable bond
rating; avoids the potential of future user-fee rate spikes, and avoids unplanned and costly
borrowing with the associated increases in annual debt service. It also puts the District in the
right financial position to respond when the economic environment recovers. However, this
deferral of capital spending has elevated the risk level of everyday operations within the utility.
This risk level is currently acceptable in the balance of the overall mission to stay in operational
and regulatory compliance, meet customer demand, and posture for a best-value future. These
deferrals, however, cannot be considered avoided cost as the deferred projects will need to be
completed within the next three to five years.
3 (lo(lf\ ~
13A -,
THIS PAGE INTENTIONALLY LEFT BLANK
0811-1001887
3"6~O~ cJ;
I, 13A :1
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Clerk of the Circuit Court
Year Ended September 30, 2008
With Report oflndependent Certified Public Accountants
Collier County, Florida
Clerk of the Circuit Court
'(({Dq
13 A
cJ-;
'I
,
Special-Purpose Financial Statements
Year Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds......................"......,......................................................................................4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- General Fund..........,........."....,................................................,............,......5
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- Court Services Fund....................................................................................6
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- Public Records Modernization Fund ..........................................................7
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- Juvenile Assessment Fund ..........................................................................8
Special-Purpose Balance Sheet - Agency Funds ............................................................................9
Notes to Financial Statements..........................,..,..........................................................................l 0
Combining Financial Statements
Combining Balance Sheet - Agency Funds...................................................................................26
Statement of Changes in Assets and Liabilities - Agency Funds..................................................27
Other Reports
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance With Government Auditing Standards ...........28
Management Letter....................................................................................................................... .30
08]1-1001887
1111111111111111111111111,,"""" i!J ERNST & YOUNG
Ernst & Young LLP
Suite 1200
40l [ast Jackson Street
Tampa, Florida 33602
Tel: + 1 813 225 4800
Fax: +-1 813 225 47lJ
www.ey,cofl1
'31 [0 ~O~ u?-
13 A
Report of Independent Certified Public Accountants
The Honorable Dwight E. Brock, Clerk ofthe Circuit Court
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund and
the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit
Court (the Clerk), as of and for the year ended September 30, 2008, as listed in the table of
contents. These special-purpose financial statements are the responsibility of the Clerk's
management. Our responsibility is to express opinions on these special-purpose financial
statements based on our audit. The prior year summarized comparative financial information has
been derived from the Clerk's special-purpose financial statements for the year ended
September 30, 2007 and in our report dated March 4, 2008, we expressed unqualified opinions
on the respective financial statements of each major fund and the aggregate remaining fund
information.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Clerk's internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Clerk's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts
and disclosures in the special-purpose financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall special-
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinions.
As discussed in Note I, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.29, Florida Statutes, and
Chapter 10.577(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the Clerk's
financial position and its changes in financial position, where applicable, thereof, for the year
then ended in conformity with accounting principles generally accepted in the United States,
Additionally, the special-purpose statements present only the Clerk and do not purport to, and do
not, present fairly the financial position of Collier County, Florida, as of September 30, 2008,
and the changes in its financial position, where applicable, for the year then ended, in conformity
with accounting principles generally accepted in the United States.
0811-1001887 1
f\fnMn"corfi,.,,'d SY-"UI'()<',h)ll,,'1
, I
31[~61
13A
tY
I
111111111111111111111111111"'''' ill ERNST & YOUNG
ln our opinion, the special-purpose financial statements referred to above present fairly, ill all
material respects, the respective financial position of each major fund and the aggregate
remaining fund information of the Clerk as of September 30, 2008, and the respective changes in
financial position thereof, and the respective budgetary comparison for the general fund, the
court services fund, the public records modernization fund, and the juvenile assessment fund for
the year then ended in conformity with accounting principles generally accepted in the United
States,
In accordance with Government Auditing Standards, we have also issued our report dated
February 8,2009 on our consideration of the Clerk's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Our audit was conducted for the purpose of forming opinions on the special-purpose financial
statements. The combining information is presented for purposes of additional analysis and is not
a required part of the special-purpose financial statements, The combining information has been
subjected to the auditing procedures applied in the audit of the special-purpose financial
statements and, in our opinion, is fairly stated in all material respects in relation to the special-
purpose financial statements taken as a whole.
This report is intended solely for the information and use of the Clerk, management, the Board of
County Commissioners of Collier County, Florida, and the Auditor General of the State of
Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
~ofMLL'P
February 8, 2009
0811-1001887
2
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Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- General Fund
Year Ended September 30, 2008
08]1-1001887
5
~r\lotd1
13 A
III
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - Court Services Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Original Final Actual (NeJ!:ative)
Revenues:
Charges for services $ 12,080,500 $ 12,080,500 $ t3,000,945 $ 920,445
Interest income 236,700 236,700 59,404 (177,296)
Total revenues 12,317,200 12,317,200 13,060,349 743,149
Expenditures:
General government:
Personal services 9,228,000 9,228,000 8,96t,905 266,095
Operating expenditures 746,707 774,1 I 1 335,72t 438,390
Capital Outlay
Total expenditures 9,974,707 10,002,111 9,297,626 704,485
Excess of revenues over expenditures 2,342,493 2,315,089 3,762,723 1,447,634
Other financing sources (uses):
Transfers in from other funds
Transfers out.
Other funds
Distribution of excess court revenue to
the State (2,342,493) (2,315,089) (3,762,723) (1,447,634)
Total other financing sources (uses) (2,342,493) (2,315,089) (3,762,723) (1,447,634)
Excess of revenues and other financing
sources over expenditures
Fund balance - beginning cfyear
Fund balance - end afyear $ - $ - $ - $
See accompanying notes.
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
J1Joq
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Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - Public Records Modernization Fund
Year Ended September 30, 2008
0811-]001887
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Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- Juvenile Assessment Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Miscellaneous $ 1,300 $ 1,300 $ 27,079 $ 25,779
Interest income
Total revenues 1,300 1,300 27,079 25,779
Expenditures:
General government:
Operating 100,000 100,000 tOO,OOO
Total expenditures 100,000 100,000 tOO,OOO
Excess (deficiency) of expenditures over (under) revenues (98,700) (98,700) (72,921) 25,779
Other financing sources:
Transfers in from the Collier County, Florida
Board of County Commissioners 98,700 98,700 72,921 (25,779)
Tota] other financing sources 98,700 98,700 72,921 (25,779)
Excess (deficiency) of revenues and other
financing sources over (under) expenditures and other uses
Fund balance - beginning of year 1I,123 11,123
Fund balance - end afyear $ - $ - $ 11,123 $ 11.123
See accompanying notes.
Og] 1-1001887
8
Collier County, Florida
Clerk of the Circuit Court
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Special-Purpose Balance Sheet - Agency Funds
Assets
Cash and cash equivalents
Due from other funds
Total assets
Liabilities
Due to the Collier County,
Florida Board of County Commissioners
Due to other governments
Due to other funds
Deposits
Total liabilities
See accompanying notes.
08]].100]887
September 30
2008 2007
$ 17,848,166 $ 17,273,210
8,846
$ 17,848.166 $ 17,282,056
$
86,359 $
1,349,382
16,412,425
$ 17.848.166
55,536
907,195
41,619
16,277,706
$ 17,282,056
9
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2008
1, Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Clerk of the Circuit Court (the Clerk) is an elected constitutional
officer as provided for by the Constitution of the State of Florida. The Clerk's budget is
presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the
Florida Clerks of Court Operations Corporation (the Corporation) for the court services fund.
The Clerk's budget including the public records modernization fund and the juvenile assessment
center fund is approved by the Clerk.
The special-purpose financial statements presented include the general fund, special revenue
funds, and agency funds of the Clerk's office. The accompanying special-purpose financial
statements were prepared for the purpose of complying with Section 218.3 9, Florida Statutes,
and Section 10.557(3), Rules of the Auditor Generalfor Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires
the Clerk to only present fund financial statements. Accordingly, due to the omission of
government-wide financial statements and related disclosures including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of the Clerk as of September 30, 2008 and the changes in
its financial position for the year then ended in conformity with Governmental Accounting
Standards Board (GAS B) Statement No, 34, Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments, but otherwise constitute special-
purpose financial statements prepared in conformity with accounting principles generally
accepted in the United States..
The financial activities of the Clerk, as a constitutional officer, are included in the Collier
County, Florida Comprehensive Annual Financial Report.
The general operations of the Clerk are funded by fees from third parties, appropriations from
the Collier County, Florida Board of County Commissioners (Board), and interest income.
Pursuant to Section 218.32(2) 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 State via charging fees and fines and any surplus is returned to the State.
0811~IOO] 887
10
Collier County, Florida
Clerk of the Circuit Court
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Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Clerk. The
focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements for these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets.
The Clerk reports the following major governmental funds:
General Fund - The general fund is used to account for all revenue and expenditures
applicable to the general operations of the Clerk, which are not accounted for in another
fund. All operating revenue not specifically restricted or designated as to use, is recorded in
the general fund.
Court Services Fund - This fund was established to account for court-related filing fees,
service charges, fines, and court costs of the Clerk as mandated by Section 28.35, Florida
Statutes.
Public Records Modernization Fund - This fund is mandated by Section 28.24(12)(d),
Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and
maintenance of equipment, personnel training, and technical assistance in modernizing the
public records system of the office. Effective July 1, 2004, an additional amount is collected
pursuant to Section 28.24 (12) (e), Florida Statutes, and used exclusively for funding court-
related technology needs.
The Clerk also maintains the following non-major fund:
Juvenile Assessment Fund - This fund was established to account for revenues and
expenditures applicable to juvenile assessments center.
0811-1001887
11
Collier County, Florida
Clerk ofthe Circuit Court
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13 A 1.'
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are
classified as court-related and non-court-related. The Clerk's general fund activity, which is
classified as non-court-related, is funded through service charges for recording instruments and
documents into the official records, interest income and through transfers in from the Board.
Excess revenues at the end of the year, due back to the Board, are shown as distributions of
excess appropriations in the general fund.
Court-related activities are funded by the fees charged by the Clerk as authorized by Florida
Statutes, for maintaining the County and Circuit Court records, and collecting the fines and fees
assessed by the courts. These court fees are to be used exclusively for funding court-related
operations of the Clerk. The excess of revenues collected over expenditures is returned to the
Florida Clerks of Court Operations Corporation.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e" when they
become measurable and available to finance current liabilities of the 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 ofthe current period.
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 special-purpose financial statements.
Section 28.37(4), Florida Statutes, further provides that by January 1, each year; for the
preceding fiscal year October 1 through September 30, the Clerk must remit to the Department
of Revenue the cumulative excess of all fees, service charges, court costs, and fines retained by
the Clerk over the amount needed to meet the approved budget amounts established by
Section 28.36, Florida Statutes. The amount of the distribution is recorded as a liability and as
other financing use in the accompanying special-purpose financial statements.
08]]-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in governmental funds are capitalized in the basic financial statements
of Collier County, Florida rather than in the governmental funds of the Clerk.
Additionally, the Clerk reports the following fund type:
Fiduciary Funds - Agency Funds - These funds are used to account for assets held by the Clerk
in a trustee capacity or as an agent for individuals, private organizations, other governments, and
other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve
measurement of results of operations or have a measurement focus. Agency funds are accounted
for using the modified accrual basis of accounting.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturitIes of three
months or less. Prior to November, 2007 the cash equivalents included deposits with the Florida
State Board of Administration Local Government Surplus Trust Fund Pooled Investment
Account (SBA). Shares of this investment pool (SBA) are based on the pool's share price, which
approximates fair value. The Clerk has withdrawn all funds from the SBA accounts.
Compensated Absences
Full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of
unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees
receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave,
depending on years of service. Vacation leave and sick leave are included in operating costs
when the payments are made to employees. The Clerk does not, nor is he legally required to,
accumulate financial resources for these un-matured obligations. Accordingly, the liability for
compensated absences is not reported in the general fund, but rather is reported in the basic
financial statements of Collier County, Florida.
Use of Estimates
The preparation of these special-purpose financial statements requires management of the Clerk
to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the special-purpose
financial statements and the reported amounts of revenues and expenditures during that period.
Actual results could differ from those estimates.
OS] 1-1001887
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Collier County, Florida
Clerk ofthe Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Comparative Data
The special-purpose financial statements include certain prior year summarized comparative
information in total but not at the level of detail required for a presentation in conformity with
generally accepted accounting principles. Accordingly, such information should be read in
conjunction with the Clerk's special-purpose financial statements for the year ended
September 30, 2007, from which the summarized information was derived.
2, Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual
budget. The budget of the Clerk is prepared for the general fund transfer and juvenile assessment
funds, which is submitted to and approved by the Board. The Clerk also prepares and approves
the budget for the public records modernization fund and the budget related to his recording
function based on anticipated fees.
Pursuant to Section 28,36, Florida Statutes, a balanced court-related budget must be prepared on
or before August 15 and submitted to the Corporation. If the Clerk estimates that projected
revenues are insufficient to meet 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.
The budget is prepared on a basis consistent with accounting principles generally accepted in the
United States. The annual budget serves as the legal authorization for expenditures. Any
subsequent amendments to the Clerk's transfer budget funded by the Board must be approved by
the Board, amendments to the Clerk's fee budget are at the discretion of the Clerk, and any
amendments of the court budget must be approved by the Corporation for the court services
fund. Expenditures may 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.
08]1-]001887
14
)11; A "en
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process (continued)
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Clerk's cash and cash equivalents was as
follows:
Type
Carrying
Maturity Value Credit Ratin~
Cash on hand
Demand deposits
Total cash and cash equivalents
N/A $ 6,150 N/A
N/A 50,294,940 N/A
$ 50,301,090
The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each
fund type's portion of these balances is presented as cash and cash equivalents in the
accompanying special-purpose financial statements. lnterest income is allocated to each fund
based on its proportionate balance in the pool.
Cash and cash equivalents as of September 30, 2008 are reported as $32,452,924 and
$17,848,166 in the governmental funds and fiduciary funds, respectively.
Custodial Credit Risk
At September 30, 2008, the Clerk's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Credit Risk
The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the
deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415,
Florida Statutes, authorize the Clerk to invest in the Local Government Surplus Funds Trust
Fund or any intergovernmental investment pool authorized pursuant to the Florida Inter-local
Cooperation Act; Securities and Exchange Commission registered money market funds with the
highest credit quality rating from a nationally recognized rating agency; direct obligations of the
United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits
or savings accounts in banks organized under the laws of the United States and doing business
and situated in the State of Florida, savings and loan associations which are under state
supervision, or in federal savings and loan associations 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
The Clerk has no specific investment policy regarding interest rate risk.
4, Interest Income and Investment of County Funds
Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those
required to meet expenses. Interest revenue from funds invested is recorded as income of the
office of the Clerk and any excess interest earnings are returned to the Board at year-end as
described in Note I. Interest income of $32,310,084 reported in the general fund for the year
ended September 30, 2008 consists of $31,584,216 related to interest earned on funds invested
pursuant to Florida Statute 28.33, and $725,868 of interest earned on Clerk funds.
0811-100]887
16
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
5. Receivables
Pursuant to Florida Statutes, Section 28.246, the Clerk shall establish and maintain a system of
accounts receivable for court-related fees, charges, and costs. Since July I, 2004 the accumulated
receivables through September 30,2007 totaled $18,936,086. For the current period October 1,
2007 through September 30, 2008 accumulated additional receivables totaled $5,337,197 for a
total cumulative receivable balance of $24,273,283. This receivable is considered uncollectible
and is not recorded in the accompanying special-purpose financial statements. This outstanding
balance will be monitored and all efforts will be made to collect these and any future balances
outstanding due the Clerk.
For the current year, additional receivables include inter-fund receivables of $4,009,828 due
from the Board of County Commissioners for charges for services by the Clerk to the Board as
permitted by Florida Statutes. The Board of County Commissioners disputes these charges and
has refused to pay as of the date of these financial statements. These amounts have been reported
as deferred revenues on the balance sheet as they have not been receivable within the Clerk's
period of availability of sixty days of fiscal year end. Clerk management believes these charges
are appropriate under Florida Statutes.
6. Capital Assets
Capital assets used by the governmental fund type operations are capitalized in the basic
financial statements of Collier County, Florida rather than in the governmental funds of the
Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of
the Clerk and capitalized at cost in the basic financial statements of the Collier County, Florida.
Capital assets are valued at historical cost, or estimated historical cost if actual historical cost is
not available. Donated capital assets are valued at their estimated fair value on the date received.
The Clerk maintains custodial responsibility for the capital assets used by the office. No
depreciation has been provided on capital assets in the accompanying special-purpose financial
statements. However, depreciation expense on these assets is recorded in the basic financial
statements of Collier County, Florida.
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
7. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reflected in the
basic financial statements of Collier County, Florida:
September 30,
2007 Additions
September 30,
Deletions 2008
Accrued compensated absences
$ 1,670,114 $ 1,272,416 $ 1,131,005 $ 1,811,525
Of these obligations, approximately $1,231,837 is expected to be paid during the fiscal year
ending September 30, 2009. These long-term liabilities are not reported in the special-purpose
financial statements of the Clerk since they have not matured.
8. Employee Retirement Plan
Substantially all full-time employees of the Clerk are eligible to participate in the State of
Florida Retirement System (System), a cost-sharing multiple-employer defined benefit plan
administered by the State of Florida, Division of Retirement. The System is a defined benefit
plan for all state and participating county, district board, community college, and university
employees (Pension Plan). The System also offers eligible employees participation in an
alternative defined contribution plan (Investment Plan). The Clerk participates in the Elected
State Officers' Class. The plan is administered by the State of Florida. Contribution rates are
established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Clerk's employees are not determinable.
Employees participating in the Pension Plan, who retire at or after age 62 with six years of
credited service or with 30 years of service regardless of age, are entitled to a retirement benefit
payable monthly for life, equal to 1.6% for regular employees, 2% for senior management and
3 % for county elected officials of their average final compensation for each year of credited
service. Average final compensation is the employee's average of the five highest fiscal years of
salary earned during credited service. Vested employees may retire before age 62 and receive
benefits that are reduced 5% for each year prior to normal retirement age or date. Employees
participating in the Pension Plan are vested after one year of service with no age requirements.
The System also provides death and disability benefits. Benefits are established by Chapter 121,
Florida Statutes.
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July 1, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a system employer. The participation in the program does not change
conditions of employment. When the DROP period ends, a maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.fl.us.
The Clerk is required to contribute an actuarially determined rate. The current rate is 16.53% for
county elected officials, 9.85% for regular employees, 13.12% for senior management, and
10.91 % for DROP employees. The contribution requirements of the Clerk are established and
may be amended by the State of Florida. The Clerk's contributions to the plan for the years
September 30, 2008, 2007, and 2006 were $1,213,623, $1,134,120, and $802,329, respectively,
equal to the required contributions for each year.
9. Related Party Transactions
The Board provided funding for the Clerk in the amount of $364,800. The Supervisor of
Elections also provided funding in the amount of a $37,000 transfer. At September 30, 2008, the
Clerk had a payable due to the Board of $24,534,005 comprised as follows:
Distribution of excess interest
Agency funds due
Amounts due for various services
Total due to Board of County Commissioners
$ 24,384,015
86,359
63,631
$ 24,534,005
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
9. Related Party Transactions (continued)
Also at September 30, 2008 the Clerk had a receivable due from the Board of $4,848,777
comprised as follows:
Charges for services - deferred revenue
Investment Interest
Amounts due from various services
Total due from Board of County Commissioners
$ 4,009,828
810,744
28,205
$ 4,848,777
Additionally a transfer of $72,921 was made to the Juvenile Assessment fund by the Board.
10. Risk Management
Collier County, Florida (the County) is exposed to various risks of loss, including, but not
limited to general liability, health and life, property and casualty, auto and physical damage, and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with these
self-insured risks are reported in the basic financial statements of the County. During the year
ended September 30, 2008, the Clerk was charged $2,473,959 by the County for participation in
the risk management program.
The County retains the first $350,000 per claim for workers' compensation, and has purchased
outside excess coverage for up to $25 million for employment liability claims and statutory
limits for each injury and illness. The County also provides coverage for $200,000 per claim for
general liability and auto liability coverage and has purchased outside excess coverage for up to
$2 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28,
Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per
occurrence can only be recovered through an 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 also
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.
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
10. Risk Management (continued)
The County is self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 per covered member and has purchased
outside excess coverage for up to $2 million for each claimant. An actuarial valuation is
performed each year to estimate the amounts needed to pay prior and future claims and to
establish reserves.
11. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits other than
Pensions.
Plan Description. The Clerk participates in a group health care plan that COvers eligible retirees,
and their dependents, of the Board of County Commissioners and all Constitutional Officers with
the exception of the Sheriff. The Board administers the plan and establishes the benefits. The
healthcare plan does not issue a stand-alone financial report, however additional actuarial
information regarding the plan as a whole is disclosed in the notes to the financial statements of
Collier County.
As required by Section 112.081, Florida Statutes, retirees, and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
age 62 and have 6 years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. The Clerk provides no subsidy to the retiree, or their dependents,
for group health care.
Funding Policy. The contribution requirements of the plan members and the employers are
established and may be amended by the County. The plans are financed by the participating
agencies on a pay as you go basis through the County's self insurance internal service fund. The
Clerk contributes an additional amount to the County per each active employee to accumulate
resources to fund retiree healthcare. The Clerk contributed $9,455 to the group health plan for
OPEB costs during the fiscal year ended September 30,2008. The Clerk's share of the County's
net OPEB obligation at September 30, 2008 was $21,268, which is recorded in the basic
financial statements of the County.
08]1-1001887
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Collier County, Florida
Clerk ofthe Circuit Court
Notes to Special-Purpose Financial Statements (continued)
11. 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 offunding that, if paid by on an ongoing basis,
is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a
period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
12. Claims and Contingencies
Litigation
The Clerk of the Circuit Court is routinely involved as defendant, plaintiff and as a "party in
interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended
September 30, 2008, the Clerk was involved in approximately 8,377 collection cases. These are
court actions designed to collect fees and costs imposed by the courts in criminal cases. The
Clerk was involved in approximately 934 bond forfeiture actions. Those cases involve collecting
forfeitures of criminal appearance bonds. There is currently one case pending before the Second
District Court of Appeal. There are approximately 28 actions for foreclosure of property in
which the Clerk has been a named defendant.
In addition to the above action, the Clerk was a plaintiff in an action to recover funds from a
party who misrepresented information in order to wrongfully seize $20,000 from the Clerk. The
Clerk obtained a judgment in that case and is currently seeking to enforce the judgment. The
Clerk is a party defendant in pending litigation relating to the issuance of a tax deed wherein the
plaintiffs assert in part that the tax deed sale was not properly conducted and that the allegedly
rightful property owner did not receive notice of the tax deed sale.
Collier County Litigation
The law firm of Woodward, Pires and Lombardo, P.A., represents the Clerk as plaintiff in a
Declaratory Judgment and a request for an accounting action which has been pending since
2004. The defendant is the Board of County Commissioners and two County employees (one of
which has retired). In that action, there was a 14-day hearing to disqualify counsel, which was
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
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Notes to Special-Purpose Financial Statements (continued)
12. Claims and Contingencies (continued)
denied after the extended hearing. During the hearing numerous expert witnesses were hired and
called as witnesses. In addition, during discovery, the Clerk learned that the Fire Department
Chief for the Isle of Capri Fire Department, to which some of the financial records pertain, plead
"No Contest" to a misdemeanor violation regarding record keeping and has claimed a Fifth
Amendment right (right not to incriminate himself) in response to questions propounded at
depositions on the case.
During the course of the Declaratory action litigation, and at or about the time of filing the
Motion to Disqualify Clerk's Counsel, the County and a County employee (since retired) each
filed a Petition for Writ of Quo Warranto alleging the Clerk has no right to audit, examine, or
inspect anything other than to determine lawfulness of expenditures and that the time in which
the audit can occur is only between a request for payment being made by the Clerk and payment
of the bill. This action forced the Clerk to employ additional counsel to represent the Clerk as the
Defendant in the Quo Warranto action. The Clerk then employed the law firm of Ackerman,
Link and Sartory to represent the Clerk in the Quo Warranto action.
The cases have now had four separate judges assigned and the Clerk has had to ask to disqualify
one judge because it was discovered that at the direction of the Chief Judge, the Deputy Court
Administrator held exparte communications with counsel for the County and the County
employees about who to appoint as a replacement judge in the case.
On September 24, 2007, the fourth assigned judge (being assigned the case by the Chief Judge
without notice to or at the request of any party, removing the case from the judge that had
presided over the case for over 15 months) after having only been assigned to the case for less
than a month entered a final judgment, granting motions for summary judgment filed by the
County. This final judgment is currently on appeal to the Second District Court of Appeals with
Common Cause and the Florida Association of Court Clerks and Comptrollers (FACC) filing
Amicus Briefs on behalf of the Clerk. The cases were fully briefed and argued and the parties are
awaiting the judgment ofthe Second District Court of Appeals.
There has also been another case which was filed by the County in 2007 asserting that the
Clerk's office is a budget office of the County and that interest income derived by the Clerk from
investing Collier County taxpayer funds are not income of the Clerk. The Clerk and his counsel
attempted to get the Florida Attorney General to resolve this issue, but the County refused and
0811-100]887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
12. Claims and Contingencies (continued)
filed the case in Circuit Court. This lawsuit concerns the same issues involved in a 2002 case
between the Clerk and the County, initiated by the Clerk, wherein in 2002, the County settled
with the Clerk agreeing that Florida Statute 28.33, which states as follows:
"Investment of county funds by the clerk of the circuit court - The clerk of the circuit court
in each county shall invest county funds in excess of those required to meet expenses as
provided in s 218.415. No clerk investing such funds shall be liable for the loss of any
interest when circumstances require the withdrawal of funds placed in a time deposit and
needed for immediate payment of county obligations. Except for interest earned on moneys
deposited in the registry of the court, all interest accruingfrom moneys deposited shall be
deemed income of the office of the clerk of the circuit court investing such moneys and shall
be deposited in the same account as are other fees and commissions of the clerk's office. "
was controlling. The Board passed a resolution stating the above as the settlement. The County
and Clerk are now re-litigating that same issue. On June 18, 2008, the trial court entered a partial
final summary judgment in favor of the county on the interest income issue. The Clerk timely
appealed to the Second District Court of Appeals. The case is fully briefed and oral argument
was held December 3, 2008.
The Clerk believes that the checks and balances for local government, which are in jeopardy,
demand these actions be defended vigorously. The Clerk believes that the fundamental interest
of taxpayers to preserve the traditional role of the Clerk of Courts, as a check and balance in
local government, is too great to abandon.
The Clerk and its counsel believe that the Clerk's position is legally correct. There are claims for
damages and the Clerk is incapable of determining what the outcome will be. If the Court allows
the County to control income from interest revenue and the County maintains its positions that
they are not required to fund any of the financial functions of the Clerk's office, the Clerk will be
unable to fund its operations.
The cost expended by the Clerk in terms of attorney fees and costs related to litigation, during
the year ended September 30, 2008, was approximately $860,000.
0811-1001887
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Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
13. Subsequent Event
On September 25,2008 the Court issued an oral ruling in Case 07-l056-CA dated October 1,
2008 requiring the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash
bond previously deposited into the Court registry. On October 6, 2008 the Second District Court
of Appeal reversed the Court orders and remanded back to the Twentieth Judicial Circuit for a
full evidentiary hearing related to maintaining the automatic appellate stay and the propriety of a
bond, if any, and the amount, if any, of such a bond. On December 1, 2008, the Twentieth
Judicial Circuit Court conducted the full evidentiary hearing pursuant to the mandate of the
Second District Court of Appeal and on December 18, 2008 the Court Ordered and Adjudged
that the Clerk cause to be released to the County's General Fund the $3,239,000 cash bond
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December 1, 2008 are stayed during
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.31 O(b )(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January 15, 2009, the Clerk shall account, in writing, to the Board of County Commissioners the
total amount of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January 15,2009, the Clerk shall transfer from his
accounts, two-thirds of the income received on County funds for the previous calendar month, to
the Board's General Fund. The Court found that a cash or surety bond was inappropriate.
In an opinion filed on January 30, 2009 the Second District Court of Appeal of Florida, in case
2D08-3126, reversed and remanded the trial court's December 18, 2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute 28.33 as "clear and unambiguous" in authorizing the Clerk of
Courts to claim as income interest earned on funds that the Clerk, as custodian of County funds,
has invested on behalf of the County. This opinion will not be final until all proceedings are
concluded.
08] 1-1001887
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0811-1001887
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Combining Financial Statements
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Collier County, Florida
Clerk of the Circuit Court
Combining Balance Sheet - Agency Funds
September 30, 2008
Jury and
Clerk's Court Ordinary
A~ency Registry Witness Total
Assets
Cash and cash equivalents $ 3,752,011 $ 14,071,318 $ 24,837 $ 17,848,166
T atal assets $ 3.752,011 $ 14,071.318 $ 24.837 $ 17.848,166
Liabilities
Due to the Collier County, Florida
Board of County Commissioners $ 86,359 $ - $ - $ 86,359
Due to other governments 1,324,545 24,837 1,349,382
Deposits 2,341,107 14,071,318 16,412,425
Total liabilities $ 3.752.011 $ 14,071.318 $ 24,837 $ 17,848.166
081]-1001887
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Collier County, Florida
Clerk of the Circuit Court
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Statement of Changes in Assets and Liabilities - Agency Funds
Year Ended September 30, 2008
Balance Balance
October 1, September 30,
2006 Additions Deletions 2007
Assets
Cash and cash equivalents $ 17,273,210 $ 254,330,212 $ 253,755,256 $ 17,848,166
Due from other funds 8,846 8,846
Total assets $ 17.282.056 $ 254,330,212 $ 253.764.102 $ 17,848.166
Liabilities
Due to the Collier County, Florida
Board of County Commissioners $ 55,536 $ 144,582 $ 113,759 86,359
Due to other governments 907,195 10,820,073 10,377,886 1,349,382
Due to other fWIds 41,619 41,619
Deposits 16,277,706 243,365,557 243,230,838 16,412,425
Total liabilities $ 17,282,056 $ 254,330.212 $ 253,764,102 $ 17,848,166
27
0811-1001887
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Other Reports
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IIIlllllfllllllllllllllllll'"'', !!J ERNST & YOUNG
,
Ernst & Young t'lP
Suite 1200
401 East Jackson Street
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Tel: +1813 225 4800
I~ax: +1 813 22~-j 4711
www.ey.com
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Report of Independent Certified Public Accountants on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Special-Purpose Financial Statements Performed in Accordance With
Government A uditing Standards
The Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Clerk of the Circuit Court (the Clerk)
as of and for the year ended September 30, 2008, and have issued our report thereon dated
February 8, 2009. We conducted our audit in accordance with auditing standards generally
accepted in the United States and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Clerk's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Clerk's internal control over financial reporting. Accordingly,
we do not express an opinion on the effectiveness of the Clerk's internal control over financial
reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
0811-]001887
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's special-purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
This report is intended solely for the information and use of the Clerk, management, others
within the entity, the Board of County Commissioners of Collier County, Florida, and the
Auditor General of the State of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
~ofMLL'P
February 8, 2009
0811-1001887
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['ampa, Florida 33602
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Tel: +1813225 4BOO
Fax: +1 813 225 4711
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Management Letter
The Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We have audited the special-purpose financial statements of each maj or fund and the aggregate
remaining fund information of the Collier County, Florida Clerk of the Circuit Court (the Clerk)
as of and for the year ended September 30, 2008, and have issued our report thereon dated
February 8, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the State of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated February 8, 2009 on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in'conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current year annual audit.
Prior Year Findings and Recommendations
2007-1 Financial Statement Close Process
Observation
In performing the fiscal year 2007 audit, we identified certain audit differences that resulted in
adjustments to the Clerk's special-purpose financial statements. Noted audit differences included
reclassifications and other adjustments in the areas of reporting of cash and cash equivalent
balances; revenue and expense recognition, and other modifications in the special-purpose
financial statement presentation and disclosure. These differences could have been identified by
management through a more effective financial statement close process.
0811-1001887 30
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Recommendation
We recommend that the Clerk's accounting department review its financial statement close
process and establish formalized procedures to ensure the proper reconciliation of all significant
accounts and the appropriate disposition of reconciling items. The Clerk's review of its financial
statement close process should also incorporate the implementation of effective monitoring
controls, such as documented supervisory reviews and approvals at various stages of the process.
In reviewing and implementing changes to its financial statement closing process, the Clerk
should review the duties of its accounting personnel to assess whether it has sufficient
accounting personnel with the appropriate experience and training to effectively perform the
financial statement close process.
Current Status
In the current fiscal year just ended we have drawn on the knowledge of the finance department
to assist in preparation of the documents necessary for the closing and audit processes. The new
personnel in our office are now more experienced after completing a second audit. Additionally,
we have transferred additional personnel into the accounting department to assist us with our
daily processes as well as our year-end closing process.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than
the internal control recommendations included above.
The Clerk was established by the Constitution of the State of Florida, Article VIII, Section 1 (d).
Section 10.554(1)(i)8., Rules of the Auditor General, requires a statement as to whether or not
the Clerk complied with Section 28.35, Florida Statutes, regarding the budget and performance
standards certified by the Florida Clerk of Courts Operations Corporation. The results of our
audit did not identify any instances of noncompliance that are required to be reported.
0811-100]887
31
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This management letter is intended solely for the information of the Clerk, management, the
Board of County Commissioners of Collier County, Florida, and the Auditor General of the State
of Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
~NY-dT hUp
February 8, 2009
0811-1001887
32
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Property Appraiser
Year Ended September 30, 2008
With Report ofIndependent Certified Public Accountants
0811-1007792
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Collier County, Florida
Property Appraiser
Special-Purpose Financial Statements
Year Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - General Fund .................. ............... .............................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
General Fund................................................................................................................................ .4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- (Budgetary Basis) - General Fund..............................................................5
Notes to Special-Purpose Financial Statements...............................................................................6
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in
Accordance with Government Auditing Standards.....................................................................16
Management Letter....................................................................................................................... .18
0811-]007792
1111111111111111111111111111111'" i!J ERNST & YOUNG
Ernst & Young LLP
100 Northeast Third Avenue
Suite 700
Fort Lauderdaie, Flol-ida 33301
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Report of Independent Certified Public Accountants
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the accompanying special-purpose financial statements of the general fund of
the Collier County, Florida Property Appraiser (the Property Appraiser), as of and for the year
ended September 30, 2008 as listed in the table of contents. These special-purpose financial
statements are the responsibility of the Property Appraiser's management. Our responsibility is
to express an opinion on these special-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Property Appraiser's internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Property Appraiser's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the special-purpose financial statements,
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall special-purpose financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
As discussed in Note 1, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, Chapter
10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the
Property Appraiser's financial position and its changes in financial position, where applicable,
thereof, for the year then ended in conformity with accounting principles generally accepted in
the United States. Additionally, the special-purpose statements present only the Property
Appraiser and do not purport to, and do not, present fairly the financial position of Collier
County, Florida, as of September 30, 2008, and the changes in its financial position, where
applicable, for the year then ended, in conformity with accounting principles generally accepted
in the United States.
08] 1-1007792 1
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the general fund of the Property Appraiser as of
September 30, 2008, and the changes in financial position thereof and the budgetary comparison
for the general fund for the year then ended in conformity with accounting principles generally
accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2008 on our consideration of the Property Appraiser's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
This report is intended solely for the information and use of the Property Appraiser,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~TMLLP
December 10,2008
08] 1-1007792
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Collier County, Florida
Property Appraiser
Special-Purpose Balance Sheet - General Fund
September 30, 2008
Assets
Cash and cash equivalents
Total assets
Liabilities and fund balance
Liabilities:
Accrued liabilities
Due to Collier County, Florida Board of County Commissioners
Due to other taxing districts
T otalliabi1ities
Fund balance
T otalliabilities and fund balance
See accompanying notes.
0811-1007792
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$ 1,137,662
$ 1,137,662
$ 78,611
943,383
115,668
1,137,662
$ 1,137,662
3
Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures,
and Changes in Fund Balance - General Fund
Year Ended September 30, 2008
Revenues:
Commissions and fees
Miscellaneous
Total revenues
Expenditures:
General government:
Personal services
Operating
Capital outlay
Distribution of excess fees to other taxing districts
Total expenditures
Excess ofrevenues over expenditures
Other financing uses:
Distribution of excess fees to Collier County, Florida
Board of County Commissioners
Total other financing uses
Excess of revenues over expenditures and other financing uses
Fund balance, beginning of year
Fund balance, end of year
See accompanying notes.
0811-1007792
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$ 6,681,996
683,314
7,365,310
4,813,602
1,426,467
66,190
115,668
6,421,927
943,383
(943,383)
(943,383)
$
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Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual- (Budgetary Basis) - General Fund
Year Ended September 30, 2008
Variance With
Final Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Commissions and fees $ 6,681,996 $ 6,681,996 $ 6,681 ,996 $
Miscellaneous revenues 683,314 683,314
Total revenues 6,681,996 6,681,996 7,365,310 683,314
Expenditures:
General government:
Personal services 4,914,546 4,914,546 4,813,602 100,944
Operating 1,558,333 1,558,333 1,426,467 131,866
Capital outlay 209,117 209,117 66,190 142,927
Total expenditures 6,681,996 6,681,996 6,306,259 375,737
Excess of revenues over expenditures 1,059,051 1,059,051
Other financing uses:
Distribution of excess fees to Collier
County, Florida Board of County
Commissioners (943,383) (943,383)
Distribution of excess fees to other
taxing districts (115,668) (115,668)
Total other financing uses (1,059,051) (1,059,051 )
Excess of revenues over expenditures
and other financing uses $ - $ $
Fund balance, beginning of year $
Fund balance, end of year $
See accompanying notes.
0811-1007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Property Appraiser (the Property Appraiser) is an elected
constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to
Chapter 129, Florida Statutes, the Property Appraiser's budget is submitted to the Florida
Department of Revenue for approval, and a copy is forwarded to the Collier County, Florida
Board of County Commissioners (Board).
The special-purpose financial statements presented include the general fund of the Property
Appraiser's office. The accompanying special-purpose financial statements were prepared for the
purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the
Auditor Generalfor Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor Generalfor Local Governmental Entity Audits, requires
the Collier County, Florida Property Appraiser financial statements to only present fund financial
statements. Accordingly, due to the omission of government-wide financial statements and
related disclosures, including a management's discussion and analysis, these special-purpose
financial statements do not constitute a complete presentation of the financial position of the
Collier County, Florida Property Appraiser as of September 30, 2008 and the changes in its
financial position for the year then ended, in conformity with Governmental Accounting
Standards Board (GAS B) Statement No. 34, Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments, but otherwise constitute financial
statements prepared in conformity with U.S. generally accepted accounting principles.
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 special-purpose 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.
08J 1-1007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets. The Property Appraiser's only governmental fund is the general fund. The general fund is
used to account for the general operations of the Property Appraiser.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Property Appraiser considers revenues to be available if they are collected within 60
days after year end. Expenditures are recorded when the related fund liability is incurred, except
for compensated absences, which are recognized as expenditures to the extent they have
matured.
Substantially all of the Property Appraiser's revenue is received from taxing authorities. These
moneys are virtually unrestricted and are revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenue at the time of receipt; earlier
if the "susceptible to accrual" criteria are met.
Miscellaneous revenue is recognized as it is earned and becomes measurable and available to pay
liabilities of the current period.
Florida Statutes provide that the amount by which revenues exceed annual expenditures be
remitted to each governmental agency immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized.
Florida Statutes further provide that the excess of revenues over expenditures held by the
Property Appraiser be distributed to each governmental agency in the same proportion as the fees
paid by each governmental agency bear to total fee revenues. The amount of this distribution is
recorded as a liability and as an expenditure or other financing use in the accompanying
special-purpose financial statements.
0811-1007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in the general fund operations are capitalized in the basic financial
statements of Collier County, Florida rather than in the governmental funds of the Property
Appraiser.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less.
Compensated Absences
All full-time employees of the Property Appraiser are allowed to accumulate an unlimited
number of hours of unused sick time and up to 200 hours of unused vacation leave. Upon
termination, employees receive lOO% of allowable accumulated vacation hours and a percentage
of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation time
and sick leave are included in operating costs when the payments are made to employees. The
Property Appraiser does not, nor is he legally required to accumulate financial resources for
these unmatured obligations. Accordingly, the liability for compensated absences is not reported
in the general fund, but rather is reported in the basic financial statements of Collier County,
Florida.
Use of Estimates
The preparation of the special-purpose financial statements requires management of the Property
Appraiser to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's
annual budget. The Property Appraiser prepares a budget for the general fund and submits it to
the Florida Department of Revenue for approval. A copy of the approved budget is provided to
the Board of County Commissioners. Any subsequent amendments to the Property Appraiser's
total budget must be approved by the Florida Department of Revenue. The annual budget serves
as the legal authorization for expenditures. Expenditures may not legally exceed appropriations
at the fund level. Appropriations lapse at year end. Budget control is maintained at the
departmental major object expenditure level. Budgetary changes within major object expenditure
categories are made at the discretion of the Property Appraiser.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs
from generally accepted accounting principles (GAAP). Certain revenues received from non ad
valorem commissions and other sources and expenditures paid for from these revenues are not
recognized under the budgetary basis of accounting; however, the revenues and expenditures
have been recognized under GAAP.
The actual results of operations in the statement of revenues, expenditures, and changes in fund
balance - budget to actual - general fund are presented on a budgetary basis. Adjustments to
convert the results of operations for the year ended September 30, 2008 from the budgetary basis
of accounting to the GAAP basis of accounting are as follows:
Miscellaneous
Revenues
Budgetary basis
Revenues and expenditures not budgeted
GAAP basis
$
683,314
$ 683,314
0811-1001792
9
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Property Appraiser's cash and cash equivalents
was as follows:
Type
Carrying
Value
Cash on hand
Deposit accounts
Repurchase agreements
Total cash and cash equivalents
$ 125
247,214
890,323
$ 1,137,662
Custodial Credit Risk
At September 30, 2008, the Property Appraiser's deposits were entirely covered by federal
depository insurance or by collateral pledged with the state treasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter, in the event of default by a participating financial institution
(a qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Interest Rate Risk
The Property Appraiser has no specific investment policy regarding interest rate risk.
Credit Risk
The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes,
regarding the deposit of funds received and the investment of surplus funds. Sections 219.075
and 218.415, Florida Statutes, authorize the Property Appraiser to invest in the Local
Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant
to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered
money market funds with the 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
08] ]-1007792
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
associations which are under state supervision, or in federal savings and loan associations located
in the State of Florida and organized under federal law and federal supervision, provided that any
such deposits are secured by collateral as may be prescribed by law.
4. Capital Assets
Capital assets used by the Property Appraiser are reported in the basic financial statements of
Collier County, Florida rather than in the general fund of the Property Appraiser. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Property
Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida.
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is
not available. Donated capital assets are valued at their estimated fair value on the date received.
The Property Appraiser maintains custodial responsibility for the capital assets used by the
office. No depreciation expense has been provided on capital assets in these special-purpose
financial statements. However, depreciation expense is recorded in the basic financial statements
of Collier County, Florida.
S. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reported in the
basic financial statements of Collier County, Florida:
October 1,
2007
Net
Increase
September 30,
2008
Accrued compensated absences
$388,562
$16,229
$404,791
Of these liabilities, approximately $25,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Property Appraiser since they have not matured.
0811-1007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan
Substantially all full-time employees of the Property Appraiser filling regularly established
positions are eligible to participate in the State of Florida Retirement System (System), a
cost-sharing multiple-employer public retirement system administered by the State of Florida,
Division of Retirement. The System is a defined benefit plan for all state, and participating
county, district school board, community college, and university employees (Pension Plan). The
System also offers eligible employees participation in an alternative defined contribution plan
(Investment Plan). The Property Appraiser participates in the Elected State Officers' Class. The
plan is administered by the State of Florida. Contribution rates are established statewide for all
participating governmental units. Accordingly, the actuarial information and related disclosures
attributable to the Property Appraisers' employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with 6 years of credited
service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable
monthly for life, equal to 1.6% for regular employees, 2% for senior management, and 3% for
County elected officials of their final average compensation for each year of credited service.
Final average compensation is the employee's average of the five highest fiscal years of salary
eamed during credited service. Vested employees may retire before age 62 and receive benefits
that are reduced 5% for each year prior to normal retirement age. Employees participating in the
Investment Plan are vested after one year of service with no age requirement. The System also
provides death and disability benefits. Benefits are established by Chapter 121, Florida Statutes,
and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July 1, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida Retirement System Trust Fund, eaming interest, while
continuing to work for a System employer. The participation in the program does not change
conditions of employment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee wil1 receive
payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan (continued)
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.fl.us.
The Property Appraiser is required to contribute an actuarially determined rate. The current rate
is 16.53% for county elected officials, 9.85% for regular employees, 13.12% for senior
management and 10.91% for DROP employees based on covered payroll. The contribution
requirements of the Property Appraiser are established and may be amended by the State of
Florida. The Property Appraiser's contributions to the plan for the years ended September 30,
2008,2007, and 2006 were $374,414, $356,873 and $275,095, respectively, equal to the required
contributions for each year.
7. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description. The Property Appraiser participates in a group health care plan that covers
eligible retirees, and their dependents, of the Board of County Commissioners and all
Constitutional Officers with the exception of the Sheriff. The Board administers the plan and
establishes the benefits. The healthcare plan does not issue a stand-alone financial report,
however, additional actuarial information regarding the plan as a whole is disclosed in the notes
to the financial statements of Collier County.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statues, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
age 62 and have 6 years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. The Property Appraiser provides no subsidy to the retiree, or
their dependents, for group health care.
08]]-1007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
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. The
Property Appraiser contributes an additional amount to the County per each active employee to
accumulate resources to fund retiree health care. The Property Appraiser contributed $4,986 to
the group health plan during the fiscal year ended September 30, 2008. The Property Appraiser's
share of the County's net OPEB obligation at September 30, 2008 was $11,217, which is
recorded in the basic financial statements of the County.
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis,
is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a
period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
For the year ended September 30, 2008, the Board paid fees to the Property Appraiser that
amounted to $5,952,187. At September 30, 2008, the Property Appraiser had a payable due to
the Board of County Commissioners of$943,383 representing the distribution of excess fees.
9. Risk Management
Collier County, Florida (the County) is exposed to various risks ofloss including, but not limited
to general liability, health and life, property and casualty, auto and physical damage, and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with these
self-insured risks are reported in the basic financial statements of the County. During the year
ended September 30, 2008, the Property Appraiser was charged $722,299 by the County for
participation in the risk management program.
0811-1007792
14
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management (continued)
The County provides coverage for up to $350,000 per claim for workers' compensation, and has
purchased outside excess coverage for up to $25 million for employer liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess ofthe statutory limits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetime limit of $2,000,000.
10. Litigation
The Property Appraiser is involved as defendant or plaintiff in certain litigation and claims
arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal
counsel, the range of potential recoveries or liabilities will not materially affect the financial
position of the Property Appraiser.
0811-1007792
15
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Tel:+ J 954 888 8000
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Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Special-Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the special-purpose financial statements of the general fund of the Collier
County, Florida Property Appraiser (the Property Appraiser) as of and for the year ended
September 30, 2008, and have issued our report thereon dated December 10, 2008. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Property Appraiser's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the special-purpose financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Property Appraiser's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Property Appraiser's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
0811-]007792
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Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's
special-purpose financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
special-purpose financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of the Property Appraiser in a separate
letter dated December 10, 2008.
This report is intended solely for the information and use of the Property Appraiser,
management, others within the entity, the Board of County Commissioners of Collier County,
Florida and the Auditor General of the State of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
~/vIAod of hLL'P
December 10, 2008
0811-1007792
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www.ey.com
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Management Letter
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the special-purpose financial statements of the general fund of the Collier County,
Florida Property Appraiser (the Property Appraiser) as of and for the year ended September 30, 2008, and
have issued our report thereon dated December 10, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Additionally, our audit was conducted in accordance with the
provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local
governmental audits performed in the State of Florida and require that certain items be addressed in this
letter.
We have also issued our report dated December 10, 2008 on internal control over financial reporting and
on compliance and other matters based on an audit of special-purpose financial statements performed in
accordance with Government Auditing Standards. Disclosures in that report should be considered in
conjunction with this management letter.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current annual financial audit.
Prior Year Findings and Recommendations
See Exhibit A for the status of prior year recommendations.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment of public
funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual provisions or
abuse, no improper or illegal expenditures, and no control deficiencies other than the internal control
recommendations included above.
The Property Appraiser was established by the Constitution of the State of Florida, Article VIII, Section
l(d).
This management letter is intended solely for the information and use of the Property Appraiser,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor General of
the State of Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
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December 1 0,2008
0811-1007792
18
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Collier County, Florida
Property Appraiser
Status of Prior Year's Recommendations
September 30, 2008
Recommendation
Status
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Purchasing Policy
Document verbal approvals for purchases
made without purchase orders
Logical Access
Require each user to possess and utilize
their own user ID
Require network passwords to provide
adequate protection from compromise
08]]-1007792
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19
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Sheriff
Year Ended September 30, 2008
With Report ofIndependent Certified Public Accountants
0810-0999255
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Collier County, Florida
Sheriff
Special-Purpose Financial Statements
Year Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds .....................................................................................................................4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- General Fund...............................................................................................5
Special-Purpose Statement of Net Assets - Internal Service Fund .................................................6
Special-Purpose Statement of Revenues, Expenses, and Changes in Net Assets-
Internal Service Fund.................................................................................................................... 7
Special-Purpose Statement of Cash Flows - Internal Service Fund................................................8
Special-Purpose Balance Sheet - Agency Funds ............................................................................9
Notes to Special-Purpose Financial Statements.. ...........................................................................1 0
Combining Financial Information
Combining Special-Purpose Balance Sheet - Agency Funds .......................................................26
Required Supplementary Information
Schedule of Funding Progress for the Retiree Health Plan ...........................................................27
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance With Government Auditing Standards ...........28
Report on Agreed-Upon Procedures Applied to Investigative Funds ...........................................31
Management Letter........................................................................................................................3 3
0810-0999255
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Suite 700
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Report of Independent Certified Public Accountants
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund and
the aggregate remaining fund information of the Collier County, Florida Sheriff (the Sheriff), as
of and for the year ended September 30, 2008, as listed in the table of contents. These special-
purpose financial statements are the responsibility of the Sheriff's management. Our
responsibility is to express opinions on these special-purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Sheriff's internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Sheriff's internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the special-purpose financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall
special-purpose financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
As discussed in Note 1, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Chapter
10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These special-
purpose financial statements are not intended to be a complete presentation of the Sheriff's
financial position, as of September 30, 2008, and the changes in its financial position, where
applicable, for the year then ended in conformity with accounting principles generally accepted
in the United States. Additionally, the special-purpose financial statements present only the
Sheriff and do not purport to, and do not, present fairly the financial position of Collier County,
Florida, as of September 30, 2008, and the changes in its financial position, where applicable, for
the year then ended in conformity with accounting principles generally accepted in the United
States.
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of each major fund and the aggregate
remaining fund information of the Sheriff as of September 30, 2008, and the respective changes
in financial position and, where applicable, cash flows thereof and the budgetary comparison for
the general fund for the year then ended in conformity with accounting principles generally
accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
February 24, 2009 on our consideration of the Sheriffs internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Schedule of Funding Progress for the Retiree Health Plan on page 27 is not a required part
of the special-purpose financial statements but is supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the special-purpose financial
statements. The combining financial information is presented for purposes of additional analysis
and is not a required part of the special-purpose financial statements. The combining financial
information has been subjected to the auditing procedures applied in the audit of the special-
purpose financial statements and, in our opinion, is fairly stated in all material respects in
relation to the special-purpose financial statements taken as a whole.
This report is intended solely for the information and use of the Sheriff, management, the Board
of County Commissioners of Collier County, Florida, and the Auditor General of the State of
Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
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February 24, 2009
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Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual - General Fund
Year Ended September 30, 2008
Budget
Original Final
Actual
Variance With
Budget
Positive
(Negative)
Expenditures:
General government:
Personal services
Operating expenditures
Public safety:
Personal services
Operating expenditures
Capital outlay
Total expenditures
Excess of expenditures over revenues
$ 3,812,900 $ 3,812,900 $ 3.945,863 $ (132,963)
156,500 156,500 133,382 23,118
120,892,900 120,892,900 122,393,257 (1,500,357)
23,322,100 23,322,100 22,082,668 1,239,432
4,487,600 4,487,600 3,086,275 1,401,325
152,672,000 152,672,000 151,641,445 1,030,555
(152,672,000) (152,672,000) (151,641,445) 1,030,555
Other financing sources (uses):
Transfers in:
Collier County, Florida Board of County
Commissioners appropriations
Transfers out:
Distribution of excess appropriations to
Collier County, Florida Board of
County Commissioners
Total other financing sources
Excess of revenues and other
financing sources over expenditures
Fund balance - beginning of year
Fund balance ~ end of year
152,672,000 152,672,000 152,672,000
(1,030,555)
152,672,000 152,672,000 151,641,445
(1,030,555)
(1,030,555)
$ -$ -$
$
See accompanying notes.
0810-0999255
5
. ;.
3fl 01 oq
13 A
Collier County, Florida
Sheriff
Special-Purpose Statement of Net Assets - Internal Service Fund
September 30, 2008
Assets
Cash and cash equivalents
Other receivable
Due from other funds
Total assets
$ 12,199,418
259,786
100,000
$ 12,559,204
Liabilities and net assets
Liabilities:
Self insurance claims payable
Net other postemployment benefit obligation
T otalliabilities
$ 2,094,000
549,868
2,643,868
Net assets:
Unrestricted
Total liabilities and net assets
9,915,336
$ 12,559,204
See accompanying notes.
0810-0999255
r
6
Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenses, and
Changes in Net Assets - Internal Service Fund
Year Ended September 30, 2008
Operating revenues:
Charges for services
Operating expenses:
Claims and claims related expenses
Reinsurance premiums
Net other postemployement benefit expense
Administrative and other expenses
Total operating expenses
Operating income
Nonoperating revenues:
Interest income
Change in net assets
Net assets - beginning of year
Net assets - end of year
See accompanying notes.
0810-0999255
'31 rof&l cJ-
13 A
$ 21,090,320
15,163,709
540,581
549,868
293,938
16,548,096
4,542,224
198,405
4,740,629
5,174,707
$ 9,915,336
7
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13 A -.
Collier County, Florida
Sheriff
Special-Purpose Statement of Cash Flows - Internal Service Fund
Year Ended September 30, 2008
Operating activities
Cash payments for claims and claims related services
Cash payments for reinsurance premiums
Cash payments for administrative services and supplies
Cash received from other funds for services
Cash received from retirees for services
Net cash provided by operating activities
$ (14,957,905)
(540,581)
(293,938)
21,000,000
490,320
5,697,896
Investing activities
Interest on investments
218,295
Net change in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
5,916,191
6,283,227
$ 12,199,418
Reconciliation of operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Increase in receivables
Decrease in due from other funds
Increase in self-insurance claims payable
Increase in net other postemployment benefit obligation
Net cash provided by operating activities
$ 4,542,224
(33,196)
400,000
239,000
549,868
$ 5,697,896
See accompanying notes.
0810-0999255
8
Collier County, Florida
Sheriff
Special-Purpose Balance Sheet - Agency Funds
September 30, 2008
Assets
Cash and cash equivalents
Accounts receivable
Total assets
Liabilities
Due to other governments
Due to Collier County, Florida
Board of County Commissioners
Due to individuals and businesses
Total liabilities
See accompanying notes.
0810-0999255
3[(610'1
13A
~
~
if
$
$
426,505
1,885
428,390
$
21,335
$
49,261
357,794
428,390
9
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I
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Sheriff (the Sheriff) is an elected constitutional officer as provided
for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the
Sheriffs budget is submitted to the Collier County, Florida Board of County Commissioners
(Board) for approval.
The Collier County, Florida Sheriff is the chief law enforcement officer of Collier County,
Florida (the County) and is responsible for operating the County's corrections facilities. The
special-purpose financial statements include the general fund, special revenue funds, proprietary
fund, and agency funds of the Sheriffs office. The accompanying special-purpose financial
statements were prepared for the purpose of complying with Section 218.39, Florida Statutes,
and Section 10.557(3), Rules of the Auditor Generalfor Local Governmental Entity Audits.
Section 1 0.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires
the Sheriff to only present fund financial statements. Accordingly, due to the omission of
government-wide financial statements and related disclosures, including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of the Collier County, Florida Sheriff as of September 30,
2008 and the changes in its financial position and its cash flows, where applicable, for the year
then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement
No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State
and Local Governments, but otherwise constitute financial statements prepared in conformity
with U.S. generally accepted accounting principles.
As a result of the budgetary oversight by the Board and the financial dependency on the Board,
the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive
Annual Financial Report.
Transfers are provided by appropriations 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.
0810-0999255
10
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13A
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
The special-purpose fund financial statements report detailed information about the Sheriff. The
focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet.
Operating statements for these funds present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Sheriff considers revenues to be available if they are collected within 60 days after
year end with the exception of grants, which have a period of availability of one year. Grants are
recognized as revenue as soon as all eligibility requirements have been met. Expenditures are
recorded when the related fund liability is incurred, except for compensated absences, which are
recognized as expenditures to the extent they have matured.
Substantially all of the Sheriffs funding is appropriated by the Board. In applying the
susceptible to accrual concept to intergovernmental revenue, there are essentially two types of
revenue. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures
incurred. Grant revenue is recorded in this manner. In the other, moneys are virtually
unrestricted and are revocable only for failure to comply with prescribed compliance
requirements. These resources are reflected as 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.
0810-0999255
11
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131
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Florida Statutes provide that the amount by which revenues and transfers exceed annual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized.
The amount of this distribution is recorded as a liability and as an other financing use in the
accompanying special-purpose financial statements.
Capital outlays expended in governmental fund operations are recorded as capital assets in the
basic financial statements of Collier County, Florida rather than in the governmental funds of the
Sheriff.
The Collier County, Florida Sheriff has four major governmental funds:
General Fund - The general fund is used to account for the general operations of the Sheriff and
includes all transactions which are not accounted for in another fund.
Grant Special Revenue Fund - This fund is used to account for the proceeds of federal and state
grant revenues that are legally restricted to specified purposes.
Prisoner Welfare Fund - This fund is used to account for the proceeds of inmate related services
and is legally restricted to specified purposes, which benefit the inmate population.
Federal Equitable Sharing Fund - The revenue from these funds are the result of joint
investigations with federal agencies that result in the equitable sharing of the net proceeds of the
forfeiture.
Fund balances reported in these funds are to be used for the specified purpose of the respective
fund.
0810-0999255
12
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...
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Fiduciary Funds
Fiduciary Funds - Agency Funds - These funds are used to account for assets held by the Sheriff
as an agent for individuals, private organizations, and other governments. Agency funds are
custodial in nature (assets equal liabilities), and do not involve measurement of results of
operations or have a measurement focus. Agency funds are accounted for using the accrual basis
of accounting.
Proprietary Fund
Internal Service Fund - This fund is used to account for the health and dental insurance services
provided to departments and retirees of the Sheriff on a cost-reimbursement basis. Proprietary
funds are accounted for using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing ofrelated cash flows.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original matuntJes of three
months or less. Cash equivalents also include amounts deposited in the Local Government
Surplus Trust Fund administered by the State Board of Administration, a 2a-7 like investment
pool. Shares of the investment pool are based on the pool's share price, which approximates fair
value.
Compensated Absences
All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours
of unused sick time and up to 440 hours of unused vacation leave. Upon termination, employees
receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave,
depending on years of service, not to exceed 1,000 hours. Vacation time and sick leave are
included in operating costs when the payments are made to the employees. The Sheriff does not,
nor is he legally required to, accumulate expendable financial resources for these unmatured
obligations. Accordingly, the liability for compensated absences is not reported in the
governmental funds, but rather is reported in the basic financial statements of Collier County,
Florida.
0810-0999255
13
~116\O~
13 A
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of the special-purpose financial statements requires management of the Sheriff
to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the special-purpose
financial statements and the reported amounts of revenues and expenditures during that period.
Significant items subject to such estimates and assumptions include the self-insurance claims
payable. Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Sheriffs annual
budget. The Sheriff prepares a budget for the general fund and submits it to the Board of County
Commissioners for approval. The budget is prepared on a basis consistent with U.S. generally
accepted accounting principles. Any subsequent amendments to the budget must be approved by
the Board. The annual budget serves as the legal authorization for expenditures. Expenditures
may not legally exceed appropriations at the fund level. Appropriations lapse at year end.
Budgetary control is maintained at the departmental major object expenditure level. Budgetary
changes within the major object expenditure categories are made at the discretion of the Sheriff.
The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state
grants and is governed by those documents. Additionally, the prisoner welfare and federal
equitable sharing funds do not have legally adopted budgets.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
0810-0999255
14
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131
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*
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Sheriffs cash and cash equivalents was as
follows:
Average Carrying Credit
Type Maturity Value Rating
Cash on hand N/A $ 15,981 N/A
Demand deposits N/A 26,316,756 N/A
Local government surplus funds trust fund:
Pool A 8.5 days 692,653 AAAm
Pool B 9.36 years* 31,834 Unrated
Total cash and cash equivalents $ 27,057,224
* This immaterial investment is classified as a cash equivalent on the special-purpose balance
sheet.
The total cash and cash equivalent balances at September 30, 2008 were as follows:
General fund
Grant special revenue fund
Prisoner welfare fund
Federal equitable sharing fund
Internal service fund
Agency funds
$ 9,787,900
3,121,781
549,959
971,661
12,199,418
426,505
$ 27,057,224
Custodial Credit Risk
At September 30, 2008, the Sheriff deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
government entity for the loss.
0810-0999255
15
~[(f)1 &~
13A
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Interest Rate Risk
The Sheriff has no specific investment policy regarding interest rate risk.
Credit Risk
The Sheriff'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 Sheriff to invest in the local government surplus funds trust fund;
obligations of the United States Treasury; federal agencies and instrumentalities, or any
intergovernmental pool authorized pursuant to the Florida Interlocal Corporation Act; Securities
and Exchange Commission registered money market fund with the highest credit quality rating
from a nationally recognized rating agency; direct interest-bearing time deposits or savings
accounts in banks organized under the laws of the United States and doing business and situated
in the State of Florida, savings and loan associations, which are under 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.
The Local Government Surplus Funds Trust Fund Investment Pool (the Pool) is administered by
the State Board of Administration. On December 4, 2007, based on recommendations from an
outside financial advisor, the State Board of Administration restructured the Pool into two
separate pools. Pool A (later renamed LGlP) consisted of all money market appropriate assets,
which was approximately $12 billion or 86% of Pool assets. Pool B (later renamed Fund B
Surplus Trust Fund) consisted of assets that either defaulted on a payment, paid more slowly
than expected, and/or had any significant credit and liquidity risk, which was approximately $2
billion or 14% of Pool assets. In addition, full realization of the principle value of Pool Bassets
is not readily determinable. At the time ofthe restructuring, all current pool participants had their
existing balances proportionately allocated into Pool A and Pool B. At September 30, 2008, the
Sheriff had $724,487 invested in the Pool. Of this amount, $692,653 is invested in the LGlP,
which is rated "AAAm" by Standard & Poor's Ratings Services, and $31,834 in the Fund B
Surplus Funds Trust Fund, which is not rated by a nationally recognized statistical rating agency.
The LGIP investment is fully liquid and carries a weighted average days to maturity of 8.5 days.
0810-0999255
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Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Fund B is accounted for as a fluctuating NA V (net asset value) pool and the fair value factor for
September 30,2008 was .798385. The Fund B amount has a weighted average life of9.36 years.
Fund B cash holdings continue to be distributed to participants as they become available from
maturities, sales and received income.
4. Capital Assets
Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier
County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such
assets are recorded as expenditures in the governmental funds of the Sheriff, and are capitalized
at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at
historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are valued at their estimated fair value on the date received. The Sheriff maintains
custodial responsibility for the capital assets used by his office. No depreciation has been
provided on capital assets in these special-purpose financial statements. However, depreciation
expense on these assets is recorded in the basic financial statements of Collier County, Florida.
A summary of changes in capital assets, which are reported in the basic financial statements of
Collier County, Florida follows:
Balance
October 1,
2007
Additions
Balance
September 30,
Retirements 2008
Machinery and equipment
Less accumulated depreciation
Machinery and equipment, net
$ 57,097,873
(37,200,438)
$ 19,897,435
$ 3,997,937
(7,705,769)
$ (3,707,832)
$ 4,359,799
(4,187,491)
$ 172,308
$ 56,736,011
(40,718,716)
$ 16,017,295
0810-0999255
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Sheriff
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities
The following is a summary of changes in long-term liabilities, which are reported in the basic
financial statements of Collier County, Florida:
October 1,
2007
Increases
September 30,
Retirements 2008
Accrued compensated absences
$ 10,314,977 $ 3,194,868 $ (2,010,778) $ 11,499,067
Of these liabilities, approximately $663,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Sheriff since they have not matured.
6. Interfund Balances and Transfers
Due from and due to other funds at September 30, 2008 were as follows:
Due from Due to
General fund $ 59,664 $ 100,000
Prisoner welfare special revenue fund 57,664
Federal equitable sharing fund 2,000
Internal service fund 100,000
$ 159,664 $ 159,664
Interfund receivables and payables generally represent recurring activities between funds.
0810-0999255
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Sheriff
Notes to Special-Purpose Financial Statements (continued)
7. Related-Party Transactions
The Board of County Commissioners provided funding for the Sheriff for the year of
$152,672,000. At September 30, 2008, the Sheriff had a payable due to the Board of County
Commissioners of $1,132,119 comprised of the following:
General fund:
Distribution of excess appropriations
Distribution of interest collected
Miscellaneous payables
Agency funds
Total
$ 1,030,555
39,222
13,081
49,261
$ 1,132,119
Additionally, the Sheriff had a receivable from the Board related to services provided to the
County of $298,246 at September 30, 2008.
8. Employee Retirement Plan
Substantially all full-time and part-time employees of the Sheriff are eligible to participate in the
State of Florida Retirement System (System), a cost-sharing multiple-employer defined benefit
plan administered by the State of Florida, Division of Retirement. The System is a defined
benefit plan for all state, and participating county, district school board, community college, and
university employees (Pension Plan). The System also offers eligible employees participation in
an alternative defined contribution plan (Investment Plan). The Sheriff and deputies participate
in the Special Risk Class. The plan is administered by the State of Florida. Contribution rates are
established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Sheriff s employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with 6 years of credited
service for regular risk or with 30 years of service regardless of age, are entitled to a retirement
benefit, payable monthly for life, equal to 1.6% for regular employees, 2% for senior
management, and 3% for county elected officials of their final average compensation for each
year of credited service; and for special risk, after age 55 with 6 years or with 25 years of service
regardless of age, are entitled to a retirement benefit payable monthly for life, up to 3% for each
year of credited service times their final average compensation. Final average compensation is
the employee's average of the five highest years of salary eamed during credited service. Vested
employees may retire before age 62 for regular risk and 55 for special risk and receive retirement
0810-0999255
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Sheriff
Notes to Special-Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the investment plan are vested after one year of service with no age requirement.
The System also provides death and disability benefits. Benefits are established by Chapter 121,
Florida Statutes and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July 1, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida retirement system trust fund, earning interest, while
continuing to work for a System employer. The participation in the program does not change
conditions of employment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. That report may be
obtained by writing to the Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.fl.us.
The Sheriff is required to contribute an actuarially determined rate. The current rate is 20.92%
for special risk employees, 16.53% for county elected officials, 9.85% for regular employees,
13.12% for senior management and 10.91% for DROP employees based on covered payroll. The
contribution requirements of the Sheriff are established and may be amended by the State of
Florida. The Sheriffs contributions to the plan for the years ended September 30, 2008, 2007,
and 2006 were $15,179,541, $14,688,803 and $12,207,823, respectively, equal to the required
contributions for each year.
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits
Effective October 1, 2007, the Sheriff adopted the provlSlons of GASB Statement No. 45
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description
The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the
benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for its
retirees who have 6 years of creditable service with the Sheriff and who receive a monthly
retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately
20% for single coverage and 21% for family coverage for qualifying individuals. Additionally,
in accordance with Florida Statute 112.0801, Sheriffs employees who retire and immediately
begin receiving benefits from the FRS have the option of paying premiums to continue in the
Sheriff s health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEB plan participants 1,374
Retirees receiving benefits 69
Funding Policy
The Sheriff has the authority to establish and amend funding policy. For the year ended
September 30, 2008, the Sheriff contributed $469,998 to the OPEB Plan.
AnnualOPEB Cost and Net OPEB Obligation
The annual cost (expense) of the Sheriffs OPEB Plan is calculated based on the Annual
Required Contribution (ARC), an amount actuarially determined in accordance with the
parameters ofGASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost each year and amortize any unfunded
actuarial liability over a period not to exceed 30 years. The following table shows the
components of the Sheriffs annual OPEB Plan cost for the year ended September 30, 2008, the
amount actually contributed, and the changes in the net OPEB Plan obligation.
0810-0999255
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Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end year
$ 1,019,866
1,019,866
(469,998)
549,868
$ 549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress
The contributions made for fiscal year 2008 were 46% of the annual OPEB cost. Information for
the two preceding fiscal years is not available as GASB Statement No. 45 was implemented this
fiscal year. As of the September 30, 2008 actuarial valuation date, the OPEB Plan was 0.0%
funded, the actuarial accrued liability for benefits was $9,354,088, and the actuarial value of
assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $9,354,088. The
covered payroll (annual payroll of active employees covered by the OPEB Plan) was $128.2
million, and the ratio of the UAAL to the covered payroll was 7.3%.
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about 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.
08]0-0999255
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
10. Self-Insurance Program
The Sheriffs Office participates in the Statewide Florida Sheriffs Self-Insurance Fund (the
Fund) for its professional liability insurance. The Fund is managed by representatives of the
participating Sheriff offices and provides professional liability insurance to participating
agencies. The Fund provides liability insurance coverage subject to the following limitations:
$3,100,000 for any claim involving a single individual, $3,200,000 for any incident which
involves multiple claims and an aggregate of $3,500,000 ultimate net loss per Sheriff during any
policy period. The Sheriff also participates in the Florida Sheriffs' Self-Insurance Fund program
for workers' compensation coverage. The Florida Sheriffs' Association Workers' Compensation
0810-0999255
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
10. Self-Insurance Program (continued)
Insurance Trust is a limited self-insurance fund providing coverage for the first $350,000 of
every claim. Reinsurance is provided through a third party for all claims exceeding $350,000 up
to $10,000,000. Settled claims have not exceeded the insurance provided by third-party carriers
in any of the past three years.
Premiums charged to participating Sheriffs are based upon amounts believed by the Fund
management to meet the estimated annual payout during the fiscal year and to pay for the
estimated operating costs of the program. All liabilities associated with these self-insured risks
are reported in the basic financial statements of the Statewide Florida Sheriff s Self-Insurance
Fund.
The Sheriff has also established a self-funded employee health plan for active employees and
retirees. An internal service fund is used to account for the activities of the plan. Excess coverage
has been purchased which provides specific claim excess coverage for anyone incident
exceeding $150,000 up to $1,000,000. Payments to the internal service fund are based on
actuarial estimates of amounts needed to pay prior year and current year claims including claims
incurred but not yet reported.
Changes in the balance of estimated insurance claims payable for the fiscal year ended
September 30, 2008 is as follows:
Balance
October 1
New Claims
and Changes
in Estimates
Claim
Payments
Balance
September 30
Fiscal year ending:
2008
$ 1,855,000 $15,196,905 $(14,957,905) $ 2,094,000
0810~0999255
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
11. Claims and Contingencies
Litigation
The Sheriff is involved in various claims and legal actions arising in the ordinary course of
operations. In the opinion of management, the ultimate disposition of these matters will not have
a material adverse effect on the Sheriff.
Federal and State Grants
Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these
grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the
opinion of management, disallowed costs, if any, would be immaterial to the financial position of
the Sheriff.
0810-0999255
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Schedule of Funding Progress
for the Retiree Health Plan
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
10/1/2007 $ - $ 9,354.088 $ 9,354,088 0.0% $ 128,182,544 7.3%
0810-0999255
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Report of Independent Certified Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Special-Purpose Financial Statements
Performed in Accordance With Government Auditing Standards
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Sheriff (the Sheriff) as of and for the
year ended September 30, 2008, and have issued our report thereon dated February 24, 2009. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Sheriffs internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Sheriffs internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control
over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over financial reporting that might be significant deficiencies or material
weaknesses. However, as discussed below, we identified certain deficiencies in internal control
over financial reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accmmting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control. We consider the following deficiency to be a significant
deficiency in internal control over financial reporting:
0810-0999255
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2008-1 Accountingfor Grant Revenue
Criteria
GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange
Transactions, sets forth the accounting criteria for revenue recognition of most grants.
Condition
The Sheriff recorded grant funds received as deferred revenue for a particular grant in which
the criteria for revenue recognition pursuant to GASB 33 had been met.
Context
Approximately $7,900 was recorded as deferred revenue as of September 30, 2008 related to
the grant in question.
Effect
Revenue is understated.
Cause
The Sheriff had consistently recorded the grant receipts as deferred revenue and recorded the
related revenue when the funds were ultimately expended; however, the criteria for revenue
recognition had been achieved at the time the grant award was received.
Recommendation
We recommend that the Sheriff review grant award documents to determine when the
eligibility criteria in GASB 33 have been achieved.
Management Response and Corrective Action Plan
Future receipts will be booked as current revenue.
0810-0999255
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A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control. Our
consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in the internal control that might be significant deficiencies and, accordingly, would not
necessarily disclose all significant deficiencies that are also considered to be material
weaknesses. However, we do not believe that the significant deficiency described above is a
material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriff s special-purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which
could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
We noted certain matters that we reported to management of the Sheriff in a separate letter dated
February 24,2009.
This report is intended solely for the information and use of the Sheriff, management, others
within the entity, the Board of County Commissioners of Collier County, Florida and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~of HUP
February 24, 2009
08]0-0999255
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Report on Agreed-Upon Procedures Applied to Investigative Funds
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have performed the procedures enumerated below, which were agreed to by management of
the Collier County, Florida, Sheriff (the Sheriff), solely to assist you in evaluating the procedures
and policies as defined by the Sheriff over the investigative funds for the year ended
September 30,2008. The Sheriffs management is responsible for the Sheriffs compliance with
those procedures and policies. This agreed-upon procedures engagement was conducted in
accordance with attestation standards established by the American Institute of Certified Public
Accountants. The sufficiency of these procedures is solely the responsibility of the party
specified in this report. Consequently, we make no representation regarding the sufficiency of
the procedures described below either for the purpose for which this report has been requested or
for any other purpose.
The procedures we performed and our findings are summarized as follows:
. We randomly selected 25 investigative fund disbursements during the fiscal year ended
September 30, 2008 and performed the following procedures with respect to the Sheriff s
policies and procedures over investigative funds.
. We obtained the "Disbursement for Investigation" form noting that the form was
properly completed and authorized by appropriate personnel. No exceptions were noted.
. We obtained the "Purchase of Evidence/Information Voucher" noting that the form was
properly completed to reflect the expenses incurred within the investigation procedures,
that the investigative expenditures were properly supported, and that the use of funds was
for authorized purposes. No exceptions were noted.
. We noted that the un-used funds returned, if applicable, were properly deposited per
review of the corresponding deposit and bank statement detail and noted that the amount
deposited agreed to the amount returned per the "Receipt for Funds Received" form
detail. We noted one instance in which the case number on the "Receipt for Funds
Received" form did not agree with the corresponding case number on the "Disbursement
for Investigation" form, however, no exceptions were noted with respect to the amounts
returned and deposited.
0810-0999255
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We were not engaged to and did not conduct an examination, the objective of which would be
the expression of an opinion on compliance. Accordingly, we do not express such an opinion.
Had we performed additional procedures, other matters might have come to our attention that
would have been reported to you.
This report is intended solely for the information and use of the management of the Sheriff, and
is not intended to be and should not be used by anyone other than this specified party.
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February 24, 2009
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Management Letter
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Sheriff (the Sheriff) as of and for the
year ended September 30, 2008, and have issued our report thereon dated February 24, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the State of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated February 24, 2009 on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
During the course of our audit we noted that appropriate action had been taken upon certain
recommendations and suggested accounting procedures outlined in the prior year's Management
Letter. Those comments have not been repeated. Prior year comments that were not implemented
or were only partially implemented in the current year have been repeated below:
2007-1 Accounting for Miscellaneous Charges for Services
Observation
Other than operating transfers from the Board of County Commissions (BOCC) and grant funds,
the Sheriff also receives various types of cash receipts such as for direct reimbursement of
certain expenses, charges for services to third parties such as for providing off duty traffic
control and security details at contracted hourly amounts, as well as fees charged for housing of
federal prisoners at specified rates per prisoner housed. We noted that the Sheriff records these
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types of receipts in the general ledger as either a reduction to the related expense in the income
statement (i.e., special details) or as a due to the BOCC with no effect in the income statement as
the related revenue is recorded at the BOCC level since the Sheriff is not a fee officer (i.e.,
housing offederal prisoners).
Recommendation
We recommend that the Sheriff review the various types of miscellaneous receipts to determine
if they are a direct reimbursement of expense and properly recorded as such per accounting
principles generally accepted in the United States (GAAP). Alternatively, if the underlying
transaction is a charge for a service, it should be reflected on a gross basis in the Sheriffs
financial statements pursuant to GAAP (i.e., both the revenue and expense reflected in the
income statement) and the budget should be amended accordingly. For example, revenues
received for charges for special details should be reflected as revenue as opposed to netting the
related expense in accordance with GAAP. The Sheriff should investigate whether similar fees
such as those received for housing of federal prisoners should be reflected on a gross basis in the
Sheriffs financial statements pursuant to GAAP. This should not impact the fees remitted to the
BOCC as the revenue would coincide with a corresponding transfer out to the BOCC for the
funds remitted to it pursuant to Florida Statutes Section 30.51.
Management's Current Response
In order to implement this change in reporting for major cash receipt types, we will have to
request that the county Office of Management and Budget draft and process budget amendments
for FY09. We will then have to work with the Budget Office to modify future years' budget
submissions. It is unknown at this time if the change can be made in the already approved FY09
budget.
Current Year Findings and Recommendations
2008-1 Cash Receipts Process
Observation
As part of the cash receipts process, funds received for deposit into the operating account are
forwarded to the fiscal clerk (or an alternate/back up clerk) responsible for receipt and bank
deposit preparation. The fiscal clerk enters the receipts into the cash management module of
general ledger system and generates a Receipt for Funds Received form for each individual cash
receipt. A Cash Receipts by Method report is generated to indicate the total of the cash receipts
for preparation of the bank deposit. Bank deposits are typically prepared by the fiscal clerk but
can be prepared also by the cash supervisor or the manager. Once the deposits are prepared, they
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are secured in a safe until the courier arrives to take the deposit to the bank. The cash clerk and
the other individuals mentioned above all have access to the safe. Typically the cash clerk
accesses the safe to retrieve the deposit for the courier. On rare occasions, when the courier is
not available, or if there is a large deposit late in the day, either the cash supervisor, the manager,
or finance director can make deposits at the bank.
At month end, the Cash Receipt Summary Report is generated from the system which provides a
query of all cash receipts entered by date to be used in the bank reconciliation process. All cash
receipts posted to the general ledger for the month are reviewed against the corresponding bank
statement detail by the budget manager as part of the bank reconciliation process to ensure
completeness of the funds received.
We were informed about an incident that occurred during fiscal year 2008 whereby an
immaterial amount of cash that was received and entered for deposit was allegedly
misappropriated as it was not deposited according to the bank's records. This was identified
through the month end bank reconciliation process. Additionally, we were informed about a
similar occurrence whereby a similar amount of cash was allegedly misappropriated from the
Sheriff's investigative funds around the same time period. Investigate funds are also secured in
the safe and controls are in place surrounding the disbursing and receiving of the cash for
investigative purposes. The individuals with access to the investigative cash in order to distribute
funds to deputies and replenish the funds include the same individuals with access to the safe as
described above.
Recommendation
We recommend that the Sheriff review its current process and determine if duties can be further
segregated surrounding the cash receipts process and access limited further, as appropriate, with
respect to cash bank deposits and investigative funds.
The basic idea underlying segregation of incompatible duties is that no employee or group
should be in a position both to perpetrate and to conceal errors or fraud in the normal course of
their duties. In general, the principal incompatible duties to be segregated are:
. Custody of assets,
. Authorization or approval of related transactions affecting those assets, and
. Recording or reporting of related transactions.
An essential feature of segregation of incompatible duties/responsibilities within an organization
is that no one employee or group of employees has exclusive control over any transaction or
group of transactions. In addition, a control over the processing of a transaction should not be
performed by the same individual who is responsible for recording or reporting the transaction.
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The fiscal clerk, or other individuals as noted above, maintains custody of the cash receipts
(handles receipts of currency, lists checks and prepares bank deposits) and also records receipts
in the general ledger. Although mitigating controls to detect potential improprieties, such as the
bank reconciliation process being performed by an independent individual, are operating
effectively, it would be ideal to implement prevention controls by segregating the duties of
recording in the general ledger and custody of the cash receipts as well as restricting access to
cash deposits and investigative funds to only necessary individuals. If it is not practical to
implement all such measures based on staff resource constraints, we recommend that the Sheriff
consider implementing additional monitoring controls over the process such as having someone
independent of the tasks above 1) review the bank deposit slip for completeness against the
general ledger cash receipts report and 2) after the deposit is made, verify that the total agrees to
the bank deposit receipt or on-line confirmation on a daily basis. This should be evidenced by a
signature or other sign off on the documents.
Management's Response
The entire cash receipts process is being reviewed and documented in detail. Controls will be
strengthened where possible given staffing limitations.
2008-2 IT Controls
Policies and Procedures
Observation
Formal IT policies and procedures were unavailable at the time of our audit. The lack of formal
defined IT policies and procedures increases the risk that processes will not be followed, which
could lead to:
. Unauthorized and inappropriate changes being migrated to production
. Unauthorized users being granted inappropriate access to systems
Recommendation
We recommend that the Sheriff document IT policies and procedures. They should be reviewed,
updated, and implemented as appropriate to describe the manage change, logical access, and IT
Operations processes around the financial system. Also, procedures around updating,
maintaining and communicating such policies should be documented.
0810-0999255
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Management's Response
The Sheriff has documented general IT policies and procedures. However, we agree that policies
need to be developed that specifically address the agency's financial system.
Manage Changes
Observation
A central repository is not in place to maintain supporting documentation (i.e. authorized
requests, testing and approval documentation) for changes being made to the financial system.
We noted that the developer, who is responsible for program change development for the
financial system, maintains the documentation within his/her inbox. The risk exists that if a
developer were to leave the Sheriff s office or inadvertently delete any supporting
documentation, there would be lack of an audit trail to show changes to the system were
appropriately authorized, tested, and approved.
Recommendation
We recommend that Collier County establishes a central repository for maintaining change
management documentation to allow evidence to be obtained more efficiently.
Management's Response
Concur. Future changes will be maintained.
Observation
A segregation of duties issue exists in that the developer has access to develop changes and
migrate those changes into the financial system production environment. An unauthorized and
unapproved change could be promoted to the production environment increasing the risk of key
financial data/programs being intentionally or unintentionally modified. We noted that instances
exist where the developer has moved changes into production during the 2008 audit period. In
addition, a compensating monitoring control is not in place whereby changes moved to
production are periodically reviewed by someone independent of developing and migrating
changes to validate the changes were appropriately authorized, tested, and approved.
0810-0999255
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Recommendation
We recommend that management consider segregating the duties for the development of changes
from the migration of changes. If this is not feasible for the organization, given resource
constraints, we recommend that management implement a monitoring control to validate that
changes that are placed into the production environment are authorized, tested, and approved.
This review should cotisist of a person, independent of developing and migrating changes,
reconciling a system generated list of changes that are in the production environment to formal
documentation to support that the change was authorized, tested, and approved by the
appropriate individuals.
Management's Response
Because we do have limited resources and we anticipate additional resource constraints in the
future, it is not feasible to segregate the development and migration duties, but we concur with
the recommendation to implement a monitoring control.
Logical Security
Observation
The financial system is limited in its password parameter capabilities. The system does not
require a minimum character limit, password complexity, password expiration, or account
lockout. We noted that it is possible to have a "blank" password.
In addition, a formal process is not in place for monitoring user access (i.e. failed log-on). The
risk exists that an unauthorized individual might gain access to critical data and, depending on
access rights, be able to modify such data.
Recommendation
We recommend that a formal process be established to monitor users' access to determine if any
breach in security occurred. We also recommend that IT reach out to the vendor to determine if
system upgrades or fixes exist that would allow for increase strength in password controls to
prevent unauthorized access to the system.
Management's Response
We will investigate the possibility of strengthening password controls.
0810-0999255 38
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It should be noted that, while "stronger" passwords would be desirable, there are multiple layers
of password security currently provided. In order to get access to the agency's internal network,
you must have physical access to an agency facility. In the case of the Financial System, that
means access to the Headquarters facility or the Purchasing facility. Access to the internal
network also requires login and password, and this password is a "strong" password, requiring a
minimum of 8-characters, alpha, numeric and special characters, password expiration every 90-
days, and account lockout after 3 unsuccessful tries. In addition, the Financial System has to be
installed on the physical workstation, and it has only been installed on a limited number of
machines, most of which are in the Finance Division area which is not only in a controlled
building, but in an area of the building that is further controlled and secured. Once you have
access to a workstation that has Flexgen loaded on it, you need two more separate login and
passwords, one for Flexgen and one for the Financial System itself.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, regulations, or contractual provisions or
abuse, no improper or illegal expenditures, and no control deficiencies that are not significant
deficiencies other than the internal control recommendations included above.
The Sheriff was established by the Constitution of the State of Florida, Article VIII, Section l(d).
This management letter is intended solely for the information and use of the Sheriff,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
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February 24, 2009
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Supervisor of Elections
Year Ended September 30, 2008
With Report ofIndependent Certified Public Accountants
0811-1001894
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Collier County, Florida
Supervisor of Elections
Special-Purpose Financial Statements
Year Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds.....................................................................................................................4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- General Fund...............................................................................................5
Notes to Special-Purpose Financial Statements............... ....... ............. .................. .......... ............. ...6
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in
Accordance With Government Auditing Standards....................................................................] 6
Management Letter........................................................................................................................ ] 8
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401 East Jackson Street
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Fax: +1813 225 4711
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Report of Independent Certified Public Accountants
The Honorable Jennifer 1. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund of
the Collier County, Florida Supervisor of Elections (the Supervisor of Elections), as of and for
the year ended September 30, 2008, as listed in the table of contents. These special-purpose
financial statements are the responsibility of the Supervisor of Elections' management. Our
responsibility is to express opinions on these special-purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Supervisor of Elections' internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Supervisor of Elections' internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the special-purpose financial
statements, assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall special-purpose financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.
As discussed in Note 1, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.29, Florida Statutes, and
Chapter 10.577(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the
Supervisor of Elections' financial position and its changes in financial position, where
applicable, thereof, for the year then ended in conformity with accounting principles generally
accepted in the United States. Additionally, the special-purpose statements present only the
Supervisor of Elections and do not purport to, and do not, present fairly the financial position of
Collier County, Florida, as of September 30, 2008, and the changes in its financial position,
where applicable, for the year then ended, in conformity with accounting principles generally
accepted in the United States.
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of each major fund of the Supervisor of
Elections as of September 30, 2008, and the respective changes in financial position thereof and
the budgetary comparison for the general fund for the year then ended in conformity with
accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2008, on our consideration of the Supervisor of Elections' internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
This report is intended solely for the information and use of the Supervisor of Elections,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the state of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
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December 10, 2008
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CoHier County, Florida
Supervisor of Elections
Special-Purpose Balance Sheet - Governmental Funds
September 30, 2008
Grant
General Special Total
Fund Revenue 2008
Assets
Cash and cash equivalents $ 778,335 $ 112,197 $ 890,532
Accounts receivable 25 25
Due from other funds 1,359 1,359
Total assets $ 778,360 $ 113,556 $ 891,916
Liabilities and fund balance
Liabilities:
Accounts payable $ 368,702 $ - $ 368,702
Accrued liabilities 39,012 39,012
Due to Collier County, Florida Board
of Commissioners 369,287 369,287
Due to other funds 1,359 1,359
Deferred revenue 87,168 87,168
T otal1iabilities 778,360 87,168 865,528
Fund balance 26,388 26,388
Total liabilities and fund balance $ 778,360 $ 113.556 $ 891,916
See accompanying notes.
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Collier County, Flortda
Supervisor of Elections
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Governmental Funds
For the Year Ended September 30, 2008
Grant
General Special Total
Fund Revenue 2008
Revenues:
Intergovernmental $ 13,323 $ 119,546 $ 132,869
Interest 4,646 4,646
Total revenues 13,323 124,192 137,515
Expenditures:
General government:
Personal services 1,619,698 1,619,698
Operating expenditures 1,857,013 133,520 1,990,533
Capital outlay 119,637 119,637
Total expenditures 3,596,348 133,520 3,729,868
Excess of expenditures over revenues (3,583,025) (9,328) (3,592,353)
Other financing sources (uses):
Transfers in:
General Fund 5,355 5,355
Collier County, Florida Board of
County Commissioners appropriations 3,947,400 3,947,400
Operating transfers out:
Special Revenue Fund (5,355) (5,355)
Collier County Clerk of Circuit Courts (37,000) (37,000)
Distribution of excess appropriations:
Collier County, Florida Board of
County Commissioners (322,020) (322,020)
Total other financing sources 3,583,025 5,355 3,588,380
Excess of revenues and other financing
sources over expenditures (3,973) (3,973)
Fund balance - October I, 2007 30,361 30,361
Fund balance - September 30, 2008 $ - $ 26,388 $ 26,388
See accompanying notes.
081 ]-100]894
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Collier County, Florida
Supervisor of Elections
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual - General Fund
For the Year Ended September 30, 2008
Variances with
Final Budget
Budget Positive
Original Final Actual (Negative)
Revenues $ - $ - $ 13,323 $ 13,323
Expenditures:
General government:
Personal services 1,728,500 1,775,650 1,619,698 155,952
Operating expenditures 2,177,900 2,104,539 1,857,013 247,526
Capital outlay 3,500 24,856 119,637 (94,781)
Total expenditures 3,909,900 3,905,045 3,596,348 308,697
Excess of expenditures over revenues (3,909,900) (3,905,045) (3,583,025) 322,020
Other fmancing sources (uses):
Operating transfers in:
Collier County, Florida Board of
County Commissioners appropriations 3,909,900 3,947,400 3,947,400
Operating transfers out:
Special Revenue Fund (5,355) (5,355)
Collier County Clerk of Circnit Courts (37,000) (37,000)
Distribution of excess appropriations:
Collier County, Florida Board of
County Commissioners (322,020) (322,020)
Total other fmancing sources 3,909,900 3,905,045 3,583,025 (322,020)
Excess of revenues and other fmancing
sources over expenditures
Fund balance - October 1, 2007
Fund balance - September 30, 2008 $ - $ - $ - $
See accompanying notes.
0811.1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies and Practices
Reporting Entity
The Collier County, Florida Supervisor of Elections (Supervisor of Elections) is an elected
constitutional officer as provided for by the Constitution of the state of Florida. Pursuant to
Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier
County, Florida Board of County Commissioners (Board) for approval.
The special-purpose financial statements presented include the general fund and grant special
revenue fund of the Supervisor of Elections' office. The accompanying special-purpose financial
statements were prepared for the purpose of complying with Section 218.39, Florida Statutes,
and Section 10.557(3), Rules of the Auditor Generalfor Local Governmental Entity Audits.
Section 1 0.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires
the Supervisor of Elections financial statements to only present fund financial statements.
Accordingly, due to the omission of government-wide financial statements and related
disclosures including a management's discussion and analysis, these special-purpose financial
statements do not constitute a complete presentation of the financial position of the Supervisor of
Elections as of September 30, 2008, and the changes in its financial position for the year then
ended, in conformity with 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 financial dependency on the Board, the
financial activities of the Supervisor of Elections are included in the Collier County, Florida (the
County) Comprehensive Annual Financial Report.
Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and
budgeted general fund balances must equal appropriations. The Supervisor of Elections is
required to refund to the Board all excess appropriations annually; therefore, no unappropriated
general fund balance is carried forward.
08]]-1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Supervisor
of Elections. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements for this fund present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets.
The Supervisor of Elections has the following major governmental funds:
General Fund - The general fund is used to account for the general operations of the
Supervisor of Elections, and includes all revenues and expenditures that are not accounted
for in another fund.
Grant Special Revenue Fund - The grants fund is used to account for the activities of voter
education and poll worker training grants from the State of Florida.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance liabilities of the current fiscal year). For this
purpose, the Supervisor of Elections considers revenues to be available if they are collected
within 60 days after year-end. Expenditures are recorded when the related fund liability is
incurred, except for compensated absences, which are recognized as expenditures to the extent
they have matured.
The appropriations from the Board are the primary source of funds considered to be susceptible
to accrual.
Intergovernmental revenues are recognized when eligibility requirements are met and related
amounts are available from the grantor.
0811-1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies Practices (continued)
Interest income and other revenues are recognized as they are earned and become measurable
and available to pay liabilities of the current period.
Florida Statutes provide that the amount by which revenues and transfers exceed annual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenues were recognized.
The amount of this distribution is recorded as a liability and as an other financing use in the
accompanying special-purpose financial statements.
Capital outlays expended in general fund operations are capitalized in the basic financial
statements ofthe County rather than in the governmental funds of the Supervisor of Elections.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less. Cash equivalents in the Local Government Surplus Trust Fund are administered
by the State Board of Administration (SBA), a 2a-7-like investment pool. Shares of the
investment pool are based on the pool's share price, which approximates fair value. At
September 30, 2008, the Supervisor of Elections had no amounts on deposit in the SBA.
Compensated Absences
All full-time employees of the Supervisor of Elections are allowed to accumulate an unlimited
number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective
October 1, 2007, the vacation leave limit was increased to 480 hours. Upon termination,
employees receive 100% of allowable accumulated vacation hours and a percentage of unused
sick leave, depending on years of service. Vacation time and sick leave are included in operating
costs when the payments are made to employees. The Supervisor of Elections does not, nor is
she legally required to accumulate financial resources for these unmatured obligations.
Accordingly, the liability for compensated absences is not reported in the general fund, but rather
is reported in the basic financial statements ofthe County.
0811-]001894
8
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Use of Estimates
The preparation of the special-purpose financial statements requires management of the
Supervisor of Elections to make a number of estimates and assumptions relating to the reporting
of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Supervisor of
Elections' annual budget. The Supervisor of Elections submits a budget for the general fund to
the Board of County Commissioners for approval. The budget is prepared on a basis consistent
with accounting principles generally accepted in the United States of America. The annual
budget serves as the legal authorization for expenditures. Any subsequent amendments to the
Supervisor of Elections' total budget must be approved by the Board. Expenditures may not
legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary
control is maintained at the departmental major object expenditure level. Budgetary changes
within major object expenditure categories are made at the discretion of the Supervisor of
Elections.
The Supervisor of Elections does not budget for the grant special revenue fund as it is funded by
State grants and is governed by those documents.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
0811-1001894
9
Collier County, Florida
Supervisor of Elections
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Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrymg value of the Supervisor of Elections' cash and cash
equivalents was as follows:
Type
Carrying Credit
Value Rating
$ 200 N/A
890,332 N/A
$ 890,532
Cash on hand
Demand deposits
Total cash and cash equivalents
Custodial Credit Risk
At September 30, 2008, the Supervisor of Elections' deposits were entirely covered by federal
depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter, in the event of default by a participating financial
institution (a qualified public depository), all participating institutions are obligated to reimburse
the governmental entity for the loss.
Credit Risk
The Supervisor of Elections' policy is to follow the guidance in Section 219.075, Florida
Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections
219.075 and 218.415, Florida Statutes, authorize the Supervisor of Elections to invest in the
Local Government Surplus Funds Trust Fund or any intergovernmental investment pool
authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange
Commission registered money market funds with the highest credit quality rating from a
nationally 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.
081]-1001894
10
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13 A
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Interest Rate Risk
The Supervisor of Elections has no specific investment policy regarding interest rate risk.
4. Capital Assets
Capital assets used by the Supervisor of Elections are reported in the basic financial statements
of the County rather than in the governmental funds of the Supervisor of Elections. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Supervisor of
Elections, and are capitalized at cost in the basic financial statements of the Board. Capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available.
Donated capital assets are valued at their estimated fair value on the date received. The
Supervisor of Elections maintains custodial responsibility for the capital assets used by the
office. No depreciation expense has been provided on capital assets in these special-purpose
financial statements. However, depreciation expense is recorded in the basic financial statements
of the Board.
5. Long-Term Liabilities
The following is summary of changes in long-term liabilities that are reported in the basic
financial statements of the County:
September 30,
2007 Increase
September 30,
Retirement 2008
Accrued compensated absences $ 108,604
$ 93,968
$ 43,632
$ 158,940
Of these liabilities, approximately $43,600 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Supervisor of Elections since they have not matured.
0811-1001894
II
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13 A
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plans
Substantially all full-time employees of the Supervisor of Elections filling regularly established
positions are eligible to participate in the State of Florida Retirement System (System), a
cost-sharing, multiple-employer defined benefit plan administered by the State of Florida,
Division of Retirement. The System is a defined benefit plan for all state, and participating
county, district school board, community college, and university employees (Pension Plan). The
System also offers eligible employees participation in an alternative defined contribution plan
(Investment Plan). The Supervisor of Elections participates in the Elected State Officers' Class.
The plan is administered by the State of Florida. Contribution rates are established statewide for
all participating governmental units. Accordingly, the actuarial information and related
disclosures attributable to the Supervisor of Elections' employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with six years of
credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit,
payable monthly for life, equal to 1.6% for regular employees, 2.0% for senior management and
3.0% for county elected officials for each year of credited service times the final average
compensation. Final average compensation is the employee's average of the five highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
receive benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the Investment Plan are vested after one year of service with no age requirement.
The System also provides death and disability benefits. Benefits are established by Chapter 121,
Florida Statutes, and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July I, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a system employer. The participation in the program does not change
conditions of employment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP benefits and begin receiving their monthly retirement benefit
(in the same amount determined at retirement, plus annual cost-of-living increases).
0811-]001894
12
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13A
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plans (continued)
The System publishes an annual report that provides 10-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement Research Education and Policy Section, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.fl.us.
The Supervisor of Elections is required to contribute an actuarially determined rate. The current
rate is 16.53% for county elected officials, 13.12% for senior management, 9.85% for regular
employees, and 10.91 % for DROP employees. The contribution requirements of the Supervisor
of Elections are established and may be amended by the State of Florida. The Supervisor of
Elections' contributions to the plan for the years ended September 30, 2008, 2007, and 2006,
were $127,461, $117,905, and $88,644, respectively, equal to the required contributions for
each year.
7. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions. .
Plan Description
The Supervisor of Elections participates in a group health care plan that covers eligible retirees,
and their dependents, of the Board and all Constitutional Officers with the exception of the
Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does
not issue a stand-alone financial report; however, additional actuarial information regarding the
plan as a whole is disclosed in the notes to the basic financial statements of the County.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
0811-1001894
13
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued)
age 62 and have six years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. The Supervisor of Elections provides no subsidy to the retiree, or
their dependents, for group health care.
Funding Policy
The contribution requirements of the plan members and the employers are established and may
be amended by the County. The plans are financed by the participating agencies on a pay as you
go basis through the County's self-insurance internal service fund. The Supervisor of Elections
contributes an additional amount to the County per each active employee to accumulate
resources to fund retiree health care. The Supervisor of Elections contributed $2,525 to the group
health plan during the fiscal year ended September 30, 2008. The Supervisor of Elections' share
of the County's net OPEB obligation at September 30, 2008, was $5,681, which is recorded in
the basic financial statements of the County.
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in 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 30 years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
For the year ended September 30, 2008, the Board provided funding for the Supervisor of
Elections that amounted to $3,947,400. At September 30, 2008, the Supervisor of Elections had a
payable due to the Board of $369,287 comprised as follows:
Distribution of excess appropriations
Distribution of excess fee special election
Distribution of interest earnings
Amounts due for various services
Total due to the Board
$ 220,539
101,481
40,969
6,298
$ 369,287
0811-1001894
14
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management
The County is exposed to various risks of loss including, but not limited to, general liability,
health and life, property and casualty, auto and physical damage, and workers' compensation.
The County is substantially self-insured and accounts for and finances its risk of uninsured losses
through an internal service fund. All liabilities associated with these self-insured risks are
reported in the basic financial statements of the County. During the year ended September 30,
2008, the Supervisor of Elections was charged $186,125 by the County for participation in the
risk management program.
The County provides coverage for up to $350,000 per claim for workers' compensation and has
purchased outside excess coverage for up to $25 million for employee liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature.
The County also provides coverage for up to $200,000 per claim for public official's errors and
omissions claims and has purchased outside excess coverage for up to $5 million per claim.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third-party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetime limit of $2,000,000.
10. Contingencies
Grant funds received by the Supervisor of Elections are subject to audit by grantor agencies.
Audits of these grants may result in disallowed costs, which may constitute a liability of the
office of the Supervisor of Elections. In the opinion of management, disallowed costs, if any,
would be immaterial to the financial position of the Supervisor of Elections.
0811-1001894
15
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11111111111111111111111111""'" i!J ERNST & YOUNG
Ernst & Young LLP 13 A
Suite 1200
401 East Jackson Street
TampC'l. Florida 33602
Tel: +1813 225 4800
F,'lX: +1 an 22~j 4111
www.ey.com
..
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Special-Purpose Financial
Statements Performed in Accordance With Government Auditing Standards
The Honorable Jennifer 1. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the special-purpose financial statements of each major fund of the Collier
County, Florida Supervisor of Elections (the Supervisor of Elections) as of and for the year
ended September 30, 2008, and have issued our report thereon dated December 10, 2008. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Supervisor of Elections' internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the special-purpose financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Supervisor of Elections' internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Supervisor of Elections' internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
0811-1001894
16
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' special-
purpose financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
special-purpose financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Supervisor of Elections,
management, others within the entity, the Board of County Commissioners of Collier County,
Florida and the Auditor General of the state of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
~ThLLP
December 10, 2008
0811-1001894
17
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Ernst & Young LLP
Suite 1200
401 E:ast Jackson Sln,el
Tampd, Florida 33602
rei: +1813 225 4800
Fax: +1 813 225 4711
www.ey.com
Management Letter
The Honorable Jennifer J. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the special-purpose financial statements of each major fund of the Collier
County, Florida Supervisor of Elections (the Supervisor of Elections) as of and for the year
ended September 30, 2008, and have issued our report thereon dated December 10,2008.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the state of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated December 10, 2008, on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
staternents performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
There were no findings or recommendations made in the preceding annual financial audit.
Current Year Findings and Recommendations
There are no findings or recommendations to be reported as a result of our audit.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies.
The Supervisor of Elections was established by the Constitution of the state of Florida,
Article VIII, Section 1 (d).
0811-]001894
18
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This management letter is intended solely for the information and use of the Supervisor of
Elections, management, the Board of County Commissioners of Collier County, Florida, and the
Auditor General of the state of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
~ThLLP
December 10, 2008
0811-1001894
19
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Tax Collector
Years Ended September 30, 2008 and 2007
With Report of Independent Certified Public Accountants
0810-0995776
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Collier County, Florida
Tax Collector
Special-Purpose Financial Statements
Years Ended September 30, 2008 and 2007
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose financial Statements
Special-Purpose Balance Sheets - General Fund ............................................................................3
Special-Purpose Statements of Revenues, Expenditures, and Changes in Fund Balance-
General Fund.................................................................................................................................4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- General Fund - Budgetary Basis ................................................................5
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds..........................6
Notes to Special-Purpose Financial Statements............................................................................... 7
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in
Accordance with Government Auditing Standards.....................................................................19
Management Letter........................................................................................................................21
0810-0995776
1111111111111111111111111""'''' i!J ERNST & YOUNG
Ernst & Young LLP
Suite 1200
401 East Jackson Street
Tampa, Florida 33602
Tel:+l 813 225 4800
Fax: +1 813 225 471.1
www.ey.cofTI
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13 A
Report of Independent Certified Public Accountants
Honorable Guy 1. Carlton, Tax Collector
Collier County, Florida
We have audited the accornpanying special-purpose financial statements of the general fund and
the aggregate remaining fund information of the Collier County, Florida Tax Collector (the Tax
Collector), as of and for the years ended September 30, 2008 and 2007, as listed in the table of
contents. These special-purpose financial statements are the responsibility of the Tax Collector's
management. Our responsibility is to express opinions on these special-purpose financial
statements based on our audit.
We conducted our audits in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Tax Collector's internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Tax Collector's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the special-purpose financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
special-purpose financial statement presentation. We believe that our audits provide a reasonable
basis for our opinions.
As discussed in Note I, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Chapter
10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the Tax
Collector's financial position and its changes in financial position, where applicable, therefore,
for the year then ended, in conformity with accounting principles generally accepted in the
United States. Additionally, the special-purpose statements present only the Tax Collector and do
not purport to, and do not, present fairly the financial position of Collier County, Florida, as of
September 30, 2008 and 2007, and the changes in its financial position, where applicable, for the
years then ended, in conformity with accounting principles generally accepted in the United
States.
0810-0995776
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of the general fund and the aggregate
remaining fund information of the Tax Collector as of September 30, 2008 and 2007, and the
respective changes in financial position, thereof, and the budgetary comparison for the general
fund for the years then ended in conformity with accounting principles generally accepted in the
United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2008 on our consideration of the Tax Collector's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
This report is intended solely for the information and use of the Tax Collector, management, the
Board of County Commissioners of Collier County, Florida, and the Auditor General of the State
of Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
~ThLLP
December 10,2008
0810-0995776
2
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Collier County, Florida
Tax Collector
Special-Purpose Balance Sheets - General Fund
September 30, 2008 and 2007
Assets
Cash and cash equivalents
Due from other funds
Interest receivable
Prepaid rent
Security deposit
Total assets
Liabilities and fund balance
Liabilities:
Accounts payable
Due to Collier County, Florida Board of
County Commissioners
Due to other governmental agencies
T otalliabilities
Fund balance
Total liabilities and fund balance
See accompanying notes.
0810-0995776
31' to[o~ cJ-
13A
2008 2007
$ 11,274,120
64,941
4,628
4,628
$ 11 ,348,317
$ 10,857,529
46,710
29,921
$ 10,934,160
$ 25,213 $ 24,782
10,083,315 9,750,322
1,239,789 1,159,056
11,348,317 10,934,160
$ 11 ,348,317 $ 10,934,160
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Collier County, Florida
Tax Collector
Special-Purpose Statements of Revenues, Expenditures,
and Changes in Fund Balance - General Fund
Years Ended September 30, 2008 and 2007
2008 2007
Revenues:
Comrnissions and fees $ 22,083,395 $ 21,578,802
Miscellaneous 687,701 756,222
Total revenues 22,771,096 22,335,024
Expenditures:
General government:
Personal services 9,092,126 8,367,490
Operating 2,145,297 2,532,138
Capital outlay 210,569 526,018
Distribution of excess cornmissions and fees to other
governmental agencies 1,239,789 1,159,056
Total expenditures 12,687,781 12,584,702
Excess of revenues over expenditures 10,083,315 9,750,322
Other financing uses:
Distribution of excess commissions and
fees to Collier County, Florida Board of County
Commissioners (10,083,315) (9,750,322)
Total other financing uses (10,083,315) (9,750,322)
Excess of revenues over expenditures and other financing uses
Fund balance, beginning of year
Fund balance, end of year $
- $
See accompanying notes.
0810-0995776
4
Collier County, Florida
Tax Collector
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual- General Fund
Year Ended September 30, 2008
Revenues:
Commissions and fees
Miscellaneous
Total revenues
Expenditures:
General government:
Personal services
Operating
Capital outlay
Total expenditures
. Excess of revenues over expenditures
Other financing uses:
Distribution of excess commissions
and fees to Collier County, Florida
Board of County Commissioners
Distribution of excess commissions
and fees to other governmental
agencies
Total other financing uses
Excess of revenues over expenditures
and other financing uses
Fund balance, beginning of year
Fund balance, end of year
See accompanying notes.
