Financial Statements September 30, 2014
CALHOUN COUNTY, FLORIDA FINANCIAL STATEMENTS September 30, 2014 BOARD OF COUNTY COMMISSIONERS Marion L. Brown District 1 Darrell McDougald District 2 Lee Shelton District 3 Willie T. Grant District 4 Thomas G. Flowers District 5 CLERK OF THE CIRCUIT COURT AND COUNTY COMPTROLLER Carla A. Hand SHERIFF Glenn Kimbrel TAX COLLECTOR Becky Trickey Smith PROPERTY APPRAISER Terrell L. Stone SUPERVISOR OF ELECTIONS Margie C. Laramore COUNTY ATTORNEY AUDITOR H. Matthew Fuqua Carr, Riggs & Ingram, LLC
Table of Contents September 30, 2014 REPORT Independent Auditors Report 1 MANAGEMENT'S DISCUSSION AND ANALYSIS Management s Discussion and Analysis 4 BASIC FINANCIAL STATEMENTS Government wide Financial Statements Statement of Net Position 5 Statement of Activities 6 Fund Financial Statements Balance Sheet Governmental Funds 7 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 8 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds 9 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 10 Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Budget and Actual 11 Statement of Revenues, Expenditures, and Changes in Fund Balance County Transportation Trust Fund I Budget and Actual 12 Statement of Revenues, Expenditures, and Changes in Fund Balance County Transportation Trust Fund II Budget and Actual 13 Statement of Revenues, Expenditures, and Changes in Fund Balance Affordable Housing (SHIP) Budget and Actual 14 Statement of Fiduciary Net Position Agency Funds 15 Notes to Financial Statements 16
Table of Contents September 30, 2014 SUPPLEMENTARY INFORMATION Combining Balance Sheet Nonmajor Governmental Funds 37 Combining Statement of Revenues, Expenditures, and Changes in Fund 40 Balances Nonmajor Governmental Funds Combining Statement of Fiduciary Net Position Agency Funds 43 Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 45 Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control Over Compliance Required by OMB Circular A 133 and Chapter 10.550, Rules of the Auditor General 47 Schedule of Expenditures of Federal Awards and State Financial Assistance 49 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 53 Schedule of Findings and Questioned Costs 54 Summary Schedule of Prior Audit Findings 56 Independent Auditors Management Letter 57 Independent Accountant's Report on Compliance with Section 218.415, 60 Florida Statutes, Local Government Investment Policies Management s Response 61 Special Purpose Financial Statements Clerk of the Circuit Court Property Appraiser Sheriff Supervisor of Elections Tax Collector
REPORT
To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Report on the Financial Statements INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information and fiduciary fund type of, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the County s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements and 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 basic financial statements are free of 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.
To the Honorable Board of County Commissioners and Constitutional Officers of Blountstown, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, the aggregate remaining fund information, and fiduciary fund type of as of September 30, 2014, and the respective changes in financial position and cash flow, where applicable, thereof and the respective budgetary comparison for the General Fund and the Major Special Revenue Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Accounting principles generally accepted in the United States of America require that the management s discussion and analysis on pages 4.1 to 4.7 be presented to supplement the basic 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 the 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 and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the s basic financial statements. The combining and individual non major fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards and State Financial Assistance Projects is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A 133, Audits of States, Local Governments and Non Profit Organizations and Chapter 10.550 of the Rules of the Auditor General State of Florida and is not a required part of the basic financial statements. The combining and individual non major fund financial statements and the Schedule of Expenditures of Federal Awards and State Financial Assistance Projects are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied to the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects to the basic financial statements as a whole.
To the Honorable Board of County Commissioners and Constitutional Officers of Blountstown, Florida Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 15, 2015, on our consideration of s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. June 15, 2015
MANAGEMENT'S DISCUSSION AND ANALYSIS
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS The Management of the Board of County Commissioners of Calhoun County (the County ) prepared the following discussion and analysis to (a) assist the reader in focusing on significant financial issues, (b) provide an overview and analysis of the County s financial activities, (c) identify changes in the County s financial position, (d) identify material deviations from the financial plan (approved budget), and (e) highlight significant issues in individual funds. Because the information contained in the Management s Discussion and Analysis (MD&A) is intended to highlight significant transactions, events and conditions, it should be considered in conjunction with the County s financial statements. FINANCIAL/COUNTY HIGHLIGHTS The assets of the County exceeded its liabilities at September 30, 2014 by $55,690,304 (net position). Of this amount, $3,422,246 represents unrestricted net position that may be used to meet the County s ongoing obligations to citizens and creditors. Total net position of $55.69 million is comprised of the following: o $50.43 million of capital assets, net of related debt, includes property and equipment, net of accumulated depreciation, reduced for outstanding debt related to the construction of those capital assets. o $1.84 million of net position is restricted by constraints imposed from outside the County such as grantors, laws, or regulations. o $3.42 million of unrestricted governmental net position represents the portion available to maintain the County s continuing obligation to citizens and creditors. As of September 30, 2014, the County s governmental funds reported combined ending fund balances of $5,669,532, an increase of $1,457,779 in comparison with the prior year. The County s total governmental net position increased by $1.45 million during fiscal year ended September 30, 2014. During the current year, the County managed $3.27 million in federal and state grant funded programs. Calhoun County expended approximately $1.52 million of grant funds (federal & state funds) from Florida Department of Transportation (FDOT) and the United States Department of Transportation Federal Aviation Administration (FAA) for road, sidewalk, and airport improvement projects. The County expended approximately $1.75 million in additional grants (federal & state funds) to aid the County. Details are available in the Schedule of Expenditures of Federal Award Programs and State Financial Assistance Projects. In the Spring of 2014, Calhoun County sustained damage as a result of the North Florida Severe Storms and Flooding event. The County was included in the major disaster declaration (DR-4177) and is eligible for assistance from the Federal Emergency Management Agency (FEMA) for road project repairs/expenditures. Damage assessments by the State of Florida for Calhoun County are approximately $20.8 million. These approved projects will be funded by Federal grants at 75% of eligible costs, State funding at 12.5% of eligible costs and Local match at 12.5%. The County has requested a waiver from the State of the local match requirement. Page 4 (1 of 7)
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County s basic financial statements. The County s basic financial statements consist of: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the financial statements In addition, this report presents certain required supplementary information. Government-wide Financial Statements The government-wide financial statements provide both short-term and long-term information about the County s overall financial condition in a manner similar to those of a private-sector business. This statement combines and consolidates governmental fund s current financial resources (short-term expendable resources) with capital assets and long-term obligations. The statements include a statement of net position and a statement of activities that are designed to provide consolidated financial information about the governmental activities of the County presented on the accrual basis of accounting. The statement of net position presents information on all assets and liabilities of the County, with the difference between the two reported as net position. Increases or decreases in net position over time may serve as a useful indicator of the County s improving or declining financial position. The statement of activities presents information showing how the County s net position changed during the 2014 fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement of activities for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave.) Both of these financial statements present the functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the County include general government, public health and safety, physical environment, transportation, economic environment, human services, culture and recreation, and court related. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, Calhoun County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the County s funds may be classified in the broad category of Governmental Funds and Fiduciary (Agency) Funds as discussed below. Governmental Funds - these funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, the governmental funds utilize a spendable financial resources measurement focus rather than the economic resources measurement focus found in the government-wide financial statements. This financial resources measurement focus allows the governmental fund statements to provide information on near-term inflows and outflows of spendable resources as well as balances of spendable resources available at the end of the fiscal year. Consequently, the governmental fund statements provide a detailed short-term view that may be used to evaluate the County s near-term financing requirements. Page 4 (2 of 7)
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS Fiduciary (Agency) Funds Fiduciary funds are used to report assets held in a trustee or fiduciary capacity for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide statements because the resources are not available to support the County s own programs. In its fiduciary capacity, the County is responsible for ensuring that the assets reported in these funds are used only for their intended purposes. Government-Wide versus Fund Financial The Government-wide Financial Statements provide different pictures of the County. All assets of the County, including buildings, land, roads and bridges are reported in the Statement of Net Position. All liabilities, including principal outstanding on notes payable and futures benefits obligated but not paid by the County, are included. The Statement of Activities includes depreciation on long-lived assets of the County. The Fund Financial Statements provide a picture of the major funds of the County and a column for all nonmajor funds. In the case of governmental activities, outlays for long-lived assets are reported as expenditures and long-term liabilities, such as notes payable, are not included in the Fund Financial Statements. A reconciliation is included to provide a link from the Fund Financial Statements to the Government-wide Financial Statements. Statement of Net Position GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government s financial position. In the case of the County, assets exceeded liabilities by approximately $55.69 million at the close of the fiscal year ended September 30, 2014. This was an increase of approximately $1.45 million over prior year net position. In addition, in comparison with FY 2013, capital assets decreased by $151,312 and long term liabilities decreased by $144,437. Governmental Governmental Activities Activities FY 2014 FY 2013 Total Assets are comprised of the following elements: Current and Other Assets $ 7,472,132 6,621,382 Capital Assets, Net 50,801,248 50,952,560 Total Assets $ 58,273,380 57,573,942 Total Liabilities are comprised of the following elements: Current and Other Liabilities 2,050,960 2,652,968 Long-term Liabilities 532,116 676,553 Total Liabilities $ 2,583,076 3,329,521 Total Net Position is comprised of the following elements: Net Position: Invested in Capital Assets, Net of Related Debt 50,426,210 50,390,022 Restricted 1,841,848 1,133,659 Unrestricted 3,422,246 2,720,740 Total Net Position $ 55,690,304 54,244,421 Page 4 (3 of 7)
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS At September 30, 2014, the largest portion of the County s net position reflected investment in capital assets. (e.g. land, buildings, infrastructure, equipment, and intangibles), less any related outstanding debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the County s net assets represent resources that are subject to restrictions on how they may be used. The remaining balance of unrestricted net assets may be used to meet the government s ongoing obligations to citizens and creditors. Statement of Activities The following schedule summarizes revenues and expenses for the current and prior years: Governmental Governmental Activities Activities FY 2014 FY 2013 REVENUES Program Revenues Charges for Services $ 1,054,452 864,376 Operating Grants and Contributions 1,742,886 1,015,596 Capital Grants and Contributions 1,844,962 3,203,306 General Revenues: Property Taxes 3,733,869 3,847,774 Local Option Taxes 932,033 890,852 Other Taxes and Shared Revenues 3,417,587 3,302,295 Investment Earnings 3,076 4,442 Other 1,151,039 688,745 Total Revenues 13,879,904 13,817,386 EXPENSES Program Activities General Government 2,742,174 2,585,515 Public Health and Safety 3,473,935 3,199,225 Physical Environment 219,094 169,937 Transportation 3,786,186 4,772,979 Economic Environment 508,513 304,428 Human Services 370,583 254,951 Culture and Recreation 691,204 666,457 Court Related 619,372 552,004 Interest on long-term debt 22,960 31,757 Total Expense 12,434,021 12,537,253 NET INCREASE 1,445,883 1,280,133 Net Position - Beginning 54,244,421 52,964,288 Net Position - Ending $ 55,690,304 54,244,421 Page 4 (4 of 7)
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS Governmental activities revenue increased $62,518, or less thksan 1%, from the prior fiscal year. Governmental Funds The primary purpose of the County s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government s net resources, available for spending, at the end of the current and prior fiscal year. As of the end of fiscal year 2014, the County s governmental funds reported combined ending fund balances of $5,669,532, a $1,457,779 increase over the prior year. The unrestricted General Fund balances of $3,756,277 are available for spending at the County s discretion. The restricted and committed Special Revenue Fund balances of $1,913,255 can be utilized only within their particular special revenue programs. Page 4 (5 of 7)
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS This section provides an analysis of the balances and transactions of individual funds. The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. MAJOR FUNDS Governmental Funds The General Fund, County Transportation Trust, County Transportation Trust II and Affordable Housing SHIP are reported as major governmental funds. The General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not required either legally or by generally accepted accounting principles to be accounted for in other funds are accounted for in the General Fund. General operating funds of the Clerk of the Circuit Court, Property Appraiser, Sheriff, Tax Collector, and Supervisor of Elections represent subfunds of the County s General Fund that are held and accounted for individually, but presented with the balance of the Board of County Commissioners operating funds. As of September 30, 2014, the County s general fund reported an ending fund balance of $3,756,277, an increase of $750,782 in comparison with the prior year County Transportation Trust accounts for the various gas tax revenues and certain transportation related grants used to finance road and bridge construction and maintenance. The use of these funds is restricted by state statute for such purposes. Fund balance at September 30, 2014 totaled $906,056, an increase of $664,768 during the fiscal year. Current year activity includes the sale of various County equipment for $752,828. The proceeds were designated for new equipment for the Road Department; $89,517 was unspent at September 30, 2014. County Transportation Trust II accounts for the local option gas tax revenue and specific road paving, resurfacing and improvement projects designated by management. Local option gas taxes are restricted in their use by an ordinance to be used exclusively for transportation expenditures as defined in F.S. 336.025(7). The fund balance increase by $50,540 during fiscal year 2014. Current year grant activity included Department of Transportation federal and state funding of $646,403. The Affordable Housing SHIP funds account for grants received from Florida Housing Coalition for the purpose of meeting the housing needs of the very low, low and moderate-income households. Current year activity in the amount of $356,582 provided home rehabilitation/repair assistance to eligible applicants as governed by Calhoun County s Local Housing Assistance Plan. Repairs include but are not limited to the correction of code violations, providing safe and sanitary conditions, increase energy efficiency, and prevent further deterioration, roof repair, and repair or replacement of septic systems. GENERAL FUND BUDGETARY HIGHLIGHTS The original general fund budget was amended to reflect an increase in revenues and expenditures in the amount of $721,746. This increase was primarily the result of additional grant proceeds. Intergovernmental revenue and grant revenue were under budget by $1.3 million due to the timing of Federal, State and local government grant projects. Accordingly, capital outlay was also under budget by $1.5 million primarily due to the timing of these capital project grants. Actual expenditures for general government were less than the final budgeted amount due to the Clerk of the Circuit Court, Tax Collector, Page 4 (6 of 7)
Calhoun Board of County Commissioners MANAGEMENT S DISCUSSION AND ANALYSIS Supervisor of Elections and Property Appraiser having less expenditures than anticipated, as did various Board expenditure line items. CAPITAL ASSETS AND LONG-TERM DEBT The County s investment in capital assets for its governmental activities as of September 30, 2014 amounted to $50,801,248 (net of accumulated depreciation). This investment in capital assets includes land, buildings, equipment, intangibles, infrastructure (effective 10/1/03) and construction in progress, net of accumulated depreciation. More detailed information about the County s capital assets is presented in the notes to financial statements. The most significant capital assets added during fiscal year 2014 were as follows: Building improvements included the $1,269,265 grant project for the wind retrofit of the Courthouse windows Construction in progress included road projects, two commercial hangars at the airport, and the Pine Island Water System improvements. Governmental Funds Outstanding Debt: As of September 30, 2014, the County s long-term debt consisted of the following: Notes payable $ 375,038 Compensated absences 243,438 Other post-employment benefit obligation 162,000 The note payable listed above includes the amount due on long term financing for Hazard Mitigation grant match requirements and additional infrastructure project expense. Additional information on the County s long-term debt can be found in the Notes to the Financial Statements in this report. SIGNIFICANT ECONOMIC FACTORS The unemployment rate for the County at fiscal yearend was 6.2%, a decrease from the prior year rate of 6.4%. The ad valorem tax millage rate was 9.9 mills. REQUESTS FOR INFORMATION This report is designed to provide citizens, taxpayers, investors, and creditors with a general overview of the County s finances and to demonstrate compliance and accountability for its resources. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Carla A. Hand, Clerk of Circuit Court and County Comptroller of Calhoun County,20859 Central Avenue, Room 130,Blountstown, Florida 32424.You may also visit our website, www.calhounclerk.com, for further financial information. Page 4 (7 of 7)
BASIC FINANCIAL STATEMENTS
Statement of Net Position September 30, 2014 Primary Government Governmental Activities Assets Cash and cash equivalents $ 5,205,305 Investments 26,400 Accounts receivable 24,660 Due from other funds 40,701 Due from other governmental units 2,035,443 Due from Individuals 264 Notes receivable 25,202 Prepaid expenses 114,157 Capital Assets Land 2,762,119 Buildings and improvements 13,191,821 Machinery and equipment 7,989,327 Infrastructure 46,203,112 Intangible assets 92,631 Construction in progress 1,731,428 Less allowance for depreciation (21,169,190) Total assets 58,273,380 Liabilities Accounts payable and accrued expenses 776,654 Due to other governmental units 529,382 Deferred revenue 496,564 Long term liabilities Portion due or payable within one year Notes payable 187,500 Compensated absences 60,860 Portion due or payable after one year Notes payable 187,538 Compensated absences 182,578 Other post employment benefit obligation 162,000 Total liabilities 2,583,076 Net position Invested in capital assets, net of related debt 50,426,210 Restricted for General government 15,857 Public Safety 203,740 Physical environment 119,290 Transportation 1,125,747 Culture and recreation 242,800 Court related 134,414 Unrestricted 3,422,246 Total net position $ 55,690,304 See accompanying notes to financial statements 5
For the year ended September 30, 2014 See accompanying notes to financial statements 6 Statement of Activities NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS PROGRAM REVENUES PRIMARY GOVERNMENT CHARGES OPERATING CAPITAL FOR GRANTS & GRANTS & GOVERNMENTAL FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES Total Primary Government Governmental activities General government $ 2,742,174 $ 232,828 $ 100,246 $ $ (2,409,100) $ (2,409,100) Public health and safety 3,473,935 260,574 321,211 163,179 (2,728,971) (2,728,971) Physical environment 219,094 235,166 16,072 16,072 Transportation 3,786,186 228,196 474,700 1,664,537 (1,418,753) (1,418,753) Economic environment 508,513 422,783 (85,730) (85,730) Human services 370,583 (370,583) (370,583) Culture and recreation 691,204 49,999 171,246 17,246 (452,713) (452,713) Court related 619,372 282,855 17,534 (318,983) (318,983) Interest on long term debt 22,960 (22,960) (22,960) Total primary government $ 12,434,021 $ 1,054,452 $ 1,742,886 $ 1,844,962 (7,791,721) (7,791,721) General revenues Taxes: Property taxes 3,733,869 3,733,869 Local option taxes 932,033 932,033 Sales tax and other taxes 3,417,587 3,417,587 Investment earnings 3,076 3,076 Miscellaneous 1,151,039 1,151,039 Total general revenues 9,237,604 9,237,604 Change in net position 1,445,883 1,445,883 Net position, beginning 54,244,421 54,244,421 Net position, ending $ 55,690,304 $ 55,690,304
