Year Ending September 30, 2014 - Calhoun County Clerk of Court

Transcription

Calhoun County, Florida 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 H. Matthew Fuqua AUDITOR Carr, Riggs & Ingram, LLC Calhoun County, Florida 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
Calhoun County, Florida Table of Contents September 30, 2014 SUPPLEMENTARY INFORMATION
Combining Balance Sheet ‐ Nonmajor Governmental Funds
37
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Nonmajor Governmental Funds 40
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,
Florida Statutes, Local Government Investment Policies
60
Management’s Response
61
Special‐Purpose Financial Statements
Clerk of the Circuit Court
Property Appraiser
Sheriff
Supervisor of Elections
Tax Collector
REPORT
INDEPENDENT AUDITORS' REPORT To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Report on the Financial Statements 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 Calhoun County, Florida, 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 Calhoun County, Florida 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 Calhoun County, Florida 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 Calhoun County, Florida’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 Calhoun County, Florida 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 Calhoun County, Florida’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)
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.
2.
3.
Government-wide financial statements
Fund financial statements
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)

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.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
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
Capital Assets, Net
Total Assets
Total Liabilities are comprised of the following elements:
Current and Other Liabilities
Long-term Liabilities
Total Liabilities
Total Net Position is comprised of the following elements:
Net Position:
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Net Position
$
7,472,132
50,801,248
6,621,382
50,952,560
$
58,273,380
57,573,942
$
2,050,960
532,116
2,583,076
2,652,968
676,553
3,329,521
$
50,426,210
1,841,848
3,422,246
55,690,304
50,390,022
1,133,659
2,720,740
54,244,421
Page 4 (3 of 7)
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
Activities
FY 2014
REVENUES
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
$
General Revenues:
Property Taxes
Local Option Taxes
Other Taxes and Shared Revenues
Investment Earnings
Other
Total Revenues
EXPENSES
Program Activities
General Government
Public Health and Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Court Related
Interest on long-term debt
Total Expense
NET INCREASE
Net Position - Beginning
Net Position - Ending
$
Governmental
Activities
FY 2013
1,054,452
1,742,886
1,844,962
864,376
1,015,596
3,203,306
3,733,869
932,033
3,417,587
3,076
1,151,039
13,879,904
3,847,774
890,852
3,302,295
4,442
688,745
13,817,386
2,742,174
3,473,935
219,094
3,786,186
508,513
370,583
691,204
619,372
22,960
12,434,021
2,585,515
3,199,225
169,937
4,772,979
304,428
254,951
666,457
552,004
31,757
12,537,253
1,445,883
1,280,133
54,244,421
52,964,288
55,690,304
54,244,421
Page 4 (4 of 7)
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)
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)
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
Compensated absences
Other post-employment benefit obligation
$ 375,038
243,438
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
Calhoun County, Florida Statement of Net Position
September 30,
2014
Primary Government
Governmental
Activities
Assets
Cash and cash equivalents
Investments
Accounts receivable
Due from other funds
Due from other governmental units
Due from Individuals
Notes receivable
Prepaid expenses
Capital Assets
Land Buildings and improvements
Machinery and equipment
Infrastructure
Intangible assets
Construction in progress
Less allowance for depreciation
$ 5,205,305
26,400
24,660
40,701
2,035,443
264
25,202
114,157
2,762,119
13,191,821
7,989,327
46,203,112
92,631
1,731,428
(21,169,190)
58,273,380
Total assets
Liabilities
Accounts payable and accrued expenses
Due to other governmental units
Deferred revenue
Long‐term liabilities
Portion due or payable within one year
Notes payable
Portion due or payable after one year
Notes payable
Other post‐employment benefit obligation
Total liabilities
776,654
529,382
496,564
187,500
60,860
187,538
182,578
162,000
2,583,076
Net position
Invested in capital assets, net of related debt
Restricted for
General government
Public Safety
Physical environment
Transportation
Culture and recreation
Court related
Unrestricted
15,857
203,740
119,290
1,125,747
242,800
134,414
3,422,246
Total net position
$ 55,690,304
See accompanying notes to financial statements ‐ 5 ‐ 50,426,210
Calhoun County, Florida Statement of Activities
For the year ended September 30, 2014
FUNCTIONS/PROGRAMS
Primary Government
Governmental activities
General government
Public health and safety
Transportation
Economic environment
Human services
Court related
Interest on long‐term debt
Total primary government
CHARGES
FOR
SERVICES
EXPENSES
PROGRAM REVENUES
OPERATING
CAPITAL
GRANTS &
GRANTS &
CONTRIBUTIONS
CONTRIBUTIONS
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL
ACTIVITIES
Total
$ 2,742,174
3,473,935
219,094
3,786,186
508,513
370,583
691,204
619,372
22,960
$ 232,828 $ 100,246 $ ‐
260,574 321,211 163,179
‐ 235,166 ‐
228,196 474,700 1,664,537
‐ 422,783 ‐
‐ ‐ ‐
49,999 171,246 17,246
282,855 17,534 ‐
‐ ‐ ‐
$ (2,409,100)
(2,728,971)
16,072
(1,418,753)
(85,730)
(370,583)
(452,713)
(318,983)
(22,960)
$ (2,409,100)
(2,728,971)
16,072
(1,418,753)
(85,730)
(370,583)
(452,713)
(318,983)
(22,960)
$ 12,434,021
$ 1,054,452 $ 1,742,886 $ 1,844,962
(7,791,721)
(7,791,721)
3,733,869
932,033
3,417,587
3,076
1,151,039
3,733,869
932,033
3,417,587
3,076
1,151,039
9,237,604
9,237,604
1,445,883
1,445,883
Net position, beginning
54,244,421
54,244,421
Net position, ending
$ 55,690,304
$ 55,690,304
General revenues
Taxes:
Property taxes
Local option taxes
Sales tax and other taxes
Investment earnings
Miscellaneous Total general revenues Change in net position
See accompanying notes to financial statements ‐ 6 ‐ Calhoun County, Florida Balance Sheet Governmental Funds
September 30, 2014
General
Funds
Assets
Investments
Accounts receivable
Due from individuals
Notes receivable
Prepaid expenses
Total assets
Liabilities
Due to other funds
Deferred revenue
Total liabilities
County
Transportation
Trust I
County
Transportation Trust II
Affordable
Housing
(SHIP)
Other
Governmental Funds
Total
Governmental Funds
$ 2,967,339 $ 971,289 $ ‐ $ 385,000 $ 881,677 $ 5,205,305
‐ ‐ ‐ ‐ 26,400 26,400
4,449 ‐ ‐ ‐ 20,211 24,660
349,236 ‐ ‐ ‐ 26,570 375,806
609,218 440,173 607,886 ‐ 378,166 2,035,443
264 ‐
‐ ‐ 264
‐ ‐ ‐ 25,202 ‐ 25,202
92,144 22,013 ‐ ‐ ‐ 114,157
$ 4,022,650 $ 1,433,475 $ 607,886 $ 410,202 $ 1,333,024 $ 7,807,237
$ 258,718 $ 56,936 $ 293,644 $ 11,315 $ 156,041 $ 776,654
3,161 707 212,591 14,358 104,288 335,105
‐ 469,776 ‐ ‐ 59,606 529,382
4,494 ‐ ‐ 384,529 107,541 496,564
266,373
527,419
506,235
410,202
427,476
2,137,705
92,144
‐
‐
3,664,133
22,013
884,043
‐
‐
‐
101,651
‐
‐
‐
‐
‐
‐
‐
834,141
71,407
‐
114,157
1,819,835
71,407
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
Fund balances
Nonspendable
Restricted
Committed
Unassigned
See accompanying notes to financial statements ‐ 7 ‐ Calhoun County, Florida 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 ‐ Calhoun County, Florida Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds
General
Funds
County
Transportation
Trust I
County
Transportation
Trust II
Affordable
Housing
SHIP
Other
Governmental Funds
Total
Governmental Funds
Revenues
Taxes
Permits, fees and special assessment
Intergovernmental
Charges for services
Fines and forfeitures
Grants
Investment earnings Contributions and donations
Other fees and miscellaneous
$ 4,458,305
28,097
2,612,138
230,079
‐
692,078
2,635
‐
9,255
$ 21,884
‐
833,993
2,689
‐
611,733
‐
‐
753,900
$ 260,998
‐
‐
‐
‐
646,403
2
‐
‐
$ ‐
‐
‐
‐
‐
355,092
148
‐
1,342
$ ‐
3,977
122,954
233,979
103,881
1,282,542
291
9,832
253,692
$ 4,741,187
32,074
3,569,085
466,747
103,881
3,587,848
3,076
9,832
1,018,189
Total revenues
8,032,587
2,224,199
907,403
356,582
2,011,148
13,531,919
2,577,864
2,812,660
67,605
19,491
42,161
345,559
58,287
112,979
530,919
‐
‐
39,119
1,003,989
‐
‐
‐
‐
831,110
‐
‐
‐
‐
‐
‐
‐
‐
646,403
‐
‐
‐
‐
356,582
‐
‐
‐
‐
30
357,844
77,154
223,458
67,691
‐
526,240
455,599
913,098
2,577,894
3,170,504
183,878
1,246,938
466,434
345,559
584,527
568,578
2,921,530
‐
‐
‐
‐
187,500
22,960
‐
‐
‐
‐
187,500
22,960
6,567,525
1,874,218
856,863
356,582
2,621,114
12,276,302
1,465,062
349,981
50,540
‐
(609,966)
1,255,617
‐
(714,280)
‐
‐
314,787
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
425,597
(26,104)
232,100
(29,938)
740,384
(740,384)
232,100
(29,938)
(714,280)
314,787
‐
‐
601,655
202,162
750,782
664,768
50,540
‐
(8,311)
1,457,779
Expenditures
Current:
General Government
Transportation
Human services
Court related
Capital outlay
Debt Service
Principal
Interest and other charges
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Operating transfers in
Operating transfers out
Transfers from State of Florida
Transfers to State of Florida
Net other financing sources (uses)
Net change in fund balances
Fund balances ‐ beginning Fund balances ‐ ending
3,005,495
241,288
51,111
‐
913,859
4,211,753
$ 3,756,277
$ 906,056
$ 101,651
$ ‐
$ 905,548
$ 5,669,532
See accompanying notes to financial statements ‐ 9 ‐ Calhoun County, Florida 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
statement of net position.
