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The Egret Marsh Storm water Park is Indian River County's first Algal Turf
Scrubber (ATS) System. This innovative system removes dissolved nutrients such
as nitrogen and phosphorous from ten million gallons of Indian River Farms
Water Control District's canal water each day and these nutrients produce a
useable byproduct of harvested algae. Polluted canal water is pumped into a
headworks tank and flows by gravity onto the ATS which is the heart of the
treatment system. Clean water from the ATS continues to flow by gravity through
a series of deep polishing ponds and then into a wildlife habitat area that provides
a much needed home and refuge for large populations offish, birds, insects,
amphibians, and other animals. The clean water is then returned to the canal
system where it will eventually flow into the lagoon. Since the ATS is basically a
large algae farm, it must be harvested. The harvested algae may be composted
and used as a soil supplement or mixed with other material and fed to cattle.
Another use for the nutrient -rich algae that is currently being researched is
conversion of the algae into paper products such as toilet paper, conversion to bio -
plastics, and methane gas production. The Egret Marsh has become a valuable
nature showcase that demonstrates a successful effort to recreate a rapidly
vanishing ecosystem.
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2010
THROUGH
SEPTEMBER 30, 2011
Jeffrey K. Barton
Clerk of the Circuit Court and Comptroller
Prepared By:
Clerk of the Circuit Court Finance Department
Diane Bernardo, CPA
Finance Director
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2011
Board of County Commissioners as of September 30, 2011
Bob Solari Wesley S. Davis
Chairman Joseph E. Flescher
Gary C. Wheeler Peter D. O'Bryan
Vice -Chairman
Current Board of County Commissioners (as of November 22, 2011)
Gary C. Wheeler Wesley S. Davis
Chairman Joseph E. Flescher
Peter D. O'Bryan Bob Solari
Vice -Chairman
Elected Constitutional Officers as of September 30, 2011
Jeffrey K. Barton Carole Jean Jordan David C. Nolte
Clerk of the Circuit Court and Comptroller Tax Collector Property Appraiser
Kay Clem Leslie R. Swan
Supervisor of Elections Supervisor of Elections
(resigned December 31, 2010) (as of January 1, 2011)
Deryl Loar
Sheriff
County Management
Joseph A. Baird Alan S. Polackwich Sr.
County Administrator County Attorney
Michael Zito Jason Brown Chris Mora
Assistant County Administrator Budget Director Director of Public Works
Robert M. Keating John W. King
Director of Community Development Director of Emergency Services
Robert J. Komarinetz Erik Olson James Sexton
Director of Golf Course Director of Utilities Director of Human Resources
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2011
INTRODUCTORY SECTION
Page
Number
LETTER OF TRANSMITTAL........................................................................................................ i
ORGANIZATION CHART............................................................................................................ viii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING................................................................................................. ix
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT..........................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS.....................................................................3
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statementof Net Assets........................................................................................................17
Statement of Activities..........................................................................................................18
Fund Financial Statements:
Balance Sheet - Governmental Funds...................................................................................20
Reconciliation of Total Governmental Fund Balances to
Net Assets of Governmental Activities...........................................................................22
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds............................................................................24
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ......................26
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund.................................................................................27
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Impact Fees Fund...........................................................................28
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Secondary Roads Construction Fund............................................29
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual -Transportation Fund.......................................................................30
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Emergency Services District Fund................................................31
Statement of Net Assets - Proprietary Funds........................................................................33
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
Fiscal Year Ended September 30, 2011
Page
Number
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds..............................................................................34
Statement of Cash Flows - Proprietary Funds......................................................................36
Statement of Fiduciary Net Assets — Fiduciary Funds..........................................................40
Statement of Changes in Fiduciary Net Assets —
Other Postemployment Benefits Trust Fund...................................................................41
Notes to the Financial Statements...............................................................................................43
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress — Other Postemployment Benefits Plan...............................98
Schedule of Employer Contributions — Other Postemployment Benefits Plan ....................98
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds.............................................104
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds......................................112
Budgetary Comparison Schedules......................................................................................120
Combining Statement of Net Assets - Internal Service Funds ...........................................152
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets - Internal Service Funds..................................................153
Combining Statement of Cash Flows - Internal Service Funds ..........................................154
Combining Statement of Changes in Assets and Liabilities - Agency Fund......................158
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2011
STATISTICAL SECTION
Page
Number
SCHEDULE 1 Net Assets by Component - Last Ten Fiscal Years ..........................................160
SCHEDULE 2 Changes in Net Assets - Last Ten Fiscal Years ................................................162
SCHEDULE 3 Fund Balances, Governmental Funds - Last Ten Fiscal Years .........................166
SCHEDULE 4 Changes in Fund Balances, Governmental Funds —
Last Ten Fiscal Years..................................................................................168
SCHEDULE 5 Tax Revenues by Source, Governmental Funds —
Last Ten Fiscal Years..................................................................................170
SCHEDULE 6 Assessed Value and Actual Values of Taxable Property -
Last Ten Fiscal Years..................................................................................171
SCHEDULE 7 Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years..................................................................................172
SCHEDULE 8 Principal Property Taxpayers - Year 2011 and Year 2002 ...............................174
SCHEDULE 9 Property Tax Levies and Collections - Last Ten Fiscal Years ..........................175
SCHEDULE 10 Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ..........................176
SCHEDULE 11 Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years ..........................178
SCHEDULE 12 Computation of Legal Debt Margin..................................................................179
SCHEDULE 13 Direct and Overlapping Governmental Activities Debt....................................180
SCHEDULE 14 Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years..................................................................................182
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2011
Page
Number
SCHEDULE 15 Pledged Revenue Coverage - Recreational Revenue Refunding Bonds -
Series 2003 - Last Ten Fiscal Years ...........................................................184
SCHEDULE 16 Demographic and Economic Statistics - Last Ten Years..................................185
SCHEDULE 17 Principal Employers - Year 2011 and Nine Years Ago ....................................186
SCHEDULE 18 Building Permits — Last Ten Fiscal Years .......................................................188
SCHEDULE 19 Operating Indicators by Function/Program — Last Ten Fiscal Years ...............190
SCHEDULE 20 Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal Years ............................................194
SCHEDULE 21 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ............196
SCHEDULE 22 Department of Utility Services - Historical Rate Structure —
Last Ten Fiscal Years..................................................................................200
SCHEDULE 23 Water and Wastewater Customers - Last Ten Fiscal Years..............................201
SCHEDULE 24 Top 10 High Volume Customers of Utility Services........................................202
SCHEDULE 25 Capacity Charges - Utilities Department - Last Ten Fiscal Years....................203
SCHEDULE 26 Pledged Revenues for Recreational Revenue Refunding Bonds, Series 2003 —
Last Ten Fiscal Years..................................................................................204
SCHEDULE 27 Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 —
Last Ten Fiscal Years..................................................................................205
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2011
COMPLIANCE SECTION
Page
Number
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards.............................................................207
CountyManagement Letter......................................................................................................209
Federal and State Grants:
Report on Compliance with Requirements that Could Have a Direct and Material
Effect on Each Major Federal Program and Major State Project and on Internal
Control over Compliance in Accordance with OMB Circular A-133 and the
Department of Financial Services' State Projects Compliance Supplement ................211
Schedule of Expenditures of Federal Awards and State Projects .............................................214
Notes to Schedule of Expenditures of Federal Awards and State Projects...............................218
Schedule of Findings and Questioned Costs.............................................................................219
ImpactFee Affidavit.................................................................................................................221
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2011
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
IndependentAuditor's Report ...................................................................................................225
Special Purpose Financial Statements......................................................................................226
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards ........................................................289
ManagementLetter...................................................................................................................291
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditor's Report ...................................................................................................294
Special Purpose Financial Statements......................................................................................295
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards ........................................................305
ManagementLetter...................................................................................................................307
Independent Auditor's Report ...................................................................................................310
Special Purpose Financial Statements......................................................................................311
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards ........................................................317
ManagementLetter...................................................................................................................319
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS -CONTINUED
Fiscal Year Ended September 30, 2011
SHERIFF
Page
Number
Independent Auditor's Report ...................................................................................................322
Special Purpose Financial Statements......................................................................................323
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards .........................................................333
ManagementLetter...................................................................................................................335
SUPERVISOR OF ELECTIONS
Independent Auditor's Report...................................................................................................338
Special Purpose Financial Statements......................................................................................339
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
Accordance with Government Auditing Standards.............................................................348
ManagementLetter...................................................................................................................350
TAX COLLECTOR
IndependentAuditor's Report ...................................................................................................354
Special Purpose Financial Statements......................................................................................355
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
Accordance with Government Auditing Standards.............................................................366
ManagementLetter...................................................................................................................368
\ORIO%
JEFFREY K. BARTON
Clerk of Circuit Court and Comptroller
1801 271h Street
Vero Beach, Florida 32960-3388
Telephone (772) 226-1945R��'
March 12, 2012
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2011, is respectfully submitted. State law requires that every general-purpose
government publish a complete set of audited financial statements within six months of the close of each
fiscal year. This report was prepared by the Finance Department under the supervision of the Clerk of
the Circuit Court and Comptroller. Responsibility for both the accuracy of the presented data and the
completeness and fairness of the presentation, including all disclosures, rests with the Finance
Department and is contingent upon the internal control established for this purpose. Since the cost of
internal control should not exceed anticipated benefits, the objective of the financial statements is to
provide reasonable, rather than absolute, assurance that they are free of any material misstatements.
Section 11.45, Florida Statutes, requires an annual audit of all County agencies. The unqualified
opinion of the auditors, Harris, Cotherman, Jones, Price and Associates, Certified Public Accountants —
Chartered, of the County's financial statements for the year ended September 30, 2011 has been
included in this report. The independent auditors' report is located at the front of the financial section of
this report. The audit was also designed to meet the requirements of Government Auditing Standards,
the Florida Single Audit Act, the Federal Single Audit Act of 1984, the Single Audit Act Amendments
of 1996, and revised OMB Circular A-133.
Readers of this report are encouraged to read Management's Discussion and Analysis (MD&A), which
provides basic financial information about the County and an overview of the County's activities. The
MD&A immediately follows the independent auditors' report.
Profile of Indian River County
Indian River County, established on June 29, 1925 by an act of the Florida Legislature, is on the central
Atlantic coast of Florida, approximately 100 miles southeast of Orlando and 135 miles north of Miami.
The County is bordered by Brevard County to the north, St. Lucie County to the south, and Osceola and
Okeechobee Counties on the west. There are approximately 100 miles of waterfront land in the County,
including 23 miles of Atlantic beaches.
The City of Vero Beach is the seat of County government. The functional (seasonal plus resident)
population reaches approximately 158,000. Like the rest of the state of Florida, the County experienced
significant population growth over the last ten years. Government and the medical industry remain the
largest sectors of employment in the County. The service industry, retail trade and agriculture are also
major employers. Indian River citrus is a well-recognized name and product throughout the United
States and internationally.
Indian River County is a non -charter county established under the Constitution and the Laws of the State
of Florida. This Comprehensive Annual Financial Report (CAFR) includes the funds of the primary
government (the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the
Property Appraiser, the Sheriff, the Supervisor of Elections and the Tax Collector), and the blended
component units consisting of the Emergency Services District and the Solid Waste Disposal District.
These component units were included because generally accepted accounting principles require that
organizations for which the County is financially accountable and that financially benefit from the
relationship with the County be reported with the primary government (the County) as the reporting
entity. This CAFR does not include the Indian River County School District, the Indian River County
Mosquito Control District or the Indian River Medical Center.
Local Economy
The effects of the decline in the national economy continued to affect Indian River County in 2011.
Property tax values decreased 10% from $15.8 billion in 2010 to $14.1 billion in 2011. Construction
activity increased 6% over 2010 and is the second consecutive year of positive growth since the peak
activity in 2005 as illustrated in Statistical Schedule 19.
Indian River County's population increased by approximately 666 residents or less than 1%; however,
the unemployment rate decreased from to 15.4% in 2010 to 13.7% in 2011.
Indian River County is a major producer of citrus in the state with approximately 11.3% of total County
acreage dedicated to citrus production. Citrus production increased slightly from 9.6 million boxes in
2010 to 10.2 million in 2011.
Lona Term Financial Planning
Continuing to maintain a high quality level of service for the taxpayers has been a challenge due to the
reduced tax roll and other declining revenues. County departments, Constitutional Officers, state
agencies and nonprofit organizations have trimmed their budgets to account for these declines. In some
funds, a moderate amount of reserves are used to balance the budget which may result in long-term
implications. The reserves will need to be maintained at appropriate levels to sustain the County's
financial position. Continual decline in revenues or additional expenses may require adjustments to be
made such as staff reductions, health insurance changes, furloughs or other necessary measures.
Vacant positions have been eliminated wherever possible in order to reduce the impact on existing
employees. There have also been hiring freezes, decreases in cost of living raises, merit raises and top -
out pay for current employees as well as reductions in automobile allowance and the number of
employees receiving the allowance.
Over the last five years, there has been a 12.7% reduction in County staff. The current staffing levels
are now lower than those in FY 2001-2002, however, the population served has increased by 17.4% and
the services provided have also increased.
Listed below are some other measures that were taken to reduce the budget's financial burdens:
➢ In January 2011, the Board of County Commissioners approved the privatization of the
primary operations of the landfill and the customer convenience centers at a cost savings
of approximately $400,000 per year. Thirty four positions were eliminated mid -year due
to this privatization.
ii
➢ The Florida legislature adopted Senate Bill 2100 making significant changes to the
Florida Retirement System. Beginning July 2011, employees were required to contribute
3% of their salary toward the pension fund. Passage of this bill results in a savings of
about $4.1 million.
➢ In February 2011, the Board of County Commissioners approved separating the Housing
Authority from Indian River County effective July 1, 2011. Previously, the County
provided financial assistance to and maintained some limited control over the Housing
Authority and reported the Housing Authority as a discretely presented component unit of
the County.
➢ Due to the decline in impact fee revenue, as well as sales tax and fuel tax revenues, the
Board of County Commissioners authorized staff to create a priority list of road projects
known as the "Super 8" using the following three criteria:
■ Roadway plans @ 60% (or greater) design
■ Road construction fully funded within the initial three years of County five
year capital improvement plan
■ Right-of-way acquisition completed or substantially underway
The road projects chosen, in priority order, are as follows:
1. Oslo Road between 43rd Avenue and 27th Avenue
2. 53rd Street between 58th Avenue and Indian River Boulevard
3. 26th Street between 82nd Avenue and 74th Avenue
4. Oslo Road between 58th Avenue and 43rd Avenue
5. 26th Street between 43rd Avenue and US Highway 1
6. 66th Avenue between 4th Street and 16th Street
7. 43rd Avenue between 18th Street and 26th Street
8. 66th Avenue between State Road 60 and 41 st Street
• On January 15, 2008, the County entered into a locally funded agreement with the Florida
Department of Transportation (FDOT) to advance the 6-laning of State Road 60 from 82nd
Avenue to 66th Avenue (Segment One) at a cost of $23,833,362, funded by gas taxes and
optional one -cent sales tax. On November 18, 2008 a second agreement was established with the
FDOT to advance the widening of State Road 60 from Interstate 95 to 82nd Avenue (Segment
Two) at a cost of $14,429,754. Segment One has been repaid in full and the first payment for
Segment Two was received in July 2011 and will be repaid over a four and one half year period.
