immokalee water & sewer district...immokalee water & sewer district 1020 sanitation road...
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IMMOKALEE WATER & SEWER DISTRICT
1020 SANITATION ROAD IMMOKALEE, FL 34142 TELEPHONE (239) 658-3630
February 02, 2017
NOTICE OF MEETING
There will be a Regular Meeting of the Board of Commissioners for the Immokalee Water & Sewer District, on Wednesday,
February 15, 2017 at 4:30 P.M. at the office of the Immokalee Water & Sewer District, located at 1020 Sanitation Rd,
Immokalee, FL 34142.
REGULAR MEETING AGENDA
1. Call to Order
2. Preliminaries
A. Pledge of Allegiance
B. Roll Call
C. Adoption of Agenda
D. Employee Recognition
1. November 2016- Norma Garcia
2. December 2016- Andrea Sanchez
E. Public Concerns
F. Staff Good Cause Items
G. Board Concerns
H. Old Business
1. USDA Documents
I. New Business
3. Consent Agenda
A. Adoption of Minutes
1. January 18, 2017 Board Meeting
B. Civil Rights Compliance Report
C. January Budget Review
D. Fixed Assets Acquisitions-Disposals
E. Various Reports
F. Project Change Orders
G. Engineer’s Report – Greeley and Hansen
H. Director’s Report
4. Action Agenda
A. 2015-2016 Audit Review and Approval
5. Discussion Agenda
A. Attorney's Report
6. Other Public Interests
7. Adjournment
“Public discussion will be limited to three (3) minutes per speaker, unless additional information is requested, and additional time is granted by the Board
Members.”
SPECIAL REQUIREMENTS: If you require special aid or services as addressed in the American Disabilities Act, please contact the District office at
(239) 658-3630, no less than five (5) days prior to the above stated workshop date.
IMMOKALEE
WATER & SEWER
DISTRICT
1020 SANITATION ROAD IMMOKALEE, FL 34142 TELEPHONE (239) 658-3630
M E M O
To: IWSD Board Members
From: Norma Garcia
Date: February 02, 2017
Subject: Special Dates
These employees will have/had the following special dates this month:
February 01, 2017 Veronica Garcia’s Birthday- Clerk/Secretary- Dept. 40
February 02, 2017 Kerbi Alexandre Birthday –“C” Operator-Dept. 10
February 07, 2017 Armando Herrera’s Birthday –WW Service Tech IV – Dept.30
February 07, 2017 Roy Herrera's 3 Month Anniversary-Service Tech I-Dept. 10
February 10, 2017 Jo Ann Ramey’s Birthday- Distribution Coordinator-Dept. 10
February 17, 2017 Oona Reyna’s 22 Year Anniversary-Administration Supervisor- Dept. 40
February 21, 2017 Armando Herrera’s 10 Year Anniversary-WW Service Tech IV - Dept. 30
January 18, 2017
Page 1
IMMOKALEE
WATER & SEWER
DISTRICT 1020 SANITATION ROAD IMMOKALEE, FLORIDA 34142 (239) 658-3630
January 18, 2017
The first item on the agenda was the Call to Order:
Mr. Brister called the meeting to order at 4:30 p.m.
Next was Roll Call:
Mr. Brister asked for a roll call.
Board Members Present:
Mr. Joseph Brister, Mrs. Bonnie Keen, Mr. Fred N. Thomas, Jr., Mr. Jack Johnson,
Mr. Robert Halman, Ms. Magda Ayala and Ms. Anne Goodnight.
Staff Present:
Mr. Kenneth Thompson, Mrs. Eva Deyo, Mrs. Norma Garcia,
Ms. Oona Reyna-Rodriguez and Mr. Gary Ferrante with Greeley and Hansen.
Others Present:
Please see sign in sheet.
Next was Agenda:
Mr. Thomas made a motion to approve the Agenda as it has been submitted.
Ms. Goodnight seconded the motion.
Motion carried unanimously.
Next was Employee of the Month:
Mrs. Deyo asked it to be moved to next month.
(ROLL CALL
OF OFFICERS)
(MOTION TO
APPROVE
AGENDA)
(EMPLOYEE
OF THE
MONTH)
January 18, 2017
Page 2
Public Concerns:
Ms. Clarita Benitez stated that she would be speaking in place of her mother Ms. Maria
Espinosa. Ms. Benitez asked the Board if they could fix her drive way because she felt
that due to the culvert, it has cracked more than it was. She felt that being Immokalee
Water & Sewer District helped pay for her neighbors driveway, they should help her as
well.
The Board discussed the driveway at 1216 N. 18th St in detail.
The Board advised Ms. Benitez that the culvert is maintained by the County and not
Immokalee Water & Sewer District and that she should talk to them.
Mr. Ron Seaman addressed the Board and asked to get the base rates waived for a 4 inch
meter because he was not in business and only had one employee working.
The Board discussed the rates in detail. After much discussion the Board decided not to
waive the fees and suggested different options to Mr. Seaman.
Staff Good Cause Items:
There was none.
Board Concerns:
There was none.
Old Business:
Mrs. Deyo stated that they still don’t have any documents from USDA.
New Business:
There was none.
Consent Agenda:
Mr. Thomas made a motion to approve the Consent Agenda.
Ms. Goodnight seconded the motion.
Motion carried unanimously.
Action Agenda:
There was none.
(MOTION TO
APPROVE
CONSENT
AGENDA)
January 18, 2017
Page 3
NEXT WAS ATTORNEYS REPORT:
Next was Adjournment:
Meeting adjourned at 5:12 p.m.
Reviewed by:
Bonnie Keen - Secretary Date
(MEETING
ADJOURNED)
To Board of Directors
Immokalee Water & Sewer District
From Civil Rights Committee
Immokalee Water & Sewer District
This is to inform you that there was nothing brought before the Civil Rights Committee
in the Month of January 2017.
Norma Garcia
Civil Rights Committee
Budgeted Amount Amount GL# Description Amount: Used: Remaining:
DEPT 10
1350.00 Meter Replacement Program 150,000$ 56,242$ 93,758$ 1430.00 2-F250 4*4 69,932$ 69,932$ (0)$ 1330.00 Hydraulic Dump Trailer 6,100$ 6,101$ (1)$ 1330.00 Walk behind concrete saw 2,123$ 2,123$
-$ 1330.00 -$ 1330.00 -$
Other Capital & Emergency Funds: 69,477$ 5,805$ 63,672$
1330.00 3-tranducer-s9th, carson, airport 5,805$ 1330.001330.001330.00
5,805$
Department Total: 297,632$ 138,080$ 159,552$ DEPT 20
1330.00 Aerobic Digester TSS Meter 7,130 7,1301330.00 John Deere Z920 M with canopy 9,204 9,2041330.00 0
0
Other Capital & Emergency Funds: 59,706$ 20,424$ 39,282$
1330.00 fencing 20,424$ 1330.001330.001325.001658.00
20,424$
Department Total: 76,040$ 20,424$ 55,616$
DEPT 30
1330.00 LIFT STATION REPLACEMENT PARTS 50,000$ -$ 50,000$ 1390.00 Manhole Replacement 50,000$ 10,000$ 40,000$ 1390.00 Lift Station Rehab A2, O2, X7, etc 150,085$ 76,678$ 73,407$ 1330.00 Lift Station SCADA System 6,802$ 6,802$ 1330.00 Cargo Enclosed Trailers 3,695$ 4,009$ (314)$
-$ -$ -$
Other Capital & Emergency Funds: 59,706$ -$ 59,706$
1330.001325.00
-$
Department Total: 320,288$ 90,687$ 229,601$
DEPT 40
1330.00 Folding machine 5,400$ 6,231$ (831)$ 1320.00 Admin Office window/doors 40,000$ 2,033$ 37,967$
-$ -$ -$
Other Capital & Emergency Funds: 30,107$ -$ 30,107$
1330.001325.001330.00
-$
Department Total: 75,507$ 8,264$ 67,243$
DEPT 50
1430.00 F250 4*4 34,966$ 34,966$ -$
Other Capital & Emergency Funds: 5,000$ -$ 5,000$
1330.00
-$
Department Total: 39,966$ 34,966$ 5,000$
All Departments Total: 809,433$ 292,421$ 517,012$
GRANT FUNDS1330.00 -$ 1330.00 -$
Total Other Capital & Emergency Funds: 223,996$ 26,229$ 197,767$
BREAKDOWN OF CAPITAL EXPENDITURES
January-17
10/01/16-01/31/17
Actual Budget
Over/
(Under)
Budget
PY Actual
01/16 Actual Budget
Over/
(Under)
Budget
PY Actual
10/15-01/16Revenue from Operations
4000.00 SALES - WATER 280,505$ 231,591$ 48,914$ 240,340$ 999,268$ 926,364$ 72,904$ 902,584$
4010.00 SALES - SEWER 441,086 398,037 43,049 414,480 1,645,406 1,592,148 53,258 1,557,456
4020.00 METER SERVICE CHARGE 54,316 50,178 4,138 50,350 212,979 200,712 12,267 198,098
4030.00 LATE FEES 6,740 8,818 (2,078) 7,495 30,970 35,272 (4,302) 29,900
4050.00 RECONNECTION & TRANSFER FEES 11,135 4,167 6,968 10,195 33,780 16,668 17,112 29,805
4070.00 INTEREST INCOME 1,161 4,167 (3,006) 3,631 14,862 16,668 (1,806) 17,168
4071.00 ARROWHEAD ASSESSMENT INCOME 0 0 0 0 - - - -
4080.00 CAPITAL CREDITS-ELECT COOP. 0 0 0 0 - - - -
4090.00 ASSESSMENT FORECLOSURE FEES 0 453 (453) 0 - 1,812 (1,812) -
4095.00 HYDRANT FEES 0 0 0 0 - - - -
4100.00 MISCELLANEOUS INCOME 13,783 4,167 9,616 4,387 39,726 16,668 23,058 27,862
4105.00 GAIN/LOSS 0 (2,083) 2,083 0 (11,359) (8,333) (3,026) -
4106.00 CROSS CONNECTION CONTROL FEE 28,971 26,287 2,684 25,632 110,482 105,148 5,334 301,261
4110.00 CELLULAR TOWER LEASE 2,886 3,856 (970) 1,026 11,543 15,424 (3,881) 11,070
4120.00 FORFEITED SECURITY DEPOSITS 0 0 0 0 - - - -
4125.00 INSURANCE REIMBURSEMENT 0 0 0 0 - - - -
4130.00 FORFEITED 401A 0 0 0 0 1,951 - 1,951 -
4131.00 GRANT INCOME/FEDERAL 0 0 0 0 - - - -
4132.00 MASTER PLAN CONTRIBUTION 0 0 0 0 - - - -
4133.00 TRAINING GRANT INCOME 0 0 0 0 - - - -
Total Revenue 840,583$ 729,638$ 110,945$ 757,536$ 3,089,608$ 2,918,550$ 171,058$ 3,075,204$
$2,981,517
OPERATING EXPENSES:
Water Department 10 - Expenses 151,165$ 167,709$ (16,544)$ 145,451$ 646,519$ 670,836$ (24,317)$ 556,304$
Wastewater Department 20 - Expenses 145,838 144,894 944 152,688 649,895 579,576 70,319 604,400
Wastewater Collection - Department 30 Expenses 53,916 69,733 (15,817) 64,494 240,023 278,932 (38,909) 268,050
Administration Department 40 Expenses 99,180 120,907 (21,477) 120,109 415,976 483,628 (67,652) 455,710
Maintenance Department 50 - Expenses 59,007 55,667 3,340 46,383 163,174 222,668 (59,494) 140,656
Miscellaneous Expenses $156,833 $221,188 ($64,355) $151,730 635,103 884,753 (249,649) 615,507
Total Operating Expenses 665,939$ 780,098$ (113,909)$ 680,855$ 2,750,690$ 3,120,393$ (369,702)$ $2,640,626
Accruals for Principle Payments 256,500$ 256,500$ -$ 256,500$ 256,500$ -$
Net Surplus (Deficit) (81,856)$ (306,961)$ 224,854$ 76,681$ 82,418$ (458,342)$ 540,760$ 434,578$
01/01/17-01/31/17
Page 1
10/01/16-01/31/17
Actual Budget
Over/
(Under)
Budget
PY Actual
01/16 Actual Budget
Over/
(Under)
Budget
PY Actual
10/15-01/16
01/01/17-01/31/17
Operating Expenses
Water Department 10 - Expenses
5000.10 SALARIES & WAGES - WTP 47,784$ 58,505$ (10,721)$ 34,860$ 182,844$ 234,020$ (51,176)$ 167,500$
5002.10 OVERTIME WAGES - WTP 2,338 7,175 (4,837) 6,724 10,164 28,700 (18,536) 15,943
5006.10 FICA - WTP 3,834 5,025 (1,191) 3,762 15,689 20,100 (4,411) 15,221
5060.10 UNEMPLOYMENT TAXES 50 87 (37) 563 54 348 (294) 572
5090.10 EMPLOYER PENSION CONT. 2,621 3,510 (889) 2,475 9,036 14,040 (5,004) 10,122
5095.10 HEALTH/LIFE INSURANCE 44,506 20,542 23,964 49,136 89,624 82,168 7,456 93,352
5098.10 WORKERS' COMPENSATION 2,731 3,415 (684) 1,966 17,910 13,660 4,250 12,340
5155.10 TRAVEL & TRAINING 1,419 2,167 (748) 2,207 2,116 8,668 (6,552) 6,751
5180.10 TELEPHONE & FAX 622 702 (80) 744 2,210 2,808 (598) 2,536
5220.10 ELECTRIC 12,716 14,821 (2,105) 13,476 49,075 59,284 (10,209) 49,861
5250.10 GENERAL LIABILITY INSURANCE 0 1,672 (1,672) 0 18,463 6,688 11,775 17,911
5255.10 COMP. AUTO INSURANCE 0 833 (833) 0 9,489 3,332 6,157 8,925
5260.10 OTHER INSURANCE 0 7,621 (7,621) 0 78,291 30,484 47,807 81,656
5282.10 REPAIRS & MAINTENANCE 6,105 12,528 (6,423) 7,209 41,159 50,112 (8,953) 62,294
5287.10 OTHER CONTRACT SERVICES 1,450 2,228 (778) 2,089 9,288 8,912 376 9,238
5300.10 VEHICLE FUEL 0 2,221 (2,221) 1,422 4,472 8,884 (4,412) 5,819
5310.10 VEHICLE MAINTENANCE 338 1,817 (1,479) 3,687 3,754 7,268 (3,514) 4,668
5520.10 LICENSES AND PERMITS 423 357 66 242 1,623 1,428 195 342
5580.10 CHEMICALS 5,799 8,728 (2,929) 8,584 26,160 34,912 (8,752) 30,493
5582.10 OTHER MATERIALS 16,874 10,984 5,890 5,645 67,694 43,936 23,758 (45,467)
5585.10 LABORATORY FEES 1,555 2,340 (785) 60 6,935 9,360 (2,425) 4,825
5600.10 UNIFORMS/CLOTHING ALLOWANCE 0 325 (325) 100 354 1,300 (946) 716
5605.10 MEMBERSHIPS/BOOKS 0 106 (106) 500 115 424 (309) 686
Total Department 10 Expenses 151,165$ 167,709$ (16,544)$ 145,451$ 646,519$ 670,836$ (24,317)$ 556,304$
*Wages expense was reduced to reflect capitalized labor for installation of new meters and replaced meters -$11,354 for YTD
In this department, other materials is used for purchases of meters, meter boxes, lids, and other parts. At the end of the month, the GL asset account -Inventory is
reduced based on work orders, or increased based on purchases. When the meter is installed, it is then moved to Fixed Assets - Meters.