September 30, 2014 Balance Sheet Governmental Funds County County Affordable Other Total General Transportation Transportation Housing Governmental Governmental Funds Trust I Trust II (SHIP) Funds Funds Assets Cash and cash equivalents $ 2,967,339 $ 971,289 $ $ 385,000 $ 881,677 $ 5,205,305 Investments 26,400 26,400 Accounts receivable 4,449 20,211 24,660 Due from other funds 349,236 26,570 375,806 Due from other governmental units 609,218 440,173 607,886 378,166 2,035,443 Due from individuals 264 264 Notes receivable 25,202 25,202 Prepaid expenses 92,144 22,013 114,157 Total assets $ 4,022,650 $ 1,433,475 $ 607,886 $ 410,202 $ 1,333,024 $ 7,807,237 Liabilities Accounts payable and accrued expenses $ 258,718 $ 56,936 $ 293,644 $ 11,315 $ 156,041 $ 776,654 Due to other funds 3,161 707 212,591 14,358 104,288 335,105 Due to other governmental units 469,776 59,606 529,382 Deferred revenue 4,494 384,529 107,541 496,564 Fund balances Total liabilities 266,373 527,419 506,235 410,202 427,476 2,137,705 Nonspendable 92,144 22,013 114,157 Restricted 884,043 101,651 834,141 1,819,835 Committed 71,407 71,407 Unassigned 3,664,133 3,664,133 Total fund balances 3,756,277 906,056 101,651 905,548 5,669,532 Total liabilities and fund balances $ 4,022,650 $ 1,433,475 $ 607,886 $ 410,202 $ 1,333,024 $ 7,807,237 See accompanying notes to financial statements 7
Reconciliation of the Balance sheet of Governmental Funds to the Statement of Net Position September 30, 2014 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances governmental funds $ 5,669,532 Capital assets used in governmental activities are not financial resources, and, therefore, are not reported in the governmental funds. 50,801,248 Long term liabilities are not due and payable in the current period, and, therefore, are not reported in the governmental funds. Total long term liabilities see note 7 (780,476) Net position of governmental activities $ 55,690,304 See accompanying notes to financial statements 8
For the year ended September 30, 2014 Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds County County Affordable Other Total General Transportation Transportation Housing Governmental Governmental Funds Trust I Trust II SHIP Funds Funds Revenues Taxes $ 4,458,305 $ 21,884 $ 260,998 $ $ $ 4,741,187 Permits, fees and special assessment 28,097 3,977 32,074 Intergovernmental 2,612,138 833,993 122,954 3,569,085 Charges for services 230,079 2,689 233,979 466,747 Fines and forfeitures 103,881 103,881 Grants 692,078 611,733 646,403 355,092 1,282,542 3,587,848 Investment earnings 2,635 2 148 291 3,076 Contributions and donations 9,832 9,832 Other fees and miscellaneous 9,255 753,900 1,342 253,692 1,018,189 Total revenues 8,032,587 2,224,199 907,403 356,582 2,011,148 13,531,919 Expenditures Current: General Government 2,577,864 30 2,577,894 Public health and safety 2,812,660 357,844 3,170,504 Physical environment 67,605 39,119 77,154 183,878 Transportation 19,491 1,003,989 223,458 1,246,938 Economic environment 42,161 356,582 67,691 466,434 Human services 345,559 345,559 Culture and recreation 58,287 526,240 584,527 Court related 112,979 455,599 568,578 Capital outlay 530,919 831,110 646,403 913,098 2,921,530 Debt Service Principal 187,500 187,500 Interest and other charges 22,960 22,960 Total expenditures 6,567,525 1,874,218 856,863 356,582 2,621,114 12,276,302 Excess of revenues over (under) expenditures 1,465,062 349,981 50,540 (609,966) 1,255,617 Other financing sources (uses) Operating transfers in 314,787 425,597 740,384 Operating transfers out (714,280) (26,104) (740,384) Transfers from State of Florida 232,100 232,100 Transfers to State of Florida (29,938) (29,938) Net other financing sources (uses) (714,280) 314,787 601,655 202,162 Net change in fund balances 750,782 664,768 50,540 (8,311) 1,457,779 Fund balances beginning 3,005,495 241,288 51,111 913,859 4,211,753 Fund balances ending $ 3,756,277 $ 906,056 $ 101,651 $ $ 905,548 $ 5,669,532 See accompanying notes to financial statements 9
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended September 30, 2014 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances total governmental funds $ 1,457,779 Capital outlay, reported as expenditures in governmental funds, are shown as capital assets in the statement of activities. 2,921,530 Depreciation expense on governmental capital assets included in the governmental activities in the statement of activities. (3,188,727) The net effect of transactions involving capital assets (i.e. sales, transfers) included in the governmental activities in the statement of activities. 16,352 The effect of capital asset donations included in the governmental activities in the statement of activities. 99,533 Repayment of long term debt is reported as an expenditure in governmental funds but as a reduction of long term liabilities in the 187,500 statement of net position. Accrued other post employment benefits do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. (28,000) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. These expenses include: Compensated absences (20,084) Change in net position of governmental activities $ 1,445,883 See accompanying notes to financial statements 10
Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Budget to Actual For the year ended September 30, 2014 Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes $ 4,543,106 $ 4,543,106 $ 4,458,305 $ (84,801) Permits, fees and special assessment 25,600 25,600 28,097 2,497 Intergovernmental 2,420,971 2,837,804 2,612,138 (225,666) Charges for services 196,100 204,533 230,079 25,546 Grants 1,522,387 1,816,398 692,078 (1,124,320) Investment earnings 2,000 2,000 2,635 635 Contributions and donations Other fees and miscellaneous 2,400 4,869 9,255 4,386 Less 5% of estimated revenues (363,996) (363,996) 363,996 Total revenues 8,348,568 9,070,314 8,032,587 (1,037,727) Expenditures Current: General government 2,623,423 2,705,478 2,577,864 127,614 Public health and safety 2,816,344 2,861,757 2,812,660 49,097 Physical environment 79,583 79,583 67,605 11,978 Transportation 13,000 13,000 19,491 (6,491) Economic environment 50,579 50,579 42,161 8,418 Human services 375,682 375,682 345,559 30,123 Culture and recreation 99,502 99,502 58,287 41,215 Court related 103,241 123,413 112,979 10,434 Capital outlay 1,447,397 2,052,503 530,919 1,521,584 Reserve for contingencies 8,080 8,080 8,080 Total expenditures 7,616,831 8,369,577 6,567,525 1,802,052 Excess of revenues over (under) expenditures 731,737 700,737 1,465,062 764,325 Other financing sources (uses) Operating transfers net (751,280) (720,280) (714,280) 6,000 Net other financing sources (uses) (751,280) (720,280) (714,280) 6,000 Net change in fund balance (19,543) (19,543) 750,782 770,325 Fund balances beginning 1,946,488 1,946,488 3,005,495 1,059,007 Fund balances ending $ 1,926,945 $ 1,926,945 $ 3,756,277 $ 1,829,332 See accompanying notes to financial statements 11
Statement of Revenues, Expenditures, and Changes in Fund Balance County Transportation Fund I Budget to Actual For the year ended September 30, 2014 Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes $ 23,274 $ 23,274 $ 21,884 $ (1,390) Intergovernmental 819,999 819,999 833,993 13,994 Charges for services 2,688 2,688 2,689 1 Grants 155,916 611,733 455,817 Other fees and miscellaneous 752,827 753,900 1,073 Less 5% of estimated revenues (42,298) (42,298) 42,298 Total revenues 803,663 1,712,406 2,224,199 511,793 Expenditures Current: Physical environment 45,916 39,119 6,797 Transportation 1,155,450 1,118,450 1,003,989 114,461 Capital outlay 862,827 831,110 31,717 Total expenditures 1,155,450 2,027,193 1,874,218 152,975 Excess of revenues over (under) expenditures (351,787) (314,787) 349,981 664,768 Other financing sources (uses) Operating transfers in 351,787 314,787 314,787 Total other financing sources (uses) 351,787 314,787 314,787 Net change in fund balance 664,768 664,768 Fund balances beginning 241,288 241,288 Fund balances ending $ $ 241,288 $ 906,056 $ 664,768 See accompanying notes to financial statements 12
Statement of Revenues, Expenditures, and Changes in Fund Balance County Transportation Trust II Budget to Actual For the year ended September 30, 2014 Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes $ 260,878 $ 260,878 $ 260,998 $ 120 Grants 1,943,314 646,403 (1,296,911) Other fees and miscellaneous 2 2 Less 5% of estimated revenues (13,044) (13,044) 13,044 Total revenues 247,834 2,191,148 907,403 (1,283,745) Expenditures Current: Transportation 80,274 80,274 80,274 Capital outlay 1,943,314 646,403 1,296,911 Debt service Principal 187,500 187,500 187,500 Interest and other charges 23,060 23,060 22,960 100 Total expenditures 290,834 2,234,148 856,863 1,377,285 Excess of revenues over (under) expenditures (43,000) (43,000) 50,540 93,540 Net change in fund balance (43,000) (43,000) 50,540 93,540 Fund balances beginning 43,000 51,111 51,111 Fund balances ending $ $ 8,111 $ 101,651 $ 93,540 See accompanying notes to financial statements 13
Statement of Revenues, Expenditures, and Changes in Fund Balance Affordable Housing (SHIP) Budget to Actual For the year ended September 30, 2014 Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Grants $ 350,000 $ 384,375 $ 355,092 $ (29,283) Investment earnings 148 148 Miscellaneous 1,342 1,342 Total revenues 350,000 384,375 356,582 (27,793) Expenditures Current: Economic Development 350,000 384,375 356,582 27,793 Total expenditures 350,000 384,375 356,582 27,793 Excess of revenues over (under) expenditures Net change in fund balance Fund balances beginning Fund balances ending $ $ $ $ See accompanying notes to financial statements 14
Statement of Fiduciary Net Position Agency Funds September 30, 2014 Agency Funds Assets Cash and cash equivalents $ 336,553 Due from other funds 1,689 Due from other governments 12,194 Due from individuals 611 Total assets $ 351,047 Liabilities Due to other funds $ 19,169 Due to Board of County Commissioners 23,221 Due to other governmental units 271,781 Due to individuals 36,876 Total liabilities $ 351,047 See accompanying notes to financial statements 15
Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Calhoun County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units in accordance with the Governmental Accounting Standards Board (GASB). The GASB is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following notes to the financial statements are an integral part of the County s Basic Financial Statements. The accounting and reporting framework and the more significant accounting principles and practices are discussed in subsequent sections of this Note. The remainder of the notes is organized to provide explanations, including required disclosures, of the County s financial activities for the fiscal year ended September 30, 2014. Reporting Entity (the County ) located in Northwest Florida, is a political subdivision of the State of Florida and provides services to approximately 14,000 residents in many areas including general government, public safety, physical environment, transportation, economic environment, human services, and culture and recreation. It is governed by a five member elected Board of County Commissioners (the Board ), which derives its authority by Florida Statutes and regulations. In addition to the members of the Board, there are five elected constitutional officers: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser and Supervisor of Elections. The elected offices of the Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections are operated as separate County agencies in accordance with applicable provisions of Florida Statutes. These constitutional officers operate on a budget system whereby Countyappropriated funds are received from the Board with unexpended funds returned to the Board. The Clerk of the Circuit Court also operates as a fee officer by retaining various fees collected by this office and receives appropriated funds from the State of Florida to fund court related activities. Separate accounting records and budgets are maintained by each individual office. As outlined in Governmental Accounting Standards Board (GASB) Statement No. 14, The Reporting Entity, the financial reporting entity consists of the primary government, and its component units, for which the primary government is considered to be financially accountable. Also included are other entities whose exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Each potential component unit is individually evaluated using specific criteria outlined in GASB Statement No. 14 to determine whether the entity is: a) part of the primary government; b) a component unit which should be included in the reporting entity (blended or discretely presented); or c) an organization which should be excluded from the reporting entity entirely. The principal criteria for classifying a potential component unit include the legal separateness of the organization, the financial accountability of the primary government for the potential component unit resulting from either the primary government s ability to impose its will on the potential component unit, or the potential component unit's fiscal dependency on the primary government. The dependent special district, Industrial Development Authority, is considered a component unit, and is blended in the financial statements of the County as part of the special revenue funds. There were no other entities for which there were positive responses to specific criteria used for establishing oversight responsibility that were excluded from the County s financial statements. 16
Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government wide and Fund Financial Statements The basic financial statements consist of the government wide financial statements and fund financial statements. The government wide financial statements include the statement of net position and the statement of activities. These statements report financial information for the, as a whole excluding fiduciary activities. For the most part, the effect of inter fund activity has been removed from these statements. Individual funds are not displayed but the statement distinguishes governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues are classified into three categories: charges for services, operating grants and contributions, and capital grants and contributions. Charges for services refer to direct recovery from customers for services rendered. Grants and contributions refer to revenues restricted for specific programs whose use may be restricted further to operational or capital items. The general revenues section displays revenue collected that helps support all functions of government and contributes to the change in the net position for the fiscal year. The fund financial statements follow and report additional and detailed information about operations for major funds individually and nonmajor funds in the aggregate for governmental funds. Reconciliation is provided that converts the results of governmental fund accounting to the government wide presentations. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period, considered to be sixty days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due. 17
Notes to Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major revenue sources susceptible to accrual include: sales and use taxes, various motor fuel taxes, property taxes, intergovernmental revenues, and investment income. In general, other revenues are recognized when cash is received. The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the County s policy to use restricted resources first, then unrestricted resources as needed. When expenditures are incurred for which committed, assigned or unassigned amounts could be used, it is the County s policy to use them in that order. The County reports four major governmental funds: General Fund The general fund is the County s primary operating fund. It accounts for all resources traditionally associated with governments except those required to be accounted for in another fund. County Transportation Trust I This fund accounts for motor fuel taxes and various grants earmarked for County road construction and maintenance. County Transportation Trust II This fund accounts for the County s local option gas tax revenue and grants for various road paving, resurfacing and improvement projects. Affordable Housing (SHIP) This fund accounts for the grants received from the Florida Housing Finance Corporation for low income housing improvements. The County reports one type of fiduciary fund, agency funds which are used to account for the collection and disbursement of monies by the County on behalf of other governments and individuals. Budgets and Budgetary Accounting General governmental revenue and expenditures accounted for in budgetary funds are controlled by a budgetary accounting system in accordance with various legal requirements which govern the County s operations. Budgets are monitored at varying levels of classification detail; however, expenditures cannot legally exceed total appropriations at the individual fund level. All budget changes that affect the total of a fund s budget must be approved by the Board. The budgetary information presented for the general fund and any major special revenue funds is prepared on the modified accrual basis. Encumbrances are not recorded. Unexpended items at year end must be reappropriated in the subsequent year. 18
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Notes to Financial Statements Cash and Cash Equivalents Cash and Cash Equivalents include amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Short term investments also include amounts placed with the State Board of Administration for participation in the Local Government Surplus Funds Trust Fund investment pools created by Sections 218.405 and 218.417, Florida Statutes. Investments Investments consist of those deposits made locally in commercial banks with a maturity date greater than three months of the date acquired by the government. The County follows GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, in reporting on investments owned. Generally, this statement requires various investments be reported at fair value, including debt securities and open ended mutual funds. Receivables Receivables are shown at their net realizable value. The County estimates there are no material uncollectible accounts. Therefore, the County is of the opinion an allowance for doubtful accounts is not necessary. Due from (to) Other Funds Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as due to/from other funds. Inventories Inventory items of materials and supplies, which are not significant in amount, are considered expenditures when purchased in the governmental funds. No physical inventory was taken at year end; therefore, no inventory has been recorded on the combined balance sheet. The amount is estimated to be immaterial. Prepaid Expenses General fund expenditures for insurance and similar services extending over more than one accounting period are accounted for as expenditures in the period of acquisition. Capital Assets Capital assets, which include property, plant, equipment, intangible and infrastructure (e.g., roads, right of ways, stormwater system, sidewalks, and similar items) assets, are reported in the governmental column in the government wide financial statements. Property and equipment with initial, individual costs that exceed $1,000 and an estimated useful life in excess of one year are recorded as capital assets. Buildings, roads, bridges, and sidewalks are capitalized when their initial costs exceed $25,000 and possess estimated useful lives of more than one year. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are expensed as incurred. 19
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Notes to Financial Statements In accordance with the provisions of GASB Statement No. 34, the County has elected not to retroactively report major infrastructure constructed prior to October 1, 2003. Buildings and infrastructure are depreciated using the straight line method and machinery and equipment are depreciated using the unweighted average composite method over the following estimated useful lives: Assets Years Buildings 50 Machinery and equipment 3 15 Infrastructure 15 25 Major outlays for capital assets and improvements are capitalized as projects are constructed. For assets constructed with governmental fund resources, interest during construction is not capitalized. Deferred Revenues Deferred revenues reported in the government wide financial statements represent unearned revenues. The deferred revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting. Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available, and in accordance with the modified accrual basis of accounting, are reported as deferred revenues. Compensated Absences The County maintains a policy that permits employees to accumulate earned but unused vacation and sick pay benefits that will be paid to employees upon separation from County service if certain criteria are met. These benefits, plus their related tax and retirement costs are classified as compensated absences. Employees may be paid for unused vacation hours accrued up to a maximum amount. Payment of unused sick leave, upon termination, is also provided for up to varying amounts. Both the current and long term portion of compensated absences are accrued and reported in the government wide financial statements. No expenditure is reported in the government fund level statements for these amounts until payment is due. Compensated absences liability is based on current rates of pay. This is accounted for pursuant to GASB Statement No. 16, Accounting for Compensated Absences. Governmental Fund Balances The County follows GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions which clarifies governmental fund balance classifications and fund type definitions. Fund balances are classified either as non spendable or spendable. See Note 13. 20
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Notes to Financial Statements Net Position For the year ending September 30, 2014, the County reports net position as restricted or unrestricted. Restricted net positions have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Unrestricted net positions are comprised of all other balances, including committed, assigned and unassigned. Long term Debt In the government wide financial statements, outstanding debt is reported as liabilities. The governmental fund financial statements recognize the proceeds of debt as other financial sources of the current period. Issuance costs are reported as expenditures. Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. Encumbrances Encumbrances represent commitments in the form of purchase orders which are chargeable to an appropriation and for which a part of the appropriation is reserved. Encumbrances do not represent expenditures or liabilities. The County does not record encumbrances outstanding at year end. Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors Report which is the date the financial statements were available to be issued. NOTE 2 PROPERTY TAXES Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the Property Appraiser and Tax Collector. The laws of the state regulating tax assessment are also designed to assure a consistent property valuation method statewide. Florida Statutes permit counties to levy property taxes at a rate of up to 10 mills for general operations. The 2014 millage rate assessed by the County was 9.9 mills. The tax levy of the County is established by the Board prior to October 1, of each year and the Property Appraiser incorporates the County millage into the total tax levy, which includes the various municipalities, the county school board, and other taxing authorities. All property is assessed according to its fair market value January 1, of each year. Each assessment roll is submitted to the Executive Director of the Florida Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of Florida Statutes. 21