The project was completed in April 2011.
• The Utilities Department completed the Spoonbill Marsh Brine Project during FY 2011. This
$2.1 million system is designed to accomplish a means of disposing brine while simultaneously
achieving a "net environmental benefit". This benefit is a net reduction of nitrogen and
phosphorous going back into the Indian River Lagoon. This environment also provides a
flourishing habitat for plants, fish and animal life throughout the Marsh. Oysters have begun
populating the ponds and wetlands. This colonization, along with the use of a floating mat
system that utilizes marine vegetation, facilitates the uptake of the nutrients.
iii
In March 1989, Indian River County voters passed the optional one -cent sales tax which was
effective for a fifteen year period. In November 2002, a voter referendum approved extending
the optional one -cent sales tax another 15 years until December 31, 2019. Many capital projects
have been completed with this funding that otherwise would have been funded by ad valorem
dollars. In 2011, approximately $12.9 million was received and will be used towards funding
numerous capital projects including the following construction projects:
➢ South County Park — Phase III Improvements - The expansion of this park is necessary
to provide recreation facilities and programs to the growing population in the southern
part of the County. A multi-purpose facility will be constructed at a cost of $5.5 million
with impact fees providing a portion of the funding. Ad valorem tax proceeds and user
fees will fund increased operating costs. The impact to ad valorem taxpayers could be
reduced through the use of possible public-private partnerships to operate this facility.
➢ 53rd Street Widening — Due to growth in the northern portion of the County, 53rd Street is
reaching capacity. This project will widen the road from two to four lanes from 58th
Avenue to Indian River Boulevard at a cost of approximately $5.1 million. Additional
funding will be from impact fees.
➢ 6e Avenue Widening — This roadway is scheduled for widening from S.R. 60 in Vero
Beach to the Sebastian City limits. Currently, this is one of the few main arterials
connecting the north and south county areas and traffic has increased substantially on this
road. Estimated construction costs are over $16 million. Additional funding will be from
traffic impact fees, gas taxes and grants.
➢ Oslo Road from 43rd Avenue to 58th Avenue — This phase of Oslo Road widening will
increase the road from two to four lanes at a cost of approximately $5.5 million.
Additional funding will be from traffic impact fees and gas taxes.
➢ 800 Mhz Radio Expansion — Construction of a $2.2 million communications tower will
be completed in fiscal year 2011-2012. This tower will help eliminate deficiencies in
"in -building coverage" for public safety agencies that have resulted since the significant
growth in the south county area. The addition of the tower will increase maintenance
costs slightly and will be funded with general fund revenues.
➢ Vero Beach Sports Village Quadrangle Softball Fields — The project began in FY 2011
and includes construction of four softball fields with sports lighting, dugouts, fencing,
sod and irrigation, bleachers, picnic pavilions, concession stand/press box/bathroom
building, drainage improvements, concession equipment, batting cages, common area
lighting, water fountains and parking area at a cost of approximately $2.5 million.
Relevant Financial Policies
In accordance with Section 218.415, Florida Statutes, the County adopted an investment policy, which
guides the investment of County surplus funds. This policy establishes investment objectives, maturity
and liquidity requirements, portfolio composition, risk and diversification requirements, and authorized
investments. The primary objectives of investment activities are to preserve capital and maintain
sufficient liquidity to meet anticipated cash flow needs.
iv
The secondary objective is to obtain competitive returns on the investment of County surplus funds.
During FY 2011, County investments had yields ranging from 0.10% to 3.15%. The overall annual
yield of the portfolio as of September 30, 2011 was 0.60%.
On September 23, 2008, the County established the OPEB (Other Post -Employment Benefits) Trust. An
OPEB investment policy was approved by the Board of County Commissioners on February 3, 2009 and
revised on May 12, 2009. The objective was to establish an advisory committee and to provide short-
term and long-term investment guidelines. This policy also outlines the same criteria as noted in the
County's investment policy, as well as including performance measures. The net cash contribution to
the OPEB Trust for the fiscal year was $1.5 million. In addition, interest, dividend and mark -to -market
adjustments resulted in a loss of $84,217. Yields ranged from -21.23% to 25.74% throughout the year.
Maior Initiatives
In response to the critical erosion of several areas of County beaches, the Board of County
Commissioners approved the Comprehensive Beach Preservation Plan (BPP) in 1999. The BPP
provides for renourishment of these areas and is periodically updated to identify changing beach
conditions. On February 3, 2009, the Board of County Commissioners voted to approve the 2008 Beach
Preservation Plan which presents an overall strategy to protect and nourish the current status of critically
eroded beaches within Indian River County. The plan also presents probable costs and prioritizes means
for funding the implementation of the BPP. Since the implementation of the BPP, approximately 5
miles of beach have been renourished. A large scale beach nourishment of Sector 3 is currently
underway. This project consists of placing approximately 586,000 cubic yards of dump truck hauled
upland beach sand onto approximately 6.6 miles of County beaches. Total costs for design, construction
and monitoring are estimated at approximately $15 million, of which, $3.9 million was spent in FY
2011. Funding will be from the Beach Preservation Fund, a portion of local option tourist tax revenue,
and the one -cent sales tax. State and federal grants as well as an inter -local agreement with the
Sebastian Inlet Taxing District will provide additional funding for this project.
Indian River County is pleased to announce the following public construction/improvement projects:
1. Phase one installation of the new GoLine bus shelters is complete. These shelters have been a
longstanding priority of the Indian River County MPO and our community transportation
coordinator, the Senior Resource Association. A Department of Transportation grant funded the
project. The shelter design can withstand 140+ mile per hour winds, is free of advertising and
easy to maintain. The phase one locations include the following sites:
■ Park 24 — Indian River Boulevard
■ Indian River Medical Center
■ 6th Avenue and 8th Street
■ 27th Street — 777 Medical Building
■ Fellsmere Medical Center — County Road 512
Phase two of the project will begin in FY 2012 with the following anticipated shelter sites:
■ Main Street and Powerline Road — Sebastian
■ Oslo Road — Treasure Coast Health & Fire Station #4
■ Indian River Charter High School — College Lane
■ 49th Street — Gifford Youth Activity Center
■ Willow Street Sunrise Villas — Fellsmere
■ Driedon Avenue — Sebastian
u
2. A new Transit Administration/Maintenance Facility is currently being constructed for the
County's public transportation coordinator, the Senior Resource Association. The 5,000 square
foot facility will be adjacent to the Supervisor of Elections Office on 43rd Avenue on County -
owned property. It will be the first "Florida Green Building Certification" building in the
County. The facility is designed to withstand hurricane force winds which is critical due to the
role of public transit during emergencies. It will have secured bus parking that complies with
Homeland Security guidelines. The project is federally funded by a $2 million pass-through
grant.
3. The South County Regional Park multi-purpose athletic field expansion project is necessary to
accommodate youth football and lacrosse programs and tournaments. The project consists of
improving current green space to construct three multi-purpose athletic fields surrounded by a
walking trail at a cost of approximately $1.5 million. Funding for design and construction will
be from Parks and Recreation impact fees. The general fund will initially fund operational costs,
however, once completed, a public private partnership may be more cost effective.
4. The Indian River County Shooting Range will undergo a $640,000 expansion that includes the
construction of a Sporting Clays Shotgun Course with 15 different shooting stations and a 12'
wide cart path along the course for access. Other improvements are three new combination skeet
and trap ranges with a new parking area. Also included would be lighting which would enable
the Shooting Range to expand its hours of operation. Increased operations costs will be funded
with increased revenues.
5. The Utilities Department is constructing the North Regional Reuse Storage and Repump Facility
which is designed to transfer reuse water from the mainland to the barrier island. Completion of
the reuse main is scheduled for 2011-2012 with a cost of approximately $2 million.
6. During FY 2011, the Utilities Department implemented a new utility billing software system
which allows customers to view statements, account history, request or change service and pay
their bills online. For those customers without access to a computer, a voice recognition system
was also implemented for phone payments. This software also increased efficiency by reducing
the bill processing cycle time from three days to one. With these more efficient business
processes in place, the timeliness and effectiveness of customer service is also more efficient.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Indian River County for its
comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2010. This was
the 28th consecutive year that the County has received this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
vi
In addition, Indian River County also received the GFOA's Distinguished Budrt Presentation Award
for its annual budget document for the 2010-2011 fiscal year. This was the 20 consecutive year that
the County has received this prestigious award. In order to qualify for the Distinguished Budget
Presentation Award, the County's budget document had to be judged proficient as a policy document,
financial plan, operations guide, and communications device.
I would like to thank the entire staff of the Finance Department for their invaluable assistance in the
preparation of this report. I would also like to thank the Board of County Commissioners and their staff,
and the other Constitutional Officers for their personal interest and support in planning and conducting
the financial operations of the County in a responsible and progressive manner.
Respectfully submitted,
�ni�.Jl.��..JJIL��.�
�
Jeffrey K. Barton
Clerk of the Circuit Court and Comptroller
vii
Indian River County BCC Departmental Organization
Revdew of
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County AdmiowWKor/
General Services
Sheriff S rvisor of Board of Pro
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Elections County I Appmum
Commisaiouers
Public
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Golf Course Enginceling
Recreation
Parks
Division
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Servieea
Shooting
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Libraries
Mailroom
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Purchasing
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Indian River County
Florida
For its Comprehensive Annual
Financial Deport
for the Fiscal Year Ended
September 30, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
E0 .
THE �.
_ UL IMRO STATES y
ee AND
wan q
d CtiRPORATittk � President
rx�tis4*,Of,
Executive Director
ix
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Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants, Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772-234.8484
Fax 772.234.8488
Independent Auditors' Report
The Honorable Board of County Commissioners and Constitutional Officers
Indian River County, Florida
We have audited the accompanying financial statements of governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of Indian River
County, Florida (the "County") as of and for the year ended September 30, 2011, which
collectively comprise the County's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the County's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of Indian River County, Florida as of
September 30, 2011, and the respective changes in financial position and cash flows, where
applicable, thereof and the respective budgetary comparison for the General Fund and the Major
Special Revenue Funds for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March
9, 2012 on our consideration of the County's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing and not
to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the results of our
audit.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
1
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners and Constitutional Officers
Indian River County, Florida
Page two
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquires 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 information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements as a whole. The introductory
section, combining and individual non -major fund financial statements and schedules, non -major
budgetary comparison information, the statistical section, and the schedule of federal awards and
state projects, listed in the table of contents, are presented for purposes of additional analysis and
are not a required part of the financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly
stated, in all material respects, in relation to the financial statements as a whole. The
introductory section and statistical section have 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 them.
�af�(,l,Q� , � �f �.��'/H?vx�� � ll�✓2.ci� °� ��;ade�itt�
Vero Beach, Florida
March 9, 2012
2
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
We offer readers of the County's financial statements this narrative overview and analysis of the
financial activities of the County for the fiscal year ended September 30, 2011. We encourage readers to
consider the information presented here, in conjunction with additional information that we have
furnished in our letter of transmittal, which can be found on pages i -vii of this report. All amounts,
unless otherwise indicated, are expressed in millions of dollars.
FINANCIAL HIGHLIGHTS
• The County's overall financial position improved over 2010.
• The assets of the County exceeded its liabilities by $1,005.8 million (net assets). Of this amount,
$145.9 million (unrestricted net assets) may be used to meet the government's ongoing
obligations to citizens and creditors.
• The government's total net assets increased by $1.0 million. Governmental activities accounted
for $3.6 million of this increase, which was offset by a $2.6 million decrease in business -type
activities net assets.
• Governmental activities expenses reflected a 1.3% reduction ($148.9 million in 2010 to $147.0
million in 2011) and business -type activities expenses reflected a 2.2% reduction ($49.4 million
in 2010 to $48.3 million in 2011). The reductions were largely due to staff reductions and lower
fringe benefit costs.
• Unassigned fund balance for the general fund was $33.7 million, or a 1.6% increase from the
prior year general fund unassigned balance. The key factor for the increase in the unassigned
amount was a $600,000 reduction in the fund balance amount committed to budget stabilization
and disaster relief.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements are composed of three elements: 1) government -
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of the
County's finances, in a manner similar to a private -sector business.
The Statement of Net Assets presents information on all of the County's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the County is improving or deteriorating.
3
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
The Statement of Activities presents information showing how the government's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned, but unused, vacation leave).
Both of the government -wide financial statements distinguish functions of the County that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the County include general
government, public safety, physical environment, transportation, economic environment, human
services, culture and recreation, and court related functions. The major business -type activities include a
water and sewer utility, a solid waste disposal district, a golf course, and a building department.
The government -wide financial statements include not only the Board of County Commissioners, but
also the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections
and Tax Collector. The government -wide financial statements can be found on pages 17-19 of this
report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The County, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of
the funds of the County can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term financial
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of
Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The County maintains 36 individual governmental funds. Information is presented separately in the
governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures,
and Changes in Fund Balances for the general fund, four special revenue funds, and one capital project
fund. All are considered to be major funds. Data from the other 30 governmental funds are combined
into a single, aggregated presentation.
al
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements located behind the notes to the financial statements. The combining statements for
the nonmajor governmental funds can be found on pages 99-149 of this report.
The County adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget. The basic
governmental fund financial statements can be found on pages 20-31 of this report.
Proprietary funds. The County maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The County uses enterprise funds to account for its water and sewer utility, solid waste
disposal district, golf course, and building department. Internal service funds are an accounting device
used to accumulate and allocate costs internally among the County's various functions. The County uses
internal service funds to account for its fleet management, self insurance, and geographic information
systems. Because these services predominantly benefit governmental rather than business -type
functions, they have been included within governmental activities in the government -wide financial
statements.
Proprietary fund financial statements provide the same type of information as the government -wide
financial statements, only in more detail. The proprietary fund financial statements provide separate
information for the water and sewer utility, solid waste disposal district, golf course, and building
department, which are considered to be major funds of the County. Conversely, internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is provided in the form of combining statements
behind the notes to the financial statements on pages 151-155 of this report. The basic proprietary fund
financial statements can be found on pages 33-39 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. The Indian River County OPEB Trust (IRCOT) holds the assets of the County's
other postemployment benefits. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the County's own programs.