Vehicle maintenance includes expenses for stocking vehicle related inventory at the maintenance department.
Page 2
10/01/16-01/31/17
Actual Budget
Over/
(Under)
Budget
PY Actual
01/16 Actual Budget
Over/
(Under)
Budget
PY Actual
10/15-01/16
01/01/17-01/31/17
Wastewater Department 20 - Expenses
5000.20 SALARIES & WAGES - WWTP 42,849$ 43,839$ (990)$ 40,002$ 181,580$ 175,356$ 6,224$ 177,256$
5002.20 OVERTIME WAGES - WWTP 2,809 2,226 583 1,909 6,170 8,904 (2,734) 6,419
5006.20 FICA - WWTP 3,493 3,524 (31) 3,159 14,361 14,096 265 13,855
5060.20 UNEMPLOYMENT TAXES 46 162 (116) 470 46 648 (602) 546
5090.20 EMPLOYER PENSION CONT. 2,053 2,630 (577) 1,972 6,983 10,520 (3,537) 8,167
5095.20 HEALTH/LIFE INSURANCE 33,954 14,297 19,657 32,939 65,609 57,188 8,421 62,683
5098.20 WORKERS' COMPENSATION 1,920 2,395 (475) 1,307 11,862 9,580 2,282 7,646
5155.20 TRAVEL & TRAINING 264 1,500 (1,236) 0 1,619 6,000 (4,381) 1,421
5180.20 TELEPHONE & FAX 265 309 (44) 139 970 1,236 (266) 655
5220.20 ELECTRIC 19,295 20,034 (739) 20,414 72,184 80,136 (7,952) 78,142
5230.20 SECTION 8 ELECTRIC 538 728 (190) 583 1,791 2,912 (1,121) 1,876
5250.20 GENERAL LIABILITY INSURANCE 0 1,672 (1,672) 0 18,463 6,688 11,775 17,911
5255.20 COMP. AUTO INSURANCE 0 417 (417) 0 4,067 1,668 2,399 4,463
5260.20 OTHER INSURANCE 0 7,193 (7,193) 0 73,686 28,772 44,914 77,069
5281.20 SECTION 8 FIELD MAINTENANCE 0 1,338 (1,338) 0 - 5,352 (5,352) -
5282.20 REPAIRS & MAINTENANCE 9,596 10,497 (901) 8,601 91,256 41,988 49,268 47,793
5283.20 SECTION 8 REPAIRS 0 1,209 (1,209) 7,862 - 4,836 (4,836) 7,862
5287.20 OTHER CONTRACT SERVICES 35 5,914 (5,879) 820 3,627 23,656 (20,029) 3,981
5300.20 VEHICLE FUEL 0 906 (906) 156 1,800 3,624 (1,824) 2,335
5310.20 VEHICLE MAINTENANCE 436 1,220 (784) 197 1,758 4,880 (3,122) 3,550
5520.20 LICENSES AND PERMITS 0 1,018 (1,018) 5,000 - 4,072 (4,072) 5,000
5580.20 CHEMICALS 14,517 6,191 8,326 5,339 40,000 24,764 15,236 17,282
5582.20 OTHER MATERIALS 2,873 4,181 (1,308) 5,540 11,780 16,724 (4,944) 16,086
5585.20 LABORATORY FEES 1,852 3,119 (1,267) 484 10,677 12,476 (1,799) 7,059
5590.20 RESIDUALS MANAGEMENT 8,901 8,122 779 15,695 28,935 32,488 (3,553) 34,940
5600.20 UNIFORMS/CLOTHING ALLOWANCE 142 200 (58) 100 601 800 (199) 275
5605.20 MEMBERSHIPS/BOOKS 0 53 (53) 0 70 212 (142) 128
Total Department 20 Expenses 145,838$ 144,894$ 944$ 152,688$ 649,895$ 579,576$ 70,319 604,400$
Vehicle maintenance also includes expenses for stocking vehicle related inventory at the maintenance department.
Other materials includes expenses for gloves, paper towels, small tools, parts, etc. It will also include a portion of the costs to set up the storage area at
the maintenance department.
Page 3
10/01/16-01/31/17
Actual Budget
Over/
(Under)
Budget
PY Actual
01/16 Actual Budget
Over/
(Under)
Budget
PY Actual
10/15-01/16
01/01/17-01/31/17
Wastewater Collection - Department 30 Expenses
5000.30 SALARIES & WAGES - WWC 21,467$ 27,838$ (6,371)$ 21,718$ 89,938$ 111,352$ (21,414)$ 93,364$
5002.30 OVERTIME WAGES - WWC 1,355 2,898 (1,543) 2,141 5,679 11,592 (5,913) 7,582
5006.30 FICA- WWC 1,745 2,351 (606) 1,812 7,342 9,404 (2,062) 7,674
5060.30 UNEMPLOYMENT TAXES 23 74 (51) 269 27 296 (269) 271
5090.30 EMPLOYER PENSION CONT. 1,121 1,670 (549) 1,240 3,809 6,680 (2,871) 5,059
5095.30 HEALTH/LIFE INSURANCE 18,420 9,936 8,484 22,767 38,843 39,744 (901) 43,092
5098.30 WORKERS COMPENSATION 1,256 1,598 (342) 865 6,446 6,392 54 4,814
5155.30 TRAVEL & TRAINING 0 1,000 (1,000) 0 (1,100) 4,000 (5,100) 1,901
5180.30 TELEPHONE & FAX 103 179 (76) 169 264 716 (452) 556
5220.30 ELECTRIC 2,655 3,385 (730) 3,106 8,733 13,540 (4,807) 10,998
5250.30 GENERAL LIABILITY INSURANCE 0 1,672 (1,672) 0 18,463 6,688 11,775 17,911
5255.30 COMP. AUTO INSURANCE 0 486 (486) 0 5,423 1,944 3,479 5,206
5260.30 OTHER INSURANCE 0 112 (112) 0 1,151 448 703 1,201
5282.30 REPAIRS & MAINTENANCE 3,329 5,871 (2,542) 3,787 28,609 23,484 5,125 45,384
5287.30 OTHER CONTRACT SERVICES 0 554 (554) 95 995 2,216 (1,221) 1,630
5300.30 VEHICLE FUEL 0 1,211 (1,211) 817 2,215 4,844 (2,629) 2,446
5310.30 VEHICLE MAINTENANCE 200 4,069 (3,869) 385 9,268 16,276 (7,008) 4,895
5520.30 LICENSES AND PERMITS 142 776 (634) 0 142 3,104 (2,962) 237
5580.30 CHEMICALS 0 146 (146) 0 - 584 (584) -
5582.30 OTHER MATERIALS 2,000 3,722 (1,722) 5,323 13,603 14,888 (1,285) 13,658
5600.30 UNIFORMS/CLOTHING ALLOWANCE 100 150 (50) 0 148 600 (452) 105
5605.30 MEMBERSHIPS/BOOKS 0 35 (35) 0 25 140 (115) 66
Total Department 30 Expenses 53,916$ 69,733$ (15,817)$ 64,494$ 240,023$ 278,932$ (38,909)$ 268,050$
Vehicle maintenance also includes expenses for stocking vehicle related inventory at the maintenance department.
Other materials includes expenses for gloves, paper towels, small tools, parts, etc. It will also include a portion of the costs to set up the storage area at
the maintenance department.
Page 4
10/01/16-01/31/17
Actual Budget
Over/
(Under)
Budget
PY Actual
01/16 Actual Budget
Over/
(Under)
Budget
PY Actual
10/15-01/16
01/01/17-01/31/17
Administration Department 40 Expenses
5000.40 SALARIES & WAGES - ADMIN. 44,793$ 56,790$ (11,997)$ 41,269$ 184,019$ 227,160$ (43,141)$ 178,906$
5002.40 OVERTIME WAGES - ADMIN. 0 326 (326) 0 323 1,304 (981) 85
5006.40 FICA - ADMIN. 3,427 4,369 (942) 3,086 12,654 17,476 (4,822) 11,820
5060.40 UNEMPLOYMENT TAXES 40 181 (141) 419 46 724 (678) 469
5090.40 EMPLOYER PENSION CONT. 2,498 3,302 (804) 2,350 8,550 13,208 (4,658) 9,597
5095.40 HEALTH/LIFE INSURANCE 34,772 13,258 21,514 34,371 65,954 53,032 12,922 62,175
5098.40 WORKERS' COMPENSATION 146 143 3 124 1,012 572 440 1,379
5100.40 LEGAL SERVICES 3,000 3,583 (583) 3,000 12,000 14,332 (2,332) 12,000
5102.40 LEGAL SERVICES-SEWER ASMNTS 0 0 0 0 - - - -
5110.40 OTHER PROFESSIONAL SERVICES 0 125 (125) 0 - 500 (500) -
5120.40 ACCOUNTING/AUDITING 0 3,667 (3,667) 17,520 1,740 14,668 (12,928) 37,350
5140.40 ENGINEERING SERVICES 0 10,600 (10,600) 7,065 26,577 42,400 (15,823) 28,260
5145.40 ENGINEERING WW SRF 0 0 0 0 - - - -
5155.40 TRAVEL & TRAINING 379 2,833 (2,454) 390 2,448 11,332 (8,884) 9,784
5180.40 TELEPHONE & FAX 314 343 (29) 314 1,314 1,372 (58) 1,081
5200.40 POSTAGE & FREIGHT 2,382 3,851 (1,469) 3,022 13,471 15,404 (1,933) 11,885
5250.40 GENERAL LIABILITY INSURANCE 0 350 (350) 0 3,874 1,400 2,474 3,745
5255.40 COMP. AUTO INSURANCE 0 69 (69) 0 678 276 402 744
5260.40 OTHER INSURANCE 1,100 3,967 (2,867) 0 32,878 15,868 17,010 35,408
5282.40 REPAIRS & MAINTENANCE 0 2,693 (2,693) 300 11 10,772 (10,761) 300
5287.40 OTHER CONTRACT SERVICES 2,172 3,021 (849) 1,775 20,068 12,084 7,984 15,089
5300.40 VEHICLE FUEL 0 21 (21) 25 27 84 (57) 25
5310.40 VEHICLE MAINTENANCE 0 68 (68) 442 71 272 (201) 442
5360.40 OFFICE SUPPLIES 7 2,377 (2,370) 214 3,371 9,508 (6,137) 8,895
5380.40 MISC. OFFICE EXPENSE 3,639 3,092 547 3,350 16,727 12,368 4,359 20,427
5385.40 MISC BANK FEES 311 337 (26) 306 5,291 1,348 3,943 1,259
5386.40 MISC EXPENSE 0 64 (64) 0 - 256 (256) (2,599)
5387.40 ARROWHEAD ASSESSMENT EXPENSE 0 250 0 0 35 1,000 (965) -
5390.40 ADVERTISING 0 314 (314) 67 1,722 1,256 466 1,561
5520.40 LICENSES AND PERMITS 0 126 (126) 0 175 504 (329) 175
5605.40 MEMBERSHIPS/BOOKS 200 787 (587) 700 940 3,148 (2,208) 5,448
Total Department 40 Expenses 99,180.00$ 120,907 (21,477) 120,109 415,976 483,628 (67,652) 455,710
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PY Actual
01/16 Actual Budget
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PY Actual
10/15-01/16
01/01/17-01/31/17
Maintenance - Department 50 Expenses
5000.50 SALARIES & WAGES - Maint. 16,541$ 29,457$ (12,916)$ 13,140$ 55,941$ 117,828$ (61,887)$ 53,230$
5002.50 OVERTIME WAGES -Maint 89 2,105 (2,016) 0 202 8,420 (8,218) 431
5006.50 FICA - Maint. 1,272 2,414 (1,142) 986 4,325 9,656 (5,331) 4,034
5060.50 UNEMPLOYMENT TAXES 16 39 (23) 149 16 156 (140) 175
5090.50 EMPLOYER PENSION CONT. 1,472 1,767 (295) 1,071 4,794 7,068 (2,274) 4,200
5095.50 HEALTH/LIFE INSURANCE 25,612 10,293 15,319 21,751 47,591 41,172 6,419 40,977
5098.50 WORKERS' COMPENSATION 1,401 1,641 (240) 793 7,700 6,564 1,136 4,350
5155.50 TRAVEL & TRAINING 0 1,167 (1,167) 0 - 4,668 (4,668) 2,546
5180.50 TELEPHONE & FAX 113 137 (24) 139 337 548 (211) 500
5250.50 GENERAL LIABILITY INSURANCE 0 208 (208) 0 2,282 832 1,450 2,226
5255.50 COMP AUTO INSURANCE 0 625 (625) 0 6,778 2,500 4,278 6,694
5282.50 REPAIRS & MAINTENANCE 784 1,069 (285) 1,417 10,363 4,276 6,087 2,677
5287.50 OTHER CONTRACT SERVICES 0 420 (420) 510 1,005 1,680 (675) 1,952
5300.50 VEHICLE FUEL 0 875 (875) 313 1,213 3,500 (2,287) 1,287
5310.50 VEHICLE MAINTENANCE 4,734 1,422 3,312 3,700 6,122 5,688 434 6,848
5520.50 LICENSES AND PERMITS 141 60 81 0 141 240 (99) 142
5582.50 OTHER MATERIALS 6,432 1,753 4,679 2,414 13,664 7,012 6,652 8,067
5600.50 UNIFORMS/CLOTHING ALLOWANCE 400 175 225 0 700 700 - 294
5605.50 MEMBERSHIPS/BOOKS 0 40 (40) 0 - 160 (160) 26
Total Department 50 Expenses 59,007$ 55,667$ 3,340$ 46,383$ 163,174$ 222,668$ (59,494)$ 140,656$
Salary expenses in this department, except for the supervisor, are charged to the appropriate department, depending on the maintenance project they are working on.