Notes to Financial Statements NOTE 2 PROPERTY TAXES (CONTINUED) All taxes become payable on November 1, of each year, or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. Taxes paid in March are without discount. On or prior to June 1, following the tax year, tax certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold tax certificates are held by the County. NOTE 3 DUE FROM OTHER GOVERNMENTS Due from other governments consists of funds earned as of September 30, 2014, but not yet received by the County. The majority of these amounts were received in October and November 2014. NOTE 4 DEPOSITS AND INVESTMENTS At year end, the carrying amount of the County's deposits was $5,541,858 and the bank balance was $5,832,770. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro rata basis. Florida Statutes authorize the County to invest in certificates of deposit, repurchase agreements and the State Treasurer's Investment Pool. In addition, the statutes allow the County to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies. The County invested funds in the Florida State Board of Administration Local Governments Surplus Funds Investment Pool. At September 30, 2014, the market value and the carrying value of these funds was $97,543. The funds are carried as a cash equivalent on the balance sheet at September 30, 2014 (See Note 1 for definition of cash equivalents) and are included in carrying value and bank balance in the first paragraph of this note. 22
Notes to Financial Statements NOTE 4 DEPOSITS AND INVESTMENTS (CONTINUED) As a Florida PRIME participant, the County invests in a pool of investments whereby the County owns a share of the respective pool, not the underlying securities. The State Board of Administration s interpretation of GASB 31 is that the Florida PRIME is currently considered a Securities and Exchange Commission Rule 2a7 like fund, as of September 30, 2014. These investments are reported at fair value, which is amortized cost. As of September 30, 2014, the County had $97,543 invested in Florida PRIME. Additional information and investment policies regarding the Local Government Surplus Funds Trust Fund may be obtained from the State Board of Administration at www.sbafla.com/prime. The County invested funds in Certificate of Deposits with maturity dates greater than three months. At September 30, 2014, the market value and the carrying value of these funds was $26,400. These funds are carried as an investment on the balance sheet at September 30, 2014 and are included in carrying value and bank balance in the first paragraph of this note. CREDIT RISK The credit risk of certain investments, such as investment pools managed by other governments, cannot be categorized as to credit risk because the County investments are not evidenced by specific, identifiable investment securities. As of September 30, 2014, the County s investment in the Florida PRIME is rated by Standard and Poors and the current rating is AAAm. INTEREST RATE RISK The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2014, is 39 days. Next interest rate reset for floating rate securities are used in the calculation of the WAM. CUSTODIAL CREDIT RISK At September 30, 2014, the County did not hold any deposits or investments that were considered to have a custodial credit risk. CONCENTRATION OF CREDIT RISK At September 30, 2014, the County did not hold any investments that were considered to have a concentration of credit risk. 23
Notes to Financial Statements NOTE 5 INTERFUND BALANCES Interfund balances at September 30, 2014, consisted of the following: Receivable Fund Payable Fund General fund Affordable Housing (SHIP) $ 14,358 County Transportation Trust I 707 County Transportation Trust II 212,591 Nonmajor governmental funds Other special revenue funds: Weatherization 4,981 Neighborhood Revitalization 100 IDA 86,679 Inmate Welfare 5,917 Investigative Resources 1,251 Agency 22,652 Nonmajor governmental funds General Fund 3,125 Other special revenue funds 4,276 Agency Funds 19,169 Total $ 375,806 The general fund has amounts due to and from constitutional officers, which represent the return of excess monies due at the end of the fiscal year, from either budget officers or fee officers. All remaining balances resulted from the time lag between the dates that (a) interfund goods and services are provided or reimbursable expenditures occur, (b) transactions are recorded in the accounting system, and (c) payments between funds are made. Interfund transfers for the year ended September 30, 2014, consisted of the following: TRANSFERS IN TRANSFERS OUT General fund $ - $ 714,280 County Transportation Trust I 314,787 Special Revenue Funds: Library 269,656 Waste Management - 26,104 Sheriff's special revenue funds 155,941 Total $ 740,384 $ 740,384 Transfers from unrestricted general fund revenues finance transportation, library and public safety activities that are accounted for in other funds. 24
Notes to Financial Statements NOTE 6 CAPITAL ASSETS Capital asset activity for the year ended September 30, 2014, was as follows: BEGINNING ENDING BALANCE INCREASES DECREASES BALANCE Governmental activities: Capital assets, not being depreciated: Land and improvements $ 2,451,192 $ 310,927 $ $ 2,762,119 Historical buildings 660,423 660,423 Construction in progress 1,582,308 2,102,622 1,953,502 1,731,428 Total capital assets, not being depreciated 4,693,923 2,413,549 1,953,502 5,153,970 Capital assets, being depreciated: Buildings and improvements 11,236,734 1,294,664 12,531,398 Machinery and equipment 7,283,769 795,275 1,444,742 6,634,302 Machinery and equipment Sheriff 1,272,353 114,969 32,297 1,355,025 Intangibles 92,631 - - 92,631 Infrastructure 45,695,352 507,760 46,203,112 Total capital assets, being depreciated 65,580,839 2,712,668 1,477,039 66,816,468 Less: Total accumulated depreciation 19,322,202 3,188,727 1,341,739 21,169,190 Total capital assets, being depreciated, net 46,258,637 (476,059) 135,300 45,647,278 Governmental activities capital assets, net $ 50,952,560 $ 1,937,490 $ 2,088,802 50,801,248 Depreciation expense was charged to governmental activities functions/programs of the primary government as follows: Governmental activities General government $ 134,176 Public safety 285,997 Physical Environment 34,882 Transportation 2,538,562 Economic environment 41,091 Human services 25,024 Culture and recreation 111,669 Court related 17,326 Total depreciation expense governmental activities $ 3,188,727 25
Notes to Financial Statements NOTE 7 LONG TERM LIABILITIES Notes Payable Board Centennial Bank Note Payable to fund paving projects, payable in four annual principal payments of $187,500, beginning April 2013, and interest at 4.55% payable quarterly $ 375,038 Total notes payable $ 375,038 Debt service requirements on long term debt at September 30, 2014 are as follows: FISCAL YEAR ENDING NOTES PAYABLE SEPTEMBER 30, PRINCIPAL INTEREST 2015 $ 187,500 $ 14,410 2016 187,538 5,783 Total $ 375,038 $ 20,193 Long term debt activity for the year ended September 30, 2014, was as follows: DUE BEGINNING ENDING WITHIN BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR Governmental activities: Notes payable $ 562,538 $ $ 187,500 $ 375,038 $ 187,500 Othr post-employment benefits 134,000 28,000 162,000 Compensated absences 223,354 30,153 10,069 243,438 60,860 Total $ 919,892 $ 58,153 $ 197,569 $ 780,476 $ 248,360 Compensated absences Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net change in compensated absences payable is shown. 26
Notes to Financial Statements NOTE 8 EMPLOYEE BENEFITS The County and the elected officials participate in the Florida Retirement System (FRS), a cost sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399 1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. The Florida Legislature created the Florida Retirement Investment Plan ( FRS Investment Plan ), a defined contribution plan qualified under Section 401 (a) of the Internal Revenue Code. The FRS Investment Plan is administered by the Department of Management Services and is an alternative available to members of the Florida Retirement System in lieu of the defined benefit plan. Chapter 121, Florida Statutes, establishes the authority for benefit provisions and contribution requirements. Changes to the law can only occur through an act of the Florida Legislature. For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost of living adjustments. Generally, membership is compulsory for all full time and part time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers pay contributions at rates determined each year by the legislature. The rates, as a percentage of gross earnings, are as follows: 10/01/13 6/30/14 07/01/14 09/30/14 Regular class 6.95% 7.37% Senior management 18.31% 21.14% Elected county officials' class 33.03% 43.24% Special risk class 19.06% 19.82% DROP program participants 12.84% 12.28% 27
Notes to Financial Statements NOTE 8 EMPLOYEE BENEFITS (CONTINUED) Contribution rates equal actuarial determined rates. For the period October 01, 2013 through September 30, 2014, the total payroll for all employees and the retirement contributions for all employees covered by FRS were as follows: Payroll Retirement Expense Contributions Board of County Commissioners $ 1,550,706 $ 160,423 Clerk of the Circuit Court 492,858 69,344 Sheriff 1,139,375 172,574 Property Appraiser 260,425 24,801 Tax Collector 234,408 44,143 Supervisor of Elections 136,309 32,388 Total $ 3,814,081 $ 503,673 The County s contributions to the Plan for the years ended September 30, 2014, 2013 and 2012 were $503,673, $331,623 and $282,756 respectively, which equal the required contributions. For the year ended September 30, 2014, retirement contributions represent 13.21% of the County s total covered payroll. Effective July 1, 1998, the Legislature established a Deferred Retirement Option Program (DROP). This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed sixty months after electing to participate. Deferred monthly benefits are held in the Florida Retirement System Trust Fund and accrue interest. NOTE 9 OTHER DISCLOSURES Local Ordinance 2009 2, adopted on June 16, 2009 and expiring on January 1, 2020, extended the sixcents per gallon motor fuel and special fuel gas tax. The tax has been in existence since 1990 and renews at ten year intervals. Local Ordinance 2008 2, adopted on April 15, 2008 and in effect until repealed by an extraordinary vote of the Board of County Commissioners, extended the 1% discretionary sales surtax to be used for general operating purposes. The tax generates approximately $650,000 in annual revenue. The tax has been in existence since 1993. 28
Notes to Financial Statements NOTE 10 GRANTS The County participates in several state and federal grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the year ended September 30, 2014, have not yet been accepted/approved by the grantors. Accordingly, the final determination of the County's compliance with applicable grant requirements will be established at a future date. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined, although the County expects such amounts, if any, to be immaterial. NOTE 11 EMERGENCY MEDICAL AND AMBULANCE SERVICES The County contracted with Calhoun Liberty Hospital Association, Inc. (Hospital) to provide EMS services through September 2014 at a cost of $240,000 per year. NOTE 12 RISK MANAGEMENT The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The County is a member of the Florida Association of Counties Trust (the Trust) for its general liability insurance coverage. The County pays an annual premium to the Trust. The Trust is to be self sustaining through member premiums and will reinsure through commercial companies for certain claims. The County continues to purchase commercial insurance to cover its other risks of loss. Insurance against losses are provided for the following types of risk: Workers' compensation and employer's liability General and automobile liability Real and personal property damage Public officials' liability Accidental death and dismemberment Inmate major medical The County's coverage for workers' compensation is under a retrospectively rated policy. Premiums are accrued based on the ultimate cost to date of the County's experience for this type of risk. The Sheriff participates in the Florida Sheriff's Self Insurance Fund Program, which is a public entity risk pool that permits the Sheriff to cover risk relating to professional liability, public officials' liability, public employees' blanket bond, and money and securities coverage. The Sheriff purchases commercial insurance to cover other risks and losses for use of a helicopter. The funding agreements provide that the self insurance fund will be self sustaining through member premiums and that the Sheriff's liability fund will reinsure through commercial companies. 29
Notes to Financial Statements NOTE 13 FUND BALANCE Fund balances are classified based upon a hierarchy of the County s ability to control spending of these fund balances and can be classified in the following categories: Non spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The County had $114,157 in nonspendable net assets which represents prepaid balance at September 30, 2014. Spendable fund balances are classified based on a hierarchy of the County s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2014, the County reports net position as restricted, committed, assigned and unassigned. Restricted net position has externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed net position has amounts constrained by a specific purpose by the Board of County Commissioners. Assigned net position has constraints placed on the use of resources by the County s intent to use the resources for specific purposes. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. 30
Notes to Financial Statements NOTE 13 FUND BALANCE (CONTINUED) At September 30, 2014, fund balance is comprised of the following: Restricted Fund Balance: Funds Special Revenue Fund Purpose County Transportation I $ 884,043 County Transportation II 101,651 Nonmajor governmental funds: Domestic Violence 15,230 Boating improvement program 26,901 Police Education 1,390 Radio Communications 6,234 Library 215,899 Waste management 119,290 Crime prevention 33,570 Industrial development authority 118,040 Courthouse facilities 104,693 Teen court 16,994 Voter education 2,509 Moderization of public records 13,348 Court related technology 10,942 Emergency 911 operations 25,344 Drug enforcement 85,009 Inmate welfare 36,963 Court related operational needs 1,785 Total nonmajor governmental funds 834,141 Total restricted fund balance $ 1,819,835 Committed Fund Balance: Funds Purpose Special Revenue Fund Old Courthouse Restoration $ 71,407 Total committed fund balance $ 71,407 31
Notes to Financial Statements NOTE 13 FUND BALANCE (CONTINUED) Non spendable Fund Balance: Funds Purpose Funding for: General Fund Prepaid expenses $ 92,144 Conty Transportation Trust I Prepaid expenses 22,013 Total non spendable fund balance $ 114,157 NOTE 14 AGRI PARK FACILITIES The County owns a 314 acre agri park located on Highway 71, north of Blountstown. Situated thereon are hangar facilities, a 3100 foot paved aircraft runway, a commercial building, and a water tank. NOTE 15 LITIGATION AND CONTINGENT LIABILITIES The County is involved in various litigation arising from the ordinary course of business. In the opinion of management, after consultation with legal counsel, these matters will be resolved without a material adverse effect on the County's financial position. NOTE 16 COOPERATIVE AGREEMENT The Clerk has a Cooperative Agreement with the Florida Department of Revenue. This agreement encompasses all the Clerk s child support functions. It allows for indirect cost reimbursement. The Clerk uses an established indirect cost rate to invoice the Department of Revenue each month. These amounts are federal funds received under CFDA #93.563. The net amount received was $100,246. 32
NOTE 17 POST EMPLOYMENT BENEFITS OTHER THAN PENSION Notes to Financial Statements Plan Description The County has implemented Governmental Accounting Standards Board Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions for retiree health insurance. The Calhoun County Retiree Healthcare Plan (Plan) is a single employer defined benefit healthcare plan which provides Other Postemployment Benefits (OPEB) to eligible retirees and their eligible dependents. Pursuant to the provisions of Section 112.0801, the Florida Statutes, employees who retire from the County and eligible dependents, may continue to participate in the group health insurance plan. Retirees and their eligible dependents shall be offered the same health insurance coverage as is offered to active employees at a premium cost of no more than the premium cost applicable to active employees. The Plan does not issue a publicly available financial report. Eligibility for participation in the Plan is limited to full time employees of the County, if the criteria have been met to qualify for retirement benefits. See Note 8. Benefits Provided The County provides post employment healthcare to its retirees. Health benefits are provided through the County s healthcare provider, Capital Health Plan (CHP).The benefit levels are the same as those afforded to active employees. Health benefits include inpatient and outpatient medical services and prescriptions. Membership At September 30, 2014, there were no terminated employees entitled to benefits but not yet receiving them. The membership of the Plan consisted of: Active employees 82 Retirees and beneficiaries currently receiving benefits 1 Total membership 83 Participating employers 1 Funding Policy A qualifying trust or agency fund has not been authorized by the County. The County negotiates the premium rates with CHP. The required contribution is based on pay as you go financing requirements. Retirees and employees with dependent coverage are required to contribute 100% of their current premium costs. The annual premium for retirees or dependent coverage is $5,488. The chart below shows the cost of the monthly retiree premiums at September 30, 2014. CHP Coverage CHP (SHERIFF) Retiree $ 457.34 $ 417.26 Retiree & Dependent $ 914.68 $ 876.24 33
NOTE 17 POST EMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Notes to Financial Statements Annual OPEB and Net OPEB Obligation The County s annual other post employment benefit (OPEB) cost (expenses) is calculated based on the annual required contribution of the employer (the ARC ) actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a 10 year open period. The following shows the components of the County s net OPEB obligation: September 30, 2014 Annual required contribution $ 46,000 Interest on prior year net OPEB obligation 4,000 Adjustments to annual required contribution (13,000) Annual OPEB costs 37,000 Estimated employer contribution made (9,000) Increase (decrease) in net OPEB obligation 28,000 Net OPEB obligation, beginning of year 134,000 Estimated net OPEB obligation, end of year $ 162,000 The County s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net OPEB obligation for 2014 and the prior two (2) years were as follows: Fiscal Year Annual Percentage of OPEB Net OPEB Ended OPEB Costs Cost Contributed Obligation 9/30/2012 $ 37,000 24% $ 106,000 9/30/2013 $ 37,000 24% $ 134,000 9/30/2014 $ 37,000 24% $ 162,000 Funded Status and Funding Progress As of September 30, 2014, the actuarial accrued liability of $183,000 was unfunded. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the ARC s of employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multi year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 34
NOTE 17 POST EMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Schedule of Funding Progress Notes to Financial Statements Unfunded UAAL as a Actuarial Actuarial Actuarial Actuarial Percentage Valuation Value of Liabilities Liabilities Funded Covered Of Covered Date Assets (AAL) (UAAL) Ratio Payroll Payroll 10/1/2010 $ $ 187,000 $ 187,000 0.00% $ 2,664,000 7.0% 10/1/2012 $ $ 177,000 $ 177,000 0.00% $ 2,745,000 6.4% Actuarial Method and Assumptions The valuation dated October 1, 2012, for the fiscal date of October 1, 2011 to September 30, 2014, was prepared using generally accepted accrual principles and practices, and relied on unaudited census date and medical claims data reported by the County. Projections of benefits for financial reporting purposes are based on the substantive plan (the Plan as understood by the employer and the Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used included techniques that are designed to reduce the effects of short term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long term perspective of the calculations. The initial OPEB actuarial valuation method used for the County was the projected unit credit cost method. This method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. Because the OPEB liability is currently unfunded, the actuarial assumption included a 4.00% investment rate of return on investments for the County. The actuarial assumption also includes inflation at 2.75% per annum. Medical and drug cost trend rate is 9.00% for the fiscal year ended September 30, 2014, gradually decreasing to future rate of 5.0% for the fiscal year ended September 30, 2021. The Unfunded Actuarial Accrued Liability (UAAL) is being amortized over a 10 year open period. 35
Notes to Financial Statements NOTE 18 COMMITMENTS AND SUBSEQUENT EVENTS Calhoun County s general fund construction contractual obligations at September 30, 2014 were approximately $1,700,000. The construction commitments include general fund, airport and road improvement projects funded by federal, state and local grant funding. In the Spring of 2014, sustained damage as a result of the North Florida Severe Storms and Flooding event. Calhoun County was included in the major disaster declaration (DR 4177) and is eligible for assistance from the Federal Emergency Management Agency (FEMA) for project repairs/expenditures. Damage assessments by the State of Florida for Calhoun County are approximately $20.8 million. These approved projects will be funded by Federal grants at 75% of eligible costs, State funding at 12.5% of eligible costs and Local match at 12.5%. The County has requested a waiver from the State of the local match requirement. 36
SUPPLEMENTARY INFORMATION
Page 1 of 3 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014 Sheriff's Industrial Waste Neighborhood Special Development Management Revitalization Revenue Authority Grants Project Weatherization Funds Assets Cash and cash equivalents $ 22,233 $ 78,468 $ 100 $ 859 $ 118,102 Investments Accounts receivable 1,447 16,354 2,334 Due from other funds 9,130 Due from other governmental units 296,697 25,908 17,088 32,984 Total assets $ 320,377 $ 120,730 $ 100 $ 17,947 $ 162,550 Liabilities Accounts payable and accrued expenses $ 110,391 $ 1,440 $ $ 12,966 $ 2,706 Due to other funds 86,679 100 4,981 12,528 Due to other governmental units Deferred revenue 5,267 Fund balances Total liabilities 202,337 1,440 100 17,947 15,234 Restricted 118,040 119,290 147,316 Committed Total fund balances 118,040 119,290 147,316 Total liabilities and fund balances $ 320,377 $ 120,730 $ 100 $ 17,947 $ 162,550 37
Page 2 of 3 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014 Boating Old Supervisor Article V Improvement Courthouse of Elections' Domestic Grant Fund Library Program Restoration Grants Fund Violence Assets Cash and cash equivalents $ 77,751 $ 207,018 $ 26,630 $ 71,407 $ 7,401 $ 15,230 Investments 26,400 Accounts receivable 76 Due from other funds 271 Due from other governmental units 86 Total assets $ 77,751 $ 233,580 $ 26,901 $ 71,407 $ 7,401 $ 15,230 Liabilities Accounts payable and accrued expenses $ 742 $ 16,981 $ $ $ $ Due to other funds Due to other governmental units Deferred revenue 77,009 700 4,892 Fund balances Total liabilities 77,751 17,681 4,892 Restricted 215,899 26,901 2,509 15,230 Committed 71,407 Total fund balances 215,899 26,901 71,407 2,509 15,230 Total liabilities and fund balances $ 77,751 $ 233,580 $ 26,901 $ 71,407 $ 7,401 $ 15,230 38