The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary
fund financial statement can be found on pages 40-41 of this report.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government -wide and fund financial statements. The notes to the financial statements can be found
on pages 43-97 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also contains required
supplementary information concerning Indian River County's progress in funding its obligations to
provide other postemployment benefits to its employees. Required supplementary information can be
found on page 98 of this report.
5
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the County, assets exceeded liabilities by $1,005.8 million at the close of the
fiscal year. By far, the largest portion of the County's net assets (71%) reflects its investment in capital
assets (e.g., land, buildings, infrastructure, intangibles, machinery, and equipment), less any related debt
used to acquire those assets that is still outstanding. The County uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the
County's investment in its capital assets is reported as net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Current and other assets
Capital assets
Total assets
Indian River County Net Assets (In Millions)
Governmental Business -type
Activities Activities Total
2011 2010 2011 2010 2011 2010
$ 242.3
5447
� VJHM
$ 251.8 $ 107.0 $ 105.2 $ 349.3 $ 357.0
517 0 9671 ?.76 1 R1 1 R R11 1
788.8 374.1 381.3 1,161.1 1,170.1
Current liabilities
23.6
24.7
12.0
12.7
35.6
37.4
Other liabilities
60.8
65.1
58.9
62.8
119.7
127.9
Total liabilities
84.4
89.8
70.9
75.5
155.3
165.3
Net assets:
Invested in capital assets,
net of related debt
492.3
480.2
217.9
223.4
710.2
703.6
Restricted
125.4
133.0
24.3
27.8
149.7
160.8
Unrestricted
84.9
85.8
61.0
54.6
145.9
140.4
Total net assets $
702.6
$ 699.00
$ 303.2
$ 305.8
$ 1,005.8
$ 1,004.8
A portion of the County's net assets (15%) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of the unrestricted net assets ($145.9 million) may be
used to meet the government's ongoing obligations to citizens and creditors.
Overall, the County's net assets increased less than 1%. In governmental activities, the decrease in
restricted net assets and increase in net assets invested in capital assets, net of related debt, were a net
result of right of way purchases and construction of roads and beach restoration projects from restricted
funds. In business -type activities, the increase in unrestricted net assets and decrease in net assets
invested in capital assets, net of related debt, was a net result of decreasing book value of capital assets
and the decreasing amount of debt outstanding.
Con
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Indian River County Changes in Net Assets (In Millions)
Governmental Business -type
Activities Activities
Revenues:
Program revenues:
Charges for services
Operating grants/contributions
Capital grants/contributions
General revenues:
Property taxes
Sales taxes
Franchise fees
State shared revenues
Other
Total revenues
Expenses:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Interest and fiscal charges
Water and sewer
Solid waste
Golf course
Building
Total expenses
Increase (decrease) in net assets before transfers
and special item
Special item
Transfers
Increase (decrease) in net assets
Net assets - October 1, 2010
Adjustment - pollution remediation
Net assets - September 30, 2011
Total
2011
2010
2011
2010
2011
2010
67.4
68.2
$ 16.2 $
14.9
$ 41.8
$ 41.5
$ 58.0 $
56.4
7.9
15.8
-
-
7.9
15.8
1.9
7.0
2.0
1.7
3.9
8.7
75.5
84.6
-
-
75.5
84.6
19.3
19.0
-
-
19.3
19.0
8.7
9.3
-
-
8.7
9.3
17.3
17.5
-
-
17.3
17.5
4.4
4.1
1.3
1.3
5.7
5.4
21.3
23.5
-
-
21.3
23.5
67.4
68.2
-
-
67.4
68.2
1.3
1.4
-
-
1.3
1.4
22.3
20.9
-
-
22.3
20.9
2.1
2.5
-
-
2.1
2.5
7.8
7.4
-
-
7.8
7.4
16.5
16.0
-
-
16.5
16.0
5.8
6.3
-
-
5.8
6.3
2.5
2.7
-
-
2.5
2.7
-
-
33.8
34.1
33.8
34.1
-
-
10.4
10.7
10.4
10.7
-
-
2.5
2.7
2.5
2.7
-
-
1.6
1.9
1.6
1.9
4.2
23.3
(3.2)
(4.9)
1.0 18.4
-
-
-
(0.7)
- (0.7)
(0.6)
-
0.6
-
- -
3.6
23.3
(2.6)
(5.6)
1.0 17.7
699.0
675.7
305.8
311.4
1,004.8 987.1
-
-
(0.03)
-
0.03 -
$ 702.6 $
699.0
$ 303.2 $
305.8
$ 1,005.8 $ 1,004.8
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Governmental Activities
Governmental activities revenues exceeded expenses by $3.6 million. Key elements of this increase are
as follows:
• Overall program revenues decreased $11.7 million.
1) Charges for services increased by $1.4 million or 9%, due to increased public safety charges
of $0.8 million and increased transportation charges of $0.6 million.
2) Operating grants in 2011 were $7.8 million lower, a decrease of 50% from the 2010
operating grant revenues due to the completion of various projects. Public safety operating
grants decreased by $0.6 million, transportation grants decreased by $3.5 million, economic
environment decreased by $3.4 million, and the remaining grants decreased by $0.3 million.
3) Capital grants were $5.1 million lower in 2011 than in 2010, an overall decrease of 72%.
This was largely due to decreased physical environment capital grants ($1.2 million lower)
and decreased culture/recreation capital grants ($3.9 million lower) for completed beach
restoration and storm -water projects.
• The governmental activities expenses were $1.9 million lower in 2011 than in 2010. The
decrease is a reflection of budget cuts and the completion of projects. General government
expenses decreased by $2.2 million, public safety expenses decreased by $0.8 million, economic
environment decreased by $0.4 million, court related decreased by $0.5 million, interest and
fiscal charges decreased by $0.2 million, and the remaining expenses increased by $2.2 million.
Business -type Activities
Business -type activities net assets decreased by $2.6 million. Key elements of this decrease are as
follows:
• Interest earnings decreased by $0.5 million or 38% from the preceding year due to lower interest
rates.
• In 2011, transfers in the amount of $0.6 million represented impact fees transferred from the
Impact Fees Fund to the Solid Waste Disposal District Fund for the lateral expansion of the
landfill.
• Overall expenses were $1.0 million or 2% lower in 2011 than in 2010, the reflection of budget
cuts and reduced required retirement contributions, which included: 1) golf course had $0.2
million or 7% lower expenses in 2011 than in 2010, 2) building department had $0.2 million or
13% lower expenses in 2011 than in 2010, 3) water and sewer utilities expenses were $0.3
million or 1% lower in 2011 than in 2010 and 4) solid waste expenses were $0.3 million or 3%
lower in 2011 than in 2010.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements.
N.
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Governmental funds
Unassigned fund balance may serve as a useful measure of the County's net resources available for
spending at the end of the fiscal year. Approximately 17% of this total amount ($33 million) constitutes
unassigned fund balance, which is available for spending at the County's discretion.
The remainder of fund balance is presented in classifications that comprise a hierarchy based primarily
on the extent to which the County is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The County had fund balance in 1) a nonspendable category for
inventories, prepaid items, and advances to other funds ($1.2 million), 2) a restricted category for
resources that are either restricted externally by creditors, grantors, contributors, or laws or regulations
of other governments or imposed by law through constitutional provisions or enabling legislation
($125.1 million), 3) a committed category for constraints imposed by formal action of the Board of
County Commissioners ($25.7 million), and 4) an assigned category for constraints by the County's
intent to use for specific purposes ($11.7 million).
The two largest restricted amounts are in the Impact Fees Fund with a $32.5 million restricted fund
balance and the Optional Sales Tax Fund with a $44.3 million restricted fund balance. Fund balances of
the Impact Fees, Secondary Roads Construction, and fifty-three percent of the Optional Sales Tax Funds
are slated for major road expansions throughout the County.
The County's governmental funds reported a combined fund balance of $197.0 million, which is a
decrease of $5.0 million over the prior year of $202.0 million. Contributing factors to the $5.0 million
decrease in fund balance are:
• Fund balance in the General Fund increased by $0.3 million. This small increase was a reflection
of an 11 % reduction in property tax revenue; consequently, budgets were similarly decreased,
including transfers to other funds.
• In the Impact Fees Fund, expenditures exceeded revenues by $8.4 million. Contributing factors
were a decrease in interest earnings of $0.3 million due to market conditions and increased
spending due to major road construction and right-of-way purchases. Transportation
expenditures increased by $2.1 million, from $6.4 million in 2010 to $8.5 million in 2011.
Culture/recreation expenditures decreased by $1.1 million, from $1.2 million to 2010 to $0.1
million in 2011, due to the completion of the Brackett library collection.
• Fund balance in the Secondary Roads Construction Fund decreased by $1.0 million due to the
completion of road projects.
• Fund balance in the Emergency Services District Fund decreased by $1.4 million, largely the
result of fire truck and capital equipment purchases.
• The Optional Sales Tax Fund increased by $9.5 million. Capital project expenditures decreased
by $1.7 million due to the completion of the Egret Marsh stormwater project, the Parks
Maintenance Complex, and several road and bridge construction projects, as well as two road
expansion projects that started late in the fiscal year.
I
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Proprietary funds
Unrestricted net assets at the end of the year amounted to $18.8 million in the Solid Waste Disposal
District Fund, ($0.3) million in the Golf Course Fund, $3.9 million in the County Building Fund, and
$38.6 million in the County Utilities Fund.
Other factors concerning the finances of these funds have already been addressed in the discussion of the
County's business -type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was an $11.5 million increase in appropriations between the original and final
amended budget. The main components of the increase are as follows:
$8,000,000 supplemental appropriation for incentive payments to Piper Aircraft carried over
from prior years.
$2,882,000 grants appropriations and prior year rollovers for the Senior Resource Association to
provide County -wide public transportation.
$144,874 payment of the State Criminal Alien Assistance Program (SCAAP) to the Sheriff's
Department.
Actual revenues exceeded final budget by $2.4 million for the following reasons:
Actual receipts of taxes exceeded budget by $977,838.
Grants received mid -year that are not budgeted until awarded.
Insurance reimbursement of $493,217.
Actual expenditures were lower than anticipated for the following reasons:
Retirement savings of $636,410 for last quarter of FY 2011 due to mid -year legislative change.
Positions budgeted but not filled due to hiring freeze.
Piper incentive of $8.0 million was not paid.
The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual is shown on page 27.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The County's investment in capital assets for its governmental and business -type activities as of
September 30, 2011, amounts to $811.9 million (net of accumulated depreciation). This investment in
capital assets includes land, right-of-way, buildings and improvements, intangibles, equipment,
infrastructure and construction in progress. The overall decrease in the County's investment in capital
assets for the current fiscal year was less than 1%.
10
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Governmental activities had the following major increases during the fiscal year:
• An increase in infrastructure primarily due to the capitalization of the Egret Marsh Regional
Stormwater Facility ($5.9 million), the 16th Street expansion project from 66th to 82"d Avenues
($3.1 million) and the 5th Street Southwest Bridge over the 43rd Avenue Canal Project ($1.9
million).
• An increase in equipment primarily due to the purchase of two new ambulances and one fire
truck ($0.8 million).
• An increase in right-of-way primarily due to $3.8 million for right-of-way on 66th Avenue.
Business -type activities had the following major increases and decreases during the fiscal year:
• An increase in buildings and improvements was due to the capitalization of the Spoonbill Brine
Marsh improvements ($3.1 million).
• An increase in land due to leasehold improvements done at the Spoonbill Brine Marsh ($1.2
million).
• A decrease in equipment primarily due to the sale of $4.9 million in equipment from the landfill
upon privatization in January 2011.
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Additional information on the County's capital assets can be found in Note 6 on pages 66-68 of this
report.
11
Governmental
Business -type
Activities
Activities
Total
2011 2010
2011 2010
2011
2010
Land $
138.4 $ 138.4 $
20.5 $ 19.3 $
158.9 $
157.7
Right-of-way
53.7 48.9
- -
53.7
48.9
Buildings and improvements
148.1 152.7
232.5 242.9
380.6
395.6
Equipment
26.2 25.5
1.9 3.3
28.1
28.8
Intangibles
1.3 2.4
1.9 1.3
3.2
3.7
Infrastructure
133.0 125.4
- -
133.0
125.4
Construction in progress
44.0 43.7
10.3 9.3
54.3
53.0
Total $
544.7 $ 537.0 $
267.1 $ 276.1 $
811.8 $
813.1
Additional information on the County's capital assets can be found in Note 6 on pages 66-68 of this
report.
11
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
Debt Administration - Long-term debt
At the end of the current fiscal year, the County had total bonded debt outstanding of $104.9 million. Of
this amount, $40.7 million is debt backed by the full faith and credit of the government. The revenue
bonds represent bonds secured solely by specified revenue sources.
Indian River County's Outstanding Debt
General Obligation and Revenue Bonds
(In Millions)
General Obligation Debt:
General Obligation, Series 2001
Limited General Oblig., Series 2006
Revenue Bonds:
Spring Training Facility, Series 2001
Recreational Revenue Ref., Series 2003
Water and Sewer Ref. Rev., Series 1993A
Water and Sewer Ref. Rev., Series 2005
Water and Sewer Ref. Rev., Series 2009
Total
Governmental
Business -type
Activities
Activities
Total
2011 2010
2011 2010
2011
2010
$ 4.4$ 5.2 $
_$ - $
4.4$
5.2
36.3 39.3
- -
36.3
39.3
11.7 12.3
- -
11.7
12.3
- -
2.6 3.1
2.6
3.1
- -
- 1.6
-
1.6
- -
21.2 22.7
21.2
22.7
- -
28.7 28.8
28.7
28.8
$ 52.4$ 56.8 $
52.5$ 56.2 $
104.9$
113.0
The County received an increase in all of their bond ratings with the recalibration of the bond rating
system. The County's General Obligation underlying rating from Standard & Poor's is "AAA" and
"AA" on the Revenue Bonds. Standard & Poor's rating is required on all issues. A second rating from
Fitch or Moody's is also recommended.
Additional information on the County's long-term debt can be found in Note 13 on pages 73-83 of this
report.
12
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2011
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
In order to address an expected decrease in property values and other County revenues, Board of County
Commissioners' Departments, Constitutional Officers and outside agencies were asked to trim their
budgets by 5% from the previous year. Many cost saving measures have been taken to adjust for
declining revenues. For example, mid -year privatization of SWDD's convenience center and related
operations resulted in the elimination of 34 full-time positions and an annual savings of $366,834.
Additional decreases of 9 full-time positions have been proposed for next fiscal year, with the
Constitutional Officers' budgets showing a decrease of 47 full-time positions. The largest cost reduction
for FY 11/12 is due to lower retirement costs. Senate Bill 2100 requires employees to contribute 3% of
their salary toward the pension fund. Passage of this bill results in a savings of about $4.1 million for
the County. The tax roll in the General Fund decreased by 6.4% due to continued falling real estate
values. The total proposed budget is a decrease of $60,359,981 or 18.9%.