Other materials includes materials and supplies to set up the storage area at the maintenance department.
Vehicle maintenance also includes expenses for stocking vehicle related inventory at the maintenance department.
Miscellaneous Expenses
5121.00 MASTER PLAN EXPENSE -$ -$ -$ -$ -$ -$ -$ -$
5125.00 BAD DEBT EXPENSE 0 2,917 (2,917) 0 - 11,667 (11,667) -
5440.00 DEPRECIATION 156,833 156,833 0 151,730 627,332 627,332 0 606,909
5480.00 INTEREST EXPENSE-FHA 0 59,956 (59,956) 0 - 239,822 (239,822) -
5490.00 INTEREST EXPENSE-OTHER 0 1,483 (1,483) 0 7,771 5,932 1,839 8,598
5700.00 HURRICANE WILMA-PAYROLL 0 0 0 0 - - - -
5701.00 HURRICANE WILMA-SUPPLIES 0 0 0 0 - - - -
5702.00 HURRICANE WILMA-CONTRACT LABOR 0 0 0 0 - - - -
Total Miscellaneous Expenses 156,833$ 221,188$ (64,355)$ 151,730$ 635,103$ 884,753$ (249,649)$ 615,507$
Total Operating Expenses 665,939$ 780,098$ (113,909)$ 680,855$ 2,750,690$ 3,120,393$ (369,702)$ 2,640,626$
Net Surplus (Deficit) 174,644$ (50,461)$ 76,681$ 338,918$ (201,842)$ 434,578$
Page 6
Immokalee Water & Sewer Dist. (IWSACT)
Page 1
Detailed Balance SheetAs of: 1/31/2017
2/7/2017 4:59:52 PM
Assets
4,787.801020.00 OPERATIONS & MAINTENANC
514,221.191030.00 FCB CD-.80% 07/13
566,037.601040.00 Florida Community Bank-CD 2.2
3,100.001070.00 CASH CHANGE FUND
300.001080.00 PETTY CASH FUND
671,470.701170.00 ACCOUNTS RECEIVABLE
5,001.381182.00 A/R DEVELOPER REVIEWS
77.701185.00 A/R - EMPLOYEE MISC.
105,249.521201.00 Revenue Account
55,880.251202.00 Operations & Maintenance Acco
233,067.681205.00 Special Restricted Reserve Acc
6,237,157.911209.00 Money Market Account
2,563.171210.00 Construction Account
1,188,296.501212.00 Customer Security Deposit Acc
1,964,733.221213.00 Bond & Interest Fund Account
3,112.651214.00 Wastewater Construction Accou
2,499.991215.00 FDEP CONSTRUCTION ACCO
12,653.681216.00 FDEP-Loan Debt Servce Accou
213,412.331217.00 Assessment Account
850,075.821230.00 ASSESSMENTS RECEIVABLE
327,731.071260.00 INVENTORY-Dept 10
24,993.071265.00 INVENTORY-Dept 50
1,200.001290.00 PREPAID EXPENSES
2,563,467.311300.00 LAND
51,542.121310.00 BUILDINGS
29,664.081320.00 BUILDING IMPROVEMENTS
113,582.731325.00 COMPUTER SYSTEM
1,757,417.371330.00 GENERAL PLANT & OFFICE E
2,605,696.131350.00 DISTRIBUTION PLANT - METE
5,620,834.271370.00 DISTRIBUTION PLANT - MAIN
82,473.681380.00 EASEMENT ACQUISITION
12,354,585.281390.00 SEWER COLLECTION
1,513,321.641395.00 ARROWHEAD DISTRIBUTION
1,262,323.741400.00 ARROWHEAD WATER
1,356,470.451430.00 AUTOS & TRUCKS
220,995.991450.00 WELL & WELL FIELDS
127,549.601470.00 SERVICE CONNECTIONS
67,032.461490.00 PUMP HOUSE - STRUCTURAL
32,029.001510.00 PUMP HOUSE - MECHANICAL
590,080.771530.00 RESERVOIR & AERATOR
70,238.591560.00 ELECTRICAL
150,408.421580.00 FENCING
4,807.261600.00 TURBINE PUMPS - 4"
15,684.001610.00 TURBINE PUMPS - 6"
3,399,060.751650.00 CARSON RD WATER TREATM
399,149.481657.00 Lift Station X2 & Force Main
54,983.531658.00 Lift Station K
131,516.361661.00 Lift Station W-Force Main
68,085.001670.00 MASTER UTILITY PLAN
14,299.991680.00 UTILITY STORAGE BUILDING
115,379.021690.00 AIRPORT WELL
50,137.001691.00 Airport Addition-2010
Draft - Unaudited
Immokalee Water & Sewer Dist. (IWSACT)
Page 2
Detailed Balance SheetAs of: 1/31/2017
2/7/2017 4:59:52 PM
15,535.221700.00 LANDSCAPING
12,775.391710.00 CARSON ROAD WELL
10,345.001720.00 DRIVEWAYS
170,819.471730.00 WATER PLANT EXPANSION
5,743.871740.00 1,000 G.P.M. AERATOR
87,996.311760.00 WESTCLOX EXTENSION
11,650,294.911770.00 SEWER TREATMENT PLANT
51,290.051771.00 WWTP Monitoring Wells
50,500.001772.00 Clarifier Rehab Design Phase
90,770.501773.00 Sewer Rehab Design Phase 3
3,681,742.441780.00 EFFLUENT DISPOSAL
1,414,432.201796.00 PLANT EXPANSION 96
1,722,570.941797.00 PLANT EXPANSION 97
22,560.161798.00 PLANT EXPANSION 98
2,387,806.671799.00 PLANT EXPANSION
154,862.001800.00 MANHOLE SYSTEM
(31,299,477.29)1810.00 ACCUMULATED DEPRECIATI
380,069.161861.00 Various LIftstation Improvement
2,065,485.031862.00 Class A Sludge Process
59,225.001865.00 WASTEWATER PLANT EXPAN
5,351,162.761870.00 DIW PROJECT
182,956.801871.00 DIW Piping Modifications 2015
316,724.711875.00 DISINFECTION SYSTEM IMPR
169,028.011876.00 CSI-AC Main & Undersized Mai
98,367.501877.00 Master Plan Asset
3,458,342.801878.00 CSI-DEP SRF Water Stimulus P
997,269.251880.00 WWTP UPGRADE-PH-1
325,361.081890.00 WWTP UPGRADE-PH-II
27,026.001891.00 IWSD Reclaimed
(83,709.79)3250.00 ALLOWANCE FOR DOUBTFUL
Total Assets $51,388,315.40========================
Liabilities
454,798.432100.00 ACCOUNTS PAYABLE
(0.59)2200.00 WAGES PAYABLE
(454.60)2201.00 FICA TAXES PAYABLE
115,389.252203.00 VACATION TIME PAYABLE
(45,190.81)2210.00 ACCOUNTS PAYABLE - PAYR
(382.50)2350.00 INSURANCE DEDUCTIONS
54,855.442390.00 ACCRUED INTEREST - FHA
1,195,141.002400.00 CUSTOMER DEPOSITS
450,000.002600.00 BOND SERIES A
157,000.002650.00 LOAN PAYABLE - BOND SERI
264,969.002670.00 LOAN PAYABLE-FHA AIRPOR
3,109,000.002680.00 LOAN PAYABLE - SERIES 199
584,468.542726.00 LOAN PAYABLE-DEP SRF WA
2,307,000.002800.00 BOND SERIES 1989
154,000.002810.00 BOND SERIES 1990
613,000.002820.00 SERIES 1998 BONDS
1,850,000.002830.00 BOND SERIES 2001
3,077,000.002835.00 USDA BOND SERIES 2008
4,835,000.002840.00 USDA Bond 2013
Immokalee Water & Sewer Dist. (IWSACT)
Page 3
Detailed Balance SheetAs of: 1/31/2017
2/7/2017 4:59:52 PM
Total Liabilities $19,175,593.16
Equity
9,982,996.833000.00 CONTRIBUTED CAPITAL - FHA
2,324,845.003001.00 CONTRIBUTED CAPITAL-DEP
3,425,300.003002.00 CONTRIBUTED CAPITAL-USD
1,060,900.003003.00 Contributed Capital-Arrowhead
153,509.003005.00 AMORT OF CONTRIBUTED CA
1,268,087.753050.00 MEMBERSHIP CERTIFICATES
2,143,096.483060.00 Accumulated Maintenance Res
5,554,687.673100.00 CONTRIBUTIONS IN AID OF C
19,502.383120.00 CONTRIBUTIONS - IMPACT F
444,133.453150.00 CONTRIBUTED CAPITAL ASS
(840,000.00)3199.00 AMORT OF CUST CAPITAL
776,232.883200.00 SURPLUS - RETAINED EARNI
960,000.003210.00 Emergency Reserve
3,300,690.003220.00 Operating Reserve
259,086.003230.00 Vehicle Replacement Reserve
540,234.003240.00 Capital Equipment Reserve
Net Income / (Loss) $839,420.80
Net Worth $32,212,722.24
========================$51,388,315.40Total Liabilities and Net Worth
MEMORANDUM
IWSD Eng Report 2-8-17.docx
TO: IWSD Board February, 2017
FROM:
SUBJECT: General Engineering Report
IMMOKALEE WATER & SEWER DISTRICT
GENERAL ENGINEERING REPORT
1.) MONTHLY FLOW SUMMARY
Water treatment plants: Max day combined water production for the three water plants last
month was 2.68 MGD, which occurred on the 18th. This volume is up from the 2.48 MGD
reported for the previous month. The combined average daily flow for last month was 2.30
MGD, which is up from the previous month’s 2.20 MGD. Shown below is a tabulation of the
average and max daily flows for each water treatment plant for last month:
FACILITY
Max DF
(MGD)
Max DF
(Date)
ADF
(MGD)
Permitted
Capacity
(MGD)
%
Capacity
for ADF
9th ST WTP 0.89 21st 0.33 2.25 14.7%
Carson Rd. WTP 1.65 10th 1.22 2.00 61.0%
Airport WTP 1.25 17th 0.74 1.39 53.2%
Total 2.68 18th 2.30 5.64 40.8%
Wastewater treatment plant max daily flow for last month was 2.17 MGD, which is down
from the previous month’s 2.35 MGD. The average daily flow for last month was 1.86 MGD,
which is down from the previous month’s 1.94 MGD. Shown below is a tabulation of the
average and max flows for the wastewater treatment plant for last month:
The annual ADF was 1.62 MGD. Rainfall recorded at the wastewater treatment plant was 0.96
inches for the month of January compared to 0.22 inches for December.
FACILITY Max DF
(MGD)
ADF
(MGD)
Permitted
Capacity
(MGD)
% Capacity
for ADF
Wastewater Treatment Plant 2.17 1.86 4.00 46.5%
Memorandum To: IWSD Board February 8, 2017
Page 2
IWSD Eng Report 2-8-17.docx
2.) WATER TREATMENT PLANTS
The District’s New Water Use Permit was issued on May 23, 2011.
In the permit, SFWMD stipulated a monitoring period to ensure that the IWSD’s water
withdrawals do not adversely impact wetland areas.
The monitoring plan will involve annual vegetation inspections and drilling two shallow monitor
wells to periodically check ground water levels.