187,500
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:
(20,084)
Change in net position of governmental activities
See accompanying notes to financial statements ‐ 10 ‐ $ 1,445,883
Calhoun County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Budget to Actual For the year ended September 30, 2014
Original
Budget
Final Budget
Actual
Variance with Final Budget Favorable
(Unfavorable)
Revenues
Taxes
Intergovernmental
Grants
Less 5% of estimated revenues
$ 4,543,106 $ 4,543,106 $ 4,458,305
25,600 25,600 28,097
2,420,971 2,837,804 2,612,138
196,100 204,533 230,079
1,522,387 1,816,398 692,078
2,000 2,000 2,635
‐ ‐ ‐
2,400 4,869 9,255
(363,996) (363,996) ‐
$ (84,801)
2,497
(225,666)
25,546
(1,124,320)
635
‐
4,386
363,996
Total revenues
8,348,568
9,070,314
8,032,587
(1,037,727)
Expenditures
Current:
General government
Transportation
Human services
Court related
Capital outlay
Reserve for contingencies
2,623,423
2,816,344
79,583
13,000
50,579
375,682
99,502
103,241
1,447,397
8,080
2,705,478
2,861,757
79,583
13,000
50,579
375,682
99,502
123,413
2,052,503
8,080
2,577,864
2,812,660
67,605
19,491
42,161
345,559
58,287
112,979
530,919
‐
127,614
49,097
11,978
(6,491)
8,418
30,123
41,215
10,434
1,521,584
8,080
Total expenditures
7,616,831
8,369,577
6,567,525
1,802,052
731,737
700,737
1,465,062
764,325
(751,280)
(720,280)
(714,280) 6,000
(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
Operating transfers ‐ net
See accompanying notes to financial statements ‐ 11 ‐ Calhoun County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balance County Transportation Fund I Budget to Actual For the year ended September 30, 2014
Original
Budget
Final
Budget
Actual
Variance with
Final Budget
Favorable
(Unfavorable)
Revenues
Taxes
Intergovernmental Charges for services
Grants
$ 23,274
819,999
2,688
‐
‐
(42,298)
$ 23,274
819,999
2,688
155,916
752,827
(42,298)
$ 21,884
833,993
2,689
611,733
753,900
‐
$ (1,390)
13,994
1
455,817
1,073
42,298
Total revenues
803,663
1,712,406
2,224,199 511,793
Expenditures
Current:
Transportation
Capital outlay
‐
1,155,450
‐
45,916
1,118,450
862,827
39,119 6,797
1,003,989 114,461
831,110 31,717
Total expenditures
1,155,450
2,027,193
1,874,218 152,975
(351,787) (314,787) 349,981 664,768
351,787
314,787
314,787 ‐
351,787
314,787
314,787 ‐
‐
‐
664,768 664,768
‐
241,288
241,288 ‐
$ ‐ $ 241,288 $ 906,056 $ 664,768
Total other financing sources (uses)
See accompanying notes to financial statements ‐ 12 ‐ Calhoun County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balance County Transportation Trust II Budget to Actual For the year ended September 30, 2014
Original
Budget
Final
Budget
Actual
Variance with
Final Budget
Favorable
(Unfavorable)
Revenues
Taxes
Grants
$ 260,878 $ 260,878 $ 260,998
‐ 1,943,314 646,403
2
(13,044) (13,044) ‐
Total revenues
247,834
2,191,148
907,403 (1,283,745)
80,274
‐
80,274
1,943,314
‐ 80,274
646,403 1,296,911
187,500
23,060
187,500
23,060
187,500 ‐
22,960 100
Total expenditures
290,834
2,234,148
856,863 1,377,285
(43,000) (43,000) 50,540 93,540
Expenditures
Current:
Transportation
Capital outlay
Debt service
Principal
Interest and other charges
$ 120
(1,296,911)
2
13,044
(43,000) (43,000) 50,540 93,540
43,000
$ ‐ $ 8,111 $ 101,651 $ 93,540
51,111
See accompanying notes to financial statements ‐ 13 ‐ 51,111 ‐
Calhoun County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balance Affordable Housing (SHIP) Budget to Actual For the year ended September 30, 2014
Original
Budget
Final
Budget
Actual
Variance with
Final Budget
Favorable
(Unfavorable)
Revenues
Grants
Investment earnings
Miscellaneous
$ 350,000
‐
‐
$ 384,375
‐
‐
$ 355,092
148
1,342
$ (29,283)
148
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
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
$ ‐
$ ‐
$ ‐
$ ‐
See accompanying notes to financial statements ‐ 14 ‐ Calhoun County, Florida Statement of Fiduciary Net Position Agency Funds September 30, 2014
Agency
Funds
Assets
Due from other governments
$ 336,553
1,689
12,194
611
Total assets
$ 351,047
Liabilities
Due to other funds
Due to Board of County Commissioners
Due to individuals
$ 19,169
23,221
271,781
36,876
Total liabilities
$ 351,047
See accompanying notes to financial statements ‐ 15 ‐ Calhoun County, Florida 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 Calhoun County, Florida (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 County‐
appropriated 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‐
Calhoun County, Florida 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 Calhoun County, Florida, 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‐
Calhoun County, Florida 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‐
Calhoun County, Florida Notes to Financial Statements NOTE 1 ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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‐
Calhoun County, Florida Notes to Financial Statements NOTE 1 ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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‐
Calhoun County, Florida Notes to Financial Statements NOTE 1 ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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‐
Calhoun County, Florida 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‐
Calhoun County, Florida 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‐
Calhoun County, Florida Notes to Financial Statements NOTE 5 ‐ INTERFUND BALANCES Interfund balances at September 30, 2014, consisted of the following: Receivable Fund
General fund
Payable Fund
Affordable Housing (SHIP)
County Transportation Trust I
County Transportation Trust II
Nonmajor governmental funds
Other special revenue funds:
Weatherization
Neighborhood Revitalization
IDA
Inmate Welfare
Investigative Resources
Agency
4,981
100
86,679
5,917
1,251
22,652
General Fund
Other special revenue funds
Agency Funds
3,125
4,276
19,169
$ 14,358
707
212,591
Nonmajor governmental funds
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
General fund
County Transportation Trust I
Special Revenue Funds:
Library
Waste Management
Sheriff's special revenue funds
$
Total
TRANSFERS
OUT
314,787
$ 714,280
‐
269,656
155,941
‐
26,104
‐
$ 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‐
Calhoun County, Florida 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
Machinery and equipment
Machinery and equipment ‐ Sheriff
Intangibles
Infrastructure 11,236,734 1,294,664 ‐ 12,531,398
7,283,769 795,275 1,444,742 6,634,302
1,272,353
114,969
32,297 1,355,025
92,631
- 92,631
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
34,882
Physical Environment
Transportation
2,538,562
41,091
Human services
25,024
111,669
Court related
17,326
Total depreciation expense‐governmental activities
‐25‐
$ 3,188,727
Calhoun County, Florida 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: NOTES PAYABLE
FISCAL YEAR ENDING
SEPTEMBER 30,
PRINCIPAL
INTEREST
2015
2016
$ 187,500 $ 14,410
187,538 5,783
Total
$ 375,038 $ 20,193
Long‐term debt activity for the year ended September 30, 2014, was as follows: BEGINNING
BALANCE
Governmental activities:
Notes payable Othr post-employment benefits
Total ADDITIONS
REDUCTIONS
ENDING
BALANCE
DUE
WITHIN
ONE YEAR
$ 562,538 $ ‐ $ 187,500 $ 375,038 $ 187,500
134,000 28,000 ‐ 162,000 ‐
223,354 30,153 10,069 243,438 60,860
$ 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‐ Calhoun County, Florida 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: Regular class
Senior management
Elected county officials' class
Special risk class
DROP program participants
10/01/13‐6/30/14
6.95%
18.31%
33.03%
19.06%
12.84%
‐27‐ 07/01/14‐09/30/14
7.37%
21.14%
43.24%
19.82%
12.28%
Calhoun County, Florida 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
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 six‐
cents 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‐ Calhoun County, Florida 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‐ Calhoun County, Florida 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 non‐