0&10-0995776
3[ t9\()~ d--
13A
Variance With
Final Budget
Positive
Actual Negative
Budget
Original Fiual
$ 21,912,237
645,000
22,557,237
$ 22,083,395
687,701
22,771,096
$22,083,395
687,701
22,771,096
9,208,581 9,092,126 9,092,126
2,236,392 2,145,297 2,145,297
103,411 210,569 210,569
11,548,384 11,447,992 11,447,992
11,008,853 11,323,104 11,323,104
$
(9,907,968)
(10,083,315) (10,083,315)
(1,100,885)
(11,008,853)
(1,239,789) (1,239,789)
(11,323,104) (11,323,104)
$
- $
$
- $
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Collier County, Florida
Tax Collector
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds
September 30, 2008 and 2007
2008 2007
Assets
Cash and cash equivalents $ 4,927,906 $ 4,303,742
Accounts receivable 5,777 11,101
Interest receivable 10,811
Total assets $ 4,933,683 $ 4,325,654
Liabilities
Due to other funds $ 64,941 $ 46,710
Due to Collier County, Florida Board of
County Commissioners 809,788 741,481
Due to other governmental agencies 2,594,639 2,414,110
Due to individuals and businesses 1,464,315 1,123,353
Totaljiabilities $ 4,933,683 $ 4,325,654
See accompanying notes.
0810-0995776
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13A
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Tax Collector (Tax Collector) is an elected constitutional officer as
provided for by the Constitution of the State of Florida. Pursuant to Chapter 195.087, Florida
Statutes, the Tax Collector's budget is submitted to the Florida Department of Revenue for
approval, and a copy is forwarded to the Collier County, Florida Board of County
Commissioners (Board).
The special-purpose financial statements presented include the general fund and agency funds of
the Tax Collector's office. The accompanying special-purpose financial statements were
prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section
10.557(3), Rules of the Auditor General for Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor Generalfor Local Governmental Entity Audits, requires
the Collier County, Florida Tax Collector to only present fund financial statements. Accordingly,
due to the omission of certain financial statement disclosures including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of the Collier County, Florida Tax Collector as of
September 30, 2008 and 2007 and the changes in its financial position for the years then ended,
in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic
Financial Statements ~ and Management's Discussion and Analysis - for State and Local
Governments, but otherwise constitute special-purpose financial statements prepared in
conformity with U.S. generally accepted accounting principles (GAAP).
The financial activities of the Tax Collector, as a constitutional officer, are included in the
Collier County, Florida Comprehensive Annual Financial Report.
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Tax
Collector. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is reported in a separate column.
0810-0995776
7
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheets. Operating statements for these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets. The Tax Collector's only governmental fund is the 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 govemmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Tax Collector considers revenues to be available if they are collected within 60 days
after the end of the current period. Expenditures are recorded when the related fund liability is
incurred, except 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 is met.
Florida Statutes provide that the amount by which revenues exceed annual expenditures be
remitted to each governmental agency immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized.
Florida Statutes further provide that the excess of revenues over expenditures held by the Tax
Collector be distributed to each governmental agency in the same proportion as the commissions
and fees paid by each governmental agency bear to total commission and fee revenue. The
amounts of these distributions are recorded as liabilities and as an expenditure or other financing
uses in the accompanying special-purpose financial statements.
0810-0995776
8
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1.3 A
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in the general fund operations are capitalized in the basic financial
statements of Collier County, Florida (the County) rather than in the governmental funds of the
Tax Collector.
Fiduciary Funds
Agency Funds - Fiduciary funds are used to account for assets held by the Tax Collector in a
trustee capacity or as an agent for individuals, private organizations, and other governments.
Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of
results of operations or have a measurement focus. Agency funds are accounted for using the
accrual basis of accounting.
Cash and Cash Equivalents
Cash and cash equivalents are highly liquid investments with original maturities of three months
or less.
Compensated Absences
All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of
hours of unused sick time and up to 240 hours of unused vacation leave. Upon termination,
employees receive 100% of allowable accumulated vacation hours and a percentage of unused
sick leave, depending on years of service. Vacation and sick leave payments are included in
operating costs when the payments are made to the employees. The Tax Collector does not, nor
is he legally required to accumulate financial resources for these unmatured obligations.
Accordingly, the liability for compensated absences is not reported in the general fund, but rather
is reported in the basic financial statements of Collier County, Florida.
Property Taxes
Property taxes in Collier County are levied by the Board and other taxing authorities. The
millage levies are determined on the basis of estimates of revenue needs and the total taxable
valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad
valorem tax millage in excess of 10 mills on the dollar can be levied by the Board of County
Commissioners against property in the County as specified in Florida Statutes Section 200.071.
0810-0995776
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'1\IDl,04, 6~
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Each year the total taxable property valuation is established by the Collier County, Florida
Property Appraiser, and the list of property assessments is submitted to the State Department of
Revenue for approval. Taxes, assessed as of December I of each year, are due and payable on
November I 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 I of the year following the year in which the tax was assessed.
Chapter 197, Florida Statutes, governs property tax collections as follows:
Current Taxes
All property taxes become due and payable on November I, and are delinquent on April 1
of the following year. Discounts are allowed for early payment of 4% in November; 3% in
December; 2% in January; and 1% for payment in February.
Unpaid Taxes - Sale of Tax Certificates
The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all
real property for unpaid taxes. The land is 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 ofthe 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.
08]0-0995776
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13A
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of these special-purpose financial statements requires management of the Tax
Collector to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's
annual budget. The Tax Collector submits a budget for the general fund to the Florida
Departrnent of Revenue for approval. A copy of the approved budget is provided to the Board of
County Commissioners. Any subsequent amendments to the Tax Collector's total budget must
be approved by the Florida Department of Revenue. The budget for the general fund is prepared
on a basis consistent with u.s. generally accepted accounting principles. The annual budget
serves as the legal authorization for expenditures. Expenditures may not legally exceed
appropriations at the fund level. Appropriations lapse at year end. Budget control is maintained
at the departmental major object expenditure level. Budgetary changes within major object
expenditure categories are made at the discretion of the Tax Collector.
The original budget is the first complete 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.
There is a difference between the budgetary basis of accounting and GAAP in the treatment of
excess fee distributions to entities outside of the County's reporting entity. On a budgetary basis,
distributions of excess fees through this fund are reported as other financing uses. On a GAAP
basis, these distributions are reported as expenditures because there is a reduction in the new
financial resources of the County.
0810-0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008 and 2007, the carrying value of the Tax Collector's cash and cash
equivalents were as follows:
2008 2007
Carrying Carrying Credit
Type Value Value RatinR
Cash on hand $ 33,010 $ 31,470 NIA
Demand deposits 16,169,016 15,129,801 NIA
Total cash and cash equivalents $ 16,202,026 $ 15,161,271
Such amounts are reported as $11,274,120 and $4,927,906 for 2008 and $10,857,529 and
$4,303,742 for 2007 in the governmental and agency funds, respectively.
Custodial Credit Risk
At September 30, 2008, the Tax Collector's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Interest Rate Risk
The Tax Collector has no specific investment policy regarding interest rate risk.
Credit Risk
The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes,
regarding the deposit of funds received and the investment of surplus funds. Sections 219.075
and 218.415, Florida Statutes, authorize the Tax Collector to invest in the Local Government
Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the
Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money
market funds with the highest credit quality rating from a nationally recognized rating agency;
0810-0995776
12
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&
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
direct obligations of the United States Treasury; federal agencies and instrumentalities or
interest-bearing time deposits or savings accounts in banks organized under the laws of the
United States and doing business and situated in the state of Florida, savings and loan
associations which are under state supervision, or in federal savings and loan associations located
in the state of Florida and organized under federal law and federal supervision, provided that any
such deposits are secured by collateral as may be prescribed by law.
4. Capital Assets
Capital assets used by the Tax Collector are capitalized in the basic financial statements of
Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector,
and are capitalized at cost in the basic financial statements of the Collier County, Florida. Capital
assets are valued at historical cost or estimated historical cost if actual historical cost is not
available. Donated capital assets are valued at their estimated fair value on the date received. The
Tax Collector maintains custodial responsibility for the capital assets used by the office. No
depreciation expense has been provided on capital assets in these special-purpose financial
statements. However, depreciation expense on these assets is recorded in the basic financial
statements of Collier County, Florida.
5. Long-Term Liabilities
The following is a summary of changes in long-term liabilities which are reported in the basic
financial statements of Collier County, Florida:
October 1 Net September 30
2007 additions 2008
$1,041,948 $95,691 $1,137,639
October 1 Net September 30
2006 additions 2007
$889,024 $152,924 $1,041,948
Accrued compensated absences
Accrued compensated absences
0810-0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities (continued)
Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Tax Collector since they have not matured.
6. Employee Retirement Plan
Substantially all full-time employees of the Tax Collector are eligible to participate in the State
of Florida Retirement System (System), a cost-sharing multiple-employer defined benefit plan
administered by the State of Florida, Division of Retirement. The System is a defined benefit
plan for all state, and participating county, district school board, community college, and
university employees (Pension Plan). The System also offers eligible employees participation in
an alternative defined contribution plan (Investment Plan). The Tax Collector participates in the
Elected State Officers' Class. The plan is administered by the State of Florida. Contribution rates
are established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Tax Collectors' employees are not
determinable.
Employees participating in the Pension Plan who retire at or after age 62 with six years of
credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit,
payable monthly for life, equal to 1.6% for regular employees, 2% for senior management, and
3 % for county elected officials for each year of credited service times their final average
compensation. Final average compensation is the employee's average of the five highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
receive benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the Investment Plan are vested after one year of service with no age requirement.
The System also provides death and disability benefits. Benefits are established by Chapter 121,
Florida Statutes, and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July 1, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a System employer. The participation in the program does not change
conditions of employment. When the DROP period ends, maximum of 60 months, employment
0810-0995776
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13A
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan (continued)
rnust be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at htto:llwww.frs.state.tl.us.
The Tax Collector is required to contribute an actuarially determined rate. The current rate is
16.53% for county elected officials, 13.12% for senior management, 9.85% for regular
employees, and 10.91 % for DROP employees of covered payroll. The contribution requirements
of the Tax Collector are established and may be amended by the State of Florida. The Tax
Collector's contributions to the plans for the years ended September 30, 2008, 2007, and 2006
were $643,986, $595,152 and $439,343, respectively, equal to the required contributions for each
year.
7. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description. The Tax Collector participates in a group health care plan that covers eligible
retirees, and their dependents, of the Board of County Commissioners and all Constitutional
Officers with the exception of the Sheriff. The Board administers the plan and establishes the
benefits. The healthcare plan does not issue a stand-alone financial report, however additional
actuarial information regarding the plan as a whole is disclosed in the Notes to the Financial
statements of Collier County.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
0810-0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued)
age 62 and have six years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. In addition, the Tax Collector provides a 100% subsidy for
retirees between the ages of 55 and 65 with more than 10 years of service and 800 hours of
accumulated sick leave to remit at the time of retirement.
Funding Policy. The contribution requirements of the plan members and the employers are
established and may be amended by the County. The plans are financed by the participating
agencies on a pay as you go basis through the County's self insurance internal service fund.
The Tax Collector contributes an additional amount to the County per each active employee to
accumulate resources to fund retiree health care. The Tax Collector contributed $4,410 to the
group health plan during the fiscal year ended September 30, 2008. The Tax Collector's share of
the County's net OPEB obligation at September 30, 2008 was $9,921, which is recorded in the
basic financial statements of the County.
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 on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a
period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
During the fiscal years ended September 30, 2008 and 2007, the Board paid commissions and
fees to the Tax Collector that amounted to $20,277,863 and $19,962,056, respectively. At
September 30, 2008 and 2007, the Tax Collector had a payable due to the Board of County
Commissioners of$10,893,103 and $10,491,803, respectively, comprised as follows:
2008 2007
Distribution of excess commissions and fees
Agency funds due to the Board
$ 10,083,315
809,788
$ 10,893,103
$ 9,750,322
741,481
$ 10,491,803
0810.0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management
Collier County, Florida (the County) is exposed to various risks of loss including but not limited
to general liability, health and life, property and casualty, auto and physical damage, and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with these
self-insured risks are reported in the basic financial statements of the County. The Tax Collector
participates in the County's self-insurance program. During the years ended September 30, 2008
and 2007, the Tax Collector was charged $1,957,894 and $1,761,403, respectively, by the
County for participation in the risk management program.
The County provides coverage for up to $350,000 per claim for workers' compensation, and has
purchased outside excess coverage for up to $25 million for employee liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,0001$200,000 per occurrence can only be recovered through an act of the State Legislature.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetime limit of $2 million.
0810-0995776
17
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
10. Commitments and Contingencies
Leases
The Tax Collector has noncancelable operating leases for certain office facilities that were
utilized solely by the Tax Collector for fiscal year 2008. The following is a schedule of future
minimum lease payments under the operating leases:
Fiscal year ending September 30:
2009
2010
2011
2012
2013
$ 271,166
238,869
198,640
62,475
64,974
Rental expense for all operating leases aggregated $226,249 and $260,573 for the years ended
September 30,2008 and 2007, respectively. There were no contingent rentals or sublease rentals
associated with leases in effect at September 30, 2008 or 2007.
Litigation
The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising
from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the
range of potential recoveries or liabilities will not materially affect the financial position of the
Tax Collector.
0810.0995776
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1III1111111111111111111 S!J ERNST & YOUNG
Ernst & Young LLP
Suite 1200
401 East Jackson Street
Tampa. Florida 33602
Tel:+.1. 813 225 4800
Fax:+18132254711
www.ey.com
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Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Special-Purpose Financial
Statements Performed in Accordance with Government Auditing Standards
Honorable Guy L. Carlton, Tax Collector
Collier County, Florida
We have audited the special-purpose financial statements of the general fund and the aggregate
remaining fund information of the Collier County, Florida Tax Collector (the Tax Collector) as
of and for the year ended September 30, 2008, and have issued our report thereon dated
December 10, 2008. We conducted our audit in accordance with auditing standards generally
accepted in the United States and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Tax Collector's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Tax Collector's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal
control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
0810-0995776
19
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Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's special-purpose
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
We noted certain matters that we reported to management of the Tax Collector in a separate
letter dated December 10, 2008.
This report is intended solely for the information and use of the Tax Collector, management,
others within the entity, the Board of County Commissioners of Collier County, Florida and the
Auditor General of the State of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
~-thLLP
December 10, 2008
0810-0995776
20
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401 East Jackson Street
l"ampa, Florida 33602
Tel:+l 8132254800
Fax:+18132254111
www J~V .com
Management Letter
Honorable Guy L. Carlton, Tax Collector
Collier County, Florida
We have audited the special-purpose financial statements of the general fund and the aggregate
remaining fund information of the Collier County, Florida Tax Collector (the Tax Collector) as of
and for the year ended September 30, 2008, and have issued our report thereon dated
December 10, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the state of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated December 10, 2008 on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
See Exhibit A for the status of prior year recommendations.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current annual financial audit.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than
the internal control recommendations included above.
0810-0995776
21
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The Tax Collector was established by the Constitution of the State of Florida, Article VIII,
Section I (d).
This management letter is intended solely for the information and use of the Tax Collector,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~ThLLP
December 10, 2008
0810-0995776
22
f<il1',"n ",' f'il'-" Ernitg Y(''''''.)f ,'>"dli..,'wl'cc,ej
Collier County, Florida
Tax Collector
Status of Prior Year Recommendation
September 30, 2008
Recommendation
Status
~!ro[~ d--
EXhibit-l3 A
IT Access Controls
Password length should be no less than 6
characters.
Reset account lockout counter value
should be set at 60 minutes or higher.
Account lockout threshold should be set
to 3-5 attempts.
Consider enabling password cornplexity.
0810-0995776
Implemented.
Implemented.
Implemented.
Still applicable.
23
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2008
COLLIER COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
THOMAS K HENNING, CHAIRMAN
JAMES N. COLETTA, Jr.
FRED W. COYLE
DONNA L. FIALA, VICE-CHAIRMAN
FRANK HALAS
COUNTY MANAGER
JAMES V. MUDD
COUNTY ATTORNEY
JEFFREY A. KLATZKOW
CLERK OF THE CIRCUIT COURT
AND
CHIEF FINANCIAL OFFICER
DWIGHT E. BROCK
DIRECTOR OF FINANCE AND ACCOUNTING
CRYSTAL K. KINZEL
Prepared by the Finance and Accounting Department
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COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS
1jIof2/df tL
131 -
INTRODUCTORY SECTION
Transmittal Letter....
Certificate of Achievement...
Page
......1
.. .....xxv
FINANCIAL SECTION
Report of Independent Certified Public Accountants
Management's Discussion and Analysis (Unaudited)
...... 3
BASIC FINANCIAL STATEMENTS:
Statement of Net Assets ...................... ,......................,.. .................... ........................ ..............m.........
Statement of Activities.......................... .............." ...................... ................ ........................
Balance Sheet - Governmental Funds . ................ ...................... ........................ .
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............ ................................
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds.... .................... .. ..............
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental
Funds to the Statement of Activities ....................................... ...................... ......................
General Fund - Statement of Revenues, Expenditures and Changes in Fnnd Balances - Budget and Actual (Non-GAAP).
COnuTIunity Redevelopment - Statement of Revenues, Expenditures and Changes in Fund Balances-
Budget and Actual (Non-GAAP)... .............................................. ..................................... ..................
Statement of Net Assets - Proprietary Funds ............................................ ................. .........................
Statement of Revenues, Expenses and Changes in Fnnd Net Assets - Proprietary Fnnds......
Statement of Cash Flows - Proprietary Funds ... ............................................................... .................
Statement of Fiduciary Assets and Liabilities - Agency Frmds ..................... ..................................
Notes to the Financial Statements.............. .................. ..............................
Required Supplementary Information..... ................ .............."... ..........................
............... 14
.. .....16
.... 18
19
..20
.21
.......... 22
25
....26
.28
..............29
......31
........33
........ 78
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS:
Nonmajor Governmental Funds
Combining Balance Sheet. ...................... ............................ ........................ .............................. ................. ... 82
Combining Statement of Revenues, Expenditures and Changes in Frmd Balances.................... .................. .................. ........ 90
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) .....................98
Nonmajor Ente-wrise Frmds
Combining Statement of Net Assets.
Combining Statement of Revenues, Expenses and Changes in Frmd Net Assets
Combining Statement of Cash Flows... ....................... ......................
.122
... 123
.....124
Internal Senrice Fnnds
Combining Statement of Net Assets .................. ................
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Combining Statement of Cash Flows... .............."... ................
.....128
..129
.... 130
Fiduciaty Funds
Combining Statement of Fiduciary Assets and Liabilities ................ .
Combining Statement of Changes in Assets and Liabilities ......
.134
.........135
Component Units
Combining Statement of Net Assets.. ......................... .........................
Combining Statement of Revenues, Expenditures and Changes in Net Assets..
. 138
............139
COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS - CONTINUED
J/14~1 ~
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STATISTICAL SECTION (UNAUDITED)
Net Assets by Component., .................. ................ ............................... ...................... ...................... .....142
Change in Net Assets . ................ . .......................... ... .. ........... ...... ........ ...... ..... 143
Governmental Activities Tax Revenues by Source ..................,................. .......... ...... 145
Fund Balances of Govemmental Funds.. ....................... ....... ................. ..... ........................... ......... .................. ........ 146
Changes in Fund Balances of Governmental Funds ................. ............................. ....... 147
Assessed Value and Estimated Actual Value of Taxable Property....... ............................................................. ....... . ...... ............... 148
Property Tax Rates - All Direct and Overlapping Governments ....................... ........................... ......................... ...... 149
Principal Tax Payers County-Wide... ...... ........... .................. .. ......... ........................ 150
Property Tax Levies and Collections..... .................. ................ ..... ............... .............. ...... 151
Ratios of Outstanding Debt by Type.... ........................ ................... .................. 152
Ratios of General Bonded Debt Outstanding.... .......................... ............ 153
Legal Debt Margin Information ................. .................... .................. ........................ ......... .. ........ ..... 154
Direct and Overlapping Governmental Activities Debt. ..................... ................. .................. 154
Pledged~Revenue Coverage.. ................ ................... ................. .................... ...... ............... 155
Demographic and Economic Statistics... ....... ............ ....... ................. ................ ................156
Principal Employers .................. ................... ........ . . 157
Full-Time Equivalent County Employees by Function ............................. ................ .... ............ ..... 158
Operating Indicators by Function. .. ..... .......... .. ... ............. ........................... .................. ...... ........ .. ................. 159
Capital Asset Statistics by Function .................... .................. .. ........... ..... ...... ............................ ,................ . ........ 160
SINGLE AUDIT (SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of the Financial Statements Performed in Accordance with GovernmentAuditing Standards ................. ...... ...163
Report of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each
Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB
Cncular A-133, Section 215.97, Florida Statutes, and Chapter 10.550, &IeJoftheAuditorGeneral. .................. .......... ......... .............165
Schedule of Expenditures of Federal Awards and State Projects......... .................... .................. ...168
Notes to the Schedule of Expenditures of Federal Awards and State Projects ............ ....... ........................ ..........177
Schedule of Findings and Questioned Costs.... ............... ........ .180
Schedule of Prior Audit Findings. ...................................................... ......... ..... ............. .................... ................... .................... ..... ........195
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Dwight E. Brock
Clerk of Courts
'iMuPtY."()fe511ier
CLERK OF THE (sIRCaIT COURT
COLLIER COUNTY cPURT~USE
3301 TAMIAMITfl.,AIL EA'IiF
P.O. BOX 4t~044 \
NAPLES, FLORIDA '~101-3044
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Clerk of Courts
Accountant
Auditor
Custodian of County Funds
March 10, 2009
To the Citizens and
Members of the Board of County Commissioners,
Collier County, Florida
It is with extreme pleasure that we present to you, the citizens of Collier County and
Members of the Board of County Commissioners, the Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended September 30, 2008. Responsibility for the
accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the Board of County Commissioners and County management.
The Clerk of the Circuit Court's Finance and Accounting Department, as well as County
management, is responsible for establishing and maintaining internal controls to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against loss
from unauthorized use or disposition, the reliability of financial records for preparing
financial statements, and maintaining accountability of assets. The concept of reasonable
assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by
management. The Clerk is not capable of representing that the internal controls of the
County provide reasonable assurance as his office has been precluded from examining
those controls, in conformance with the court's order, included as pages vii to xxii of this
transmittal letter.
Chapter 11.45 of the Florida Statutes requires an independent certified public
accountant's financial audit of counties in the State. For the fiscal year ended September
30,2008, the report of the independent auditor, Ernst and Young LLP, is included in the
financial section of this report. In addition to meeting the requirements set forth in State
statutes, the audit was also designed to meet the requirements of the Federal 1996 Single
Audit Act Amendments and the related OMB Circular A-133.
The Florida Single Audit is required by Florida Statute 215.97. Information relating to
the Single Audits, including the schedule of expenditures of federal awards and state
projects and the independent auditors' report on compliance and internal control over
compliance with requirements applicable to each major federal and state program, are
included in the Federal and State Single Audit Section of this report.
Phone (239) 252-2646
Website: www.collierclerk.com
Fax (239) 252-2755
Email: collierclerk(iVcollierclerk.com
'3(roj2f/J rl ex-
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Governmental accounting and auditing principles require that management provide a
narrative introduction, overview and analysis to accompany the basic financial statements
in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to compliment MD&A and the two should be read in concert.
Collier County's MD&A can be found in the Financial Section immediately following
the independent auditors' report.
PROFILE OF THE GOVERNMENT
Collier County is a Non-Charter County established in 1923 under the Constitution and
the laws of the State of Florida. The Board of County Commissioners is the legislative
body for Collier County and is made up of five residents elected by voters. In addition to
the County Commissioners, voters elect the following five constitutional officers: the
Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax
Collector.
Services provided by Collier County include public safety, emergency management,
transportation services, water and wastewater services, parks, libraries and solid waste
collection and disposal.
Budgets are prepared annually. Formal budgetary integration is employed as a
management control device during the year. Budget workshops are conducted during
June with the Board of County Commissioners to form a proposed budget. The Board's
proposed budget is released by July 15, in accordance with Florida Statutes. The budgets
of Constitutional Officers are presented to the appropriate authorizing bodies according
to state statute. Public hearings are then held in September to allow taxpayer input and to
adopt the budget as final.
The General Fund ad valorem tax millage for fiscal year 2008 was reduced to 9% below
the rolled back millage rate, (the rate which generates the same tax revenue as levied in
the previous year, exclusive of new construction) in accordance with property tax reform
measures adopted during special legislative session. The State's special legislative
session also included a constitutional amendment to be voted on in early 2008. On
January 29, 2008 Florida voters approved statutory revisions that included increases to
the homestead exemption, portability of Save Our Homes tax breaks up to $500,000, a
10% cap on future assessment increases for non-homesteaded property starting in 2009
and a new tangible equipment exemption of $25,000.
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 2008 population of 332,854 (a 58 percent
increase over the 1998 level), the County has been considered to be one of the fastest
growing counties in the state over the last ten years. The County's economic base is
concentrated in tourism and agriculture, fishing, ranching and forestry with a growing
services economy and an emerging high technology sector. Gulf of Mexico beaches and
ii
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13 Al '-1
the Everglades National Park are important attractions to this area. The park comprises a
substantial portion of the County.
Taxable property market valuation for fiscal year 2008 totaled just over $82.5 billion, or a
very high $248,051 per capita. Unemployment levels in recent years approximate, or are
slightly below those of the state. The 2008 County unemployment rate stood at 5.5%.
Income levels are high, with a per capita personal income of $57,446, which is the
highest in Southwest Florida.
The County's financial operations are managed with recurring General Fund operating
surpluses contributing to historically strong cash and General Fund balance positions.
This trend is expected to be negatively impacted by legislation involving property taxes
and a general slowing of the economy. The County's millage for General Fund
operations in fiscal year 2008 was at only 31 % of the statutory 10 mill limit.
Relevant financial policies include the appropriation of canyforward as revenue in the
following year, recommended General Fund unreserved fund balance of between 10%
and 15% of actual expenditures, the maximization of impact fees as allowed by law and
the use of gas taxes for the Road Construction Capital Improvement Program. The
Collier County debt policy provides for a maximum ratio of total general governmental
debt service to bondable revenues from current sources of 13%.
The major focus of the Capital Improvement Plan for FY-09 will continue to be road
construction, utility water, wastewater, solid waste improvements and government
facilities, including libraries. Funding for road construction will be provided by
remaining unspent Road Construction Fund monies and impact fees. Water and
wastewater projects will be funded by unspent bond proceeds and State Revolving Fund
Loan reimbursements. The remaining projects are a mix of advance funding and short
term borrowings.
LONG TERM FINANCIAL PLANNING
Long term financial planning in Collier County focuses on the provisions of the Local
Government Comprehensive Planning and Land Development Regulation Act. The
provisions of this Act require that local government comprehensive plans include a
Capital Improvement Element (CIE). The CIE is a planning document that identifies
public facilities that will be required during the next five or more years. The Capital
Improvement Element is the foundation of Collier County's annual Capital Improvement
Program (CIP). Included in the County's current CIP for fiscal years 2009-2013 are
approximately $336 million for transportation projects and approximately $133 million
for water and wastewater facilities and various replacement and rehabilitation projects.
Solid waste projects of approximately $11 million are planned, as well as $48 million for
stormwater management projects. A study is currently underway to determine the type of
infrastructure improvements necessary for development east of Collier Boulevard, in the
rural area of the County. The results of this study have major long term service delivery
issues and associated costs.
iii
3/roluo1( Ck
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As a result of the State's 2008 tax reform legislation, the taxable value within the
jurisdiction of each taxing authority used in calculation of the rolled back rate will be
increased by an amount equal to the reduction in taxable value occurring as a result of
recent State Constitutional amendments. This legislation did not impact the Collier
County levy for FY -2009 as the Board of County Commissioners adopted a millage
neutral policy. The roll back calculation for all future fiscal years will be impacted.
In summary, residential and commercial development and an established tourism
economy will continue to contribute to a tax base that has averaged 5% growth annually
for the last five years. While recent growth has moderated, this was not unexpected
given the exceptional growth rates of recent years. New home construction is hampered
by the number of existing homes available and a growing number of foreclosures. The
overall housing market remains relatively soft, however there continues to be activity in
the high end real estate market. Historically, Collier County's economy has proven to be
better insulated from economic downturns than other Florida counties, or the nation.
Future years will be challenging, given the current issues in the housing market and the
state budget, inflationary concerns, and revenue limitations imposed by tax reform.
However, Collier County continues to attract affluent retirees, and the growing services
economy and an emerging high technology sector should continue to attract population
growth and development throughout the County.
CASH MANAGEMENT
The Finance and Accounting Division monitors the daily cash needs of the County and
invests the County's portfolio in accordance with the County's written investment policy.
Authorized investments include certificates of deposit, the Local Government Funds
Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper
and bankers' acceptances. The weighted average maturity of the total managed portfolio
was 1.42 years as of September 30, 2008. The average yield for fiscal year 2008 was
4.77%. Changes in the fair value of investments are recorded separately from interest
income in the financial statements.
A WARDS
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, 2007. 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
iv
3/fDj2Ao9 cJ(
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contents conform to program standards. The CAFR must satisfY both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Collier County has
received this award for the past twenty-two years, from fiscal year 1986 to 2007. We
believe our current report conforms to the Certificate of Achievement program
requirements, and we are submitting it to the GFOA for consideration for an award again
this year.
Distinguished Budget Presentation Awards:
The Government Finance Officers Association of the United States and Canada presented
an award for Distinguished Presentation to Collier County for its annual budget for the
fiscal year beginning October 1, 2007. In order to receive this award, a government unit
must publish a budget document that meets program criteria as a policy document, as an
operations guide, as a financial plan, and as a communications device. The Distinguished
Budget Presentation Award is valid for a period of one year only. Collier County has
received this award for the last nineteen consecutive years.
The Government Finance Officers Association of the United States and Canada presented
an award for Distinguished Presentation to the Office of the Collier County Clerk of the
Circuit Court for its annual budget for the fiscal year beginning October 1, 2007. In order
to receive this award, a government unit must publish a budget document that meets
program criteria as a policy document, as an operations guide, as a financial plan, and as
a communications device. The Distinguished Budget Presentation Award is valid for a
period of one year only. The Clerk's Office has received this award for the last seven
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, Maryalice Bailey, Edith Manuel,
CPA, Precious Corrado, June Wathen, Liz Willis, Desiree Gardine, Suzanne Boothby,
Dan Tripaldi, Ashley Pearson, and Karen Oberrath, all Accountants, along with
Constance Murray, CGFO, General Operations Manager, Raymond Milum, Jr., Clerk's
Fiscal Operations Manager, Nancy Fragione, Senior Financial Specialist and Michele
Bettencourt, Office Assistant, and all of the staff of the Finance and Accounting
Department.
Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County
Commissioners, the Constitutional Officers, the County Manager, Division
Administrators and the Department Directors for their assistance throughout the year in
matters pertaining to the financial affairs of the County.
v
?/ro/Ztff! CL
13 A .
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) 530-
6299.
Res ectfully,
v:~
Dwig E. Brock
Clerk of the Circuit Court
Chief Financial Officer
Cryst K. Kinzel
Deputy Clerk
Director..o ance and Accounting
~O~CPA
eputy Clerk
General Accounting Manager
vi
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IN THE CIRCUIT COURT FOR THE TWENTIETH JUDICIAL c~curi
IN AND FOR COLLIER COUNTY FLORIDA '
CIVIL ACTION ~. -~
DWIGHT E. BROCK, CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
v.
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, AS
EX-OFFICIO THE GOVERNING BOARD OF THE
OCHOPEE AREA FIRE CONTROL
AND EMERGENCY MEDICAL CARE
SPECIAL TAXING DISlRICT alk/a THE
CHOPEE FIRE DlSlRICT, a Municipal
Services Taxing Unit pursuant 10
Section I2S.01(I)(q), F.S.;
LINDA T. SWISHER and PAUL WILSON,
Defendants.
BOARD OF COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, on behalf
of COLLIER COUNTY, a Political Sub-
division of the State of Florida, .
Petitioner,
v.
DWIGHT E. BROCK, CLERK OF THE
CIRCUITCOURTOFCOLLIERCOUNT~
FLORIDA,
Respondent.
I
vii
Case No. Q4-94I-CA
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Consolidated with
Case No; OS-9S3.CA
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13 A II
PAUL WILSON,
Petitioner,
Consolidated with
Case No.: OS.)S06-CA
v.
DWIGHT E. BROCK. CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
Respondent.
FINA.L JUDGMENT
THIS consolidated action was heard on motions filed and heard before the Court. For the
reasons set forth in the attached Orders, which Orders are incorporated by reference herein, the Court
hereby :
ORDERS AND ADJUDGES:
I. Judgment is hereby rendered in favorofPetitioners, BOARD OF COMMISSIONERS
OFCOLUERCOUNTY, FLORIDA, ON BEHALF OF COLLJER COUNTY COLLIER COUNTY
and PAUL WILSON, and against Defendant, DWIGHT E. BROCK, CLERK OF TIlE CIRCUIT
COURT OF COLLIER COUNTY, on the Complaints for Writs of Quo Wammto in Case Nos. 05-
9S3-CA and 05-1506-CA.'
2. Judgment is hereby rendered in favor of Defendants, BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ETC., LINDA T. SWISHER and PAUL
WILSON, ET AL., on the Complaint for Declaratory Relief in Case No. 04-94I-CA. Defendants in
Case No. 04-941-CA shall go hence without day.
I The detennination in favor of Petitioner CoIlier County on its Complaint for Writ of
Quo Warranto controls the outcome of the Complaint for Writ of Quo Warranto filed by
Petitioner Paul Wilson, as a matter oflaw.
viii
13A
3 ft/ 7JPt Cf<
.1
3. The Court reserves jurisdiclion 10 determine entitlement 10 and the amount of costs
and anomeys' fees upon proper molion.
DONE AND ORDERED in FI. Myers, Florida on this Lt:day of
2007.
Copies furnished to:
JI",!uellDe WID..... Hubbard, IlIq.
Office ofrhe County Anomey
3301 East TamiamiTroil, 8th Fluor
Naplea, FL 34112.
eolUl.Jelfor B"",d of Commissioners
of Collier Cool!/)' in Case Nos. 05-953.CA. CA-05-
1506 ond 04.941-cA
Theodore 1. Trtpp, Jr., IlIq.
Garvin" Tripp, P.A.
Post omce Drawer 2040
Fort Myers, Florida 33902
Co-Co"nselfor Boord ofComml4sione"
of Collier COllI!/)' In Cas. Nas. 05-953-CA. CA-05.
/506 ond04-941-CA ondf.,. POIlI Wilson In Case No.
05-/506-CA
AD3932.WPD
!".',"'/tl<b'Y
,
~l
r::>
HONORABLE MICHAEL T. MCHUGH
ADlbon, P. Pires, Jr., E.q.
St....D V. SIOUDt, E.q.
Woodward, PI.... " Lombardo, P.A.
J2DO Tamlaml Trail 1>1, Sull' 200
Naples, FL 341 03
COIlns.lf.,. Dwight E. Brock
Clerk ofth. Cke,,11 Coort of CollIer Coonty
In Case No. 04-94/-cA
David P. Ackerlllln, IlIq.
Glory P. Ro.. Eaq.
Acketmon, Link & Sanol'l', P.A.
m Lakevlew Avenue, Sulle 1250
West Palm Beach, FL 33401
Co.nselfor Dwight E. Broclt
Clerk of the Ctn;olt Corul ofCo/lier County
In Cas. Nas. 05.95J-cA and CA-05./ 506
ix
3(r4zfb? G~
13 A l~1
.....
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY. FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
,'s.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
05-1506-CA
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA. AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
~~~~::,~~
Defendants.
I
ORDER GRANTING. IN PART. AND DENYING. IN PART. THE "CLERK'S MOTION
FOR PARTIAL SUMMARY JUDGMENT REGARDING UNDISPUTED ROLES OF
THE CLERK" AND GRANTING "COLLIER COUNTY'S CROSS-MOTION FOR
SUMMARY JUDGMENT ON THE UNDISPUTED ROLES OF
THE CLERK OF COURTS"
THIS MATTER comes before the Court on the "Clerk's Motion for Partial Summary
Judgment Regarding Undisputed Roles of the Clerk" filed June 11,2007 and "Collier County's
Cross-Motion for Summary Judgment on the Undisputed Roles ofthe Clerk of Courts" filed
August 2,2007. Both motions were filed pursuant to Florida Rule of Civil Procedure 1.510.
After hearing each motion and argument of counsel, carefully reviewing the motions and the
attachments, and examining the applicable law, the Court finds as follows:
I. In its complaint, the Clerk, in part. seeks a declaratory judgment as to the general
rights and duties of the Clerk of the Courts.
x
3/to(2bd9 t1-
13A
...
2. There are no disputed material facts' as it relates to a determination of the
general rights and duties of the Clerk of the Courts. Such a determination is an issue of Jaw.
3. Both the Clerk and the County are seeking summary judgment as it relates to the
general rights and duties of the Clerk of the Courts. Specifically, the parties are seeking a
determination as to whether:
(a) the Clerk is the auditor, recorder, and custodian of all County funds;
(b) the Clerk is the accountant for the Board of County Commissioners;
(c) the Clerk has a duty to determine the legality of all County expenditures
before issuing a warrant for payment; and
(d) tbe Clerk'bas a duty to prepare and cenify the accuracy of the County's
financial statements, including the annual management representation letter
submitted by the County to its outside auditors.
4. Both the Clerk and the County agree and, as a matter of law, the Court finds that
(a) The Clerk is the auditor, recorder and custodian of all County funds. Article
VIII (l)(d); Alachua CounlY v. Powers. 351 So. 2d 32, 43 (Fla. 1977).
(b) Tbe Clerk is tbe accountant for the Board of County Commissioners. Fla.
Stat. ~ 125.17.
(c) Tbe Clerk has the duty to determine the legality of all County expenditures
before issuing a warrant for payment. Fla. Stat. ~ 129.09; Alachua County v.
Powers. 351 So. 2d 32, 36 (Fla. 1977).
5. However, the parties dispute the fourth issue of whetber "the Clerk has a duty to
prepare and certify the accuracy of the County's financial statements, including tbe annual
management representation letter submitted by the County to its outside auditors[.]"
6. It is an undisputed fact that the Clerk has historically prepared the County's
financial statements and annually signed a management representation letter that the County
would submit to its outside auditors. It is further undisputed that the Board of County
Commissioners enacted Resolution 06-109 for the 2005 audit, directing that "as ex-offico clerk
xi
9/4~ ~
13 A 'I
and accountant to the Collier County Board of County Commissioners... [the Clerk] provide a
management representation letter in connection witb the annual audit oftbe County's records
performed by KPMG, LLP[.]" However, it is a disputed issue of law as to whetber the Clerk bas
a legal obligation to perfonnthese duties.
7. This Court does not bave the authority to either agree or disagree witb legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court maY!lgree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
8. Tbe Court finds tbat tbe Board of County Commissioners' powers, as granted by
statule, are inclusive and encompass all tasks necessary to effectively perform its dUlies. No
sucb general grant of power has been given to the Clerk. All oftbe Clerk's power must arise
from either the Florida Constitution or general law. The Court finds no grant of authority to the
Clerk that gives bim the duty of preparing and certifying the accuracy oftbe County's financial
statements, including tbe annual management representation letter.
9. The Court acknowledges that multiple parties may bave the autbority to perform
duties; however, absent a grant of power from the Florida Constitution or general law, the Clerk
does not have the duty to prepare and certify the County's financial statements, unless these tasks
are delegated to him by tbe Board of County Commissioners. As stated above, the Court finds
no grant of authority to the Clerk from the Florida Constitution or general law.
10. Accordingly, the Court finds that the Clerk's authority to prepare financial
statements on behalf of the County is not derived from a specific grant of constitutional or
statutory power, but rather is derived from a delegation of authority by the Board of County
xii
3to/ ~ ~
13 A
~~'1f
f'4!
Commissioners. The scope of this delegation is within lhe discretion of the Board of Co un I)"
Commissioners, and may be granted, removed or modified.
II. In arriving at this finding, lhe Court has carefully considered Articles II & VIII ofthe
Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. 99 11.45, 116.07, 125,0], 125.17, 125.71, 125.74, 136.05, 136.08,218.32,218.33,218.39.
In addition, the Court has considered applicable case law presented by the parties, including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
ORDERED AND ADJUDGED that:
I. The Clerk's motion is granted in part and denied in part, as set forth herein.
2. The County's cross motion is granted.
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this 2'1'""
day of
#.."",,,...1-
-
,2007.
Lfl~L p
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the aboye order has been furnished
to David P. Ackennan, Ackennan, Link, & Sartory, P.A., Anorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, PA, Attorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Allomey, Anomey for the Defendant, 3301 East Tamiami Trail, Hannon Turner Bldg. 8th Floor,
xiii
,,-
~o(YIfI (J-.
13 A ;1
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, P.A., Attorney for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(XI), J 700 Monroe Street, Ft. Myers, Florida 33901, this ~y~'" day of
~2007..
0) / llh. ri.. PO.d.;i-Of.-.
J CIa! ASSIstant
Case Numbers: 04-941-CA, Consolidated with OS-953-CA, and 05-1506-CA
Order Granting, in Part, and Denying, in Part, the "Clerk's Motion for Partial Summary Judgment
Regarding Undisputed Roles of the Clerk" and uranting '.Collier County's Cross-Motion for Summary
Judgment on the Undisputed Roles of the Clerk of Courts"
xiv
'.: .~,
3/loft()(J9 ~
all
1'/
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY, FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
vs.
Case No. 04-941.CA
Consolidated with
Case Nos. OS-9S3.CA
OS-IS06.CA
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A MUnicipal Services Taxing Unit pll/'lluant to
Section 12S.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
~~~~,O:7~~
Defendants.
I
ORDER GRANTING "COLLIER COUNTY'S MOTION FOR SUMMARY
JUDGMENT AS TO CASE NUMBER 05-953-CA AND THE ISSUANCE OF A WRIT IN
OUO W ARRANTOi,
THIS MA ITER comes before the Court on "Collier County's Motion for Summary
Judgment as to Case Number 05-953-CA and the Issuance of a Writ in Quo Warranto" filed
June 11,2007. The motion was filed pursuant to Florida Rule of Civil Procedure 1.510. After
hearing the motion and counsels' arguments, carefully reviewing the motion and the attaclunents,
and examining the applicable law, the Court finds as follows:
I. The Board of County Commissioners filed a complaint for Writ of Quo Warranto,
seeking a writ prohibiting the Clerk from exercising powers to which he is not entitled as a
matter of law.
xv
3j/o(2J1II tt
13AQ
2. The County filed a motion for summar)" judgment requesting a determination that:
(a) The Clerk's authority as custodian of County funds arises only upon
delivery of funds to the Clerk by the Board or through the direct collection
offees;
(b) The Clerk's authority as the custodian of the County's funds is limited to
the determination of the lawful basis of an expenditure and does not
extend to the discretionary decisions by the Board to spend County funds;
and
(c) The authority and responsibility to prepare the County's financial
statements is derived from and dependent upon an express delegation of
that authority by the Board.
3. It is undisputed, by the parties tha~ the Clerk is the auditor, recorder and custodian of
all County funds, that the Clerk is the accountant for the Board of County Commissioners, and
that the Clerk has the duty to determine the legality of all County expenditures before issuing a
warrant for payment.
4. There are no disputed material facts as it relates to a determination ofthe powers of
the Clerk. Such a determination is an issue oflaw.
5. This Court does not have the authority 10 either agree or disagree with legislation, but
rather is obligated to apply the laws of the State ofFloricla as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
6. The Court finds that the Board of County Commissioners' powers, as granted by
statute, are inclusive and encompass all tasks necessary 10 effectively perform its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general Jaw. The Court acknowledges that multiple
parties may have the authority to perform duties; however, absent a grant of power from the
xvi
"
3/t42m1 tt
13A
t"~
t.
Florida Constitution or general law, the Clerk does not have the authority to perform certain
duties unless these tasks are delegated by the Board of County Commissioners.
7. Accordingly, as it relates to issue (a), the Court finds as a matter oflaw, that to the
extent that the Clerk is the custodian of all County funds, he necessarily can only be the
custodian of those funds to which he has been given custody, which would presumably
encompass all County funds, Even if the Clerk becomes aware or suspects that there are County
funds of which he has not be given custody, this Court is unaware of any constitutional Ot
statutory authority that would allow the Clerk to initiate an independent investigation or attempt
to recover those funds, absent instruction from the Board of County Commissioners.
8. This does not preclude the Clerk from seeking authority to pursue these funds or
making these funds known to any appropriate authority, but as stated above absent any
constitutional or statutory grant of power the Court cannot acquiesce to the Clerk making
unilateral investigations into these funds.
9. As it relates to issue (b), the Court finds as a matter of law, that prior to signing any
warrant for the payment of any claim, bill or indebtedness from County funds, the Clerk is
required to insure that the payment is lawful. Consequently, any auditing necessary to insure the
legality of the expenditure prior to the payment is proper. However, the Court is unable to find
that the Clerk has been granted any specific constitutionai or statutory authority to perform
further audits beyond the time that the warrant is signed, unless so directed by the Board of
County Commissioners.
] O. As it relates to issue (c), the Court finds as a matter oflaw, that the Clerk's authority
-t&ilr-epare financial stalemems eo llehalf-of the CelllHY is Dot Qat'ivsa frolR a sJlicilic pt gf
constitutional or statutory power, but rather is derived from a delegation of authority by the
xvii
3/t4~~ ~
.13 A :-1
Board of County COlM1issioners. The scope of this delegation is within the discretion of the
Board of County COlM1issioners, and may be granted, removed or modified.
II. In arriving at these findings, the Court has carefully considered Articles II & VIIl of
the Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. ~~ 11.45, 116.07,125.01, 125.17, 125.71, 125.74, 136.05, 136.08,218.32,218.33,218.39.
In addition, the Court has considered applicable case law presented by the parties, including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (FJa. 1977) and Wand F Limited v.
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984).
Accordingly, it is,
ORDERED AND ADJUDGED that County's motion for summary judgment is granted,
as set forth herein.
DONE AND ORDERED in Chambers at l;ort Myers, Lee County, Florida, this 2..'I""r'\ day of
jI..."\l'"lUI. ;
,2007.
/ "..,-<.. ft
~J'
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the above order has been furnished
to David P. Ackerman, Ackerman, Link, & SartOI)', P.A., Attorneys for the Plaintiff, 222
LakeviewAvenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N.,Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, P.A., Attorney for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(XI), 1700 Monroe Street, Ft. Myers, Florida 33901, this ;:).\.-i~ day of
AI ::f:<-A ,2007, .
, c# V1fi ?J OJ1A L, ,te..-
J IClal ASSistant
xviii
3/tD/~ it
.-
.,,-.
-. '...
131
~
"
IN THE CIRCillT COURT OF THE TWENTIETH JUDICIAL CIRCillT, IN AND FOR
COLLIER COUNTY. FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
vs.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
05-1506-CA
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.0I(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
[D)~(g~O~~1f\\
~ AUG 2 7 2007 lUJ
Defendants.
I
ORDER DENYING THE "CLERK'S MOTION FOR PARTIAL SUMMARY
JUDGMENT" AND GRANTING "COLLIER COUNTY'S CROSS MOTION FOR
SUMMARY JUDGMENT AS TO THE CLERK'S DECLARATORY JUDGMENT
COUNT"
THIS MATTER comes before the Court on the "Clerk's Motion for Partial Summary"
filed August 1,2007 and "Collier County's Cross Motion for Surrunary Judgment as to the
Clerk's Declaratory Judgment Count" filed August 2, 2007. Both motions were filed pursuant
10 Florida Rule of Civil Procedure 1.510. After hearing each motion and argument of counsel,
carefully reviewing the motions and the anachments, and examining the applicable law, the
Court fmds as follows:
1. In its complaint, the Clerk, in part, seeks a declaratory judgment as to the rights and
duties of the Clerk of the Courts.
2. There are no disputed materialfacts as it relates to a determination of the rights and
duties of the Clerk of the Courts. Such a detennination is an issue of law.
xix
l.-.A
ol{o('lPO~ ~
13 A t'~1
3, Both the Clerk and the County are seeking summ8lj' judgment as to the declaratory
judgment count of the Clerk's amended complaint. Specifically, the Clerk is seeking a
determination that:
(a) the rights of the Clerk to custody of all County funds in the account
referring to the Ochopee FCD Volunteer Account Number 000093417519
at the Bank of America) from the account's inception up to and including
the present;
(b) declaring that the clerk has unconditional unrestricted right, duty and
obligation to audit and examine at any time all bank accounts containing
County funds, including but not limited to the account; and .
(c) that the Clerk has the right to custody of all County funds and all accounts
whatsoever and wheresoever situated.
4, The County in its cross motion asserts that,
"the Clerk is the custodian of all County funds, however, whether the funds at
issue in the Ochopee accoWlt are "County" funds is yet to be detennined. Further,
although the Clerk may "inspect" and "examine" all public records of the Board,
the Clerk has no independent authority to conduct "audits" ifthat'tenn includes
the unfettered ability to interview and interrogate county employees, consultants,
subcontractors, or agents. He may only "inspect" and "examine" the public
records of the Board to detennine if an expenditure, authorized through the
discretionary spending power of the Board, is a lawful expenditure; and even this
examination must occur before the money is spent." .
5. Both the Clerk and the County, agree and, as a matter of law, the Court finds that the
Clerk is the custodian of all County fWlds. However, the other issues are in dispute.
6. This Court does not have the authority to either agree or disagrec with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
7. The Court finds that the Board of County Commissioners' powers, as granted by
xx
:3(10 f 2Pf't CR-
13 A
.,..",
,,4
statUte, are inclusive and encompass all tasks necessary to effectively perfonn its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Court acknowledges that multiple
parties may have the authority to perfonn duties; however, absent a grant of power from the
Florida Constitution or general law, the Clerk does not have the authority to perfonn certain
duties unless these tasks arc delegated by the Board of County Commissioners.
8. Florida Statute ~ /25.01 (s) gives the Board of County Commissioners the authority
to, "make investigations of county affairs; inquir~ into accounts, records, and transactions or any
county department, office or officer; and, for these purposes, require reports from any county
officer or employee and the production of official records." Florida Statute ~ 125.74(1 )(g) gives
the County Administrator or manager the authority to supervise the care and custody of all
county funds. Florida Statute ~ 125.01(b) gives the Board of County Commissioners the right to
provide for the prosecution and defense ofIegal causes on the behalf of the County. This Cowt
is unable to find any constitutional or statutory authority that would give the Clerk the power to
investigate the nature of funds not currently in its custody or to supervise the care and custody of
funds not currently in its custody or to file a lawsuit regarding those funds.
9. Accordingly, the Court finds that, as a matter of law, this Court can find no
constitutional or statutory authority that would give the Clerk the unbridled right to audit any and
all outside bank accounts "whatsoever and wheresoever situated" into which the Clerk believes
county funds may have been improperly deposited. However, this finding does not preclude the
Clerk from reporting any such suspicions of impropriety to the appropriate authority or person
for further investigation.
xxi
6ftO(2ltfi CL
13 A;
10. In arriving at this finding. the Court has carefully considered Articles II & VllI of the
Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. ~~ 11.45, 116.Q7, 125.01, 125.17, 125.71, 115.74, 136.05, 136.08,218.32,218.33, 218.39.
In addition, lhe Cowt has considered applicable case law presented by the parties. including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited y.
~,444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
ORDERED AND ADJUDGED that:
I. The Clerk's motion is denied.
2. The County's cross motion is granted.
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this.,1li""" . day of
/>,." ~""" -L ,2007.
L-t?~ L-P
Michael T. McHugh
Circuit Judge
CERTIFICATE OF SERVICE
I HEREB Y CERTIFY that a true and correct copy of the above order has been furnished
to David P. Ackerman, Ackerman, Link, & Sartory, PA., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beacb, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, PA, Attorney for tbe Plaintiff; 3200 Tamiami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 341\'2; Theodore 1. Tripp, Jr., Garvin & Tripp, P.A., Attorney for the
Defendant, PostOffice Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(X , 1700 Monroe Street, Ft. Myers, Florida 33901, this ..2L..(ll-> day of
,2007.
Case Numbers: 04-941-CA, Consolidated with 05-95 -CA, and 05- I 506-CA
Order Denying tbe Clerk's Motion for Partial Summary Judgment and Granting the Collier County's
Motion for Summary Judgment as to the Clerk's Declaratory Judgment Count.
xxii
,-
:jto/9BJ? ~
13 A
," f
.,
, .\
1;4
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Collier County
Clerk of the Circuit Court
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by tile Government Finance Officers
Association of tile United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve tile highest
standards in government accounting
and financial reporting.
t-:- /.. · f-t
President
~/~
Executive Director
2/ro!'lfPi uL
13 A "
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its
comprehensive annual financial report for the fiscal year ended September 30, 2007. This was the twenty-
second consecutive year that the government has achieved this prestigious award. In order to be awarded
a Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
FINANCIAL SECTION
gfrof2M?
13 A
TillS P AGE INTENTIONALLY LEFT BLANK
~
,
i
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Ernst & YounQ LLP
100 NorU1east Third Avpnue
Suite 700
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Tel: .;. 19548888000
Fax: +1954 8888160
www.ey.com
Report ofIndependent Certified Public Accountants
Members of the Board of County Conunissioners
Collier County, Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of Collier County, Florida (the County) as of and
for the year ended September 30, 2008, which collectively comprise the County's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the County's management. Our responsibility is to express opinions on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an audit of the
County's internal control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management and evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the County as of September 30, 2008, and the respective changes in financial
position and, where applicable, cash flows thereof, and the respective budgetary comparison for
the general fund and the conununity redevelopment fund for the year then ended in conformity
with accounting principles generally accepted in the United States.
As discussed in Note 19, net assets for the business-type activities and the County Water and
Sewer Fund as of September 30, 2007 have been restated.
0902-1032557
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In accordance with Government Auditing Standards, we have also issued our report dated
February 26, 2009 on our consideration of the County's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management's Discussion and Analysis on pages 3 through I3 and schedule of funding
progress for the retiree health plan on page 78 are not a required part of the basic financial
statements but are supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, and the statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards and state projects is
presented for purposes of additional analysis as required by the U.S. Office of Management and
Budget Circular A-I33, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the
Auditor General, and is not a required part of the basic financial statements. The combining and
individual nonmajor fund financial statements and schedules and the schedule of expenditures of
federal awards and state projects have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated in all material respects
in relation to the basic financial statements taken as a whole. The 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 express no opinion on them.
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February 26, 2009
0902-]032557
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Management's Discussion and Analysis
(Unaudited)
As Clerk of the Circuit Court and chief financial officer of C01lier County, Florida, I present the readers
of the County's financial statements this narrative overview and analysis of the financial activities of
C01lier County for the fiscal year ended September 30, 2008. Readers are encouraged to consider the
information presented in this narrative in conjunction with additional information offered in the letter of
transmittal, found on pages i-xxii of this report.
Financial Highlights
Collier County's assets exceeded its liabilities as of September 30,2008 by $2,318,834,722. Of
this amount, $312,792,303 represents umestricted net assets and may be used to meet future
obligations.
The County's total net assets increased by $141,079,726 over fiscal year 2007, with $82,088,071
of the increase resulting from governmental activities and $58,991,655 resulting from business-
type activities.
As of September 30, 2008 Collier County's governmental fund financial statements showed
combined ending fund balances of $496,012,839, a decrease of $108,483,366 over the previous
fiscal year. Of the total combined ending fund balance, $346,683,059 remains in the various
governmental funds of Collier County as unreserved.
The General Fund reported an unreserved fund balance of $61,952,935 at September 30,2008, a
decrease of$15,665,809 compared to September 30, 2007.
Total net bonded debt and outstanding loans owed by Collier County increased by $24,092,474
during fiscal year 2008, with an increase in net governmental activities debt of$31,697,959 and a
decrease in the net business-type activities debt of $7,605,485. General government commercial
paper debt in the amount of $57,391,000 was issued for the purpose of constructing a Courthouse
Annex, Fleet Facility buildings, the Golden Gate and South Regional Libraries and an Emergency
Operations Center, as well as the purchase of new 800 MHZ equipment and radio locator
systems. Collier County also borrowed $12,000,000 through the State Infrastructure Bank low
interest loan program. In addition, the Forest Lakes Municipal Taxing Services Unit borrowed
$6,215,000 for various drainage improvements. The C01lier County Water and Sewer District
also borrowed $2,401,552 from the Florida Department of Environmental Protection's State
Revolving Fund Program.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction and explanation of C01lier County's
basic financial statements, comprised of government-wide and fund financial statements, as well as notes
to the financial statements. There is additional supplementary information following these financial
statements that may be of interest to the reader.
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Government-Wide Financial Statements
Government-wide financial statements are designed to provide the reader an overview of the financial
position of the County and are similar to private sector financial statements. These statements are
comprised of a Statement of Net Assets and a Statement of Activities and are found on pages 14 to 17 of
this report.
The Statement of Net Assets shows the financial position of Collier County as of September 30, 2008.
The statement shows the County's assets less its liabilities, with the difference being reported as net
assets. Changes in net assets are useful indicators of financial condition.
The Statement of Activities follows the statement of net assets and reports the changes in net assets over
the fiscal period. All changes in net assets are reported as soon as the underlying events that gave rise to
the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are
reported for some items, such as accounts receivable or accrued unused vacation and sick leave, that will
manifest themselves in cash inflows and outflows, respectively, in future fiscal periods.
These statements distinguish Collier County functions that are supported by taxes and intergovernmental
revenues (governmental activities), from business-type activities, which are intended to have their costs
primarily recovered through user fees and charges.
Governmental activities reported in the financial statements are general government, public safety,
physical environment, transportation, economic environment, human services and culture and recreation.
Business-type activities in Collier County include water and sewer, solid waste collections, airport
operations, transit operations and emergency medical services.
Fund Financial Statements
A fund is a group of related accounts used to maintain control over resources that have been segregated to
meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses
fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of
the County can be divided into the following three categories: governmental, proprietary and fiduciary.
Governmental funds - Governmental funds, presented on pages 18 to 25, account for substantially the
same functions as governmental activities reported under the Government-Wide Statement of Net Assets
and Statement of Activities. The difference is that the governmental fund financial statements focus on
inflows and outflows of expendable resources, as well as balances of expendable resources available at
the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of
financial condition, but are nonetheless useful in evaluating Collier County's near term financing
requirements and available resources.
Comparison between the two sets of financial statements allows the reader to better assess the future
impact of the government's near term financial decisions. Both the governmental fund balance sheet and
the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the
respective government-wide financial statements to facilitate comparison.
Governmental funds presented individually in Collier County's statements include four major funds, the
General Fund, Road Impact Districts Fund, Road Construction Fund and the Community Redevelopment
Fund. While there are many smaller governmental funds under Collier County management, they are
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aggregated in a total column named "other governmental funds".
governmental funds have been presented elsewhere in this report.
Combining statements for these other
Proprietary funds - Co\lier County maintains two different types of proprietary funds, enterprise and
internal service, which are reflected on pages 26 to 30 of this report.
Enterprise funds report, with more detail, the same functions presented as business-type activities in the
government-wide financial statements for water and sewer, Goodland water, solid waste disposal,
emergency medical services, transit and the airport authority. The Collier County Water and Sewer
District Fund is presented individually as a major fund.
Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The
County uses internal service funds to account for health insurance, worker's compensation insurance,
property and casualty insurance and fleet operations. The internal service funds are presented in total in
the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the
report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
of Co\lier County government. These funds are not presented in the government-wide financial
statements as they do not represent resources available to support Collier County functions. The fiduciary
funds are presented in the on page 31 ofthis report. All of the County's fiduciary funds are agency funds.
The accounting used for agency funds is based on the concept that assets equal liabilities when the
government is acting in a fiduciary capacity.
Notes to the Financial Statements
The notes provide additional information essential to a full understanding of the data provided in both the
government-wide and fund financial statements. The notes appear on pages 34 to 76 of this report.
Other Information
The combining and individual nonmajor fund financial statements and schedules mentioned above present
more detailed views of nonmajor governmental and enterprise funds and begin on page 83. This section
contains combining balance sheets and statements of revenues, expenditures and changes in fund balance
for governmental funds, including budgetary comparisons, and combining balance sheets and statements
of revenues, expenses and changes in fund net assets for enterprise funds. Also included are combining
financial statements for internal service and agency funds. Additional information about the County,
which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this
report.
Government-Wide Financial Analysis
Changes in net assets over time are a useful indicator in assessing financial condition. Collier County's
increase in net assets for this fiscal year amounts to $141,079,726, resulting in an ending net assets
balance as of September 30, 2008 of $2,318,834,722. Collier County's investment in capital assets such
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as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt
related to the construction or purchase ofthe asset, amounts to 72% of net assets. Capital assets are used
to provide services to the citizens and consequently do not represent spendable resources.
Collier County's net assets also include restricted net assets of$325,176,138 and unrestricted net assets of
$312,792,303. Restricted net assets are resources subject to external restriction on how they may be used
while unrestricted net assets may be used to meet the County's ongoing obligations.
Following are Collier County's net assets and changes in net assets for the fiscal years ended September
30, 2007 and 2008, shown in condensed form:
Collier County's Schedule of Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Change
2008 2007 2008 2007 2008 2007 2008-2007
as restated as restated
Current and other assets $653.2 $767.0 $177.5 $187.8 $830.7 $954.8 (13.0%)
Capital assets, net 1,527.0 1,312.8 915.5 865.7 2,442.5 2,178.5 12.1%
Total assets 2,180.2 2,079.8 1,093.0 1,053.5 3,273.2 3,133.3 4.5%
Long-term liabilities 537.3 507.9 255.7 264.3 793.0 772.2 2.7%
Current liabilities 127.1 137.9 34.5 45.4 161.6 183.3 (11.8%)
Total liabilities 664.4 645.8 290.2 309.7 954.6 955.5 (0.1%)
Net assets:
Invested in capital assets)
net of related debt 1,022.0 871.4 658.9 630.0 1,680.9 1,501.4 12.0%
Restricted 295.0 244.7 30.2 30.8 325.1 275.5 18.0%
Unrestricted 199.0 317.9 113.7 83.0 312.8 400.9 (22.0%)
Total net assets $1,516.0 $1,434.0 $802.8 $743.8 $2,318.8 $2,177.8 6.5%
Note: Certain fiscal year 2007 balances are restated in a manner consistent with the restatement discussed in Note 19
on page 75.
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Governmental Activities
The current year increase for net assets of governmental activities amounted to $82,088,071, an increase
of 6% over the previous year's net assets. The previous fiscal years' increase was 20% and this trend is
the result of an overall decline in governmental activities revenues. The ad valorem tax millage for fiscal
year 2008 was reduced to 9% below the rolled back millage rate, in accordance with property tax reform
measures adopted by the Florida Legislature. This decrease was offset to a degree by a 7% increase in
taxable assessed value, but the overall result was a decrease in ad valorem tax revenues of $17,809,228,
or 5%. Governmental impact fees are collected to offset the cost of growth necessitated capital
improvements and are reported as capital contributions in the governmental activities. During fiscal year
2008 the County collected impact fees for transportation, parks, libraries, emergency medical services,
correctional facilities, law enforcement, governmental facilities and fire totaling $36,679,020. This
represents a decrease in total impact fee collections over fiscal year 2007 of 57%, and is emblematic of
the widespread slow down in the construction and real estate industries. Sales tax revenues decreased by
8% versus fiscal year 2007, and this decrease reflects a general decline in the state's economy. In
addition, gas tax revenues decreased by 4% versus fiscal year 2007 and this decrease is indicative of both
a slowdown in the state's economy as well as an indicator of the effect of higher fuel costs on demand.
Total government activities expenses increased 4% over fiscal 2007. Transportation expenses increased
by 22% over fiscal year 2007 due to increases in depreciation expense related to projects placed in service
during fiscal 2008 and increases in operational costs. The County's economic environment expenses
increased by 15% over the previous fiscal year primarily due to increased operational costs. Physical
environment expenses increased 11 % mainly due to the depreciation on infrastructure projects put into
service during fiscal year 2008. Governmental activities interest expense was $21,445,546 for fiscal year
2008, net of amortizations.
Business-type Activities
Increases in net assets related to business-type activities amounted to $58,991,655 in the aggregate,
representing an 8% increase over the previous year's net assets. This increase is an increase of 2% over
the 2007 rate of increase in net assets. The majority of the increase, or $36,159,958, can be attributed to
the Collier County Water and Sewer District. Water and wastewater operating revenues increased
$8, 110,279, or 9%, over the previous fiscal year, while costs of operations, including depreciation, were
down 2% overall. Operating revenues increased primarily due to a rate increase of 14.5% and imposition
of a water surcharge. These increases were partially offset by decreased usage caused by water
restrictions and conservation measures. Personal services expenses and operating expenses decreased by
2% and 12%, respectively, when compared to fiscal year 2007. Depreciation expense increased by 14%
over fiscal year 2007, and this increase is due to the recent capital expansion of the County Water and
Sewer District. Over $43M in capital facilities were added and improved during fiscal year 2007 and for
fiscal year 2008 a further $137M was added. Fiscal year 2008 water and wastewater impact fee
collections dropped to $9,753,332, or a decrease of 53% versus fiscal 2007. This was the primary reason
for a 30% decrease in capital grants and contributions, which includes impact fees. The County charges
water and wastewater impact fees on new construction in order to finance growth necessitated capital
expansion. The Collier Area Transit Fund received the contribution of a Transit Facility from
governmental activities with a value of $10,096,889. In addition, solid waste charges for services
increased by 4.4% over fiscal year 2007 while operating costs, including depreciation, decreased by 6%
over the same period. The increase in solid waste charges for services can be attributed to a 12% rate
increase, offset to a degree by less tonnage being accepted into the landfills for FY -2008. These factors
contributed to an increase in net assets year on year of $6, 1 06,233.
Fund Financial Statement Analysis
As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related
legal requirements.
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Governmental Funds
Governmental funds provide information on near term inflows, outflows and balances of spendable
resources. Unreserved fund balance is a useful measure of net resources available to be spent at the end
of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service
Funds and Capital Project Funds.
As of September 30, 2008 Collier County governmental funds reported combined fund balances of
$496,012,839, a decrease of$108,483,366 over prior year combined fund balances. Governmental funds
reserved $128,993,148 of fund balance for encumbrances in the next fiscal year, $174,805 for inventory,
deposits and prepaid items, $4,099,533 for debt service and $16,062,294 for advances made to other
funds. The remainder offund balance is considered unreserved and available for discretionary spending.
The following were noteworthy activities and changes relating to the major governmental funds for fiscal
year 2008:
The General Fund is the main operating fund of Collier County. At September 30, 2008, total fund
balance in the general fund was $68,555,420, of which $61,952,935 was unreserved. As a percentage of
total general fund expenditures and net transfers, the unreserved portion is 17%. The total fund balance
decreased by $12,769,212 or 16%, compared to the September 30,2007 total fund balance. The decrease
is primarily due to decreased sales tax collections and decreased ad valorem tax collections.
The Road Impact Districts Fund is used to account for the receipt and expenditure of road impact fees.
Road impact fees of $29,141,348 were collected during fiscal year 2008, to be used for growth related
transportation capital improvements. This represents a decrease in total road impact fee collections
versus fiscal year 2007 of 58%, which is consistent with the slowdown in both the real estate and
construction industries. Capital expenditures of road impact fees decreased by 20% for fiscal year 2008
when compared to fiscal year 2007. The major project completed and capitalized during fiscal year
2008 was the growth necessitated portion of the Golden Gate Parkway Overpass in the amount of
$2,522,001. Major ongoing projects include Immokalee Road from 1-75 to Collier Boulevard,
Rattlesnake Hammock Road from Polly Avenue to Collier Boulevard and Santa Barbara Boulevard from
Davis Boulevard to Pine Ridge Road in the combined amount of $62,954,320 through September 30,
2008. These activities resulted in a decrease in fund balance of $35, 168,946 for the Road Impact Districts
Fund.
The Road Construction Fund accounts for the accumulation of gas taxes, bond proceeds and General
Fund transfers for the construction of roads. Capital expenditures in the Road Construction Fund
decreased by 20%, compared to fiscal year 2007. Major projects completed and capitalized during fiscal
year 2008 included portions of the Immokalee 1-75 Loop, Goodlette Frank Road from Pine Ridge Road to
Golden Gate Parkway, turning lane and intersection improvements and advancements in computerized
signalization systems in the combined total of $24,089,937. Major ongoing projects include Immokalee
Road from Collier Boulevard to Wilson Boulevard, Vanderbilt Beach Road from Airport Pulling Road to
1-75, Immokalee Road from US 41 to 1-75, Rattlesnake Hammock Road from Polly Avenue to Collier
Boulevard, Santa Barbara Boulevard from Golden Gate Parkway to Radio Road right of way purchase
and Collier Boulevard from Golden Gate Parkway to Immokalee Road. The total amount of construction
in progress for these projects was $134,059,507 as of September 30, 2008. The combination of these
activities resulted in a decrease in fund balance of $24,069,650 for the Road Construction Fund.
The Community Redevelopment Fund accounts for the receipt and expenditure of tax increment revenues
for the Bayshore/Gateway Triangle and Immokalee Redevelopment Authorities. During fiscal year 2008
the Bayshore/Gateway Triangle purchased $863,642 of land within the Triangle.
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Proprietary funds
Proprietary fund statements provide the same information as the business-type actIvItIes in the
government-wide financial statements, but in greater detail, and on a fund basis for enterprise funds.
At September 30, 2008, total net assets amounted to $802,790,838 for enterprise funds, as compared to
$745,274,760 as of September 30, 2007. Net assets change as a result of operations, non-operating
revenues and expenses, capital contributions and grants and donations. The Collier County Water and
Sewer District's activity represents the majority of the increase in net assets.
For the year ended September 30, 2008 the Water and Sewer District reported capital grants and
contributions of $21,314,876, which includes system development fees of $9,753,332, $10,117,044 in
developer infrastructure contributions and capital grants, contributions and assessments of$I,444,500.
Net Operatin\l Income/(Loss)
Total
2008
$ 22,828,461
(17,801,466)
$ 5,026,995
2007
$ 10,181,124
(19,133,606)
$ (8,952,482)
County Water and Sewer
N on-major enterprise funds
The Collier County Water and Sewer Fund net operating income increased by $12,647,337. The increase
in net operating income was the result of an increase in operating revenues of $8,110,279, or 9%, over the
previous fiscal year, while costs of operations, including depreciation, were down 2% overall. County
Water and Sewer payments in lieu of taxes paid to the General Fund of$3,349,000 were reclassified from
operating expense to operating transfers for financial statement purposes. Personal services expenses
and operating expenses decreased by 2% and 12%, respectively, when compared to fiscal year 2007.
Capital Assets
Collier County's financial statements present capital assets in two distinct groups, those that are
depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that
are depreciated and land and construction in progress are examples of assets not depreciated. Collier
County's investment in capital assets for the governmental and business-type activities amounted to
$2,442,772,916, net of accumulated depreciation. This investment in capital assets, both purchased and
donated, includes land, buildings and improvements, machinery and equipment, parks, roads, beach
renourishment, bridges and drainage structures. Investment in capital assets for the current fiscal year, net
of depreciation, increased by $262,811,967 over the previous year. There was an increase in the
governmental activities of $214,464,557, or 16%. The proprietary fund share of the increase was
$48,347,410, and amounted to a 5% increase. The major factors behind these increases are as follows:
Water and sewer, solid waste disposal and airport authority construction in progress increases
amounted to $55,343,920. Of this amount, $45,354,223 was related to water and wastewater
facilities constructed by the County Water and Sewer District.
Capitalization as construction in progress of $238,891 ,987 of governmental activity related costs,
with $115,184,788 of this increase related to transportation projects, $73,920,055 related to
government facilities, including an emergency operations centers, libraries, a fleet facility and a
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courthouse annex and $49,787,]44 in parks and recreation, stormwater, beach renourishment and
other projects.
Purchases of land and non-depreciable assets were $36,734,428 for fiscal year 2008.
Additional information regarding Collier County's capital assets can be found in Note 5 beginning on
page 52 of this report.
Debt Administration
At September 30, 2008, Collier County had net bonded revenue debt of $567,752,549 outstanding, an
increase of $24,092,476 from the previous year. The following table illustrates the balances of all
outstanding long-term debt for the fiscal years ended September 30, 2008 and 2007:
Outstanding De bt
2008
2007
Limited General Obligation Revenue Bonds $ 29,099,538 $ 27,342,246
Revenue Bonds 567,752,549 588,518,153
Florida Local Government Loans 85,560,000 51,430,000
State Revolving Fund Loans 1] 5,830,489 ] 06,793,982
Line of Credit and Miscellaneous Notes 5,973,707 6,039,428
Total $ 804,2] 6,283 $ 780,]23,809
During fiscal year 2008 Collier County borrowed a total of $57,391,000 from the Florida Local
Government's pooled commercial paper program for purposes of constructing a Courthouse Annex, Fleet
Facility buildings, the Golden Gate and South Regional Libraries and an Emergency Operations Center,
as well as the purchase of new 800 MHZ equipment and radio locator systems.
During fiscal year 2008 Collier County drew $12,000,000 down on a low interest State Infrastructure
Bank loan. The proceeds of the loan were used in the construction of the 1-75 and Immokalee Road
interchange.
On October 10, 2007, Collier County issued the $6,215,000 Forest Lakes Roadway and Drainage
Municipal Service Taxing Unit Limited General Obligation Bonds, Series 2007. The County issued these
bonds for the purpose of providing funds to finance the costs of certain roadway lighting, roadway related
drainage and roadway restoration within the Forest Lakes Municipal Service Taxing Unit, and to pay
certain costs incurred in connection with the issuance of the Series 2007 bonds.
During fiscal year 2008 Collier County prepaid a total of $22,621,000 in variable rate commercial paper
debt. Prepayments totaling $12,]00,000 were made on the County's Caribbean Gardens loan, issued
during fiscal year 2006 for the purchase of land and buildings commonly referred to as Caribbean
Gardens. This loan is secured by up to a .15 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
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Gardens. This loan is secured by up to a .15 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt
limit. Further information regarding Collier County's long-term debt can be found in Note 6 beginning
on page 53 of this report.
Budgetary Highlights
Budgetary comparison statements are provided in the basic financial statements for the General Fund and
the Community Redevelopment Fund. Budget columns are presented for both the original budget as well
as the final budget. These columns are followed by a column for actual revenues and expenditures and a
column for differences between final budget and actual revenues and expenditures.
Significant period expenditure budget increases and decreases, over $200,000 within a department, were
made and are outlined in the following table:
Deoartment
Clerk of the Circuit Court
Clerk of the Circuit Court
Clerk of the Circuit Court
County Attorney
Other General Administration
Emergency Management
Transfers Out
Immokalee Redevelopment
Transfers Out
Budget
Increase/(Decr
ease)
Reason for Increase/(Decrease)
$ (601,500)
(200,000)
3,552,500
217,358
1,119,611
438,927
2,863,008
267,607
200,000
Decrease in operating expenditures to special item
Decrease in capital expenditures to special item
Increase to support court ordered bond expense
Outside counsel and professional services
External audit and tax deed application processing
Tropical Storm Fay preparation
Additional General Fund transfers to other funds
Additional contractural services
Additional Redevelopment transfers to other funds
Significant variances between actual results and final budget amounts in the General Fund occurred
during fiscal year 2008. Tax revenues were under budget by $9,875,376 primarily due to the practice of
not budgeting for the discount allowed for property taxes. The discount ranges from a maximum 4% to
I %, depending on the date of payment. Interest income was under budget as interest revenues budgeted
within the Clerk of the Circuit Court's General Fund, were also budgeted in the Board of County
Commissioners' General Fund. Intergovernmental revenues were under budget primarily due to both
sales tax and state revenue sharing revenues being significantly under budget. General Fund general
government expenditures were under budget primarily due to a $4,000,000 watershed study that will be
ongoing from 2008-2010. The project was in the pre-planning stages during fiscal year 2008 and only a
small amount was spent. Also contributing to the budget to actual surplus in the general government
function was the Clerk of the Circuit Court's General Fund functions and the Board's Other General and
Administrative function. The Clerk of the Circuit Court's personal services were under budget by
$963,499 primarily due to leaving positions open due to attrition unfilled and delaying pay increases until
mid year. The Board's Other General and Administrative function was under budget due to expenditures
for property insurance and remittances to other governments and municipalities being significantly less
than anticipated. General Fund culture and recreation expenditures were under budget primarily due to
surpluses in the Beach and Water Parks operation, as well as Library Administration.
12
i~
J;II#/~
13 A
~
~f
.
Economic Factors and Year 2009 Budgets and Rates
The following factors were taken into account in preparing the fiscal year 2009 budget:
The population of Collier County decreased by .3% from fiscal year 2007 to fiscal year 2008.
During fiscal year 2008, the Florida Legislature continued to impose restrictions on the ability of
municipalities and counties to increase ad valorem millage rates.
The total number of building permits issued during FY-2008 was 20,580, a 30% decrease from
FY-2007.
The annual unemployment rate in Collier County, without seasonal adjustment, increased by
2.5% from FY -2007 to FY -2008.
Expected decreases in sales tax revenues and gas tax revenues.
The main focus of the Capital Improvement Program in FY -2009 is road construction, various
utilities projects and the finalization of general government facilities construction projects.
During fiscal year 2008, the General Fund unreserved fund balance decreased by $15,665,809 to
$61,952,935. As of February 9, 2009, $57,344,608 of the fiscal year 2008 unreserved fund balance has
been appropriated as carryforward for fiscal year 2009.
Other Discussion
The Clerk of Courts is currently involved in litigation with the County. The Court, in the final judgment
in Case #04-94ICA, consolidated with Case numbers 05-953CA and 05-1506CA, issued September 12,
2007, incorporates by reference three orders dated August 24, 2007. In Paragraph 8 of the Order
Granting. In Part, and Denving, In Part, the "Clerk's Motion for Partial Summarv Judgment Regarding
Undisputed Roles of the Clerk" and Granting "Collier County's Cross-Motion for Summarv Judgment on
the Undisputed Roles of the Clerk of Courts", the Court makes the determination that the Clerk has no
duty of preparing and certifying the accuracy of the County's financial statements, including the annual
management representation letter. Please see the court order attached as pages vii to xxii of the
transmittal letter. The Case is in the appellate process, however, pursuant to paragraph 10 of that same
order, the Board is and has limited the Clerk's scope and ability to determine facts through the audit and
examination process, that would allow the Clerk to represent that the financial statements, to our
knowledge, are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and
include all transactions of the County.
Contact Information
This financial report is intended to give the user a general overview of Collier County Government's
finances. Any questions resulting from review of this information may be addressed to:
Collier County Clerk of the Circuit Court
Department of Finance and Accounting
Court Plaza III, Suite 202
2671 Airport Road South
Naples, Florida 34112
Our office may also be contacted via the internet at www.collierclerk.com.
13
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
3j1o!2JJOcr
13 A
~
f
Primary Government
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets:
Cash, cash equivalents and investments $ 268,367,830 $ 102,686,884 $ 371,054,714 $ 501,700
Receivables:
Trade, net 2,978,333 11 ,253,083 14,231,416
Contributions 15,581,910 15,581,910
Special assessments 85,689 712,118 797,807
Interest 4,428,706 963,024 5,391,730
Unbilled revenue 5,405,140 5,405,140
Notes 88,195 88,195
Due from other governments 11,102,299 1,039,049 12,141,348
Internal balances (4,694,619) 4,694,619
Deposits 516,446 13,294 529,740
Inventory 862,130 3,618,318 4,480,448
Prepaid costs 11,693 50,192 61,885
Restricted assets:
Cash, cash equivalents and investments 39,684,980 8,003.143 47,688,123
Total current assets 339,013,592 138,438,864 477 ,452,456 501,700
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 295,011,379 32,850,815 327,862,194
Receivables:
Special assessments 341,798 1,060,128 1,401,926
Notes 13,703,097 3,457,704 17,160,801
Deferred charges 5,135,357 1,669,166 6,804,523
Capital assets:
Land and nondepreciable capital assets 733,829,124 161,829,355 895,658,479
Depreciable capital assets, net 793,435,998 753,678,439 1,547,114,437
Total noncurrent assets 1,841,456,753 954,545,607 2,796,002,360
Total assets 2,180,470,345 1,092,984,471 3,273,454.816 501,700
The notes to the financial statements are an integral part of this statement.
14
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
1 Jot
rt
...
Primary Government
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities:
Accounts payable $ 27,837,366 $ 7,725,378 $ 35,562,744 $
Wages payable 5,894,344 1,688,212 7,582,556
Retainage payable 810,740 805,585 1,616.325
Due to other governments 3,532,526 86,140 3,618,666
Due to individuals 329,410 493,589 822,999
Self-insurance claims payable 5,552,207 5,552,207
Compensated absences 10,040,625 1,746,234 11,786,859
Capital lease obligations 153,670 126,145 279,815
Unearned revenue 2,673,071 2,673,071
Interest payable 8,262,924 2,730,339 10,993,263
Bonds and loans payable 22,332,377 11,087,179 33,419,556
Liabilities payable from restricted assets:
Accounts payable 21,500,286 938,511 22,438,797
Retainage payable 17,363,360 6,152,110 23,515,470
Refundable deposits 821,334 460,995 1,282,329
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 127,104,240 34,491,944 161,596,184
Noncurrent liabilities:
Arbitrage rebate 677,752 1,505,580 2,183,332
Self-insurance claims payable 4,733,793 4,733,793
Compensated absences 11,134,457 436,559 11,571,016
Capital lease obligations 598,870 491,740 1,090,610
Landfill post-closure liability 1,815,160 1,815,160
Net pension obligation 905,979 905,979
Bonds and loans payable, net 519,271,370 251 ,452,650 770,724,020
Total noncurrent liabilities 537,322,221 255,701 ,689 793,023,910
Total liabilities 664,426,461 290,193,633 954,620,094
NET ASSETS
Invested in capital assets, net of related debt 1,022,001,435 658,864,846 1,680,866,281
Restricted for:
Growth related capital expansion 136,996,095 15,637,780 152,633,875
Transportation capital projects 97,820,231 97,820,231
Conservation Collier 30,952,267 30,952,267
Tourist development 25,143,253 25,143,253
Debt service 4,099,533 14,226,979 18,326,512
Renewal and replacement 300,000 300,000
Unrestricted 199,031,070 113,761,233 312,792,303 501,700
Total net assets $ 1 ,516,043,884 $ 802,790,838 $ 2,318,834,722 $ 501,700
15
4of1lXf1
(J)~
COLLIER COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13 A
","-
FUNCTIONSIPROGRAMS Expenses
Primary Government:
Governmental Activities:
General government $ 112,719,982 $
Public safety 183,288,162
Physical environment 22,147,876
Transportation 65,979,880
Economic environment 13,475,268
Human services 13,511,552
Culture and recreation 43,435,217
Interest on long-term debt 21,445,546
Total governmental activities 476,003,483
Business-type Activities:
Watcr and Sewer 85,502,736
Solid Waste 30,024,054
Airport Authority 5,081,822
Mass Transit 9,418,858
Emergency Medical Services 30,160,498
Total business-type activities 160,187,968
Total primary government $ 636,191,451 $
Component Units:
Collier County Industrial Development Authority $ 14,195 $
Collier County Health Facilities Authority
Collier County Housing Finance Authority 122,500
Collier County Educational Facilities Authority 16.788
Total component units $ 153,483 $
Fees, Fines and
Charges for
Services
Pro2ram
Operating
Grants and
Contributions
36,467,916 $ 935,536
12,544,766 3,501,247
6,539,585 1,018,598
3,936,325 3,552,541
468,476 9,190,584
532,392 1,792,843
8,429,369 210,686
68,918,829 20,202,035
100,030,477 121,479
36,494,828 74,234
3,546,546
1,073,864 4,025,597
16,167,399 171,984
157,313,114 4,393,294
226.231,943 $ 24,595,329
8,383
32,500
93,500
18.260
152,643
General revenues:
Property taxes
Gas taxes
Sales taxes
Tourist taxes
Other taxes
State revenue sharing
Interest income
Change in fair value of investments
Miscellaneous
Special item-bond expense (See Note 18)
Transfers, net
Total general revenues, special items and transfers
Change in net assets
Net assets - beginning, as previously reported
Prior period adjustment
Net assets - beginning, as restated
Net assets - ending
The notes to the financial statements are an integral part of this statement.
16
J/te(ttlJ9
13 A
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~".
.:....~ I
Revenues
Capital
Grants and
Contributions
Net (Expense) Revenue and Chan2es in Net Assets
Primary Government
Governmental Business-type
Activities Activities
Total
Component
Units
$ 8,649,324 $ (66,667,206) $ (66,667,206)
2,525,684 (164,716,465) (164,716,465)
4,364,371 (10,225,322) ( 10,225,322)
31,837,924 (26,653,090) (26,653,090)
419,388 (3,396,820) (3,396,820)
(11,186,317) (11,186,317)
4,505,825 (30,289,337) (30,289,337)
(21,445,546) (21,445,546)
52,302,516 (334,580,103) (334,580,103)
21,314,876 $ 35,964,096 35,964,096
6,545,008 6,545,008
1,559,991 24,715 24,715
439,722 (3,879,675) (3,879,675)
18,030 (13,803,085) (13,803,085)
23,332,619 24,851,059 24,851,059
$ 75,635,135 (334,580,103) 24,851,059 (309,729,044)
$ (5,812)
32,500
(29,000)
1,472
(840)
327,244,938 327,244,938
18,859,845 18,859,845
30,003,927 30,003,927
14,795,623 14,795,623
4.051,145 4,051,145
8,975,798 8,975,798
34.532,805 5,928,045 40,460,850 3,641
(802,753) (212,241 ) (1,014,994)
10,642,523 76,708 10,719,231
(3,287,593) (3,287,593)
(28,348,084) 28,348,084
416,668,174 34,140,596 450,808,770 3,641
82,088,071 58,991,655 141,079,726 2,801
1,433,955,813 745,274,760 2,179,230,573 498,899
(1,475,577) (1,475,577)
1,433,955,813 743,799,183 2,177,754,996 498,899
$ 1,516.043,884 $ 802,790,838 $ 2,318,834,722 $ 501,700
17
'" of/of '2Ufl (j/
COLLIER COUNTY, FLORIDA 1 3 A ...,
BALANCE SHEET i'
GOVERNMENTAL FUNDS '!
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Road Other Total
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
ASSETS
Cash, cash equivalents and investments $ 74,367,282 $ 85,002)97 $ 109,208,040 $ 5,577,754 $ 282,736,602 $ 556,892,075
Receivables
Interest 3,932,342 27,954 468,410 4,428,706
Trade, net 553,196 16,143 417,190 3,215 1)44,633 2,334,377
Notes 1,327,870 7,130,682 24,445 5,308,295 13,791,292
Special assessments 427,487 427,487
Due from other funds 1,833,921 8,425 1,223,220 3,065,566
Due from other governments 2,493,104 402,680 3,124,983 4,998,425 11,019,192
Deposits 3,500 3,500
Inventory 159)94 282,609 442,003
Advances to other funds 5,127,194 10,935,100 16,062,294
Prepaid costs 11,217 476 11,693
Total assets $ 89,809,020 $ 92,551,902 $ 112,758,638 $ 5,633,368 $ 307,725,257 $ 608,478,185
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 13,540,547 $ 2,912)33 $ 8,317,482 $ 86,992 $ 23,649,123 $ 48,506,477
Wages payable 3,713,249 94,675 27,151 1,944,132 5,779,207
Due to other funds 1,367,995 265 1,284 1,888,388 3,257,932
Due to other governments 1)63,518 2.168,944 3,532,462
Due to individuals 303,162 26,248 329,410
Deferred revenue 371,092 7,130,682 196,124 24,445 8,279,787 16,002,130
Refundable deposits 594,037 200,000 27,297 821,334
Retainage payable 7,267,060 6,128,842 4,778,198 18,174,100
Advances from other funds 16,062,294 ]6,062,294
Total liabilities 21,253,600 17)10)40 14,938,407 138,588 58,824,411 112,465,346
Fund balances:
Reserved for:
Encumbrances 1)01,180 12,410,814 50,696,872 129,331 64,454,951 128,993,148
Deposits 3,500 3,500
Inventory 159)94 218 159,612
Advances to other funds 5,127,194 10,935,100 16,062,294
Prepaid costs 11,217 476 ] 1,693
Debt service 4,099,533 4,099,533
Unreserved, reported in'
General fund 61,952,935 61,952,935
Special revenue funds 5,365,449 116,677,886 122.043,335
Debt service funds 1,950,878 1,950,878
Capital project funds 62,830,748 47,123,359 50,781,804 160,735,911
Total fund balances 68,555,420 75,241,562 97,820,231 5,494,780 248,900,846 496,012,839
Total liabilities and fund balances $ 89,809,020 $ 92,551,902 $ 112,758,638 $ 5,633)68 $ 307,725,257 $ 608,478,185
The notes to the financial statements are an integral part of this statement.
18
-.,;
COLLIER COUNTY, FLORIDA
RECONCILIA nON OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Differences in amounts reported for governmental activities in the statement of net assets on
pages 14-15:
Fund balances - total governmental funds
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the funds. Those assets consist of:
Land and other non-depreciable assets
Construction in progress
Depreciable assets, net 01'$391,001,598 in accumulated
depreciation.
Certain accounts receivable are not financial resources and therefore are not reported in the
governmental funds.
Certain long-term assets are not financial resources and therefore are not reported in the
governmental funds.
Certain revenues will be collected after year-end, but are not available to pay for the current
period's expenditures, and therefore are reported as deferred revenue in the funds.
Certain liabilities applicable to the County's governmental activities are not due and payable in
the current period and accordingly are not reported as fund liabilities. Interest on long-term
debt is not accrued in the governmental funds, but is recognized as an expenditure when due.
All liabilities are reported in the statement of net assets. Balances at September 30, 2008 are:
Accrued interest on bonds
Bonds and notes payable
Capital lease obligations
Compensated absences
Arbitrage rebate liability
Unamortized deferred loss
Unamortized premium
Unamortized discount
Internal service funds are used by the County to charge self. insurance and fleet management
services to individual funds. The assets and liabilities of the internal service funds are included
in governmental activities in the statement of net assets. Internal service fund net assets are:
Total net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
19
$ 311,343,475
422,485,649
779,047,474
$ (8,262,924)
(525,436,000)
(752,540)
(20,971,667)
(677,752)
376,879
(17,107,361)
562,735
O/lo/ZM q cI-
13 A',4t"
$ 496,012,839
1,512,876,598
15,581,910
5,135,357
13,329,059
(572,268,630)
45,376,751
$ 1,516,043,884
COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
, .
3/10j2t1fl
13 A
ct
Road Other Total
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
Revenues:
Taxes $248,150,424 $ $12,975,896 $ 3,182,300 $ 93,347,805 $ 357,656,425
Licenses and pennits 140,761 17,231,731 ] 7,372,492
Intergovernmental 42,093,551 9,186,185 26,172,171 "7,451,907
Charges for services 17,558,882 5,052 3,229,429 19,905,622 40,698,985
Fines and forfeitures 636,664 3,149,342 3,786,006
Interest income 30,090,172 6,884 23,490 242,379 3,968,330 34,331,255
Change in fair value
of investments (42,064) (127,916) (165,117) (8,356) (407,275) (750,728)
Impact fees 29,141,348 7,537,672 36,679,020
Special assessments 2,941,370 2,941,370
Miscellaneous 2,308,827 239,673 4,918,580 5,742 3,194,477 10,667,299
Total revenues 340,937,217 29,265,041 30,168,463 3,422,065 177,041,245 580,834,031
Expenditures:
Current:
General government 63,460,949 33,437,058 96,898,007
Public safety 152,093,485 23,649,002 175,742,487
Physical environment 896,971 8,417,293 9,314,264
Transportation 1,219,118 6,355,505 40,678,452 48,253,075
Economic environment 1,849,794 1,096,445 10,532,522 13.478,761
Human services 10,792,336 2,063,033 12,855,369
Culture and recreation 16,477,418 19,978,570 36,455,988
Debt service:
Principal 43,080,410 43,080,410
Interest 21,816,163 21,816,163
Fiscal charges 164,870 164,870
Capital outlay 4,356,857 63,214,869 69,083,387 866,331 148,287,476 285,808,920
Total expenditures 249,927,810 64.433,987 75,438,892 1,962,776 352,104,849 743,868,314
Excess (deficiency) of revenues
over (under) expenditures 91,009,407 (35,168,946) (45,270,429) 1,459,289 (175,063,604) (163,034,283)
Other financing sources (uses):
Bonds issued 6,215,000 6,215,000
Premium on bonds issued 30,815 30,815
Loans issued 12,000,000 57,391,000 69,391,000
Sale of capital assets 223,103 21,518 244,621
Insurance proceeds 7,074 3,517 197,677 208,268
Transfers in 8,326,422 26,160,062 110,337,687 144,824,171
Transfers out (109,047,625) (16,962,800) (471,979) (36,592,961) (163,075,365)
Total other financing sources (uses) (100,491,026) 21 ,200,779 (471,979) 137,600,736 57,838,510
Special item - bond expenditure (See Note 18) (3,287,593) (3,287,593)
Net change in fund balances (12,769,212) (35,168,946) (24,069,650) 987,310 (37,462,868) (108,483,366)
Fund balances at beginning of year 81 ,324,632 110.410,508 121,889,881 4,507,470 286,363,714 604.496,205
Fund balances at end of year $ 68,555,420 $75.241,562 $97,820,231 $ 5,494,780 $ 248,900,846 $ 496.012,839
The notes to the financial statements are an integral part ofthis statement
20
COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND'
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2008
Differences in amounts reported for governmental activities in the statement of activities on
pages 16-17:
Net change in fund balances - total governmental functs
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense.
Capital outlay
Depreciation expense
Donations of capital assets are not financial resources to governmental funds, but receiving
donated assets increases net assets in the statement of net assets.
Capital assets transferred to proprietary funds are not recorded in the governmental funds as
there is no flow of current financial resources.
In the statement of activities, the loss on the sale of capital assets is reported, However, in the
governmental funds the proceeds from the sale of capital assets increase financial resources.
The change in net assets differs from the change in fund balance by the net book value of
assets disposed.
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds.
Debt proceeds provide current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net assets.
Repayment of principal on long-term debt is an expenditure in governmental funds, but a
reduction of long-term liabilities in the statement of net assets.
Bond and loan principal payments
Payments on capital lease obligations
Certain amounts reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental funds.
Increase in compensated absences
Accrued interest on bonds
Amortization of deferred charges, net
Amortization of deferred loss
Amortization of premium
Amortization of discount
Increase in arbitrage rebate liability
The net revenues of internal service funds are reported with governmental activities.
Change in net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
21
$ 285,808,920
(60,350,414)
$ 42,936,000
144,410
$ (1,782,479)
169,597
(173,475)
(94,219)
1,125,409
(28,336)
(463,489)
jkof2f/J~
13 A
$
$ (108,483,366)
225,458,506
1,722,918
(23,782,028)
(2,542,377)
304,804
(75,636,815)
43,080,410
(1,246,992)
23,213,011
$ 82,088,071
COLLIER COUNTY, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
sfr1>f'l/J01
13 A
d.--
,'.
. "
Variance with
Final Budget
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenues:
Taxes $ 258,025,800 $ 258,025,800 $ 248.150,424 $ (9,875,376)
Licenses and permits 161,000 161,000 140,761 (20,239)
Intergovernmental 47,412,500 47,412,545 42,093,551 (5,318,994)
Charges for services 24,703,448 24,832,668 20,962,782 (3,869,886)
Fines and forfeitures 575,700 575,700 636,664 60,964
Interest income 34,632,300 34,632,300 30,090,172 (4,542,128)
Miscellaneous 10,466,400 10,544,402 12,018,427 1,474,025
Total revenues 375,977,148 376,184,415 354,092,781 (22,091,634)
Expenditures:
Current:
General government
Board of County Commissioners personal services 1,056,700 1,056,700 986,180 70,520
Board of County Commissioners operating 105,200 133,200 140,039 (6,839)
County manager administrative personal services 973,600 980,200 919,839 60,361
County manager administrative operating 31,300 31,300 60,324 (29,024)
Budget and management personal services 866,800 860,200 800,416 59,784
Budget and management operating 72,200 72,200 73,590 (1,390)
Administrative services personal services 5,928,400 5,992,400 5,453,586 538,814
Administrative services operating 2,838,700 2,736,370 2,817,560 (81,190)
Administrative services capital outlay 204,300 196,800 60,673 136,127
Human resources administration personal services 1,583,100 1,605,100 1,551,058 54,042
Human resources administration operating 311,100 289,631 271,595 18,036
Human resources administration capital outlay 3,000 3,000 3,000
Clerk of the Circuit Court personal services 7,188,500 7,270,000 6,306,501 963,499
Clerk of the Circuit Court operating 4,034,600 3,433,100 2,517,842 915,258
Clerk of the Circuit Court capital outlay 518,200 318,200 3,328 314,872
Property Appraiser personal services 4,914,546 4,914,546 4,813,602 100,944
Property Appraiser operating 2,291,733 2,291,733 2,133,880 157,853
Property Appraiser capital outlay 209,117 209,117 66,190 142,927
Tax Coilector personal services 9,208,581 9,092,126 9,092,126
Tax Collector operating 2,491,692 2,400,597 2,391,454 9,143
Tax Collector capital outlay 103,411 210,569 210,569
County attorney personal services 3,173,600 3,173,600 3,034,355 139,245
County attorney operating 316,400 533,758 463,674 70,084
County attomey capital outlay 44,000 16,642 16,120 522
Natural resources personal services 221,700 224,000 218,630 5,370
Natura} resources operating 3,887,600 3,885,300 204,183 3,681,117
Natural resources capital outlay 1,500 1,500 1,500
22
:3/r4~r t1-
I
Circuit coUrt costs operating 83,700 73,800 28,722 45,07813 I
CircUit c~urt costs capital outlay 9,900 7,814 2,086
Courthouse security personal services 106,200 106,200 95,325 10,875
Courthouse security operating 1,016,600 1,016,600 947,738 68,862
Courthouse security capital outlay 62,000 62,000 48,426 13,574
County court cost operating 46,200 43,200 9,662 33,538
County court cost capital outlay 3,000 2,654 346
State Attorney operating 519,400 519,400 498,762 20,638
State Attorney capital outlay 23,000 23,000 19,610 3,390
Public Defender operating 216,100 216,100 176,628 39,472
Public Defender capital outlay 4,100 4,100 1,933 2,167
Other general administrative personal services 60,000 126,000 125,960 40
Other general administrative operating 7,992,600 9,112,211 6,834,876 2,277,335
Facilities management personal services 3,509,300 3,539,300 3,527,678 11,622
Facilities management operating 7,836,700 8,020,577 8,126,848 (106,271)
Facilities management capital outlay 268,000 255,390 158,433 96,957
Sheriff personal services 3,812,900 3,812,900 3,945,863 (132,963)
Sheriff operating 156,500 156,500 133,382 23,118
Sheriff capital outlay 20,912 20,912
Supervisor of Elections personal services 1,728,500 1,775,650 1,619,698 155,952
Supervisor of Elections operating 2,230,100 2,156,739 1,894,613 262,126
Supervisor of Elections capital outlay 3,500 24,856 124,303 (99,447)
Real property management personal services 932,000 932.000 871,881 60,119
Real property management operating 37,400 37,400 62,213 (24,813)
Real property management capital outlay 2,124 (2,124)
Total general government 83,224,380 83,979,624 73,893,372 10,086,252
Public safety
Sheriff personal services 120,892,900 120,892,900 122,393,257 (1,500,357)
Sheriff operating 27,488,700 27,467,788 25,788,601 1,679,187
Sheriff capital outlay 4,487,600 4,487,600 3,086,275 1,401,325
Emergency management administration personal services 830,500 830,545 821,124 9,421
Emergency management administration operating 202,700 641,627 434,983 206,644
Emergency management administration capital outlay 10,000 10,000 9,311 689
Helicopter operations personal services 699,400 745,400 715,515 29,885
Helicopter operations operating 864,800 818,800 837,662 (18,862)
Medical examiner services operating 1,118,200 1,118,200 1,102,343 15,857
Total public safety 156,594,800 157,012,860 155,189,071 1,823,789
Physical environment
Conservation and resource management personal services 807,700 813,000 727,454 85,546
Conservation and resource management operating 210,300 210,300 147,265 63,035
Immokalee cemetery operating 25,800 25,800 22,252 3,548
Total physical environment 1,043,800 1,049,100 896,971 152,129
Economic environment
Veterans services personal services 285,700 285,700 274,745 10,955
Veterans services operating 80,200 80,200 50,183 30,017
Impact fee assistance operating 750,000 750,000 481,580 268,420
Housing and urban improvement operating 1,612,100 1,612,100 1,524,866 87,234
Total economic environment 2,728,000 2,728,000 2,331,374 396,626
23
4rofitfft ~
Human services 13 A I
Health Care Responsibility Act operating 50,000 50,000 ]4.02] 35,979
Domestic animal services personal services 1,967,300 1,967,300 1,821,]29 146,171
Domestic animal services operating 784,600 784,600 8]8,061 (33,461)
Domestic animal services capital outlay 297,100 415,075 ] 06,809 308,266
Health department operating 1,789,500 ],789,500 2,054,410 (264,910)
Health department capital outlay 20,000 20,000 18,789 1,211
Mental health operating 917,600 917,600 1,142,425 (224,825)
Client assistance personal services 605,600 605,600 569,376 36,224
Client assistance operating 4, ]42, 700 4,170,573 4,041,577 128,996
Client assistance capital outlay 3,000 3,000 3,000
Public services division office personal services 304,400 313,300 301,993 11,307
Public services division office operating ]9,700 20,000 29,344 (9,344)
Total human services 10,901,500 11,056,548 10,9]7,934 138,614
Culture and recreation
Library administration personal services 5,549,200 5,653,700 5,23] ,393 422,307
Library administration operating 1,238,100 1,238,100 1,356,402 (118,302)
Library administration capital outlay 240,500 240,500 219,390 2],110
Extension services personal services 182,300 184,300 ]77,929 6,371
Extension services operating 11,900 11,900 10,892 1,008
Extension services capital outlay 1,000 1,000 ],000
Beach and water park operation personal services 5,293,700 5,279,500 4,779,954 499,546
Beach and water park operation operating 5,434,700 5,437,226 4,920,848 516,378
Beach and water park operation capital outlay 190,100 2]5,874 172,194 43,680
Total culture and recreation ]8,]4],500 18,262,100 16,870,002 1,392,098
Total expenditures 272,633,980 274,088,232 260,098,724 13,989,508
Excess of revenues over expenditures 103,343,168 102,096,183 93,994,057 (8,102,126)
Other financing sources (uses):
Sale of capital assets 350,000 350,000 223,] 03 (126,897)
Insurance proceeds 2,254 7,074 4,820
Transfers in 2,000,300 2,000,300 4,922,522 2,922,222
Transfers out (I ]8,261,968) (121,124,976) (] 10,747,625) 10,377,35]
Total other financing sources (uses) (115,911,668) (118,772,422) (105,594,926) 13,]77,496
Special item - bond expenditure 3,552,500 3.287,593 264,907
Net change in fund balance (12,568,500) (20,228,739) (14,888,462) 5,340,277
Fund balance at beginning of year 50,607,800 58,018,237 58,0]8,237
Fund balance at end of year $ 38,039,300 $ 37,789,498 $ 43,129,775 $ 5,340,277
Reconciliation:
Net change in fund balance, budgetary basis $ (14,888,462)
Bad debt expense (20,266)
Net change in fair value of investments (42,064)
Advances budgeted as transfers 1,700,000
Impact fee assistance receivable 48] ,580
Net change in fund balance, GAAP basis $ (12,769,212)
The notes to the financial statements are an integral part of this statement.
24
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i.;
COLLIER COUNTY, FLORIDA
COMMUNITY REDEVELOPMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Variance with
Final Bndget
Original Final Favorable
Bndget Budget Actual (Unfavorable)
Revenues:
Taxes $ 3,182,300 $ 3,182,300 $ 3,182,300 $
Interest income 10,000 10,000 242,379 232,379
Miscellaneous 5,742 5,742
Total revenues 3,192,300 3,192,300 3,430,421 238,121
Expenditures:
Current:
Economic environment
Bayshore/Gateway personal services 318,000 349,020 348,904 116
Bayshore/Gateway operating 679,100 698,100 209,345 488,755
Bayshore/Gateway capital outlay 1,454,000 1,254,000 863,642 390,358
Immokalee redevelopment personal services 180,200 215,381 159,284 56,097
Immokalee redevelopment operating 387,000 619,426 378,912 240,514
Immokalee redevelopment capital 68,000 68,000 2,689 65,311
Total expenditures 3,086,300 3,203,927 1 ,962,776 1,241,151
Excess (deficiency) of revenues over
(under) expenditures 106,000 (11 ,627) 1,467,645 1,479,272
Other financing uses:
Transfers out (500,000) (700,000) (471,979) 228,021
Total other financing uses (500,000) (700,000) (471 ,979) 228,021
Net change in fund balance (394,000) (711,627) 995,666 1,707,293
Fund balance at beginning of year 3,985,100 4,236,526 4,236,526
Fund balance at end of year $ 3,591,100 $ 3,524,899 $ 5,232,192 $ 1,707,293
Reconciliation:
Excess of revenues over expenditures, budgetary basis $ 995,666
Net change in fair value of investments (8,356)
Net change in fund balance, GAAP basis $ 987,310
25
<,
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
~{() I JKff
13A
~
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~ 1
.,
Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
ASSETS
Current assets:
Cash, cash equivalents and investments $ 75,889,646 $ 26,797,238 $ 102,686,884 $ 46,172,114
Receivables:
Trade, net 5,106,744 6,146,339 11,253,083 643,956
Special assessments 712,118 712,118
Interest 827,069 135,955 963,024
Unbilled revenue 5,125,280 279,860 5,405,140
Due from other funds 11,903 71,210 83,113 118,495
Due from other governments 116,315 922,734 1,039,049 83,107
Deposits 13,294 13,294 512,946
Inventory 3,448,244 170,074 3,618,318 420,127
Prepaid costs 50,192 50,192
Restricted assets:
Cash, cash equivalents and investments 7,256,234 746,909 8,003,143
Total current assets 98,506,847 35,320,511 133,827,358 47,950,745
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 32,850,815 32,850,815
Receivables:
Special assessments 1,060,128 1,060,128
Notes 3,457,704 3,457,704
Deferred charges 1,669,166 1,669,]66
Capital assets:
Land and nondepreciable capital assets 143,498,438 18,330,917 161,829,355
Depreciable capital assets, net 722,431,027 31,247,412 753,678,439 14,388,524
Total noncurrent assets 904,967,278 49,578,329 954,545,607 14,388,524
Total assets 1,003,474,125 84,898,840 1,088,372,965 62,339,269
(Continued)
26
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
Jf~YIA
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i.
Business-type Activities Enterprise Funds Govermnental
Activities -
County Waler Other Internal Service
and Sewer Funds Total Funds
LIABILITIES
Current liabilities:
Accounts payable $ 4,337,105 $ 3,388,273 $ 7,725,378 $ 831,175
Wages payable 875,626 812,586 1,688,212 115,137
Retainage payable 763,343 42,242 805,585
Due to other funds 8,914 73 8,987 255
Due to other governments 61,786 24,354 86,140 64
Due to individuals 71,538 422,051 493,589
Self~insurance claims payable 5,552,207
Compensated absences 1,020,949 725,285 1,746,234 162,732
Capital lease obligations 126,145 126,145
Interest payable 2,730,339 2,730,339
Bonds and loans payable 11,087,179 11,087,179
Liabilities payable from restricted assets:
Accounts payable 938,511 938,511
Retainage payable 6,090,136 61,974 6,152,110
Refundable deposits 154,880 306,115 460,995
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 28,213,013 6,287,918 34,500,931 6,661,570
Noncurrent liabilities:
Arbitrage rebate 1,505,580 1,505,580
Self-insurance claims payable 4,733,793
Compensated absences 255,237 181,322 436,559 40,683
Capital lease obligations 491,740 491,740
Net pension obligation 905,979
Landfill post-closure liability 1,815,160 1,815,160
Bonds and loans payable, net 251,452,650 251,452,650
Total noncurrent liabilities 253,213,467 2,488,222 255,701,689 5,680,455
Total liabilities 281,426,480 8,776,140 290,202,620 12,342,025
NET ASSETS
Invested in capital assets, net of related debt 609,904,402 48,960,444 658,864,846 14,388,524
Restricted for growth related capital expansion 15,637,780 15,637,780
Restricted for renewal and replacement 300,000 300,000
Restricted for debt service 14,226,979 14,226,979
Unrestricted 81,978,484 27,162,256 109,140,740 35,608,720
Total net assets $ 722,047,645 $ 76,122,700 798,170,345 $ 49,997,244
Cumulative consolidation adjustment for internal service fund activities related to enterprise funds. 4,620,493
Net assets of Business-type Activities $ 802,790,838
The notes to the financial statements are an integral part of this statement.