SFWMD also required IWSD to remove the exotic vegetation from the wetland areas for the
monitoring period of 5 years.
At the November 28th IWSD Board Meeting, the Board approved the ranking and voted to enter
into a 5-year contract with Collier Environmental Services for exotic vegetation removal.
Collier Environmental Services began work on January 30, 2013.
Boylan Environmental Consultants, Inc. submitted the Fifth Annual (Final) monitoring report to
SFWMD on September 15, 2016.
3.) WASTE WATER TREATMENT PLANT & EFFLUENT DISPOSAL
The renewed Deep Injection Well (DIW) operating permit was issued on January 14, 2015.
The WWTP permit renewal was issued by FDEP on June 22, 2016.
4.) DISTRIBUTION AND COLLECTION SYSTEMS
The USDA has approved the ER and PER for the AC and Undersized Water Main Replacement
Project.
The national USDA office has approved the project application, and IWSD, G&H and USDA
representatives met on May 11th to discuss the schedule for the project.
G&H has submitted the FDOT Right-of-Way permit application for Phase 3.
G&H is working on responses to FDOT’s request for additional information.
IWSD and G&H met with Matt McClean from Collier County on November 14th to discuss the
Right-of-Way permit fees for the project.
On November 4th, IWSD and G&H participated in a webinar presentation given by Quest
Construction Data Network to demonstrate their on-line services for bidding projects, including
electronic document distribution (via download) and maintaining a list of plan holders.
The updated anticipated schedule is as outlined below:
Completed Contract Documents submitted to USDA
Completed USDA Review
Completed Address USDA Minor Comments
Completed USDA Concurrence
Completed Bond Hearing
Completed USDA issuance of Loan Closing Instructions
Completed IWSD Certification to meet Loan Closing Stipulations
Completed USDA Authorization to Bid
March 2017 Bid Opening
April 2017 USDA Review/Approval and Contract Award
April 2017 Start of Construction
Memorandum To: IWSD Board February 8, 2017
Page 3
IWSD Eng Report 2-8-17.docx
G&H has developed plans for improvements to Lift Station X7.
G&H reviewed quotes from contractors for improvements to Lift Station X7.
IWSD intends to award the Lift Station X7 construction contract to Quality Enterprises.
IWSD intends to purchase the pumps, guiderails, and control panel directly from the pump
supplier.
5.) STATUS OF CAPITAL IMPROVEMENT PROJECT FUNDING
G&H has developed plans and specifications for the Clarifier Rehab project as well as the Sewer
Rehab projects. FDEP has approved the plans and specifications and these projects were added
to the FDEP intended use list at the November 2014 hearing.
However, other funding sources will likely be sought for these projects instead.
Due to the magnitude of the Reclaimed Water project, the IWSD will need to go through the
RFQ process for professional services.
G&H and IWSD have updated the 5-year Capital Improvements Plan for FY2016 through
FY2021.
6.) CONSTRUCTION PROJECTS WITHIN THE IWSD SERVICE AREA
Kaicasa – We have reviewed re-submitted utility plans from Johnson Engineering and sent an
approval letter to IWSD on May 13, 2008. The water and sewer lines have been completed, but
the remainder of the project has been delayed.
First Stop Grocery – We have reviewed re-submitted utility plans from Blair A. Foley, P.E.,
LLC and the project is now under construction.
Quik Way – We have reviewed the re-submitted utility plans from Steven J. Fleming and
Associates, Inc. and are waiting for them to schedule a pre-construction meeting.
Immokalee Regional Airport Phase 2 – We have reviewed the revised plans from Grady
Minor, and are waiting for them to schedule a pre-construction meeting.
Our Lady of Guadalupe – We have reviewed the submitted plans from Spectrum Engineering
and are waiting for them to schedule a pre-construction meeting.
First Bank – We have reviewed the re-submitted plans from Deuel and Associates, and are
waiting for them to schedule a pre-construction meeting.
1
Executive Director’s Report By
Eva J. Deyo February 15, 2017 – Regular Board Meeting
Water Department During January, Jean Pierre “JP” Louis and the Water Department staff completed the following:
Productivity: - The Water Department staff installed 12 new services with backflows. They replaced 3 backflow preventers, 61 meter registers, and 14 meter antennas. They repaired 3 line and tubing breaks and 36 backflow devices. They repaired 3 valves, and raised 1 meter box.
Meter sizes and registers – We are continuing to verify the EDU’s and meter sizes, at the different locations.
Backflow Testing/Certification Project – They have been steadily working on this program, in order to complete the requirements.
Water Plant Issues –The JVW Plant needed repairs on the top. We received a quote from Crom Engineering and Construction Services (CECS), a division of Crom, LLC (the tank manufacturer). Their price was $37,713 to do the concrete repairs needed to the tank. We hired them to do the work. They took the plant off line in order to do the repairs. This work was completed and the plant was placed back on line on January 18, 2017.
Flushing - They are still working on the flushing project. It has to be done three times per year. Valve Project – JP Louis has assigned two people at a time, to take turns for two weeks, to make
sure that the water valve exercising project is also completed. They are also replacing broken valves.
SCADA System – This was installed on the three water plants. There were some problems with the system on the Carson Plant. They all seem to be working now.
The Water Department is very busy with all of the ongoing projects, trying to maintain staff, and coverage.
Vacancies – There are no vacancies in this department.
Wastewater Plant During January:
Plant Operations & Maintenance – John Short and his staff were working under mostly normal conditions for this time of year. We had problems with the clarifiers blankets went over the weirs.
FDEP Inspection – FDEP came to the WWTP for an inspection the week of October 19, 2015. We still have not received their written report.
Sprayfield – We have been using the Sprayfield as much as possible, Schwing Bioset Process – We have begun making our own fertilizer: Organi’Kalee. We are currently
using it in our own sprayfield. It didn’t run for approximately two weeks in January. Vacancies – There are no vacancies in this department.
Wastewater Collection Lift Station Maintenance – During January, Hector Ramos and his staff pulled pumps, and mowed at
the various lift stations, and around the Wastewater Plant, and the District owned property on SE 11th Street. They replaced a voltage monitor relay in Lift Station X6.
2
Sewer backup – There were sewer backups on Eustis Avenue, Kristy Lane, South 12th Street, North 19th Street, Orange Street, Lake Trafford Road and Weeks Terrace.
Smoke Testing – We smoke tested the manholes in Section H. Lift Station N Vehicle Accident – On December 2, 2016, a person ran over the control panels and
backflows to Lift Station N. We received two quotes for the emergency repair, and awarded it to the lowest bid received from MG Electrical Developers, Inc. ($10,250). We contacted the insurance company (Liberty Mutual) and they will be sending a check for $10,000 (the maximum amount of property damage coverage that their client has).We received the check from the insurance company on February 1, 2017.
Vacancies – We advertised for the vacancy left by Jacob Gallegos. His last day was January 24, 2017.
Administration During January, Oona Reyna-Rodriguez and her staff were very busy keeping up with their regular
duties and keeping the office going. File Server Upgrade - We are still trying to configure the Denali Accounting Program, and are not
able to customize reports at this time. Vocantas Interactive Voice Response Solution – IWSD is going to be implementing this system. It
will automate routine tasks and increase available time for complex requirements. It will also streamline customer service and increase customer satisfaction. It is flexible and scalable to meet our unique requirements. They will assign a toll free number 866-658-3630 to IWSD. Customers will be able to call in to make payments with checks, credit cards, etc. It uses speech recognition and is PCI compliant. It will allow for the customers to be called before their water is turned off.
Online Bill Pay – The District began accepting online bill payments on January 9, 2015. Customers can sign up to make payments, or to see their water usage history. They also have the option of getting their water bills by email. We now have over 500 customers who are signed up to access their account electronically.
Record Retention - We are continuing to work on scanning orders, and other old records, for electronic record-keeping.
I-9 Audit – Homeland Security came to audit our I-9’s and associated paperwork. They are now selecting critical infrastructure to audit. Norma Garcia had to scan and make copies of all of the documents for them to audit, for all of our current employees and for 3 years of the former employees. We are still waiting for them to return the originals.
Fiscal Year 2016 Audit – Tuscan & Company worked on their final fieldwork on the week of December 13, 2016. They are scheduled to present to the Board on February 15, 2017.
Vacancies – There are no vacancies in this department.
Maintenance Department During January, Derys Maldonado and his staff completed the following:
Wastewater Plant and Sprayfield: – They unclogged and cleaned the return tubes on Clarifier #1 sludge return tank. They replaced the motor on Digester #1. They unclogged the Wastewater plant grit separator. They repaired a check valve leak on RAS B. They repaired a splash guard cover, adjusted the junction electrical Box on Rotor 1A, and also tightened the belts. One shaft of Rotor 3A busted and half of the Rotor was submerged into the Ditch. They drained the ditch, replaced the shaft and put the Rotor back in place. They replaced a blown fuse on Rotor 3B. They replaced gearbox seals on Ditch #4A. They unclogged the effluent line to the Lab. They replaced the back pump cover on Bioset transfer pump. They installed new signs in the new and old admin buildings restrooms. Southwest Florida Service & Supply pulled DIW #1 for repairs.
3
Equipment: - They installed steering hydraulic cylinder in the scissor lift. They replaced a belt on the forklift. They installed a new hose and filter on the Dept 30 smoke blower chemical tank pump and cleaned the carburetor. They serviced the Thompson pump. They worked on the MX 110 Case Tractor, adjusted the shifter. They also replaced the door tint, lock, gasket and hinges. They replaced the tires on Departments 20 & 50 EZ Go golf carts. They took out JD Tractor 229 hydraulic steering cylinder & replaced front axle seals. They also replaced the exhaust pipe. They repaired Dept 50 pressure washer pump. They sanded down and sprayed rust stop on dept 50 mini-excavator trailer. They replaced the hydraulic hoses on B95 back-hoe and painted the stabilizer leg. They serviced the Bad Boy riding mower.
Vehicles: - They worked on new truck accessories and tint. Motorola came over and installed new truck radios. They installed cruise control modules on trucks 551, 552, 114, 336 & 120 and took them to Labelle Ford for cruise control computer flashing. They installed new batteries on trucks 332 & 551. They installed new strobe lights on truck 120, new back up alarm & camera.They repaired a front passenger tire on truck 220. They repaired an air leak on truck 228. They serviced truck 553. They serviced truck 556. They also installed a crane hoist seal, and installed new rear strobe lights. They adjusted door latches on truck 561.
Water Department: - They greased HSP #3 at Carson Water Plant and put back on line. They re-set JVW Water Plant PLC. They also worked on replacing the floats, because the wells would not work on automatic.
Miscellaneous: They installed Dept 40 and Dept 20 new refrigerators. They lowered the main office lobby's restroom mirror and paper towel dispenser. They installed a new Board Room a/c locking box. They helped Dept 30 on sewer backups, and pulling pumps at various lift stations.
Vacancies – There are no vacancies in this department.
IMMOKALEE WATER & SEWER DISTRICT
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
TOGETHER WITH ADDITIONAL REPORTS
YEARS ENDED
SEPTEMBER 30, 2016 AND 2015
FY '16 Verbal Comments
Maximum reserve is overfunded by approx $276K.
Revenue should be recorded when earned (Radio Fiesta cell tower only had 10 months of
revenue recorded) (w/p 600.6)
OPEN ITEMS - '16
FCADRAFT
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT.....................................................................................................................1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)....................................................................................................................I-XI
BASIC FINANCIAL STATEMENTS
Statements of Net Position.............................................................................................................................................5
Statements of Revenues, Expenses, and Changes in Net Position..................................................................6
Statements of Cash Flows...........................................................................................................................7
Notes to the Financial Statements..............................................................................................................8-32
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Schedule of Revenues, Expenses and Changes in Net Position - Budget
(Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP
Basis - Year Ended September 30, 2016...............................................................................................................................................33-38
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Basic Financial Statements Performed
in Accordance with Government Auditing Standards………………………………………………….39-40
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes………………………………………………………………………………….………………….41
Independent Auditor's Report to Management………………………………………………….…………………42-44
Management's Response to the Independent Auditor's Report to Management………………………………….Exhibit
DRAFT
INDEPENDENT AUDITOR’S REPORT
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
Report on the Financial Statements
We have audited the accompanying basic financial statements of the business-type activities of
Immokalee Water & Sewer District (an independent special district) ( the "District") as of and for
the years ended September 30, 2016 and 2015, and the related notes to the financial statements,
which collectively comprise the District's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those 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,
DRAFT
Board of Commissioners
Immokalee Water & Sewer District
Page 2
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 overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the business-type activities of Immokalee Water & Sewer District
as of September 30, 2016 and 2015, and the respective changes in financial position and cash
flows thereof, for the years then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages I - XI be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information - management's discussion and analysis (MD&A) in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the required supplementary information - management's
discussion and analysis (MD&A) because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
DRAFT
Board of Commissioners
Immokalee Water & Sewer District
Page 3
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise Immokalee Water & Sewer District's basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information - Schedule of
Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and
Actual with Reconciliation to GAAP Basis - year ended September 30, 2016 is presented for
purposes of additional analysis and is not a required part of the basic financial statements. The
required supplementary information other than MD&A - budgetary comparison information -
Schedule of Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary
Basis) and Actual with Reconciliation to GAAP Basis - year ended September 30, 2016 is the
responsibility of management and was derived from and relates 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 required supplementary
information other than MD&A budgetary comparison information - Schedule of Revenues, Expenses
and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation
to GAAP Basis - year ended September 30, 2016 is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the District's basic financial statements. The Exhibit - Management's
Response to Independent Auditor's Report to Management is not a required part of the basic
financial statements but is required by Government Auditing Standards. Such information has not
been subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on it.
