Levy County, Florida. Audit Report. September 30, 2017

Transcription

1 LevyCounty,Florida AuditReport September30,2017

2 REPORT IndependentAuditor sreport MANAGEMENT SDISCUSSIONANDANALYSIS BASICFINANCIALSTATEMENTS GovernmentwideFinancialStatements: StatementofNetPosition StatementofActivities GovernmentalFundFinancialStatements: BalanceSheet ReconciliationoftheBalanceSheettotheStatementofNetPosition StatementofRevenues,ExpendituresandChangesinFundBalances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund BalancestotheStatementofActivities ProprietaryFundFinancialStatements: StatementofNetPosition StatementofRevenues,ExpensesandChangesinFundNetPosition StatementofCashFlows FiduciaryFundFinancialStatements: StatementofFiduciaryNetPosition AgencyFunds NotestoFinancialStatements REQUIREDSUPPLEMENTARYINFORMATION ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActual GeneralFund ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActual RoadandBridgeFund ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActual EMSFund LevyCounty,Florida TableofContents September30,2017 i iii

3 OtherPostemploymentBenefits BoardofCountyCommissioners ScheduleofFundingProgress OtherPostemploymentBenefits Sheriff sofficeplan ScheduleofFundingProgress PensionPlans SchedulesofProportionateShareofNetPensionLiability SchedulesofEmployerContributions SUPPLEMENTARYINFORMATION CombiningBalanceSheet NonmajorGovernmentalFunds Combining Statement of Revenues, Expenditures and Changes in Fund Balances NonmajorGovernmentalFunds CombiningStatementofFiduciaryNetPosition AgencyFunds ScheduleofExpendituresofFederalAwardsandStateFinancialAssistance NotestoScheduleofExpendituresofFederalAwardsandStateFinancialAssistance ADDITIONALELEMENTSREQUIREDBYTHERULESOFTHEAUDITORGENERAL ManagementLetter IndependentAccountant sreportoncompliancewithsection ,floridastatutes Independent Accountant s Report on Compliance with Sections (10) and (2)(d),FloridaStatutes Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements PerformedinAccordancewithGovernmentAuditingStandards IndependentAuditor sreportoncomplianceforeachmajorfederalprogramandstate ProjectandonInternalControlOverComplianceRequiredbytheUniformGuidance andchapter10.550,rulesoftheauditorgeneral ScheduleofFindingsandQuestionedCosts Management sfollowupofauditfindings: SummaryScheduleofPriorAuditFindings CorrectiveActionPlan LevyCounty,Florida TableofContents September30,

4 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida INDEPENDENTAUDITOR SREPORT BoardofCountyCommissioners LevyCounty,Florida ReportontheFinancialStatements We have audited the accompanying financial statements of the governmental activities, the businesstype activities,eachmajorfundandtheaggregateremainingfundinformationoflevycounty,florida(the County )as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectivelycomprisethecounty sbasicfinancialstatementsaslistedinthetableofcontents. Management sresponsibilityforthefinancialstatements Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordance with accounting principles generally accepted in the United States of America; this includes the design, implementation,andmaintenanceofinternalcontrolrelevanttothepreparationandfairpresentationoffinancial statementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror. Auditor sresponsibility Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.Weconductedouraudit in accordance with auditing standards generally accepted in the United States of America and the standards applicabletofinancialauditscontainedingovernmentauditingstandards,issuedbythecomptrollergeneralof theunitedstates.thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassurance aboutwhetherthefinancialstatementsarefreefrommaterialmisstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements.theproceduresselecteddependontheauditor sjudgment,includingtheassessmentofthe risks of material misstatement of the financial statements, whetherdue to fraud or error. In making those risk assessments,theauditorconsidersinternalcontrolrelevanttotheentity spreparationandfairpresentationofthe financialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthe purposeofexpressinganopinionontheeffectivenessoftheentity sinternalcontrol.accordingly,weexpressno such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentationofthefinancialstatements. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouraudit opinions. Opinions (352) (352) (fax) Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,therespective financialpositionofthegovernmentalactivities,thebusinesstypeactivities,eachmajorfundandtheaggregate remaining fund information of the County as of September 30, 2017, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in accordance with accounting principlesgenerallyacceptedintheunitedstatesofamerica. i

5 OtherMatters RequiredSupplementaryInformation Accounting principles generally accepted in the United States of America require that the management s discussionandanalysisandthescheduleslistedinthetableofcontentsas requiredsupplementaryinformation be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and otherknowledgeweobtainedduringourauditofthebasicfinancialstatements.wedonotexpressanopinionor provide any assurance on the information because the limited procedures do not provide us with sufficient evidencetoexpressanopinionorprovideanyassurance. OtherInformation Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprisethecounty sbasicfinancialstatements.theinformationlistedinthetableofcontentsassupplementary information, including the Schedule of Expenditures of Federal Awards and State Financial Assistance, which is required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Chapter , Rules of the AuditorGeneral,ispresentedforpurposesofadditionalanalysisandisnotarequiredpartofthebasicfinancial statements. Thesupplementaryinformationistheresponsibilityofmanagementandwasderivedfromandrelatesdirectlyto theunderlyingaccountingandotherrecordsusedtopreparethebasicfinancialstatements.suchinformationhas been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additionalprocedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccounting andotherrecordsusedtopreparethebasicfinancialstatementsortothebasicfinancialstatementsthemselves, andotheradditionalproceduresinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesof America.Inouropinion,thesupplementaryinformationisfairlystated,inallmaterialrespects,inrelationtothe basicfinancialstatementsasawhole. OtherReportingRequiredbyGovernmentAuditingStandards InaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedAugust1,2018onour consideration of the County s internal control over financial reporting and on our tests of its compliance with certainprovisionsoflaws,regulations,contractsandgrantagreementsandothermatters.thepurposeofthat reportissolelytodescribethescopeofourtestingofinternalcontroloverfinancialreportingandcomplianceand theresultsofthattesting,andnottoprovideanopinionontheeffectivenessofthecounty sinternalcontrolover financial reporting or oncompliance.that report is an integral partof an audit performed in accordance with Government Auditing Standards in considering the County s internal control over financial reporting and compliance. Gainesville,Florida August1,2018 ii

6 LevyCounty,Florida Management sdiscussionandanalysis September30,2017 This Management Discussion and Analysis provides an objective and easily readable analysis of the County s financial activities for fiscal year ended September30,2017. The analysis provides summary financial information for the County and should be read in conjunction with the County s financial statements. FINANCIALHIGHLIGHTS Levy County's assets and deferred outflows exceeded total liabilities and deferred inflows by $63,260,807 (net position). Of this amount, ($9,877,899) is unrestricted net position while $66,760,487representsnetinvestmentincapitalassets.Theremaining$6,378,219isrestricted netposition. Net position of businesstype activities increased by $377,294 over the previous year. Net position of governmental activities decreased $4,909,177. Accordingly, net position of both businesstypeandgovernmentalactivitiesdecreasedatotalof$4,531,883. AtSeptember30,2017,theGeneralFund sfundbalanceincreasedby$1,174,362. AtSeptember30,2017,theCounty sgovernmentalfundsreportedacombinedfundbalanceof $20,481,014. OVERVIEWOFTHEFINANCIALSTATEMENTS The discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The County's basic financial statements are comprised of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements.thisreportalsocontainsothersupplementaryinformationthatmaybeofinteresttothe reader. GovernmentwideFinancialStatements Thegovernmentwidefinancialstatementsaredesignedtoprovidereaderswithabroadoverviewof the County's finances in a manner similar to a privatesector business. The two governmentwide financialstatementsarethestatementofnetpositionandthestatementofactivities. The Statement of Net Position presents information on all assets, deferred outflows, liabilities and deferred inflows of the County, with assets plus deferred outflows minus liabilities minus deferred inflowsreportedasnetposition.changesinnetpositionovertimemayserveasausefulindicatorof whetherthefinancialpositionofthecountyisimprovingordeteriorating.thestatementofactivities presentsinformationonallrevenuesandexpensesofthecountyandthechangeinnetpositionforthe fiscalyear.allchangesinnetpositionarereportedassoonastheunderlyingeventoccurs,regardlessof thetimingoftherelatedcashflows.thus,revenuesandexpensesarereportedinthisstatementfor someitemsthatwillresultincashflowsinfuturefiscalperiods(e.g.,uncollectedtaxesandaccounts payable). iii

7 LevyCounty,Florida Management sdiscussionandanalysis September30,2017 Both statements distinguish functions of the County that are principally supported by taxes and intergovernmentalrevenues(governmentalactivities)fromotherfunctionsthatareintendedtorecover all or a significant portion of their costs through user fees and charges (businesstype activities). Governmental activities of the County include general government services, public safety, physical environment,transportation,economicenvironment,humanservices,cultureandrecreation,andcourt costs.businesstypeactivitiesincludegarbagedisposalandrecycling. FundFinancialStatements A fund is a grouping of related accounts that is used to maintain control over resources that are segregatedforspecificactivitiesorobjectives.thecounty,likeotherstateandlocalgovernments,uses fundaccountingtoensureanddemonstratecompliancewithfinancerelatedlegalrequirements.allof thefundsofthecountycanbedividedintothreecategories:governmentalfunds,proprietaryfunds, andfiduciaryfunds. Governmental Funds Governmental funds are used to account for essentially the same functions reportedasgovernmentalactivitiesinthegovernmentwidefinancialstatements.however,unlikethe governmentwide financial statements, governmental fund financial statements focus on nearterm inflowsandoutflowsofspendableresources,aswellasonbalancesonspendableresourcesavailableat the end of the fiscal year. Such information may be used in evaluating a government's nearterm financingrequirements. Because the focus of governmental funds is narrower than that of the governmentwide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmentwide financial statements. By doingso,readersmaybetterunderstandthelongtermimpactofthegovernment'sneartermfinancing decisions.boththegovernmentalfundbalancesheetandgovernmentalfundstatementofrevenues, expenditures,andchangesinfundbalancesprovideareconciliationtofacilitatecomparisonbetween governmentalfundsandgovernmentalactivities. TheCountymaintainsnumerousindividualgovernmentalfunds.Informationispresentedseparatelyin the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,andchangesinfundbalancesforthegeneralfund,roadandbridgefund,emsfund,and SalesTaxRevenueBondDebtServiceFund,allofwhichareconsideredtobemajorfunds.Datafromthe othergovernmentalfundsarecombinedintoasingle,aggregatedpresentation.individualfunddatafor eachofthenonmajorgovernmentalfundsisprovidedintheformofcombiningstatementselsewherein thisreport. ProprietaryFundsInternalservicesfundsareanaccountingdeviceusedtoaccumulateandallocate costsinternallyamongthevariouscountyfunctions.thecountyhasnointernalservicefund.enterprise fundsareusedtoreportthesamefunctionspresentedasbusinesstypeactivitiesinthegovernment widefinancialstatements.thecountyusesenterprisefundstoaccountforthefiscalactivitiesrelating tothelandfill/recyclingfund. iv

8 LevyCounty,Florida Management sdiscussionandanalysis September30,2017 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outsidethegovernment.fiduciaryfundsarenotreflectedinthegovernmentwidefinancialstatements becauseresourcesofthosefundsarenotavailabletosupportthecounty sownprograms. NotestotheFinancialStatements Thenotesprovideadditionalinformationthatisessentialtoafullunderstandingofthedataprovidedin thegovernmentwideandfundfinancialstatements. OtherInformation Inadditiontothebasicfinancialstatements,andaccompanyingnotes,thisreportalsopresentscertain requiredsupplementaryinformationincludingbudgettoactualcomparisonsforthegeneralfundand majorspecialrevenuefunds,theschedulesoffundingprogressandemployercontributionsforopeb Plans, and the Schedules of Proportionate Shares of Net Pension Liabilities and Pension Employer Contributions. Following the required supplementary information can be found combining balance sheets and combining statements of revenues, expenditures, and changes in fund balances for the nonmajorgovernmentalfunds,andschedulesofexpendituresoffederalandstateawards. GOVERNMENTWIDEFINANCIALANALYSIS NetPosition As noted earlier, net position may serve over time as a useful indicator of a government s financial position. In the case of Levy County, assets and deferred outflows exceeded liabilities and deferred inflowsby$63,260,807atthecloseofthefiscalyearendedseptember30,2017.however,thecounty hadanunrestricteddeficitof$9,877,899atseptember30,2017. v

9 LevyCounty,Florida Management sdiscussionandanalysis September30,2017 LevyCounty snetposition GovernmentalActivities BusinesstypeActivities Total Currentandotherassets $23,621,823 $20,928,885 $3,470,419 $3,288,026 $27,092,242 $24,216,911 Capitalassets 66,686,195 71,274,113 3,901,139 4,032,935 70,587,334 75,307,048 Totalassets 90,308,018 92,202,998 7,371,558 7,320,961 97,679,576 99,523,959 Deferredoutflows 13,685,604 16,489, , ,708 14,104,353 16,994,002 Currentandotherliabilities 4,209,337 3,403, , ,007 4,609,736 3,715,847 Longtermliabilities 35,256,320 32,737,225 6,550,841 6,955,577 41,807,161 39,692,802 Totalliabilities 39,465,657 36,141,065 6,951,240 7,267,584 46,416,897 43,408,649 Deferredinflows 2,043,038 5,157,123 63, ,499 2,106,225 5,316,622 Netposition: Netinvestmentincapital assets 62,859,348 67,250,066 3,901,139 4,032,935 66,760,487 71,283,001 Restricted 6,378,219 5,781,954 6,378,219 5,781,954 Unrestricted (6,752,640) (5,637,916) (3,125,259) (3,634,349) (9,877,899) (9,272,265) Totalnetposition $62,484,927 $67,394,104 $775,880 $398,586 $63,260,807 $67,792,690 The largest portion of the County s net position reflects its investment in capital assets, net of depreciation(e.g.,land,roads,parks,buildings,andequipment)lessanyrelatedoutstandingdebtused to acquire those assets. The County uses these capital assets to provide services to citizens; consequentlytheseassetsarenotavailableforfuturespending.althoughthecounty sinvestmentinits capitalassetsisreportednetofrelateddebt,itshouldbenotedthattheresourcesneededtorepaythis debt must be provided from other sources, since the capital assets themselves cannot be used to liquidatetheseliabilities. AnadditionalportionoftheCounty snetpositionrepresentsresourcesthataresubjecttorestrictions imposedexternallyonhowtheymaybeused. vi

10 ChangesinNetPosition LevyCounty,Florida Management sdiscussionandanalysis September30,2017 Thefollowingscheduleprovidesasummaryofthechangesinnetposition. GovernmentalActivities BusinesstypeActivities Total Revenues Programrevenues: Chargesforservices $11,458,480 $10,787,446 $2,187,069 $2,178,673 $13,645,549 $12,966,119 Operatinggrantsand contributions 4,721,361 4,031,791 31,313 30,865 4,752,674 4,062,656 Capitalgrantsand contributions 430,541 99,116 59,596 59, , ,608 Generalrevenues: Propertytaxes 14,438,592 12,818,664 14,438,592 12,818,664 Othertaxes 4,812,057 4,630,131 4,812,057 4,630,131 Sharedrevenues 6,495,900 6,245,036 6,495,900 6,245,036 Other 977, , , ,344 1,408, ,104 TotalRevenues 43,334,155 39,417,944 2,709,034 2,398,374 46,043,189 41,816,318 Expenses Generalgovernment 8,517,571 8,327,863 8,517,571 8,327,863 Publicsafety 21,722,289 21,082,767 21,722,289 21,082,767 Physicalenvironment 849, ,838 2,331,740 2,360,328 3,181,675 3,358,166 Transportation 11,971,722 11,959,951 11,971,722 11,959,951 Economicenvironment 748, , , ,901 Humanservices 1,870,913 1,842,294 1,870,913 1,842,294 Cultureandrecreation 751, , , ,263 Courtrelated 1,685,513 1,765,485 1,685,513 1,765,485 Interestonlongtermdebt 124, , , ,187 TotalExpenses 48,243,332 47,690,549 2,331,740 2,360,328 50,575,072 50,050,877 Changeinnetposition (4,909,177) (8,272,605) 377,294 38,046 (4,531,883) (8,234,559) Netpositionbeginningofyear 67,394,104 75,666, , ,540 67,792,690 76,027,249 Netpositionendofyear $62,484,927 $67,394,104 $775,880 $398,586 $63,260,807 $67,792,690 vii

11 LevyCounty,Florida Management sdiscussionandanalysis September30,2017 FiscalYearEndedSeptember2017 Revenues GovernmentalActivities Shared Revenues 15% Other 2% Charges for Services 27% Other Taxes 11% Operating Grants and Contributions 11% Property Taxes 33% Capital Grants and Contributions 0% Expenses GovernmentalActivities Culture and Recreation 1% Court Costs 3% Interest on Long-Term Debt 0% General Government 18% Human Services 4% Economic Environment 1% Transportation 25% Physical Environment 2% Public Safety 45% viii

12 LevyCounty,Florida Management sdiscussionandanalysis September30,2017 The most significant change in revenues was seen in property taxes, which increased $1.5 million, representinga12%increasefrom2016. Governmental activities expenses exceeded revenues by approximately $4.9 million, while business type activities revenue exceeded expenses by $377,294. Total expenses increased approximately one percent($500,000)fromthepreviousyear. FINANCIALANALYSISOFTHECOUNTY SFUNDS Asnotedearlier,theCountyusedfundaccountingtoensureanddemonstratecompliancewithfinance relatedlegalrequirements. GovernmentalFunds As previously discussed, governmental funds measure current assets and liabilities and current or spendableresources.afund sfundbalancemayprovideausefulmeasureofthefund snetresources availableforspendingattheendofthefiscalyear. Atthecurrenttime,theCountyhasfourmajorgovernmentalfunds.Theyare:1)GeneralFund;2)Road &BridgeFund;3)EMSFund;and4)SalesTaxRevenueBondDebtServiceFund. TheGeneralFundisthechiefoperatingfundoftheCounty.TheGeneralFundincludestheGeneralFund of the Board of County Commissioners and the General Funds of each Constitutional Officer. The GeneralFundhadanincreaseinfundbalanceof$1,174,362.Thetotalfundbalancewas$5,094,361,of which $3,700,681 was assigned for subsequent year s expenditures. The there was an increase in transfersinthesalestaxrevenuefundwhichdidnottakeplaceintheprioryear. TheRoadandBridgeFundaccountsforthemaintenanceofroads,bridges,rightofways,anddrainage systemsandisprimarilyfundedbygastaxes.thefundhadatotalfundbalanceof$1,120,192atyear end.thiswasanincreaseof$179,725fromtheprioryear. TheEmergencyMedicalServicesFundaccountsforemergencytransportandmedicalservices.Thefund hadatotalfundbalanceof$1,810,540.thiswasanincreaseof$296,700fromtheprioryear. The Sales Tax Revenue Bond Debt Service Fund accounts for sales tax revenue accumulated and payments made for principal and interest on long term obligations. The fund had an ending fund balanceof$5,336,958.thiswasadecreaseof$639,888fromtheprioryear. ix

13 ProprietaryFunds LevyCounty,Florida Management sdiscussionandanalysis September30,2017 The County s enterprise fund provides the same type of information found in the governmentwide financial statements, but in greater detail. The Landfill Fund accounts for the operations and maintenanceofthecounty slandfillandrecyclingactivities.operatingrevenuesforthelandfillfund totaled $2,187,069 in the current year. This amount consists of $1,676,425 generated by tipping and recyclingfeesand$510,644fromspecialassessments.asofseptember30,2017,totalnetpositionwas $775,880,anincreaseof$377,294fromtheprioryear. GENERALFUNDBUDGETARYHIGHLIGHTS BudgetandactualcomparisonschedulesareprovidedintheScheduleofRevenues,Expendituresand ChangesinFundBalances BudgetandActualfortheGeneralFundandallmajorspecialrevenuefunds with annually appropriated budgets. These schedules show the original budget, final budget, actual amounts, and the variances between actual and final budgeted amounts. Budget amendments are approvedthroughouttheyear.budgetsarerevisedforavarietyofreasons,suchasnewgrantawards, unanticipatedrevenuesources,unforeseenexpenditures,etc. Actual revenues of the General Fund were more than the final budget by approximately $317,000. Budgetedexpendituresexceededactualbyapproximately$4.3millionprimarilydueto$1.1millionof unexpendedgeneralgovernmentandabudgeted$2.2millionreserveforcontingencies. CAPITALASSETSANDDEBTADMINISTRATION CapitalAssets ThefollowingscheduleprovidesasummaryoftheCounty scapitalassets. GovernmentalActivities BusinesstypeActivities Total Land $5,101,751 $5,101,751 $239,648 $239,648 $5,341,399 $5,341,399 Buildings 11,814,530 12,233,049 3,179,728 3,260,225 14,994,258 15,493,274 Improvements 89, ,175 89, ,175 Equipment 6,176,999 6,223, , ,062 6,658,762 6,757,044 Infrastructure 43,503,065 47,612,156 43,503,065 47,612,156 Capitalassets,net $66,686,195 $71,274,113 $3,901,139 $4,032,935 $70,587,334 $75,307,048 TheCounty stotalinvestmentincapitalassetsforbothitsgovernmentalandbusinesstypeactivitiesas ofseptember30,2017,was$70,587,334(netofaccumulateddepreciation).thisinvestmentincapital assets includes land, buildings, improvements, machinery and equipment, and a large portion of infrastructure. The county s financial statements reflect the cost of all roads, bridges, and drainage structuresacquiredorbuiltoverthelast25years. SeeNote7tothefinancialstatementsformoreinformationabouttheCounty scapitalassets. x