Indian River County, like the nation overall, has been experiencing a continuation of the economic
slowdown this year. New construction activity has remained slow. Some revenues have leveled off and
are even showing signs of a slight increase. Therefore, the revenue projections for next year are mixed.
For example, Half -Cent Sales Tax is increasing $347,766 or 5%, while interest earnings are expected to
drop $1,732,155 or 56.5%. State Shared Revenues are expected to increase $134,829 or 4%.
Due to various revenue decreases in SWDD, both the assessment rates for commercial and residential
rates will have a slight increase. Residential rates will increase 5% and commercial rates 4.6%. It
should be noted that these rate increases follow years of continuing decreases. The proposed rates are
still substantially lower than the 1995/1996 rates.
Street lighting and M.S.B.U. Districts along with all other rates and other fees remain unchanged from
FY 2010/2011.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the County's finances for all those
with an interest in the government's finances. Questions concerning any of the information provided in
this report or requests for additional financial information should be addressed to:
Clerk of the Circuit Court and Comptroller
Attention: Finance Department
180127 th Street
Vero Beach, FL 32960
13
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14
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BASIC FINANCIAL STATEMENTS
15
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16
LIABILITIES
Current liabilities (payable from current assets)
Accounts payable
Indian River County, Florida
1,561,323
8,197,209
Retainage payable
Statement of Net Assets
13,769
13,769
Claims payable
September 30, 2011
-
2,395,278
Due to other governments
441,087
Primary Government
3,287,672
Other deposits held in escrow
Governmental
Business -type
421,025
Unearned revenues
Activities
Activities
Total
ASSETS
5,916,426
667,833
6,584,259
Current assets:
136,373
17,720
154,093
Cash and cash equivalents
$ 201,601,168
$ 54,981,094 $
256,582,262
Investments
675,338
-
675,338
Accounts receivable - net
2,323,431
2,879,477
5,202,908
Internal balances
708,505
(708,505)
-
Due from other governments
19,105,936
10,800
19,116,736
Interest receivable
284,265
555,527
839,792
Inventories
252,583
930,721
1,183,304
Other assets held for resale
1,106,716
-
1,106,716
Prepaid expenses
1,418,480
181,164
1,599,644
Current restricted assets:
2,432,827
47,280
2,480,107
Cash and cash equivalents
14,220,716
40,298,882
54,519,598
Total current assets
241,697,138
99,129,160
340,826,298
Non-current assets:
47,988,939
48,796,846
96,785,785
Unamortized bond issuance costs
-
526,953
526,953
Deferred amounts on refundings
-
3,163,156
3,163,156
Net other postemployment benefits asset
189,584
-
189,584
Capital assets - non -depreciable
240,284,729
32,258,949
272,543,678
Capital assets - depreciable
517,422,439
428,048,045
945,470,484
Capital assets - accumulated depreciation
(212,977,928)
(193,171,562)
(406,149,490)
Non-current restricted assets:
15,879,292
15,879,292
Special assessments receivable
367,111
1,256,636
1,623,747
Impact fees receivable
-
798,541
798,541
Liens receivable
44,563,790
2,133,445
2,133,445
Total non-current assets
545,285,935
275,014,163
820,300,098
Total assets
786,983,073
374,143,323
1,161,126,396
LIABILITIES
Current liabilities (payable from current assets)
Accounts payable
6,635,886
1,561,323
8,197,209
Retainage payable
-
13,769
13,769
Claims payable
2,395,278
-
2,395,278
Due to other governments
441,087
2,846,585
3,287,672
Other deposits held in escrow
420,025
1,000
421,025
Unearned revenues
1,448,021
28,274
1,476,295
Accrued compensated absences
5,916,426
667,833
6,584,259
Pollution remediation costs payable
136,373
17,720
154,093
Current liabilities (payable from current restricted assets):
Accounts payable
-
287,331
287,331
Retainage payable
1,331,809
136,260
1,468,069
Accrued interest payable
448,907
191,367
640,274
Customer deposits
-
2,604,928
2,604,928
Bonds payable
4,440,000
3,625,000
8,065,000
Total current liabilities
23,613,812
11,981,390
35,595,202
Non-current liabilities:
Accrued compensated absences
4,852,059
153,245
5,005,304
Pollution remediation costs payable
2,432,827
47,280
2,480,107
Claims payable
5,481,722
-
5,481,722
Closure and maintenance costs payable
-
10,016,236
10,016,236
Bonds payable, net of premium and discount
47,988,939
48,796,846
96,785,785
Total non-current liabilities
60,755,547
59,013,607
119,769,154
Total liabilities
84,369,359
70,994,997
155,364,356
NET ASSETS
Invested in capital assets, net ofrelated debt
492,300,301
217,876,742
710,177,043
Restricted for:
Transportation/road projects
33,820,170
-
33,820,170
Public safety
15,879,292
15,879,292
Court related costs
3,604,959
3,604,959
Housing assistance
3,022,313
3,022,313
Capital projects
44,563,790
23,931,768
68,495,558
Beach renourishment
7,675,801
-
7,675,801
Culture/recreation
9,188,235
-
9,188,235
Debt service
2,632,336
298,333
2,930,669
Environmental conservation/preservation
1,352,034
-
1,352,034
Special assessment projects
1,660,771
1,660,771
Other purposes
2,052,815
-
2,052,815
Unrestricted
84,860,897
61,041,483
145,902,380
Total net assets
$ 702,613,714 $
303,148,326
$ 1,005,762,040
The accompanying notes
are an integral part of the financial statements.
17
Functions/Programs
Primary Government:
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Interest and fiscal charges
Total governmental activities
Business -type activities:
Water and sewer
Solid waste
Golf course
Building
Total business -type activities
Total primary government
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2011
Charges for
Expenses Services
'rogram Revenues
Operating
Grants and
Contributions
Capital
Grants and
Contributions
$ 21,324,680 $
5,845,567 $
448,640 $
186,429
67,393,943
6,076,085
499,401
79,142
1,353,074
24,204
-
-
22,300,819
2,090,194
2,711,781
885,206
2,056,453
-
2,666,088
-
7,762,962
346,689
1,236,393
237,740
16,484,242
1,340,550
212,033
548,971
5,774,032
501,980
152,496
-
2,526,114
-
-
-
146,976,319
16,225,269
7,926,832
1,937,488
33,818,640
27,842,092
-
1,923,271
10,370,476
9,221,396
-
-
2,537,665
3,163,062
-
-
1,623,862
1,588,934
-
-
48,350,643
41,815,484
-
1,923,271
$ 195,326,962 $ 58,040,753 $ 7,926,832 $ 3,860,759
General Revenues:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees, levied on gross receipts
State shared tax revenues
Interest earnings
Miscellaneous
Total general revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The accompanying notes are an integral part of the financial statements.
18
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business -type
(4,053,277)
Activities Activities
Total
$ (14,844,044) $ -
$ (14,844,044)
(60,739,315) -
(60,739,315)
(1,328,870) -
(1,328,870)
(16,613,638) -
(16,613,638)
609,635 -
609,635
(5,942,140) -
(5,942,140)
(14,382,688) -
(14,382,688)
(5,119,556) -
(5,119,556)
(2,526,114) -
(2,526,114)
(120,886,730) -
(120,886,730)
-
(4,053,277)
(4,053,277)
-
(1,149,080)
(1,149,080)
-
625,397
625,397
-
(34,928)
(34,928)
-
(4,611,888)
(4,611,888)
(120,886,730)
(4,611,888)
(125,498,618)
69,856,750
-
69,856,750
5,600,767
-
5,600,767
19,261,033
-
19,261,033
8,730,861
-
8,730,861
17,328,867
-
17,328,867
1,299,894
723,870
2,023,764
3,082,481
562,651
3,645,132
125,160,653
1,286,521
126,447,174
(643,144)
643,144
-
124,517,509
1,929,665
126,447,174
3,630,779
(2,682,223)
948,556
698,982,935
305,830,549
1,004,813,484
$ 702,613,714
$ 303,148,326 $
1,005,762,040
19
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Investments
Accounts receivable - net
Special assessments receivable
Due from other funds
Due from other governments
Inventories
Prepaid items
Other assets held for resale
Advance to other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Other deposits
Total liabilities
Fund Balances:
Nonspendable:
Inventories
Prepaid items
Advances to other funds
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Fire/emergency services
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Capital projects
Environmental conservation/preservation
Sports Village repairs/improvements
Solid waste projects
Parks/recreational projects
Other purposes
Committed to:
Economic incentives
Emergency/disaster relief
Budget stabilization
Court operations
Other purposes
Assigned to:
FY 2012 budget appropriation
Transportation/road improvements
Unassigned
Total fund balances
Total liabilities and fund balances
General
Secondary
Impact Roads
Fees Construction
56,711,295
$
33,565,477
$
13,143,118
675,338
-
-
751,927
514,604
-
-
1,994,019
60,940
271,875
42,916
-
-
77,952
242,751
-
510,000
$ 61,010,802
$
33,626,417
$
13,924,993
$ 2,784,518
$
765,327
$
689,553
-
362,558
42,751
436,202
-
-
441,087
119,679
420,025
-
-
4,201,511
1,127,885
732,304
42,916
-
-
77,952
-
242,751
-
510,000
-
20,758,946
12,682,689
50,015
-
-
1,499,416
1,787,799
221,127
25,781
6,465,939
-
1,739,524
9,762,653
-
5,600,000
5,600,000
78,392
1,660,000
33,694,612
-
-
56,809,291
32,498,532
13,192,689
$ 61,010,802
$
33,626,417
$
13,924,993
The accompanying notes are an integral part of the financial statements.
001
- - 42,916
45 304,813 382,810
- - 752,751
-
Emergency
Optional
Other
Total
3,007,049
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
1,024,233
130,694
351,821
$ 9,250,801 $
14,064,398 $
30,428,225 $
27,731,976 $
184,895,290
-
-
-
-
675,338
692
1,040,832
947,258
6,236
758,855
367,111
-
6,465,939
-
367,111
-
260,414
-
78,938
853,956
202,814
27,917
15,143,695
332,499
18,033,759
-
-
-
-
42,916
45
304,813
382,810
-
1,106,716
1,106,716
-
-
-
-
752,751
$ 9,821,463 $
14,352,729 $
45,571,920 $
29,561,178 $
207,869,502
$ 155,850 $
505,180 $
903,954 $
616,053 $
6,420,435
-
-
404,635
521,865
1,331,809
-
272,000
708,202
-
-
-
441,087
367,111
2,635
1,032,392
1,521,817
-
-
-
420,025
522,961
507,815
1,308,589
2,442,310
10,843,375
- - 42,916
45 304,813 382,810
- - 752,751
-
33,441,635
3,554,944
3,604,959
3,007,049
3,007,049
- 4,057,712
5,557,128
8,529,914 -
10,317,713
- 382,378
382,378
7,622,078
7,622,078
1,024,233
1,024,233
130,694
351,821
311,202
311,202
1,660,771
1,660,771
7,744
7,744
- 3,081,243
3,081,243
44,263,331 -
44,263,331
- 1,040,832
1,040,832
947,258
947,258
-
25,781
-
6,465,939
279,766
2,019,290
- - 9,762,653
800,000 1,500,000 7,900,000
800,000 1,500,000 - 7,900,000
- - 61,146 61,146
- 78,392
- 2,315,000 3,975,000
7,698,457 - 7,698,457
- - - (354,995) 33,339,617
9,298,502 13,844,914 44,263,331 27,118,868 197,026,127
$ 9,821,463 $ 14,352,729 $ 45,571,920 $ 29,561,178 $ 207,869,502
21
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Assets of Governmental Activities
September 30, 2011
Total governmental fund balances: $ 197,026,127
Amounts reported for governmental activities in the statement of net assets are different because
Capital assets used in governmental activities are not financial resources and, therefore, are not reported 544,323,705
in the fund.
Long-term liabilities, including bonds payable ($52,428,939), accrued compensated absences ($10,724,684)
and pollution remediation costs ($2,569,200) are not due and payable in the current period and, therefore,
are not reported in the fund. (65,722,823)
Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported it (448,907)
the fund.
Special assessment receivables are not financial resources in the current period and, therefore, are reported
as unearned revenues. 73,796
Accrued interest on special assessments is not recognized in the current period because the resources ari
not available and, therefore, not reported in the fund 123,484
Internal service funds are used by management to charge the costs of certain activities, such as insurance
fleet, and geographic information system services, to individual funds. The assets and liabilities of the
internal service funds are included in governmental activities in the statement of net assets 25,951,709
Grant revenues are not recognized in the current period because the resources are not available and
therefore, are not reported in the fund 959,650
The OPEB asset resulting from contributions in excess of the annual required contribution is not a financia
resource and, therefore, is not reported in the funds 189,584
Interest revenues are not recognized in the current period because the resources are not available and,
therefore, are not reported in the fund. 137,389
Net assets of governmental activities $ 702,613,714
The accompanying notes are an integral part of the financial statements.
22
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23
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Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2011
EXPENDITURES
Current:
General government
17,580,973
172,123
Secondary
Public safety
41,504,398
Impact
Roads
Physical environment
General
Fees
Construction
REVENUES
3,655,363
8,492,314
5,024,531
Taxes
$ 51,978,308 $
$
3,346,362
Permits, fees and special assessments
8,882,669
1,741,302
113,700
Intergovernmental
16,901,579
214,084
227,337
Charges for services
8,273,244
-
150,530
Judgments, fines and forfeits
469,935
-
-
Interest
411,614
194,070
70,233
Miscellaneous
1,492,694
64,507
86,070
Total revenues
88,410,043
2,213,963
3,994,232
EXPENDITURES
Current:
General government
17,580,973
172,123
Public safety
41,504,398
1,217,805
Physical environment
259,310
643,144
-
Transportation
3,655,363
8,492,314
5,024,531
Economic environment
413,326
-
-
Human services
3,436,333
-
Culture/recreation
8,603,256
75,606
Court related
5,255,617
-
Debt service:
Principal
-
Interest and fiscal charges
Capital projects
-
-
-
Total expenditures
80,708,576
10,600,992
5,024,531
Excess of revenues over (under) expenditures
7,701,467
(8,387,029)
(1,030,299)
OTHER FINANCING SOURCES (USES)
Transfers in
720,469
Transfers out
(8,127,133)
Total other financing sources (uses)
(7,406,664)
Net change in fund balances
294,803
(8,387,029)
(1,030,299)
Fund balances at beginning of year
56,514,488
40,885,561
14,222,988
Fund balances at end of year $
56,809,291 $
32,498,532 $
13,192,689
The accompanying notes are an integral part of the financial statements.