27
COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
J(tDf 2fI!(
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Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
Operating revenues:
Charges for services $ 98,982,033 $ 56,099,681 $155,081,714 $ 71,392,559
Insurance proceeds 4,011,040
Miscellaneous 709,807 1,521,593 2,231,400 687,070
Total operating revenues 99,691,840 57,621,274 157,313,114 76,090,669
Operating expenses:
Personal services 23,460,326 21,966,708 45,427,034 3,053,585
Operating 26,246,368 50,325,155 76,571,523 61,745,355
Depreciation and amortization 27,156,685 3,130,877 30,287,562 367,265
Total operating expenses 76,863,379 75,422,740 152,286,119 65,166,205
Operating income (loss) 22,828,461 (17,801,466) 5,026,995 10,924,464
Non-operating revenues (expenses):
Operating grants and contributions 121,479 4,271,815 4,393,294
Interest income 5,560,834 367,211 5,928,045 201,550
Insurance reimbursement 42,197 34,511 76,708
Change in fair value of investments (171,151) (41,090) (212,241) (52,025)
Rebatable arbitrage (282,867) (282,867)
Interest expense (8,883,950) (10,113) (8,894,063)
Loss on disposal of capital assets (17,605) (238,010) (255,615) (21,274)
Total non-operating revenues (expenses) (3,631,063) 4,384,324 753,261 128,251
Income (loss) before contributions and transfers 19,197,398 (13,417,142) 5,780,256 11,052,715
Capital grants and contributions 21,314,876 12,114,633 33,429,509 13,690,992
Transfers in 224,203 24,650,217 24,874,420
Transfers out (4,576,519) (2,046,707) (6,623,226)
Change in net assets 36,159,958 21,301,001 57,460,959 24,743,707
Net assets - beginning, as previously stated 687,363,264 54,821,699 25,253,537
Prior period adjustment (1,475,577)
Net assets - beginning, as restated 685,887,687 54,821,699 25,253,537
Net assets - ending $ 722,047,645 $ 76,122,700 $ 49,997,244
Consolidation adjustment for internal service fund activities related to enterprise funds. 1,530,696
Change in net assets of Business-type Activities $ 58,991,655
The notes to the financial statements are an integral part of this statement.
28
\ '11~ZJD1 ~
COLLIER COUNTY, FLORIDA 1 A .\
,
STATEMENT OF CASH FLOWS r \
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Governmental
Activities-
County Other Internal Service
Water and Sewer Funds Total Funds
Cash flows from operating activities:
Cash received for services $ 99,569,348 $ 48,862,066 $148,431,414 $
Cash received from other funds for services 64,846,369
Cash received from employees for services 6,636,665
Cash received from insurance 3,657,200
Cash received from other governments for services 18 18 464,435
Cash received from refundable deposits 50,000 524,714 574,714
Cash received from retirees for services 1,269,945
Cash payments on behalfofretirees (1,109,750)
Cash payments for goods and services (27,254,482) (43,369,790) (70,624,272) (62,390,338)
Cash payments to employees (23,360,622) (21,764,418) (45,125,040) (3,003,320)
Cash payments on refundable deposits (26,000) (631,826) (657,826)
Net cash provided by (used for)
operating activities 48,978,262 (16,379,254) 32,599,008 10,371,206
Cash flows from non-capital financing activities:
Cash received from operating grants 5,142,985 5,142,985
Cash transfers from other funds 224,666 28,449,232 28,673,898
Cash transfers to other funds (4,657,102) (5,834,181 ) (10,491,283)
Net cash provided by (used for) non-
capital financing activities (4,432,436) 27,758,036 23,325,600
Cash flows from capital and related
financing activities:
System development charges 10,002,538 10,002,538
Special assessment collections 659,742 659,742
Receipts from insurance reimbursements 42,197 34,511 76,708
Proceeds from disposal of capital assets 359,135 29,517 388,652 14,564
Proceeds from capital grants 1,894,500 2,184,153 4,078,653
Proceeds from state revolving loans 1,748,134 1,748,134
Payments for capital acquisitions (55,165,974) (13,401,094) (68,567,068) (319,650)
Principal payments on state revolving loans (5,365,046) (5,365,046)
Principal payments on bonds (4,745,000) (4,745,000)
Principal payments on leases (42,398) (42,398)
Interest and fiscal agent fees paid (10,236,755) (10,113) (10,246,868)
Net cash provided by (used for) capital and
related financing activities (60,806,529) (11,205,424) (72,0 II ,953) (305,086)
Cash flows from investing activities:
Interest on investments 6,141,804 325,022 6,466,826 221,440
Change in fair value of investments (171,151) (41,090) (212,241) (52,025)
Net cash provided by investing activities 5,970,653 283,932 6,254,585 169,415
Net increase (decrease) in cash, cash equivalents and investments (10,290,050) 457,290 (9,832,760) 10,235,535
Cash, cash equivalents and investments, October 1, 2007 126,286,745 27,086,857 153,373,602 35,936,579
Cash, cash equivalents and investments, September 30, 2008 $ 115,996,695 $ 27,544,147 $143,540,842 $ 46,172,114
Current cash, cash equivalents and investments $ 75,889,646 $ 26,797,238 $ 102,686,884 $ 46,172,114
Current cash, cash equivalents and investments - restricted 7,256,234 746,909 8,003,143
Noncurrent cash, cash equivalents and investments - restricted 32,850,815 32,850,815
Cash, cash equivalents and investments, September 30, 2008 $ 115,996,695 $ 27,544,147 $ 143,540,842 $ 46,172,114
(Continued)
29
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
3{to/2Jif
III
rJ-.
Business~type Activities Enterprise Funds Governmental
Activities-
County Other Internal Service
Water and Sewer Funds Total Funds
Operating income (loss) $ 22,828,461 $(17,801,466) $ 5,026,995 $ 10,924,464
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense 26,552,696 3,130,877 29,683,573 367,265
Amortization of bond issuance costs 543,534 543,534
Amortization of utility acquisition adjustment 60,455 60,455
Net changes in assets and liabilities:
Trade receivable (207,208) (936,550) (1,143,758) (321,282)
Due from other funds 53,388 (7,080) 46,308 391,948
Due from other governments 46,950 566 47,516 (33,789)
Deposits (7,027) (7,027) (95,208)
Prepaid costs 8,290 (50,192) (41,902)
Inventory (279,588) 1,808 (277,780) (45,577)
Accounts payable (831,806) (25.179) (856,985) (472,502)
Wages payable 47,792 113,221 161,013 20,783
Notes payable
Due to other funds (1,056) (39,832) (40,888) (15,421)
Due to other governments 61,778 3,548 65,326 64
Due to individuals 376 405,846 406,222
Compensated absences 51,912 88,473 140,385 29,482
Refundable deposits 49,315 (107,112) (57,797)
Unearned revenue (6,233) (6,233)
Self-insurance claims payable (1,285,000)
Net pension obilgation 905,979
Landfill post closure liability (1,149.949) (1,149,949)
Total adjustments 26,149,801 1,422,212 27.572,013 (553,258)
Net cash provided by (used for) operating activities $ 48,978,262 $(16,379,254) $ 32,599,008 $ 10,371,206
Non-cash investing, capital and financing activities:
The enterprise funds experienced a non-cash investing loss due to a change in the fair value of investments as follows:
County Water and Sewer $ (171,151)
Other funds (41,090)
Total $ (212,241)
There were non-cash developer contributions of$10,117,044 in the County Water and Sewer District fund.
There were non-cash contributions of$10,096,889 in the other enterprise funds, as assets with a historical cost
of $1 0, 163,338 and accumulated depreciation of$66,449 were transferred in from other funds. In addition, assets
with a fair value of $488,580 were purchased for $48,857.
The internal service funds experienced a non-cash investing loss due to a change in the fair value of investments as follows:
Intcrnal service funds $ (52,025)
Therc were non-cash contributions of $13,690,992 in the internal service funds, as assets with a historical cost
of$13,792,071 and accumulated depreciation of$101,079 were transferred in from other funds.
The notes to the financial statements are an integral part of this statement.
30
COLLIER COUNTY, FLORIDA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2008
Agency
Funds
ASSETS
Cash, cash equivalents and investments $ 32,678,806
Receivables:
Interest 31,275
Other 42,455
Total assets $ 32,752,536
LIABILITIES
Due to other governments $ 4,975,705
Due to individuals 1,822, I 09
Refundable deposits 19,981,727
Due to special assessment holders 5,972,995
Total liabilities $ 32,752,536
The notes to the financial statements are an integral part of this statement.
31
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THIS PAGE INTENTIONALLY LEFT BLANK
rP
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
o I /li~~ cI-
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INDEX
NOTE
PAGE NUMBER
I Summary of Significant Accounting Policies 34
2 Cash, Cash Equivalents and Investments 46
3 Trade Receivables 49
4 Interfund Payables and Receivables 50
5 Capital Assets 52
6 Long-Term Obligations 53
7 Conduit Debt Obligations 61
8 Defeased Debt 61
9 Pension Plan Obligations 62
10 Transfers 64
II Net Assets/Fund Balances 64
12 Risk Management 66
13 Other Postemployment Benefits 68
14 Landfill Liability 72
15 Significant Contingencies 73
16 Significant Commitments 74
17 Fund Deficits 74
18 Special Item 75
19 Prior Period Adjustment 75
20 Subsequent Events 75
33
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3r/~f1Jb7 ~.
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE REPORTING ENTITY
The primary government consists of Collier County, a political subdivision of the State of Florida
that was established in 1923 by the Florida State Legislature. The County is governed by a Board
of County Commissioners which consists of five members elected within single member districts.
In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property
Appraiser, Sheriff, Clerk of the Circuit Court and Supervisor of Elections. The Constitutional
Officers are elected county wide. Under the direction of the Clerk of the Circuit Court, the Collier
County Finance and Accounting Department maintains the accounting system for the operations of
the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court.
The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems.
For financial reporting purposes the operations of the Board of County Commissioners and the
Constitutional Officers are combined and presented as the primary government.
Component units are legally separate agencies that the primary government is financially
accountable for or organizations which should be included in the reporting entity because of the
nature and significance of their relationship with the primary government. Financial accountability
is determined by the primary government's ability to appoint the voting majority of the entity's
board, impose its will on the organization, and the existence of a financial benefitlburden
relationship or fiscal dependency.
The County's blended component units consist of organizations whose respective governing Boards
are composed entirely of the Board of County Commissioners serving ex-officio. These entities are
legally separate, however financial support has been pledged and financial or operational policies
may be significantly influenced by the County. In accordance with Governmental Accounting
Standards Board (GAS B) Statement No. 14, The Financial Reporting Entity, as amended by GASB
Statement No. 39, Determining Whether Certain Organizations are Component Units, these
organizations are reported as if they were part of the County's operations.
Collier Countv Water and Sewer District
The District was established by Chapter 88-499, as amended by Chapter 03-353,
Laws of Florida, to provide water, sewer and effluent services to portions of the
unincorporated area of Collier County.
Goodland Water District
The District was established by a Special Referendum Election authorized by
Collier County Ordinance 75-5 and Section 125.01(q), Florida Statutes. The
District provides potable water service to the residents of Goodland.
Collier County Community Redevelopment Agencv (CRA)
The CRA was established by Resolution 2000-82 to benefit blighted areas in both
the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment
areas. These two redevelopment areas are geographically separate and distinct.
34
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3!rd~~
13A
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NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The County's discretely presented component units consist of organizations whose board members
are appointed by the Board of County Commissioners. The County is able to impose its will on
these entities because of its ability to remove appointed members from the component units'
Boards. The Authorities maintain their own financial records, but do not issue separate financial
statements. GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB 39,
requires that the financial data of the following organizations be reported in separate columns to
emphasize that they are legally separate from the County.
Collier County Housing Finance Authoritv
The Authority was formed in 1980 by Collier County Ordinance 80-66 for the
purpose of stimulating the construction of residential housing for low and
moderate income families through the use of public financing. Their financial
position and results of operations are reported in the accompanying financial
statements and the outstanding conduit debt issued by the Authority is disclosed in
Note 7, "Conduit Debt Obligations".
Collier County Health Facilities Authoritv
The Authority was established in 1979 by Collier County Ordinance 79-75 for the
purpose of assisting health facilities in the acquisition, construction and financing
of projects within the County. Their financial position and results of operations
are reported in the accompanying financial statements and the outstanding conduit
debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations".
Collier County Industrial Development Authoritv
The Authority was created in 1978 by Collier County Resolution 78-94 to facilitate
the financing of projects that promote economic growth and increase opportunities
for employment in the County. Their financial position and results of operations
are reported in the accompanying financial statements and the outstanding conduit
debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations".
Collier Countv Educational Facilities Authoritv
The Authority was created in 1999 by Collier County Resolution 99-177 to assist
institutions for higher education in the construction, financing and refinancing of
projects. Their financial position and results of operations are reported in the
accompanying financial statements and the outstanding conduit debt issued by the
Authority is disclosed in Note 7, "Conduit Debt Obligations".
Financial information on the individual component units can be obtained from their respective
administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit
Court.
35
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
J!rll[Z(t)1 tJ-
13A
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
THE REPORTING ENTITY - CONTINUED
Administrative Offices:
Collier County Water and Sewer District and
Goodland Water District
3301 East Tamiami Trail
Naples, Florida 34112
Collier County Health Facilities Authority and
Housing Finance Authority
5811 Pelican Boulevard, Suite 210
Naples, Florida 34108
Bayshore Gateway Community
Redevelopment Agency
2740 Bayshore Drive, Unit 17
Naples, Florida 34112
Collier County Industrial Development
Authority and
Educational Facilities Authority
3050 N. Horseshoe Drive, Suite 120
Naples, Florida 34104
Immokalee Community Redevelopment
Agency
3301 East Tamiami Trail
Naples, Florida 34112
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS
The basic financial statements are made up of the government wide financial statements and fund
financial statements. Both of these sets of financial statements distinguish between the
governmental and business type activities of Collier County. The government wide financial
statements consist of a Statement of Net Assets and a Statement of Activities. These statements
report on the financial condition of Collier County, at the reporting entity level. Internal balances
represent net amounts due between the governmental and business-type activities. As a general
rule, the effect of interfund activity has been eliminated from the government wide financial
statements. Fiduciary funds are not included in these presentations as their assets do not
represent amounts that are available for Collier County government operations. The Statement
of Net Assets reports all financial and capital resources of Collier County's governmental and
business-type activities. Net assets equal assets minus liabilities, and is shown in three
categories: invested in capital assets, net of related debt; restricted net assets and umestricted net
assets. The Statement of Activities reports results of operations on a functional activity
(program) basis and demonstrates to what degree the particular program has been self-
supporting.
36
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
2/t D I ')JIf
13 A
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l
1
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - CONTINUED
Program revenues are reported in the following three categories: charges for services, operating
grants and contributions and capital grants and contributions. Charges for services are 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.
When both restricted and unrestricted resources are available, restricted resources will be used first
for incurred expenditures, and unrestricted as needed.
The fund financial statements follow the government wide statements and report more detailed
information about operations of major funds on an individual basis and nonmajor funds on an
aggregate basis for the governmental and proprietary funds. Following the governmental fund
balance sheet and statement of revenues, expenditures and changes in fund balances is a
reconciliation explaining the differences between the governmental fund presentation and the
government wide presentation.
BASIS OF PRESENTATION
The following are reported as major governmental funds:
General Fund - the General fund is the general operating fund of the County. All general tax
revenues and other receipts that are not accounted for in other funds are accounted for in the
General Fund. The general operating funds of the Clerk of the Circuit Court, Property Appraiser,
Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County
Commissioners' general operating fund in the County's consolidated General Fund.
Road Impact Districts Fund - the Road Impact Districts Capital Project fund is used to account for
the receipt and expenditure of road impact fees collected from qualifYing new construction. The
impact fees must be used for the acquisition and construction of transportation related facilities by
district.
Road Construction Fund ~ the Road Construction Capital Project fund is used to account for the
receipt and expenditure of gas taxes and bond proceeds. Projects include, but are not limited to,
right-of-way acquisition, design and construction of various transportation improvements.
37
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
J/r~l~ . ~
lj,A
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF PRESENTATION - CONTINUED
Community Redevelopment Fund - the Community Redevelopment Fund is used to account for the
receipt and expenditure of tax increment revenues relating to the Bayshore/Gateway Triangle and
Immokalee Community Redevelopment Authorities.
The following is reported as a major enterprise fund:
County Water and Sewer Fund - the County Water and Sewer fund is used to account for the
provision of water, wastewater and effiuent services to certain portions of the County's
unincorporated area.
Collier County also maintains the following nonmajor fund types:
Special Revenue Funds - Special revenue funds are used to account for the accumulation of
resources set aside for a specific purpose.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources
for the payment of principal, interest and other expenditures on long-term obligations, other than
bonds and notes payable from the operations of business-type activities.
Capital Proiect Funds - Capital project funds are used to account for the acquisition and
construction of major capital facilities other than those financed by proprietary funds.
Enterprise Funds - Enterprise funds are used to account for activities for which a fee is charged
to external users for goods or services.
Internal Service Funds - Internal service funds are used to account for the provision of goods and
services by one department to another department within the County or to other govemmental
units on a cost reimbursement basis.
Agencv Funds - Agency funds are custodial in nature and do not report the results of operations
(assets equal liabilities). Agency funds are clearing accounts for assets held by the government
as an agent for individuals, private organizations or other governments. The Board of County
Commissioners, Sheriff, Clerk of the Circuit Court and Tax Collector all maintain agency funds.
38
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
.3/ta/2m9
OL
13A
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF ACCOUNTING AND MEASUREMENT FOCUS
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made regardless of the measurement focus applied.
The government wide financial statements, as well as the fund financial statements for the
proprietary funds, are reported using the economic resources measurement focus and the accrual
basis of accounting. Revenues are recognized in the period in which they are earned and expenses
are recognized in the period incurred. Grant revenues are recognized when eligibility requirements
are met. The intent in proprietary operations is that the costs of providing goods or services to the
general public be financed primarily through user charges, or where periodic determination of
revenues earned, expenses incurred, and/or net income is deemed appropriate.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
All governmental fund financial statements are reported using a current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recognized in the period in which they become both measurable and
available to finance expenditures of the current period. Available means collectible within the
current period or soon enough thereafter, generally 60 days, to be used to pay liabilities of the
current period. Primary revenues including non-grant intergovernmental revenues, charges for
services and interest are treated as susceptible to accrual under the modified accrual basis. In
applying the susceptibility-to-accrual concept to grant revenues, the legal and contractual
requirements of the numerous individual programs are used as guidance. In addition, grant
revenues are considered available if they are expected to be collected within one year of the end of
the current fiscal period.
Property taxes are discussed later in this footnote. Other revenue sources are not considered
measurable and available and are not treated as susceptible to accrual. Expenditures are recorded
when the related fund liability is incurred. Exceptions to this general rule include accrued
compensated absences and principal and interest on long-term debt.
39
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
ol(()f'tb{D aL
13A
\.
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 ofthe 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 intradepartmental budget changes less than $50,000 that do
not alter the total expenditures of the department. All other budgetary changes must be
approved by the Board of County Commissioners as a matter of policy. The initial adopted
budget was amended in accordance with the Florida Statutes.
7) Florida Statute Section 129.07, as amended in 1978, provides that expenditures in excess of
total fund budgets are unlawful. However, because the Board approves all budgetary changes
between departments, except those approved by the County Manager, the departmental budget
becomes the level of control.
40
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3(/bfuet
131
~
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BUDGETS AND BUDGETARY DATA - CONTINUED
Formal budgetary integration is employed as a management control device during the fiscal year for
all funds. Budgets have been legally adopted by the Board for all Board funds except for agency
funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax
Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts is
a fee officer, and as such, prepares his budget in accordance with Section 218.35, Florida Statutes.
The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are
submitted to and approved by the Board. The Clerk of Court's budget for court related functions is
prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court
Operations Corporation for approval by the Florida Department of Revenue.
Budgets are adopted for all governmental funds except as described in the previous paragraph.
These budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP) except for certain non-budgeted revenues and expenses and mark to market activity on
investments. All unencwnbered appropriations lapse at the end of the current year. Capital
project costs are budgeted in the year they are anticipated to be obligated. In subsequent years,
the unused budget is reappropriated until the project is completed. Proprietary funds are
budgeted on a basis consistent with generally accepted accounting principles, except that capital
related and debt transactions are based upon cash receipts and disbursements. Estimated
beginning fund balances are considered in the budgetary process.
For purposes of the budgetary presentation, certain transactions that have been accounted for in
the governmental funds statements of revenues, expenditures and changes in fund balances have
not been reflected in the budgetary financial statements. Specifically, bad debt expense and the
net change in fair value of investments are not presented in the budget to actual statements.
CASH. CASH EOUIV ALENTS AND INVESTMENTS
The County maintains a cash and investment pool for all funds. The Clerk of the Circuit Court
administers the investment pool pursuant to Section 28.33 Florida Statutes. Interest is primarily
allocated to the general fund of the Clerk of the Circuit Court, which is included in the
comprehensive general fund in the accompanying financial statements. Some funds are specifically
required to receive interest, and that interest is allocated to those funds based on the individual
fund's average daily balance in the pool. See litigation Note 15. Pursuant to the provisions of
GASB Statement 31, Accounting and Financial Reportingfor Certain Investments andfor External
Investment Pools, all investments are stated at fair value. Cash equivalents are short-term
investments with maturities of three months or less from the date purchased.
41
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
31(D~q ~
13 fA
,
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
ACCOUNTS RECEIVABLE - UNBILLED REVENUE
Unbilled charges for services are accrued in the County Water and Sewer and Goodland Water
funds by prorating subsequent bills.
INVENTORIES AND PREPAID COSTS
Inventory is valued at cost using the first-in, first-out method. Inventory in the governmental funds
consists of supplies held for conswnption. The cost is recorded as an expenditure at the time
inventory items are conswned rather than when purchased. Certain payments to vendors reflect
costs applicable to future accounting periods and are recorded as prepaid items. Inventories and
prepaid costs reported within governmental funds are offset by a reserve, which indicates that they
do not constitute available resources. Inventories and prepaid costs in the government wide and
proprietary fund financial statements are reported as an expense when conswned.
CAPITAL ASSETS
Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded
at their fair value on the date donated. Facilities constructed using system development impact
fees, collected from developers and customers, are stated at cost.
The County capitalizes expenditures with a cost of $1 ,000 or more and with a useful life in excess
of one year. Expenditures for maintenance and repairs are charged to operating expenses. The cost
of assets retired or sold, together with the related accwnulated depreciation, is removed from the
accounts and any gain or loss on disposition is credited or charged to earnings.
Depreciation is calculated using the straight-line method.
classes of depreciable capital assets is as follows:
The estimated useful life of the various
Fixed Asset
Estimated Useful
Life
20-45 years
3-30 years
4-45 years
3-10 years
Buildings
Infrastructure
Improvements other than buildings
Machinery and equipment
For constructed assets including buildings, infrastructure and improvements other than buildings a
half year convention is used in placing these assets into service. Costs incurred in the
renourishment of beaches are included in the infrastructure class of capital assets and are capitalized
and depreciated over three years. Infrastructure acquired prior to fiscal years ended after June 30,
1980 is not reported.
42
, \
41o/Z/IJ~
~
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13 A
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1
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
CAPITAL LEASE OBLIGATIONS
In the government wide financial statements and proprietary fund financial statements capital lease
obligations and the related cost of assets acquired are reflected in the Statement of Net Assets. For
capital lease obligations originating in governmental funds, an expenditure for the asset and the
offsetting amount of the financing source is reflected in the fund financial statements.
BOND PREMillMS, DISCOUNTS AND ISSUANCE COSTS
Bond premiums, discounts and issuance costs for the governmental activities and the business-type
activities are deferred and amortized over the term of the bonds using the straight-line method.
Bond discounts are presented as a reduction of the face amount of bonds payable, premiums as an
increase, while issuance costs are recorded as deferred charges, which are shown on the face of the
Statement of Net Assets as a component of noncurrent assets. In the governmental fund financials,
bond premiums, discounts and issuance costs are recognized in the current period.
DEFEASANCE OF DEBT
For refundings resulting in the defeasance of debt, generally accepted accounting principles require
that the difference between the reacquisition price and the net carrying amount of the old debt be
deferred and amortized over the shorter of the life of the new debt or the remaining life of the old
debt as a component of interest expense. The straight-line method is used for amortization of the
deferred charge.
INTEREST COST
In the proprietary funds interest costs are capitalized in accordance with the provisions of Financial
Accounting Standards Board (F ASB) Statement No. 34, Capitalization of Interest Cost, and F ASB
Statement No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax-Exempt
Borrowings and Certain Gifts and Grants, when applicable.
PROPERTY TAXES
Property taxes become due and payable on November 1st of each year and become delinquent on
April 1 st of the following year. Property taxes receivable and a corresponding allowance for
uncollectible property taxes are not included in the financial statements, as delinquent taxes as of
September 30, 2008 are not significant. Discounts on property taxes are allowed for payments
made prior to the April 1 st delinquent date as follows: November - 4%, December - 3%, January
- 2%, and February - 1 %. Tax certificates for the full amount of any unpaid taxes must be sold
not later than June 1st of each year. No accrual for the property tax levy becoming due in
November 2008 is included in the accompanying financial statements, since such taxes are
collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for
the fiscal year ended September 30, 2008 are as follows:
43
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3!f/) ('LtJ1 cJL
13 A
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
PROPERTY TAXES - CONTINUED
Property Tax Cycle
Assessment roll compiled
Assessment roll certified
Millage resolution approved
Beginning of fiscal year for tax levy
Taxes due and payable (levy date)
Due date
Delinquent (lien date)
Tax certificates sold
Date
January I, 2007
July 1,2007
Within 3S days of the certification of the assessment roll
October 1, 2007
November 1,2007
March 31, 2008
April 1, 2008
Prior to June I, 2008
APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS
In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has
elected not to apply those FASB Statements and Interpretations issued after November 30,1989.
ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results may differ from those estimated.
IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
Effective October I, 2007 the County adopted the provisions of GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions (GASB Statement No. 45). The effect of this adoption was to establish uniform
reporting standards for other postemployment benefit (OPEB) plans, and to change the
measurement, recognition and display of OPEB expense and related liabilities (assets), note
disclosures and required supplementary information (RSI) in annual financial reports of
governmental entities. See Note 13 for a description ofthe County's OPEB plan.
44
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
lJt?' t
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
UNEARNED REVENUE AND DEFERRED REVENUE
In instances where assets have been received by the County for services to be rendered in future
periods, asset balances are offset by an unearned revenue liability account in the financial
statements. Examples of unearned revenues of the County as of September 30, 2008 are unspent
State Housing Initiative Partnership (SHIP) monies and cash receipts associated with unspent
advance grant agreements.
Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not
meet the availability criterion under the modified accrual basis of accounting. Primary examples of
the County's deferred revenues are amounts associated with SHIP loans made to qualifYing
organizations and deferred impact fee agreements made with developers and individuals.
ACCRUED COMPENSATED ABSENCES
The County follows the provisions of GASB Statement No. 16, Accounting for Compensated
Absences. This statement provides for the measurement of accrued vacation leave and other
compensated absences using the payor salary rates in effect at the balance sheet date. It also
requires additional amounts to be accrued for certain salary related payments associated with the
payment of compensated absences.
It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a
sick leave payment upon termination for any service period earned prior to August 2, 1996 and
100% of allowable vacation hours at the current rate of pay. The Sheriffs policy allows for a
percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours, and
up to 400 hours of unused vacation time. Both the Clerk of the Circuit Court's and Tax Collector's
policy's allow for a percentage of unused sick leave payout based upon years of service, and up to
240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of
unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 240
hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of
unused sick leave payout based upon years of service, and up to 440 hours of unused vacation.
Payments for compensated absences are made by the respective fund. Accrued compensated
absences are recorded as liabilities in the government-wide financial statements and the proprietary
fund financials. A liability is reported in governmental funds only if they have matured, for
example, as a result of employee resignations or retirements, and are considered due and payable as
of year end.
45
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
1(tJ(~ rP
13 A
,
NOTE 2 - CASH, CASH EOUlV ALENTS AND INVESTMENTS
As of September 30, 2008, the County had the following cash, cash equivalents and investments:
Investment Matnrities Fair Value Call Date Call Frequency Rating
Cash on hand N/A $ 80,285 N/A N/A N/A
Demand deposits N/A 178,428,415 N/A N/A N/A
State Board of Administration Pool N/A 724,487 N/A N/A N/A
Federal Home Loan Mortgage Corp. 11117/2008 24,937,500 none N/A AAA
Federal Home Loan Mortgage Corp. 11/24/2008 24,927,500 none N/A AAA
Federal National Mortgage Assoc. 2/23/2009 24,702,500 none N/A AAA
Federal Home Loan Bank 3/23/2009 24,984,500 none N/A AAA
Federal Home Loan Bank 3/24/2009 24,968,750 none N/A AAA
Federal Home Loan Mortgage Corp. 4/2/2009 24,865,500 7/2/2008 continuous AAA
Federal Home Loan Bank 4/7/2009 49,828,000 7/7/2008 continuous AAA
Federal Home Loan Bank 5/6/2009 49,875,000 11/6/2008 one time AAA
Federal Home Loan Mortgage Corp. 4/30/2010 25,015,000 8/1/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/2/20 I 0 35,003,150 9/2/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/4/2010 50,063,000 9/4/2008 continuous AAA
Federal National Mortgage Assoc. 6/17/2010 50,078,000 9/17/2008 continuous AAA
Federal Home Loan Mortgage Corp. 6/30/20 I 0 15,046,500 9/30/2008 continuous AAA
Federal National Mortgage Assoc. 6/30/20 I 0 25,078,250 12/30/2008 one time AAA
Federal National Mortgage Assoc. 6/3/2011 25,039,000 12/3/2008 one time AAA
Federal National Mortgage Assoc. 6/24/20 II 25,117,250 6/24/2009 one time AAA
Federal Home Loan Mortgage Corp. 2/2/2012 25,185,250 2/2/2009 one time AAA
Federal National Mortgage Assoc. 8/22/2012 25,086,000 8/22/2008 Quarterly AAA
Federal National Mortgage Assoc. 1/3/2013 50,250,000 7/3/2008 continuous AAA
Total $ 779,283,837
The County maintains a cash and investment pool that is available for use by all funds. Each fund's
portion of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents
and Investments. Investment income is allocated monthly to participating funds, as mentioned
above, based on the percentage of each fund's average daily balance in the total pool.
CREDIT RISK
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The County's investment practices are governed by Florida Statutes, Chapter 218 and
the County's Investment Policy. The County's Investment Policy limits credit risk by restricting
authorized investments to the following: The Florida Local Government Surplus Trust Fund (SBA);
Direct obligations of, or obligations backed by the full faith and credit of the United States
Government; U.S. government sponsored Corporation/Instrumentalities (except for Student Loan
Marketing Association); Certificate of Deposits collateralized by U.S Government Securities or
46
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
:Jk/~
13A
.cL
)
.1
NOTE 2 - CASH, CASH EOUIV ALENTS AND INVESTMENTS - CONTINUED
CREDIT RISK - CONTINUED
Agencies; fixed income mutual funds collateralized by U.S. Government Securities or Agencies;
domestic bankers' acceptances rated "AA" or higher; prime cornmercial paper rated "A-I" and "p-
I "; 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. Goverrunent securities and 104 percent on Agencies and
Instrumentalities with a term over five (5) years, and must be marked to market at least weekly.
The SBA is an investment pool administered by the State Board of Administration, under the
regulatory oversight of the State of Florida. The SBA operates two pools, Fund A (LGIP) and Fund
B, with Fund B carrying a AAAm rating from Standard & Poor's. At September 30, 2008, the
Sheriff had $724,487 invested in the State Board of Administration's Local Government Surplus
Funds Trust Fund Investment Pool. Of this amount, $692,653 is invested in the LGlP and
$31,834 in the Fund B Surplus Funds Trust Fund. The LGlP investment is fully liquid and
carries a weighted average days to maturity of 8.5 days. Fund B is accounted for as a fluctuating
net asset value pool and the fair value factor for September 30, 2008 was .798385. The Fund B
amount has a weighted average life of 9.36 years. Fund B cash holdings continue to be
distributed to participants as they become available from maturities, sales and received income.
CUSTODIAL CREDIT RISK
All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280,
"Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are
required to pledge eligible collateral having a market value equal to or greater than the average
daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging
level. The pledging level may range from 50% to 125% depending upon the depository's financial
condition. Any losses to public deposits are covered by applicable deposit insurance, sale of
securities pledged as collateral, and if necessary, assessments against other qualified public
depositories of the same type as the depository in default.
The policy requires execution of a third-party custodial safekeeping agreement for purchased
securities and collateral, and requires that securities be held in the County's name. At
September 30,2008 the County had demand deposits of $178,428,415. These demand deposits
do not include discretely presented component unit deposits of $50 1,700. These deposits were
fully covered by federal depository insurance or by collateral, in the County's name as required
by Sections 280.07 and 280.08 of the Florida Statutes.
47
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
8f'D!~1 rJ-;
13 A
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
INTEREST RATE RISK
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. One of the primary objectives of the investment policy is to match investment
cash flow and maturity with known cash needs and anticipated cash flow requirements. The
County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow
demands. Investments shall have an average maturity of not more than five years, except for the
Florida Local Government Surplus Trust Fund (SBA), which has no stated final maturity, and
mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably
definable as to amount and disbursement date and are used to invest funds associated with reserves
or liabilities that are not associated with a specifically identified cash flow schedule.
CONCENTRATION OF CREDIT RISK
The County's investment policy establishes limitations on portfolio composition in order to
control credit risk. The policy allows 100 percent of the portfolio to be invested in U.S.
Government Securities, Agencies and Instrumentalities (excluding mortgage securities), 50
percent to be invested in SBA, 30 percent to be invested in Certificates of Deposit, 20 percent to
be invested in qualifying repurchase agreements and 10 percent each in the categories of fixed
income mutual funds, domestic bankers' acceptances, prime commercial paper and tax-exempt
obligations.
The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed
as follows, at September 30, 2008:
Issuer
Percent of
Portfolio
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgage Association
Total U.S. Government Instrumentalities
29.0%
19.0%
29.0%
77.0%
48
~DI2hd/ ct
13 A 'I
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 2 - CASH. CASH EOUlV ALENTS AND INVESTMENTS - CONTINUED
CONCENTRA nON OF CREDIT RISK - CONTINUED
Reconciliation of cash, cash equivalents and investments to the basic financial statements:
Primary government:
Cash, cash equivalents and investments
Restricted cash, cash equivalents and investments - current
Restricted cash, cash equivalents and investments - noncurrent
Agency funds:
Cash, cash equivalents and investments
Total
NOTE 3 - TRADE RECEIVABLES
$ 371,054,714
47,688,123
327,862,194
32,678,806
$ 779,283,837
Trade receivables for governmental and business-type activities are net of an allowance for doubtful
accounts as follows:
General Fund
Road Impact Districts
Road Construction
Community Redevelopment
Nonmajor governmental funds
Total receivables reported in governmental funds
Total receivables reported in internal service funds
Developer contributions receivable
Total Governmental Activities trade receivables
County Water and Sewer
Nonmajor enterprise funds
Total Business-type Activities trade receivables
Trade
Receivables
$ 599,401
16,143
417,190
3,215
1,409,037
2,444,986
654,823
15,581,910
$ 18,681,719
5,389,743
23,451,604
$ 28,841,347
49
Allowance for Net Trade
Doubtful Accounts Receivables
$ 46,205 $ 553,196
16,143
417,190
3,215
64,404 1,344,633
110,609 2,334,377
10,867 643,956
15,581,910
121,476 18,560,243
282,999 5,106,744
17,305,265 6,146,339
$ 17,588,264 $ 11 ,253,083
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
~~(~
13 A
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J!'Il
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES
ADVANCES
Advances to and advances from other funds at September 30, 2008 were as follows:
Advance
To
Advance
From
Governmental Activities:
General Fund
Advances were made from the General Fund to the Tourist
Development Fund and the EMS, Library and Law Enforcement
impact fee funds for capital improvements. Reimbursement will take
place over the next several years. $
Total General Fund
Other governmental funds:
Other Capital Projects Funds
Advances were made from the County-Wide Capital Improvements
Fund to EMS, Law Enforcement and General Governmental Facilities
impact fee funds for purposes of capital improvement.
Reimbursement will take place over the next several years.
Tourist Development Fund
Emergency Medical Services Impact Fees Fund
County-Wide Library Impact Fees Fund
Law Enforcement Impact Fees Fund
Government Facilities Impact Fees Fund
Total other governmental funds
Total
5,127,194
5,127,194
$
10,935,100
113 ,094
1,159,300
4,521,800
6,063,500
4,204,600
10,935,100 16,062,294
$ 16,062,294 $ 16,062,294
DUE FROM AND DUE TO
Interfund receivables and payables generally result from recording the excess fees associated with
Tax Collector 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. The State Court of Administration fund also allocates unused funds back
to the General Fund at year end. 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, 2008
JJo/1fdf
131
CIL
I
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES - CONTINUED
Due from and due to other funds at September 30, 2008 were as follows:
Due From Due To
Governmental Activities:
General Fund $ 1,833,921 $ 1,367,995
Road Impact Districts 265
Road Construction 8,425 1,284
Other Governmental Funds:
Road Districts 1,450 14
Unincorporated Area MSTD 459,904 67,095
Community Development 160 14,354
Water Management and Pollution Control 54,524
Grants and Shared Revenues 2,851 1,035,183
Improvement Districts 53,692
Fire Control Districts 41,880
Lighting Districts 6,523
911 Enhancement Fee 126,894
Tourist Development 147,144 270
State Housing Initiative Partnership 65
State Court Administration 28,194 551,569
Conservation Collier 153,110
Court Infonnation Technology 4,670
Other Special Revenue Funds 157 87,858
Capital Improvement Revenue Bonds 26,428
Pooled Commercial Paper Program Loan 4,709
Caribbean Gardens Loan 131,838
Stormwater Improvement Assessment Bonds 1,157
Limited General Obligation Bonds Conservation
Collier Series 2005A 51,695
Forest Lakes Limited General Obligation Bonds 6,938
Parks Improvements 47,002
County-Wide Library Impact Fees 68
Emergency Medical Services Impact Fees 24
Water Management 2,850 324
Other Capital Projects 1,014
Total other governmental funds 1,223,220 I ,888,388
Bnsiness-type Activities:
County Water and Sewer 11,903 8,914
Other Business-type funds:
Solid Waste Disposal 48,996
Emergency Medical Services 197 73
Airport Authority 1,724
Collier Area Transit 20,293
Total other business-type funds 71,210 73
Internal Service Funds 118,495 255
Total All Funds $ 3,267,174 $ 3,267,174
51
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
, 3(( 0 (z{l)~
. 13 A
tJ.-; i
..
.'.,'
NOTE 5 - CAPITAL ASSETS
A summary of capital asset activity for the year ended September 30, 2008 is as follows:
October 1, 2007, Deductions! September 30,
as restated Additions Reclassifications 2008
Governmental Activities:
Capital assets not depreciated:
Land and other nOTIMdepreciable assets $ 286,744,887 $ 30,648,120 $ (6,049,532) $ 311,343,475
Construction in progress 309,189,367 238,891,987 (125,595,705) 422,485,649
Total capital assets not depreciated 595,934,254 269,540,107 (131,645,237) 733,829,124
Capital assets depreciated:
Buildings 255,919,570 13,792,937 21,368,374 291,080,881
Infrastructure 498,114,433 1,851,213 43,135,197 543,100,843
Improvements other than buildings 158,169,493 1,859,682 40,922,724 200,951,899
Machinery and equipment 149,929,207 14,498,538 (13,574,393) 150,853,352
Total capital assets depreciated 1,062,132,703 32,002,370 91,851,902 1,185,986,975
Less accumulated depreciation:
Buildings 62,369,240 8,781,043 (381,744) 70,768,539
Infrastructure 144,025,271 27,084,482 171,109,753
Improvements other than buildings 40,994,193 7,178,598 48,172,791
Machinery and equipment 97,877,688 17,673,556 (13,051,350) 102,499,894
Total accumulated depreciation 345,266,392 60,717,679 (13,433,094) 392,550,977
Total depreciable capital assets, net 716,866,311 (28,715,309) 105,284,996 793,435,998
Total governmental activities
capital assets, net $ 1,312,800,565 $ 240,824,798 $ (26,360,241 ) $ 1,527,265,122
Business-type Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 17,969,146 $ 6,086,308 $ 2,738 $ 24,058,192
Construction in progress 212,660,373 55,343,920 (130,233,130) 137,771,163
Total capital assets not depreciated 230.629,519 61,430,228 (130,230,392) 161,829,355
Capital assets depreciated:
Buildings 123,579,978 4,240,657 2,175,722 129,996,357
Improvements other than buildings 715,871,338 10,209,844 127,022,055 853,103,237
Machinery and equipment 26,263,531 4,365,312 (1,795,848) 28,832,995
Total capital assets depreciated 865,714,847 18,815,813 127,401,929 1,011,932,589
Less accumulated depreciation:
Buildings 52,964,052 3,184,368 (25,230) 56,123,190
Improvements other than buildings 163,028,998 23,128,958 (230,098) 185,927,858
Machinery and equipment 14,666,509 3,370,247 (1,833,654) 16,203,102
Total accumulated depreciation 230,659,559 29,683,573 (2,088,982) 258,254,150
Total depreciable capital assets, net 635,055,288 (10,867,760) 129,490,911 753,678,439
Total business-type activities
capital assets, net $ 865,684,807 $ 50,562,468 $ (739,481) $ 915,507,794
52
JfD(~r
13A
cP-
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 5 - CAPITAL ASSETS - CONTINUED
Schedule of depreciation for fiscal year 2008:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Subtotal
Internal Service Funds
Total Governmental Activities
Water and Sewer
Solid Waste
EMS
Airport Authority
Mass Transit
Total Business-type Activities
NOTE 6 - LONG-TERM OBLIGATIONS
~....
t .1
$
6,623,752
12,807,778
13,390,084
19,058,326
27,442
729,309
7,713,723
60,350,414
367,265
60,717,679
26,609,025
503,961
711,073
831,926
1,027,588
29,683,573
$
$
$
SUMMARY OF CHANGES IN LONG-TERM OBLIGA TrONS
The following is a summary of changes in long-term obligations for the year ended September 30, 2008:
OOO's Omitted
Premium or
October 1, Discount/Loss September 30, Due within
2007 Additions Reductions Amortized, net 2008 one year
Governmental Activities:
Bonds and Loans Payable $ 509,906 $ 75,637 $ (42,936) $ (1,003) $ 541,604 $ 22,332
Arbitrage Rebate 214 464 678
Capital Lease Obligations 897 (144) 753 154
Self-Insurance Claims 11,571 544 (1,829) 10,286 5,552
Net Pension Obligation 1,534 (628) 906
Compensated Absences 19,363 8,460 (6,648) 21,175 10,041
Total $ 541,951 $ 86,639 $ (52,185) $ (1,003) $ 575,402 $ 38,079
Business-type Activities:
Bonds and Loans Payable $ 270,080 $ 2,401 $ (10,110) $ 169 $ 262,540 $ 11,088
Notes Payable 138 2 (67) 73 73
Arbitrage Rebate 1,223 283 1,506
Capital Lease Obligations 68 592 (42) 618 126
Landfill Closure Liability 2,965 (1,150) 1,815
Compensated Absences 2,107 1,715 (1,639) 2,183 1,746
Total $ 276,581 $ 4,993 $ (13,008) $ 169 $ 268,735 $ 13,033
53
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE
Bonds, loans and notes payable at September 30, 2008 were composed of the following:
Governmental Activities Limited General Obligation Bonds
$32,815,000 2005A Limited General Obligation Bonds, Conservation Collier
Program, due in annual installments of $3,285,000 to $4,805,000 through
January I, 2013; interest at 3.00% to 5.00%.
$6,215,0002007 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%.
Total Governmental Activities Limited General Obligation Bonds
Governmental Activities Revenue Bonds
$47,430,000 2002 Capital Improvement Revenue Bonds due in annual
installments of $1,780,000 to $2,830,000 through October I, 2016; interest at
1.60% to 5.00%.
$49,360,0002003 Capital Improvement and Refunding Revenue Bonds due
in annual installments of$I,130,000 to $2,570,000 through October I, 2033;
interest at 2.00% to 4.75%.
$167,200,0002005 Capital Improvement and Refunding Revenue Bonds due
in annual installments of $2,035,000 to $7,240,000 through October 1,2035;
interest at 2.25% to 5.00%.
$102,125,0002003 Gas Tax Revenue Bonds, due in annual installments of
$1,495,000 to $6,865,000 through June 1,2023; interest at 2.00% to 5.25%.
$96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of
$445,000 to $13,985,000 through June 1,2025; interest at 3.00% to 5.00%.
$1,870,000 1997 Naples Park Area Stormwater Improvement Assessment
Bonds due in annual installments of $75,000 to $185,000 through September
1,2012; interest at 6.45% fixed rate.
Total Governmental Activities Revenue Bonds
54
/
J/(D{~
13 A
~
$21,915,000
5,915,000
27,830,000
32,520,000
39,625,000
154,795,000
71,960,000
94,565,000
680,000
394,145,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
Governmental Activities Loans Pavable
$111,346,000 Commercial Paper issued by the Florida Local Government
Finance Commission Pooled Commercial Paper Program, due in installments
of $11,235,000 to $74,325,000 through December 4, 2012; monthly variable
rate for the current fiscal year of 3.60% to 1.52%, collateralized by non ad
valorem revenue.
$12,000,000 Florida Department of Transportation State Infrastructure Bank
Loan, due in annual installments of $1,839,148 to $4,414,096 through
October I, 2012; interest at 2.0%.
$7,000,000 Bayshore Gateway Community Redevelopment Agency Taxable
Non-Revolving Line of Credit, due July 1,2011; quarterly variable interest
for the current fiscal year end of 5.49%.
Total Governmental Activities Loans Payable
Total Governmental Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Governmental Activities Obligations, Net
Less Current Portion of Governmental Activities Obligations
Long-Term Portion of Governmental Activities Obligations, Net
Business-tyoe Activities Revenue Bonds
$13,720,000 2003A Taxable County Water and Sewer Refunding Revenue
Bonds due in annual installments of $740,000 to $2,715,000 through July I,
2009; interest at 2.00% to 3.375%.
$33,630,000 2003B County Water and Sewer Refunding Revenue Bonds due
in annual installments of $1,410,000 to $4,125,000 through July I, 2021;
interest at 4.25% to 5.50%.
$6,605,000 1999A Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $35,000 to $1,035,000 through July I,
2010; interest at 3.00% to 4.25%.
55
I
2(r()/260tf a-
131
;"'"41
l',iij
$85,560,000
12,000,000
5,901,000
103,461,000
$525,436,000
$(562,735)
17,107,361
(376,879)
541,603,747
(22,332,377)
$519,271,370
$740,000
33,630,000
1,540,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$22,855,000 1999B Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $950,000 to $1,875,000 through July I,
2016; interest at 4.00% to 5.125%.
$110,165,0002006 Collier County Water and Sewer Revenue Bonds due in
annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017
through July 1,2036; interest at 4.00% to 5.00%.
Total Business-type Activities Revenue Bonds
Business-type Activities Loans and Notes Pavable
$166,580 County Water and Sewer District agreement with private developer
payable through use of water and sewer system development fee credits.
Non interest bearing agreement.
$14,547,667 County Water and Sewer District State Revolving Fund Loan,
interest payable at 4.25% payable in 20 semiannual payments commencing
October 1, 1992.
$13,292,898 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.65% payable in 40 semiannual payments commencing
January 15, 1999.
$22,238,677 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
November 15,2001.
$5,160,675 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
October 15,2004.
$6,560,956 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
January 15,2005.
$29,224,004 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.95% payable in 40 semiannual payments commencing
June 15,2006.
$10,525,509 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.90% payable in 40 semiannual payments commencing
September 15, 2006.
56
l
3ao(1ft'9 ~
13A r:
$12,810,000
110,165,000
158,885,000
72,707
3,829,418
7,722,455
15,594,001
4,362,272
5,542,177
26,430,765
9,120,428
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$6,895,629 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.96% payable in 40 semiannual payments commencing
July 15,2009.
$5,445,223 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.92% payable in 40 semiannual payments commencing
December 15, 2005.
$5,188,500 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.74% payable in 40 semiannual payments commencing
November 15,2007.
$7,123,496 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.75% payable in 40 semiannual payments commencing
April 15, 2008.
$11,476,700 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
August 15,2008.
$11,478,810 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
October 15, 2009.
$3,294,890 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.79% payable in 40 semiannual payments commencing
December 15, 2009.
Total Business-type Activities Loans and Notes Payable
Total Business-type Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Business-type Activities Obligations, Net
Less Current Portion of Business-type Activities Obligations Payable from
Umestricted Assets
Less Current Portion of Business-type Activities Obligations Payable from
Restricted Assets
Long-Term Portion of Business-type Activities Obligations, Net
57
3~/tf{
13 A
CI-
.
$1,137,883
4,838,273
3,599,671
4,875,876
8,264,582
8,448,629
64,059
103,903,196
262,788,196
(778,903)
5,030,629
(4,427,386)
262,612,536
(11 ,087, 179)
(72,707)
$251,452,650
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
~ ~
;J(8(o1
13 A
f~
NOTE 6 - LONG-TERM DEBT - CONTINUED
SUMMARY QF DEBT SERVICE REQUIREMENTS TQ MATURITY
The total annual debt service requirements to maturity of long-term debt, excluding compensated
absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows:
Governmental Activities
Fiscal Limited General Loans and
Year Obligation Bonds Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest Principal Interest
2009 $ 4,355,000 $1,185,881 $ 16,020,000 $ 18,201,347 $ 1,957,377 $ 3,556,668 $ 45,276,273
2010 4,490,000 1,009,213 16,550,000 17,637,168 1,839,148 3,674,897 45,200,426
2011 4,705,000 783,650 17,120,000 17,004,707 7,776,930 3,571,729 50,962,016
2012 4,940,000 546,994 17,900,000 16,214,913 13,148,449 2,998,001 55,748,357
2013 5,185,000 298,525 17,590,000 15,390,381 78,739,096 645,720 117,848,722
2014-18 2,125,000 650,675 83,925,000 65,225,725 151,926,400
2019-23 2,030,000 177,225 102,815,000 42,612,067 147,634,292
2024- 28 64,960,000 19,036,657 83,996,657
2029-33 36,215,000 9,199,366 45,414,366
2034-38 21,050,000 1,381,536 22,431,536
Totals $ 27,830,000 $4,652,163 $ 394, 145,000 $221,903,867 $103,461,000 $14,447,015 $ 766,439,045
Business-type Activities
Fiscal Loans and
Year Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest
2009 $ 4,905,000 $ 7,357,974 $ 6,254,886 $ 2,774,282 $ 21,292,142
2010 5,125,000 7,138,343 6,106,429 2,835,302 21,205,074
2011 4,885,000 6,895,082 6,231,370 2,646,300 20,657,752
2012 5,125,000 6,658,256 6,426,429 2,451,244 20,660,929
2013 5,380,000 6,409,782 5,567,145 2,249,928 19,606,855
2014-18 23,130,000 28,180,744 30,377 ,830 8,707,538 90,396,112
2019-23 22,200,000 23,213,276 27,387,040 4,339,307 77,139,623
2024-28 27,975,000 17,442,700 14,978,616 926,278 61,322,594
2029-33 35,170,000 10,245,062 573,451 11,837 46,000,350
2034-38 24,990,000 2,256,373 27,246,373
Totals $ 158,885,000 $115,797,592 $ 103,903,196 $ 26,942,016 $405,527,804
LEGAL DEBT MARGIN
The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.
58
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
'3/10( (J T
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ct
..".
..
NOTE 6 - LONG-TERM DEBT - CONTINUED
RESTRICTIVE COVENANTS
According to the official statements and County resolutions authorizing the issuance of the Series
2002, 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as
the Series 2003 and 2005 Gas Tax Revenue Bonds, the issues are payable from and secured by
liens on the local government half-cent sales tax and gas tax revenues, respectively.
During fiscal year 2008 Collier County experienced insurer rating downgrades on its Series 2002,
2003 and 2005 Capital Improvement Revenue Refunding Bonds. The covenants related to these
issues require that in the event of an insurer downgrade below "A", by either Moody's or
Standard and Poor's, the County must fund a cash reserve to replace the surety within twelve
months. By March 31, 2009 Collier County will be required to fund the reserve in the amount of
$8,026,972. The total amount of funding required is $19,570,778 and the covenants require that
this be in place by November 30, 2009, if the ratings of the insurers are not upgraded. The
County expects to use internal borrowings to achieve the required reserve funding. All required
principal and interest payments have been made in a timely manner on these bonds and the
County's pledged coverage on these bonds is 1.55.
The covenants of the loan agreement authorizing the Florida Local Government Finance
Commission loans include appropriation in the annual budget amounts of non ad valorem
revenues or other legally available funds sufficient to satisfY the loan repayments.
Tax increment revenues are pledged for the repayment of the Bayshore Gateway Community
Redevelopment Agency's taxable, non-revolving line of credit. Tax increment collections were
$2,293,300 for the period ended September 30, 2008. Tax increment revenues must cover annual
debt service requirements by 150%. In the opinion of management the agency was in compliance
with this covenant for the year ended September 30, 2008.
Water and sewer revenue bonds are payable solely from and secured by a first lien upon and
pledge of the net revenues and certain other fees and charges derived from operation of the
County's water and sewer system. The pledge of net revenues derived by the County from the
operation of the system does not constitute a lien upon the system or any other property of the
County. The covenants of the resolutions authorizing the County Water and Sewer District
Bonds, Series 2006, 2003A, 2003B, 1999A and 1999B include an obligation for the County to
fix, establish and maintain such rates and collect such fees, rentals or other charges for the
services and facilities of the water and sewer system, and to revise the same whenever necessary,
so as to provide in each year net revenues, as defined in the resolutions authorizing the revenue
bonds, which together with system development fees and special assessment proceeds received
shall be adequate to pay at least 125% of the annual debt service requirements for the Water and
Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at
least 100% of the annual debt service for the bonds. In addition, bond covenants require a
renewal and replacement amount equal to $300,000 to be set aside in the County Water and
Sewer District Funds. In the opinion of management, the water and sewer funds were in
compliance with these covenants for the year ended September 30, 2008.
59
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3{c~( 01
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NOTE 6 - LONG-TERM DEBT - CONTINUED
The Collier County Water and Sewer District has several State Revolving Fund loans outstanding
with the Florida Department of Environmental Protection. These loans are collateralized by a
lien on pledged revenues consisting of net revenues from the operations of the County Water and
Sewer System and system development fees. The lien shall be subordinate in all respects to liens
placed upon pledged revenues established by bonded indebtedness. The County Water and
Sewer District shall maintain rates and charges for services which together with system
development fees sufficient to pay 115% of the annual debt service requirements on the loans, as
well as satisfY the coverage requirements of all senior debt obligations. In the opinion of
management, the State Revolving funds were in compliance with these covenants for the year
ended September 30, 2008.
INTEREST CAPITALIZED
Interest costs on long-term debt, including capitalized leases, incurred and capitalized during the
year ended September 30, 2008 were as follows:
Business-type Activities
Total Interest
Cost Incurred
$10,604,479
Interest Cost
Capitalized
$1,710,416
Net Interest
Expense
$8,894,063
LEASE OBLIGATIONS
Capitalized leases payable at September 30, 2008 amounted to $1,370,425. These obligations,
which are collateralized by equipment and vehicles, have annual installments ranging from
$35,230 to $345,780 including interest ranging from 4.26% to 7.45% and mature through 2015.
Future minimum capital lease obligations as of September 30, 2008 were as follows:
Governmental Business-type
Activities Activities Total
2009 $ 194,439 $ 151,341 $ 345,780
2010 190,660 151,341 342,001
2011 190,660 151,341 342,001
2012 77,920 131,773 209,693
2013 77,920 98,830 176,750
2014 - 15 113,150 113,150
Total minimum lease payments 844,749 684,626 1,529,375
Less amount representing interest (92,209) (66,741) (158,950)
Present value ofminimwn
.
lease payments $ 752,540 $ 617,885 $ 1,370,425
60
~,;
~"',.
,,'::..,:
" '/
",
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3/10/ 1J7
13 A
CL
. ".
.
NOTE 7 - CONDUIT DEBT OBLIGATIONS
COMPONENT UNIT CONDUIT DEBT
The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority
and Educational Facilities Authority, all component units of Collier County, issue debt
instruments for the purpose of providing capital financing to independent third parties. Industrial
development revenue bonds have been issued to provide financial assistance to public entities for
the acquisition and construction of industrial and commercial facilities. Housing revenue bonds
have been issued for the purpose of financing the development of multi-family residential rental
communities. The health facility revenue bonds were issued to provide financing for the
construction of health park facilities. The educational facility revenue bonds were used to provide
financing for the construction of educational facilities. These bonds were secured by the financed
property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the
debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor
the County is obligated in any manner for repayment of the bonds. Therefore, the bonds are not
reported as liabilities in the accompanying financial statements.
As of September 30, 2008 the outstanding principal amount payable on all component unit
conduit debt was $311,648,943 and is made up ofthe following:
Industrial development revenue bonds
Housing revenue bonds
Health facilities revenue bonds
Educational facilities revenue bonds
$ 64,307,428
73,520,000
89,190,000
84,631,515
$ 311,648,943
Total
NOTE 8 - DEFEASED DEBT
The County has defeased certain outstanding bond issues by placing the proceeds of new bonds
in irrevocable trusts to provide for all future debt service payments on the defeased debt.
Accordingly, the trust accounts and the defeased bonds are not included in the County's financial
statements. At September 30, 2008 the following issues were considered defeased:
Original Debt Defeased Bonds
Defeased Outstanding
$ 12,245,000 $ 4,595,000
4,360,000 4,265,000
$ 16,605,000 $ 8,860,000
Defeased Bonds
Original Debt Outstanding
$ 22,000,000 $ 6,770,000
Governmental Activities
1986 Capital Improvement Program Revenue Bonds, Sub-Series 5 Mode A
2003 Capital Improvement and Refunding Revenue Bonds
Total Governmental Activities Defeased Debt
Business-type Activities
1983 County Water and Sewer District Refunding Bonds
61
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
1HO[OC(
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f
NOTE 9 - PENSION PLAN OBLIGATIONS
RETIREMENT PLAN
Substantially all full time and part time employees of the County are eligible to participate in the
State of Florida Retirement System (the System), a cost sharing, multiple employer program
administered by the State of Florida, Division of Retirement. The System provides two retirement
plans from which eligible employees can choose: the Pension Plan (defined benefit) and the
Investment Plan (defined contribution). The County follows the provisions of GASB 27,
Accounting for Pensions by State and Local Governmental Employers, as described in the
following disclosure.
PLAN DESCRIPTION
Employees who are regular risk members and retire at or after age 62 with 6 years of credited
service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable
monthly for life, equal to 1.6 percent of their average final compensation for each year of credited
service. Final average compensation is the employee's average of the five highest years of salary
earned during credited service. Vested employees may retire before age 62 and receive benefits that
are reduced 5 percent for each year prior to normal retirement age or date. The System also
provides death and disability benefits as well as annual cost-of-living adjustments to plan
participants and beneficiaries. The Florida Legislature established the System under Chapter 121,
Florida Statutes and has sole authority to amend benefit provisions.
Special Risk Class members qualifY for normal retirement with 6 years of special risk service and
age 55 or with 25 years of special risk service at any age. The monthly benefit payable is equal to
2-3 percent of their average final compensation for each year depending on the percent in effect
during the service period. Vested employees may retire before age 55 and receive benefits that are
reduced 5 percent for each year prior to normal retirement age or date.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative method
for payment of retirement benefits for a specified and limited period for members of the System,
effective July 1, 1998. Under this program, the employee may retire and have their benefits
accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work
for a System employer. The act of participating in the program does not change the individual
employee's employment conditions. When the DROP period ends, a maximum of 60 months,
employment must be terminated. At the time of termination of employment, the employee will
receive payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
62
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3ftJ(a<t
13 A
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"
NOTE 9 - PENSION PLAN OBLIGATIONS - CONTINUED
PLAN DESCRIPTION - CONTINUED
The System publishes an annual report that provides ten-year historical trend information regarding
progress made in accumulating sufficient assets to pay benefits when due. The report may be
obtained by writing the Division of Retirement, Research, Education and Policy Section, 1317
Winewood Boulevard, Tallahassee, Florida 32315-9000, or by calling (866) 738-2366, or accessing
their internet site at www.dms.mvfIorida.com.
FUNDING POLICY
The System is non-contributory for employees and the County is required to contribute at an
actuarially determined rate. The current rate is 20.92% for special risk employees, 16.53% for
county elected officials, 9.85% for regular employees, 13.12% for senior management and 10.91%
for DROP employees of annual covered payroll. The contributions of the County are established by
the State Legislature and therefore subject to amendment. The County's contributions to the
System for the years ending September 30, 2008, 2007 and 2006 are represented in the table below.
The County's contributions were equal to the required contributions for each year.
FY-2008 FY -2007 FY -2006
General Fund $ 18,842,653 $ 18,678,498 $ 15,763,159
Road Construction 169,894 160,080 124,015
Community Redevelopment 24,511 22,013 9,231
County Water and Sewer 1,549,255 1,673,956 1,263,952
Nonmajor Governmental Funds 4,825,491 4,846,006 2,927,430
Nonmajor Enterprise Funds 2,593,107 2,719,220 1,846,197
Internal Service Funds 204,365 207,274 160,116
Totals $ 28,209,276 $ 28,307,047 $ 22,094,100
63
.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTEIO-TRANSFERS
Transfers for the year ended September 30, 2008 were as follows:
Transfers from Fund
Transfers to Fund
Governmental Activities:
General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Nonmajor Business Type
General Fund
Nonmajor Governmental Funds
Nonmajor Business Type
Road Construction
Nonmajor Governmental Funds
Nonmajor Governmental Funds General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Road Construction
Community Redevelopment
Business-type Activities:
County Water and Sewer
General Fund
Nonmajor Governmental Funds
General Fund
Nonmajor Governmental Funds
Road Construction
County Water and Sewer
Nonmajor Business-type
Totals
Jto[ of1
13 A
C'--
.-
"
Amount
$ 24,000,000
62,391,1 05
6,303
22,650,217
248,000
14,714,800
2,000,000
200,000
271,979
3,957,236
621,722
31,949,703
64,300
3,650,819
925,700
470,367
84,400
1,338,340
153,600
$169,698,591
Transfers between funds move unrestricted revenues collected in the General Fund to finance
operating and capital programs accounted for in other funds in accordance with budgetary
authorizations and to move receipts restrictCjl to debt service from the funds collecting the
receipts to the debt service fund as payments become due.
NOTE 11 - NET ASSETS/FUND BALANCES
Net assets represent the difference between total assets and liabilities. Net assets are categorized
as follows:
Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the
acquisition of these assets and net of depreciation is reported separately in the net assets section.
64
,..',
. .
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
t/ltJ!Oq
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...
W
FJI
NOTE 11- NET ASSETS/FUND BALANCES - CONTINUED
Restricted for growth related capital expansion: Impact fee and system development charges
restricted for growth related capital expansion.
Restricted for transportation capital projects: Gas taxes and other revenues restricted for
transportation capital improvements.
Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the
purchase of environmentally sensitive land.
Restricted for Tourist development: Tourist development tax proceeds are restricted for tourist
related activities.
Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and
have been funded by operating transfers from the appropriate funds. The use of monies in the
sinking fund is restricted to the payment of principal and interest on long-term debt.
Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of
County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund
is restricted to funding the cost of additions, replacement or major repair of water and wastewater
capital assets.
Unrestricted: Balances are not restricted for specific purposes.
The following categories are used for reporting governmental fund balances in the fund financial
statements.
Fund Balances ReservedlUnreserved
Reserved for prepaid costs: Balances represent insurance, travel and other expenses paid in
advance and which are not considered available and spendable resources.
Reserved for inventory: Balances represent items which are not considered available and
spendable resources.
Reserved for advances to other funds: Balances represent long-term advances made to other
funds which do not constitute expendable and available financial resources.
Reserved for encumbrances: Balances are segregated for expenditure upon vendor performance.
Reserved for debt service: Balances represent monies legally restricted to the payment of
principal and interest on long-term debt.
65
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2008
~fro[ o<f
13 A
U-
I
NOTE II - NET ASSETSIFUND BALANCES - CONTINUED
Unreserved, reported in general fund: Balances in the general fund not reserved for specific
purposes.
Unreserved, reported in special revenue funds: Balances in the special revenue funds not reserved
for specific purposes.
Unreserved, reported in debt service funds: Balances in the debt service funds not reserved for
specific purposes.
Unreserved, reported in capital project funds: Balances in the capital project funds not reserved
for specific purposes.
NOTE 12 - RISK MANAGEMENT
The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal
service fund is maintained by the County to administer insurance activities relating to workers'
compensation, health and property and casualty, which covers general, property, auto, public
official and crime liabilities. The County self insurance program covers operations of the Board
and the constitutional officers, 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.
Auto liability claims
Employee health claims
Workers' compensation claims
County's Coverage
$50,000 - $500,000
(5% Named Storm)
$200,000
$175,000
$350,000
Excess Carrier's Coverage
$50,000 - $125,000,000
Claim Type
Property and casualty claims
$200,000 - $2,000,000
$175,000 - $2,000,000
$350,000 - $25,000,000
The aggregate loss exposure on casualty claims is $1,160,000. Settled claims have not exceeded
the insurance provided by third party carriers in any of the past three years. All divisions of the
County, excluding the Sheriff, participate in this program. Charges to operating departments are
based upon amounts believed by management to meet the required annual payouts during the
fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended
September 30, 2008 the operating departments were charged $35,196,296 for workers'
compensation, health and property and casualty self-insurance programs.
66
"
,.
,l-. ~ '...."
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3jW{O Y
, 13 A
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Hf
NOTE 12 - RISK MANAGEMENT - CONTINUED
The claims loss reserve for workers' compensation, health and property and casualty of
$8,192,000 reported at September 30, 2008 was calculated by third party actuaries based upon
GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be
reported when it is probable that a loss has been incurred and the amount of that loss can be
reasonably estimated. The estimated liabilities for unpaid losses related to workers'
compensation and property and casualty were discounted at 3.5%. Claims loss reserves of
$3,458,207 are recorded as current liabilities.
The Sheriff participates in the Statewide Florida Sheriffs Self-Insurance Fund for its professional
liability insurance. The fund is managed by representatives of the participating Sheriff offices
and provides professional liability insurance to participating Sheriff agencies. The Florida
Sheriffs Self-Insurance Fund provides liability insurance coverage subject to the following
limitations: $3,100,000 for any claim involving a single individual, $3,200,000 for any incident
which involves multiple claims and aggregate, $3,500,000 ultimate net loss per Sheriff during
any policy period.
The Sheriff also participates in the Statewide Florida Sheriffs Self-Insurance Fund program for
workers' compensation coverage. The Florida Sheriffs Association Workers' Compensation
Insurance Trust (FSA WIT) is a limited self-insurance fund providing coverage for the first
$350,000 of every claim. Re-insurance is provided through a third party insurer for all claims
exceeding $350,000 up to $10,000,000 and an aggregate of $500,000 depending on type of
bodily injury. Settled claims have not exceeded the insurance provided by third party carriers in
any of the past three years.
Premiums charged to participating Sheriffs are based upon amounts believed by Fund
management to meet the estimated annual payouts during the fiscal year and to pay for the
estimated operating costs of the program. All liabilities associated with these self-insured risks
are reported in the basic financial statements of the Statewide Florida Sheriff's Self-Insurance
Fund. The Sheriff cannot be additionally assessed for claims paid by the program.
The Sheriff has also established a self-funded employee health plan. An internal service fund is
used to account for the activities of the plan. Excess coverage has been purchased which
provides specific claim excess coverage for anyone incident exceeding $150,000 up to
$1,000,000. Payments to the internal service fund are based on actuarial estimates of amounts
needed to pay prior year and current year claims.
The claims loss reserve for health of $2,094,000 reported at September 30, 2008 was calculated
by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires
that a liability for claims be reported when it is probable that a loss has been incurred and the
amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is
recorded as a current liability.
67
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
?J{ro(oq
131
0.--
&1
NOTE 12 - RISK MANAGEMENT - CONTINUED
CHANGES IN SELF-INSURANCE CLAIMS PAYABLE
Changes in the self-insurance claims payable for fiscal years 2007 and 2008 were as follows for
the County and Sheriff self-insurance programs:
Property and Group Workers'
Casualty Health Compensation Total
Balance at September 30, 2006 $ 3,097,000 $ 4,275,000 $ 3,886,000 $ 11,258,000
Current year claims incurred and
changes in estimates 1,870,096 38,158,691 723,054 40,751,841
Claim payments (2,030,096) (37,771,691) (637,054 ) (40,438,841)
Balance at September 30, 2007 2,937,000 4,662,000 3,972,000 11,571,000
Current year claims incurred and
changes in estimates 561,528 25,472,650 (608,384 ) 25,425,794
Claim payments (1,268,528) (24,928,650) (513,616) (26,710,794)
Balance at September 30, 2008 $ 2,230,000 $ 5,206,000 $ 2,850,000 $ 10,286,000
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The Board and the Tax Collector administer a single-employer defined benefit
plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that
subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick
leave remaining at the time of retirement and have completed 15 years of continuous service with
the Board. In addition, the retiree must retire from the County, be at least 55 years of age or have
completed 30 years of service under the Florida Retirement System (FRS) and be eligible to
receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to
100% subsidy toward the cost of coverage under the active plan. The Tax Collector offers an
OPEB plan that subsidizes 100% the cost of health care for employees with 10 years of service,
between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement.
Additionally, in accordance with Florida Statute 112.0801, County employees who retire and
immediately begin receiving benefits from the FRS have the option of paying premiums to
continue in the County's health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, County plan participation
consisted of:
OPEB plan participants
Retirees receiving benefits
2,352
82
68
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
g/ro!07
13 A
~
;
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Funding Policv - The County has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the County contributed $158,312 to the OPEB Plan.
Annual OPEB Cost and Net OPEB Obligation - The annual cost (expense) of the County's
OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal
cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years.
The following table shows the components of the County's annual OPEB Plan cost for the year,
the amount actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year
$
514,423
514,423
(158,312)
356,111
$
356,111
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 31 %
of the annual OPEB cost. Information for the two preceding fiscal years is not available as
GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for
benefits was $3,769,254, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $3,769,254. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $173.5 million, and the ratio of the UAAL to the
covered payroll was 2.2%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates
of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the
annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future.
69
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
8(lIJlffi.
13A
cJ.-,
I
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
Plan Description - The Sheriff administers a single-employer defined benefit plan (OPEB Plan)
and can amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost
of health care for its retirees who have 6 years of creditable service with the Sheriff and who
receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes
approximately 20% for single coverage and 21% for family coverage for qualifYing individuals.
Additionally, in accordance with Florida Statute 112.0801, Sheriffs employees who retire and
immediately begin receiving benefits from the FRS have the option of paying premiums to
continue in the Sheriffs health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEB plan participants 1,374
Retirees receiving benefits 69
Funding Policv - The Sheriff has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the Sheriff contributed $469,998 to the OPEB Plan.
70
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3ftofoCl
13 A
el>
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NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Annual OPEB Cost and Net OPEB Obligation - The annual cost (expense) of the Sheriffs OPEB
Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year
and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following
table shows the components of the Sheriffs annual OPEB Plan cost for the year, the amount
actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year
$
1,019,866
1,019,866
(469,998)
549,868
$
549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 46%
of the annual OPEB cost. Information for the two preceding fiscal years is not available as
GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for
benefits was $9,354,088, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $9,354,088. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $128.2 million, and the ratio of the UAAL to the
covered payroll was 7.3%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates
of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the
annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future.
71
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
?;({+~
13 A
cL
R
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
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 SoUd Waste Disposal and
Facility Criteria and GASB Statement 18, Accounting for Municipal SoUd Waste Landfill
Closure and Postclosure Care Costs, a liability has been established representing amounts
estimated to be spent on postclosure relating to cells for which Collier County is responsible.
The County's estimated liability in connection with the landfills is included in the proprietary
funds statement of net assets. The liability decreased by $1,149,949 during the fiscal year
primarily due to the reclamation and rehabilitation of approximately 16 acres at the Naples
landfill site for which Collier County had been responsible. The acreage is now active and
responsibility for the related closure and postclosure costs rest with the company operating the
landfill. 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
72
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
af~/01
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NOTE 14 - LANDFILL LIABILITY - CONTINUED
current cost. The County has funded an escrow account with Fifth Third Bank in the amount of
$10,000 to comply with Rule 62-701.630, Florida Administrative Code for the inactive Eustis
A venue Landfill site. These funds bear interest and are restricted for the exclusive use of the
Eustis Avenue Landfill site's long-term care. There were no deposits, other than interest, or
withdrawals from this account in fiscal year 2008.
NOTE 15 - SIGNIFICANT CONTINGENCIES
LITIGA nON
The County is involved as defendant or plaintiff in certain litigation and claims arising in the
ordinary course of operations. In the opinion of County legal counsel, the range of potential
recoveries or liabilities will not materially affect the financial position of the County. Litigation
is pending between the Clerk of the Circuit Court and the Board of County Commissioners
regarding the role of the Clerk of the Circuit Court as County Auditor, the Clerk's status as a
budget officer versus a fee officer and the Clerk's entitlement to investment earnings on County
funds. See Note 19, Subsequent Events, for further discussion. No financial liability has been
determined at this time.
STATE AND FEDERAL GRANTS
Grant monies received and disbursed by the County are for specific purposes and are subject to
review by the grantor agencies. Such audits may result in requests for reimbursement due to
disallowed expenditures. Based upon prior experience, the County does not believe that such
disallowances, if any, would have a material effect on the financial position of the County.
ARBITRAGE REBATE
In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction
funds in excess of the interest costs incurred are required to be rebated to the federal government.
The total arbitrage rebate liability as of September 30, 2008 was $2,183,332, of which $677,752
related to governmental activities and $1,505,580 to business-type activities.
73
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
3~1 D~
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NOTE 16 - SIGNIFICANT COMMITMENTS
CONSTRUCTION COMMITMENTS
Collier County has active construction projects as of September 30, 2008. The projects include
road construction, governmental facilities and utilities improvements. At year end the County's
commitments with contractors includes the following:
Future
Category Commitments
Governmental Activities:
Road Impact Districts Roads $ 11,702,664
Road Construction Roads 48,700,426
Other Governmental Parks 1,513,476
Roads 2,613,786
Buildings 33,187,184
Beach restoration 770,996
Storm water drainage 5,767,666
Business-type Activities:
County Water and Sewer Utilities 17,815,982
Other Enterprise Landfill expansion and closure 2,386,859
Airports 534,581
$ 124,993,620
NOTE 17 - FUND DEFICITS
The following funds had fund balance deficits at September 30, 2008:
County-Wide Library Impact Fees - The unreserved fund balance deficit of $(959,428) is
primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies 1000ned to the impact fee
fund for the construction of growth necessitated library facilities. It is anticipated that the deficit
will be covered by future years' impact fee revenues.
Emergency Medical Services Impact Fees - The unreserved fund balance deficit of $(340,051) is
primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies loaned to the impact fee
fund for the construction of growth necessitated emergency medical services facilities. It is
anticipated that the deficit will be covered by future years' impact fee revenues.
74
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
afof(j7
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NOTE 18 - SPECIAL ITEM
On August 14, 2008 the Circuit Court issued a ruling in Case 07-1056-CA requiring that the
Clerk of the Circuit Court post a bond in the amount of $3,239,000 with the registry of the court
not later than August 29, 2008. Bond was posted by the Clerk of the Circuit Court in the form of
cash on August 26,2008, including applicable registry fees of $48,593.
NOTE 19 - PRIOR PERIOD ADJUSTMENT
As of September 30, 2007, the County Water and Sewer District had $1,475,577 of planning
costs capitalized as construction in progress. These costs were associated with the development
of long range plans for the District. These costs cannot be specifically identified to a particular
capital asset and as such should not have been capitalized. A prior period adjustment has been
recorded to remove these costs from construction in progress.
Net Assets, September 30, 2007
Adjustment to construction in progress
Net Assets, September 30,2007, as restated
County Water
and Sewer
$ 687,363,264
(1,475,577)
$ 685,887,687
Had the adjustment been recorded in the 2006-2007 fiscal year, the change in net assets for the
fiscal year ended September 30, 2007 for the County Water and Sewer Fund would have been
decreased from $38,787,418 to $37,311,841 and would have decreased from $43,074,858 to
$41,599,281 for the total of all Business-type funds.
NOTE 20 - SUBSEOUENT EVENTS
On November 21,2008 Collier County issued the $13,244,204 Series 2008 Conservation Collier
Limited General Obligation Bonds. The bonds were issued for the purpose of purchasing
approximately 2,511.9 acres of environmentally sensitive land known generally as Pepper Ranch.
On September 25,2008 the Court issued oral ruling in Case 07-1056-CA dated October 1,2008
requiring the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash bond
previously deposited into the Court registry. On October 6, 2008 the Second District Court of
Appeal reversed the Court orders and remanded back to the Twentieth Judicial Circuit for a full
evidentiary hearing related to maintaining the automatic appellate stay and the propriety of a
bond, if any, and the amount, if any, of such a bond. On December 1, 2008, the Twentieth
Judicial Circuit Court conducted the full evidentiary hearing pursuant to the mandate of the
Second District Court of Appeal and on December 18, 2008 the Court Ordered and Adjudged
that the Clerk cause to be released to the County's General Fund the $3,239,000 cash bond
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December 1, 2008 are stayed during
75
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
311{ df
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t
NOTE 20 - SUBSEOUENT EVENTS - CONTINUED
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.310(b)(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January 15,2009, the Clerk shall account, in writing, to the Board of County Commissioners the
total amount of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January 15,2009, the Clerk shall transfer from his
accounts, 2/3rds of the income received on County funds for the previous calendar month, to the
Board's General Fund. The Court found that a cash or surety bond was inappropriate.
In an opinion filed on January 30, 2009 the Second District Court of Appeal of Florida, in Case
2D08-3126, reversed and remanded the trial court's December 18, 2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute Section 28.33 as "clear and unambiguous" in authorizing the Clerk
of Courts to claim as income interest earned on funds that the Clerk, as custodian of County
funds, has invested on behalf of the County. This opinion will not be final until all proceedings
are concluded.
76
REQUIRED SUPPLEMENTARY
INFORMATION
lJ!/b!Fiq ~
13 A ~I
Required Supplementary Information
Collier County, Florida
Schedule of Funding Progress
for the Retiree Health Plan
~J&rdf
13 A
Actuarial
Accrued VAAL as a
Actuarial Actuarial Liability - Percentage of
Valuation Value of Projected Unfunded Funded Covered Covered
Agency Date Assets Unit Credit AAL Ratio Payroll Payroll
Board and Constitutionals 1011/2007 $ $ 3,769,254 $ 3,769,254 0.0% $ 173,538,752 2.2%
(Non-Sherifl)
Sheriff 1011/2007 9,354,088 9,354,088 0.0% 128,182,543 7.3%
Total $ $13,123,342 $ 13,123,342 $ 301,721,295
78
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13 A ,1
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 tbe 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 ofthe 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 tbe 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 tbe 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 witbin municipal service taxing district for
street lighting.
911 ENHANCEMENT FEE - To account for fees levied on each telephone access line in tbe County
for the enhancement of the 911 emergency telephone system.
PUBLIC RECORDS MODERNIZATION - To account for the statutory surcharge on recording
documents to be paid to the Clerk of tbe Circuit Court for the modernization of the Clerk's official
records management system.
TOURIST DEVELOPMENT -To account for the 4% tourist development tax.
STATE HOUSING INITIATIVE PARTNERSHIP - To account for state revenues received to
provide affordable residential housing for very low to moderate income persons and tbose 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 tbereon to be expended for the restoration
and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area.
13 A
Special Revenue Funds - Coutinued
UTILITY FEE - To account for fees to be used to effectively and efficiently regulate private water and
wastewater utilities operating within tbe unincorporated areas of Collier County and the Clty of Marco
Island.
CONSERVATION COLLIER - To account for the acquisition and management of environmentally
sensitive lands.
IMP ACT FEE ESCROW - To account for impact fees relating to certain projects under construction
until permits are issued.
COURT INFORMATION TECHNOLOGY FEE - To account for the accumulation of resources to
enhance and increase access to court information.
COURT SERVICES - To account for the accumulation of revenues associated with the function of
the local court system.
UNIVERSITY EXTENSION - To account for fund accumulation to meet the educational goals of
the Collier County UF /IF AS extension.
COURT FACILITIES FEE - To account for the accumulation of resources to improve court
facilities.
AFFORDABLE HOUSING - To account for fees to be used to provide for affordable housing
related projects.
OTHER SPECIAL REVENUE FUNDS - To account for tbe accumulation of resources for the
following programs:
Miscellaneous Florida Statutes Fee Collections
Adoption Awareness
Teen Court
Animal Control
Public Library
Law Library
Inmate Welfare
County Drug Abuse
Law Enforcement Training
Euclid and Lakeland Assessment
Legal Aid Society
Federal Equitable Sharing
Domestic Violence
Juvenile Assessment Center
Driver Education
Crime Prevention
Freedom Memorial
Debt Service Funds
GAS TAX REVENUE BONDS - To account for tbe accumulation of resources and payments of
interest and principal on long-term debt incurred in tbe refunding of the 1986 Road Improvement
Revenue Bonds.
CAPITAL IMPROVEMENT REVENUE BONDS - To account for the accumulation of resources
and payment of interest and principal on long-term debt incurred on various Revenue Bonds.
POOLED COMMERCIAL PAPER PROGRAM To account for the accumulation of resources and
payment of interest and principal on the Commercial Paper loan program.
CARIBBEAN GARDENS LOAN - To account for tbe accumulation of resources and payment of
interest and principal on long-term debt incurred in tbe acquisition of Caribbean Gardens.
'-~'-'-',-
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The Comprehensive Annual Financial Report (CAFR) is prepared each year by the Clerk of the
Circuit Court on behalf of Collier County government.
On the cover:
The new Collier County courthouse annex nearing completion,
Each constitutional office is represented in the insert (from top to bottom):
Clerk of Courts - main courthouse entrance
Tax Collector"s new Wilson Boulevard location
Sheriff's Office star
Property Appraiser's sign at main office location
Office of Supervisor of Elections
13A ~
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2008
COLLIER COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
THOMAS K. HENNING, CHAIRMAN
DONNA L. FIALA, VICE-CHAIRMAN
JAMES N. COLETTA, Jr.
FRED W. COYLE
FRANK HALAS
COUNTY MANAGER
JAMES V. MUDD
COUNTY ATTORNEY
JEFFREY A. KLATZKOW
CLERK OF THE CIRCUIT COURT
AND
CHIEF FINANCIAL OFFICER
DWIGHT E. BROCK
DIRECTOR OF FINANCE AND ACCOUNTING
CRYSTAL K. KINZEL
Prepared by the Finance and Accounting Department
-
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COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS
13A
1
INTRODUCTORY ShCTlON
Transmittal Letter ......................
Certificate of j\chievement .....
Page
..,,\
....,..,..,.....,....,.....xX\-'
HNANCL\L SECTION
Report ofTndcpendent Ccrritled Public Accountants..
.~.~...,.~..~. 1
Management's DIscussion and Analysis (Unaudited) ...
.~~~.~~...~.~.~.~......~.........~. 3
B"~SIC FIN"~NCHL STA TEi\1ENTS:
Statement ofNer .4,ssets,,,,,..,,..............,,.,,...,,...... ...""...'" ..." """...". """"""""..,.. ..."."."."......."...... 14
Statement of /\ctivities.....,.....,.,....... ,.."".,....'.,."., .,....,.". ,.,..,..,..,.,'.,...' ....,..,..,.. ...,.,..,..,. ."..".,...".,..,..,."...... .".16
Balance Sheet - Governmental Funds......."""" "...""".""". """"",,,,,'..,,....' ""..." "..."""""". ""......" ""...""......"...""" """" 18
Reconcilianon of the Balance Sheet of Governmental Funds to the Statement of Net Assets ",,,""""""'..... "........ """""....".""""...'. 1 ~
Statement of Revenues, Expenditures and Changes 111 Fund Balances - Govenunenlal Funds.... ............... ."........ .................... ".. 20
Reconciliation of the Statement of Revenues, Expenditures and Changes 1n I'und Balances of Governmental
hU1ds to the Statement of Activities.".".". ".",,,, , """."". .".""..".. ..".."................""..".." ..'....... ..""......"........ 21
General Fund - Statement of Revenues, Expenditures and Changes In Fund Balances.- Budge! and Actual (Non..GAAP)...... 22
Conununity Redevelopment, Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Non-G/\AP)."."".".".. ...""...."." ' ".".""".""."."..... ."......." ,,'........,......,., '..""..'......,,'
Statement of Net "--\ssets - Proprietary f\mds..".., ".".".." "'" ". "" ".. ."".."."."... """"....."..
Statement of Revenues, Expenses and Changes 111 Fund Net ,\ssets - Proprietary Funds. . """""...,.."" ...."."....
Statement of Cash Flows - Proprietary Funds ."" ". """."....".. .".". ....".".......... "."..."."
Statement of Fiduciary /\ssets and Liabilities - :\gency Funds "" '"..,,''' "......""..."."."...."..."."."..........
Notes to the Financial Statements"."." """.."." """.,,' -." "..."".. ."...........".. "...."....."'" ". ."...
RequU.cd Supplementary Information."."... "."...."".".". "....." ""....."..."."......".".". ....".".... ....."..
25
..,. ..26
.........28
...... 09
......,...,.~ 31
............33
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co:vmlNING .\,-"D INDIV]DU:\L FUND FINANCIAl. :;TAIEMEN'I'S:
Nonmajor Governmental._b"U1ds
Combining Balance Sheet """"..'.,, "."".".,...,.."...,...,..".. ,.,..,.".,..,.,."..,. ,..,..,.. ..,.'.....,.'.,..,...,..".".,...,.",...,..,.....,..,......................".82
Combining Statement of Revenues, Expendirures and Changes U1 FlU1d Balances ..". .".""."......................". ........." ......".."...".."". 90
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and A.crnal (0:on-Gi\:\P) .....................98
Nonmajor Enterprise Funds
Combining Statement of Net Assets ."".".....". """.. .'"" .".".".".".". ."..."."
Combining Statement of Revenues, Expenses and Changes in I'\md 1'-'('t :\ssets....
Combining Statement of Cash Flows... .. ....__ ..."....... ......".......' . . , .... ....."."..
102
123
124
Internal Service FlUlds
Combtning Statement o[::\'et ,\ssets '....... ..".....".... ....,,__...'
Combining Statement of Revenues, Expenses and Changes in Fund ~et
CombtningStatement of Cash Flows... ."....... . __".. ..................
.-\ssets
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129
130
Fiduciary Fnnds
Combining Statement of Fiduciary ,i\ssets ami I.labilities.
Combining Statement of Changes in l\SS('ts and [,iabilities.
134
135
Component Units
Combining Statement of Net :\sscts "..........".."..."..".."......... ...".... ."...... '
Combining Statement of Revenues, Expenditures and Changes l1l Net .\ssers
... ... 13H
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COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS - CONTINUED
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STATISTICAL SECTION (UN1\UDITED)
Net A.ssets by Component........................ .........,..,...,..,.".....,. ....,................ .......,.......,..,.,.,..,..,...................... ................................................,.142
Change in Net i\sscts...........................,...... ........,...........'....... ......,..........,....,. ..,....................'......,.,.................... ...,.................,........................... 143
Governmental i\cnvities Tax Revenues by Source ...........,......'..........,....,.......................,........,.,.....................,...................................,..,.......... 145
l<\llld Balances of Governmental F wlds..,..,...,...........,........,...,.................. ..,................,...,..,.....,.. ..................,..,.....................,....................,..... 146
Changes in Fund Balances of Governmental FLUlds ,........................................................'...........................,............................,....,...........,..,.. 147
j\ssessed Value and Estimated 1\crual Value of Taxable Property ....".........,................ ........................."........................."....".... 148
Property Tax Rates - All Direct and Overlapping Covcrnments .............................................................'.................................................... 149
Principal. fax Payers County - 'W'idc ....................,.................................'.......'.............. ......,.............. ............. .....'..................................,....... ......... 150
Property Tax r ~t:vies and Collecl1ons... ...............,.................,...,. '....,..,......."..................,......,......................... ............... ...... ............. ........ ....... ..... 151
Ratios of Outstanding Debt by 'I'ype ..............,..............................................'.................................................................................................'.... 152
Ratios of General Bonded Debt Outstanding.........,...........,....,.....................,.,.........................,........................................................................ 153
Legal Debt Margin Information...............,............. ................,....,................',.........,. ............,..,..,..........................,............................... ................ 154
Direct and Overlappmg Governmental Activities Debt ........,..................'.........................................................................,............................. 154
Plcdged- Revenue Coverage.,..................................... ................... .................. h........ .... ..... .............................. ......................................................,. 155
Demographic and Economic Statistics ...... .................,.......... ....................,........ .......... ..........................................'...... ..... .......................,.......... 156
Principal Elnployers ..............................,....,...........,.......................'...... ....................,.......................'....................'.... '.................... ..................,...... 157
Full-"rime Equivalent County Employees by Function ...,.....................'.....'........................,..,.....................................................................,.. 158
Operating Indicators by Function ,.......... ..,............... ........,. .....,................,...,..,..................'......'.....'..,...........,.................,..................,.,......,..,.. 159
Capltal i\sset Statist1cs by FWKtlOn .,..,....,.'......, . ..,......,.,..........,...............' ....,.............,......,.....,..,.................. ....,............._.........,....................... 160
SINGLE AUDIT/SCHEDULE or EXPENDITURES or FEDERAL AWARDS AND STATE PROJECTS
Report on Internal Control Over Financial Reporting and on Compliance and Other f\latters
Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards....... ............ .............163
Report of Independent Certified Publici\ccountants on Compliance 'W'ith Requirements Applicable to Each
Major Federal Program and State Project and on Internal Control Over Compliance in Accordance \Vith o:rvrn
Circular A-133, Section 215.97, Florida Statutes, and Chapter 10.SS0, Rules of the Auditor GeneraL...................................................". 165
Schedule of ExpendItures of Federal Awards and State ProJects........................................".......................................................................... 168
Notes to the Schedule of Expenditures of Federal Awards and State Projects.................".........................................................................177
Schedule of Findings and Questioned Costs.,..,.........,..,....,.................. ...... .....,..... ...................'......................................,...... ............................. 180
Schedule of Prior i\ udit Findings."..,......,..,........... ..'.......,..,.,........................'.,......... ....,...,.......................,.................. .............'...',....,.... ...........,.. 195
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THIS PAGE INTENTIONALLY LEFT BLANK
Dwight E. Brock
Clerk of Courts
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"-Geuptyof06Uier
CLERK OF THE CIRCUIT COURT
COLLIER COUNTY qoURT~USE
3301 TAMIAMI TRAIL EAtT
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P.O. BOX 4 t:;044 '"
NAPLES, FLOR1DA'14101-30~4
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Clerk of Courts
Accountant
Auditor
Custodian of County Funds
March 10, 2009
To the Citizens and
Members of the Board of County Commissioners,
Collier County, Florida
It is with extreme pleasure that we present to you, the citizens of Collier County and
Members of the Board of County Commissioners, the Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended September 30, 2008. Responsibility for the
accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the Board of County Commissioners and County management.
The Clerk of the Circuit Court's Finance and Accounting Department, as well as County
management, is responsible for establishing and maintaining internal controls to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against loss
from unauthorized use or disposition, the reliability of financial records for preparing
financial statements, and maintaining accountability of assets. The concept of reasonable
assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by
management. The Clerk is not capable of representing that the internal controls of the
County provide reasonable assurance as his office has been precluded from examining
those controls, in conformance with the court's order, included as pages vii to xxii of this
transmittal letter.
Chapter 11.45 of the Florida Statutes requires an independent certified public
accountant's tinancial audit of counties in the State. For the fiscal year ended September
30, 2008, the report of the independcnt auditor, Ernst and Young LLP, is included in the
financial section of this report. In addition to meeting the requirements set forth in State
statutes, the audit was also designed to meet the requirements of the Federal 1996 Single
Audit Act Amendments and the related OMB Circular A-133.
The Florida Single Audit is required by Florida Statute 2 1 5.97. Information relating to
the Single Audits, including the schedule of expenditures of federal awards and state
projects and the independent auditors' rcport on compliance and internal control over
compliance with requirements applicable to each major federal and state program, are
included in the Federal and State Single Audit Section of this report.
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Fax (239) 252-2755
Email: collierclerk@collierclerk.com
Phone (239) 252-2646
Website: www.collierclerk.com
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Governmental accounting and auditing principles require that management provide a
narrative introduction, overvicw and analysis to accompany the basic financial statements
in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to compliment MD&A and the two should be read in concert.
Collier County's MD&A can be found in the Financial Section immediately following
the independent auditors' report.
PROFnEOFTHEGO~RNMENT
Collier County is a Non-Charter County established in 1923 under the Constitution and
the laws of the State of Florida. The Board of County Commissioners is the legislative
body for Collier County and is made up of five residents elected by voters. [n addition to
the County Commissioners, voters elect the following Jive constitutional officers: the
Clerk of the Circuit Court, Property Appraiser. Sheriff, Supervisor of Elections and Tax
Collector.
Services provided by Collier County include public safety, emergency management,
transportation services, water and wastewater services, parks, libraries and solid waste
collection and disposal.
Budgets are prepared annually. Formal budgetary integration is employed as a
management control device during the year. Budget workshops are conducted during
June with the Board of County Commissioners to form a proposed budget. The Board's
proposed budget is released by July 15. in accordance with Florida Statutes. The budgets
of Constitutional Officers are presented to the appropriate authorizing bodies according
to state statute. Public hearings are then held in September to allow taxpayer input and to
adopt the budget as final.
The General Fund ad valorem tax millage for fiscal year 2008 was reduced to 9% below
the rolled back millage rate, (the rate which generates the same tax revenue as levied in
the previous year, exclusive of new construction) in accordance with property tax reform
measures adopted during special legislative session. The State's special legislative
session also included a constitutional amendment to be voted on in early 2008. On
January 29, 7008 Florida voters approved statutory revisions that included increases to
the homestead exemption, portability of Save Our Homes tax breaks up to $500,000, a
10% cap on future assessment increases for non-homesteaded property starting in 2009
and a new tangible equipment exemption of $75,000,
ECONOMIC CONDITION AND OUTLOOK
Collier County, the state's largest county at ',076 square miles. is on the southwest coast
of Florida, directly west of Miami, With a 2008 population of 332,854 (a 58 percent
increase over the 1998 Ievcl), the County has been considered to be one of the fastest
growing counties in the state over the last ten years. The County's economic base is
concentrated in tourism and agriculture, lishing. ranching and forestry with a growing
services economy and an emcrging high technology scctor. Gulf of Mexico beaches and
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the Everglades National Park are important attractions to this area. The park comprises a
substantial portion of the County,
Taxable property market valuation for fiscal year 2008 totaled just over $82.5 billion, or a
very high $248,051 per capita. Unemployment levels in recent years approximate, or are
slightly below those of the state. The 2008 County unemployment rate stood at 5.5%.
Income levels are high, with a per capita personal income of $57,446, which is the
highest in Southwest Florida.
The County's financial operations are managed with recurring General Fund operating
surpluses contributing to historically strong cash and General Fund balance positions.
This trend is expected to be negatively impacted by legislation involving property taxes
and a general slowing of the economy. The County's millage for General Fund
operations in fiscal year 2008 was at only 31 % of the statutory 10 mill limit.
Relevant financial policies include the appropriation of carryforward as revenue in the
following year, recommended General Fund unreserved fund balance of between 10%
and 15% of actual expenditures, the maximization of impact fees as allowed by law and
the use of gas taxes for the Road Construction Capital Improvement Program. The
Collier County debt policy provides for a maximum ratio of total general governmental
debt service to bondable revenues from current sources of 13%.
The major focus of the Capital Improvement Plan for FY-09 will continue to be road
construction, utility water, wastewater, solid waste improvements and government
facilities, including libraries. Funding for road construction will be provided by
remaining unspent Road Construction Fund monies and impact fees. Water and
wastewater projects will be funded by unspent bond proceeds and State Revolving Fund
Loan reimbursements. The remaining projects are a mix of advance funding and short
term borrowings.
LONG TERM FINANCIAL PLANNING
Long term financial planning in Collier County focuses on the provisions of the Local
Government Comprehensive Planning and Land Development Regulation Act. The
provisions of this Act require that local government comprehensive plans include a
Capital Improvement Element (CIE). The CIE is a planning document that identifies
public facilities that will be required during the next jive or more years. The Capital
Improvement Element is the foundation of Collier County's annual Capital Improvement
Program (CIP). Included in the County's current CIP for fiscal years 2009-2013 are
approximately $336 million for transportation projects and approximately $133 million
for water and wastewater facilities and various replacement and rehabilitation projects.
Solid waste projects of approximately $11 million are planned, as well as $48 million for
storm water management projects. A study is currently underway to determine the type of
infrastructure improvements necessary for development east of Collier Boulevard, in the
rural area of the County, The results of this study have major long term service delivery
issues and associated costs.
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As a result of the State's 2008 tax reform legislation, the taxable value within the
jurisdiction of each taxing authority used in calculation of the rolled back rate will be
increased by an amount equal to the reduction in taxable value occurring as a result of
recent State Constitutional amendments. This legislation did not impact the Collier
County levy for FY-2009 as the Board of County Commissioners adopted a millage
neutral policy. The roll back calculation for all future tiscal years will be impacted.
In summary, residential and commercial development and an established tourism
economy will continue to contribute to a tax base that has averaged 5% growth annually
for the last five years. While recent growth has moderated, this was not unexpected
given the exceptional growth rates of recent years, New home construction is hampered
by the number of existing homes available and a growing number of foreclosures. The
overall housing market remains relatively soH, however there continues to be activity in
the high end real estate market. Historically. Collier County's economy has provcn to be
better insulated from economic downturns than other Florida counties, or the nation.
Future years will be challenging, given the current issues in the housing market and the
state budget, inflationary concerns, and revenue limitations imposed by tax reform.
However, Collier County continues to attract affluent retirees. and the growing services
economy and an emerging high technology sector should continue to attract population
growth and development throughout the County,
CASH MANAGEMENT
The Finance and Accounting Division monitors the daily cash needs of the County and
invests the County's portfolio in accordance with the County's written investment policy.
Authorized investments include certificates of deposit. the Local Government Funds
Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper
and bankers' acceptances. The weighted average maturity of the total managed portfolio
was 1.42 years as of September 30, 2008. The average yield for tiscal year 2008 was
4.77%. Changcs in the fair value of investments are recorded separately from interest
income in the financial statements.
AWARDS
GFOA Certificate afAchievement:
The Government Finance Oflicers 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 30.2007. The Certificate of Achievement is a prestigious national
award, recognizing conformancc 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
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contents conform to program standards. The CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Collier County has
received this award for the past twenty-two years, from fiscal year 1986 to 2007. We
believe our current report conforms to the Certificate of Achievement program
requirements, and we are submitting it to the GFOA for consideration for an award again
this year.
Distinguished Budget Presentation Awards:
The Government Finance Officers Association of the United States and Canada presented
an award for Distinguished Presentation to Collier County for its annual budget for the
fiscal year beginning October I, 2007. In order to receive this award, a government unit
must publish a budget document that meets program criteria as a policy document, as an
operations guide, as a financial plan, and as a communications device. The Distinguished
Budget Presentation Award is valid for a period of one year only. Collier County has
received this award for the last nineteen consecutive years.
The Government Finance Officers Association of the United States and Canada presented
an award for Distinguished Presentation to the Office of the Collier County Clerk of the
Circuit Court for its annual budget for the fiscal year beginning October 1,2007. In order
to receive this award, a government unit must publish a budget document that meets
program criteria as a policy document, as an operations guide, as a financial plan, and as
a communications device. The Distinguished Budget Presentation Award is valid for a
period of one year only. The Clerk's Otlice has received this award for the last seven
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, Maryalice Bailey, Edith Manuel,
CPA, Precious Corrado, June Wathen, Liz Willis, Desiree Gardine, Suzanne Boothby,
Dan Tripaldi, Ashley Pearson, and Karen Oberrath, all Accountants, along with
Constance Murray, CGFO, General Operations Manager, Raymond Milum, Jr., Clerk's
Fiscal Operations Manager, Nancy Fragione, Senior Financial Specialist and Michele
Bettencourt, Office Assistant, and all of the staff of the Finance and Accounting
Department.
Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County
Commissioners, the Constitutional Officers, the County Manager, Division
Administrators and the Department Directors for their assistance throughout the year in
matters pertaining to the financial affairs of the County.
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We hope you find this report informative, accurate and easily readable. If you should
have any questions related to this report or if additional information is desired, do not
hesitatc to contact Crystal K. Kinzel, Director of Finance and Accounting. at (239) 530-
6299.
Respectfully,
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Dwig E. Brock
Clerk of the Circuit Court
Chief Financial Officer
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CrystdYK. Kinzel
Deputy Clerk
Director ofFiilance and Accounting
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Derek M. Johnssen. CPA
Deputy Clerk
General Accounting Manager
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IN THE CIRCUIT COURT FOR THE TWENTIETH JUDICIAL c~curr
IN AND FOR COLLIER COUNTY FLORIDA '
CIVIL ACTION ~,
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DWIGHT E. BROCK, CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
FLORIDA,
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BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, AS
EX-OFFICIO THE GOVERNING BOARD OF THE
OCHOPEE AREA FIRE CONTROL
AND EMERGENCY MEDICAL CARE
SPECIAL TAXING DISTRICT a/kIa THE
CHOPEE FIRE DISTRICT, a Municipal
Services Taxing Unit pursuant to
Section 12S.01(1)(q), F.S.;
LINDA T. SWISHER and PAUL WILSON.
C...eNo.04-941-CA
Defendants.
I
BOARD OF COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, on behalf
of COLLIER COUNTY, a Political Sub-
division of the State of Florida,
Petitioner,
Consolidated with
C...e No: OS-9S3-CA
v.
DWIGHT E. BROCK, CLERK OF THE ,
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CIRCUIT COURT OF COLLIER COUNTY, GJ ~., ,~
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PAUL WILSON,
Petitioner,
Consolidated with
Case No.: 05.1506-CA
v.
DWIGHT E. BROCK. CLERK OF THE
CIRCUIT COURT OF COLLIER COUNTY,
Respondent.
I
THIS consolidated action was heard on motions filed and heard before the Court. For the
reasons set forth in the attached Orders, which Orders are incorporated by reference herein, the Court
hereby;
ORDERS AND ADJUDGES:
I. Judgment is hereby rendered in favorofPetitioners. BOARD OF COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, ON BEHALF OF COLLIER COUNTY COLLIER COUNTY
and PAUL WILSON, and against Defendant, DWIGHT E. BROCK. CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY, on the Complaints for Writs of Quo Warranto in Case Nos. 05.
953-CA and 05-l506-CA.'
2. Judgment is hereby rendered in favor of Defendants, BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ETC., LINDA T. SWISHER and PAUL
WILSON, ET AL., on the Complaint for Declaratory Reliefin Case No. 04-941-CA. Defendants in
Case No. 04-941-CA shall go hence without day.
1 The detennination in favor of Petitioner Collier County on its Complaint for Writ of
Quo W/ll'lllllW controls the outcome of the Complaint for Writ of Quo Warranto filed by
Petitioner Paul Wilson, as a matter of law.
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3, The Court reserves jurisdiction to determine entitlement to and the amount of costs
and attorneys' fees upon proper motion.
DONE AND ORDERED in Ft. Myers, Florida on this Ll'day of 5IjTl/"J,( y
,
2007.
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HONORABLE MICHAEL T. MCHUGH
Copies furnished to:
J.cqud.... WIUIams HUbbard, Erq.
Office ofth. County Attorney
330 I East Tamhuni Trail. 8th Floor
Napl.., FL 34112.
Counselfor Board a/Commissioners
of Colli", Counl)l in Case Nos, OJ-9H-CA, CA-OJ.
I J06 ond0f-941-CA
A.thony P. Pires, Jr., Esq.
Stev.n V. Blouat, E.q.
Woodward, Pi.... " Lombardo, P.A.
3200 Tamlami Trail N., Suile 200
N.pl... FL 34 t 03
Coons.lfor DwlghJ E. Brod
Clerk ofrh. Circuil Court of Collier Counl)l
irr Cou No, 04-941-CA
Theodore 1. Tripp, Jr., Erq.
O.rvin " Tripp. P.A.
Post Office Drawer 2040
Fort Mye... Flond.33902
Co--Couruelfor Board ofCommiuioners
of Collier County In Cose Nos. OJ-9J3-CA. CA-O!.
IJ060nd04-941-CA ondforPaul WikJonin COJe No.
OJ-/J06-CA
David P. AckenD.n, E.q.
Glory P. R.... E.q.
Ackennan, Linl:" S8I10l}l, P.A.
222 Lakevlew Avenue, Suite 1250
W..t Palm Beach. FL 3340 I
Counsel for Dwight E. Brock
Clerk of the Circuit Court ofCo/lier Counl)l
In CasoNos. OJ-9J3-CA ondCA-OJ-/J06
AD3932. WPD
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IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY, FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
\'5.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
05-1506-CA
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BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 12S.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
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P.lG 2 7 2007
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Defendants.
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O~ER GRANTING. IN PART, AND DENYING, IN PART, THE "CL~RK'S MOTION
FOR PARTIAL SUMMARY JUDGMENT REGARDING UNDISPUTED ROLES OF
THE CLERK" AND GRANTING "COLLIER COUNTY'S CROSS-MOTION FOR
~MARY JUDGMENT ON T~ VrmISM!;D ROLES OF
THE CLERK OF COURTS"
THIS MATTER comes before the Court on the "Clerk's Motion for Partial Swumary
Judgment Regarding Undisputed Roles of the Clerk" filed June 11,2007 and "Collier County's
Cross-Motion for Summary Judgment on the Undisputed Roles of the Clerk of Courts" filed
August 2,2007. Both motions were filed pursuant to Florida Rule of Civil Procedure 1.510.
After hearing each motion and argument of counsel, carefully reviewing the motions and the
attachments, and examining the applicable law, the Cou11 finds as follows:
I. In its complaint, the Clerk, in part, seeks a declaratory judgment as to the general
rights and duties of the Clerk of the Courts,
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2. There are no disputed material facts" as it relates to a determination of the
general rights and duties of the Clerk of the Courts. Such a determination is an issue of law.
3. Both the Clerk and the County are seeking summary judgment as it relates to the
general rights and duties of the Clerk of the Courts. Specifically, the panies are seeking a
determination as to whether:
(a) the Clerk is the auditor, recorder, and custodian of all County funds;
(b) the Clerk is the accountant for the Board of County Commissioners;
(c) the Clerk has a duty to determine the legality of all County expenditures
before issuing a warrant for payment; and
(d) the Clerk"has a duty to prepare and cenify the accuracy of the COWlty'S
financial statements, including the armual management representation letter
submitted by the County to its outside auditors.