14 LongtermLiabilities LevyCounty,Florida Management sdiscussionandanalysis September30,2017 On September30,2017, the County s governmental outstanding liabilities were $36,809,236 and the businesstype longterm liabilities were $6,837,278. Approximately $3.2 million of the governmental liabilitiesrepresentsbondssecuredbyspecificrevenuesourcesasamethodofrepayment.themajority of the remaining balance represents the County s proportionate share of pension liabilities. For the businesstype liabilities, the largest component is the estimated future closure cost of the currently operatinglandfillsandforthemaintenanceandmonitoringfunctionsforthetwentytothirtyyearsafter closure. See Notes 8 and 9 to the financial statements for more information about the County s longterm liabilities. NEXTYEAR SBUDGETANDSIGNIFICANTFINANCIALCONDITIONS LevyCounty hasreliedonpropertytaxes,intergovernmentalresources,and accumulatedreservesto fund its operations. The County is addressing the reliance upon reserves for operational cost going forward.thecountyhasutilizedgrants,road,ems,andparkimpactfeestohelpfundtheinfrastructure needs. TheBoardofCountyCommissionersadoptedaGeneralFundmillagerateof9.000millsforfiscalyear 2017,anincreaseof8.77%over2016. REQUESTSFORINFORMATION This report was designed to provide an overview of the County s finances. If you have questions concerning this report, contact Jared Blanton, Finance Director, Levy County Clerk of Court, Board Finance,355SouthCourtStreet,Bronson,Florida xi

15 LevyCounty,Florida StatementofNetPosition September30,2017 Governmental Businesstype Activities Activities Total Assets Cashandequivalents 8,279,368 $36,341 $ 8,315,709 Pooledcashandequivalents 12,596, ,151 13,238,284 Duefromothergovernments 1,640, ,807 1,743,760 Receivables,netofallowance 1,045, ,623 1,153,500 Internalbalances 18,735 (18,735) Prepaids 40,757 40,757 Restrictedassets: Cashandequivalents 2,600,232 2,600,232 Capitalassets: Nondepreciable 5,101, ,648 5,341,399 Depreciable,net 61,584,444 3,661,491 65,245,935 Totalassets 90,308,018 7,371,558 97,679,576 Deferredoutflows Deferredlossonrefunding 146, ,040 Deferredoutflowfromnetpensionliability 13,539, ,749 13,958,313 Totaldeferredoutflows 13,685, ,749 14,104,353 Liabilities Accountspayableandaccruedliabilities 2,519, ,962 2,633,563 Unearnedrevenue 99,093 99,093 Otherliabilities 37,727 37,727 Noncurrentliabilities: Duewithinoneyear 1,552, ,437 1,839,353 Dueinmorethanoneyear 35,256,320 6,550,841 41,807,161 Totalliabilities 39,465,657 6,951,240 46,416,897 Deferredinflows Deferredinflowsfromnetpensionliability 2,043,038 63,187 2,106,225 Netposition Netinvestmentincapitalassets 62,859,348 3,901,139 66,760,487 Restricted: Courtcosts 2,930,977 2,930,977 Transportation 2,028,410 2,028,410 Otherpurposes 1,418,832 1,418,832 Unrestricted (6,752,640) (3,125,259) (9,877,899) Totalnetposition $62,484,927 $ 775,880 $63,260,807 Seeaccompanyingnotes. 1

16 LevyCounty,Florida StatementofActivities YearendedSeptember30,2017 Programrevenues Net(expense)revenueandchangesinnetposition Charges Operating Capital Govern Business for grantsand grantsand mental type Expenses services contributions contributions activities activities Total Functions/programs Governmentalactivities: Generalgovernment $8,517,571 $1,106,611 $6,372 $ $ (7,404,588) $ $(7,404,588) Publicsafety 21,722,289 8,197, ,089 (12,827,629) (12,827,629) Physicalenvironment 849,935 83,279 76,258 (690,398) (690,398) Transportation 11,971,722 1,273,660 2,933, ,541 (7,334,132) (7,334,132) Economicenvironment 748,843 40, ,000 (358,547) (358,547) Humanservices 1,870,913 55,969 32,983 (1,781,961) (1,781,961) Cultureandrecreation 751,717 Courtcosts 1,685,513 89, ,648 (531,045) (531,045) 612, ,622 (579,821) (579,821) Interestonlongtermdebt 124,829 (124,829) (124,829) Totalgovernmentalactivities 48,243,332 11,458,480 4,721, ,541 (31,632,950) (31,632,950) Businesstypeactivities: Landfill 2,331,740 2,187,069 31,313 59,596 (53,762) (53,762) 0 Total $50,575,072 $13,645,549 $4,752,674 $ 490,137 (31,632,950) (53,762) (31,686,712) Generalrevenues: Propertytaxes 14,438,592 Salestaxes 3,127,281 14,438,592 3,127,281 Gastaxes 1,295,246 1,295,246 Touristdevelopmenttax 212, ,390 Communicationservicetax 177, ,140 Unrestrictedsharedrevenues 6,495,900 6,495,900 Impactfees 256, ,985 Investmentearnings 29,937 5,655 35,592 Miscellaneous 690, ,401 1,115,703 Totalgeneralrevenues 26,723, ,056 27,154,829 Changeinnetposition (4,909,177) 377,294 (4,531,883) Netposition beginningofyear 67,394, ,586 67,792,690 Netposition endofyear $62,484,927 $775,880 $63,260,807 Seeaccompanyingnotes. 2

17 LevyCounty,Florida BalanceSheet GovernmentalFunds September30,2017 SalesTax Other General Roadand EMS RevenueDebt Governmental Fund Bridge Fund ServiceFund Funds Totals Assets Cashandequivalents $ 1,500,392 $ 667 $ 1,636 $ 5,219,114 $ 1,557,559 $ 8,279,368 Pooledcashandequivalents 4,035, ,419 1,565,862 6,068,156 12,596,133 Duefromotherfunds 64,120 92,278 55, ,582 Duefromothergovernments 730, ,756 29, , ,077 1,640,953 Receivables,netofallowance 267, ,097 20,807 1,045,877 Prepaids ,500 10,832 Totalassets $ 6,599,182 $ 1,406,120 $ 2,364,702 $ 5,336,958 $ 8,077,783 $ 23,784,745 Liabilities Accountspayableand accruedliabilities $ 1,431,727 $ 282,530 $ 141,718 $ $ 663,626 $ 2,519,601 Duetootherfunds 42, ,898 Deposits 134,181 25, ,847 25,420 Unearnedrevenue 1,792 95,000 2,301 99,093 Totalliabilities 1,476, , , ,528 2,836,961 Deferredinflows Unavailablerevenue 28,544 3, , , ,770 Fundbalances Nonspendable:prepaids 332 Restricted 194, ,197 10,500 10,832 5,806,761 6,378,219 Assigned 3,700, ,995 1,800,040 5,336,958 1,373,128 12,953,802 Unassigned 1,199,087 (60,926) 1,138,161 Totalfundbalances 5,094,361 1,120,192 1,810,540 5,336,958 7,118,963 20,481,014 Totalliabilities,deferredinflows andfundbalances $ 6,599,182 $ 1,406,120 $ 2,364,702 $ 5,336,958 $ 8,077,783 $ 23,784,745 Seeaccompanyingnotes. 3

18 LevyCounty,Florida ReconciliationoftheBalanceSheettotheStatementofNetPosition September30,2017 Fundbalances totalgovernmentalfunds $20,481,014 Amountsreportedforgovernmentalactivitiesinthestatementofnetpositionare differentbecause: Capitalassetsusedingovernmentalactivitiesarenotreportedinthe governmentalfunds. Capitalassets net 66,686,195 Longtermliabilitiesarenotreportedinthegovernmentalfunds. Bondspayable (3,235,000) Bondpremium (76,703) NetOPEBobligation (1,334,083) Capitallease (661,184) Compensatedabsences (1,500,300) Netpensionliability (30,001,966) Deferredlossonrefundingofbondsisnotreportedinthegovernmentalfunds. 146,040 Interestpayableonlongtermdebtisnotaccruedinthegovernmentalfunds. (12,307) Unavailablerevenueisreportedasadeferredinflowingovernmentalfundsbutnotin governmentalactivities. 466,770 Deferredoutflowonpensionliabilities 13,539,564 Deferredinflowonpensionliabilities (2,043,038) Unamortizedprepaidinsurancerelatingtobondsisnotreportedinthe governmentalfunds. 29,925 Netpositionofgovernmentalactivities $62,484,927 Seeaccompanyingnotes. 4

19 LevyCounty,Florida StatementofRevenues,ExpendituresandChangesinFundBalances GovernmentalFunds YearendedSeptember30,2017 Revenues SalesTax Other General Roadand EMS RevenueDebt Governmental Fund Bridge Fund ServiceFund Funds Totals Taxes $ 17,743,013 $ 1,295,246 $ $ $212,390 $19,250,649 Permits,feesandspecialassessments 368,471 8,700 2,759,784 2,339,390 5,476,345 Intergovernmentalrevenue 4,227,207 Chargesforservices 1,723,035 3,825,952 4,707 1,560,907 2,121,684 11,740, ,763 2,309,911 1,038,079 5,780,788 Finesandforfeitures 5, , ,531 Miscellaneousrevenue 457,412 7,687 2,420 20, , ,851 Totalrevenues 24,524,251 5,847,348 5,076,822 1,581,705 6,066,495 43,096,621 Expenditures Current: Generalgovernment 7,634,564 Publicsafety 13,165,949 2,500 14,817 7,651,881 4,780,122 2,235,943 20,182,014 Physicalenvironment 536, , ,005 Transportation 6,007,433 1,636,330 7,643,763 Economicenvironment 257, , ,583 Humanservices 1,977,341 33,000 2,010,341 Cultureandrecreation 674,401 9, ,969 Courtcosts 463,936 1,115,595 1,579,531 Capitaloutlay 8,143 8,143 Debtservice: Principal 250,953 Interest 19,743 91, ,000 87, , ,191 Totalexpenditures 24,981,791 6,099,289 4,780, ,948 5,729,080 42,180,230 Excessofrevenuesover (under)expenditures (457,540) (251,941) 296, , , ,391 Otherfinancingsources(uses) Transfersin 1,794, ,896 2,159,307 Transfersout (364,896) (1,631,645) (162,766) (2,159,307) Debtissuancecapitalleases 202, , ,053 Totalotherfinancingsources(uses) 1,631, ,666 (1,631,645) 202, ,053 Netchangeinfundbalances 1,174, , ,700 (639,888) 539,545 1,550,444 Fundbalances beginningofyear 3,919, ,467 1,513,840 5,976,846 6,579,418 18,930,570 Fundbalances endofyear $5,094,361 $1,120,192 $1,810,540 $5,336,958 $7,118,963 $20,481,014 Seeaccompanyingnotes. 5

20 LevyCounty,Florida ReconciliationoftheStatementofRevenues,ExpendituresandChangesin FundBalancestotheStatementofActivities GovernmentalFunds YearendedSeptember30,2017 Netchangeinfundbalances totalgovernmentalfunds $1,550,444 Amountsreportedforgovernmentalactivitiesinthestatementofactivitiesaredifferent because: Governmentalfundsreportcapitaloutlaysasexpenditures.However,inthestatement ofactivitiesthecostofthoseassetsisdepreciatedovertheirestimatedusefullives. Acquisitionsofcapitalassets 3,383,869 Currentyeardepreciationexpense (7,935,534) Lossonassetdisposal (36,253) Theissuanceoflongtermdebtprovidescurrentfinancialresourcesforgovernmental funds,whiletherepaymentoflongtermdebtconsumescurrentfinancialresources, butneithertransactionhasanyeffectonnetpositionofgovernmentalactivities. Debtissuance (634,053) Principalpayments 842,809 Thetimingofrevenuerecognitionsometimesdiffersbetweenthegovernmental fundsandgovernmentalactivities. 273,787 Someexpensesreportedinthestatementofactivitiesdonotrequiretheuseof currentfinancialresourcesandthereforearenotreportedasexpendituresin governmentalfunds. NetOPEBobligation (107,583) DuetoothergovernmentsMedicaidobligation 82,790 Compensatedabsences (68,200) Interestonlongtermdebt 6,702 Amortizationoflossonrefundingofbonds (24,340) Amortizationofprepaidinsuranceonbonds (4,987) Thenetchangeinnetpensionliabilityanddeferredoutflowsandinflowsarereported inthestatementofactivities,butnotinthegovernmentalfunds. Netpensionliability (2,573,363) Deferredoutflowsrelatedtopensions (2,779,350) Deferredinflowrelatedtopensions 3,114,085 Changeinnetpositionofgovernmentalactivities $(4,909,177) Seeaccompanyingnotes. 6

21 LevyCounty,Florida StatementofNetPosition ProprietaryFunds September30,2017 Businesstype Activities EnterpriseFund LandfillFund Currentassets Cashandequivalents $36,341 Pooledcashandequivalents 642,151 Duefromothergovernments 102,807 Receivables 107,623 Totalcurrentassets 888,922 Noncurrentassets Restrictedcashandequivalents 2,600,232 Capitalassets,net 3,901,139 Totalnoncurrentassets 6,501,371 Totalassets 7,390,293 Deferredoutflows Deferredoutflowfromnetpensionliability 418,749 Currentliabilities Accountspayableandaccruedliabilities 113,962 Duetootherfunds 18,735 Currentportionoflongtermliabilities 286,437 Totalcurrentliabilities 419,134 Noncurrentliabilities 6,550,841 Totalliabilities 6,969,975 Deferredinflows Deferredinflowsfromnetpensionliability 63,187 Netposition Investmentincapitalassets 3,901,139 Unrestricted (3,125,259) Totalnetposition $775,880 Seeaccompanyingnotes. 7

22 LevyCounty,Florida StatementofRevenues,ExpensesandChangesinFundNetPosition ProprietaryFunds YearendedSeptember30,2017 Businesstype Activities EnterpriseFund LandfillFund Operatingrevenues Userfees Specialassessments Totaloperatingrevenues Operatingexpenses Personalservices Operatingexpenses Depreciation Totaloperatingexpenses Operatingloss Nonoperatingrevenues(expenses) Interestrevenue GrantRevenue Miscellaneousrevenue Totalnonoperatingrevenues(expenses) Income(loss)beforecapitalcontributions Capitalcontributionscapitalgrant Changeinnetposition Netposition beginningofyear Netposition endofyear $1,676, ,644 2,187, ,615 1,175, ,392 2,331,740 (144,671) 5,655 31, , , ,698 59, , ,586 $775,880 Seeaccompanyingnotes. 8

23 LevyCounty,Florida StatementofCashFlows ProprietaryFunds YearendedSeptember30,2017 Businesstype Activities EnterpriseFund LandfillFund Cashflowsfromoperatingactivities Receiptsfromcustomers $2,368,723 Paymentstosuppliers (1,149,832) Paymentstoemployees (881,870) Netcashprovided(used)byoperatingactivities 337,021 Cashflowsfromnoncapitalfinancingactivities Proceedsfromoperatinggrant 31,313 Miscellaneousreceipts 745 Netcashprovided(used)bynoncapitalfinancingactivities 32,058 Cashflowsfrominvestingactivities Investmentincome 5,655 Saleofinvestments 391,674 Netcashprovided(used)byinvestingactivities 397,329 Netchangeincashandequivalents 766,408 Cashandequivalents beginningofyear 2,512,316 Cashandequivalents endofyear $3,278,724 Reconciliationofoperatinglosstonetcashprovidedbyoperatingactivities: Operatingloss $(144,671) Depreciation 191,392 Changein: Duefromotherfunds 5,569 Duefromothergovernments 55,744 Receivables 120,342 Accountspayableandaccruedliabilities 15,975 Deferredoutflowfromnetpensionliability 85,959 Duetootherfunds 10,685 Otherpostemploymentbenefits 4,750 Netpensionliability 79,588 Deferredinflowsfromnetpensionliability (96,312) Netcashprovidedbyoperatingactivities $337,021 Noncashcapitalfinancingactivity: Capitalcontributionreceivedviaduefromothergovernments $59,596 ReconciliationofcashandequivalentstotheStatementofNetPositionProprietaryFunds: Cashandequivalents $36,341 Pooledcashandequivalents 642,151 Restrictedcashandequivalents 2,600,232 Totalcashandequivalents $3,278,724 Seeaccompanyingnotes. 9

24 LevyCounty,Florida StatementofFiduciaryNetPosition AgencyFunds September30,2017 Assets Cashandequivalents $ 2,178,107 Receivables 35,624 Totalassets 2,213,731 Liabilities Assetsheldforothers 2,213,731 Netposition $ Seeaccompanyingnotes. 10

25 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES LevyCounty,Florida NotestoFinancialStatements TheaccountingpoliciesofLevyCounty(the County )conformtogenerallyacceptedaccounting principlesasapplicabletogovernments.thefollowingisasummaryofthemoresignificantpolicies: ReportingEntity The County is a noncharter, general purpose local government established under the legal authorityoftheconstitutionofthestateofflorida.itiscomposedofanelectedboardofcounty Commissionersandelectedconstitutionalofficers ClerkoftheCircuitCourt,Sheriff,TaxCollector, Property Appraiser, and Supervisor of Elections that operate as separate county agencies. The accompanyingfinancialstatementspresentthecountyastheprimarygovernment. Blended Component Units Although legally separate entities, blended component units are in substancepartoftheprimarygovernment soperationsand,accordingly,datafromtheseunits,if any, would be combined with the data of the primary government. There are no blended componentunitsincludedintheaccompanyingfinancialstatements. DiscretelyPresentedComponentUnits Discretelypresentedcomponentunits,ontheotherhand, arereportedinaseparatecolumninthecombinedfinancialstatementstoemphasizethattheyare legally separate entities. There are no discretely presented component units included in the County sfinancialreportingentity. Related Organization The Nature Coast Business Development Council, Inc. is a notforprofit corporation organized for the purposes of furthering the economic development of Levy County anditsenvirons,andpromotingandassistingthegrowthanddevelopmentofbusinessconcernsin thecountyoflevy,andisexemptfromfederalincometaxundersection501(c)(6)oftheinternal Revenue Code. The Executive Board of the Council is comprised of 11 members, and 5 are appointedbythelevycountyboardofcountycommissionersandtheremaining6membersare appointedbytheboardappointees.thereisnofinancialbenefitorburdentothecountyandthe County cannot impose its will on the Council. Consequently, the Nature Coast Business DevelopmentCouncil,Inc.isconsideredarelatedorganizationofLevyCounty.Duringtheyearthe Countyappropriated$59,975totheCouncilfromtheGeneralFund. Jointly Governed Organization The governments of Putnam, Alachua and Levy Counties establishedtheputnam,alachua,levylibrarycooperativethroughaninterlocalagreement.the Cooperative spurposeistoprovideforthecoordinationoflibraryservicethroughouttheregion,to provideforequalaccesstofreepubliclibraryservicetoallresidentsoftheregion,andtoformulate andimplementconsistentplans,programs,policies,andproceduresintheoperation,maintenance anddevelopmentoflibraryservicesthroughouttheregion. 11

26 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) LevyCounty,Florida NotestoFinancialStatements TheCooperativeisgovernedbyaBoardconsistingof8members,2ofwhichareappointedbyeach participating county with the remaining two appointed by the Alachua County Library District. A copyofthecooperative sseparatefinancialstatementsmaybeobtainedfromitswebsite. JointVentures TheCountydidnotparticipateinanyjointventuresduring2017. GovernmentwideFinancialStatements Thegovernmentwidefinancialstatements(i.e.,thestatementofnetpositionandthestatementof activities)reportinformationonallofthenonfiduciaryactivitiesofthecounty.forthemostpart, theeffectofinterfundactivityhasbeenremovedfromthesestatements.governmentalactivities, whichnormallyaresupportedbytaxesandintergovernmentalrevenues,arereportedseparately frombusinesstypeactivities,whichrelytoasignificantextentonfeeschargedtoexternalparties. The statement of activities demonstrates the degree to which the direct expenses of a given functionareoffsetbyprogramrevenues.directexpensesarethosethatareclearlyidentifiablewith a specific function. Program revenues include: charges for services that are directly related to a given function; and grants and contributions that are restricted to meeting the operational or capitalrequirementsofaparticularfunction. Taxesandotherrevenuesnotproperlyincludedamongprogramrevenuesarereportedinsteadas generalrevenues. FundFinancialStatements Separatefinancialstatementsareprovidedforgovernmentalfunds,proprietaryfunds,andfiduciary funds,eventhoughthelatterareexcludedfromthegovernmentwidefinancialstatements.major individualgovernmentalfundsarereportedasseparatecolumnsinthefundfinancialstatements, butallnonmajorfundsareaggregatedanddisplayedinasinglecolumn.thegovernmentalfund financial statements include reconciliations with brief explanations to better identify the relationshipbetweenthegovernmentwidestatementsandthestatementsforthegovernmental funds. TheCountyreportsthefollowingmajorgovernmentalfunds: GeneralFund TheGeneralFundistheprimaryoperatingfund.Itisusedtoaccountforand reportallfinancialresourcesnotaccountedforandreportedinanotherfund.thegeneralfund consists of the board of county commissioners countywide general fund as well as each constitutionalofficer sgeneraloperatingfund. 12