DRAFT
Board of Commissioners
Immokalee Water & Sewer District
Page 4
Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated January 16,
2017, on our consideration of Immokalee Water & Sewer District's compliance with provisions of
Section 218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing
of compliance and the results of that testing, and to provide an opinion on compliance with the
aforementioned Statute. That report is an integral part of an audit performed in accordance with
Sections 218.39 and 218.415, Florida Statutes in considering Immokalee Water & Sewer District's
compliance with Section 218.415, Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January
16, 2017 on our consideration of the District's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contract 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 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
District's internal control over financial reporting and compliance.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
January 16, 2017
DRAFT
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
DRAFT
IMMOKALEE WATER & SEWER DISTRICT
STATEMENTS OF NET POSITION
September 30, 2016 and 2015
2016 2015
ASSETS
CURRENT ASSETS
Cash 6,553,891$ 5,735,710$
Investment 1,075,700 1,062,152
Accounts receivable, net 525,068 510,580
Other receivables 5,079 6,311
Inventory 382,964 297,906
Prepaid expenses 50,406 44,068
TOTAL CURRENT ASSETS 8,593,108 7,656,727
RESTRICTED ASSETS
Cash 3,105,915 2,939,447
Grant and assessment receivables 901,754 954,803
TOTAL RESTRICTED ASSETS 4,007,669 3,894,250
CAPITAL ASSETS
Capital assets not being depreciated:
Land 2,645,941 2,645,941 Construction in progress 484,882 283,183
Capital assets being depreciated: Buildings and improvements 1,509,938 1,509,938 Water and wastewater plants and systems 61,902,278 61,321,071 Machinery and equipment 3,201,123 2,932,654 Less:
Accumulated depreciation (31,169,271) (29,337,127)
38,574,891 39,355,660
TOTAL ASSETS 51,175,668$ 50,906,637$
The accompanying notes are an integral part of this statement.
DRAFT
Page 5 of 44
2016 2015
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts and contracts payable 465,142$ 316,320$
Other accrued expenses 104,688 77,461
TOTAL CURRENT LIABILITIES 569,830 393,781
CURRENT LIABILITIES (Payable from Restricted Assets)
Revenue bonds payable, current portion 538,000 513,000
Loans payable - SRF, current portion 33,267 32,423
Accrued revenue bond interest 54,855 56,918
Retainage payable - -
Customer deposits 1,159,843 1,078,082
TOTAL CURRENT LIABILITIES
(Payable from Restricted Assets) 1,785,965 1,680,423
LONG-TERM LIABILITIES
Revenue bonds payable, net of current portion 16,278,969 16,816,969
Loans payable - SRF, net of current portion 567,728 600,996
Accrued compensated absences 115,389 100,557
TOTAL LONG-TERM LIABILITIES 16,962,086 17,518,522
TOTAL LIABILITIES 19,317,881 19,592,726
NET POSITION
Net investment in capital assets 21,156,927 21,392,272
Restricted 2,221,704 2,213,827
Unrestricted 8,479,156 7,707,812
TOTAL NET POSITION 31,857,787 31,313,911
TOTAL LIABILITIES AND NET POSITION 51,175,668$ 50,906,637$
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 6 of 44
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Years ended September 30, 2016 and 2015
2016 2015
OPERATING REVENUES
Cross connection control fee 305,285$ 296,521$
Water service 2,769,676 2,723,616
Wastewater service 4,755,135 4,689,555
Meter service charge 599,235 585,006
Late fees 87,850 84,190
Reconnect and transfer fees 103,780 103,275
Miscellaneous charges, fees and other income 64,263 55,613
TOTAL OPERATING REVENUES 8,685,224 8,537,776
OPERATING EXPENSES
Water treatment and distribution 1,609,111 1,634,913
Wastewater treatment 1,664,779 1,529,244
Wastewater collection 818,494 653,469
Customer service and administrative 1,226,687 1,058,560
Maintenance 416,892 346,322
TOTAL OPERATING EXPENSES
PRIOR TO DEPRECIATION 5,735,963 5,222,508
Depreciation 1,832,144 1,737,470
TOTAL OPERATING EXPENSES 7,568,107 6,959,978
OPERATING PROFIT (LOSS) 1,117,117 1,577,798
NON-OPERATING REVENUES (EXPENSES)
Interest income 54,869 47,692
Gain (loss) on disposal of fixed assets 13,072 (1,914)
Interest expense (730,557) (754,245)
Bad debt expense adjustment 10,042 (31,249)
Other income 35,274 42,444
NET NON-OPERATING EXPENSES (617,300) (697,272)
PROFIT (LOSS) BEFORE CAPITAL
CONTRIBUTIONS 499,817 880,526
CAPITAL CONTRIBUTIONS
USDA - grants - 380,506
Customers 44,059 505,077
Developers - -
TOTAL CAPITAL CONTRIBUTIONS 44,059 885,583
INCREASE (DECREASE) IN NET POSITION 543,876 1,766,109
NET POSITION - Beginning of the year 31,313,911 29,547,802
NET POSITION - End of the year 31,857,787$ 31,313,911$
The accompanying notes are an integral part of this statement.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT
STATEMENTS OF CASH FLOWS
Years ended September 30, 2016 and 2015
2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 8,763,771$ 8,524,116$
Cash payments to suppliers and employees (5,636,478) (5,279,604)
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,127,293 3,244,512
CASH FLOWS FROM NONCAPITAL FINANCING:
Other income received 35,274 42,444
NET CASH PROVIDED BY NONCAPITAL FINANCING 35,274 42,444
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (1,051,375) (1,518,085)
Proceeds from sale of capital assets 13,072 -
Principal paid on revenue bonds (513,000) (488,000)
Principal paid on LOC - -
Principal paid on loans - SRF (32,424) (31,601)
Interest paid on bonds and other obligations (732,620) (756,046)
Proceeds from Series 2013 Bond - -
Capital contributions - USDA - 380,506
Membership/customer/developer connection fees/assessment 97,108 558,126
NET CASH PROVIDED BY (USED IN) CAPITAL
AND RELATED FINANCING ACTIVITIES (2,219,239) (1,855,100) .
CASH FLOWS FROM (USED IN)
INVESTING ACTIVITIES:
Interest earned on investments 41,321 34,372
Purchase of certificate of deposit - -
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 41,321 34,372
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 984,649 1,466,228
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 8,675,157 7,208,929
CASH AND CASH EQUIVALENTS-
END OF YEAR 9,659,806$ 8,675,157$
The accompanying notes are an integral part of this statement.
DRAFT
Page 7 of 44
2016 2015
RECONCILIATION OF OPERATING PROFIT TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING PROFIT (LOSS) 1,117,117$ 1,577,798$
Adjustments to reconcile operating profit to
net cash provided by operating activities:
Depreciation (non cash) 1,832,144 1,737,470
Increase (decrease) in accrued compensated absences (non cash) 14,832 9,995
(Increase) decrease in accounts receivable, net (4,446) (81,004)
(Increase) decrease in other receivables 1,232 18,042
(Increase) decrease in inventory (85,058) 52,969
(Increase) decrease in prepaid expenses (6,338) (2,910)
Increase (decrease) in accounts payable 148,822 (134,567)
Increase (decrease) in contracts payable - -
Increase (decrease) in other accrued expenses 27,227 17,417
Increase (decrease) in customer deposits 81,761 49,302
TOTAL ADJUSTMENTS 2,010,176 1,666,714
NET CASH PROVIDED BY
OPERATING ACTIVITIES 3,127,293$ 3,244,512$
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 8 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Water & Sewer District (the "District") was created by Laws of Florida,
(Section) Chapter 78-494 on July 15, 1978, under the provisions of Florida Statute,
Chapter 153.53 for the purpose of providing water and sewer services to
Immokalee, an unincorporated area of eastern Collier County, Florida. The District's
enabling legislation was repealed, updated, reenacted, and codified by Laws of
Florida, Chapter 98-495 on May 28, 1998. On July 1, 2005, Laws of Florida,
Chapter 2005-298 amended Laws of Florida, Chapter 98-495 by expanding the
District's boundaries. On June 10, 2015, Laws of Florida, Chapter 2015-205
amended Laws of Florida, Chapter 98-495 to provide for salaries/honorariums for
elected District Board members up to $250 each per month.
The District owns, operates, maintains and regulates its water and sewer plants and
systems as an independent special district of the State of Florida. The District is
governed by a seven (7) member Board of Commissioners appointed by the
Governor of the State of Florida. The Board of Commissioners (the "Board")
administer the District, independent from any other local governing body and serve
staggered four (4) year terms.
Reporting Entity
Immokalee Water & Sewer District is financially independent of all other units of
government. It is responsible for financing its own activities and the payment of its
own debt. The Board of Commissioners (the "Board") has the responsibility to
employ management that is responsible for the day-to-day operations of the District.
The Board has absolute authority over all funds included in the entity. Immokalee
Water & Sewer District is not a component unit of any other governmental unit.
The District adheres to Statement of Governmental Accounting Standards Board
(GASB) Statement Number 14, "Financial Reporting Entity", as amended by GASB
Statement Number 39, "Determining Whether Certain Organizations Are Component
Units" and GASB Statement Number 61, "The Financial Reporting Entity: Omnibus -
An Amendment of GASB Statements No. 14 and No. 34". These Statements
require the financial statements of the District (the primary government) to include its
component units, if any. A component unit is a legally separate agency for which the
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 9 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Reporting Entity, continued
primary government is financially accountable or organizations whose exclusion would
cause the financial statements to be misleading because of the nature and significance
of their relationship with the primary government. Financial accountability is
determined by the primary government's ability to appoint the voting majority of the
entity's board, impose its will on the organization, the existence of a financial
benefit/burden relationship or fiscal dependency. Based on this criteria, there are no
component units included or required to be included in the District's financial
statements.
The Immokalee Water & Sewer District adheres to the requirements of
Governmental Accounting Standards Statement Number 33 "Accounting and
Financial Reporting for Non-Exchange Transactions." As such, grant revenue is
recorded as non-operating revenue and is reflected on the Statements of Revenues,
Expenses and Changes in Net Position.
The following is a summary of the significant accounting polices used in the
preparation of these financial statements:
The District adheres to the requirements of Governmental Accounting Standards
Board Statement Number 34, "Basic Financial Statement and Management's
Discussion and Analysis for State and Local Governments" (GASB 34). The
government-wide financial statements along with the notes to the financial statements
and the RSI, as noted below comprise the basic financial statements.
The basic financial statements of the District are comprised of the following:
- Government-wide financial statements
- Notes to the financial statements
- Required supplementary information other than MD&A
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 10 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-Wide Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Revenues, Expenses and Changes in Net Position) report information
on all of the activities of the District and do not emphasize fund types. These
business-type activities comprise the primary government. Business-type activities
rely on user fees and charges to support its activities rather than taxes and
intergovernmental revenues. The purpose of the government-wide financial
statements is to allow the user to be able to determine if the District is in a better or
worse financial position than the prior year. The District uses only one fund.
Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement 33-"Accounting and Financial Reporting for Nonexchange
Transactions."
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements, rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government-wide
financial statements, rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government-wide financial statements, rather than as
expenditures.
The Statement of Revenues, Expenses and Changes in Net Position demonstrates the
degree to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include: 1) charges to customers or
applicants who purchase, use or directly benefit for goods, services, or privileges
provided by a given function and 2) grants and contributions that are restricted to
meeting the operational or capital improvements of a particular function.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 11 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-Wide Financial Statements, continued
Operating revenues are considered to be revenues generated by services performed
and/or by fees charged such as water and sewer usage, connection, inspection fees
and flow testing.
Budgetary Information
As required, the District uses only one fund to account for its activities and, therefore,
it is considered a major fund. The District has elected to report budgetary
comparison of its major fund as required supplementary information (RSI).
Fund Accounting
The District's financial practices are based upon fund accounting concepts. A fund is
defined as a fiscal and accounting entity with a self-balancing set of accounts,
recording cash and other financial resources, together with all related liabilities and net
assets (fund equity balances) and changes therein.
The accompanying financial statements reflect Business - Type Activities and are
classified as a single Proprietary Fund Type - Enterprise fund. This fund accounts
for the cost of services provided by the District as well as the revenues earned by the
District.
Business - Type Activities - Proprietary Fund Type
Enterprise Fund - An enterprise fund is used to account for operations (1) that are
financed and operated in a manner similar to private business enterprises where the
intent of the governing body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or (2) where the governing body has
decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 12 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus
Proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, assets and liabilities associated with the
operation of these funds are included on the balance sheet. Proprietary fund-type
operating statements present increases (i.e. revenues) and decreases (i.e. expenses)
in total net position. Operating revenues and expenses result from providing water
distribution as well as wastewater collection and treatment to members within the
District's boundaries. Generally, other revenues and expenses are treated as
non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Basis of Accounting
The proprietary fund type is presented on the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recorded in the period earned and expenses
are recorded in the period the liability is incurred.
Budgetary Process
The District operates under a fixed budget for control purposes. The budget and
amendments, if any, are approved by the Board of Commissioners. The budget is
prepared on a Non-GAAP accrual basis, whereby items such as capital expenditures
and debt principal payments are budgeted as expenses.
The annual budget serves as the legal authorization for expenditures. Expenditures
cannot legally exceed the total amount budgeted. All budget amendments, which
change the legally adopted total appropriation, are approved by the Board.
The District follows these procedures in establishing budgetary data.