spendable 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‐ Calhoun County, Florida Notes to Financial Statements NOTE 13 ‐ FUND BALANCE (CONTINUED) At September 30, 2014, fund balance is comprised of the following: Restricted Fund Balance: Funds
Purpose
Special Revenue Fund
County Transportation I
County Transportation II
Nonmajor governmental funds:
Domestic Violence
Boating improvement program
Police Education
Radio Communications
Library
Waste management
Crime prevention
Industrial development authority
Courthouse facilities
Teen court
Voter education
Moderization of public records
Court‐related technology
Emergency 911 operations
Drug enforcement
Inmate welfare
Court‐related operational needs
Total nonmajor governmental funds
Total restricted fund balance
Committed Fund Balance:
Funds
$ 884,043
101,651
15,230
26,901
1,390
6,234
215,899
119,290
33,570
118,040
104,693
16,994
2,509
13,348
10,942
25,344
85,009
36,963
1,785
834,141
$ 1,819,835
Purpose
Old Courthouse Restoration
$
Total committed fund balance
$ 71,407
‐31‐ 71,407
Calhoun County, Florida Notes to Financial Statements NOTE 13 ‐ FUND BALANCE (CONTINUED) Non‐spendable Fund Balance:
Funds
Purpose
Funding for:
General Fund
Prepaid expenses
Conty Transportation Trust I
Prepaid expenses
Total non‐spendable fund balance
$ 92,144
22,013
$ 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‐ Calhoun County, Florida Notes to Financial Statements NOTE 17 ‐ POST EMPLOYMENT BENEFITS OTHER THAN PENSION 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
Retirees and beneficiaries currently receiving benefits
Total membership
Participating employers
82
1
83
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) $ 457.34 $ 417.26 Retiree Retiree & Dependent $ 914.68 $ 876.24 ‐33‐ Calhoun County, Florida Notes to Financial Statements NOTE 17 ‐ POST EMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) 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, Annual required contribution
Interest on prior year net OPEB obligation
Adjustments to annual required contribution
2014
$ 46,000 4,000 (13,000)
Annual OPEB costs
Estimated employer contribution made
37,000 (9,000)
Increase (decrease) in net OPEB obligation
Net OPEB obligation, beginning of year
28,000 134,000 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
Ended
9/30/2012
9/30/2013
9/30/2014
Annual
OPEB Costs
Percentage of OPEB
Cost Contributed
Net OPEB
Obligation
$
37,000
24%
$
106,000
$
37,000
24%
$
134,000
$
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‐ Calhoun County, Florida Notes to Financial Statements NOTE 17 ‐ POST EMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Schedule of Funding Progress – Unfunded
Actuarial
Actuarial
Actuarial
Actuarial
Valuation
Value of
Liabilities Liabilities
Funded
Covered
Date
Assets
(AAL)
(UAAL)
Ratio
Payroll
10/1/2010 $ ‐ $ 187,000 $ 187,000
10/1/2012 $ ‐ $ 177,000 $ 177,000
0.00%
0.00%
$ 2,664,000
$ 2,745,000
UAAL as a
Percentage
Of Covered
Payroll
7.0%
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‐ Calhoun County, Florida 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, Calhoun County, Florida 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 Calhoun County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014
Industrial
Development
Authority
Waste
Management Grants
Neighborhood
Revitalization
Project
Weatherization
Sheriff's
Special Revenue
Funds
$ 22,233
‐
1,447
‐
296,697
$ 78,468
‐
16,354
‐
25,908
$ 100
‐
‐
‐
‐
$ 859
‐
‐
‐
17,088
$ 118,102
‐
2,334
9,130
32,984
$ 320,377
$ 120,730
$ 100
$ 17,947
$ 162,550
$ 110,391
86,679
‐
5,267
$ 1,440
‐
‐
‐
$ ‐
100
‐
‐
$ 12,966
4,981
‐
‐
$ 2,706
12,528
‐
‐
202,337
1,440
100
17,947
15,234
118,040
‐
119,290
‐
‐
‐
‐
‐
147,316
‐
Total fund balances
118,040
119,290
‐
‐
147,316
$ 320,377
$ 120,730
$ 100
$ 17,947
$ 162,550
Assets
Investments
Accounts receivable
Total assets
Liabilities
Due to other funds
Deferred revenue
Total liabilities
Fund balances
Restricted
Committed
‐37‐ Page 2 of 3 Calhoun County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014
Library
Boating Improvement
Program
Old
Courthouse
Restoration
Supervisor
of Elections'
Grants Fund
Domestic
Violence
$ 77,751
‐
‐
‐
‐
$ 207,018
26,400
76
‐
86
$ 26,630
‐
‐
271
‐
$ 71,407
‐
‐
‐
‐
$ 7,401
‐
‐
‐
‐
$ 15,230
‐
‐
‐
‐
$ 77,751
$ 233,580
$ 26,901
$ 71,407
$ 7,401
$ 15,230
$ 742
‐
‐
77,009
$ 16,981
‐
‐
700
$ ‐
‐
‐
‐
$ ‐
‐
‐
‐
$ ‐
‐
‐
4,892
$ ‐
‐
‐
‐
77,751
17,681
‐
‐
4,892
‐
‐
‐
215,899
‐
26,901
‐
‐
71,407
2,509
‐
15,230
‐
Total fund balances
‐
215,899
26,901
71,407
2,509
15,230
$ 77,751
$ 233,580
$ 26,901
$ 71,407
$ 7,401
$ 15,230
Assets
Investments
Accounts receivable
Total assets
Liabilities
Due to other funds
Deferred revenue
Total liabilities
Article V
Grant Fund
Fund balances
Restricted
Committed
‐38‐ Page 3 of 3 Calhoun County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014
Courthouse
Facilities
Other
Special
Revenue
Total
Nonmajor
Governmental Funds
$ 24,185
‐
‐
1,890
‐
$ 103,030
‐
‐
1,663
‐
$ 52,133
‐
‐
1,255
5,403
$ 881,677
26,400
20,211
26,570
378,166
$ 89,491
$ 26,075
$ 104,693
$ 58,791
$ 1,333,024
$ 10,212
‐
59,606
19,673
$ ‐
‐
‐
‐
$ ‐
‐
‐
‐
$ 603
‐
‐
‐
$ 156,041
104,288
59,606
107,541
89,491
‐
‐
603
427,476
‐
‐
26,075
‐
104,693
‐
58,188
‐
834,141
71,407
Total fund balances
‐
26,075
104,693
58,188
905,548
$ 89,491
$ 26,075
$ 104,693
$ 58,791
$ 1,333,024
Assets
Investments
Accounts receivable
Total assets
Liabilities
Due to other funds
Deferred revenue
Total liabilities
Clerk's
Article V
Fund
Clerk's
Modernization
Trust Fund
$ 77,130
‐
‐
12,361
‐
Fund balances
Restricted
Committed
‐39‐ Page 1 of 3 Calhoun County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the year ended September 30, 2014
Industrial
Development
Authority
Waste
Management Grants
Neighborhood
Revitalization
Project
Weatherization
Sheriff's
Special
Revenue
Funds
Revenues
Intergovernmental
Grants
$ ‐
‐
‐
‐
876,041
31
‐
244,063
$ ‐
‐
‐
‐
73,807
‐
‐
‐
$ ‐
‐
‐
‐
‐
‐
‐
‐
$ ‐
‐
‐
‐
67,691
‐
‐
‐
$ ‐
84,000
39,952
‐
76,223
20
2,811
‐
Total revenue
1,120,135
73,807
‐
67,691
203,006
Expenditures
Current:
General government
Transportation
Human services
Court related
Capital outlay
‐
‐
‐
223,458
‐
‐
‐
‐
885,115
‐
‐
77,154
‐
‐
‐
‐
‐
7,600
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
67,691
‐
‐
‐
‐
‐
327,630
‐
‐
‐
‐
‐
‐
10,817
Total expenditures
1,108,573
84,754
‐
67,691
338,447
11,562
(10,947)
‐
‐
(135,441)
‐
‐
‐
‐
‐
(26,104)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
155,941
‐
‐
‐
‐
(26,104)
‐
‐
155,941
11,562
(37,051)
‐
‐
20,500
106,478
156,341
‐
‐
126,816
$ 118,040
$ 119,290
$ ‐
$ ‐
$ 147,316
Fund balances ‐ beginning Fund balances ‐ ending
‐40‐ Page 2 of 3 Calhoun County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the year ended September 30, 2014
Article V
Grant Fund
Revenues
Intergovernmental
Grants
Total revenue
Library
Boating Improvement
Program
Old
Courthouse
Restoration
$ ‐ $ ‐ $ 3,977 $ ‐
‐ 38,954 ‐ ‐
‐ 5,263 ‐ ‐
‐ 1,804 ‐ ‐
17,534 171,246 ‐ ‐
44 149 ‐ ‐
‐ 1,621 ‐ ‐
‐ 9,421 ‐ ‐
Supervisor of Elections'
Grant Fund
Domestic
Violence
$ ‐ $ ‐
‐ ‐
‐ 589
‐ ‐
‐ ‐
3 ‐
‐ ‐
208 ‐
17,578
228,458
3,977
‐ 211
589
Expenditures
Current:
General government
Transportation
Court related
Capital outlay
‐
‐
‐
‐
‐
‐
17,578
‐
‐
‐
‐
‐
‐
525,048
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,192
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Total expenditures
17,578
525,048
‐
1,192 ‐
‐
‐
(296,590) 3,977
(1,192) 211
589
‐
‐
‐
269,656
‐
‐
‐
‐
‐
‐ ‐
‐ ‐
‐ ‐
‐
‐
‐
‐
269,656
‐
‐ ‐
‐
‐
(26,934) 3,977
(1,192) 211
589
Fund balances ‐ beginning ‐
72,599 2,298
14,641
$ ‐ $ 215,899 $ 26,901 $ 71,407 $ 2,509 $ 15,230
‐41‐ 242,833
22,924
Page 3 of 3 Calhoun County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the year ended September 30, 2014
Clerk's
Article V
Fund
Clerk's
Modernization Courthouse
Trust Fund
Facilities
Other
Special