24
25
Emergency
Optional
Other
Total
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
$ - $
19,360,684 $
12,942,483 $
7,090,713 $
94,718,550
118,916
-
56,850
275,956
11,189,393
2,582,152
84,072
2,202,063
8,241,895
30,453,182
105,531
5,123,675
-
1,377,349
15,030,329
-
2,900
-
464,160
936,995
60,436
115,872
165,265
155,613
1,173,103
1,215,642
594,390
8,137
714,174
4,175,614
4,082,677
25,281,593
15,374,798
18,319,860
157,677,166
319,958
-
-
1,198,142
19,271,196
-
26,288,863
1,421,549
70,432,615
434,669
-
-
34,611
1,371,734
11,053,731
-
206,268
28,432,207
-
-
1,686,372
2,099,698
-
-
4,189,036
7,625,369
-
6,027,332
14,706,194
-
-
727,468
5,983,085
-
4,270,000
4,270,000
-
2,562,374
2,562,374
-
-
5,825,287
-
5,825,287
11,808,358
26,288,863
5,825,287
22,323,152
162,579,759
(7,725,681)
(1,007,270)
9,549,511
(4,003,292)
(4,902,593)
7,953,026
-
189,474
8,862,969
-
(402,837)
(388,297)
(8,918,267)
7,953,026
(402,837)
-
(198,823)
(55,298)
227,345
(1,410,107)
9,549,511
(4,202,115)
(4,957,891)
9,071,157
15,255,021
34,713,820
31,320,983
201,984,018
$ 9,298,502 $
13,844,914 $
44,263,331 $
27,118,868 $
197,026,127
25
Indian River County, Florida
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2011
Net change in fund balances - total governmental funds $ (4,957,891)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives as
depreciation expense.
Expenditures for capital assets 26,732,809
Less current year loss on assets (109,833)
Less current year depreciation (18,494,913) 8,128,063
Governmental funds do not report capital assets contributed from outside the
entity. However, those assets are recognized in the statement of net assets
and the capital contribution is recognized in the statement of activities.
Assets transferred from governmental funds to proprietary funds must be recognized as
a transfer out on the statement of activities.
Payments of bond principal and pollution remediation costs are expenditures in the
governmental funds, but the payment reduces long-term liabilities in the statement of
net assets.
Bond principal payment
Bond premium payment
Pollution remediation costs
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.
264,710
(643,144)
4,270,000
93,224
(71,000) 4,292,224
Governmental funds report interest and OPEB expenditures based on when they are paid.
The statement of activities reports these expenses as they are incurred. This is the
net number of the prior year and current year accrual.
Accrued bond interest expense 36,260
Accrued OPEB expense (130,146)
Some revenues reported in the governmental funds have been recognized as revenues in
the prior fiscal year in the statement of activities.
Internal service funds are used by management to charge the costs of insurance, fleet and
geographic information systems services to individual funds. The net costs of the
internal service funds are reported in governmental activities.
Governmental funds report non-exchange transactions when the applicable eligibility
requirements have been met and resources are available. However, in the statement
of activities, non-exchange transactions are recognized when the eligibility requirements
are met. This is the net number of the prior year and current year accrual.
Some interest revenues reported in the statement of activities do not provide current
financial resources, therefore, are not reported as revenues in governmental funds.
This is the net number of the prior year and current year accrual.
Change in net assets of governmental activities
The accompanying notes are an integral part of the financial statements.
26
(573,108)
(93,886)
(21,796)
1,839,206
(4,563,078)
(40,521)
$ 3,630,779
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 51,000,471 $
51,000,470 $
51,978,308 $
977,838
9,037,350
9,037,350
8,882,669
(154,681)
12,666,199
15,588,077
16,901,579
1,313,502
10,492,439
8,755,326
8,273,244
(482,082)
294,500
294,500
469,935
175,435
551,500
551,500
411,614
(139,886)
436,659
741,984
1,492,694
750,710
84,479,118
85,969,207
88,410,043
2,440,836
18,305,084
19,217,269
17,580,973
1,636,296
42,854,396
41,912,109
41,504,398
407,711
263,084
271,529
259,310
12,219
912,008
3,941,649
3,655,363
286,286
354,850
8,426,160
413,326
8,012,834
3,500,439
3,557,671
3,436,333
121,338
8,566,753
9,071,777
8,603,256
468,521
5,649,289
5,492,649
5,255,617
237,032
80,405,903
91,890,813
80,708,576
11,182,237
4,073,215
(5,921,606)
7,701,467
13,623,073
Transfers in
193,141
971,258
720,469
(250,789)
Transfers out
(8,124,731)
(8,211,658)
(8,127,133)
84,525
Total other financing sources (uses)
(7,931,590)
(7,240,400)
(7,406,664)
(166,264)
Net change in fund balances
(3,858,375)
(13,162,006)
294,803 $
13,456,809
Fund balances at beginning of year
3,858,375
13,162,006
56,514,488
Fund balances at end of year $
- $
- $
56,809,291
The accompanying notes are an integral part of the financial statements.
27
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Impact Fees Fund
For the Year Ended September 30, 2011
Budgeted Amounts
Original Final
REVENUES
Variance with
Final Budget
Actual Positive
Amounts (Negative)
Permits, fees and special assessments
$ 1,329,963 $ 1,329,963 $
1,741,302 $
411,339
Intergovernmental
- 17,845
214,084
196,239
Interest
270,000 270,000
194,070
(75,930)
Miscellaneous
- -
64,507
64,507
Total revenues
1,599,963 1,617,808
2,213,963
596,155
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
282,163 195,997
172,123
23,874
- 1,291,975
1,217,805
74,170
- 643,144
643,144
-
1,377,500 17,507,010
8,492,314
9,014,696
- 3,929,912
75,606
3,854,306
1,659,663 23,568,038
10,600,992
12,967,046
(59,700) (21,950,230) (8,387,029) $ 13,563,201
59,700 21,950,230 40,885,561
$ 32,498,532
The accompanying notes are an integral part of the financial statements.
W
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Secondary Roads Construction Fund
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 3,297,174 $
3,297,174 $
3,346,362 $
49,188
-
-
113,700
113,700
-
1,925,602
227,337
(1,698,265)
-
-
150,530
150,530
80,000
80,000
70,233
(9,767)
5,958,341
6,006,995
86,070
(5,920,925)
9,335,515
11,309,771
3,994,232
(7,315,539)
9,335,515 14,686,453 5,024,531 9,661,922
9,335,515 14,686,453 5,024,531 9,661,922
(3,376,682) (1,030,299) $ 2,346,383
3,376,682 14,222,988
$ - $ - $ 13,192,689
The accompanying notes are an integral part of the financial statements.
29
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Transportation Fund
For the Year Ended September 30, 2011
REVENUES
Permits, fees and special assessments
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 123,500 $
123,500 $
118,916 $
(4,584)
2,318,950
2,318,950
2,582,152
263,202
86,925
86,925
105,531
18,606
90,250
90,250
60,436
(29,814)
792,750
792,750
1,215,642
422,892
3,412,375
3,412,375
4,082,677
670,302
304,650
333,967
319,958
14,009
576,834
590,866
434,669
156,197
11,658,917
14,001,859
11,053,731
2,948,128
12,540,401
14,926,692
11,808,358
3,118,334
(9,128,026)
(11,514,317)
(7,725,681)
3,788,636
7,953,026
7,953,026
7,953,026
-
7,953,026
7,953,026
7,953,026
-
(1,175,000)
(3,561,291)
227,345 $
3,788,636
1,175,000
3,561,291
9,071,157
$ - $
- $
9,298,502
The accompanying notes are an integral part of the financial statements.
30
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Emergency Services District Fund
For the Year Ended September 30, 2011
EXPENDITURES
Current:
Public safety 25,439,789 28,190,377 26,288,863 1,901,514
Total expenditures 25,439,789 28,190,377 26,288,863 1,901,514
Excess of revenues over (under) expenditures (2,121,589) (4,819,948) (1,007,270) 3,812,678
OTHER FINANCING SOURCES (USES)
Transfers in - 64,020 - (64,020)
Transfers out (466,987) (466,987) (402,837) 64,150
Total other financing uses (466,987) (402,967) (402,837) 130
Net change in fund balances (2,588,576) (5,222,915) (1,410,107) $ 3,812,808
Fund balances at beginning of year 2,588,576 5,222,915 15,255,021
Fund balances at end of year $ - $ - $ 13,844,914
The accompanying notes are an integral part of the financial statements.
31
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Taxes
$ 18,981,402 $
18,981,402 $
19,360,684
$ 379,282
Intergovernmental
28,500
80,729
84,072
3,343
Charges for services
4,099,250
4,099,250
5,123,675
1,024,425
Judgments, fines and forfeits
-
-
2,900
2,900
Interest
194,750
194,750
115,872
(78,878)
Miscellaneous
14,298
14,298
594,390
580,092
Total revenues
23,318,200
23,370,429
25,281,593
1,911,164
EXPENDITURES
Current:
Public safety 25,439,789 28,190,377 26,288,863 1,901,514
Total expenditures 25,439,789 28,190,377 26,288,863 1,901,514
Excess of revenues over (under) expenditures (2,121,589) (4,819,948) (1,007,270) 3,812,678
OTHER FINANCING SOURCES (USES)
Transfers in - 64,020 - (64,020)
Transfers out (466,987) (466,987) (402,837) 64,150
Total other financing uses (466,987) (402,967) (402,837) 130
Net change in fund balances (2,588,576) (5,222,915) (1,410,107) $ 3,812,808
Fund balances at beginning of year 2,588,576 5,222,915 15,255,021
Fund balances at end of year $ - $ - $ 13,844,914
The accompanying notes are an integral part of the financial statements.
31
R
32
E-3
Indian River County, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2011
LIABILITIES
Current liabilities (payable from current assets)
Accounts payable
991,593
Business -type Activities - Enterprise Funds
536,528
Governmental
1,561,323
Solid Waste
Retainage payable
-
-
13;769
Activities
13,769
Disposal
Golf
County
County
-
Internal
52,604
District
Course
Utilities
Building
Total
Service Funds
ASSETS
2,395,278
Due to other governments
7,745
2,827,524
11,316
Current assets:
-
Other deposits
1,000
-
-
Cash and cash equivalents
$ 16,272,994 $
132,583 $
34,595,467 $
3,980,050 $
54,981,094 $
30,926,594
Accounts receivable - net
108,294
-
2,770,808
375
2,879,477
1,564,576
Due from other funds
96,850
-
-
-
96,850
-
Due from other governments
-
10,800
-
-
10,800
112,527
Interest receivable
15,633
574
536,308
3,012
555,527
23,392
Inventories
-
54,462
876,259
-
930,721
209,667
Prepaid items
-
-
181,164
-
181,164
1,035,670
Current restricted assets:
Accrued interest payable
8,580
182,787
Cash and cash equivalents
13,490,489
470,664
26,337,729
-
40,298,882
-
Total current assets
29,984,260
669,083
65,297,735
3,983,437
99,934,515
33,872,426
Non-current assets:
Total current liabilities (payable from restricted assets)
127,141
543,580
6,174,165
Unamortized bond issuance costs
-
49,523
477,430
-
526,953
-
Deferred amounts onrefundings
-
134,019
3,029,137
3,163,156
-
Capital assets - non -depreciable
15,940,391
669,630
15,648,928
28,142
32,258,949
27,300
Capital assets - depreciable
21,807,067
8,356,251
397,458,084
426,643
428,048,045
992,942
Capital assets- accumulated depreciation
(7,887,372)
(1,729,813)
(183,132,771)
(421,606)
(193,171,562)
(614,707)
Non-current restricted assets:
5,481,722
Pollution remediation payable
-
47,280
Special assessments receivable
-
Closure and maintenance costs payable
1,256,636
-
1,256,636
Impact fees receivable
Bonds payable -net of unamortized discount/premium
798,541
2,097,243
798,541
Liens receivable
-
Total non-current liabilities
2,133,445
2,878,136
2,133,445
30,512
Total non-current assets
29,860,086
7,479,610
237,669,430
5,037
275,014,163
405,535
Total assets
59,844,346
8,148,693
302,967,165
3,988,474
374,948,678
34,277,961
LIABILITIES
Current liabilities (payable from current assets)
Accounts payable
991,593
26,375
536,528
6,827
1,561,323
215,451
Retainage payable
-
-
13;769
-
13,769
-
Due to other funds
52,604
-
52,604
190,000
Claims payable
-
-
-
-
2,395,278
Due to other governments
7,745
2,827,524
11,316
2,846,585
-
Other deposits
1,000
-
-
1,000
Unearned revenues
28,274
-
28,274
Pollution remediation payable
-
-
17,720
-
17,720
-
Accrued compensated absences
39,934
36,580
526,173
65,146
667,833
22,843
Total current liabilities (payable from current assets)
1,031,527
152,578
3,921,714
83,289
5,189,108
2,823,572
Current liabilities (payable from restricted assets):
Accounts payable
-
-
287,331
-
287,331
-
Retainage payable
-
136,260
136,260
Accrued interest payable
8,580
182,787
191,367
Bonds payable
-
535,000
3,090,000
3,625,000
Customer deposits
127,141
-
2,477,787
2,604,928
Total current liabilities (payable from restricted assets)
127,141
543,580
6,174,165
6,844,886
-
Totalcurrentliabilities
1,158,668
696,158
10,095,879
83,289
12,033,994
2,823,572
Non-current liabilities:
Accrued compensated absences
-
28,142
94,591
30,512
153,245
20,958
Advance from other funds
752,751
-
-
752,751
-
Claims payable
-
-
-
5,481,722
Pollution remediation payable
-
47,280
47,280
-
Closure and maintenance costs payable
10,016,236
-
-
10,016,236
Bonds payable -net of unamortized discount/premium
-
2,097,243
46,699,603
48,796,846
-
Total non-current liabilities
10,016,236
2,878,136
46,841,474
30,512
59,766,358
5,502,680
Total liabilities
11,174,904
3,574,294
56,937,353
113,801
71,800,352
8,326,252
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Debt service
Capital projects
Unrestricted
Total net assets
29,860,086 4,797,844 183,213,775 5,037 217,876,742 405,535
44,583 253,750 298,333
- - 23,931,768 - 23,931,768 -
18;809,356 (268,028) 38,630,519 3,869,636 61,041,483 25,546,174
$ 48,669,442 $ 4,574,399 $ 246,029,812 $ 3,874,673 $ 303,148,326 $ 25,951,709
The accompanying notes are an integral part of the financial statements.