4. Both the Clerk and the County agree and, as a matter of law, th~ Court finds that:
(a) The Clerk is the auditor, recorder and custodian of all County funds. Article
VIII (I)(d); Alachua County v. Powers. 351 So. 2d 32, 43 (Fla. 1977).
(b) The Clerk is the accountant for the Board of County Commissioners, Fla.
Stat. ~ 125.17.
(c) The Clerk has the duty to determine the legality of all County expenditures
before issuing a warrant for payment. Fla. Stat. ~ 129.09; Alacbua CountY..Y,
Powers, 351 So. 2d 32, 36 (Fla. 1977).
5. However, the parties dispute the fourth issue of whether "the Clerk has a duty to
prepare and certify the accuracy of the County's financial statements, including the annual
management representation letter submitted by the County to its outside auditors[.)"
6. It is an undisputed fact that the Clerk has historically prepared the County's
financial statements and annually signed a management representation letter that the County
would submit to its outside auditors. It is further undisputed that the Board of COWlty
Commissioners enacted Resolution 06-109 for the 2005 audit, directing that "as ex-offico clerk
,
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and accountant to the Collier County Board of County Commissioners... [the Clerk] pro\"ide a
management representation letter in connection with the annual audit of the Count)"s records
performed by KPMG, LLP[,j" However, it is a disputed issue of law as to whether the Clerk has
a legal obligation to perform these duties.
7. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the Jaws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws, Regardless of whether this Court may agree or disagree with the laws, this Court is unable
,
to find any ambiguity or inconsistency.
8, The Court finds that the Board of County Commissioners' powers, as granted by
stalule, are inclusive and encompass all tasks necessary to effectively perform its duties, No
such general granl of power has been given to the Clerk. All of the Clerk's power must.rise
from either the Florida Constitution or general law. The Court finds no grant of authority to the
Clerk that gives him the duty of preparing and certifYing the accuracy of the County's financial
statements, including the annual management representation letter.
9. The Court acknowledges that multiple parties may have the authority to perform
duties; however, absent a grant of power from the Florida Constitution or general law, the Clerk
does not have the duty to prepare and certify the County's financial slatements, unless these tasks
are delegated to him by the Board of County Commissioners. As stated above, the Court finds
no grant of authority to the Clerk from the Florida Constitution or general law,
10. Accordingly, the Court finds that the Clerk's authority to prepare financial
statements on behalf of the County is not derived from a specific grant of constitutional or
statutory power, but rather is derived from a delegation of authority by the Board of County
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Commissioners. The scope oflhis delegation is within the discretion of the Board of County
Commissioners, and may be granted, removed or modified.
] ], In arrh~ng at this finding, the Court has carefully considered Articles II & VIlI of the
Florida Constitution, and al] applicable statutes, including, but not necessarily limited to. Fla.
Stat. 99] 1A5, 116.07, 125m, 125.17,125.71,125.74,136.05,136.08,218.32,218.33,218.39.
In addition, the Court has considered applicable case law presented by the parties, including, but
not necessarily limited to, Alachua v. Powers, 35 I So. 2d 32 (Fla. 1977) and Wand F Limited v.
punkle, 444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
ORDERED AND ADJUDGED that:
I. The Clerk's motion is granted in part and denied in part, as set forth herein.
2. The County's cross motion is granted,
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this 2'1-""
day of
J..\J"'"....r
-
, 2007.
Cfl:;- L
Michael T. McHugh
Circuit Judge
o
.
CERTIFICATE OF Sr:;RVIC~
I HEREBY CERTIFY that a true and correct copy of the aboye order has been furnished
to David P. Ackerman, Ackerman, Link, & Sartory, P.A, Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, PA, AlIorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200. Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
X1U
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Naples, Florida 341 ]7; Theodore L. Tripp, Jr., Garvin & Tripp, P.A., Anomey for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(XI), 1700 Monroe Street, Ft. Myers, Florida 33901, this ~ day of
,2007.
Case Numbers: 04-941-CA, Consolidated with OS-953-CA, and OS-IS06-CA
Order Granting, in Part, and Den)'ing, in Part, the "Clerk's Motion for Partial Summary Judgment
Regarding Undisputed Roles of the Clerk" and Granting "Collier County's Cross-Malian for Summary
Judgment on the Undisputed Roles of the Clerk of Courts"
XlV
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IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY, FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
vs.
Case No. 04-941-CA
Consolidated with
Case Nos. OS-9S3-CA
OS-lS06-CA
,
,
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OCHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 12S.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
'11(" .,; ")-"'fq
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Defendants.
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ORDER GRANTING "COLLI~R COUNTY'S MOTION FOR SUMM.i\RY
JUDGMENT AS TO CASE NUMBER 05-9S3-CA AND THE ISSUAN~E OF A WRIT IN
OUO WARRANTO"
THIS MA ITER comes before the Court on "Collier County's Motion for Summary
Judgment as to Case Number 05-953-CA and the Issuance of a Writ in Quo Warranto" filed
June 11,2007. The motion was filed pursuant to Florida Rule of Civil Procedure 1.5 I 0, After
hearing the motion and counsels' arguments, carefully reviewing the motion and the attaclunents,
and examining the applicable law, the Court finds as follows:
I. The Board of County Commissioners filed a complaint for Writ of Quo Warranto,
seeking a writ prohibiting the Clerk from exercising powers to which he is not entitled as a
matter of law.
xv
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2. The County filed a motion for summary judgment requesting a determination that:
Ca) The Clerk's authority as custodian of Count)' funds arises only upon
delivery of funds to the Clerk br lhe Board or through the direct collection
of fees;
(b) The Clerk's authority as the custodian of the County's funds is limited to
the determination of the lawful basis of an expenditure and does not
extend to the discretionary decisions by the Board to spend County funds;
and
Cc) The authority and responsibility to prepare the County's financial
statements is derived from and dependent upon an express delegation of
that authority by the Board.
3. It is undisputed, by the parties that, the Clerk is the auditor, recorder and custodian of
all County funds, that the Clerk is the accountant for the Board of County Commissioners, and
that the Clerk has the duty to determine the legality of all County expenditures before issuing a
warrant for payment.
4. There are no disputed material facts as it relates to a determination of the powers of
the Clerk. Such a determination is an issue of law.
5. This Court does not have the authority to either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
6. The Court finds that the Board of County Commissioners' powers, as granted by
statute, are inclusive and encompass all tasks necessary to effectively perfonn its duties. No
such general grant of power has been given to the Clerk. AU of the Clerk's power must arise
from either the Florida Constitution or general Jaw. The Court acknowledges thai multiple
parties may have the authority to perform duties; however, absent a grant of power from the
,
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Florida Constitution or general law, the Clerk does not have the authority to perf 01111 certain
duties unless these tasks are delegated by the Board of County Commissioners.
7. Accordingly. as it relates to issue (a), the Court finds as a matter oflaw, that to the
extent that the Clerk is the custodian of all County funds, he necessarily can only be the
custodian of those funds to which he has been given custody, which would presumably
encompass all County funds. Even if the Clerk becomes aware or suspects that there are County
funds of which he has not be given custody, this Court is unaware ofany constitutional or
statutory authority that would allow the Clerk to initiate an independent investigation or attempt
to recover those funds, absent instruction from the Board of County Commissioners.
8. This does not preclude the Clerk from seeking authority to pursue these funds or
making these funds known to any appropriate authority, but as stated above absent any
constitutional or statutory grant of power the Court cannot acquiesce to the Clerk making
unilateral investigations into these funds.
9. As it relates to issue (b), the Court finds as a matter of law, that prior to signing any
..
warrant for the payment of any claim, bill or indebtedness from County funds, the Clerk is
required to insure that the payment is lawfuL Consequently, any auditing necessary to insure the
legality of the expenditure prior to the payment is proper. However, the Court is unable to find
that the Clerk has been granted any specific constitutional or statutory authority to perf 01111
further audits beyond the time that the warrant is signed, unless so directed by the Board of
County Commissioners.
10. As it relates to issue (c), the Court finds as a matter oflaw, that the Clerk's authority
-l<>
,<>f4e COllllty is Hot derived-from a speti~graRt-of
constitutional or statutory power, but rather is derived from a delegation of authority by the
XV11
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Board of County Commissioners. The scope of this delegation is within the discretion of the
Board of County Commissioners, and may be granted, removed or modified.
II, In arriving at these findings, the Coun has carefully considered Articles II & VIll of
the Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. SS 11.45, 116.D7, 125,01, 125.17, 125.71, 125.74, 136.05, 136.08, 21832, 218.33,218.39.
In addition, the Coun has considered applicable case law presented by the parties, including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla. 1977) and Wand F Limited v.
Dunkle, 444 So. 2d 554 (Fla. 4th DCA 1984).
'"
,'"
Accordingly, it is,
,
.
ORDERED AND ADJUDGED that County's motion for summary judgment is granted,
,
as set forth herein.
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this 2.;.('"' day of
"--J~V \" }
, 2007.
/ /?-<.. p
\....-.k"' J.
Michael T. McHugh
Circuit Judge
CER.TIFICATE OF SE~VICE
] HEREBY CERTIFY that a true and cOrrect copy of the above order has been furnished
to David p, Ackerman, Ackerman, Link, & Sartory, P.A., Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 3340 I; Anthony P. Pires, Jr. and
Steven V. Blount. Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N.. Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 Eas! Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, PA, Attorney for the
Defendant, Post Office Drawer 2040, Fon Myers, Florida 33902; and Court Administration
(XI), 1700 Monroe Street, Ft. Myers, Florida 33901, this d.\...j-\'h day of
<. ,2007.
.I:b-
icial Assistant
XVU1
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IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT, IN AND FOR
COLLIER COUNTY, FLORIDA CIVIL ACTION
DWIGHT E. BROCK, CLERK OF THE CIRCUIT
COURT OF COLLIER COUNTY,
FLORIDA,
Plaintiff,
\'5.
Case No. 04-941-CA
Consolidated with
Case Nos. 05-953-CA
OS-1506-CA
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS EX-OFFICIO
THE GOVERNING BOARD OF THE OeHOPEE
AREA FIRE CONTROL AND EMERGENCY
MEDICAL CARE SPECIAL TAXING DISTRICT
AIKA THE OCHOPEE FIRE DISTRICT,
A Municipal Services Taxing Unit pursuant to
Section 125.01(q), F.S.; LINDA T. SWISHER
and PAUL WILSON,
o ~~~O'l:#rn:
AUG 2 7 2007
Defendants.
I
O.\IDER DENYING TIlE "CLERK'S MOTION FOR PARTIAL SUMMARY
JUDGMENT" AND GRANTING "COLLIER CO~TY'S CROSS MOTION FOR
SUMMARY JUDGMENT AS.TO THE CL~'S DECLARATORY JUDGMENT
COUNT"
THIS MATTER comes before the Court on the "Clerk's Motion for Partial Summary"
filed August 1, 2007 and "Collier County's Cross Motion for Summary Judgment as to the
Clerk's Declaratory Judgment Count" filed August 2, 2007. Both motions were filed pursuant
.
10 Florida Rule of Civil Procedure 1.510. After hearing each motion and argument of counsel,
carefully reviewing the motions and the attachments, and examining the applicable law, the
Court finds as follows:
[, In its complaint, the Clerk, in part, seeks a declaratory judgment as to the rights and
duties of the Clerk of the Courts.
2. There are no disputed material facts as it relates to a detennination of the rights and
duties of the Clerk of the Courts. Such a detennination is an issue oflaw.
,
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3. Both the Clerk and the Count)' are seeking summary judgment as to the declaratory
judgment count of the Clerk's amended complaint. Specifically. the Clerk is seeking a
detennination that:
(a) the rights of the Clerk to custody of all County funds in the account
referring to the Ot:hopee FCD Volunteer Account Number 000093417519
at the Bank of America) from the account's inception up to and including
the present;
(b) declaring that the clerk has unconditional unrestricted right, duty and
obligation to audit and examine at any time all bank accounts containing
County funds, including but not limited to the account; and
(c) that the Clerk has the right to custody of all County funds and all accounts
whatsoever and wheresoever situated.
'J
"':
4. The County in its cross motion asserts that,
"the Clerk is the custodian of all County funds, however, whether the funds at
issue in the Ochopee account are "County" funds is yet to be determined. Further,
although the Clerk may "inspect" and "examine" all public records of the Board,
lhe Clerk has no independent authority to conduct "audits" if that term includes
the unfellered ability to interview and interrogate county employees, consultants,
subcontractors, or agents. He may only "inspect" and "examine" the public
records of the Board to determine if an expenditure, authorized through the
discretionary spending power of the Board, is a lawful expenditure; and even this
examination must occur before the money is spent."
5. Both the Clerk and the County, agree and, as a matter of law, the Court finds that the
Clerk is the custodian of all County funds. However, the other issues are in dispute.
6. This Court does not have the authority Lo either agree or disagree with legislation, but
rather is obligated to apply the laws of the State of Florida as enacted. Unless there is some
ambiguity or inconsistency, this Court will not offer its own independent interpretation of the
laws. Regardless of whether this Court may agree or disagree with the laws, this Court is unable
to find any ambiguity or inconsistency.
7. The Court finds that the Board of Count)' Commissioners' powers, as granted by
xx
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statUte. are inclusive and encompass all tasks necessary to effectively perform its duties. No
such general grant of power has been given to the Clerk. All of the Clerk's power must arise
from either the Florida Constitution or general law. The Coun acknowledges that multiple
panies may have the authority to perform duties; however, absent a grant of power from the
Florida Constitution or general law, the Clerk does not have the authority to perform certain
duties unless these tasks arc delegated by the Board of County Commissioners.
8. Florida Statute 9 125.01 (s) gives the Board of County Commissioners the authority
to, "make investigations of county affairs; inquire into accounts, records, and transactions or any
.
county department, office or officer; and, for these purposes, require reports from any county
officer or employee and the production of official records." Florida Statute 9 125. 74( I leg) gives
the County Administrator or manager the authority to supervise the care and custody of all
county funds. Florida Statute g 125.01(b) gives the Board of County Commissioners the right to
provide for the prosecution and defense of legal causes on the behalf of the County. This Court
is unable to tind any constitutional or statutory authority that would give the Clerk the power to
investigate the nature of funds not currently in its custody or to supervise the care and custody of
funds not currently in its custody or to file a lawsuit regarding those funds.
9. Accordingly, the Court finds that, as a matter of law, this Court can find no
constitutional or statutory authority that would give the Clerk the unbridled right to audit any and
all outside bank accounts "whatsoever and wheresoever situated" into which the Clerk believes
county funds may have been improperly deposited. However, this finding does not preclude the
Clerk from reporting any such suspicions of impropriety to the appropriate authority or person
for further investigation.
XX1
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10, In arriving al this finding. the Court has carefully considered Articles II & V III of the
Florida Constitution, and all applicable statutes, including, but not necessarily limited to, Fla.
Stat. gg 11.45,116.07, 125.Q1,125.17, 125.71, 125.74, 136.05, 136.08,21&.3',218,33,218.39.
In addition, the Cow1 has considered applicable case law presented by the parties. including, but
not necessarily limited to, Alachua v. Powers, 351 So. 2d 32 (Fla, 1977) and Wand F Limited Y.
D~Je, 444 So. 2d 554 (Fla. 4th DCA 1984). Accordingly, it is,
ORDERED AND ADJUDGED that:
I. The Clerk's motion is denied,
2. The County's cross motion is granted.
"'"
DONE AND ORDERED in Chambers at Fort Myers, Lee County, Florida, this.,} 4. day of
""'"~"",.l,,
, 2007,
.
-
....;-L-P
Michael T. McHugh
Circuit Judge
.
CERTIFICA TE OF SERVICE
J HEREBY CERTlFY that a true and correct copy of the above order has been furnished
to David p, Ackerman, Ackerman, Link, & Sartory, P.A" Attorneys for the Plaintiff, 222
Lakeview Avenue, Suite 1250, West Palm Beach, Florida 33401; Anthony P. Pires, Jr. and
Steven V. Blount, Woodward, Pires & Lombardo, P.A., Attorney for the Plaintiff; 3200 Tamiami
Trail N., Suite 200, Naples, Florida 34103; Jacqueline Williams Hubbard, Office of the County
Attorney, Attorney for the Defendant, 3301 East Tamiami Trail, Harmon Turner Bldg. 8th Floor,
Naples, Florida 34112; Theodore L. Tripp, Jr., Garvin & Tripp, P,A., Attorney for the
Defendant, Post Office Drawer 2040, Fort Myers, Florida 33902; and Court Administration
(X . 1700 Monroe Street, Ft. Myers, Florida 3390 I, this dL1 ilo day of
,2007,
Cas. Numbers: 04-941-CA, Consolidated with 05-95 -CA, and 05-1506-CA
Order Denying the Clerk's Motion for Partial Summary Judgment and Granting the Collier County's
Motion for Summary Judgment as to the Clerk's Declaratory Judgment Count.
XX1l
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Collier County
Clerk of the Circuit Court
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Goverrunent Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
.
,
President
Executive Director
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The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its
comprehensive annual financial report for the fiscal year ended September 30, 2007. This was the twenty-
second consecutive year that the government has achieved this prestigious award. In order to be awarded
a Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
FINANCIAL SECTION
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THIS PAGE INTENTIONALLY LEFT BLANK
11111111111""
I11II ill ERNST & YOUNG
13A
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Ernst & Young LLP
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'i;'W'N.("'V.COr1i
Report of Independent Certified Public Accountants
Members of the Board of County Commissioners
Collier County, Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of Collier County, Florida (the County) as of and
for the year ended September 30, 2008, which collectively comprise the County's basic financial
statcments as listed in the table of contents. These financial statements are the responsibility of
the County's management. Our responsibility is to express opinions on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an audit of the
County's internal control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management and evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the County as of September 30, 2008, and the respective changes in financial
position and, where applicable, cash flows thereof, and the respective budgetary comparison for
the general fund and the community redevelopment fund for the year then ended in conformity
with accounting principles generally accepted in the United States,
As discussed in Note 19, net assets for the business-type activities and the County Water and
Sewer Fund as of September 30, 2007 have been restated.
0')02-1032557
]
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III1111 au ERNST & YOUNG
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In accordance with Government Auditing Standards. we have also issued our report dated
February 26, 2009 on our consideration of the County's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management's Discussion and Analysis on pages 3 through 13 and schedule of funding
progress for the retiree health plan on page 78 are not a required part of the basic financial
statements but are supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information, However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, and thc statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards and state projects is
presented for purposes of additional analysis as required by the U,S, Office of Management and
Budget Circular A-133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the
Auditor General, and is not a required part of the basic financial statements. The combining and
individual nonmajor fund financial statements and schedules and the schedule of expenditures of
federal awards and state projects have been subjected to the auditing procedures applied in the
audit of the basic financial statements and. in our opinion. are fairly stated in all material respects
in relation to the basic financial statements taken as a whole. The introductorv section and the
,
statistical section have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we express no opinion on them.
of
February 26, 2009
0902-1032557
"
13A ~
Management's Discussion and Analysis
(Unaudited)
As Clerk of the Circuit Court and chief financial ot1ker of Collier County, Florida, I present the readers
of the County's financial statements this narrative overview and analysis of the financial activities of
Collier County for the fiscal year ended September 30, 2008. Readers are encouraged to consider the
information presented in this narrative in conjunction with additional information offered in the letter of
transmittal, found on pages i-xxii of this report.
Financial Highlights
Collier County's assets exceeded its liabilities as of September 30, 2008 by $2,318,834,722. Of
this amount, $312,792,303 represents unrestricted net assets and may be used to meet future
obligations.
The County's total net assets increased by $141,079,726 over fiscal year 2007, with $82,088,071
of the increase resulting from governmental activities and $58,991,655 resulting from business-
type activities.
As of September 30, 2008 Collier County's governmental fund financial statements showed
combined ending fund balances of $496,012,839, a decrease of $108,483,366 over the previous
fiscal year. Of the total combined ending fund balance, $346,683,059 remains in the various
governmental funds of Collier County as unreserved.
The General Fund reported an unreserved fund balance of $61,952,935 at September 30, 2008, a
decrease of$15,665,809 compared to September 30, 2007.
Total net bonded debt and outstanding loans owed by Collier County increased by $24,092,474
during fiscal year 2008, with an increase in net governmental activities debt of $31 ,697,959 and a
decrease in the net business-type activities debt of $7,605,485. General government commercial
paper debt in the amount of $57,391,000 was issued for the purpose of constructing a Courthouse
Annex, Fleet Facility buildings, the Golden Gate and South Regional Libraries and an Emergency
Operations Center, as well as the purchase of new 800 MHZ equipment and radio locator
systems, Collier County also borrowed $12,000,000 through the State Infrastructure Bank low
interest loan program, In addition, the Forest Lakes Municipal Taxing Services Unit borrowed
$6,215,000 for various drainage improvements. The Collier County Water and Sewer District
also borrowed $2,401,552 from the Florida Department of Environmental Protection's State
Revolving Fund Program.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction and explanation of Collier County's
basic financial statements, comprised of government-wide and fund financial statements, as well as notes
to the financial statements. There is additional supplementary information following these financial
statements that may be of interest to the reader.
3
13A '_
Government-Wide Financial Statements
Government-wide financial statements are designed to provide the reader an overview of the financial
position of the County and are similar to private sector financial statements. These statements are
comprised of a Statement of Net Assets and a Statement of Activities and are found on pages] 4 to ] 7 of
this report,
The Statement of Net Assets shows the financial position of Collier County as of September 30, 2008,
The statement shows the County's assets less its liabilities, with the difference being reported as net
assets. Changes in net assets are useful indicators of financial condition.
The Statement of Activities follows the statement of net assets and reports the changes in net assets over
the fiscal period. All changes in net assets arc rcported as soon as the underlying events that gave rise to
the change occur. regardless of the timing of thc related cash flows. Thus, revenues and expenses are
reported for some items, such as accounts receivable or accrued unused vacation and sick leave, that will
manifest themselves in cash inflows and outflows. respectivcly, 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 arc intended to have their costs
primarily recovered through user fees and charges.
Governmental activities reported in the financial statements are general government, public safety,
physical environment, transportation, economic environment, human services and culture and recreation.
Business-type activities in Collier County include water and sewer, solid waste collections, airport
operations, transit operations and emergency medical services,
Fund Financial Statements
A fund is a group of related accounts used to maintain control over resources that have been segregated to
meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses
fund accounting to ensure and demonstrate compliance with financial legal requirements, The funds of
the County can be divided into the following three categories: governmental, proprietary and fiduciary,
Governmental funds - Governmental funds, presented on pages 18 to 25, account for substantially the
same functions as governmental activities reported under the Government-Wide Statement of Net Assets
and Statement of Activities. The difference is that the governmental fund financial statements focus on
inflows and outflows of expendable resources, as well as balances of expendable resources available at
the end of the fiscal year, on a near term basis, As such, these statements present a narrower view of
linancial condition, but are nonctheless useti.Ii in evaluating Collier County's near term financing
requirements and available resources.
Comparison between thc two sets of financial statements allows the reader to bettcr assess the future
impact of the government's near term linancial decisions. Both the governmental fund balance sheet and
the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the
respective government-wide financial statements to facilitate comparison.
Governmental funds presented individually in Collier County's statements include four major funds, the
General Fund, Road Impact Districts Fund, Road Construction Fund and the Community Redevelopment
Fund, While therc are many smaller governmental funds under Collier County management, they are
~
13A
r\f
, J~~
"
aggregated in a total column named "other governmental funds", Combining statements for these other
governmental funds have been presented elsewhere in this report
Proprietary funds - Collier County maintains two different types of proprietary funds, enterprise and
internal service, which are reflected on pages 26 to 30 of this report
Enterprise funds report, with more detail, the same functions presented as business-type activities in the
government-wide financial statements for water and sewer, Goodland water, solid waste disposal,
emergency medical services, transit and the airport authority. The Collier County Water and Sewer
District Fund is presented individually as a major fund.
Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The
County uses internal service funds to account for health insurance, worker's compensation insurance,
property and casualty insurance and fleet operations, The internal service funds are presented in total in
the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the
report
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
of Collier County government These funds are not presented in the government-wide financial
statements as they do not represent resources available to support Collier County functions. The fiduciary
funds are presented in the on page 31 of this report. All of the County's fiduciary funds are agency funds.
The accounting used for agency funds is based on the concept that assets equal liabilities when the
government is acting in a fiduciary capacity.
Notes to the Financial Statements
The notes provide additional information essential to a full understanding of the data provided in both the
government-wide and lund financial statements, The notes appear on pages 34 to 76 ofthis report.
Other Information
The combining and individual nonmajor fund financial statements and schedules mentioned above present
more detailed views of nonmajor governmental and enterprise lunds and begin on page 83. This section
contains combining balance sheets and statements of revenues, expenditures and changes in fund balance
for governmental lunds, including budgetary comparisons, and combining balance sheets and statements
of revenues, expenses and changes in fund net asscts for enterprise funds. Also included are combining
financial statements for internal service and agency lunds. Additional information about the County,
which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this
report.
Government-Wide Financial Analysis
Changes in net assets over time are a useful indicator in assessing financial condition. Collier County's
increase in net assets for this fiscal year amounts to $141,079,726, resulting in an ending net assets
balance as of September 30, 2008 of $2,318,834,722, Collier County's investment in capital assets such
5
13A t1
as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt
related to the construction or purchase of the asset. amounts to 72% of net assets. Capital assets are used
to provide services to the citizens and consequently do not represent spendable resources.
Collier County's net assets also include restricted net assets of $325, 176, 138 and unrestricted net assets of
$312,792,303. Restricted net assets are resources subject to external restriction on how they may be used
while unrestricted net assets may be used to meet the County's ongoing obligations.
Following are Collier County's net assets and changes in net assets for the fiscal years ended September
30,2007 and 2008, shown in condensed form:
Collier County's Schedule of Net Assets
.(in millions)
Governmental
Activities
Business-type
Activities
Total
2008 2007
as restated
Total
Percentage
Change
2008-2007
2008 2007
2008 2007
as restated
Current and other assets $6-- 0 $767,0 $ 177.5 $ 187.8 $830.7 $954.8 (13.0%)
).)....
Capital assets, net I,S 27 0 1,3128 915.5 865,7 2,442,5 2,178.5 12.1%
-- ---------- , ..------ --------,_.,,_.-.-- ~"..__._..
Total assets 2,180.2 2,0798 1.093,0 1.0535 3,773.2 3,133.3 4.5%
-"..,'--'-- -----,~--.. -_._"~--
Long-term liabilities 537.3 507.9 255.7 264.3 793.0 772,2 2.7%
Current liabilities 1271 137.9 34.5 45A 161.6 183,3 (11.8%)
-~----~' - __,__w'_ ,
Total liabilities 664A 645.8 290.2 309.7 954.6 955.5 (0.1%)
---,- , --,-- ,_____,_., u..,_ ----------- . ---....'---..-
Net assets:
Invested in capital assets,
net ofrelated debt
Restricted
Unrestricted
'fotal net assets
1,022.0
295.0
199,0
$1,516.0
871A
244.7
317.9
- -,-
$1,434.0
658,9
30.2
113.7
$802.8
630.0
30.8
83.0
$743,8
1,680.9
325.1
312.8
$2,3 188
1,501A
275.5
400.9
$2,177.8
12.0%
18.0%
(22.0%)
6.5%1
Note: Certain fiscal year 2007 balances are restated in a manner consistent \\'ith the restatement discussed in NOli: 19
on page 75,
6
13A
Collier County's Schedule of Changes in Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Chan~e
2008 2007 2008 2007 2008 2007 2008-2007
as resta ted as restated
,---_. .--
Revenues
Program revenues:
Charges for services $68,9 $72.5 $1573 $144,8 $226.2 $217,3 4.1%
Operating grants and contributions 20.2 27.3 44 2,7 24,6 30,0 (18,0%)
Capital grants and contributions 52.3 122,3 23.3 32,7 75.6 155.0 (51.2%)
General revenues:
Property taxes 327,2 345.1 327.2 345.1 (5.2%)
Other taxes and shared revenues 76.7 84.8 76,7 84,8 (9.6%)
Interest income 34.5 43,1 5.9 6,9 404 50.0 (19.2%)
Change in fair value
of investments (.8) 5.8 (7) 1.3 (1.0) 7,1
Miscellaneous 10.6 8.2 1 .6 10,7 8,8 (21.6%)
--
Total revenues 589,6 709.1 190.8 189,0 7804 898.1 (13.1%)
-,,~' --- ----,--
Expenses
General government 1127 ] 10,8 112.7 110.8 1.7%
Public safety 1833 182,8 183.3 187.8 .3%
Physical environment J2,1 19,9 22.1 19,9 11.1%
Transportation 66.0 54.2 66.0 54.2 21.8%
Economic environment 13,5 117 13.5 117 154%
Human services 13.5 12.9 13.5 12.9 4.7%
Culture and recreation 434 41.6 434 41.6 4.3%
Interest on long-term debt 21.5 21.8 21.5 21.8 (14%)
Water and sewer 85,5 91.1 85.5 91.1 (6.1%)
Solid waste 30.0 32.0 30.0 32.0 (5.9%)
Airport authority 5.1 4.3 5.1 4,3 18,6%
Emergency medical services 30, I 27.3 30.1 273 10.6%
Mass transit 94 7.8 94 7.8 21.0%
Total expenses 476,0 455.7 160,1 ] 62,5 636.1 618.2 2.9%
n..'._
Increase in net assets before
Net transfers and special item 113.6 253.4 30,7 26.5 144,3 279.9 (48.4%)
Special item - bond expense (3.3) (3,3) 100,0%
Transfers, net (28.3) {J.5c!l 28.3 15.1
Change in net assets 82.0 238,3 59.0 41.6 141.0 279.8 (49.6%)
Net assets - beginning, as restated 1,434.0 . ____2.,195,7 743,8 702.2 2,]77.8 1,897.9 15.7%
,---,-".-
Net assets - ending $1,516.0 $1,4340 $802.8 $743.8 $2,318.8 $2,177.8 6.5%
Note: Certain fiscal year 2007 balances are restated in a manner consistent with the restatement discussed in Note 19
on page 75.
7
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___0
13A
Governmental Activities
The current year increase for net assets of governmental activities amounted to $82,088,071, an increase
of 6% over the previous year's net assets, The previous fiscal years' increase was 20% and this trend is
the result of an overall decline in governmental activities revenues. The ad valorem tax millage for tiscal
year 2008 was reduced to 9% below the rolled back millage rate, in accordance with property tax reform
measures adopted hy the Florida Legislature. This decrease was offset to a degree by a 7% increase in
taxable assessed value, but the overall result was a decrease in ad valorem tax revenues of $17,809,228,
or 5%. Governmental impact fees are collected to offset the cost of growth necessitated capital
improvements and are reported as capital contributions in the governmental activities. During fiscal year
2008 the County collected impact fees for transportation, parks, libraries, emergency medical services,
correctional facilities, law enforcement, governmental facilities and fire totaling $36,679,020. This
represents a decrease in total impact fee collections over liseal year 2007 of 57%, and is emblematic of
the widespread slow down in the construction and real estate industries. Sales tax revenues decreased by
8% versus fiscal year 2007, and this decrease reilects a general decline in the state's economy. Tn
addition, gas tax revenues decreased by 4% versus tiscal year 2007 and this decrease is indicative of both
a slowdown in the state's economy as well as an indicator of the effect of higher fuel costs on demand,
Total government activities expenses increased 4% over liseal 2007, Transportation expenses increased
by 22% over fiscal year 2007 due to increases in depreciation expense related to projects placed in service
during fiscal 2008 and increases in operational costs. The County's economic environment expenses
increased by 15% over the previous tiscal year primarily due to increased operational costs. Physical
environment expenses increased I J % mainly due to the depreciation on inti-astructure projects put into
service during tiscal year )008. Governmental activities interest expense was $21.445.546 for fiscal year
2008. net of amortizations.
Business-type Activities
Increases in net assets related to business-type activities amounted to $58,991,655 in the aggregate,
representing an 80/0 increase over the previous year's net assets. This increase is an increase of 20/0 over
the 2007 rate of increase in net assets. The majority of the increase, or $36, 159,958, can be attributed to
the Collier County Water and Sewer District. Water and wastewater operating revenues increased
$8, II 0,279, or 9%. over the previous liscal year, while costs of operations, including depreciation, were
down 2% overall. Operating revenues increased primarily due to a rate increase of 14,5% and imposition
of a water surcharge. These increases were partially olfset by decreased usage causcd by water
restrictions and conservation measures. Personal services expenses and operating expenses decreased by
2% and 12%, respectively, when compared to tiscal year 2007, Depreciation expense increased by 14%
over fiscal year 2007, and this increase is due to the recent capital expansion of the County Water and
Sewer District. Over $43M in capital facilities were added and improved during tiscal year 2007 and for
fiscal year 2008 a further $137M was added. Fiscal year 2008 water and wastewater impact fee
collections dropped to $9,753,332, or a decrease of 53% versus liscal 2007, This was the primary reason
tar a 30% decrease in capital grants and contributions, which includes impact fees. The County charges
water and \vastc\vater impact fees on llC\V i..:onstruction in order to finance growth necessitated capital
expansion, The Collier Area Transit Fund received the contribution of a Transit Facility from
governmental activities with a value of $10,096,889. In addition, solid waste charges for services
increased by 4.4% over fiscal year 2007 while operating costs, including depreciation, decreased by 6%
over the same period. The increase in solid waste charges for services can be attributed to a 120/0 rate
increase, oifset to a degree by less tonnage being accepted into the landfills for FY-2008. These factors
contributed to an increase in net assets year on year of $6, I 06.233.
Fund Financial Statemcnt Analysis
As mentioned above. Collier County utilizes fund accounting to ensure compliance with finance related
legal requirements.
8
13A ."
Governmental Funds
Governmental funds provide information on near term inflows, outflows and balances of spendable
resources. Unreserved fund balance is a useful measure of net resources available to be spent at the end
of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service
Funds and Capital Project Funds.
As of September 30, 2008 Collier County governmental funds reported combined fund balances of
$496,012,839, a decrease of $108,483,366 over prior year combined fund balances. Governmental funds
reserved $128,993,148 of fund balance for encumbrances in the next fiscal year, $174,805 for inventory,
deposits and prepaid items, $4,099,533 for debt service and $16,062,294 for advances made to other
funds. The remainder of fund balance is considered unreserved and available for discretionary spending.
The following were noteworthy activities and changes relating to the major governmental funds for fiscal
year 2008:
The General Fund is the main operating fund of Collier County. At September 30, 2008, total fund
balance in the general fund was $68,555,420, of which $61,952,935 was unreserved, As a percentage of
total general fund expenditures and net transfers, the unreserved portion is 17%, The total fund balance
decreased by $12,769,212 or 16%, compared to the September 30, 2007 total fund balance. The decrease
is primarily due to decreased sales tax collections and decreased ad valorem tax collections.
.
The Road Impact Districts Fund is used to account for the receipt and expenditure of road impact fees.
Road impact fees of $29,141,348 were collected during fiscal year 2008, to be used for growth related
transportation capital improvements. This represents a decrease in total road impact fee collections
versus fiscal year 2007 of 58%, which is consistent with the slowdown in both the real estate and
construction industries. Capital expenditures of road impact fees decreased by 20% for fiscal year 2008
when compared to fiscal year 2007. The major project completed and capitalized during Ilscal year
2008 was the growth necessitated portion of the Golden Gate Parkway Overpass in the amount of
$2,522,001. Major ongoing projects include Immokalee Road from 1-75 to Collier Boulevard,
Rattlesnake Hammock Road from Polly Avenue to Collier Boulevard and Santa Barbara Boulevard from
Davis Boulevard to Pine Ridge Road in the combined amount of $62,954,320 through September 30,
2008. These activities resulted in a decrease in fund balance of$35,168,946 for the Road Impact Districts
Fund.
The Road Construction Fund accounts for the accumulation of gas taxes, bond proceeds and General
Fund transfers for the construction of roads, Capital expenditures in the Road Construction Fund
decreased by 20%, compared to fiscal year 2007. Major projects completed and capitalized during fiscal
year 2008 included portions of the Immokalee 1-75 Loop, Goodlette Frank Road from Pine Ridge Road to
Golden Gate Parkway, turning lane and intersection improvements and advancements in computerized
signalization systems in the combined total of $24,089,937. Major ongoing projects include Immokalee
Road from Collier Boulevard to Wilson Boulevard, Vanderbilt Beach Road trom Airport Pulling Road to
1-75, Immokalee Road from US 41 to 1-75, Rattlesnake Hammock Road from Polly Avenue to Collier
Boulevard, Santa Barbara Boulevard Irom Golden Gate Parkway to Radio Road right of way purchase
and Collier Boulevard from Golden Gate Parkway to Immokalee Road. The total amount of construction
in progress for these projects was $134,059,507 as of September 30, 2008, The combination of these
activities resulted in a decrease in fund balance of $24,069,650 for the Road Construction Fund.
The Community Redevelopment Fund accounts for the receipt and expenditure of tax increment revenues
for the Bayshore/Gateway Triangle and Immokalee Redevelopment Authorities. During fiscal year 2008
the Bayshore/Gateway Triangle purchased $863,642 of land within the Triangle.
9
.
13A It
Proprietary funds
Proprietary fund statements provide the same information as the business-type activities in the
government-wide financial statements, but in greater detail, and on a fund basis for enterprise funds.
At September 30, 2008. total net assets amounted to $802,790,838 for enterprise funds, as compared to
$745,274,760 as of September 30, 2007. Net assets change as a result of operations, non-operating
revenues and expenses, capital contributions and grants and donations. The Collier County Water and
Sewer District's activity represents the majority ofthe increasc in net assets,
For the year ended September 30, 2008 the Water and Sewer District reported capital grants and
contributions of $21,314,876, which includes system development fees of $9.753,332, $10,117,044 in
developer infrastructure contributions and capital grants, contributions and assessments of $] ,444,500,
Net Operatinl1. Income/(Loss)
2008 2007
County Water and Sewer $ 22.828,461 $ 10,181,124
N on-major enterprise funds ( 1 7,80 I ,466) (19,133,606)
Total $ 5,026,995 $ (8,952,482)
The Collier County Water and Sewer Fund net operating income increased by $12,647,337, The increase
in net operating income was the result of an increase in operating revenues of $8, II 0,279, or 9%, over the
previous fiscal year, while costs of operations, including depreciation, were down 2% overall. County
Water and Sewer payments in lieu of taxes paid to the General Fund of $3,349,000 were reclassified from
operating expense to operating transfers for financial statement purposes. Personal services expenses
and operating expenses decreased by 2% and 12'Yo, respectively. when compared to fiscal year 2007,
Capital Assets
Collier County's financial statements present capital assets in two distinct groups, those that are
depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that
are depreciated and land and construction in progress are examples of assets not depreciated, Collier
County's investment in capital assets for the governmental and business-type activities amounted to
$2,442,772,916, net of accumulated depreciation, This investment in capital assets. both purchased and
donated. includes land, buildings and improvements, machinery and equipment, parks, roads, beach
renourishment, bridges and drainage structures. Investment in capital assets for the current fiscal year, net
of depreciation, increased by $262,81 1,967 over the previous year. There was an increase in the
governmental activities of $214,464,557, or 16%. The proprietary fund share of the increase was
$48,347,410, and amounted to a 5% increase, rhe major factors behind these increases are as follows:
\\/ater and sewer, solid waste disposal and airport authority construction ill progress increases
amounted to $55,343,920. Of this amount. $45,354,223 was related to water and wastewater
facilities constructed bv tbe Countv Water and Sewcr District.
- ,
Capitalization as construction in progress of $238,891 ,987 of governmental activity related costs,
with $115,184,788 of this increase related to transportation projects, $73,920.055 related to
government facilities, including an emergency opcrations centcrs, libraries, a fleet facility and a
10
13 A ''4
courthouse annex and $49,787,144 in parks and recreation, stormwater, beach renourishment and
other projects.
Purchases of land and non-depreciable assets were $36,734,428 for fiscal year 2008.
Additional information regarding Collier County's capital assets can be found in Note 5 beginning on
page 52 of this report.
Debt Administration
At September 30, 2008, Collier County had net bonded revenue debt of $567,752,549 outstanding, an
increase of $24,092,476 from the previous year. The following table illustrates the balances of all
outstanding long-term debt for the fiscal years ended September 30, 2008 and 2007:
Outstanding Debt
2008
2007
Limited General Obligation Revenue Bonds $ 29,099,538 $ 27,342,246
Revenue Bonds 567,752,549 588,518,153
Florida Local Govermnent Loans 85,560,000 51,430,000
State Revolving Fund Loans 115,830,489 106,793,982
Line of Credit and Miscellaneous Notes 5,973,707 6,039,428
Total $ 804,216,283 $ 780,123,809
During tiscal year 2008 Collier County borrowed a total of $57,391,000 from the Florida Local
Government's pooled commercial paper program for purposes of constructing a Courthouse Annex, Fleet
Facility buildings, the Golden Gate and South Regional Libraries and an Emergency Operations Center,
as well as the purchase of new 800 MHZ equipment and radio locator systems,
During fiscal year 2008 Collier County drew $12,000,000 down on a low interest State Infrastructure
Bank loan. The proceeds of the loan were used in the construction of the 1-75 and Immokalee Road
interchange.
On October 10, 2007, Collier County issued the $6,215,000 Forest Lakes Roadway and Drainage
Municipal Service Taxing Unit Limited General Obligation Bonds, Series 2007, The County issued these
bonds for the purpose of providing funds to finance the costs of certain roadway lighting, roadway related
drainage and roadway restoration within the Forest Lakes Municipal Service Taxing Unit, and to pay
certain costs incurred in connection with the issuance of the Series 2007 bonds.
During fiscal year 2008 Collier County prepaid a total of $22,621,000 in variable rate commercial paper
debt. Prepayments totaling $12,100,000 were made on the County's Caribbean Gardens loan, issued
during fiscal year 2006 for the purchase of land and buildings commonly referred to as Caribbean
Gardens. This loan is secured by up to a .15 mill ad valorem tax levy. Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
11
"~,"_._---
~_"_'..__._ ____._.__~., T
~.,....-_--~,,--~--~~
__ M
" ,~-_.'--
13^ -
Gardens. This loan is secured by up to a .15 mill ad valorem tax levy, Collier County also prepaid
$6,400,000 in commercial paper debt related to the construction of the Vanderbilt Beach parking garage.
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 Notc 6 beginning
on page 53 of this report.
Budgetary Highlights
Budgetary comparison statements are provided in the basic financial statements for tbe General Fund and
the Community Redevelopment Fund. Budget columns are presented for both the original budget as well
as the final budget. These columns are followed by a column for actual revenues and expenditures and a
column for differences between final budget and actual revenues and expenditures.
Significant period expenditure budget increases and decreases, over $200,000 within a department, were
made and are outlined in the following table:
~artment
Budget
Increase/(Decr
ease)
Clerk of the Circuit Court
Clerk ofthe Circuit Court
Clerk of the Circuit Court
County Attorney
Other General Administration
Emergency Management
Transfers Out
Immokalee Redevelopment
Transfers Out
$ (601,500)
(200,000 )
3,-0 -0'0
,~)",)
217,358
1,119,611
438,9"7
2.863.008
267.607
200,000
Reason for Increase/(Decrease)
Decrease in operating expenditures to special item
Decrease in capital expenditures to special item
Increase to support court ordered bond expense
Outside counsel and professional services
External audit and tax deed application processing
Tropical Storm Fay preparation
Additional General Fund transfers to other funds
Additional contractural services
Additional Redevelopment transfers to other funds
Significant varianccs between actual results and final budget amounts in the General Fund occurred
during fiscal year 2008. Tax revenues were under budget by $9,875,376 primarily due to the practice of
not budgeting for the discount allowed for property taxes, The discount ranges from a maximum 4% to
I %, depending on thc date of payment. Interest income was under budget as interest revenues budgeted
within the Clerk of the Circuit Court's General Fund, were also budgeted in the Board of County
Commissioners' General Fund. Intergovernmental revenues were under budget primarily due to both
sales tax and state revenue sharing revenues being signiticantly under budget. General Fund general
government expenditures were under budget primarily due to a $4,000,000 watershed study that will be
ongoing from 2008-20 I O. The project was in the pre-planning stages during fiscal year 2008 and only a
small amount was spenL Also contributing to the budget to actual surplus in the general government
function was the Clerk of the Circuit Court's General Fund functions and the Board's Other General and
Administrative function, The Clerk of the Circuit Court's personal services were under budget by
$963,499 primarily due to leaving positions open due to attrition untilled and delaying pay increases until
mid year. The Board's Other General and Administrative function was under budget due to expenditures
for property insurance and remittances to other governments and municipalities being significantly less
than anticipated, General Fund culture and recreation expenditures were under budget primarily due to
surpluses in the Beach and Water Parks operation, as wcll as Library Administration,
t2
13 A ''4
Economic Factors and Year 2009 Budgets and Rates
The following factors were taken into account in preparing the fiscal year 2009 budget:
The population of Collier County decreased by .3% from fiscal year 2007 to fiscal year 2008,
During fiscal year 2008, the Florida Legislature continued to impose restrictions on the ability of
municipalities and counties to increase ad valorem millage rates.
The total number of building permits issued during FY -2008 was 20,580, a 30% decrease from
FY-2007.
The annual unemployment rate in Collier County, without seasonal adjustment, increased by
2.5% from FY-2007 to FY-2008.
Expected decreases in sales tax revenues and gas tax revenues.
The main focus of the Capital Improvement Program in FY -2009 is road construction, various
utilities projects and the finalization of general government facilities construction projects.
During fiscal year 2008, the General Fund unreserved fund balance decreased by $15,665,809 to
$61,952,935. As of February 9, 2009, $57,344,608 of the fiscal year 2008 unreserved fund balance has
been appropriated as carryforward for fiscal year 2009.
Other Discussion
The Clerk of Courts is currently involved in litigation with the County, The Court, in the final judgment
in Case #04-94ICA, consolidated with Case numbers 05-953CA and 05-1506CA, issued September 12,
2007, incorporates by reference three orders dated August 24, 2007, In Paragraph 8 of the Order
Granting. In Part, and Denying, In Part, the "Clerk's Motion for Partial Summary Judgment Regarding
Undisputed Roles of the Clerk" and Granting "Collier County's Cross-Motion for Summary Judgment on
the Undisputed Roles of the Clerk of Courts", the Court makes the determination that the Clerk has no
duty of preparing and certifying the accuracy of the County's financial statements, including the annual
management representation letter. Please see the court order attached as pages vii to xxii of the
transmittal letter. The Case is in the appellate process, however, pursuant to paragraph 10 of that same
order, the Board is and has limited the Clerk's scope and ability to determine facts through the audit and
examination process, that would allow the Clerk to represent that the financial statements, to our
knowledge, are prepared in accordance with Generally Accepted Accounting Principles (GA^P) and
include all transactions of the County.
Contact Information
This financial report is intended to give the user a general overview of Collier County Government's
finances. Any questions resulting from reviewal' this information may be addressed to:
Collier County Clerk of the Circuit Court
Department of Finance and Accounting
Court Plaza III, Suite 202
2671 Airport Road South
Naples, Florida 34112
Our office may also be contacted via the internet at www.collierc/erk.com.
I 3
Primary Government
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Current assets:
Cash, cash cquivaknts and investments $ 26B,367,830 $ 102,686,884 $ 371.054,714 $ 501,700
Receivables:
Trade, net 2,978,333 11,253.083 14.231,416
Contributions 15,581,910 15,581,910
Special assessments 85,689 712,1IB 797,807
Intcrcst 4.428.706 963,024 5,39],730
Unbilled revcnue 5.405,140 5.405, t40
Notcs B8,I95 88,195
Due from other governments I 1.1 02.299 \'039,049 12,141.348
Internal balances ( 4,694,(19) 4,694,619
Deposits 5]6.446 13.294 529,740
Inventory B62.130 3.61BJ1B 4,480,448
Prepaid costs 11,693 50,192 61,885
Restricted assets:
Cash. cash equivalents and investments 39,684,980 8,003,143 47,688,123
Total current assets 339,013,592 138,438,864 477,452,456 501,700
Noncurrent assets:
Restricted assets:
Cash. cash equivalents and investments 295,011,379 32,850,815 327,862,194
Receivables:
Special assessments 341.798 1,060,128 1,401,926
Notes 13,703,097 3.457,704 t7,160,801
Deferred charges 5,135.357 \,669,166 6,804,523
Capital assets:
Land and nondepreciablc capital assets 733,829,124 161,829,355 895,658,479
Depreciable capital assets, net 793,435,998 753,678,439 1,547,114,437
Total noncurrent assets 1,84\,456,753 954,545,607 2,796,002,360
rotal assets 2,180.470,345 1,092,984,471 3,273,454,816 501.700
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
The notes to the tinancial statements are an integral part or this statement.
14
13A ~
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
13A
.~
Primary Government
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities:
Accounts payable $ 27,837,366 $ 7,725,378 $ 35,562,744 $
Wages payable 5,894,344 1,688.212 7,582,556
Rctainage payable 810,740 805,585 1,616,325
Due to other governments 3,532,526 86,140 3,618,666
Due to individuals 329,410 493,589 822,999
Self-insurance claims payable 5,552,207 5,552,207
Compensated absences 10,040,625 1,746,234 11,786,859
Capital lease obligations 153,670 126,145 279,815
Unearned revenue 2,673,071 2,673,071
Interest payable 8,262,924 2,730,339 10,993,263
Bonds and loans payable 22,332,377 11,087,179 33,419,556
Liabilities payable from restricted assets:
Accounts payable 21,500,286 938,511 22,438,797
Rctainage payable 17,363,360 6,152,110 23,515,470
Refundable deposits 821,334 460,995 1,282,329
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 127,104,240 34,491,944 161,596,184
Noncurrent liabilities:
Arbitrage rebate 677.752 t ,505,580 2,183,332
Self-insurance claims payable 4,733,793 4,733,793
Compensated absences 11,134,457 436,559 11,571,016
Capital lease obligations 598,870 491,740 1,090,610
Landfill post-closure liability 1,815,160 1,815,160
Net pension obligation 905,979 905,979
Bonds and loans payable, net 519,271,370 251,452,650 770,724,020
Total noncurrent liabilities 537,322,221 255,701,689 793,023,910
Total liabilities 664,426,461 290,193,633 954,620,094
NET ASSETS
Invested in capital assets, net of related debt 1,022,001,435 658,864,846 1,680,866,281
Restricted for:
Growth related capital expansion 136,996,095 15,637,780 152,633,875
Transportation capital projects 97,820,231 97,820,231
Conservation Collicr 30,952,267 30,952,267
Tourist development 25,143,253 25,143,253
Debt service 4,099,533 14,226,979 18,326,512
Renewal and replacement 300,000 300,000
Unrestrictcd 199,031,070 113,761.233 312,792,303 501,700
Total net assets $ 1,516,043,884 $ 802,790,838 $ 2,318,834,722 $ 501,700
15
. ,."..-
-
"-'--,-".--~-' --.. <..,-..,
-
..- ..-
-----, '--~....._-
-
COLLIER COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE nSCAL YEAR ENDED SEPTEMBER 30. 2008
13A
,
FUNCTIONS/PROGRAMS
Expenses
Fees, Fines and
Charges for
Services
Program
Operating
Grants and
Contributions
Primary Government:
Governmental Activities:
General governmt:nt
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Interest on long-term debt
Total governmental activities
$ 112.7IY,982 $
183,288.162
22.147,876
65,979,880
13,475,268
IJ.Sl1.552
43.435.217
21,445,540
470,(103,483
30,467,910 $
12,544,766
6,539,585
3.936,325
468,476
532,392
8,429.369
935,536
3.501,247
l.OI8,598
3,552.541
9,190.584
1,792,843
210,686
68,918,829
20,202,035
Business-type Activities:
Water and Sewer
Solid Waste
Airport Authority
Mass Transit
Emergency Medical Services
85.502,736 100,030,477 121,479
30,024,1154 36,494,828 74,234
5,081.X22 3,546.546
9,418,858 1,1173,864 4,025.597
30.160,498 16,167,399 171,984
1611,187,908 157,31],l14 4,393,294
$ 636,191,451 $ 226,23 I ,943 $ 24,595,329
rural busincss~type activities
Total primary government
Component Units:
Collier County Industrial Development Authority $ 14,195 $ X,383
Collier County Health Facilities Authority 32,5110
Collier County Ilousing Finance Authority 122.500 93.500
Collier County Educational Facilities Authority 16,788 18,260
Total component units $ 153,483 $ 152,643
(jeneral revenues:
Propeny taxes
Gas taxes
Saks taxes
l'ounst taxes
Other taXl:S
Slate revenue sharing
InlerCS!lIli.;ome
('hangl' ill lilir value uf invl:stmcnts
MIscellaneous
Spl'ual item-bond expense (See Note 18)
fransfns. !It:l
I'ulal gl:l1-:ral n:vt:tlues, spt:cial items and transfers
Change in nct assets
Net assets - beginning, as previously reported
Priur pcriod adjustment
Net assets - beginning, as restated
Net assets - ending
The notes to the tinancial stlltt:ments arc an in1t:gral part of this statement,
16
13A q
Revenues
Net (Expense) Revenue and Changes in Net Assets
Capital
Grants and
Contributions
Primary Government
Governmental Business-type
Activities Activities
Total
Component
l1nits
$ 8,649,324 $ (66,667,206) $ (66,667,206)
2,525,684 (164,716,465) (164,716,465)
4,364,371 (10,225,322) ( 10,225,322)
31,8]7,924 (26,653,090) (26,653,090)
419,388 (3,396,820) (3,396,820)
(11,186,317) (11,186,317)
4,505,825 (30,289,337) (30,289,337)
(21,445,546) (21,445,546)
52,302,516 (334,580, 103) (334,580,103)
21,314,876 $ 35,964,096 35,964,096
6,545,008 6,545,008
1,559,991 24,715 24,715
4]9,722 (3,879,675) (3,879,675)
18,030 ( 13,803,085) ( 13,803,085)
23,332,619 24,851,059 24,851,059
$ 75,635, t35 (334,580,103) 24,851,059 (]09,729,044)
$ (5,812)
32,500
(29,000)
1,472
(840)
]27,244,938 ]27,244,938
t8,859,845 18,859,845
30,003,927 30,003,927
14,795,623 14,795,623
4,051,145 4,051,145
8,975,798 8,975,798
34,532,805 5,928,045 40,460,850 3,641
(802,753) (212,241) (t,014,994)
10,642,523 76,708 10,719,231
(3,287,593) 13,287,593)
(28,348,084) 28,348,084
416,668,174 34, t 40,596 450,808,770 3,641
82,088,071 58,991,655 141,079,726 2,801
1,4]3,955,813 745,274,760 2,179,230,573 498,899
(1,475,577) (1,475,577)
1,4]3,955,813 743,799,183 2,177,754,996 498,899
$ 1,516,043,884 $ 802,790,8]8 $ 2,] 18,834,722 $ 50t,700
17
13A
1
COLLIER COLI NT\', FLORIDA
BALANCE SHEET
(;OVERNME~TAL Fl!NDS
FOR THE FISCAL YEAR ENIlED SEPTEMBER 311, 2008
Road Other Total
(reneral lmpact Road Community (iovernmental Governmental
Fund Districts Construction Redevelopment Funds Funds
ASSETS
Cash. cash cqUlvaknls and Investments I 74.367,l!-:2 I H5.002397 I 109,208040 I 5,577.754 I 282,736,602 I 556,892,075
ReceIvables
Interest 3,932.342 27,954 468,410 4A2S,706
Trade, net 553,]96 16.143 417,190 3,2]5 1344,633 2,334,377
Notes 1,327,870 7,130.682 24.445 5,308,295 13.79U92
Spenal assessments 427.487 427487
Due from other funds 1,833,421 8.'125 1.223.220 3,065,566
Due from other governments 2,4'nlO4 402,680 3.]24,983 4,t)Y8,425 11.019,1':l2
Deposits 3,50U 3,5()(]
Inventory 15'.u94 282_609 442,003
Advances to other funds 5,127,194 10,935 100 16,062,294
Prepaid costs 11_217 476 11,693
rotal assets $ 89,809,020 I 92,551,902 $ 112,758,638 $ 5,633,368 $ 307,725,257 I 608,478,185
LIABILITIES AND FlI~D BALANCES
Liabilities:
Accounts payable $ 13,540,547 I 2,'1123:)3 $ 8,.-117,482 I 86,992 I 23.644,123 I 48,506,477
Wagespayahle 3,713,24'1 94,675 27,151 1.944,132 5,779,207
Due to other funds 1.367995 265 1,2R4 1,88~U88 3,,257,932
Due to other governments 1363518 2,168,944 3,532,462
Due to mdlvlduals 303,lb2 26.248 329,410
Deferred revenue 37L092 7,130682 1%,124 24.445 8,27'1,787 16,002,130
Refundable deposits 594.037 200.00U 27,297 821,334
Retalllage payable 7,267,1I60 6.128,842 4,778,198 18,174,100
Advances from other funds 16,062,294 16,062,294
lotalllabilltll:S 21,253,600 17,3 I (),34ll 14,938,407 131::.588 58,824,411 112,465,346
Fund balances:
Reserved fiJr
Encumbnmces 1,30Ll80 12,4[(U\14 50,696.872 12'1331 64,454,'151 128,993.148
DepOSits 3,500 3,500
InventOl)' 159,344 218 159,612
Advances to other funds 5,127,194 lU,935,100 16,062,294
Prepaid costs IUI7 476 1 L693
Debt scrvlce 4.099533 4,(J'J4,533
Unreserved, reported In'
General fund 61,952.\135 61,952,935
SpeCIal revenue funds 5,365.449 116,677,886 122,(l41,335
Debt service funds 1,450,878 1.950.11.78
Capital project funds 62,830,74X 47,123,35'1 50,7!lI,W4 160,735,'11 1
TOIaI fund balances 611.,555,420 75,241,562 lJ7,820,231 5,444,780 248,900,846 496.012,839
I otalllabill[WS and fund halances $ 89)\09,020 I 92,551,lJ()2 S 112,758,638 $ 5,633,368 I 307,725,257 I 608,47K,185
The notes tu the fmancHll statements arc an IDtegral parl of this sratemt;l1l
IK
COLLIER COUNTY, FLORIDA
RECONCILIATION OF TIlE BALANCE SIIEET OF GOYERNMENTAL FUNDS
TO THE STATEMENT m' NET ASSETS
FOR TIlE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Differences in amounts reported for governmental activities 10 the statement of net assets on
pages 14-15:
Fund balances. total governmental funds
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the funds. Those assets consist of:
Land and other non-depreciable assets
Construction in progress
Depreciable assets, net of $391 ,001 ,598 in accumulated
depreciation.
Certain accounts receivable are not financial resources and therefore are not reported in the
governmental funds.
Certain long-term assets are not financial resources and therefore are not reported in the
governmental funds.
Certain revenues will be collected after year-end, but are not available to pay for the current
period's expenditures, and therefore are reported as deferred revenue in the funds,
Certain liabilities applicable to the County's governmental activities are not due and payable in
the current period and accordingly are not reported as fund liabilities. Interest on long~tcrm
debt is not accrued in the governmental funds, but is re.:ognizcd as an expenditure when due.
All liabilities are rcported in the statement of net assets. Balances at September 30,2008 arc:
Accrued interest on bonds
Bonds and notes payable
Capital lease obligations
Compensated absences
Arbitrage rebate liability
Unamortized deferred loss
Unamortized premium
Unamortized discount
Internal service funds are used by the County to charge self. insurance and fleet management
services to individual funds. The assets and liabilities of the internal service funds are included
in governmental activities in the statement of net assets. Internal service fund net assets are:
Total net assets ~ governmental activities
The notes to the financial statements are an integral part of this statement.
FJ
$ 311,343,475
422,485,649
779,047,474
$ (8,262,924)
(525,436,000)
(752,540)
(20,97t,667)
(677,752)
376,879
(17,107,361)
562,735
13A ~1
$ 496,012,839
1,512,876,598
15,581,910
5,135,357
13)29,059
(572,268,630)
45,376,751
$ 1,516,043,884
13A _
COLLIER COUNTY, FLORIDA
STATEMENT OF REYENlIES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL HINDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Road Other Total
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
Revenues:
Taxes $248,t 50.424 S $12,975,896 $ 3,182,300 $ 93,347,805 $ 357,656,425
Licenses and permits 140,761 t7,231,731 17,372,492
Intergovernmental 42.093,551 9,186,185 26,172,171 77,451,907
Charges for services 17,5 SX,8X2 5,052 3,229.429 19,905,622 40,698,985
Fines and forfeitures 616,664 3,149,342 3,786,006
Interest income 30,090 172 6.884 23.490 242,379 3,968.330 34,331,255
Change in fair value
of investments (i12,06TJ 1127,916) (165,t 17) (8,356) (407,275) (750,728)
Impact tees 29,14] .348 7,537,672 36,679,020
Special assessments 2,941,370 2,941,370
Miscellaneous 2,308,827 239,673 4,918,580 5,742 3,194,477 10,667,299
Total revenues 340,937,217 29.265,041 30,168,463 3.422,065 177,041,245 580,834,03 I
Expenditures:
Current:
General governmelH 63,460,949 33.437,058 96,898,007
Public safety 152,093,485 23,649,002 t 75,742,487
Physical environment 896,971 8,417,293 9,314,264
,
Transportation Ut9,t 18 6,355,505 40,678,452 48,253,075
Economic environment ])i49.7\}4 1,096,445 to,532,522 13,478,761
Human services ]0,792,336 2,063,033 12,855,369
Culture and recreation 16.477,418 19,978,570 36.455,988
Debt service:
Principal 43,080,410 43,080,410
Interest 21,816,163 2t,816,163
Fisca] charges t 64,870 164,870
Capital outlay 4,356,857 63,2I4}i69 69,083,387 866,331 148,287,476 285,808,920
Tota] expenditures 249,927,8111 64,433,987 75,438,892 1,962,776 352,104,849 743,868,314
Excess (deficiency) of revenues
over (under) expenJitures 91,009,407 (35,16S,946) (45,270,4291 1,459,289 ( 175,063,604) ( 163,034,283)
Other financing sources (uses):
Bonds issued 6,215,1100 6,215,000
Premium on bonds issued 30,815 30,815
Loans issued 12,000,0011 57,391,000 69,391.000
Sale of capital assets 223,103 21,5t8 244,62 t
Insurance proceeds 7,074 3,517 197,677 208,268
Transfers in 8,326,422 26,160,062 110,337,687 t44,824,l71
'1 I'unsfers out (109,047,625) (16,962,800) (47\,979) 136,592,961) (163,075,365)
I'otul other linaneing sources (uses) (t 00,49 1.0261 21.200,779 (471,979) t 37,600,736 57,838,5tO
Special item - bond expenditure (See Note IS) (3,287,593) (3,287,5931
Net change in fund balances ( 12,769,212) (35,l68,946) (24,1169,650) 987,310 (37,462,868) (108,483,366)
Fund balaIH,;es at beginning of year 8 I ,324,632 110,410,508 121,889,881 4,507,470 286,363,714 604,496.205
Fund balances at end of year $ 68,555,420 $75,241 ,562 $97,820,231 $ 5,494,780 $ 248,900,846 $496,Ot2,839
The notes to thc finanCial stah'ments un: ,m 1Illegral parl ufthJS stllll:mcnl
2U
COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2008
Differences in amounts reported for governmental activities in the statement of activities on
pages J 6-17:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated uscful1ives and reported as
depreciation expense.
Capital outlay
Depreciation expense
$ 285,808,920
(60,350,414)
Donations of capital assets arc not financial resources to governmental funds, but receiving
donated assets increases net assets in tht: statement of net assets.
Capital assets transferred to proprietary funds arc not recorded in the governmental funds as
there is no now of current tinancial resources.
In the statement of activities, the loss on thi;: sale of capital assets is reported. However, in the
governmental funds the proceeds from the sale of capital assets increase financial resources.
The change in net assets differs from the change in fund balance by the net book value of
assets disposed.
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds.
Debt proceeds provide current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net assets.
Repayment of principal on long-term debt is an expenditure in governmental funds, but a
reduction ofJong-term liabilities in the statement ornet assets.
Bond and loan principal payments
Payments on capital Icase obligations
$ 42,936,000
144,410
Certain amounts rcpOlted in the statement or activitics do not require the use of currcnt
financial resources and therefore arc not reported as cxpenditures in the governmental funds.
Increase in compensated absenccs
Accrued intcrest on bonds
Amortization of deferred charges, net
Amorti/.ation of dcferrcd loss
Amortization of premium
Amortization of discount
Increase in arbitrage rcbatt: liability
$ (1,782,479)
169,597
(J 73,475)
(94,219)
l,t25,409
(28,336)
(463,489)
The net revcnues of internal service funds are reported with governmental activities.
Change in net assets - governmental activities
Thc notes to the financial statements are an intcgral part or this statement.
21
13A
11
$ (108,483,366)
225,458,506
1,722,918
(23,782,028)
(2,542,377)
304.804
(75,636,815)
43,080,410
(1,246,992)
23,213,01 J
$ 82,088,071
COLLIER COUNTY, FLORIDA
GENERAL FUND
STATEMENT OF REVENVES, EXPENDITlJRES AND CHANGES IN FUND BALANCES
Ill'DGET AND ACTUAL (NON-GAAP)
FOR THE FtSCAL YEAR ENDED SEPTEMBER 30, 2008
13A
II
Variance with
Final Budget
Original Final Favorable
Hudget BudJtct Actual (Unfavorable)
Revenues:
Taxes , 25~,025,800 , 258,025,~00 $ 248,150,424 $ (9,875,376)
Licenses and pennits 161.000 161,000 140,761 (20,239)
Intergovernmental 47.412.500 47.412,545 42,093,551 (5,318,994)
Charges for services 24,70],448 24,832,668 20,962,n2 (3,869,886)
Fines and forfeitures 575,700 575,700 636,664 60,964
Interest income 34,632,300 34,612,300 30,090,172 (4,542,12~)
Miscellant:olls 10,466,400 10,544,402 12,Ot8,427 1,474,025
Total revenues 375,977,14~ 376,184,415 354,092,781 (22,091,634 )
Expenditures:
Current:
Ceneral government
Board of County Commissioners personal services 1,056,700 1.056,700 986, 1 ~O 70,520
Hoaru of County Commissioners operating 105,200 133,200 140,039 (6,839)
County munugcr administrative personal services '!73,600 980.200 919,839 60,361
County manager administrative operating 3 ].300 31,300 60,324 (29,024 )
Budget and manugement personal services l:l66.XOO 860,200 ~00.416 59,784
Budget and management operating 72.200 72.200 73.590 (t,390)
Administrative services personal servi\.:es ),918AOO 5,992,400 5,453,586 538,814
Administrative servict:s operating 2.lBS,700 2.736,370 2,817,%0 (81,1901
Administrative servict:s capital outlay 204,]00 196,800 60,673 136,127
Human resources admInistration personal servIces 1.583,100 1.605,100 ],551,058 54,042
Human resources administration operating 311,]00 2X9,631 271,595 18,036
Human resourGes administration capital outlay ],000 3,0110 3,000
Clerk of the Circuit Court personal services 7,188,500 7,270,000 6,306,501 963,499
Clerk oflhe Circuit Cuurt operating 4,034,600 3,433,100 2,517,~42 915,25~
Clerk of the Circuit Court capital outlay 518,200 318,200 3,328 314,872
Property Appraiser personal services 4,914.546 4,9]4,546 4,~t3,602 100,944
Property Appraist:r operating 2,291,TD 2,291,733 2,]33,~~0 157,853
Property Appraiser capital olltlay 209,117 209.117 66,190 t42,927
Tax Collector personal services 9,208,581 9,092,t26 l},O91,126
Tax Collector operating 2,491.692 2.400,597 2.341.454 9,143
Tax Collector capital outlay 103,41 ] 2](),569 2IU,56l)
County attorney personal servIces 3,173,600 3.173.600 3,034,355 139,245
County attorney operating 316,400 533.758 463,674 70,084
County attorney cupital Ilutlay 44,000 16,642 16,120 522
Natural resources personul slTvices 221.700 224,1100 218,630 5.370
Nutural resources operatIng .U:~n ,6UU 3.885,300 204.183 3,681,t ]7
Natural resources cupiLul ouLllJ.'\- L500 1.500 1.500
00
-"
1 3A jl1
'.
Circuit court costs operating 83,700 73,800 28,722 45,078
Circuit court costs capital outlay 9,900 7,814 2,086
Courthouse security personal services 106,200 106,200 95,325 10,875
Courthouse security operating 1,016,600 1,016,600 947,738 68,862
Courthouse security capital outlay 62,000 62,000 48,426 t3,574
County court cost operating 46,200 43,200 9,662 33,538
County court cost capital outlay 3,000 2,654 346
State Attorney operating 519,400 519,400 498,762 20,638
State Attorney capital outlay 23,000 23,000 19,610 3,390
Public Defender operating 2t6,100 216,100 176,628 39,472
Public Defender capital outlay 4,100 4,100 1,933 2,167
Other general administrative personal services 60,000 126,000 125,960 40
Other general administrative operating 7,992,600 9,t 12,2t I 6,834.876 2,277,335
Facilities management personal services 3,509,300 3,539,300 3,527,678 I t,622
Facilities managemenl operating 7,836,700 8,020,577 8,126,848 (106,27t)
Facilities management capital outlay 268,000 255,390 158,433 96,957
Sheriff personal services 3,812,900 3,812,900 3,945,863 (132,963)
Sheriff operating 156,500 156,500 133,382 23,118
Sheriff capital outlay 20,912 20,912
Supervisor of Elections personal services 1,728,500 1,775,650 1,619,698 155,952
Supervisor of Elections operating 2,230,100 2,156,739 1,894,6t3 262,126
Supervisor of Elections capital outlay 3,500 24,856 124,303 (99,447)
Real property management personal services 932,000 932,000 871,881 60,119
Real property management operating 37,400 37,400 62,213 (24,813)
Real property management capital outlay 2,124 (2,124)
Total general government 83,224,380 83,979,624 73,893,372 10,086,252
Public safety
Sheriff personal services 120,892,900 t20,892,900 122,393,257 (1,500,357)
Shcriff operating 27,488,700 27,467,788 25,788,60t 1,679,t87
Sheriff capital outlay 4,487,600 4,487,600 3,086,275 1,401,325
Emergency management administration personal services 830,500 830,545 821,124 9,421
Emergency management administration operating 202,700 641,627 434,983 206,644
Emergency management administration capital outlay 10,000 10,000 9.311 689
Ilclicopter operations personal services 699,400 745,400 715,515 29,885
Helicopter operations operating 864,800 818,800 837,662 (18,862)
Medical examiner scrvices operating 1,118,200 t,t 18,200 1,102,343 15,857
Total public safety 156,594,800 157,012,860 155,189,071 1,823,789
Physical environment
Conservation and resource management pcrsonal services 807,700 813,000 727,454 85,546
Conservation and resourcc management operating 210,300 2 to,300 147,265 63,035
lnunokalee cemetery operating 25,800 25,800 22,252 3,548
Total physical environment I,(J43,800 t,049,100 896,971 152,129
Economic environment
Veterans services personal services 285,700 285,700 274,745 10,955
Veterans services operating 80,200 80,200 50,183 30,017
Impact fee assistancc operating 750,000 750,000 481,580 268,420
Housing and urban improvement operating t,6t2,100 1,612, tOO 1,524,866 87,234
Total economic environment 2,728,000 2,728,000 2,331,374 396,626
23
1 3 A ~
or';'
Human services
lIealth Care Rcsponsibdity Act operating 50.00U 50,000 14,02J 35,979
Domestic animal services personal services 1,967.30U 1,967,300 1,821,129 146.171
Domestic animal services operating 784.600 784,600 818,061 (33,461)
Domestic animal services capital outlay 297,100 415,075 106,809 308.266
Health department operating 1.784,SUU 1,789,5UO 2,054,410 (264,910)
Health department capital olltlay 20,000 20,000 18,789 t,211
Mental health operating 917,600 917,60U 1,142,425 (224,825)
Client assistan\;c personal services 605.600 6U5,600 569.376 36,224
Client assistance operating 4,142,700 4.170.573 4,041,577 ! 28,996
Client assistance capital oUlla)' 3,000 3.000 3.00U
Public services division office personal services 304.400 313,300 301,993 11,307
Public services division office operating 19,700 20,000 29,344 (9,344)
Total human services 10,90 I ,500 11,056,548 10,917,934 138,614
Culture and recreation
Library administration personal services 5,549,200 5.653,700 5,231.393 422,307
Library administration operating 1.238.100 1.238,tOO 1,356,402 (t 18,302)
Library administration capital outlay 240,500 240.500 2t9.390 2Lt 10
!.:xtension scrviccs personal services 182.300 184.300 177. 929 6,371
Extension scrvices operating 11.900 ] ].900 10,892 L008
Extension scrviccs capital outlay LOOO 1,000 1,000
Beach and watcr park operation personal services 5.293.700 5.279,500 4,779,954 499,546
Beach and water park operation operating 5.434.700 5.417,226 4.920,848 516,378
Beach and water park operation capital outlay 190.100 215.874 172,194 43,680
Total culture ami recreation 18,141,500 18.262, I 00 16,870,002 1.392,098
Total expenditures 272,633,980 274,088,232 260,098,724 13,989,508
Excess of revenues over expenditures 103,343,]68 102.096) 83 93,994,057 (8,102,126)
Other financing sources (uses):
Sale of capital assets 350,000 350.000 223, I 03 (t 26,897)
Insurance proceeds 2,254 7,074 4.820
Transfers in LOOO,300 2.000,300 4,922,522 2.922,222
Transfers out 1118,2(,(.968) (121.124,976) (110,747,625) 10,377,351
Total other financing sources (uses) (115,9t 1.(68) ( II 8,772,422) ( 105,594,926) 13,177,496
Special item - bond expenditure 3.552.500 3.287.593 264,907
Net change in fund balance ( 12,568.500) (20.228,739) (14,888.462) 5,340,277
Fund balance at beginning of year 50,607,800 58,018,237 58,018,237
Fund balance at end of )-'ear I 38,039,300 I 17,789,498 $ 43,129,775 $ 5,340,277
RecllnciJiation:
Net changc in fund balance, budgetary basis
Bud debt expense
;-":et change in fair vulue of investments
/\dvances budgeted as mmstl:rs
Impw.:t fb: assistance receivable
Net change in fund balance. C;AAP basis
$ (14,8~gA62)
(20.166)
(42.1J64)
1,71J1J.000
481,580
$ 02,769,2[2)
The notes to thl: tinanclill statements i:lre an llltegral parl ll( Ihis statement.
24
13A II
COLLIER COUNTY, FLORIDA
COMMUNITV REDEVELOPMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Variance with
Final Budget
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenues:
Taxes $ 3,182,300 $ 3,182,300 $ 3,182,300 $
Interest income 10,000 10,000 242,379 232,379
Miscellaneous 5,742 5,742
Total revenues 3,192,300 3,192300 3,430,421 238,121
Expenditures:
Current:
Economic environment
Bayshore/Gateway personal services 318,000 349,020 348,904 116
Bayshore/Gateway operating 679, I 00 698,100 209,345 488,755
Bayshore/Gateway capital outlay 1,454,000 1,254,000 863,642 390,358
Immokalee redevelopment personal services 180,200 215,381 159,284 56,097
Immokalee redevelopment operating 387.000 619,426 378,912 240,514
Immokalee redevelopment capital 68,000 68,000 2,689 65,311
Total expenditures 3,086,300 3,203.927 1,962,776 1,241,151
Excess (deficiency) ofrcvenues over
(under) expenditures 106,000 (11,627) 1,467,645 1,479,272
Other financing uses:
Transfers out (500,000) (700,000) (471,979) 228,021
Total other financing uses (500,000) (700,000) (471,979) 228,021
Net change in fund balance (394,000) (711,627) 995,666 1,707,293
Fund balance at beginning of year 3,985,100 4,236,526 4,236,526
Fund balance at end of year $ 3,591, I 00 $ 3,524,899 $ 5,232,192 $ 1,707,293
Reconciliation:
Excess of revenues over expenditures, budgetary basis
Net change in fair value of investments
Net change in fund balance, GAAP basis
$
995,666
(8,356)
987,310
$
2S
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
HUSIOt'Ss-typc ActIVitieS Enterprise Funds
C'lJunty Water
and Sewer
ASSETS
Total
Current assets:
Cash, cash equivalents and investments
Receivables'
'l'radc, net
Special assessments
Interest
Un billed revenue
Due from other funds
Due from other governments
Deposits
Inventory
Prepaid costs
Reslm;ted assets'
Cash, cash equivalents and Investments
Total current assets
(lther
Funds
$
7'<;,889,646
$ 2'>.797,238
5,]06,744
712.IIX
827,069
5,12S,nO
11.903
116.31.'i
lL294
.3 A4~U44
7,256,23.1-
98,506,847
Noncurrent assets:
Reslncted assets
Cash, cash eqUIvalents and investments
Receivables,
Special assesstnl:nlS
Notes
Deferred charges
Capital assets'
1 ,and and nondepreciable c<lpital assets
Depreciable capital assets, net
Total noncurrent assets
32,8S0,XI5
1,060,128
3.457,704
1-609.166
143,498,438
722,431,027
904,967,278
!'OU3,474,125
Total assets
6,146,339
135,955
279,860
71210
922,734
170J'74
50,1'12
746,909
35,320,511
18,330,917
31,247,412
49578,329
84,898,840
26
$ 102,686,884
11,253,083
712,118
963,024
5,405,140
83,113
1,039,049
13,2Y4
],618,318
51J,1Y2
8,003,143
133,827,358
13A
1-
Governmental
ActIvities ~
Internal Service
Funds
$
46.172,114
643,956
118,495
83,107
512,946
420,127
47,950,745
32,850,815
1,060,128
3.457,704
1,669,166
161,829,355
753,678,439
954,545,607
1,088,3 72, 965
14,388,524
14,388,524
62,339,269
(Continued)
,
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
13A
l,t1
':\1'41
';;1
Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
LIABILITIES
Current liabilities:
Accounts payable $ 4,337,105 $ 3,388,273 $ 7,725,378 $ 831,175
Wages payable 875,626 812,586 1,688,2 I 2 115,137
Retainage payable 763,343 42,242 805,585
Due to other funds 8,9t4 73 8,987 255
Due to other governments 61,786 24,354 86,140 64
Due to mdividuals 71,538 422,05 I 493,589
Self-insurance claims payable 5,552,207
Compensated absences 1,020,949 725,285 1,746,234 162,732
Capital lease obligations 126,145 126,145
Interest payable 2,730,339 2,730,339
Bonds and loans payable 11,087,179 11,087,179
Liabilities payable from restricted assets:
Accounts payable 938,51 I 938,5tJ
Rdainage payable 6090,136 6t,974 6,152,110
Refundable deposits 154,880 306,115 460,995
Notes payable 72,707 72,707
Unearned revenue 378,820 378,820
Total current liabilities 28,213,013 6,287,9 I 8 34,500,931 6,661,570
Noncurrent liabilities:
Arbitrage rebate 1,505,580 1,505,580
Self-insurance claims payable 4,733,793
Compensated absences 255,237 181,322 436,559 40,683
Capital lease obligations 491,740 491.740
Net pension obligation 905,979
Landfill post-closure liability I,RI5,160 t,815,160
Bonds and loans payable, net 25 I ,452,650 25 I ,452,650
Total noncurrent liabihties 253,2 I 3,467 2,488,222 255,701,689 5,680,455
Total liabilities 281,426,480 8,776,140 290,202,620 12,342,025
NET ASSETS
Invested in capital assets, net of related debt 609,904,402 48,960,444 658,864,846 14,388,524
Restricted for growth related capital expansion 15,637,780 15,637,780
Restricted for renewal and replacement 300,000 300,000
Restricted for debt service 14,226,979 14,226,979
Unrestricted 81,978,484 27,162,256 109,140,740 35,608,720
Total net assets $ 722,047,645 $ 76, I 22,700 798, I 70,345 $ 49,997,244
Cumulative consolidation adjustment for intemal service fund activities related to enterprise funds. 4,620,493
Net assets of Business-type ActIVities $ R02,790,838
The notes to the financial statements are an integral part of this statement.
27
'_'''W_~
'-'-
-----'-,..--_.._'-----
..._".-.._-,,,""..... ,"
,'-"
.~~__"_h_._
-------'--_..._-
-
COLLIER COUNTY, FLORIDA
ST A TEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
'I
Business-type Activities Enterprise Funds Governmental
Activities ~
County Water Other Internal Service
and Sewer Funds Total Funds
Operating revenues:
Charges for services $ 98,982,033 $ 56,099,681 $155.081,714 $ 71,392,559
Insurance proceeds 4,011,040
Miscellaneous 709,807 1,521,593 2,231,400 687,070
Total operating revenues 99,691,840 57,621,274 157,313,114 76,090,669
Operating expenses:
Personal services 23,460,326 2\'966,708 45,427,034 3,053,585
Operating 26,246,368 50,325,155 76,571,523 61,745,355
Depreciation and amortization 27,156,685 3,130,877 30,287,562 367,265
Total operating expenses 76,863,379 75,422,740 152,286,119 65,166,205
Operating income (loss) 22,828,461 (17,801,466) 5,026,995 10,924,464
Non-operating revenues (expenses):
Operating grants and contributions 12 \,479 4,271,815 4,393,294
Interest income 5,560,834 367,211 5,928,045 201,550
Insurance reimbursement 42,197 34,511 76,708
Change in fair value of investments (171,151 ) (41,090) (212,241 ) (52,025)
Rebatable arbitrage (282,867) (282,867)
Interest expense (8,883,950) (10,113) (8,894,063 )
Loss on disposal of capital assets (17,605) (238,010) (255,615) (21,274)
Total non-operating revenues (expenses) (3,631,063 ) 4,384,324 753,261 128,251
Income (loss) before contributions and transfers 19,197.398 (13,417,142) 5,780,256 11,052,715
Capital grants and contributions 21,314,876 12,114,633 33,429,509 13,690,992
Transfers in 224,203 24,650,217 24,874,420
Transfers out (4,576,519) (2,046,707) (6,623,226 )
Change in net assets 36,159,958 21,301,001 57,460,959 24,743,707
Net assets - beginning, as previously stated 687,363.264 54,821,699 25,253,537
Prior period adjustment (1,475.577)
Net assets - beginning, as restated 685,887,687 54,821,699 25,253,537
Net assets - ending $ 722,047,645 $ 76,122,700 $ 49,997,244
Consolidation adjustment for internal service fund activities related to enterprise funds. 1,530,696
Change in net assets of Business-type Activities $ 58,991,655
The notes to the financial statements are an integral part of this statt:Jl1ent.
2B
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13 A III
Governmental
Activities.
County Other Internal Service
Water and Sewer Funds Tota] Funds
Cash flows from operating activities:
Cash received for services $ 99,569,348 $ 48,862,066 $148,431,414 $
Cash received from other funds for services 64,846,369
Cash received from employees for services 6,636,665
Cash rCl.:cived from insurance 3,657,200
Cash received from other governments for services 18 18 464,435
Cash n:ceived from refundable deposits 50,000 524,714 574,714
Cash received from retirees for services 1,269,945
Cash payments on behalf of retirees (1,109,750)
Cash payments for goods and services (27,254,482) (43,369,790) (70,624,272) (62,390,338)
Cash payments to employees (23,360,622) (21,764,418) (45,125,040) (3,003,320)
Cash payments on refundable deposits (26,000) (631,826) (657,826)
Net cash provided by (used for)
operating activities 48,978,262 (16,379,254) 32,599,008 10,371,206
Cash flows from non-capital financing activities:
Cash received from operating grants 5,142,985 5,142,985
Cash transfers from other funds 224,666 28,449,232 28,673,898
Cash transfers to other funds ( 4,657,102) (5,834,181) (10,491,283)
Net cash provided by (used for) non.
capital financing activities (4,432,436) 27,758,036 23,325,600
Cash flows from capital and related
financing activities:
System development charges 10,002,538 10,002,538
Special assessment collections 659,742 659,742
Receipts from insurance reimbursements 42,197 34,511 76,708
Proceeds from disposal of capital assets 359,135 29,5t7 388,652 14,564
Proceeds from capital grants 1,894,500 2,t84,153 4,078,653
Proceeds from state revolving loans 1,748,134 1,748,134
Payments for capital acquisitions (55,165,974) (13,401,094) (68,567,068) (319,650)
Principal payments on state revolving loans (5,365,046) (5,365,046)
Principal payments on bonds (4,745,000) (4,745,000)
Principal payments on leases (42,398) (42,398)
Interest and fiscal agent fees paid ( 1 0,236,755) (10,113) ( t 0,246,868)
Net cash provided by (used for) capital and
related financing activities (60,806,529) (I t,205,424) (72,011,953) (305,086)
Cash flows from investing activities:
Interest on investments 6,141,804 325,022 6,466,826 22 t ,440
Change in fair value of investments (171,151) (41,090) (2t2,241) (52,025)
Net cash provided by investing activities 5,970,653 283,932 6,254,585 169,415
,
Net increase (decrease) in cash, cash equivalents and investments ( 10,290,050) 457,290 (9,832,760) 10,235,535
Cash, cash equivalents and investments, October 1, 2007 126,286,745 27,086,857 153,373,602 35,936,579
Cash, cash equivalents and investments, September 30, 2008 $ 115,996,695 $ 27,544,147 $143,540,842 $ 46,172,114
Current cash, cash equivalents and investments $ 75,889,646 $ 26,797,238 $ 102,686,884 $ 46,172,114
Current cash, cash equivalents and investments. restricted 7,256,234 746,909 8,003, t 43
Noncurrent cash, cash equivalents and investments - restricted 32,850,815 32,850,815
Cash, cash equivalents and investments, September 30, 200S $ 1 t 5,996.695 $ 27,544,147 $ 143,540,842 $ 46,t72,tt4
(Continued)
29
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2008
13A
b;1
Business-type Activities Enterprise funds Clovcrnmental
Adivitics -
County Other Internal Service
Water and Sewer Funds Total Funds
Operating income (loss) $ 22,828,461 $(t7,801,466) $ 5,026,995 $ 10,924,464
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense 26,552,696 3,130,877 29,683,573 367,265
Amortization of bond issuance costs 543.534 543,534
Amortization of utility <lCquisition adjustment 60.455 60,455
Net changes in assets and liabilities:
Trade receivable (207,208) (936,550) (1,143,758) (321,282)
Due from other funds 53,388 (7,080) 46,308 391,948
Due from other governments 46,950 566 47,516 (33,789)
Deposits (7'()27) (7,027) (95,208)
Prepaid costs 8.290 (50,192) 141,9(2)
Inventory (279.588) 1,808 (277,7801 (45,577)
Accounts payable (831,806) (25,179) (856,985) (472,502)
Wages payable 47,7n 113.22t 161,1113 20,783
Notcs payabk
Due to other funds 11,056) (39,832) (411,888) (15,421)
Due to other governments (d.77X 3,548 65,326 64
Due to individuals 376 405,846 406,222
Compensated absences 51,912 88,473 140,385 29,482
Refundable deposits 4Y,.l15 (1117,1 t21 (57,797)
Unearned revenue (6,233) 16,233)
Self. insurance claims payable (1,285,000)
Net pension obilgation 905,979
Landfill post closure liability (l,t49,949) (I,t49,949)
cl otal adjustments 26,149,801 1,422,212 27,572,013 (553,258)
Net cash provided by (used tor) operating activities $ 48,978,262 $(16,379,254) $ 32,599,008 $ 10,371,206
Non.cash investing, capital and financing activities:
J'he enterprise funds experienced a non-cash investing loss dll!: to a change III the fair value of investments as foHov,'s:
County \Vatcr and Sc\'ver
Other funds
Total
~
(l7Lt51)
(41,090)
(212,241 )
$
There wcre non-cash developer contributions of$10.1l7.044 in the County Wa1i:r and Sc\\cr Distril:t fund.
There were non-cash contributions of $1 0,096,889 in the other enterprise funds. as assets with a historical cost
or $1 0, 163,338 and accumulated depreciation of $66,44l) were transferred in from other funds, In addition. assets
with a fair value of $488.51W were purchased ror $48.857,
The internal service funds experienced a non.cash investing loss due to a l.:bangc in the fair value of investments as follows:
Internal service tunds $ (52,025)
Thcrc were non.cash contributions 01'$13,690,992 in the internal servil.:e funds. as assets with a historical cost
of $13,792,071 and accumulated deprel.:iation of $1 U 1.079 were transferred in from other funds,
The notes to the financial statements arc an integral pal1 of thIS statement.
111
COLLIER COUNTY, FLORIDA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2008
Agency
Funds
ASSETS
Cash, cash equivalents and investments
Receivables:
Interest
Other
$
32,678,806
Total assets
$
31,275
42,455
32,752,536
LIABILITIES
Due to other governments
Due to individuals
Refundable deposits
Due to special assessment holders
Total liabilities
$
4,975,705
1,822,109
19,981,727
5,972,995
32,752,536
$
The notes to the financial statements are an integral part of this statement.
31
13A
I
13A _
THIS PAGE INTENTIONALLY LEFT BLANK
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
INDEX
NOTE
PAGE NUMBER
I Summary of Significant Accounting Policies 34
2 Cash, Cash Equivalents and Investments 46
3 Trade Receivables 49
4 Interfund Payables and Receivables 50
5 Capital Assets 52
6 Long-Term Obligations 53
7 Conduit Debt Obligations 61
8 Defeased Debt 61
9 Pension Plan Obligations 62
10 Transfers 64
II Net Assets/Fund Balances 64
12 Risk Management 66
13 Other Postemployment Benetits 68
14 Landtill Liability 72
15 Significant Contingencies 73
16 Significant Commitments 74
17 Fund Deficits 74
18 Special Item 75
19 Prior Period Adjustment 75
20 Subsequent Events 75
33
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A II
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE REPORTING ENTITY
The primary government consists of Collier County, a political subdivision of the State of Florida
that was established in 1923 by the Florida State Legislature. The County is governed by a Board
of County Commissioners which consists of five members elected within single member districts.
In addition, there are five separately elected Constitutional Officers: the Tax Collector. Property
Appraiser, Sheriff, Clerk of the Circuit Court and Supervisor of Elections. The Constitutional
Officers are elected county wide. Under the direction of the Clerk of the Circuit Court, the Collier
County Finance and Accounting Department maintains the accounting system for the operations of
the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court.
The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems.
For financial reporting purposes the operations of the Board of County Commissioners and the
Constitutional Officers are combined and presented as the primary government.
Component units are legally separate agencies that the primary government is financially
accountable for or organizations which should be included in the reporting entity because of the
nature and significance of their relationship with the primary government. Financial accountability
is determined by the primary government's ability to appoint the voting majority of the entity's
board, impose its will on the organization. and the existence of a financial benefitlburden
relationship or fiscal dependency.
The County's blended component units consist of organizations whose respective governing Boards
are composed entirely of the Board of County Commissioners serving ex-officio. These entities are
legally separate, however financial support has been pledged and financial or operational policies
may be significantly influenced by the County. In accordance with Govemmental Accounting
Standards Board (GASB) Statement No. 14. The Financial Reporting Entity, as amended by GASB
Statement No. 39, Determining Whether Certain Organizations are Component Units, these
organizations are reported as if they were part ofthe County's operations.
Collier County Water and Sewer District
The District was established by Chapter 88-499, as amended by Chapter 03-353,
Laws of Florida. to provide water, sewer and effluent services to portions of the
unincorporated area of Collier County.
Goodland Water District
The District was established by a Special Referendum Election authorized by
Collier County Ordinance 75-5 and Section 125.01(q), Florida Statutes. The
District provides potable water service to the residents of Goodland.
Collier County Community Redevelopment Agency (CRA)
The CRA was established by Resolution 2000-82 to bene!it blighted areas in both
the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment
areas. These two redevelopment areas are geographically separate and distinct.
34
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
I
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The County's discretely presented component units consist of organizations whose board members
are appointed by the Board of County Commissioners. The County is able to impose its will on
these entities because of its ability to remove appointed members from the component units'
Boards. The Authorities maintain their own financial records, but do not issue separate financial
statements. GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB 39,
requires that the financial data of the following organizations be reported in separate columns to
emphasize that they are legally separate from the County.
Collier County Housing Finance Authority
The Authority was formed in 1980 by Collier County Ordinance 80-66 for the
purpose of stimulating the construction of residential housing for low and
moderate income families through the use of public financing. Their financial
position and results of operations are reported in the accompanying financial
statements and the outstanding conduit debt issued by the Authority is disclosed in
Note 7, "Conduit Debt Obligations".
Collier County Health Facilities Authority
The Authority was established in 1979 by Collier County Ordinance 79-75 for the
purpose of assisting health facilities in the acquisition, construction and financing
of projects within the County. Their financial position and results of operations
are reported in the accompanying 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 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 99-177 to assist
institutions for higher education in the construction, financing and refinancing of
projects. Their financial position and results of operations are reported in the
accompanying financial statements and the outstanding conduit debt issued by the
Authority is disclosed in Note 7, "Conduit Debt Obligations".
Financial information on the individual component units can be obtained from their respective
administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit
Court.
35
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
Lt
"-
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
THE REPORTING ENTITY - CONTINUED
Administrative Oflices:
Collier County Water and Sewer District and
Goodland Water District
3301 East Tamiami Trail
Naples, Florida 34112
Collier County Health Facilities Authority and
I lousing Finance Authority
5811 Pelican Boulevard, Suite 210
Naples, Florida 34108
Bayshore Gateway Community
Redevelopment Agency
2740 Bayshore Drive, Unit 17
Naples, Florida 34112
Collier County Industrial Development
Authority and
Educational Facilities Authority
3050 N. Horseshoe Drive, Suite 120
Naples. Florida 34104
Immokalee Community Redevelopment
Agency
3301 East Tamiami Trail
Naples, Florida 34112
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS
The basic finaneial statements are made up of the government wide financial statements and fund
financial statements. Both of these sets of financial statements distinguish between the
governmental and business type activities of Collier County. The government wide financial
statements consist of a Statement of Net Assets and a Statement of Activities. These statements
report on the financial condition of Collier County, at the reporting entity level. Internal balances
represent net amounts due between the govcrnmental and business-type activities. As a general
rule, the effect of interfund activity has been eliminated from the government wide financial
statements. Fiduciary funds are not included in these presentations as their assets do not
represent amounts that are available for Collier County government operations. The Statement
of Net Assets reports all financial and capital resources of Collier County's governmental and
business-type activities. Net assets equal assets minus liabilities, and is shown in three
categories: invested in capital asscts. net of related debt: restricted net assets and unrestricted net
assets. The Statement of Activities reports results of operations on a functional activity
(program) basis and demonstrates to what degree the particular program has been self~
supporting.
36
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
II
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - CONTINUED
Program revenues are reported in the following three categories: charges for services, operating
grants and contributions and capital grants and contributions. Charges for services are 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.
When both restricted and unrestricted resources are available, restricted resources will be used first
for incurred expenditures, and unrestricted as needed.
The fund financial statements follow the government wide statements and report more detailed
information about operations of major funds on an individual basis and nonmajor funds on an
aggregate basis for the governmental and proprietary funds. Following the governmental fund
balance sheet and statement of revenues, expenditures and changes in fund balances is a
reconciliation explaining the differences between the governmental fund presentation and the
government wide presentation.
BASIS OF PRESENTATION
The following are reported as major governmental funds:
General Fund - the General fund is the general operating fund of the County. All general tax
revenues and other receipts that are not accounted for in other funds are accounted for in the
General Fund. The general operating funds of the Clerk of the Circuit Court, Property Appraiser,
Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County
Commissioners' general operating fund in the County's consolidated General Fund.
Road Impact Districts Fund - the Road Impact Districts Capital Project fund is used to account for
the receipt and expenditure of road impact fees collected from qualifying new construction. The
impact fees must be used for the acquisition and construction of transportation related facilities by
district.
Road Construction Fund - the Road Construction Capital Project fund is used to account for the
receipt and expenditure of gas taxes and bond proceeds. Projects include, but are not limited to,
right-of-way acquisition, design and construction of various transportation improvements.
37
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
r4
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF PRESENTATION - CONTINUED
Community Redevelopment Fund - the Community Redevelopment Fund is used to account for the
receipt and expenditure of tax increment revenues relating to the Bayshore/Gateway Triangle and
Immokalee Community Redevelopment Authorities.
The following is reported as a major enterprise fund:
County Water and Sewer Fund - the County Water and Sewer fund is used to account for the
provision of water, wastewater and et11uent serviccs to certain portions of the County's
unincorporated area.
Collier County also maintains the following nonmajor fund types:
~pecial Revenue Funds - Special revenue funds are used to account for the accumulation of
resources set aside tor a specitic purpose.
Debt Service Funds - Debt service tunds are used to account for the accumulation of resources
for the payment of principal, interest and other expenditures on long-term obligations, other than
bonds and notes payable from the operations of business-type activities.
<:::!!pital Project Funds - Capital project tunds are used to account for the acquisition and
construction of major capital facilities other than those financed by proprietary funds.
Enterprise Funds - Enterprise funds are used to account for activities for which a fee is charged
to external users tor goods or services.
Internal Service Funds - Internal service tunds are used to account for the provision of goods and
services by one department to another department within the County or to other governmental
units on a cost reimbursement basis.
Agency Funds -, Agency funds are custodial in nature and do not report the results of operations
(assets equal liabilities). Agency tunds are clearing accounts for assets held by the government
as an agent for individuals. private organizations or other governments. The Board of County
Commissioners, Sheritf, Clerk of the Circuit Court and Tax Collector all maintain agency funds.
38
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
~~
f{~
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF ACCOUNTING AND MEASUREMENT FOCUS
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made regardless of the measurement focus applied.
The government wide financial statements, as well as the fund financial statements for the
proprietary funds, are reported using the economic resources measurement focus and the accrual
basis of accounting. Revenues are recognized in the period in which they are earned and expenses
are recognized in the period incurred. Grant revenues are recognized when eligibility requirements
are met. The intent in proprietary operations is that the costs of providing goods or services to the
general public be financed primarily through user charges, or where periodic determination of
revenues earned, expenses incurred, and/or net income is deemed appropriate.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
All governmental fund financial statements are reported using a current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recognized in the period in which they become both measurable and
available to finance expenditures of the current pcriod. Available means collectible within the
current period or soon enough thereafter, generally 60 days, to be used to pay liabilities of the
current period. Primary revenues including non-grant intergovernmental revenues, charges for
services and interest are treated as susceptible to accrual under the modified accrual basis. In
applying the susceptibility-to-accrual concept to grant revenues, the legal and contractual
requirements of the numerous individual programs are used as guidance. In addition, grant
revenues are considered available if they are expected to be collected within one year of the end of
the current fiscal period.
Property taxes are discussed later in this footnote. Other revenue sources are not considered
measurable and available and are not treated as susceptible to accrual. Expenditures are recorded
when the related fund liability is incurred. Exceptions to this general rule include accrued
compensated absences and principal and interest on long-term debt.
39
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
~4
iil4
NOTE I - 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 tcntative budget, recomputes the
proposed millage rate, and announces publicly the percentage, if any, by which the recomputed
proposed millage rate cxceeds 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 thc 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 tinal budget.
5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax
Collector and Florida Department of Revenue, not latcr than thirty days following the adoption
of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division
of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes,
6) The County Manager approves intradepartmental budget changes less than $50,000 that do
not alter the total expenditures of the department. All other budgetary changes must be
approved by the Board of County Commissioners as a matter of policy. The initial adopted
budget was amended in accordance with the Florida Statutes,
7) Florida Statute Section 179.07, 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.
40
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
II
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BUDGETS AND BUDGETARY DATA - CONTINUED
Formal budgetary integration is employed as a management control device during the fiscal year for
all funds. Budgets have been legally adopted by the Board for all Board funds except for agency
funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax
Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts is
a fee officer, and as such, prepares his budget in accordance with Section 2 I 8.35, Florida Statutes.
The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are
submitted to and approved by the Board. The Clerk of Court's budget for court related functions is
prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court
Operations Corporation for approval by the Florida Department of Revenue.
Budgets are adopted for all governmental funds except as described in the previous paragraph.
These budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP) except for certain non-budgeted revenues and expenses and mark to market activity on
investments. All unencumbered appropriations lapse at the end of the current year. Capital
project costs are budgeted in the year they are anticipated to be obligated. In subsequent years,
the unused budget is reappropriated until the project is completed. Proprietary funds are
budgeted on a basis consistent with generally accepted accounting principles, except that capital
related and debt transactions are based upon cash receipts and disbursements. Estimated
beginning fund balances are considered in the budgetary process.
For purposes of the budgetary presentation, certain transactions that have been accounted for in
the governmental funds statements of revenues, expenditures and changes in fund balances have
not been reflected in the budgetary financial statements. Specifically, bad debt expense and the
net change in fair value of investments are not presented in the budget to actual statements.
CASH, CASH EQUIVALENTS AND INVESTMENTS
The County maintains a cash and investment pool for all funds. The Clerk of the Circuit Court
administers the investment pool pursuant to Section 28.33 Florida Statutes. Interest is primarily
allocated to the general fund of the Clerk of the Circuit Court, which is included in the
comprehensive general fund in the accompanying financial statements. Some funds are specifically
required to receive interest, and that interest is allocated to those funds based on the individual
fund's average daily balance in the pooL See litigation Note] 5. Pursuant to the provisions of
GASB Statement 3], Accounting and Financial Reporting/or Certain Investments and fiJr External
Investment Pools, all investments are stated at fair value. Cash equivalents are short-term
investments with maturities of three months or less trom the date purchased.
41
--_...._-',-_.- .,~
"',~, '"
..
--'---...._,_.-- ..,.,._,,- -'"'----~--_...-._,.._. -'--,..-.._.._~ .
.-- ...
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
'I
.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
ACCOUNTS RECEIVABLE - UN BILLED REVENUE
Unbilled charges for services are accrued in the County Water and Sewer and Goodland Water
funds by prorating subsequent bills.
INVENTORIES AND PREP AID COSTS
Inventory is valued at cost using the first-in. 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 ofIset by a reserve. which indicates that they
do not constitute available resources. Inventories and prepaid costs in the government wide and
proprietary fund financial statements are reported as an expense when consumed.
CAPn AL ASSETS
Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded
at their fair value on the date donated. Facilities constructed using system development impact
fees, collected from developers and customers, are stated at cost.
The County capitalizes expenditures with a cost of $1.000 or more and with a useful life in excess
of one year. Expenditures for maintenance and repairs are charged to operating expenses, The cost
of assets retired or sold, together with the related accumulated depreciation, is removed from the
accounts and any gain or loss on disposition is credited or charged to earnings.
Depreciation is calculated using the straight-line method.
classes of depreciable capital assets is as follows:
The estimated useful life of the various
Fixed Asset
Estimated Useful
Life
,-_._---..~
20-45 years
3-30 years
4-45 vears
,
3-10 years
Buildings
Infrastructure
Improvements other than buildings
Machinery and equipment
For constructed assets including buildings, infrastructure and improvements other than buildings a
half year convention is used in placing these assets into service. Costs incurred in the
renourishment of beaches are included in the infrastructure class of capital assets and are capitalized
and depreciated over three years, Infrastructure acquired prior to fiscal years ended after June 30,
1980 is not reportcd.
42
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A 11
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
CAPITAL LEASE OBLIGA nONS
In the government wide financial statements and proprietary fund financial statements capital lease
obligations and the related cost of assets acquired are retlected in the Statemcnt of Net Assets. For
capital lease obligations originating in governmental fimds, an expenditure for the asset and the
offsetting amount of the financing source is retlected in the fund financial statements.
BOND PREMIUMS, DISCOUNTS AND ISSUANCE COSTS
Bond premiums, discounts and issuance costs for the governmental activities and the business-type
activities are deferred and amortized over the term of the bonds using the straight-line method.
Bond discounts are presented as a reduction of the face amount of bonds payable, premiums as an
increase, while issuance costs are recorded as deferred charges, which are shown on the face of the
Statement of Net Assets as a component of noncurrent assets. In the governmental fund financials,
bond premiums, discounts and issuance costs are recognized in the current period.
DEFEASANCE OF DEBT
For refundings resulting in the defeasance of debt, generally accepted accounting principles require
that the difference between the reacquisition price and the net carrying amount of the old debt be
deferred and amortized over the shorter of the life of the new debt or the remaining life of the old
debt as a component of interest expense. The straight-line method is used for amortization of the
deferred charge.
INTEREST COST
In the proprietary funds interest costs are capitalized in accordance with the provisions of Financial
Accounting Standards Board (F AS B) Statement No. 34, Capitalization of Interest Cost, and F ASB
Statement No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax-Exempt
Borrowings and Certain Gifts and Grants, when applicable.
PROPERTY TAXES
Property taxes become due and payable on November 1 st of each year and become delinquent on
April I st of the following year. Property taxes receivable and a corresponding allowance for
uncollectible property taxes are not included in the financial statements, as delinquent taxes as of
September 30, 2008 are not significant. Discounts on property taxes are allowed for payments
made prior to the April 1 st delinquent date as follows: November - 4%, December - 3%, January
- 2%, and February - I %. Tax certificates for the full amount of any unpaid taxes must be sold
not later than June I st of each year. No accrual for the property tax levy becoming due in
November 2008 is included in the accompanying financial statements, since such taxes are
collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for
the fiscal year ended September 30, 2008 are as follows:
43
'-"-'.'
- ~'"~-
- ~,,-' -
-~--
_~,._""'._~_,..' _n'__u"____,
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
II
~
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
PROPERTY TAXES -- CONTINUED
Property Tax Cycle
Assessment roll compiled
Assessment roll certilied
Millage resolution approved
Beginning of fiscal year for tax levy
Taxes due and payable (levy date)
Due date
Delinquent (lien date)
Tax certilicates sold
Date
January 1,2007
July I. 2007
Within 35 days of the certification of the assessment roll
October I, 2007
November 1, 2007
March 3 1 . 2008
April],2008
Prior to June 1,2008
APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS
In accordance with GASB Statement No. 20, Accounting and Financial Reportingfor Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has
clected not to apply those FASB Statements and Interpretations issued after November 30, 1989.
ACCOUNTING ESTIMATES
The preparation of linancial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results may differ from those estimated.
IMPLEMENTATION OFNEW GASB PRONOUNCEMENTS
Effective October 1, 2007 the County adopted the provisions of GASB Statement No. 45,
Accounting and Financial Reporting hy Employers thr Postemployment Benefits Other Than
Pensions (GASB Statement No, 45), The elfect of this adoption was to establish uniform
reporting standards for other postemployment benetit (OPEB) plans, and to change the
measurement, recognition and display of OPEB expense and related liabilities (assets), note
disclosures and required supplementary information (RSI) in annual financial reports of
governmental entities. See Note 13 for a description of the County's OPEB plan.
44
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
"
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
UNEARNED REVENUE AND DEFERRED REVENUE
In instances where assets have been received by the County for services to be rendered in future
periods, asset balances are offset by an unearned revenue liability account in the financial
statements. Examples of unearned revenues of the County as of September 30, 2008 are unspent
State Housing Initiative Partnership (SHIP) monies and cash receipts associated with unspent
advance grant agreements.
Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not
meet the availability criterion under the modified accrual basis of accounting. Primary examples of
the County's deferred revenues are amounts associated with SHIP loans made to qualifying
organizations and deferred impact fee agreements made with developers and individuals.
ACCRUED COMPENSATED ABSENCES
The County follows the provisions of GASB Statement No. 16, Accounting for Compensated
Absences. This statement provides for the measurement of accrued vacation leave and other
compensated absences using the payor salary rates in effect at the balance sheet date. It also
requires additional amounts to be accrued for certain salary related payments associated with the
payment of compensated absences.
It is the Board of County Commissioners' policy to allow employees of record on August 2,1996 a
sick leave payment upon termination for any service period earned prior to August 2, 1996 and
100% of allowable vacation hours at the current rate of pay. The Sheriffs policy allows for a
percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours, and
up to 400 hours of unused vacation time. Both the Clerk of the Circuit Court's and Tax Collector's
policy's allow for a percentage of unused sick leavc payout based upon years of service, and up to
240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of
unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 240
hours of unused vacation hours. The Supervisor of Election's policy allows tor 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 tinancials. A liability is reported in governmental funds only if they have matured, for
example, as a result of employee resignations or retirements, and are considered due and payable as
of year end.