Revenue
Total
Nonmajor
Governmental Funds
Revenues
Intergovernmental
Grants
$ ‐
‐
138,214
77,865
‐
31
‐
‐
$ ‐
‐
13,521
16,807
‐
13
‐
‐
$ ‐
‐
24,111
‐
‐
‐
‐
‐
$ ‐
‐
12,329
7,405
‐
‐
5,400
‐
$ 3,977
122,954
233,979
103,881
1,282,542
291
9,832
253,692
Total revenue
216,110
30,341
24,111
25,134
2,011,148
‐
‐
‐
‐
‐
‐
410,106
8,166
30
‐
‐
‐
‐
‐
21,714
1,400
‐
‐
‐
‐
‐
‐
3,330
‐
‐
30,214
‐
‐
‐
‐
2,871
‐
30
357,844
77,154
223,458
67,691
526,240
455,599
913,098
418,272
23,144
3,330
33,085
2,621,114
(202,162) 7,197
20,781
(7,951) (609,966)
‐
‐
232,100
(29,938)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
425,597
(26,104)
232,100
(29,938)
202,162
‐
‐
‐
601,655
‐
7,197
20,781
(7,951) (8,311)
Fund balances ‐ beginning ‐
18,878
83,912
66,139
913,859
$ ‐
$ 26,075
$ 104,693
$ 58,188
$ 905,548
Expenditures
Current:
General government
Transportation
Court related
Capital outlay
Total expenditures
‐42‐ Page 1 of 2 Calhoun County, Florida Combining Statement of Fiduciary Net Position Agency Funds September 30, 2014
Assets
Total assets
Liabilities
Due to other funds
Due to individuals
Total liabilities
General
Trust
Clerk
Child Support
Jury and
Witness
$ 82,923
‐
‐
237
$ 2,440
53
198
‐
$ 1,440
1,600
‐
‐
$ 83,160
$ 2,691
$ 3,040
$ 16,925
12,682
20,279
33,274
$ 1,600
1,042
‐
49
$ ‐
1,050
1,990
‐
$ 83,160
$ 2,691
$ 3,040
‐43‐ Page 2 of 2 Calhoun County, Florida Combining Statement of Fiduciary Net Position Agency Funds September 30, 2014
Assets
Total assets
Liabilities
Due to other funds
Due to individuals
Total liabilities
Tax Collector
Sheriff
Inmate
Trust
Tax
Tag
Totals
$ 4,197
‐
‐
‐
$ 203,772
36
‐
‐
$ 41,781
‐
11,996
374
$ 336,553
1,689
12,194
611
$ 4,197
$ 203,808
$ 54,151
$ 351,047
$ 644
‐
‐
3,553
$ ‐
125
203,683
‐
$ ‐
8,322
45,829
‐
$ 19,169
23,221
271,781
36,876
$ 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 Calhoun County, Florida (the “County”) as of and for the year ended September 30, 2014, which collectively comprise Calhoun County, Florida’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 Calhoun County, Florida’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 Calhoun County, Florida’s response to the findings identified in our audit is described in the accompanying letter. We did not audit Calhoun County, Florida’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 Calhoun County, Florida’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 Calhoun County, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014
Federal Agency
Pass through entity
Federal Award Programs
United States Department of Homeland Security
Pass through Florida Department Of Emergency Management
Hazard Mitigation Grant Program:
Wind Retrofit Project
Chipola Road Stormwater Drainage
Total Hazard Mitigation Grants
Pass through Florida Department of Economic Opportunity
Disaster #4177
Total Disaster Grants
Emergency Management Performance Grant
Emergency Management Performance Grant
Total Emergency Management Performance Grants
National Directorate FY 2012 State Homeland Security Grant Program
National Directorate FY 2013 State Homeland Security Grant Program
Total National Directorate State Homeland Security Grant Program
Total United States Department of Homeland Security
United States Department of Transportation
Federal Aviation Administration
Airport Improvement Programs
Pass through Florida Department of Transportation
Local Agency Program Agreement ‐ CR69A Paved Shoulder Project
Local Agency Program Agreement ‐ Chipola Road Sidewalk Project
Total Local Agency Program Agreement
Total United States Department of Transportation
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
Child Support Enforcement ‐ Title IVD
Child Support Enforcement ‐ Title IVD Total Child Support Enforcement
Total United States Department of Health and Human Services
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
JAGD Block Grant
Total Edward Byrne Memoria Justice Assistance Grant
Crime Victim Assistance
Victims of Crime Act (VOCA)
Bulletproof Vest Partnership Program
Total United States Department of Justice
‐ 49 ‐ CFDA
Number
Contract/
Grant
Number
97.039
97.039
13HM‐2W‐02‐17‐01‐487
14HM‐2Z‐02‐17‐01‐330
97.036
15‐SP‐8Z‐02‐17‐02‐503
113,838
113,838
97.042
97.042
14‐FG‐1M‐02‐17‐01‐074
15‐FG‐1M‐02‐17‐01‐074
27,164
2,169
29,333
97.067
97.067
12‐DS‐20‐17‐01‐405
14‐DS‐C2‐02‐17‐01‐171
15,000
14,200
29,200
426,177
20.106
3‐12‐0158‐005‐2013
20.205
20.205
429852‐1‐38‐1/429852‐2‐38‐1 (AQI33)
4333566‐1‐38‐1
15,500
894
16,394
344,150
93.563
93.563
93.563
CD307
CSS07
CST07
100,246
911
238
101,395
101,395
16.738
16.738
2014‐JAGD‐CALH‐1‐E5‐049
2014‐JAGD‐CALH‐1‐E6‐034
44,909
1,000
45,909
16.575
V 13341
16.607
N/A
Expenditures
$ 132,528
121,278
253,806
327,756
45,112
3,339
94,360
Page 2 of 4 Calhoun County, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014
Federal Agency
Pass through entity
Federal Award Programs
United States Department of Energy
Pass through Florida Department of Economic Opportunity:
Weatherization Assistance For Low‐Income Persons
Weatherization Assistance
Weatherization Assistance Total United States Department of Energy
United States Department of Agriculture
Emergency Watershed Protection Program
Natural Resources Conservation Service
Total United States Department of Agriculture
Total expenditures of Federal Awards CFDA
Number
Contract/
Grant
Number
81.042
81.042
13WX‐9Z‐02‐17‐01‐006
14WX‐0G‐02‐17‐01‐006
50,603
17,088
67,691
10.923
68‐4209‐14‐106
45,915
45,915
Expenditures
$ 1,079,688
‐ 50 ‐ Page 3 of 4 Calhoun County, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014
State Agency
Pass‐Through Entity
State Financial Assistance Projects
Florida Department of Transportation
Transportation Systems Operations
County Incentive Grant Program (CIGP)‐ CR69
Small County Outreach Program (SCOP) ‐ CR392
Small County Road Assistance Program (SCRAP) ‐ Silas Green
Total Transportation Systems Operations
Aviation Development Grants
Total Aviation Development Grants
Total Florida Department of Transportation
Florida Housing Finance Corporation
State Housing Initiatives Partnership Program
State Housing Initiatives Partnership Program State Housing Initiatives Partnership Program State Housing Initiatives Partnership Program Total Florida Housing Finance Corporation
Florida Department of Economic Opportunity
Rural Infrastructure Fund Agreement
Total Florida Department of Economic Opportunity
Florida Executive Office of the Govenor
Emergency Management Programs
Emergency Management Assistance Emergency Management Assistance Total Emergency Management Assistance
Hurricance Shelter Retrofit Project
Residential Construction Mitigation Program
Disaster #4177
Total Florida Office of the Govenor
Florida Department of State
Division of Library and Information Services:
Library Resources
Total Florida Department of State
Florida Department of Environmental Protection
Small County Grants
Florida Recreation Development Assistance Program
Total Florida Deparment of Environmental Protection
‐ 51 ‐ State
CSFA
Number
Grant/
Contract
Number
55.008
55.009
55.016
407222‐2‐58‐01
431279‐1‐58‐01
435196‐1‐58‐01
$ 521,542
102,416
6,051
630,009
55.004
55.004
55.004
55.004
55.004
AQS90
AQS91
AQS92
AQT12
A0780
310,627
203,493
25,100
5,581
3,484
548,285
1,178,294
52.901
52.901
52.901
13/14
14/15
12/13
322,733
17,985
14,374
355,092
40.013
RIF12‐001
161,359
161,359
31.063
31.063
14‐BG‐83‐02‐17‐01‐007
15‐BG‐83‐02‐17‐01‐007
31.068
31.006
31.xxx
15‐SR‐94‐02‐17‐01‐142
14‐RC‐6V‐02‐17‐01‐206
n/a
80,325
37,785
118,110
337
45,897
18,973
183,317
45.030
14‐ST‐66
171,246
171,246
37.012
37.017
403SC
A4247
73,807
17,246
91,053
Expenditures
Page 4 of 4 Calhoun County, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2014
State Agency
Pass‐Through Entity
State Financial Assistance Projects
Florida Department of Management Services
E911 State Grant Program
2013/14 Rural County Grant Spring Program
Total E911 State Grant Program
Total Florida Department of Mangement Services