33
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2011
OPERATING REVENUES
Charges for services
Charges for services pledged as
security for revenue bonds
Total operating revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and
other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest income
Interest income pledged as
security for revenue bonds
Gain on disposal of equipment
Interest expense
Bond amortization expense
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income (loss) before transfers and
capital contributions
Capital contributions
Capital grants
Transfers in
Change in net assets
Total net assets - beginning
Total net assets - ending
Business -type Activities -
Solid Waste
Disposal Golf
District Course
$ 9,221,396 $ -
- 3,163,062
9,221,396 3,163,062
1,200,617
585,330
8,180,639
1,661,551
987,673
122,977
10,368,929
2,369,858
(1,147,533)
203,253
530,241
(1,547)
731,947
(415,586)
643,144
227,558
793,204
7,510
12,640
(126,302)
(41,505)
(147,657)
645,547
645,547
48,441,884 3,928,852
$ 48,669,442 $ 4,574,399
The accompanying notes are an integral part of the financial statements.
34
Enterprise Funds
County County
Utilities Building Total
$ - $ 1,588,934 $ 10,810,330 $
27,842,092 - 31,005,154
Governmental
Activities
Internal
Service Funds
21,495,026
27,842,092
1,588,934
41,815,484
21,495,026
249,572,059
3,887,754
305,830,549
7,601,131
1,132,608
10,519,686
2,300,869
9,227,181
480,645
19,550,016
17,427,465
14,602,614
10,609
15,723,873
153,296
31,430,926
1,623,862
45,793,575
19,881,630
(3,588,834)
491,260
19,770
(2,313,602)
(74,112)
(1,876,684)
(5,465,518)
1,836,506
86,765
(34,928) (3,978,091)
21,847 225,100
- 498,770
- 562,651
- (2,439,904)
- (115,617)
- (1,547)
21,847 (1,270,547)
(13,081)
(5,248,638)
2,479,650
86,765
1,613,396
167,312
3,200
170,512
1,783,908
55,298
(3,542,247)
(13,081)
(2,682,223)
1,839,206
249,572,059
3,887,754
305,830,549
24,112,503
$ 246,029,812 $
3,874,673 $
303,148,326 $
25,951,709
35
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net cash provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers
Proceeds from advances from other funds
Payments for advances from other funds
Net cash provided by (used in) noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent fees
Capital contributed by others
Net cash provided by (used in) capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
Restricted assets
Totals
1,121,192 100,893
28,642,291 502,354
$ 29,763,483 $ 603,247
$ 16,272,994 $ 132,583
13,490,489 470,664
$ 29,763,483 $ 603,247
The accompanying notes are an integral part of the financial statements.
IM
Business -type
Solid Waste
Disposal
Golf
District
Course
$ 9,163,584 $
3,164,408
(7,137,512)
(1,693,577)
(1,379,205)
(589,688)
646,867
881,143
-
333,050
-
(150,431)
-
182,619
-
(520,000)
-
(126,975)
1,990,772
12,640
(2,369,252)
(336,146)
643,144
-
264,664
(970,481)
209,661
7,612
209,661
7,612
1,121,192 100,893
28,642,291 502,354
$ 29,763,483 $ 603,247
$ 16,272,994 $ 132,583
13,490,489 470,664
$ 29,763,483 $ 603,247
The accompanying notes are an integral part of the financial statements.
IM
Activities - Enterprise Funds
Governmental
Activities
County
County
Internal
Utilities
Building
Total
Service Funds
$
27,663,095
$
1,588,559
$
41,579,646
$
21,275,610
(9,731,633)
(507,369)
(19,070,091)
(17,306,683)
(7,622,783)
(1,134,722)
(10,726,398)
(2,304,152)
10,308,679
(53,532)
11,783,157
1,664,775
-
-
-
55,298
-
-
333,050
190,000
-
-
(150,431)
-
-
-
182,619
245,298
(2,990,000)
-
(3,510,000)
-
(2,324,573)
-
(2,451,548)
-
19,770
-
2,023,182
3,200
(5,981,088)
-
(8,686,486)
(97,006)
(5,100)
-
(5,100)
-
1,252,512
-
1,895,656
-
(10,028,479)
-
(10,734,296)
(93,806)
500,094
23,295
740,662
169,732
500,094
23,295
740,662
169,732
780,294
(30,237)
1,972,142
1,985,999
60,152,902
4,010,287
93,307,834
28,940,595
$
60,933,196
$
3,980,050
$
95,279,976
$
30,926,594
$
34,595,467
$
3,980,050
$
54,981,094
$
30,926,594
26,337,729
-
40,298,882
-
$
60,933,196
$
3,980,050
$
95,279,976
$
30,926,594
Continued
37
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2011
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
Depreciation
(Increase) Decrease in assets:
Accounts receivable
Due from other funds
Due from other governments
Inventories
Liens receivable
Impact fees receivable
Special assessments receivable
Prepaid expenses
Increase (Decrease) in liabilities:
Accounts payable
Due to other governments
Retainage payable
Customer deposits
Closure and maintenance costs payable
Pollution remediation costs payable
Unearned revenues
Claims payable
Accrued compensated absences
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Business -type Activities -
Solid Waste
Disposal Golf
District Course
$ (1,147,533) $ 793,204
987,673 122,977
(44,008) -
(1,519) -
- 500
- (7,628)
545,627 (24,632)
- 234
(12,285) -
497,500 -
846
(178,588) (4,358)
1,794,400 87,939
$ 646,867 $ 881,143
Change in fair value of investments $ 19,061 $ 700
Contributed property, infrastructure and equipment $ - $ -
Capital assets purchased through accounts payable $ 236,816 $ -
The accompanying notes are an integral part of the financial statements.
M
Enterprise Funds
County
Utilities
County
Building
Total
Governmental
Activities
Internal
Service Funds
$ (3,588,834) $ (34,928) $ (3,978,091) $ 1,613,396
14,602,614
10,609
15,723,873
153,296
5,190
(375)
(39,193)
(187,784)
-
-
(1,519)
-
(50)
-
450
(31,632)
27,908
-
20,280
(53,469)
(563,702)
-
(563,702)
-
43,869
-
43,869
-
311,792
-
311,792
-
(147,831)
-
(147,831)
108,449
(359,162)
(33,428)
128,405
87,802
(18,575)
6,704
(11,637)
-
5,089
-
5,089
-
23,904
-
11,619
-
-
-
497,500
-
(11,881)
-
(11,881)
-
-
-
846
-
-
-
-
(22,000)
(21,652)
(2,114)
(206,712)
(3,283)
13,897,513
(18,604)
15,761,248
51,379
$ 10,308,679 $
(53,532) $
11,783,157 $
1,664,775
$ 51,334 $ 3,673 $ 74,768 $ 28,520
$ 643,922 $ - $ 643,922 $ -
$ 194,045 $ - $ 430,861 $ -
39
Indian River County, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2011
NET ASSETS
Assets held in trust for other
postemployment benefits 6,955,356
Total net assets $ 6,955,356
The accompanying notes are an integral part of the financial statements.
40
Other
Postemployment
Agency
Benefits Trust
ASSETS
Cash and cash equivalents
$
12,571,159
$ -
Accounts receivable - net
697
Investments, at fair value:
Surplus Funds Trust Fund - Fund B
77,521
-
Index funds
-
3,226,690
U.S. government securities funds
-
4,700,167
Prime money market fund
-
525,143
Total assets
$
12,649,377
8,452,000
LIABILITIES
Accounts payable
$
821,359
525
Benefits payable
-
1,496,119
Due to other governments
4,939,915
-
Other deposits held in escrow
6,888,103
-
Total liabilities
$
12,649,377
1,496,644
NET ASSETS
Assets held in trust for other
postemployment benefits 6,955,356
Total net assets $ 6,955,356
The accompanying notes are an integral part of the financial statements.
40
Indian River County, Florida
Statement of Changes in Fiduciary Net Assets
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2011
ADDITIONS
Employer contributions
Investment loss
Investment expense
Total additions
DEDUCTIONS
Benefits paid to participants
Total deductions
Change in net assets
Net assets - beginning
Net assets - ending
$ 2,948,358
(84,217)
(2,130)
2,862,011
1,496,119
1,496,119
1,365,892
5,589,464
$ 6,955,356
The accompanying notes are an integral part of the financial statements.
41
R
42
E-3
Note
1
2.
3
3
5.
6.
7.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
Summary of Significant Accounting
Page Note
Policies..................................................44
71
Reporting Entity.................................44
71
Measurement Focus and
72
Basis of Accounting .....................
45
Basis of Presentation ..........................48
73
Assets, Liabilities and Net Assets
74
orEquity.......................................50
Cash and Cash Equivalents.............50
74
Investments.....................................51
75
Allowance for Doubtful Accounts ..51
75
Receivables and Payables ...............51
Inventories.......................................51
76
Prepaid Items..................................51
79
Other Assets Held For Resale .........52
Restricted Assets .............................52
79
Capital Assets..................................52
Capitalization of Interest.................53
Unearned Revenues ........................53
Accrued Compensated Absences ....
53
Obligation for Bond Arbitrage
Rebate..........................................54
82
Landfill Closure Costs ....................54
Unamortized Bond Costs ................54
83
Unamortized Bond Discounts
83
and Premiums...............................54
83
Capital Contributions ......................54
83
New Accounting Pronouncements..
54
Reconciliation of Government -wide
and Fund Financial Statements ..........55
86
Stewardship, Compliance and
88
Accountability....................................59
91
Budget and Budgetary Accounting.59
92
Cash and Cash Equivalents ...................60
94
Deposits...........................................60
94
Accrued Interest..............................60
95
Investments.....................................60
96
OPEB Trust Investments.................64
96
Property Tax Revenues .........................65
Capital Assets........................................66
96
Restricted Cash and Cash Equivalents
97
and Investments.................................69
97
Payable from Restricted Assets ............69
Interfund Balances................................70
43
Page
10. Interfund Transfers ..............................
71
11. Due from Other Governments ..............
71
12. Accounts Payable .................................
72
13. Long-term Liabilities ............................
73
Changes in Long-term Liabilities.........
73
Governmental Activities .......................
74
Annual Debt Service Payments —
Governmental Activities ..............
74
Limited General Obligation Bonds
75
General Obligation Bonds ..............
75
Spring Training Facility Revenue
Bonds...........................................
76
Business -type Activities
79
Annual Debt Service Payments —
Business -type Activities ..............
79
Recreational Revenue Refunding
Bonds, Series 2003 ......................79
Water and Sewer Revenue Refunding
Bonds, Series 2005 ......................
81
Water and Sewer Revenue Refunding
Bonds, Series 2009 ......................
82
Summary of Defeased Debt
Outstanding .......................................
83
Compensated Absences ........................
83
Conduit Debt Obligations .....................
83
14. Provision for Closure Costs ..................
83
15. Pollution Remediation ..........................
84
16. Pension Plans -
Florida Retirement System ................
86
17. Other Postemployment Benefits Plan...
88
18. Operating Leases ..................................
91
19. Fund Balance ........................................
92
20. Fund Balance Deficit ............................
94
21. Net Assets .............................................
94
22. Risk Management .................................
95
23. Commitments and Contingencies.........
96
Litigation ...........................................
96
Contracts and Other
Commitments ..........................
96
Grants................................................
97
24. Subsequent Events ................................
97
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Indian River County, Florida, (the "County") is a political subdivision of the State pursuant to Article
VIII, Section 1(a) of the Constitution of the State of Florida. Created on June 29, 1925 by an act of
Legislature, separating it from St. Lucie County, the County encompasses approximately 497 square
miles of land with an estimated population of 138,694. The County is governed by the Board of County
Commissioners and five elected constitutional officers (Clerk of the Circuit Court and Comptroller,
Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector) in accordance with state
statutes and regulations. The constitutional officers maintain separate accounting records and budgets
for the Board of County Commissioners. The Constitution of the State of Florida, Article VIII, Section
1(d) created the constitutional officers and Article VIII, Section 1(e), created the Board of County
Commissioners.
The financial statements of the County have been prepared in accordance with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the standard-setting body for governmental accounting and financial
reporting. The County applies all GASB Pronouncements in the preparation of the financial statements
of the enterprise funds as well as all FASB and AICPA Pronouncements. The GASB periodically
updates its codification of the existing Governmental Accounting and Financial Reporting Standards
which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes
GAAP for governmental units.
A. Reporting Entity
The concept underlying the definition of the reporting entity is that elected officials are accountable to
their constituents for their actions. The reporting entity's financial statements should allow users to
distinguish between the primary government (the County) and its component units. However, some
component units, because of the closeness of their relationships with the County, should be blended as
though they are part of the County. Otherwise, most component units should be discretely presented.
As required by generally accepted accounting principles, the financial reporting entity consists of. (1)
the primary government (the County), (2) organizations for which the County is financially
accountable, and (3) other organizations for which the nature and significance of their relationship with
the County are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete. The County is financially accountable if it appoints a voting majority of the
organization's governing body and (a) it is able to impose its will on that organization or (b) there is a
potential for the organization to provide specific financial benefits to, or impose specific financial
burdens on, the County.
The County may be financially accountable if an organization is fiscally dependent on the County
regardless of whether the organization has (a) a separately elected governing board, (b) a governing
board appointed by a higher level of government, or (c) a jointly appointed board. Based on these
criteria, County management examined all organizations, which are legally separate, in order to
determine which organizations, if any, should be included in the County's financial statements.
Management determined that the Solid Waste Disposal District and the Emergency Services District
were the only organizations that should be included in the County's financial statements as blended
component units.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES — Continued
A. Reporting Entity — Continued
Blended Component Units
Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the Board for the SWDD and sets the non ad valorem assessment fees
for the SWDD. Although legally separate, the SWDD is appropriately blended as a proprietary fund
type (enterprise) component unit into the primary government.
Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of
County Commissioners serves as the Board for the EMS and sets the millage rate for the EMS.
Although legally separate, the EMS is appropriately blended as a governmental fund type (special
revenue) component unit into the primary government.
B. Measurement Focus and Basis of Accounting
The basic financial statements of the County are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the financial statements
1. Government -wide Financial Statements
Government -wide financial statements display information about the reporting government as a whole,
except for its fiduciary activities. These statements include separate columns for the governmental and
business -type activities of the primary government (including its blended component units).
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely, to a significant extent, on fees and charges
for support.
Government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. 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.
W
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
1. Government -wide Financial Statements - Continued
Program revenues include charges for services, special assessments, and payments made by parties
outside of the reporting government's citizenry if that money is restricted to a particular program.
Program revenues are netted with program expenses in the statement of activities to present the net
expense of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial
statements, rather than reported as expenditures. Issuance of long-term debt is recorded as a liability in
the government -wide financial statements, rather than as an other financing source. Amounts paid to
reduce long-term indebtedness of the reporting government are reported as a reduction of the related
liability, rather than as an expenditure.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. The County chooses to eliminate the indirect costs between governmental
activities to avoid a "doubling up" effect. However, interfund services provided and used, such as the
sale of gas and diesel from Fleet Management to the government, are not eliminated in the statement of
activities.