Page 3 of 3 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014 Total Clerk's Clerk's Other Nonmajor Article V Modernization Courthouse Special Governmental Fund Trust Fund Facilities Revenue Funds Assets Cash and cash equivalents $ 77,130 $ 24,185 $ 103,030 $ 52,133 $ 881,677 Investments 26,400 Accounts receivable 20,211 Due from other funds 12,361 1,890 1,663 1,255 26,570 Due from other governmental units 5,403 378,166 Total assets $ 89,491 $ 26,075 $ 104,693 $ 58,791 $ 1,333,024 Liabilities Accounts payable and accrued expenses $ 10,212 $ $ $ 603 $ 156,041 Due to other funds 104,288 Due to other governmental units 59,606 59,606 Deferred revenue 19,673 107,541 Fund balances Total liabilities 89,491 603 427,476 Restricted 26,075 104,693 58,188 834,141 Committed 71,407 Total fund balances 26,075 104,693 58,188 905,548 Total liabilities and fund balances $ 89,491 $ 26,075 $ 104,693 $ 58,791 $ 1,333,024 39
For the year ended September 30, 2014 Page 1 of 3 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Sheriff's Industrial Waste Neighborhood Special Development Management Revitalization Revenue Authority Grants Project Weatherization Funds Revenues Permits, fees and special assessment $ $ $ $ $ Intergovernmental 84,000 Charges for services 39,952 Fines and forfeitures Grants 876,041 73,807 67,691 76,223 Investment earnings 31 20 Contributions and donations 2,811 Other fees and miscellaneous 244,063 Total revenue 1,120,135 73,807 67,691 203,006 Expenditures Current: General government Public health and safety 327,630 Physical environment 77,154 Transportation 223,458 Economic environment 67,691 Human services Culture and recreation Court related Capital outlay 885,115 7,600 10,817 Total expenditures 1,108,573 84,754 67,691 338,447 Excess of revenues over (under) expenditures 11,562 (10,947) (135,441) Other financing sources (uses) Operating transfers in 155,941 Operating transfers out (26,104) Transfers from State of Florida Transfers to State of Florida Net other financing sources (uses) (26,104) 155,941 Net change in fund balances 11,562 (37,051) 20,500 Fund balances beginning 106,478 156,341 126,816 Fund balances ending $ 118,040 $ 119,290 $ $ $ 147,316 40
For the year ended September 30, 2014 Page 2 of 3 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Boating Old Supervisor Article V Improvement Courthouse of Elections' Domestic Grant Fund Library Program Restoration Grant Fund Violence Revenues Permits, fees and special assessment $ $ $ 3,977 $ $ $ Intergovernmental 38,954 Charges for services 5,263 589 Fines and forfeitures 1,804 Grants 17,534 171,246 Investment earnings 44 149 3 Contributions and donations 1,621 Other fees and miscellaneous 9,421 208 Total revenue 17,578 228,458 3,977 211 589 Expenditures Current: General government Public health and safety Physical environment Transportation Economic environment Culture and recreation 525,048 1,192 Court related 17,578 Capital outlay Total expenditures 17,578 525,048 1,192 Excess of revenues over (under) expenditures (296,590) 3,977 (1,192) 211 589 Other financing sources (uses) Operating transfers in 269,656 Transfers from State of Florida Transfers to State of Florida Net other financing sources (uses) 269,656 Net change in fund balances (26,934) 3,977 (1,192) 211 589 Fund balances beginning 242,833 22,924 72,599 2,298 14,641 Fund balances ending $ $ 215,899 $ 26,901 $ 71,407 $ 2,509 $ 15,230 41
For the year ended September 30, 2014 Page 3 of 3 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Total Clerk's Clerk's Other Nonmajor Article V Modernization Courthouse Special Governmental Fund Trust Fund Facilities Revenue Funds Revenues Permits, fees and special assessment $ $ $ $ $ 3,977 Intergovernmental 122,954 Charges for services 138,214 13,521 24,111 12,329 233,979 Fines and forfeitures 77,865 16,807 7,405 103,881 Grants 1,282,542 Investment earnings 31 13 291 Contributions and donations 5,400 9,832 Other fees and miscellaneous 253,692 Total revenue 216,110 30,341 24,111 25,134 2,011,148 Expenditures Current: General government 30 30 Public health and safety 30,214 357,844 Physical environment 77,154 Transportation 223,458 Economic environment 67,691 Culture and recreation 526,240 Court related 410,106 21,714 3,330 2,871 455,599 Capital outlay 8,166 1,400 913,098 Total expenditures 418,272 23,144 3,330 33,085 2,621,114 Excess of revenues over (under) expenditures (202,162) 7,197 20,781 (7,951) (609,966) Other financing sources (uses) Operating transfers in 425,597 Operating transfers out (26,104) Transfers from State of Florida 232,100 232,100 Transfers to State of Florida (29,938) (29,938) Net other financing sources (uses) 202,162 601,655 Net change in fund balances 7,197 20,781 (7,951) (8,311) Fund balances beginning 18,878 83,912 66,139 913,859 Fund balances ending $ $ 26,075 $ 104,693 $ 58,188 $ 905,548 42
Page 1 of 2 Combining Statement of Fiduciary Net Position Agency Funds September 30, 2014 Clerk General Child Jury and Trust Support Witness Assets Cash and cash equivalents $ 82,923 $ 2,440 $ 1,440 Due from other funds 53 1,600 Due from other governments 198 Due from individuals 237 Total assets $ 83,160 $ 2,691 $ 3,040 Liabilities Due to other funds $ 16,925 $ 1,600 $ Due to Board of County Commissioners 12,682 1,042 1,050 Due to other governmental units 20,279 1,990 Due to individuals 33,274 49 Total liabilities $ 83,160 $ 2,691 $ 3,040 43
Page 2 of 2 Combining Statement of Fiduciary Net Position Agency Funds September 30, 2014 Sheriff Tax Collector Inmate Trust Tax Tag Totals Assets Cash and cash equivalents $ 4,197 $ 203,772 $ 41,781 $ 336,553 Due from other funds 36 1,689 Due from other governments 11,996 12,194 Due from individuals 374 611 Total assets $ 4,197 $ 203,808 $ 54,151 $ 351,047 Liabilities Due to other funds $ 644 $ $ $ 19,169 Due to Board of County Commissioners 125 8,322 23,221 Due to other governmental units 203,683 45,829 271,781 Due to individuals 3,553 36,876 Total liabilities $ 4,197 $ 203,808 $ 54,151 $ 351,047 44
INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, 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 the Government Auditing Standards issued by the Comptroller of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of (the County ) as of and for the year ended September 30, 2014, which collectively comprise s basic financial statements and have issued our report thereon dated June 15, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County s internal control. Accordingly, we do not express an opinion on the effectiveness of the County s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the County 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 and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses and significant deficiencies may exist that were not identified. 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. We did identify certain deficiencies in internal control, described in the accompany schedule of findings and questioned costs as items 04 01 and 04 02 that we consider to be significant deficiencies. 45
To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that is required to be reported under Government Auditing Standards. Calhoun County s Response to Findings s response to the findings identified in our audit is described in the accompanying letter. We did not audit s response 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. June 15, 2015 46
INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A 133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Report on Compliance for Each Major Federal Program and State Project We have audited s (the County ) compliance with the types of compliance requirements described in the U. S. Office of Management and Budget OMB Circular A 133 Compliance Supplement) and the requirements described in the Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the County s major federal programs and state projects for the year ended September 30, 2014. The County s major federal programs and major state projects are identified in the summary of auditor s results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of the County s major federal programs and major state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A 133, Audits of States, Local Governments, and Non Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A 133 and Chapter 10.550, Rules of the Auditor General require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or major state project occurred. An audit includes examining, on a test basis, evidence about the County s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and major state project. However, our audit does not provide a legal determination of the County s compliance. 47
To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Opinion on Each Major Federal Program and State Project In our opinion, the County, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs or major state projects for the year ended September 30, 2014. Report on Internal Control Over Compliance Management of the County, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program and major state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and major state project and to test and report on internal control over compliance in accordance with OMB Circular A 133 and 10.550, Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program 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. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A 133 and 10.550, Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose. June 15, 2015 48
Page 1 of 4 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014 Federal Agency Contract/ Pass through entity CFDA Grant Federal Award Programs Number Number Expenditures United States Department of Homeland Security Pass through Florida Department Of Emergency Management Hazard Mitigation Grant Program: Wind Retrofit Project 97.039 13HM 2W 02 17 01 487 $ 132,528 Chipola Road Stormwater Drainage 97.039 14HM 2Z 02 17 01 330 121,278 Total Hazard Mitigation Grants 253,806 Pass through Florida Department of Economic Opportunity Disaster #4177 97.036 15 SP 8Z 02 17 02 503 113,838 Total Disaster Grants 113,838 Emergency Management Performance Grant 97.042 14 FG 1M 02 17 01 074 27,164 Emergency Management Performance Grant 97.042 15 FG 1M 02 17 01 074 2,169 Total Emergency Management Performance Grants 29,333 National Directorate FY 2012 State Homeland Security Grant Program 97.067 12 DS 20 17 01 405 15,000 National Directorate FY 2013 State Homeland Security Grant Program 97.067 14 DS C2 02 17 01 171 14,200 Total National Directorate State Homeland Security Grant Program 29,200 Total United States Department of Homeland Security 426,177 United States Department of Transportation Federal Aviation Administration Airport Improvement Programs 20.106 3 12 0158 005 2013 327,756 Pass through Florida Department of Transportation Local Agency Program Agreement CR69A Paved Shoulder Project 20.205 429852 1 38 1/429852 2 38 1 (AQI33) 15,500 Local Agency Program Agreement Chipola Road Sidewalk Project 20.205 4333566 1 38 1 894 Total Local Agency Program Agreement 16,394 Total United States Department of Transportation 344,150 United States Department of Health and Human Services, Agency for Children and Families Pass through Florida Department of Revenue: Child Support Enforcement Child Support Enforcement Title IVD 93.563 CD307 100,246 Child Support Enforcement Title IVD 93.563 CSS07 911 Child Support Enforcement Title IVD 93.563 CST07 238 Total Child Support Enforcement 101,395 Total United States Department of Health and Human Services 101,395 United States Department of Justice Pass through Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant JAGD Countywide Edward Byrne Memorial Justice Assistance Grant 16.738 2014 JAGD CALH 1 E5 049 44,909 JAGD Block Grant 16.738 2014 JAGD CALH 1 E6 034 1,000 Total Edward Byrne Memoria Justice Assistance Grant 45,909 Crime Victim Assistance Victims of Crime Act (VOCA) 16.575 V 13341 45,112 Bulletproof Vest Partnership Program 16.607 N/A 3,339 Total United States Department of Justice 94,360 49
Page 2 of 4 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014 Federal Agency Contract/ Pass through entity CFDA Grant Federal Award Programs Number Number Expenditures United States Department of Energy Pass through Florida Department of Economic Opportunity: Weatherization Assistance For Low Income Persons Weatherization Assistance 81.042 13WX 9Z 02 17 01 006 50,603 Weatherization Assistance 81.042 14WX 0G 02 17 01 006 17,088 Total United States Department of Energy 67,691 United States Department of Agriculture Emergency Watershed Protection Program Natural Resources Conservation Service 10.923 68 4209 14 106 45,915 Total United States Department of Agriculture 45,915 Total expenditures of Federal Awards $ 1,079,688 50
Page 3 of 4 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014 State Agency State Grant/ Pass Through Entity CSFA Contract State Financial Assistance Projects Number Number Expenditures Florida Department of Transportation Transportation Systems Operations County Incentive Grant Program (CIGP) CR69 55.008 407222 2 58 01 $ 521,542 Small County Outreach Program (SCOP) CR392 55.009 431279 1 58 01 102,416 Small County Road Assistance Program (SCRAP) Silas Green 55.016 435196 1 58 01 6,051 Total Transportation Systems Operations 630,009 Aviation Development Grants Aviation Development Grants 55.004 AQS90 310,627 Aviation Development Grants 55.004 AQS91 203,493 Aviation Development Grants 55.004 AQS92 25,100 Aviation Development Grants 55.004 AQT12 5,581 Aviation Development Grants 55.004 A0780 3,484 Total Aviation Development Grants 548,285 Total Florida Department of Transportation 1,178,294 Florida Housing Finance Corporation State Housing Initiatives Partnership Program State Housing Initiatives Partnership Program 52.901 13/14 322,733 State Housing Initiatives Partnership Program 52.901 14/15 17,985 State Housing Initiatives Partnership Program 52.901 12/13 14,374 Total Florida Housing Finance Corporation 355,092 Florida Department of Economic Opportunity Rural Infrastructure Fund Agreement 40.013 RIF12 001 161,359 Total Florida Department of Economic Opportunity 161,359 Florida Executive Office of the Govenor Emergency Management Programs Emergency Management Assistance 31.063 14 BG 83 02 17 01 007 80,325 Emergency Management Assistance 31.063 15 BG 83 02 17 01 007 37,785 Total Emergency Management Assistance 118,110 Hurricance Shelter Retrofit Project 31.068 15 SR 94 02 17 01 142 337 Residential Construction Mitigation Program 31.006 14 RC 6V 02 17 01 206 45,897 Disaster #4177 31.xxx n/a 18,973 Total Florida Office of the Govenor 183,317 Florida Department of State Division of Library and Information Services: Library Resources 45.030 14 ST 66 171,246 Total Florida Department of State 171,246 Florida Department of Environmental Protection Small County Grants 37.012 403SC 73,807 Florida Recreation Development Assistance Program 37.017 A4247 17,246 Total Florida Deparment of Environmental Protection 91,053 51
Page 4 of 4 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014 State Agency State Grant/ Pass Through Entity CSFA Contract State Financial Assistance Projects Number Number Expenditures Florida Department of Management Services E911 State Grant Program 2013/14 Rural County Grant Spring Program 72.002 14 4 4 13,699 2013/14 Rural County Grant Spring Program 72.002 13 10 29 9,817 2013/14 Rural County Grant Spring Program 72.002 13 10 3 6,799 Total E911 State Grant Program 30,315 Total Florida Department of Mangement Services 30,315 Florida State Court System County Article V Trust Fund Small County Courthouse Facilities 22.004 n/a 17,534 Total Florida State Court System 17,534 Total State Financial Assistance 2,188,210 Total Federal Awards and State Financial Assistance $ 3,267,898 52
Notes to Schedule of Expenditures of Federal Awards And State Financial Assistance For the year ended September 30, 2014 NOTE 1 BASIS OF ACCOUNTING The supplementary schedule of expenditures of federal award programs and state financial assistance projects includes the grant activity of (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement of OMB Circular A 133, Audits of States, Local Governments, and Non Profit Organizations and Chapter 10.550, Rules of the Auditor General. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2 REPORTING ENTITY The County for purposes of the supplementary schedule of expenditures of federal award programs and state financial assistance projects includes all the funds of the primary government as defined by GASB 14, The Financial Reporting Entity. NOTE 3 PASS THROUGH AWARDS The County receives certain federal awards from pass through awards of the State. The total amount of such pass through awards is included on the supplementary schedule of expenditures of federal awards and state financial assistance. 53
Schedule of Findings and Questioned Costs For the year ended September 30, 2014 A. SUMMARY OF AUDIT RESULTS 1. The Independent Auditors' Report expresses an unmodified opinion on the financial statements of. 2. Significant deficiencies disclosed during the audit of the financial statements are reported in the "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." These significant deficiencies are not considered material weaknesses. 3. No instances of noncompliance material to the financial statements of were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs and state financial assistance projects are reported in the Independent Auditors Report on Compliance For Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A 133 and Chapter 10.550, Rules of the Auditor General. 5. The Independent Auditors Report on Compliance For Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A 133 and Chapter 10.550, Rules of the Auditor General for expresses an unmodified opinion. 6. No audit findings relative to the major federal award programs and state financial assistance projects for are reported in this schedule. 7. The programs/projects tested as major programs/projects included the following: Federal Programs CFDA No. U.S. Department of Homeland Security, Hazard Mitigation Grant Programs 97.039 Federal Aviation Administration, Airport Improvement Program 20.106 State Projects CSFA No. Florida Department of Transportation, Aviation Development Grants 55.004 Florida Department of Transportation County Incentive Grant Program 55.008 Florida Housing Finance Corporation State Housing Initiatives Partnership Program 52.901 54
A. SUMMARY OF AUDIT RESULTS (CONTINUED) Schedule of Findings and Questioned Costs For the year ended September 30, 2014 8. The threshold for distinguishing Type A and Type B programs/projects was $300,000 for major federal award programs and $300,000 for major state financial assistance projects. 9. did not qualify as a low risk auditee pursuant to OMB Circular A 133. B. FINDINGS FINANCIAL STATEMENTS AUDIT There were no current year audit findings. C. FINDINGS AND QUESTIONED COSTS MAJOR FEDERAL AWARD PROGRAMS There were no current year audit findings. D. FINDINGS AND QUESTIONED COSTS MAJOR STATE FINANCIAL ASSISTANCE PROJECTS There were no current year audit findings. E. OTHER ISSUES 1. No Corrective Action Plan is required because there were no findings required to be reported under the federal or Florida Single Audit Acts. 55
PRIOR YEAR AUDIT FINDINGS AND QUESTIONED COSTS SUPERVISOR OF ELECTIONS AND PROPERTY APPRAISER NEED FOR SEGREGATION OF DUTIES, FINDING 04 01, NOT RESOLVED Summary Schedule of Prior Audit Findings For the year ended September 30, 2014 COMMENT: Separation of certain accounting and administrative duties among employees, which is recommended as an effective internal control procedure, was not considered feasible because of size and limited number of employees. RECOMMENDATION: While we recognize the small size of these offices make it impractical to provide total separation of incompatible duties, we do feel it is important that these offices are aware of this condition. STATUS: This item continues to exist. SHERIFF AND TAX COLLECTOR NEED FOR SEGREGATION OF DUTIES, FINDING 04 02, NOT RESOLVED COMMENT: Separation of certain accounting and administrative duties among employees, which is recommended as an effective internal control procedure, was not adequate. RECOMMENDATION: This is due to the limited number of employees, and certain incompatible duties being performed by the same employee. These offices recognize that the cost of its internal control structure should not exceed the benefits expected to be derived and the inherent limitations of any internal control structure. Mistakes and irregularities may occur in any event with or without an adequate internal control structure. Furthermore, adequate segregation of duties can be circumvented by collusion among persons. Nevertheless, internal control is strengthened when incompatible duties are separated and review procedures are established and adhered to. STATUS: This item continues to exist. 56
To the Honorable Board of County Commissioners of Blountstown, Florida INDEPENDENT AUDITORS MANAGEMENT LETTER We have audited the financial statements of (the County ) as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated June 15, 2015. Auditors Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A 133, Audits of States, Local Governments, and Non Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedules We have issued our Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors Report on Compliance For Each Major Federal Program and State Project and on Internal Control over Compliance Required By OMB A 133 and Chapter 10.550 Rules of the Florida Auditor General; Schedule of Findings and Questioned Costs; and Independent Accountants Report on an examination conducted in accordance with AICPA Profession Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated June 15, 2015 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report except as noted in the Summary Schedule of Prior Audit Findings. - 57 -
To the Honorable Board of County Commissioners and Constitutional Officers of Blountstown, Florida Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to the financial statements. Financial Condition Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management s responsibility to monitor the County s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine whether the annual financial report for for the fiscal year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2014. In connection with our audit, we determined that these two reports were in agreement. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. - 58 -
To the Honorable Board of County Commissioners and Constitutional Officers of Blountstown, Florida Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but, which warrants the attention of those charges with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. June 15, 2015-59 -
INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES To the Honorable Board of County Commissioners of Blountstown, Florida We have examined s compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the s compliance with those requirements. Our responsibility is to express an opinion on the s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the s compliance with specified requirements. In our opinion, the complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. 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. June 15, 2015-60 -
- 61 - Management s Response
- 62 - Management s Response
- 63 - Management s Response
- 64 - Management s Response
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Clerk of the Circuit Court Special-Purpose Financial Statements September 30, 2014
Clerk of the Circuit Court Table of Contents September 30, 2014 REPORT Independent Auditors Report 1 SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet - Governmental Funds 3 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 4 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 5 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Court Article V Fund 6 Special-Purpose Statement of Fiduciary Net Position - Agency Funds 7 Notes to Special-Purpose Financial Statements 8 SUPPLEMENTARY INFORMATION Combining Special-Purpose Statement of Fiduciary Net Position - Agency Funds 18 Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 19 Independent Accountants' Report on Compliance with Section 218.415, Florida Statutes, Local Government Investment Policies 21 Independent Accountants' Report on Compliance with Section 28.35, Florida Statutes, Florida Clerks of Court Operations Corporation, and Section 28.36, Florida Statutes, Budget Procedure 22 Independent Auditors Management Letter 23