Florida State Court System
County Article V Trust Fund
Small County Courthouse Facilities
Total Florida State Court System
State
CSFA
Number
Grant/
Contract
Number
72.002
72.002
72.002
14‐4‐4
13‐10‐29
13‐10‐3
13,699
9,817
6,799
30,315
30,315
22.004
n/a
17,534
17,534
Expenditures
Total State Financial Assistance 2,188,210
Total Federal Awards and State Financial Assistance
$ 3,267,898
‐ 52 ‐ Calhoun County, Florida 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 Calhoun County, Florida (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 ‐ Calhoun County, Florida 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 Calhoun County, Florida. 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 Calhoun County, Florida 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 Calhoun County, Florida expresses an unmodified opinion. 6. No audit findings relative to the major federal award programs and state financial assistance projects for Calhoun County, Florida 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, 97.039 Hazard Mitigation Grant Programs
Federal Aviation Administration, Airport Improvement Program
20.106 State Projects CSFA No. Florida Department of Transportation, 55.004 Aviation Development Grants Florida Department of Transportation County Incentive Grant Program 55.008 Florida Housing Finance Corporation State Housing Initiatives Partnership Program 52.901 ‐ 54 ‐ Calhoun County, Florida Schedule of Findings and Questioned Costs For the year ended September 30, 2014 A. SUMMARY OF AUDIT RESULTS (CONTINUED) 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. Calhoun County, Florida 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 ‐ Calhoun County, Florida Summary Schedule of Prior Audit Findings For the year ended September 30, 2014 PRIOR‐YEAR AUDIT FINDINGS AND QUESTIONED COSTS SUPERVISOR OF ELECTIONS AND PROPERTY APPRAISER NEED FOR SEGREGATION OF DUTIES, FINDING 04‐01, NOT RESOLVED 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 ‐ INDEPENDENT AUDITORS’ MANAGEMENT LETTER To the Honorable Board of County Commissioners of Calhoun County, Florida Blountstown, Florida We have audited the financial statements of Calhoun County, Florida (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 Calhoun County, Florida 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 Calhoun County, Florida 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 Calhoun County, Florida 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 Calhoun County, Florida Blountstown, Florida We have examined Calhoun County, Florida’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 Calhoun County, Florida’s compliance with those requirements. Our responsibility is to express an opinion on the Calhoun County, Florida’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 Calhoun County, Florida’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 Calhoun County, Florida’s compliance with specified requirements. In our opinion, the Calhoun County, Florida 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 -
Calhoun County, Florida Management’s Response - 61 -
SPECIAL-PURPOSE
FINANCIAL
STATEMENTS
Calhoun County, Florida
Special-Purpose Financial Statements
September 30, 2014
Table of Contents
September 30, 2014
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
Balance - Budget and Actual - General Fund
5
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,
21
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 Calhoun County, Florida
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.
Clerk of the Circuit Court of Calhoun County, 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 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 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
Special-Purpose Balance Sheet
Governmental Funds
September 30, 2014
General
Fund
Assets
Total assets
Liabilities
Due to other funds
Deferred revenue
$
95,315
2,621
19,035
267
$
77,130
12,414
-
$
24,185
1,890
-
$
196,630
16,925
19,035
267
$
117,238
$
89,544
$
26,075
$
232,857
$
12,743
44,497
750
$
10,212
53
59,606
19,673
$
-
$
22,955
53
44,497
59,606
20,423
Total liabilities
Fund balances
Restricted
Unassigned
Total fund balances
Total
Modernization Governmental
Trust Fund
Funds
Court
Article V
$
57,990
89,544
-
147,534
59,248
-
26,075
-
26,075
59,248
59,248
-
26,075
85,323
117,238
$
89,544
See accompanying notes to financial statements
-3-
$
26,075
$
232,857
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
Major Funds
General
Fund
Revenues
Grants
Investment earnings
$
Total revenues
Expenditures
Current:
General government:
Personal services
Operating expenses
Court-related:
Personal services
Operating expenses
Capital outlay:
General government
Court-related
Total expenditures
Appropriations from Board of County Commissioners
Reversion to Board of County Commissioners
Transfer from State of Florida
Transfer to State of Florida
Court
Article V
$
$
13,521
16,807
13
-
Total
Governmental
Funds
$
190,586
94,674
100,246
2,713
718
142,484
216,112
30,341
388,937
257,494
55,891
-
30
257,494
55,921
18,836
721
380,493
29,615
21,714
399,329
52,050
36,201
-
8,166
1,400
36,201
9,566
369,143
418,274
23,144
810,561
(226,659)
(202,162)
7,197
(421,624)
271,333
(44,710)
-
232,100
(29,938)
-
271,333
(44,710)
232,100
(29,938)
226,623
202,162
-
428,785
-
7,197
7,161
-
18,878
78,162
59,284
$
Modernization
Trust Fund
138,214
77,867
31
-
(36)
Fund balances - beginning
Fund balances - ending
38,851
100,246
2,669
718
Non-major Fund
59,248
$
-4-
-
$
26,075
$
85,323
Changes in Fund Balance – Budget and Actual
General Fund
Original
Budget
Revenues
Grants
Investment earnings
$
Total revenues
Expenditures
Current:
General government:
Personal services
Operating expenses
Court-related:
Personal services
Operating expenses
Capital outlay
General government
Reserve for Contingency
Total expenditures
Fund balance - beginning
Fund balance - ending
$
Final
Budget
20,000
40,000
2,000
-
$
20,000
95,000
2,000
469
Actual
Amounts
$
38,851
100,246
2,669
718
Variance with
Final Budget
Favorable
(Unfavorable)
$
18,851
5,246
669
249
62,000
117,469
142,484
25,015
265,953
51,300
259,638
63,515
257,494
55,891
2,144
7,624
-
19,100
469
18,836
721
28,000
8,080
58,000
8,080
36,201
-
21,799
8,080
353,333
408,802
369,143
39,659
(291,333)
(291,333)
(226,659)
64,674
271,333
-
271,333
-
271,333
(44,710)
(44,710)
271,333
271,333
226,623
(44,710)
(20,000)
(20,000)
59,170
59,170
39,170
$
39,170
-5-
264
(252)
(36)
19,964
59,284
$
59,248
114
$
20,078
Court Article V Fund
Original
Budget
Revenues
Grants
Investment earnings
$
Total revenues
Final
Budget
137,250
67,900
43,000
30
$
Variance with
Final Budget
Favorable
(Unfavorable)
Actual
Amounts
137,250
67,900
30
$
138,214
77,867
31
$
964
9,967
1
248,180
205,180
216,112
10,932
382,919
51,048
383,373
45,707
380,493
29,615
2,880
16,092
46,235
8,200
-
8,166
-
34
-
480,202
437,280
418,274
19,006
(232,022)
(232,100)
(202,162)
29,938
232,022
-
232,100
-
232,100
(29,938)
(29,938)
232,022
232,100
202,162
(29,938)
-
-
-
-
-
-
-
-
Expenditures
Current:
Court-related:
Personal services
Operating expenses
Capital outlay
Court-related
Total expenditures
$
-
$
-6-
-
$
-
$
-
Special-Purpose Statement of Fiduciary Net Position
Agency Funds
September 30, 2014
Agency
Funds
Assets
Cash and investments
Total assets
Liabilities
Due to other funds
Due to individuals
Total liabilities
-7-
$
86,803
1,653
198
237
$
88,891
$
18,525
14,774
22,269
33,323
$
88,891
NOTE 1 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Calhoun County, Florida, 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 Calhoun County, Florida and
is an elected Constitutional Officer who is governed by state statutes and regulations. The financial
statements of the Clerk are included in Calhoun County, Florida’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 Calhoun County, Florida 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 Calhoun County, Florida.