2. Fund Financial Statements
The underlying accounting system of the County is organized and operated on the basis of separate
funds, each of which is considered to be a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund
equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to
and accounted for in individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds
are presented after the government -wide financial statements. These statements display information
about major funds individually and nonmajor funds in the aggregate for governmental and enterprise
funds.
we
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
Governmental Funds
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collected within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
County considers revenues to be available if they are collected within 45 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. Franchise fees, sales taxes, gas taxes, operating and capital grants, and interest associated
with the current fiscal period are all considered to be susceptible to accrual and so have been recognized
as revenues of the current fiscal period. All other revenue items are considered to be measurable only
when the County receives cash.
Under the current financial resources measurement focus, only current assets and current liabilities are
generally included on the balance sheet. The reported fund balance is considered to be a measure of
"available spendable resources". Governmental funds operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of "available spendable resources"
during a period.
Non-current portions of special assessments due to governmental funds are reported on their balance
sheets in spite of their spending measurement focus. Non-current portions of notes receivable and
advances to other funds are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for governmental fund types
excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such
long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were
expended, rather than as fund assets. The issuance of long-term debt is recorded as an other financing
source rather than as a fund liability. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
M
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
Proprietary Funds
The County's enterprise funds and internal service funds are proprietary funds. In the fund financial
statements, proprietary funds are presented using the accrual basis of accounting. Revenues are
recognized when they are earned and expenses are recognized when the related goods or services are
delivered. In the fund financial statements, proprietary funds are presented using the economic
resources measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type
operating statements present increases (revenues) and decreases (expenses) in total net assets. The
County applies all GASB Pronouncements in the preparation of the financial statements of the
enterprise funds as well as all FASB and AICPA Pronouncements.
Proprietary fund operating revenues result from exchange transactions associated with the principal
activity of the fund. Exchange transactions are those in which each party receives and gives up
essentially equal values. Non-operating revenues result from non-exchange transactions or ancillary
activities. Operating expenses are costs incurred to provide services, whereas non-operating expenses
are costs of debt financings, amortization of intangible assets and losses on the sale of assets.
Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather
than reported as expenditures. Issuance of long-term debt is recorded as a liability in the fund financial
statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness are
reported as a reduction of the related liabilities, rather than as an expense.
Fiduciary Funds
The fiduciary funds financial statements include financial information for the agency fund and the other
postemployment benefit trust fund. The agency fund of the County primarily represents assets held by
the County in a custodial capacity for other individuals or governments. The other postemployment
benefits trust fund (Trust) accounts for activities of the Trust, which accumulates resources for health
insurance benefit payments for current retirees and for current employees upon their retirement. The
agency and Trust fund statements are presented using the accrual basis of accounting.
C. Basis of Presentation
GASB Statement 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues or
expenditures/expenses of either fund category and the governmental and enterprise combined) for the
determination of major funds. The County has used GASB 34 minimum criteria for major fund
determination and has also electively disclosed funds that either had debt outstanding or specific
community focus as major funds. The nonmajor funds are combined in a column in the fund financial
statements and detailed in the combining section.
W.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation - Continued
1. Governmental Major Funds:
General Fund — The General Fund is the general operating fund of the County. It is used to account for
all financial resources, except those required to be accounted for in another fund.
Impact Fees Fund — The Impact Fees Fund accounts for the receipt of various impact fees. Funds are
used for the construction of roads and bridges, correctional, public safety, library, park, public building,
and solid waste facilities. Funds are also used for administrative expenditures of monitoring the
aforementioned activities.
Secondary Roads Construction Fund — The Secondary Roads Construction Fund accounts for the
expenditures of road and bridge construction, roadway, bridge and right of way maintenance and
drainage, and related administrative costs. Financing is provided by collections of the local option gas
tax.
Transportation Fund — The Transportation Fund accounts for expenditures incurred for the maintenance
and repair of County roads. Financing is provided by the 5th and 6th cent gas taxes, county gas tax and
transfers from the General Fund.
Emergency Services District Fund — The Emergency Services District Fund accounts for the
expenditures of providing fire protection and advanced life support to the County. Financing is
provided by ad valorem taxes.
Optional Sales Tax Fund — The Optional Sales Tax Fund accounts for revenues generated by the local
option one -cent sales tax and some capital grants that use the local option one -cent sales tax as
matching funds. Monies are used for various capital projects.
2. Proprietary Major Funds:
Solid Waste Disposal District Fund — The Solid Waste Disposal District Fund accounts for the
revenues, expenses, assets and liabilities associated with the County landfill.
Golf Course Fund — The Golf Course Fund accounts for the revenues, expenses, assets and liabilities
associated with the Golf Course.
County Utilities Fund — The County Utilities Fund accounts for the revenues, expenses, assets and
liabilities associated with the County water and sewer system.
County Building Fund — The County Building Fund accounts for revenues, expenses, assets and
liabilities associated with the County building permit and inspection program.
EZ
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation — Continued
3. Other Fund Types:
Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and
Geographic Information Systems services provided to other departments of the County on a cost
reimbursement basis.
Agency Fund - The Agency Fund is used to account for assets held in a custodial capacity by the
County for other governmental units, other funds, individuals and businesses. Examples include payroll
deductions, self insurance premiums, and developer escrow funds.
Other Postemployment Benefits Trust Fund — The Other Postemployment Benefits Trust Fund (Trust)
accounts for activities of the Trust, which accumulates resources for health insurance benefit payments
for current retirees and for current employees upon their retirement. Contributions are recorded when
earned and benefit payments and refunds when incurred within each year.
4. Non-current Governmental Assets/Liabilities:
GASB Statement 34 requires non-current governmental assets, such as land and buildings, and non-
current governmental liabilities, such as general obligation bonds and capital leases, be reported in the
governmental activities column in the government -wide statement of net assets.
D. Assets, Liabilities, and Net Assets or Equity
1. Cash and Cash Equivalents
Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety
days or less when purchased. The County maintains a cash and investment pool that is available for use
by all funds. Earnings from the pooled investments are allocated to the respective funds based on
applicable cash participation by each fund. The investment pool is managed such that all participating
funds have the ability to deposit and withdraw cash as if they were demand deposit accounts. Therefore,
all balances representing participants' equity in the investment pools are classified as cash and cash
equivalents for financial statement purposes.
In addition, longer-term investments are held by several of the County's funds and are reported as
restricted cash on these statements. Cash and cash equivalents of the constitutional officers are
maintained in separate accounts, but have been combined with the Board's cash and cash equivalents
for financial statement purposes.
50
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
2. Investments
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, money market
funds, Florida PRIME Fund (formerly known as the Local Government Surplus Funds Trust Fund
Investment (SBA) Fund A), Fund B Surplus Funds Trust Fund, and the Florida Local Government
Investment Trust Fund. Investments are reported at fair value based upon the average price obtained
from three brokers/dealers. The SBA and Trust values are based upon the fair market value per share of
the underlying portfolio. Refer to Note 4-C, Investments, for further information on individual
investments.
3. Allowance for Doubtful Accounts
The County provides an allowance for water and sewer accounts receivables that may become
uncollectible. At September 30, 2011, this allowance was $424,493. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectible as reported at
September 30, 2011.
4. Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as "due to/from other funds". Any residual balances outstanding
between the governmental activities and business -type activities are reported in the government -wide
financial statements as "internal balances". All receivables are shown net of allowance for doubtful
accounts. Receivables in excess of 120 days comprise the trade accounts receivable allowance for
doubtful accounts.
5. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting, with the exception of the Shooting Range and Fleet Internal Service Fund's inventories
which are valued using the average cost method of accounting. Inventories of all funds are recorded as
expenditures (expenses) when consumed rather than when purchased.
6. Prepaid Items
Prepaid items in the governmental funds represent prepayments for services that will be used in future
periods. The County's policy is to record the expenditure for the services when they are used rather
than when the cash is disbursed.
51
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
7. Other Assets Held For Resale
This account represents assets the County has purchased with the intent to resell. In fiscal year 2009,
the County was allocated $4.6 million from the U.S. Department of Housing and Urban Development's
Neighborhood Stabilization Program under a Community Development Block Grant. This funding was
to be used by local governments for acquiring, redeveloping, and reselling foreclosed properties that
might otherwise become sources of abandonment within their communities. At September 30, 2011, ten
homes remain unsold. The County intends to resell these homes in the next fiscal year. They are
reported at the lower of cost or market value on the balance sheet of the County's governmental funds.
8. Restricted Assets
Certain net assets of the County are classified as restricted assets on the statement of net assets because
their use is limited either by law through constitutional provisions or enabling legislation; or by
restrictions imposed externally by creditors, grantors, contributors, or laws or regulations of other
governments. In a fund with both restricted and unrestricted assets, qualified expenses are considered
to be paid first from restricted net assets and then from unrestricted net assets. Further information on
the restrictions can be found in Note 21.
9. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, right-of-
ways, water and sewer distribution systems, beach restoration, stormwater systems and similar items),
and intangible assets (e.g. software, easements, and rights), are reported in the applicable governmental
or business -type activities column in the government -wide financial statements. The County defines
capital assets as assets with an initial, individual cost of $1,000 or more and an estimated useful life in
excess of one year. Except for roads and bridges constructed prior to October 1, 1981, assets are
recorded at historical cost. Roads and bridges constructed prior to October 1, 1981 are reported at
estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date
of donations. Transfers of capital assets within the County are recorded at their carrying value at the
time of the transfer.
The costs of normal maintenance and repairs that do not add to the value of the asset nor materially
extend its useful life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of
the capitalized value of the assets constructed.
The Board holds legal title to the capital assets used in the operations of the Board, Clerk of the Circuit
Court and Comptroller, Property Appraiser, Supervisor of Elections and Tax Collector, and is
accountable for them under Florida Law.
52
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
9. Capital Assets - Continued
The Sheriff is accountable for and thus maintains capital asset records pertaining only to equipment
used in his operations. These assets have been combined with the Board's governmental activities
capital assets in the statement of net assets.
Property, plant, equipment, intangible, and infrastructure assets of the primary government, as well as
the component units, are depreciated using the straight-line method over the following estimated useful
lives:
Assets Years
Building and improvements 10-50
Machinery and equipment 3-10
Utility distribution system 25-50
Road and bridge infrastructure 20-50
Fiberoptics 20
Software 3-5
Beach preservation infrastructure 7
Stormwater infrastructure 30
10. Capitalization of Interest
Interest costs related to bond issues are capitalized during the construction period. These costs are
netted against applicable interest earnings on construction fund investments. During the current period,
the County did not have any capitalized interest.
11. Unearned Revenues
In government -wide financial statements, unearned revenues are recognized as revenue in the fiscal
year they are earned. In governmental fund financial statements (in accordance with the modified
accrual basis of accounting), deferred revenues represent revenues, which are measurable but not
available, or received and unearned. At September 30, 2011, the total amount of deferred revenues
reported on the governmental funds balance sheet is $1,521,817 which is available, but unearned.
12. Accrued Compensated Absences
The County accrues accumulated unpaid vacation and sick leave when earned by the employee. The
current portion is the amount estimated to be used in the following year. The non-current portion is the
amount estimated to be used in subsequent fiscal years. Both the current and non-current estimated
accrued compensated absences amounts for governmental funds are maintained separately and
represent a reconciling item between the fund and government -wide presentations.
53
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
13. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(f) of the U. S. Internal Revenue Code, the County must rebate to the United
States Government the excess of interest earned from the investment of certain debt proceeds and
pledged revenues over the yield rate of the applicable debt. The County uses the "revenue reduction"
approach in accounting for rebatable arbitrage. This approach treats excess earnings as a reduction of
revenue. The County has no arbitrage liability outstanding as of September 30, 2011.
14. Landfill Closure Costs
Under the terms of current state and federal regulations, the Solid Waste Disposal District (SWDD) is
required to place a final cover on closed landfill areas, and to perform certain monitoring and
maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs
of closure and post -closure maintenance over the active life of each landfill area, based on landfill
capacity used during the period. Required obligations for closure and post -closure costs are recognized
in the Solid Waste Disposal District Enterprise Fund.
15. Unamortized Bond Costs
Bond issuance costs and legal fees associated with the issuance of proprietary fund revenue bonds are
amortized over the life of the bonds using the straight-line method of accounting.
16. Unamortized Bond Discounts and Premiums
Bond discounts and premiums associated with the issuance of proprietary fund revenue bonds are
amortized according to the straight-line method over the remaining life of the bonds. For financial
reporting, unamortized bond discounts and premiums are netted against the applicable long-term debt.
17. Capital Contributions
The capital contributions accounted for in the proprietary fund types represent contributions from other
funds, developers, state and federal grant programs, and impact fees charged to new customers for their
anticipated burden on the existing system. The contributions amount is reported after non-operating
revenues and expenses on the Statement of Revenues, Expenses, and Changes in Fund Net Assets in
accordance with GASB Statement 33. Capital contributions for the governmental funds are reported on
the Statement of Activities in accordance with GASB Statement 34 and represent contributions of
capital assets from developers and state agencies.
18. New Accounting Pronouncements
Effective October 1, 2010, the County implemented the provisions of GASB Statement No. 61 The
Financial Reporting Entity: Omnibus and GASB Statement No. 62 Codification of Accounting and
Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA
pronouncements.
54
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets
"Total fund balances" of the County's governmental funds, $197,026,127 differs from "net assets" of
governmental activities, $702,613,714, reported in the statement of net assets. This difference primarily
results from the long-term economic focus of the statement of net assets versus the current financial
resources focus of the governmental fund balance sheet.
Capital related items
When capital assets (property, plant, equipment, intangibles) that are to be used in governmental
activities are purchased or constructed, the costs of those assets are reported as expenditures in
governmental funds. However, the statement of net assets included those capital assets among the assets
of the County as a whole.
Cost of capital assets $ 756,686,926
Accumulated depreciation (212,363,221)
Net Total 544.323.705
Long-term debt transactions
Long-term liabilities applicable to the County's governmental activities are not due and payable in the
current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-
term) are reported in the statement of net assets.
Balances at September 30, 2011 were:
Bonds payable:
General Obligation Bonds, Series 2001 $ (4,430,000)
Limited General Obligation Bonds, Series 2006 (35,385,000)
Spring Training Facility Bonds, Series 2001 (11,705,000)
Bond premium payable:
Limited General Obligation Bonds, Series 2006 (908,939)
Pollution remediation payable (2,569,200)
Compensated absences (10,724,684)
Total (65.722.8231
Accrued interest
Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds
due to accrued interest on General Obligation Bonds, Series 2001, and Limited General Obligation
Bonds, Series 2006.
448 907
55
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets - Continued
Unearned revenues
Unearned revenues in the statement of net assets differ from the amount reported in governmental funds
due to special assessments. Governmental fund financial statements report revenues, which are
measurable but not available as unearned revenues. However, unearned revenues in governmental funds
are susceptible to full accrual on government -wide financial statements.