REPORT
INDEPENDENT AUDITORS' REPORT To the Honorable Carla A. Hand Clerk of Circuit Court of Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Clerk of the Circuit Court (the Clerk ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Clerk s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these special-purpose 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 special-purpose 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 the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose 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 special-purpose 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 Clerk 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 special-purpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
To the Honorable Carla A. Hand Clerk of the Circuit Court of Blountstown, Florida As discussed in Note 1 to the financial statements, the Clerk s financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Clerk. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Clerk. Opinion In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and fiduciary fund type of the Clerk as of September 30, 2014, and the respective changes in financial position and the respective budgetary comparison for the General Fund and the Major Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Clerk s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2015 on our consideration of the Clerk s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk s internal control over financial reporting and compliance. June 1, 2015
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Clerk of the Circuit Court Special-Purpose Balance Sheet Governmental Funds September 30, 2014 Total General Court Modernization Governmental Fund Article V Trust Fund Funds Assets Cash and cash equivalents $ 95,315 $ 77,130 $ 24,185 $ 196,630 Due from other funds 2,621 12,414 1,890 16,925 Due from other governmental units 19,035 - - 19,035 Due from individuals 267 - - 267 Total assets $ 117,238 $ 89,544 $ 26,075 $ 232,857 Liabilities Accounts payable and accrued expenses $ 12,743 $ 10,212 $ - $ 22,955 Due to other funds - 53-53 Due to Board of County Commissioners 44,497 - - 44,497 Due to other governmental units - 59,606-59,606 Deferred revenue 750 19,673-20,423 Total liabilities 57,990 89,544-147,534 Fund balances Restricted - - 26,075 26,075 Unassigned 59,248 - - 59,248 Total fund balances 59,248-26,075 85,323 Total liabilities and fund balances $ 117,238 $ 89,544 $ 26,075 $ 232,857 See accompanying notes to financial statements -3-
Clerk of the Circuit Court Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the year ended September 30, 2014 Major Funds Non-major Fund Total General Court Modernization Governmental Fund Article V Trust Fund Funds Revenues Charges for services $ 38,851 $ 138,214 $ 13,521 $ 190,586 Fines and forfeitures - 77,867 16,807 94,674 Grants 100,246 - - 100,246 Investment earnings 2,669 31 13 2,713 Other fees and miscellaneous 718 - - 718 Total revenues 142,484 216,112 30,341 388,937 Expenditures Current: General government: Personal services 257,494 - - 257,494 Operating expenses 55,891-30 55,921 Court-related: Personal services 18,836 380,493-399,329 Operating expenses 721 29,615 21,714 52,050 Capital outlay: General government 36,201 - - 36,201 Court-related - 8,166 1,400 9,566 Total expenditures 369,143 418,274 23,144 810,561 Excess of revenues over (under) expenditures (226,659) (202,162) 7,197 (421,624) Other financing sources (uses) Appropriations from Board of County Commissioners 271,333 - - 271,333 Reversion to Board of County Commissioners (44,710) - - (44,710) Transfer from State of Florida - 232,100-232,100 Transfer to State of Florida - (29,938) - (29,938) Net other financing sources (uses) 226,623 202,162-428,785 Net change in fund balances (36) - 7,197 7,161 Fund balances - beginning 59,284-18,878 78,162 Fund balances - ending $ 59,248 $ - $ 26,075 $ 85,323 See accompanying notes to financial statements -4-
Clerk of the Circuit Court Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund For the year ended September 30, 2014 Variance with Final Budget Original Final Actual Favorable Budget Budget Amounts (Unfavorable) Revenues Charges for services $ 20,000 $ 20,000 $ 38,851 $ 18,851 Grants 40,000 95,000 100,246 5,246 Investment earnings 2,000 2,000 2,669 669 Other fees and miscellaneous - 469 718 249 Total revenues 62,000 117,469 142,484 25,015 Expenditures Current: General government: Personal services 265,953 259,638 257,494 2,144 Operating expenses 51,300 63,515 55,891 7,624 Court-related: Personal services - 19,100 18,836 264 Operating expenses - 469 721 (252) Capital outlay General government 28,000 58,000 36,201 21,799 Reserve for Contingency 8,080 8,080-8,080 Total expenditures 353,333 408,802 369,143 39,659 Excess of revenues over (under) expenditures (291,333) (291,333) (226,659) 64,674 Other financing sources (uses) Appropriations from Board of County Commissioners 271,333 271,333 271,333 - Reversion to Board of County Commissioners - - (44,710) (44,710) Net other financing sources (uses) 271,333 271,333 226,623 (44,710) Net change in fund balance (20,000) (20,000) (36) 19,964 Fund balance - beginning 59,170 59,170 59,284 114 Fund balance - ending $ 39,170 $ 39,170 $ 59,248 $ 20,078 See accompanying notes to financial statements -5-
Clerk of the Circuit Court Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Article V Fund For the year ended September 30, 2014 Variance with Final Budget Original Final Actual Favorable Budget Budget Amounts (Unfavorable) Revenues Charges for services $ 137,250 $ 137,250 $ 138,214 $ 964 Fines and forfeitures 67,900 67,900 77,867 9,967 Grants 43,000 - - - Investment earnings 30 30 31 1 Total revenues 248,180 205,180 216,112 10,932 Expenditures Current: Court-related: Personal services 382,919 383,373 380,493 2,880 Operating expenses 51,048 45,707 29,615 16,092 Capital outlay Court-related - 8,200 8,166 34 Reserve for Contingency 46,235 - - - Total expenditures 480,202 437,280 418,274 19,006 Excess of revenues over (under) expenditures (232,022) (232,100) (202,162) 29,938 Other financing sources (uses) Transfers from State of Florida 232,022 232,100 232,100 - Transfers to State of Florida - - (29,938) (29,938) Net other financing sources (uses) 232,022 232,100 202,162 (29,938) Net change in fund balance - - - - Fund balance - beginning - - - - Fund balance - ending $ - $ - $ - $ - See accompanying notes to financial statements -6-
Clerk of the Circuit Court Special-Purpose Statement of Fiduciary Net Position Agency Funds September 30, 2014 Agency Funds Assets Cash and investments $ 86,803 Due from other funds 1,653 Due from other governmental units 198 Due from individuals 237 Total assets $ 88,891 Liabilities Due to other funds $ 18,525 Due to Board of County Commissioners 14,774 Due to other governmental units 22,269 Due to individuals 33,323 Total liabilities $ 88,891 See accompanying notes to financial statements -7-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the, Clerk of the Circuit Court (the Clerk ) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these specialpurpose financial statements. Reporting Entity The Calhoun County Clerk of Circuit Court (Clerk) is an integral part of and is an elected Constitutional Officer who is governed by state statutes and regulations. The financial statements of the Clerk are included in s basic financial statements. The Clerk operates on a fee and budgetary system. Under the fee system, the officer retains fees, commissions, and other revenue to pay all operating expenditures, including statutory compensation. Under the budgetary system, appropriated funds are received from the Board of County Commissioners and any unexpended appropriations are remitted to the Board of County Commissioners after the end of the fiscal year. Beginning July 1, 2009, the Clerk receives appropriated funds from the State of Florida to fund court-related activities. The receipts from the State are recorded as other financing sources on the Clerk s financial statements. The Clerk s special-purpose financial statements do not purport to reflect the financial position or the results of operations of taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Clerk s office is operationally autonomous from the Board of County Commissioners (the Board ), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Clerk is reported as part of the primary government of. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Clerk. Under the budgetary system, a portion of the operations of the Clerk are funded by the Board. The receipts from the Board are recorded as other financing sources on the Clerk s financial statements and as other financing uses on the Board s financial statements. Any excess of revenue and other financial sources received over expenditures are remitted to the Board at year-end. -8-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Clerk, were prepared in conformity with generally accepted accounting principles in the United States of America. In preparing these financial statements the following are reported as major governmental funds: General Fund - The general fund is the general operating fund of the Clerk. It is used to account for all financial resources, except for those required to be accounted for in another fund. Court Article V Fund - Special Revenue Fund that accounts for all court related functions in accordance with Florida Statutes Section 28. In addition, the Clerk has reported the following non-major governmental fund: Modernization Trust Fund - The modernization trust fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The Clerk also reported the following fund type: Agency Funds - Agency funds are custodial in nature and account for assets held in a trust capacity or as agent for individuals, other governmental units and/or other funds. Agency funds only report assets and liabilities and do not measure results of operations. The Clerk reports the General Trust, Child Support and Jury and Witness as Agency Funds. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the special-purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) and (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until due. Charges for services and investment revenue are recorded as earned. -9-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the Clerk s policy to use restricted resources first, then unrestricted resources as needed. Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or financial flow measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. Budgetary Requirements Government fund revenues and expenditures accounted for in budgetary funds are controlled by a formal integrated budgetary accounting system in accordance with the Florida Statutes. An annual budget is adopted for the general fund. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are prepared on the modified accrual basis of accounting. The Clerk of the Circuit Court, functioning in the capacity as the Clerk of the Circuit and County Courts and as the Clerk of the Board of County Commissioners, prepares a budget in two parts: The budget for funds necessary to perform court-related functions as provided in Florida Statutes 28.36 is filed with the Florida Clerks of Court Operations Corporation; and The budget for funds necessary to perform those duties of Clerk of the Board of County Commissioners, County Auditor, and Custodian of all county funds and other county-related duties. The Departments within the Clerk s office that deal primarily or exclusively with the County are budgeted with appropriations from the Board. The fees generated by the various non-court activities of the Clerk are used to pay operating expenditures of that department. The Clerk s annual budget is monitored at varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot legally exceed the total annual budget appropriations at the individual fund level. All appropriations and excess fees from non-court activities are remitted to the Board at year-end. -10-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Investments consist of amounts placed with the State Board of Administration for participation in the Local Government Surplus Funds Trust Fund investment pools created by Sections 218.405 and 218.417, Florida Statutes. Capital Assets Tangible personal property is recorded as expenditures in the governmental fund types at the time an asset is acquired. Assets acquired by the Clerk are capitalized at cost in the capital asset accounts of the County. The Clerk s assets are reported in the statement of net position in the County s financial statements. The Clerk maintains custodial responsibility for the capital assets used by her office. Estimated useful lives, in years, for depreciable assets are as follows: Furniture, machinery, and equipment 3-15 years Deferred Revenues Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available, and in accordance with the modified accrual basis of accounting, are reported as deferred revenues. Accumulated Compensated Absences Permanent full-time employees of the Clerk are entitled to accrue sick leave hours based on pay periods worked, with a limit on total hours accrued being 280 hours at calendar year end. Vacation time is earned depending on the length of employment. Upon separation from employment, employees can be paid for unused annual leave in accordance with personnel policy. The Clerk s accumulated compensated absences are reported in the statement of net position in the County s financial statements. Fund Balance Reporting and Governmental Fund-Type Definitions The Clerk follows GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions which clarifies governmental fund balance classifications and fund-type definitions. Fund balances are classified either as non-spendable or spendable. See Note 9. Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. -11-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Risk Management The Clerk is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and the public; or damage to property of others. The Clerk participates in the risk management program through the Calhoun County Board of County Commissioners, which uses commercial insurance to cover certain risks from loss. The Board obtained commercial insurance against losses for the following types of risk: Real and Personal Property Damage Public Employees' Bond Workers' Compensation General and Automobile Liability Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors Report, which is the date the financial statements were available to be issued. NOTE 2 - DEPOSITS AND INVESTMENTS At year end, the carrying amount of the Clerk s deposits was $283,433 and the bank balance was $292,070. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. The Clerk s investment practices are governed by Chapter 218.415 of the Florida Statutes. The Clerk is authorized to invest in certificates of deposit, money market certificates, obligations of the US Treasury, mutual funds and repurchase agreements collateralized by U.S. Government securities, and the Local Government Surplus Trust Fund. -12-
NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) Clerk of the Circuit Court Notes to Special-Purpose Financial Statements The Clerk s invested funds in the Florida State Board of Administration Local Governments Surplus Funds Investment Pool. At September 30, 2014, the market value and carrying value of these funds $44,927. The funds are carried as a cash equivalent on the balance sheet at September 30, 2014 (See Note 1, for definition of cash equivalents) and are included in the carrying value and bank balance in the first paragraph of this note. As a Florida PRIME participant, the Clerk invests in a pool of investments whereby the Clerk owns a share of the respective pool, not the underlying securities. The State Board of Administration s interpretation of GASB 31 is that the Florida PRIME is currently considered a Securities and Exchange Commission Rule 2a7-like fund, as of September 30, 2014. These investments are reported at fair value, which is amortized cost. Additional information and investment policies regarding the Local Government Surplus Fund Trust Fund may be obtained from the State Board of Administration at www.sbafla.com/prime. CREDIT RISK The credit risk of certain investments, such as investment pools managed by other governments, cannot be categorized as to credit risk because the Clerk s investments are not evidenced by specific, identifiable investment securities. As of September 30, 2014, the Clerk s investment in the Florida PRIME is rated by Standard and Poors and the current rating is AAAm. INTEREST RATE RISK The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2014, is 39 days. Next interest rate reset for floating rate securities are used in the calculation of the WAM. CUSTODIAL CREDIT RISK At September 30, 2014, the Clerk did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2014, the Clerk did not hold any investments that were considered to have concentration of credit risk. -13-
NOTE 3 - INTERFUND RECEIVABLES AND PAYABLES Clerk of the Circuit Court Notes to Special-Purpose Financial Statements Interfund receivables and payables at September 30, 2014, are as follows: Due to/from Other Funds: Receivable Fund Payable Fund General fund Agency fund $ 2,621 Court Article V Fund Agency fund 12,414 Modernization Trust Fund Agency fund 1,890 Agency Fund Court Article V Fund 53 Jury and Witness - Agency Child Support - Agency 1,600 The balances resulted from the time lag between the dates that (a) interfund goods and services are provided or reimbursable expenditures occur, (b) transactions are recorded in the accounting system, and (c) payments between funds are made. Amounts are generally repaid during the next fiscal year. NOTE 4 - LONG-TERM LIABILITIES The Clerk s long-term liabilities are reported in the statement of net position in the County s financial statements. Long-term liability activity for the year ended September 30, 2014, was as follows: BEGINNING BALANCE ADDITIONS REDUCTIONS ENDING BALANCE DUE WITHIN ONE YEAR Governmental activities: Compensated absences $ 18,330 $ 3,726 $ - $ 22,056 $ 5,514 Accrued compensated absences represent the vested portion of accrued vacation and sick leave. See Note 1 for a summary of the Clerk s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented. -14-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 5 - EMPLOYEE PENSION PLAN The Clerk participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. Chapter 121, Florida Statutes, establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- ofliving adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding method and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows: 10/01/13 07/01/14 Through Through 06/30/14 09/30/14 Regular employees 6.95% 7.37% Senior management 18.31% 21.14% Elected county officials class 33.03% 43.24% Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 1, 2013 through September 30, 2014, the total payroll for all covered employees was $492,858. The retirement contributions for all employees covered by the System for the years ended September 30, 2014, 2013 and 2012 were $69,344, $40,934 and $22,041 which were the required contributions. For the year ended September 30, 2014 retirement contributions represent 14.07% of covered payroll. -15-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 6 - COOPERATIVE AGREEMENT The Clerk has a Cooperative Agreement with the Florida Department of Revenue. This agreement encompasses all the Clerk s child support functions. It allows for indirect cost reimbursement. The Clerk uses an established indirect cost rate to invoice the Department of Revenue each month. These amounts are federal funds received under CFDA #93.563. The net amount received was $100,246. NOTE 7 - EXCESS FEES Pursuant to Section 218.36(2), Florida Statutes, each County Officer shall pay into the county general fund all money in excess of the sum to which he or she is entitled under the provisions of Chapter 145. The Clerk s general fund ended this year with excess fees of $44,710. NOTE 8 COURT RELATED FEES Based on the legal opinion provided by the Clerks of Court Operations Corporation general counsel of the provisions of Section 28.37(3), F.S., which was adopted as policy by the CCOC Finance and Budget Committee, all excess court-related funds have been included in a fund liability, Due to Other Governmental Units. As of September 30, 2014, excess court-related funds were $59,606. NOTE 9 - FUND EQUITY Spendable fund balances are classified based on a hierarchy of the Clerk s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2014, the Clerk reports fund balance as restricted and unassigned. Restricted fund balances have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. Restricted fund balance shows amounts that are legally restricted for specific uses. The purpose for each is indicated as follows: Funds Purpose Special Revenue Fund Funding for: Modernization of Public Records $ 13,348 Court-related technology 10,942 Court-related operational needs and program enhancements 1,785 Total restricted fund balance $ 26,075-16-
Clerk of the Circuit Court Notes to Special-Purpose Financial Statements NOTE 10 - DEFERRED REVENUE During the year, the Clerk received funds from the State of Florida for court-related activities which are unearned until expended. As of September 30, 2014, the amounts received and unearned are $19,673. -17-
SUPPLEMENTARY INFORMATION
Clerk of the Circuit Court Combining Special-Purpose Statement of Fiduciary Net Position Agency Funds September 30, 2014 General Child Jury and Trust Support Witness Total Assets Cash $ 82,923 $ 2,440 $ 1,440 $ 86,803 Due from other funds - 53 1,600 1,653 Due from other governmental units 198 198 Due from individuals 237 - - 237 Total assets $ 83,160 $ 2,691 $ 3,040 $ 88,891 Liabilities Due to other funds $ 16,925 1,600 $ - $ 18,525 Due to Board of County Commissioners 12,682 1,042 1,050 14,774 Due to other governmental units 20,279-1,990 22,269 Due to individuals 33,274 49-33,323 Total liabilities $ 83,160 $ 2,691 $ 3,040 $ 88,891 See accompanying notes to financial statements -18-
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Carla A. Hand Clerk of the Circuit Court of Blountstown, 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 special-purpose financial statements of the Clerk of the Circuit Court (the Clerk ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Clerk s basic financial statements and have issued our report thereon dated June 1, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Clerk s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. -19-
The Honorable Carla A. Hand Clerk of Circuit Court of Blountstown, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 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 Clerk 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. June 1, 2015-20-
INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES The Honorable Carla A. Hand Clerk of the Circuit Court of Blountstown, Florida We have examined, Clerk of the Circuit Court s (the Clerk ) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the Clerk s compliance with those requirements. Our responsibility is to express an opinion on the Clerk s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. 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. June 1, 2015-21-
INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 28.35, FLORIDA STATUTES, FLORIDA CLERKS OF COURT OPERATIONS CORPORATION, AND SECTION 28.36, FLORIDA STATUTES, BUDGET PROCEDURE The Honorable Carla A. Hand Clerk of the Circuit Court of Blountstown, Florida We have examined the office of the, Clerk of Circuit Court s (the Clerk ) 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, 2014. Management is responsible for the Clerk s compliance with those requirements. Our responsibility is to express an opinion on the Clerk s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. 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. June 1, 2015-22-