1. During the summer of each year, management submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
October 1. The operating budget includes proposed expenditures and the means
of financing them.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 13 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Budgetary Process, continued
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these financial statements, are as originally adopted
or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America, except as reflected in the
supplementary information and as noted above.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
The Board of Commissioners did amend the budget during the fiscal year ended
September 30, 2016 to increase total budgeted net revenue by $225,636 and an
increase in budgeted expenses (including net non-operating revenue and expense) by
$225,636.
Cash
For the purpose of the Statements of Cash Flows, the District considers all highly
liquid investments, including both unrestricted and restricted, with a maturity of three
months or less, when purchased, to be a cash equivalent, in accordance with District
policy.
Accounts Receivable/Allowance for Doubtful Accounts
Receivables include user fees for water and wastewater services provided as part of
the operations by the District. The accounts receivable are recorded net of the
estimated allowance for doubtful accounts. The District operates using an allowance
and collection policy that ultimately provides for discontinuance of water service due
to nonpayment by the user. The policy also provides for application of the respective
user's security deposit upon certain criteria. Additionally, the policy requires a user
landlord to satisfy any outstanding user fees (tenant) prior to allowing services to a
future tenant for that landlord.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 14 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Inventory
Inventory consists of utility system parts and hardware supplies at year end. The
inventories are valued at cost, which approximates market. The method used to
determine the value of the inventory is the FIFO (first in-first out) method.
Capital Assets and Depreciation
Capital assets acquired by proprietary funds are reported in those funds at historical
cost or estimated historical cost if actual historical cost is not available.
Donated assets are reported at estimated fair market value at the time received.
Certain infrastructure-type fixed assets consisting of certain improvements such as
roads, curbs, gutters and lighting systems have not been capitalized, as the District
does not generally incur such expenditures. However, the systems' distribution and
collection lines and pumps are capitalized and depreciated as part of the overall
system. Assets acquired with a cost or fair value of $1,000 or more and a useful life
of 1 year or more are capitalized. Maintenance, repairs and minor renovations are
not capitalized. The acquisition of land and construction projects utilizing resources
received from Federal and State agencies are capitalized when the related
expenditure is incurred.
The capital assets are depreciated using the straight-line method of depreciation over
the following estimated useful lives:
Asset Years
Buildings/Plant and Plant Equipment 10-40
Capital Improvements, Distribution Lines 5-40
Furniture, Fixtures and Equipment 3-20
Vehicles 3-7
Restricted Assets
These monies are restricted by the applicable debt covenants and grant agreements or
as customer deposits.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 15 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Vacation Leave and Other Compensated Absences
Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund.
The method of accrual is in accordance with Statement of Governmental Accounting
Standards Board Number 16, "Accounting for Compensated Absences" (GASB
16). This Standard provides for the measurement of accrued vacation leave and
other compensated absences using the pay or salary rates in effect at the balance
sheet date. It also requires additional amounts to be accrued for certain salary
related payments associated with the payment of compensated absences such as
FICA and retirement benefits only, vacation is accrued and paid at termination.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because at
present it is not considered necessary to assure budgetary control or to facilitate
effective cash planning and control.
Membership (Connection) Fees
Water (connection) service installation fees are dedicated for the system expansion
and are treated as contributed capital but recognized as revenue when received (due
to the District) by the District.
Income Taxes
The District, as a governmental unit, is exempt from income taxes under current
provisions of the Internal Revenue Code and Florida State Law.
Fund Equity
Grants, entitlements or shared revenues which are externally restricted for capital
acquisition or construction are treated as contributed capital but recorded as revenue
when due to the District. Contributed or donated fixed assets are also treated as
contributed capital but recorded as revenue when due the District. Reserved retained
earnings represent those portions of fund equity legally restricted by debt covenants
for current and future debt service.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 16 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Reclassifications
Certain amounts in the financial statements have been reclassified to conform with the
current year presentation. These reclassifications had no effect on the results of
operations or net assets.
Subsequent Events
Subsequent events have been evaluated through January 16, 2017, which is the date
the basic financial statements were available to be issued.
Application of FASB Pronouncements to Proprietary Funds
In accordance with Governmental Accounting Standards Board (GASB) Statement
20, "Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting", the District has
elected not to apply those FASB Statements and Interpretations issued after
November 30, 1989. Only GASB pronouncements issued after this date will be
adopted by the District.
Accounting Pronouncement GASB No. 42
The District adheres to Government Accounting Standards Board Statement Number
42, "Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries" (GASB 42). GASB 42 establishes accounting and financial
reporting standards for impairment of capital assets.
DRAFT
IMMOKALEE WATER & SEWER DISTRICT Page 17 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Accounting Pronouncement GASB No. 42, continued
A capital asset is considered impaired when its service utility has declined significantly
and unexpectedly. Governments are required to evaluate prominent events or
changes in circumstances affecting capital assets to determine whether impairment of
a capital asset has occurred. Such events or changes in circumstances that may be
indicative of impairment include evidence of physical damage, enactment or approval
of laws or regulations or other changes in environmental factors, technological
changes or evidence of obsolescence, changes in the manner or duration of a capital
asset, and construction stoppage. A capital asset generally should be considered
impaired if both (a) the decline in service utility of the capital asset is large in
magnitude and (b) the event or change in circumstance is outside the normal life cycle
of the capital asset.
The District incurred no capital asset impairment activity for the years ended
September 30, 2016 or 2015.
NOTE B - CASH AND INVESTMENTS
At September 30, 2016 and 2015, cash and cash equivalents (including both
restricted and unrestricted cash and cash equivalents) were $9,659,806 and
$8,675,157 respectively, including unrestricted cash on hand of $3,400 and $3,400,
respectively.
Deposits
The District's deposit policy allows deposits to be held in demand deposits, savings
accounts, certificates of deposit, direct obligations of the U.S. Treasury, Local
Government Surplus Trust Funds, direct obligations of Federal agencies and
instrumentalities and money market accounts. All cash deposits are held in qualified
public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for
Public Deposits Act."
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IMMOKALEE WATER & SEWER DISTRICT Page 18 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE B - CASH AND INVESTMENTS, CONTINUED
Deposits, continued
Insured/ Bank CarryingCollateralized Balance Amount
September 30, 2016
Unrestricted
Depository accounts 298,907$ 298,907$ 199,440$ Money market 6,351,051 6,351,051 6,351,051
6,649,958 6,649,958 6,550,491
Restricted
Depository accounts 1,176,589 1,176,589 1,176,589 Money market 1,929,326 1,929,326 1,929,326
3,105,915 3,105,915 3,105,915
9,755,873$ 9,755,873$ 9,656,406$
September 30, 2015
Unrestricted
Depository accounts 273,330$ 273,330$ 287,290$
Money market 5,445,020 5,445,020 5,445,020
5,718,350 5,718,350 5,732,310
Restricted
Depository accounts 1,101,066 1,101,066 1,101,066
Money market 1,838,381 1,838,381 1,838,381
2,939,447 2,939,447 2,939,447
8,657,797$ 8,657,797$ 8,671,757$
Unrestricted and Restricted Deposits
The District's deposits were categorized to give an indication of the level of risk
assumed by the District at year-end. All deposits were fully insured by Federal
Depository Insurance or collateral pursuant to the Public Depository Act (Florida
Statute 280). As such, the District resolved to abide by Florida Statute 218.415(17).
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IMMOKALEE WATER & SEWER DISTRICT Page 19 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE B - CASH AND INVESTMENTS, CONTINUED
Restricted Deposits
Restricted deposits are required by the District's outstanding debt agreements as well
as grant and other agreements. Restricted deposits also include customer deposits.
Restricted deposits (carrying amounts) consist of the following at September 30:
2016 2015
Construction account 8,168$ 8,139$
Bond sinking fund reserve 1,529,549 1,494,259
Department of Environmental Protection-
Deep Well Injection Reserve 232,676 231,515
Customer deposits 1,153,359 1,077,913
Loan debt service 20,729 20,653
Special assessment collections 161,434 106,968
3,105,915$ 2,939,447$
Investments
Florida Statutes and the District's investment policy authorize investments in
certificates of deposit (CD's). Certificates of deposit whose values exceed the
amount of the federal depository insurance are collateralized pursuant to the Public
Depository Security Act of the State of Florida. The District had $1,075,700 and
$1,062,152 (bank and book balance) invested in certificates of deposit at September
30, 2016 and 2015, respectively. The CDs carried interest rates of 1.69% and
.8% at September 30, 2016. The CDs mature on December 4, 2017 and July
12, 2017, respectively.
NOTE C - ACCOUNTS RECEIVABLE
Accounts receivable consist of the following at September 30:
2016 2015
Customer receivables (water/sewer) 608,778$ 604,332$
Less allowance for doubtful accounts (83,710) (93,752)
Net receivables 525,068$ 510,580$
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IMMOKALEE WATER & SEWER DISTRICT Page 20 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE D - GRANT AND ASSESSMENT RECEIVABLES
Grant and assessment receivables consisted of the following at September 30:
2016 2015
Special Assessment 901,754 954,803
901,754$ 954,803$
The District levied a special assessment of $1,060,900 on system users benefitting
from the system improvements funded by the $4,932,000 Series 2013 Revenue
Bonds during the year ended September 30, 2014. The assessment collections are
restricted to principal reduction of the Series 2013 Revenue Bonds. The assessment
was initially levied through the Collier County Tax Collector on November 1, 2013.
The assessment is a one time assessment payable in full or over 20 years by the
affected system users. The special assessment had the following activity for the years
ended September 30:
2016 2015
Balance, October 1 954,803$ 1,007,852$
Assessment levied - -
Collections (53,049) (53,049)
901,754$ 954,803$
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IMMOKALEE WATER & SEWER DISTRICT Page 21 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE E - CAPITAL ASSET ACTIVITY
The following is a summary of changes in capital asset activity for the year ended
September 30, 2016:
Balance Balance
October 1 Adjustments/ September 30
2015 Additions Retirements Reclassifications 2016
Capital Assets Not
Being Depreciated:
Land 2,645,941$ -$ -$ -$ 2,645,941$
Construction in Progress 283,183 218,218 - (16,519) 484,882
Total Capital Assets Not
Being Depreciated 2,929,124 218,218 - (16,519) 3,130,823
Capital Assets
Being Depreciated:
Buildings & Improvements 1,509,938 - - - 1,509,938
Water and Wastewater
Plant and Systems 61,321,071 564,688 - 16,519 61,902,278
Machinery & Equipment 2,932,654 268,469 - - 3,201,123
Total Capital Assets
Being Depreciated 65,763,663 833,157 - 16,519 66,613,339
Less Accumulated
Depreciation:
Buildings & Improvements (727,957) (37,692) - - (765,649)
Plant and Systems (26,144,439) (1,406,645) - - (27,551,084)
Machinery & Equipment (2,464,731) (387,807) - - (2,852,538)
Total Accumulated Depreciation (29,337,127) (1,832,144) - - (31,169,271)
Capital Assets, Net 39,355,660$ (780,769)$ -$ -$ 38,574,891
Related debt (17,417,964)
Net investment in capital assets 21,156,927$
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IMMOKALEE WATER & SEWER DISTRICT Page 22 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE E - CAPITAL ASSET ACTIVITY, CONTINUED
The depreciation expense for the years ended September 30, 2016 and 2015 was
$1,832,144 and $1,737,470 respectively. During the years ended September 30,
2016 and 2015, the District continued construction on its system-wide
improvements. The District capitalized interest on the project in the amount of $0
and $0 for the years ended September 30, 2016 and 2015.
NOTE F - RETIREMENT PLANS
Plan Description and Provisions
Section 401(a) Plan
The District historically offered all its employees the opportunity to participate in an
individual government employer-sponsored defined contribution 414(h) Money
Purchase Pick-Up Retirement Plan and Trust (the "Plan"). Effective January 1, 2009,
the District restated its retirement plan. As such, the restated plan qualifies as a
401(a) Money Purchase defined contribution plan. The Plan is administered by a
third party administrator. The employer funds substantially all the administrative costs
of the Plan.
The Plan allows all employees to participate after three (3) months creditable
employment. Employees who elect to participate must contribute three (3%) percent
of their gross wages excluding overtime compensation up to $3,000. If the employee
desires to defer more than $3,000 they can defer those amounts into the IRC Section
457 Plan. The employer is required to contribute six (6%) percent of the respective
participating employee's gross wages excluding overtime compensation. Employer
contributions are only required for those participating employees who contribute three
(3%) of their gross wages, as defined. During the years ended September 30, 2016,
2015, and 2014, the District contributed 100% of its required contributions.
The District's gross contributions (employer portion) to the plan for the years ended
September 30, 2016, 2015 and 2014 were $131,368, $118,336, and $110,052,
respectively. Employee contributions to the plan were $61,985, $58,312 and
$53,527, respectively for the years ended September 30, 2016, 2015, and 2014,
respectively.
Benefits available are limited to the value of the respective employee's individual
account. Individuals direct the investment of their individual account. Benefits vest at
a rate of twenty (20%) percent per year of creditable service and vest in full after five
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IMMOKALEE WATER & SEWER DISTRICT Page 23 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE F - RETIREMENT PLANS, CONTINUED
Plan Description and Provisions, continued
years of creditable service. A creditable year of service is defined as a year in which
an eligible participant completes 1,000 hours of service. Employees immediately vest
in their contributions. Normal retirement shall be considered to be attainment of age
55 and completion of five (5) creditable years of service. Employees who fail to
complete five (5) years creditable service vest in their respective accounts at twenty
(20%) percent per completed year of creditable service. The Plan requires
retirement at April 1 following the date the participant reaches age 70 1/2. The Plan
provides that forfeitures of employer contributions by non-vested terminated
employees are to be used to offset future employer contributions. Therefore,
employer contributions made to employee accounts who fail to complete the
respective year revert back to the employer. The District has no liability for losses, if
any, incurred by the plan. Loans to participants are permitted from the participant's
specific account. Participants should refer to the complete plan document for
specific detail of the Plan.