45
---'-'-'---'~-"~-'._~-~~.----'"' ,-~-,~".- ,~'.'"-- ..-- '.........._-", '. --~~~--'~..,," ",- ---.-.--.,
~ ~'O__
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
I
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS
As of September 30, 2008, the County had the following cash, cash equivalents and investments:
Investment Maturities Fair Value Can Date Can Frequency Rating
Cash on hand N/A $ 80,285 N/A N/A N/A
Demand deposits N/A 178,428,4 15 N/A N/A N/A
State Board of Administration Pool N/A 7:24,487 N/A N/A N/A
Federal Home Loan Mortgage Corp. 11/17/2008 24,937,500 none N/A AAA
Federal Home Loan Mortgage Corp. 11/24/2008 24,927,500 none N/A AAA
Federal National Mortgage Assoc. 2/23/2009 24.702,500 none N/A AAA
Federal Home Loan Bank .... /,y' 0009 24,984,500 none N/A AAA
j, -j, ~
Federal Home Loan Bank 3/24/2009 24,968.750 none N/A AAA
Federal Home Loan Mortgage Corp. 4/2/2009 24.865,500 7/2/2008 continuous AAA
Federal Home Loan Bank 4/7/2009 49,828.000 7/7/2008 continuous AAA
Federal Home Loan Bank 5/6/2009 49,875,1)00 11/6/2008 one time AAA
Federal Home Loan Mortgage Corp. 4/30/20 I 0 25,015,000 8/1 /2008 continuous AAA
Federal Home Loan Mortgage Corp. 6!2/2010 35.003,150 9/2/2008 continuous AAA
Federal Home Loan Mortgage Corp, 6/4/2010 50,063,000 9/4/2008 continuous AAA
Federal National Mortgage Assoc, 6/17/2010 50,078,000 9/17/2008 continuous AAA
Federalllome Loan Mortgage Corp. 6/30/2010 15,046,500 9/30/2008 continuous AAA
Federal National Mortgage Assoc, 6/30/20 I 0 25,078,250 12/30/2008 one time AAA
Federal National Mortgage Assoc. 6,/:li20 I I 25,039.000 12/3/2008 one time AAA
Federal National Mortgage Assoc, 6/24/2011 25,117,250 6/24/2009 one time AAA
Federal Home Loan Mortgage Corp, 2,./2/2012 25,\ 85,250 2/2/2009 one time AAA
Federal National Mortgage Assoc. 8/22/2012 25,086,000 8/22/2008 Quarterly AAA
Federal National Mortgage Assoc. 1/-.'101.... 50,250,000 7/3/2008 continuous AAA
,J/~ J
Total $ 779,283,837
The County maintains a cash and investment pool that is available IDr use by all funds. Each fund's
portion of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents
and Investments. Investment income is allocated monthly to participating funds, as mentioned
above, based on the percentage of each fUnd's average daily balance in the total pool.
CREDIT RISK
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The County's investment practices are governed by Florida Statutes, Chapter 218 and
the County's Investment Policy. The County's Investment Policy limits credit risk by restricting
authorized invcstmcnts to the IDllowing: The Florida Local Government Surplus Trust Fund (SBA);
Direct obligations of, or obligations backed by the lull faith and credit of the United States
Government; U.S. government sponsored Corporation/Instrumentalities (except for Student Loan
Marketing Association); Certificate of Deposits collateralized by U,S Government Securities or
46
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
"~
ti~
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
CREDIT RISK - CONTINUED
Agencies; fixed income mutual funds collateralized by U.S. Government Securities or Agencies;
domestic bankers' acceptances rated "AA" or higher; prime commercial paper rated "A-]" and "p-
I"; tax-exempt obligations rated "AA" or higher and issued by state or local governments; NOW
accounts fully collateralized in accordance with Chapter 280, F]orida 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 ]0] 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.
The SBA is an investment pool administered by the State Board of Administration, under the
regulatory oversight of the State of Florida. The SBA operates two pools, Fund A (LGIP) and Fund
B, with Fund B carrying a AAAm rating from Standard & Poor's. At September 30, 2008, the
Sheriff had $724,487 invested in the State Board of Administration's Local Government Surplus
Funds Trust Fund Investment Pool. Of this amount, $692,653 is invested in the LGIP and
$3] ,834 in the Fund B Surplus Funds Trust Fund. The LGIP investment is fully liquid and
carries a weighted average days to maturity of 8.5 days. Fund B is accounted for as a fluctuating
net asset value pool and the fair value factor for Scptember 30, 2008 was .798385. The Fund B
amount has a weighted average life of 9.36 years. Fund B cash holdings continue to be
distributed to participants as they become available from maturities, sales and received income.
CUSTODIAL CREDIT RISK
All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280,
"Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are
required to pledge eligible collateral having a market value equal to or greater than the average
daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging
level. The pledging level may range from 50% to 125% depending upon the depository's financial
condition. Any losses to public deposits are covered by applicable deposit insurance, sale of
securities pledged as collateral, and if necessary, assessments against other qualified public
depositories of the same type as the depository in default.
The policy requires execution of a third-party custodial safekeeping agreement for purchased
securities and collateral, and requires that securities be held in the County's name. At
September 30, 2008 the County had demand deposits of $] 78,428,4]5. These demand deposits
do not include discretely presented component unit deposits of $501,700. These deposits were
fully covered by federal depository insurance or by collateral, in the County's name as required
by Sections 280.07 and 280.08 of the Florida Statutes.
47
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
i1
,
NOTE 2 - CASH. CASH EQUlV ALENTS AND INVESTMENTS - CONTINUED
INTEREST RATE RISK
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. One of the primary objectives of the investment policy is to match investment
cash flow and maturity with known cash needs and anticipated cash flow requirements. The
County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow
demands, Investments shall have an average maturity of not more than five years, except for the
Florida Local Government Surplus Trust Fund (SBA), which has no stated final maturity, and
mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably
definable as to amount and disbursement date and are used to invest funds associated with reserves
or liabilities that are not associated with a specifically identified cash flow schedule.
CONCENTRATION OF CREDIT RISK
The County's investment policy establishes limitations on portfolio composition in order to
control credit risk. The policy allows 100 percent of the portfolio to be invested in U.S.
Government Securities, Agencies and Instrumentalities (excluding mortgage securities), 50
percent to be invested in SBA, 30 percent to be invested in Certificates of Deposit, 20 percent to
be invested in qualifying repurchase agreements and 10 percent each in the categories of fixed
income mutual funds, domestic bankers' acceptances, prime commercial paper and tax-exempt
obligations.
The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed
as follows. at September 30, 2008:
Issuer
Percent of
Portfolio
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgage Association
Total U.S. Government Instrumentalities
29.0%
19.0%
29.0%
77.0%
48
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
-
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
CON CENTRA nON OF CREDIT RISK - CONTINUED
Reconciliation of cash, cash equivalents and investments to the basic financial statements:
Primary government:
Cash, cash equivalents and investments
Restricted cash, cash equivalents and investments - current
Restricted cash, cash equivalents and investments - noncurrent
$ 371,054,714
47,688,123
327,862,194
Agency funds:
Cash, cash equivalents and investments
32,678,806
Total
$ 779,283,837
NOTE 3 - TRADE RECEIVABLES
Trade receivables for governmental and business-type activities are net of an allowance for doubtful
accounts as follows:
Trade Allowance for Net Trade
Receivables Doubtful Accounts Receivab]es
$ 599,401 $ 46,205 $ 553,196
]6,143 ] 6,143
417,190 417,]90
3,215 3,2 ]5
] ,409,037 64,404 1,344,633
2,444,986 110,609 2,334,377
654,823 10,867 643,956
]5,581,9]0 ]5,581,910
$ ]8,681,7]9 121,476 ] 8,560,243
5,389,743 282,999 5,106,744
23,45] ,604 17,305,265 6,] 46,339
$ 28,841,347 $ ] 7,588,264 $ 1] ,253,083
General Fund
Road Impact Districts
Road Construction
Community Redevelopment
Nonmajor governmental funds
Total receivables reported in governmental funds
Total receivables reported in internal service funds
Developer contributions receivable
Total Governmental Activities trade receivables
County Water and Sewer
Nonmajor enterprise lunds
Total Business-type Activities trade receivables
49
._--<
-_.
-~-~~,".
, ,,~,- - ..'. ,
---'---
.~ ".
,~,"'''~'--'''''-'''-'---"'- ~ .~
-,._,
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
-
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES
ADV ANCES
Advances to and advances from other funds at September 30, 2008 were as follows:
Advance
To
Advance
From
Governmental Activities:
Genera] Fund
Advances were made trom the General Fund to the Tourist
Development Fund and the EMS, Library and Law Enforcement
impact fee funds for capital improvements, Reimbursement will take
place over the next severa] years, $
Total General Fund
Other governmental funds:
Other Capital Projects Funds
Advances were made tram the County- Wide Capital Improvements
Fund to EMS, Law Enforcement and General Governmental Facilities
impact fee funds for purposes of capital improvement.
Reimbursement will take place over the next several years,
Tourist Development Fund
Emergency Medical Services Impact Fees Fund
County-Wide Library Impact Fees Fund
Law Enforcement Impact Fees Fund
Government Facilities Impact Fees Fund
Total other governmental tunds
Total
5,]27,194
5,127,]94
$
10,935,]00
] 13,094
1,] 59,300
4,521,800
6,063,500
4,204,600
10,935,100 ] 6,062,294
$ 16,062,294 $ 16,062,294
DUE FROM AND DUE TO
Interfund receivables and payables generally result tram recording the excess fees associated with
Tax Collector services, as excess fees are allocated trom the General Fund back to the funds that
paid for the collection services. Excess fees are calculated atier year end, and as such are interfund
receivables and payables. The State Court of Administration fund also allocates unused funds back
to the General Fund at year end. Other outstanding balances are the result of time delays between
the provision and payment of interlimd services and to cover temporary cash deficits.
50
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
I
NOTE 4 - INTERFUND PAY ABLES AND RECEIVABLES - CONTINUED
Due from and due to other funds at September 30, 2008 were as follows:
Due From Due To
Governmental Activities:
General Fund $ 1,833,921 $ 1,367,995
Road Impact Districts 265
Road Construction 8,425 1,284
Other Governmental Funds:
Road Districts 1,450 14
Unincorporated Area MSTD 459,904 67,095
Community Development 160 14,354
Water Management and Pollution Control 54,524
Grants and Shared Revenues 2,851 1,035,183
Improvement Districts 53,692
Fire Control Districts 41,880
Lighting Districts 6,523
911 Enhancement Fee 126,894
Tourist Development 147,144 270
State Housing Initiative Partnership 65
State Court Administration 28,194 551,569
Conservation Collier 153,110
Court Information Technology 4,670
Other Special Revenue Funds 157 87,858
Capital Improvement Revenue Bonds 26,428
Pooled Commercial Paper Program Loan 4,709
Caribbean Gardens Loan 131,838
Storm water Improvement Assessment Bonds 1,157
Limited General Obligation Bonds Conservation
Collier Series 2005A 51,695
Forest Lakes Limited General Obligation Bonds 6,938
Parks Improvements 47,002
County-Wide Library Impact Fees 68
Emergency Medical Services Impact Fees 24
Water Management 2,850 324
Other Capital Projects 1,014
Total other governmental funds 1,223 ,220 I ,888,388
Bnsiness-type Activities:
County Water and Sewer 11,903 8,914
Other Business-type funds:
Solid Waste Disposal 48,996
Emergency Medical Services 197 73
Airport Authority 1,724
Collier Area Transit 20,293
Total other business-type funds 71,210 73
Internal Service Funds 118,495 255
Total All Funds $ 3,267,174 $ 3,267,174
51
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
-
NOTE 5 - CAPITAL ASSETS
A summary of capital asset activity for the year ended September 30, 2008 is as follows:
October I, 1007, Deductions! September 30,
as restated Additions Reclassifications 2008
Governmental Activities:
Capital assets not depreciated:
Land and other non-depreciabk assets $ 286,74U87 $ 30,648,120 $ (6,049,532) $ 311,343,475
Construction in progress 309,189.367 238,891,987 ( 125,595)05) 422,485,649
Total capital assets not depreciated 595,934,254 269,540, I 07 (131,645,237) 733,829,124
Capital assets depreciated:
Buildings 255,919,570 13.792,937 21,368,374 291.080,881
Infrastructure 498,114.433 1.851.213 43,135,197 543, I 00,843
Improvements other than buildings 158,169,493 1,859,682 40,922,724 200,951,899
Machinery and equipment 149,929,207 14,498,538 (13,574,393) 150,853,352
Total capital assets depreciated 1,062,132,703 32,002,370 91,851,902 1,185,986,975
Less accumulated depreciatiun:
Buildings 62,369,240 8,781.043 (381,744) 70,768,539
Infrastructure ] 44.025.271 27,084.482 171.109,753
Improvements other than buildings 40,994,193 7,178,598 48,172.791
Machinery and equipment 97,877,688 17,673,556 (13,051,350) to2,499,894
Total accumulated depreciation 345,266.392 60,717,679 (13,433,094) 392,550,977
Total depreciable capital assets, nd 716,866,311 (28,715.309) t05,284,996 793,435,998
Total governmental activities
capital assets, net $ 1.312,80U,565 $ 240,824,798 $ (26,360,241 ) $ 1,527,265,122
Business-type Activities:
Capital assets not depreciated:
Land and other non-depreciable assets S 17,969,146 $ 6,(186,J08 $ 2,738 S 24,058,192
Construction in progress 212,660,373 55,343,920 ( 130,233, 130) 137,771,163
Total capital assets not depreciated 230,629,519 61,430,228 (130,230,392) 161,829,355
Capital assets depreciated:
Buildings 123,579,978 4,240,657 2,175,722 129,996,357
Improvements other than buildings 7 t 5,871.338 10,209,844 127,022,055 853.103,237
Machincry and equipment 26,263,531 4,365,J12 (1,795,848) 28,832,995
Total capital assets deprcciated 865,714,847 18,815,813 127,401,929 1,011,932,589
Less accumulated depreciation:
lluildings 52.964.052 3,184,368 (25,230) 56,123,190
Improvements other than buildings 163.U2 8, 99X 2J.12S,lJSS (230,098) 185,927.858
Machinery and equipment 14,666,509 3,370,247 ( I ,833,6541 16,203,102
Total accumulated depreciation 230,659,559 2Y,683,573 (2,088,982) 258,254,150
Total dcpredabk capital assets, net 635.055,288 ( 10,867,760) 129,490,911 753,678.439
Total business-type activities
capital assets, net $ 865,684,807 $ 50,562,468 $ (739,481) $ 915,507,794
-0
)~
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
"
NOTE 5 - CAPITAL ASSETS - CONTINUED
Schedule of depreciation for fiscal year 2008:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Subtotal
Internal Service Funds
Total Governmental Activities
$
Total Business-type Activities
$
6,623,752
12,807,778
13,390,084
19,058,326
27,442
729,309
7,713,723
60,350,414
367,265
60,717,679
26,609,025
503,961
711,073
831,926
1,027,588
29,683,573
Water and Sewer
Solid Waste
EMS
Airport Authority
Mass Transit
$
$
NOTE 6 - LONG-TERM OBLIGATIONS
SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended September 30, 2008:
OOO's Omitted
Premium or
October I, Discount/Loss September 30, Due within
2007 Additions Reductions Amortized, net 2008 one year
Governmental Activities:
Bonds and Loans Payable $ 509,906 $ 75,637 $ (42,936) $ (1,003) $ 541,604 $ 22,332
Arbitrage Rebate 214 464 678
Capital Lease Obligations 897 (144) 753 154
Self-Insurance Claims 11,571 544 ( 1,829) 10,286 5,552
Nct Pension Obligation 1,534 (628) 906
Compensated Absences 19,363 8,460 (6,648) 21,175 10,041
Total $ 541,951 $ 86,639 $ (52,185) $ (1,003) $ 575,402 $ 38,079
Business-type Activities:
Bonds and Loans Payable $ 270,080 $ 2,401 $ (10,110) $ 169 $ 262,540 $ 11,088
Notes Payable 138 2 (67) 73 73
Arbitrage Rebate 1,223 283 1,506
Capital Lease Obligations 68 592 (42) 6t8 126
Landfill Closure Liability 2,965 (1,150) t,815
Compensated Absences 2,107 1,715 ( 1,639) 2,183 1,746
Total $ 276,581 $ 4,993 $ (13,008) $ 169 $ 268,735 $ 13,033
53
.._'~---
_..""
-,-',
"'-~-'",_, '....____K',_... '.",'..'."'_.-...-._~.,~,_.,~.' .~."w .,,_.~_"_."__._".., ~
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
~
, "~~
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE
Bonds, loans and notes payable at September 30. 2008 were composed of the following:
Governmcntal Activitics Limited General Obligation Bonds
$32,815,000 2005A Limited General Obligation Bonds, Conservation Collier
Program, due in annual installments of $3.285,000 to $4,805.000 through
January 1. 2013; interest at 3.00% to 5.00%.
$6,215,0002007 Limited General Obligation Bonds, Forest Lakes Roadway
and Drainage Municipal Servicc Taxing Unit. due in installments of
$300,000 to $540,000 through January 1.2022; interest at 3.75% to 4,25%.
$21.915,000
5,915,000
Total Governmental Activities Limitcd General Obligation Bonds
27,830,000
Governmental Activities Revenue Bonds
$47,430,000 2002 Capital Improvement Revenue Bonds due in annual
installments of$I,780,000 to $2.830,000 through October 1,2016; interest at
1.60% to 5.00%.
32,520,000
$49,360,0002003 Capitallmprovement and Refunding Revenue Bonds due
in annual installments of $1,130,000 to $2.570.000 through October 1, 2033;
interest at 2.00% to 4.75%.
39,625,000
$167,200,0002005 Capital Improvement and Refunding Revenue Bonds due
in annual installments of $2,035,000 to $7,240,000 through October 1,2035;
interest at 2.25% to 5.00%.
154,795,000
$102.]75,0002003 Gas Tax Rcvenue Bonds. due in annual installments of
$1,495,000 to $6,865,000 through June 1,2023; interest at 2.00% to 5.25%.
$96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of
$445,000 to $13,985,000 through June 1,2025; intercst at 3.00% to 5.00%.
$1,870,000 1997 Naples Park Area Stormwater Improvement Assessment
Bonds due in annual installments of $75.000 to $185.000 through September
1,2012; interest at 6.45% tlxed rate,
71,960,000
94,565,000
Total (iovernmental Activities Revenue Bonds
680,000
394.145,000
54
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
Governmental Activities Loans Payable
$111,346,000 Commercial Paper issued by the Florida Local Government
Finance Commission Pooled Commercial Paper Program, due in installments
of$II,235,000 to $74,325,000 through December 4, 2012; monthly variable
rate for the current fiscal year of 3.60% to 1.52%, collateralized by non ad
valorem revenue.
$12,000,000 Florida Department of Transportation State Infrastructure Bank
Loan, due in annual installments of $1,839,148 to $4,414,096 through
October 1,2012; interest at 2.0%.
$7,000,000 Bayshore Gateway Community Redevelopment Agency Taxable
Non-Revolving Line of Credit, due July I, 20] I; quarterly variable interest
for the current fiscal year end of 5 .49%.
Total Governmental Activities Loans Payable
Total Governmental Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Governmental Activities Obligations, Net
Less Current Portion of Governmental Activities Obligations
Long-Term Portion of Governmental Activities Obligations, Net
Business-type Activities Revenue Bonds
$13,720,000 2003A Taxable County Water and Sewer Refunding Revenue
Bonds due in annual installments of $740,000 to $2,7]5,000 through July I,
2009; interest at 2.00% to 3.375%.
$33,630,000 2003B County Water and Sewer Refunding Revenue Bonds due
in annual installments of $],410,000 to $4,125,000 through July], 2021;
interest at 4.25% to 5.50%.
$6,605,000 1999A Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $35,000 to $] ,035,000 through July],
20] 0; interest at 3.00% to 4.25%.
55
13A :,
$85,560,000
12,000,000
5,90] ,000
]03,46],000
$525,436,000
$(562,735)
17,107,361
(376,879)
541,603,747
(22,332,377)
$519,271,370
$740,000
33,630,000
1,540,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13 A ~I
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$22,855,000 1999B Collier County Water and Sewer Refunding Revenue
Bonds due in annual installments of $950,000 to $1.875.000 through July 1.
2016; interest at 4.00% to 5.125%.
$110,165,000 7006 Collier County Water and Sewer Revenue Bonds due in
annual installments of $2,310,000 to $8,695,000, commencing July I, 2017
through July], 2036; interest at 4.00% to 5.00%.
$12,810,000
110,165,000
Total Business-type Activities Revenue Bonds
158,885,000
Business-type Activities Loans and Notes Payable
$166,580 County Water and Sewer District agreement with private developer
payable through use of water and sewcr system development fee credits.
Non interest bearing agreement.
$14,547,667 County Water and Sewer District State Revolving Fund Loan,
interest payable at 4.25% payable in 20 semiannual payments commencing
October I, 1992.
$13,292,898 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.65% payable in 40 semiannual payments commencing
January 15, 1999,
$22,238,677 County Water and Sewer District State Revolving Fund Loan,
interest payable at 3.05% payable in 40 semiannual payments commencing
November 15,2001.
$5.160,675 County Water and Sewer District Stale Revolving Fund Loan.
interest payable at 3.05% payable in 40 semiatmual payments commencing
October 15,2004.
$6,560,956 County Water and Sewer District State Revolving Fund Loan.
interest payable at 3.05% payable in 40 semiannual payments commencing
Januarv 15.2005.
, .
$29,224,004 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.95% payable in 40 semiannual payments commencing
June 15,2006.
$10.525.509 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.90% payable in 40 semiannual payments commencing
September 15, 2006,
72,707
3,879,418
7.722,455
15,594,00]
4,362,272
5,542,177
26,430,765
9,120,428
56
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BOND ISSUES AND NOTES PAYABLE - CONTINUED
$6,895,629 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.96% payable in 40 semiannual payments commencing
July 15,2009.
$5,445,223 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.92% payable in 40 semiannual payments commencing
December 15, 2005.
$5,188,500 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.74% payable in 40 semiannual payments commencing
November 15, 2007.
$7,123,496 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.75% payable in 40 semiannual payments commencing
April 15,2008.
$11,476,700 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
August 15,2008.
$11,478,810 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.64% payable in 40 semiannual payments commencing
October 15, 2009.
$3,294,890 County Water and Sewer District State Revolving Fund Loan,
interest payable at 2.79% payable in 40 semiannual payments commencing
December 15,2009.
Total Business-type Activities Loans and Notes Payable
Total Business-type Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Business-type Activities Obligations, Net
Less Current Portion of Business-type Activities Obligations Payable from
Unrestricted Assets
Less Current Portion of Business-type Activities Obligations Payable from
Restricted Assets
Long- Term Portion of Business-type Activities Obligations, Net
57
13 A 'II
$1,137,883
4,838,273
3,599,671
4,875,876
8,264,582
8,448,629
64,059
103,903,196
262,788,196
(778,903 )
5,030,629
(4,427,386)
262,612,536
(11,087,179)
(72,707)
$251,452,650
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
"
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:
(jovernmcntal Activities
I-'iscal Limited General Loans and
Year Obligation Bonds Revenue Bonds Notes Payable Totals
Principal Interest Prim.;ipal Interest Principal Interest
2009 $ 4,355,000 $1,185,881 $ 16,020,000 $ t 8,201 ,347 $ 1,957,377 $ 3,556,668 $ 45,276,273
2010 4,490,000 1,009,213 16,550,000 17,637,168 t,839,148 3,674,897 45,200,426
20t 1 4,705,000 783,650 17,120,000 17,1l04,707 7,776,930 3,571,729 51l,962,0 16
21112 4,940,1l01l 546,994 17,91l1l,01l1l 16,214,913 13,148,449 2,998,1l1l1 55,748,357
21113 5,185,1l1l1l 298,525 17,590,1l1l1l 15.390,381 78,739,096 645,721l 117,848,722
21l14-18 2,125,1l00 650,675 83,925,1l1l0 65,225,725 151,926,400
2019-23 2,030,000 177,225 J02,815,1l1l0 42.612,067 147,634,292
2024-28 64,%0,000 19,036.657 83,996,657
2029.33 36,215,000 9,199,366 45,414,366
2034-38 21,050,000 1,381,536 22,431,536
l'otals $ 27,830,000 $4,652,163 $ 394, I 45,(JOO $221,903,867 $103,461,OOIl $14,447,015 $ 766,439,045
Business-type Activities
Fiscal Loans and
Year Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest
2009 $ 4,905,000 $ 7,357,974 $ 6,254,886 $ 2,774,282 $ 21,292,142
2010 5,125,000 7,138,343 6, I 06,429 2,835,302 21,205,074
2011 4,885,000 6,895,082 6,231,370 2,646,300 20,657,752
2012 5,125,000 6,658,256 6,426,429 2,451,244 20,660,929
2013 5,380,000 6,409,782 5,567,145 2,249,928 19,606,855
2014-18 23, 130,000 28,180,744 30,377,830 8,707,538 90,396,112
2019-23 22,200,000 23,213,276 27,387,040 4,339,307 77,139,623
2024-28 27,975,000 17,442,700 14,978,616 926,278 61,322,594
2029-33 35,170,000 10,245,062 573,451 11,837 46.000,350
2034-38 24,990,000 2,256,373 27,246,373
Totals $ 158,885,000 $115,797,592 $ 103,903,196 $ 26,947,016 $405,527,804
LEGAL DEBT MARGIN
The Constitution orthe State of lClarida and the Florida Slalutes set no legal debt limit
58
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
,.4
NOTE 6 - LONG-TERM DEBT - CONTINUED
RESTRICTIVE COVENANTS
According to the official statements and County resolutions authorizing the issuance of the Series
2002, 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as
the Series 2003 and 2005 Gas Tax Revenue Bonds, the issues are payable from and secured by
liens on the local government half-cent sales tax and gas tax revenues, respectively.
During fiscal year 2008 Collier County experienccd insurer rating downgrades on its Series 2002,
2003 and 2005 Capital Improvement Revenue Refunding Bonds. The covenants related to these
issues require that in the event of an insurer downgrade below "A", by either Moody's or
Standard and Poor's, the County must fund a cash reserve to replace the surety within twelve
months. By March 31, 2009 Collier County will be required to fund the reserve in the amount of
$8,026,972. The total amount of funding required is $19,570,778 and the covenants require that
this be in place by November 30, 2009, if the ratings of the insurers are not upgraded. The
County expects to use internal borrowings to achieve the required reserve funding. All required
principal and interest payments have been made in a timely manner on these bonds and the
County's pledged coverage on these bonds is 1.55.
The covenants of the loan agreement authorizing the Florida Local Government Finance
Commission loans include appropriation in the annual budget amounts of non ad valorem
revenues or other legally available funds sufficient to satisfy the loan repayments.
Tax increment revenues are pledged for the repayment of the Bayshore Gateway Community
Redevelopment Agency's taxable, non-revolving line of credit. Tax increment collections were
$2,293,300 for the period ended September 30, 2008. Tax increment revenues must cover annual
debt service requirements by 150%. In the opinion of management the agency was in compliance
with this covenant for the year ended September 30, 2008.
Water and sewer revenue bonds are payable solely from and secured by a first lien upon and
pledge of the net revenues and certain other fees and charges derived from operation of the
County's water and sewer system, The pledge of net revenues derived by the County from the
operation of the system does not constitute a lien upon the system or any other property of the
County. The covenants of the resolutions authorizing the County Water and Sewer District
Bonds, Series 2006, 2003A, 2003B, 1999A and 1999B include an obligation for the County to
fix, establish and maintain such rates and collect such fees, rentals or other charges for the
services and facilities of the water and sewer system, and to revise the same whenever necessary,
so as to provide in each year net revenues, as detined in the resolutions authorizing the revenue
bonds, which together with system development fees and special assessment proceeds received
shall be adequate to pay at least 125% of the annual debt service requirements for the Water and
Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at
least 100% of the annual debt service for the bonds. In addition, bond covenants require a
renewal and replacement amount equal to $300,000 to be set aside in the County Water and
Sewer District Funds. In the opinion of management, the water and sewer funds were in
compliance with these covenants for the year ended September 30, 2008,
59
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
II
NOTE 6 - LONG-TERM DEBT - CONTINUED
The Collier County Water and Sewer District has several State Revolving Fund loans outstanding
with the Florida Department of Environmental Protection. These loans are collateralized by a
lien on pledged revenues consisting of net revenues from the operations of the County Water and
Sewer System and system development fees. The lien shall be subordinate in all respects to liens
placcd upon pledged revenues established by bonded indebtedness. The County Water and
Sewer District shall maintain rates and charges for services which together with system
development fees sufficient to pay 115% of thc annual debt service requirements on the loans, as
well as satisfy the coverage requirements of all senior debt obligations. In the opinion of
management. the State Revolving funds were in compliance with these covenants for the year
ended September 30, 2008.
INTEREST CAPlT ALIZED
Interest costs on long-term debt, including capitalized leases, incurred and capitalized during the
year ended September 30, 2008 were as follows:
Total Interest
Cost Incurred
Business-type Activities $10,604,4 79
Interest Cost
Capitalized
$1,710,416
Net Interest
Expense
$8,894,063
LEASE OBLIGATIONS
Capitalized leases payable at September 30, 2008 amounted to $1.370,425. These obligations,
which are collateralized by equipment and vehicles, have annual installments ranging from
$35,230 to $345,780 including interest ranging from 4.26% to 7.45% and mature through 2015.
Future minimum capital lease obligations as of September 30, 2008 were as follows:
Governmental Business-type
Activities Activities Total
2009 $ 194,439 $ 151,341 $ 345,780
2010 190.660 151,341 342,00 I
2011 190,660 151,341 342,001
20]2 77,920 131,773 209,693
2013 77. 92 0 98,830 176,750
2014 - 15 113,150 113,150
Total minimum lease payments 844,749 684,626 1,529,375
Less amount representing interest (92,209) (66,741) ( 158,950)
Present value of minimum
lease payments $ 752,540 $ 617,885 $ 1,370,425
60
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
;11
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 issucd to provide financing for the
construction of health park facilities. The educational facility revenue bonds were used to provide
financing for the construction of educational facilities. These bonds were secured by the financed
property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the
debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor
,
the County is obligated in any manner for repayment of the bonds. Therefore, the bonds are not
reported as liabilities in the accompanying financial statements.
As of September 30, 2008 the outstanding principal amount payable on all component unit
conduit debt was $311,648,943 and is made up of the following:
Total
$ 64,307,428
73,520,000
89,190,000
84,631,515
$ 311,648,943
Industrial development revenue bonds
Housing revenue bonds
Health facilities revenue bonds
Educational facilities revenue bonds
NOTE 8 - DEFEASED DEBT
The County has defeased certain outstanding bond issues by placing the proceeds of new bonds
in irrevocable trusts to provide for all future debt service payments on the defeased debt.
Accordingly, the trust accounts and the defeased bonds are not included in the County's financial
statements. At September 30, 2008 the following issues were considered defeased:
Governmental Activities
Original Debt
Defeased
Defeased Bonds
Outstanding
1986 Capital Improvement Program Revenue Bonds, Sub-Series 5 Mode A
2003 Capital Improvement and Refunding Revenue Bonds
Total Governmental Activities Defeased Debt
$ 12.245,000
4,360,000
$ 16,605,000
$
$
4,595,000
4.265,000
8,860,000
Business-type Activities
Original Debt
Defeased Bonds
Outstanding
1983 County Water and Sewer District Refunding Bonds
$ 22,000,000
$
6,770,000
61
,-,
-..
,"---,..,- ... ......,
--. .
.-_.
-
.
~"~.',._'.~
- ""-,
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A 'I
NOTE 9 - PENSION PLAN OBLIGA nONS
RETIREMENT PLAN
Substantially all full time and part time employees of the County are eligible to participate in the
State of Florida Retirement System (the System), a cost sharing, multiple employer program
administered by the State of Florida, Division of Retirement. The System provides two retirement
plans from which eligible employees can choose: the Pension Plan (defined benefit) and the
Investment Plan (defined contribution). The County follows the provisions of GASB 27,
Accounting fiJr Pensions by Stale and Local Governmental Employers, as described in the
following disclosure.
PLAN DESCRIPTION
Employees who are regular risk members and retire at or after age 62 with 6 years of credited
service, or with 30 years of service regardless of age. are entitled to a retirement benefit, payable
monthly for life, equal to 1.6 percent of their average tinal compensation for each year of credited
service. Final average compensation is the employee's average of the tive highest years of salary
earned during credited service. Vested employees may retire before age 62 and receive benetits that
are reduced 5 percent j(l[ each year prior to normal retirement age or date, The System also
provides death and disability benclits as well as annual eost-of-living adjustments to plan
participants and beneliciaries. The Florida Legislature established the System under Chapter 121,
Florida Statutes and has sole authority to amend benefit provisions.
Special Risk Class members quality for normal retirement with 6 years of special risk service and
age 55 or with 25 years of special risk service at any age. The monthly benefit payable is equal to
2-3 percent of their average linal compensation for each year depending on the percent in etfeet
during the service period. Vested employees may retire before age 55 and receive benefits that are
reduced 5 percent for each year prior to norn1al retirement age or date.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative method
for payment of retirement benefits for a specified and limited period for members of the System,
effective July 1. 1998. Under this program. the employee may retire and have their bene tits
accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work
for a System employer. The act of participating in the program does not change the individual
employee's employment conditions. When the DROP period ends, a maximum of 60 months,
employment must be tern1inated. At the time of termination of employment. the employee will
receive payment of the accumulated DROP benetits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-ot:living increases).
62
.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
~'~~!
,., ':~
'.1
NOTE 9 - PENSION PLAN OBLIGATIONS - CONTINUED
PLAN DESCRIPTION - CONTINUED
The System publishes an annual report that provides ten-year historical trend information regarding
progress made in accumulating sufficient assets to pay benefits when due. The report may be
obtained by writing the Division of Retirement, Research, Education and Policy Section, 1317
Winewood Boulevard, Tallahassee, Florida 32315-9000, or by calling (866) 738-2366, or accessing
their internet site at www.dms.myflorida.com.
FUNDING POLICY
The System is non-contributory for employees and the County is required to contribute at an
actuarially determined rate. The current rate is 20.92% for special risk employees, 16.53% for
county elected officials, 9.85% for regular employees, 13.12% for senior management and 10.91 %
for DROP employees of arumal covered payroll. The contributions of the County are established by
the State Legislature and therefore subject to amendment. The County's contributions to the
System for the years ending September 30, 2008, 2007 and 2006 are represented in the table below.
The County's contributions were equal to the required contributions for each year.
FY -2008 FY -2007 FY-2006
General Fund $ 18,842,653 $ 18,678,498 $ 15,763,159
Road Construction 169,894 160.080 124,015
Community Redevelopment 24,511 22,013 9,231
County Water and Sewer 1,549,255 1,673,956 1,263,952
Nonmajor Governmental Funds 4,825,491 4,846,006 2,927,430
Nonmajor Enterprise Funds 2,593,107 2,719,220 1,846,197
Internal Service Funds 204,365 207,274 160,116
Totals $ 28,209,276 $ 28,307,047 $ 22,094,100
63
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
NOTE 10 - TRANSFERS
Transfers for the year ended September 30, 2008 were as follows:
Transfers from Fund
Transfers to Fund
Governmental Activities:
General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Nonmajor Business Type
General Fund
Nonmajor Governmental Funds
Nonmajor Business Type
Road Construction
Nonmajor Governmental Funds
Nonmajor Governmental Funds General Fund
Road Construction
Nonmajor Governmental Funds
County Water and Sewer
Road Construction
Community Redevelopment
Business-type Activities:
County Water and Sewer
General Fund
Nonmajor Governmental Funds
General Fund
Nonmajor Governmental Funds
Road Construction
County Water and Sewer
Nonmajor Business-type
Total s
1 3 A~"
Amount
$ 24,000,000
62,391,105
6,303
22.650,217
248,000
14,714,800
2,000,000
200,000
271,979
3,957,236
621,722
31.949.703
64,300
3,650,819
925,700
470,367
84,400
1,338,340
153,600
$169,698,591
Transfers between funds move unrestricted revenues collected in the General Fund to finance
operating and capital programs accounted for in other funds in accordance with budgetary
authorizations and to move receipts restrictc;p to debt service from the funds collecting the
receipts to the debt service fund as payments become due,
NOTE 11 - NET ASSETS/FUND BALANCES
Net assets represent the difl'erence between total assets and liabilities. Net assets are categorized
as follows:
Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the
acquisition of these assets and net of depreciation is reported separately in the net assets section.
64
.
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
1 3 A 111
,
\
,
NOTE 11 - NET ASSETS/FUND BALANCES - CONTINUED
Restricted for growth related capital expansion: Impact fee and system development charges
restricted for growth related capital expansion.
Restricted for transportation capital projects: Gas taxes and other revenues restricted for
transportation capital improvements,
Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the
purchase of environmentally sensitive land.
Restricted for Tourist development: Tourist development tax proceeds are restricted for tourist
related activities,
Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and
have been funded by operating transfers from the appropriate funds. The use of monies in the
sinking fund is restricted to the payment of principal and interest on long-term debt.
Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of
County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund
is restricted to funding the cost of additions, replacement or major repair of water and wastewater
capital assets.
Unrestricted: Balances are not restricted for specific purposes.
The following categories are used for reporting governmental fund balances in the fund financial
statements.
Fund Balances ReservedlUnreserved
Reserved for prepaid costs: Balances represent insurance, travel and other expenses paid in
advance and which are not considered available and spendable resources.
Reserved for inventory: Balances represent items which are not considered available and
spendable resources.
Reserved for advances to other funds: Balances represent long-term advances made to other
funds which do not constitute expendable and available financial resources.
Reserved for encumbrances: Balances are segregated for expenditure upon vendor performance.
Reserved for debt servicc: Balances represent monies legally restricted to the payment of
principal and interest on long-term debt.
65
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
''1
.
NOTE 11 - NET ASSETS/FUND BALANCES - CONTINUED
Unreserved, reported in general fund: Balances in the general fund not reserved for specific
purposes.
Unreserved, reported in special revenue funds: Balances in the special revenue funds not reserved
for specific purposes.
Unreserved, reported in debt service funds: Balances in the debt service funds not reserved for
specific purposes.
Unreserved, reported in capital project funds: Balances in the capital project funds not reserved
for specific purposes.
NOTE 12 - RISK MANAGEMENT
The County is exposed to various risks of loss related to tort; then 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
ofticial 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 selt~insurance fund and for
all other covered risks of loss.
Claim Type
Property and casualty claims
County's Coverage
$50,000 - $500,000
(5% Named Storm)
$200,000
$175,000
$350,000
Excess Carrier's Coverage
$50,000 - $125,000,000
Auto liability claims
Employee health claims
Workers' compensation claims
$200,000 - $2,000,000
$175,000 - $2,000,000
$350,000 - $25,000,000
The aggregate loss exposure on casualty claims is $1,160,000. Settled claims have not exceeded
the insurance provided by third party carriers in any of the past three years. All divisions of the
County, excluding the Sheriff, participate in this program. Charges to operating departments are
based upon amounts believed by management to meet the required annual payouts during the
fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended
September 30, 7008 the operating departments were charged $35,196296 for workers'
compensation, health and property and casualty self-insurance programs.
66
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
"
NOTE 12 - RISK MANAGEMENT - CONTINUED
The claims loss reserve for workers' compensation, health and property and casualty of
$8,192,000 reported at September 30, 2008 was calculated by third party actuaries based upon
GASB Statement 30, Risk Financing Omnibus. which requires that a liability for claims be
reported when it is probable that a loss has been incurred and the amount of that loss can be
reasonably estimated. The estimated liabilities for unpaid losses related to workers'
compensation and property and casualty were discounted at 3.5%. Claims loss reserves of
$3,458,207 are recorded as current liabilities.
The Sheriff participates in the Statewide Florida Sheriffs Self-Insurance Fund for its professional
liability insurance. The fund is managed by representatives of the participating Sheriff offices
and provides professional liability insurance to participating Sheriff agencies. The Florida
Sheriffs Self-Insurance Fund provides liability insurance coverage subject to the following
limitations: $3,100,000 for any claim involving a single individual, $3,200,000 for any incident
which involves multiple claims and aggregate, $3,500,000 ultimate net loss per Sheriff during
any policy period.
The Sheriff also participates in the Statewide Florida Sheriffs Self-Insurance Fund program for
workers' compensation coverage. The Florida Sheriffs Association Workers' Compensation
Insurance Trust (FSA WIT) is a limited self-insurance fund providing coverage for the first
$350,000 of every claim. Re-insurance is provided through a third party insurer for all claims
exceeding $350,000 up to $10,000,000 and an aggregate of $500,000 depending on type of
bodily injury. Settled claims have not exceeded the insurance provided by third party carriers in
any of the past three years.
Premiums charged to participating Sheriffs are based upon amounts believed by Fund
management to meet the estimated annual payouts during the fiscal year and to pay for the
estimated operating costs of the program. All liabilities associated with these self-insured risks
are reported in the basic financial statements of the Statewide Florida Sheriff's Self-Insurance
Fund. The Sheriff cannot be additionally assessed lor claims paid by the program.
The Sheriff has also established a self-funded employee health plan. An internal service fund is
used to account for the activities of the plan. Excess coverage has been purchased which
provides specific claim excess coverage for anyone incident exceeding $150,000 up to
$1,000,000. Payments to the internal service fund are based on actuarial estimates of amounts
needed to pay prior year and current year claims.
The claims loss reserve lor health of $2,094,000 reported at September 30, 2008 was calculated
by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires
that a liability for claims be reported when it is probable that a loss has been incurred and the
amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is
recorded as a current liability.
67
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
'~
NOTE 12 - RISK MANAGEMENT - CONTINUED
CHANGES IN SELF-INSURANCE CLAIMS PAYABLE
Changes in the selt~insuranee claims payable for fiscal years 2007 and 2008 were as follows for
the County and Sheriff self-insurance programs:
Property and Group Workers'
Casualty Health Compensation Total
Balance at September 30, 2006 $ 3.097.000 $ 4,275,000 $ 3,886,000 $11,258,000
Current year claims incurred and
changes in estimates 1,870,096 38,158,691 723,054 40,751,841
Claim payments (2,030,096) (37,771,691) (637,054 ) (40,438,841)
Balance at September 30, 2007 2,937,000 4,662,000 3,972,000 11,571,000
Current year chums incu rred and
changes in estimates 561.528 25,472,650 (608,384 ) 25,425,794
Claim payments ( 1,268,528) (24,928,650) (513,616 ) (26,710,794)
Balance at September 30, 2008 $ 2,230,000 $ 5,206,000 $ 2,850,000 $ 10,286,000
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The Board and the Tax Collector administer a single-employer defined benefit
plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that
subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick
leave remaining at the time of retirement and have completed 15 years of continuous service with
the Board. In addition, the retiree must retire from the County, be at least 55 years of age or have
completed 30 years of service under the Florida Retirement System (FRS) and be eligible to
receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to
100% subsidy toward the cost of coverage under the active plan. The Tax Collector offers an
OPE13 plan that subsidizes 100% the cost of health care l()r employees with 10 years of service,
between the ages or 54 and 64 and who exchange 800 hours of sick leave at retirement.
Additionally, in accordance with Florida Statute 112.080 I, County employees who retire and
immediately begin receiving benefits tl'om the FRS have the option of paying premiums to
continue in the County's health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, County plan participation
consisted of:
OPEB plan participants
Retirees receiving benelits
2,352
82
68
,
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
'''1
NOTE 13 - OTHER POST EMPLOYMENT BENEFITS - CONTINUED
Funding Policy - The County has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the County contributed $158,312 to the OPEB Plan.
Annual OPEB Cost and Net OPEB Obligation - The annual cost (expense) of the County's
OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal
cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years.
The following table shows the components of the County's annual OPEB Plan cost for the year,
the amount actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution $ 514,423
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense) 514,423
Contributions made (158,312)
Increase in net OPEB obligation (asset) 356,111
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year $ 356,111
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 31 %
of the annual OPEB cost. Information for the two preceding fiscal years is not available as
GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for
benefits was $3,769,254, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $3,769,254. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $173.5 million, and the ratio of the UAAL to the
covered payroll was 2.2%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates
of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the lunded status of the plan and the
annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future.
69
---'.-.---,. .~
,.... _.~._-- <. '~.- ,...,..- --
, ,""",-.....
,..-
...., _.._. .'" ",~..__,_.,.._ ._w"'_'_~n__
, --
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
:,
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between 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 li.mding 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 elfeets of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Heallhcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
Plan Description - The SheritT administers a single-employer defined benefit plan (OPEB Plan)
and can amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost
of health care for its retirees who have 6 years of creditable service with the Sheriff and who
receive a monthly n~tirement benefit from the Florida Retirement System. The Sheriff subsidizes
approximately 20% for single coverage and 21 % for family coverage for qualifying individuals.
Additionally, in accordance with Florida Statute 112.080 I, Sheritrs employees who retire and
immediately begin receiving benefits trom the FRS have the option of paying premiums to
continue in the Sheriff's health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEB plan participants 1,374
Retirees receiving benefits 69
Funding Policy - The Sheriff has the authority to establish and amend funding policy. For the
year ended September 30, 2008, the Sherin' contributed $469,998 to the OPEB Plan.
70
"
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
il
NOTE 13 - OTHER POST EMPLOYMENT BENEFITS - CONTINUED
Annual OPES Cost and Net OPEB Obligation - The annual cost (expense) of the Sheriff's OPEB
Plan is calculated based 0)1 the Annual Required Contribution (ARC), an amount aetuarially
determined in accordance with the parameters ofGASB Statement No. 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year
and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following
table shows the components of the Sheriff's annual OPEB Plan cost for the year, the amount
actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution $ 1,019,866
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense) 1,019,866
Contributions made (469,998)
Increase in net OPEB obligation (asset) 549,868
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end of year $ 549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress - The contributions made for the 2008 fiscal year were 46%
of the annual OPEB cost. Information for the two preceding fiscal years is not available as
GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008
actuarial valuation date, the OPES Plan was 0.0% funded, the actuarial accrued liability for
benefits was $9,354,088, and the actuarial value of assets was $0, resulting in an unfunded
actuarial accrued liability (UAAL) of $9,354,088. The covered payroll (annual payroll of active
employees covered by the OPEB Plan) was $128.2 million, and the ratio of the UAAL to the
covered payroll was 7.3%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates
of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality, and the
healtheare 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.
71
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
..,~
~Pl,.,.
.,~
,,.
"
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Calculations for linaneial 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 efTects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 liseal 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 landlill 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 lmmokalee landfill
sites. None of the cells that Collier County is responsible for has accepted waste since December
1989. The County is also responsible for stafJing and operating the scale house at each site.
In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and
Facility Criteria and GASB Statement 18, Accounting for Municipal Solid Waste Landfill
Closure and Postclosure Care Costs, a liability has been established representing amounts
estimated to be spent on postclosure relating to cells for which Collier County is responsible.
The County's estimated liability in connection with the landfills is included in the proprietary
funds statement of net assets. The liability decreased by $1,149,949 during the liscal year
primarily due to the reclamation and rehabilitation of approximately 16 acres at the Naples
landfill site J()r which Collier County had been responsible. The acreage is now active and
responsibility !()r the related closure and postc!osure costs rest with the company operating the
landJill. The landfill liability will be reassessed on an annual basis, and any increase due to
inflation, changes in technology or additional postc!osure care requirements will be recorded as a
72
COLLIER COUNTY, FLORIDA 1 3 A
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
lit"
.,'"
o.
NOTE 14 - LANDFILL LIABILITY - CONTINUED
current cost. The County has funded an escrow account with Finh Third Bank in the amount of
$10,000 to comply with Rule 62-701.630, Florida Administrative Code for the inactive Eustis
A venue Landfill site. These funds bear interest and are restricted for the exclusive use of the
Eustis A venue Landfill site's long-term care. There were no deposits, other than interest, or
withdrawals lrom this account in fiscal year 2008.
NOTE 15 - SIGNIFICANT CONTINGENCIES
LITIGATION
The County is involved as defendant or plaintiff in certain litigation and claims arising in the
ordinary course of operations. In the opinion of County legal counsel, the range of potential
recoveries or liabilities will not materially affect the financial position of the County. Litigation
is pending between the Clerk of the Circuit Court and the Board of County Commissioners
regarding the role of the Clerk of the Circuit Court as County Auditor, the Clerk's status as a
budget officer versus a fee officer and the Clerk's entitlement to investment earnings on County
funds, See Note 19, Subsequent Events, for further discussion. No financial liability has been
determined at this time.
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 ofthe interest costs incurred are required to be rebated to the federal government.
The total arbitrage rebate liability as of September 30, 2008 was $2,183,332, of which $677,752
related to governmental activities and $1,505,580 to business-type activities.
73
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
'I
NOTE 16 - SIGNIFICANT COMMITMENTS
CONSTRUCTION COMMITMENTS
Collier County has active construction projects as of September 30, 2008. The projects include
road construction, governmental facilities and utilities improvements. At year end the County's
commitments with contractors includes the lollowing:
Future
Category Commitments
Governmental Activities:
Road Impact Districts Roads $ 11,702,664
Road Construction Roads 48,700,426
Other Governmental Parks 1,513,476
Roads 2,613,786
Buildings 33,187,184
Beach restoration 770,996
Storm water drainage 5,767,666
Business-type Activities:
County Water and Sewer Utilities 17,815,982
Othcr Entcrprise Landfill expansion and closure 2,386,859
Airports 534,581
$ 124,993,620
NOTE 17 - FUND DEFICITS
The following funds had fund balance deficits at September 30, 2008:
County- Wide Library Impact Fees - The unreserved fund balance deficit of $(959,428) is
. primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies 10llned to the impact fee
fund for the construction of growth necessitated library facilities. It is anticipated that the deficit
will be covered by future years' impact fee revenues.
Emergency Medical Services Impact Fees - The unreserved fund balance delicit of $(340,051) is
primarily the result of advances from other funds made prior to September 30, 2008. These
advances were recorded to ensure repayment of non-impact fee monies loaned to the impact fee
lund for the construction of growth necessitated emergency medical services facilities. It is
anticipated that the deficit will be covered by future years' impact fee revenues.
74
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
NOTE 18 - SPECIAL ITEM
On August 14, 2008 the Circuit Court issued a ruling in Case 07-1056-CA requiring that the
Clerk of the Circuit Court post a bond in the amount of $3,239,000 with the registry of the court
not later than August 29, 2008, Bond was posted by the Clerk of the Circuit Court in the form of
cash on August 26, 2008, including applicable registry fees of $48,593.
NOTE 19 - PRIOR PERIOD ADJUSTMENT
As of September 30, 2007, the County Water and Sewer District had $1,475,577 of planning
costs capitalized as construction in progress. These costs were associated with the development
of long range plans for the District. These costs cannot be specifically identified to a particular
capital asset and as such should not have been capitalized. A prior period adjustment has been
recorded to remove these costs from construction in progress.
Net Assets, September 30, 2007
Adjustment to construction in progress
Net Assets, September 30, 2007, as restated
County Water
and Sewer
$ 687,363,264
(1,475,577)
$ 685,887,687
Had the adjustment been recorded in the 2006-2007 fiscal year, the change in net assets for the
fiscal year ended September 30, 2007 for the County Water and Sewer Fund would have been
decreased from $38,787,418 to $37,311,841 and would have decreased from $43,074,858 to
$41,599,281 for the total of all Business-type funds.
NOTE 20 - SUBSEQUENT EVENTS
On November 21, 2008 Collier County issued the $13,244,204 Series 2008 Conservation Collier
Limited General Obligation Bonds. The bonds were issued for the purpose of purchasing
approximately 2,511.9 acres of environmentally sensitive land known generally as Pepper Ranch.
On September 25,2008 the Court issued oral ruling in Case 07-1056-CA dated October I, 2008
requiring the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash bond
previously deposited into the Court registry. On October 6, 2008 the Second District Court of
Appeal reversed the Court orders and remanded back to the Twentieth Judicial Circuit for a full
evidentiary hearing related to maintaining the automatic appellate stay and the propriety of a
bond, if any, and the amount, if any, of such a bond. On December I, 2008, the Twentieth
Judicial Circuit Court conducted the full evidentiary hearing pursuant to the mandate of the
Second District Court of Appeal and on December 18, 2008 the Court Ordered and Adjudged
that the Clerk cause to be released to the County's General Fund the $3,239,000 cash bond
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December 1, 2008 are stayed during
75
-
-
.. -"..." "" _.1...-, - -.,
-.-....._<'~,-_._--
--
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
13A
-
NOTE 20 - SUBSEQUENT EVENTS - CONTINUED
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.310(b)(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January 15, 2009, the Clerk shall accollnt, in writing, to the Board of County Commissioners the
total amollnt of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January 15. 2009, the Clerk shall transfer from his
accounts, 7/3rds of the income received on County funds lor the previous calendar month, to the
Board's General Fund. The Court lound that a cash or surety bond was inappropriate.
In an opinion liled on January 30. 2009 the Second District Court of Appeal of Florida, in Case
2008-3] 26, reversed and remanded the trial court's December 18, 2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute Section 28.33 as "clear and unambiguous" in authorizing the Clerk
of Courts to claim as income interest earned on tunds that the Clerk, as custodian of County
funds, has invested on behalf of the County. This opinion will not be linal until all proceedings
are concl uded.
76
REQUIRED SUPPLEMENTARY
INFORMATION
13A f!~
.'m.._....," ... "____~____.,..___~._._~.._~__.,...,______..__,,_'.w,' '_ .,. _,_._ .,_......,~_..,.._.~._.~_._~._,..._... ,..... _,......_',..'__ ,._ "_,..~___.'_" _______,,_._..._.,___,..__ _ _ .._._ __ '_______._____ ...un .. _..n..___ _ _ ___.. __. ____ n__ ..__ __..0____
Agency
Actuarial
Valuation
Date
Required Supplement3l1' Information
Collier County, Florida
Schedule of Funding Progress
for the Retiree Health Plan
Actuarial
"'alue of
Assets
Actuarial
Accrued
Liabilih-
Projected
lInit Credit
Covered
Payroll
13A "
LAAL as a
Percentage of
Covered
Payroll
Unfunded
AAL
Funded
Ratio
Board and Constitutionals 10/ ];200? $ , ],76l.J.254 , .1.76lJ.254 {J.O~,t $ 173,538.752 2.2%
(Non.Sherilr)
Sheri If lOil/2007 Y,354.U88 Y,.J54,088 {),O% 128,182,543 7.3%
Tl)la] S , 13,123,.142 $ 13.123,342 $ 301,721,2Y5
,
-K
Nonmajor Governmental Funds
13A ....~
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.
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.
FIRE CONTROL DISTRICTS - To account for taxes levied within municipal service taxing districts
for fire prevention and control.
LIGHTING DISTRICTS - To account for taxes levied within municipal service taxing district for
street lighting.
911 ENHANCEMENT FEE ~ To account for fees levied on each telephone access line in the County
for the enhancement of the 911 emergency telephone system.
PUBLIC RECORDS MODERNIZATION - To account for the statutory surcharge on recording
documents to be paid to the Clerk of the Circuit Court for the modemization of the Clerk's official
records management system.
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 trom
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.
.---- ,- ..~.~._"._._-_.
__.~ ""'__"_"'.__,__""__"~, ._M._.__.....,..,. ......_....
........_" ,.', ""~"-
- - _..._._-_..~.--
13A
Special Revenue Fnnds - Continued
UTILITY FEE - To account for fees to be used to effectively and elTiciently regulate private water and
wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco
Island.
CONSERVATION COLLIER - To account for the acquisition and management of environmentally
sensitive lands.
IMPACT FEE ESCROW - To account for impact fees relating to certain projects under construction
until permits are issued.
COURT INFORMATION TECHNOLOGY FEE - To account for the accumulation of resources to
enhance and increase access to court information.
COURT SERVICES - To account j'lr 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 afTordable housing
related projects.
OTHER SPECIAL REVENUE FUNDS - To account for the accumulation of resources for the
following programs:
Miscellaneous Florida Statutes Fee Collections
Adoption Awareness
Teen Court
Animal Control
Public Librarv
-
Law Library
Inmate Welfare
County Drug Abuse
Law Enforcement Training
Euclid and Lakeland Assessment
Legal Aid Society
Federal Equitable Sharing
Domestic Violence
Juvenile Assessment Center
Driver Education
Crime Prevention
Freedom Memorial
Debt Service Funds
GAS TAX REVENUE BONDS - To account lor the accumulation of resources and payments of
interest and principal on long-term debt incurred in the refunding of the 1986 Road Improvement
Revenue Bonds.
CAPITAL IMPROVEMENT REVENUE BONDS -- To account for the accumulation of resources
and payment of interest and principal on long-term debt incurred on various Revenue Bonds.
POOLED COMMERCIAL PAPER PROGRAM - To account lor the accumulation of resources and
payment of interest and principal on the Commercial Paper loan program.
CARIBBEAN GARDENS LOAN -- To account lor the accumulation of resources and payment of
interest and principal on long-term debt incurred in the acquisition of Caribbean Gardens.
II
Debt Service Funds - Continucd
131
'~
'n~
STORMWATER IMPROVEMENT ASSESSMENT BONDS - To account for the accumulation of
resources and payment of interest and principal on long-term debt incurred in the refunding of the
Commercial Paper loans.
LIMITED GENERAL OBLIGATION BONDS, CONSERVATION COLLIER, SERIES 200SA
To account for the accumulation of resources and payment of interest and principal on long-term debt
incurred for the acquisition of environmentally sensitive lands.
COMMUNITY REDEVELOPMENT LINE OF CREDIT - To account for the accumulation of
resources and payment of interest and principal on long-term debt incurred acquisition of land in the
Bayshore/Gateway Community Redevelopment Agency.
FOREST LAKES LIMITED GENERAL OBLIGATION BONDS - To account for the
accumulation of resources and payment of interest and principal on long-term debt incurred on the Forest
Lakes Limited General Obligation Bonds.
Capital Project Funds
COUNTY-WIDE CAPITAL IMPROVEMENTS - To account for Capital Projects, designated by
The Board of County Commissioners, to be funded by a County-wide one third mil levy.
PARKS IMPROVEMENTS - To account for the expenditure of funds raised specifically for
improvements to parks. Projects include land acquisition, design, construction and equipping of certain
Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes.
COUNTY-WIDE LIBRARY IMPACT FEES
impact fees collected from all qualitying new
acquisition of County-wide library facilities.
To account for the receipt and expenditure of library
construction. These impact fees must be used for
CORRECTIONAL FACILITIES IMPACT FEES - To account for the receipt and expenditure of
correctional facilities impact fees collected from all qualitying new construction. The impact fee must be
used lor 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 Irom 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 offunds raised specifically for
water management purposes. Primary funding is ad valorem taxes.
GOVERNMENT FACILITIES IMPACT FEES - To account for the receipt and expenditure of
government facilities impact fees collected from qualitying new construction. The impact fees must be
used for the acquisition/construction of park facilities.
PARKS IMPACT DISTRICTS - To account for the receipt and expenditure of parks impact fees
collected from all qualitying new construction. The impact fees must be used for the
acquisition/construction of park facilities.
OTHER CAPITAL PROJECTS - To account for major capital expenditure financed from resources
other than proceeds from the issuance of long-term debt and the one third mil levy.
LAW ENFORCEMENT IMPACT FEES - To account lor the receipt and expenditure of law
enforcement impact fees collected rrom all qualifying new construction. The impact fee must be used for
the acquisition/construction of law enforcement related facilities.
COl.LlER COlINTY. FLORIDA
COMBINING BALANCE SHEET
NONMA.JOR GOVERNMENTAl, FlINDS
SEPTEMBER 30, 2008
13A
li
,
Spccial Revenue Funds
Water
Management Grants and
Road Unincorporated CommunIty and Pollution Shared
Dlstrlcts Area MSTD Development Control Revenues
ASSETS
Cash, cash equivalents and investments $ 4,011,521 $ [S,7J9,160 $ 5,539,973 $ 3,449,171 $ 5.805.640
Receivables:
Interest 41,397 10,692 7,352
Trade, nel 21.1:09 '1U7.791:; O3,U]7 9.346 11.429
Notes 238.00(J
Special assessments
Due from other funds 1,450 459.904 160 54,524 2,85]
Due from other governments ]:'19,3:'18 691239 35,1[[ 59,208 2,227.570
Inventory
Advances to other funds
Prepaid costs
'"[ota[ assets $ 4.424,238 $ 17,398,10] $ 5,679,658 $ 3,582,941 $ 8,292,842
LIABILITIES AND FUND BALANCES
Llabllitles-
Accounts payab[c 1.122.622 2,565.242 38.988 79,U37 453,]98
Wages payable SU1,6Y9 519.586 41Y,Y27 103,222 68,795
Due to other funds 14 67,095 14354 1.035.183
Due to other governments 68 3,52<) 702,569 14.832
Due to individuals 755
Defcrn:d rcvcnues 20 280.607 1,725,32]
Refundab]e deposits J-t,l65
Retainage payable JU_l:110
Advances from other funds
Totalllabilltlcs 1_624,423 :l,4M.S6Y 1,]9U,75:'1 182,259 3,297,329
Fund ba]am:es (deficits):
Reserved for
Encumbrances 7_221 2_117.651 189.35Y 224,667 4,4]5,138
Inventory
Advances 10 other funds
Prepaid costs
Debt service
Unreserved, reported 111
Specla[ revenue tunds 2,71,12,594 [ 1,:'113.581 4,299,541 3,176.015 580,375
Debt serVice lunds
Capital projects funds
Total rlllld b<l!ances (deficits) 2,799,815 13.931.232 4,4HH 900 3,400,682 4,995,513
,
Total liabilitIes and fund balances $ 4,424238 $ 17,398,101 S 5,679,658 $ 3,582,941 $ 8,292.842
See accompanying independent audItor's report
He
Special Revenue Funds
13A 'I
$ 20,046,989 $ 1,248,2t9 $ 520,468
1,268,107
14518
1,914
1,284,539
2,459,495
16,302,955
18,762,450
$ 20,046,989
18,289
90,316
108,605
21,250
218
1,118,146
1,139,614
$ 1,248,219
66,278
66,278
454,190
454,190
$ 520,468
$ 5,996,580 $
126,894
126,894
5,869,686
5,869,686
$ 5,996,580
6,333,369 $ 26,682,481 $ 3,196,194
63,814
63,814
6,269,555
$
6,269,555
6,333,369
8\
1,351,133
74,731
270
113,094
1,539,228
2,067,268
23,075,985
382,472
10,763
65
1,614,631
2,007,93 I
434.141
754,122
25,143,253
$ 26,682,481
1,188,263
$ 3,196,194
{Continued)
COLLIER COl'NTY, ELORIDA
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
13A
i1
Special Revenue Funds
80U
MHZ GAC Land
IRCP State Court Confiscated Sales, Roads Utility
Fund AdmInIstration Property and Canals Fee
ASSETS
Cash, cash equivalents and investments $ .165.790 $ 656.654 $ 7l7Al2 $ L716,291 $ 575.504
Receivables:
Interest 4,496 ]0,279
Trade, net 5Y76 4.528 36,662
Notes
Special assessments
Due from other funds 28,]94
Due trom other governments 320
Inventory 282.39]
Advances to other funds
Prepaid costs
TOlal assets $ 371.986 $ 689,376 $ 741,908 $ 2,008,96] $ 6]2,]66
LIABILITIES AND FUND BALANCES
LiabilIties.
Accounts payable 164,932 35,400 . ]]5
Wages payabk 82,805 ]0.030
Due to other funds '\51,569
Due to other govnnments
Due tu indIviduals
Deferred revenues 2H2.39]
Refundable depOSIts
Retalnage payable
Advances from other funds
Totalliahllitlc~ 164,932 669,774 282,39] ]0,]45
Fund balances (deficits)
Reserved fur
l~nc\Jmbrances
Inventory
Advances to other funds
Prepaid costs
Debt service
Unreserved, reported In
Spec wI revenue funds 207054 ]9,602 741.908 ].726.570 602,02]
Debt Sl,:rVlce funds
Caplt::Jl projects funds
Total fund balances (deficits) 207,054 ]9,602 74],908 ],726.570 602,02]
Total liabilities and fund balances $ 371,9R6 $ 689)76 $ 74],908 $ 2,008,96t $ 6]2,]66
See accompanying independent auditor's repon
34
13A
l;~
p.
Special Revenue Funds
Other
Court Court Special
Conservation Impact Fee Information Court University Facilities AtIordable Revenue
Collier Escrow Technology Services Extension Fec l'lousing Funds Total
$ 30,967,598 $ 657,868 $ 8,121 $ 1,620.288 $ 35,665 $ 796,619 $ 231,496 $ 4,975,004 $ 139,446,122
168,381 6,881 t2,995 418,644
15,772 46,390 5,126 8,404 1,322,240
1,399,773
153,t 10 157 949,589
30,031 3,747.406
282,609
$ 31,304,861 $
657,868 $
54,511 $ 1,650,319 $ 35,665 $
808,626 $ 231.496 $ 4,996,560 $ 147,566,383
12,513 202,686 113 125.472 68,842 8,019,253
13,937 2,704 1,913,033
4,670 87,858 1,887,972
1,447,63] 313 2,168,944
25,493 26,248
3,902,970
13,132 27.297
2,818 25,835 91,836 153,213
113,094
29,268 13,132 4,670 1,650,319 113 151,307 277,046 18,212,024
60,822
543.579
135,664
12,676,255
218
31,214,771
644,736
49,841
35,552
113,740
231,496
4,583,850
116.677,886
31,275,593
$ 31,304,861
644,736
657,868
$
657,319
808,626
231,496
$ 231,496
4,719,514
$ 4,996,560
129,354,359
$ 147,566,383
$
49.841
54,511
$
1,650,319
35.552
$ 35,665
$
(Continued)
85
"'~""'~"'~'-"-'-
~._--,-_.,'.. -
".__"_,._u~__". _,,_.,_ '"' , '.
''''~'_'''''''4_>_'.~__.'"~,_~",~_"-"~~.~^,_~"_,_,,,~~_.,_,",=~._~..,..._"
,---~~" ._----~..__.~_.._-."
COLLIER COCNTY, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL Fl'NDS
SEPTEMBER 30, 2008
13A
Debt Service J<'unds
86
:-
13A
Capital Projects Funds
Limited General
Obligation Bonds Community Forest Lakes County-Wide
Conservation Collier Redevelopment Limited General Capital Parks
Series 2005A Line of Credit OblIgation Bonds Tota] Improvements Improvements
$ 147,925 $ 943 $ ]66,257 $ 5,646,2K4 $ ]],820,504 $ ] 8,052,624
1,677 4 45,630
3,869 6,988
371.898
51,695 6,938 222,765 47,002
]30,576 240,885 ]48,336
]0,935,]00
$ 201.297 $ 943 $ 173,199 $ 6,421,022 $ 42,996,489 $ ]8,254,950
4,446,453
342,958
370,611
97,684
214,541
25,761
370,611
4,758,678
368,7]9
13,660,790
]U,935.]00
2,007,339
4,099,533
20],297 943 ]73,]99 1,950,878
]3,64],92] ] 5,878,892
20],297 943 ] 73.]99 6,050,4] ] 38,237,8] 1 ]7,886,23]
$ 20],297 $ 943 $ ]73,]99 $ 6,421,022 $ 42,996,489 $ ]8,254,950
87
-'._-'~'-
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__._+_,_.~w~
~.
,
~ -,
01,;';"
~~
-~~.~.~-~,
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
~ONMAJOR GOVERNMENTAL Fl'r'DS
SEPTEMBER 30, 2008
13A
. ,~
.<titj
Capital Projects Funds
County- Wide Correctional Emergency Government
Library Facllitles Medica] ServIces Water Facilities
Impact Fees Impact Fees Impact Fees Management Impact Fees
ASSETS
Cash, cash equivalents and investments $ 4,441.761 $ 2,715.799 $ 814,654 $ 8,670,205 $ 33.669,()78
Receivables:
Interest 4J36
Trade, net 1J43 375 278 6)7 446
Notes 502,297 2]9,961 187.970 248.489
Special assessments
Due from other funds 2,850
Due from other governments 308.626 46.8)8 5,2]4 300.000 29,5)8
Inventory
Advances to other funds
Prepaid costs 476
Total assets $ 5,254,503 $ 2,982,953 $ 1.008,) 16 $ 8,977,808 $ 33,947,531
1.IABILlTlES AND FU~D BALA!';CES
L13bllitles'
Accounts payable 559J77 138,lf32 873 L7H],MO 6,124,686
Wages payable
Uue to other funds 68 24 324
DUl: to other governments
Due to ll1divlduals
])eferred revenues 502,297 219.961 187,970 248,489
]{dundablc deposits
Relamage paYilble 630,:189 ]07.R28 350,152 2,595_549
Advances from other funds 4,521,8UO 1,159)00 4,204,600
Iotalliabllitks 6,213,931 466,721 1,348,167 2,132,116 13,173.324
Fund balances ~delicits):
Reserved fur
Encumbrances L184,507 512,486 741.718 4,749,642 20.050.057
Inventory
AdvilllCl,:S !o other funds
Prepaid costs 476
Debt service
Unreserved, reported Ill'
SpeCial revenue funds
Debt servIce funds
Capita] projects funds (2,144,411) 2,(lUJ,746 (1.081.769) 2,096,050 724,]50
Total fund balances (deficits) (95Y,428) 2,516.232 (340,051) 6,845,692 20,774.207
Totalliabillllcs and tund balancl.:s $ 5)54,503 $ 2,982,953 $ 1,008,116 $ 8,977.WS $ 33,947,531
See aceompanymg HHJependent fludllur's rep(lrt
KK
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement CapIta] Governmental
Districts Impact Fees Projects Total Funds
$ 20, I 05,271 $ 12,051.973 $ 5,302,327 $ 137,644,196 $ 282,736.602
4,136 468,410
7,443 209 825 18,524 1,344,633
2,680,764 69,041 3,908,522 5,308,295
55,589 55,589 427,487
1.014 50,866 1,223,220
41,046 1,120,443 4,998,425
282,609
10,935,11l0 10,935,100
476 476
$ 22,834,524 $ 12,12t,223 $ 5,359,755 $ t5J,737,852 $ 307,725,257
335,004 1,748,153 t51,994 15,629,870 23,649,123
31,099 31,099 1,944,132
416 1,888,388
2,168,944
26,248
2,680,764 69,041 4,006,21l6 8,279,787
27,297
630,674 69,891 4,624,985 4,778,198
6,063.500 15,949,200 J 6,062,294
3,015,768 8,511.368 252,984 40,241,776 58,824,411
913,384 6,392,838 1,565,935 5 J .778,696 64,454,951
218
10.935.11J0 10,915,100
476 476
4,099,533
116,677,886
1,950,878
18,905,372 (2,782,983) 1,540,836 50,781,804 50,781,804
19,818,756 3,609,855 5,106,771 113,496,076 248,900,846
$ 22,834,524 $ 12,121,223 $ 5,359,755 $ 153,737,852 $ 307,725,257
~9
,.,."._....._.~,-~
~ -
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---
-~---"~
-~,,~,~.~--"~,,~--_.... -.
1 3 A .>~j
~~.,__,.+, _M.'....__._...~__._..~
._._'-
COLLIER COliNTY, FLORIDA
COMBINING STATE\1ENT OF REVENlIES, EXPENDlTl'RES A'lD CHANGES IN FlIND BALANCES
NOI\MAJOR COVERNMENTAL FLlNDS
FOR TilE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
.
~
Special Revenue Funds
Water
Management Grants and
Road Unmwrporated Community and Pollution Shared
DIstricts Area MSTD Development Control Revenues
RevenUes:
Taxes S $ 35,655,325 $ $ 2.231JJ43 $
Licenses and permIts 585,S80 6,187,064 9.924.245 670
IntergovemmentuJ 2.12!U06 36lj.007 215.183 9,751,872
Charges for servICes 11,610 2,336.818 3,221,413 322.870 55,69l
Fines and forfeitures 407.16(',
Interest income 2.252 31.676 201.545 95,638 57,548
Change III falr value
of investments (6.08(J) (2JJN01 (8,3111 (5,162) (J,92I)
Impact tees
Special assessments 8JW." 2,419.855
Miscellaneous 14U63 l'179Al:Hl 215,980 54,679 120,186
Total n:venues 2.864,301 45,651,451 13,554,872 5,334,776 9,981,376
Expenditures:
Current:
General government 7.270,243 7.820.734 968,574
Publ1c safety 4.813,6.'i I 8.635.531 L951,977
Physical enVlf(lllmcnt 534,626 570,30(j 3,063,427 45,222
'j'ransportation 20A57.114 15.11 ],324 1,63V162
h:onomlC environment 234.187 3,690,395
Human servICes 1.943,396
Culture and recreatllln 10,789.096 211,724
Debt suvicc:
Pnncipal
Interest
Fiscal charges
Capitaloutla)' 2,435,429 2.857,972 1,352 175,188 340,534
Total expendItures 22,892,543 41,611.099 17,027,917 4,871,477 9,151,822
I:xcess (uel'iclency) of revenues
ovcr (under) cxpenditures (20,OZS,242) 4,040.352 (3,473,045) 463,299 829,554
Other financing sources (uses):
Bonds Issued
Prcmium on bonds issueu
Loans Issued
Sale of capital assets 16,518
Insurance proceeds 10 L62Y 93,066 574 2,355
'I ransfers in 19,085,000 1,213,69.1 880,000 54,428 255,750
Transfers out (402,300) 15,807.827) (1.747,600) (315.351)
TOlal other l'inancmg sources (uses) 18.n4,329 (4,5UJ,068) (850,508) (258,568) 255,750
Net change ill fund balances (1243,91.11 (460.716) (4,323.5531 204,731 1,085,304
Fund balances (deficits) at be-ginning of ycar 'L04J,72S 14 NllJ4l:i 8,812,453 3,195,951 3,910,209
-- --
Fund balanct's (deficits) at end ofyellr $ 2,7':19,815 I 13,931.232 $ 4,488,YOO $ 3,400,682 $ 4,995,513
See aceompanymg ltlucpe-ndent audItor's n:port
l)U
13A _
Special Revenue Funds
State
Fire 911 Public Housing
Improvement Control Lighting Enhancement Records Tourist Imtiative 800 MHZ
Districts Districts Districts Fec Modernization Development PartnershiE....- feRP Fund
$ 4,007,145 $ 3,593,247 $ 579,874 $ 1,874,]96 $ $ 14,795,623 $ $
38,080 842,318 5,544,411
158.420 7,731 990,305 1,986 295,720 731,598
759,691 70,805 34,498 212,921 289,395 18,057 224,352
(29,765) (1,831) (821) (8,654) (38,947) (3,427) (546)
1,279,700
183,953
15,802,990
173
6,061,229
199,417
930,469
613,55t
]70,357
2,248,820
37,910
4,971,481
15,915
3,685,867
280,500
]78,217
(196,6]5)
],056,087
(3,145,609)
7,688,412
(549,004)
(217,494)
6,068,17]
30,8t5
5,000
53
68],680 53,180 6,523 ]47,144 toO,400
(284,158) (124,652) (]6,J35) (6,905,280)
6,496,508 (66,4]9) (9,812) (6,758,136) ]00,400
6,777,008 ]] 1.798 (206,427) ].056,087 13,145,609) 930,276 (549,004) (1 ]7.094)
] ],985,442 ],027,816 660,617 4,813,599 9,415,]64 24,2 ]2,977 ],737,267 324,148
$ t8,762,450 $ 1,139,614 $ 454,190 $ 5,869,686 $ 6,269,555 $ 25,143,253 $ t,]88,263 $ 207,054
91
-",~-
-
- . ,..".,
,........~ . ,....,..-
.
,
_....,_..--,.,._-"-~
COLLIER COUNTY, FLORIIJA
COMBINING STATEMENT OF REVENIIES, EXPENDITURES AND CHANGES IN F1IND BAI.ANCES
NON MAJOR GOVERNMENTAL FeNDS
FOR TIll: FISCAL YEAR ENDED SEPTEMBER 311, 2008
13A
tI
Special Revenue Funds
GAC ] ,and
State Court ('onfiscatcd Sales, Roads Utility Conservation
AdmimstratJoll Property and Canals Fec CollIer
Revenues:
'laxes $ I I I ]59,623 $ 12,652,196
LIcenses and permits
Intergovernmental
Charges for services 108,585 6,282 516
Fines and forfeitures 1,379585 83,309
Interest income 30.661} 71.636 1,272.609
Change In faIr value
of investments 11.11831 (1.1111 1),569) (835) (46,4721
lmpa<:t fees
Special assessments
Miscellaneous 9,069 J9Y,980 40t 45,670
Total revenues ],496,156 112,867 269,047 165,471 13,924.519
~:xpcnditurcs:
Current:
General government 1.223,666
Public safety 1.606,384 2),000
Physical envlrorunenl 180,268 937,339
TransportatlOll
Economic envIronment
Iluman servIces
Culture and recreation 54,062
Debt scryice:
Pnlll.':lpal
Interest
Fiscal charges
Capital outlay 28,503 6,718,744
'I'otal expenditures 2,858,553 25,000 54,062 180,268 7,656,083
Excess (deficiency) of revenues
over (under) expendItures U,362,397) 87.867 214,985 (14,797) 6,268,436
Other financing sources (uses):
Bonds Issued
Premium on oonus Issued
Loans Issm.:d
Sale of capnal assets
Insurance proceeds
Transfers in 1.248,198 153,110
Transfers out (8,120) (662,981)
Tolal other linam.:ing sources (uses) 1,248,11.)8 (lU2U) (509,871)
Net change III fund balances ( 114,199) 79.747 214,985 (14,797) 5,758,565
Fund balances (deficits) at beginning of year 133,8Ul 662,161 Ull,585 616,818 25,517,028
Fund balances (delicits) at end afyear I 19,602 I 741,9118 $ 1,726,570 I 602,021 $ 31,275,593
See accompfUlying mdepenrJe111 auditor's repon
92
13A I
Special Revenue Funds
Other
Court Court Special
Impact Fee Information Court University Facilities Affordable Revenue
Escrow Technology Services Extension Fee Housmg Funds Total
$ $ $ $ $ $ $ $ 75,548,272
19,473 16,717,332
18,889,747
779,717 9,238,222 472 1,598,356 19,866,312
969,046 310,236 3,149.342
59.404 48,660 4,407 81.892 3,567,655
(1,332) (519) (53) 11,177) (345) (5,121) (19],972)
2,428,660
7,607 ]48,1 ]2 198,418 2,429,070
(1,332) 779,]98 9,297.626 8.026 1,016,529 152,174 2,203,254 ]42,404,418
,
333,855 9,297.626 558,511 279,330 30,196,032
752,]38 23,309,009
1,4]0 7,074,932
778,335 39,952,402
]0,532,522
119,637 2,063,033
11.592 ]8,557,996
58,474
30,530
],720 850,740 ]6,602 ]8,055,003
333,855 9,297,626 3,130 1,409,251 t,957,634 149,829,933
(].332)
445,343
4,896
(392,722)
152,174
245,620
(7,425,515)
6,068,]7]
30,815
4,896
30,656
$ 35,552
(392,722)
],050,041
657,319
]52,174
79,322
$ 23],496
72,921
(412,] ]5)
(339,194)
(93.574)
4,813.088
$ 4,7t9,514
21,518
197.677
23,952,027
(]7,246,419)
13,023,789
5,598,274
]23,756,085
$ 129,354,359
(559,700)
(559,700)
(],332) (] ]4,357)
646,068 164,]98
$ 644,736 $ 49,84] $
$
(Continued)
93
,-,~
~, ~~-----
-
-~,'~. --~.,.._~-- ..".~_.-
--~.,,-_.,._~,
-"--..
COLLIER COl:N'I\', FLORIDA
COMBINING STATEMENT OF RI:VENI!I:S, EXPENDITl!RES AND CIlANGI:S IN FUND BALANCES
NONMA.IOR I;OVERNMENTAL FUNDS
FOR TIlE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
"
Debt Service Funds
Pooled Stormwater
Gas Tux Capita] Commercial Improvement
Revenue Improvement Paper Caribbean Assessment
Bonds Revenue Bonds Program Gardens Loan Bond
Revenues:
Taxes $ $ $ $ 11,956,1-\76 $
Licenses and petTllIIS
Intergovernmental
Charges for servkes
Fmes and forlCltun:s
Interest Income ]66,085 4,X48 4.133 141,202 24,470
Change 10 falr value
of investments (6,650) (11<1) (IUY) (3\3) (663)
] mpact fees
Special assessments 120,069
Misl,;e]]aneous 32,994 11.481
Total revenues 159,435 4,729 37,018 12.109,206 143,876
Expenditures:
Current:
(jeneral government
Public safely
PhYSIcal envmmment
'rransportatloll
Economic envIronment
J luman servICes
Culture and recn::atJUll
Debt service:
Principal 6.490,000 8,840.000 11.161,UOU 12, I 00.000 145.000
Interest 8.089277 10-546.850 1,(J]6,592 528.756 53,213
FIscal charges 4.57Q 7144 14,692 3434 6.145
Capital outlay
TU[illcxp<:nditur<:s 14,583,856 19,393.994 12.192,284 12,6]2.190 204,358
I:xccss (detku:ncy) ufrevenues
over (under) expenditures (14,424,421) ( IYJ8Y,2(5) (12,]55,266) (522,984) (60,482)
Other financing sources (ust's):
Bonds issued
Prermum on bunds Issued
Loans issued 124,444
Sale of capita] assets
Insurance proceeds
Transfers in 13,Y62,80(J IY364,400 12,]35,Sl73 131,838 1,\57
Transfers out (322,t66) (4,154)
T uta] uth<:!' finan<:mg sources (uses) 13,962,800 19.364,400 12,260,417 (190,328) (2,997)
Net change m fund bil]anu:s (461,621 ) (24.8651 105,151 (713.312) (63.479)
Fuud balanl'es (deficits) at beginning of year 4)Nl,IS4 197,198 109,91S 1,1()/U91 526,440
Fund balances (deficits) at end of year $ 4,429,S33 $ 172,333 $ 215,066 $ 395,079 $ 462,961
See accompanymg independent audllor's repurt
1)4
Capital Projects Funds
Limited General
Obligation Bonds
Conservation Collier
Series Z005A
$ 5,213,795
16,767 22 5,639 363,166
(221) (I) (249) (8,365) (47,7t8) (26,890)
120,069
44,475 41,188 235,500
5,230,341 21 634,252 18,318,878 3,309,438 8t7,732
2,366,696
225,998
84,878
726.050
96.570 943,930
3,900,000 300,000 42,936,000 85,936
1,078,525 271,060 174,556 21,758,829 26,804
2,565 t26,311 164,870
26,108,106 1,184,649
4,981,090 271,060 600,867 64,859,699 29,721,038 2,128,579
249,251
(271,039)
33,385
(46,540,821 )
(26,411,600)
(t,3IO,847)
146,829
146,829
124.444
13,777,471
51,696 271,978 6,938 45,926,780 23,052,400 2,060,416
(103,962) (13,953) (444,235) (501,981) (348,667)
(52,266) 27t,978 l39,814 45,753,818 36,327,890 1,711,749
t96,985 939 173.199 (787,003) 9,916,290 400,902
4,312 4 6)[\7.414 28,321,52t 17,485,329
$ 201,297 $ 943 $ 173,199 $ 6,050,411 $ 38,237,81 t $ 17,886,231
95
---'"-..........--...."..'^-- ._-,.
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" ",.,,-- ...... ......
.-----
.-
_.~---^.,~~~.-,--
13A
",.
,~
COLLIER COl'NTY, FLORIDA 1
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FLND BALANC~
NONMAJOR GOVERNMENTAL FliNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Capital Projects Funds
3A
II
\
,
,
,
96
13A \~
-
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement Capital Governmental
Districts Impact Fees Projects Tota] Funds
$ $ $ $ $ 93,347,805
514,3()l) 17,231,731
7,282A24 26,172,171
39,302 6 39310 19,905,622
3,149,342
4,085 37,509 3,968,330
(30,439) (17,852) (7,991) (206,938) (407,275)
2,703,249 709,152 34,950 7,537,672 7,537,672
105,228 392,641 2,941,370
405,705 19,004 720,932 3,194,477
3,117,817 695,385 151,197 16,317,949 177,041,245
828,740 3.241,026 33,437,058
27,802 1,932 339,993 23.649,002
1,150,744 1,342361 8,417,293
726.050 40,678,452
to,532,S22
2,063,033
328,346 1,420,574 19,978,570
85.936 43,080,410
26.804 21.816,163
164,870
2,654,328 13,104,269 331,868 130,232-473 148,287,476
2,982,674 13,132,071 2,313,284 137,4]5217 352, I 04,849
t35,I43
(12,436,686)
(2,162,087)
(121,097,268)
(175,063,604)
6.215,000
30,81S
9,699.450 57,266,556 57,391,000
21,518
197,677
1,656,514 40,458.880 110.337,687
(3,118,600) (5,027,717) (263,199) (18,902,307) (36,592,961)
(3,t 18,600) 4,671,733 1,393,315 78,823,129 137,600,736
(2,983,457) (7,764,953) (768,772) (42.274.119) (37,462,868)
22,802,213 11,374,808 5,875,543 155,770,215 286,363,714
$ 19,818,756 $ 3,609,855 $ 5,106,771 $ 113,496,076 $ 248,900,846
97
.._......,_.'''...,. __.___,_~____w....__ .a
~... .,,__.......~__ "u_-",.._.'w.__~__'_'",._,___"_-,-~,, _"......".,.........u._.__. ".
.__.~.w_.,__._"
('OLLlEH. COlJNTY, FLORIDA
COMBINING SCHEDlII,[' 01<' RF:VENllES, I<~XPENDITURES AND CHANGES IN FUND BAI,ANCES
HlmGET AND A('T1~AI~ (NON-GAAI')
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAl. HINDS
FOR THE FISCAL n:AR El\'DED SEPTEM81<~R 30, 2008
13A
~
<:~
Road Impact Di~tTH.;ts (Non-GAAP)
Road Construction (Non-G.'\AP)
98
Road Districts (Non-GAAP)
Unincorporated Area MSTD (Non-GAAP)
Budgt:t
Actual
Budget
Variance
Vanance
Actual
$ $ $ $ 41,673,300 $ 35,655,325 $ (6,017,975)
590,200 585,880 (4,320) 1,353,800 6,187,064 4,833,264
2,150,300 2,128,876 (21,424) 369,007 369,007
56,900 11,610 (45,290) 2,733,700 2,336,818 (396,882)
710,000 407,166 (302,834)
2,252 2,252 52,000 31,676 (20,324)
35,000 8,805 (26,195)
24,900 141,763 116,863 146,237 679,480 533,243
2,822,300 2,870,381 48,081 46,704,037 45,675,341 (1,028,696)
7,772,921 7,268,965 503,956
5,096,436 4,813,651 282,785
733,751 534,626 199,125
21,976,630 20,457,114 1,519,516 16,1l19,763 15,111,324 1,708,439
256,300 234,187 22,113
11,996,283 10,789,096 1,207,1117
2,699,431 2,435,429 264,002 4,299,967 2,857,972 1,441,995
24,676,061 22,892,543 1,783,518 46,975,421 41,609,821 5,365,600
(21,853,761)
(20,022,162)
(271,384)
4,336,904
4,065,520
1,!DI,599
20,000 101,62Y 81,629 159,440 93,066 (66,374)
19,085,000 19,085,000 3,236,107 3,365,600 129,493
(402,300) (402,300) (8,552,503) (7,959,734 ) 592,769
18,702,700 18,784,329 81,629 {5, I 56,9561 (4,501,068) 655,888
(3,151,061) (1,237)D3) 1,913,228 (5,428,340) (435,548) 4,992,792
3,256,461 3,256,461 14,140,966 14,140,966
$ 105,400 $ 2,018,628 $ 1,913,228 $ 8,712,626 $ 13,705,418 $ 4,992,792
$ (1,237,833)
(6,080)
$ (435,548)
(23,890)
(1,278)
$ (1,243,913)
$ (460,716)
99
-,...,.._---
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..~... ,..... ,.. ---~ . -.
- .-., ----._- - -"..... '--'.
13A ~
--,.",--,.
_"__"_"_~,_."R
---
COLLIER ('()(iNT\', FLORIDA
C(}MBINIJ\G SCHEDlJLE OF REVENl:ES, EXPENDITURES AND CHAl\GI<:S IN FUND BALANCES
BLDGET AND ACTUAL (NON~GAAP)
MAJOR CAPITAL PROJE('T AND NONMA,'OR GOVERNMENT AI. HINDS
FOR THE FISt'At YEAR I<:NDED SEPn:MBER 30, 2008
13A
1-
Community Development (Non-GA..\P)
WalerManagement
and Pollution Control (Non-GAAP)
Budget Actual Yanance Budget Adual Yanance
Revenues:
Taxes $ $ $ $ 2,318.100 S 2,231,043 S (87,057)
LIcenses and permits 14,170,UO(J '1.'124245 14,245,755) 800 670 (130)
Inu:rgovernmental 142;400 I 14='.40U! 159,OUU 215,183 56,183
Charges forscrvlces 3328,OUO n2L413 1106,587) 270,600 322,870 52,270
Fmes and forfcl\ures
IntcreSllllcome 1220(]{J 2UI 545 79,545 50,700 95,638 44,938
Impact fees
Speualassessments 2,508,300 2,419,S55 (SS,445!
Miscellaneous 33,UUO 215,91;0 182,980 54,492 54,492
rotal revenues 17,795.400 13YiJ,183 (4,23::'.2171 5,307,500 5,339,751 32,251
I<:xpenditures:
Current
Gem;mlgovernment fU5iJ,610 7)QO.734 72<J,876
Publ1c safety 'olAnO,500 S,635,531 764,969
I'hyslcalenVlHlIlment 64S,WO 57UJOI 7:>:,294 3,435,600 3,063,427 372,173
l'ransportatlon 1,693,668 1,632,S62 6tH06
L!conom1l.:envlronrnent
Human services
Culturc and recrcallOn
DeblservICC
Capllalollllay lll,OOO 1352 ~,648 431,345 175,188 256,157
Total expenditures 18,60'-),710 17,U27,918 1,581,792 5,560,613 4,871,477 689,136
Excess (dcflCIl) ofrevcnues
over (undcn cxpcndltures (814,310) (3,464,735) (2,650,425) (253,113) 468,274 721,387
Other financing sources (uses):
Bonds Issued
Loans Issued
Payment 10 refunding bond eS\:TOW
Sale of capital assets 16,518 16518
Insuram:e prol.:eeds 574 574 2,355 2,355
Transfers III 1,140,UOU 1,140,000 5U,OUO 54,428 4.428
Transfers OUI (2,171L5U{J) (2,U07,600) 162,900 (413,900) (315,351) 98,549
Total other finanCIng sources (uses) (1,0\3,')82) (X5U,508) 163,474 (363,90U) (258,568) 105)32
Nel Chll11ge J11 fund balance.... il R2:U'.l21 14 ~1 1 ",24Ji (2.4R6,'bl.1 (617,013) 2(N,7U6 lQ6.719
Fund balances at beginning of )'ear 8UK5,'138 8,085,43S 3,002)13 3,002,213
Fund halances (deficits) lit entl ofycar $ 6,257,646 $ 3,770,695 $ (2.486,451) $ 2,385,200 $ 3,211,919 $ 826,719
See accompanYlllg IIldcpcndent audriors report
Recunl.:rllallon
Net I.:hange 111 fund balanct:, budgelary baSI, , (4)15,243j $ 209,706
"
Change in falrvalueoflllveSlmcIlts 18)11) (5,162)
Advances budgeted as transfers
Un budgeted funds IR7
Dekrredrevenues
Net change m fund balance OAAPbasls $ (4,323,554) $ 204,731
IUU
Grants and Shared Revenues (Non-GAAP)
Improvement Districts (Non-GAAP)
Budget
Actual
Variance
Budget
Actua]
Variance
$
$
s
$ 4,152,200 $ 4,007,]45 $
(]45,055)
23,232,812
29,819
6,934,796
55691
(16,298,016)
25,872
38,080
158,420
38,O!W
(31,180)
189,600
52,902
52,902
230,300
759,691
529,391
113,511
120,186
6,675
201,700
37,910
(163,790)
23,376,142
7,163,575
(16,212,567)
4,773,800
5,001,246
227,446
2,696,713 835,054 1,861,659
696,775 360,]41 336,634
68,426 45222 23,204 355,600 200,466 155,134
.
1,524,072 1J64,901 359,171
15,812,090 3,690,395 12,121,695
4,214,245 1,943,396 2,270,849
256,047 211,724 44,323 1,237,600 1,126,895 110,705
799,358 163,534 635,824 15,466,243 2,198,719 13,267,524
24,543,654 7,249,466 17,294,188 18,583,515 4,690,981 13,892,534
(1,167,512)
(85,891)
1,081,621
(13,809,715)
310,265
14,119,980
5,980,100
6,098,986
118,886
331,620 284,741 (46,879) 634,300 681,680 47,380
(34,346) (34,346) (508,800) (284,158) 224,642
297,274 250,395 (46,879) 6,105,600 6,496,508 390,908
(870,238) 164,504 1,034,742 (7,704,1151 6,806,773 14,510,888
1,345,119 1,345,1]9 9,784,615 9,784,615
$ 474,881 $ 1,509,623 $ 1,034,742 $ 2,080,500 $ 16,591,388 $ 14,510,888
$ 164,504
(3,921)
924,721
I 1,085,304
$ 6,806,773
(29,765)
$ 6,777,008
101
-
-
. 'w..... _.. _ _.._ .._~ _ ,...... ',...___~....."_*',, ,_,+_,_
"'...""-'
..
13A
.'
,,~_..._.,_..."----
If
,
,
-~._-
COLLIER COl,'NTY, FLORIDA
COMBINING SCHEDUU~ OF REVENUES, EXPENDITlJRES AND CHAN(iES IN HJND BALANCES
HIJDGET AND ACTUAL (~ON.GAAP)
MAJOR eAPIT AL PROJECT AND NONMAJOR GOVERNM.~:\'TAL HiNDS
FOR THE FISCAL YEAR ENDED s.~pn:MBER 30, 2008
13A
II
Fire Control Districts (Non-GAAPi
Lighting Districts (Non-GAAP)
102
911 Enhancement Fee (Non-OMP)
Budget
Actual
Variance
$
2,000,500 $ 1,874,]96 $ (126,304)
237,500
212,921
(24,579)
]70,357
]70,357
2,238,000
2,095,188
2,095,]88
142,812
142,812
4,441,588
2,257,474
19,474
1,]92,733
902,455
1,]92,733
902,455
l,064,741
921,929
1,064,741
921,929
4,441,588
$
4,584,400 $ 5,506,329 $
921,929
. ""_-".",-~.'--"-'----'
$ 1,064,741
(8,654)
S 1,056,087
Public Records ModermzatlOn
Budget
$
1,875,000
225,000
2,100,000
5,540,600
5,826,900
Actual
Variance
$
$
990,305
(884,695)
289,395
64,395
1,279,700
(820,300)
2,443,493
3,097,107
1,981,816
3,845,084
11,367,500
(9,267,500)
4,425,309
6,942,191
(3,145,609)
6,121,891
(9,267,5001
9,267,500
(3,145,609)
6,l21,891
9,267,500
$
$ 6,121,891 $ 6,121,891
103
..,_...., ,
--~~,.. '" -,'..,- "
$ (3J45,609)
$ (3,145,609)
--.-.....-.-....-.........
" ~
13A q
0' __.~_____._".,_._,___
_.~
COLLIER COlJNTY, FLORJDA
CO:\1BI[\iING SCHEDlILE 0" REVENllES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAI'ITAL PROJECT AND NON MAJOR GOVERNMENTAL nl~DS
FOR Tin: FISCAL YEAR ENDEll SEPTEMBER 30, 2008
13A
"I'OtitiSI Development (Non-GAAP I
Slate Housing Initiative Partnership (Non-GAAP)
1114
il
800 MHZ IRep f'und (Non-GAAP)
State Court Administration (Non-GAAP)
Budget Actual Variance
Budget Actual
Variance
$ $ $
I I
$
781,200 731,598 (49,602)
108,585
1,882,900 ] ,379,585
]OS,585
(503,315)
] 12,100
199,4]7
87,3]7
9,069
9,069
893,300
93],015
1,882,900
1,497,239
(385,661)
37,715
1,180,300
1,136,950
1,495,500
1,686,500
1,223,666
1,606,384
271,834
80,116
43,350
8,674
(8,674)
233,900
205,397
28,503
1,180,300
1,]45,624
34,676
3,415,900
557,347
2,858,553
(287,000)
(214,609)
(],533,000)
171,686
(1,361,314)
72,391
]00,400
100,400
],980,573
1,248,198
(732,375)
100,400 100,400 1,980,573 1,248,]98 (732,375)
(186,600) (114,209) 72,391 447,573 (113,116) (560,689)
284,000 284,000 360,600 360,600
$ 97,400 $ 169,791 $ 72,391 $ 808,173 $ 247,484 $ (560,689)
I
$ (113,116)
(I,OS3)
(114,209)
(546)
(2,339)
I
$ (114,199)
(117,094)
105
__~________"_".",_,._'~z6,_,~_~~_._
".-.
131 OJ_
_~_,.._,_,d,..,"__
_~"M_"_"_"
COLLIER COtINTY, FLORIDA
COMBINIl':G SCHEDLIU: OF REVENtrES, EXPENDlTlIRES AND CHANGES IN FtlND BALANCES
BtlDGET AND ACTUAL (NON.GAAP)
:\1AJOR CAPITAL PROJECT AND NON MAJOR GOVERNMENT At HiNDS
FOR THE FISCAL YEAR I<:NDED SEPTEMBER 30, 2008
13A
t.,~~
S~
Confiscated f'ropcny (l\ion.UAAP J
GAC Land Sales, Roads and Canals (Non.GAAP)
lOG
13A
Utility Fees (Non~GAAP)
Conservation Collier (Non-GAAP)
Budget
Actual
Variance
Actual
Vanance
Budget
$
159,62] $
$ 13,147,200 $ ]2,652,196 $
(495,004)
120,000 $
39,623
67,000
6,282
516
516
(60.718)
150,000
1,272,609
1,122,609
401
45,670
45,670
401
187,000
(20,694)
\3,970,991
673,791
13,297,200
166,306
222,300
180,268
42,032
937,339
1]0,684
1,068,023
2,800
2,800
15,974,800
9,256,056
6,718,744
225,100
180,268
44,832
7,656,083
9,386,740
17,042,823
(38.100)
24,138
(3,745,623)
lO,060,53 1
6,314,908
(13,962)
2,644,900 2,798,010 153,1]0
(3,441,514) (3,307,881) ]33,633
(796,614) (509,871) 286,743
(38,100) (13,962) 24,138 (4,542,237) 5,805,037 10,347,274
538,900 538,900 23,816,223 23,816,223
$ 500,800 $ 524,938 $ 24,13S S 19,273,986 I 29,621,260 $ 10,347,274
I
S 5,805,037
(46,472)
(13,962)
(835)
$ 5,758,565
I
(14,797)
107
______.._'..'~~____"'____~,~~_..__,.,_'_'~.N,,,~".... ,,_,'",'""~,' .._. '_~._,;._..~__,~.~_,_....".>~'_._ ,
"
fI
,
COLLIER ('O\INTY, FLORIUA
COMBINING SCHEDllLE OF REVENt'ES, EXPENDlTlJRES AND CHANGES IN FUND BALANCES
BlJOGET AND ACTlJAL (NON~GAAP)
MAJOR CAPITAL PRO,mCT Al\D NONMAJOR GOV"~RNM[NTAL HINDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
q
Court Information Tel.:hnology Fee tNon-GAAP)
Court ServICes
Hudg~t Actu<ll Vanance Budget A(;tual Varianc~
Re\'enues:
T<lxes S $ I $ $ $
Licenses and permits
Intergovernmental
Charges for services Ij02,600 77LJ,717 (722.1Hl3) <),765,411 9,238,222 (527,189)
Fmcslmdlorfeitures
Interest incom~ 236,700 59,404 (\77,296)
Impact fees
Special assessments
Miscellaneous
Tota[ revcnues 1,5U2,6()(J 77Y,7[7 (722,8831 10,002,111 <),297,626 (704,485)
Expenditures:
CurrenI'
General government 731,893 333,855 391(tnl! 10,002,111 9,297,626 704,485
Public safety
PhySical environment
fransportallon
b:onomK environment
Human servIces
CultUfeandrel'reatlOn
Debt service
CapItal outlay 62,50(j 62,50U
I olal cxpellljllur~s 794,393 333,855 4uO,538 10,002,111 9,297,626 704,485
I::xccss (dcriut) of revenues
ov~r (under) expenditures 708,207 445,S62 \262,345)
Other financing sources (use.~):
Bonds Issued
Loans Issued
Paymenllo rdundlng bond escrow
Salcofeapltalassets
Insurance proceeds
Transfelslll
Transfers out (73S,700) (559,700) [79,OOU
l"otaJ Olher financ1l1g SOUlces (uses) (738,7iJO) (559,70U) 179,OUO
Nd chang~ m fund balances ,::10,493) IILUD8) S'14--
I)" )1
Fund balances at beginning of }'ear 2YY.70U 2'!9,7UO
Fund balances (d(,ficits) lit end of year \ 269,2U7 \ IllS,862 $ (1l3,345) $ $ $
See accompanymg Illdependent audItors report
R~c()m:lllat1on
N~l change in fund balance, budgetary basIS \ (113,8JS) $
Ch<lnge III hllr value of Investments i51\})
Advances budgeted as transfers
Unbudgcled funds
Deferred rcvt:nues
Net change ill fundbalancc, GAAPbaSlS $ (114,357) S
1118
University Extension (Non-GAAP)
Budget
$
4,200
Actual
$
472
7,607
Vanance
$
472
3,407
4,200
4,500
2,000
6,500
(2,300)
8,079
1,410
1,720
3,879
3,090
280
3,130
4,949
3,370
7,249
(2,300)
38,800
4,949
38,800
$
36,500 $
43,749 $
--..--------_.._,._.,-, -
$
4,949
(53)
$
4,896
".
7,249
7,249
Court Facilities Fee (Non-GAAP)
Budget
I
1,161,000
Actual
Vanance
$
$
969,046
48,660
(191,954)
48,660
1,161,000
560,000
1,518,382
1,017,706
(143,294)
558,511
1,489
850,740
667,642
2,078,382
(917,382j
(917,382,\
975,482
$
58,100 $
109
..-.-. " '..,.. -,
1,409,251
669,131
(391,545)
525,837
(391,545)
525,837
975,482
583,937 S
525,837
$ (391,545)
(1,177)
$ (392,722)
-,.....~~~,-,.- .---.-
. ... , ~.~,_._.._,_..._.'..,
13A
j~
---.
COLLllm COli]'l,'TY, (<'LORIDA
COMHI:'oiING SCHEDlJLE OF REVENL'ES, EXPENDITllRES AND CHANGES IN HIND BALANn:S
HlmGET AND ACTl!AL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL HJNDS
FOR THE FISCAL YEAR ENDEl> SEPTEMBER 30, 2008
13A
"
Other Special Revenue Funds (Non-GAAI')
Uas Tax ReVl:nue Bonds (Non-GAAP)
Budget Actual Vanam;e Budget Actual Variance
Revenues:
Taxes S S S $ $ $
Licenses and permlls ::'SUUU 1'-1.473 \'ij17J
Intergovernmental ::'O,IJOU (2U,OOO)
Charges for services ,142,4UO ':l24,SSS 1217,8151
,
Fllles and forfcltures l'i2<;lOU 310,236 1,42,6641
Inleresllllcome 26,60U 71;,197 ';l,5'n 25,000 166,085 141,OS5
1mpao::l fees
SpeO::lal assessmenls
MIscellaneous 1 ()',l,bOO 141,794 32,194
Tutal n;venues l,b76,500 1,474,285 JO'lJl- 25,000 166,OS5 141,085
--- :,,- -,- ~ i
lxpenditures:
Current
General government ](71)00 179 ~ "0 18,570
,),l
Puhllc safclY -t44700 331.1S1 111U49
Phvslcal environment
rranspor1atlon <;J3\900 771U35 157,565
ecollomlc environment
Human servICes :;61.901 119,637 242,264
Cu11l1re and recrealt<lIl 86_1J00 11.592 74 4(H~
Debt service 14,595,800 14,583,856 11,944
Captlaloutlay 590,000 9,454 5~O,546
Tuta1 expenditures 2,631,401 1,41<},499 1,201,<}02 14,595,800 14,583)156 11,944
Excess (defiCit! of revenues
over {undcr1 expenditures (<}54,Y011 44,786 99<},687 (14,570,800) (14,4]7,771) 153,029
Other financing sources (uses):
Bonds Issued
Luans Issued
Payment to refundmg bond escrow
Sale of capital assets
Insuranet: proceeds
Transfers In n,700 T'<n1 (25779) 13,'162,SOO 13,'162,800
".-
lranskrsout (434,7()()) 1412,1151 27,585
rotal other finanCing sources (us<:s) (J41,OOO) 1339,1<)41 I)W6 13,'162,8UU 13,<}62,800
Ndchllllgelll fund balances 11.2<)_~,l)()1 ,I 1294,4U81 I,UOI,4'-13 {(JU8,UOO) (454,9711 153,029
Fund balances at beginning ofycar \142,6(J1 3,1-\2,601 4,709,300 4,709,300
Fund balances (deficits) at end ofycar I 1,840.700 I 2,848,1':13 S I,O(Jl,44J $ 4,101,300 S 4,254,329 S 153,029
SeeaccompanYlflg Indep<:ndent auditors' leport,
ReconCl1lallUn
Net change 111 fund balance, budgetary ba,15 , 1294,4(8) I (454,971)
Chang<:III hmvlllueufmvestrnents r4l}96'1 (6,650)
Advances budg<:tedas lranskrs
Unbudgcled funds 2(15,830
Ueferred revenues
Net <:hang<: In flHlubalance, (;AAPbasls S (93,574) $ (461,621)
11U
Capita] Improvement Revenut: Bonds (Non-GAAP)
Budget
s
Actual
Varianct:
$
$
4,848
4,848
4,848
4,848
19,406,800
19,393,994
12,806
]9,406,800
(19,406,800)
19,364,400
19,393,994
12,806
(19,389,146)
17,654
19,364,400
19,364,400
19,364,400
(42,400)
42,400
(24.746)
]7,654
42,400
$
$
17,654 S
17,654
--,._-~--,-----~
$
(24,746)
(l ]9)
$
(24,865)
--- ,.. ...-...._--~_....,-,._----"...- ------........ '"'--~...~,
_.~_._._--
---
Pooled CommerCIal
Paper Program (Non~GAAP)
Budget
$
500
Actual
$
$
13A ~
Variance
3,633
32,994
500
16,428,900
16,428,900
(16,428,400)
16,428,900
4,133
32,994
37,127
12,192,284
36,627
4,236,616
12,192,284
(J2,155,157)
124,444
12,135,973
4,236,616
4,273,243
124,444
(4,292,927)
16,428,900
500
69,900
s
70,400 $
]04,760
111
12,260,417
105,260
69,900
175,160 $
I
]05260
(109)
$
105,151
(4,168,4!i3)
104,760
~~"'-'''---'-''
.. .---"~_.__.~
COI.LlER COUNTY, t<")'ORIDA
CO:\1BINING SCIlEDLU: 01" REVENlJES, EXPENDITURES AND CHANGES IN FlIND BALANCES
BUDGET AND ACTUAl. (NON-GAAP)
J\IA.JOR CAPITAL PROJECT ANO NON MAJOR GOVt:R.""IMENTAL Fl.lNDS
FOR TilE f'ISCAt YEAR t:NDlm SEPTEMBER 30, 2008
13A
'4
Caribbean Gardens Loan (Non-GAAf')
SWmlwatn Improvement
Assessment Bond (Non-OMP)
Budget Aclual Vanance Budget Actual Vananct:
Revenues:
Taxes S I,~A 18.7UO , 11,956,876 I 14bU,24j $ $ $
Licenses and permits
lntergovernmt:ntal
Chargt:s for st:rvlct:~
Fines and forfeitures
Interestlllcome 20,{)(){) 141,202 121,202 5.0(JO 24,470 19,470
Impact fees
Speelalasscssments 9lJ.600 12U,06lJ 20,469
Miscellaneous 11.UUU 11.481 481
Total revenues 12,449,700 12,10'1,554 1340.141) 104,600 144,539 3Y,939
Ell-pendilurcs:
Current
Generalgovernmelll
PubliC safety
Physlcalenvlronment
'l'ransportatlol1
C'cOI10mlce::nvlronment
Humanservlct:s
Culture and recreallOn
Debtsenlce 12J'44,500 12,632,llJU 12,310 209,UO(J 204,358 4,642
Capllaloutlay
'jotal cxpcmllturt:s J2,644,501l 12.632.190 12,310 209,000 204,358 4,642
Exce~s(ddiclt) ufrevenucs
ovo;:r(undt:ri cxpendlture::s (1l)4,80U) '~21 6' II (J27831) (104,400) (59,819) 44,581
In _,-'.