INDEPENDENT AUDITORS MANAGEMENT LETTER The Honorable Carla A. Hand Clerk of the Circuit Court of Blountstown, Florida Report on the Financial Statements We have audited the accompanying financial statements of the, Clerk of the Circuit Court (the Clerk ), as of and for the year ended September 30, 2014, and have issued our report thereon dated June 1, 2015. Auditor s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditor s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Accountant s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated June 1, 2015, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. No significant findings and recommendations were made in the preceding annual financial audit report. -23-
The Honorable Carla A. Hand Clerk of the Circuit Court of Blountstown, Florida Official Title and Legal Authority Section 10.554(1)(i)4, Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Calhoun County, Florida, Clerk of the Circuit Court was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Calhoun County, Florida, Clerk of the Circuit Court. Other Matters Section 10.554(1)(i)2, Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the, Clerk and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. June 1, 2015-24-
Property Appraiser Special Purpose Financial Statements September 30, 2014
Property Appraiser Table of Contents September 30, 2014 REPORT Independent Auditors Report 1 SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet - Governmental Funds 3 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 4 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund 5 Notes to Special-Purpose Financial Statements 6 SUPPLEMENTARY INFORMATION Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 13 Independent Accountants' Report on Compliance with Section 218.415, Florida Statutes, Local Government Investment Policies 15 Independent Auditors Management Letter 16 Management s Response 18
REPORT
INDEPENDENT AUDITORS' REPORT To the Honorable Terrell Stone Property Appraiser of Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Property Appraiser (the Property Appraiser ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Property Appraiser s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these special-purpose 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 special-purpose 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 the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose 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 special-purpose 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 Property Appraiser 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 specialpurpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
To the Honorable Terrell Stone Property Appraiser of Blountstown, Florida As discussed in Note 1 to the financial statements, the Property Appraiser s financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Property Appraiser. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the specialpurpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Property Appraiser. Opinion In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the Property Appraiser as of September 30, 2014, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2015 on our consideration of the Property Appraiser s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser s internal control over financial reporting and compliance. June 4, 2015
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Property Appraiser Special-Purpose Balance Sheet Governmental Funds September 30, 2014 General Fund Assets Cash and cash equivalents $ 36,023 Total assets $ 36,023 Liabilities Accounts payable and accrued expenses $ 6,955 Due to Board of County Commissioners 29,068 Total liabilities 36,023 Fund balance - Total liabilities and fund balance $ 36,023 See accompanying notes to financial statements -3-
For the year ended September 30, 2014 Property Appraiser Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds General Fund Revenues Charge for services $ 2,100 Miscellaneous revenue 7 Total revenues 2,107 Expenditures Current: General government: Personal services 334,737 Operating expenses 74,278 Capital outlay 2,246 Total expenditures 411,261 Excess (deficiency) of revenues over (under) expenditures (409,154) Other financing sources (uses) Appropriations from Board of County Commissioners 438,222 Reversion to Board of County Commissioners (29,068) Net other financing sources (uses) 409,154 Net change in fund balance Fund balance, beginning Fund balance, ending $ - - - See accompanying notes to financial statements -4-
Property Appraiser Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund For the year ended September 30, 2014 Variance with Final Budget - Original Final Actual Favorable Budget Budget Amounts (Unfavorable) Revenues Charge for services $ - $ - $ 2,100 $ 2,100 Miscellaneous revenue - - 7 7 Total revenues - - 2,107 2,107 Expenditures Current: General government: Personal services 350,834 350,834 334,737 16,097 Operating expenses 84,092 84,092 74,278 9,814 Capital outlay - - 2,246 (2,246) Reserve for Contingency 3,296 3,296-3,296 Total expenditures 438,222 438,222 411,261 26,961 Excess (deficiency) of revenues over (under) expenditures (438,222) (438,222) (409,154) 29,068 Other financing sources (uses) Appropriations from Board of County Commissioners 438,222 438,222 438,222 - Reversion to Board of County Commissioners - - (29,068) (29,068) Net other financing sources (uses) 438,222 438,222 409,154 (29,068) Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending $ - $ - $ - $ - See accompanying notes to financial statements -5-
Property Appraiser Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the, Property Appraiser (the Property Appraiser ) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant principles and policies used in the preparation of these specialpurpose financial statements. Reporting Entity The, Property Appraiser (the Property Appraiser ) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Property Appraiser s special-purpose financial statements do not purport to reflect the financial position or the results of operations of taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Property Appraiser s office is operationally autonomous from the Board of County Commissioners ( the Board ), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Property Appraiser is reported as part of the primary government of. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Property Appraiser. The operations of the Property Appraiser are funded by the Board. The receipts from the Board are recorded as other financing sources on the Property Appraiser's financial statements and as other financing uses on the Board's financial statements. Any excess of revenues and other financing sources received over expenditures are remitted to the Board at year-end. Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Property Appraiser, were prepared in conformity with generally accepted accounting principles in the United States of America. -6-
Property Appraiser Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In preparing these financial statements, the following is reported as a major governmental fund: General Fund - The general fund is the general operating fund of the Property Appraiser. It is used to account for all financial resources, except those required to be accounted for in another fund. Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. The general fund is accounted for on a spending or financial flow measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. General fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. Basis of Accounting Basis of accounting refers to the point at which revenues and expenditures are recognized in the accounts and reported in the general fund financial statements and refers to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. When both restricted and unrestricted resources are available for use, it is the Property Appraiser s policy to use restricted resources first, then unrestricted resources as needed. Budgetary Requirements Expenditures are controlled by appropriations in accordance with the budget requirements set forth in Florida Statutes Chapter 195.087. The budgeted revenues and expenditures in the accompanying financial statements reflect all amendments, approved by the Florida Department of Revenue and Board of County Commissioners. On or before June 1 of each year, the Property Appraiser shall submit to the Department of Revenue a budget for the operation of his office for the ensuing fiscal year. The Department of Revenue and Board of County Commissioners must approve the final budget. -7-
Property Appraiser Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government Capital Assets Tangible personal property is recorded as expenditures in the general fund at the time an asset is acquired. Assets acquired by the Property Appraiser are capitalized at cost in the capital asset accounts of the County. The Property Appraiser s assets are reported in the statement of net position in the County s financial statements. The Property Appraiser maintains custodial responsibility for the capital assets used by his office. Accumulated Compensated Absences Permanent full-time employees of the Property Appraiser are entitled to earn sick leave and vacation time related to the length of employment with the Property Appraiser s office. The vacation time must be taken during the calendar year earned and employees with greater than ten years of service receive 25% of accrued sick leave pay upon termination. The Property Appraiser s accumulated compensated absences are reported in the statement of net position in the County s financial statements. Risk Management The Property Appraiser is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The Property Appraiser participates in the risk management program through the Board of County Commissioners, which uses commercial insurance to cover certain risks from loss. The Board obtained commercial insurance against losses for the following types of risk: Real and Personal Property Damage Public Employees' Bond Workers' Compensation General and Automobile Liability -8-
Property Appraiser Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Management Estimates and Assumptions The preparation of financial statements in conformity with general accepted accounting principles requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors Report, which is the date the financial statements were available to be issued. NOTE 2 - DEPOSITS AND INVESTMENTS At September 30, 2014, the carrying amount of the Property Appraiser's cash and cash equivalents and restricted cash was $36,023 and the bank balance was $36,658. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. Florida Statutes authorize the Property Appraiser to invest in certificates of deposit, repurchase agreements and the State Treasurer s Investment Pool. In addition, the statutes allow the Property Appraiser to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies. CREDIT RISK At September 30, 2014, the Property Appraiser did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2014, the Property Appraiser did not hold any investments. -9-
NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) Property Appraiser Notes to Special-Purpose Financial Statements CUSTODIAL CREDIT RISK At September 30, 2014, the Property Appraiser did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2014, the Property Appraiser did not hold any investments. NOTE 3 - LONG-TERM DEBT The following is a summary of the changes in long-term obligations of the Property Appraiser for the year ended September 30, 2014: BEGINNING BALANCE ADDITIONS REDUCTIONS ENDING BALANCE DUE WITHIN ONE YEAR Governmental activities: Compensated absences $ 14,497 $ 811 $ - $ 15,308 $ - Accrued compensated absences represent the vested portion of accrued vacation and sick leave. See Note 1 for a summary of the Property Appraiser s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented. -10-
Property Appraiser Notes to Special-Purpose Financial Statements NOTE 4 - EMPLOYEE BENEFITS The Property Appraiser participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- ofliving adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows: 10/01/13 Through 6/30/14 07/01/14 Through 09/30/14 Regular class 6.95% 7.37% DROP Elected county officials class 12.84% 33.03% 12.28% 43.24% Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 1, 2013 through September 30, 2014, the total payroll for all covered employees was $260,425. The retirement contributions for all employees covered by the System for the years ended September 30, 2014, 2013 and 2012 were $24,801, $17,458, and $16,286 which were the required contributions. For the year ended September 30, 2014 retirement contributions represent 9.52% of covered payroll. -11-
Property Appraiser Notes to Special-Purpose Financial Statements NOTE 5 - EXCESS REVENUE Pursuant to Section 218.36(2), Florida Statutes, each County Officer shall pay into the County general fund all money in excess of the sum to which he or she is entitled under the provisions of Chapter 145. Excess revenues over expenditures were returned to the Board of County Commissioners and reported as a reversion. -12-
SUPPLEMENTARY INFORMATION
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Terrell Stone Property Appraiser of Blountstown, 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 special-purpose financial statements of the, Property Appraiser (the Property Appraiser ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Property Appraiser s basic financial statements and have issued our report thereon dated June 4, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We did identify a certain deficiency in internal control described below that we consider to be significant deficiency. -13-
To the Honorable Terrell Stone Property Appraiser of Blountstown, Florida PRIOR YEAR FINDING AND RECOMMENDATION: Need for Segregation of Duties COMMENT: There is a lack of segregation of duties between employees who have recordkeeping responsibility and employees in custody of Property Appraiser s assets. RECOMMENDATION: We realize that due to the size of the Property Appraiser s administrative staff, it is difficult to achieve ideal separation of duties. However, the Property Appraiser should remain very active and involved in the day-to-day operations. Controls should be implemented to help compensate for these weakness and to provide check and balances. STATUS: This condition continues to exist. Compliance and Other Matters As part of obtaining reasonable assurance about whether the, Property Appraiser s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Property Appraiser s Response to Findings, Property Appraiser s response to the findings identified in our audit is described in the accompanying letter. We did not audit, Property Appraiser s response 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 Property Appraiser 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. June 4, 2015-14-
INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES To the Honorable Terrell Stone Property Appraiser of Blountstown, Florida We have examined Property Appraiser (the Property Appraiser ) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the Property Appraiser s compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Property Appraiser s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. 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. June 4, 2015-15-
INDEPENDENT AUDITORS MANAGEMENT LETTER To the Honorable Terrell Stone Property Appraiser of Blountstown, Florida Report on the Financial Statements We have audited the accompanying financial statements of the, Property Appraiser (the Property Appraiser ), as of and for the year ended September 30, 2014, and have issued our report thereon dated June 4, 2015. Auditor s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountant s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 4, 2015, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Corrective actions have not been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This item was disclosed in the notes to the financial statements. -16-
To the Honorable Terrell Stone Property Appraiser of Blountstown, Florida Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. June 4, 2015-17-
-18- Property Appraiser Management s Response
Sheriff Special-Purpose Financial Statements September 30, 2014
Sheriff Table of Contents September 30, 2014 REPORT Independent Auditors Report 1 SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet - Governmental Funds 3 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 4 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual General Fund 5 Special-Purpose Statement of Fiduciary Net Position 6 Notes to Special-Purpose Financial Statements 7 SUPPLEMENTARY INFORMATION Combining Special-Purpose Balance Sheet Nonmajor Governmental Funds All Special Revenue Funds 15 Combining Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds All Special Revenue Funds 16 Combining Special-Purpose Statement of Fiduciary Net Position - Agency Funds 17 Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 18 Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes, Local Government Investment Policies 20 Independent Auditors Management Letter 21 Management s Response 23
REPORT
INDEPENDENT AUDITORS' REPORT To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Sheriff (the Sheriff ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Sheriff s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these special-purpose 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 special-purpose 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 the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose 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 special-purpose 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 Sheriff 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 specialpurpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, Florida As discussed in Note 1 to the financial statements, the Sheriff s financial statements are specialpurpose financial statements presenting only the financial position and results of operations of the Sheriff. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Sheriff. Opinion In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and fiduciary fund type of the Sheriff as of September 30, 2014, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying information identified in the table of contents as a combining statement is presented for purposes of additional analysis and is not a required part of the financial statements. The combining financial statements are the responsibility of management and were derived from and related directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 8, 2015, on our consideration of the Sheriff's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff s internal control over financial reporting and compliance. June 8, 2015
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Sheriff Special-Purpose Balance Sheet Governmental Funds September 30, 2014 Other Total General Governmental Governmental Fund Funds Funds Assets Cash and cash equivalents $ 21,150 $ 118,102 $ 139,252 Accounts receivable 80 2,334 2,414 Due from other funds 7,168 6,005 13,173 Due from Board of County Commissioners - 3,125 3,125 Due from other governmental units 11,759 32,984 44,743 Total assets $ 40,157 $ 162,550 $ 202,707 Liabilities Accounts payable and accrued expenses $ 29,907 $ 2,704 $ 32,611 Due to other funds - 12,530 12,530 Due to Board of County Commissioners 10,250-10,250 Total liabilities 40,157 15,234 55,391 Fund balances Restricted - 147,316 147,316 Total fund balances - 147,316 147,316 Total liabilities and fund balances $ 40,157 $ 162,550 $ 202,707 See accompanying notes to financial statements -3-
For the year ended September 30, 2014 Sheriff Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Other Total General Governmental Governmental Fund Funds Funds Revenues Intergovernmental $ 85,069 $ 84,000 $ 169,069 Charges for services 19,033 39,952 58,985 Grants 48,451 76,223 124,674 Investment earnings - 20 20 Contributions and donations - 2,811 2,811 Other fees and miscellaneous 2,000-2,000 Total revenues 154,553 203,006 357,559 Expenditures Current: Public health and safety: Law enforcement Personal services 1,018,058 37,400 1,055,458 Operating expenses 315,056 11,946 327,002 Corrections and detention Personal services 325,286 4,580 329,866 Operating expenses 105,776 7,170 112,946 Other public health and safety Personal services - 194,575 194,575 Operating expenses - 71,959 71,959 Capital Outlay Law enforcement 30,169 1,000 31,169 Other public health and safety - 9,817 9,817 Total expenditures 1,794,345 338,447 2,132,792 Excess (deficiency) of revenues over (under) expenditures (1,639,792) (135,441) (1,775,233) Other financing sources (uses) Appropriations from Board of County Commissioners 1,639,792 155,941 1,795,733 Net other financing sources (uses) 1,639,792 155,941 1,795,733 Net change in fund balances - 20,500 20,500 Fund balances - beginning - 126,816 126,816 Fund balances - ending $ - $ 147,316 $ 147,316 See accompanying notes to financial statements -4-
For the year ended September 30, 2014 Sheriff Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund Variance with Final Budget Original Final Actual Favorable Budget Budget Amounts (Unfavorable) Revenues Intergovernmental $ 78,080 $ 85,069 $ 85,069 $ - Charges for services 10,600 19,033 19,033 - Other fees and miscellaneous - 2,000 2,000 - Grant revenue - 48,451 48,451 - Total revenues 88,680 154,553 154,553 - Expenditures Current: Public health and safety: Law enforcement Personal services 980,754 1,018,550 1,018,058 492 Operating expenses 268,036 318,566 315,056 3,510 Corrections and detention Personal services 363,796 325,899 325,286 613 Operating expenses 94,136 106,980 105,776 1,204 Capital Outlay Law enforcement 25,000 27,600 30,169 (2,569) Total expenditures 1,731,722 1,797,595 1,794,345 3,250 Excess (deficiency) of revenues over (under) expenditures (1,643,042) (1,643,042) (1,639,792) 3,250 Other financing sources (uses) Appropriations from Board of County Commissioners 1,643,042 1,643,042 1,639,792 (3,250) Total other financing sources (uses) 1,643,042 1,643,042 1,639,792 (3,250) Net change in fund balance $ - $ - $ - $ - See accompanying notes to financial statements -5-
Sheriff Special-Purpose Statement Fiduciary Net Position Agency Fund September 30, 2014 Inmate Trust Assets Cash and cash equivalents $ 4,197 Total assets $ 4,197 Liabilities Due to other funds $ 644 Due to individuals 3,553 Total liabilities $ 4,197 See accompanying notes to financial statements -6-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Sheriff Notes to Special-Purpose Financial Statements The accounting policies of the, Sheriff (the Sheriff ) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these special-purpose financial statements. Reporting Entity The, Sheriff (the Sheriff ) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Sheriff s special-purpose financial statements do not purport to reflect the financial position or the results of operations of Calhoun County, Florida taken as a whole. Entity status for financial reporting is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Sheriff s office is operationally autonomous from the Board of County Commissioners ( the Board ), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Sheriff is reported as part of the primary government of. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Sheriff. The operations of the Sheriff are primarily funded by the Board. The receipts from the Board are recorded as other financing sources on the Sheriff s financial statements and as other financing uses on the Board s financial statements. Any excess of revenues and other financing sources received over expenditures are remitted to the Board at year-end. Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Sheriff, were prepared in conformity with GAAP. In preparing these financial statements the following is reported as a major governmental fund: General Fund - The General Fund is used to account for all revenue and expenditures applicable to the general operations of the Sheriff that are not required either legally or by generally accepted accounting principles to be accounted for in another fund. -7-