Section 457 Plan
Effective November 1, 2012, the District approved a resolution to establish a
Deferred Compensation Plan to be made available to all eligible District employees
pursuant to Section 457 of the Internal Revenue Code (IRC). The Plan is
administered by a third party administrator. The employer funds substantially all
administrative costs of the plan. All contributions made to the plan are voluntary
deductions from employees' wages, with no contributions to the plan made by the
District. Employees are eligible to participate after 3 months employment and
attainment of age 18. Deferral amounts are limited per IRS Code Section
457(e)(15). For the year ended September 30, 2016 the limit was $18,000.
Employees are immediately vested in their salary deferral amounts.
NOTE G - REVENUE BONDS PAYABLE
The following is a summary of the District's revenue bonds payable for the years
ended September 30:
Amount
Balances - September 30, 2014 17,817,969$
Principal retired (488,000)
Bonds issued -
Balances - September 30, 2015 17,329,969
Principal retired (513,000)
Bonds issued -
Balances - September 30, 2016 16,816,969$
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IMMOKALEE WATER & SEWER DISTRICT Page 24 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
Revenue Bonds payable is comprised of the following at September 30:
2016 2015
$5,300,000 Series A, Water and Sewer
Revenue Bonds, issued July 1981, through
USDA Rural Development. Principal is payable
annually beginning September 1, 1983 through
September 1, 2020; interest payable annually at
the rate of 5%; collateralized by the gross
operating revenues of the system and
assessments levied on the lands benefited by the
system. 450,000$ 550,000$
$722,715 Series B, Water and Sewer Revenue
Bonds, issued July 1981, through USDA Rural
Development. Principal is payable annually
beginning September 1, 1983 through
September 1, 2020; interest payable annually at
the rate of 5%; collateralized by the gross
operating revenues of the system and
assessments levied on the lands benefited by the
system. 157,000 191,000
$635,000 Series 1985, Water and Sewer
Revenue Bonds, issued May 1987, through
USDA Rural Development. Principal is payable
annually beginning September 1, 1989 through
September 1, 2026; interest payable annually at
the rate of 5%; collateralized by the gross
operating revenues of the system and
assessments levied on the lands benefited by the
system. 264,969 286,969
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IMMOKALEE WATER & SEWER DISTRICT Page 25 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
2016 2015
$3,750,000 Series 1989, Water and Sewer
Revenue Bonds, issued October 1991, through
USDA Rural Development. Principal is payable
annually beginning September 1, 1994 through
September 1, 2031; interest payable annually at
the rate of 5%; collateralized by the gross
operating revenues of the system and assessments
levied on the lands benefited by the system. 2,307,000 2,409,000
$250,000 Series 1990, Water and Sewer
Revenue Bonds, issued October 1991, through
USDA Rural Development. Principal is payable
annually beginning September 1, 1994 through
September 1, 2031; interest payable annually at
the rate of 5%; collateralized by the gross
operating revenues of the system and assessments
levied on the lands benefited by the system. 154,000 161,000
$4,313,200 Series 1996, Water and Sewer
Revenue Bonds, issued August 1996, through
USDA Rural Development. Principal is payable
annually beginning September 1, 1998 through
September 1, 2035; interest payable annually at
the rate of 5.125%; collateralized by the gross
operating revenues of the system and assessments
levied on the lands benefited by the system. 3,109,000 3,205,000
$802,000 Series 1998, Water and Sewer
Revenue Bonds, issued October 1998, through
USDA Rural Development. Principal is payable
annually beginning September 1, 2001 through
September 1, 2038; interest payable annually at
the rate of 4.5%; collateralized by the gross
operating revenues of the system and assessments
levied on the lands benefited by the system. 613,000 629,000
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IMMOKALEE WATER & SEWER DISTRICT Page 26 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
2016 2015
$2,252,000 Series 2001, Water and Sewer
Refunding Bonds, issued December 2001,
through USDA Rural Development. Principal is
payable annually beginning September 1, 2004
through September 1, 2041; interest payable
annually at the rate of 4.5%; collateralized by the
gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 1,850,000 1,890,000
$3,366,200 Series 2008, Water and Sewer
Revenue Bonds, issued March 28, 2008 through
USDA Rural Development. Principal is payable
annually beginning September 1, 2008 through
September 1, 2047; interest payable annually at
the rate of 4.375%; collateralized by the gross
operating revenues of the system and
assessments levied on the lands benefited by the
system. 3,077,000 3,124,000
$4,932,000 Series 2013, Water and Sewer
Revenue Bonds, issued March 1, 2013 through
USDA Rural Development. Principal and
interest are payable annually beginning
September 1, 2016 through September 1, 2052;
interest payable annually at the rate of 2.5%;
collateralized by the gross operating revenues of
the system and a special assessment levied on
the lands benefited by the system. 4,835,000 4,884,000
16,816,969 17,329,969 Less: current portion
(due in one year) (538,000) (513,000)
Long-term portion 16,278,969$ 16,816,969$
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IMMOKALEE WATER & SEWER DISTRICT Page 27 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
Bond Resolutions
The bond resolutions established certain accounts and determined the order in
which certain revenues are to be deposited into those accounts. In addition, there
are various other covenants established by the official statements and District
resolutions, including such items as debt service coverage, reporting requirements,
and maintenance of facilities. Management believes that it has complied, in all
material respects, with these covenants. All required balances at September 30,
2016 and 2015, were maintained and are reflected as restricted deposits within
these financial statements.
A summary of revenue bond debt service requirements to maturity is as follows
September 30:
Year Ending
September 30 Principal Interest Total
2017 538,000$ 692,313$ 1,230,313$
2018 563,000 667,163 1,230,163
2019 589,000 640,830 1,229,830
2020 616,000 613,262 1,229,262
2021 477,000 584,415 1,061,415
2022 - 2026 2,715,969 2,573,464 5,289,433
2027 - 2031 3,249,000 1,908,040 5,157,040
2032 - 2036 3,578,000 1,150,086 4,728,086
2037 - 2041 1,831,000 631,481 2,462,481
2042 - 2046 1,466,000 323,206 1,789,206
2047 - 2051 1,008,000 94,906 1,102,906
2052 186,000 4,650 190,650
16,816,969$ 9,883,816$ 26,700,785$
Revenue bond debt interest expense was $714,385 and $737,251 for the years
ended September 30, 2016 and 2015, respectively. No revenue bond debt interest
expense was capitalized in either year.
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IMMOKALEE WATER & SEWER DISTRICT Page 28 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE H - LOANS PAYABLE - SRF
The following is a summary of the District's loans payable activity for the year
ended September 30:
DEP.SRF DEP.SRF
DW110120 DW110121 Total
Balance-September 30, 2014 370,190$ 294,830$ 665,020$
Proceeds - - -
Principal retired (17,405) (14,196) (31,601)
Balance-September 30, 2015 352,785 280,634 633,419
Principal retired (17,880) (14,544) (32,424)
Balance-September 30, 2016 334,905$ 266,090$ 600,995$
The loans payable - SRF activity for the year ended September 30 is as follows:
2016 2015
$419,681 loan payable representing 15% of a grant/loan payable to Florida
Department of Environmental Protection. The maximum amount of the loan is
$2,735,112, in which the FDEP has forgiven $2,324,845 of the note. The loan
also required the District to capitalize interest of $9,414 during the year
ended September 30, 2011. Interest accrues at 2.71%. Principal and interest is
payable in forty (40) semi-annual payments of $13,660 in May and November
beginning November 15, 2011. Final payment due May 2031. The loan is
collateralized by the gross operating revenues of the system and
assessments levied on the lands benefited by the system. 334,905$ 352,785$
$335,504 loan payable to Florida Department of Environmental Protection.
The loan requires forty (40) semi-annual payments of $10,637 in November
and May beginning November 15, 2011. The loan required the District to
capitalize interest of $7,346 during the year ended September 30, 2011. Final
payment date May 2031. Interest accrues at 2.43%. The loan is collateralized
by the gross operating revenues of the system and assessments levied on
the lands benefited by the system. 266,090 280,634
Total loans payable 600,995 633,419
Less current portion: (33,267) (32,423)
567,728$ 600,996$
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IMMOKALEE WATER & SEWER DISTRICT Page 29 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE H - LOANS PAYABLE - SRF, CONTINUED
Year Ending
September 30 Principal Interest Total
2017 33,267$ 15,328$ 48,595$
2018 34,132 14,463 48,595
2019 35,020 13,575 48,595
2020 35,931 12,664 48,595
2021 36,866 11,729 48,595
2022 - 2026 199,231 43,745 242,976
2027-2031 226,548 222,177 448,725
600,995$ 333,681$ 934,676$
Loans payable - SRF related interest expense was $16,172 and $16,994 for the
years ended September 30, 2016 and 2015, respectively. No loan interest costs
were capitalized in either year.
NOTE I - LINE OF CREDIT
On October 15, 2016, the District renewed an agreement with a financial institution
to establish an uncollateralized $1 million revolving Line of Credit (LOC) to be used
for emergency situations. The LOC is available, although the District had not
borrowed any funds from the LOC for the years ended September 30, 2016 or
2015. The LOC required interest paid quarterly and principal at maturity. Interest
accrues at Prime Rate plus .50% with a floor rate of 4.00%. The LOC is due in full
on October 15, 2018. Interest rate at September 30, 2016 was 3.75%. Upon
renewal at October 15, 2016, the floor increased to 4.0%.
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IMMOKALEE WATER & SEWER DISTRICT Page 30 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE J - ACCRUED COMPENSATED ABSENCES
Employees of the District are entitled to paid vacation based on length of service and
job classification. Accrued compensated absences had the following activity for the
year ended September 30:
Amount
Accrued compensated absences,
September 30, 2014 90,562$
Net Increase 9,995
Accrued compensated absences,
September 30, 2015 100,557
Net Increase 14,832
Accrued compensated absences,
September 30, 2016 115,389$
NOTE K - COMMITMENTS AND CONTINGENCIES
Litigation
The District, from time to time, is involved as a defendant and a plaintiff in certain
litigation and claims arising in the ordinary course of operations. As such, the District
maintains third party insurance coverages. In the opinion of legal counsel, the range
of potential recoveries or liabilities will not materially affect the financial position of the
District. The District intends to vigorously defend all claims unless first settled.
Potential losses, if any, may be recoverable through insurance coverages.
Federal Grants
Grant monies received by the District are for specific purposes and are subject to
review by the grantor agencies. Such audits may result in requests for reimbursement
due to disallowed expenditures. Based upon prior experience, the District does not
believe that such disallowances, if any, would have a material affect on the financial
position of the District.
The operations of the District are dependent upon the condition of the District's
facilities. These facilities are currently being rehabilitated and improved substantially
through the receipt of federal funding. Loss or reduction of such funding would havea material effect on the operations of the District.
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IMMOKALEE WATER & SEWER DISTRICT Page 31 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE L - NET ASSETS
Restricted net assets consist of the following at September 30:
2016 2015
Restricted assets 4,007,669$ 3,894,250$
Less: liabilities payable from restricted cash (1,785,965) (1,680,423)
2,221,704$ 2,213,827$
Unrestricted net assets consist of the following at September 30:
2016 2015
Designated for emergencies 960,000$ 860,000$
Designated for operations 3,300,690 2,673,344
Designated for vehicle replacement 259,086 276,353
Designated for capital equipment 540,234 191,103
Designated for maintenance reserve 2,143,097 1,903,042
Total Designated 7,203,107 5,903,842
Undesignated 1,276,049 1,803,970
Total unrestricted net assets 8,479,156$ 7,707,812$
NOTE M - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to
and destruction of assets; errors and omissions; injuries to employees, and natural
disasters.
Insurance programs for general/professional liability, automobile, and property are
through commercial insurance. The District retains the risk of loss, on insured claims,
up to a deductible amount (ranging from 0% to 5% of total insured value depending
on the type of loss) with the risk of loss in excess of this amount transferred to the
insurance carrier. Limits of general liability are $1,000,000 per occurrence. The
District is third party insured for employee health as well as workers' compensation.
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IMMOKALEE WATER & SEWER DISTRICT Page 32 of 44
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016 and 2015
NOTE N - SUBSEQUENT EVENTS
The District has received approval from USDA for funding of approximately
$21,000,000 to replace water lines with in the District. The Letter of Obligation is for
a $17,134,000 loan over 40 years at 2.25%; $4,063,900 grant; and the remaining
$13,000 in funding will be provided by the District. Construction is expected to begin
in fiscal year 2017, and it will last for approximately twenty four months.