financial position and results of operations of Calhoun County, Florida 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-
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-
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-
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-
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)
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
Interfund receivables and payables at September 30, 2014, are as follows:
Due to/from Other Funds:
Receivable Fund
General fund
Modernization Trust Fund
Agency Fund
Jury and Witness - Agency
Payable Fund
Agency fund
Agency fund
Agency fund
Child Support - Agency
$
2,621
12,414
1,890
53
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:
Governmental
activities:
Compensated
absences
BEGINNING
BALANCE
ADDITIONS
REDUCTIONS
$
$
$
18,330
3,726
-
ENDING
BALANCE
$ 22,056
DUE
WITHIN
ONE YEAR
$
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-
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
Through
06/30/14
6.95%
18.31%
33.03%
Regular employees
Senior management
Elected county officials’ class
07/01/14
Through
09/30/14
7.37%
21.14%
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-
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
Funding for:
Modernization of Public Records
Court-related technology
Court-related operational needs and program enhancements
Total restricted fund balance
-16-
$
13,348
10,942
1,785
$
26,075
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-
Combining Special-Purpose Statement of Fiduciary Net Position
Agency Funds
September 30, 2014
Assets
Cash
Total assets
Liabilities
Due to other funds
Due to individuals
Total liabilities
General
Trust
$
82,923
-
Child
Support
$
237
$
83,160
$
16,925
12,682
20,279
33,274
$
83,160
$
$
-18-
Jury and
Witness
2,440
53
198
-
$
2,691
$
1,600
1,042
49
2,691
Total
1,440
1,600
$
86,803
1,653
198
237
3,040
$
88,891
$
1,050
1,990
-
$
18,525
14,774
22,269
33,323
$
3,040
$
88,891
-
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
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 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 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 Calhoun County, 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
We have examined Calhoun County, Florida, 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-
28.35, FLORIDA STATUTES, FLORIDA CLERKS OF COURT OPERATIONS
CORPORATION, AND SECTION 28.36, FLORIDA STATUTES, BUDGET PROCEDURE
We have examined the office of the Calhoun County, Florida, 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.
basis, evidence about the Clerk’s compliance with those requirements and performing such other
determination on the Clerk’s compliance with specified requirements.
In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements
specified parties.
June 1, 2015
-22-
INDEPENDENT AUDITORS’ MANAGEMENT LETTER
We have audited the accompanying 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 have issued
our report thereon dated June 1, 2015.
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-
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 Calhoun County, Florida, 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-
Calhoun County, Florida Property Appraiser Special‐Purpose Financial Statements September 30, 2014
Property Appraiser
Table of Contents
September 30, 2014
REPORT
1
3
Balance - Governmental Funds
4
Balance – Budget and Actual – General Fund
5
6
Compliance and Other Matters Based on an Audit of Financial Statements
13
15
16
18
REPORT
To the Honorable Terrell Stone
Property Appraiser of Calhoun County, Florida
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.
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.
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 Calhoun County, Florida, 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
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.
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
Property Appraiser
Governmental Funds
September 30, 2014
General
Fund
Assets
$
36,023
Total assets
$
36,023
$
6,955
29,068
Liabilities
Total liabilities
36,023
Fund balance
-
Total liabilities and fund balance
-3-
$
36,023
Property Appraiser
Changes in Fund Balance
Governmental Funds
General
Fund
Revenues
Charge for services
Miscellaneous revenue
$
Total revenues
2,100
7
2,107
Expenditures
Current:
General government:
Personal services
Operating expenses
Capital outlay
334,737
74,278
2,246
Total expenditures
411,261
Excess (deficiency) of revenues over (under) expenditures
(409,154)
438,222
(29,068)
409,154
-
Fund balance, beginning
-
Fund balance, ending
$
-4-
-
Property Appraiser
General Fund
Original
Budget
Revenues
Charge for services
Miscellaneous revenue
$
Total revenues
Final
Budget
-
$
Variance with
Final Budget Favorable
(Unfavorable)
Actual
Amounts
-
$
2,100
7
$
2,100
7
-
-
2,107
Expenditures
Current:
General government:
Personal services
Operating expenses
Capital outlay
350,834
84,092
3,296
350,834
84,092
3,296
334,737
74,278
2,246
-
16,097
9,814
(2,246)
3,296
Total expenditures
438,222
438,222
411,261
26,961
(438,222)
(438,222)
(409,154)
29,068
438,222
-
438,222
-
438,222
(29,068)
(29,068)
438,222
438,222
409,154
(29,068)
-
-
-
-
Fund balance, beginning
-
-
-
-
Fund balance, ending
$
-
$
-
-5-
$
-
2,107
$
-
Property Appraiser
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Calhoun County, Florida, 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 Calhoun County, Florida, 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 Calhoun County, Florida 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 Calhoun County, Florida.
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.
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
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
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
(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.
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.
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
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.
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.
-8-
Property Appraiser
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
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-
Property Appraiser
At September 30, 2014, the Property Appraiser did not hold any deposits or investments that
were considered to have custodial 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:
Governmental
activities:
Compensated
absences
BEGINNING
BALANCE
ADDITIONS
REDUCTIONS
$
$
$
14,497
811
-
ENDING
BALANCE
$ 15,308
DUE
WITHIN
ONE YEAR
$
-
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
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.
The funding methods and the determination of benefits payable are provided in various acts of the
determined each year by the legislature. The employer rates, as a percentage of gross earnings, are
as follows:
Regular class
DROP
Elected county
officials’ class
10/01/13
Through
6/30/14
6.95%
12.84%
33.03%
07/01/14
Through
09/30/14
7.37%
12.28%
43.24%
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
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-
BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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 and have issued our report
thereon dated June 4, 2015.
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.
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.
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-
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.
As part of obtaining reasonable assurance about whether the Calhoun County, Florida, 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
Calhoun County, Florida, Property Appraiser’s response to the findings identified in our audit is
described in the accompanying letter. We did not audit Calhoun County, Florida, Property
Appraiser’s response and, accordingly, we express no opinion on it.
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-
We have examined Calhoun County, Florida 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.
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.
specified parties.
June 4, 2015
-15-
We have audited the accompanying financial statements of the Calhoun County, Florida, 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 General.
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.
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.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
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-
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
Auditor General, Federal and other granting agencies, and the Calhoun County, Florida 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-
Property Appraiser
-18-
Sheriff
September 30, 2014
Sheriff
Table of Contents
September 30, 2014
REPORT
1
3
Balances - Governmental Funds
4
Balance – Budget to Actual – General Fund
5
6
7
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
18
20
21
23
REPORT
To the Honorable Glenn H. Kimbrel
Sheriff of Calhoun County, Florida
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.
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
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 Calhoun County, Florida, taken as a whole. As
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
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.