27 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) LevyCounty,Florida NotestoFinancialStatements RoadandBridgeFund Thisfundisusedtoaccountfortheoperationsoftheroadandbridge department.fundingisprovidedprimarilybygasolinetaxesthatareimposedlocallyandthose thatareleviedbythestateandsharedwiththecounty. EMSFund Thisfundisusedtoaccountfortheoperationsoftheambulanceandemergency services department. Revenues are primarily from special assessments, and fees charged for emergencytransportandmedicalservices. SalesTaxRevenueDebtServiceFund Thisfundisusedtoaccountfordebtservicepayments forthepublicimprovementrevenuerefundingbonds,series2012. TheCountyreportsthefollowingmajorenterprisefund: LandfillFund ThisfundisusedtoaccountforoperationsoftheCounty slandfillandrecycling activities. Additionally,theCountyreportsthefollowingfundtype: Agency Funds Agency funds are used to account for resources held in a purely custodial capacity. MeasurementFocusandBasisofAccounting The governmentwide financial statements are reported using the economic resources measurementfocusandtheaccrualbasisofaccounting,asaretheproprietaryfundandfiduciary fundfinancialstatements.revenuesarerecordedwhenearnedandexpensesarerecordedwhena liabilityisincurred,regardlessofthetimingofrelatedcashflows. Propertytaxesarerecognizedasrevenuesintheyearforwhichtheyarelevied.Grantsandsimilar itemsarerecognizedasrevenueassoonasalleligibilityrequirementsimposedbytheproviderhave beenmet. Governmental funds are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they become measurableandavailableasnetcurrentassets.forthispurpose,thecountyconsidersrevenuesto be available if they are collected within 60days of the end of the current fiscal year. Taxes and certainintergovernmentalrevenuesconstitutethemostsignificantsourcesofrevenueconsidered susceptible to accrual. In governmental funds, expenditures are generally recognized when the related liability is incurred. However, debt service expenditures, and expenditures related to compensatedabsencesandclaimsandjudgments,arerecordedonlywhenpaymentisdue. Proprietary funds record both operating and nonoperating revenues and expenses. The principal operatingrevenuesarethosethatareobtainedfromtheoperationsoftheproprietaryfundand 13

28 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) LevyCounty,Florida NotestoFinancialStatements includeuserfeesandspecialassessments.nonoperatingrevenuesarenotrelatedtotheoperations oftheproprietaryfundandincludeinterestearningsandgrants.operatingexpensesrepresentthe cost of operations, which includes depreciation. Nonoperating expenses are not related to operations,suchasinterestexpense. CashandEquivalents Thefinancialinstitutionsinwhichthecountyagenciesplacetheirdepositsarecertifiedas qualified publicdepositories, asrequiredunderthefloridasecurityforpublicdepositsact.therefore,the deposits are entirely insured by Federal depository insurance and/or entirely collateralized pursuanttochapter280,floridastatutes. ForpurposesoftheStatementofCashFlows,onlyhighlyliquidinvestmentswithoriginalmaturities ofthreemonthsorlessareconsideredtobecashequivalents. Prepaids Certainpaymentstovendorsreflectcostsapplicabletofutureaccountingperiodsandarerecorded as prepaid items in both governmentwide and fund financial statements. An offsetting nonspendableamountisreportedinthefundfinancialstatementstoindicatethatprepaidsdonot representavailablespendableresources. Receivables Accountsreceivablesofthegovernmentalfundsarereportednetofanallowanceforuncollectible accounts of approximately $853,000. The allowance represents approximately 53% of gross ambulanceserviceaccountsreceivableatseptember30,2017. Managementbelievestheaccountsreceivableoftheproprietaryfundarefullycollectible. CapitalAssets Capitalassetsarevaluedathistoricalcostorestimatedhistoricalcost.Donatedcapitalassetsare recordedatestimatedacquisitionvalue.thethresholdforcapitalizingpropertyandequipmentis generally$5,000.thethresholdforcapitalizinginfrastructureis$25,000. The County began prospective reporting of general infrastructure assets at the effective date of GASB Statement No.34. Theestimated cost of the initial reporting of these assetswas obtained throughbacktrending(i.e.estimatingthecurrentreplacementcostoftheinfrastructureandusing appropriateindicestodeflatethecosttotheacquisitionyearorestimatedacquisitionyear).the reportedvaluesexcludenormalmaintenanceandrepairswhichareessentiallyamountsspentin relationtocapitalassetsthatdonotincreasethecapacityorefficiencyoftheitemorextendits usefullifebeyondtheoriginalestimate.depreciationiscalculatedusingthestraightlinemethod overthefollowingestimatedusefullives: 14

29 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) LevyCounty,Florida NotestoFinancialStatements Buildings Improvements Equipment Infrastructure 30 50yrs yrs. 5 15yrs yrs. CompensatedAbsences Personnel policies of the various county agencies allow a limited accumulation and vesting of unusedemployeevacationandsickleave.aliabilityisaccruedwhenincurredinthegovernment wide financial statements. However, a liability is reported in governmental funds only when paymentisdue. FundBalance The County follows the provisions of GASB Statement No.54, Fund Balance Reporting and Governmental Fund Type Definitions to classify fund balances for governmental funds into specificallydefinedclassifications.theclassificationscompriseahierarchybasedprimarilyonthe extent to which the County is bound to honor constraints on the specific purposes for which amountsinthefundscanbespent. ThefundbalanceclassificationsspecifiedinGASBStatementNo.54areasfollows: NonspendableFundBalance Nonspendablefundbalancesareamountsthatcannotbespent becausetheyareeither(a)notinspendableformor(b)legallyorcontractuallyrequiredtobe maintainedintact. RestrictedFundBalance Restrictedfundbalancesarerestrictedwhenconstraintsplacedon theuseofresourcesareeither:(a)externallyimposedbycreditors,grantors,contributors,or laws or regulations of other governments; or (b) imposed by law through constitutional provisionsorenablinglegislation. Committed Fund Balance Committed fund balances are amounts that can only be used for specificpurposes as a result of constraints imposed byformal action of the County s highest levelofdecisionmakingauthority,whichisanordinanceofthecounty.committedamounts cannotbeusedforanyotherpurposeunlessthecountyremovesthoseconstraintsbytaking thesametypeofaction. Assigned Fund Balance Assigned fund balances are amounts that are constrained by the County s intent to be used for specific purposes, but are neither restricted nor committed. Intentisexpressedby(a)theBoardofCountyCommissionersor(b)abodyorofficialtowhich theboardofcountycommissionershasdelegatedtheauthoritytoassignamountstobeused forspecificpurposes. Unassigned Fund Balance Unassigned fund balance is the residual classification for the GeneralFund. 15

30 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) LevyCounty,Florida NotestoFinancialStatements TheCounty spolicyistoexpendresourcesinthefollowingorder:restricted,committed,assigned, andunassigned. RestrictedNetPosition In the accompanying statement of net position, restricted net position is subject to restrictions beyondthecounty scontrol.therestrictioniseitherexternallyimposed(forinstance,bycreditors, grantors, contributors, or laws/regulations of other governments) or is imposed by law through constitutionalprovisionsorenablinglegislation.itisthepracticeofthecountytoutilizerestricted assetsbeforeunrestrictedassets. The accompanying statement of net position includes approximately $1,857,861 of net position restrictedbyenablinglegislation. Pensions Forpurposesofmeasuringthenetpensionliability,deferredoutflowsofresourcesanddeferred inflowsofresourcesrelatedtopensions,andpensionexpense,informationaboutthefiduciarynet positionofthefloridaretirementsystempensionplanandhealthinsurancesubsidyprogramand additionsto/deductionsfromtheplans fiduciarynetpositionhavebeendeterminedonthesame basisastheyarereportedbytheplans.forthispurpose,benefitpayments(includingrefundsof employee contributions) are recognized when due and payable in accordance with the benefit terms.investmentsarereportedatfairvalue. DeferredOutflows/InflowsofResources A deferred outflow of resources is a consumption of net assets that is applicable to a future reportingperiod. Adeferredinflowofresourcesisanacquisitionofnetassetsthatisapplicabletoafuturereporting period. UseofEstimates Thepreparationoffinancialstatementsinconformitywithgenerallyacceptedaccountingprinciples requiresmanagementtomakevariousestimates.actualresultscoulddifferfromthoseestimates. NOTE2 CASHANDCASHEQUIVALENTS DepositswithFinancialInstitutions Thefinancialinstitutionsinwhichthecountyagenciesplacetheirdepositsarecertifiedas qualified publicdepositories, asrequiredunderthefloridasecurityforpublicdepositsact.therefore,the deposits are entirely insured by Federal depository insurance and/or entirely collateralized pursuanttochapter280,floridastatutes. 16

31 LevyCounty,Florida NotestoFinancialStatements NOTE3 PROPERTYTAXES Ingovernmentalfunds,propertytaxrevenuesarerecognizedwhenlevied,totheextentthatthey resultincurrentreceivables. Detailsofthepropertytaxcalendararepresentedbelow: Liendate January1 Levydate October1 Discountperiods November February Nodiscountperiod March Delinquentdate April1 NOTE4 FUNDBALANCECLASSIFICATIONSANDNEGATIVEFUNDBALANCES FundBalanceClassifications Fundbalanceisrestrictedforthefollowingpurposes: General Fund Fundbalanceisassignedforthefollowingpurposes: Roadand Bridge Other Governmental Funds Publicsafety $ $ $391,139 $391,139 Transportation 377,197 1,651,213 2,028,410 Economicenvironment 616, ,203 Humanservices 33,206 33,206 Cultureandrecreation 194, , ,284 Courtcosts 2,930,977 2,930,977 Totalrestrictedfundbalance $194,261 $377,197 $5,806,761 $6,378,219 General Fund Roadand Bridge EMSFund SalesTax Revenue Total Other Governmental Funds Publicsafety $ $ $1,800,040 $ $705,141 $2,505,181 Physicalenvironment 72,278 72,278 Transportation 742, , ,809 Capitaloutlay 383, ,895 Debtservice 5,336,958 5,336,958 Subsequentyear'sexpenditures 3,700,681 3,700,681 Totalassignedfundbalance $3,700,681 $742,995 $1,800,040 $5,336,958 $1,373,128 $12,953,802 Total 17

32 LevyCounty,Florida NotestoFinancialStatements NOTE4 FUNDBALANCECLASSIFICATIONSANDNEGATIVEFUNDBALANCES(CONTINUED) NegativeFundBalance At September 30, 2017, the Grants fund had negative fund balance of $60,926, resulting from a delay in receiving reimbursement for grant expenditures.this is expected to be resolved in the subsequentfiscalyear. NOTE5 ACCOUNTSPAYABLEANDACCRUEDLIABILITIES GovernmentalFunds AtSeptember30,2017,GeneralFundpayablesconsistedof45%wagesandbenefitspayableand 55%payabletovendorsinthenormalcourseofbusiness. The payables of the other governmental funds consist primarily of amounts due for goods and servicesreceivedinthenormalcourseofbusiness. ProprietaryFund EnterpriseFundpayablesconsistedof20%wagesandbenefitspayableand80%payabletovendors inthenormalcourseofbusiness. NOTE6 INTERFUNDBALANCESANDTRANSFERS AtSeptember30,2017,interfundbalancesconsistedof: Dueto Other Road Govern General and mental Fund Bridge Funds Total Duefrom GeneralFund $ $15,761 $26,997 $42,758 RoadandBridge EMSFund 15, ,898 OtherGovernmentalFunds 64,120 41,942 28, ,181 LandfillFund 18,735 18,735 Total $64,120 $92,278 $55,184 $211,582 Theinterfundbalancesresultedfromthenormalcourseofoperationsandareexpectedtobepaid withinoneyear. 18

33 NOTE6 INTERFUNDBALANCESANDTRANSFERS(CONTINUED) Interfundtransfersaresummarizedbelow: LevyCounty,Florida NotestoFinancialStatements Transfersout Sales Other General Tax Govern Fund Revenue mental Total Transfersin GeneralFund $ $1,631,645 $162,766 $1,794,411 OtherGovernmentalFunds 364, ,896 Total $364,896 $1,631,645 $162,766 $2,159,307 Interfundtransfersweremadeinthenormalcourseofoperationsandareconsistentwiththe activitiesofthefundmakingthetransfer. NOTE7 CHANGESINCAPITALASSETS Asummaryofchangesincapitalassetsfollows: Balance Balance October1, September30, Governmentalactivities 2016 Additions Deductions 2017 Capitalassetsnotbeingdepreciated: Land $5,101,751 $ $ $5,101,751 Capitalassetsbeingdepreciated: Buildings 20,560,031 20,560,031 Improvements 481, ,529 Equipment 22,578,255 1,598,846 1,773,234 22,403,867 Infrastructure 204,003,894 1,785, ,788,917 Totalcapitalassetsbeingdepreciated 247,623,709 3,383,869 1,773, ,234,344 Lessaccumulateddepreciationfor: Buildings 8,326, ,519 8,745,501 Improvements 378,354 13, ,679 Equipment 16,354,273 1,609,576 1,736,981 16,226,868 Infrastructure 156,391,738 5,894, ,285,852 Totalaccumulateddepreciation 181,451,347 7,935,534 1,736, ,649,900 Totalcapitalassetsbeingdepreciated,net 66,172,362 (4,551,665) 36,253 61,584,444 Governmentalactivitiescapitalassets,net $71,274,113 $(4,551,665) $36,253 $66,686,195 19

34 LevyCounty,Florida NotestoFinancialStatements NOTE7 CHANGESINCAPITALASSETS(CONTINUED) Depreciationexpensewaschargedtogovernmentalactivitiesasfollows: Generalgovernment $511,457 Publicsafety 977,529 Physicalenvironment 33,058 Transportation 6,347,907 Humanservices 46,355 Cultureandrecreation 19,228 Total $7,935,534 Balance October1, Balance September30, Businesstypeactivities 2016 Additions Deductions 2017 Capitalassetsnotbeingdepreciated: Land Capitalassetsbeingdepreciated: Buildings Improvements Equipment Totalcapitalassetsbeingdepreciated Lessaccumulateddepreciationfor: Buildings Improvements Equipment Totalaccumulateddepreciation Totalcapitalassetsbeingdepreciated,net Businesstypeactivitiescapitalassets,net $239,648 $ $ $239,648 3,998,725 3,998,725 13,800 13,800 2,424,125 59,596 16,434 2,467,287 6,436,650 59,596 16,434 6,479, ,500 80, ,997 13,800 13,800 1,891, ,895 16,434 1,985,524 2,643, ,392 16,434 2,818,321 3,793,287 (131,796) 3,661,491 $4,032,935 $(131,796) $ $3,901,139 20

35 LevyCounty,Florida NotestoFinancialStatements NOTE8 LONGTERMLIABILITIES AtSeptember30,2017,theCounty sgovernmentalactivitieslongtermliabilitiesconsistedof: Publicimprovementrevenuerefundingbonds,series2012 $3,235,000 Bondpremium 76,703 Otherpostemploymentbenefitobligation 1,334,083 Capitallease 661,184 Compensatedabsences 1,500,300 Netpensionliability 30,001,966 Totalgovernmentalactivitieslongtermliabilities $ 36,809,236 PublicImprovementRevenueRefundingBonds,Series2012 LevyCountypublicimprovementrevenuerefundingbonds,series2012,datedNovember14,2012, were issued in the amount of $5,655,000 to advance refund the County s outstanding public improvementrevenuebonds,series2003.therefundedbondswerecalledonseptember1,2013. Interest is payable semiannually on March 1 and September 1 at rates ranging from 2% to 3%. Principal is payable on September 1. Debt service is paid from the proceeds of the local governmenthalfcentsalestaxdistributedbythestatefromthelocalgovernmenthalfcentsales TaxClearingFund.Theapproximateamountofthepledgeisequaltotheremainingprincipaland interestof$3,515,428.during2017,$1,560,907ofhalfcentsalestaxrevenuewasrecognizedand $587,248waspaidfordebtservice. Aggregatematuritiesofthebondsareasfollows: YearendingSeptember30, Principal Interest Total 2018 $505,000 $77,448 $582, ,000 67, , ,000 56, , ,000 41, , ,135,000 37,636 1,172,636 Total $3,235,000 $280,428 $3,515,428 DuetoOtherGovernments MedicaidObligation Pursuant to Florida House Bill 5301, the County incurred a liability during fiscal year 2012 for previouslyunpaidanddisputedmedicaidbillingsfromthestateintheamountof$596,083.the balanceduewasdeductedbythestatefromthecounty sshareofitsrevenuesharingproceeds. ThebalancewasfullyrepaidasofSeptember30,

36 LevyCounty,Florida NotestoFinancialStatements NOTE8 LONGTERMLIABILITIES(CONTINUED) CapitalLease Capitalleaseobligationsconsistoffinancingagreementstopurchaselawenforcementvehiclesand motorgraderswithinterestratesrangingfrom3.20%to5.75%payableinannualinstallments. Thefutureminimumleaseobligationsandthenetpresentvalueoftheseminimumleasepayments asofseptember30,2017,areasfollows: YearendingSeptember30, Amount 2018 $265, , , ,856 Totalpayments 714,176 Lessinterest (52,992) Business TypeLongTermLiabilities $661,184 AtSeptember30,2017,theCounty sbusinesstypeactivitieslongtermliabilitiesconsistedof: Accruedlandfillclosureandlongtermcarecosts $ 5,752,840 Otherpostemploymentbenefitobligation 71,543 Netpensionliability 927,895 Compensatedabsences 85,000 Totalbusinesstypeactivitieslongtermliabilities $ 6,837,278 AccruedLandfillClosureandLong TermCareCosts TheFloridaDepartmentofEnvironmentalProtection( FDEP )requiresalllandfilloperatorstofund landfillclosurecostsbeforereceivingapermitforlandfillclosure. The County accrues a portion of the estimated future closure cost of the currently operating landfills each year even though actual payouts will not occur until the landfills are closed. The amountrecognizedeachyearisbasedonthelandfillcapacityusedasofthebalancesheetdate.at September30,2017, the County has accrued $247,772 for such estimated costs for the ClassIII LandfillTrench2.Theseclosurecostshavebeenaccruedbasedon38%ofthelandfillcapacityused todate. 22

37 LevyCounty,Florida NotestoFinancialStatements NOTE8 LONGTERMLIABILITIES(CONTINUED) Additionally, FDEP requires landfill owners to perform certain maintenance and monitoring functions at the landfill sites for twenty or thirty years after closure. A portion of these costs is recognizedeachperiodduringthelifeofthelandfill.thecountyhasaccrued$5,505,068forsuch estimatedlongtermcarecostsasofseptember30,2017. The remaining estimated liability for closure and post closure costs is approximately $289,000 whichwillberecognizedastheremainingcapacityisused.theestimatedcostsofclosureandpost closure care are subject to changes such as the effects of inflation, revision of laws and other variables. Additionally,FDEPrequiresthatlandfillownersescrowlandfillpostclosuremaintenancecostsin additiontoclosurecosts,inanamountsufficienttocoverthefollowingyear slongtermcarecosts oncethelandfillsarecapped.thecountyhasescrowed$1,457,477tocoverfdep slandfillclosure costrequirementsasofseptember30,2017andhasescrowed$1,142,755forlongtermcarecosts. NOTE9 CHANGESINLONGTERMLIABILITIES Asummaryofchangesingovernmentalactivitieslongtermliabilitiesfollows: Balance Balance Due October1, September30, Within 2016 Additions Deductions 2017 OneYear Bondspayable $3,735,000 $ $500,000 $3,235,000 $505,000 Bondpremium 89,487 12,784 76,703 Otherpostemployment benefitobligation 1,226, ,583 31,000 1,334,083 Duetoothergovernments Medicaidobligation 82,790 82,790 Capitallease 369, , , , ,581 Compensatedabsences 1,432,100 1,705,400 1,637,200 1,500, ,500 Netpensionliability 27,428,603 2,573,363 30,001, ,835 Total $ 34,364,420 $5,051,399 $2,606,583 $36,809,236 $1,552,916 23

38 LevyCounty,Florida NotestoFinancialStatements NOTE9 CHANGESINLONGTERMLIABILITIES Asummaryofchangesinbusinesstypeactivitieslongtermliabilitiesfollows: Balance Balance Due October1, September30, Within 2016 Additions Deductions 2017 OneYear Accruedlandfillclosureand longtermcarecosts $6,177,497 $ $424,657 $5,752,840 $247,772 Otherpostemployment benefitobligation 66,793 4,750 71,543 Netpensionliability 848,307 79, ,895 4,665 Compensatedabsences 77,000 48,000 40,000 85,000 34,000 Total $7,169,597 $132,338 $464,657 $6,837,278 $286,437 NOTE10 STATEOFFLORIDAPENSIONPLANS DefinedBenefitPlans TheCountyparticipatesintwodefinedbenefitpensionplansthatareadministeredbytheStateof Florida, Department of Management Services, Division of Retirement. The plans provide retirement,disabilityordeathbenefitstoretireesortheirdesignatedbeneficiaries.chapter121, FloridaStatutes,establishestheauthorityforbenefitprovisions.Changestothelawcanonlyoccur throughanactofthefloridalegislature. TheStateofFloridaissuesapubliclyavailablefinancialreportthatincludesfinancialstatementsand required supplementary information for the plans. That report is available from the Florida DepartmentofManagementServices website( The Florida Retirement System (FRS) Pension Plan is a costsharing, multipleemployer defined benefit pension plan with a Deferred Retirement Option Program (DROP) available for eligible employees.thefrswasestablishedandisadministeredinaccordancewithchapter121,florida Statutes.Retireesreceivealifetimepensionbenefitwithjointandsurvivorpaymentoptions.FRS membershipiscompulsoryforemployeesfillingregularlyestablishedpositionsinastateagency, countyagency,stateuniversity,statecollege,ordistrictschoolboard,unlessrestrictedfromfrs membership under Sections or , Florida Statutes, or allowed to participate in a definedcontributionplaninlieuoffrsmembership.participationbycities,municipalities,special districts,charterschoolsandmetropolitanplanningorganizationsisoptional. 24