Sheriff Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In addition, the Sheriff reported the following non-major governmental funds: Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. The Sheriff reports the following special revenue funds in the financial statements under the title Other Governmental Funds. DRUG ENFORCEMENT FUND - Accounts for revenues and expenses of the Calhoun County Sheriff s office drug enforcement program. EMERGENCY 911 - Accounts for the operation of the emergency 911 system of Calhoun County. INVESTIGATIVE RESOURCE FUND - Accounts for revenues and expenditures relating to various forfeitures, investigative fees and restitution. CONTRIBUTION FUND - Accounts for revenues and expenditures relating to public donations to assist the less fortunate. INMATE WELFARE FUND - Accounts for the activities related to operation of the inmate commissary. The Sheriff also reported the following fund type: Agency Funds - The agency funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature and do not involve measurement of changes in financial position. Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. The governmental fund is accounted for on a spending or financial flow measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. -8-
Sheriff Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting refers to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the Sheriff s policy to use restricted resources first, then unrestricted resources as needed. Budgetary Requirements Florida Statutes, Chapter 30.49 and 129.03(2), details the preparation, adoption and administration of the Sheriff s annual budget. The Sheriff establishes an annual balanced budget for his office which displays the revenues available to the office and the functions for which the money is to be expended. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are prepared on the modified accrual basis of accounting. The Sheriff's annual budgets are monitored at varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot legally exceed the total annual budget appropriations at the individual fund level. All appropriations lapse at year end. Cash and Cash Equivalents Cash and cash equivalents includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Capital Assets Tangible personal property is recorded as expenditures in the governmental fund types at the time an asset is acquired. Assets acquired by the Sheriff are capitalized at cost in the capital asset accounts of the County. The Sheriff s assets are reported in the statement of net assets in the County s financial statements. The Sheriff maintains custodial responsibility for the capital assets used by his office. -9-
Sheriff Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance Reporting and Governmental Fund-Type Definitions The Sheriff adopted GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions (GASB Statement No. 54) effective October 1, 2010. This GASB Statement clarifies governmental fund balance classifications and fund-type definitions. Fund balances are classified either as non-spendable or spendable. See Note 10. Accumulated Compensated Absences Permanent full-time employees of the Sheriff are entitled to accrue up to 920 hours of sick leave and up to 500 hours of vacation time depending on the length of employment. Upon separation of employment, employees can be paid their vacation time and up to 50% of unused sick time, with the payment of unused sick time being subject to various criteria. The Sheriff s accumulated compensated absences are reported in the statement of net position in the County s financial statements. Due to Others This account is used to account for assets held by the Sheriff in a trustee capacity for other governmental agencies or individuals. Risk Management and Insurance The Sheriff participates in the Florida Sheriff Self-Insurance Fund, which is considered a public entity risk pool which purchases insurance policies on behalf of its members. The pool s members are not obligated for risk associated with such coverage. Coverage under these programs includes: General Liability Public Employees Blanket Bond Automobiles Money and Securities Coverage The Sheriff provides for workers compensation coverage through the Board. A separate insurance policy is carried for aircraft. In addition, the Sheriff participates in the Florida Self-Insurance Fund for risks related to professional liability and public officials' coverage. The funding agreement provides that the liability fund will be self-sustaining through member premiums and that it will reinsure through commercial companies. Aggregate coverage provided by the liability fund is $3,500,000 for professional liability and $3,500,000 for public officials' coverage. Management Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. -10-
Sheriff Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors Report, which is the date the financial statements were available to be issued. NOTE 2 - DEPOSITS AND INVESTMENTS At year-end, the carrying amount of the Sheriff s cash and cash equivalents and restricted cash was $143,449 and the bank balance was $158,712. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. Florida Statutes authorize the Sheriff to invest in certificates of deposit, repurchase agreements and the State Treasurer s Investment Pool. In addition, the statutes allow the Sheriff to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies. CREDIT RISK At September 30, 2014, the Sheriff did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2014, the Sheriff did not hold any investments that were considered to have interest rate risk. CUSTODIAL CREDIT RISK At September 30, 2014, the Sheriff did not hold any deposits or investments that were considered to have custodial credit risk. CONCENTRATION OF CREDIT RISK At September 30, 2014, the Sheriff did not hold any investments that were considered to have concentration of credit risk. -11-
NOTE 3 - DUE FROM OTHER GOVERNMENTS Sheriff Notes to Special-Purpose Financial Statements Due from other governments at September 30, 2014 consisted of the following: Wireless Emergency Telephone System Trust Fund $ 28,000 Florida Department of Law Enforcement 3,274 Drug Enforcement Agency 4,166 Northwest Florida Water Management District 1,117 State of Florida Office of the Attorney General 5,154 VOCA 2,750 Department of Agriculture 282 Total $ 44,743 NOTE 4 - LONG-TERM LIABILITIES The following is a summary of the changes in long-term obligations of the Sheriff for the year ended September 30, 2014: BEGINNING BALANCE ADDITIONS REDUCTIONS ENDING BALANCE DUE WITHIN ONE YEAR Governmental activities: Compensated absences $ 39,447 $ 23,132 $ - $ 62,579 $ - Total $ 39,447 $ 23,132 $ - $ 62,579 $ - Accrued compensated absences represent the vested portion of accrued vacation, sick leave, and compensatory time. See Note 1 for a summary of the Sheriff s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented. NOTE 5 - EMPLOYEE PENSION PLAN The Sheriff participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. -12-
NOTE 5 - EMPLOYEE PENSION PLAN (CONTINUED) Sheriff Notes to Special-Purpose Financial Statements For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- ofliving adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows: 10/01/13 07/01/14 Through Through 06/30/14 9/30/14 Regular employees 6.95% 7.37% Senior management 18.31% 21.14% Elected county officials 33.03% 43.24% Special risk employees DROP participants 19.06% 12.84% 19.82% 12.28% Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 1, 2012 through September 30, 2014, the total payroll for all covered employees was $1,139,375. The retirement contributions for all employees covered by the System for the years ended September 30, 2014, 2013, 2012 were $172,574, $129,603, and $121,647 which were the required contributions. For the year ended September 30, 2014, retirement contributions represented 15.15% of covered payroll. NOTE 6 - EXCESS REVENUE Pursuant to Section 218.36(2), Florida Statutes, any excess revenues over expenditures determined as of the fiscal year end, is returned to each governmental unit in the same proportion as fees paid by the governmental unit bear to the total fee income of the Sheriff. Excess revenues over expenditures returned to the Board of County Commissioners as required by Florida Statutes are accrued and reported as a reversion to Board of County Commissioners. The Sheriff s general fund ended this year with no excess fees. -13-
Sheriff Notes to Special-Purpose Financial Statements NOTE 7 - GRANTS The Sheriff participates in several state and federal grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the year ended September 30, 2014, have not yet been accepted/approved by the grantors. Accordingly, the final determination of the Sheriff s compliance with applicable grant requirements will be established at a future date. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined, although the Sheriff expects such amounts, if any, to be immaterial. NOTE 8 - COMMON EXPENDITURES The Calhoun County Board of County Commissioners expended approximately $254,206 in housing for inmates incarcerated in other counties jail facilities and healthcare costs. Housing expenditures resulted from lack of adequate inmate housing facilities at the local jail. These costs are not included in the Sheriff s accompanying statement of revenues, expenditures and changes in fund balance as they were Board expenditures. NOTE 9 - LITIGATION AND CONTINGENT LIABILITIES The Sheriff is involved in various litigations arising from the ordinary course of business. In the opinion of management, after consultation with legal counsel, these matters will be resolved without a material adverse effect on the Sheriff s financial position. NOTE 10 - FUND EQUITY Spendable fund balances are classified based on a hierarchy of the Sheriff s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ended September 30, 2014, the Sheriff reports fund balance as restricted. Restricted fund balance have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Assigned fund balance has constraints placed on the use of resources by the Sheriff s intent to use the resources for specific purposes. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. -14-
SUPPLEMENTARY INFORMATION
Sheriff Combining Special-Purpose Balance Sheet Non-major Governmental Funds All Special Revenue Funds September 30, 2014 Total Drug Inmate Nonmajor Enforcement Emergency Investigative Contribution Welfare Governmental Fund 911 Resource Fund Fund Funds Assets Cash and cash equivalents $ 189 $ 1,157 $ 76,721 $ - $ 40,035 $ 118,102 Accounts receivable - - - - 2,334 2,334 Due from other funds - - 5,361-644 6,005 Due from Board of County Commissioners 3,125 - - - - 3,125 Due from other governmental units 2,047 28,010 2,927 - - 32,984 Total assets $ 5,361 $ 29,167 $ 85,009 $ - $ 43,013 $ 162,550 Liabilities Accounts payable and accrued expenses $ - $ 2,571 $ - $ - $ 133 $ 2,704 Due to other funds 5,361 1,252 - - 5,917 12,530 Total liabilities 5,361 3,823 - - 6,050 15,234 Fund balances - restricted - 25,344 85,009-36,963 147,316 Total liabilities and fund balances $ 5,361 $ 29,167 $ 85,009 $ - $ 43,013 $ 162,550-15-
Sheriff Combining Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major Governmental Funds All Special Revenue Funds For the year ended September 30, 2014 Total Drug Inmate Nonmajor Enforcement Emergency Investigative Contribution Welfare Governmental Fund 911 Resource Fund Fund Funds Revenues Intergovernmental $ - $ 84,000 $ - $ - $ - $ 84,000 Charges for services - - 11,530-28,422 39,952 Grants 45,909 30,314 - - - 76,223 Investment earnings - 20 - - - 20 Contributions and donations - - - 2,811-2,811 Total revenues 45,909 114,334 11,530 2,811 28,422 203,006 Expenditures Current: Public health and safety: Law enforcement Personal services 37,400 - - - - 37,400 Operating expenses 7,509-4,437 - - 11,946 Correction and detention Personal services - - - - 4,580 4,580 Operating expenses - - - - 7,170 7,170 Other public heath and safety Personal services - 194,575 - - - 194,575 Operating expenses - 68,962-2,997-71,959 Capital Outlay Law enforcement 1,000 - - - - 1,000 Other public health and safety - 9,817 - - - 9,817 Total expenditures 45,909 273,354 4,437 2,997 11,750 338,447 Excess of revenues (under) expenditures - (159,020) 7,093 (186) 16,672 (135,441) Other financing sources Appropriations from Board of County Commissioners - 155,941 - - - 155,941 Net other financing sources - 155,941 - - - 155,941 Net change in fund balances - (3,079) 7,093 (186) 16,672 20,500 Fund balances - beginning - 28,423 77,916 186 20,291 126,816 Fund balances - ending $ - $ 25,344 $ 85,009 $ - $ 36,963 $ 147,316-16-
Sheriff Combining Special-Purpose Statement of Fiduciary Net Position Agency Funds September 30, 2014 Inmate Trust Total Assets Cash and cash equivalents $ 4,197 $ 4,197 Total assets $ 4,197 $ 4,197 Liabilities Due to other funds $ 644 $ 644 Due to individuals 3,553 3,553 Total liabilities $ 4,197 $ 4,197-17-
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, 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 special-purpose financial statements of the, Sheriff (the Sheriff ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Sheriff s basic financial statements and have issued our report thereon dated June 8, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff s internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriff s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described below, we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency 04-02 described below to be a material weakness. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. -18-
To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, Florida PRIOR YEAR FINDINGS AND RECOMMENDATIONS: NEED FOR SEGREGATION OF DUTIES 04-02 COMMENT: Separation of certain accounting and administrative duties among employees, which is recommended as an effective internal control procedure, was not adequate. RECOMMENDATION: We realize that due to the limited number of employees and certain incompatible duties being performed by the same employee, it is difficult to achieve ideal separation of duties. Nevertheless, internal control is strengthened when incompatible duties are separated and review procedures are established and adhered to. We also recommend the Sheriff receive and review the unopened bank statements each month. STATUS: This condition continues to exist. Compliance and Other Matters As part of obtaining reasonable assurance about whether the, Sheriff s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Sheriff s Response to Findings The Sheriff s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Sheriff 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 Sheriff s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. June 8, 2015-19-
INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, Florida We have examined Sheriff (the Sheriff ) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the Sheriff s compliance with those requirements. Our responsibility is to express an opinion on the Sheriff s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriff s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff s compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. 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. June 8, 2015-20-
To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, Florida Report on the Financial Statements INDEPENDENT AUDITORS MANAGEMENT LETTER We have audited the accompanying financial statements of the, Sheriff (the Sheriff ), as of and for the year ended September 30, 2014, and have issued our report thereon dated June 8, 2015. Auditor s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditor s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Accountant s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated June 8, 2015, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report except as noted under the heading Prior Year Findings and Recommendations. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Calhoun County, Florida, Sheriff was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Sheriff. -21-
To the Honorable Glenn H. Kimbrel Sheriff of Blountstown, Florida Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. June 8, 2015-22-
-23- Sheriff Management s Response
Supervisor of Elections Special-Purpose Financial Statements September 30, 2014
Supervisor of Elections Table of Contents September 30, 2014 REPORT Independent Auditors Report 1 SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet - Governmental Funds 3 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 4 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund 5 Notes to Special-Purpose Financial Statements 6 SUPPLEMENTARY INFORMATION Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 13 Independent Accountants' Report on Compliance with Section 218.415, Florida Statutes, Local Government Investment Policies 15 Independent Auditors Management Letter 16 Management s Response 18
REPORT
INDEPENDENT AUDITORS' REPORT To the Honorable Margie Laramore Supervisor of Elections of Blountstown, Florida Report on the Financial Statements We have audited the accompanying special purpose financial statements of the Calhoun County, Florida, Supervisor of Elections (the Supervisor of Elections ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Supervisor of Elections basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these special purpose 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 special purpose 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 the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special purpose 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 special purpose 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 Supervisor of Elections 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 specialpurpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
To the Honorable Margie Laramore Supervisor of Elections of Blountstown, Florida As discussed in Note 1 to the financial statements, the Supervisor of Elections financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Supervisor of Elections. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Supervisor of Elections. Opinion In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the Supervisor of Elections as of September 30, 2014, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 4, 2015 on our consideration of the Supervisor of Elections internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisor of Elections internal control over financial reporting and compliance. June 4, 2015
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Supervisor of Elections Special-Purpose Balance Sheet Governmental Funds September 30, 2014 Total Grant Governmental General Fund Funds Assets Cash and cash equivalents $ 468 $ 7,401 $ 7,869 Total assets $ 468 $ 7,401 $ 7,869 Liabilities Accounts payable and accrued expenses $ 258 $ - $ 258 Due to Board of County Commissioners 210-210 Deferred revenue - 4,892 4,892 Total liabilities 468 4,892 5,360 Fund balance - restricted - 2,509 2,509 Total liabilities and fund balance $ 468 $ 7,401 $ 7,869 See accompanying notes to financial statements -3-
Supervisor of Elections Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the year ended September 30, 2014 Total General Grant Governmental Fund Fund Funds Revenues Investment earnings $ - $ 3 $ 3 Other fees and miscellaneous - 208 208 Total revenues - 211 211 Expenditures Current: General government: Personal services 198,559-198,559 Operating expenses 66,438-66,438 Capital outlay 8,002-8,002 Total expenditures 272,999-272,999 Excess (deficiency) of revenues over (under) expenditures (272,999) 211 (272,788) Other financing sources (uses) Appropriations from Board of County Commissioners 271,185-271,185 Reversion to Board of County Commissioners (186) - (186) Net other financing sources (uses) 270,999-270,999 Net change in fund balances (2,000) 211 (1,789) Fund balances, beginning 2,000 2,298 4,298 Fund balances, ending $ - $ 2,509 $ 2,509 See accompanying notes to financial statements -4-
Supervisor of Elections Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund For the year ended September 30, 2014 Variance with Fund Budget Original Final Actual Favorable Budget Budget Amounts (Unfavorable) Revenues Investment earnings $ - $ - $ - $ - Total revenues - - - - Expenditures Current: General government: Personal services 196,900 196,900 198,559 (1,659) Operating expenses 52,685 58,685 66,438 (7,753) Capital outlay 15,600 15,600 8,002 7,598 Total expenditures 265,185 271,185 272,999 (1,814) Excess (deficiency) of revenues over (under) expenditures (265,185) (271,185) (272,999) (1,814) Other financing sources (uses) Appropriations from Board of County Commissioners 265,185 271,185 271,185 - Reversion to Board of County Commissioners - - (186) (186) Net other financing sources (uses) 265,185 271,185 270,999 (186) Net change in fund balance - - (2,000) (2,000) Fund balance - beginning - - 2,000 2,000 Fund balance - ending $ - $ - $ - $ - See accompanying notes to financial statements -5-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Supervisor of Elections Notes to Special-Purpose Financial Statements The accounting policies of the, Supervisor of Elections (the Supervisor of Elections ) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these special-purpose financial statements. Reporting Entity The, Supervisor of Elections (the Supervisor of Elections ) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Supervisor of Elections special-purpose financial statements do not purport to reflect the financial position or the results of operations of taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Supervisor of Elections office is operationally autonomous from the Board of County Commissioners ( the Board ), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Supervisor of Elections is reported as part of the primary government of. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Supervisor of Elections. The operations of the Supervisor of Elections are funded by the Board. The receipts from the Board are recorded as other financing sources on the Supervisor of Elections' financial statements and as other financing uses on the Board's financial statements. Any excess of revenues and other financing sources received over expenditures are remitted to the Board at year-end. Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Supervisor of Elections, were prepared in conformity with generally accepted accounting principles in the United States of America. -6-
Supervisor of Elections Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In preparing these financial statements, the following is reported as a major governmental fund: General Fund - The general fund is the general operating fund of the Supervisor of Elections. It is used to account for all financial resources, except those required to be accounted for in another fund. In preparing these financial statements, the following is reported as a non-major governmental fund: Grant Fund - Accounts for the grant funds received to educate the voters of Calhoun County. Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. The general fund is accounted for on a spending or financial flow measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. General fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the general fund financial statements and refers to the timing of the measurement made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. When both restricted and unrestricted resources are available for use, it is the Supervisor of Elections policy to use restricted resources first, then unrestricted resources as needed. -7-