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
Sheriff
Governmental Funds
September 30, 2014
Assets
Accounts receivable
Due from Board of County Commissioners
Total assets
Liabilities
Due to other funds
General
Fund
Total
Governmental
Funds
$
21,150
80
7,168
11,759
$
118,102
2,334
6,005
3,125
32,984
$
139,252
2,414
13,173
3,125
44,743
$
40,157
$
162,550
$
202,707
$
29,907
10,250
$
2,704
12,530
-
$
32,611
12,530
10,250
Total liabilities
Fund balances
Restricted
Total fund balances
Other
Governmental
Funds
$
40,157
15,234
55,391
-
147,316
147,316
-
147,316
147,316
40,157
-3-
$
162,550
$
202,707
Sheriff
Governmental Funds
General
Fund
Revenues
Intergovernmental
Grants
Investment earnings
Contributions and donations
$
Total revenues
85,069
19,033
48,451
2,000
Other
Governmental
Funds
Total
Governmental
Funds
$
$
84,000
39,952
76,223
20
2,811
-
169,069
58,985
124,674
20
2,811
2,000
154,553
203,006
357,559
1,018,058
315,056
37,400
11,946
1,055,458
327,002
325,286
105,776
4,580
7,170
329,866
112,946
-
194,575
71,959
194,575
71,959
30,169
-
1,000
9,817
31,169
9,817
1,794,345
338,447
2,132,792
(1,639,792)
(135,441)
(1,775,233)
1,639,792
155,941
1,795,733
1,639,792
155,941
1,795,733
-
20,500
20,500
-
126,816
126,816
Expenditures
Current:
Public health and safety:
Law enforcement
Personal services
Operating expenses
Corrections and detention
Personal services
Operating expenses
Other public health and safety
Personal services
Operating expenses
Capital Outlay
Law enforcement
Total expenditures
$
-4-
-
$
147,316
$
147,316
Sheriff
General Fund
Original
Budget
Revenues
Intergovernmental
Grant revenue
$
Total revenues
Final
Budget
78,080
10,600
-
$
Variance with
Final Budget
Favorable
(Unfavorable)
Actual
Amounts
85,069
19,033
2,000
48,451
$
85,069
19,033
2,000
48,451
$
-
88,680
154,553
154,553
-
980,754
268,036
1,018,550
318,566
1,018,058
315,056
492
3,510
363,796
94,136
325,899
106,980
325,286
105,776
613
1,204
25,000
27,600
30,169
(2,569)
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
Appropriations from Board of
County Commissioners
1,643,042
1,643,042
1,639,792
(3,250)
1,643,042
1,643,042
1,639,792
(3,250)
Expenditures
Current:
Law enforcement
Personal services
Operating expenses
Corrections and detention
Personal services
Operating expenses
Capital Outlay
Law enforcement
Total expenditures
Total other financing sources (uses)
$
-
$
-5-
-
$
-
$
-
Sheriff
Special-Purpose Statement Fiduciary Net Position
Agency Fund
September 30, 2014
Inmate Trust
Assets
Total assets
Liabilities
Due to other funds
Due to individuals
Total liabilities
-6-
$
4,197
$
4,197
$
644
3,553
$
4,197
Sheriff
The accounting policies of the Calhoun County, Florida, 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 Calhoun County, Florida, 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 Calhoun County, Florida.
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.
reporting guidelines established by the Governmental Accounting Standards Board (GASB) and
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
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
(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
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.
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.
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 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
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.
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.
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
Subsequent Events
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.
At September 30, 2014, the Sheriff did not hold any deposits or investments that were
considered to have custodial credit risk.
At September 30, 2014, the Sheriff did not hold any investments that were considered to have
concentration of credit risk.
-11-
Sheriff
NOTE 3 - DUE FROM OTHER GOVERNMENTS
Due from other governments at September 30, 2014 consisted of the following:
Wireless Emergency Telephone System Trust Fund
Florida Department of Law Enforcement
Drug Enforcement Agency
Northwest Florida Water Management District
State of Florida Office of the Attorney General
VOCA
Department of Agriculture
$ 28,000
3,274
4,166
1,117
5,154
2,750
282
Total
$ 44,743
The following is a summary of the changes in long-term obligations of the Sheriff for the year ended
September 30, 2014:
Governmental
activities:
Compensated
absences
Total
REDUCTIONS
ENDING
BALANCE
DUE
WITHIN
ONE
YEAR
23,132
$
-
$ 62,579
$
-
23,132
$
-
$ 62,579
$
-
BEGINNING
BALANCE
ADDITIONS
$ 39,447
$
$ 39,447
$
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
-12-
Sheriff
NOTE 5 - EMPLOYEE PENSION PLAN (CONTINUED)
Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate
vesting of their contributions.
determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as
follows:
10/01/13
Through
06/30/14
6.95%
18.31%
33.03%
19.06%
12.84%
Regular employees
Senior management
Elected county officials
Special risk employees
DROP participants
07/01/14
Through
9/30/14
7.37%
21.14%
43.24%
19.82%
12.28%
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.
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
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.
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-
Sheriff
Combining Special-Purpose Balance Sheet
Non-major Governmental Funds
All Special Revenue Funds
September 30, 2014
Assets
Accounts receivable
Due from Board of County Commissioners
Total assets
Liabilities
Due to other funds
Drug
Enforcement
Fund
Investigative
Resource
Contribution
Fund
Total
Nonmajor
Governmental
Funds
$
189
3,125
2,047
$
1,157
28,010
$
76,721
5,361
2,927
$
-
$
40,035
2,334
644
-
$
118,102
2,334
6,005
3,125
32,984
$
5,361
$
29,167
$
85,009
$
-
$
43,013
$
162,550
$
5,361
$
2,571
1,252
$
-
$
-
$
133
5,917
$
2,704
12,530
Total liabilities
Fund balances - restricted
Emergency
911
Inmate
Welfare
Fund
$
5,361
3,823
-
-
6,050
15,234
-
25,344
85,009
-
36,963
147,316
5,361
$
-15-
29,167
$
85,009
$
-
$
43,013
$
162,550
Sheriff
Combining Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balances - Non-major Governmental Funds
All Special Revenue Funds
Revenues
Intergovernmental
Grants
Investment earnings
Contributions and donations
Drug
Enforcement
Fund
$
Total revenues
Expenditures
Current:
Law enforcement
Personal services
Operating expenses
Correction and detention
Personal services
Operating expenses
Other public heath and safety
Personal services
Operating expenses
Capital Outlay
Law enforcement
Total expenditures
45,909
-
Emergency
911
$
84,000
30,314
20
-
Contribution
Fund
$
$
11,530
-
2,811
$
28,422
-
$
84,000
39,952
76,223
20
2,811
45,909
114,334
11,530
2,811
28,422
203,006
37,400
7,509
-
4,437
-
-
37,400
11,946
-
-
-
-
4,580
7,170
4,580
7,170
-
194,575
68,962
-
2,997
-
194,575
71,959
1,000
-
9,817
-
-
-
1,000
9,817
45,909
273,354
4,437
2,997
11,750
338,447
7,093
(186)
16,672
(135,441)
-
-
-
155,941
Excess of revenues (under) expenditures
-
(159,020)
Other financing sources
-
155,941
-
155,941
Net other financing sources
Investigative
Resource
Total
Nonmajor
Governmental
Funds
Inmate
Welfare
Fund
-
-
-
155,941
-
(3,079)
7,093
(186)
16,672
20,500
-
28,423
77,916
186
20,291
126,816
$
-
$
-16-
25,344
$
85,009
$
-
$
36,963
$
147,316
Sheriff
Agency Funds
September 30, 2014
Inmate Trust
Assets
Total assets
Liabilities
Due to other funds
Due to individuals
Total liabilities
$
4,197 $
4,197
$
4,197 $
4,197
$
644 $
3,553
4,197 $
644
3,553
4,197
$
-17-
Total
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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 and have issued our report thereon dated June 8, 2015.
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
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.
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-
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.
As part of obtaining reasonable assurance about whether the Calhoun County, Florida, 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.
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-
We have examined Calhoun County, Florida 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.
basis, evidence about the Sheriff’s compliance with those requirements and performing such other
determination on the Sheriff’s compliance with specified requirements.
In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements
specified parties.
June 8, 2015
-20-
We have audited the accompanying financial statements of the Calhoun County, Florida, Sheriff
(the “Sheriff”), as of and for the year ended September 30, 2014, and have issued our report
thereon dated June 8, 2015.
Auditor General.
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.
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 Calhoun County, Florida Sheriff.
-21-
Other Matters
letter any recommendations to improve financial management. In connection with our audit, we
did not have any such recommendations.
Auditor General, Federal and other granting agencies, and the Calhoun County, Florida 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-
Sheriff
-23-
September 30, 2014
Table of Contents
September 30, 2014
REPORT
1
3
4
Balance – Budget and Actual – General Fund
5
6
13
15
16
18
REPORT
INDEPENDENT AUDITORS' REPORT To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida 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 special‐
purpose 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 Calhoun County, 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
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.
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
Governmental Funds
September 30, 2014
Grant
Fund
General
Assets
Total assets
Liabilities
Deferred revenue
$
468
$
7,401
$
7,869
$
468
$
7,401
$
7,869
$
258
210
-
$
4,892
$
258
210
4,892
Total liabilities
468
4,892
5,360
-
2,509
2,509
Fund balance - restricted
Total
Governmental
Funds
$
468
-3-
$
7,401
$
7,869
Governmental Funds
General
Fund
Revenues
Investment earnings
$
-
Total revenues
Expenditures
Current:
General government:
Personal services
Operating expenses
Capital outlay
Total expenditures
Total
Governmental
Funds
Grant
Fund
$
3
208
$
3
208
-
211
211
198,559
66,438
8,002
-
198,559
66,438
8,002
272,999
-
272,999
(272,999)
211
(272,788)
271,185
(186)
-
271,185
(186)
270,999
-
270,999
(2,000)
Fund balances, beginning
Fund balances, ending
211
2,000
$
-4-
-
(1,789)
2,298
$
2,509
4,298
$
2,509
General Fund
Original
Budget
Revenues
Investment earnings
$
Total revenues
Final
Budget
-
$
Variance with
Fund Budget
Favorable
(Unfavorable)
Actual
Amounts
-
$
-
$
-
-
-
-
Expenditures
Current:
General government:
Personal services
Operating expenses
Capital outlay
196,900
52,685
15,600
196,900
58,685
15,600
198,559
66,438
8,002
(1,659)
(7,753)
7,598
Total expenditures
265,185
271,185
272,999
(1,814)
(265,185)
(271,185)
(272,999)
(1,814)
265,185
-
271,185
-
271,185
(186)
(186)
265,185
271,185
270,999
(186)
-
-
(2,000)
(2,000)
-
-
2,000
2,000
$
-
$
-5-
-
$
-
-
$
-
The accounting policies of the Calhoun County, Florida, 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 Calhoun County, Florida, 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 Calhoun County, Florida taken as a whole.