39 LevyCounty,Florida NotestoFinancialStatements NOTE10 STATEOFFLORIDAPENSIONPLANS(CONTINUED) The Retiree Health Insurance Subsidy (HIS) Program is a costsharing, multipleemployer defined benefit pension plan established and administered in accordance with Section , Florida Statutes.Thebenefitisamonthlypaymenttoassistretireesofthestateadministeredretirement systems in paying their health insurance costs.to be eligible to receive a HIS benefit, a retiree under a state administered retirement system must provide proof of eligible health insurance coverage,whichcanincludemedicare. BenefitsProvided Benefits under the FRS Pension Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentageoftheaveragefinalcompensation.formembersinitiallyenrolledbeforejuly1,2011, theaveragefinalcompensationistheaverageofthefivehighestfiscalyears earnings;formembers initiallyenrolledonorafterjuly1,2011,theaveragefinalcompensationistheaverageoftheeight highestfiscalyears earnings.thetotalpercentagevalueofthebenefitreceivedisdeterminedby calculatingthetotalvalueofallservice,whichisbasedontheretirementplanand/orclasstowhich thememberbelongedwhentheservicecreditwasearned. EligibleretireesandbeneficiariesreceiveamonthlyHISpaymentequaltothenumberofyearsof servicecreditedatretirementmultipliedby$5.theminimumpaymentis$30andthemaximum paymentis$150permonth,pursuanttosection ,floridastatutes. Contributions The contribution requirements of plan members and the County are established and may be amendedbythefloridalegislature.employeesarerequiredtocontribute3.00%oftheirsalaryto thefrs.thecounty scontributionratesasofseptember30,2017,wereasfollows: FRS HIS Regularclass 6.26% 1.66% Specialriskclass 21.61% 1.66% Seniormanagementserviceclass 21.05% 1.66% Electedofficials 43.84% 1.66% DROPfromFRS 11.60% 1.66% TheCounty scontributionsfortheyearendedseptember30,2017,were$2,107,011tothefrsand $291,142totheHIS. 25

40 LevyCounty,Florida NotestoFinancialStatements NOTE10 STATEOFFLORIDAPENSIONPLANS(CONTINUED) PensionLiabilitiesandPensionExpense InitsfinancialstatementsfortheyearendedSeptember30,2017,theCountyreportedaliability for its proportionate shares of the net pension liabilities of the FRS Pension Plan and its proportionateshareofthenetpensionliabilityofthehisprogram.thenetpensionliabilitieswere measuredasofjune30,2017.thecounty sproportionsofthenetpensionliabilitieswerebased on the County s share of contributions to the pension plans relative to the contributions of all participatingentities,actuariallydetermined. FRS HIS Netpensionliability $25,149,353 $5,780,508 Proportionat: Currentmeasurementdate % % Priormeasurementdate % % Pensionexpense(benefit) $4,356,248 $492,024 DeferredOutflows/InflowsofResourcesRelatedtoPensions AtSeptember30,2017,theCountyreporteddeferredoutflowsofresourcesanddeferredinflowsof resourcesrelatedtopensionsfromthefollowingsources: FRS HIS Deferred Deferred Deferred Deferred Outflows Inflows Outflows Inflows ofresources ofresources ofresources ofresources Differencesbetweenexpectedandactualexperience $2,308,104 $139,314 $ $12,036 Changesofassumptions 8,451, , ,847 Netdifferencebetweenprojectedandactualearnings onpensionplaninvestments 623,264 3,206 Changesinproportionanddifferencesbetween employer contributionsandproportionateshareof contributions 1,361, , , ,840 Employercontributionssubsequenttothemeasurement 603,816 72,370 Total $12,725,679 $1,467,502 $1,232,634 $638,723 Deferred outflows of resources related to employer contributions paid subsequent to the measurementdateandpriortotheemployer sfiscalyearendwillberecognizedasareductionof thenetpensionliabilityinthereportingperiodendingseptember30,2018.otherpensionrelated 26

41 27 LevyCounty,Florida NotestoFinancialStatements NOTE10 STATEOFFLORIDAPENSIONPLANS(CONTINUED) amounts reported as deferred outflows of resources and deferred inflows of resources will be recognizedinpensionexpenseasfollows: YearendingSeptember30, FRS HIS 2018 $1,467,137 $146, ,666, , ,597, , , , ,711,268 48,163 Thereafter 582,045 (77,832) Total $10,654,361 $521,541 ActuarialAssumptions ThetotalpensionliabilityforeachofthedefinedbenefitplanswasmeasuredasofJune30,2017. ThetotalpensionliabilityfortheFRSPensionPlanwasdeterminedbyanactuarialvaluationdated July 1, For the HIS Program, the total pension liability was determined by an actuarial valuation dated July 1, 2016, rolled forward using standard actuarial procedures. The individual entryagenormalactuarialcostmethodwasusedforeachplan,alongwiththefollowingsignificant actuarialassumptions: FRS HIS Inflation 2.60% 2.60% Salaryincreases 3.25% 3.25% Investmentrateofreturn 7.10% N/A Discountrate 7.10% 3.58% Mortality assumptions for both plans were based on the Generational RP2000 with Projection ScaleBB. For both plans, the actuarial assumptions were based on the results of an actuarial experience studyfortheperiodjuly1,2008,throughjune30,2013. Thefollowingchangesinkeyactuarialassumptionsoccurredin2017: FRS: Thelongtermexpectedrateofreturnandthediscountrateusedtodeterminethetotal pensionliabilitydecreasedfrom7.60%to7.10%. HIS: Themunicipalbondindexrateandthediscountrateusedtodeterminethetotalpension liabilityincreasedfrom2.85%to3.58%.

42 LevyCounty,Florida NotestoFinancialStatements NOTE10 STATEOFFLORIDAPENSIONPLANS(CONTINUED) Thelongtermexpectedinvestmentrateofreturnwasnotbasedonhistoricalreturns,butinstead was based on a forwardlooking capital market economic model. Each asset class assumption is basedonaconsistentsetofunderlyingassumptions,andincludesanadjustmentfortheinflation assumption. For the FRS Pension Plan, the table below summarizes the consulting actuary s assumptionsbasedonthelongtermtargetassetallocation. Compound Annual Annual Target Arithmetic (Geometric) AssetClass Allocation Return Return Cash 1% 3.0% 3.0% Fixedincome 18% 4.5% 4.4% Globalequity 53% 7.8% 6.6% Realestate 10% 6.6% 5.9% Privateequity 6% 11.5% 7.8% Strategicinvestments 12% 6.1% 5.6% DiscountRate ThediscountrateusedtomeasurethetotalpensionliabilityfortheFRSPensionPlanwas7.10%. FRS fiduciary net position was projected to be available to make all projected future benefit paymentsofcurrentactiveandinactiveemployees.therefore,thediscountrateforcalculatingthe totalpensionliabilityisequaltothelongtermexpectedrateofreturn. BecausetheHISProgramisessentiallyfundedonapayasyougobasis,amunicipalbondrateof 3.58%wasusedtodeterminethetotalpensionliabilityfortheprogram.TheBondBuyerGeneral ObligationBond20BondMunicipalBondIndexwasusedastheapplicablemunicipalbondindex. SensitivityAnalysis The following tables demonstrate the sensitivity of the net pension liability to changes in the discountrate.thesensitivityanalysisshowstheimpacttothecounty sproportionateshareofthe netpensionliabilityifthediscountratewas1.00%higheror1.00%lowerthanthecurrentdiscount rate. 100% 28

43 LevyCounty,Florida NotestoFinancialStatements NOTE10 STATEOFFLORIDAPENSIONPLANS(CONTINUED) FRS HIS 1%Decrease Current Discount Rate 1%Increase 1%Decrease Current Discount Rate 1%Increase (6.10%) (7.10%) (8.10%) (2.58%) (3.58%) (4.58%) Employer'sproportionateshare ofthenetpensionliability $45,518,812 $25,149,353 $8,238,037 $6,596,325 $5,780,508 $5,100,977 PensionPlans FiduciaryNetPosition Detailed information about the pension plans fiduciary net position is available in the State s separatelyissuedfinancialreports. DefinedContributionPlan Pursuant to Chapter121, Florida Statutes, the Florida Legislature created the Florida Retirement Investment Plan ( FRS Investment Plan ), a defined contribution pension plan qualified under Section401(a)oftheInternalRevenueCode.TheFRSInvestmentPlanisanalternativeavailableto membersofthefloridaretirementsysteminlieuofthedefinedbenefitplan.thereisauniform contributionratecoveringboththedefinedbenefitanddefinedcontributionplans,dependingon membership class. Required employer contributions made to the plan during the year ended September30,2017,totaled$313,804. NOTE11 OTHERPOSTEMPLOYMENTBENEFITPLANS BoardofCountyCommissioners OPEBPlan Plan Description The County administers a single employer defined benefit plan for postemployment benefits other than pension benefits (OPEB Plan). The OPEB Plan provides for medicalinsuranceforretireesandeligibledependentsoftheboardofcountycommissionersand allconstitutionalofficers,exceptthesheriff.thebenefitsareprovidedintheformofanimplicit ratesubsidywhereretireesreceivehealthinsurancecoveragebypayingacombinedretiree/active rateorreducedsubsidyrate. TheCountyprovideshealthcarecoveragethroughaPPOorHMOplanofferedthroughBlueCross BlueShieldofFloridaandadministeredbyPublicRiskManagementTrust. Eligibility Employees of the Board of County Commissioners, Clerk of Courts, Tax Collector, PropertyAppraiserandSupervisorofElectionsareeligibleatage62with6yearsofservice,orwith 30yearsofservice,regardlessofage,ifhiredpriortoJuly1,2011.EmployeeshiredonorafterJuly 1,2011,areeligibleatage65with8yearsofserviceor33yearsofserviceatanyage.Employees mayretireearlyatage43and6yearsofservice.serviceincurreddisabledemployeesmayretire immediately,whilenondutyrelateddisabledemployeesmayretireuponcompletionof8yearsof 29

44 NOTE11 OTHERPOSTEMPLOYMENTBENEFITPLANS(CONTINUED) LevyCounty,Florida NotestoFinancialStatements service. Once a retiree waives coverage, he is not eligible to participate in the future. Surviving spousesofdeceasedretireesareeligibleforcobrainsurancecoveragefor36monthsiftheywere coveredpriortotheretiree sdeath. As of October1,2015, the date of the latest actuarial valuation, plan participation consisted of 265activeemployeesand2retireesreceivingbenefits.Oftheactiveemployees,approximately246 arenotyeteligibletoreceivebenefits. AseparatestandalonefinancialstatementisnotpreparedfortheOPEBPlan. Funding Policy The contribution requirements of the plan members and the County are establishedandmaybeamendedbythelevycountyboardofcountycommissioners.atrusthas not been established. Contributions are being made based on payasyougo financing requirements. Currently, nonmedicare retirees contribute the full active/retiree premium. Medicareeligibleretireespay100%ofthe MedicalReduced rate,whichis2530%lessthanthe activeparticipant spremiumrates. AnnualOPEBCostandNetOPEBObligationTheCountyelectedtoimplementStatementNo.45 prospectivelyeffectiveoctober1,2008.thenetopebobligationwassettozeroattransition.itis assumedthatthepaymentoftheliabilitywillbecoveredentirelybythegeneralfund.theannual cost(expense)ofthecounty sopebplaniscalculatedbasedontheannualrequiredcontribution ( ARC ),anamountactuariallydeterminedinaccordancewiththeparametersofgasbstatement No.45.TheARCrepresentsaleveloffundingthat,ifpaidonanongoingbasis,isprojectedtocover thenormalcosteachyearandamortizeanyunfundedactuarialliabilityoveraperiodnottoexceed 30years.ThefollowingtableshowsthecomponentsoftheCounty sannualopebplancostforthe year,theamountactuallycontributedbytheemployer,andthechangesinthenetopebobligation. Annualrequiredcontribution $ 148,000 InterestonnetOPEBobligation 45,000 AdjustmentstoARC (92,000) AnnualOPEBcost(expense) 101,000 Contributionsmade 6,000 IncreaseinnetOPEBobligation 95,000 NetOPEBobligationbeginningofyear 1,211,000 NetOPEBobligationendofyear $1,306,000 30

45 NOTE11 OTHERPOSTEMPLOYMENTBENEFITPLANS(CONTINUED) TrendInformation: LevyCounty,Florida NotestoFinancialStatements AnnualOPEB ActualEmployer Percentage NetOPEB YearEnded Cost Contribution Contributed Obligation 9/30/2015 $215,000 $43, % $1,116,000 9/30/ ,000 6, % 1,211,000 9/30/ ,000 6, % 1,306,000 ActuarialMethodsandAssumptions Calculationsofbenefitsforfinancialreportingpurposesare basedonthesubstantiveplan(theplanasunderstoodbytheemployerandplanmembers)and includethetypesofbenefitsprovidedatthetimeofeachvaluationandthehistoricalpatternof sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used are designed to reduce short term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long term perspective of the calculations. Actuarialvaluationsinvolveestimatesofthevalueofreportedamountsandassumptionsaboutthe probability of events far into the future, and actuarially determined amounts are subject to continualrevisionasactualresultsarecomparedtopastexpectationsandnewestimatesaremade aboutthefuture. Theactuarialmethodsare: Actuarialcostmethod Entryagenormal Amortizationmethod Leveldollar Amortizationperiod 30years closed;remaining amortizationis22years Assetvaluationmethod N/A Theactuarialassumptionsare: Discountrate 4.00% Projectedannualsalariesincrease N/A Inflationrate 3.0% Mortality RP2014GenerationalTable; Projected to 2030 using MP2015 projection scale and applied on a genderspecificbasis Healthcarecosttrendrate 7.5%reduced0.5% each year until reaching ultimate trendrateof4.5%. 31

46 NOTE11 OTHERPOSTEMPLOYMENTBENEFITPLANS(CONTINUED) LevyCounty,Florida NotestoFinancialStatements KeyChangesinAssumptions Thefollowingassumptionschangedfromthelastactuarialvaluation datedoctober1,2014:1)theparticipationassumption,thatis,theassumedpercentageoffuture retireesthatparticipateandenrollinthehealthplandecreasedfrom30%to10%;2)theinflation ratedecreasedfrom4%to3%;and3)lowerthanexpectedclaimspercapita. FundedStatusandFundingProgress TheOPEBcontributionsmadeforthe2017fiscalyearwere 6% of the annual OPEB cost. As of the actuarial valuation report dated October1,2015, the actuarialvalueofassetswas$0,theactuarialaccruedliabilityforbenefitswas$1.039million,the unfundedactuarialaccruedliability(uaal)wasalso$1.039million,thefundedratiowas0%,the coveredpayrollwas$9,852,513,andtheuaalasapercentageofcoveredpayrollwas11%. The required schedule of funding progress immediately following the notes to the financial statementspresentsmultiyeartrendinformationaboutwhethertheactuarialvalueofplanassetsis increasingordecreasingovertimerelativetotheactuarialaccruedliabilityforbenefits. The projection of benefits for financial reporting purposes does not explicitly incorporate the potentialeffectsoflegalorcontractualfundinglimitations. Sheriff sofficeplan TheOfficeoftheSheriffadministersasingleemployerdefinedbenefitplanforpostemployment benefits other than pension benefits (OPEB Plan). The OPEB Plan provides a health insurance subsidyforretireesandeligibledependents. TheOfficeprovideshealthcarecoveragethroughafullyinsuredplanofferedthroughAvMedfor retiredemployeesofthesheriff soffice.substantiallyallemployeesmaybecomeeligibleforthose benefits if they reach normal retirement age while working for the Sheriff s Office and have providedsixormoreyearsofservice. AsofOctober1,2014,thedateofthelatestactuarialvaluation,planparticipationconsistedof130 activeemployeesand6retireesanddependentsreceivingbenefits. AseparatestandalonefinancialstatementisnotpreparedfortheOPEBPlan. FundingPolicy ThecontributionrequirementsoftheplanmembersandtheOfficeareestablished andmaybeamendedbythelevycountysheriff.atrusthasnotbeenestablished.contributions arebeingbasedonpayasyougofinancingrequirements. AnnualOPEBCostandNetOPEBObligation TheOfficeelectedtoimplementStatementNo.45 prospectivelyeffectiveoctober1,2008.thenetopebobligationwassettozeroattransition.the annual cost (expense) of the Office s OPEB Plan is calculated based on the Annual Required Contribution ( ARC ), an amount actuarially determined in accordance with the parameters of GASBStatementNo.45.TheARCrepresentsaleveloffundingthat,ifpaidonanongoingbasis,is projectedtocoverthenormalcosteachyearandamortizeanyunfundedactuarialliabilityovera periodnottoexceed20years.thefollowingtableshowsthecomponentsoftheoffice sannual 32

47 NOTE11 OTHERPOSTEMPLOYMENTBENEFITPLANS(CONTINUED) LevyCounty,Florida NotestoFinancialStatements OPEBPlancostfortheyear,theamountactuallycontributedbytheemployer,andthechangesin theopebplanobligation. Annualrequiredcontribution $44,000 InterestonnetOPEBobligation 3,285 AdjustmentstoARC (4,791) AnnualOPEBcost(expense) 42,494 Contributionsmade 25,000 IncreaseinnetOPEBobligation 17,494 NetOPEBobligationbeginningofyear 82,132 NetOPEBobligationendofyear $99,626 TrendInformation: AnnualOPEB ActualEmployer Percentage NetOPEB YearEnded Cost Contribution Contributed Obligation 9/30/2015 $43,154 $25, % $64,311 9/30/ ,821 25, % 82,132 9/30/ ,494 25, % 99,626 ActuarialMethodsandAssumptions Calculationsofbenefitsforfinancialreportingpurposesare basedonthesubstantiveplan(theplanasunderstoodbytheemployerandplanmembers)and includethetypesofbenefitsprovidedatthetimeofeachvaluationandthehistoricalpatternof sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used are designed to reduce short term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long term perspective of the calculations. Actuarialvaluationsinvolveestimatesofthevalueofreportedamountsandassumptionsaboutthe probability of events far into the future, and actuarially determined amounts are subject to continualrevisionasactualresultsarecomparedtopastexpectationsandnewestimatesaremade aboutthefuture. Theactuarialmethodsare: Actuarialcostmethod Projectedunitcredit Amortizationmethod Levelpercentofprojectedpayroll Amortizationperiod(open) 20years;openended Annualinflationrate 2.5% 33

48 NOTE11 OTHERPOSTEMPLOYMENTBENEFITPLANS(CONTINUED) Theactuarialassumptionsare: LevyCounty,Florida NotestoFinancialStatements Investmentrateofreturn 4.0% Projectedannualsalariesincrease 2.5% Healthcarecosttrendrate 8.5%reduced0.5% eachyearuntilreaching ultimatetrendrateof5.0% Mortality RP2014MortalityTable,Scale MP2014;fullygenerational Funded Status and Funding Progress The OPEB payments made for the 2016 fiscal year were 58.4% of the annual OPEB cost. As of the actuarial valuation report dated October1,2014, the actuarial value of assets was $0, the actuarial accrued liability for benefits was $372,000, the unfunded actuarial accrued liability (UAAL) was also $372,000, the funded ratio was 0%, the coveredpayrollwas$6.1millionandtheuaalasapercentageofcoveredpayrollwas6.1%. The required schedule of funding progress immediately following the notes to the financial statementspresentsmultiyeartrendinformationaboutwhethertheactuarialvalueofplanassetsis increasing or decreasing over time relative to the actuarial accrued liability for benefits. The projectionofbenefitsforfinancialreportingpurposesdoesnotexplicitlyincorporatethepotential effectsoflegalorcontractualfundinglimitations. NOTE12 RISKMANAGEMENT CommercialInsurance TheCountyisexposedtovariousrisksoflossrelatedtotorts;theftof,damagetoanddestruction of assets; errors and omissions; and natural disasters for which the County carries commercial insurance. There were no significant reductions in insurance coverages from prior years. For the past three years, there have been no insurance settlements significantly in excess of insurance coverages. PublicEntityRiskPool For its health insurance, property, general liability and worker s compensation insurance, the CountyjoinedthePublicRiskManagementofFloridaInsuranceTrust(the Trust ),apublicentity risk pool currently operating as a common risk management and insurance program for several membergovernmentalentities.thecountypaysanannualpremiumtothetrustforitscoverage. ThepremiumsaredesignedtofundtheliabilityrisksassumedbytheTrustandarebasedoncertain actualexposuresofeachmember.contributionsalsocoverexcessoflossreinsurancepremiums. 34

49 LevyCounty,Florida NotestoFinancialStatements NOTE12 RISKMANAGEMENT(CONTINUED) TheSheriffparticipatesintheFloridaSheriffs selfinsurancefundforriskrelatedtoprofessional police,automobileliability,andworkers compensation.additionally,thesheriffsponsorsitsown healthinsuranceprogramforitsemployees.aggregatecoverageistwomilliondollars.thesheriff hadnosettlementsthatexceededcoverageintheprevioustwofiscalyears. NOTE13 COMMITMENTSANDCONTINGENCIES TheCountyisinvolvedinvariouslitigationmattersarisingfromthenormaloperationsofalocal government. It is the opinion of legal counsel that none of those matters will have a material financialimpactonthefinancialstatementsofthecounty. The County has a noncancellable lease for acres of land to be used for dirt and limerock mining.theleaseisfor10yearswithanoptiontorenewforanother10years.structuredrental paymentsare$22,750annuallyescalating3%annuallyeffectiveinfiscalyear2020.thepayments aremadefromtheroadandbridgefund,amajorgovernmentalfund. Year Amount 2018 $22, , , , , , , ,821 Total $468,626 NOTE14 FUTUREACCOUNTINGPRONOUNCEMENTS TheGovernmentalAccountingStandardsBoardhasissuedstatementsthatwillbecomeeffectivein 2018.Thestatementsaddress: Other postemployment benefit (OPEB) accounting and financial reporting by employers; Splitinterestagreements; Variouspracticeissues(omnibus);and Certaindebtextinguishmentissues, The County is currently evaluating the effects that these statements will have on its financial statementsfor