DRAFT
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
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IMMOKALEE WATER & SEWER DISTRICT Page 33 of 44
SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS
Year ended September 30, 2016
Original Final
Budget Budget Actual Variance
OPERATING REVENUES
Cross connection control fee 306,258$ 305,285$ 305,285$ -$
Water service 2,746,367 2,769,676 2,769,676 -
Wastewater service 4,739,810 4,755,135 4,755,135 -
Meter service charge 594,000 599,235 599,235 -
Late fees 86,879 87,850 87,850 -
Reconnect and transfer fees 105,431 103,780 103,780 -
Miscellaneous charges, fees and other income 50,000 58,355 64,263 5,908
TOTAL OPERATING REVENUES 8,628,745 8,679,316 8,685,224 5,908
OPERATING EXPENSES
WATER PLANTS / DISTRIBUTION
Salaries and wages 641,302 577,164 577,164 -
Overtime 80,922 25,651 25,651 -
FICA 55,250 47,338 47,338 -
Unemployment taxes 2,441 93 93 -
Employer pension contribution 38,478 31,967 35,643 (3,676)
Health/life insurance 235,932 245,453 225,453 20,000
Workers' compensation 26,000 24,605 24,605 -
Travel and training 26,000 18,678 18,678 -
Telephone and fax 6,424 8,986 8,986 -
Electric 168,253 161,125 161,125 -
General liability insurance 18,586 17,911 17,911 -
Comprehensive auto insurance 9,829 8,925 8,925 -
Other insurance 95,235 81,656 81,656 -
Repairs and maintenance 106,920 179,621 179,605 16
Other contract services 25,704 31,549 28,549 3,000
Vehicle fuel 37,821 22,402 22,634 (232)
Vehicle maintenance 20,967 13,051 13,051 -
Licenses and permits 4,125 4,830 4,830 -
Chemicals 103,635 95,244 90,244 5,000
Other materials 131,741 60,674 10,675 49,999
Laboratory fees 27,143 27,045 22,370 4,675
Uniforms/clothing allowance 3,900 2,455 2,455 -
Memberships/periodicals/books 1,228 1,470 1,470 -
SUB-TOTAL WATER PLANTS/DISTRIBUTION 1,867,836 1,687,893 1,609,111 78,782
The accompanying notes are an integral part of this statement.
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IMMOKALEE WATER & SEWER DISTRICT Page 34 of 44
SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2016
Original Final
Budget Budget Actual Variance
WASTEWATER PLANT
Salaries and wages 503,639 556,759 556,759 -
Overtime 25,324 10,908 10,908 -
FICA 40,466 42,817 42,817 -
Unemployment taxes 2,284 139 139 -
Employer pension contribution 30,218 24,614 27,501 (2,887)
Health/life insurance 164,512 159,845 145,845 14,000
Workers' compensation 15,393 15,236 15,236 -
Travel and training 18,000 8,798 9,898 (1,100)
Telephone and fax 3,570 3,568 3,568 -
Electric 266,124 245,182 245,182 -
Section 8 electric 15,656 5,957 5,957 -
General liability insurance 18,586 17,911 17,911 -
Comprehensive auto insurance 4,913 4,463 4,463 -
Other insurance 100,832 77,069 77,069 -
Section 8 field maintenance 15,443 - - -
Repairs and maintenance 106,281 161,277 156,260 5,017
Section 8 repairs 13,952 15,724 15,724 -
Other contract services 28,236 65,506 65,506 -
Vehicle fuel 13,449 8,992 9,067 (75)
Vehicle maintenance 14,072 10,927 10,927 -
Licenses and permits 11,747 6,035 6,035 -
Chemicals 54,478 72,827 72,827 -
Other materials 38,929 47,531 42,531 5,000
Laboratory fees 28,727 40,895 40,895 -
Residuals management 139,700 80,003 80,003 -
Uniforms/clothing allowance 2,400 1,072 1,072 -
Memberships/periodicals/books 613 679 679 -
SUB-TOTAL WASTEWATER PLANT 1,677,544 1,684,734 1,664,779 19,955
The accompanying notes are an integral part of this statement.
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IMMOKALEE WATER & SEWER DISTRICT Page 35 of 44
SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2016
Original Final
Budget Budget Actual Variance
WASTEWATER COLLECTION
Salaries and wages 300,363 300,363 298,267 2,096
Overtime 30,361 30,361 21,042 9,319
FICA 25,300 25,300 24,301 999
Unemployment taxes 1,049 137 37 100
Employer pension contribution 18,022 18,022 17,753 269
Health/life insurance 98,643 115,002 105,002 10,000
Workers' compensation 9,624 11,344 9,672 1,672
Travel and training 12,000 12,000 9,472 2,528
Telephone and fax 2,069 2,069 2,306 (237)
Electric 38,836 40,262 39,262 1,000
General liability insurance 18,586 17,911 17,911 -
Comprehensive auto insurance 5,732 5,206 5,206 -
Other insurance 1,400 1,201 1,201 -
Repairs and maintenance 62,349 150,842 150,310 532
Other contract services 1,977 5,175 5,175 -
Vehicle fuel 15,278 14,541 9,574 4,967
Vehicle maintenance 27,504 40,849 40,849 -
Licenses and permits 8,306 5,674 5,674 -
Chemicals 1,596 - - -
Other materials 30,781 58,631 53,631 5,000
Uniforms/clothing allowance 1,800 1,420 1,420 -
Memberships/periodicals/books 405 429 429 -
SUB-TOTAL WASTEWATER COLLECTION 711,981 856,739 818,494 38,245
The accompanying notes are an integral part of this statement.
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IMMOKALEE WATER & SEWER DISTRICT Page 36 of 44
SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2016
Original Final
Budget Budget Actual Variance
CUSTOMER SERVICE / ADMIN
Salaries and wages 606,719 564,247 564,247 -
Board Member Pay 21,000 - - -
Overtime 3,572 85 85 -
FICA 46,687 43,171 40,653 2,518
Unemployment taxes 1,862 114 114 -
Employer pension contribution 36,403 29,891 33,525 (3,634)
Health/life insurance 153,040 158,057 145,057 13,000
Workers' compensation 1,282 2,041 2,041 -
Legal services 43,000 56,500 56,500 -
Other professional services 1,500 11,774 6,774 5,000
Accounting/auditing 44,000 37,350 37,350 -
Engineering services 287,780 87,696 87,696 -
Engineering services/SRF - - - -
Travel and training 34,000 29,719 29,719 -
Telephone and fax 3,961 3,572 3,572 -
Postage and freight 44,434 34,214 34,214 -
General liability insurance 3,671 3,745 3,745 -
Comprehensive auto insurance 819 744 744 -
Other insurance 33,010 36,508 36,508 -
Other contract services 36,069 53,008 53,178 (170)
Repairs and maintenance 22,162 697 697 -
Vehicle fuel 369 25 25 -
Vehicle maintenance 790 1,095 1,095 -
Office supplies 27,423 26,199 26,199 -
Miscellaneous office expense 36,417 46,361 41,876 4,485
Miscellaneous bank fees 9,337 4,009 3,474 535
Miscellaneous expense - - - -
Arrowhead Assessment Exp. 3,000 - - -
Advertising 3,628 5,116 5,116 -
Licenses and permits 1,459 175 175 -
Memberships/periodicals/books 9,078 12,308 12,308 -
SUB-TOTAL CUSTOMER SERVICE / ADMIN 1,516,472 1,248,421 1,226,687 21,734
The accompanying notes are an integral part of this statement.
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IMMOKALEE WATER & SEWER DISTRICT Page 37 of 44
SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2016
Original Final
Budget Budget Actual Variance
MAINTENANCE
Salaries and wages 356,948 176,382 176,382 -
Overtime 26,025 706 706 -
FICA 29,297 13,290 13,290 -
Unemployment taxes 799 64 64 -
Employer pension contribution 21,417 14,951 16,946 (1,995)
Health/life insurance 123,515 109,539 98,539 11,000
Workers' compensation 11,145 9,306 9,306 -
Travel and training 12,000 11,139 11,139 -
Telephone and fax 1,700 3,043 3,043 -
General liability insurance 2,526 2,226 2,226 -
Comprehensive auto insurance 5,732 6,694 6,694 -
Repairs and maintenance 9,471 18,796 18,796 -
Other contract services 2,991 4,396 4,396 -
Vehicle fuel 11,031 4,968 4,968 -
Vehicle maintenance 12,103 16,126 16,126 -
Licenses and permits 1,133 142 142 -
Other materials 15,105 37,298 32,298 5,000
Uniforms/clothing allowance 1,800 1,418 1,418 -
Memberships/periodicals/books 465 413 413 -
SUB-TOTAL MAINTENANCE 645,203 430,897 416,892 14,005
DEPRECIATION
Depreciation 1,600,000 1,832,144 1,832,144 -
SUB-TOTAL DEPRECIATION 1,600,000 1,832,144 1,832,144 -
TOTAL OPERATING EXPENSES 8,019,036 7,740,828 7,568,107 172,721
OPERATING PROFIT 609,709$ 938,488$ 1,117,117$ 178,629$
The accompanying notes are an integral part of this statement.
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IMMOKALEE WATER & SEWER DISTRICT Page 38 of 44
SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2016
Original Final
Budget Budget Actual Variance
OPERATING PROFIT,
BROUGHT FORWARD 609,709$ 938,488$ 1,117,117$ 178,629$
NON-OPERATING REVENUES (EXPENSES)
Interest income 50,000 54,869 54,869 -
Assessment cost, net 5,435 - (270) (270)
Contributed capital - grant - FDEP/EPA - - - -
Contributed capital - grant - USDA/FHA - - - -
Contributed capital - customers 30,000 44,060 44,059 (1)
Contributed capital - developers 70,000 - - -
Debt proceeds - USDA - Series 2013 - - - -
Debt proceeds -FDEP - - - -
Debt proceeds -FCB - - - -
Other non-operating revenue 42,809 41,452 32,620 (8,832)
Capital outlay (100,000) (44,060) (1,051,375) (1,007,315)
Principal retirement - bonds (566,045) (565,045) (513,000) 52,045
Principal retirement - SRF (30,800) (31,601) (32,424) (823)
Net Assets - brought forward 5,694,028 5,903,842 - (5,903,842)
Net Assets - carryforward (5,007,874) (5,627,457) - 5,627,457
Maintenance reserve - - - -
Forfeited 401A - - 2,924 2,924
Interest expense (737,262) (737,661) (730,557) 7,104
Bad debt expense (35,000) 10,042 10,042 -
Gain (Loss) on disposal of assets (25,000) 13,071 13,072 1
NET NON-OPERATING
REVENUES (EXPENSES) (609,709) (938,488) (2,170,040) (1,231,552)
NET PROFIT (LOSS) -$ -$ (1,052,923)$ (1,052,923)$
Reconciliation:
Net profit (loss) (Non-GAAP Budgetary Basis) (1,052,923)$
Debt proceeds -
Capital outlay 1,051,375
Principal retirement - bonds 513,000
Principal retirement - SRF 32,424
Increase in Net Position (GAAP Basis) 543,876
Net position - beginning of the year 31,313,911
Net position - end of the year 31,857,787$
The accompanying notes are an integral part of this statement.
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ADDITIONAL REPORTS
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Page 39 of 44
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF
BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited, 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 of America, the basic financial
statements of the business-type activities of Immokalee Water & Sewer District (the "District")
which comprise the statement of net position as of September 30, 2016, and the related
statements of revenues, expenses and changes in net position and cash flows for the year then
ended and the related notes to the financial statements and have issued our report thereon dated
January 16, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Immokalee Water
& Sewer District's internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
Immokalee Water & Sewer District's internal control. Accordingly, we do not express an opinion
on the effectiveness of the Immokalee Water & Sewer District'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
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
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Page 40 of 44
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses, as
defined previously. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Water & Sewer District's
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grants, 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 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 internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District'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 District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
January 16, 2017
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Page 41 of 44
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have examined Immokalee Water & Sewer District's compliance with Section 218.415,
Florida Statutes, regarding the investment of public funds during the year ended September 30,
2016. Management is responsible for Immokalee Water & Sewer District's compliance with
those requirements. Our responsibility is to express an opinion on Immokalee Water & Sewer
District'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 Immokalee Water & Sewer District'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 Immokalee Water & Sewer District's compliance with
specified requirements.
In our opinion, Immokalee Water & Sewer District complied, in all material respects, with the
aforementioned requirements for the year ended September 30, 2016.
This report is intended solely for the information and use of the Immokalee Water & Sewer
District and the Auditor General, State of Florida, and is not intended to be and should not be
used by anyone other than these specified parties.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
January 16, 2017
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
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Page 42 of 44
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited the accompanying basic financial statements of Immokalee Water & Sewer
District (the "District") as of and for the year ended September 30, 2016 and have issued our
report thereon dated Janaury 16, 2017.
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 of America and Chapter
10.550, Rules of the Florida Auditor General. 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.
Disclosures in that report, which is dated January 16, 2017, should be considered in conjunction
with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
· Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether
or not corrective actions have been taken to address findings and recommendations
made in the preceding annual financial audit report. There were no financially significant
prior year comments.
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Page 43 of 44
· Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management.
· 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 an
effect on the financial statements that is less than material but more than inconsequential.
In connection with our audit, we did not have any such findings.
· 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 if the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The District discloses this information in the notes to the financial statements.
· Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included
as to whether or not the local government 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 District did not
meet any of the conditions described in Section 218.503(1), Florida Statutes.
· Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the District for the fiscal year ended September
30, 2016, filed with the Florida Department of Financial Services pursuant to Section
218.32(1)(a) Florida Statutes, is in agreement with the annual financial audit report for
the fiscal year ended September 30, 2016. In connection with our audit, we determined
that these two reports were in agreement.
· Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General, we
have applied financial condition assessment procedures. It is management's responsibility
to monitor the District'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.
· Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a statement
indicating a failure, if any, of a component unit special district to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
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· Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit
to determine the entity's compliance with the provisions of Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit, we
determined that the Authority complied with Section 218.415, Florida Statutes as
reported in our Independent Accountant's Report on Compliance with Section 218.415,
Florida Statutes dated January 16, 2017, included herein.
PRIOR YEAR COMMENTS:
No financially significant comments noted.
CURRENT YEAR COMMENTS:
No financially significant comments noted.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management, the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
Janaury 16, 2017
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EXHIBIT
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