Other finllncingsources (uses):
l30ndslssued
Loans Issued
Payment to refunding bond escro\','
Sale of capItal assets
Insurancc proceeds
rransferslf\ 131,838 131,838 1,157 1,157
rr:m~fers oul (394,JOOl ')') 166) 72.134 (7,500) (4,154) 3,346
\,J__,
Total olher financmg sources {usesj 1394,JlJ()) IIl)O)2S1 203.'172 (7,500) (2,9Y7) 4,503
Net change m I'tmdbalances 1'i8c.;.IUIJj 1712,95',1) \121 ~'i91 (111,90()) (62,816) 49,()84
Fund balances at beginning of year 1)11,(J()() 1,211,U(jO 465.501J 465,500
Fund balances (deficits) at end of y'ear I 621.'10iJ S 4'1S,041 $ 1123,859) S 353,601J $ 402,6S4 $ 49,084
See:: accompanYing Illdependent auditms' rcport
Reconclllallon
Netchangcllllundbalal1l;e,blJiJgetarybasls 'ji (712,'15'1) $ {62,816)
l'hangcll1falJ'valueofmvestments (153) (663)
Advances budgeted as transfers
Unhudgdedfunds
Deferred rcvenues
Net change III fund baJanct:, GA.-\I'basls S (,7lJ,312) $ (63,479)
112
13A i
LimIted General Obligation Bonds,
Conservation Collier, Series 2005 (Non-GAAP)
Community Redevelopment
Line of Credit (Non-GAAP)
Budget
Actual
Vanance
Budget
Actual
Variance
I
5,413,500 $ 5,213,795 $
(199,705)
$
$
$
500
16,767
16,267
22
22
5,4]4,000
5,230,562
(183,438)
22
22
4,983,100
4,981,090
2,010
500,000
271,060
228,940
4,983,100
4,981,090
2,010
500,000
271,060
228,940
430,900
249,472
(181,428)
(500,000)
(271,038)
228,962
51,696 51,696 500,000 271,978 (228,022)
(162,400) (103,962) 58,438
(162,400) (52,266) 110,134 500,000 271,978 (228,O22)
268,500 197,206 (71)94) 940 ,"0
2,200 2,200
$ 270,700 $ 199,406 S (71,2Y4) $ $ 940 $ 940
$
197,206
(22])
$
940
(Ii
$
196,985
$
939
113
,-_. _...-_.._~._<,_..,-~~_."".~,..__._..__.,<.'
----,.-.- ". " ..;- ._"-~....~--,_._,="-"...~"
-_.._--
COLLIER COtiNTY, FLORID,\
COMBINING SCHEDIILE 01<' RI<2VENUES, EXPENDITURES AND CHANGES IN }.'IJND BALANCES
BIID<:an AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NO~MAJOR GOVERNMENTAL FUNDS
FOR THE J<'ISCAL n:AR ENDED Sl<2PTEMBER 30, 2008
13A
Fore~l La!..:"" Llmlld General
ObligatIOn Bonds (Non-OAAP)
Coullly-Wide Capitallmprovements (Non-OMP)
114
It
Parks Improvements (Non-GAAP)
County-Wide Library Impact Fees (Non-GAAP)
Budget
Actual
Variance
Budget
Actual
Variance
$
$
$
$
$
$
250,000
412,449
458,099
151,023
208,099
(261,426)
1,000,000
600,000
(400,000)
2,100,000
633
500,430
633
(1,599,570)
235,500
235,500
6,239
6,239
897,949
844,622
(53,327)
3,100,000
1,107,302
(1,992,698)
3,348,884
943,930
2,404,954
92,749
51,728
41,021
16,648,993
1,184,649
15,464,344
16,835,595
12,346,926
4,488,669
19,997,877
2,128,579
17,869,298
16,928,344
12,398,654
4,529,690
(19,099,928)
(1,283,957)
17,815,971
(13,828,344)
(11,291,352)
2,536,992
10,652,700
10,650,596
(2,104)
2,048,414 2,060,416 12,002 3,092,700 3,092,700
(352,000) (348,667) 3,333 (1,985,700) (1,513,681) 472,019
1,696,414 1,711,749 15,335 11,759,700 12,229,615 469,915
(17,403,514) 427,792 17,831,306 (2,068,644) 938,263 3,006,907
17,463,864 17,463,864 2,513,624 7513624
-, ,
$ 60,350 $ 17,891,656 $ 17,831,306 $ 444,980 S 3,45],887 $ 3,006,907
$
427,7lJ2
(26,890)
$ 938,263
(6,547)
(3,092,700)
S (2,160,984)
$
400,902
115
__ _.....___.__"._..___.___.__....__M__.~.."., ,,__... ,__,_ -",,"
--:"'-'''''
.....-
.-.,.--."
13A I
..._..~-------'---' ,_..~.._.- -,..".--" --."-
COI_Ll"~H. COl1NTY, FLORIDA
COMBINING SCHEDULE OF REVENI~":S, EXPENDlTl~RES AND CHANGES IN FUND BALANCES
BCDGET AND ACTUAL (NON-GAAP)
\1AJOR CAI))'J AL PROJECT AND NON MAJOR GOVERNMENTAL HINDS
FOR TH"~ l<'ISCAL YEAR ":Nm~1) SEPTEMBER JH, 20U8
13A
C'U!fel'(JUnal Facilltlt:s
Jmpac( Fees (Non-GAAP)
l.::mergel1l'y MedIcal StTVlces
Jmpact Fees (Non-GAAP)
116
"
13A ~,'
Water Management (Non-GAAP)
Government
Facilities Impact Fees (Non-GAAP)
Budget
Actual
Vanancc
Budget
Actual
Variance
63,448
45,590
17,858
325,000
]06,739
218,261
27,668,331
21,041,241
6,627,090
73,622,060
51,606,]72
22,015,888
27,993,331
21,147,980
6,845,351
73,685,508
51,65],762
22,033,746
(19,464,231)
(17,554,174)
1,910,057
(70,085,5081
(49,589,986)
20,495,522
23,6\5,300
23,139,039
(476,26])
12,395,400 12,398,250 2,850 3,366,500 3,366,500
(1,170,400) (1,164,887) 5,513 (6,262,700) (4,170,]06) 2,092,594
11,225,000 11,233,363 8,363 20,7[1,1,100 22,335,433 1,616,333
(8,239,231 ) (6,320)11 I) 1,91f\,420 (49,366,4081 (27,254,553) 22,111,855
14,975,231 14,975)3\ 52,195,508 52,195,508
$ 6,736,000 S 8,654,420 $ 1,918,420 $ 2,829,100 I 24,940,955 $ 22,111,855
$ (6,320,8]1) $ (27,254,553)
(13,103) (50,790)
(2,075,200)
(20)
$ (6,333,934) $ (29,380,543)
117
------_._---_._,_._--~-_._,----~~."-..__.,,._-~..,-_. .. --_..._---"-
COLLIER COUNTY, FI.ORIDA
COMBINING SCHEDULE OF REVENlJES, [XPF.:NDITURES A~D CHANGES IN FliND BALANC[S
BlIDGET AND ACTVAL (NON~GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOn:RNMENTAL HJNDS
FOR nn: FISCAL YEAR ENDED SlwrEMBER 30, 2008
13A
Parks Impact Dlslncts INon-GAAP)
Law Enforcement Impact Fees (Non-CAAP)
liS
fI
13A
Other Capital Projects (Non-GAAP)
Budget
Actual
Vanance
$
$
$
116,900
62,800
(116,900)
(62,794)
6
18,400 34,950 16,550
106,100 105,228 (872)
19,004 19,004
304,200 159,188 (145,012)
834,430
6,200
1,934,420
828,740
1,932
1,150,744
5,690
4,268
783,676
734,638
734,638
2,355,292
331,868
2,023,424
5,864,980
2,313,284
3,551,696
(5,560,nO)
(2,154,096)
3,406,684
1,855,500 ],856,514 1,014
(265,500) (263,199) 2,30\
1,590,000 1,593,315 3,315
(3,970,780) (560,781) 3,409,999
6,444,315 6,444,3]5
$ 2,473,535 $ 5,883,534 $ 3,409,999
$ (560,781)
(7,991)
(200,000)
$ (768,772)
119
.---. --.--.. .._.^-_.._~----~>-._-",._.'-'-' .--'-,
II
"
13A 'I
THIS PAGE INTENTIONALLY LEFT BLANK
Nonmajor Enterprise Funds
SOLID WASTE DISPOSAL - To account for the provision of solid waste disposal services to users
throughout the County,
EMERGENCY MEDICAL SERVICES - To account for the provision of emergency ambulance and
paramedical services to users throughout the County,
GOODLAND WATER - To account for the provision of potable water services to residents of
Goodland,
AIRPORT AUTHORITY - To account for the provision of landing facilities and the sale of fuel at the
airports,
COLLIER AREA TRANSIT - To account for the provision of public transportation throughout the
County,
'~,o__'_,~m~._,__~<,~'___~'''''_~''~''''"' ,,' ._~. ''''~'~'",,~,~,'"~"''''''''_______~''''__ - "'""~~"_"" M
- - -,,-,--,_..._-"~,--_.., ----
COLLIER COlJNTY, FLORIDA
COMBINING STATEMI<:NT OF NET ASSETS
~ONMAJOR ENTERPRISE FLNDS
SEPTEMBER 30, 2008
13A
II
Total
Emergency Collier Nonmajor
Solid \\'aste Iv1cdH:al Goodland r\irporl Area Enterprise
Disposal Services \Vater Authoritv Transit Funds
ASSETS ,
Cunent assets:
Cash, cash eqUIvalents and Investments $ ]8,19J,244 $ 5.087,33U $ 390.063 $ 2,874,545 $ 254,056 $ 26,797,238
,
Receivables:
Trade, net 2.14.'\949 3,941,096 3Y.573 ]7.237 2,484 6,146,339
Interest 131,31)8 ],574 2.1)83 135,955
UnbilJed revenue 270,585 9.275 279,860
Due Irom other funds 4H,lJ% ]1)7 ],724 20,293 71,210
Due from other governmellls 24,1)35 4.206 102,354 791,231) 922,734
Inventory 13,203 156,87] ]70,074
Prepaid costs 50,192 50,192
Restricted assets
Cash, cash equivalents and investments 381),190 131.517 226,202 746,909
Totall:urrent assets 20,93],712 9,499,900 441,894 3,378,933 1,068,072 35,320,51 ]
NOll('urrent assets:
Capital assr.:ls
Land and nondepreclab]e capital assets 9.234,580 3,222,923 5,873,4]4 18,330,917
Depreciable capital assets, net 7749,601 3,711,923 %2,264 10,903,]72 7,920,452 31,247,412
Total noncurrent assets ]6,\)84,181 3,711,n3 962,264 14,126,095 13,793,866 49,578,329
Total aSS~b 37~15,893 ]3,21 1,823 1,404,158 17,505,028 14,86],938 84,8Y8,840
LIABILITIES
Current liabilities:
Accounts payable 1.957,225 ]97,940 21.795 288,913 922,400 3,388,273
Wages payable 67,33Y 705,643 36,513 3,09] 812,586
Retamage pa)i:lbk 42242 42,242
Due to other lunds 73 73
Due to other governments 136 22,328 1,890 24.354
Due to Individuals 422,05] 422,051
Compensated ahsences 94.254 591,442 38,575 1,0]4 725,285
Capital kasc obligatiom 109.799 16,346 ]26.]45
Lmbilities payable from restricted assets:
Retainage payabk 61.974 6],974
Refundable deposits 291,195 14,920 306,] 15
Unearned revenue 97 995 131,517 149,308 378,820
,
1'ot<:ll current liabilities 2,550,386 2,]58,465 44,]23 608,439 926,505 6,287,918
Noncurrent liabilities:
Compensated absences 23,564 ]47,86] 9.644 253 18].322
Capital lease obligations .l55,954 35,786 491,740
Landfill post-closun: habihty 1,815.160 ],815,160
Tota] noncurrent 1mbllities ],838,724 603,8]5 45,430 253 2,488,222
Total habihtles 4,JXY,110 2,762,280 44,123 653,869 926,758 8,776,]40
:'\![T ASSETS
Invested III capital assets, net of related deb! 16.484,IXI 3.146.170 962,264 14,\J7J,963 13.743,866 48,960,444
Unrestrir:ted 16,542,602 7,303,J73 147,77] 2,777,196 14Ul4 27,]62,256
I"otalnet assets $ 33,526,783 $lO,449,54J $ 1,360,035 $]6,85L159 $ 1J,435,180 $ 76,]22,700
See accompanymg llldcpcndent auditors' rt:port
122
COLLIER COUNTY, FLORIDA 1 3 A 'I
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Total
Emergency Collier Nonma]or
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority TransIt Funds
Operating revenues:
Charges for services $ 35,113,94H $16,050,218 $ 337,n4 $ 3,529,561 $ 1,068,170 $ 56,099,681
Miscellaneous 1,380,880 117,181 853 16,985 5,694 1,521,593
Total operating revenues 36,494,828 16,167,399 338,637 3,546,546 1,073,864 57,621,274
Operating expenses:
Personal services 1,665,951 19,159,173 1,068,920 72,664 21,966.708
Operating 27,915,603 10,691,950 433,615 3,007,037 8,276,950 50,325,155
Depreciation 503,961 711,073 56,329 831,926 1,027,588 3,130,877
TOlal operating expenses 30,085,515 30,562,196 489,944 4,907,883 9,377,202 75,422,740
Operating income (loss) 6,409,313 (14,394,797) (151,307) (1,361,337) (8,303,338) (17,801,466)
Non~operating revenues (expenses):
Operating grants and contributions 74,234 171.984 4,025,597 4,271,815
Interest income 314,016 32,617 20,578 367,211
Insurance reimbursement 240 4,836 250 29,185 34,511
Change 10 fair value of investments (27,482) (7,852) (580) (4,786) (390) (41,090)
Interc:st expense (6,215) (3,898) (10,113)
Gain (loss) on disposal of I.:apital assets (10,705) 966 (215,197) (13,074) (238,010)
Total non-operating revenues (expenses) 350,303 196,336 19,998 (223,631) 4,041,318 4,384,324
Income (loss) before
contributions and transfers 6,759,616 (14,198,461) (131,309) (1,584,968) (4,262,020) (13,417,142)
Capital grants and contributions 18,030 1559,991 10,536,612 12,114,633
Transfers in 48,984 18,087,000 1,573,333 4,940,900 24,650,217
Transfers out (702,367) (6,000) (1,338,340) (2,046,707)
Total transfers and contributions (653,383) 18,099.030 3,133,324 14,139,172 34,718,143
Changes in net assets 6,106,233 3,900569 (131,309) 1,548,356 9,877,152 21,301,001
Net assets - beginning 27,420,550 6,548,974 1,491,344 15,302,803 4,058,028 54,821,699
Net assets - ending $ 33,526,783 $ 10,449,543 $1,360,035 $16,851,159 $13,935,180 $ 76,122,700
See accompanying independent auditors' report.
123
_._~-_.,_..,~....--...._-_.'-"'-'''' ,..'~..~"..--_.~'-.
,_.-",
,.._"
, ", '--~'-"'._'" --.'- ,~
---
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NON MAJOR ENTERPRISE HINDS
FOR THE FISCAL VEAR ENDED SEPTEMBER 30, 2008
13A
,AI
~'~
Total
Emergency,' Collier NonmaJOf
SolldWa.:;le Medical Cioodland Airport Area Enterpn.:;e
DIsposal ServIces Water Authority Transit Funds
Cash flows from operating activities:
Cash received ti)f services S; 34A23J)28 $ ':J,317,521 $ 328JlO4 $ 3,560,144 $ 1,232,769 $ 48,862,066
Cash received from refundable deposits 524,714 524,714
Cash payments for goods and serv](:es (2~U)9j,255) IUO':J.0(5) (411,030) (2,961,587) (8,392,853) (43,369,790)
Cash payments to employees ( L6LUOI) ( 19.018.2,,5) (1,059,979) (72,843) (2],764,418)
Cash payments on refundable deposIts (624,104) (7,722) (631,826)
Net cash provIded by (used for) operatlng
actIvities 4,615,682 (13209,S39) (1\3,026) (469,144) (7,232,927) (16,379,254)
Cash flows from non-capital financing activities:
Cash receIved from operating grants 4'r2':J9 157,253 4,936,433 5,142,985
Cash transters from other funds 3,iLP.445 II((J96920 1,573,333 4,941,534 28,449,232
' ,
Cash translCrs to uther funds (4,4S9,207l (6,UOU) (1,338,974) (5,834,181)
Net cash proVided by (used lor) non.
capHal financmgactlvltlCs (hU>16J) 1 S,2.J.s.l73 1,573,333 8,53S,993 27,75S,036
Cash flows from capital and related
financing activities:
Receipts flam IIlsurance rCllnbursements 240 .J..SJ6 250 29,185 34.511
Proceeds Irnm disposal of capital assets "7 -10 15.1'17 6.800 29,517
,'.)-
Proceeds from capItal grants 2,184,153 2,184,153
Payments for capital aCl.julsltians (9,126,367) (S59,452) ( 1.907.027) (1.508,248) (I3A01,094)
PrinCipal payments on leases (26.72S) (15,670) (42,398)
Interest and fiscal agent tees paid (6,215) (3,898) (10,113)
Net cash pruvlded by (used for) capItal
and related financmg activities (9.118.607) (~72.362) 257,808 (1,472,263) (11,205,424)
Cash flows from investing activities:
!nterestan lllvestments 2()7.7(,7 34,162 23093 325,022
Change in Lm v<\lue of IIlvestments (27,482) (7.S52) (580) (4,786) (390) (41,090)
Net \;ush proviJed by (used lor) Illvestlllg actiVIties 240,2SS 2{l,3IU 22,513 (4,786) (390) 2S3,932
Net lI1crcase (decrease) 111 cash, cash eqUivalents and I!1vestmen(s (4)\65,103) 4,192.282 (60,S13) 1.357,211 ( 166,587) 457,290
Cash, cash equivalcnts and investments, Ortoba I, ZOll7 '"), 4.J.- -'7 1,1126.565 450,576 1,743,536 42U,643 27,01\6,857
_J. ),:U
Cash, cash cquivalents and investments, September 30, 200S $ 18,580.434 $ 5,218.8.\7 $ 390,ll63 $ 3,100,747 $ 254,056 $ 27,544,147
Current cash, cash eqUivalents and Illvestments $ ISY:J1244 $ 5iJS7..J3ll $ 190JJ()) I 2,874.545 $ 25.\Jl56 26)97,238
Current cash, cilsh eqUivalents and lllvcstments - resLrlcted 3X9,llJ(j 131.517 226,202 746,909
Cash, cash eqlllvillents and lllvestments, September 30. 2U08 $ IS.580A34 $ 5,118,847 $ 39UJJ63 $ 3.100,747 $ 254,056 $ 27,544,147
See accompanymg lIldependcnt auditors' repan (Contlllucd)
12-t
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
NON MAJOR ENTERPRISE FUNDS
RECONCILIATION OF' OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
I
Total
Emergency Colller Nonmajor
SolldWaste MedIcal Goodland Airport Area Enterprise
DIsposal Services Water Authority Transit Funds
Operating income (loss) $ 6,409) 1 3 $(14,394,797) $ (151,307) $ (1,361,337) $ (8,303,338) $ (17,801,466)
Adjustments to reconcile operating il1come (loss) to
net .:ash provided by (used for) operatll1g activities'
DepreciatIon expense 503,961 711,073 56,329 lS31,926 1,027,588 3,130,877
Net changes in assets and !labilities
Trade receivable (921,0961 (JO,740) (11,325) 19,831 6,780 (936,550)
Due from other funds 6 (197) 596 (7,485) (7,080)
Due from other governments 566 566
Prepaid costs (50,192) (50,192)
lnventol),' 57,350 (55,542) 1,808
Accounts payable (139,788) (49,683) 1t),217 100,948 44,127 (25,179)
Wages payable 15,721 92,566 4)03 631 113,221
Due to other funds (40,161) 57 692 (420) (39,832)
Due to other governments 136 3,368 44 3,548
Due to indIviduals 405,846 405,846
Compensated absences 36,929 48,312 4,042 (810) 88,473
Retundable depOSIts (99,390) (7,722) (107,112)
Unearned revenue (6,233) (6,233)
Landfill post-closure llablllty (1,149,949) (1,149,949)
Total adjustments (1,793,631) 1,184,958 68,281 892,193 1,070,411 1,422,212
Nel cash proVided by (used for) operatmg activitlcs $ 4,615,682 $(13,209,839) $ (83,026) $ (469,144) $ (7,232,927) $ (16,379,254)
Non-cash investing, capital and financing activities:
The nonmaJor cnterprise funds experienced a non-cash Investmg loss due to a change in the lair valuc Or non-cash
and cash eqUIvalents as follows'
So!ld Waste Disposal
Emergency MedICal Services
Goodland Water
Airport Authonty
Colher Arca Transit
Total
$ (27,482)
(7,852)
(580)
(4,786)
(390)
$ (41,090)
There were non-cash contributions of$ 10,096,889 in the Coliter Area Transit fund, as assets with a hIstorical cost of
$]0,163,338 and accumulated depreciation of$66,449 were transferred in from other funds, In addition, assets
assets \vith a fair value 01'$488,580 were purchased by the County for $48,857
See accompanying mdependent auditors' report
125
,-~--~, ".. -,,-,-
-"-_.._~_._'--,
13A 'I
THIS PAGE INTENTIONALLY LEFT BLANK
13A 111
Internal Service Funds
SELF-INSURANCE - To account for the self-insurance costs of providing coverage for property,
general and vehicle liability, To account for the provisions of health benefits to Board and participating
constitutional officer employees and their dependents, To account for payment of workers'
compensation claims, in lieu of insurance,
SHERIFF'S SELF-INSURANCE - To account for the provisions of health benefits to Sheriff
employees and their dependents, To account for payment of workers' compensation claims, in lieu of
,
Insurance.
FLEET MANAGEMENT - To account for fuel, oil, lubricants, repairs and maintenance of County
vehicles and the use of certain County owned vehicles by County employees,
,.,--.,.....--....,
'" .._".~~.. ----,-'".._.,--~_.,,~,--
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2008
13A
-
Sheriffs
Seltc SeliC Fleet
Insurance Insurance Management Total
ASSETS
Current assets:
Cash, cash equivalents and investments $ 33,211 ,256 $12,199,418 $ 761,440 $46,172,114
Receivables:
Trade, net 384,170 259,786 643,956
Due from other funds 100,000 18,495 118,495
Due from other governments 83,107 83,107
Deposits 512,946 512,946
Inventory 3,655 416,472 420,127
Total current assets 34,112,0"7 12,559,204 1,279,514 47,950,745
Noncurrent assets:
Capital assets:
Depreciable capital assets, net 279,355 14,109,169 14,388,524
Total noncurrent assets 279,355 14,109,169 14,388,524
Total assets 34,391,382 12,559,204 15,388,683 62,339,269
LIABILITIES
Current liabilities:
Accounts payable 333,258 497,917 831,175
Wages payable 39,860 75,277 115,137
Due to other funds 255 255
Due to other governments 64 64
Self-insurance claims payable 3,458,207 2,094,000 5,552,207
Compensated absences 65,185 97,547 162,732
Tota] current liabilities 3,896,765 2,094,000 670,805 6,661,570
Noncurrent liabilities:
Self-insurance claims payable 4,733,793 4,733,793
Compensated absences 16296 24,387 40,683
Net pension obligation 356, III 549,868 905,979
Total noncurrent liabilities 5,106,200 549,868 24,387 5,680,455
Total liabilities 9,002,965 2,64 3,868 695,192 12,342,025
NET ASSETS
Inveskd in capital assets, net of related debt 279,355 14, I 09, 169 14,388,574
Unrestricted 75,109,062 9,915,336 584,322 35,608,720
Total net assets $25,388,417 $ 9,915,336 $ 14,693,491 $49,997,244
See accompanying independent auditors' report.
128
13A
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Sheriffs
Se1f- Self- Fleet
Insurance Insurance Management Total
Operating revenues:
Charges for services $ 41,307,131 $ 21,090,320 $ 8,995,108 $ 71,392,559
Insurance proceeds 4,009,526 1,514 4,0 II ,040
Miscellaneous 632,088 54,982 687,070
Total operating revenues 45,948,745 21,090,320 9,051,604 76,090,669
Operating expenses:
Personal services 1,072,494 1,981,091 3,053,585
Operating 38,370,716 16,548,096 6,826,543 61,745,355
Depreciation 17,817 349,448 367,265
Total operating expenses 39,461,027 16,548,096 9,157,082 65,166,205
Operating income (loss) 6,487,718 4,542,224 (105,478) 10,924,464
Non-operating revenues (expenses):
Interest income 3,145 198,405 201,550
Change in fair value of investments (50,729) (1,296) (52,025)
Gain (loss) on disposal of capital assets (30,635) 9,361 (21,274)
T atal non-operating revenues (expenses) (78,219) 198,405 8,065 128,251
Income (loss) before contributions 6,409,499 4,740,629 (97,413) 11,052,715
Capital contributions 13,690,992 13,690,992
Change in net assets 6,409,499 4,740,629 13,593,579 24,743,707
Net assets - beginning 18,978,918 5,174,707 1,099,912 25,253,537
Net assets - ending $ 25,388,417 $ 9,915,336 $ 14,693,491 $ 49,997,244
See accompanying independent auditors' report.
129
~-~,--,._.._. ~ .__.,,-,'-- '.,- '
'~-".,
,-----
~-="--- . -,,-~_.....'~" "'.--.." ,
~
~:' l
-
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13A I
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Sheriff's
Self- Self- Fleet
Insurance Insurance Management Total
Cash flows from operating activities;
Cash received from other funds for services $ 35,304,137 $21,000,000 $ 8,542,232 $ 64,846,369
Cash received Irom employees for services 6.636,665 6,636,665
Cash received from insurance 3,655,686 ],5]4 3,657,200
Cash received from other governments for services 464,435 464,435
Cash received from retirees for services 779.625 490,320 1,269,945
Cash payments on behalf ofrctin:es {809,079j (300,671 ) (],]09,750)
Cash payments for goods and services (39,822,611 ) ( 15,491,753) (7,075,974) (62,390,338)
Cash payments to employees (1,053,940) ( 1,949,380) (3,003,320)
Net cash provided by (used for)
operating ul:tivities 4,690.483 5,697,896 (17,173) 10,371,206
Cash flows from capital and related
financing activities:
Proceeds lrom disposal of capital assets 14,564 ]4,564
Payments Jor capital acquisitions (64,342) (255,308) (3]9,650)
Net cash Llsed for capital and related
financing activities (64,342) (240,744) (305,086)
Cash flows from investing activities:
Interest on investments 3,]45 218,295 221,440
Change in fair value of investments (50,729) (1,296) (52,025)
Net cash provided by (used for) investing activities (47,584) 2]8,295 (1,296) 169,4]5
Net increase (decrease) in cash, cash equivalents
and investments 4,578.557 5,916,191 (259,213) ]0,235,535
Cash, cash equivalents and investments, October I, 2007 28,632,699 6,283,227 1,020,653 35,936,579
Cash, cash equivalents and investments, September 30,2008 $ 33,211,256 $12,199,4]8 $ 761,440 $ 46,172,114
See accompanying independent auditors' report. (Continued)
l.\1I
COLLIER COUNTY, FLORIDA 13A ~~
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (liSED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR F:NDED SEPTEMBER 30, 2008
Sheriff's
Self- Sell' Fleet
Insurance Insurance Management Total
Operating income (loss) $ 6,487,718 $ 4,542,224 $ (105,478) $ 10,924,464
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation expense \7,817 349,448 367,265
Net changes in assets and liabilities:
Trade receivable (288,086) (33,196) (32\ ,282)
Due from other funds 1,583 400,000 (9,635) 391,948
Due from other governments (33,789) (33,789)
Deposits (95,208) (95,208)
Inventory (1,295) (44,282) (45,577)
Accounts payable (267,290) (205,212) (472,502)
Wages payable 4,003 16,780 20,783
Due to other funds (15,421) (15,421)
Due to other governments 64 64
Self-insurance claims payable (1,524,000) 239,000 (1,285,000)
Compensated absences 14,55\ 14,931 29,482
Net pension obligation 356,111 549,868 905,979
Total adjustments (1,797,235) 1,155,672 88,305 (553,258)
Net cash provided by (used for)
operating activities $ 4,690,483 $ 5,697,896 $ (17,173) $ \0,371,206
Non-cash investing, capital and financing activities:
The internal service funds experienced a non~cash investing loss due to a change in the fair value of non-cash
and cash equivalents as follows:
Self. Insurance
Fleet Management
Total
$
(50,729)
(1,296)
(52,025)
$
There were non.cash contributions 01'$13,690,992 in the Fleet Management fund, as assets with a historical cost
of $13,792,071 and accumulated depreciation of $1 0 I ,079 were transferred in from olher funds.
See accompanying independent auditors' report.
131
..,,-_......'._~
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, ".",. ,-' .... ..._.<---_.~....._~"'-
,---,-~_-.-.---_.
_......._.~-----~-~
13A ~
THIS PAGE INTENTIONALLY LEFT BLANK
13 A 'II
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,
.,.. ___~____._u".~..'~___'_"",__ ,,_,,__""_,,_~~_,._._~__,_,______'_' .. , ______,______".. -,..~-
COLLIER COl'NTV, FLORIDA
COMBINING STATEMENT OF FIDlCIARV ASSETS AND LIABILITIES
AGENCV FUNDS
SEPTEMBER 30, 2008
13A
ASSETS
Ckrk
of Courts
Agency Fund
Pine Ridge
and Naples
Production Park
-Agency Fund
Tax
Collector
Agency Fund
Shenff
Agency Fund
Deposits
Agency Fund
Total
Cash, cash equivalents and Investments $ ]7,848, ]66 $ 426,505 $ 4,927,906 $ 3,569,302 $ 5,906,927 $ 32,678,806
Receivables:
Interest 31.275 3 ],275
Other ],885 5,777 34,793 42,455
Total assets $ ]7,848,]66 $ 428,390 $ 4,933,683 $ 3,569,302 $ 5,972,995 $ 32,752,536
LIABILITIES
Due to other governments $ ],435,74] $ 70,596 $ 3,469,368 $ $ $ 4,975,705
Due to individuals 357,794 1,464,3 ]5 ],822,109
Refundable deposits ]6,4]2,425 3,569,302 ]9,98],727
Due to special assessment holders 5,972,995 5,972,995
TotalliabIlitlcs $ ]7,848, ]66 $ 428,390 $ 4,933,683 $ 3,569,302 $ 5,972,995 $ 32,752,536
See accompanying independent auditors' report
1.\4
II
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
~.\'
"
,
Balance Balance
October 1 Additions Deductions ~ptember 30
Clerk of Courts Ae:encv Fund
Assets:
Cash, cash equivalents and investments $17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Total assets $17,282,056 $ 254,330,212 $ 253,764, I 02 $ 17,848,166
Liabilities:
Due to other governments $ 1,004,350 $ 10,964,655 $ 10,533,264 $ 1,435,741
Refundable deposits 16,277,706 243,365,557 243,230,838 16,412,425
Total liabilities $17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Sheriff Agency Fund
Assets:
Ca.<;h, cash equivalents and investments $ 396,490 $ 5,638,970 $ 5,608,955 $ 426,505
Receivable:
Otber 133 1,885 133 1,885
Total assets $ 396,623 $ 5,640,855 $ 5,609,088 $ 428,390
Liabilities:
Due to other governments $ 59,132 $ 364,023 $ 352,559 $ 70,596
Due to individuals 337,491 618,463 598,160 357,794
Total liabilities $ 396,623 $ 982,486 $ 950,719 $ 428,390
Tax Collector Aeencv Fund
Assets:
Cash, cash equivalents and investments $ 4,303,742 $1,019,312,011 $ 1,018,687,847 $ 4,927,906
Receivable:
Interest 10,811 10,811
Otber 11,101 2,234,409 2,239,733 5,777
Total assets $ 4,325,654 $1,021,546,420 $ 1,020,938,391 $ 4,933,683
Liabilities:
Due to other governments $ 3,202,302 $ 989,848,360 $ 989,581,294 $ 3,469,368
Due to individuals 1,123,352 31,628,385 31,287,422 1,464,315
Total liabilities $ 4,325,654 $1,021,476,745 $ 1,020,868,716 $ 4,933,683
!!!:posits Ae:encv Fund
Assets:
Cash, cash equivalents and investments $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Total assets $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Liabilities:
Refundable deposits $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
Total liabilities $ 5,142,536 $ 944,996 $ 2,518,230 $ 3,569,302
(Continued)
135
- .---.- --'..'-.""' -_._------~----_. ,--.__.._._.~~.
-
-_."'.-...._--~"._,,_..-
-
.
COLLIER COUNTY, FLORIDA
COMBINING STA TEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
13A
tf
Balanc~
October I
Additions
Deductions
Balance
2.rytembcr 30
Pine Rid.ee and Naples Production Park A.eency Fund
Assets:
Cash, cash equivalents and investments $ 4,594,257 $ 1,339,651 $ 26,981 $ 5,906,927
Receivables:
Interest 57,5511 31,275 57,5511 31,275
Other 98,539 34,793 98,539 34,793
Total assets $ 4,7511,346 $ 1,405,719 $ 183,070 $ 5,972,995
Liabilities:
Due to special assessment holders $ 4,750,346 $ 1,4115,719 $ 183,11711 $ 5,972,995
Total liabilities $ 4,750,346 $ 1,4115,719 $ 183,11711 $ 5,972,995
Total - All Aeencv Funds
Assets:
Cash, cash equivalents and investments
Receivables:
Inten:st
Other
Total assets
$31,719,1181 $1,281,567,725 $ 1,2811,606,248 $ 32,678,806
68,361 31,275 57,5511 31,275
109,773 2,27 \,087 2,338,272 42,455
$31,897,215 $1,283,8711,1187 $ 1,283,002,070 $ 32,752,536
Liabilities:
Due to other governments
Due to individuals
Refundable deposits
Due to special assessmt:nt holders
Total liabilities
$ 4,265,784
1,460,843
21,420,242
4,7511,346
$31,897,215
$1,1101,177,038
32,246,848
244,310,553
1,405,719
$1,279,1411,158
$ 1,111111,467,117
31,885,582
245,749,068
183,11711
$ 1,278,284,837
$ 4,975,7115
1,822.1 09
19,981,727
5,972,995
$ 32,752,536
See accompanying independent auditors' report.
136
13A :1
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,
_.__.__"_..,.~,.,_._,.".._.."__~~~_~,~~,_,_.___._,,... _ _....___~_._ ,_'~"_____O"_".___~'__"_" .__.~.
COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Collier County
Housing
Finance
Authority
Collier County
Health
Facilities
Authority
Collier County
Industrial
Development
Authority
ASSETS
Cash, cash equivalents and investments $
313,716 $
165,781 $
3,655 $
18,548 $ 501,700
Total Assets $
313,716 $
165,781 $
3,655 $
NET ASSETS
Net assets - unrestricted
$
313,716 $
165,781 $
3,655 $
Total Net Assets
$
313,716 $
165,781 $
3,655 $
See accompanying independent auditors' report.
1)0
13A
III
"'1
Collier County
Educational
Facilities
Authority
Totals
18,548 $ 501,700
18,548 $ 501,700
18,548 $ 501,700
13A 11
COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Collier County Industrial Development Authority
Collier County Health Facilities Authority
Collier County Housing Finance Authority
Collier County Educational Facilities Authority
Net (Expense)
Revenue and Changes
Program Revenues in Net Assets
Fees, Fines and
Charges for Governmental
Expenses Services Activities
$ 14,195 $ 8,383 $ (5,812)
32,500 32,500
122,500 93,500 (29,000)
16,788 18,260 1,472
$ 153,483 $ 152,643 (840)
FUNCTIONS/PROGRAMS
Total
General revenues:
Interest income
Total general revenues
Change in net assets
Net assets - beginning
Net assets - ending
$
3,641
3,641
2,801
498,899
501,700
See accompanying independent auditor's report.
119
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13A
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THIS PAGE INTENTIONALLY LEFT BLANK
13A
I
,
Statistical Section
(Unaudited)
Statistical schedules differ from financial statements because they usually cover more than one fiscal year and
may present non-accounting data, These schedules reflect social and economic data, and financial trends of
Collier County, Florida.
CONTENTS
PAGE
FINANCIAL TRENDS
These schedules contain trend infonnation to help the reader understand how the government's
financial performance and wellbeing have changed over time,
Net assets by component
Change in net assets
Governmental activities tax revenues by source
Fund balances of governmental funds
Changes in fund balance of governmental funds
142
143
145
146
147
REVENUE CAPACITY
These schedules contain infonnation to help the reader assess the Country's most significant local
revenue source, the Property Tax,
Assessed value and estimated actual value of taxable property
Property Tax Rates - All direct and overlapping governments
Principal Taxpayers County-wide
Property Tax levies and collections
148
149
150
151
DEBT CAPACITY
These schedules present information to help reader assess the affordability of the County's current
levels of outstanding debt and the County's ability to issue additional debt in the future.
Ratios of outstanding debt by type
Ratios of general bonded debt outstanding
Legal debt margin information
Direct and overlapping governmental activities debt
Pledged-revenue coverage
152
153
154
154
155
DEMOGRAPIDC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the rear understand the
environment within which the County's financial activities take place,
Demographic and economic statistics
Principal employers
156
157
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the
infonnation in the County's financial report relates to the services the County provides and the
activities it perfonns,
Full-time equivalent County employees by function
Operating indicators by function
Capital Asset statistics by func1ionlprogram
158
159
160
Sources: Unless otherwise noted, the information in these schedules Is derivedfrom the comprehensive annualfinancial reports for the relevant
year. The County implemented GASB 34 Jor fiscal year 2U02 Schedules presenting government-wide information Incfude information beginning
In thai fiscal year
_ __.._...~'M__."_"~'_'~_'_~.__~'~'~__'"""_._~~____' _...... -----
COLLIER COlj;\/TY, FLORIDA
:~ET ,\SS[TS BY COMI'O:\'ENT
LAST SI:H~ FISCAL Vl:AKS (I)
(accrual basis of accounting)
(amounts expressed 111 thousands)
(unaudited)
13A
1_
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Guvernmental A.divities:
Invested in capital assets, net ofrdated debt $ I.022,(jOI $ 871389 $ 672,186 $ 570,512 $ 500,549 $ 44003 $ 377,404
Restricted 295J)]2 24046 205,403 148,587 142.306 103,280 83,292
Unrestncted 199,031 317,821 3l8,092 275,438 175,297 104.170 96,360
-I otal governmental actiVities net assets $ 15 16.044 $ 1,433.956 $ Ll95,6R1 $ 994,537 $ 8]8,152 $ 652,153 $ 557,056
Busincss~type Activities:
Invested in capital assets, net of related debt S 651U;6'1 $ 63L4l,l1 $ 596,907 $ 543,(j]7 I 5l9A78 $ 479,730 $ 401329
Restricted :1CU65 31.1.746 28.087 21,243 1 ],642 12,045 9.968
Unrestricted 113,761 8J.U38 77.206 90.608 77,563 80,307 132,908
Total business-type actIvities net assets S 802,791 S 745.275 S 702,200 S 654.868 $ 608,683 $ 572.082 $ 544.205
Primary Government:
Invested In capital assets, net of related debt $ 1,680);66 S I,S02,38t) S 1,26<).093 S 1.l13.529 $ 1,020,027 S 924.433 $ 778,733
Restncted 325,177 275.492 233490 169.830 153.948 115,325 93,260
lJnreslnctcd 312,792 .:100.859 395.2l,lR 366046 252,860 184,477 229,268
Total primary government net as~c1s $ 2,318,835 S 2,179,231 S 1,897881 S 1,649,405 $ 1,426,835 $ 1,224,235 I LlOl.261
(J) Only seven fiscal years an: available due to Implementation ofCi/\SH 34 ill llscal :'r'tar 2002
142
COI HER COUNTY. FLORIDA 13A II
CHANGE IN NET ASSETS
,
LAST SEVEN FISCAL YEARS (1) '.'"
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Expenses
Governmental activities:
General government $ 112.120 $ 110,814 $ 100,219 $ 85,182 $ 81.150 $ 67,885 $ 66,635
Public safety 183.288 182,821 187,945 140,761 133,930 114,207 103,718
Transportation 65,980 54,198 46,266 43,714 33,970 35.255 28,718
Culture and recreation 43,435 41,595 34,348 30,329 25,405 25,640 31,809
Other activities 49,135 44,500 35,838 31,713 24,110 24,528 29,288
Interest on long.tenn debt 21,446 21,779 25,841 14,507 8,566 5,697 3,109
Total governmental activities expenses 476,004 455,707 430,457 346,206 307,131 273,212 263,277
Business-type activities:
Water and Sewer 85,503 89,617 76,307 63,759 60,590 57,223 51,547
Solid \\.'aste 30,024 32,033 32,920 24,420 23,036 20,317 21,210
Airport Authority 5,082 4,296 3,978 3,625 3.346 3,027 3,020
Mass Transit 9,419 7,761 6,000
Emergency Medical Services 30.160 27,305 22,541 20,887 19,114 18,279 14,653
Total busincss.type activities expenses 160,188 161,012 141,746 112,691 106,086 98,846 90,430
Total primary govemment expenses $ 636,192 $ 616,719 $ 572,203 $ 458,897 $ 413,217 $ 372,058 $ 353,707
Program Revenues
Governmental activities:
Charges for services:
General government $ 36,468 $ 46,380 $ 47,178 $ 45,433 $ 37,967 $ 26,188 $ 20,418
Public safety 12,545 14,293 20,547 18,392 15,127 16,811 15,205
Transportation 3,936 1,902 1,733 667 959 3,423 639
Culture and recreation 8,429 7,494 5,878 5,050 4,416 4,151 3,637
Other activities 7,541 2,395 2,938 2,869 2,114 2,556 3,268
Operating Grants and Contributions 20,202 27,309 43,062 15,151 19,759 10,008 12,531
Capital Grants and Contributions 52,303 122,327 99,068 104,711 97,370 55,979 35,332
Total goverrunenta] activities program revenues 141,424 222, I 00 220,404 192,273 177,712 119,116 91,030
Business-type activities:
Charges for services:
Water and Sewer 100,030 92,091 81,088 73,686 65,152 58,955 50,455
Solid Waste 36,495 33,864 33,713 23,661 21,938 20,698 21,121
Airport Authority 3,547 2,860 2,459 2.288 1,878 1,580 1,425
Mass Transit 1,074 1,153 814
Emergency Medical Services 16,167 14,823 14,326 12,855 10,904 7,912 6,783
Operating Grants and Contributions 4,393 2,657 3,138 165 31 59 116
Capital Grants and Contributions 23,333 32,647 36,273 28,260 32,040 26,325 31,458
T alai business~type activities program revenues 185,039 180,095 171,811 140,915 131,943 115,529 111,358
Total primary government program revenues 326,463 402,195 392,215 333,188 309,655 234,645 202,388
Net (expense)/revenue:
Govcmmcntal activities (334,580) (233,607) (210,053) (153,933) (129,419) (154,096) (172,247)
Husiness~type activities 24,851 19,083 30,065 28,224 25,857 16,683 20,928
Total primary government net expense $(309,729) $ (214,524) $ (179,988) $ (125,709) $ (103,562) $ (137,413) $ (151,319)
141
COLLIER COUNTY, FLORIDA 1 3A II
CHANGE IN NET ASSETS
LAST SEVEN FISCAL YEARS (CONTINI lED)
(accrual basis of aCCllunting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
200N 2007 2006 2005 2004 2003 2002
General Revenues and Other Changes
in Net Assets
Go\'el'nmental Activities:
Taxes
Property taxes $ 327,245 $ 345,054 $ 293,240 $ 237,452 $ 213,353 $ 174,291 $ 147,753
(ias taxes 18,860 19,598 20,028 20,127 19,887 17,731 17,333
Sales laxes 30,004 32,568 34,671 32,949 31,323 27,846 26,611
rourist taxes 14,796 14,228 13,629 10,484 9,720 8,377 8,184
Other taxes 4,051 8,754 9,142 7.089 5,796 5,604 4,893
Slate revenue sharing 8,976 lJ,652 9.410 8,555 7.973 7,190 6,811
Interest income 34,533 ..n,I09 38,455 16,732 12,216 10,693 16,253
Change ill fair value of investments (8031 5,822 (2,067) (2,780) (5,813) 476 (2,111)
Miscellaneous 10,642 S,223 10.261 ]0,671 8.491 3,525 6,409
Special item - bond expense (3,288)
Transfers nd 128,348 ) (15,126) (13,229) (10,584) (7,529) (6,540) (15,703)
,
Total governmental activities 416,668 471,882 413,540 330,695 295,417 249,193 216,433
Businessvtype Activities:
Inten:st incmne .\928 6.1,107 4,139 5,610 4,348 3,903 9,288
Change in fair value of investments (2 ]2) l.139 (324) (463) ( 1,417) 154 (1,415)
;.....1iscel]uneolb " 620 285 597 799
I'ransfers. net 28,34S 15,126 13,221) 10,584 7,529 6,540 15,703
Total businessotype activities 34,141 23,992 17,U44 15,73 1 10,745 11,194 24,375
T mal primary government $ 450,809 S 495,874 $ 430,584 $ 346,426 $ 306,162 $ 260,387 $ 240,808
Change in Net Assets
(iovemmcnta] activities S 82,ONM $ 23!L275 $ 203,487 $ 176,762 $ 165,998 $ 95,097 S 44,186
l3usiness~type activities 58,992 43,IJ75 47,IIJ9 43,955 36,602 27.877 45,303
T atal primary government $ 141,080 $ 281,350 $ 250,596 $ 220,717 $ 202,600 $ 122,974 $ 89,489
(]) Only seven fiscal years are available due to implementatlOll of GASH 34 in fiscal year 20U2.
144
COLLIER COUNTY, FLORIDA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
13A
Fiscal
Year
Property
Tax
Gas
Tax
Sales
Tax
Tourist
Tax
Other
Taxes
Total
2002 $ 147,753 $ 17,333 $ 26,611 $ 8,184 $ 4,893 $ 204,774
2003 174,291 17,731 27,846 8,377 5,604 233,849
2004 213,353 19,887 31,323 9,720 5,796 280,079
2005 237,452 20,127 32,949 10,484 7,089 308,101
2006 293,240 20,028 34,671 13,629 9,142 370,710
2007 345,054 19,598 32,568 14,228 8,754 420,202
2008 327,245 18,860 30,004 14,796 4,051 394,956
145
.._~--
_.-
.,.~
9L ".
,
-,
-- ,
COLLIER COUNTY, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEYEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts ~xpressed in thousands)
(unaudited)
13A
"
Fiscal Y car
2008 2007 2006 2005 2004 2003 2002
General fund
Reserved $ 6,602 $ ),706 $ 4C)) $ 363 $ 468 $ 894 $ 980
Unreserved 01,953 77.619 65,938 58,891 52,836 40,537 27,812
'rotal general fund $ 68.555 $ 81,325 $ 66,901 $ 59,254 $ 53,304 $ 41,431 $ 28,792
All other governmental funds
Reserved $ 142,728 $ 294,512 $ 1973113 $ 212,521 $ I) 1,5) 1 $ 79,643 $ )),547
Unreserved, reported in:
Sp!;cial revenue funds ]22,043 118,150 112,875 1115,721 72,94) 48,558 57,317
Debt service funds 1,951 2,621 5,634 3,891 4389 4,405 4,653
Capita] projects funds 160,736 107,888 256348 125,476 18,252 76,513 23,923
Tota] all other governmental funds $ 427,458 S 523,171 $ 572,1611 $ 447,609 $227,115 $ 209,119 $ 119,4411
,
146
COLLIER COUNTY, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL Ft;NDS
LAST SEVEN FISCAL YEARS
(modified accrual basIs of accounting)
\ amounts expressed in thousands)
13A
J1
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Revenues:
Taxes $ 357,656 $ 180,983 $ 327,605 $ 268,536 $ 242,562 $ 200,398 $ 172,991
Licenses and permits 17,373 15,537 23,630 21,227 18,071 13,377 12,962
Intcrgovenunental 77,452 93,186 113,128 74,537 71,554 64,352 57,485
Charges for services 40,699 46,127 43,083 41,451 31,383 27,444 22,082
Fines and forfeitures 3,786 4,081 4,835 4,407 6,848 6,854 6,112
Interest IOcome 34,331 42,711 38,174 16,658 12,146 10,648 16,137
Change in fair value of investments (751) 5,551 (1,992) (2,683) (5,541) 476 (1,995)
Impact fees 36,679 84,792 70,202 38,766 15,653 24,841 34,065
Special assessments 2,942 3,240 1,264 3,680 2,643 2,390 2,516
Miscellaneous 10,667 7,337 9,074 9,922 8,490 7,713 5,607
Total revenues 580,834 683,545 629,003 476,501 403,809 358,493 327,962
Expenditures:
Current:
General government 96,898 96,483 83,821 73,992 67,831 65,094 61,137
Public safety 175,743 168,602 177,933 135,110 124,276 116,572 104,234
Physical environment 9,314 11.760 9,799 11,644 5,958 9,528 12,056
Transportation 48,253 39,105 33,735 32,911 24,273 28,116 20,295
Economic environment 13,479 11,690 9,333 5,98] 6,439 6,945 6,632
Human services 12,855 12,237 11,819 11,8111 9,576 9,721 8,343
Culture and recreation 36,456 35,325 29,172 26,238 23,145 22,449 22,543
Debt service:
Principal 43,080 36,144 20,977 14,374 14,247 8,585 29,243
Interest and other llscal charges 21,981 22,468 22,569 14,304 10,049 6,925 4,856
Capital outlay 285,809 290,581 255,569 174,640 170,145 78,201 96,952
Total expenditures 743,868 724,395 654,727 501,004 455,939 352,136 366,291
Excess (deficit) of revenues
over (under) expenditures (163,034) (40,850) (25,724) (24,503) (52,130) 6,357 (38,329)
Other tinancing sources (uses):
Bonds issued 6,215 296,270 49,360 102,125 47,430
Premiums on bonds issued 31 16,785 4,703
Payment to refunding escrow (4,500) (60,027) (5,079) (3,657)
Capital leases 1,048 16 28
Loans issued 69,391 22,390 40,466 8,000 45,245 8,250
Sale of capital assets 245 365 940
Insurance proceeds 208 885 792
Transfers in 144,824 166,113 154,580 97,632 84,508 57,020 37,685
Transfers out (163,075) (181,471) (168,006) (107,728) (92,037) (64,227) (53,517)
Total other l1nancing sources (uses) 57,839 3,782 29,820 250,948 81,997 95,964 39,876
Special Item - bond expenditure (3,288)
Net change in fund balances $ (108,483) $ (37,1168) $ 4,096 $ 226,445 $ 29,867 $ 102,321 $ 1,547
Debt service as a percentage of noncapital
expenditures 1420% 13,51% 10.91% g 79% 850% 5,66% 12,66%
147
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.
COLLIER COUNTY, FLORIDA
ASSESSEIl VALLE ANIl ESTlMATEIl ACTLAL VALliE OF TAXABLE PROPEllTY
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
13A
'if
Total Estimated Assessed
Fiscal Year Centrall)' Less: Total Taxable Direct Actual Value] as a
Ended Residential Personal Assessed Tax Assessed Tax Taxable Percentage of
September 30, Property Property Property Exempt Value Rate Value Actual Value
2002 $ 36,089,299 $ 1,651.435 $ 110 $ 4,.145,843 S 33,395,001 13.0569 $ 37,740,844 100%
2003 42,635,220 1.770,370 ]13 4.915,279 39,490,424 12.7941 44,405,703 IOO'Yo
2004 49,712,793 1,802,265 117 5,529,447 45,985,728 12.6552 51.515,175 100%
2005 55,37IJ,248 1,820,777 127 5.928,339 51,262,813 12.3402 57.191.152 100%
2006 66,375,040 1,956,646 143 6,890,007 61.441,822 12.2303 68,331,829 100%
2007 82,909,061 2,156,726 202 8,C123,791 77,042,198 114780 85,065,989 100%
2008 88,819,491 2,321,048 226 8.575,874 82,564.891 10.7171 91,140,765 100%1
Property is assessed as of January I, and taxes based on these assessments are levied and become due on the following November I,
Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding
calendar year.
IThe basis of assessed value required by the state is 1000/0 uf actual value.
Soun;t:: Propt:rty Appraiser Recapitulation Report
14H
COLLIER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
LAST SEVEN FISCAL YEARS
(unaudited)
13A
~
,
Collier County
Other
Fiscal
Year
General
Fund
Special
Revenue
Funds
Debt
Service
Funds
Total
County
School
District
Independent
Districts
Total
2002
3.8772
0.6670
0,0256
4,5698
7.1370
1,3813
13,0881
2003
3.8772
0.6767
0.0215
4.5754
6.9110
1.3554
12.8418
2004
3,8772
0,9226
(),oooo
4,7998
6.5240
1.3562
12,6800
2005
3.8772
0.9177
0,0000
4,7949
6.2200
1.3562
12.3711
2006
3.8772
0.9161
0.1500
4.9433
5.9730
1.3423
12.2586
2007
3.5790
0.8470
0,2226
4,6486
5.5250
1.3403
11.5139
2008
3.1469
0.7362
0.2233
4,1064
5,3574
L2792
10,7430
Basis for property tax rates is I mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes
based on those assessments arc 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 colleded in the fiscal year
ending during the following calendar year.
Sources: Property Appraiser Recapitulation Report.
Collier County 2009 Annual Hudgd
149
--
,
--,.
----
COLLIER COUNTY, FLORIDA
PRINCIPAL TAXPA YERS COUNTY-WIDE
2008 TAX ROLL
(amounts expressed in thousands)
(unaudited)
13A
1_
2UU8 1999
Prupen)' Percent of Property Percent of
Taxes fotaI Taxes rotal
OwncriTaxpayt;:[ Levied Rank I'axes Levied Levied Rank Taxes Levied
Florida Jluwa & Light Company , 2-"]7,987 O.27u/u $ 1,715,062 0.50%
-
III1R Naples Ill' 1,665,595 7 O. ]9~/1.I 0,00%
-
Embarq Corporation 1,299,On J (},15% 1,589,067 2 0.47%
City National Bank of Miami 9~L3.659 ,I 0,[1% 992,040 5 0.2'1%
CC-Naples, Inc. 953,9116 5 Q,11u/o 0.00%
Collier liMA, Inc. ,}52.328 6 (). I )l~"o 0.00%
Coastland Center Joint Venture 923227 7 O.l O(~'O 1,114,788 3 0,33%
Naples HMA, Inc. 920,995 8 (l_IO%,
The Moorings, Ine. 765.781 <) 0,09%
Vv'aI.Mart Stores East LP 680.599 IU U,08%
liMe BN LTO Partnership (l,UU% 1,03] ,270 4 0.30%
\Vel C:ommuntles, Inc. 0,000/0 6] 6,229 6 0.18%
Collier Development Corporation U,OOu/o 596,246 7 0.17%
Marco bland Utilities (),OOu/;) 556,778 8 0.16%
Calumet Florida, 1m:, O,()O~'u 495,604 9 0,15%
["utgen rR, Raymond L 0.00% 486,529 10 0.14%
Total $ 11,563,107 1.31% $ 9,19J,614 2.70%
Total Property Taxes Levil:d
$ 88.4,859,641
$ 340,819,438
Amounts fur taxpayers with simiI<lr namcs havc not bel::n l:ombined.
Source' Property Appraiser's taxpayer listing In order of taxes kvied.
Properly Appraiser Recapitulation Repun,
I Embarq was Sprint in lYSIS
1511
COLLIER COUNTY, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
13A'
rlll
"
,
Fiscal Year Total Tax Collected within the
Ended Levy for Fiscal Year of the Levy Collections in Total Collections to Date
~ptember 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy
2002 $ 157,744 $ 146,033 92.6% $ 178 $ 146,211 92.69%
2003 185.633 174,116 93.8% 136 174,252 93,87%
2004 225,773 213,009 94.3% 325 213,334 94,49%
2005 251,772 237,184 94.2% 240 237,424 94,30%
2006 307,068 293,129 95.5% 98 293,227 95,49%
2007 362,568 344,945 95.1% 109 345,054 95.17%
2008 343,906 325.722 94.7% 1,522 327,244 95.16%
Source: Tax Collector Annual Report
151
_.. u._.....__."._.,.,._._........ _"._.,,_'_._ . ~~,_
-. .. .'" ,'-' ~,_..__._,.~---
COLLIER COUNTY, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
( ul1<:luditcd)
13A
Governmental Activities
Business*type Activities
j:iscal
Year
General
Obligation
Bonds
Capital
Leasl:s
Loans and Total Percentage
R('vcnui;' Notes Capital Primary of Personal Per
Bonds Payable Leases Government Income I Capita I
Revenue
Bonds
Loans
Payable
2002 $ 795 $ 85,185 $ 9,256 $ 791 $ 78,725 $ 4(U69 $ 327 $ 215,448 2.11% 848
2003 176,775 8,486 279 71 ,505 55,335 165 312,545 2.86% 1,179
2004 208,980 51,649 108 66,860 74,545 73 402,215 3.47% 1,458
2005 32,815 444,375 14,l130 82 62,515 113,067 25 666,909 5.6]% 2,331
2006 29,530 429,735 51,546 1,029 58,1J60 124,629 694,529 5.46% 2341
21J1J7 25,815 409,620 57.331 897 163,631J 106,932 68 764,293 5.02% 2,483
2008 27,830 394,145 11J3A61 752 158,885 11J3,903 618 789,594 4.39~/o 2,521
I Set: the Schedule of Demographic and Economic Statistics for personal income and population data.
I')
,-
1':;1'
I ~.,
".-"
COLLIER COUNTY, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST SEVEN FISCAL YEARS
(unaudited)
13A
,
<I
,
Percentage of
Estimated
General Less: Amounts Actual Taxable
Fiscal Obligation Available in Debt Value! of Per
Year Bonds Service Fund Total Property Capita2
2002 $ 795,000 $ 76,461 $ 718,539 0.002% 3
2003
2004
2005 32,815,000 21,935 32,793,065 0,064% 107
2006 29,530,11110 22,576 29,5117,424 0.048% 911
2007 25,815,11110 4,312 25,810,688 0.034% 77
211118 27 ,8311,0011 374,496 27,455,504 0.1133% 82
lSee the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
o
~See the Schedule of Demographic and Economic Statistics population data.
153
COLLIER COUNTY, FLORIDA
13A
LEGAL DEBT MARGIN INFORMATION
AS OF SEPTEMBER 30, 2008
(unaudited)
The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 20llS
(unaudited)
GovemlTIcntal Entity
Net Debt
Outstanding (I)
Percentage
Applicable to This
Govenunental Unit
Direct Debt
Debt repaid with property taxes: County
$ 38,295,425
IllO.OO%
Overlal2Ping:
Overlapping debt for governmental entities within Collier County is 110t presented
(I) Excludes amounts available in Debt Service Funds for payment of interest and principaL
154
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COLLIER COUNTY, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST SEVEN FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
13A
-
Population( 1)
Personal
Income(2)
Per Capita
Personal
Income(2)
Median
Age(3)
School
Enrollment( 4)
Unemployment
Rate(5)
Fiscal
Year
2002 264,475 $ 10,197,520 $ 40,121 40,5 37,110 4.2%
2003 284,918 10,940,352 41,269 44, I 38,196 4.7%
2004 292,466 11,601,373 42,050 45,2 40,416 3,9%
2005 306,186 11,878,015 41,513 45,6 41,232 3,6%
2006 326,658 12,711,343 42,846 44.7 43,000 2,7%
2007 333,858 15,736,905 49,492 44,5 4",722 3.5%
2008 332,854 17,990,169 57,446 44,8 42,711 5,5%
Sources: (I) www.fred.labormarketinfo.com
(2) University of Florida, Bureau of Economic and Business Research,
Per Capita and Total Personal Income rev ised by Department of Commerce, 2006
(3) Florida Statistical Abstract(Table 1,51) 2007
(4) Collier County School Board, based on full time equivalent enrollment
(5) www.fred.labormarketinlo.com
156
COLLIER COUNTY, FLORIDA
PRINCIPAL EMPLOYERS
(Unaudited)
13A
;~
2008 1999
Percent of Percent of
Total County Total County
~loyer Employees Rank Employment Employees Rank Employment
Collier County Public Schools 6,685 1 5A6% 3,956 I 4.75%
NCH Healthcare System 3,007 2 2A6% 2,752 2 3.30%
Collier County Government 2,984 3 2.44% 2,602 3 3.12%
Publix Supermarkets 2,214 4 1.81% 2,155 4 2.59%
Wal-Mart 1,547 5 1.26% 390 10 0.47%
Collier County Sheriff's Office 1,273 6 1.04% 953 5 1.14%
Marriott 743 7 0.61% 862 6 1.03%
Fiflh Third Bank 733 8 0.60% 0.00%
Naples Grande Resort and Club 605 9 0.49% 612 9 0,73%
Barron Coilier Partnership 600 10 0.49% 340 OA1%
Winn Dixie Stores, Inc. 779 7 0.93%
Ritz Carlton Hotel 776 8 0.93%
Other employers 101,978 83.34% 67,177 80.59%
Total 122,369 100.00% 83,354 100.00%
Sources: Economic Development Council Collier County, 2007
1999 Collier County Adopted Budget
Florida Department of Labor & Employment; Bun:au of Labor Market Information ES~202 report for 1999 and 2008.
157
COLLIER COUNTY, FLORIDA
FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION
LAST FIVE FISCAL YEARS*
(unauditcd)
Fiscal Y car
13A
q
Function:
General government 1,177 1,300 1,264 1,225 1,126
Public safcty 1,118 1,117 1,144 1,000 987
Physical environment 65 73 67 57 58
Transportation ;54 ;68 ;44 265 253
Economic environment ;; 18 16 15 15
~~
Hwnan services 47 52 53 55 48
Culture and recreation 335 397 389 337 335
Water and Sewer 309 336 312 297 288
Solid Waste 77 23 27 26 23
~~
Airport Authority 14 15 13 13 14
Emergency Medical Scrvices 168 188 167 158 161
Total 3,481 3,787 3,696 3,448 3,308
;008
2007
2005
2006
· lnforma1ion prior to fiscal year 2004 is not availablc.
158
2004
COLLIER COUNTY, nORIDA
OPERATING INDICATORS BY F\lNCTlON
LAST SEVEN FISCAL YEARS
(unaudited)
13A
Iii!!
Fl
Fiscal Year
2008 2007 2006 2005 2004 2003 2002
Function:
Police:
Physical arrests 20,226 22,028 25,657 17,214 14,788 13,506 11,423
Parking violations 843 1,753 2,124 1,372 2,115 1,468 1,678
Traffic violations 49,831 64,372 58,242 56,056 50,883 39,869 39,342
Fire:
Fires reported 586 590 654 353 262 153 153
Emergency responses 1,213 1,148 1,539 1,652 1,056 868 668
Number of calls answered 1,840 1,779 2,235 2,049 1,360 1,072 858
Transportation:
Collier Area Transit ridership 1,166,358 1,180,147 1,052,536 Y51,601 627,824 475,820 324,037
Street resurfacing (lane miles) 52 44 47 22 53 70 81
Culture and recreation:
Beach parking stickers issued 80,542 76,344 54,074 57,875 42,000 30,000 20,000
Library circulation 3,000,394 2,YI6,523 2,722,539 2,853,Y26 2,877,230 2,788,262 2,485,314
Water:
New connections 553 1,593 \,897 2,597 2,910 1,592 2,923
Wastewater:
Average daily sewage treatment 15,558,000 15,583,055 17,310,468 17,095,8YO 16,526,027 15,616,438 15,342,466
(thousands of gallons)
ISee the Schedule of Demographic and Economic Statistics on page 133 tor personal income and population data.
159
COLLIER C01!NTY, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST SEVEN FISCAL YEARS
i unaudited)
13A
"~
.~ '
,'"
Fiscal Year
200g 20u7 2006 2005 2004 lOU) 2002
Function:
Public Safety_
Police Slations 7 7 7 7 7 7 7
Patrol Units ')7<; 275 '70 260 253 256 257
-,. " "
Fire:
Fife statIons , 2 2 2 2 2 2
l-lighways and slreets
Strcets (miles) IIS4 1147 1.147 L\4Y ], ]2] ],2]0 1A63
Streetlights 3.767 3.987 3.620 3.327 3,075 n5S 2,378
TraffIc signal;; 224 216 200 ]98 196 ]93 ]8]
Culture and recreation
Parks acreage 1440 1.436 lsn ]A86 1,396 ],549 1546
Parks 56 55 47 47 46 46 44
Swinuning Pools , 7 7 3 2 2 2
TI.;.'nnis Courts 45 45 45 43 43 43 43
Community Cenlers S 8 8 0 6 6 6
,
Llhranes 9 ') <) 9 <) 9 9
Number of volumes in Iibranes 647.484 769,717 651,592 556,737 5lD,684 539.887 456,233
WaItT'
Number of water ,llld sewer customers j 1136 5Y.257 57.664 55.767 53,170 50.260 48,668
Watermams(miles) 870 860 682 685 668 646 639
Maximum daily capaclIy (per 1.000 gallons) 3(J.l;l56,261 36,116,725 34.673.000 31 94(U 18 31342,779 34.243.600 3],Y02.378
Wastewalcr
Samtary ~ewers lllllleS) 1.053 871 798 802 JR4 763 755
Primary and Secondary dramage facllllles 303 '0' 30J 3]1 3]] 3]] 31]
, ,
160
13A
Single Audit/Federal and State Schedule
of Financial Assistance
The Single Audit/Federal and State schedule of financial assistance section presents Grants
compliance reports filed by Collier County with Federal government and State government,
respectively,
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13A ~
THIS PAGE INTENTIONALLY LEFT BLANK
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IIII1 ill ERNST & YOUNG
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Ernst & Younq LLP
100 N(),tt1ea';1 nllrcl /AVenue
Suite 100
~Olt L,J(ldc','ldalc, Floridd 3::UUJ
TeL- 1 9~;4 (32101 8000
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Report of Independent Certified Public Accountants on
Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing Standards
Members of the Board of County Commissioners
Collier County, Florida
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information for Collier County, Florida (the County) as of and for the
year ended September 30, 2008, which collectively comprise the County's basic financial
statements and have issued our report thereon dated February 26, 2009, We conducted our audit
in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control over financial reporting, Accordingly, we do not
express an opinion on the effectiveness of the Cmmty's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over financial reporting that might be signi ficant deficiencies or material
weaknesses, However, as discussed below, we identified certain deficiencies in internal control
over financial reporting that we consider to be signi ficant deficiencies,
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis, A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the
entity's internal control, We consider the deficiency described in the accompanying schedule of
findings and questioned costs as item 2008-0 to be a significant deficiency in internal control
over financial reporting.
0902-1032557
163
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III1 E1 ERNST & YOUNG
13A
j
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the entity's internal control, Our consideration of internal
control over financial reporting was for the limited purpose described in the first paragraph of
this section and would not nccessarily identify all deficiencies in internal control that might be
significant delieiencies and, accordingly, would not necessarily disclose all significant
deficiencies that arc also considered to be material weaknesses, However, we do not believe that
the significant deficiency described above is a material weakness,
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are
free of ma1erial 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 dIect on the determination of financial statement amounts, However, providing an
opinion on compliance with those provisions was no1 an objective of our audit and, accordingly,
we do not express such an opinion. The results of our tests disclosed no ins1ances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
The County's response to the findings identitied in our audit are described in the accompanying
schedule of findings and questioned costs, We did not audit the County's response and,
accordingly, we express no opinion on it
This report is intended solely for the information and use or management, the Board of County
Commissioners, others within the entity, the Auditor General of the State of Florida, federal and
state awarding agencies and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties,
-f
UP
February 26, 2009
0'0102-103255'
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1
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1IIII1 Ell ERNST & YOUNG
Ernst & YounQ LLP
100 t'Jorth0a:,1 Third Ave'nUl'
Suite 100
fUIi. L,LJiJf'lclille, rlUli(Jd :;::.;3UI
; i'l: ; J C;Lj4 ,j8d HUon
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Report ofIndependent Certified Public Accountants on Compliance
With Requirements Applicable to Each Major Federal Program and
State Project and on Internal Control Over Compliance in Accordance
With OMB Circular A-133, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules of the Auditor General
Members of the Board of County Commissioners
Collier County, Florida
Compliance
We have audited the compliance of Collier County, Florida (the County), with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-I33 Compliance Supplement, and the requirements described in the Executive Office
of the Governor's State Projects Compliance Supplement, that are applicable to each of its major
federal programs and state projects for the year ended September 30, 2008, The County's major
federal programs and state projects are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs, Compliance with the requirements
of laws, regulations, contrac1s, and grants applicable to each of its major federal programs and
state projects is the responsibility of the County's managemenL Our responsibility is to express
an opinion on the County's compliance based on our audiL
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States; the standards applicable 10 financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular
A-l33, Audits of" States, Local Governments, and Non-Profit Organizations; Section 215.97,
Florida Statutes (Section 215,97); and Chapter 10.550, Rules of the Auditor General (Chapter
10,550), State of Florida, Those standards, OMS Circular A-133, Section 215,97 and Chapter
10,550 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program or state project occurred, An audit includes
examining, on a test basis, evidence abou1 the County's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination of the County's compliance with those requirements,
0'102-1032557
165
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13A
~I
ill ERNST & YOUNG
As described in item 2008-1 in the accompanying schedule of findings and questioned costs, the
County did not comply with requirements regarding allowable costs that are applicable to its
Community Development Block Grant (CDBG) Program and Home Investment Partnerships
Program (HOME) Program As described in item 2008-1 and 2008-5 in the accompanying
schedule of findings and questioned costs, the County did not comply with requirements
regarding allowable costs and reporting that are applicable to its State Housing Initiative
Partnership (SHIP) Program, Further. as described in item 2008-2 in the accompanying schedule
of findings and questioned costs, the County did not comply with requirements regarding
reporting that are applicable to its State Criminal Alien Assistance Program (SCAAP),
Compliance with such requirements is necessary, in our opinion, for the County to comply with
requirements applicable to these programs.
In our opinion, except for the noncompliance described in the preceding paragraph, the County
complied, in all material respects, with the requirements referred to above that are applicable to
each of its major federal programs and state projects for the year ended September 30, 2008. The
results of our auditing procedures also disclosed an instance of noncompliance with those
requirements that is required to be reported in accordance with OMB Circular A-133,
Seclion 215,97, or Chapter 10,550, and which is described in the accompanying schedule of
tlndings and questioned costs as item 2008-3,
Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to federal programs and state projects. In planning and performing our audit, we
considered the County's internal control over compliance with requirements that could have a
direct and material etfect on a major federal program or state project in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance, but not for the
purpose of expressing an opinion on 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 would nol necessarily identify all detlciencies in the County's
internal control that might be significant deliciencics or material weaknesses as delined below,
Ilowcvcr. as discussed below, we identifled certain deficiencies in internal control over
compliance that we consider to be significant deliciencics and others thal we consider to be
material weaknesses,
O')02-IOT2557
166
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111111 gg ERNST & YOUNG
13A
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,
A control deficiency in an entity's internal control over compliance exists when the design or
operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect noncompliance with a type of
compliance requirement of a federal program or state project on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects
the entity's ability to administer a federal program or state project such that there is more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal
program or state project that is more than inconsequential will not be prevented or detected by
the entity's internal control, We consider the deficiencies in internal control over compliance
described in the accompanying schedule of findings and questioned costs as items 2008-1
through 2008-6 to be significant deficiencies,
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program or state project will not be prevented or detected by the entity's
internal control, Of the significant deficiencies in internal control over compliance described in
the accompanying schedule of findings and questioned costs, we consider items 2008-1 and
2008-5 to be material weaknesses,
The County's response to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs, We did not audit the County's response and,
accordingly, we express no opinion on it
This report is intended solely for the information and use of management, the Board of County
Commissioners, others within the entity, the Auditor General of the State of Florida, federal and
state awarding agencies, and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties,
of'
UP
February 26, 2009
0902-1032557
167
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Collier County, Florida
Schedule of Expenditures of
federal A wards and State Projects
For tht: hs-.:al Yl.:af Ended September 30, 200S
Federal or State Grantor/Pass~Through Grantor Program Title
('FDA.I
CSFA 14
Department of Al!riculture
Direct Programs
Rural Busmess.Cooperativc Service'
Rural Business Entcrpnse Grant
10769
Indirect Programs.
Florida Department or EducatIOn:
Summer Food ServlI.;e Program l(lr CllllUrcn
10559
Flonda Department of Agriculture and Consumer Services.
Cooperative Fon:sty Assistance
Cooperative Foresty Assistance
TOlal Cl. DA
]0.664
10664
Total Department of Agriculture
Deoartment of Commerce
Direcl Programs
National Fish and \Vildltfe Foundation
l:ducational Partnership Program;' Sea Turlk DlsonentatlOn
114Rl
Total Department of Commcn.'e
Department of lIousjn~ and Urban Development
Direct Programs:
Community Planl1lng and Devdopment
COllllllumty DeveloptlH:nt Block Cirants / Entnlcmcnt (CDHG)
Comlllumty Development B]ock (Jrants 11:.ntJtkment (CDBCi)
Community Development Block Grants I EntItlement (eDBCi)
Community Development Block Grants I Entitlement (l'DBG)
Community Development Block Ciranls;' Entltlemcnt (CDBCi)
Commumty Development Block Cinlnts i LnlltlementlCDBGj
[()t<ll CF]),\
14.218
142]X
1421X
]421X
]42]lS
14218
f:mergem:y Shelter Grants Program (lSGJ
1n31
SupportIve HOUSIng Program (CoC)
SUppor!lve [lousing Program (CuC )
Supportive Housing Program lCOC)
Supportive Housing PrognUll (CoC)
Total ('FDA
14235
14235
]4235
14 ~35
I h.1mc Investment Partnerslllps Program (] [OME)
Home Investment Partnerships Program (HOMF)
! lome Investment Partm:rships Pmgram (IHH\1[-:1
Tolal CrDA
]4239
142:;4
14239
See accompanying no1cs to the schedule or expenditures of federal awards and state pmJ;:cts
168
Grant/Contract Number
Collier County
04-0804
Isles ofCapn Fire District
OdlOpce Fire Distnct
2006-0] 14~004
B-03-UC-12-00 16
B-()4-UC-]2~OOI6
B-05-lJC-12-0016
B-06-UC- ]2-00]6
13-07-UC-12-0016
B-08-lJC-12-0016
S-07-UC-12-0iJ24
[.'1.14B50-6001
i"J,14H50-6002
FLl4B50-600J
FL 141360-6()()3
\1-06-UC-]2-U2] 7
M-ll7-tIC-12-02!7
M-08-UC-12-0217
13A
'It
Expenditures
$
400,896
365288
2,375
5,220
7,595
773,778
123,4SiJ
123,450
18(l,380
126,960
98,122
196,678
1,031856
146,537
1,780,533
98,012
! 11,262
10l.576
72.415
3JA01
318,654
252,772
214,427
26,783
494,482
(Continued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projecls
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA #/
CSFA #
Indirect Programs:
Department of Community Affairs'
Community Development Block Grant I State's Program (DRI)
Community Development Block Grant I State's Program (DRI)
Total CFDA
14.228
14.228
Total Department of Housing and lJrban Development
Department urlhe Interior
Direct Programs:
Fish and Wildlife Service:
Partners for Fish and Wildlife I Conservation CoUier Land
Habitat Restoration Project
Partners for Fish and Wildlife I Derelict Vessel Removal
Total CFDA
15.631
15.631
Indirect Programs:
Florida Department of Environmental Protection:
Clean Vessel Act
Clean Vessel Act
Total CFDA
IS 616
15616
Total Department of the Interior
Department ofTreasurv
Direct Programs:
Department of Treasury
Federal Equitable Sharing
21.unknown
Total Uepartmcnt of Treasury
Department of Justice
Direct Programs:
Office of Justice Programs:
Federal Equitable Sharing
l6.unkown
Services for Tratlicking Victims / Anti Trafficking Task Force
16.320
State Criminal Alien Assistance Program (SCAAP)
16.606
Public Safety Partnership and Community Policing Grants!
COPS Secure Our Schoob
16.710
Edward Byme Memorial JustIce Assistance Urant Program
Edwaru Byrne Memonal Justice ^ssistance Grant Program
Total ('FDA
16738
16738
IbY
Grant/Contract Number
omB-3 V-OY-21-0 l-Z0 1
08DB-03-09-21-0 l-A03
4018151021
401816J091
LE636
LE637
Collier County
Collier County
2005-VT-BX-0002
2008-AP-l3X-0316
2007-CK-WX-0089
2005-CJ-BX-0753
2006-DJ-BX-0474
13A
Expenditures
$
748,497
26,332
774,829
3,466,510
25,600
30,000
55,600
23,212
22,868
46,080
101,680
104,804
104,804
36,227
140,593
411,848
20,409
131 ,069
38,410
169,479
(Continueu)
.- ~-,-_._--_.-
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30,2008
Federal or State Grantor/Pass-Through Grantor Prog:ram Title
CFDA #/
CSFA #
GranUContract Number
13A
f~
Expenditures
Office on Violence Agamst Women
Supervised Visitation, Sate Havens tllf Childn:n
16527
Indirect Programs:
Florida Department of JuvenIle JusHel:
Juvenile ACGOunl<lbIiity Block Grants i Peer MedIation Program
16523
Florid;:! Office of Attorney General
Cnme Vlctno AssIstance (VOCAl
16 ~7)
Florida Department of Law Enforcemenl
Edward Byrne Memorial FOffi1Ula Grant i Sexual Predator
16579
Community ProsecutIOn fmd Project Safe Neighborhoods i
Anti-Gang Illltiatlvc
16.609
Florida Department of Children and FaJl1llJes
VIOlence Against \Aiomen Formula Urants'" STUP
Violence Against Women Fonnula Grants i STOP
'Total CFOA
16,588
!6588
Total Department of Justice
Department of Transportation
Direct Programs'
Federal A viation Administration
Airport improvement./ Imk Maslcr Plan Update
AIrport Improvement./ Marco Master Plan Study LJpdat..:
AII-port Improvement./ J\.1areu Apron Phase I & !I
Airport Improvement / Marco Phase II Sun;harge./t\mstruetloll
Airport Improvement / J\lan;o South TaXIway &: i\pron DeSign
rotal ('FDA
20106
20106
20106
2(J 106
20 lO6
Federal Transit Admllllstrat!On'
h:dera] r ransl! Cluster
Federal I'ransll-Capital Investment Grants./ Sedlun ~wq
Federal TrarlSlt-Caplta] Investment Grants / SectIOn 5:109
Federal Transll-Capltallnvestmcnt (jranh / Sl.:ctlon 5104
Total ('FDA
20500
20500
2050(J
Federal Translt-Formu]a Grunts'" SCl:tiol1 5307
h:deral l'nUlsit-FomlU]a Grants i Section 5307
Federal Transit-Formula Grants./ Secthm 53(J7
h:deral TraJlSlt-Fonnula Grants./ Sedion 5307
Federnl Tnmsit-Fonnula Urants / Sec\Jotl 5307
Total CFOA
20,507
2U 507
205(l7
20507
20507
Total Federal '! ransll Clusll'r
170
2007-CW-AX-0007
SB-IUS
V7022
2008JAGCCOLl,1Q9171J
2008PMAGCOLL I R600S
LN016
LNSl6
3-12-1J011-001-2006
3-12-0142-002-2006
3-12-0]42-003-2006
3-12-0]42-004-2007
3-12-0 I 42-005-2008
FL-03-0264-00
FL-03-0297-00
FL-03-03]2-()()
FL-90-X508-00
Fl -4()-X553-00
FL-9U-XS80-00
F],-9()-X645-00
H -90-X665-00
$
99,575
32,245
140)95
]35330
16,755
123,480
34,848
158)28
1,361,183
7,500
51,205
4,843
397,545
21,721
484,814
13,165
]02,486
129,127
245,278
212,815
1,410
86.870
1,360,158
214,276
1,876,029
2,121,307
(Conlinucd)
- . -
'...
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
O'DA#/
CSFA #
Indirect Programs
Florida Department of Transportation.
Highway Planning and Construction / Lighting
Highway Planning and Construction / Pedestrian Bridge
Highway Planning and Construction
Highway Planning and Construction / Sidewalks & Lighting
Highway Planning and Construction / Bicycle/Pedestrian Bridges
Highway Planning and Construction
Highway Planning and Construction I Paved Shoulders
Highway Planning and Construction / Bike Lanerrrail Study
Highway Planning and Construction I Sidewalks
Total CFDA
20.205
20.205
20.205
20.205
20.205
20.205
20.205
20205
20205
Federal Transit-Metropolitan Planmng C;rants I Section 5303
20.505
Formula Grants for Other Than Urbanized Areas I lmk Circulator
20.509
Capital Assistance Program for Elderly Persons and Persons
with Disabilities I SectIOn 5310
Capital Assistance Program for Elderly Persons and Persons
with Disabilitil.:s i Section 5310
Total CFDA
20513
20.513
Total Department of Transportation
General Service Administration
Indirect Programs
Florida Department of State:
Voter Education Election Reform
39.011
Total General Service Administration
Environmental Protection Aeencv
Indirect Programs:
Florida Department of Envlronnlental ProtectIOn:
Capitalization (hants lor Clean Water State Revolving Funds
Capitalization Grants !()r Clean Water State Revolving Funds
Total CFDA
66,458
66,45~
Capitalization Grants For Urinking Water State Revolving Funds
Capitalization Grants For Drinking Water State Revolving Funds
Capitalization Grants For Drinkmg Water State Revolving Funds
Capitalization Grants for Drinkmg Water State Revolvmg l"unds
Total CFDA
66,468
66,468
66468
66,468
Total Environmental Protection Agency
171
.
-,,-,...
--
~~_____,.,",. ....."".0"
Grant/Contract Number
412559
412627
414327
415566
415590
416342
417350
417940
420887
AM356
AM 357
1'1-16-003 I
FL-16-0032
Collier County
WW597180
WWG 12059715103
OWIllI0]{)
OWIIII 020
DWIIII030
DW[111040
13A
J
Expenditures
$
19,445
70,674
337.320
632.000
270,161
94,863
203,866
307.567
200,000
2,135,897
62,294
202,068
146,439
293,277
439,716
5,446,096
75,367
75,367
237,761
699,429
937,190
1,701,447
159,619
3,200,000
3,200,000
8,261.066
9,198,256
(Continued)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA #/
CSFA #
Grant/Contract Number
13A
It
:'-''4
Expenditures
Election Assistance Commission (EACl
Induce1 Programs
DivIsIon of EJcdions
Help America Vote Act Requirements Payments i Poll Workas
Recmitment
Help Amenca Vote Act Requirements Payments l Vuter
Education
Hdp America Vote Act Requirements Payments./ Voting
Sf'stems ASSistance (1-1/\ Y ^ 2002)
lj(j 401
1)0.401
9040]
Total Election Assistance Commission (EAC)
Deoartment of Health and Human Sen'ices
IndlrCl.:[ Programs
Florida Department orElder Affairs - Area Agency on Aging tiJr
Southwest Florida. Inc.:
Aging Cluster'
Specla] Programs for the Aging - Title Ill. Part B - Grants for
Supportive Services and Senior Centers
Special Programs for the Aging - Title III, Part B - Cirants for
SupportIve Services and Senior Cenkrs
'rolal CFDA
93044
93044
SpeCIal Programs for the Aging-Title III. Part C- I-NutritlO]]
Services
Spccial Programs tor the Aglllg-Tit1e III. Part C-2-NutntIt1ll
Services
Specla] Programs Ibr Ihe Agmg-Tltle Ill. Part ('-I-Nutrition
ServlCcs
Special Programs for the Aglllg-Tnle )11. Parll-2-NutntiulI
ServKcs
Total CFDA
9] U45
93 U4"i
';13045
')] 045
NutntlOn ServIces Incentive Program, ('-1
NutnllOn Services Incenlive Program, C-2
Total ('FDA
[nuS3
')3053
Total Aging Cluster.
National ramily Caregiver Support - Title 11l-l:
National Family Caregiver Support - Tltlc I11.I<:
Tolal CFDA
93.052
93.052
Florida Department uf Revenue
Child Support Enlarcemcnt
Child Support [-:ntorccmenl
Total CFDA
93563
93563
172
Collier County
Collier Counlv
Collier County
OAA 203.08
OAA 203,07
OAA 203 07
OAA 203 07
()AA 203 08
O^/\ 20] 08
NSIP 203.08
NSfP 203.08
()AA 20307
()AA 203.08
CC311
CD]11
$
28,010
16,169
154,776
198,955
76,703
113,120
189,823
10jOl
8,405
138,613
108,307
265,826
7.418
9,095
16,514
472,162
10,659
8,56]
19,221
223,974
30,031
254,004
(('nl1tlll\.lcd)
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30, 2008
Federal or State GrantorJPass- Through Grantor Program Title
CFDA #/
CSFA #
Division of Elections:
Voting Access for Individuals with Disabilities-Grants to States
93.617
Total Department of Health and Human Services
Corporation for National and Community Service
Direct Programs:
Retired and Senior Volunteer Program
94 002
Total Corporation for National and Community Service
Depar-tment of Homeland Security
Direct Programs'
Assistance to Firefightt=TS Grant I Isle of Capri
97.044
Indirect Programs.
Florida Department of Law Enforcement:
State Domestic Preparedness Equipment Support Program I
H,S Issue 2
97004
Homeland Secunty Grant Program I B.S. hsue 21
Homeland Seeunly Gran! Program
Homeland Security Grant Program I RS. Issue 20
Total CFDA
97067
97067
97.067
Florida Department of Community AfTaJrs:
Disaster Grants - Public Assistance i Tropical Stoml Fay
97.036
Hazard Mitigation Granl
Hazard Mitigation Grant
Hazard MItigation Grant
Total CFDA
97.039
97039
97039
Emergency Management Perfonnance Granl
97.042
Total Department of Homeland Security
TOTAL EXPENDITliRES OF FEDERAL AWARDS
173
Grant/Contract Number
Collier County
06SRSFL004
EMW-2006-FG-04104
2007SHSPCOLL2Q5003
07-DS-5N-09-21-01-116
07-DS-5N-09-21-0 1-21 0
2008SHSPCOLLlS4011
Collier County
07-EC-33-09-21-0 1-486
08HM-6G-09-21-01-017
08HM-6G-09-21-01-055
08-BG-24-09-21-01-318
13A
~'~
.
Expenditures
$
13,323
758,710
67,313
67,313
1,873
9,507
6,188
]3,956
19,648
39,791
269,554
1,639,223
11,875
16,800
1,667,898
42,045
2,030,669
$ 23,706,771
(ContlOued)
,,,.,-,,_.,-,,-,'--'~--~_."-"'~'''''- ...
Collier County, Florida
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Yt:ar Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Tille
(,FDA#!
C8M #
13A
Grant/Contract Number
Florida Executive Office of the Governor
Office ofTourislI1, Trade and Economic Dcvdopmenl
Rural Infrastructure, lmmokalee Airpon
31030
Total Florida Executive Office of the Governor
Florida Department of Envimnmental Protection
13each Erosion Control Program
37.003
Florida Recreation Development Assistance Program
371117
ltUlovalivc Waste Reduction and Recycling Grants
Innovative Waste Reduction and Recycling Grants
Total CSF/\
37050
37 U5()
Waler Protection and Sustamabihty Program
37066
Total Florida Deparlment of Environmentall'rutectiun
Florida Department of State and Secretan of State
Publlc ] _lbrary Construction Prognml
Public Library Constructlon Program
Total CSFA
45020
45020
State Aid to Libraries
State Aid to Llbrancs
State Aid to Llbranes
State Aid to Llbraries
Tota] CSFA
45 UJU
45030
45030
4503U
Community Lihrarics III Caring
45042
Total Florida Department of State and Secretary of State
Florida Department of Community Affairs
Emergency Management Programs
52 (JOS
Loca] Emergency Management and Mitigatlon ]nitlatlves
,';2010
I:mergency Management ProJlO:cts
52,un
Total Florida Hepartment of Community Affairs
Florida Housin1! Finance Corporation
State] lousing ImtlatlVCs PrutnerslllP Progrml1 (SH]P)
State Housmg Initiatives Partm:rship Progra111 (SI1] P)
State] lousing Illltiatives Partnership I'rogrmn (SH]P)
State Housll1g ]l1ltwtlves Partnership Program (SlllP)
52901
52901
~2 901
:'2l.JOI
Total Florida Housing Finance Corporation
174
01'05-136
$
'f'1
Expenditures
319,422
319.422
05COI
A8119
](;8-07
]Ci8-09
576,570
]04.943
54,984
19,250
74,234
4600001 ] 44
97,250
852,997
06-PJ,C-04
07-PLC-04
300,11110
300,000
600,000
05-S 1'-12
06-S ]'-12
07-S ['-12
08-ST-12
!'IIO
]42,628
24,993
33,(116
201,447
OX-CUC-OJ
9,239
810,687
08-BG-24-09-21-01-318
07-EC-33-09-21-01-486
OSCP-04-09-21-0 1-126
102,934
],5]0.094
8,400
1,621,428
FY 06
FY 117
~'Y 08
FY 09
48,158
1,893,340
2,955,243
647,669
5,544,411
( Contmued)
Collier County, Florida
13A
,
,
Schedule of Expenditures of
Federal A wards and State Projects
For the Fiscal Year Ended September 30,2008
Federal or State GrantorlPass-Through Grantor Program Title
CFDA #/
CS1"A #
Grant/Contract Number
Expenditures
Florida Department of Transportation
Commission for the Transportation Disadvantaged (CTD)
Trip and Equipment Grant Program
Commission for the Transportation Disadvantaged (C'ID)
Trip and Equipment Grant Program
Total CSF A
55.001
AOT48
$
467,749
55001
AP62 I
151,813
619,562
Commission for the Transportation Disadvantaged (CTD)
Planning Grant Program 55002 AOR72 10,738
Commission for the Transportation Disadvantaged (CTD)
PlaImmg Grant Program 55.002 AP647 9,121
Total CSF A 19,859
Aviation Development Grants! Marco MitigatIOn 55004 AI526 167,155
Aviation Development Grants I Marco Land Acquisition 55004 AI935 44,542
A vialion Deve]opment Grants / ]mmokalee Master Plan Study 55004 ANF46 220
A viation Development Grants / Marco Master Plan Study 55004 ANF50 1,347
Aviation Development Grants! Marco Mitigation Phase II 55.004 ANHI7 10,462
Aviation Development Grants / Everglades Taxiway 55.004 ANHI9 3,367
A vlatmn Development Grants! Marcu Taxiway "C" Phase I 55004 AOF09 10,917
Aviation Development Grants / Imk Emergency Uencrator 55.004 AOFIO 30,860
Aviation Development Grants / Marco Apron Phase I & II 55004 AOK80 127
Total CSF A 268,998
County Incentive Grant Program / PD&E Study SR82 55.008 419950-2-22-0 I 102,839
Public Transit Block Grant Program 55.010 AM350 160,619
Public Transit B]ock Grant Program 55010 AOW93 234,500
Total CSFA 395,119
Public Transit Service Development Progranl / Red Route 55.012 AOK37 106,655
Toll Facilites Revolving Trust Fund / Jolly Bridge Feasability Study 55.019 ANY74 225,363
Transportation Regional ]ncentlve Program! CR 951 GCi to ]mk 55.026 420991-1-58-01 1,751,687
Total Florida Department of Transportation 3,490,081
Florida Department of Children and Families
Total Florida Department of Children and Families
85,221
85,221
Homeless Challenge Grant / CuC
60014
HFZ23
Florida Department of Health
County Grant Awards / f~mergeJl(;y Medica] ServIces
County Grant Awards / Emergency Medical Services
64005
64005
C6011
C7011
Total Florida Department of Health
130,578
41,406
171,984
Florida Department of Elder Affairs
Area Agency on Aging fOf Southwest F]orida, Ine:
Home Care for the Elderly (HCE)
Home Carc for the Elderly (HCE)
Tota] CSFA
169
4,007
4,176
65001
65001
liCE 20308
liCE 311/312.20307
175
(Continued)
-~~,_.
-
----_._,-
Collier County, Florida
13A
1'1
~
Schedule of Expenditures of
Federal A wards and Slate Projects
For the Fiscal Year Ended September 30, 2008
Federal or State Grantor/Pass-Through Grantor Program Title
('FDA #1
CSFA #
Grant/Contract N urn ber
Expenditures
Mzhelmer's Respite SClvlces (ADI) 65004 AD! 203.07 $ 04.600
Alzheimer's Respite ServICes (AD!) 65 (J04 ADI 203 08 17,863
Alzheimer's Respite ServIces (AOI) 65004 AD] 203 06 14,720
Total CSFA 127,183
Commumty Care for the Elderly (CCEl 65010 CCL 20307 579,273
Community Care fur the Elderly (<,eEl 65.(j]() CCE 203.08 40,673
Total CSFA 619.946
Total Florida Hepartment of Elder Atfairs 75])04
Florida Fish and Wildlife Conservation Commission
1- lunda 80atmg Improvement Program 77,006 06163 20,000
Total Florida Fish and Wildlife Conservation Commission 20,000
Florida Deoartment of Juvenile Justice
Delinquency Prevention;' TRAC SO 029 DP-576 8Y,692
[)e11nquency Prevention./ FrRAC XO tl2l} CS-120 69,021
Total Florida Department of Juvenile ,Justice 158,713
TOTAL EXPENDlTllRES OF STATE FINANCIAL ASSISTANCE
$ 13,826,248
[76
13A
,~,
Co"
. "-'",
." "
,
,
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects
Year Ended September 30, 2008
1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and State Projects (the
Schedule) includes the Federal and State grant activity for Collier County, Florida (the County)
and is presented on the modified accrual basis of accounting for expenditures accounted for in
the governmental funds and the accrual basis of accounting for expenditures in proprietary funds,
Under the modified accrual basis, revenue is recognized if it is both measurable and available for
use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if
measurable. Under the accrual basis, expenditures are recognized in the period liabilities are
incurred,
The information in the Schedule is presented in accordance with the requirements of U,S, Office
of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, and Section 215.97. Florida Statutes, Therefore, some amounts
presented in the Schedule may differ from amounts presented, or used in the preparation of, the
basic financial statements for the fiscal year ended September 30, 2008.
2. State Revolving Funds
Reconciliation of State Revolving Funds (CFDA# 66A58 and CFDA# 66A68) expended to cash
received during fiscal year 2008:
Expenses reported on Single Audit Schedule
Reimbursements received for prior year expenses
Retainage timing differences, net
Less current year expenses that have not been reimbursed
Total State Revolving Fund reimbursements received
$ 9,198,256
788,200
52,208
(8,290,529)
$ 1,748,135
3. State Infrastructure Bank Loan
The County received a $12,000,000 Slate Infrastructure Bank Loan from the Florida Department
of Transportation in fiscal year 2008 for construction of the I-75/Immokalee Road interchange.
The Florida Department of Transportation included this project with their concurrent widening of
1-75 and retained the loan proceeds to fund the project Accordingly, the County's expenditures
for purposes of reporting on the Schedule consist of loan repayments only as no proceeds were
received under the loan and no project expenditures were incurred or paid directly by the County,
0902.)0]2557
177
--._,-,._~._-~~
.
- ,.,._--~_>...
_.~.~._..'_.~",~_,".n'~~~.~..
._"~,._._~
Collier County, Florida
1 3 A'"
Notes to the Schedule of Expenditures of Federal
Awards and State Projects (continued)
3. State Infrastructure Bank Loan (continued)
As of September 30, 2008, the County recognized $12,000,000 in loan proceeds and construction
in process in the basic financial statements, However, no amounts have been reflected in the
Schedule as no loan repayment expenditures have been made during fiscal year 2008. The
repaymenl schedule for this loan is as follows:
Payment Date
Principal
Interest
Total
10/1/2008 $ 1,957,377 $ 82,623 $ 2,040,0000
10/1 12009 1.839,148 JOO,852 2,040,0000
10/1 001 0 1.875,930 164mO 2,040,000
10/1/2011 1,913,449 126,551 2,040,000
10/1/2012 4,414,096 88,282 4,502,378
$ 12,000,000 $ 662,378 $ 12,662,378
4. Subgrant Awards
The following subgrant awards were made by Collier County during fiscal year 2008:
Program Jille
CFDA/CSFA
Number
Subgrant
Amount
Federal:
Community Development Block Grant
Community Development Hlock Grant 1 State's
Program
Emergency Shelter Grant
Supportive Housing Program
Homc Investment Partnerships Program
State:
Stale Housing Initiatives Partnership Program
Homeless Challenge Grant
IVl8
1,209,862
14228 448,025
14.231 98,012
14.J35 316,163
14,239 461,595
52.901
60014
181,350
85,221
D90:;'-I(H2557
178
Collier County, Florida
13A
j
Notes to the Schedule of Expenditures of Federal
A wards and State Projects (continued)
5. Contingency
The grant revenue amounts received are subject to audit and adjustment If any expenditures or
expenses are disallowed by the grantor agencies as a result of such an audit, any claiIT\ for
reimbursement to the grantor agencies would become a liability of the County, In the opinidn of
management, all grant expenditures are in compliance with the terms of the grant agreements and
applicable federal and state laws and regulations,
0902-1032557
]79
.._------,, -
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, ,.'M_.____,' .. '_.
.,..,;_.~-_."..'
"'-,~
. '" _~_~,.",~_"',_",__M'_.,,. _'_' _ ~..,..,.,_____ "__"~'_'" "...
13A
,.-
,..
..
.
'~."
Collier County, Florida
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2008
Part I-Summary of Auditor's Results
,
Financial Statements Section
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness( es) identified'l
Significant deficiency(ies) identified that are not
considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Federal Awards and State Projects Section
Inlernal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesses'l
Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required to be
reported in accordance with section ,5 I O(a) of OMS
Circular A-133, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules of the Audilor General, State
of Florida'!
()')(Jl.IO.)2557
180
Unqualified
Yes
x
No
x
Yes
None reported
Yes
x
No
x
Yes
No
_~ Yes None reported
Qualified for the Community
Development Block Grant Program
(CFDA# 14,218), the Home Investment
Partnerships Program (CFDA# 14,239),
the State Criminal Alien Assistance
Program (CFDA# 16,606), and the
State I lousing Initiatives Partnership
Program (CSFA# 52,901); and
Unqualified for all other major
programs
x
Yes
No
Collier County, Florida
13A
i
Schedule of Findings and Questioned Costs (continued)
Identification of major federal
programs and state projects:
Federal Programs
CFDA Number
Federal Aeency/Name of Federal Proeram
16,606
U.S, Department of Housing and Urban Development:
Community Development Block Grant Program (COB G)
Home Investment Partnerships Program (HOME)
Community Development Block Grant 1 State's
Program (DRI)
U,S, Department of Justice:
State Criminal Alien Assistance Program (SCAAP)
U,S, Department of Transportation:
Highway Planning and Construclion
Federal Transit Cluster
u'S, Environmental Protection Agency:
Capitalization Grants For Drinking Water State
Revolving Funds
U,S. Department of Homeland Security:
Hazard Mitigation Grant
14,218
14,239
14,228
20.205
20,500/20,507
66A68
97,039
State Projects
CSF A Number
State AeencylName of State Project
52,901
Florida Department of State and Secretary of State:
Public Library Construction Program
Florida Housing Finance Corporation:
State Housing Initiatives Partnership Program
(SHIP)
Florida Department of Community Affairs:
Local Emergency Management and Mitigation
Initialives
45,020
52,010
Dollar threshold used to distinguish
between Type A and Type B programs:
. Federal Programs
$ 711,203
$ 414,187
. State Projects
Auditee qualified as low-risk auditee?
Yes
x
No
OY02-1032557
181
- -'.
._.'_._.M...._....._.".__
,._"-=,, - .._-,-.,,_._~.,,_.., "~',~-
Collier County, Florida
13A
~
~~
Schedule of Findings and Questioned Costs (continued)
Part II-Financial Statement Findings Section
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts,
violations of provisions of contracts and grant agreements, and abuse related to the financial
statements for which Government Auditing Standards requirc reporting,
Finding 2008-0
Financial Reporting
Condition
In connection with our audit we noted a financial reporting difference that required an audit
adjustment to restate the fiscal year 2008 beginning net assets for the County Water and Sewer
enterprise fund and the entity-wide business-type activities by approximately $1,5 million related
to planning costs that had been inappropriately capitalized in prior periods, During the 2008
fiscal year end close process management comprehensively evaluated cosls capitalized as work
in proccss through fiscal year 2007 and determined thal planning costs lhat could not be
reasonably associated with specific assets should not have been capitalized,
This misstatement resulted from financial reporting deficiencies related to the capitalization
process that had been noted in prior audit reports, The County has multiple departments building
and incurring costs lhat can be capitalized and costs that are operating in nature, As such, it is
critical that the County continue to improve financial reporting controls in order to ensure costs
are not inappropriately capitalized,
Recommendation
We recognize the County has put some controls in place around the capitalization of costs and
the review of these capitalizations, We recommend that management continue to review and
improve its control and moniloring activities related to its capital assets and that such
enhancements also involve other county departments that are vesled with the responsibility of
administering capital assels,
lvlanagement's Response and ('urreclive Action Plan
Management concurs with this finding and is committed to the further enhancement of its
capitalization procedures, particularly as they relate to construction work in process, The
County's procedures, put into place as a result of the fiscal year 2007 audit, identified and
addressed the issue discussed above for all county departments that administer capital assets,
0902-11132557
182
Collier County, Florida
13A
'ri1
';j
"
Schedule of Findings and Questioned Costs (continued)
Part Ill-Federal Awards and State Projects
Findings and Questioned Costs Section
This section identifies the audit findings required to be reported by Circular A-133
section ,510(a), Section 215,97, Florida Statutes, and Chapter 10,550, Rules of the Auditor
General, State of Florida, such as material weaknesses, significant deficiencies, and material
instances of noncompliance, including questioned costs, as well as any abuse findings involving
federal awards or state projects that are material to a major program,
Finding 2008-1
Federal/State Program Information
Federal Agency: US Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) - CFDA No, 14,239
Community Development Block Program (CDBG) - CFDA No, 14,218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSF A No, 52,901
Criteria
Allowable Costs: Compensation for personnel services rendered in connection with Federal
awards must be documented and supported as described in OMB Circular A-87, Cost Principles
jor State, Local and Indian Tribal Governments (A-87). Additionally, pursuant to the SHIP
Program Manual, administrative costs for the SHIP state program should also be in conformance
with A-87, According to A-87, the standards regarding time distribution are in addition to the
payroll documentation and require the following:
. Charges to Federal awards for salaries and wages, whether treated as direct or indirect
costs, will be based on payrolls documented in accordance with the generally accepted
practice of the governmental unit and approved by responsible official(s) of the
governmental unit
. Where employees are expected to work solely on a single Federal award or cost
objective, charges for their salaries and wages will be supported by periodic certifications
that the employees worked solely on the program for the period covered by the
certification, These certifications will be prepared at least semi-annually and will be
signed by the employee or supervisory official having first-hand knowledge of the work
performed by the employee.
0902-1032557
183
...-,..,...-.---..-
. ,,--- .
-
--.--..-.-..
._-"-----""""."'.~
"--'-'--",
Collier County, Florida
13A
''I
,
Schedule of Findings and Questioned Costs (continued)
. Where employees work on multiple activities or cost objectives, a dislribution of their
salaries or wages will be supported by personnel activity reports or equivalent
documentation which meels the following standards (unless a statistical system or other
substitute system has been approved by the cognizant Federal agency):
a) must reflect an after-the-fact distribution of the actual aclivity of each employee,
b) must account for the total activity for which each employee is compensated,
c) must be prepared at leasl monthly and must coincide with one or more pay periods,
and
d) must be signed by the employee.
e) Budget estimates or other distribution percentages determined before the services are
performed do not qualify as support for charges to Federal awards but may be used
for interim accounting purposes,
Condition/Context
We noted that for the majority of fiscal year 2008, the County's documentation supporting
payroll allocations for employees that work on multiple grants did not meet federal standards as
described in OMB Circular A-87 above. The County has used a Personnel Activity Report
(P AR) to allocate payroll salaries for employees who work on multiple activities, These reports
are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the
employees are expected to work on a grant. The PAR does not show the total activity for which
an employee is compensated and does not require the employee's signature,
The County's Department of Housing and Human Services (the department responsible for the
administration of the HUD grants) initiated a timesheet process in fiscal year 2006 whereby
employees in the department indicalc the projects (HOME, SlllP, or CDBG) to which their time
relates each week. These time sheets are signed by the employees and supervisors and kept in thc
department for intcrnal control purposes. For the majority of fiscal year 2008, these time sheets
were not provided to the County's payroll department to adjust the allocation of payroll costs
from the estimale as indicated in the annual PAR form to actual time spent Thus, there is not an
"after the fact" accounting based on actual acli vily,
Questioned Costs
Total salaries and related costs arc summarized as follows:
HOME (CFDA # 1039)
CDBG (CFDA # 14.218)
SHIP (CSFA # 52,901)
$ 75,066
$ 373.204
$ 2)0,576
0902-I012S57
184
Collier County, Florida
13A
l~
, \1
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
The PARs and time sheets used do not meet the requirements of OMB Circular A-87 with respect
to the documentation supporting the allocation of salaries and related costs for the majority of
fiscal year 2008, The payroll charged to a grant was based on the PAR, or budgeted amount, and
there was no process in place to compare the PAR percentage used by the payroll department to
allocate costs during the majority of the year to the actual time incurred by the employee based
on the timesheets, Additionally, PAR reports do not include the employee's signature and are
completed annually; however, for employees who work solely on one grant, certification forms
are required to be completed at least semi-annually.
Recommendation
We recommend that the County continue to use the timesheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each timesheet In addition, the County
should implement a process to provide the time sheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the-fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to lhe actual amount (based on the time sheets ) should be made, Alternatively, the payroll
department could charge payroll costs to the grants based on actual time sheets submitted weekly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
peri od,
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant
Views of Re,lponsible Officials and Planned Corrective Action
This finding has been resolved effective July 1,2008, All grant staff are required to complete bi-
weekly time sheets indicating the amount of hours spent on each grant This time sheet is signed
by the employee and the employee's supervisor. Journal entries are then made by fiscal staff to
charge actual time and effort worked to the appropriate grant In an effort to mitigate this finding
even further, effective January I, 2009, the Human Resources department will process bi-weekly
time and effect entries for all Housing and Human Services grant staff Staff will continue to
complete their bi-weekly timesheets. The time sheets will be sent to Human Resources to enter
the actual time into SAP prior to the payroll actually posting to SAP, This will allow for actual
time spent to be charged directly to the appropriate grant in SAP, thereby eliminating the need to
process journal entries at a later date,
0902-1032557
185
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Collier County, Florida
13A
'~"
..'"
..
Schedule of Findings and Questioned Costs (continued)
Finding 2008-2
Federal Program Information
U.S, Departmenl of Justice
State Criminal Alien Assistance Program (SCAAP) -- CFDA No. 16,606
.