50 RequiredSupplementaryInformation

51 LevyCounty,Florida ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActual GeneralFund YearendedSeptember30,2017 Variance BudgetedAmounts Actual withfinal Original Final Amounts Budget Revenues Taxes $18,000,950 $18,000,950 $ 17,743,013 $(257,937) Permits,feesandspecialassessments 299, , ,471 69,471 Intergovernmental 4,059,566 4,065,938 4,227, ,269 Chargesforservices 1,543,309 1,633,873 1,723,035 89,162 Finesandforfeitures 8,000 8,000 5,113 (2,887) Miscellaneous 212, , , ,510 Totalrevenues 24,123,537 24,207,663 24,524, ,588 Expenditures Current: Generalgovernment 8,861,058 8,729,937 7,634,564 1,095,373 Publicsafety 13,909,941 13,721,280 13,165, ,331 Physicalenvironment 639, , , ,605 Economicenvironment 268, , ,990 10,985 Humanservices 1,933,268 2,091,538 1,977, ,197 Cultureandrecreation 827, , , ,425 Courtrelated 547, , ,936 75,549 Reserveforcontingencies 1,713,753 2,195,394 2,195,394 Debtservice: Principal 250, ,953 Interest 19,743 19,743 Totalexpenditures 28,701,166 29,294,650 24,981,791 4,312,859 Excessofrevenuesover(under) expenditures (4,577,629) (5,086,987) (457,540) 4,629,447 Otherfinancingsources(uses) Transfersin 1,298,201 1,538,223 1,794, ,188 Transfersout (588,385) (319,049) (364,896) (45,847) Debtissuancecapitallease 202, ,387 Totalotherfinancingsources (uses) 709,816 1,219,174 1,631, ,728 Netchangeinfundbalances (3,867,813) (3,867,813) 1,174,362 5,042,175 Fundbalances beginningofyear 4,700,000 4,700,000 3,919,999 (780,001) Fundbalances endofyear $832,187 $832,187 $5,094,361 $4,262,174 NotestoBudgetaryComparisonSchedule: The preparation, adoption, and amendment of the budgets are governed by Florida Statutes. The fund is the legal level of control. Budgets are prepared and adopted on a basis that does not differ materially from generally accepted accounting principles(gaap).appropriationslapseatyearend. 36

52 LevyCounty,Florida ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActualRoadandBridgeFund YearendedSeptember30,2017 Variance BudgetedAmounts Actual withfinal Original Final Amounts Budget Revenues Taxes $1,275,000 $1,275,000 $1,295,246 $20,246 Permits,feesandspecialassessments 7,500 7,500 8,700 1,200 Intergovernmental 6,587,368 6,587,368 3,825,952 (2,761,416) Miscellaneous 2,600 2,600 7,687 5,087 Totalrevenues 7,872,468 7,872,468 5,137,585 (2,734,883) Expenditures Current: Transportation 9,089,740 9,089,740 6,007,433 3,082,307 Debtservice: Principal 91,856 (91,856) Totalexpenditures 9,089,740 9,089,740 6,099,289 2,990,451 Excessofrevenuesover(under) expenditures (1,217,272) (1,217,272) (961,704) 255,568 Otherfinancingsources Debtissuancecapitallease 431, ,666 Netchangeinfundbalances (1,217,272) (1,217,272) (530,038) 687,234 Fundbalances beginningofyear 700, , ,467 8,822 Fundbalances endofyear $ (517,272) $(285,627) $410,429 $696,056 NotestoBudgetaryComparisonSchedule: The preparation, adoption, and amendment of the budgets are governed by Florida Statutes. The fund is the legal level of control. Budgets are prepared and adopted on a basis that does not differ materially from generallyacceptedaccountingprinciples(gaap).appropriationslapseatyearend. 37

53 LevyCounty,Florida ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActual EMSFund YearendedSeptember30,2017 Variance BudgetedAmounts Actual withfinal Original Final Amounts Budget Revenues Permits,feesandspecialassessments $2,794,858 $2,794,858 $ 2,759,784 $(35,074) Intergovernmentalrevenue 7,455 7,455 4,707 (2,748) Chargesforservices 2,208,500 2,208,500 2,309, ,411 Miscellaneous 6,800 6,800 2,420 (4,380) Totalrevenues 5,017,613 5,017,613 5,076,822 59,209 Expenditures Current: Publicsafety 5,466,732 5,468,923 4,780, ,801 ReserveforContingencies 580, , ,000 Totalexpenditures 6,046,732 6,048,923 4,780,122 1,268,801 Excessofrevenuesover(under) expenditures (1,029,119) (1,031,310) 296,700 1,328,010 Fundbalances beginningofyear 1,280,000 1,282,191 1,513, ,649 Fundbalances endofyear $250,881 $250,881 $1,810,540 $1,559,659 NotestoBudgetaryComparisonSchedule: Thepreparation,adoption,andamendmentofthebudgetsaregovernedbyFloridaStatutes.Thefundisthe legallevelofcontrol.budgetsarepreparedandadoptedonabasisthatdoesnotdiffermateriallyfromgenerally acceptedaccountingprinciples(gaap).appropriationslapseatyearend. 38

54 LevyCounty,Florida RequiredSupplementaryInformation OtherPostemploymentBenefits BoardofCountyCommissioners Plan ScheduleofFundingProgress Actuarial Actuarial UAALas% Actuarial Valueof Accrued Unfunded Funded Covered ofcovered Valuation Assets Liability(AAL) AAL(UAAL) Ratio Payroll Payroll Date (A) (B) (BA) (A/B) (C) (BA)/C 10/1/2015 $ $ 1,039,000 $1,039,000 $9,852, % 10/1/2014 2,183,000 2,183,000 9,069, % 10/1/2012 1,959,000 1,959,000 8,425, % Notes: 1. SeeNote11tothefinancialstatementsfordetailedinformationontheBoard sopebplan. 39

55 LevyCounty,Florida RequiredSupplementaryInformation OtherPostemploymentBenefits Sheriff sofficeplan ScheduleofFundingProgress Actuarial UAALasa Actuarial Accrued Percentof Actuarial Valueof Liability(AAL) Unfunded Funded Covered Covered Valuation PlanAssets UnitCost AAL(UAAL) Ratio Payroll Payroll Date (A) (B) (BA) (A/B) (C) (BA)/C 10/1/2014 $ $372,000 $372,000 0% $4,856, % 10/1/ , ,000 0% 5,600, % 10/1/ , ,000 0% 6,000, % Notes: 1. SeeNote11tothefinancialstatementsfordetailedinformationontheSheriff sopebplan. 40

56 LevyCounty,Florida SchedulesofProportionateShareofNetPensionLiability Last10FiscalYears(1) FloridaRetirementSystem Employer'sproportionofthenetpension liability(asset) % % % Employer'sproportionateshareofthenet pensionliability(asset) $25,149,353 $ 21,932,641 $10,394,670 Employer'scoveredemployeepayroll(2) $17,122,760 $ 15,988,347 $14,944,195 Employer'sproportionateshareofthenet pensionliability(asset)asapercentage ofitscoveredemployeepayroll % % 69.56% Planfiduciarynetpositionasapercentage ofthetotalpensionliability 83.89% 84.88% 92.00% HealthInsuranceSubsidyProgram Employer'sproportionofthenetpension liability(asset) % % % Employer'sproportionateshareofthenet pensionliability(asset) $5,780,508 $6,344,269 $5,384,379 Employer'scoveredemployeepayroll(2) $17,122,760 $ 15,988,347 $14,944,195 Employer'sproportionateshareofthenet pensionliability(asset)asapercentage ofitscoveredemployeepayroll 33.76% 39.68% 36.03% Planfiduciarynetpositionasapercentage ofthetotalpensionliability 1.64% 0.97% 0.50% Notestoschedules: (1) The amounts presented for each fiscal year were determined as of the measurement date, which was June 30th ofthecurrentfiscalyear. (2) Coveredemployee payroll includes defined benefit plan actives, investment plan members, and members in DROP. GASB Statement No. 68 was implemented in Until a full 10year trend is compiled, information for those yearsforwhichitisavailablewillbepresented. 41

57 LevyCounty,Florida SchedulesofEmployerContributions Last10FiscalYears FloridaRetirementSystem Contractuallyrequiredcontribution $2,250,503 $2,198,265 $1,942,425 Contributionsinrelationtothe contractuallyrequiredcontribution 2,250,503 2,198,265 1,942,425 Contributiondeficiency(excess) $ $ $ Employer'scoveredemployeepayroll(1) $17,538,694 $15,871,603 $14,670,717 Contributionsasapercentageof coveredemployeepayroll 12.83% 13.85% 13.24% HealthInsuranceSubsidyProgram Contractuallyrequiredcontribution $ 289,926 $280,878 $216,360 Contributionsinrelationtothe contractuallyrequiredcontribution 289, , ,360 Contributiondeficiency(excess) $ $ $ Employer'scoveredemployeepayroll(1) $17,538,694 $15,871,603 $14,670,717 Contributionsasapercentageof coveredemployeepayroll 1.65% 1.77% 1.47% Notestoschedules: (1)Coveredemployeepayrollincludesdefinedbenefitplanactives,investmentplanmembers,andmembersin DROP. GASB Statement No. 68 was implemented in Until a full 10year trend is compiled, information for those years for whichitisavailablewillbepresented. 42

58 SupplementaryInformation

59 LevyCounty,Florida CombiningBalanceSheet NonmajorGovernmentalFunds September30,2017 (continued) SpecialRevenueFunds Inter Govern mental Drug Communi Court Task Fire E911 cations Facilities Force MSTU Control SHIP Assets Cashandequivalents $ $ $ $88,572 $ $8,566 $450,692 Pooledcashandequivalents 132,350 21, , , ,955 Duefromotherfunds 2,105 7,356 1,310 Duefromothergovernments 14, ,429 22,945 Receivables Totalassets $ 146,425 $23,623 $760,715 $90,463 $567,300 $1,022,466 $450,692 Liabilities Accountspayableand accruedliabilities Duetootherfunds Deposits Unearnedrevenue Totalliabilities $ $17,979 $3,298 17,979 3,298 $ $ 342,232 $179 11, , Deferredinflows Unavailablerevenue 3 Fundbalances Restricted 146,425 5, ,417 90, , ,513 Assigned 668,278 Unassigned Totalfundbalances 146,425 5, ,417 90, , , ,513 Totalliabilities,deferredinflows andfundbalances $ 146,425 $23,623 $760,715 $90,463 $567,300 $1,022,466 $450,692 43

60 LevyCounty,Florida CombiningBalanceSheet NonmajorGovernmentalFunds September30,2017 (continued) SpecialRevenueFunds Technology and Tourist Additional Public Crime Judicial Develop Court Trans Prevention Utilities Grant ment Costs portation Assets Cashandequivalents $ $ $ $ $ $287 Pooledcashandequivalents 36,464 86,690 1,332, ,403 92, ,874 Duefromotherfunds 5 2,066 Duefromothergovernments 3,465 13, ,899 Receivables 8,218 7,024 Totalassets $39,934 $94,908 $1,332,772 $182,011 $94,451 $328,084 Liabilities Accountspayableand accruedliabilities $10,366 $10,497 Duetootherfunds 1,332 Deposits 8,500 Unearnedrevenue 2,301 Totalliabilities 10,366 22,630 $ $16,248 $4,180 $ 18, ,130 16,321 4,180 43,907 Deferredinflows Unavailablerevenue 72,363 Fundbalances Restricted 29,568 1,332, ,690 90,271 Assigned 72, ,814 Unassigned Totalfundbalances 29,568 72,278 1,332, ,690 90, ,814 Totalliabilities,deferredinflows andfundbalances $39,934 $94,908 $1,332,772 $182,011 $94,451 $328,084 44

61 LevyCounty,Florida CombiningBalanceSheet NonmajorGovernmentalFunds September30,2017 (continued) SpecialRevenueFunds Road EMS Parks Public Impact Impact Impact Records Fee Fee Fee Mosquito Grants Moderization Fund Fund Fund Fund Fund TrustFund Assets Cashandequivalents $ $ $ $ $ $585,770 Pooledcashandequivalents 1,116,727 22, ,023 42,453 Duefromotherfunds 15,765 Duefromothergovernments ,926 4,468 Receivables Totalassets $1,116,727 $22,625 $184,023 $42,453 $60,926 $606,003 Liabilities Accountspayableand accruedliabilities $ 32,814 Duetootherfunds Deposits Unearnedrevenue Totalliabilities 32,814 $ $ $ 5,591 $ $8,571 3,656 60,926 9,247 60,926 8,571 Deferredinflows Unavailablerevenue 60,926 Fundbalances Restricted 1,083,913 22, ,023 33, ,432 Assigned Unassigned (60,926) Totalfundbalances 1,083,913 22, ,023 33,206 (60,926) 597,432 Totalliabilities,deferredinflows andfundbalances $1,116,727 $22,625 $184,023 $42,453 $60,926 $606,003 45

62 LevyCounty,Florida CombiningBalanceSheet NonmajorGovernmentalFunds September30,2017 (concluded) SpecialRevenueFunds Capital Projects Fund Clerk's Sheriff Special Fineand Sheriff Federal Sheriff Capital Forfeiture Inmate Forfeit Donations Improve TitleIVD Fund Welfare ures Fund ments Totals Assets Cashandequivalents $112,258 $151,674 $33,758 $49,874 $76,108 $ $ 1,557,559 Pooledcashandequivalents 383,895 6,068,156 Duefromotherfunds 11,063 15,514 55,184 Duefromothergovernments 10,548 60, ,077 Receivables 5,565 20,807 Totalassets $133,869 $228,113 $39,323 $49,874 $76,108 $383,895 $ 8,077,783 Liabilities Accountspayableand accruedliabilities $933 $189,921 $2,040 Duetootherfunds 14,977 15, Deposits 16,920 Unearnedrevenue Totalliabilities 15, ,555 2,460 $ $ $ $663, ,181 25,420 2, ,528 Deferredinflows Unavailablerevenue 133,292 Fundbalances Restricted 117,959 5,558 49,874 76,108 5,806,761 Assigned 36, ,895 1,373,128 Unassigned (60,926) Totalfundbalances 117,959 5,558 36,863 49,874 76, ,895 7,118,963 Totalliabilities,deferredinflows andfundbalances $133,869 $228,113 $39,323 $49,874 $76,108 $383,895 $ 8,077,783 46

63 LevyCounty,Florida CombiningStatementofRevenues,ExpendituresandChangesinFundBalances NonmajorGovernmentalFunds YearendedSeptember30,2017 (continued) SpecialRevenueFunds Inter Govern mental Drug E911 Communi cations Court Facilities Task Force MSTU Fire Control SHIP Revenues Taxes $ $ $ $ $ $ $ Permits,feesandspecialassessments 300,554 $1,781,851 Intergovernmentalrevenue 257,345 25, ,000 Chargesforservices 91,048 40,296 Finesandforfeitures 26,834 23,888 Miscellaneousrevenue 1, , Totalrevenues 258,596 26,840 91,443 23, ,554 1,808, ,576 Expenditures Current: Generalgovernment Publicsafety 63,913 36,613 12,982 1,967,619 Physicalenvironment Transportation 208,972 Economicenvironment 229,996 Humanservices Cultureandrecreation Courtcosts 27,170 Capitaloutlay Totalexpenditures 63,913 36,613 27,170 12, ,972 1,967, ,996 Excessofrevenuesover (under)expenditures 194,683 (9,773) 64,273 10,948 91,582 (159,020) 160,580 Otherfinancingsources(uses) Transfersin Transfersout (162,766) 181,850 Totalotherfinancingsources(uses) (162,766) 181,850 Netchangeinfundbalances 31,917 (9,773) 64,273 10,948 91,582 22, ,580 Fundbalances beginningofyear 114,508 15, ,144 79, , , ,933 Fundbalances endofyear $146,425 $5,644 $757,417 $90,463 $567,300 $668,278 $450,

64 LevyCounty,Florida CombiningStatementofRevenues,ExpendituresandChangesinFundBalances NonmajorGovernmentalFunds YearendedSeptember30,2017 (continued) SpecialRevenueFunds Technology Additional andcrime Judicial Tourist Court Public Prevention Utilities Grant Development Costs Transportation Revenues Taxes $ $ $ $212,390 $ $ Permits,feesandspecialassessments Intergovernmentalrevenue 64, ,741 Chargesforservices 56,784 63,649 29, ,419 Finesandforfeitures Miscellaneousrevenue 17 3, , ,412 Totalrevenues 56, , ,997 29,226 1,112,572 Expenditures Current: Generalgovernment Publicsafety Physicalenvironment 209,091 Transportation Economicenvironment Humanservices Cultureandrecreation Courtcosts 37,283 Capitaloutlay 1,004, ,597 22,839 Totalexpenditures 37, , ,597 22,839 1,004,447 Excessofrevenuesover (under)expenditures 19,518 (77,599) 724 (4,600) 6, ,125 Otherfinancingsources(uses) Transfersin Transfersout 100,000 Totalotherfinancingsources(uses) 100,000 Netchangeinfundbalances 19,518 22, (4,600) 6, ,125 Fundbalances beginningofyear 10,050 49,877 1,332, ,290 83, ,689 Fundbalances endofyear $29,568 $72,278 $1,332,772 $165,690 $90,271 $211,814 48

65 LevyCounty,Florida CombiningStatementofRevenues,ExpendituresandChangesinFundBalances NonmajorGovernmentalFunds YearendedSeptember30,2017 (continued) SpecialRevenueFunds Public Road EMS Parks Records Impact Impact Impact Modernization Fee Fee Fee Mosquito Grants Trust Fund Fund Fund Fund Fund Fund Revenues Taxes $ $ $ $ $ $ Permits,feesandspecialassessments 224,190 8,912 23,883 Intergovernmentalrevenue 31,540 Chargesforservices 73,105 Finesandforfeitures 18,279 Miscellaneousrevenue Totalrevenues 224,817 8,922 23,980 31,558 91,713 Expenditures Current: Generalgovernment Publicsafety Physicalenvironment Transportation 422,911 Economicenvironment Humanservices Cultureandrecreation Courtcosts Capitaloutlay Totalexpenditures 422,911 14,817 60,926 33,000 9,568 37,700 9,568 33,000 60,926 52,517 Excessofrevenuesover (under)expenditures (198,094) 8,922 14,412 (1,442) (60,926) 39,196 Otherfinancingsources(uses) Transfersin Transfersout Totalotherfinancingsources(uses) Netchangeinfundbalances (198,094) 8,922 14,412 (1,442) (60,926) 39,196 Fundbalances beginningofyear 1,282,007 13, ,611 34, ,236 Fundbalances endofyear $1,083,913 $22,625 $184,023 $ 33,206 $ (60,926) $597,432 49

66 LevyCounty,Florida CombiningStatementofRevenues,ExpendituresandChangesinFundBalances NonmajorGovernmentalFunds YearendedSeptember30,2017 (concluded) SpecialRevenueFunds Capital Projects Fund Clerk's Sheriff Sheriff Special Fineand Inmate Federal Sheriff Capital Forfeiture Welfare Forfeit Donations Improve TitleIVD Fund Fund ures Fund ments Totals Revenues Taxes $ $ $ $ $ $ $212,390 Permits,feesandspecialassessments 2,339,390 Intergovernmentalrevenue 99, ,453 2,121,684 Chargesforservices 434,019 84,583 1,038,079 Finesandforfeitures 104,946 27, ,418 Miscellaneousrevenue 5, , ,534 Totalrevenues 99, ,523 84,721 28,074 71, ,066,495 Expenditures Current: Generalgovernment Publicsafety 80,603 13,287 Physicalenvironment Transportation Economicenvironment Humanservices Cultureandrecreation Courtcosts 55, ,553 Capitaloutlay 14,817 2,235, ,091 1,636, ,593 33,000 9,568 1,115,595 8,143 8,143 Totalexpenditures 55, ,553 80,603 13,287 8,143 5,729,080 Excessofrevenuesover (under)expenditures 44,119 2,970 4,118 14,787 71,494 (7,969) 337,415 Otherfinancingsources(uses) Transfersin Transfersout 83, ,896 (162,766) Totalotherfinancingsources(uses) 83, ,130 Netchangeinfundbalances 44,119 2,970 4,118 14,787 71,494 75, ,545 Fundbalances beginningofyear 73,840 2,588 32,745 35,087 4, ,818 6,579,418 Fundbalances endofyear $117,959 $5,558 $36,863 $49,874 $76,108 $383,895 $7,118,963 50

67 LevyCounty,Florida CombiningStatementofFiduciaryNetPosition AgencyFunds September30,2017 Clerk ofthe Circuit Tax Court Sheriff Collector Totals Assets Cashandequivalents $256,898 $26,573 $1,894,636 $2,178,107 Receivables 24,834 10,790 35,624 Totalassets 281,732 26,573 1,905,426 2,213,731 Liabilities Assetsheldforothers 281,732 26,573 1,905,426 2,213,731 Netposition $ $ $ $ 51