Supervisor of Elections Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Budgetary Requirements General governmental revenue and expenditures accounted for in budgetary funds are controlled by a formal integrated budgetary accounting system in accordance with the Florida Statutes. An annual budget is prepared by the Supervisor of Elections and adopted by the Board for the general fund. The Supervisor of Elections' annual budget is monitored at varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot legally exceed the total annual budget appropriations at the individual fund level. All appropriations lapse at year-end. Budget to actual comparisons are provided in the financial statements for the general fund. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are prepared on the modified accrual basis of accounting. Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Capital Assets Tangible personal property is recorded as expenditures in the general fund at the time an asset is acquired. Assets acquired by the Supervisor of Elections are capitalized at cost in the capital asset accounts of the County. The Supervisor of Elections assets are reported in the statement of net position in the County s financial statements. The Supervisor of Elections maintains custodial responsibility for the capital assets used by her office. Accumulated Compensated Absences Permanent full-time employees of the Supervisor of Elections are entitled to accrue unlimited hours of sick leave based upon pay periods worked. Upon termination, employees with five years or more of service can be paid up to 30 days of unused sick time. Permanent full-time employees of the Supervisor of Elections are entitled to accrue up to a maximum of 30 days of vacation leave. Upon termination, employees can be paid up to 30 days of unused vacation time. The Supervisor of Elections accumulated compensated absences are reported in the statement of net position in the County s financial statements. -8-
Supervisor of Elections Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Risk Management The Supervisor of Elections is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The Supervisor of Elections participates in the risk management program through the Calhoun County Board of County Commissioners which uses commercial insurance to cover certain risks from loss. The Board obtained commercial insurance against losses for the following types of risk: Real and Personal Property Damage Public Employees' Bond Workers' Compensation General and Automobile Liability Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors Report, which is the date the financial statements were available to be issued. -9-
Supervisor of Elections Notes to Special-Purpose Financial Statements NOTE 2 - DEPOSITS AND INVESTMENTS At September 30, 2014, the carrying amount of the Supervisor of Elections cash and cash equivalents and restricted cash was $7,869 and the bank balance was $29,580. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. Florida Statutes authorize the Supervisor of Elections to invest in certificates of deposit, repurchase agreements and the State Treasurer s Investment Pool. In addition, the statutes allow the Supervisor of Elections to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies. CREDIT RISK At September 30, 2014, the Supervisor of Elections did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2014, the Supervisor of Elections did not hold any investments. CUSTODIAL CREDIT RISK At September 30, 2014, the Supervisor of Elections did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2014, the Supervisor of Elections did not hold any investments. -10-
Supervisor of Elections Notes to Special-Purpose Financial Statements NOTE 3 - LONG-TERM DEBT The following is a summary of the changes in long-term obligations of the Supervisor of Elections for the year ended September 30, 2014: BEGINNING BALANCE ADDITIONS REDUCTIONS ENDING BALANCE DUE WITHIN ONE YEAR Governmental activities: Compensated absences $ 3,045 $ 2,334 $ - $ 5,379 $ - Accrued compensated absences represent the vested portion of accrued vacation and sick leave. See Note 1 for a summary of the Supervisor of Elections policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented. NOTE 4 - EMPLOYEE BENEFITS The Supervisor of Election participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- ofliving adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. -11-
NOTE 4 - EMPLOYEE BENEFITS - CONTINUED Supervisor of Elections Notes to Special-Purpose Financial Statements The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that both the employer and employee pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows: 10/01/13 07/01/14 Through Through 06/30/14 09/30/14 Regular employees 6.95% 7.37% Senior management 18.31% 21.14% Elected county officials 33.03% 43.24% Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 01, 2013 through September 30, 2014, the total payroll for all employees covered by the System was $136,309. The retirement contributions for all employees covered by the FRS for the years ended September 30, 2014, 2013 and 2012 were $32,388, $15,430 and $11,064 which were the required contributions. For the year ended September 30, 2014 retirement contributions represent 23.76% of covered payroll. NOTE 5 - EXCESS REVENUE Pursuant to Section 218.36(2), Florida Statutes, each County Officer shall pay into the County general fund all money in excess of the sum to which he or she is entitled under the provisions of Chapter 145. Excess revenues over expenditures of $186 are accrued and reported as a reversion to Board of County Commissioners. NOTE 6 - FUND EQUITY Spendable fund balances are classified based on a hierarchy of the Supervisor of Election s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2014, the Supervisor of Election reports net assets as restricted. Restricted net assets have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Assigned net assets have constraints placed on the use of resources by the Supervisor of Election s intent to use the resources for a specific purpose. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. The grant fund has restricted net assets in the amount of $2,509 which is restricted for a voter education grant. -12-
SUPPLEMENTARY INFORMATION
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Margie Laramore Supervisor of Elections of Blountstown, 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 special-purpose financial statements of the, Supervisor of Elections (the Supervisor of Elections ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Supervisor of Elections basic financial statements and have issued our report thereon dated June 4, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor of Elections internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor of Elections internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor of Election s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We did identify a certain deficiency in internal control described below that we consider to be significant deficiency. -13-
To the Honorable Margie Laramore Supervisor of Elections of Blountstown, Florida PRIOR YEAR FINDING AND RECOMMENDATION: Need for Segregation of Duties COMMENT: There is a lack of segregation of duties between employees who have recordkeeping responsibility and employees in custody of Supervisor of Elections assets. RECOMMENDATION: We realize that due to the size of the Supervisor of Elections staff it is difficult to achieve ideal separation of duties. However, the Supervisor of Elections should remain very active and involved in the day-to-day operations. Controls should be implemented to help compensate for these weakness and to provide check and balances. STATUS: This condition continues to exist. Compliance and Other Matters As part of obtaining reasonable assurance about whether the, Supervisor of Elections financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Supervisor of Elections Response to Findings, Supervisor of Elections response to the findings identified in our audit is described in the accompanying letter. We did not audit, Supervisor of Elections response 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 Supervisor of Elections 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. June 4, 2015-14-
INDEPENDENT ACCOUNTANT S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES To the Honorable Margie Laramore Supervisor of Elections of Blountstown, Florida We have examined, Supervisor of Elections (the Supervisor of Elections ) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the Supervisor of Elections compliance with those requirements. Our responsibility is to express an opinion on the Supervisor of Elections compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Supervisor of Elections compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor of Elections compliance with specified requirements. In our opinion, the Supervisor of Elections complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. 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. June 4, 2015-15-
INDEPENDENT AUDITORS MANAGEMENT LETTER To the Honorable Margie Laramore Supervisor of Elections of Blountstown, Florida Report on the Financial Statements We have audited the special-purpose financial statements of the, Supervisor of Elections (the Supervisor of Elections ) as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated June 4, 2015. Auditor s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountant s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 4, 2015, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have not been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This item was disclosed in the notes to the financial statements. -16-
To the Honorable Margie Laramore Supervisor of Elections of Blountstown, Florida Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Supervisor of Elections and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. June 4, 2015-17-
-18- Supervisor of Elections Management s Response
Tax Collector Special-Purpose Financial Statements September 30, 2014
Tax Collector Table of Contents September 30, 2014 REPORT Independent Auditors Report 1 SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet - Governmental Funds 3 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 4 Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 5 Special-Purpose Statement of Fiduciary Net Position - Agency Funds 6 Notes to Special-Purpose Financial Statements 7 SUPPLEMENTARY INFORMATION Combining Special-Purpose Statement of Fiduciary Net Position - Agency Funds 14 Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 15 Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes, Local Government Investment Policies 17 Independent Auditors Management Letter 18 Management s Response 20
REPORT
To the Honorable Becky Trickey-Smith Tax Collector of Blountstown, Florida Report on the Financial Statements INDEPENDENT AUDITORS REPORT We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Tax Collector (the Tax Collector ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Tax Collector s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these special-purpose 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 special-purpose 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 the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose 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 special-purpose 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 Tax Collector 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 specialpurpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
To the Honorable Becky Trickey-Smith Tax Collector of Blountstown, Florida As discussed in Note 1 to the financial statements, the Tax Collector s financial statements are specialpurpose financial statements presenting only the financial position and results of operations of the Tax Collector. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the specialpurpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Tax Collector. Opinion In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and fiduciary fund type of the Tax Collector as of September 30, 2014, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Tax Collector s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 11, 2015 on our consideration of the Tax Collector s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector s internal control over financial reporting and compliance. June 11, 2015
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Tax Collector Special-Purpose Balance Sheet Governmental Funds September 30, 2014 General Fund Assets Cash and cash equivalents $ 18,796 Total assets $ 18,796 Liabilities Accounts payable $ 232 Due to other funds 36 Due to Board of County Commissioners 18,528 Total liabilities 18,796 Fund balance - Total liabilities and fund balance $ 18,796 See accompanying notes to financial statements -3-
For the year ended September 30, 2014 Tax Collector Special-Purpose Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds General Fund Revenues Investment earnings $ 66 Total revenues 66 Expenditures Current: General government: Personal services 320,902 Operating expenses 76,566 Capital outlay 8,070 Total expenditures 405,538 Excess (deficiency) of revenues over (under) expenditures (405,472) Other financing sources (uses) Appropriations from Board of County Commissioners 424,000 Reversion to Board of County Commissioners (18,528) Net other financing sources (uses) 405,472 Net change in fund balance Fund balance - beginning Fund balance - ending $ - - - See accompanying notes to financial statements -4-
For the year ended September 30, 2014 Tax Collector Special-Purpose Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund Variance with Final Budget Original Final Actual Favorable Budget Budget Amounts (Unfavorable) Revenues Investment earnings $ - $ - $ 66 $ 66 Total revenues - - 66 66 Expenditures Current: General government: Personal services 341,500 341,500 320,902 20,598 Operating expenses 82,500 82,500 76,566 5,934 Capital outlay - - 8,070 (8,070) Total expenditures 424,000 424,000 405,538 18,462 Excess (deficiency) of revenues over (under) expenditures (424,000) (424,000) (405,472) 18,528 Other financing sources (uses) Appropriations from Board of County Commissioners 424,000 424,000 424,000 - Reversion to Board of County Commissioners - - (18,528) (18,528) Net other financing sources (uses) 424,000 424,000 405,472 (18,528) Net change in fund balance - - - - Fund balance - beginning - - - - Fund balance - ending $ - $ - $ - $ - See accompanying notes to financial statements -5-
Tax Collector Special-Purpose Statement of Fiduciary Net Position Agency Funds September 30, 2014 Agency Funds Assets Cash and cash equivalents $ 245,553 Due from other funds 36 Accounts receivable 12,370 Total assets $ 257,959 Liabilities Due to Board of County Commissioners $ 8,447 Due to other governmental units 249,512 Total liabilities $ 257,959 See accompanying notes to financial statements -6-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Tax Collector Notes to Special-Purpose Financial Statements The accounting policies of the, Tax Collector (the Tax Collector ) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these specialpurpose financial statements. Reporting Entity The Tax Collector (the Tax Collector ) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Tax Collector s special-purpose financial statements do not purport to reflect the financial position or the results of operations of taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Tax Collector s office is operationally autonomous from the Board of County Commissioners (the Board ), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Tax Collector is reported as part of the primary government of. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Tax Collector. The operations of the Tax Collector are funded by the Board. The receipts from the Board are recorded as other financing sources on the Tax Collector s financial statements and as other financing uses on the Board s financial statements. Any excess of revenue and other financial sources received over expenditures are remitted to the Board at year-end. Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Tax Collector, were prepared in conformity with generally accepted accounting principles in the United States of America. In preparing these financial statements the following is reported as a major governmental fund: General Fund - The general fund is the general operating fund of the Tax Collector. It is used to account for all financial resources, except those required to be accounted for in another fund. -7-
Tax Collector Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Tax Collector also reported the following fund type: Agency Funds - The agency funds are used to account for assets held by the Tax Collector as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature and do not involve measurement of changes in financial position. The Tax Collector reports the Tag and Tax as Agency funds. Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or financial flow measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting refers to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the Tax Collector s policy to use restricted resources first, then unrestricted resources as needed. Budgetary Requirements Florida Statutes, Chapter 218.35 and 195.087, detail the preparation, adoption and administration of the Tax Collectors' annual budget. The Tax Collector establishes an annual balanced budget for her office which displays the revenues available to the office and the functions for which the money is to be expended. The budgeted revenues and expenditures in the accompanying financial statements reflect all amendments approved by the Department of Revenue and the Board of County Commissioners. The budget is prepared on a basis consistent with generally accepted accounting principles. -8-
Tax Collector Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Capital Assets Tangible personal property is recorded as expenditures in the general fund at the time an asset is acquired. Assets acquired by the Tax Collector are capitalized at cost in capital asset accounts of the County. The Tax Collector s assets are reported in the statement of net position in the County s financial statements. The Tax Collector maintains custodial responsibility for the capital assets used by her office. Accumulated Compensated Absences Permanent full-time employees of the Tax Collector accrue sick leave hours based on pay periods worked with no limit on total hours accrued. Vacation time is earned depending on the length of employment and up to 120 hours may be carried forward to future years. Upon separation from employment, employees can be paid for unused sick leave and annual leave in accordance with personnel policy. The Tax Collector s accumulated compensated absences are reported in the statement of net position in the County s financial statements. Risk Management The Tax Collector is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The Tax Collector participates in the risk management program through the Calhoun County Board of County Commissioners, which uses commercial insurance to cover certain risks from loss. The Board obtained commercial insurance against losses for the following types of risk: Real and Personal Property Damage Public Employees' Bond Workers' Compensation General and Automobile Liability Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. -9-
Tax Collector Notes to Special-Purpose Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Tax Collections Chapter 197, Florida Statutes, governs property tax collections. Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts of 4%, 3%, 2% and 1% are allowed for early payment in November through February, respectively. Unpaid Taxes - Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and then sells tax certificates on all real property for unpaid taxes. Certificates not purchased are issued to the County. Any person owning real property upon which a tax certificate has been sold may reacquire the real property by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds The owner of a tax certificate may, after two years when the taxes have been delinquent (after April 1), file an application for tax deed sale. The County, as a certificate owner, may exercise similar procedures two years after taxes have been delinquent (after April 1). Tax deeds are issued to the highest bidder for the property, which is sold at public auction. The Clerk of the Court administers these sales. Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors Report, which is the date the financial statements were available to be issued. Due to Others This account is used to account for assets held by the Tax Collector in a trustee capacity for other governmental agencies or individuals. NOTE 2 - DEPOSITS AND INVESTMENTS At September 30, 2014, the carrying amount of the Tax Collector's cash and cash equivalents was $264,349 and the bank balance was $299,614. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. -10-
NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) Tax Collector Notes to Special-Purpose Financial Statements Florida Statutes authorize the Tax Collector to invest in certificates of deposit, repurchase agreements and the State Treasurer s Investment Pool. In addition, the statutes allow the Tax Collector to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies. CREDIT RISK At September 30, 2014, the Tax Collector did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2014, the Tax Collector did not hold any investments. CUSTODIAL CREDIT RISK At September 30, 2014, the Tax Collector did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2014, the Tax Collector did not hold any investments. NOTE 3 - LONG-TERM LIABILITIES The Tax Collector s long-term liabilities are reported in the statement of net assets in the County s financial statements. Long-term liability activity for the year ended September 30, 2014, was as follows: BEGINNING BALANCE ADDITIONS REDUCTIONS ENDING BALANCE DUE WITHIN ONE YEAR Governmental activities: Compensated absences $ 13,092 $ 150 $ - $ 13,242 $ - Total $ 13,092 $ 150 $ - $ 13,242 $ - Accrued compensated absences represent the vested portion of accrued vacation, sick leave, and compensatory time. See Note 1 for a summary of the Tax Collector s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented. -11-
Tax Collector Notes to Special-Purpose Financial Statements NOTE 4 - EMPLOYEES PENSION PLAN The Tax Collector participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- ofliving adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows: 10/01/13 07/01/14 Through Through 06/30/14 09/30/14 Regular employees 6.95% 7.37% Senior management 18.31% 21.14% Elected county officials class 33.03% 43.24% Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. Total payroll for the Tax Collector employees covered by the Florida Retirement System was $234,408 for the year ended September 30, 2014. The Tax Collector s contribution to the plan for the year ended September 30, 2014, 2013, and 2012 totaled $44,143, $22,904 and $27,382. These contributions represented 18.83% of covered payroll for the year ended September 30, 2014. -12-
Tax Collector Notes to Special-Purpose Financial Statements NOTE 5 - EXCESS REVENUE Pursuant to Section 218.36(2), Florida Statutes, any excess revenues over expenditures determined as of the fiscal year end, is returned to each governmental unit in the same proportion as the fees paid by the governmental unit bear to the total fee income of the Tax Collector. For the year ending September 30, 2014, excess revenues over expenditures of $18,528 are accrued and reported as a reversion to Board of County Commissioners. -13-
SUPPLEMENTARY INFORMATION