Criteria
Reporting: The County applied for the fiscal year 2007 SCAAP grant and received the award
funds during fiscal year 2008. The liscal year 2007 SCAAP reporting period is from July 1,2005
through June 30, 2006. Applicants provide correctional ofJicer staffing and salary costs, the total
of all inmate days, and details about eligible inmates housed in their correctional facilities during
lhis 12-month reporting period, Using tinancial data supplied on the application, including each
applicant's annual correctional oHicer salary costs, the award amount is determined pursuant to
an established fomlUla,
The "FY 2007 SCAAP Guidelines" indicates the following with respecl to the "Correctional
OfJicer Salary Calculation:"
"Salary information reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-lime correctional olIicers and others who meet the SCAAP
definition, The reported sum should total the jurisdiction' s actual salary expenditures for the
reporting period, not an estimate or average, Correctional offieer salary costs may include
premium pay for specialized service, shift ditTerential pay, and fixed-pay increases for time
in service, It may also include overtime required by negotiated contracl, statute, or regulation
such as union agreements, contractual obligations. and required post staffing minimums,"
In the "FY 2005 SCAAP Guidelines," the last sentence above made reference to benefits and
stated that correctional officer salary costs "may also include employee benetits and overtime
required by negotiated contract, statute, or regulation (e,g., union agreements, contractual
obligations, required post stafJing minimums, etc), OlIicc of Management and Budget (OMB)
Circular A-87 (wwvv,whiteholJse.ggv/Qmb/cir:~lJlars/,lO~7/toc,l}lml) provides general guidance on
how benefits are defined for units of government" However, the FY 2006 and FY 2007 SCAAP
Guidelines omitted this reference and do not provide any mention of benelits being a qualirying
oflicer salary cost
As noted in our prior year finding number 2007-07 in the accompanying "Schedule of Prior
Findings," we contacted the Department of Justice (DOJ) in the prior year for clarification based
on the salary definition in the FY '006 SC AAP award and were informed that "only actual salary
costs, reglllar salary or overtime required by either contractual agreement or written policy. were
allowable costs l'or the FY 2006 SCAAP applications." There was no change in the salary
definition from the FY 2006 SCAAP award to the FY 7007 SCAAI' award as noted above.
0902-1()32~57
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1
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Condition/Context
In addition to overtime which appears to be allowable based on the information stated above, the
County included wage benefits (i,e, incentives, training costs, retirement, group life and health
insurance, and workers compensation) totaling $6,5 million in the calculation of total
correctional salari~s reported in the SCAAP grant application for the FY 2007 SCAAP grant
Also, the number of certified correctional ofticers employed during the reporting period reported
in the application of 321 was overstated by 65 due to vacant positions being erroneously
included in the amount submitted in the application,
Questioned Costs
Undeterminable
Cause
We were informed by representatives of the Collier County Sheriff s Office (Sherift) that in
connection with their FY 2005 SCAAP grant application they verbally communicated with the
head of SCAAP in Washington D,c' who stated that benefits were an allowable salary cost, and
that the rules had been recently amended to provide for the inclusion of overtime and benefits
which were previously not allowable. Additionally, the Sheriff provided documentation
indicating that beginning with the FY 2005 SCAAP grant, the Sheriff began including allowed
overtime as well as benefits and they so informed the DOl via an electronic submission of an
explanation for the increase in salary costs from the prior year's application which exceeded
15%. The application for the FY 2005 SCAAP grant was accepted by the DOl. There is no
documentation in the SCAAP guidelines and related materials of the change in rules as described
with respect to the FY 2006 SCAAP grant.
Effect
The award amount received for the FY 2007 SCAAP grant would have been impacted by the
amount of benefits included in the salary cost total reported on the grant application.
Recommendation
We understand from the Sheriffs personnel that benefits were appropriately excluded from the
FY 2008 SCAAP award application, In the fUlure, we recommend that the Sheriff review
program guidelines and contact the grantor agency if reporting criteria are not clearly stated or if
clarification is needed in interpreting information contained in the program guidelines. Written
documentation from the grantor agency should be retained to support any such correspondence,
Additionally, a thorough review of future applications should be made in order to detect potential
errors such as with respect to the number of correctional officer positions reported as noted
above.
0902-]U32557
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13A
'It
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials and Planned Corrective Action
As stated in the recommendation, the calculation was changed for the FY2008 application, We
concur with this recommendation to contact the grantor agency in writing, if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines. We do believe, having deal1 with this grant for many years, that there have
been years in which the criteria for calculation could be interpreted differently by differenl
parties, Documentation has not always been clear in establishing guidelines,
Finding 2008-3
Federal Program information
Federal Agency/Program:
U,S. Department of Housing and Urban Development (HUD): Community Development Block
Grant / State's Program (DR!) - CFDA No. 14,228
U,S. Department of Transportation: Highway Planning and Conslruction Federal
Transit Cluster- CFDA No, 20,500/20,507
Criteria
Procurement, Suspension and Debarment: Non-Federal entities are prohibited from contracting
with or making subawards under covered transactions to parties that are suspended or debarred
or whose principals are suspended or debarred, All nonprocurement transactions (Le" subawards
10 subrecipients), irrespective of award amount, are considered covered transactions, When a
non-federal entity enters into a covered transaction with an entity al a lower tier, the non-federal
entity must verify that the entity is not suspended or debarred or otherwise excluded. This
verification may be accomplished by checking the Excluded Parties List System (EPLS)
maintained by the General Services Administration (GSA), collecting a certification from the
enlity, or adding a clause or condition to the covered transaction with that entity,
Condition/Context
Al1hough the County indicated that its practice is to check the EPLS system, no documentation
evidencing that it had checked the EPLS was maintained, and a certification from the entity was
not collected or clause or condition included in the agreements, as applicable, for certain sample
transactions selected for testing,
Questioned Costs
N/A
(J902.\032557
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Collier County, Florida
13A
c~~
,
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
Internal controls with respect to suspension and debarment were not operating effectively as no
documentation was maintained indicating that the EPLS was checked for the selected contract
vendors or sub recipients, as applicable, Additionally, there was no evidence that the County had
obtained a certification from the entity or added a clause or condition to the contract with the
entity, as applicable. Therefore, we could not verify whether the County met its requirement to
verify that the entities were not suspended or debarred or otherwise excluded,
Recommendation
The County should perform the required verification by checking the EPLS (and documenting
evidence of the verification, when it was performed and by whom), collecting a certification
from the entity, or adding a clause or condition to the contract with that entity in accordance with
the Federal requirements,
Views of Responsible Officials and Planned Corrective Action
Management concurs with this finding.
While the Department of Housing and Human Services (HHS) has always checked vendors
against the EPLS listing; this check did not include non-profit subrecipients, As of December
2008, HHS now requires current audit reports and debarment certification letters for all
subrecipients as part of the grant application submission process. Once awards are made, the
assigned Grant Coordinator is responsible for checking all subrecipients, vendors and contractors
against the EPLS listing, Screen prints ofthe EPLS listing are made to prove verification and are
included in the file. Debarment and audit reports have also been included in the Master File
Checklist which is included in the file folder and reviewed by the Grants Manager,
The Transportation Division has started a new procedure during FY09 where all grant related
purchase orders will be approved by the Grants Coordinator, At the time of review for approval,
the Grants Coordinator performs verification that the vendor has not been suspended or debarred
or otherwise excluded at the EPLS website, The verification is printed and maintained in the
granl procurement file, In addition, current procedures include federal clause language and a
written certification for all federal transil grant procurements over $50,000.
Other steps are taken by the Purchasing Department at the time of advertisement of bids and
requests for proposals that include review of each project to determine if grant funding is
involved and whether there are specific compliance issues related to debarment Forms are
provided to vendors requiring they certifY they are not on the Excluded Parties List
Furthermore, departments managing grants have been provided a link on the Purchasing
Department website to the EPLS website so they can complete lheir own verification,
0902-10.12557
189
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13A
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Finding 2008-4
Federal Program Information
U,s. Environmental Protection Agency
Capitalizalion Grants For Drinking Water State Revolving Funds (SRF) - CFDA No, 66,468
Criteria
Allowable Costs: Effective internal controls over the approval of costs charged to the federal
program are required to be in place,
Condition/Context
We reviewed all of lhe invoices supporting the loan expenditures reported and noted two
invoices for consulting services dated in August 2008 totaling $12,942 included in the August
28, 2008 disburscmenl request that had not been reviewed and approved by the related Project
Manager prior to seeking reimbursement under the loan program, We did not identifY any
discrepancies or exceptions in our compliance testing.
Questioned Costs
N/A
Cause/Effect
The invoices had not yet been entered into the general ledger system or paid at the time that they
were submitted for reimbursement Per review of the invoice. we noted that the charges related
to allowable costs under the terms of the loan program. However, a control deficiency exists as
there was no evidence of review and approval of the invoices for allowability prior to being
charged to the loan program,
Recommendation
We recommend that all invoices be properly reviewed and approved to ensure that they are
allowable costs prior to being charged to the loan program.
(1';)02-]0)2557
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."
Collier County, Florida
13A
t ~~
Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials and Planned Corrective Action
Public Utilities initiated a procedure for grants in December 2008 that now includes adding the
Accounting Technician's name to the SRF transmittal sheet The Accounting Technician verifies
whether all the invoices are properly approved and are paid, After this approval, il goes to the
Project Manager, Director and the Administrator for approval of the disbursement request.
Finding 2008-5
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No, 52,901
Criteria
Reporting:
. In accordance with Section 420,9075(10), Florida Statutes, each county or eligible
municipality shall submit to the Corporation by September 15 of each year a report of its
affordable housing programs and accomplishments through June 30, immediately
preceding submittal of the report,
. Annual reports for the Closeout Fiscal Year (2005/2006), Interim Fiscal Year 2
(2006/2007), and Interim Fiscal year 3 (2007/2008) (the Annual Report) must be
included in the submission to the Corporation.
. The local SHIP administrator's tracking system and annual reports must exactly match
the information recorded in the local city or county's general ledger,
. SHIP administrators, therefore, are required to regularly reconcile their tracking system
with the local finance department's general ledger, They should meet with the director of
their finance department to create a process that will ensure compliance with the single
audit act.
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger, Accordingly, we were unable to validate the amount of expenditures
and program income reported in the Annual Report,
0902-1032557
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Collier County, Florida
13A
1_
Schedule of Findings and Questioned Costs (continued)
Questioned Costs
Unknown
Cause/Effect
The financial information submitted in the annual statulory reports did not agree to and was not
reconciled with the general ledger, This could result in incorrect and/or inconsistent information
between the reports filed and thc underlying financial records and indicates lhat the County may
not be in compliance with the provisions of the SHIP Program Manual requiring that amounts
reported in the Annual Report match the amounts reported in the general ledger, Internal controls
with respect to reporting were not operating effectively,
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being filed
with the State.
Views oIRe.\ponsible Officials and Planned Corrective Action
The J-lHS staff performs a reconciliation of SHIP transactions monthly to ensure that the Annual
SHIP report tracks to the SHIP annual report This procedure was implemented after the last
audit Thc SHIP grant support specialist runs a report at the cnd of each month and reconciles
those transactions to the activity in the SHIP spreadsheet These reporls are maintained
throughout the year and are expected to greatly improve staff s ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
The Department of Housing and Human Services recognizes the importance of reconciling
statutory reports, internal stall reports, and lhe general ledger, Procedures were implemented
following the FY07 audit While these procedures greatly improved the accuracy and
accountability of the statutory and internal staff reports, they did not account for the point-in-
time nature of the statutory reports,
To effectively control for, and document, the complete reconciliation of the statutory reports and
general ledger, the Department of Housing and Human Services will produce a "screen shot"
from within the general ledger software (SAP) to be included with the slatutory report The
purpose oflhis activity is to document the status of funds during the reporting timeframe,
Prior to submitting statutory reports, the Department of Housing and Human Services will
provide a copy of the report to the Clerk of Courts Finance Department for review. Approval of
the statutory report lies with the Board or County Commissioners,
UlJ02-I032,)'ii
192
Collier County, Florida
13A .~
Schedule of Findings and Questioned Costs (continued)
Finding 2008-6
Federal Program Information
U,S, Department of Housing and Urban Development (HUD)
Community Development Block Grant / State's Program (DR!)
CFDA No, 14,228
Criteria
Reporting: Effective internal controls over the review of reports required to be submitted to the
grantor agency are required to be in place.
Condition/Context
This federal grant is passed through to the County from the State of Florida, Department of
Community Affairs (the Department), The grant agreement between the Department and the
County sets forth various reporting requirements, We noted that the County completed the
required reports, as applicable, during fiscal year 2008, and we did not note any discrepancies,
However, there was no evidence that a review as to accuracy and completeness took place for
certain reports submitted to lhe Department (i.e, Contractual Obligation and MBE Report,
Projection of Contract Payments Form and Disaster Quarterly Status Report).
Questioned Costs
N/A
Cause/Effect
Effective supervisory review controls were not in place, Possible errors or omissions in reports
could go undetected if a formal review is not conducted and documented.
Recommendation
The County should implement procedures whereby review by someone other than the preparer is
obtained to help ensure completeness and accuracy of the reports submitted to the Department
Such reviews and approvals should be documented to evidence that the review took place,
0902-1032557
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Collier County, Florida
13A
Schedule of Findings and Questioned Costs (continued)
Views o/Responsible Officials and Planned Corrective Action
The Department of Housing and Human Services has implemented procedures to ensure all
reports are reviewed for accuracy prior to submission to the Department of Community Affairs,
Once prepared, reports are reviewed for errors and/or omissions by the Housing Manager, Once
approved as accurate, the Housing Manager signs the report to indicate completed review,
Copies of signed reports are maintained by staff of the Department of Housing and Human
Services,
1)()ll2-IU12S57
\94
111
13A '1
Collier County, Florida
Schedule of Prior Audit Findings
For the Year Ended September 30, 2008
A. The current status of findings reported for the years ended September 30, 2007 and 2006
related to the County's basic financial statements is as follows:
Finding 2007-01
Fixed Asset Capitalization and Depreciation
Condition
In performing the fiscal 2007 audit of fixed assets, we identified certain differences resulting in
adjustments to the County's basic financial statements, These differences included a prior period
restatement to expense amounts incorrectly capitalized, and reclassifications of amounts
improperly transferred to and from construction-in-progress,
Recommendation
.
The County should revise its construction and fixed assets accounting processes and procedures
to include:
. Review of contract terms for significant projects to determine proper classification of
project costs as capital assets or maintenance expense
. Expanded definition of capital assets
. Enhanced criteria for transfer of projects from construction-in-progress to fixed assets
. Periodic reconciliations of construction-in-progress costs to determine the proper and
timely capitalization of project costs
In addition, we recommend that the County utilize a fixed assel software program to accumulate
construction-in-progress costs, Much of the process involved in reconciling capital construction
costs is labor intensive and could be better automated. These expenditures should be reconciled
during the year rather than performing a comprehensive review at the end of the fiscal year, This
would accelerate this portion of the financial statement close process and reduce thc risk of
manual errors,
OY02-I032557
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Collier County, Florida
13A
.."
Schedule of Prior Audit Findings (continued)
Management Re!>ponse and Corrective Action Plan
The Finance and Accounting Department concurs that all contracts need stringenl initial review
to ensure proper expenditure classification, The initial review of contracts will be taken up as
part of the Board of County Commissioners' agenda review, Criteria for transfer of projects from
construction in progress to depreciable assets will not be purely quantitative for future tiscal
years, Increased reliance will be placed upon County departments and project managers for
information relating to capital asset in service dates, Reconcilement of construction in progress
costs are now occurring on a monlhly basis. The County is currently working on a project
management system that will be fully integrated with the County's existing SAP database,
Construction in progress status information will be captured within that projecl management
system and will be followed with a confirmation process to ensure capital assets are captured
approprialely and etliciently,
Current Status
Fiscal year 2008 capitalizations hom work in process were based upon communications with
various County Departments, Critical analysis of the work in process balances identified
planning costs that had been capitalized and would have been more approprialely expensed (See
Finding 2008-0). Work on the County's new project management system is ongoing and will
benefit future reporting periods.
Finding 2007-02
Accounting for Impact Fec Deferrals
Condition
During fiscal 2007 the Clerk's internal audit department performed a reviewal' the County's
public records, This review identified approximately $5,6 million in impact fee deferrals that had
not been recorded on the County's books, This balance was recorded as a prior period
restatement to increase net assets in the government-wide financial stalements and water and
sewer fund,
Recommendation
The County should review and revise its process for idenlifying impact fee deferrals to ensure
that all contracts are recorded.
1J901-10J2557
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Collier County, Florida
13A
l'l'I!
',~
Schedule of Prior Audit Findings (continued)
Management Response and Corrective Action Plan
Moving forward, a standard process will be instituted to ensure that impact fee deferrals are
communicated by the County to Clerk's Finance. Once both an impact fee deferral agreement
has been recorded in Official Records and the transaction has been posted to the CD Plus system
in Community Development Services, the County will provide notification to the Finance
Department to record the deferral in SAP. In addition, on a quarterly basis Clerk's Finance will
reconcile impact fee deferrals recorded in SAP against the County's list of deferrals to validate
that all deferrals have been recorded,
Current Status
Impact fee deferrals are properly recorded as of September 30, 2008,
Finding 2007-03
Accounting for Nonexchange Revenue
Condition
In 2007 and prior years, the County has recorded funds received for the Emergency 91 I Wireless
Tax as deferred revenue, The criteria for revenue recognition pursuant to GASB 33 related to this
tax had been met
Recommendation
The County should review the supporting documentation for all significant nonexchange revenue
streams to determine when the revenue recognition criteria in GASB 33 have been met
Management Response and Corrective Action Plan
We have reviewed all non-exchange revenue transactions of which we are aware to determine
that the recognition criteria of GASB 33 has been met
Current Status
The Emergency 911 Wireless Tax is not recorded as deferred as of September 30, 2008,
0902-1032557
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Collier County, Florida
13A
t<
"l
.~
Schedule of Prior Audit Findings (continued)
.
Finding 2007-04
Accounting for State Housing Initiatives Partnership (SHIP) Deferred Impact Fee
Receivables
Condition
During our audit of impact fee deferrals. we noted that the County recorded notes receivable of
approximately $2,8 million which represented SHIP-related deferred impact fee credit
agreements entered into in prior years. Under the County's Consolidated Impact Fee Ordinance
(2001-13), the SHIP deferral program allows for the waiver of the impacl fee revenue after 15
years unless an agreement is defaulted. I n the past. the County has nol recorded a reserve for
SHIP notes that are nol expected to be collected,
Recommendation
The County should establish and implement a policy for reserving impact fee amounts that are
not expected to be collected,
Management Re,lponse and Corrective Action Plan
We agree that the asset needs to be recorded at net realizable value and will work with the
department to establish an appropriate allowance for l1nancial statement reporting purposes,
Current Status
SHIP related deferred impact fee agreements are not reported as receivables in the l1nancial
statements as of September 30, 2008,
The following l1nding was reported by the County's prior auditor for the year ended
September 30. 2006,
Finding 2006-1
Condition
The County had historically recorded impact fee revenues as unearned revenue until the County
had met all the restrictions in the enabling legislation related to the fee. Also, the County has not
recorded developer donated properties received in lieu of impact fees in previous years.
0902-1032557
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Collier County, Florida
13 A 1_
Schedule of Prior Audit Findings (continued)
Current Status
Corrective action was taken,
Currently, impact fee credit ledgers are supplied by the Community Development and
Environmental Services Department at the end of the fiscal year, These ledgers map to
Developer Contribution Agreements and list value received, or to be received, in return for
impact fee credits, as well as outstanding impact fee credit balances by Developer Contribution
Agreement (DCA), Rights of way, easements and land are recorded as provided for in the DCA
and construction improvements are recorded as accounts receivable until completion, Capital
assets related to impact fee credit balances are current and booked through September 30, 2008,
B. The current status of findings reported for the years ended September 30, 2007 and 2006
related to major federal programs and state projects is as follows:
Finding 2007-05
Federal Program Information
V,S. Department of Transportation
Highway Planning and Construction
CFDA Number: 20,205
Condition/Context
The same individual is responsible for both completing and approving the reimbursement
requests, The grant coordinator prepares the reimbursement requests and submits them to the
grantor agency for reimbursement However, there is no review of the reimbursement requests
by someone other than the preparer for completeness and accuracy,
Recommendation
The County should ensure review and authorization by someone other than the pre parer is
obtained in order to properly segregate the duties of requesting and approving reimbursement
requests, and to help ensure completeness and accuracy of the requests, Such reviews and
approvals should be documented to evidence that the review took place.
Planned Corrective Action
The following actions will be implemented,
0902.1032557
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Collier County, Florida
13A
."
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Schedule of Prior Audit Findings (continued)
All grant reimbursement requests will be reviewed by the appropriate Official(s),
Far all LAP funded highway projects, the Grants Caordinatar will prepare the reimbursement
request. The Operatians Manager will review and approve the request prior to. submissian to. the
grantar and Finance. The Operatians Manager's review will be dacumented to. provide an audit
trail to. demanstrate segregatian 0.1' duties.
Far all grants ather than LAP, invaices/reimbursement requests will be develaped and/ar
approved by the appropriate project manager and farwarded to. the Grants Caardinatar far
review, approval and processing. The Grants Caardinatar will provide Finance a capy af the
grant invaices/reimbursemenl requests with all recanciliatian dacumentatian attached the same
day the request is submitted to. lhe grantor. Payments tram the grantor will cantinue to. bc
received by the Finance Department.
Current Status
The Grants Coardinator ensures all LAP reimbursement requests have a dacumented review by
the Operatian's Manager, In absence of the Operatian Manager, the Division Administratar
serves as backup. The reimbursement request process identified in the carrective action plan was
put into place late 2007 and continues to be follawed,
Finding 2007-06
State Program Information
Florida Department of Environmental Protection
Statewide Surface Water Restoration and Wastewater Projects
CFSA Number: 37,039
('ondition/C'ontext
The project's granl agreement required that a final report be submitted to. the Sauth Florida
Waler Management District (the "District," pass though entity) by August I, 2007 to. provide a
final summary 0.1' the praject. The final report to the granlor agency indicated "Scheduled Value"
for thc deliverables tolaling $16.5 million, Thc County was not able to provide suppart far or
recancile this total to. the expenditures for the project as recorded in the general ledger system,
Hawever, we were able to. agree the Dislrict's cost share in the fInal report to the grant agreement
and we noted thal the expenditures in the general ledger syslem and in the final repart were
significantly higher than the District's cast share under the grant agreement.
0')02-1032557
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Collier County, Florida
13 A ;fl
Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained. Additionally, a more organized/systematic
approach should be taken to better identify specific project expenditures to be wholly or partially
reimbursed by a grantor agency vs, other general project expenditures,
Planned Corrective Action
At the completion of the project (actually four different projects combined under CFSA Number:
37,039), staff recorded that the incurred costs were equal to the original costs projected in the
grant In fact, the actual costs incurred were greater than anticipated in the grant As a result,
since actual costs exceeded the costs projected in the grant, staff felt that this satisfied the grant
agreement
For the current year and going forward, the Public Utilities Engineering Department Grant
Coordinator will write and submit all interim and final project reports to the grantor, with
guidance on the exact project status from the respective project manager. The Coordinator will
maintain all project documents for each grant Invoices and payment receipts for grant
reimbursements are issued by the Utility Billing and Customer Service section of Public Utilities,
Finally, an Excel spreadsheet will be created to track and identify expenditures associated with
purchase order numbers by grant task,
Current Status
Public Utilities Engineering Department Grant Coordinator wrote and submitted all project
reports to the grantor. The Coordinator has maintained all project documents for each grant
The Coordinator worked with the Utility Billing and Customer Service section of Public Utilities
to invoice for grant reimbursements, An Excel spreadsheet was created and used to track and
identify expenditures associated with purchase order numbers by grant task,
Finding 2007-07
Federal Program InfiJrmation
U,S, Department of Justice
State Criminal Alien Assistance Program (SCAAP)
CFDA Number: 16.606
0902-1032557
201
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- -."._--~---<
-
Collier County, Florida
1 3 Ai I
Schedule of Prior Audit Findings (continued)
Condition/Context
In addition to overtime which appears to be allowable, the County included wage benefits (i,e,
incentives, training costs, retirement, group life and health insurance, and workers compensation)
totaling $5,2 million in the calculation of total correctional salaries reported in the SCAAP grant
application for the FY 2006 SCAAp grant
Recommendation
The Sheriff should review program guidelines and contact the grantor agency if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines, Written documentation from the grantor agency should be retained to
support any such correspondence,
Views ofRe,lponsible Officials and Planned Corrective Action
The Collier County Sheriff's Office (CCSO) concurs with this recommendation to contact the
grantor agency in writing, as is CCSO's practice, if reporting criteria are not clearly stated or if
clarification is needed in interpreting information conlained in the program guidelines, Written
documentation from the granlor agency will be retained, as CCSO normally does, to support any
such correspondence.
The Collier County SheriJr s Ot1ice has receivcd SCAAP awards every year since 1997, SCAAP
guidelines are followed regarding all application submission requirements and eligible and
ineligible application inclusions, Questions arise when SCAAp Guidelines and SCAAP online
application forms have used different verbiage, The Bureau of Justice Assistance' Grant
Management System (GMS) has a "'SCAAp HELP" link in its SCAAp application site that is
available for applicant clarification or to resolve cont1icting statements, SCAAp HELP refers
grantees directly to the applicable year's State Criminal Alien Assistance Program Guideline for
proper direction in resolving questionable grant rules to follow for or in the grant applicalion.
The SCAAI' Guidclines clearly state if a cost is eligible or ineligiblc. For example the FY ")006
SCAAp Guidelines clearly indicate in the "Correctional Omcer Definition" who does and does
not qualify for inclusion in the olliccr count
The "FY 2006 SCAAP Guidelines" with respect to the "Correctional Officer Salary Calculation"
is included in the audit Criteria section above. There is no reference to benefits not being eligible
for inclusion in the "aflua]sa,la,ry_ e)(p~nditureJ;" for the applicalion reporting period, The 2006
SCAAP Guidelines are silent about benefits and management believes that it was reasonable to
include them in the calculation, We do not believe it is logical for benefits to be an allowable
cost for only one year (FY2005) and then to revert back to years prior to 2005,
l)\iu2.I0325S7
"02
Collier County, Florida
13A
1-
,
""
Schedule of Prior Audit Findings (continued)
When comparing the above referenced SCAAP 2006 Guidelines Correctional Officer Salary
Calculation section to the SCAAP 2005 Guidelines Correctional Officer Salary Calculation
section, commencing in 2005, benefits are allowable inclusions in the correctional officer salary
calculation. No SCAAP Guideline after 2005 states that benefits are excluded, The CCSO
maintains DOJ/BJA did not exclude benefits in SCAAP Guidelines after 2005 and that SCAAP
2005 Guidelines supersede 2002 SCAAP Frequently Asked Questions about the eligibility of the
inclusion of benefits in the SCAAP 2006 corrections officer salary calculation,
FY 2005 SCAAP Guidelines indicates the following with respect to the "Correctional Officer
Salary Calculation:"
"Salary information reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
definition. The reported sum should total the jurisdiction's actual salary expenditures for
the applicable reporting period, not a projection, estimate, or average. Correctional officer
salary costs may include premium pay for specialized service (e,g" bilingual officers), shift
differential pay, and fixed-pay increases for time in service, !1l11ay also include em12loyee
be!}efits and overtime required by negotialed contract, statute, or regulation (e,g., union
agreements, contractual obligations, required post staffing minimums, ete). Office of
Management and Budget (OMB) Circular A-87 (www.whitehouse,gov/omb/
circulars/a087/toe.html) provides general guidance on how benefits are defined for units of
government."
To correct any possible questionable DOJ/BJA verbiage in the future, however, management will
request written clarification, as it normally does, trom the DOJ/BJA when there is an unclear
SCAAP directive, contradiction, or what appears to be an omission in SCAAP Guidelines and
not depend on SCAAP Guidelines to be complete. Nonetheless, there is a duty on the part of the
grantor agency (DOJ/BJA) to explicitly state and include specific language in the SCAAP
Guidelines each year about what costs are eligible and ineligibl~ for application content.
Suppressing words in SCAAP Guidelines by DOJ/BJA does not indicale benefit eligibility
exclusion, It should also be noted that grantees and auditors are not privy to the numbers
DOJ/BJA uses in the formula to calculate and determine SCAAP awards which are only partial
reimbursement for the costs associated with the control and custody of criminal illegal aliens.
Grantees must interpret grantor developed applications that may omit important application
sections that would otrer both the grantor and the grantee with application field options to
indicate what is in compliance with grantor guidelines (e.g" a separate field for wages, a separate
field for fringe benefits, a separate field for overtime), Also, there is the concept of fixed
compensation that is not addressed as eligible or ineligible by DOJ/BJA in their SCAAP
Guidelines, and would be applicable to grantees nationwide since fixed compensation includes
all benefits, This would mean that DOJ/BJA would be obligaled, unless explicitly stated about
what would be ineligible, to include wages, fringe benefits, and overtime in actual salary
0902-1032557
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__.._.,'0______ , ~...
. - - --~.". .,.~-,-- - -~---_.._-----,----_..._,----_..._--,,_...__._..__._._-----..----',
Collier County, Florida
13A
1~
.
Schedule of Prior Audit Findings (continued)
expenditures. Management believes the intent of the SCAAP 2005 Guidelines was there to
continue to permit the inclusion of benefits in the correctional officer salary calculation since
DOJ/BJA did not state otherwise in writing.
Current Status
See current year finding 2008-2,
Finding 2007-08
Federal/State Program information
Schedule of Expenditures of Federal A wards and State Financial Assistance Projects
Condition/Context
The Schedule of Expenditures of Federal Awards and Stale Financial Assistance Projects (the
Schedule) provides total federal and state financial assistance project awards expended for each
individual federal and state program, Various revisions were required from the original Schedule
to the final Schedule due to errors and/or omissions that were identified by the County
throughout the reconciliation process which extended for several months or through inquiries we
posed in relation to speci fie grants or variances trom prior year amounts, We were also notified
of a communication the County recently received from a grantor agency indicating that certain
programs were not reported in the Schedule in prior years,
Recommendation
The County should implemenl addilional procedures and internal controls to ensure the
information used to develop the Schedule is accurate and complete and submitted on a timely
basis,
Planned Corrective Action
The County will review its current policies. processes and procedures, Additional procedures and
internal controls will be developed and implemented to monilor the information used to develop
the Schedule for grants and aid programs, A major consideration will be a central coordination
point for the processing and control of reporting requirements,
0901-1032557
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Collier County, Florida
13A
"
.' 1
I: j
Schedule of Prior Audit Findings (continued)
Current Status
The County has developed a training curriculum to both elevate the importance of and to provide
instruction about proper grant management Participation in these courses has been supported by
upper management and employees involved in grants are encouraged to attend. Further, a Grant
Manual was developed and issued in October 2007 and Grant Coordination Policy updates have
been made to provide additional instruction. The County Manager has initiated a new program
called Expect Compliance at Every Level (XCEL), which is a self assessment tool designed to
allow mangers to formally assess and manage business risk, including internal control structures
and operations, All areas of county operations will take part in this initiative; however, the initial
focus is financial processes, including grants, Regular reporting to upper management is
required, resulting in increased quality control and accountability. Additionally, an XCEL
review will be performed specifically to determine an improved process for development of the
Schedule, seeking potential departmenlal and centralized controls to avoid this issue in the
future. The Grants Office will be responsible for accomplishing this analysis in coordination
with XCEL team experts by August 2009 and recommendations will be made to the County
Manager for implementation. Long term, project management enhancements to the County's
SAP system are expected to streamline the process and provide improved accuracy of
information
Finding 2007-09
Federal Program Infiirmation
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No, 14.239
Condition/Context
While the County has a broad standard of monitoring subrecipients, outlined in the One-Year
Action Plan, they do not have detailed policies and procedures in place to carry out such
monitoring, We selected two of the three subrecipients (Big Cypress, Inc. and Collier County
Housing Authority-CCHA) to which HOME funds were disbursed during the fiscal year, At the
time we performed our testing, we noted Collier County had not obtained or reviewed the audit
reports for either subrecipient during the year, County staff subsequently obtained the audit
reports, We also noted that there was no evidence of the monitoring (phone, desk or onsite
reviews) as described by lhe One- Year Action Plan, approved by HUD.
0902-1032557
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Collier County, Florida
1 3 AlII
Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that management document and implement the policies and procedures required
to properly monitor subrecipients, and that management keep records to evidence such
monitoring.
Planned Corrective Action
Staff performs extensive desk and phone monitoring of all subrecipients. Desk monitoring occurs
during the receipt, analysis and processing of each payment request and phone monitoring occurs
on an ongoing basis, In addition, subrecipients provide a monthly status report on projects which
is a type of monitoring, Annual audits are requested from each subrecipient and those noted in
the finding have been received and placed in their tiles,
Management will, however, document and implement more detailed policies and procedures
regarding monitoring and ensure that accurate records are kept as evidence of project monitoring,
Details should include dates of phone and desk monitoring, items covered and any follow-up
needed,
Current Stalus
New desk monitoring policies and procedures have been implemented in FY2008. A desk
monitoring form has been designed and grant coordinators are now monitoring their
subrecipients on a regular basis, Desk monitorings are reported monthly to the HHS Director via
the Grant Section's monthly report. The Grant Operalions Manager ensures compliance by
quarterly sample testing of active files, Feedback is given to the grant coordinators on the
quality, quantity and subject matter of the monitoring, Testing is conducted to ensure all active
files are reviewed by the Grants Operations Manager at least once during the year,
To ensure audit reports are received and reviewed annually, the Grants Section has implemented
Standard Operating Procedure # 1-116 which outlines the process for requesting subrecipient
audit reports, The reports are now requested annually in the December timeframe, to be received
no later than December 31 ,( of each calendar year and reviewed by the assigned grant
coordinator by January 30th, A report is then forwarded to both the HHS Director and the Grants
Operations Manager by the Operations Coordinator, Request date has been added to the master
calendar, Current audil reports and debarment certification letters are now also required for new
subrecipients as part of the grant application submission process, Assigned grant coordinators
are responsible for checking 1,:l'1.S for all subrecipients. vendors and contractors associated with
any funded activity.
0902.103255'
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Collier County, Florida
13A
Ulllll
":'81.
,
Schedule of Prior Audit Findings (continued)
Finding 2007-10
Federal Program Information
U,s. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No, 14.239
Condition/Context
During our testing of the HOME grant and review of the participanls' files that were selected for
eligibility testing, we noted that one participant to whom HOME funds were provided during the
year was assigned an incorrect file number and was actually a participant for the CDBG,
Recommendation
We recommend that management review monitoring controls to ensure that participants are
charged to the correct program and that any errors are identified and corrected.
Planned Corrective Action
I) A journal entry will be processed to post the expenditure to the proper fund account.
2) Controls over data entry will be reviewed, and if necessary, revised,
Current Status
This finding has been resolved as each fiscal staff member responsible for signing off on
expenditures has been given a list of all account expenditures codes for HOME and CDBG and
has been instructed to compare the account string on the requesl for payment, to the account
string on the master accounllist. They have also been instructed to place a check mark or initials
next to the account string on the request for payment to ensure that it has been verified.
0902-1032557
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Collier County, Florida
13A
III
Schedule of Prior Audit Findings (continued)
Finding 2007-11
Federal/State Program Information
Federal Agency: US Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) - CFDA No, 14239
Community Development Block Program (CDBO) - CFDA No, 14.218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSFA No, 52,901
Condition/Context
We noted that the County's documentation supporting payroll allocations for employees that
work on multiple grants did not meet federal slandards as described in OMB Circular A-87. The
County uses a Personnel Activity Report (PAR) to allocate payroll salaries for employees who
work on multiple activities. These reports are prepared annually, al the beginning of each fiscal
year, based on an estimate of the time the employees are expected to work on a grant The PAR
does not show the total activity for which an employee is compensated and docs not require the
employee's signature.
The County's Department of Housing and Human Services (the department responsible for the
administration of the HUD granls) initiated a timesheel process in FY 2006 whereby employees
in the deparlmenl indicate the projects (HOME, SHIP, or CDBG) to which their time relates each
week, These timesheets are signed by the employees and supervisors and kept in the department
for internal control purposes. These time sheets are not provided to the County's payroll
department to adjust the allocation of payroll costs trom the estimate as indicated in the annual
PAR form to actual time spent Thus, there is not an "after the fact" accounting based on actual
activity,
Also, we noted a salaried employee in our sample lor the CDBG program whose payroll is
allocated 100% to the grant: however, semi-annual certifications were not completed as
described above,
(I'jU2.I0325S'
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Collier County, Florida
13A
~t
.~~~
Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that the County continue to use the time sheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each timesheet In addition, the County
should implement a process to provide the timesheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the- fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to the actual amount (based on the timesheets) should be made, Alternatively, the payroll
department could charge payroll costs to the grants based on actual time sheets submitted weekly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
period,
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Planned Corrective Action
I) Housing and Human Services Department will work with Human Resources Payroll staff
regarding the SAP module for time tracking 10 develop a process that will enable us to
charge the actual time incurred by the employee (after the fact) to a grant versus projected
budgeted allocation based on the PAR,
2) Housing and Human Services staff will continue utilizing the timesheet documentation
process developed in FY 2006,
3) Management will review the time sheets quarterly and compare them against cost allocations
to make adjustments accordingly,
4) The PAR forms will be revised to accommodate employee's signature,
5) Departmental policies and procedures will be revised to reflect changes,
Current Status
See current year finding 2008- \,
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13A"
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-12
Federal Program Information
U,S, Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No, 14.239
Condition/ContexT
The HOME Match Reporl was nol submitted for fiscal year 2007, The County was not aware
that this report was required, and did not meet any of the exemption criteria.
In addition, the records used to track the HOME match contributions are not in accordance with
24 CFR 92,504, The tracking spreadsheet utilized by the County shows the matching
contribulions by program but does not indicale the exact amount lhat was contributed. There is
no clear indication in the spreadsheel as to the date the contribution was made to the program
and we were unable to validate the amount conlributed from the spreadsheet to the general ledger
as there are no index numbers or dates in the spreadsheet In addition, the spreadsheet is not
reviewed to ensure compliance with the matching requirements, Upon drawdown of entitlements
the County is required to input the match eontribuled to the project to HUD's Inlegrated
Disbursement and Information System (IDIS), however, IDIS is unable to generate a report that
identifies the matching previously submitted.
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting and recordkeeping
requirements, The County should implement a tracking system to ensure reporting requirements
are being met The County should improve its method of tracking matching contributions to
support the amounts reported in lDIS (including source of funding: index numbers to trace
source to general ledger) and the general ledger,
Planned Corrective Action
1) Housing and Human Services (l~I-IS) staff will review the HOME program guidelines to
further understand the HOME match requirements.
2) HHS stafT has recently developed a tracking system to track the HOME match contributions
in compliance with ')4 CFR 92,504 which is an improvement to the current tracking
mechanism"
QLJ02-1U32557
210
Collier County, Florida
Schedule of Prior Audit Findings (continued)
13A l~
3) The HOME Match Report (HUD-40107-A) will be completed by September 30 of each year
and included in the Consolidated Annual Performance and Evaluation Report (CAPER),
4) Departmental policies and procedures will be revised to reflect the changes made.
Current Status
As stated in the corrective action plan above, HHS fiscal staff has developed a HOME match log
to track all HOME expenditure that require match and where the matching funds originate, With
each drawn down of a HOME project, the corresponding match is documented on the log in
compliance with 24 CFR 92504,
Additionally, the HOME Match Report was completed and submitted with the Consolidated
Annual Performance and Evaluation Report (CAPER).
In addition, the Department has developed a number of matrices that are completed and others
that are scheduled to be completed, Each matrix outlines the Federal program guidelines,
procedures in place, monitoring of those procedures and any action needed to take. A HOME
matrix was developed, reviewed and implemented by the Department
Finding 2007-13
Federal Program Information
U.S. Department oflIousing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No, 14.239
Condition/Context
The County did not submit Form HUD 60002 during the program year, The program received a
grant of which $200,000 went to a subrecipient, Big Cypress, to provide financial assistance with
the construction of low-income housing,
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting requirements, The
County should implement a tracking system to ensure reporting requirements are being met
0902-1012557
211
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-
Collier County, Florida
13 A 11
Schedule of Prior Audit Findings (continued)
Planned Corrective Action
Housing and Human Services will review the HOME program guidelines and update our
checklist to ensure that the Section 3 reports are completed as indicated. Whenever a
subrecipient receives $200,000 or more in CDBG or HOME assistance as it relates to
construction, a Section 3 form will be included in the award package and completed. The report
will be sent to the field otlicc by thc deadline required.
Curre nt Status
HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very- Low
Income Persons form are now part of the agreement award package and reviewed at the pre-
construction meeting for each project over $200,000. The reporting dates have now been
included in the Department's Master Calendar. Submission of the Section 3 report along with a
copy of the Consolidated Annual Performance and Evaluation Report (CAPER) is submitted
annually per HUD requirements prior to Oct 1" annually.
1n addition, the Department has developed a number of matrices that are completed and others
that are scheduled to be completed. Each matrix outlines the Federal program guidelines,
procedures in place, monitoring of those procedures and any action needed to take. A HOME
matrix was developed, reviewed and implemented by the Department.
Finding 2007-14
State Program lnformation
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHlP)
CSFA No. 52.901
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validate the amount of expenditures
reported in the Annual Report. Additionally, we noted that there were no amounts reported for
"program income (interest)" for the 2004/2005 and '005/2006 grant award periods, however,
interest was earned on the unspent portion of the respective advances and should have been
reflected as program revenue.
()902-1032557
'12
Collier County, Florida
13A '1'4
Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being filed
with the State. The County should also establish a separate general ledger account or index code
for each entitlement year for interest income and ensure that interest income is appropriately
captured, reported, and expended as appropriate.
Planned Corrective Action
The HHS staff will perform a reconciliation of SHIP transactions monthly to ensure that the
Annual SHIP report tracks to the SHIP annual report. This is a new procedure that was just
implemented. The SHIP grant support specialist will run reports at the end of each month and
reconcile those transactions to the activity in the SHIP spreadsheet. These reports are maintained
throughout the year and are expected to greatly improve staffs ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
Current Status
See current year finding 2008-5.
Finding 2007-15
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBG)
CFDA No. 14.218
Condition/Context
The County did not maintain documentation indicating that it had checked the EPLS for
subawards to subrecipients. Additionally, there was no certification from the entity or clause or
condition included in subrecipient agreements.
Recommendation
The County should perform verification of subrecipients by checking the EPLS (and
documenting evidence of the verification, when it was performed and by whom), collecting a
certification from the entity, or adding a clause or condition to the contract with that entity in
accordance with the Federal requirements.
0902-1032557
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13A 'II
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Planned Corrective Action
HHS has reviewed the debarment status of every contractor and sub-contractor working on
construction projects in the EPLS system. The department will add debarment certification
criteria to the application process for each sub-recipient. No contract will be executed with a sub-
recipient until debarment review for that entity is performed. The debarment certification will be
added to our checklist for the project file.
Current Status
Debarment certification letters are now also required for new subrecipients as part of the grant
application submission process. A subrecipient folder checklist has now been implemented to
ensure compliance. Assigned Grant Coordinators check all subrecipients, vendors and
contractors against the EPLS listing. Screen Prints of EPLS listing are made to prove
verification and are included in the file.
Finding 2007-16
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBG)
CFDA No. 14.218
Condition/Context
The Form 60002, Section 3 Summwy Report, Economic Opportunities for Low- and Very Low-
Income Persons submitted by the County on January 18. 2008 for the reporting period of July I,
2006 to June 30, 2007 specified that the total amount of award was $2,400,655. However, this
award amount relates to the 2007-2008 entitlement f(1f the program year that began on July I,
2007. Accordingly, it appears that the incorrect award was used to complete this report.
The expcnditures reported in the C04PR26 - CDBG Financial Smnmary report for the period of
July 1, 2006 through June 30, 2007 based on the IDlS system had not been appropriately
reconciled to the County's general ledger.
0902-1032557
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Collier County, Florida
13A '~
Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures that require that financial reports extracted from IDIS
be reconciled to the general ledger and reviewed and approved by appropriate staff on a timely
basis. Evidence of the reconciliation and of the review should be documented and retained.
Performance reports should be thoroughly reviewed for accuracy and completeness before they
are submitted.
Planned Corrective Action
.
1) Housing and Human Services (HHS) staff
regarding report submission requirements.
will review the HUD program guidelines
2) HHS staff is in the process of development a reporting calendar whereas allHUD reports will
be submitted in a timely manner.
3) Report Form 60003, Section 3 SlUllmary Report will be completed and submitted prior to the
deadline of September 30 of each year.
Current Status
Responsibility to ensure correct year data for the Section 3 Summary Report has been assigned
as a coordinated effort to the Grant Section's Operations Coordinator and the Accountant. The
Operations Coordinator is responsible for producing proof of award amount for each subrecipient
award and the Accountant is responsible for ensuring the general ledger accurately reflects the
award amount. The Accountant is responsible for completion of the C04PR26.
A department master calendar was created and BUD report deadlines and other important
deadlines are listed and reviewed by the Grants Operations Manager and the Department
Director.
The Section 3 report was completed and submitted on time.
The following findings
September 30, 2006.
were reported by the County's prior auditor for the year ended
0902-1032557
215
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Collier County, Florida
13 A 1_
Schedule of Prior Audit Findings (continued)
Finding 2006-2
CFDA Number:
Award Numbers:
Award Years:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG)
Home Investment Partnerships Program (HOME)
#14.218,14.239
M-05-UC-120217, B-04-UC-P0016, B-05-LlC-120016
2004,2005
Federal Agency:
Program:
Recommendation
The County has now completed an Environmental Rcview Record for each of the projects
mentioned in this finding. Environmental reviews should be completed for each project prior to
IDIS set-up and prior to expending any grant funds. To ensure completion of environmental
assessments, we recommend implementation of oversight controls. After each ERR is completed,
it should (1) be signed and dated by the appropriate staff member and (2) be reviewed and
approved by management. The approved ERR should then be forwarded to the person
responsible for IDlS set-up (to initiate this process) and subsequently placed in the appropriate
file. Wc recommend the County update its policies and procedures to document all controls and
processes associated with environmental reviews.
.Management '.I' Re,lpvnse
Collier County concurs with this finding and as indicated in the recommendation above has
already implemented additional environmental practices and procedures. Consequently, our
positive completion of all environmental reviews and implementation of additional practices and
procedures has validated all HUD eligible activitics and any and all questioned costs associated
with these and future projects.
U902-10325~7
716
.
Collier County, Florida
13A
.~'
.
,,,
. ,
,
Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services Department has updated the Environmental
Review policies and procedures already in place to reflect the process in a more comprehensive
and detailed manner when completing the Environmental Reviews (ERR). To ensure compliance
with HUD regulations, Collier County will require the appropriate staff members to attend HUD
sponsored Environmental training. Staff has attended HUD Environmental training as required.
Another level of control added to the Environmental Review process is the review of each of the
ERRs by the Grants Operations Coordinator (OOC) after the Grants Management Coordinators
complete ERR documents for their projects/activities to determine the appropriate level of
clearance. The OOC will check the ERRs to makc sure the projects/activities have correctly been
categorized as to the level of environmental review required, therefore assuring that the
established procedures have been followed and all HUD requircd forms are included in the ERR.
Finding 2006-3
Federal Agency:
Program:
CFDA Number:
Award NlUllbers:
Award Years:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend formal policies and procedures with respect to Community Housing
Development Organization (CHDO) certifications. The policies should address initial CHDO
certification as well as CHDO re-certifications, and require completion of an annual checklist.
For initial certifications, the County should have documentation to support each item on this
checklist. Documentation required for re-certitications should also be described. To ensure
proper controls are in place, we recommend coordination of CHDO documentation by one
individual and review and approval by another.
0902-1032557
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Collier County, Florida
13A
'II
Schedule of Prior Audit Findings (continued)
l'vfanagement's Re,ponse
Collier County Housing Development Corporation (CCHDC)
Low Income Community Input: The by-laws of CCHDC include a statement of compliance that
CCHDC would create a "process for low income community input." CCHDC did adopt by
Board motion a formal written process for low income community input. CCHDC's actions since
its inception have reinforced this policy. CCHDC has now adopted an official corporate
resolution on January 11, 2007 validating that their official policy of low income community
input has been in existence since creation of the organization. Low income Board representation:
As part of the County's CHDO Certification checklist process, low-income board participation is
verified by staff. cnmc has always and continues to maintain their required minimum number
of low income board members. CHDO Certification Date: The certification process for CCHDC
occurred over approximately a 9 month period. On December 8, 2005 county staff attended the
Board meeting where the CCllDC adoptcd the two remaining policy items, thus completing all
of the HUD checklist requirements !(lr their CHDO certification status.
Empowerment AlIi<\nc~oLSouthw_t;st Florida (EASfJ
CHDO Low-income community input and CHDO Capacity: EASF has been a State of Florida
certified CHDO since 2002. The State guidelines for CHDO certification are identical to HUD
guidclines. Documentation of State CHDO approval is on file with Collier County. EASF has
been operating in Collier County sincc 7000 which substantiates their capacity and experience
working in the low-income community of lmmokalee.
Big CypresliI-lousing CorpQration
COHO Capacity and Staffing: Big Cypress CHDO operates as a subsidiary of Everglades
Community Association. The staff of the organization is allocated to the parent organization
supporting the cHDO and chargcs their time accordingly. Everglades Community Association
operates 3 certified CHDOs throughout Florida in Collier, Manatee, and Miami-Dade counties
utilizing the same staCfing relationships. Everglades Community Association and its subsidiaries
have developed over 1,000 units throughout Florida. I t is common practice for non profits to
create new corporate entities for each new housing developmcnt. As a result, staff remains on the
parent corporation's payroll for administrative expediency. Big Cypress retains the staff talent by
absorbing the appropriatc cost of their share of thc parent corporation's payroll cost.
U002.IU32557
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Collier County, Florida
13A
Schedule of Prior Audit Findings (continued)
Chilpter 8 of Building HOME (page 8-11) specifically provides for alternative staffing plans that
would allow this staffing arrangement to satisfy the requirement for staff capacity and
experience. Big Cypress Housing Corporation developed and owns the 79-unit Main Street
Village in Immokalee. In addition, Steve Kirk, President and Executive Director received a
national award from the Housing Assistance Council in Washington, D.C. in December 2006 for
his efforts to develop housing for migrant farm workers. In essence, it is our opinion, that this
CHDO meets the HOME requirements in substance over form.
General
Collier County is confident that all three organizations have been appropriately certified as
Community Housing Development Organizations (CHDOs) and that all expenditures are in
compliance with HUD HOME regulations. The HUD CHDO Certification checklist will
continue to be used annually for recertifying all organizations seeking CHDO status in Collier
County.
Current Year Status
The HUD CHDO Certification checklist is used annually to recertity all organizations seeking
CHDO status in Collier County. It is the responsibility of one Grant Coordinator to certity the
CHDO status which is then confirmed by a member of the HHS management team. All
paperwork is contained within the files of the organizations seeking CHDO status.
CCHDC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an BUD CBDO Certification annual checklist. Low-income board
participation is noted on CCHDC's By-laws, corporate resolution and board list.
EASF: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on EASF's by-laws, board resolution, and board list.
BCHC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on Big Cypress' by-laws, board resolution and board list.
()'1()2~l032557
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Collier County, Florida
13A
.~
~'11
Schedule of Prior Audit Findings (continued)
Finding 2006-4
Federal Agency:
Program:
CFDA Number:
Award Numbers:
Award Years:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
We recommend thorough research and review of CHDO requirements prior to entering into a
contractual agreement. Additional review and approval procedures should be developed with
respect to CHDO expenditures to ensure that all conditions are met prior to the release of any
CHDO funds. We recommend formal documentation of all CHDO requirements and controls.
Management's Re,ponse
Collier County reviewed HUD HOME rules and made the determination that the Collier County
Housing Development Corporation (CCHDC) was acting as a developer in the case of the Cirrus
Pointe project. The joint venture agreement between CCHDC and Jim Fields states that both
parties are responsible for the development of the project. This contractual agreement details the
property owner and the CHDO's specific obligations to bring this project from conception to
completion. "The partics desirc to form a joint venture for the development and sale of the parcel
according to this agreement. The partics hereby create a Joint Vcnture for the construction and
sale of 108 residential condominium units on the parcel" In addition, the CHDO will be
involved in efforts to secure additional financing for this project and the prequalification and sale
of the affordable units. HUD encourages CIIDO's to develop partnerships in order to more
successfully develop, construct, finance and sell affordable housing. According to HUD
regulations a CHDO is defined as a "Dcveloper" when it "has a contractual obligation to a
property owner to develop a project." In addition, "In the Developer role, the CHDO carries out
some or all of the principal project development activities." (Building HOME pgs 8-12 and 8-
15). On January 16, 2007, staff requested clarification from the Miami HUD ot1ice on this
matter.
Corrective Action: Attend training on ccllDO's sponsored by the National Association for
County, Community and Economic Development in June, 2007 and update the certification
checklist and policies and procedures to rctlect thc training within 30 days.
09U"1-!032557
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Collier County, Florida
13A
~
Schedule of Prior Audit Findings (continued)
Current Year Status
Because of the transition of staff members in Housing and Human Services, attendance at the
CHDO training in June was not possible. This training was attended by staff and all internal
practices and procedures were updated to reflect any changes from the training. In a conference
call with the Miami Field Office, it was determined that HUD would not render an opinion based
on the audit. For future CHDO contractual agreements, technical assistance will be requested to
clarifY CHDO requirements and all proposed CHDO expenditures will be reviewed to ensure
that all conditions are met prior to the release of funds.
Finding 2006-5
Federal Agency:
Program:
CFDA Number:
Award Number:
Award year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-lJC-120217
2005
Recommendation
We recommend the County review any future joint venture agreements that are associated with
CHDO set-aside funds and ensure that the requirements described above are met prior to the
expenditure of HOME funds.
Management's Response
Collier County will continue to review all joint venture (JV) agreements as an integral part of its
evaluation of HOME CHDO projects and their compliance with HUD regulations.
Current Year Status
Staff attended Joint Venture training on April 19, 2007. The staff members then provided in
house training for the rest of the Grants staff on July 16, 2007. Legal documents continue to be
reviewed by the County Attorney. The contract with the Cirrus Pointe was extended by the
Board of County Commissioners for the work to be completed by 12/09. Staff is continuing to
monitor this project. Although the project is permitted, due to the downturn in the housing
market, no construction has commenced at this time. Housing and Human Services grants staff is
providing technical assistance to the developer to ensure a successful completion of this project.
0902-1032557
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\~'"
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2006-6
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-1202l7
2003
Recommendation
We recommend the County develop and utilize a checklist describing all doclUllentation
requirements for real property acquisitions. Management level personnel should review and
formally approve all significant steps (as described on the checklist) in the property acquisition
process. We also recommend sending any future Uniform Relocation Act (URA) letters via
"certified" mail to document compliance with the above-noted requirements.
Management's Response
With regards to this land acquisition activity, the seller was delinquently notified of all URA
requirements by the co-developer of the project Beneficial Communities. Collier County has
implemented a project checklist requiring management approval certifying URA requirements
have been met by sub-recipients prior to disbursement of funds.
Current Year Status
Staff attended URA training in April 2007. Policies and procedures were updated to reflect the
training in July, 2007. Subrecipients will receive training and technical assistance on policies and
procedures regarding the Uniform Relocation Act. Appropriate paperwork will be on file,
including documentation of U RA letters sent by certified mail.
0902-ltH255l
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13A
.",
"\'
""
...
Schedule of Prior Audit Findings (continued)
Finding 2006-7
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217
2003,2004
Recommendation
As noted in this finding, the County has already corrected this error. This was the first year the
County utilized HOME funds for a tenant-based rental assistance (TBRA) program. In the future,
we recommend careful review of all HOME regulations and guidance when starting
programs/projects that are new to the County.
Management's Response
Collier County has corrected this situation.
Current Year Status
Collier County Housing and HlUllan Services will carefully review all procedures and regulations
before starting new programs. Staff members will attend the requisite training as it is offered and
request technical assistance from the Miami Field Office. The department will scrutinize
administrative costs and ensure these costs are expended from the appropriate categories.
0902-1032557
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Collier County, Florida
13 A lit
Schedule of Prior Audit Findings (continued)
Finding 2006-8
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend the County develop detailed policies and procedures with respect to HOME
match and provide training for all personnel involved in the HOME match process. As part of
this process, the County needs to develop procedures to separately identify SHIP "match" loans
and ensure repayment of these loans is deposited into the HOME Investment Trust Fund local
account. The County should revise and re-Jile its 2006 match report with HUD, based upon the
new procedures.
Management '.I' Response
No HOME activities using SHIP match have been re-paid to Collier County. The situation
described in the recommendation has not occurred. Collier County will develop a detailed policy
and procedure to handle the re-payment of matched funds should the situation ever arise.
Current Year Status
The County uses SHIP funds as match contribution to thc HOME funds. HOME recipients that
receive SHIP match will be identified and setup in lDlS. A written procedure to address this
issue has been completed.
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Collier County, Florida
13A
Schedule of Prior Audit Findings (continued)
Finding 2006-9
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG)
#14.218
B-04-UC-120016, B-05-UC-120016
2004,2005
Recommendation
We recommend Collier County HlUllan Services provide payroll and/or other documentation to
support the cost of providing intake services. Any costs that cannot be supported by underlying
documentation should be returned to the CDBG program.
We recommend the County adhere to the payment and documentation standards established in its
contractual agreements. If changes are considered necessary, the County and its subrecipient
should amend the appropriate sections of the agreement.
The County should carefully consider all doclUllentation and monitoring requirements prior to
entering into subrecipient agreements for medical-related services and other "Public Services"
(as defined by the CDBG program). Such contracts often require significant oversight from both
a programmatic and financial management (docmnentation review) perspective.
Management's Response
All reimbursements made for these projects were made in accordance with the executed
contracts. Management continues to ensure that programmatic and fiscal controls are in place for
all public service projects and other CDBG eligible activities.
Current Year Status
This project was closed out on October 19, 2007. During the monitoring, it was observed that
each file contained sufficient documentation to support the cost of providing intake services.
0902-]032557
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Collier County, Florida
13 A~'
Schedule of Prior Audit Findings (continued)
Finding 2006-10
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
# 14.239
M-05-UC-120217
2005
Recommendation
The County utilized this program income prior to year-end and developed a process to
incorporate program income into its cash draw process. We recommend the County update its
written policies and procedures for cash draws to reflect the requirements associated with
program lOcome.
Management's Response
Collier County concurs with this finding. Staff has developed policies and procedures to address
this situation as described by the auditor in the context/effect section above.
Current Year Status
The County received Home program income !(lr the first time in FY 2006. The income was
spent, but not drawn in lDIS. Procedurcs are in place to ensure all future program income are
spent and drawn in lDlS before entitlement funds are lIsed.
0902-1032557
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Collier County, Florida
13A
Schedule of Prior Audit Findings (continued)
Finding 2006-11
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217
2003
Recommendation
Using reasonable allocation methods, we recommend the County determine and document the
amount/cost of land associated with the 4 single-family units and the amount associated with the
51 apartment units. The County should then either:
(1) require Big Cypress to return the portion of HOME funds associated with the 51-unit
apartment complex; or
(2) amend its contractual agreement with Big Cypress to include the 51 units of rental
housing and impose the applicable "period of affordability" requirements for the
HOME program.
We also recommend the County clearly describe the intended use of HOME funds in its
contractual agreements. The County should not approve and fund HOME expenditures that are
not detailed in the contract "scope of work".
Management's Response
Collier County has amended this contractual agreement effective March 2, 2007 to include the
51 units of rental housing and the applicable period of affordability.
Current Year Status
This contract was amended in March 2007 to include all 55 units. All legal contracts, including
the scope of work, are reviewed by the County Attorney. The scope of work for each project
clearly ret1ects the intended usc of all grant funding.
0902-1032557
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Collier County, Florida
13A'l'1
Schedule of Prior Audit Findings (continued)
Finding 2006-12
Federal Agency:
Program:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG) and
Home Investment Partnerships Program (HOME)
#14.218 and #14.239
M-05-UC-120217. B-05-UC-120016
2005
CFDA Number:
Award Number:
Award Ycar:
Recommendation
We recommend the County continue utilizing the time sheet documentation process it developed
in FY 2006.
Management '.I' Response
Collier County will continue utilizing the timesheet documentation process developed in FY
2006.
Current Year Status
Collier County Housing and Human Services continues to utilize the time sheet documentation
process for all grants staff members. Any new employees hired are also trained on the time sheet
documentation process. Sec also tlnding 2007-11 above.
Finding 2006-13
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-P0217, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend the County carefully review the language of all HOME contracts to ensure
compliance with 24 CFR 92.504. Written agreements should specifically address each provision
as described in this HOME regulation.
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Collier County, Florida
13A
Schedule of Prior Audit Findings (continued)
Management's Response
Collier County will review all contractual agreements to ensure they comply with all
requirements of 24 CFR including 92.504. Regarding the Big Cypress deed restrictions
referenced above, the developer requested an additional change to reflect a revised legal
description. This agreement has been reviewed by the County attorney's office and will be on the
agenda for approval by the Board of County Commissions in July 2007. All agreements are
reviewed by the County attorney's onice. Management will pursue review by HUD source for
compliance with HUD legal sufliciency.
Current Year Status
The contract in question has been amended and approved by the Board of County
Commissioners. Additionally, the contracts from Housing and Human Services have undergone
a rigorous review process by the County Attorney, Purchasing and staff members with the Clerk
of Courts. With the approval of the 2009 Action Plan by the Board of County Commissioners,
contract templates will be included and submitted to HUD by May 15,2009.
Finding 2006-14
Federal Agency:
Program:
CFDA Number:
A ward Number:
Award Year:
U.S. Department of Transportation
Highway Planning and Construction
#20.205
195431
October 1,2005 - September 30, 2006
Recommendation
KPMG recommends that the County implement procedures to ensure that Davis-Bacon Act
requirements are included in contracts and that certified payrolls are obtained from contractors
and subcontractors when required.
0902-1032557
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, '1
,
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Collier County, Florida
13 A ~~
Schedule of Prior Audit Findings (continued)
lo.1anagement's Response
Management concurs with this finding; however, proper steps to assure this problem does not
occur in the future have already been taken. This finding pertains to a construction contract that
was let in 2004. At the time the contract was let, the Purchasing Department was not aware that
this project was to be grant funded and hence did not insert the requirements raised under the
finding. The issue of grant compliance in certain County contracts was brought to our attention
in a subsequent annual audit finding. Purchasing staff formally addressed this issue in March
2006 by modifying the pre-bidding checklist. The modified list includes a determination of the
funding source. If grant funds are part of the revenue for the project, the Purchasing staff inserts
the appropriate additional conditions to the bid and contract terms.
Current Year Status
A new Grants Coordinator with prior grant compliance experience was hired in June of 2007. All
newly executed LAP-funded and FTA-funded contracts continue to include the Davis-Bacon Act
requirements and are reviewed for updates. Currently, there are no nonlocal LAP projects in the
construction phase that would require the collection of certified payrolls. A written procedurc has
been developed for future contracts which require certified payroll collection. This procedure
will include informing contractors at pre-bid meetings and post-award meetings that Davis
Bacon applies, and certified payroll records are a requircment of the project. Internal procedures
include inf()rming project managers and budget analysts of Davis Bacon requirements as well as
identifying which projects require payroll certification compliance. The Grants Coordinator will
monitor collection ofthc reports and be the official holder of record.
Finding 2006-15
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward Year:
U.S. Dcpartmenl of Agriculturc
Watershed Protection and Flood Prevention
#10.904
69-4209-6-1617
October 1,2005 - September 30, 2006
Recommendation
The County should implement proccdures to ensure that special proVIsions are included in
contracts when required by grant agreements.
0Y02-103~557
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Collier County, Florida
13A
'r1
,:J
.
Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this finding; however, the contract was placed by the Purchasing
Department prior to the event that became the basis for the grant. The work was ordered by the
Stormwater Management Department pursuant to the clean up and removal of debris from
County drainage canals following Hurricane Wilma. The contract was placed by the Purchasing
Department several months prior to the event. The contract is available for use by any County
department and is not linked to a particular funding source or end user.
Current Year Status
A new Grants Coordinator with prior grant compliance was hired in June of 2007 and will
monitor all grants within the Transportation Division to ensure projects using grant funded
sources are properly procured following the requirements specific of the grantor.
Finding 2006-16
State Agency:
Program:
CFDA Number;
Award Number:
Award Year;
Florida Department of State
State Aid to Libraries
#45.030
06-ST-12
October 1, 2005 - September 30, 2006
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained.
Management's Response
Management concurs with this finding. This reporting issue is related to staff turnover and
implementation of a new library automation system. Management will ensure that when staff
members are hired, they are trained to run the appropriate reports and cross trained with other
staff members. This will provide additional statl that can run and reproduce the reports when
needed and to show from where the information was derived. Prior to submittal, all reports will
be reviewed by cross trained staff and the director to verify the accuracy and completeness of
information provided. The Library will retain supporting documentation to be made available
after reports are submitted.
0902-l032557
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13A 'l'l
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Director is compiling and reviewing all reports, with assistance from current empfoyees. Library
has been unable to afford additional training from vendor. However, vendor is implementing an
on-line training program that will be evaluated and used if it appears to meet the Library needs
for report training. Library consulted February 23, 2009, with vendor concerning this newly
established on-line training program. Training program roll-out should be complete in Summer
2009. Library Director and one Branch Manager are scheduled to attend a general data reporting
training session on March 25, 2009. Although not specifically about Library's automation
system, the class should provide additional assistance in using standard office programs to
evaluate specific library data. Records and paper trail of information used as basis for reports are
being archived locally. Two additional staff members have been designated to report on and keep
track of particular data elements that are used to compile reports.
Finding 2006-17
State Agency:
Florida Department of Elder Affairs/Area Agency on Aging far
Southwest Florida, Inc.
Community Care far the Elderly
#65.010
CCE 304.203.06, CCE 302.203.05
July 1, 2005 - June 30, 2006 and July I, 2006 - June 30, 2007
Program:
CFDA Number:
Award Number:
Award Year:
Recommendation
The County should ensure authorization by someone other than the preparer is obtained in order
to properly segregate the duties of requesting and approving state reimbursement requests.
iv1anagement '.I' Response
Management concurs with the finding and has implemented practices and procedures to resolve
this issue. The required reporting duties of preparer and approver have now been delegated to
separate individuals. Fiscal support staff has been trained to prepare the expenditure and request
far funds reports and have now accepted this responsibility. The reports will in turn be reviewed
for completeness and accuracy by the accounting supervisor, who will then sign ofT as the
approvcr.
0002-1032557
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Collier County, Florida
13 A'f1
Schedule of Prior Audit Findings (continued)
Current Year Status
The accounting staff implemented the practices and procedures as outlined in the Management's
Response. Fiscal staff has been trained to prepare the reports and now completes them with great
accuracy. The supervisor continues to sign off on the reports for completeness, timeliness and
accuracy.
Finding 2006-18
State Agency:
Program:
CFDA Number:
Award Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2003/04, 2004/05
Recommendation
Reconciliations of both revenue and expense (between the SHIP Annual Report and the general
ledger) should be formally documented, reviewed, and approved. Policies and procedures should
be written to describe the entire reporting process, including reconciliation controls, the manner
in which data is compiled and the documentation to be maintained.
Management's Re,ponse
As indicated in the finding the reconciliation of the SHIP report and General Ledger has been
completed and are correct. The SHIP Annual Report submitted to the State was correct. A policy
and procedure has been implemented rcquiring reconciliations to be completed for the SHIP
program on a monthly basis.
Current Year Status
Staff is working towards a monthly reconciliation of the SHIP program on a monthly basis. See
current year finding 2008-5 above.
Finding 2006-19
State Agency:
Program:
CFDA Number:
A ward Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2004/05
0902-1032557
233
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,13A 'lit
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
The County budgeted for increased SHIP activity in FY 2007 and believes that they will meet the
encumbrance and expenditure requirements as of June 30, 2007. The County periodically
reviews the expenditure and encumbrance levels of the SHIP program. We recommend written
policies that address this process and formal documentation of this control on a quarterly (or
more frequently) basis.
Management '.I' Response
Collier County agrees with this finding, however all 2004/2005 SHIP funds were not only
encumbered but also expended by Dcccmbcr 31, 2006, six months prior to their statutory
expenditurc deadline. Collier County has amcnded its LHAP to allow greater flexibility to
encumber and expend all SHI P funds consistent with statutory requirements. The State of Florida
was notificd ofthc situation prior to July 2006 and agrecd to the County's plan to encumber and
expend the SHIP funds in the fall of2006.
Current Year Status
Due to market conditions, the 2004/2005 funds could not be cncumbered in a timely manner.
Thc State of Florida was notified of the situation and an extension was given. The SHIP
coordinator keeps a log on encumbered and spent activities.
Finding 2006-20
State Agency:
Program:
CFDA Number:
A ward Y car:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#57.901
2003/04, 2004/05, 2005/06
Recommendation
We rccommend the County continue utilizing the time sheet documentation process it developed
in FY 2006.
/vfanagement '.I' Re.\ponse
Collier County
7006.
will continue utilizing the timeshcet documentation process developed in FY
0902"1032557
734
Collier County, Florida
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Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services continues to utilize the timesheet documentation
process for all grants staff members. Any new employees hired are also trained on the timesheet
documentation process. See also finding 2007-11 above.
0902-1032557
235
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Management Letter and State Reporting Requirements
Members of the Board of County Commissioners
Collier County, Florida:
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Collier County, Florida as of and for the year ended
September 30, 2008, which collectively comprise Collier County, Florida's basic financial
statements and have issued our rcport thereon dated February 26, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. We have also issued our
report dated February 26, 2009, on our consideration of Collier County, Florida's internal control
over financial reporting and on compliance and other matters based on an audit of financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550,
Rules of the Auditor General, which govern the conduct of local governmental entity audits
performed in the State of Florida.
The suggestions included in this letter, which resulted from our consideration of internal control,
elVer financial reporting are submitted to assist in improving accounting procedures and controls.
'" CURRENT YEAR FINDINGS AND RECOMMENDATIONS
lere are no current year recommendations.
1
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B. STATUS OF PRIOR YEAR RECOMMENDATIONS
The following is a summary of prior year recommendations that were not repeated in the current
year recommendations, were not implemented, or were only partially implemented by the
County during the current year.
Prior Years' Observation
2007-01 Self insurance
Status
Self insurance reserves are reviewed on an on-
going basis taking current and long range plans
ofthe County into consideration.
2007-02 Inventory pricing
2007-03 Inventory .- expensing low-cost items
2007-04 Accounts receivable
Implemented
Implemented
Discussions are underway regarding the
establishment of ongoing reserves for
uncollected receivables.
7007-05 Program change
Implemented
2007-06 Logical access
The recommendations made are consistent
with our implementation philosophy and
long term plans. Our long term plan favors
two factor authentication rather than
password complexity as a means to
achieve the same end. We will takc the
recommendations under advisement as we
continue our research and planning.
C. OTHER REQUIRED COMMUNICATIONS
The Rules of the Auditor General, Section 10.554 (I )(i)(I), require that we address in the
management letter whether or not corrective actions have been taken to address significan'
findings and recommendations made in the preceding annual financial audit report. The status 0
recommcndations made in the preceding annual tinancial audit is included above.
As required by the Rules oj'the Auditor General, Section 10.554(1 )(i)(2), the scope of our auc
included a review of the provisions of Section 218.415, Florida Statutes, regarding 1
investment of public funds. In conncction with our uudit, we determined that Collier Coun
Florida complied with Section 2] 8.415. Florida Slatutes.
7
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The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in a
management letter any recommendations to improve Collier County, Florida's financial
management, accounting procedures, and internal controls. Current year recommendations to
improve Collier County, Florida's financial management, accounting procedures, or internal
controls are included above.
The Rules of the Auditor General, Section 10.554(1)(i)(4), require that we address in a
management letter any violations of provisions of contracts and grant agreements or abuse that
have an effect on the financial statements that is less than material but more than
inconsequential. The results of our audit disclosed no violations of provisions of contracts and
grant agreements or abuse that would have an effect on the financial statements that is less than
material but more than inconsequential.
The Rules of the Auditor General, Section 10.554(1)(i)(5), require disclosure in the management
letter of the following matters, if not addressed in the auditor's report on internal control over
financial reporting and on compliance and other matters or in the schedule of findings and
questioned costs, and are not clearly inconsequential:
(a) Violations of laws, rules, regulations, and contractual provisions or abuse that have
occurred, or are likely to have occurred, would have an immaterial effect on the
financial statements, and were discovered within the scope of the audit;
(b) Control deficiencies that are not significant deficiencies, including, but not limited to:
(1) Improper or inadequate accounting procedures (e.g., the omission of required
disclosures from the annual financial statements);
(2) Failures to properly record financial transactions; and
(3) Other inaccuracies, shortages, defalcations, and instances of fraud discovered by,
or that come to the attention of, the auditor.
\e results of our audit disclosed no violations of laws, rules, regulations, and contractual
)visions or abuse, no improper or illegal expenditures, and no control deficiencies other than
, internal control recommendations included above.
, Rules of the Auditor General, Section 10.554(1 )(i)(6), also require that the name or official
and legal authority for the primary government and each component unit of the reporting
.y be disclosed in the management letter, unless disclosed in the notes to the financial
ments. In that regard, Collier County, Florida was established under Chapter 107, Section I,
'da Statutes. The legal authority for Collier County and its component units are discussed in
I to the financial statements.
3
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The Rules ojthe Auditor General, Section I 0.554( I )(i)(7)(a), state that a management letter shall
include a statement as to whether or not a local governmental entity is in a state of financial
emergency as a conscquence of conditions described in Section 218.503(1), Florida Statutes.
Management of Collier County, Florida has determined that Collier County, Florida is not in a
state of financial emergency as defined in Section 218.503( 1). In connection with our audit of the
financial statements of Collier County, Florida, the results of our tests did not indicate that
Collier County, Florida is in a state of financial emergency as a consequence of the conditions in
Section 218.503(1).
As required by the Rules oflhe Auditor c;eneral, Section 10.554(1 )(i)(7)(b), we determined that
the financial report for the year ended September 30, 2008 to be tiled by Collier County, Florida
with the Florida Department of Financial Services pursuant to Section 218.32(l)(a), Florida
Statutes, is in agreement with the annual financial audit report for the current audit period.
As required by the Rules oflhe Auditor General, Sections 10.554(1)(i)(7)(c) and 10.556(7), 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.
This report is intended solely for thc information and use of the Board of County
Commissioners, management and the Auditor General of the State of Florida, and is not intended
to be and should not be used by anyonc other than these specified parties.
~T
LL'P
February 26, 2009
4
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ANNUAL DEBT REPORT
(Unaudited)
Pursuant to the Collier County Debt Policy the following Tables and Summary Debt Statement
were prepared for the fiscal year ended September 30, 2008.
Table 1. Calculation of Collier County General Governmental Debt Ratio
Table 2. Calculation of Collier County Enterprise Debt Ratios
Summary Debt Statement for Fiscal Year 2008
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TABLE 2
Calculation of Collier County Enterprise Debt Ratios
For the Fiscal Year Ended Septemher 30, 2008
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Collier County Water and Sewer District:
Total Sales Revenue
Allowance for Funds Prudently Invested
Miscellaneous Revenue
Tota] Operating Revenue
$ 96,216,613
570,684
2,904,543
99,691,840
Non~Operating Revenue
5,724,5 to
Gross Revenue
t05,4t6,350
Less: Operation and Maintenance
Expense (excluding Depreciation)
49,706,694
Net Revenue Available for Debt Service
$ 55,709,656
Total Fiscal Year 2008 Debt Service on Bonds
$ 12,272,149
Net Revenue Debt Service Coverage on Bonded Debt
(100% Required)
454%
Other Pledged Funds:
System Development Fees
Special Assessment Proceeds
$ 9,753,332
659,742
Total Pledged Funds
Available for Debt Service
$ 66, t 22,730
Total Fiscal Year 2008 Debt Service on Bonds
$ 12,272,149
Total Pledged Funds Debt Service Coverage on Bonded Debt
(125% Required)
539%
Net Revenue Available for Debt
Service After Payment of Bonds
$ 43,437,507
Total Fiscal Year 2008 Debt Service on
Subordinated Indebtedness
$ 8,069,375
Calculated Coverage on
Subordinated Indebtedness
538%
Net Revenue Available for System
Purposes
$ 35.368.132
TABLEt
Calculation of Collier County General Governmental Debt Ratio
For the Fiscal Year Ended September 30, 2008
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Bondable revenues, as defined by Collier County Debt Policy:
Current Ad Valorem Taxes
Governmental Impact Fees
Hatf Cent Sates Tax
Developmental Fees
State Revenue Sharing
6th Cent Local Option Gas Tax
5th Cent Locat Option Gas Tax
Constitutional Gas Tax
Seventh Cent Gas Tax
Ninth Cent Gas Tax
Parks and Recreation Fees
Tourist Development Tax
Court Facilities Fees
Communications Services Tax
$ 307,977,046
36,679,020
30,003,927
12,490)00
8,500,145
6,594, t 70
4,974,571
4,130.403
1.753,546
1,407,155
6,707,255
14,795,623
969,046
5,816,640
Total bondable revenues
$ 442,798,847
Fiscal 2008 governmental debt service requirements:
Series 2002 Capital Improvement Bonds
Principal:
Interest:
Series 2003 Capital Improvement Bonds
Principal:
Interest:
Series 2005 Capital Improvement Bonds
Principal:
Interest:
Series 2003 Gas Tax Bonds
Principal:
Interest:
Series 2005 Gas Tax Bonds
Principal:
Interest:
Commercial Paper Program
Principal:
Interest:
$ 2,260,000
1,557,813
1)15,000
t ,686.744
5,265,000
7,302,294
6,030,000
3,464,440
460,000
4,624,838
640,000
t,OI6,592
Total fiscal 2008 governmental debt service requirements
$ 35,622.12 t
Governmental debt ratio of fiscal year 2008 debt service
to bondable revenues (130/0 maximum allowed by policy)
8.04%
Notes:
All revenues are GAAP based accrual, and debt service is based upon current amortIzation tables for
the fiscal year indicated. Debt prepayments arc nOl induded as debt service requirements.
.,.~,
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Summary Debt Statement for Fiscal Year 2008
General Governmental Debt:
The governmental debt ratio increased from 7.5% for fiscal year ended September 30, 2007 to
8.0% for fiscal year ended September 30, 2008. The governmental debt ratio is defined as the
ratio of debt scrvice requirements to total bondable revenues. The major reason for the increase
in the debt ratio was a decrease in bondablc revenues of 12.2%, or $61,668,845. Governmental
impact fec revenues decreased by 56.7% versus last fiscal year, developmental fees were down
by 23.8% and sales tax receipts were 7.9% less than fiscal year 2007. Total governmental debt
service requirements decreased by 5.8% li'om fiscal year 2007 to fiscal year 2008. Collier
County's maximum allowable govcrnmental debt ratio is 13.0%, and the County is below the
.
maximum.
Prepayments totaling $22,621,000 were made on County pooled commercial paper debt. These
prepayments are not shown as part of debt service requirements for purposes of calculating the
governmental debt service ratio.
Total non general obligation borrowings for fiscal year 2008 were $69,391,000, with
$57,391,000 in commercial paper loans and a State Infrastructure Bank Loan of $12,000,000.
Collier County Enterprise Debt:
Currently, the Collier County Water and Sewer District (District) is the only enterprise activity
with bonded debt outstanding. The Collier County Debt Policy does not set a maximum
allowable enterprise debt ratio, but coverage requirements are set by bond covenants. Net
revenues, defined as operating revenues plus non-opcrating revenues less operating expenses,
excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined
as net revenues plus systcm development fees and special assessments must cover bonded debt at
125%. Net revenue coverage on bonded dcbt was 454% and total pledged l~mds coverage on
bonded debt was 539% for fiscal year 2008. Net revenue coverage increased during fiscal year
2008 as operating revenues incrcascd by S.9% and operating expenses decreased by 13.8%, due
to cost saving measures put in place by District managcment and the rcclassification of paymcnt
in lieu of taxes from the operating expcnsc category. Bonded debt service payments incrcased
by )2.3% as the Series 2006 bond issue, closed in December 2006, was outstanding for thc entire
fiscal year. Total pledged funds coverage went down primarily as a result of an 86.5% decrease
in system development fees collected.
The District's calculated coverage on subordinated debt, all State Revolving Fund Loans, is
538%. The total pledged hmds covcrage required by the loan agreements varies between 115%
and 125%.
During fiscal year 2008, thc District borrowed $7.401,552 from the State Revolving Fund
program
13A
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The District does not maintain separate Renewal and Replacement Reserves for its capital
spending program. The District's current strategy of revenue-centric, cost-contained, real-time
capital program management, and its decisions against measured operational risk, were
deliberately designed to manage deferral of capital construction. This responds to market
uncertainty and, therefore, increases the District's outstanding debt coverage. Beginning in
FY07 and throughout FY08, the District, operating in a volatile and uncertain cost and revenue
market environment, deferred with measured operational risk significant levels of spending in
capital improvement projects. The deferred capital expenditures in FY08 alone approximated
$167 million. The District recognized that in the period FY07 through FYIO it would be facing
significant increases in fixed operating costs with declining operating margins. The deferral of
significant capital rehabilitation projects in FY07 and FY08 continues to enhance the District's
liquidity and financial flexibility. These dccisions protect the District's highly favorable bond
rating; avoids the potential of future user-fee rate spikes, and avoids unplanned and costly
borrowing with the associated increases in annual debt service. It also puts the District in the
right financial position to respond whcn the economic environment recovers. However, this
deferral of capital spending has elevated the risk level of everyday operations within the utility.
This risk level is currently acceptable in the balance of the overall mission to stay in operational
and regulatory compliance, meet customer demand, and posture for a best-value future. These
deferrals, however, cannot be considered avoided cost as the deferred projects will need to be
completed within the next three to five years.
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SPECtAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Clerk ofthe Circuit Court
Year Ended September 30, 2008
With Report ofIndependent Certified Public Accountants
OIlI].l001887
-_.~,._".-'-
13A''1!-'
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Financial Statements
Y ear Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants .....................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances _
Governmental Funds....................................................................................................... ..............4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actuaf - General Fund...............................................................................................5
Special-Purpose Statement of Revenues, Expenditurcs, and Changes in Fund Balance~-
Budget and Actual ~.. Court Services Fund...................................................................................6
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -~
Budget and Actual- Public Records Modernization Fund .........................................................7
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - Juvenile Assessment Fund ..........................................................................8
Special-Purpose Balance Sheet - Agency Funds ...........................................................................9
Notes to Financial Statements........................................................................................................l 0
Combining Financial Statements
Combining Balance Sheet - Agency Funds...................................................................................26
Statement of Changes in Assets and Liabilities - Agency Funds..................................................27
Other Reports
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance With Government Auditing Standards ...........28
Management Letter........................................................................................................................30
081 j -IlWj ~1\7
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V,/W"N.VV corn
Report of Independent Certified Public Accountants
The Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund and
the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit
Court (the Clerk), as of and for the year ended September 30, 2008, as listed in the table of
contents. These special-purpose financial statements are the responsibility of the Clerk's
management. Our responsibility is to express opinions on these special-purpose financial
statements based on our audit. The prior year summarized comparative financial information has
been derived from the Clerk's special-purpose financial statements for the year ended
September 30, 2007 and in our report dated March 4, 2008, we expressed unqualified opinions
on the respective financial statements of each major fund and the aggregate remaining fund
information.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Clerk's internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Clerk's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts
and disclosures in the special-purpose financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall special-
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinions.
As discussed in Note 1, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.29, Florida Statutes, and
Chapter 10.577(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the Clerk's
financial position and its changes in financial position, where applicable, thereof, for the year
then ended in conformity with accounting principles generally accepted in the United States.
Additionally, the special-purpose statements present only the Clerk and do not purport to, and do
not, present fairly the financial position of Collicr County, Florida, as of September 30, 2008,
and the changes in its financial position, where applicable, for the year then ended, in conformity
with accounting principles generally accepted in the United States.
0811-1001887
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of each major fund and the aggregate
remaining fund information of the Clerk as of September 30, 2008, and the respective changes in
financial position thereoC and the respective budgetary comparison for the general fund, the
court services fund, the public records modernization fund, and the juvenile assessment fund for
the year then ended in conformity with accounting principles generally accepted in the United
States.
In accordance with Government A uditing Standards, we have also issued our report dated
February 8,2009 on our consideration of the Clerk's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
providc an opinion on the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Our audit was conducted flJr the purpose of jorming opinions on the special-purpose financial
statements. The combining information is presented for purposes of additional analysis and is not
a required part of the special-purpose financial statements. The combining information has been
subjected to the auditing procedures applied in the audit of the special-purpose financial
statements and, in our opinion, is fairly stated in all material respects in relation to the special-
purpose financial statements taken as a whole.
This report is intended solely for the information and use of the Clerk, management, the Board of
County Commissioners of Collier countv. Florida. and the Auditor General of the State of
. .. ,
Florida, and is not intended to be and should not bc used by anyone other than these specified
parties.
t6~y
LLP
February 8, 2009
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13A '~
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - General Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues
Charges for services $ 4,178,500 $ 4,178,500 $ 3,283,635 $ (894,865)
Interest income 16,132,300 16,132,300 32,310,084 16,177,784
Total revenues 20,310,800 20,310,800 35,593,719 15,282,919
Expenditures:
General government:
Personal services 7,188,500 7,270,000 6,306,501 963,499
Operating expenditures 3,378,100 2,776,600 2,014,082 762,518
Capital outlay 518,200 318,200 3,328 314,872
Total expenditures 11,084,800 10,364,800 8,323,911 2,040,889
Excess of revenues over expenditures 9,226,000 9,946,000 27,269,808 17,323,808
Other financing sources (uses).
Transfers in:
Collier County, Florida Board ofCaunty
CommissIOners appropriations 364,800 364,800 364,800
Other funds 37,000 37,000
Transfers out:
Colller County, Florida Board of County
Commissioners:
Distribution of excess appropriations
Dlstnbution of surplus interest (9,590,800) (6,758,300) (24,384,015) (17,625,715)
Tota] other financing 'iources (uses) (9,226,000) (6,393,500) (23,982,215) (17,588,715)
Special item -- Bond Expense (3,552,500) (3,287,593) 264,907
Excess of revenues and other financing
sources over expenditures
Fund balance .~ heginmng of year
Fund balance - end of year $ - $ - $ - $
See accompanymg notes.
0811-1001887
5
"----- ,
13 A 'llt
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance ~
Budget and Actual - Court Services Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues.
Charges for servIces $ 12,O80,5()(1 $ 12,080,500 $ 13,000,945 $ 920,445
Interest income 236,700 236,700 59,404 (177,296)
Total revenues 12,317,200 12,317,200 13,060,349 743,149
Expendltun:s:
General government.
Personal services 9,228J)OO 9,228,000 8,961,905 266.095
Operating expenditures 746,707 774,111 335,721 438,390
Capital Outlay
Total expenditures 9,974,707 10,002,111 9,297,626 704,485
Excess of revenues over expenditures 2.342,493 2,315,089 3,762,723 1,447,634
Other financing sources (uses),
Transfers in from other funds
Transfers out:
Other funds
Distribution of excess court revenue to
the State (2.342,493) (2,315,U89) (3,762,723) (1,447,634)
Total other floancmg sources (uses) (2.342,493) (2,315.089) (3,762,723) (1,447,634)
Excess of revenues and other financll1g
sources over expenditures
Fund balancc- beglllmng of year
Fund balance - end of year $ $ - $ - $
See accompanying noles.
OX11-1001H87
6
13A
~'~
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - Public Records Modernization Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues'
Charges for services $ 1,875,000 $ 1,875,000 $ 990,305 $ (884,695)
Interest income 225,000 225,000 289,395 64,395
Total revenues 2.100,000 2,100,000 1,279,700 (820,300)
Expenditures:
General government:
Personal services 2,057,000 2,057,000 1,659.254 397,746
Operating expenditures 4,905,700 3,483,600 784,239 2,699,361
Capital outlay 4,404,800 5,826,900 1,981,816 3,845,084
Total expenditures 11,367,500 11,367,500 4,425,309 6,942,191
Excess (deficiency) of revenues over (under) expenditures (9,267,500) (9,267,500) (3,145,609) 6,121,891
Other financing sources (uses):
Tranders in from the Collier County, Florida
Board of County Commissioners
Transfers out to other funds
Total other financing sources (uses)
Excess (deficiency) ofrevenucs and other financing
sources (uses) over (under) expenditures (9,267,500) (9,267,500) (3,145,609) 6,121,891
Fund balance - beginning of year 9,267,500 9,267,500 9,415,164 147,664
Fund balance- end of year $ - $ - $ 6,269,555 $ 6,269,555
See accompanying noles.
0811-1001887
7
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13A
'"j
\
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual - Juvenile Assessment Fund
Year Ended September 30, 2008
Variance
With Final
Budget
Budget I'ositive
Original Final Actual (Negative)
Revenues:
Miscellaneous $ uno $ 1.300 $ 27,079 $ 25.779
Interest income
Total revenues 1,300 1.300 27,079 25,779
Expenditures:
General governmem
Operating 100.000 100,000 100,000
Total expenditures 100,000 100,000 100,000
Excess (deficiency) of expenditures over (under) revenues (98,700) (98.700) (n,92t) 25,779
Other fInancing sources
Transfers in from the Collier County, FlorIda
Board oCCounty CommIssioners n,700 98.700 72,921 (25.779)
Total other finanClTlg sources 98,700 98,700 72,921 (25.779)
Exccss (defiCiency) of revenues and other
financing sources o"'er (under) expendItures and other uses
Fund balance - beginmng of year 11,123 11,123
Fund balance - end of year $ $ - $ 11,123 $ 11,123
See accompanymg notes
0811-1001887
8
13A I'
Collier County, Florida
Clerk of the Circuit Court
Special-Purpose Balance Sheet - Agency Funds
September 30
2008 2007
Assets
Cash and cash equivalents
Due from other funds
Total assets
$ 17,848,166 $ 17,273,210
8,846
$ 17.848.166 $ 17,282,056
Liabilities
Due to the Collier County,
Florida Board of County Commissioners
Due to other governments
Due to other funds
Deposits
T otal1iabilities
$
86,359 $
1,349.382
55,536
907,195
41,619
16,277,706
$ 17,282,056
16.412,425
$ 17,848.166
See accompanying notes.
081]-1001887
9
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.
13A
l'~
j
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Clerk of thc Circuit Court (the Clerk) is an elected constitutional
officer as provided for by the Constitution of the Statc 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 (the Corporation) for the court services fund.
The Clerk's budget including thc public records modernization fund and the juvenile assessment
center fund is approved by the Clerk.
The special-purpose financial statements presented include the general fund, special revenue
funds, and agency funds of the Clerk's office. The accompanying special-purpose financial
statements were prepared for the purpose of complying with Section 218.39, Florida Statutes,
and Section 10.557(3), Rules of the Auditor Generalji)r Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor Generalfor Local Governmental Entity Audits, requires
the Clerk to only present fund financial statements. Accordingly, due to the omission of
government-wide financial statements and related disclosures including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of thc Clerk as of September 30, 2008 and the changes in
its financial position for thc year then ended in conlormity with Governmental Accounting
Standards Board (GAS B) Statement No. 34, Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments, but otherwise constitute special-
purpose financial statemcnts prepared in conformity with accounting principlcs gencrally
accepted in the United States..
The financial activities of the Clerk. as a constitutional officer, are included in the Collier
County, r'lorida Comprehensive Annual Financial Report.
The general operations of thc Clerk are funded by fees from third parties, appropriations from
the Collier County, Florida Board of County Commissioners (Board), and interest income.
Pursuant to Section 218.37(2) Florida Statutes, funds remaining in the general fund, at fiscal
year end in excess of amounts expended, arc rcturncd to the Board. Excess rcvcnucs returned to
thc Board are rellected as transfers out in the Clerk's general fund. Court-related operations are
funded by the Statc via charging fees and fines and any surplus is rcturned to the State.
0811-]001887
10
13A 'lI\t
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Clerk. The
focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements for these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets.
The Clerk reports the following major governmental funds:
General Fund- The general fund is used to account for all revenue and expenditures
applicable to the general operations of the Clerk, which are not accounted for in another
fund. All operating revenue not specifically restricted or designated as to use, is recorded in
the general fund.
Court Services Fund -- This fund was established to account for court-related filing fees,
service charges, fines, and court costs of the Clerk as mandated by Section 28.35, Florida
Statutes.
Public Records Modernization Fund - This fund is mandated by Section 28.24(12)(d),
Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and
maintenance of equipment, personnel training, and technical assistance in modernizing the
public records system of the office. Effective July 1, 2004, an additional amount is collected
pursuant to Section 28.24 (12) (e), Florida Statutes, and used exclusively for funding court-
related technology needs.
The Clerk also maintains the following non-major fund:
Juvenile Assessment Fund- This fund was established to account for revenues and
expenditures applicable to juvenile assessments center.
08]1.1001887 11
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13 A 1~
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are
classified as court-related and non-court-related. The Clerk's general fund activity, which is
classified as non-court-related, is funded through service charges for recording instruments and
documcnts into the official records, interest income and through transfers in from the Board.
Excess revenues at the end of the vcar, due back to the Board, are shown as distributions of
-
excess appropriations in the general fund.
Court-related activities are funded by the fees charged by the Clerk as authorized by Florida
Statutes, for maintaining thc County and Circuit Court records, and collecting the fines and fees
assessed by the courts. These court fees are to be used exclusively for funding court-related
operations of the Clerk. The excess of revenues collected over expenditures is returned to the
Florida Clerks of Court Operations Corporation.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the 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 cxpenditures 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 thc current period.
Florida Swtutes provide that the amount by which revcnues and transfers exceed annual
cxpenditures for the general fund be remitted to the Board immediatcly following the fiscal year
for which the funding was provided or following the fiscal year during which other revenues
were recognized. Thc amount of this distribution is rccorded as a liability and as other financing
use in thc accompanying special-purpose tinancial statements.
Section 28.37(4), Florida Statutes, further provides that by January I, each year; for the
preceding fiscal year October I through September 3l1, the Clerk must remit to the Department
of Revenue the cumulative excess of all fees, servicc charges, court costs, and tlnes retained by
the Clerk over the amount needed to mcet the approved budget amounts established by
Section 28.36, Florida Statutes. The amount of the distribution is recorded as a liability and as
-
other financing use in the accompanying special-purpose financial statements.
OSll-IUOIXll7
12
13A
'~
.'
,
,
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in governmental funds are capitalized in the basic financial statements
of Collier County, Florida rather than in the governmental funds of the Clerk.
Additionally, the Clerk reports the following fund type:
Fiduciary Funds - Agency Funds -- These funds are used to account for assets held by the Clerk
in a trustee capacity or as an agent for individuals, private organizations, other governments, and
other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve
measurement of results of operations or have a measurement focus. Agency funds are accounted
for using the modified accrual basis of accounting.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original matunlies of three
months or less. Prior to November, 2007 the cash equivalents included deposits with the Florida
State Board of Administration Local Government Surplus Trust Fund Pooled Investment
Account (SBA). Shares of this investment pool (SBA) are based on the pool's share price, which
approximates fair value. The Clerk has withdrawn all funds from the SBA accounts.
Compensated Absences
Full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of
unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees
receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave,
depending on years of service. Vacation leave and sick leave are included in operating costs
when the payments are made to employees. The Clerk does not, nor is he legally required to,
accumulate financial resources for these un-matured obligations. Accordingly, the liability for
compensated absences is not reported in the general fund, but rather is reported in the basic
financial statements of Collier County, Florida.
Use of Estimates
The preparation of these special-purpose financial statements requires management of the Clerk
to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the special-purpose
financial statements and the reportcd amounts of revenues and expenditures during that period.
Actual results could differ from those estimates.
0'611-1001887
13
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13A ,.~_
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Comparative Data
The special-purpose financial statements include certain prior year summarized comparative
information in total but not at the level of detail required for a presentation in conformity with
generally accepted accounting principles. Accordingly, such information should be read in
conjunction with the Clerk's special-purpose financial statements for the year ended
September 30, 2007, from which the summarized information was derived.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual
budget. The budget of the Clerk is prepared for the general fund transfcr and juvenile assessment
funds, which is submitted to and approved by the Board. The Clerk also prepares and approves
the budget for the public records modernization fund and the budget related to his recording
function based on anticipated fees.
Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on
or before August 15 and submitted to the Corporation. If the Clerk estimates that projected
revenues are insufficient to meet 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.
The budget is prepared on a basis consistent with accounting principles generally accepted in the
United Statcs. The annual budget serves as the legal authorization for expenditures. Any
subsequent amendments to the Clerk's transfer budget funded by the Board must be approved by
the Board, amendments to the Clcrk' s fee budget are at the discretion of the Clerk, and any
amendments of the court budget must be approvcd by the Corporation for thc court services
fund. Expenditures may not lcgally cxceed 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 objcct expenditure categories are made at the discretion of the
Clerk.
O~ 1] -100IS8?
14
13A 'l~
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process (continued)
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Clerk's cash and cash equivalents was as
follows:
Type
Maturity
Carrying
Value
Credit Rating
Cash on hand
Demand deposits
Total cash and cash equivalents
N/A
N/A
$ 6,150
50,294,940
$ 50,301,090
N/A
N/A
The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each
fund type's portion of these balances is presented as cash and cash equivalents in the
accompanying special-purpose financial statements. Interest income is allocated to each fund
based on its proportionate balance in the pool.
Cash and cash equivalents as of September 30, 2008 are reported as $32,452,924 and
$17,848,166 in the governmental funds and fiduciary funds, respectively.
Custodial Credit Risk
At September 30, 2008, the Clerk's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
08]1-1001887
15
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13A '~"
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Credit Risk
The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the
deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415,
Florida Statutes, authorize the Clerk to invest in the Local Government Surplus Funds Trust
Fund or any intergovernmental investment pool authorizcd 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 administcred by the State Treasurer, who
may make additional assessments to ensure that no public fi.mds will be lost.
Interest Rate Risk
The Clerk has no specific investment policy regarding interest rate risk.
4. Interest Income and Investment of County Funds
Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those
required to meet expenses. Intercst revenue from funds invested is recorded as income of the
office of the Clerk and any excess interest earnings are returned to the Board at year-end as
described in Note 1. Interest income of $32,310,084 rcported in the general fund for the year
ended September 30, 2008 consists of $31,584,216 related to interest earned on funds invested
pursuant to Florida Statute 2833, and $725,868 of intcrest earned on Clerk funds.
OI\II-IOO]:-:::n
16
1 3 A .~ I'f
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
5. Receivables
Pursuant to Florida Statutes, Section 28.246, the Clerk shall establish and maintain a system of
accounts receivable for court-related fees, charges, and costs. Since July 1, 2004 the acclUllulated
receivables through September 30, 2007 totaled $18,936,086. For the current period October 1,
2007 through September 30, 2008 accumulated additional receivables totaled $5,337,197 for a
total cumulative receivable balance of $24,273,283. This receivable is considered uncollectible
and is not recorded in the accompanying special-purpose financial statements. This outstanding
balance will be monitored and all efforts will be made to collect these and any future balances
outstanding due the Clerk.
For the current year, additional receivables include inter-fund receivables of $4,009,828 due
from the Board of County Commissioners for charges for services by the Clerk to the Board as
permitted by Florida Statutes. The Board of County Commissioners disputes these charges and
has refused to pay as of the date of these financial statements. These amounts have been reported
as deferred revenues on the balance sheet as they have not been receivable within the Clerk's
period of availability of sixty days of fiscal year end. Clerk management believes these charges
are appropriate under Florida Statutes.
6. Capital Assets
Capital assets used by the governmental fund type operations are capitalized in the basic
financial statements of Collier County, Florida rather than in the governmental funds of the
Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of
the Clerk and capitalized at cost in the basic financial statements of the Collier County, Florida.
Capital assets are valued at historical cost, or estimated historical cost if actual historical cost is
not available. Donated capital assets are valued at their estimated fair value on the date received.
The Clerk maintains custodial responsibility for the capital assets used by the office. No
depreciation has been provided on capital assets in the accompanying special-purpose financial
statements. However, depreciation expcnse on these assets is recorded in the basic financial
statements of Collier County, Florida.
0811-]001887
17
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13 A '111
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
7. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reflected in the
basic financial statements of Collier County, Florida:
September 30,
2007 Additions
September 30,
Deletions 2008
Accrued compensated absences
$ 1,670,t 14 $ 1,272,416 $ t,131,005 $ 1,811,525
Of these obligations, approximately $1,231,837 is expected to be paid during the fiscal year
ending September 30, 2009. These long-term liabilities are not reported in the special-purpose
financial statements of the Clerk since thev have not matured.
"
8. Employee Retirement Plan
Substantially all full-time employees of the Clerk are eligible to partIcIpate in the State of
Florida Retirement System (System), a cost-sharing multiple-employer defined benefit plan
administered by the State of Florida, Division of Retirement. The System is a defined benefit
plan for all state and participating county, district board, community college, and university
employees (Pension Plan). The System also offers eligible employees participation in an
alternative defined contribution plan (Investment Plan). The Clerk participates in the Elected
State Onicers' Class. The plan is administered by the State of Florida. Contribution rates are
established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Clerk's employees are not determinable.
Employees participating in the Pension Plan, who retire at or after age 62 with six years of
credited service or with 30 years of service regardless of age, are entitled to a retirement benefit
payable monthly for life, equal to 1.6% for regular employees, 2% for senior management and
3% for county elected officials of their average final compensation for each year of credited
service. Average final compensation is the employee's average of the five highest fiscal years of
salary earned during credited service. Vested employees may retire before age 62 and receive
beneJits that are rcduced 5% lor each year prior to normal retirement age or datc. Employees
participating in the Pension Plan are vestcd alter onc year of servicc with no age requirements.
The System also provides death and disability benefits. Benefits arc cstablished by Chapter 121,
Florida Statutes.
USII-]D01SX7
18
13A .~
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited pcriod for members of the
System, effective July 1, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a system employer. The participation in the program does not change
conditions of employment. When the DROP period ends, a maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of the acclUllulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in acclUllulating sufficient assets to pay benefits when due. This report may be
obtained by writing to Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.fl.us.
The Clerk is required to contribute an actuarially determined rate. The current rate is 16.53% for
county elected officials, 9.85% for regular employees, 13.12% for senior management, and
10.91 % for DROP employees. The contribution requirements of the Clerk are established and
may be amended by the State of Florida. The Clerk's contributions to the plan for the years
September 30, 2008, 2007, and 2006 were $1,213,623, $1,134,120, and $802,329, respectively,
equal to the required contributions for each year.
9. Related Party Transactions
The Board provided funding for the Clerk in the amount of $364,800. The Supervisor of
Elections also provided funding in the amount of a $37,000 transfer. At September 30, 2008, the
Clerk had a payable due to the Board of $24,534,005 comprised as follows:
Distribution of excess interest
Agency funds due
Amounts due for various services
Total due to Board of County Commissioners
$ 24,384,015
86,359
63,631
$ 24,534,005
0811-1001887
19
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13A .~
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
9. Related Party Transactions (continued)
Also at September 30, 2008 the Clerk had a receivable due from the Board of $4,848,777
comprised as follows:
Charges for services - deferred revenue
Investment Interest
Amounts due from various services
Total due trom Board of County Commissioners
$ 4,009,828
810,744
28,205
$ 4,848,777
Additionally a transfer of $72,921 was made to the Juvenile Assessment fund by the Board.
10. Risk Management
Collier County, Florida (the County) is exposed to various risks of loss, including, but not
limited to general liability, health and life, property and casualty, auto and physical damage, and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal scrvice hmd. Alljiabilities associated with these
sclf-insured risks are reported in the basic financial statements of the County. During the year
ended September 30, 2008, the Clerk was charged $2,473,959 by the County for participation in
the risk management program.
The County retains the first $350,000 per claim for workers' compensation, and has purchased
outside excess coverage for up to $25 million for employment liability claims and statutory
limits for each injury and illness. The County also provides coverage for $200,000 per claim for
general liability and auto liability coverage and has purchased outside excess coverage for up to
$2 million per claim. Ncgligence claims in excess of thc statutory limits sct in Section 768.28,
Florida Statutes, which providc for limited sovcreign inununity of $100,000/$200,000 per
occurrence can only be rccovcred through an act of thc State Legislature. Property claims are
subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County also
retains thc first $100,000 pcr claim/$200,OOO pcr occurrence f()r public ofIicial errors and
omissions and crime coverage and has purchased outsidc cxcess covcrage for up to $5 million
per claim. There have been no significant rcductions in insurance coverage in the last year.
Settled claims have not exceeded thc insurance provided by third party carriers in any of the last
three years.
OSJI-100I8Bi
20
13A "")
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
10. Risk Management (continued)
The County is self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 per covered member and has purchased
outside excess coverage for up to $2 million for each claimant. An actuarial valuation is
performed each year to estimate the amounts needed to pay prior and future claims and to
establish reserves.
11. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits other than
Pensions.
Plan Description. The Clerk participates in a group health care plan that covers eligible retirees,
and their dependents, of the Board of County Commissioners and all Constitutional Officers with
the exception of the Sheriff. The Board administers the plan and establishes the benefits. The
healthcare plan does not issue a stand-alone financial report, however additional actuarial
information regarding the plan as a whole is disclosed in the notes to the financial statements of
Collier County.
As required by Section 112.081, Florida Statutes, retirees, and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
age 62 and have 6 years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. The Clerk providcs no subsidy to the retiree, or their dependents,
for group health care.
Funding Policy. The contribution requirements of the plan members and the employers are
established and may be amended by the County. The plans are financed by the participating
agencies on a pay as you go basis through the County's self insurance internal service fund. The
Clerk contributes an additional amount to the County per each active employee to accumulate
resources to fund retiree healthcare. The Clerk contributed $9,455 to the group health plan for
OPEB costs during the fiscal year ended September 30, 2008. The Clerk's share of the County's
net OPEB obligation at September 30, 2008 was $21,268, which is recorded in the basic
financial statements of the County.
ll811-1001887
21
"-,
13 A '11
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
11. 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 represcnts 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 wholc was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment bene lit plan as a whole.
12. Claims and Contingencies
Litigation
The Clerk of the Circuit Court is routinely involved as defendant, plaintiff and as a "party in
interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended
September 30, 2008, the Clerk was involved in approximately 8,377 collection cases. These are
court actions designed to collect fees and costs imposed by the courts in criminal cases. The
Clerk was involved in approximately 934 bond forfeiture actions. Those cases involve collecting
forfeitures of criminal appearancc bonds. There is currently one case pending before the Second
District Court of Appeal. There are approximately '8 actions for foreclosure of property in
which thc Clerk has been a named defendant.
In addition to the above action, the Clerk was a plaintiff in an action to recover funds from a
party who misrepresented information in order to wrongfully seize $20,000 from the Clerk. The
Clcrk obtained a judgment in that case and is currently seeking to enforce the judgment. The
Clerk is a party defendant in pending litigation relating to thc issuance of a tax deed wherein the
plaintiffs assert in part that the tax deed sale was not properly conducted and that the allegedly
rightful property owner did not rcceive notice of the tax dced sale.
Collier County Litigation
The law firm of Woodward, Pires and Lombardo, P.A., represents the Clerk as plaintiff in a
Declaratory Judgment and a request for an accounting action which has been pending since
2004. The defendant is the Board of County Commissioners and two County employees (one of
which has retired). In that action, therc was a l4-day hearing to disqualify counseL which was
0811-1UU1S87
22
13A
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
12. Claims and Contingencies (continued)
denied after the extended hearing. During the hearing nlUllerous expert witnesses were hired and
called as witnesses. In addition, during discovery, the Clerk learned that the Fire Department
Chief for the Isle of Capri Fire Department, to which some of the financial records pertain, plead
"No Contest" to a misdemeanor violation regarding record keeping and has claimed a Fifth
Amendment right (right not to incriminate himself) in response to questions propounded at
depositions on the case.
During the course of the Declaratory action litigation, and at or about the time of filing the
Motion to Disqualify Clerk's Counsel, the County and a County employee (since retired) each
filed a Petition for Writ of Quo Warranto alleging the Clerk has no right to audit, examine, or
inspect anything other than to determine lawfulness of expenditures and that the time in which
the audit can occur is only between a request for payment being made by the Clerk and payment
of the bill. This action forced the Clerk to employ additional counsel to represent the Clerk as the
Defendant in the Quo Warranto action. The Clerk then employed the law firm of Ackerman,
Link and Sartory to represent the Clerk in the Quo Warranto action.
The cases have now had four separate judges assigned and the Clerk has had to ask to disqualify
one judge because it was discovered that at the direction of the Chief Judge, the Deputy Court
Administrator held exparte communications with counsel for the County and the County
employees about who to appoint as a replacement judge in the case.