68 Levy County, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance Year ended September 30, 2017 Federal Grantor/ Contract/ Amounts Pass Through Agency/ CFDA Grant Expendi- Program Provided to Program Title Number Number tures Totals Subrecipients Department of Agriculture and Consumer Services Passed Through State Forestry Service: Volunteer Fire Assistance - Morriston $ 14,818 $ - United States Department of Interior Payments in Lieu of Taxes ,098 - National Wildlife Refuge Fund ,218 - Department of Justice Direct: Equitable Sharing Proceeds ,287 - Passed Through Office of the Attorney General: VOCA V ,946 - Department of Transportation Passed Through State Department of Transportation: (Section 5311) - Formula Grants for Other than Urbanized Areas G0J45 146,409 (Section 5311) - Formula Grants for Other than Urbanized Areas G , ,748 - Department of State Passed Through Department of State: Help America Vote Act MOA LEV 6,372 - Department of Health and Human Services Passed Through Department of Revenue: Child Support Enforcement Title IV - D COC38 68,341 - Department of Homeland Security Assistance to Firefighters EMW-2014-FO ,265 - Passed Through Department of Economic Opportunity: Emergency Management Performance Grant FG-P ,975 Emergency Management Performance Grant FG-7A ,962 59,937 - Passed Through Executive Office of the Governor: Disaster Assistance Projects PA-WI ,790 - Total expenditures of federal awards $ 854,820 $ - (Continued) -52-

69 LevyCounty,Florida ScheduleofExpendituresofFederalAwardsandStateFinancialAssistance YearendedSeptember30,2017 Contract/ Amounts CSFA Grant Expendi Project Providedto StateAgency/ProjectTitle Number Number tures Totals Subrecipients ExecutiveOfficeoftheGovernor EmergencyManagementPrograms BG $76,859 EmergencyManagementPrograms BGW ,304 $ 109,163 DepartmentofEnvironmentalProtection SmallCountyConsolidatedGrants SC721 90,909 DepartmentofAgricultureandConsumerServices BureauofEntomologyandPestControl MosquitoControlStateAid LEVY 33,002 DepartmentofState,SecretaryofState StateAidtoLibraries ST52 2,500 StateAidtoLibraries ST52 30,935 StateAidtoLibraries ST52 46,479 79,914 FloridaHousingFinanceCorporation StateHousingInitiativesPartnershipProgram ,795 StateHousingInitiativesPartnershipProgram ,520 StateHousingInitiativesPartnershipProgram , ,998 DepartmentofTransportation CommissionfortheTransportationDisadvantaged(CTD) Trip/EquipmentGrant G0B75 345,302 Trip/EquipmentGrant G0M58 87,214 ShirleyConroy G0G12 81, ,191 SmallCountyOutlayProgram AR ,240 SmallCountyOutlayProgram G0A26 5, ,733 DepartmentofHealth EmergencyMedicalServicesCountyGrant C5038 6,872 DepartmentofManagementServices Enhanced911EmergencyTelephoneSystem ,482 Enhanced911EmergencyTelephoneSystem ,660 35,142 $ Totalexpendituresofstatefinancialassistance $ 2,093,924 $ (Continued) 53

70 LevyCounty,Florida NotestoScheduleofExpendituresofFederalAwards andstatefinancialassistance NOTE1 BASISOFPRESENTATION TheaccompanyingScheduleofExpendituresofFederalawardsandStateFinancialAssistanceincludes thefederalandstateawardactivityofthecountyunderprogramsofthefederalandstategovernment for the year ended September 30, The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter10.550,RulesoftheAuditorGeneral.Becausethisschedulepresentsonlyaselectedportionof theoperationofthecounty,itisnotintendedtoanddoesnotpresentthefinancialposition,changesin netpositionorcashflowofthecounty. NOTE2 USEOFESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requiresmanagementtomakevariousestimates.actualresultscoulddifferfromthoseestimates. NOTE3 SUBRECIPIENTS TheCountydidnotprovidefederalorstateawardstosubrecipients. NOTE4 INDIRECTCOSTRATE The County has not elected to use the 10percent de minimis indirect cost rate allowed under the UniformGuidance. NOTE5 LOANANDLOANGUARANTEEPROGRAMS TheCountydoesnotparticipateinanyloanorloanguaranteeprograms. NOTE6 FEDERALLYFUNDEDINSURANCE TheCountydoesnotreceiveanyfederallyfundedinsurance. NOTE7 NONCASHASSISTANCE The County did not receive or provide any noncash assistance related to Federal or State programs/projects. 54

71 AdditionalElementsRequiredbythe RulesoftheAuditorGeneral

72 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida MANAGEMENTLETTER TheHonorableCountyCommissioners LevyCounty,Florida WehaveauditedthefinancialstatementsofLevyCounty,Florida(the County ),asofandforthefiscal yearendedseptember30,2017,andhaveissuedourreportthereondatedaugust1,2018. WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStates ofamerica;thestandardsapplicabletofinancialauditscontainedingovernmentauditingstandards, issuedbythecomptrollergeneraloftheunitedstates;andauditrequirementsoftitle2u.s.codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Additionally, our audit was conducted in accordance with the provisions of Chapter10.550, Rules of the Auditor General, which govern the conductoflocalgovernmentalentityauditsperformedinthestateoffloridaandrequirethatcertain itemsbeaddressedinthisletter. PriorAuditFindings TheRulesoftheAuditorGeneralrequirethatwecommentastowhetherornotcorrectiveactionshave beentakentoaddressfindingsandrecommendationsmadeintheprecedingaudit.iftheauditfindings intheprecedingauditreportareuncorrected,wearerequiredtoidentifythosefindingsthatwerealso includedinthesecondprecedingauditreport.managementhascorrectedprioryearfindings. FinancialCondition As required by the Rules of the Auditor General, the scope of our audit included a review of the provisionsofsection ,floridastatutes, DeterminationofFinancialEmergency. Inconnection withouraudit,wedeterminedthatthecountyhasnotmetoneormoreoftheconditionsdescribedin Section (1),FloridaStatutes. Also, as required by the Rules of the Auditor General, we applied financial condition assessment procedures,asoftheendofthefiscalyear,pursuanttorule10.556(8).itismanagement sresponsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by management. The application of such procedures did not reveal evidence of deteriorating financial condition asthattermisdefinedinrule (352) (352) (fax) 55

73 ThefollowingtabulationrepresentstheCounty sexpenditures. Expenditure/Expense 2017 %oftotalexpenditures Category Amount Generalgovernment $7,651, % 17.4% 17.4% Publicsafety 20,182, % 46.8% 43.6% Physicalenvironment 746, % 7.5% 7.5% Transportation 7,643, % 14.1% 14.1% Economicenvironment 724, % 1.8% 1.9% Humanservices 2,010, % 4.4% 4.2% Cultureandrecreation 683, % 1.8% 1.8% Courtrelated 1,579, % 3.9% 3.9% Capitaloutlay 8, % 0.0% 0.5% Debtservice 950, % 2.2% 1.6% Total $42,180,230 2% 18% 4% 2% 5% 1% ExpendituresbyFunction 2017 LevyCounty Generalgovernment 0% 2% 18% 48% Publicsafety Physicalenvironment Transportation Economicenvironment Humanservices Cultureandrecreation Courtrelated Capitaloutlay Debtservice 56

74 Additionally,thefollowinggraphrepresentsafiveyeartrendinfundbalancesoftheGeneralFund. 7,000,000 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 Totalfundbalanceincreasedapproximately30%inthelastyear.AsofSeptember30,2017,thetotal fundbalancewas$5,094,361forthegeneralfund. AnnualFinancialReport AsrequiredbytheRulesoftheAuditorGeneral,wedeterminedthattheannualfinancialreportforthe County for the fiscal year ended September30,2017, filed with the Department of Financial Services pursuanttosection218.32,floridastatutes,isinsubstantialagreementwiththeauditreportforthe fiscalyearendedseptember30,2017. OtherMatters Section10.554(1)(i)(2),RulesoftheAuditorGeneral,requiresthatweaddressinthemanagementletter any recommendations to improve financial management. We recommend that management of the County revise and adopt new procurement policies that will comply with the new Uniform Guidance requirementswhensuchrequirementsbecomeeffective. AsrequiredbytheRulesoftheAuditorGeneral,weperformedseparateauditsofeachoftheCounty s constitutionalofficers.thecommentsincludedinthoseseparatelyissuedreportsshouldbeconsidered inconjunctionwiththismanagementletter. This management letter is intended solely for the information and use of the County and its management,andtheauditorgeneralofthestateofflorida,andisnotintendedtobeandshouldnot beusedbyanyoneotherthanthesespecifiedparties. 57

75 We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extendedtousduringthecourseoftheaudit.pleaseletusknowifyouhaveanyquestionsorcomments concerningthisletter,ouraccompanyingreports,orothermatters. Gainesville,Florida ill id August1,

76 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida (352) (352) (fax) INDEPENDENTACCOUNTANT SREPORTONCOMPLIANCEWITHSECTION ,FLORIDASTATUTES TheHonorableCountyCommissioners LevyCounty,Florida WehaveexaminedLevyCounty,Florida s(the County )compliancewiththespecifiedrequirementsof Section ,FloridaStatutes,LocalGovernmentInvestmentPolicies,duringyearendedSeptember 30, Management of the County is responsible for the County s compliance with the specified requirements.ourresponsibilityistoexpressanopiniononthecounty scompliancewiththespecified requirementsbasedonourexamination. OurexaminationwasconductedinaccordancewithattestationstandardsestablishedbytheAmerican Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessmentoftherisksofmaterialnoncompliance,whetherduetofraudorerror.webelievethatthe evidenceweobtainedissufficientandappropriatetoprovideareasonablebasisforouropinion. Our examination does not provide a legal determination on the County s compliance with specified requirements. Inouropinion,theCountycomplied,inallmaterialrespects,withtheaforementionedrequirementsfor theyearendedseptember30,2017. This report is intended solely for the information and use of management and the State of Florida AuditorGeneralandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecified parties. Gainesville,Florida August1,

77 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida (352) (352) (fax) INDEPENDENTACCOUNTANT SREPORTONCOMPLIANCEWITHSECTIONS (10)AND (2)(d),FLORIDASTATUTES TheHonorableCountyCommissioners LevyCounty,Florida WehaveexaminedLevyCounty,Florida s(the County )compliancewiththespecifiedrequirementsof Section (10),FloridaStatutes,AuthorizedExpendituresofE911Fee,andSection (2)(d), Florida Statutes, Distribution and Use of (E911) Funds, during year ended September 30, ManagementofCountyisresponsiblefortheCounty scompliancewiththespecifiedrequirements.our responsibility is to express an opinion on the County s compliance with the specified requirements basedonourexamination. OurexaminationwasconductedinaccordancewithattestationstandardsestablishedbytheAmerican Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessmentoftherisksofmaterialnoncompliance,whetherduetofraudorerror.webelievethatthe evidenceweobtainedissufficientandappropriatetoprovideareasonablebasisforouropinion. Our examination does not provide a legal determination on the County s compliance with specified requirements. Inouropinion,theCountycomplied,inallmaterialrespects,withtheaforementionedrequirementsfor theyearendedseptember30,2017. This report is intended solely for the information and use of management and the State of Florida AuditorGeneralandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecified parties. Gainesville,Florida August1,

78 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida (352) (352) (fax) INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTSPERFORMEDIN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS TheHonorableCountyCommissioners LevyCounty,Florida Wehaveaudited,inaccordancewiththeauditingstandardsgenerallyacceptedintheUnitedStatesof AmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards issuedbythecomptrollergeneraloftheunitedstates,thefinancialstatementsofthegovernmental activities,thebusinesstypeactivities,eachmajorfundandtheaggregateremainingfundinformationof LevyCounty,Florida(the County ),asofandfortheyearendedseptember30,2017,andtherelated notestothefinancialstatements,whichcollectivelycomprisethecounty sbasicfinancialstatements andhaveissuedourreportthereondatedaugust1,2018. InternalControlOverFinancialReporting Inplanningandperformingourauditofthefinancialstatements,weconsideredtheCounty sinternal control over financial reporting (internal control) to determine the audit procedures that are appropriateinthecircumstancesforthepurposeofexpressingouropinionsonthefinancialstatements, butnotforthepurposeofexpressinganopinionontheeffectivenessofthecounty sinternalcontrol. Accordingly,wedonotexpressanopinionontheeffectivenessoftheCounty'sinternalcontrol. A deficiency in internal control exists when the design or operation of a control does not allow managementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combinationofdeficiencies,ininternalcontrolsuchthatthereisareasonablepossibilitythatamaterial misstatementoftheentity sfinancialstatementswillnotbeprevented,ordetectedandcorrectedona timelybasis.asignificantdeficiencyisadeficiency,oracombinationofdeficiencies,ininternalcontrol thatislessseverethanamaterialweakness,yetimportantenoughtomeritattentionbythosecharged withgovernance. Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthis section and was not designed to identify all deficiencies in internal control that might be material weaknessesorsignificantdeficienciesandtherefore,materialweaknessesorsignificantdeficienciesmay exist that were not identified. We did identify a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item that we consider to be a materialweakness. 61

79 ComplianceandOtherMatters As part of obtaining reasonable assurance about whether the County s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and materialeffectonthedeterminationoffinancialstatementamounts.however,providinganopinionon compliancewiththoseprovisionswasnotanobjectiveofouraudit,andaccordingly,wedonotexpress suchanopinion.theresultsofourtestsdisclosednoinstancesofnoncomplianceorothermattersthat arerequiredtobereportedundergovernmentauditingstandards. County sresponsetofinding TheCounty sresponsetothefindingidentifiedinourauditisdescribedinitsaccompanyingletterof response.thecounty sresponsewasnotsubjectedtoauditingproceduresappliedintheauditofthe financialstatementsand,accordingly,weexpressnoopiniononit. PurposeofthisReport The purpose of this report is solely to describe the scope of our testing of internal control and complianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessofthe County s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance.accordingly,thiscommunicationisnotsuitableforanyotherpurpose. Gainesville,Florida August1,

80 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida (352) (352) (fax) INDEPENDENT AUDITOR S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCEANDCHAPTER10.550,RULESOFTHEAUDITORGENERAL TheHonorableCountyCommissioners LevyCounty,Florida ReportonComplianceforEachMajorFederalProgramandStateProject WehaveauditedthecomplianceofLevyCounty,Florida(the County )withthetypesofcompliance requirements described in the OMB Compliance Supplement and the requirements described in the DepartmentofFinancialServices StateProjectsComplianceSupplementthatcouldhaveadirectand materialeffectonthecounty smajorfederalprogramandeachofitsmajorstateprojectsfortheyear endedseptember30,2017.thecounty smajorfederalprogramandstateprojectsareidentifiedinthe summaryofauditor sresultssectionoftheaccompanyingscheduleoffindingsandquestionedcosts. Management sresponsibility Management is responsible for compliance with the federal and state statutes, regulations, and the terms and conditions of its federal and state awards applicable to its federal programs and state projects. Auditor sresponsibility OurresponsibilityistoexpressanopiniononcompliancefortheCounty smajorfederalprogramand eachofitsmajorstateprojectsbasedonourauditofthetypesofcompliancerequirementsreferredto above.weconductedourauditofcomplianceinaccordancewithauditingstandardsgenerallyaccepted intheunitedstatesofamerica;thestandardsapplicabletofinancialauditscontainedingovernment AuditingStandards,issuedbytheComptrollerGeneraloftheUnitedStates;theauditrequirementsof Title2U.SCodeofFederalRegulationsPart200,UniformAdministrativeRequirements,CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter , Rules of the Auditor General. Those standards, the Uniform Guidance and Chapter , Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliancewiththetypesofcompliancerequirementsreferredtoabovethatcouldhaveadirect andmaterialeffectonamajorfederalprogramorstateprojectoccurred.anauditincludesexamining, onatestbasis,evidenceaboutthecounty scompliancewiththoserequirementsandperformingsuch otherproceduresasweconsiderednecessaryinthecircumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program and each major state project. However, our audit does not provide a legal determinationofthecounty scompliance. OpiniononEachMajorFederalProgramandStateProject Inouropinion,theCountycomplied,inallmaterialrespects,withthetypesofcompliancerequirements referredtoabovethatcouldhaveadirectandmaterialeffectonitsmajorfederalprogramandeachof itsmajorstateprojectsfortheyearendedseptember30,

81 ReportonInternalControlOverCompliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performingourauditofcompliance,weconsideredthecounty sinternalcontrolovercompliancewith thetypesofrequirementsthatcouldhaveadirectandmaterialeffectonthemajorfederalprogramand eachmajorstateprojecttodeterminetheauditingproceduresthatareappropriateinthecircumstances forthepurposeofexpressinganopiniononcomplianceforthemajorfederalprogramandeachmajor stateprojectandtotestandreportoninternalcontrolovercomplianceinaccordancewiththeuniform GuidanceandChapter10.550,RulesoftheAuditorGeneral,butnotforthepurposeofexpressingan opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinionontheeffectivenessofthecounty sinternalcontrolovercompliance. Adeficiencyininternalcontrolovercomplianceexistswhenthedesignoroperationofacontrolover compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliancerequirementofafederalprogramorstateprojectwillnotbeprevented,ordetectedand corrected,onatimelybasis.asignificantdeficiencyininternalcontrolovercomplianceisadeficiency,or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Ourconsiderationofinternalcontrolovercompliancewasforthelimitedpurposedescribedinthefirst paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficienciesininternalcontrolovercompliancethatweconsidertobematerialweaknesses.however, materialweaknessesmayexitthathavenotbeenidentified. The purpose ofthisreportoninternalcontrolovercompliance issolelytodescribe thescopeofour testingofinternalcontrolovercomplianceandtheresultsofthattestingbasedontherequirementsof theuniformguidanceandchapter10.550,rulesoftheauditorgeneral.accordingly,thisreportisnot suitableforanyotherpurpose. Gainesville,Florida August1,

82 LevyCounty,Florida ScheduleofFindingsandQuestionedCosts SECTIONI SUMMARYOFAUDITOR SRESULTS (i) Theindependentauditor sreportonthefinancialstatementsexpressedunmodifiedopinions. (ii) Theauditdisclosedadeficiencyininternalcontroloverfinancialreportingthatwasconsidered tobeamaterialweakness. (iii) (iv) (v) (vi) (vii) (viii) (ix) Theauditdidnotdisclosenoncomplianceconsideredmaterialtothefinancialstatements. Theauditdidnotreportsignificantdeficienciesormaterialweaknessesininternalcontrolover themajorfederalprogramormajorstateprojects. Thereportoncompliancewithrequirementsapplicabletothemajorfederalprogramandeach majorstateprojectexpressedanunmodifiedopinion. Theauditdisclosednofindingsrelativetothemajorfederalprogramormajorstateprojects. TheCounty smajorprogram/projectswere: FEDERALPROGRAM FormulaGrantsforRuralAreas STATEPROJECTS EmergencyManagementPrograms(EMPA) SmallCommunityOutreachProgram(SCOP) CFDANumber CSFANumber A threshold of $750,000 was used to distinguish between Type A and Type B programs for federalprograms,and$300,000wasusedforstateprojects. TheCountydidnotqualifyasalowriskauditeeasthattermisdefinedinTitle2U.S.Codeof FederalRegulationsPart200,UniformAdministrativeRequirements,CostPrinciples,andAudit RequirementsforFederalAwards(UniformGuidance). 65

83 SECTIONII FINANCIALSTATEMENTFINDINGS LevyCounty,Florida ScheduleofFindingsandQuestionedCosts Criteria:Theinternalcontrolenvironmentshouldincludeappropriatesegregationof dutiesalongwithpoliciesandprocedurestopreventanddetecterrorstothe accountingrecordsandameanstocorrecttheminatimelymanner. Condition:There were insufficient internal controls over the billing and receipting processesanddecentralizedcollectionsystemsinthewaterutility,buildingpermitand Transit departments, generally with one individual performing all aspects of certain transactions.thereweremultipleoccasionsinthebuildingpermitdepartmentwhen thestandardreviewprocesseswerenotperformedforreceipting. Cause:The County has a limited number of personnel in the decentralized cash receiptingandbillingareas. Effect: Riskofmisappropriationofassetsormisstatementoffinancialinformationis elevated. Recommendation: We recommend that whenever possible, duties should be segregatedsothatcollectionsandbillingsperformedbyoneindividualarereviewedby another individual separate from that function, with that review being documented. Cash collections and billing processes should be documented with formal procedures and those procedures should be followed consistently. The systems used for decentralizedbillingandcollectionsshouldbeassessedforsecurityandconsistency. SECTIONIII FINDINGSANDQUESTIONEDCOSTS FEDERALPROGRAMS Therewerenofindingsrelativetofederalprograms. SECTIONIV FINDINGSANDQUESTIONEDCOSTS STATEPROJECTS Therewerenofindingsrelativetostateprojects. 66

84 LevyCounty,Florida SummaryScheduleofPriorAuditFindings (RelativetoFederalAwardsandStateProjects) Therearenounresolvedpriorauditfindingsrelativetofederalawardsandstateprojects. 67

85

86 Levy County Clerk of the Circuit Court Audit Report September 30, 2017

87 Levy County Clerk of the Circuit Court Table of Contents September 30, 2017 REPORT Independent Auditor's Report 1 SPECIAL PURPOSE FINANCIAL STATEMENTS Governmental Funds: Balance Sheet 4 Statement of Revenues, Expenditures and Changes in Fund Balances 5 Fiduciary Funds: Statement of Fiduciary Net Position 6 Notes to Financial Statements 7 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund 12 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Fine and Forfeiture Fund 13 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Records Modernization Trust Fund 14 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Title IV D Fund 15 SUPPLEMENTARY INFORMATION Combining Statement of Fiduciary Net Position Agency Funds 16 ADDITIONAL ELEMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL Management Letter 17 Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 18 Independent Accountant s Report on Compliance with Section , Florida Statutes 20 Independent Accountant s Report on Compliance with Sections and 28.36, Florida Statutes 21