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
reporting purposes. Therefore, the Supervisor of Elections is reported as part of the primary
government of Calhoun County, Florida.
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.
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-
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
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
(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
reported in the general fund financial statements and refers to the timing of the measurement
made, regardless of the measurement focus applied.
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-
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.
date within three months of the date acquired by the government.
Capital Assets
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.
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-
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.
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
-9-
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.
At September 30, 2014, the Supervisor of Elections did not hold any deposits or investments
that were considered to have custodial risk.
At September 30, 2014, the Supervisor of Elections did not hold any investments.
-10-
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:
DUE
WITHIN
BEGINNING
ENDING
ONE
BALANCE
ADDITIONS
REDUCTIONS
BALANCE
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
-11-
NOTE 4 - EMPLOYEE BENEFITS - CONTINUED
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
Through
06/30/14
6.95%
18.31%
33.03%
Regular employees
Senior management
Elected county officials
07/01/14
Through
09/30/14
7.37%
21.14%
43.24%
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.
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.
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-
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
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 and have issued
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.
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.
internal control described below that we consider to be significant deficiency.
-13-
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.
As part of obtaining reasonable assurance about whether the Calhoun County, Florida, Supervisor of
Elections’ financial statements are free of material misstatement, we performed tests of its
Supervisor of Elections’ Response to Findings
Calhoun County, Florida, Supervisor of Elections’ response to the findings identified in our audit is
described in the accompanying letter. We did not audit Calhoun County, Florida, Supervisor of
Elections’ response and, accordingly, we express no opinion on it.
Supervisor of Elections’ internal control or on compliance. This report is an integral part of an audit
June 4, 2015
-14-
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION
We have examined Calhoun County, Florida, 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.
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.
specified parties.
June 4, 2015
-15-
We have audited the special-purpose financial statements of the Calhoun County, Florida, 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 General.
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.
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.
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-
Other Matters
Auditor General, Federal and other granting agencies, and the Calhoun County, Florida 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-
Tax Collector
September 30, 2014
Tax Collector
Table of Contents
September 30, 2014
REPORT
1
3
4
Balance - Budget and Actual - General Fund
5
Special-Purpose Statement of Fiduciary Net Position - Agency Funds
6
7
Combining Special-Purpose Statement of Fiduciary Net Position - Agency Funds
14
15
17
18
20
REPORT
INDEPENDENT AUDITORS’ REPORT
To the Honorable Becky Trickey-Smith
Tax Collector of Calhoun County, Florida
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.
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
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 Calhoun County, Florida, 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
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.
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
Tax Collector
Governmental Funds
September 30, 2014
General
Fund
Assets
$
18,796
Total assets
$
18,796
$
232
36
18,528
Liabilities
Accounts payable
Due to other funds
Total liabilities
18,796
Fund balance
-
-3-
$
18,796
Tax Collector
Special-Purpose Statement of Revenues, Expenditures and
Changes in Fund Balance
Governmental Funds
General
Fund
Revenues
Investment earnings
$
Total revenues
66
66
Expenditures
Current:
General government:
Personal services
Operating expenses
Capital outlay
320,902
76,566
8,070
Total expenditures
405,538
(405,472)
424,000
(18,528)
405,472
-
-
$
-4-
-
Tax Collector
Special-Purpose Statement of Revenues, Expenditures and
General Fund
Original
Budget
Revenues
Investment earnings
$
Final
Budget
Variance with
Final Budget
Favorable
(Unfavorable)
Actual
Amounts
- $
-
-
-
66
341,500
82,500
-
341,500
82,500
-
320,902
76,566
8,070
20,598
5,934
(8,070)
424,000
424,000
405,538
18,462
(424,000)
(424,000)
(405,472)
18,528
424,000
-
424,000
-
424,000
(18,528)
(18,528)
424,000
424,000
405,472
(18,528)
-
-
-
-
-
-
-
-
- $
- $
- $
-
Total revenues
Expenditures
Current:
General government:
Personal services
Operating expenses
Capital outlay
Total expenditures
$
-5-
$
66
$
66
66
Tax Collector
Agency Funds
September 30, 2014
Agency
Funds
Assets
Accounts receivable
Total assets
Liabilities
Total liabilities
-6-
$
245,553
36
12,370
$
257,959
$
8,447
249,512
$
257,959
Tax Collector
The accounting policies of the Calhoun County, Florida, 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 Calhoun County, Florida 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 Calhoun County, Florida taken as a whole.
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
reporting purposes. Therefore, the Tax Collector is reported as part of the primary government of
Calhoun County, Florida.
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.
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
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
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
reported in the financial statements. Basis of accounting refers to the timing of the
measurements made, regardless of the measurement focus applied.
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.
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
date within three months of the date acquired by the government.
Capital Assets
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.
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.
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
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
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.
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-
Tax Collector
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.
At September 30, 2014, the Tax Collector did not hold any deposits or investments that were
considered to have custodial risk.
At September 30, 2014, the Tax Collector did not hold any investments.
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
Governmental
activities:
Compensated
absences
Total
ADDITIONS
REDUCTIONS
ENDING
BALANCE
DUE
WITHIN
ONE YEAR
$
13,092
$
150
$
-
$
13,242 $
-
$
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
NOTE 4 - EMPLOYEES PENSION PLAN
The Tax Collector participates in the Florida Retirement System (FRS), a cost-sharing, multiple
determined each year by the legislature. The employer rates, as a percentage of gross earnings, are
as follows:
10/01/13
Through
06/30/14
6.95%
18.31%
33.03%
Regular employees
Senior management
Elected county officials’ class
07/01/14
Through
09/30/14
7.37%
21.14%
43.24%
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
-12-
Tax Collector
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-
Tax Collector
Agency Funds
September 30, 2014
Tag
Assets
Accounts receivable
Total assets
Liabilities
Total liabilities
-14-
Tax
Total
$
41,781 $
12,370
203,772
36
-
$
245,553
36
12,370
$
54,151 $
203,808
$
257,959
$
8,322 $
45,829
125
203,683
$
8,447
249,512
$
54,151 $
203,808
$
257,959
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
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 and have issued our report thereon dated
June 11, 2015.
In planning and performing our audit of the financial statements, we considered the Tax Collector’s
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax
Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the
Tax Collector’s internal control.
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.
internal control described below that we consider to be a significant deficiency.
-15-
COMMENT TC06-01: There is a lack of segregation of duties between employees who have
recordkeeping responsibility and employees in custody of Tax Collector’s assets.
RECOMMENDATION: We realize that due to the size of the Tax Collector’s staff, it is difficult to
achieve ideal separation of duties. However, the Tax Collector 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.
As part of obtaining reasonable assurance about whether the Calhoun County, Florida, Tax
Collector’s financial statements are free of material misstatement, we performed tests of its
Tax Collector’s Response to Findings
Calhoun County, Florida, Tax Collector’s response to the findings identified in our audit is described
in the accompanying letter. We did not audit Calhoun County, Florida, Tax Collector’s response
and, accordingly we express no opinion on it.
Tax Collector’s internal control or on compliance. This report is an integral part of an audit
June 11, 2015
-16-
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION
The Honorable Becky Trickey-Smith
We have examined Calhoun County, Florida, Tax Collector’s (the “Tax Collector”) 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 Tax Collector’s compliance
with those requirements. Our responsibility is to express an opinion on the Tax Collector’s
compliance based on our examination.
basis, evidence about the Tax Collector’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our
examination provides a reasonable basis for our opinion. Our examination does not provide a legal
determination on the Tax Collector’s compliance with specified requirements.
In our opinion, the Tax Collector complied, in all material respects, with the aforementioned
requirements for the year ended September 30, 2014.
specified parties.
June 11, 2015
-17-
We have audited the accompanying financial statements of the Calhoun County, Florida, Tax
Collector (the “Tax Collector”), as of and for the year ended September 30, 2014, and have issued
Auditor General.
the preceding annual financial audit report. Finding TC06-01 found in the Independent Auditor’s
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
has not been corrected.
-18-
Section 10.554(1)(i)4, Rules of the Auditor General, requires that the name or official title and legal
County, Florida, Tax Collector 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, Tax Collector.
Other Matters
Section 10.554(1)(i)2, Rules of the Auditor General, requires that we address in the management
Auditor General, Federal and other granting agencies, and the Calhoun County Tax Collector and
applicable management, and is not intended to be and should not be used by anyone other than
these specified parties.
June 11, 2015
-19-
Tax Collector
-20-

Year Ending September 30, 2014 - Calhoun County Clerk of Court

Transcription

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