On September 24, 2007, the fourth assigned judge (being assigned the case by the Chief Judge
without notice to or at the request of any party, removing the case from the judge that had
presided over the case for over 15 months) after having only been assigned to the case for less
than a month entered a final judgment, granting motions for summary judgment filed by the
County. This final judgment is currently on appeal to the Second District Court of Appeals with
Common Cause and the Florida Association of Court Clerks and Comptrollers (FACC) filing
Amicus Briefs on behalf of the Clerk. The cases were fully briefed and argued and the parties are
awaiting the judgment of the Second District Court of Appeals.
There has also been another case which was filed by the County in 2007 asserting that the
Clerk's office is a budget otTtce of the County and that interest income derived by the Clerk from
investing Collier County taxpayer funds are not income of the Clerk. The Clerk and his counsel
attempted to get the Florida Attorney General to resolve this issue, but the County refused and
O!S1]-]()01887
23
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1 3 A' I
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
12. Claims and Contingencies (continued)
filed the case in Circuit Court. This lawsuit concerns the same issues involved in a 2002 case
between the Clerk and the County, initiated by the Clerk, wherein in 2002, the County settled
with the Clerk agreeing that Florida Statute 28.33, which states as follows:
"Investment of county funds by the clerk of the circuit court - The clerk of'the circuit court
in each county shall invest county funds in excess of'those required to meet expenses as
provided in s. 2I8.4I5. No clerk investing such funds shall be liable for the loss of any
interest when circumstances require the withdrawal ofjunds placed in a time deposit and
needed/or immediate payment 0/ county obligations. Except fiJr interest earned on moneys
deposited in the registry a/the court, all interest accruingfrom moneys deposited shall be
deemed income of'the ofJice o/the clerk of'the circuit court investing such moneys and shall
be deposited in the same account as are otherfees and commissions of the clerk '.I office. "
was controlling. The Board passed a resolution stating the above as the settlement. The County
and Clerk are now re-litigating that same issue. On June 18, 2008, the trial court entered a partial
final summary judgment in favor of the county on the interest income issue. The Clerk timely
appealed to the Second District Court of Appeals. The case is fully briefed and oral argument
was hcld December 3, 2008.
The Clerk believes that the checks and balances for local government, which are in jeopardy,
demand these actions be defendcd vigorously. The Clerk believes that the fundamental interest
of taxpayers to preserve the traditional role of the Clerk of Courts, as a check and balance in
local government, is too great to abandon.
The Clerk and its counsel believe that the Clerk's position is legally correct. There are claims for
damages and the Clerk is incapable or determining what the outcome will be. If the Court allows
the County to control income from intercst rcvcnue and the County maintains its positions that
they are not required to fund any of the financial functions ofthc Clerk's of1ice, the Clerk will be
unable to fund its operations.
The cost expended by the Clerk in terms of attorney fees and costs related to litigation, during
the year ended September 30, 2008, was approximately $860,000.
U81]-]OU1887
24
13A
, r:~
1
Collier County, Florida
Clerk of the Circuit Court
Notes to Special-Purpose Financial Statements (continued)
13. Subsequent Event
On September 25, 2008 the Court issued an oral ruling in Case 07-1056-CA dated October 1,
2008 requiring the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash
bond previously deposited into the Court registry. On October 6, 2008 the Second District Court
of Appeal reversed the Court orders and remanded back to the Twentieth Judicial Circuit for a
full evidentiary hearing related to maintaining the automatic appellate stay and the propriety of a
bond, if any, and the amount, if any, of such a bond. On December 1, 2008, the Twentieth
Judicial Circuit Court conducted the full evidentiary hearing pursuant to the mandate of the
Second District Court of Appeal and on December 18, 2008 the Court Ordered and Adjudged
that the Clerk cause to be released to the County's General Fund the $3,239,000 cash bond
together with the interest earned on the cash bond while in the Court registry. Collection efforts
by the County for any monies claimed that accrued prior to December I, 2008 are stayed during
the pendency of the appeal. The automatic stay provided by Florida Rule of Appellate Procedure
9.310(b)(2) shall be in effect on the conditions that on the 15th day of each month, beginning on
January 15,2009, the Clerk shall account, in writing, to the Board of County Commissioners the
total amount of income received on investment of County funds for the previous calendar month
and by the 15th of each month, beginning on January 15, 2009, the Clerk shall transfer from his
accounts, two-thirds of the income received on County funds for the previous calendar month, to
the Board's General Fund. The Court found that a cash or surety bond was inappropriate.
In an opinion filed on January 30, 2009 the Second District Court of Appeal of Florida, in case
2008-3126, reversed and remanded the trial court's December 18,2008 decision granting partial
final judgment in favor of the Board of County Commissioners. The Second District Court of
Appeals cited Florida Statute 28.33 as "clear and unambiguous" in authorizing the Clerk of
Courts to claim as income interest earned on funds that the Clerk, as custodian of County funds,
has invested on behalf of the County. This opinion will not be final until all proceedings are
concluded.
OSI]-IOOI887
25
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Combining Financial Statements
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Collier County, Florida
Clerk of the Circuit Court
Combining Balance Sheet - Agency Funds
September 30, 2008
Jury and
Clerk's Court Ordinary
Agency Registry Witness Total
Assets
Cash and cash equivalents $ 3,752,011 $ 14,071,318 $ 24,837 $ 17,848,166
Total assets $ 3,752,011 $ 14,071,318 $ 24,837 $ 17,848,166
Liabilities
Due to the Collier County, Florida
Board of County Commissioners $ 86,359 $ - $ - $ 86,359
Due to other governments 1,324,545 24,837 1,349,382
Deposits 2,341,107 14,071,318 16,412,425
Total liabilities $ 3,752,011 $ 14,071,318 $ 24,837 $ 17,848,166
OS] 1-1001887
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Clerk of the Circuit Court
Statement of Changes in Assets and Liabilities - Agency Funds
Year Ended September 30, 2008
Balance Balance
October I, Septem ber 30,
2006 Additions Deletions 2007
Assets
Cash and cash equivalents S 17.273.210 S 254,330.212 $ 253,755,256 $ 17,848,166
Due from other funds 8,846 8,846
Total assets $ 17,282,056 $ 254,330,212 $ 253,764,102 $ 17,848,166
Liabilities
Due to the Collier County, Florida
Board of County Commissioners $ 55,536 $ 144.582 $ 113.759 86,359
Due to other governments 907, t 95 10.820.073 10,377,886 1,349,382
Due to other funds 41,619 41,619
Deposits 16.277,706 243,365,557 243,230,838 16,412,425
Tot<:llliabilities $ 17,282.056 $ 254,330,212 $ 253,764,102 $ 17 ,848,166
08]].101J1887
27
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Report of Independent Certified Public Accountants on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Special-Purpose Financial Statements Performed in Accordance With
Government Auditing Standards
The Honorable Dwight E. Brock, Clerk ofthc Circuit Court
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Clerk of the Circuit Court (the Clerk)
as of and for the year ended September 30, 2008, and have issued our report thereon dated
February 8, 2009. We conducted our audit in accordance with auditing standards generally
accepted in the United States and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Clerk's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Clerk's internal control over financial reporting. Accordingly,
we do not express an opinion on the effectiveness of the Clerk's internal control over financial
reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
dctected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deticiencies or material weaknesses. We did not
identify any deficiencies in internal control ovcr financial reporting that we consider to be
material weaknesses, as defined abovc.
081]-100ISH7
28
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's special-purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
This report is intended solely for the information and use of the Clerk, management, others
within the entity, the Board of County Commissioners of Collier County, Florida, and the
Auditor General of the State of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
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February 8, 2009
08]\-]00\887
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Management Letter
The Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of thc Collier County, Florida Clerk of the Circuit Court (the Clerk)
as of and for the year ended September 30, ?008, and have issued our report thereon dated
February 8,2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local govenmlental audits performed in the State of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated February 8, 2009 on internal control over financial
reporting and on compliance and other matters bascd on an audit of special-purpose financial
statements perfl)fmed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Current Year Findings and Recommendations
There are 110 findings or recommendations made in the current year annual audit.
Prior Year Findings and Recommendations
2007-1 Financial Statement Close Process
Observation
In performing the fiscal year ?007 audit, we identified certain audit difTerenccs that resulted in
adjustments to the Clerk's special-purposc financial statements. Noted audit differences included
reclassifications and other adjustments in the areas of reporting of cash and cash equivalent
balances; revenue and expense recognition. and other modifications in thc special-purpose
financial statcment presentation and disclosure. These dilfercnces could have been identified by
management through a more efTective financial statement close proccss.
US11-IUOI8S7
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Recommendation
We recommend that the Clerk's accounting department review its financial statement close
process and establish formalized procedures to ensure the proper reconciliation of all significant
accounts and the appropriate disposition of reconciling items. The Clerk's review of its financial
statement close process should also incorporate the implementation of effective monitoring
controls, such as documented supervisory reviews and approvals at various stages of the process.
In reviewing and implementing changes to its financial statement closing process, the Clerk
should review the duties of its accounting personnel to assess whether it has sufficient
accounting personnel with the appropriate experience and training to effectively perform the
financial statement close process.
Current Status
In the current fiscal year just ended we have drawn on the knowledge of the finance department
to assist in preparation of the documents necessary for the closing and audit processes. The new
personnel in our office are now more experienced after completing a second audit. Additionally,
we have transferred additional personnel into the accounting department to assist us with our
daily processes as well as our year-end closing process.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than
the internal control recommendations included above.
The Clerk was established by the Constitution ofthe State of Florida, Article VIII, Section l(d).
Section 10.554(1)(i)8., Rules of the Auditor General, requires a statement as to whether or not
the Clerk complied with Section 28.35, Florida Statutes, regarding the budget and performance
standards certified by the Florida Clerk of Courts Operations Corporation. The results of our
audit did not identify any instances of noncompliance that are required to be reported.
0811-1001887
31
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This management letter is intended solely for the information of the Clerk, management, the
Board of County Commissioners of Collier County, Florida, and the Auditor General of the State
of Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
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February 8, 2009
081J-l()()1887
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Property Appraiser
Year Ended September 30, 2008
With Report of Independent Certified Public Accountants
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Collier County, Florida
Property Appraiser
Special-Purpose Financial Statements
Year Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - General Fund ................................ .............................................3
Special-Purpose Statement of Revenucs, Expenditures, and Changes in Fund Balance -
General Fund.......................................................................................................................... .......4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- (Budgetary Basis) - General Fund..............................................................5
N S' '11' F"' 'IS 6
otes to, pecJa - urpose manCla tatements...............................................................................
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in
Accordance with Government Auditing Standards.....................................................................16
Management Letter........................................................................................................... ........... ..18
01;11-10117792
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Report of Independent Certified Public Accountants
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the accompanying special-purpose financial statements of the general fund of
the Collier County, Florida Property Appraiser (the Property Appraiser), as of and for the year
ended September 30, 2008 as listed in the table of contents. These special-purpose financial
statements are the responsibility of the Property Appraiser's management. Our responsibility is
to express an opinion on these special-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Property Appraiser's internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Property Appraiser's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the special-purpose financial statements,
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall special-purpose financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
As discussed in Note 1, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, Chapter
10.557(3), Rules of the Auditor General .lor Local Governmental Entity Audits. Thcse
special-purpose financial statements are not intended to be a complete presentation of the
Property Appraiser's financial position and its changes in financial position, where applicable,
thereof, for the year then ended in conformity with accounting principles generally accepted in
the United States. Additionally, the special-purpose statements present only the Property
Appraiser and do not purport to, and do not, present fairly the financial position of Collier
County, Florida, as of September 30, 2008, and the changes in its financial position, where
applicable, for the year then ended, in conformity with accounting principles generally accepted
in the United States.
0811-\007792
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the general fund of the Property Appraiser as of
September 30, 2008, and the changes in financial position thereof and the budgetary comparison
for the general fund for the year then ended in conformity with accounting principles generally
accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2008 on our consideration of the Property Appraiser's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considercd in assessing the results of our audit.
This report is intended solely for the information and use of the Property Appraiser,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~T
December 10, 2008
OS11-]OU7792
2
Collier County, Florida
Property Appraiser
Special-Purpose Balance Sheet - General Fund
September 30, 2008
Assets
Cash and cash equivalents
Total assets
Liabilities and fund balance
Liabilities:
Accrued liabilities
Due to Collier County, Florida Board of County Commissioners
Due to other taxing districts
T otalliabilities
Fund balance
T otalliabilities and fund balance
See accompanying notes.
0811-10077'n
13A ~r.t
$ 1,137,662
$ 1,137,662
$ 78,611
943,383
115,668
1,137,662
$ 1,137,662
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Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures,
and Changes in Fund Balance - General Fund
Year Ended September 30, 2008
Revenues:
Commissions and fees
Miscellaneous
Total revenues
Expenditures:
General government:
Personal services
Operating
Capital outlay
Distribution of excess fees to other taxing districts
Total expenditures
Excess of revenues over expenditures
Other financing uses:
Distribution of excess fees to Collier County, Florida
Board of County Commissioners
Total other financing Llses
,
Excess of rcvenues over expenditures and other financing uses
Fund balance, begim1ing of year
Fund balance, cnd of year
See accompanying notes.
USIJ-I0077lJ2
13A '~~-
$ 6,681,996
683,314
7,365,310
4,813,602
1,426,467
66,190
115,668
6,421,927
943,383
(943,383)
(943,383)
$
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Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual- (Budgetary Basis) - General Fund
Year Ended September 30, 2008
Budget
Original Final
Variance With
Final Budget
Positive
Actual (Negative)
Revenues:
Commissions and fees $ 6,681,996 $ 6,681,996 $ 6,681,996 $
Miscellaneous revenues 683,314 683,314
Total revenues 6,681,996 6,681,996 7,365,310 683,314
Expenditures:
General government:
Personal services
Operating
Capital outlay
Total expenditures
Excess of revenues over expenditures
4,914,546 4,914,546 4,813,602 100,944
1,558,333 1,558,333 1,426,467 131,866
209,117 209,117 66,190 142,927
6,681,996 6,681,996 6,306,259 375,737
1,059,051 1,059,051
Other financing uses:
Distribution of excess fees to Collier
County, Florida Board of County
Commissioners
Distribution of excess fees to other
taxing districts
Total other financing uses
Excess of revenues over expenditures
and other financing uses
(943,383)
(943,3 83)
(115,668)
(1,059,051)
(115,668)
(1,059,051)
-$
- $
-J
Fund balance, beginning of year
Fund balance, end of year
$
$
See accompanying notes.
5
0811-10077'J2
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Property Appraiser
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Property Appraiser (the Property Appraiser) is an elected
constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to
Chapter 129, Florida Statutes, the Property Appraiser's budget is submitted to the Florida
Department of Revenue for approval, and a copy is forwarded to the Collier County, Florida
Board of County Commissioners (Board).
The special-purpose financial statements presented include the general fund of the Property
Appraiser's office. The accompanying special-purpose financial statements were prepared for the
purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the
Auditor Generalfor Local Governmental Entity Audits.
Section 10.556(4), Rules of (he Auditor General jor Local Governmental Entity Audits, requires
the Collier County, Florida Property Appraiser financial statements to only present fund financial
statements. Accordingly, due to the omission of government-wide financial statements and
related disclosures, including a management's discussion and analysis, these special-purpose
financial statements do not constitutc a completc prescntation of the financial position of the
Collier County, Florida Property Appraiscr as of Scptember 30, 2008 and the changes in its
financial position for the year thcn endcd, in conformity with Governmental Accounting
Standards Board (GAS B) Statement No. 34, Basic Financial Statements - and Management '.I
Discussion and Analysisu jor State and Local Governments, but otherwise constitute financial
statements prepared in conformity with U.S. generally accepted accounting principles.
The financial activities of the Property Appraiser, as a constitutional officer, are included in the
Collier County, Florida Comprehensive Annual Financial Report.
Measurement };'ocus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about thc Property
Appraiser. The foclls of governmental fund financial statements is on major funds rather than
rcporting funds by type. Each major fund is reported in a separate column.
(j~j ]-l{J077'!2
6
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets. The Property Appraiser's only governmental fund is the general fund. The general fund is
used to account for the general operations of the Property Appraiser.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Property Appraiser considers revenues to be available if they are collected within 60
days after year end. Expenditures are recorded when the related fund liability is incurred, except
for compensated absences, which are recognized as expenditures to the extent they have
matured.
Substantially all of the Property Appraiser's revenue is received from taxing authorities. These
moneys are virtually unrestricted and are revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenue at the time of receipt; earlier
if the "susceptible to accrual" criteria are met.
Miscellaneous revenue is recognized as it is earned and becomes measurable and available to pay
liabilities of the current period.
Florida Statutes provide that the amount by which revenucs exceed annual expenditures be
remitted to each goverrunental agency immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized.
Florida Statutes further provide that the excess of revenues over expenditures held by the
Property Appraiser be distributed to each governmental agency in the same proportion as the fees
paid by each governmental agency bear to total fee revenues. The amount of this distribution is
recorded as a liability and as an expenditure or other financing use in the accompanying
special-purpose financial statements.
08\1-1007791
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in the general fund operations are capitalized in the basic financial
statements of Collier County, Florida rather than in the governmental funds of the Property
Appraiser.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less.
Compensated Absences
All full-time employees of the Property Appraiser are allowed to accumulate an unlimited
number of hours of unused sick time and up to 200 hours of unused vacation leave. Upon
termination, employees receive 100% of allowable accumulated vacation hours and a percentage
of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation time
and sick leave are included in operating costs when the payments are made to employees. The
Property Appraiser does not, nor is he legally required to accumulate financial resources for
these unmatured obligations. Accordingly, the liability for compensated absences is not reported
in the general fund, but rather is reported in the basic financial statements of Collier County,
Florida.
Use of Estimates
The preparation of the special-purpose financial statements requires management of the Property
Appraiser to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from thosc estimates.
()~ 11-1007792
8
13A '111
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's
annual budget. The Property Appraiser prepares a budget for the general fund and submits it to
the Florida Department of Revenue for approval. A copy of the approved budget is provided to
the Board of County Commissioners. Any subsequent amendments to the Property Appraiser's
total budget must be approved by the Florida Department of Revenue. The annual budget serves
as the legal authorization for expenditures. Expenditures may not legally exceed appropriations
at the fund level. Appropriations lapse at year end. Budget control is maintained at the
departmental major object expenditure level. Budgetary changes within major object expenditure
categories are made at the discretion of the Property Appraiser.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs
from generally accepted accounting principles (GAAP). Certain revenues received from non ad
valorem commissions and other sources and expenditures paid for from these revenues are not
recognized under the budgetary basis of accounting; however, the revenues and expenditures
have been recognized under GAAP.
The actual results of operations in the statement of revenues, expenditures, and changes in fund
balance - budget to actual - general fund are presented on a budgetary basis. Adjustments to
convert the results of operations for the year ended September 30, 2008 from the budgetary basis
of accounting to the GAAP basis of accounting are as follows:
Miscellaneous
Revenues
Budgetary basis
Revenues and expenditures not budgeted
GAAP basis
$
683,314
$ 683,314
0811-1007792
9
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Property Appraiser's cash and cash equivalents
was as follows:
Type
Carrying
Value
Cash on hand
Deposit accounts
Repurchase agreements
Total cash and cash equivalents
$ 125
247.214
890,323
$ 1,137,662
Custodial Credit Risk
At September 30, 2008, the Property Appraiser's deposits were entirely covered by federal
depository insurance or by collateral pledged with the state treasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter, in the event of default by a participating financial institution
(a qualified public dcpository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Interest Rate Risk
The Property Appraiser has no specific investment policy regarding interest rate risk.
Credit Risk
The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes,
rcgarding the deposit of funds received and thc investment of surplus funds. Sections 219.075
and 218.415, Florida Statutes, authorize the Property Appraiser to invest in the Local
Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant
to the Florida Interlocal Cooperation Act: Securities and Exchange Commission registered
money market funds with the highest credit quality rating from a nationally recognized rating
agency; dircct obligations of the United States Treasury; fcderal agencies and instrumentalities,
or interest-bearing time deposits or savings accounts in banks organized under the laws of the
lInitcd States and doing business and situated in the State of Florida, savings and loan
OB] 1-1007792
10
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
associations which are under state supervision, or in federal savings and loan associations located
in the State of Florida and organized under federal law and federal supervision, provided that any
such deposits are secured by collateral as may be prescribed by law.
4. Capital Assets
Capital assets used by the Property Appraiser are reported in the basic financial statements of
Collier County, Florida rather than in the general fund of the Property Appraiser. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Property
Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida.
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is
not available. Donated capital assets are valued at their estimated fair value on the date received.
The Property Appraiser maintains custodial responsibility for the capital assets used by the
office. No depreciation expense has been provided on capital assets in these special-purpose
financial statements. However, depreciation expense is recorded in the basic financial statements
of Collier County, Florida.
5. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reported in the
basic financial statements of Collier County, Florida:
October 1,
2007
Net
Increase
September 30,
2008
Accrued compensated absences
$388,562
$16,229
$404,791
Of these liabilities, approximately $25,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Property Appraiser since they have not matured.
0811~] 007792
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Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan
Substantially all full-time employees of the Property Appraiser filling regularly established
positions are eligible to participate in the State of Florida Retirement System (System), a
cost-sharing multi pIc-employer public retirement system administered by the State of Florida,
Division of Retirement. The System is a de1ined benefit plan for all state, and participating
county, district school board, community college, and university employees (Pension Plan). The
System also offers eligible employees participation in an alternative de1ined contribution plan
(Investment Plan). The Property Appraiser participates in the Elected State Officers' Class. The
plan is administered by the State of Florida Contribution rates are established statewide for all
participating governmental units. Accordingly, the actuarial information and related disclosures
attributable to the Property Appraisers' employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with 6 years of credited
service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable
monthly for life, equal to 1.6% for regular employees, 2% for senior management, and 3% for
County elected otlicials of their final average compensation for each year of credited service.
Final average compensation is the employce's average of the five highest fiscal years of salary
earned during credited service. Vested employees may retire before age 62 and receive benefits
that are reduced 5% for each year prior to normal retirement age. Employees participating in the
lnvestment Plan are vested after one year of service with no age requirement. The System also
provides death and disability benefits. Benefits are established by Chapter 121, Florida Statutes,
and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July I, 1998 Under this program, the employee may retire and have their
bene1its accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a System employcr. The participation in the program does not changc
conditions of employment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment the employee will receive
payment of the accumulated DROP benefits, and begin rcceiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of~living increases).
OB11-1UU77!):'
12
Collier County, Florida
Property Appraiser
13 A' fI
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan (continued)
The System publishes an annual report that provides ten-year historical trend information about
progress made in acclUllulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.fl.us.
The Property Appraiser is required to contribute an actuarially determined rate. The current rate
is 16.53% for county elected officials, 9.85% for regular employees, 13.12% for senior
management and 10.91% for DROP employees based on covered payroll. The contribution
requirements of the Property Appraiser are established and may be amended by the State of
Florida. The Property Appraiser's contributions to the plan for the years ended September 30,
2008,2007, and 2006 were $374,414, $356,873 and $275,095, respectively, equal to the required
contributions for each year.
7. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description. The Property Appraiser participates in a group health care plan that covers
eligible retirees, and their dependents, of the Board of County Commissioners and all
Constitutional Officers with the exception of the Sheriff. The Board administers the plan and
establishes the benefits. The healthcare plan does not issue a stand-alone financial report,
however, additional actuarial information regarding the plan as a whole is disclosed in the notes
to the financial statements of Collier County.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same hcalth care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statues, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
age 62 and have 6 years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. The Property Appraiser provides no subsidy to the retiree, or
their dependents, for group hcalth care.
0811-1007792
13
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Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
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. The
Property Appraiser contributes an additional amount to the County per each active employee to
accumulate resources to fund retiree health care. The Property Appraiser contributed $4,986 to
the group health plan during the fiscal year cnded September 30,2008. The Property Appraiser's
share of the County's net OPEB obligation at September 30, 2008 was $11,)17, which is
recorded in the basic financial statements of the Countv.
.
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
GASB Statement 45. The ARC represents a level offunding that, if paid by on an ongoing basis,
is projectcd to cover normal cost each year and amortize any unfunded actuarial liabilities over a
period not to cxceed thirty years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
For the year ended September 30, 2008, thc Board paid fees to the Property Appraiser that
amounted to $5,952,187. At September 30, 2008, the Property Appraiser had a payable due to
the Board of County Commissioners of $943.3 83 representing the distribution of excess fees.
9. Risk Management
Collicr County, Florida (the County) is exposed to various risks ofloss including, but not limited
to general liability, health and life, property and casualty. auto and physical damage, and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with thesc
self-insured risks are reported in the basic Jinancial statements of the County. During the year
ended September 30, 2008, the Property Appraiser was charged $722,299 by the County for
participation in the risk management program.
OXll-]0077'.J2
14
13. t'1
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management (continued)
The County provides coverage for up to $350,000 per claim for workers' compensation, and has
purchased outside excess coverage for up to $25 million for employer liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also selt~insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetime limit of $2,000,000.
10. Litigation
The Property Appraiser is involved as defendant or plaintiff in certain litigation and claims
arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal
counsel, the range of potential recoveries or liabilities will not materially affect the financial
position of the Property Appraiser.
OSll-l007792
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Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Special-Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the special-purpose financial statements of the general fund of the Collier
County, Florida Property Appraiser (the Property Appraiser) as of and for the year ended
September 30, 2008, and have issued our report thereon dated Decembcr 10, 2008. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Property Appraiser's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the special-purpose financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Property Appraiser's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Property Appraiser's internal control over financial reporting.
A control dejiciency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned fimctions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose jinancial statements that is morc than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or dctected by the entity's internal control.
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Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's
special-purpose financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
special-purpose financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management ofthe Property Appraiser in a separate
letter dated December 10,2008.
This report is intended solely for the information and use of the Property Appraiser,
management, others within the entity, the Board of County Commissioners of Collier County,
Florida and the Auditor General of the State of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
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December 10, 2008
08]J.1007792
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Management Letter
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the special-purpose financial statements of the general fund of the Collier County,
Plorida Property Appraiser (the Property Appraiser) as of and for the year ended September 30, 2008, and
have issued our report thereon dated December 10, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Additionally, our audit was conducted in accordance with the
provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local
governmental audits performed in the State of Florida and require that certain items be addressed in this
letter.
We have also issued our report dated December 10, 2008 on internal control over financial reporting and
on compliance and other matters based on an audit of special-purpose financial statements performed in
accordance with Government Auditing Standards. Disclosures in that report should be considered in
conjunction with this management letter.
Current Year Findings and Recommendations
There are no findings or recommendations made in the current annual financial audit.
Prior Year Findings and Recommendations
See Exhibit A for the status of prior year recommendations.
Other Required Communications
No matters of noncompliancc with Section 218.4 t 5, Florida Statutes, regarding the investment of public
limds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual provisions or
abuse, no improper or illegal expenditures, and no control deficiencies other than the internal control
recommendations included above.
The Propcrty Appraiser was established by the Constitution of the State of Florida, Article VlIl, Section
I(d).
This management letter is intcnded solely l'or the information and use of the Property Appraiser,
management, the Board of County Commissioners of Collicr County, Florida, and the Auditor General of
the State of Florida, and is not intended to be and should not be osed by anyone other than these specified
parties.
t6~T
UP
December 10, 7008
0811-1 (HJ77();~
18
13A
Collier County, Florida
Property Appraiser
Status of Prior Year's Recommendations
September 30, 2008
Recommendation
Status
Purchasing Policy
Document verbal approvals for purchases
made without purchase orders
Logical Access
Require each user to possess and utilize
their own user 10
Still applicable.
Implemented.
Req uire network passwords to provide
adequate protection from compromise
Implemented.
0811-1007792
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xhibit A
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Sheriff
Year Ended September 30, 2008
With Report oflndependent Certified Public Accountants
OB10-0999255
13 A ~"
Collier County, Florida
Sheriff
Special-Purpose Financial Statements
Y ear Ended September 30, 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditurcs, and Changes in Fund Balances -
Governmental Funds..................................................................................................................... 4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- General Fund...............................................................................................5
Special-Purpose Statement of Net Assets -Internal Service Fund .................................................6
Special-Purpose Statement of Revenues, Expenses, and Changes in Net Assets -
Internal Service Fund............................................................ ... ........ ....... ............. ............... ...... .... 7
Special-Purpose Statement of Cash Flows -Internal Service Fund................................................8
Special-Purpose Balance Sheet - Agency Funds ...........................................................................9
Notes to Special-Purpose Financial Statcments.............................................................................10
Combining Financial Information
Combining Special-Purpose Balance Sheet- Agency Funds .......................................................26
Rcguired Supplementary Information
Schedule of Funding Progress for the Retiree Health Plan ...........................................................27
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance With Government Auditing Standards ...........28
Report on Agreed-Upon Procedures Applied to Investigative Funds ...........................................31
Management Letter.................. ...... ........................................................................... .... ............. ....33
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Report of Independent Certified Public Accountants
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund and
the aggregate remaining fund information of the Collier County, Florida Sheriff (the Sheriff), as
of and for the year ended September 30, 2008, as listed in the table of contents. These special-
purpose financial statements are the responsibility of the Sheriffs management. Our
responsibility is to express opinions on these special-purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Sheriffs internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Sheriffs internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the special-purpose financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall
special-purpose financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
As discussed in Note I, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Chapter
10.557(3), Rules of the Auditor General jor Local Governmental Entity Audits. These special-
purpose financial statements are not intended to be a complete presentation of the Sheriff s
financial position, as of September 30, 2008, and the changes in its financial position, where
applicable, for the year then ended in conformity with accounting principles generally accepted
in the United States. Additionally, the special-purpose financial statements present only the
SheritT and do not purport to, and do not, present fairly the financial position of Collier County,
Florida, as of September 30, 2008, and the changes in its financial position, where applicable, for
the year then ended in conformity with accounting principles generally accepted in the United
States.
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of each major fund and the aggregate
remaining fund information of the Sheriff as of September 30, 2008, and the respective changes
in financial position and, where applicable, cash flows thereof and the budgetary comparison for
the general fund for the year then ended in conformity with accounting principles generally
accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
February 24, 2009 on our consideration of the Sheriffs internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Guvernment Auditing
Standards and should be considered in assessing the results of our audit.
The Schedule of Funding Progress for the Retiree Health Plan on page 27 is not a required part
of the special-purpose financial statements but is supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the special-purpose financial
statements. The combining financial information is presented for purposes of additional analysis
and is not a required part of the special-purpose financial statements. The combining financial
information has been subjected to the auditing procedures applied in the audit of the special-
purpose financial statements and, in our opinion, is fairly stated in all material respects in
relation to the special-purpose financial statements taken as a whole.
This report is intended solely for the information and use of the Sheriff, management, the Board
of County Commissioners of Collier County, Florida, ffi1d the Auditor General of the State of
Florida, and is not intended to be and should not be llsed by anyone other than these specified
parties.
of
February 24, 2009
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1 3 A '11
Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual - General Fund
Year Ended September 30, 2008
Variance With
Budget
Budget Positive
Original Final Actual (Negative)
Expenditures:
General government:
Personal services $ 3,812.900 $ 3,812,900 $ 3,945,863 $ (132,963)
Operating expenditures 156.500 156.500 133,382 23.118
Public safety:
Personal services 120,892,900 120.892,900 122,393,257 (1,500,357)
Operating expenditures 23,322.100 23,322.100 22,082,668 1,239,432
Capital outlay 4,487,600 4.487,600 3,086,275 1,401,325
Total expenditures 152,672,000 152,672,000 151,641,445 1,030,555
Excess of expenditures over revenues (152,672,000) ( 152.672,000) (151,641,445) 1,030,555
Other financing sources (uses):
Transfers in:
Collier County, Florida Board of County
Commissioners appropriations 152,672.000 152,672,000 152,672,000
Transfers out:
Distribution of excess appropriations to
Collier County, Florida Board of
County Commissioners (1,030,555) (1,030,555)
Total other financing sources 152,672.000 152,672.000 151,641,445 (1,030,555)
Excess of revenues and other
financing sources over expenditures $ - $ $
Fund balance - beginning of year
Fund balance - end of year $
See accompanying notes.
08\0-0999255
5
13 Ail"
Collier County, Florida
Sheriff
Special-Purpose Statement of Net Assets - Internal Service Fund
September 30, 2008
Assets
Cash and cash equivalents
Other receivable
Due from other funds
Total assets
$ 12,199,418
259,786
100,000
-$ 12,559,204
Liabilities and net assets
Liabilities:
Self insurance claims payable
Net other postemployment benefit obligation
Total liabilities
$ 2,094,000
549,868
2,643,868
Net assets:
Unrestricted
TotalliabiJities and net assets
9,915,336
-$ 12,559,204
See accompanying notes.
0810,0999255
6
13A
Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenses, and
Changes in Net Assets - Internal Service Fund
Year Ended September 30, 2008
Operating revenues:
Charges for services
$ 21,090,320
Operating expenses:
Claims and claims related expenses
Reinsurance premiums
Net other postemployement benefit expense
Administrative and other expenses
Total operating expenses
Operating income
15,163,709
540,581
549,868
293,938
16,548,096
4,542,224
Nonoperating revenues:
Interest income
Change in net assets
Net assets - beginning of year
Net assets - end of year
198,405
4,740,629
5,174,707
-$ 9,915,336
See accompanying notes.
08\0-0999255
':'11
'd"
, .j
7
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13 A11
Collier County, Florida
Sheriff
Special-Purpose Statement of Cash Flows - Internal Service Fund
Year Ended September 30, 2008
Operating activities
Cash payments for claims and claims related services
Cash payments for reinsurance premiums
Cash payments for administrative services and supplies
Cash received from other funds for services
Cash received from retirees for services
Net cash provided by operating activities
$ (14,957,905)
(540,581)
(293,938)
21,000,000
490,320
5,697,896
Investing activities
Interest on investments
218,295
Net change in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
5,916,191
6,283,227
$ 12,199,418
Reconciliation of operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Increase in receivables
Decrease in due from other funds
Increase in self-insurance claims payable
Increase in net other postemployment benefit obligation
Net cash provided by operating activities
$ 4,542,224
(33,196)
400,000
239,000
549,868
-$ 5,697,896
See accompanying notes.
08JO-099915')
8
Collier County, Florida
Sheriff
Special-Purpose Balance Sheet - Agency Funds
September 30, 2008
Assets
Cash and cash equivalents
Accounts receivable
Total assets
Liabilities
Due to other governments
Due to Collier County, Florida
Board of County Commissioners
Due to individuals and businesses
Total liabilities
See accompanying notes.
08]0-0999255
_ nO' .'_",,___."_"..'___"..___.~.."~.""'_ ,"_'._'O_~'d._ ._ ".",~,^_~~"~_.~_.."
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$
-$
426,505
1,885
428,390
$
21,335
$
49,261
357,794
428,390
9
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13 A '~q
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements
September 30, 2008
L Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Sheriff (the Sheriff) is an elected constitutional officer as provided
for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the
Sheriff s budget is submitted to the Collier County, Florida Board of County Commissioners
(Board) for approval.
The Collier County, Florida Sherifl is the chief law enforcement officer of Collier County,
Florida (the County) and is responsible for operating the County's corrections facilities. The
special-purpose financial statements include the general fund, special revenue funds, proprietary
fund, and agency funds of the Sheriffs office. The accompanying special-purpose financial
statements were prepared for the purpose of complying with Section 218.39, Florida Statutes,
and Section 10.557(3), Rules of the Auditor Generalfor Local Governmental Entity Audits.
Section I 0.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires
the Sheriff to only present fund financial statements. Accordingly, due to the omission of
government-wide financial statements and related disclosures, including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of the Collier County, Florida Sheriff as of September 30,
2008 and the changes in its financial position and its cash t1ows, where applicable, for the year
then ended, in conformity with Governmental Accounting Standards Board (GAS B) Statement
No. 34, Basic Financial Statements- and Management's Discussion and Analysis '.. for State
and Local Governments, but otherwise constitute financial statements prepared in conformity
with U.S. generally accepted accounting principles.
As a result of the budgetary oversight by the Board and the financial dependency on the Board,
the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive
Annual Financial Report.
Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and
budgeted fund balances must equal appropriations. The Sherif'!' is required to refund to the Board
all excess appropriations annually; therefore, no unappropriated general fund balancc is carried
forward.
O~ 10.0999255
10
13 A .,~'"
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
The special-purpose fund financial statements report detailed information about the Sheriff. The
focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet.
Operating statements for these funds present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Sheriff considers revenues to be available if they are collected within 60 days after
year end with the exception of grants, which have a period of availability of one year. Grants are
recognized as revenue as soon as all eligibility requirements have been met. Expenditures are
recorded when the related fund liability is incurred, except for compensated absences, which are
recognized as expenditures to the extent they have matured.
Substantially all of the Sheriff s funding is appropriated by the Board. In applying the
susceptible to accrual concept to intergovernmental revenue, there are essentially two types of
revenue. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures
incurred. Grant revenue is recorded in this manner. In the other, moneys are virtually
umestricted and are revocable only lor 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.
0810-0999255
II
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13AI~
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Florida Statutes provide that the amount by which revenues and transfers exceed annual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized.
The amount of this distribution is recorded as a liability and as an other financing use in the
accompanying special-purpose financial statements.
Capital outlays expended in governmental fund operations are recorded as capital assets in the
basic financial statements of Collier County, Florida rather than in the governmental funds of the
Sheriff.
The Collier County, Florida Sheriff has four major governmental funds:
General Fund - The general fund is used to account for the general operations of the Sheriff and
includes all transactions which are not accounted for in another fund.
Grant Special Revenue Fund - This fund is used to account for the proceeds of federal and state
grant revenues that are legally restricted to specified purposes.
Prisoner Welfare Fund - This fund is used to account for the proceeds of inmate related services
and is legally restricted to specified purposes, which benefit the inmate population.
Federal Equitable Sharing Fund . The revenue Irom these funds are the result of joint
investigations with federal agencies that result in the equitable sharing of the net proceeds of the
forfeiture.
Fund balances reported in these funds are to be used for the specified purpose of the respective
fund.
OS] (J-O'j992~:i
12
13A"~
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Fiduciary Funds
Fiduciary Funds ~ Agency Funds - These funds are used to account for assets held by the Sheriff
as an agent for individuals, private organizations, and other governments. Agency funds are
custodial in nature (assets equal liabilities), and do not involve measurement of results of
operations or have a measurement focus. Agency funds are accounted for using the accrual basis
of accounting.
Proprietary Fund
Internal Service Fund - This fund is used to account for the health and dental insurance services
provided to departments and retirees of the Sheriff on a cost-reimbursement basis. Proprietary
funds are accounted for using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash t1ows.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less. Cash equivalents also include amounts deposited in the Local Government
Surplus Trust Fund administered by the State Board of Administration, a 2a-7 like investment
pool. Shares of the investment pool are based on the pool's share price, which approximates fair
value.
Compensated Absences
All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours
of unused sick time and up to 440 hours of unused vacation leave. Upon termination, employees
receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave,
depending on years of service, not to exceed 1,000 hours. Vacation time and sick leave are
included in operating costs when the payments are made to the employees. The Sheriff does not,
nor is he legally required to, accumulate expendable financial resources for these unmatured
obligations. Accordingly, the liability for compensated absences is not reported in the
governmental funds, but rather is reported in the basic financial statements of Collier County,
Florida.
0810-0999255
13
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13A 'i'~1
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
., ,
Use of Estimates
The preparation of the special-purpose financial statements requires management of the Sheriff
to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the special-purpose
financial statements and the reported amounts of revenues and expenditures during that period.
Significant items subject to such estimates and assumptions include the self-insurance claims
payable. Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Sheriffs annual
budget. The Sheriff prepares a budget for the general fund and submits it to the Board of County
Commissioners for approval. The budget is prepared on a basis consistent with U.S. generally
accepted accounting principles. Any subsequent amendments to the budget must be approved by
the Board. The annual budget serves as the legal authorization for expenditures. Expenditures
may not legally exceed appropriations at the fund level. Appropriations lapse at year end.
Budgetary control is maintained at the departmental major object expenditure level. Budgetary
changes within the major object expenditure categories are made at the discretion of the Sheriff.
The Sherin'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 Jirst 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.
081U"099Y2S5
14
13a
I_ld
l','''':''i
'1
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
,
3. Cash and Cash Equivalents
0'
At September 30, 2008, the carrying value of the Sheriffs cash and cash equivalents was as
follows:
Average Carrying Credit
Type Maturity Value Rating
Cash on hand N/A $ 15,981 N/A
Demand deposits N/A 26,316,756 N/A
Local government surplus funds trust fund:
Pool A 8.5 days 692,653 AAAm
PoolB 9.36 years. 31,834 Umated
Total cash and cash equivalents $ 27,057,224
· This immaterial investment is classified as a cash equivalent on the special-purpose balance
sheet.
The total cash and cash equivalent balances at September 30, 2008 were as follows:
General fund
Grant special revenue fund
Prisoner welfare fund
Federal equitable sharing fund
I nternal service fund
Agency funds
$ 9,787,900
3,121,781
549,959
971,661
12,199,418
426,505
$ 27,057,224
Custodial Credit Risk
At September 30, 2008, the Sheriff deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
government entity for the loss.
08]0-0999255
15
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13 A '~q
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Interest Rate Risk
The Sheriff has no specific investment policy regarding interest rate risk.
Credit Risk
The Sheriffs policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the
deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415,
Florida Statutes, authorize the Sheriff to invest in the local government surplus funds trust fund;
obligations of the United States Treasury; federal agencies and instrumentalities, or any
intergovernmental pool authorized pursuant to the Florida lnterlocal Corporation Act; Securities
and Exchange Commission registered money market fund with the highest credit quality rating
from a nationally recognized rating agcncy; direct interest-bearing time deposits or savings
accounts in banks organized under the laws of the United States and doing business and situated
in the State of Florida, savings and loan associations, which are under 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.
The Local Government Surplus Funds Trust Fund Investment Pool (the Pool) is administered by
the State Board of Administration. On December 4, 2007, based on recommendations from an
outside financial advisor, thc State Board of Administration restructured the Pool into two
separate pools. Pool A (later renamed LG1P) consisted of all money market appropriate assets,
which was approximately $12 billion or 86% of Pool assets. Pool B (later renamed Fund B
Surplus Trust Fund) consisted of assets that either defaulted on a payment, paid more slowly
than expected, and/or had any significant credit and liquidity risk, which was approximately $2
billion or 14% of Pool assets. In addition, full realization of the principle value of Pool Bassets
is not readily determinablc. At the time of the restructuring, all current pool participants had their
existing balances proportionately allocated into Pool A and Pool B. At September 30, 2008, the
Sheriff had $724,487 invested in the Pool. Of this amount, $692,653 is invcstcd in the LGIP,
which is rated "AAAm" by Standard & Poor's Ratings Services, and $31,834 in the Fund B
Surplus Funds Trust Fund, which is not rated by a nationally recognizcd statistical rating agency.
The LGIP investmcnt is fully liquid and carries a wcighted average days to maturity of 8.5 days.
0810-09St925:i
16
13A\~
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Fund B is accounted for as a t1uctuating NA V (net asset value) pool and the fair value factor for
September 30, 2008 was .798385. The Fund B amount has a weighted average life of 9.36 years.
Fund B cash holdings continue to be distributed to participants as they become available from
maturities, sales and received income.
4. Capital Assets
Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier
County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such
assets are recorded as expenditures in the goverrunental funds of the Sheriff, and are capitalized
at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at
historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are valued at their estimated fair value on the date received. The Sheriff maintains
custodial responsibility for the capital assets used by his office. No depreciation has been
provided on capital assets in these special-purpose financial statements. However, depreciation
expense on these assets is recorded in the basic financial statements of Collier County, Florida.
A summary of changes in capital assets, which are reported in the basic financial statements of
Collier County, Florida follows:
Balance
October 1,
2007
Additions
Balance
Septem ber 30,
Retirements 2008
Machinery and equipment
Less accumulated depreciation
Machinery and equipment, net
$ 57,097,873
(37,200,438)
$ 19,897,435
$ 3,997,937
(7,705,769)
$ (3,707,832)
$ 4,359,799
(4,187,491)
$ 172,308
$ 56,736,0 II
(40,718,716)
$ 16,017,295
0810-0999255
17
---..----..---.--........---------.--.--- "---
13A ~N
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities
The following is a summary of changes in long-term liabilities, which are reported in the basic
financial statements of Collier County, Florida:
October 1,
2007
Increases
September 30,
Retirements 2008
Accrued compensated absences
$ 10,314,977 $ 3,194,868
$ (2,010,778) $] 1,499,067
Of these liabilities, approximately $663,000 is expected to be paid during the fiscal year ending
September 30,2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Sheriff since they have not matured.
6. Interfund Balances and Transfers
Due from and due to other funds at September 30, 2008 were as follows:
Due from
Due to
General fund $ 59,664 $ 100,000
Prisoner welfare special revenue fund 57,664
Federal equitable sharing fund 2,000
Internal service fund 100,000
$ 159,664 $ 159,664
lnterfi.md receivables and payables generally represent recurring activities between funds.
OS!(j.(J'J')')255
18
13A 1
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
7. Related-Party Transactions
The Board of County Commissioners provided funding for the Sheriff for the year of
$152,672,000. At September 30, 2008, the Sheriff had a payable due to the Board of County
Commissioners of$l ,132,119 comprised of the following:
General fund:
Distribution of excess appropriations
Distribution of interest collected
Miscellaneous payables
Agency funds
Total
$ 1,030,555
39,222
13,081
49,261
$ 1,\32,119
Additionally, the Sheriff had a receivable from the Board related to services provided to the
County of $298,246 at September 30,2008.
8. Employee Retirement Plan
Substantially all full-time and part-time employees ofthe Sheriff are eligible to participate in the
State of Florida Retirement System (System), a cost-sharing multiple-employer defined benefit
plan administered by the State of Florida, Division of Retirement. The System is a defined
benefit plan for all state, and participating county, district school board, community college, and
university employees (Pension Plan). The System also offers eligible employees participation in
an alternative defined contribution plan (Investment Plan). The Sheriff and deputies participate
in the Special Risk Class. The plan is administered by the State of Florida. Contribution rates are
established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Sheriff s employees are not determinable.
Employees participating in the Pension Plan who retire at or after' age 62 with 6 years of credited
service for regular risk or with 30 years of service regardless of age, are entitled to a retirement
benefit, payable monthly for life, equal to 1.6% for regular employees, 2% for senior
management, and 3% for county elected officials of their final average compensation for each
year of credited service: and for special risk, after age 55 with 6 years or with 25 years of service
regardless of age, are entitled to a retirement benefit payable monthly for life, up to 3% for each
year of credited service times their final average compensation. Final average compensation is
the employee's average of the five highest years of salary earned during credited service. Vested
employees may retire before age 62 for regular risk and 55 for special risk and receive retirement
0810-0999255
19
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the investment plan are vested after one year of service with no age requirement.
The System also provides death and disability benefits. Benefits are established by Chapter 121,
Florida Statutes and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July 1, 1998. Under this program, the employee may retire and have their
benefits accumulate in the Florida retirement system trust fund, earning interest, while
continuing to work for a System employer. The participation in the program does not change
conditions of cmployment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of thc accumulated DROP benetits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sutlicient assets to pay benetits when due. That report may be
obtained by writing to the Division of Retirement, Department of Management Services, 13 I 7
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.tl.us.
The Sheriff is required to contribute an actuarially determined rate. The current rate is 20.92%
for special risk employees, 16.53% for county elected officials, 9.85% for regular employees,
13.12% for senior management and 10.91 % for DROP employees based on covered payroll. Thc
contribution requirements of the Sherin are established and may be amended by the State of
Florida. The Sheriffs contributions to thc plan for the years ended September 30, 2008, 2007,
and 2006 were $15,179,541, $14,688,803 and $12,207,823, respectively, cqual to the required
contributions for each year.
,
0810-09')4255
20
13 A'~~
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits
Effective October I, 2007, the Sheriff adopted the provIsIOns of GASB Statement No. 45
Accounting and Financial Reporting by Employers for Postemployment Benejits Other Than
Pensions.
Plan Description
The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the
benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for its
retirees who have 6 years of creditable service with the Sheriff and who receive a monthly
retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately
20% for single coverage and 21 % for family coverage for qualifying individuals. Additionally,
in accordance with Florida Statute 112.0801, Sheriffs employees who retire and innnediately
begin receiving benefits from the FRS have the option of paying premiums to continue in the
Sheriff s health insurance plan at the same group rate as for active employees.
At September 30, 2008, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEBplanparticipants 1,374
Retirees receiving benefits 69
Funding Policy
The Sheriff has the authority to establish and amend funding policy. For the year ended
September 30, 2008, the Sheriff contributed $469,998 to the OPEB Plan.
AnnualOPEB Cost and Net OPEB Obligation
The annual cost (expense) of the Sheriffs OPEB Plan is calculated based on the Annual
Required Contribution (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost each year and amortize any unfunded
actuarial liability over a period not to exceed 30 years. The following table shows the
components of the Sheriffs annual OPEB Plan cost for the year ended September 30, 2008, the
amount actually contributed, and the changes in the net OPEB Plan obligation.
OIl]O-0999255
21
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Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end year
$
1,019,866
1,019,866
(469,998)
549,868
$
549,868
No trust or agency fund has been established for the plan; there were no adjustments to the
annual required contribution or interest earnings.
Funded Status and Funding Progress
The contributions made for fiscal ycar 2008 were 46% of the annual OPEB cost. Information for
the two preceding fiscal years is not available as GASB Statement No. 45 was implemented this
fiscal year. As of the September 30, 2008 actuarial valuation date, the OPEB Plan was 0.0%
funded. the actuarial accrued liability for benetits was $9,354,088, and the actuarial value of
assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $9,354,088. The
covered payroll (annual payroll of active employees covered by the OPEB Plan) was $128.2
million, and the ratio of the UAAL to the covered payroll was 7.3%.
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the futurc. Examples include
assumptions about futurc 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.
OglO-0999255
22
13A '_
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected Unit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend rate
4%
4%
8% for the 2009 fiscal year grading to an
ultimate rate of 5% for the 2014 fiscal year
10. Self-Insurance Program
The Sheriffs Office participates in the Statewide Florida Sheriffs Self-Insurance Fund (the
Fund) for its professional liability insurance. The Fund is managed by representatives of the
participating Sheriff offices and provides professional liability insurance to participating
agencies. The Fund provides liability insurance coverage subject to the following limitations:
$3,100,000 for any claim involving a single individual, $3,200,000 for any incident which
involves multiple claims and an aggregate of $3,500,000 ultimate net loss per Sheriff during any
policy period. The Sheriff also participates in the Florida Sheriffs' Self-Insurance Fund program
for workers' compensation coverage. The Florida Sheriffs' Association Workers' Compensation
0810-0999255
23
13A .j'l
Collier County, Florida
Sheriff
Notes to Special-Purpose financial Statements (continued)
10. Self-Insurance Program (continued)
Insurance Trust is a limited self-insurance fund providing coverage for the first $350,000 of
every claim. Reinsurance is provided through a third party for all claims exceeding $350,000 up
to $10,000,000. Settled claims have not exceeded the insurance provided by third-party carriers
in any of the past three years.
Premiums charged to participating Sherif1's 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 Statewide Florida Sheriff s Self-Insurance
Fund.
The Sheriff has also established a selt~funded employee health plan for active employees and
retirees. An internal service fund is used to account for the activities of the plan. Excess coverage
has been purchased which provides specific claim excess coverage for anyone incident
exceeding $150,000 up to $1,000,000. Payments to the internal service fund are based on
actuarial estimates of amounts needed to pay prior year and current year claims including claims
incurred but not yet reported.
Changes in the balance of estimated insurance claims payable for the fiscal year ended
September 30, 2008 is as follows:
Balance
October 1
New Claims
and Changes
in Estimates
Claim
Payments
Balance
September 30
Fiscal year ending:
2008
$ 1,855,000 $15,196,905 $(14,957,905) $ 2,094,000
0810-UYLJ9255
24
,
.'
13A
Collier County, Florida
Sheriff
Notes to Special-Purpose financial Statements (continued)
11. Claims and Contingencies
Litigation
The Sheriff is involved in various claims and legal actions arising in the ordinary course of
operations. In the opinion of management, the ultimate disposition of these matters will not have
a material adverse effect on the Sheriff.
Federal and State Grants
Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these
grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the
opinion of management, disallowed costs, if any, would be immaterial to the financial position of
the Sheriff.
OSjO.0999255
25
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Collier County, Florida
Sheriff
Schedule of Funding Progress
for the Retiree Health Plan
Actuarial
Accrued
Liability (AAL)-
Projected
Unit Credit
Unfunded
AAL
Funded
Ratio
- $
9.354,088 $ 9,354,088
0.0%
13A
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Percentage of
Covered
Payroll
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7.3%
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Report of Independent Certitied Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Special-Purpose Financial Statements
Performed in Accordance With Government Auditing Standards
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Sheriff (the Sheriff) as of and for the
year ended September 30, 2008, and have issued our report thereon dated February 24, 2009. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considercd the SheritT's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Sheriffs internal control over financial reporting.
Accordingly, we do not express an opinion on the etTectiveness of the Sheriffs internal control
over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over financial reporting that might be significant deficiencies or material
weaknesses. However, as discussed below, we identified certain deficiencies in internal control
over financial reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing thcir assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the cntity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a rcmote likelihood that a misstatement of the entity's
special-purpose Jinancial statements that is more than inconsequential will not be prevented or
detcctcd by the entity's internal control. We considcr the tl}llowing deficiency to be a significant
deficiency in internal control ovcr financial reporting:
OX10.09'i9255
28
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2008-1 Accounting for Grant Revenue
Criteria
GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange
Transactions, sets forth the accounting criteria for revenue recognition of most grants.
Condition
The Sheriff recorded grant funds received as deferred revenue for a particular grant in which
the criteria for revenue recognition pursuant to GASB 33 had been met.
Context
Approximately $7,900 was recorded as deferred revenue as of September 30, 2008 related to
the grant in question.
AYfect
Revenue is understated.
Cause
The Sheriff had consistently recorded the grant receipts as deferred revenue and recorded the
related revenue when the funds were ultimately expended; however, the criteria for revenue
recognition had been achieved at the time the grant award was received.
Recommendation
We recommend that the Sheriff review grant award documents to determine when the
eligibility criteria in GASB 33 have been achieved.
Management Response and Corrective Action Plan
Future receipts will be booked as current revenue.
0810-0999255
29
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A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control. Our
consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in the internal control that might be significant deficiencies and, accordingly, would not
necessarily disclose all significant deficiencies that are also considered to be material
weaknesses. However, we do not believe that the signit-icant deficiency described above is a
material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriffs special-purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which
could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
We noted certain matters that we reported to management of the SherifT in a separate letter dated
February 24, 2009.
This report is intended solely for the information and use of the Sheriff, management, others
within the entity, the Board of County Commissioners of Collier County, Florida and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~~T
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February 24, 2009
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Report on Agreed-Upon Procedures Applied to Investigative Funds
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have performed the procedures enumerated below, which were agreed to by management of
the Collier County, Florida, Sheriff (the Sheriff), solely to assist you in evaluating the procedures
and policies as defined by the Sheriff over the investigative funds for the year ended
September 30,2008. The Sheriffs management is responsible for the Sheriffs compliance with
those procedures and policies. This agreed-upon procedures engagement was conducted in
accordance with attestation standards cstablished by the American Institute of Certified Public
Accountants. The sufficiency of these procedures is solely the responsibility of the party
specified in this report. Consequently, we make no representation regarding the sufficiency of
the procedures described below either for the purpose for which this report has been requested or
for any other purpose.
The procedures we performed and our findings are summarized as follows:
. We randomly selected 25 investigative fund disbursements during the fiscal year ended
September 30, 2008 and performed the following procedures with respect to the Sheriff s
policies and procedures over investigative funds.
. We obtained the "Disbursement for Investigation" form noting that the form was
properly completed and authorized by appropriate personnel. No exceptions were noted.
. We obtained the "Purchase of Evidence/Information Voucher" noting that the form was
properly completed to ret1ect the expenses incurred within the investigation procedures,
that the investigative expenditures were properly supported, and that the use of funds was
for authorized purposes. No exceptions were noted.
. We noted that the un-used funds returned, if applicable, were properly deposited per
review of the corresponding deposit and bank statement detail and noted that the amount
deposited agreed to the amount returned per the "Receipt for Funds Received" form
detail. We noted one instance in which the case number on the "Receipt for Funds
Received" form did not agree with the corresponding case number on the "Disbursement
for Investigation" form, however, no exceptions were noted with respect to the amounts
returned and deposited.
0810-0999255
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We were not engaged to and did not conduct an examination, the objective of which would be
the expression of an opinion on compliance. Accordingly, we do not express such an opinion.
Had we performed additional procedures, other matters might have come to our attention that
would have been reported to you.
This report is intended solely for the information and use of the management of the Sheriff, and
is not intended to be and should not be used by anyone other than this specified party.
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February 24, 2009
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Management Letter
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Sheriff (the Sheriff) as of and for the
year ended September 30, 2008, and have issued our report thereon dated February 24, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the State of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated February 24, 2009 on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conj unction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
During the course of our audit we noted that appropriate action had been taken upon certain
recommendations and suggested accounting procedures outlined in the prior year's Management
Letter. Those comments have not been repeated. Prior year comments that were not implemented
or were only partially implemented in the current year have been repeated below:
2007-1 Accountingfor Miscellaneous Charges for Services
Observation
Other than operating transfers from the Board of County Commissions (BOCC) and grant funds,
the Sheriff also receives various types of cash receipts such as for direct reimbursement of
certain expenses, charges for services to third parties such as for providing off duty traffic
control and security details at contracted hourly amounts, as well as fees charged for housing of
federal prisoners at specified rates per prisoner housed. We noted that the Sheriff records these
Q810-0999255
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types of receipts in the general ledger as either a reduction to the related expense in the income
statement (i.e., special details) or as a due to the BOCC with no effect in the income statement as
the related revenue is recorded at the BOCC level since the Sheriff is not a fee officer (i.e.,
housing offederal prisoners).
Recommendation
We recommend that the Sheriff review the various types of miscellaneous receipts to determine
if they are a direct reimbursement of expense and properly recorded as such per accounting
principles generally accepted in the United States (GAAP). Alternatively, if the underlying
transaction is a charge for a scrvice, it should be ret1ected on a gross basis in the Sheriffs
financial statements pursuant to GAAP (i.e., both the revenue and expense ret1ected in the
income statement) and the budget should be amended accordingly. For example, revenues
received for charges for special details should be ret1ected as revenue as opposed to netting the
related expense in accordance with GAAP. The Sheriff should investigate whether similar fees
such as those received for housing of federal prisoners should be reflected on a gross basis in the
Sheriffs financial statements pursuant to GAAP. This should not impact the fees remitted to the
BOCC as the revenue would coincide with a corresponding transfer out to the BOCC for the
funds remitted to it pursuant to Floridu Statutes Section 30.51.
Munagement '5 Current Response
In order to implement this change in reporting for major cash receipt types, we will have to
request that the county Office of Management and Budget draft and process budget amendments
for FY09. We will then have to work with the Budget Office to modify future years' budget
submissions. It is unknown at this timc if the change can be made in the already approved FY09
budget.
Current Year Findings and Recommendations
2008-1 Cash Receipts Process
Observation
As part of the cash receipts process, funds received for deposit into the operating account are
forwarded to the fiscal clerk (or an alternatelback up clerk) responsible for receipt and bank
deposit preparation. The fiscal clerk enters the receipts into thc cash management module of
general ledger system and generates a Receipt jor Funds Received form for each individual cash
receipt. A Cash Receipts by Method report is generated to indicate the total of the cash receipts
for preparation of the bank deposit. Bank deposits are typically prepared by the fiscal clerk but
can be prepared also by the cash supervisor or the manager. Once the deposits are prepared, they
08 1 O.()';J\J'J255
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are secured in a safe until the courier arrives to take the deposit to the bank. The cash clerk and
the other individuals mentioned above all have access to the safe. Typically the cash clerk
accesses the safe to retrieve the deposit for the courier. On rare occasions, when the courier is
not available, or if there is a large deposit late in the day, either the cash supervisor, the manager,
or finance director can make deposits at the bank.
At month end, the Cash Receipt Summary Report is generated from the system which provides a
query of all cash receipts entered by date to be used in the bank reconciliation process. All cash
receipts posted to the general ledger for the month are reviewed against the corresponding bank
statement detail by the budget manager as part of the bank reconciliation process to ensure
completeness of the funds received.
We were informed about an incident that occurred during fiscal year 2008 whereby an
immaterial amount of cash that was received and entered for deposit was allegedly
misappropriated as it was not deposited according to the bank's records. This was identified
through the month end bank reconciliation process. Additionally, we were informed about a
similar occurrence whereby a similar amount of cash was allegedly misappropriated from the
Sheriffs investigative funds around the same time period. Investigate funds are also secured in
the safe and controls are in place surrounding the disbursing and receiving of the cash for
investigative purposes. The individuals with access to the investigative cash in order to distribute
funds to deputies and replenish the funds include the same individuals with access to the safe as
described above.
Recommendation
We recommend that the Sheriff review its current process and determine if duties can be further
segregated surrounding the cash receipts process and access limited further, as appropriate, with
rcspect to cash bank deposits and investigative funds.
The basic idea underlying segregation of incompatible duties is that no employee or group
should be in a position both to perpetrate and to conceal errors or fraud in the normal course of
their duties. In general, the principal incompatible duties to be segregated are:
. Custody of assets,
. Authorization or approval of related transactions aflecting those assets, and
. Recording or reporting of related transactions.
An essential feature of segregation of incompatible duties/responsibilities within an organization
is that no one employee or group of employees has exclusive control over any transaction or
group of transactions. In addition, a control over the processing of a transaction should not be
performed by the same individual who is responsible for recording or reporting the transaction.
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The fiscal clerk, or other individuals as noted above, maintains custody of the cash receipts
(handles receipts of currency, lists checks and prepares bank deposits) and also records receipts
in the general ledger. Although mitigating controls to detect potential improprieties, such as the
bank reconciliation process being performed by an independent individual, are operating
effectively, it would be ideal to implement prevention controls by segregating the duties of
recording in the general ledger and custody of the cash receipts as well as restricting access to
cash deposits and investigative funds to only necessary individuals. If it is not practical to
implement all such measures based on staff resource constraints, we reconnnend that the Sheriff
consider implementing additional monitoring controls over the process such as having someone
independent of the tasks above I) review the bank deposit slip for completeness against the
general ledger cash receipts report and 2) after the deposit is made, verify that the total agrees to
the bank deposit receipt or on-line confirmation on a daily basis. This should be evidenced by a
signature or other sign off on the documents.
Management '.I' Response
The entire cash receipts process is being reviewed and documented in detail. Controls will be
strengthened where possible given stalling limitations.
2008-2 IT Controls
Policies and Procedures
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Observation
Formal IT policies and procedures were unavailable at the time of our audit. The lack of formal
defined IT policies and procedures increases the risk that processes will not be followed, which
could lead to:
. Unauthorized and inappropriate changes being migrated to production
. Unauthorized users being granted inappropriate access to systems
Recommendation
We recommend that the Sheriff document IT policies and procedures. They should be reviewed,
updated, and implemcnted as appropriate to describe the manage change, logical access, and IT
Operations processes around the financial system. Also, procedures around updating,
maintaining and communicating such policies should be documented.
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Management's Response
The Sheriff has documented general IT policies and procedures. However, we agree that policies
need to be developed that specifically address the agency's financial system.
Manage Changes
Observation
A central repository is not in place to maintain supporting documentation (i.e. authorized
requests, testing and approval documentation) for changes being made to the financial system.
We noted that the developer, who is responsible for program change development for the
financial system, maintains the documentation within hislher inbox. The risk exists that if a
developer were to leave the Sheriff s office or inadvertently delete any supporting
documentation, there would be lack of an audit trail to show changes to the system were
appropriately authorized, tested, and approved.
Recommendation
We recommend that Collier County establishes a central repository for maintammg change
management documentation to allow evidence to be obtained more efficiently.
Management's Response
Concur. Future changes will be maintained.
Observation
A segregation of duties issue exists in that the developer has access to develop changes and
migrate those changes into the financial system production environment. An unauthorized and
unapproved change could be promoted to the production environment increasing the risk of key
financial data/programs being intentionally or unintentionally modified. We noted that instances
exist where the developer has moved changes into production during the 2008 audit period. In
addition, a compensating monitoring control is not in place whereby changes moved to
production are periodically reviewed by someone independent of developing and migrating
changes to validate the changes were appropriately authorized, tested, and approved.
0810-0999255
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Recommendation
We recommend that management consider segregating the duties for the development of ehanges
from the migration of changes. If this is not feasible for the organization, given resource
constraints, we recommend that management implement a monitoring control to validate that
changes that are placed into the production environment are authorized, tested, and approved.
This review should consist of a pcrson, independent of developing and migrating changes,
reconciling a system generated list of changes that are in the production environment to formal
documentation to support that the changc was authorized, tested, and approved by the
appropriate individuals.
Management's Response
Because we do have limited resources and we anticipate additional resource constraints in the
future, it is not feasible to segregate thc development and migration duties, but we concur with
the recommendation to implcment a monitoring control.
Logical Security
Observation
The financial system is limited in its password parameter capabilities. The system does not
require a minimum character limit, password complexity, password expiration, or account
lockout. We noted that it is possible to have a "blank" password.
In addition, a formal process is not in place for monitoring user access (i.e. failed log-on). The
risk exists that an unauthorized individual might gain access to critical data and, depending on
access rights, be able to modify such data.
Recommendation
We recommend that a formal process be established to monitor users' access to determine if any
breach in security occurred. We also recommend that IT reach out to the vendor to determine if
system upgrades or fixes exist that would allow for increase strength in password controls to
prevent unauthorized access to the system.
Managemenr's Re,\ponse
We will investigate the possibility of strengthening password controls.
0810-0'19925)
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It should be noted that, while "stronger" passwords would be desirable, there are multiple layers
of password security currently provided. In order to get access to the agency's internal network,
you must have physical access to an agency facility. In the case of the Financial System, that
means access to the Headquarters facility or the Purchasing facility. Access to the internal
network also requires login and password, and this password is a "strong" password, requiring a
minimum of 8-characters, alpha, numeric and special characters, password expiration every 90-
days, and account lockout after 3 unsuccessful tries. In addition, the Financial System has to be
installed on the physical workstation, and it has only been installed on a limited number of
machines, most of which are in the Finance Division area which is not only in a controlled
building, but in an area of the building that is further controlled and secured. Once you have
access to a workstation that has Flexgen loaded on it, you need two more separate login and
passwords, one for Flexgen and one for the Financial System itself.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, regulations, or contractual provisions or
abuse, no improper or illegal expenditures, and no control deficiencies that are not significant
deficiencies other than the internal control recommendations included above.
The Sheriff was established by the Constitution of the State of Florida, Article VIII, Section I (d).
This management letter is intended solely for the information and use of the Sheriff,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
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February 24, 2009
0810-0999255
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Supervisor of Elections
Y ear Ended September 30, 2008
With Report ofIndependent Certified Public Accountants
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Supervisor of Elections
Special-Purpose Financial Statements
Y ear Ended September 30. 2008
Contents
Report of Independent Certified Public Accountants ......................................................................I
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance-
Governmental Funds.............. ....................... ...... ................................................ ... .... ..... ..............4
Special-Purpose Statement of Revenues, Expenditures. and Changes in Fund Balance -
Budget and Actual- General Fund...............................................................................................5
Notes to Special- Purpose Financial Statements............................................................................. ..6
Report on Internal Control Over Financial Rcporting and on Compliance and
Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in
Accordance With Government Auditing Standards....................................................................16
Management Letter ............. ........... ............................... ..... ........................ ..... ............ ........ .... ...... .18
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Report ofIndependent Certified Public Accountants
The Honorable Jennifer J. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund of
the Collier County, Florida Supervisor of Elections (the Supervisor of Elections), as of and for
the year ended September 30, 2008, as listed in the table of contents. These special-purpose
financial statements are the responsibility of the Supervisor of Elections' management. Our
responsibility is to express opinions on these special-purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Supervisor of Elections' internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the efIectiveness of the Supervisor of Elections' internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the special-purpose financial
statements, assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall special-purpose financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.
As discussed in Note I, the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.29, Florida Statutes, and
Chapter 10.577(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a completc presentation of the
Supervisor of Elections' financial position and its changes in financial position, where
applicable, thereof; for the year then ended in conformity with accounting principles generally
accepted in the United States. Additionally, the special-purpose statements present only the
Supervisor of Elections and do not purport to, and do not, present fairly the financial position of
Collier County, Florida, as of September 30, 2008, and the changes in its financial position,
where applicable, for the year then ended, in conformity with accounting principles generally
accepted in the United States.
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In our opinion, the special-purpose tinancial statements referred to above present fairly, in all
material respects, the respective financial position of each major fund of the Supervisor of
Elections as of September 30, 2008, and the respective changes in financial position thereof and
the budgetary comparison for the general fund for the year then ended in conformity with
accounting principles generally accepted in thc United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2008, on our consideration of the Supervisor of Elections' internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over tinancial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over tinancial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
This report is intended solely lor the information and use of the Supervisor of Elections,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the state of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
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Supervisor of Elections
Special-Purpose Balance Sheet - Governmental Funds
September 30, 2008
Grant
General Special Total
Fund Revenue 2008
Assets
Cash and cash equivalents $ 778,335 $ 112,197 $ 890,532
Accounts receivable 25 25
Due from other funds 1,359 1,359
Total assets $ 778,360 $ 113 ,556 $ 891,916
Liabilities and fund balance
Liabilities:
Accounts payable
Accrued liabilities
Due to Collier County, Florida Board
of Commissioners
Due to other funds
Deferred revenue
Total liabilities
$
368,702 $
39,012
- $
368,702
39,012
778,360
87,168
87,168
369,287
1,359
87,168
865,528
369,287
1,359
Fund balance
Total liabilities and fund balance
$ 778,360 $
26,388
113,556 $
26,388
891,916
See accompanying notes.
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Supervisor of Elections
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Governmental Funds
For the Year Ended September 30, 2008
Grant
General Special Total
Fund Revenue 2008
Revenues:
Intergovernmental $ 13.323 $ 119,546 $ ] 32,869
Interest 4,646 4,646
Total revenues 13,323 124,192 137,515
Expenditures:
General government:
Personal services 1,619,698 J ,619,698
Operating expenditures 1.857,013 133,520 1,990,533
Capital outlay 119,637 119,637
Total expenditures 3,596,348 133,520 3,729,868
Excess of expenditures over revenues (3,583,025) (9,328) (3,592,353)
Other tinancing sources (uses):
Transfers in:
General Fund 5,355 5,355
Collier County, Florida Board of
County Commissioners appropriations 3.947,400 3,947,400
Operating transfers out:
Special Revenue Fund (5,355) (5,355)
Collier Countv Clerk of Circuit Courts (37,000) (37,000)
Distribution of excess appropriations:
Collier County, Florida Board of
-, '., .. (327,020) (322,020)
County CommiSSioners
Total other financing sources 3.583,025 5,355 3,588,380
Excess of revenues and other financing
sources over expenditures
(3,973)
(3,973)
Fund balance- October 1, 2007
Fund balance ~ September 30, 2008
$
$
30,361
26,388 $
30,361
26,388
See accumpanying noles.
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Collier County, Florida
Supervisor of Elections
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual- General Fund
For the Year Ended September 30, 2008
Variances with
Final Budget
Budget Positive
Original Final Actual (Negative)
Revenues $ -- $ - $ 13,323 $ 13,323
Expenditures:
General government:
Personal services 1,728,500 1,775,650 1,619,698 155,952
Operating expenditures 2,177,900 2,104,539 1,857,013 247,526
Capital outlay 3,500 24,856 119,637 (94,781)
Total expenditures 3,909,900 3,905,045 3,596,348 308,697
Excess of expenditures over revenues (3,909,900) (3,905,045) (3,583,025) 322,020
Other financing sources (uses):
Operating transfers in:
Collier County, Florida Board of
County Commissioners appropriations 3,909.900 3,947,400 3,947,400
Operating transfers out:
Special Revenue Fund (5,355) (5,355)
Collier County Clerk of Circuit Courts (37,000) (37,000)
Distribution of excess appropriations:
Collier County, Florida Board of
County Commissioners (322,020) (322,020)
Total other financing sources 3,909,900 3,905,045 3,583,025 (322,020)
Excess of revenues and other financing
sources over expenditures
Fund balance - October I, 2007
Fund balance- September 30, 2008
$
- $
- $
- $
See accompanying notes.
08]1-1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies and Practices
Reporting Entity
The Collier County, Florida Supervisor of Elections (Supervisor of Elections) is an elected
constitutional officer as provided for by the Constitution of the state of Florida. Pursuant to
Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier
County, Florida Board of County Conunissioners (Board) for approval.
The special-purpose financial statements presented include the general fund and grant special
revenue fund of the Supervisor of Elections' office. The accompanying special-purpose financial
statements were prepared for the purpose of complying with Section 218.39, Florida Statutes,
and Section 10.557(3), Rules of the Auditor Generalfor Local Governmental Entity Audits.
Section] 0.556(4), Rules of the Auditor Generalfor Local Governmental Entity Audits, requires
the Supervisor of Elections financial statements to only present fund financial statements.
Accordingly, duc to the omission of government-wide financial statements and related
disclosures including a management's discussion and analysis, these special-purpose financial
statements do not constitute a complete prescntation of thc financial position of the Supervisor of
Elections as of September 30, 2008. and the changes in its tinancial position for the year then
ended, in conformity with Governmental Accounting Standards Board (UASB) Statement
No. 34, Busic Financial Stalements and Management's Discussion and Analysis - jiJr State
and Local Governments, but otherwisc constitute financial statements prepared in conformity
with accounting principles generally accepted in the United States of America.
As a result of the budgetary ovcrsight by the Board and linancial dependency on the Board, the
financial activities of the Supervisor of Elections are included in the Collier County, Florida (the
County) Comprehensive Annual Financial Report
Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and
budgeted general fund balances must equal appropriations. The Supervisor of Elections is
required to refund to the Board all excess appropriations annually; thereforc, no unappropriated
general fund balance is carried forward.
0811-IOOlg(j,\
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13A -111
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed information about the Supervisor
of Elections. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the tlow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheet. Operating statements for this fund present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets.
The Supervisor of Elections has the following major governmental funds:
General Fund ~ The general fund is used to account for the general operations of the
Supervisor of Elections, and includes all revenues and expenditures that are not accounted
for in another fund.
Grant Special Revenue Fund ~- Thc grants fund is used to account for the activities of voter
education and poll worker training grants from the State of Florida.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance liabilities of the current fiscal year). For this
purpose, the Supervisor of Elections considers revenues to be available if they are collected
within 60 days atler 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 thc Board are the primary source of funds considered to be susceptible
to accrual.
Intergovernmental revenues are recognized when
amounts are available from the grantor.
eligibility requirements are met and related
08! ]-1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies Practices (continued)
Interest income and other revenues are recognized as they are earned and become measurable
and available to pay liabilities of the current period.
Florida Statutes provide that the amount by which revenues and transfers exceed mmual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenues were recognized.
The amount of this distribution is recorded as a liability and as an other financing use in the
accompanying special-purpose financial statements.
Capital outlays expended in general fund operations are capitalized in the basic financial
statements of the County rather than in the governmental funds of the Supervisor of Elections.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original matunUes of three
months or less. Cash equivalents in the Local Government Surplus Trust Fund are administered
by the State Board of Administration (SBA), a 2a-7-like investment pool. Shares of the
investment pool are based on thc pool's share price, which approximates fair value. At
September 30, 2008, the Supervisor of Elcctions had no amounts on deposit in the SBA.
Compensated Absences
All full-time employees of thc Supervisor of Elections are allowed to accumulate an unlimited
number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective
October 1, 2007, the vacation leave limit was increased to 480 hours. Upon termination,
employees receive 100% of allowable accumulated vacation hours and a percentage of unused
sick leave, depending on years of scrvicc. Vacation timc and sick leave are included in operating
costs when the payments are made to employees. Thc Supervisor of Elections does not, nor is
she legally required to accumulate linancial resources for these unmatured obligations.
Accordingly, the liability Ilx compcnsated absences is not reported in the general fund, but rather
is reported in the basic tinancial statements ofthc County.
O,slj-IOOI,s'n
8
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13A '~II
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Use of Estimates
The preparation of the special-purpose financial statements requires management of the
Supervisor of Elections to make a number of estimates and assumptions relating to the reporting
of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Supervisor of
Elections' annual budget. The Supervisor of Elections submits a budget for the general fund to
the Board of County Commissioners for approval. The budget is prepared on a basis consistent
with accounting principles generally accepted in the United States of America. The annual
budget serves as the legal authorization for expenditures. Any subsequent amendments to the
Supervisor of Elections' total budget must be approved by the Board. Expenditures may not
legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary
control is maintained at the departmental major object expenditure level. Budgetary changes
within major object expenditure categories are made at the discretion of the Supervisor of
Elections.
The Supervisor of Elections does not budget for the grant special revenue fund as it is funded by
State grants and is governed by those documents.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
081 ].1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008, the carrying value of the Supervisor of Elections' cash and cash
equivalents was as follows:
Type
Carrying
Value
Credit
Rating
Cash on hand
Demand deposits
Total cash and cash equivalents
$ 200
890,332
$ 890,532
N/A
N/A
Custodial Credit Risk
At September 30, 2008, the Supervisor of Elections' deposits were entirely covered by federal
depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter, in thc event of default by a participating financial
institution (a qualified public depository), all participating institutions are obligated to reimburse
the govcrnmental entity for the loss.
Credit Risk
The Supervisor of Elections' policy is to follow the guidance in Section 219.075, Florida
Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections
219.075 and 218.415, Florida Statutes, authorizc the Supervisor of Elections to invest in the
Local Governmcnt Surplus Funds Trust Fund or any intergovernmental investment pool
authorized pursuant to the Florida lnterlocal Cooperation Act; Securities and Exchange
Conunission registered money market funds with the highest credit quality rating Ii-om a
nationally recognized rating agency; dircct obligations of thc United States Treasury; federal
agcncies and instrumentalities or interest-bearing time deposits or savings accounts in banks
organized undcr the laws of thc United States and doing business and situated in thc statc of
Florida, savings and loan associations which are under slale supervision, or in fcdcral savings
and loan associations located in the state of Florida and organized under fcderal law and federal
supervision. provided that any such deposits are secured by collateral as may be prcscribed
bv law
- .
081]-10UI8'14
10
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Interest Rate Risk
The Supervisor of Elections has no specific investment policy regarding interest rate risk.
4. Capital Assets
Capital assets used by the Supervisor of Elections are reported in the basic financial statements
of the County rather than in the governmental funds of the Supervisor of Elections. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Supervisor of
Elections, and are capitalized at cost in the basic financial statements of the Board. Capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available.
Donated capital assets are valued at their estimated fair value on the date received. The
Supervisor of Elections maintains custodial responsibility for the capital assets used by the
office. No depreciation expense has been provided on capital assets in these special-purpose
financial statements. However, depreciation expense is recorded in the basic financial statements
of the Board.
5. Long-Term Liabilities
The following is summary of changes in long-term liabilities that are reported in the basic
financial statements of the County:
September 30,
2007 Increase
September 30,
Retirement 2008
Accrued compensated absences $ 108,604
$ 93,968
$ 43,632
$ 158,940
Of these liabilities, approximately $43,600 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Supervisor of Elections since they have not matured.
0811.)001894
I I
1. 3 A ..~'"
Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plans
Substantially all full-time employees of the Supervisor of Elections filling regularly established
positions are eligible to participate in the State of Florida Retirement System (System), a
cost-sharing, multiple-employer defined benefit plan administered by the State of Florida,
Division of Retirement. The System is a defined benefit plan for all state, and participating
county, district school board, community college, and university employees (Pension Plan). The
System also offers eligible employees participation in an alternative defined contribution plan
(Investment Plan). The Supervisor of Elections participates in the Elected State Officers' Class.
The plan is administered by the State of Florida. Contribution rates are established statewide for
all participating governmental units. Accordingly, the actuarial information and related
disclosures attributable to the Supervisor of Elections' employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with six years of
credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit,
payable monthly for life, equal to 1.6% for regular employees, 2.0% for senior management and
3.0% for county elected officials for each year of credited service times the final average
compensation. Final average compensation is the employce's average of the live highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
receive bene tits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the Investment Plan are vestcd after one year of service with no age requirement.
The System also provides death and disability benetits. Benefits are established by Chapter 121,
Florida Statutes, and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benelits ltw a specified and limited period for members of the
System, effective July I, 1998. Under this program. the employee may retire and have their
bcncfits accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a system employer. The participation in the program does not change
conditions of employment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP benefits and begin receiving their monthly retirement benefit
(in thc samc amount detcrmined at retirement, plus annual cost-of-living increases).
08ll-] OO! X()~
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plans (continued)
The System publishes an annual report that provides 10-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement Research Education and Policy Section, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.f1.us.
The Supervisor of Elections is required to contribute an actuarially determined rate. The current
rate is 16.53% for county elected officials, 13.12% for senior management, 9.85% for regular
employees, and 10.91% for DROP employees. The contribution requirements of the Supervisor
of Elections are established and may be amended by the State of Florida. The Supervisor of
Elections' contributions to the plan for the years ended September 30, 2008, 2007, and 2006,
were $127,461, $117,905, and $88,644, respectively, equal to the required contributions for
each year.
7. Other Postemployment Healthcare Benefits (OPE B) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
Plan Description
The Supervisor of Elections participates in a group health care plan that covers eligible retirees,
and their dependents, of the Board and all Constitutional Officers with the exception of the
Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does
not issue a stand-alone financial report; however, additional actuarial information regarding the
plan as a whole is disclosed in the notes to the basic financial statements of the County.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
0811-1001894
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose financial Statements (continued)
7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued)
age 62 and have six years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the mcdical plan. The Supervisor of Elections provides no subsidy to the retiree, or
their dependents, for group health care.
funding Policy
The contribution requirements of the plan members and the employers are established and may
be amended by the County. The plans are financed by the participating agencies on a pay as you
go basis through the County's self-insurance internal service fund. The Supervisor of Elections
contributes an additional amount to the County per each active employee to accumulate
resources to fund retiree health care. The Supervisor of Elections contributed $2,525 to the group
health plan during the fiscal year ended September 3(). 2008. The Supervisor of Elections' share
of the County's net OPEB obligation at September 3(), 2008, was $5,681, which is recorded in
the basic linancial statements of the County.
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in 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 amortizc any unfunded actuarial liabilities over a
period not to exceed 30 years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the linancial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
For the year ended September 30, 7008, the Board provided funding for the Supervisor of
Elections that amounted to $3,947.400. At September 30, 2008, the Supervisor of Elections had a
payable due to the Board of $369,287 eompriscd as follows:
Distribution of excess appropriations
Distribution of excess fee special election
Distribution of interest earnings
Amounts due for various services
Total due to the Board
$ 220,539
101.481
40,969
6,298
$ 369,287
USjj-1UUIS'J..J
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Collier County, Florida
Supervisor of Elections
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management
The County is exposed to various risks of loss including, but not limited to, general liability,
health and life, property and casualty, auto and physical damage, and workers' compensation.
The County is substantially self-insured and accounts for and finances its risk of uninsured losses
through an internal service fund. All liabilities associated with these self-insured risks are
reported in the basic financial statements of the County. During the year ended September 30,
2008, the Supervisor of Elections was charged $186,]25 by the County for participation in the
risk management program.
The County provides coverage for up to $350,000 per claim for workers' compensation and has
purchased outside excess coverage for up to $25 million for employee liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature.
The County also provides coverage for up to $200,000 per claim for public official's errors and
omissions claims and has purchased outside excess coverage for up to $5 million per claim.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third-party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetime limit of $2,000,000.
10. Contingencies
Grant funds received by the Supervisor of Elections are subject to audit by grantor agencies.
Audits of these grants may result in disallowed costs, which may constitute a liability of the
office of the Supervisor of Elections. In the opinion of management, disallowed costs, if any,
would be immaterial to thc financial position of the Supervisor of Elections.
0811-100]894
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Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Special-Purpose Financial
Statements Performed in Accordance With Government Auditing Standards
The Honorable Jennifer 1. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the special-purpose financial statements of each major fund of the Collier
County, Florida Supervisor of Elections (the Supervisor of Elections) as of and for the year
ended September 30, 2008, and have issued our report thereon dated December 10, 2008. We
conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Supervisor of Elections' internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the special-purpose financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Supervisor of Elections' internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Supervisor of Elections' internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detectcd by the entity's intcrnal control.
A material weakness is a signiticant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
linancial statements will not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be signiticant deficiencies or material weaknesses. We did not
identify any deficiencics in internal control over financial reporting that we consider to be
matcrial weaknesses, as defined above.
OSII-]()(JIS91
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' special-
purpose financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
special-purpose financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Supervisor of Elections,
management, others within the entity, the Board of County Commissioners of Collier County,
Florida and the Auditor General of the state of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
~T
December 10, 2008
0811-1001894 17
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Management Letter
The Honorable Jennifer J. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the special-purpose financial statemcnts of each major fund of the Collier
County, Florida Supervisor of Elections (the Supervisor of Elections) as of and for the year
ended September 30, 2008, and have issued our report thereon dated December 10,2008.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the state of Florida and
require that certain items be addressed in this lctter.
We have also issued our report dated December 10, 2008, on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
There werc no findings or recommendations made in thc preceding annual financial audit.
Current Year Findings and Recommendations
There are no findings or recommendations to be reported as a result of our audit.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds werc identified within the scope of our audit.
The rcsults of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies.
Thc Supervisor of Elections was established by thc Constitution of the state of Florida,
Article VIII, Section I (d).
0811.]D(J1894 18
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This management letter is intended solely for the information and use of the Supervisor of
Elections, management, the Board of County Commissioners of Collier County, Florida, and the
Auditor General of the state of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
~of
December 10, 2008
0811 ~ 100 1894
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SPECIAL-PURPOSE FINANCIAL STATEMENTS
Collier County, Florida
Tax Collector
Years Ended September 30, 2008 and 2007
With Report oflndependent Certified Public Accountants
0810-0995776
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Collier County, Florida
Tax Collector
Special-Purpose Financial Statements
Years Ended September 30, 2008 and 2007
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheets. General Fund ............................................................................3
Special-Purpose Statements of Revenues, Expenditures, and Changes in Fund Balance-
General Fund.......................................................................................................................... .......4
Special-Purpose Statement of Revenues, Expenditures. and Changes in Fund Balance -
Budget and Actual- General Fund - Budgetary Basis ...............................................................5
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds.........................6
Notes to Special-Purpose Financial Statements.... ..................................................... ..... ........... ...... 7
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in
Accordance with Government Auditing Standards.....................................................................19
Management Letter................ ............................... ............ ................. .............. ...... ......... ........ ... ... .21
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Report of Independent Certified Public Accountants
Honorable Guy L. Carlton, Tax Collector
Collier County, Florida
We have audited the accompanying special-purpose financial statements of the general fund and
the aggregate remaining fund information of the Collier County, Florida Tax Collector (the Tax
Collector), as of and for the years ended September 30, 2008 and 2007, as listed in the table of
contents. These special-purpose financial statements are the responsibility of the Tax Collector's
management. Our responsibility is to express opinions on these special-purpose financial
statements based on our audit.
We conducted our audits in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Tax Collector's internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Tax Collector's internal control over tinancial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the special-purpose financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
special-purpose financial statement presentation. We believe that our audits provide a reasonable
basis for our opinions.
As discussed in Note I, the accompanying special-purpose tinancial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Chapter
10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the Tax
Collector's financial position and its changes in financial position, where applicable, therefore,
for the year then ended, in conformity with accounting principles generally accepted in the
United States. Additionally, the special-purpose statements present only the Tax Collector and do
not purport to, and do not, prcsent fairly the financial position of Collier County, Florida, as of
September 30, 2008 and 2007, and the changes in its financial position, where applicable, for the
years then ended, in conformity with accounting principles generally accepted in the United
States.
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of the general fund and the aggregate
remaining fund information of the Tax Collector as of September 30, 2008 and 2007, and the
respective changes in financial position, thereof, and the budgetary comparison for the general
fund for the years then ended in conformity with accounting principles generally accepted in the
United States.
In accordance with Government Auditing S'tandards, we have also issued our report dated
December J 0, 2008 on our consideration of the Tax Collector's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over tinancial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
This report is intended solely for the information and use of the Tax Collector, management, the
Board of County Commissioners of Collier County, Florida, and the Auditor General of the State
of Florida, and is not intended to be and should not be used by anyone other than these specified
parties.
~T
December 10, 2008
0810.(J';J'J577(,
2
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Collier County, Florida
Tax Collector
Special-Purpose Balance Sheets - General Fund
September 30, 2008 and 2007
2008 2007
Assets
Cash and cash equivalents
Due from other funds
Interest receivable
Prepaid rent
Security deposit
Total assets
$ 11,274,120
64,941
$ 10,857,529
46,710
29,921
4,628
4,628
$ II ,348,317
$ 10,934,160
Liabilities and fund balance
Liabilities:
Accounts payable
Due to Collier County, Florida Board of
County Commissioners
Due to other governmental agencies
Total liabilities
Fund balance
Total liabilities and fund balance
$
25,213 $
24,782
10,083,315
1,239,789
11,348,317
9,750,322
1,159,056
10,934,160
$ 11,348,317 $ 10,934,160
See accompanying notes.
0810-0995776
3
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Collier County, Florida
Tax Collector
Special-Purpose Statements of Revenues, Expenditures,
and Changes in Fund Balance - General Fund
Years Ended September 30, 2008 and 2007
2008
2007
Revenues:
Commissions and fees
Miscellaneous
Total revenues
$ 22,083,395
687,701
22,771,096
$ 21,578,802
756,222
22,335,024
Expenditures:
General government:
Personal services
Operating
Capital outlay
Distribution of excess commissions and fees to other
governmental agencies
Total expenditures
Excess ofrevenues over expenditures
9,092,126
2,145,297
210,569
8,367,490
2,532,138
526,018
1,239,789
12,687,781
10,083,315
1,159,056
12,584,702
9,750,322
Other financing uses:
Distribution of excess commissions and
fees to Collier County, Florida Board of County
Commissioners
Total 0 ther financing uses
(10,083,315)
(10,083,315)
(9,750,322)
(9,750,322)
Excess of revenues over expenditures and other financing uses
Fund balance, beginning of year
Fund balance, end of year
$
$
See accompanying notes.
UH]U-099577lj
4
13A~~
Collier County, Florida
Tax Collector
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual - General Fund
Year Ended September 30, 2008
Variance With
Final Bndget
Positive
Actnal Negative
Budget
Original Final
Revenues:
Commissions and fees
Miscellaneous
Total revenues
$
$22,083,395
687,701
22,77] ,096
$ 22,083,395
687,701
22,771,096
$ 2],9]2,237
645,000
22,557,237
Expenditures:
General govemment:
Personal services
Operating
Capital outlay
Total expenditures
9,092,126
2,145,297
210,569
1 ],447,992
9,208,581
2,236,392
103,41 ]
11,548,384
9,092,126
2,145,297
210,569
1 ],447,992
] 1,323,104
11,323,104
11,008,853
. Excess ofrevenues over expenditures
Other financing uses:
Distribution of excess commissions
and fees to Collier County, Florida
Board of County Commissioners
Distribution of excess commissions
and fees to other governmental
agencIes
Total other tinancing uses
(10,083,315) (10,083,3]5)
(9,907,968)
(1,239,789)
(11,323,104)
(1,100,885)
( 11,008,853)
(1,239,789)
(11,323,104)
Excess of revenues over expenditures
and other financing uses
Fund balance, beginning of year
Fund balance, end of year
- $
- $
$
$
See accompanying notes.
5
0810-0995776
13A
,"
,
Collier County, Florida
Tax Collector
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds
September 30, 2008 and ~007
2008 2007
Assets
Cash and cash equivalents $ 4,927,906 $ 4,303,742
Accounts receivable 5,777 11,101
Interest receivable 10,811
Total assets $ 4,933,683 $ 4,325,654
Liabilities
Due to other funds $ 64,941 $ 46,710
Due to Collier County, Florida Board of
County Commissioners 809,788 741,481
Due to other governmental agencies 2,594,639 2,414,110
Due to individuals and businesses 1,464,315 1,123,353
Total liabilities $ 4,933,683 $ 4,325,654
See accompanying notes.
0811J-U995776
6
1. 3 A'~II
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements
September 30, 2008
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Tax Collector (Tax Collector) is an elected constitutional officer as
provided for by the Constitution of the State of Florida. Pursuant to Chapter 195.087, Florida
Statutes, the Tax Collector's budget is submitted to the Florida Department of Revenue for
approval, and a copy is forwarded to the Collier County, Florida Board of County
Commissioners (Board).
The special-purpose financial statements presented include the general fund and agency funds of
the Tax Collector's office. The accompanying special-purpose financial statements were
prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section
10.557(3), Rules of the Auditor Generalfor Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor General jiJr Local Governmental Entity Audits, requires
the Collier County, Florida Tax Collector to only present fund financial statements. Accordingly,
due to the omission of certain financial statement disclosures including a management's
discussion and analysis, these special-purpose financial statements do not constitute a complete
presentation of the financial position of the Collier County, Florida Tax Collector as of
September 30, 2008 and 2007 and the changes in its financial position for the years then ended,
in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic
Financial Statements- and Management's Discussion and Analysis - for State and Local
Governments, but otherwise constitute special-purpose financial statements prepared in
conformity with U.S. generally accepted accounting principles (GAAP).
The financial activities of the Tax Collector, as a constitutional officer, are included in the
Collier County, Florida Comprehensive Annual Financial Report.
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statcments report detailed information about the Tax
Collector. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is reported in a separate column.
0810~OQ95776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally, are included on the special-purpose
balance sheets. Operating statements for these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets. Thc Tax Collector's only governmental fund is the general fund. The general fund is used
to account for the general operations of the Tax Collector and includes all transactions not
accounted for in another fund.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Tax Collector considers revenues to be available if they are collected within 60 days
after the end of the current period. Expenditures are rccorded when the related fund liability is
incurred, except for certain compensated absences. which are recognized as expenditures to the
extent thev have matured.
-
Interest income and other revenuc 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 rcquirements. These resources are reflected as revenue at the time of receipt; earlier
if the "susceptible to accrual" criteria is met.
Florida Statutes provide that thc amount by which revenues exceed annual expenditures be
remitted to each governmental agency immediately following the fiscal year for which the
funding was provided or following the fiscal ycar during which other revenue was recognized.
Florida Statutes further provide that the excess of revenues ovcr expenditures held by the Tax
Collector be distributed to each governmental agency in the same proportion as the commissions
and fees paid by cach governmcntal agency bear to total commission and l"ee revenue. The
amounts ofthesc distributions are rccorded as liabilitics and as an expenditurc or other financing
uses in thc accompanying special-purpose linancial statements.
OlllO-0995T'6
8
. 3 A~"
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expended in the general fund operations are capitalized in the basic financial
statements of Collier County, Florida (the County) rather than in the governmental funds of the
Tax Collector.
Fiduciary Funds
Agency Funds - Fiduciary funds are used to account for assets held by the Tax Collector in a
trustee capacity or as an agent for individuals, private organizations, and other governments.
Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of
results of operations or have a measurement focus. Agency tunds are accounted for using the
accrual basis of accounting.
Cash and Cash Equivalents
Cash and cash equivalents are highly liquid investments with original maturities of three months
or less.
Compensated Absences
All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of
hours of unused sick time and up to 240 hours of unused vacation leave. Upon termination,
employees receive 100% of allowable accumulated vacation hours and a percentage of unused
sick leave, depending on years of service. Vacation and sick leave payments are included in
operating costs when the payments are made to the cmployees. The Tax Collector does not, nor
is he legally required to accumulate financial resources for these unmatured obligations.
Accordingly, the liability for compensated absences is not reported in the general fund, but rather
is reported in the basic financial statements of Collier County, Florida.
Property Taxes
Property taxes in Collier County are levied by the Board and other taxing authorities. The
millage levies are determined on the basis of estimates of revenue needs and the total taxable
valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad
valorem tax millage in excess of 10 mills on the dollar can be levied by the Board of County
Commissioners against property in the County as specified in Florida Statutes Section 200.071.
0810-0995776
9
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
L Summary of Significant Accounting Policies (continued)
Each year the total taxable property valuation is established by the Collier County, Florida
Property Appraiser, and the list of property assessments is submitted to the State Department of
Revenue for approval. Taxes, assessed as of December I of each year, are due and payable on
November I 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 bet()re April I of the year following the year in which the tax was assessed.
Chapter 197, Florida Statutes, governs property tax collections as follows:
Current Taxes
All property taxes become due and payable on November I, and are delinquent on April I
of the following year. Discounts arc 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 land is 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.
08]0-0995776
10
13A
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
L Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of these special-purpose financial statements requires management of the Tax
Collector to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's
annual budget. The Tax Collector submits a budget for the general fund to the Florida
Department of Revenue for approval. A copy of the approved budget is provided to the Board of
County Commissioners. Any subsequent amendments to the Tax Collector's total budget must
be approved by the Florida Department of Revenue. The budget for the general fund is prepared
on a basis consistent with U.S. generally accepted accounting principles. The annual budget
serves as the legal authorization for expenditures. Expenditures may not legally exceed
appropriations at the fund level. Appropriations lapse at year end. Budget control is maintained
at the departmental major object expenditure level. Budgetary changes within major object
expenditure categories are made at the discretion of the Tax Collector.
The original budget is the first complete 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.
There is a difference between the budgetary basis of accounting and GAAP in the treatment of
excess fee distributions to entities outside of the County's reporting entity. On a budgetary basis,
distributions of excess fees through this fund are reported as other financing uses. On a GAAP
basis, these distributions are reported as expenditures because there is a reduction in the new
financial resources of the County.
0::;10-0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2008 and 2007, the carrying value of" the Tax Collector's cash and cash
equivalents were as follows:
Type
2008
Carrying
Value
2007
Carrying
Value
Credit
Rating
Cash on hand
Demand deposits
Total cash and cash equivalents
$ 33.010
16,169,016
$ 16,202,026
$ 31,470
15,129,80 I
$15,161,271
N/A
N/A
Such amounts are reported as $11,274,120 and $4,927,906 f"or 7008 and $10,857,529 and
$4,303,742 for 2007 in the governmental and agency funds, respectively.
Custodial Credit Risk
At September 30, 2008, the Tax Collector's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in the event of default hy a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
goverruncntal entity for the loss.
interest Rate Risk
The Tax Collector has no specific investment policy regarding interest rate risk.
Credit Risk
The Tax Collector's policy is to f"ollow the guidance in Section 219.075, Florida Statutes,
regarding the deposit of funds received and thc investment of surplus funds. Sections 719.075
and 218.415, Florida Statutes, authorize the Tax Collector to invcst in the Local Government
Surplus Funds Trust Fund or any intcrgovernmcntal investment pool authorized pursuant to the
Florida lnterlocal Cooperation Act: Securities and Exchange Commission registered money
markct funds with the highest credit quality rating Irom a nationally recognized rating agency;
()~lCH)99577(i
12
.
.
1 3A 1111II
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
direct obligations of the United States Treasury; federal agencies and instrumentalities or
interest-bearing time deposits or savings accounts in banks organized under the laws of the
United States and doing business and situated in the state of Florida, savings and loan
associations which are under state supervision, or in federal savings and loan associations located
in the state of Florida and organized under federal law and federal supervision, provided that any
such deposits are secured by collateral as may be prescribed by law.
4. Capital Assets
Capital assets used by the Tax Collector are capitalized in the basic financial statements of
Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector,
and are capitalized at cost in the basic financial statements of the Collier County, Florida. Capital
assets are valued at historical cost or estimated historical cost if actual historical cost is not
available. Donated capital assets are valued at their estimated fair value on the date received. The
Tax Collector maintains custodial responsibility for the capital assets used by the office. No
depreciation expense has been provided on capital assets in these special-purpose financial
statements. However, depreciation expense on these assets is recorded in the basic financial
statements of Collier County, Florida.
5. Long-Term Liabilities
The following is a summary of changes in long-term liabilities which are reported in the basic
financial statements of Collier County, Florida:
October 1
2007
Net
additions
September 30
2008
Accrued compensated absences
$1,041,948
$95,691
$1,137,639
Octo ber 1
2006
Net
additions
September 30
2007
Accrued compensated absences
$889,024
$152,924
$1,041,948
0810-0995776
13
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities (continued)
Of these liabilities, approximately $ 150,000 is expected to be paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the special-purpose financial
statements of the Tax Collector since they have not matured.
6. Employee Retirement Plan
Substantially all full-time employees of the Tax Collector are eligible to participate in the State
of Florida Retirement System (System), a cost-sharing multiple-employer defined benefit plan
administered by the State of Florida, Division of Retirement. The System is a defined benefit
plan for all state, and participating county, district school board, community college, and
university employees (Pension Plan). The System also offers eligible employees participation in
an alternative defined contribution plan (Investment Plan). The Tax Collector participates in the
Elected State Officers' Class. The plan is administered by the State of Florida. Contribution rates
are established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Tax Collectors' employees are not
determinable.
Employees participating in the Pension Plan who retire at or after age 62 with six years of
credited service, or with 30 years of scrvicc regardless of age, are entitled to a retirement benefit,
payable monthly for life, equal to 1.6% for regular employees, 2% for senior management, and
3% for county elected officials for each year of credited service times their final average
compensation. Final avcrage compensation is the employee's average of the five highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
receive benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the Investment Plan are vested after one year of servicc with no age requirement.
The System also provides death and disability benetits. Bencfits are established by Chapter 121,
Florida Statutes, and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retircment benelits for a specified and limited period for members of the
System, effcctive July I, ] 998. Under this program, the employee may retire and have their
benefits accumulate in the Florida Rctirement System Trust Fund, earning interest, while
continuing to work for a System employcr. The participation in the program does not change
conditions of employment. When thc DROP period ends, maximum of 60 months, employment
081 (J-(j9Sl577~
14
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan (continued)
must be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP benefits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement, Department of Management Services, 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at btm://www.fr~.stat..)L~.~.
The Tax Collector is required to contribute an actuarially determined rate. The current rate is
16.53% for county elected officials, 13.12% for senior management, 9.85% for regular
employees, and 10.91% for DROP employees of covered payroll. The contribution requirements
of the Tax Collector are established and may be amended by the State of Florida. The Tax
Collector's contributions to the plans for the years ended September 30, 2008, 2007, and 2006
were $643,986, $595,152 and $439,343, respectively, equal to the required contributions for each
year.
7, Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benejits Other Than
Pensions.
Plan Description. The Tax Collector participates in a group health care plan that covers eligible
retirees, and their dependents, of the Board of County Commissioners and all Constitutional
Officers with the exception of the Sheriff. The Board administers the plan and establishes the
benefits. The healthcare plan does not issue a stand-alone financial report, however additional
actuarial information regarding the plan as a whole is disclosed in thc Notes to the Financial
statements of Collier County.
As required by Section ] 12.081, Florida Statutes, retirees and their eligible dependents are
provided the same health care coverage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active medical plan by paying the active rate if they have attained
08l0-0995776
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued)
age 62 and have six years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. In addition, the Tax Collector provides a 100% subsidy for
retirees between the ages of 55 and 65 with more than 10 years of service and 800 hours of
accumulated sick leave to remit at the time of retirement.
Funding Policy. The contribution requirements of the plan members and the employers are
established and may be amended by the County. The plans are financed by the participating
agencies on a pay as you go basis through the County's self insurance internal service fund.
The Tax Collector contributes an additional amount to the County per each active employee to
accumulate resources to fund retiree health care. The Tax Collector contributed $4,410 to the
group health plan during the fiscal year ended September 30, 2008. The Tax Collector's share of
the County's net OPEB obligation at September 30. 2008 was $9,921, which is recorded in the
basic financial statements ofthe Countv.
.
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
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 in
October 2008. The notes to the financial statements of thc County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
During the fiscal years ended September 30, 2008 and 2007, the Board paid commissions and
fees to the Tax Collector that amounted to $20,277,863 and $19,962,056, respectively. At
September 30, 2008 and 2007, the Tax Collector had a payable due to the Board of County
Commissioners of $1 0,893'\ 03 and $10.491,803, respectively, comprised as follows:
2008
2007
Distribution of excess commissions and fees
Agency funds due to the Board
$ 10,083,315 $
809,788
$ 10,893, I 03
9,750,322
741,481
$ 10,491,803
OSlO-0995776
16
13A
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management
Collier County, Florida (the County) is exposed to various risks ofloss including but not limited
to general liability, health and life, property and casualty, auto and physical damage, and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with these
self-insured risks are reported in the basic financial statements of the County. The Tax Collector
participates in the County's self-insurance program. During the years ended September 30, 2008
and 2007, the Tax Collector was charged $1,957,894 and $1,761,403, respectively, by the
County for participation in the risk management program.
The County provides coverage for up to $350,000 per claim for workers' compensation, and has
purchased outside excess coverage for up to $25 million for employee liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act ofthe State Legislature.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetime limit of $2 million.
0810-0995776
17
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
10. Commitments and Contingencies
Leases
The Tax Collector has noncancelable operating leases for certain office facilities that were
utilized solely by the Tax Collector for fiscal year 2008. The following is a schedule of future
minimum lease payments under the operating leases:
Fiscal year ending September 30:
2009
2010
2011
2012
2013
$ 271,166
238,869
198,640
62,475
64,974
Rental expense for all operating leases aggregated $226,249 and $260,573 for the years ended
September 30,2008 and 2007, respectively. There wcre no contingent rentals or sublease rentals
associated with leases in effect at September 30, 2008 or 2007.
Litigation
The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising
from thc 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 thc financial position of the
Tax Collector.
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Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Special-Purpose Financial
Statements Performed in Accordance with Government Auditing Standards
Honorable Guy L. Carlton, Tax Collector
Collier County, Florida
We have audited the special-purpose financial statements of the general fund and the aggregate
remaining fund information of the Collier County, Florida Tax Collector (the Tax Collector) as
of and for the year ended September 30, 2008, and have issued our report thereon dated
December 10, 2008. We conducted our audit in accordance with auditing standards generally
accepted in the United States and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Tax Collector's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the special-purpose financial statements, but not for the purpose of expressing an
,
opinion on the effectiveness of the Tax Collector's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal
control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
special-purpose financial statements that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the special-purpose
financial statements will not be prevented or detected by the entity's internal control.
0810-0995776
19
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Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's special-purpose
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
We noted certain matters that we reported to management of the Tax Collector in a separate
letter dated December 10, 2008.
This report is intended solely for the information and use of the Tax Collector, management,
others within the entity, the Board of County Commissioners of Collier County, Florida and the
Auditor General of the State of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
of
LLP
December 10, 2008
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Management Letter
Honorable Guy L. Carlton, Tax Collector
Collier County, Florida
We have audited the special-purpose financial statements of the general fund and the aggregate
remaining fund information of the Collier County, Florida Tax Collector (the Tax Collector) as of
and for the year ended September 30, 2008, and have issued our report thereon dated
December 10, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General.
which govern the conduct of local governmental audits performed in the state of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated December 10, 2008 on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Prior Year Findings and Recommendations
See Exhibit A for the status of prior year recommendations.
Cnrrent Year Findings and Recommendations
There are no findings or recommendations madc in the current annual financial audit.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes. regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than
the internal control recommendations included above.
0810-0995776
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The Tax Collector was established by the Constitution of the State of Florida, Article VllI,
Section l(d).
This management letter is intended solely for the information and use of the Tax Collector,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~M<d-t
December 10, 2008
(lH\U.0'l')57;(i
22
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Exhibit A
Collier County, Florida
Tax Collector
Status of Prior Year Recommendation
September 30, 2008
Recommendation
Status
IT Access Controls
Password length should be no less than 6
characters.
Implemented.
Reset account lockout counter value
should be set at 60 minutes or higher.
Implemented.
Account lockout threshold should be set
to 3-5 attempts.
Implemented.
Consider enabling password complexity.
Still applicable.
U!!IO-0995776
23
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