88 Levy County Clerk of the Circuit Court Table of Contents September 30, 2017 Independent Accountant s Report on Compliance with Section , Florida Statutes 22 Schedule of Findings 23 Elected Official's Response to Auditor's Comments

89 INDEPENDENT AUDITOR S REPORT The Honorable Danny J. Shipp Clerk of the Circuit Court Levy County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the office of the Levy County Clerk of the Circuit Court (the Office ) as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Office s special purpose financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1

90 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Office as of September 30, 2017, and the respective changes in financial position, where applicable, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter We draw attention to Note 1 to the financial statements, which describes that the accompanying financial statements were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are special purpose financial statements that do not constitute a complete presentation, but otherwise constitute financial statements prepared in accordance with generally accepted accounting principles. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the special purpose financial statements. Such information, although not a part of the special purpose financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the special purpose financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the special purpose financial statements, and other knowledge we obtained during our audit of the special purpose financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Office s special purpose financial statements. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the special purpose financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the special purpose financial statements. The information has been subjected to the auditing procedures applied in the audit of the special purpose financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the special purpose financial statements or to the special purpose financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the special purpose financial statements as a whole. 2

91 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 1, 2018, on our consideration of the Office 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 solely 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 effectiveness of the Office s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Office s internal control over financial reporting and compliance. Gainesville, Florida August 1,

92 Levy County Clerk of the Circuit Court Balance Sheet Governmental Funds September 30, 2017 Fine and Records Total General Forfeiture Modernization Title IV D Governmental Fund Fund Trust Fund Fund Funds Assets Cash and equivalents $ 94,630 $ 151,674 $ 585,770 $ 112,258 $ 944,332 Due from other funds 9,905 15,383 20,233 11,063 56,584 Due from other governments 60,513 10,548 71,061 Due from other county agencies Total assets $ 104,850 $ 228,113 $ 606,003 $ 133,869 $ 1,072,835 Liabilities and fund balances Liabilities: Accounts payable and accrued liabilities $ 25,135 $ 189,921 $ 8,571 $ 933 $ 224,560 Due to other funds 26, ,977 42,360 Due to other county agencies 52,914 15,132 68,046 Deposits 16,920 16,920 Total liabilities 104, ,555 8,571 15, ,886 Fund balances: Restricted 5, , , ,949 Total liabilities and fund balances $ 104,850 $ 228,113 $ 606,003 $ 133,869 $ 1,072,835 See accompanying notes. 4

93 Levy County Clerk of the Circuit Court Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year ended September 30, 2017 Fine and Records Total General Forfeiture Modernization Title IV D Governmental Fund Fund Trust Fund Fund Funds Revenues Intergovernmental revenues $ $ 394,453 $ $ 99,169 $ 493,622 Charges for services 198, ,019 73, ,047 Fines and forfeitures 104,946 18, ,225 Miscellaneous revenue 1,262 5, ,696 Total revenues 200, ,523 91,713 99,169 1,329,590 Expenditures Current: General government services 964,238 14, ,055 Court related 8, ,479 37,700 55, ,599 Total expenditures 972, ,479 52,517 55,050 1,977,654 Excess of revenues over (under) expenditures (772,423) 41,044 39,196 44,119 (648,064) Other financing sources (uses) Appropriation from board of county commissioners 825, ,260 Reversion to board of county commissioners (52,837) (52,837) Reversion to Florida Clerks of Court Operations Corporation (38,074) (38,074) Total other financing sources (uses) 772,423 (38,074) 734,349 Net change in fund balances 2,970 39,196 44,119 86,285 Fund balances October 1, , ,236 73, ,664 Fund balances September 30, 2017 $ $ 5,558 $ 597,432 $ 117,959 $ 720,949 See accompanying notes. 5

94 Levy County Clerk of the Circuit Court Statement of Fiduciary Net Position September 30, 2017 Agency Funds Assets Cash and equivalents $ 352,423 Accounts receivable 207 Due from other funds 100 Due from other county agencies 1,202 Total assets 353,932 Liabilities Assets held for others 336,143 Due to other funds 14,324 Due to other county agencies 3,465 Total liabilities 353,932 Net position $ See accompanying notes. 6

95 Levy County Clerk of the Circuit Court Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the office of the Levy County Clerk of the Circuit Court (the Office ) conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies. Reporting Entity The Clerk of the Circuit Court is an elected constitutional officer, whose office is established by Article VIII of the Constitution of the State of Florida and is governed by various provisions of state law. The Office is an integral part of Levy County, which is the primary government for financial reporting purposes. Basis of Presentation The Office s financial statements are special purpose financial statements that have been prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida (the Rules ). These special purpose financial statements are the fund financial statements required by generally accepted accounting principles. However, these fund financial statements do not constitute a complete presentation because, in conformity with the Rules, the Office has not presented reconciliations to the government wide financial statements, the government wide financial statements, or management s discussion and analysis. Also, certain notes to the financial statements may supplement rather than duplicate the notes included in the County s countywide financial statements. Fund Accounting Accounts are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to, and accounted for in, individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The focus of fund financial statements is on major funds, each displayed in a separate column. All nonmajor funds are aggregated and displayed in a single column. The Office reports the following major governmental funds: General Fund The General Fund is the primary operating fund. It is used to account for and report all financial resources not accounted for and reported in another fund. Fine and Forfeiture Fund This fund is used to account for fines, court costs, filing fees and service charges mandated by Florida Statutes for court related expenditures. Records Modernization Trust This fund is used to account for fees and fines collected and associated expenditures related to the upgrade and modernization of the official records of the County, for court technology improvements required for the State Court System, and other courtrelated purposes. Title IV D Fund This fund is used to account for certain eligible Title IV D expenditures and the related reimbursements from the State of Florida. 7

96 Levy County Clerk of the Circuit Court Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Office also reports the following funds: Agency Funds Agency Funds are used to account for resources held solely in a custodial capacity. Fund Balance The Office follows the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions to classify fund balances for governmental funds into specifically defined classifications. The classifications comprise a hierarchy based primarily on the extent to which the Office is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. The fund balance classifications specified in GASB Statement No. 54 are as follows: Nonspendable Fund Balance Nonspendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance Restricted fund balances are restricted when constraints placed on the use of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance Committed fund balances are amounts that can only be used for specific purposes as a result of constraints imposed by formal action of the Office s highest level of decision making authority, which is a policy of the Office. Committed amounts cannot be used for any other purpose unless the Office removes those constraints by taking the same type of action. Assigned Fund Balance Assigned fund balances are amounts that are constrained by the Office s intent to be used for specific purposes, but are neither restricted nor committed. Intent is expressed by (a) the constitutional officer or (b) a body or official to which the constitutional officer has delegated the authority to assign amounts to be used for specific purposes. Unassigned Fund Balance Unassigned fund balance is the residual classification for the General Fund. The Office s policy is to expend resources in the following order: restricted, committed, assigned, and unassigned. 8

97 Levy County Clerk of the Circuit Court Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus/Basis of Accounting All governmental funds are accounted for on a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Their operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets and, accordingly, are said to present a summary of sources and uses of "available spendable resources" during a period. Basis of accounting refers to when revenues and expenditures 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. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. However, principal and interest on long term debt are recognized when due. Agency fund assets and liabilities are accounted for on the accrual basis of accounting. Capital Assets and Long Term Liabilities Because of the current financial resources measurement focus, the accompanying fund financial statements do not report capital assets or long term liabilities. Such amounts are instead reported in the government wide financial statements of the County. Cash and Equivalents All cash and equivalents are placed in a bank that qualifies as a public depository pursuant to the provisions of the Florida Security For Public Deposits Act. Every qualified public depository is required by this law to deposit with the Chief Financial Officer eligible collateral equal to, or in excess of, an amount to be determined by the Chief Financial Officer. The Chief Financial Officer is required to ensure that all funds are entirely insured or collateralized throughout the fiscal year. 9

98 Levy County Clerk of the Circuit Court Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make various estimates. Actual results could differ from those estimates. NOTE 2 FUND BALANCE CLASSIFICATIONS Records Fine and Modernization Title IV D Forfeiture Fund Fund Fund Total Restricted for: Court operations $ 5,558 $ 50,899 $ $ 56,457 Court technology 416, ,835 Records modernization 129, ,698 Title IV D 117, ,959 Total fund balances $ 5,558 $ 597,432 $ 117,959 $ 720,949 NOTE 3 INTERFUND BALANCES At September 30, 2017, interfund balances consisted of: Due To Records General Fine and Modernization Title IV D Agency Due From Fund Forfeiture Fund Trust Fund Fund Registry Totals General fund $ $ $ 15,738 $ 11,063 $ $ 26,801 Fine and forfeiture fund Records modernization trust fund Title IV D fund 6 14,971 14,977 Agency funds: Cash bond Domestic relations General trust 9,446 4,466 13,912 Totals $ 9,905 $ 15,383 $ 20,233 $ 11,063 $ 100 $ 56,684 10

99 Levy County Clerk of the Circuit Court Notes to Financial Statements NOTE 4 RISK MANAGEMENT The Levy County Board of County Commissioners purchases commercial insurance to manage risk related to workers compensation and health insurance. The Office is covered under this policy and pays its share of premiums to the Board. 11

100 Required Supplementary Information

101 Levy County Clerk of the Circuit Court Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund Year ended September 30, 2017 Variance Budgeted Amounts With Final Original Final Actual Budget Revenues Charges for services $ 167,610 $ 167,610 $ 198,923 $ 31,313 Miscellaneous revenue 2,625 2,625 1,262 (1,363) Total revenues 170, , ,185 29,950 Expenditures Current: General government services 977, , ,238 13,545 Court related 9,200 9,200 8, Total expenditures 986, , ,608 14,375 Excess of revenues over (under) expenditures (816,748) (816,748) (772,423) 44,325 Other financing sources (uses) Appropriation from board of county commissioners 816, , ,260 8,512 Reversion to board of county commissioners (52,837) (52,837) Total other financing sources (uses) 816, , ,423 (44,325) Net change in fund balances Fund balances October 1, 2016 Fund balances September 30, 2017 $ $ $ $ Notes to Schedule: The budget is prepared on a basis that does not differ materially from generally accepted accounting principles. Its preparation, adoption, and amendment is governed by Florida Statutes. The fund is the legal level of control. 12

102 Levy County Clerk of the Circuit Court Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Fine and Forfeiture Fund Year ended September 30, 2017 Variance Budgeted Amounts With Final Original Final Actual Budget Revenues Intergovernmental revenues $ 431,420 $ 431,420 $ 394,453 $ (36,967) Charges for services 379, , ,019 54,060 Fines and forfeitures 118, , ,946 (13,058) Miscellaneous revenue 3,100 3,100 5,105 2,005 Total revenues 932, , ,523 6,040 Expenditures Current: Court related 932, , ,479 35,004 Excess of revenues over (under) expenditures 41,044 41,044 Other financing sources (uses) Reversion to Florida Clerks of Court Operations Corporation (38,074) (38,074) Net change in fund balances 2,970 2,970 Fund balances October 1, ,588 2,588 Fund balances September 30, 2017 $ $ $ 5,558 $ 5,558 Notes to Schedule: Pursuant to Section 28.36, Florida Statutes, the budget is subject to the General Appropriations Act of the Florida Legislature. The State of Florida releases this appropriation on a monthly basis. The budget is prepared on a basis that does not differ materially from generally accepted accounting principles. The fund is the legal level of control. 13

103 Levy County Clerk of the Circuit Court Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Records Modernization Trust Fund Year ended September 30, 2017 Variance Budgeted Amounts With Final Original Final Actual Budget Revenues Charges for services $ 58,950 $ 58,950 $ 73,105 $ 14,155 Fines and forfeitures 36,350 36,350 18,279 (18,071) Miscellaneous revenue (386) Total revenues 96,015 96,015 91,713 (4,302) Expenditures Current: General government services 127, ,780 14, ,963 Court related 523, ,235 37, ,535 Total expenditures 651, ,015 52, ,498 Excess of revenues over (under) expenditures (555,000) (555,000) 39, ,196 Fund balances October 1, , , ,236 3,236 Fund balances September 30, 2017 $ $ $ 597,432 $ 597,432 Notes to Schedule: The budget is prepared on a basis that does not differ materially from generally accepted accounting principles. Its preparation, adoption, and amendment is governed by Florida Statutes. The fund is the legal level of control. 14

104 Levy County Clerk of the Circuit Court Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Title IV D Fund Year ended September 30, 2017 Variance Budgeted Amounts With Final Original Final Actual Budget Revenues Intergovernmental revenues $ 24,000 $ 24,000 $ 99,169 $ 75,169 Expenditures Current: Court related 24,000 24,000 55,050 (31,050) Excess of revenues over (under) expenditures 44,119 44,119 Fund balances October 1, ,840 73,840 Fund balances September 30, 2017 $ $ $ 117,959 $ 117,959 Notes to Schedule: Pursuant to Section 28.36, Florida Statutes, the budget is subject to the General Appropriations Act of the Florida Legislature. The State of Florida releases this appropriation on a monthly basis. The budget is prepared on a basis that does not differ materially from generally accepted accounting principles. The fund is the legal level of control. 15

105 Supplementary Information

106 Levy County Clerk of the Circuit Court Combining Statement of Fiduciary Net Position Agency Funds September 30, 2017 Domestic Registry General Jury and Cash Total Relations of the Trust Witness Bond Agency Fund Court Fund Fund Fund Funds Assets Cash and equivalents $ 671 $ 118,469 $ 211,328 $ 5,819 $ 16,136 $ 352,423 Accounts receivable Due from other funds Due from other county agencies 1,202 1,202 Total assets , ,737 5,819 16, ,932 Liabilities Assets held for others , ,360 5,819 16, ,143 Due to other funds , ,324 Due to other county agencies 3,465 3,465 Total liabilities , ,737 5,819 16, ,932 Net position $ $ $ $ $ $ 16

107 Additional Elements Required by the Rules of the Auditor General

108 MANAGEMENT LETTER The Honorable Danny J. Shipp Clerk of the Circuit Court Levy County, Florida We have audited the financial statements of the office of the Levy County Clerk of the Circuit Court (the Office ), as of and for the year ended September 30, 2017, and have issued our report thereon dated August 1, That report should be considered in conjunction with this management letter. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Additionally, our audit was conducted in accordance with the provisions of Chapter , Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. Prior Audit Findings The Rules of the Auditor General require that we comment as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding audit. If the audit findings in the preceding audit are uncorrected, we are required to identify those findings that were also included in the second preceding audit report. These requirements of the Rules of the Auditor General are addressed in the schedule of findings that accompanies this letter. All prior year audit findings were corrected by management. Other Matters Our audit did not reveal any other matters that we are required to include in this management letter. The purpose of this management letter is solely to comply with the requirements of Chapter , Rules of the Auditor General. Accordingly, this communication is not suitable for any other purpose. We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extended to us during the course of the audit. Please let us know if you have any questions or comments concerning this letter, our accompanying reports, or other matters. Gainesville, Florida August 1,

109 INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Danny J. Shipp Clerk of the Circuit Court Levy County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the office of the Levy County Clerk of the Circuit Court (the Office ), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Office s special purpose financial statements, and have issued our report thereon dated August 1, Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Office s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Office s internal control. Accordingly, we do not express an opinion on the effectiveness of the Office s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 18

110 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Office s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings as item The Office s Response to Findings The Office s response to the finding identified in our audit is described in its accompanying letter of response. The Office s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Gainesville, Florida August 1,

111 INDEPENDENT ACCOUNTANT S REPORT ON COMPLIANCE WITH SECTION , FLORIDA STATUTES The Honorable Danny J. Shipp Clerk of the Circuit Court Levy County, Florida We have examined the office of the Levy County Clerk of the Circuit Court s (the Office ) compliance with the requirements of Section , Florida Statutes, Local Government Investment Policies, during the year ended September 30, Management is responsible for the Office s compliance with the specified requirements. Our responsibility is to express an opinion on the Office s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Office complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Office complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Office s compliance with the specified requirements. In our opinion, the Office complied, in all material respects, with the aforementioned requirements during the year ended September 30, This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. Gainesville, Florida August 1,

112 INDEPENDENT ACCOUNTANT S REPORT ON COMPLIANCE WITH SECTIONS AND 28.36, FLORIDA STATUTES The Honorable Danny J. Shipp Clerk of the Circuit Court Levy County, Florida We have examined the office of the Levy County Clerk of the Circuit Court s (the Office ) compliance with the requirements of Section 28.35, Florida Statutes, Florida Clerks of Court Operations Corporation, and Section 28.36, Florida Statutes, Budget Procedure, during the year ended September 30, Management is responsible for the Office s compliance with the specified requirements. Our responsibility is to express an opinion on the Office s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Office complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Office complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Office s compliance with the specified requirements. In our opinion, the Office complied, in all material respects, with the aforementioned requirements for the year ended September 30, The Office s response to the finding identified in our examination is described in its accompanying letter of response. The Office s response was not subjected to the examination procedures applied in the examination of the Office s compliance referred to in the first paragraph and, accordingly we express no opinion on it. This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. Gainesville, Florida August 1,

113 INDEPENDENT ACCOUNTANT S REPORT ON COMPLIANCE WITH SECTION , FLORIDA STATUTES The Honorable Danny J. Shipp Clerk of the Circuit Court Levy County, Florida We have examined the office of the Levy County Clerk of the Circuit Court s compliance with the requirements of Section , Florida Statutes, Depository for Alimony Transactions, Support, Maintenance, and Support Payments; Fees, during the year ended September 30, Management is responsible for the Office s compliance with the specified requirements. Our responsibility is to express an opinion on the Office s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Office complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Office complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Office s compliance with specified requirements. In our opinion, the Office complied, in all material respects, with the aforementioned requirements for the year ended September 30, This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. Gainesville, Florida August 1,

114 Levy County Clerk of the Circuit Court Schedule of Findings Criteria: Section , Florida Statutes, requires payments to be submitted to the Florida Department of Revenue by the 10 th of the month following collections. The CCOC requires quarterly reports to be submitted by the 20 th of the month following the end of the quarter. Conditions: The Office remitted funds to the Florida Department of Revenue after the required date on multiple occasions and submitted reports late to the CCOC. Cause of Condition: Limited number of staff in the Court and Finance departments. Potential Effect of Condition: Failure to comply with the requirements of Florida Statutes and the CCOC could impact future funding. Recommendation: We recommend that the Office prioritize and monitor timely remittance of funds and submittal of reports. 23

115

116 LevyCountySheriff AuditReport September30,2017

117 REPORT IndependentAuditor'sReport LevyCountySheriff TableofContents September30, SPECIALPURPOSEFINANCIALSTATEMENTS GovernmentalFunds: BalanceSheet Statement of Revenues, Expenditures and Changes in Fund Balances 4 5 FiduciaryFunds: StatementofFiduciaryNetPosition NotestoFinancialStatements REQUIREDSUPPLEMENTARYINFORMATION ScheduleofRevenues,ExpendituresandChangesinFundBalances Budget andactual GeneralFund SUPPLEMENTARYINFORMATION CombiningBalanceSheet NonmajorGovernmentalFunds Combining Statement of Revenues, Expenditures and Changes in Fund Balances NonmajorGovernmentalFunds CombiningStatementofFiduciaryNetPosition AgencyFunds ADDITIONALELEMENTSREQUIREDBYTHERULESOFTHEAUDITOR GENERAL ManagementLetter IndependentAuditor sreportoninternalcontroloverfinancialreporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards IndependentAccountant sreportoncompliancewithsection ,FloridaStatutes ScheduleofFindings ElectedOfficial'sResponsetoAuditor'sComments

118 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida INDEPENDENTAUDITOR SREPORT TheHonorableRobertB.McCallum Sheriff LevyCounty,Florida ReportontheFinancialStatements Wehaveauditedtheaccompanyingfinancialstatementsofthemajorfundandtheaggregateremaining fund information of the office of the Levy County Sheriff (the Office ) as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Office sspecialpurposefinancialstatementsaslistedinthetableofcontents. Management sresponsibilityforthefinancialstatements Management is responsible for the preparation and fair presentation of these financial statements in accordancewithaccountingprinciplesgenerallyacceptedintheunitedstatesofamerica;thisincludesthe design, implementation, and maintenance of internal control relevant to the preparation and fair presentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudor error. Auditor sresponsibility (352) (352) (fax) Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.Weconducted ourauditinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesofamericaandthe standards applicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformtheauditto obtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement. Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresin the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatare appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessof theentity sinternalcontrol.accordingly,weexpressnosuchopinion.anauditalsoincludesevaluatingthe appropriateness of accounting policies used and the reasonableness of significant accounting estimates madebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisfor ourauditopinions. 1

119 Opinions Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,therespective financial position of the major fund and the aggregate remaining fund information of the Office as of September30,2017,andtherespectivechangesinfinancialposition,whereapplicable,thereoffortheyear thenendedinaccordancewithaccountingprinciplesgenerallyacceptedintheunitedstatesofamerica. EmphasisofMatter We draw attention to Note 1 to the financial statements, which describes that the accompanying financial statementswerepreparedsolelyforthepurposeofcomplyingwiththerulesoftheauditorgeneralofthe State of Florida. In conformity with the Rules, the accompanying financial statements are special purpose financial statements that do not constitute a complete presentation, but otherwise constitute financial statements prepared in accordance with generally accepted accounting principles. Our opinions are not modifiedwithrespecttothismatter. OtherMatters RequiredSupplementaryInformation Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the special purpose financial statements. Such information,althoughnotapartofthespecialpurposefinancialstatements,isrequiredbythegovernmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the specialpurposefinancialstatementsinanappropriateoperational,economic,orhistoricalcontext.wehave applied certain limited procedures to the required supplementary information in accordance with auditing standardsgenerallyaccepted in theunitedstates ofamerica, whichconsistedofinquiriesofmanagement about the methods of preparing the information and comparing the information for consistency with management sresponsestoourinquiries,thespecialpurposefinancialstatements,andotherknowledgewe obtained during our audit of the special purpose financial statements. We do not express an opinion or provideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficient evidencetoexpressanopinionorprovideanyassurance. OtherInformation Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprisetheoffice sspecialpurposefinancialstatements.thesupplementaryinformationlistedinthetable ofcontentsispresentedforpurposesofadditionalanalysisandisnotarequiredpartofthespecialpurpose financialstatements.suchinformationistheresponsibilityofmanagementandwasderivedfromandrelates directly to the underlying accounting and other records used to prepare the special purpose financial statements.theinformationhasbeensubjectedtotheauditingproceduresappliedintheauditofthespecial purpose financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the special purpose financial statements or to the special purpose financial statements themselves, and other additional proceduresinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesofamerica.inour opinion, the information is fairly stated in all material respects in relation to the special purpose financial statementsasawhole. 2

120 OtherReportingRequiredbyGovernmentAuditingStandards InaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedAugust1,2018,on ourconsiderationoftheoffice sinternalcontroloverfinancialreportingandonourtestsofitscompliance withcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandothermatters.thepurpose of that report is solely to describe the scope of our testing of internal control over financial reporting and complianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessoftheoffice s internalcontroloverfinancialreportingoroncompliance.thatreportisanintegralpartofanauditperformed inaccordancewithgovernmentauditingstandardsinconsideringtheoffice sinternalcontroloverfinancial reportingandcompliance. Gainesville,Florida August1,2018 3

121 LevyCountySheriff BalanceSheet GovernmentalFunds September30,2017 Other Total General Governmental Governmental Fund Funds Funds Assets Cashandequivalents $631,848 $159,740 $791,588 Duefromotherfunds Duefromothergovernments 30,516 30,516 Accountsreceivable 150,685 5, ,685 Totalassets $813,049 $165,305 $978,354 Liabilitiesandfundbalances Liabilities: Accountspayableandaccruedliabilities $ 781,594 $2,040 $783,634 Duetoothercountyagencies 31, ,875 Totalliabilities 813,049 2, ,509 Fundbalances: Restricted: Federalsharedfunds Charitablepurposes Assigned: Benefitofinmates Totalfundbalances 49,874 49,874 76,108 76,108 36,863 36, , ,845 Totalliabilitiesandfundbalances $813,049 $165,305 $978,354 Seeaccompanyingnotes. 4

122 LevyCountySheriff StatementofRevenues,ExpendituresandChangesinFundBalances GovernmentalFunds YearendedSeptember30,2017 Other Total General Governmental Governmental Fund Funds Funds Revenues Chargesforservices $287,151 $84,583 $371,734 Finesandforfeitures 27,471 27,471 Miscellaneousrevenue 72,235 72,235 Totalrevenues 287, , ,440 Expenditures Current: Publicsafety 11,923,697 93,890 12,017,587 Courtrelated 264, ,823 Debtservice: Principal 250, ,953 Interest 19,743 19,743 Totalexpenditures 12,459,216 93,890 12,553,106 Excessofrevenuesover(under) expenditures (12,172,065) 90,399 (12,081,666) Otherfinancingsources(uses) Appropriationfromboardofcounty commissioners 12,003,932 Issuanceofcapitallease 202,387 Reversiontoboardofcounty commissioners (34,254) Totalotherfinancingsources(uses) 12,172,065 12,003, ,387 (34,254) 12,172,065 Netchangeinfundbalances Fundbalancesbeginningofyear Fundbalancesendofyear 90,399 90,399 72,446 72,446 $ $162,845 $162,845 Seeaccompanyingnotes. 5

123 LevyCountySheriff StatementofFiduciaryNetPosition September30,2017 Agency Funds Assets Cashandequivalents $26,573 Liabilities Assetsheldforothers 11,337 Duetootherfunds 565 Duetoothercountyagencies 14,671 Totalliabilities 26,573 Netposition $ Seeaccompanyingnotes. 6

124 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES LevyCountySheriff NotestoFinancialStatements The accounting policies of the office of the Levy County Sheriff (the Office ) conform to generally acceptedaccountingprinciplesasapplicabletogovernments.thefollowingisasummaryofthemore significantpolicies. ReportingEntity The Sheriff is an elected constitutional officer, whose office is established by ArticleVIII of the ConstitutionoftheStateofFloridaandisgovernedbyvariousprovisionsofstatelaw. TheOfficeisanintegralpartofLevyCounty,whichistheprimarygovernmentforfinancialreporting purposes. BasisofPresentation The Office s financial statements are special purpose financial statements that have been prepared solelyforthepurposeofcomplyingwiththerulesoftheauditorgeneralofthestateofflorida(the Rules ). These special purpose financial statements are the fund financial statements required by generallyacceptedaccountingprinciples.however,thesefundfinancialstatementsdonotconstitutea complete presentation because, in conformity with the Rules, the Office has not presented reconciliations to the governmentwide financial statements, the governmentwide financial statements, or management s discussion and analysis. Also, certain notes to the financial statements may supplement rather than duplicate the notes included in the County s countywide financial statements. FundAccounting Accountsareorganizedonthebasisoffunds,eachofwhichisconsideredaseparateaccountingentity. The operations of each fund are accounted for with a separate set of selfbalancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocatedto,andaccountedforin,individualfundsbaseduponthepurposesforwhichtheyaretobe spentandthemeansbywhichspendingactivitiesarecontrolled.thefocusoffundfinancialstatements is on major funds, each displayed in a separate column. All nonmajor funds are aggregated and displayedinasinglecolumn. TheOfficereportsthefollowingmajorgovernmentalfund: GeneralFund TheGeneralFundistheprimaryoperatingfund.Itisusedtoaccountforandreport allfinancialresourcesnotaccountedforandreportedinanotherfund. TheOfficealsoreportsthefollowingfiduciaryfunds: AgencyFunds AgencyFundsareusedtoaccountforassetsheldinacustodialcapacity. 7

125 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) FundBalance LevyCountySheriff NotestoFinancialStatements TheOfficefollowstheprovisionsofGASBStatementNo.54,FundBalanceReportingandGovernmental Fund Type Definitions to classify fund balances for governmental funds into specifically defined classifications.theclassificationscompriseahierarchybasedprimarilyontheextenttowhichtheoffice isboundtohonorconstraintsonthespecificpurposesforwhichamountsinthefundscanbespent. ThefundbalanceclassificationsspecifiedinGASBStatementNo.54areasfollows: Nonspendable Fund Balance Nonspendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintainedintact. RestrictedFundBalance Restrictedfundbalancesarerestrictedwhenconstraintsplacedontheuse of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or regulationsofothergovernments;or(b)imposedbylawthroughconstitutionalprovisionsorenabling legislation. CommittedFundBalance Committedfundbalancesareamountsthatcanonlybeusedforspecific purposes as a result of constraints imposed by formal action of the Office s highest level of decisionmakingauthority,whichisapolicyoftheoffice.committedamountscannotbeusedforany otherpurposeunlesstheofficeremovesthoseconstraintsbytakingthesametypeofaction. Assigned Fund Balance Assigned fund balances are amounts that are constrained by the Office s intenttobeusedforspecificpurposes,butareneitherrestrictednorcommitted.intentisexpressed by (a) the constitutional officer or (b) a body or official to which the constitutional officer has delegatedtheauthoritytoassignamountstobeusedforspecificpurposes. UnassignedFundBalance UnassignedfundbalanceistheresidualclassificationfortheGeneralFund. The Office s policy is to expend resources in the following order: restricted, committed, assigned, and unassigned. MeasurementFocus/BasisofAccounting Allgovernmentalfundsareaccountedforonacurrentfinancialresourcesmeasurementfocus.Thismeans that only current assets and current liabilities are generally included on their balance sheets. Their reportedfundbalance(netcurrentassets)isconsideredameasureof availablespendableresources. Their operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets and, accordingly, are said to present a summaryofsourcesandusesof availablespendableresources duringaperiod. 8

126 NOTE1 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) LevyCountySheriff NotestoFinancialStatements Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made,regardlessofthemeasurementfocusapplied. Allgovernmentalfundsareaccountedforusingthemodifiedaccrualbasisofaccounting.Theirrevenues are recognized when they become measurable and available as net current assets. Expenditures are generallyrecognizedunderthemodifiedaccrualbasisofaccountingwhentherelatedfundliabilityis incurred.however,principalandinterestonlongtermdebtarerecognizedwhendue. Agencyfundassetsandliabilitiesareaccountedforontheaccrualbasisofaccounting. CashandEquivalents Cashandequivalentsconsistofdepositsplacedinabankthatqualifiesasapublicdepositorypursuant to the provisions of the Florida Security For Public Deposits Act. Every qualified public depository is requiredbythislawtodepositwiththechieffinancialofficereligiblecollateralequalto,orinexcessof, an amount to be determined by the Chief Financial Officer. The Chief Financial Officer is required to ensurethatallfundsareentirelyinsuredorcollateralizedthroughoutthefiscalyear. CapitalAssetsandLongTermLiabilities Because of the current financial resources measurement focus, the accompanying fund financial statementsdonotreportcapitalassetsorlongtermliabilities.suchamountsareinsteadreportedinthe governmentwidefinancialstatementsofthecounty. UseofEstimates The preparation of financial statements in conformity with generally accepted accounting principles requiresmanagementtomakevariousestimates.actualresultscoulddifferfromthoseestimates. NOTE2 INTERFUNDBALANCES Duefrom OtherFunds Inmatewelfarefund $565 Agencyfunds: Inmatetrustfund Dueto OtherFunds $ 565 Totals $565 $565 9

127 NOTE3 RISKMANAGEMENT LevyCountySheriff NotestoFinancialStatements TheOfficeparticipatesintheFloridaSheriffs selfinsurancefundforriskrelatedtoprofessionalpolice liability,workers compensationandcertaintangiblepersonalproperty.theofficehadnosettlements thatexceededcoverageintheprevioustwofiscalyears. The Office s risks of loss related to health insurance and other general liability are covered by commercialinsurance.forthepastthreeyears,therehavebeennoinsurancesettlementssignificantly inexcessofinsurancecoverages. 10

128 RequiredSupplementaryInformation

129 LevyCountySheriff ScheduleofRevenues,ExpendituresandChangesinFundBalances BudgetandActual GeneralFund YearendedSeptember30,2017 Variance BudgetedAmounts WithFinal Original Final Actual Budget Revenues Chargesforservices $287,151 $287,151 $ 287,151 $ Expenditures Current: Publicsafety Courtrelated Debtservice: Principal Interest Totalexpenditures Excessofrevenuesover(under) expenditures Otherfinancingsources(uses) Appropriationfromboardofcountycommissioners Issuanceofcapitallease Reversiontoboardofcountycommissioners Totalotherfinancingsources(uses) Netchangeinfundbalances Fundbalancesbeginningoftheyear Fundbalancesendofyear 12,010,564 12,229,466 11,923, , , , , ,953 (250,953) 19,743(19,743) 12,275,387 12,494,289 12,459,216 35,073 (11,988,236) (12,207,138) (12,172,065) 35,073 11,988,236 12,004,751 12,003,932 (819) 202, ,387 (34,254) (34,254) 11,988,236 12,207,138 12,172,065(35,073) $ $ $ $ NotestoSchedule: Thebudgetispreparedonabasisthatdoesnotdiffermateriallyfromgenerallyacceptedaccountingprinciples.Its preparation,adoption,andamendmentisgovernedbyfloridastatutes.thefundisthelegallevelofcontrol. 11

130 SupplementaryInformation

131 LevyCountySheriff CombiningBalanceSheetNonmajorGovernmentalFunds September30,2017 Total Federal Inmate Nonmajor Forfeiture Welfare Donations Governmental Fund Fund Fund Funds Assets Cashandequivalents $49,874 $33,758 $76,108 $159,740 Duefromotherfunds Accountsreceivable 5,000 5,000 Totalassets $49,874 $39,323 $76,108 $165,305 Liabilitiesandfundbalances Liabilities: Accountspayable Duetoothercountyagencies Totalliabilities $ $2, ,460 $ $2, ,460 Fundbalances: Restricted: Federalsharedfunds 49,874 Charitablepurposes Assigned: Benefitofinmates 36,863 49,874 76,108 76,108 36,863 Totalfundbalances 49,874 36,863 76, ,845 Totalliabilitiesandfund balances $49,874 $39,323 $76,108 $165,305 12

132 LevyCountySheriff CombiningStatementofRevenues,ExpendituresandChangesinFundBalances NonmajorGovernmentalFunds YearendedSeptember30,2017 Total Federal Inmate Nonmajor Forfeiture Welfare Donations Governmental Fund Fund Fund Funds Revenues Chargesforservices $ $84,583 $ $84,583 Finesandforfeitures 27,471 27,471 Miscellaneous ,494 72,235 Totalrevenues 28,074 84,721 71, ,289 Expenditures Current: Publicsafety 13,287 80,603 93,890 Excessofrevenuesover(under) expenditures 14,787 4,118 71,494 90,399 Fundbalancesbeginningofyear 35,087 32,745 4,614 72,446 Fundbalancesendofyear $49,874 $36,863 $76,108 $162,845 13

133 LevyCountySheriff CombiningStatementofFiduciaryNetPosition AgencyFunds September30,2017 Inmate Civiland Total Trust Suspense Agency Fund Fund Funds Assets Cashandequivalents $ 9,301 $17,272 $26,573 Liabilities Assetsheldforothers 3,007 8,330 11,337 Duetootherfunds Duetoothercountyagencies 5,729 8,942 14,671 Totalliabilities 9,301 17,272 26,573 Netposition $ $ $ 14

134 AdditionalElementsRequiredbythe RulesoftheAuditorGeneral

135 MANAGEMENT LETTER The Honorable Robert B. McCallum Sheriff Levy County, Florida We have audited the financial statements of the office of the Levy County Sheriff (the Office ), as of and for the year ended September 30, 2017, and have issued our report thereon dated August 1, That report should be considered in conjunction with this management letter. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Additionally, our audit was conducted in accordance with the provisions of Chapter , Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. Prior Audit Findings The Rules of the Auditor General require that we comment as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding audit. If the audit findings in the preceding audit are uncorrected, we are required to identify those findings that were also included in the second preceding audit report. These requirements of the Rules of the Auditor General are addressed in the schedule of findings that accompanies this letter. Prior year findings, and have been corrected, and prior year finding has been partially corrected. Other Matters Our audit did not reveal any other matters that we are required to include in this management letter. The purpose of this management letter is solely to comply with the requirements of Chapter , Rules of the Auditor General. Accordingly, this communication is not suitable for any other purpose. We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extended to us during the course of the audit. Please let us know if you have any questions or comments concerning this letter, our accompanying reports, or other matters. Gainesville, Florida August 1,

136 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida (352) (352) (fax) INDEPENDENTAUDITOR SREPORTONINTERNALCONTROLOVERFINANCIALREPORTINGANDON COMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTSPERFORMEDIN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS TheHonorableRobertB.McCallum Sheriff LevyCounty,Florida We have audited, in accordance with auditing standards generally accepted in the United States of AmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards issuedbythecomptrollergeneraloftheunitedstates,thefinancialstatementsofthemajorfundand theaggregateremainingfundinformationoftheofficeofthelevycountysheriff(the Office ),asof andfortheyearendedseptember30,2017,andtherelatednotestothefinancialstatements,which collectively comprise the Office s special purpose financial statements, and have issued our report thereondatedaugust1,2018. InternalControlOverFinancialReporting Inplanningandperformingourauditofthefinancialstatements,weconsideredtheOffice sinternal control over financial reporting (internal control) to determine the audit procedures that are appropriateinthecircumstancesforthepurposeofexpressingouropinionsonthefinancialstatements, butnotforthepurposeofexpressinganopinionontheeffectivenessoftheoffice sinternalcontrol. Accordingly,wedonotexpressanopinionontheeffectivenessoftheOffice sinternalcontrol. A deficiency in internal control exists when the design or operation of a control does not allow managementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combinationofdeficiencies,ininternalcontrolsuchthatthereisareasonablepossibilitythatamaterial misstatementoftheentity sfinancialstatementswillnotbeprevented,ordetectedandcorrectedona timelybasis.asignificantdeficiencyisadeficiency,oracombinationofdeficiencies,ininternalcontrol thatislessseverethanamaterialweakness,yetimportantenoughtomeritattentionbythosecharged withgovernance. Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthis section and was not designed to identify all deficiencies in internal control that might be material weaknessesorsignificantdeficienciesandtherefore,materialweaknessesorsignificantdeficienciesmay existthathavenotbeenidentified.wedididentifycertaindeficienciesininternalcontrol,describedin theaccompanyingscheduleoffindingsasitems and thatweconsidertobematerial weaknesses. 16

137 ComplianceandOtherMatters AspartofobtainingreasonableassuranceaboutwhethertheOffice sfinancialstatementsarefreefrom material misstatement, we performed testsof its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance withwhich could have a direct and materialeffectonthedeterminationoffinancialstatementamounts.however,providinganopinionon compliancewiththoseprovisionswasnotanobjectiveofouraudit,andaccordingly,wedonotexpress suchanopinion.theresultsofourtestsdisclosednoinstancesofnoncomplianceorothermattersthat arerequiredtobereportedundergovernmentauditingstandards. TheOffice sresponsetofindings TheOffice sresponsetothefindingsidentifiedinourauditisdescribedinitsaccompanyingletterof response.theoffice sresponsewasnotsubjectedtotheauditingproceduresappliedintheauditofthe financialstatementsand,accordingly,weexpressnoopiniononit. PurposeofthisReport The purpose of this report is solely to describe the scope of our testing of internal control and complianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessofthe entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance.accordingly,thiscommunicationisnotsuitableforanyotherpurpose. gy, Gainesville,Florida August1,

138 Carr, Riggs & Ingram, LLC 4010 N.W. 25th Place Gainesville, Florida P.O. Box Gainesville, Florida (352) (352) (fax) INDEPENDENTACCOUNTANT SREPORTONCOMPLIANCEWITHSECTION ,FLORIDASTATUTES TheHonorableRobertB.McCallum Sheriff LevyCounty,Florida We have examined the office of the Levy County Sheriff s (the Office ) compliance with the requirements of Section , Florida Statutes, Local Government Investment Policies, during the year ended September 30, Management is responsible for the Office s compliance with those requirements. Our responsibility is to express an opinion on the Office s compliance based on our examination. OurexaminationwasconductedinaccordancewithattestationstandardsestablishedbytheAmerican Institute of Certified Public Accountants. Those standards require that we plan and perform the examinationtoobtainreasonableassuranceaboutwhethertheofficecomplied,inallmaterialrespects, withthespecifiedrequirementsreferencedabove.anexaminationinvolvesperformingproceduresto obtainevidenceaboutwhethertheofficecompliedwiththespecifiedrequirements.thenature,timing, andextentoftheproceduresselecteddependonourjudgment,includinganassessmentoftherisksof materialnoncompliance,whetherduetofraudorerror.webelievethattheevidenceweobtainedis sufficientandappropriatetoprovideareasonablebasisforouropinion. Our examination does not provide a legal determination on the Office s compliance with specified requirements. Inouropinion,theOfficecomplied,inallmaterialrespects,withtheaforementionedrequirementsfor theyearendedseptember30,2017. This report is intended solely for the information and use of management and the State of Florida AuditorGeneralandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecified parties. Gainesville,Florida August1,

139 LevyCountySheriff ScheduleofFindings (Reportedinpreviousauditreportsasitems and ) Criteria:Theinternalcontrolenvironmentshouldincludeappropriatesegregationofduties alongwithpoliciesandprocedurestopreventanddetecterrorstotheaccountingrecords andameanstocorrecttheminatimelymanner. Condition: There were insufficient internal controls over the receipting processes in the Special Revenue Funds with one individual performing all aspects of certain transactions. Thefinancialrecordsareupdatedandmaintainedbyonepersonwithnoreviewperformed. CauseofCondition:LimitednumberofpersonnelintheFinanceDepartment. Potential Effect of Condition: Risk of misappropriation of assets or misstatements of financialinformationiselevated. Recommendation:Werecommendthatwheneverpossible,dutiesshouldbesegregatedso thatreceiptingbyoneemployeeisreviewedbyanemployeeseparatefromthatfunction, withthatreviewbeingdocumented.cashcollectionsshouldbedocumentedwithformal proceduresandthoseproceduresshouldbefollowedconsistently. Criteria:Theinternalcontrolenvironmentshouldincludeappropriatereviewprocessesfor fuelcardpurchases. Condition:Therewereinsufficientinternalcontrolsoverthereviewoffuelcardpurchases withthesupportinglogsandreceiptsfromtheofficersnotbeingcollectedtimelyoratall throughouttheyear.thebillispaidmonthlywithoutthenecessarysupport.noanalysisis performedonfuelusage. CauseofCondition:LimitednumberofpersonnelintheFinanceDepartment. Potential Effect of Condition: Risk of misappropriation of assets or misstatements of financialinformationiselevated. Recommendation:WerecommendtheOfficeshouldfollowtheinternalcontrolprocessin placethatrequiresfuellogsandreceiptstobeturnedinmonthlytosupportthebill.we also recommend a quarterly analysis of fuel usage and spot checks to actual odometer readings. The review process should be documented with formal procedures and those proceduresshouldbefollowedconsistently. 19

140