Unearned revenues 73 796
Internal service funds
Internal service funds are used by management to charge the costs of fleet management, insurance
activities, and GIS services to individual funds. The assets and liabilities of the internal service funds
are included in governmental activities in the statement of net assets because they primarily serve
governmental activities of the County.
Internal service funds 25.951.709
Accrued grant revenues
Some grant revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund.
Accrued grant revenues959.650
Accrued interest revenues
Some interest revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund.
Accrued interest revenues 260 873
Net OPEB Obli a tion
The net OPEB obligation asset resulting from contributions in excess of the annual required
contribution is not a financial resource; therefore, it is not reported in the fund.
OPEB asset 189 584
Elimination of interfund receivables/payables
Interfund receivables and payables in the amount of $898,202 between governmental funds must be
eliminated for the statement of net assets.
56
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
B. Explanation of Differences Between Governmental Fund Operating Statements and the
Statement of Activities
The "net change in fund balances" for governmental funds, ($4,957,891), differs from the "change in
net assets" for governmental activities, $3,630,779 reported in the statement of activities. The
differences arise primarily from the long-term economic focus of the statement of activities versus the
current financial resources focus of the governmental funds. The effect of the differences is illustrated
below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the
resources expended for those assets are reported as expenditures in governmental funds. However, in
the statement of activities, the costs of those assets are allocated over their estimated useful lives and
reported as depreciation expense. As a result, fund balances decrease by the amount of financial
resources expended, whereas net assets decrease by the amount of depreciation expense charged for the
year.
Capital outlay $ 26,732,809
Depreciation expense (18,494,913)
Transfers to business -type activities (643,144)
Capital contributions 264,710
Loss on assets (109,833)
Difference 7.749.629
Long-term debt transactions
Payments of bond principal, bond premium, and pollution remediation costs are reported as an
expenditure in the governmental funds and, thus, have the effect of reducing fund balance because
current financial resources have been used. However, the payments reduce the liabilities in the
statement of net assets and do not result in an expense in the statement of activities.
Bond principal payments made $ 4,270,000
Bond premium payments made 93,224
Pollution remediation costs (71,000)
Total S 4.292.224
Governmental funds report interest and OPEB expenditures based on when they are paid. The statement
of activities reports interest expense as it is incurred. This is the net number of the previous year accrual
and the current year accrual.
Net accrued OPEB expense $ (130,146)
Net accrued bond interest payable 36,260
Total (93.886)
57
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
B. Explanation of Differences Between Governmental Fund Operating Statements and the
Statement of Activities - Continued
Long-term debt transactions — Continued
Some expenses reported in the statement of activities do not require the use of current financial
resources; therefore, are not reported as expenditures in governmental funds.
Net change in compensated absences 573 108
Special assessment revenues
Revenues collected on special assessments are reported in the governmental funds. However, in the
statement of activities, the assessment revenues are recognized when they are earned.
Special assessment revenues (21,72=6)
Internal service funds operating gain
The assets and liabilities of the internal service funds are included in governmental activities in the
statement of net assets because they primarily serve governmental activities of the County. The net
costs of the internal service funds are reported with governmental activities.
Internal service funds operating gain $1,839,206
Accrued grant revenues
Some grant revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund. This number is a net number of prior year accrual
and current year accrual.
Net accrued grant revenues (4,563,078)
Accrued interest revenues
Some interest revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund. This number is a net number of prior year accrual
and current year accrual.
Net accrued interest revenues $(40,521)
Reclassification and Eliminations
The governmental funds recognize revenues in the amount of $2,178,791 for the general administrative
charges to the general government, public safety, transportation, culture/recreation, and court related
functions. These revenues and expenditures must be eliminated to avoid double counting. Transfers in
and transfers out in the amount of $8,918,267 between governmental activities should be eliminated.
Capital projects costs in the amount of $5,825,287 must be distributed to the related expenditure
functions.
W.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgets and Budgetary Accounting
The County uses the following procedures in establishing the budgetary data reflected in the financial
statements:
(1) The constitutional officers submit, at various times, to the Board and to certain divisions within
the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the
means of financing them, as set forth in Chapter 129 of the Florida Statutes.
(2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for
the Tax Collector and the Property Appraiser included in the General Fund.
(3) Constitutional officers, all departments controlled by the Board, and outside state and local
agencies submit their proposed budgets to the Office of Management and Budget for assistance, review
and compilation. The County Administrator then reviews all County departments, state agencies and
nonprofit organization's budgets and makes his budget recommendation to the Board.
(4) On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board's designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means
of financing them. The Board then holds workshops to review the tentative budget by fund on a
departmental level.
(5) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public hearing,
the Board enacts ordinances to legally adopt the budgets at the fund level for all but two nonmajor
governmental funds, the Supervisor of Elections Special Revenue Fund and the Disaster Recovery
Grants Fund. The budgets legally adopted by the Board set forth the anticipated revenues by source
and the appropriations by function.
(6) Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the County. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the total
appropriations of a fund. Board approval to amend the budget is only required when unanticipated
revenues are received that management wishes to have appropriated, thereby increasing the total
appropriations of a fund.
(7) Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
(8) Appropriations for the County lapse at the close of the fiscal year.
59
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 - CASH AND CASH EQUIVALENTS
The County maintains a cash and investment pool that is available for use by all funds except those
whose cash and investments must be segregated due to bond covenants or other legal restrictions.
A. Deposits
At September 30, 2011, the carrying amount of the primary government's deposits was $24,020,955
and the bank balance was $27,567,107. The County's policy requires all deposits with financial
institutions to be 100% insured by federal depository insurance or by collateral provided by qualified
public depositories to the State Treasurer, in accordance with Chapter 280, Florida Statutes also known
as the Florida Security for Public Deposits Act. The Act established a Trust Fund, maintained by the
State Treasurer, which is a multiple financial institution pool with the ability to assess its member
financial institutions for collateral shortfalls if a member fails.
B. Accrued Interest
Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and
investment pools and then allocated to each fund based on each fund's average monthly balance. As of
September 30, 2011, accrued interest for the County's portfolio totaled $318,844. The remaining
accrued interest is reflected in utilities and road paving assessments.
C. Investments
On August 12, 2008, the County, with the exception of the Tax Collector and the Clerk of the Circuit
Court, updated their investment policy pursuant to Section 218.415, Florida Statutes, which established
permitted investments, asset allocation limits, issuer limits, credit ratings requirements and maturity
limits to protect the County's cash and investments. The Tax Collector adopted a formal investment
policy in February 2005, and revised the policy in November 2009 and August 2011. The Clerk of the
Circuit Court and Comptroller (Clerk) elected not to adopt a formal investment policy and selected the
alternative investment guidelines as provided by Florida Statutes subsection 17, 218.415.
•1
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
As of September 30, 2011, the County had the following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value InYears Percentage Risks*
Fixed Rate Debt Instruments:
U.S. Treasuries
U. S. Agencies: * * *
Federal Farm Credit Bureau
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal National Mortgage Assoc.
Other Fixed Rate Investments:
Florida PRIME (Formerly Fund A)
Fund B Surplus Funds Trust Fund
Florida Local Government
Investment Trust Fund
Other Market Rate Investments:
Regions Bank Money Market
Suntrust Bank NOW Account
Florida Trust Day to Day Fund
Certificate of Deposit
Certificate of Deposit
Fidelity American US Treas. Fund
W&S SinkinL- Fund Reserve:
Treasury Bills/Note
Federal Home Loan Bank
$ 99,264,382
1.04
33.06
% N/A
39,215,167
1.39
13.06
AA+
50,091,446
1.00
16.68
AA+
18,991,294
1.41
6.32
AA+
36,996,709
0.65
12.32
AA+
142,678
0.08
0.05
AAAm
554,425
4.82
0.18
Not Rated
AAAf and
9,960,868
0.08
3.32
S-1**
13,897,326
0.08
4.63
N/A
7,567,072
0.08
2.52
N/A
17,678,067
0.08
5.89
AAAm
251,880
0.50
0.08
N/A
252,512
1.00
0.08
N/A
3,066
0.08
0.00
AAAm
3,724,922 0.98 1.24
1,678,826 0.39 0.57
Fidelity Institutional Money Market 11,200 0.08 0.00
Total Fair Value $ 300,281,840 100.00 %
0.90
* Ratings based upon Standard and Poor's
* * AAAf credit quality, S-1 Market Volatility
*** The weighted calculation considers the investments are carried until full maturity
(i.e. call dates are not considered).
61
N/A
AA+
AAAm
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Florida PRIME (formerly known as the Local Government Surplus Funds Trust Investment (SBA)
Fund A) is a money market fund classified as a "2a-7 like fund" using the SEC investment requirements
for 2a-7 funds. The fund was established by Florida Statute 218.405 and is administered by the Florida
State Board of Administration. At September 30, 2011, the County had $732,555 invested in Fund B
Surplus Funds Trust Fund, a fluctuating net asset value pool. The State Board of Administration (SBA)
determined a negative fair market value adjustment of 24.32% of the portfolio balance, or $178,130,
was needed to represent the fair market value of the participation. Consequently, the net investment in
Fund B is reported at $554,425.
The Florida Local Government Investment Trust Fund is a pool of various securities with maturities of
less than five years. The fund was established by Florida Statute 163.01, is administered by the Florida
Association of Court Clerks, and is marked to market daily.
Interest Rate Risk
The County's investment policy limits interest rate risk by attempting to match investment maturities
with known cash needs and anticipated cash flow requirements. All investments must have stated
maturities of ten (10) years or less and no more than 25% of the portfolio shall be invested in
instruments with stated final maturities greater than five (5) years. The portfolio shall have securities
with varying maturity and at least 10% of the portfolio shall be invested in readily available funds. All
constitutional officers with the exception of the Tax Collector follow this policy. The Tax Collector's
policy is to limit maturities to 12 months or less and maintain 95% of the portfolio in readily available
funds.
Credit Risks
Florida Statutes Section 218.415 and the County's investment policy limit investments to the following:
1. Direct obligations of the United States Treasury;
2. Florida PRIME (formerly known as Fund A) and Fund B Surplus Funds Trust Fund (Fund B);
3. Florida Local Government Investment Trust Fund;
4. Interest-bearing time deposits or savings in qualified public depositories as defined in Section
280.02 Florida Statutes;
5. Federal agencies and instrumentalities;
6. Securities of, or other interests in, any open-end or closed-end management -type investment
company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss.
80a-1 et seq., as amended from time to time, provided that the portfolio of such investment
company or investment trust is limited to obligations of the United States Government or any
agency or instrumentality thereof and to repurchase agreements fully collateralized by such
United States Government obligations, and provided that such investment company or investment
trust takes delivery of such collateral either directly or through an authorized custodian;
62
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Credit Risks - Continued
7. Securities and Exchange Commission registered money market funds with the highest credit
quality rating from a nationally recognized rating agency;
8. Repurchase agreements with a term of one year or less collateralized by direct obligations of the
United States Government which have maturities of three (3) years or less and a market value
103% or more of the repurchase amount.
Currently, Fund B participants are permitted to withdraw scheduled amounts as assets become liquid.
Full realization of the principal value of Fund B assets is uncertain and dependent upon the
collateralized securities underlying each holding and is contingent upon future market conditions.
Concentration Risk
The Indian River County Board of County Commissioners and the Tax Collector follow their own
investment policies. Both policies have established asset allocation and issuer limits to reduce
concentration of credit risk. Their investments are stated at fair value.
The Board's investment policy does not allow for more than 20% of the entire portfolio to be invested
in any one issuer, with the exception of United States Treasury Obligations and state authorized pools.
No more than 10% of the portfolio may be placed in certificates of deposit (CD) and no more than $3
million of the portfolio may be placed in certificates of deposit with any one financial institution. No
more than 5% of the portfolio may be placed in any one money market fund, mutual fund, or
intergovernmental investment pool.
The Tax Collector's investment policy limits portfolio composition to the following maximum
guidelines:
Local Government Surplus Funds Trust Fund 95%
Florida Trust Day to Day Fund 95%
Direct Obligations of the U.S. Government 25%
Money Market, CD's, and Savings Accounts 50%
Securities & Exchange Commission Money Funds 25%
Bank Super NOW Accounts 95%
Bank Repo Agreements 50%
United States Government Agencies 25%
The Clerk's investment in the Florida Trust Day to Day Fund of $3.738 million, the Tax Collector's
investment of $25,204, and the Board's investment of $13.915 million have a combined total of
$17.678 million.
63
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Custodial Credit Risk
The Board's investment policy pursuant to Section 218.415 (18), Florida Statutes requires securities to
be registered and shall be held with a third parry custodian and all securities purchased by, and all
collateral obtained by, the Board shall be held in the name of the Board. The securities must be held in
an account separate and apart from the assets of the financial institution. As of September 30, 2011, the
County's investment portfolio in U.S. Treasuries, U.S. Agencies, and money market fund, was held by
The Bank of New York/Mellon with the exception of the following: the SunTrust NOW account, the
Regions Bank Money Market, CenterState Bank certificates of deposit, and the Florida Trust Day to
Day Fund. The Florida Trust Day to Day Fund was held by UMB Bank,
D. OPEB Trust Investments
Funds are held in the name of the Indian River County OPEB Trust (IRCOT), an irrevocable trust, by a
third parry custodian, Bank of New York/Mellon. The investments are reported at fair value based
upon market -close price on the last business day of each month.
The County approved a separate investment policy for the IRCOT assets on February 3, 2009 (amended
on May 12, 2009). The County adopted a broadly diversified portfolio composition consisting of
equity, debt, and cash and cash equivalents. Asset allocations are divided between short-term and long-
term investments. Short-term asset allocations include cash and cash equivalents with maturities of 180
days or less. Long-term asset allocations range from 0-60% for equities, 0-60% for fixed income
securities, and 0-100% for cash and cash equivalents.
M.i
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
D. OPEB Trust Investments - Continued
The contribution of $2.82 million for the year ended September 30, 2011 was invested in the various
funds listed below. As of September 30, 2011, the Indian River County OPEB Trust (IRCOT) had the
following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value InYears Percentage Risks*
Short -Term Portion:
Fidelity Treasury Money Market $ 1,496,119 0.12 17.70 % AAAm
Long -Term Portion:
Vanguard 500 Index
1,552,052
N/A
18.36
N/A
Vanguard All World Ex -US
1,174,299
N/A
13.89
N/A
Vanguard Mid Cap Index
335,441
N/A
3.97
N/A
Vanguard Small Cap Index
164,898
N/A
1.95
N/A
Vanguard Short -Term Treasury
1,768,214
2.60
20.92
AA+
Vanguard Intermediate Treasury
1,230,290
5.40
14.56
AA+
Vanguard Prime Money Market
525,143
0.16
6.21
A-1
Vanguard Federal Money Market
205,544
0.15
2.44
A-1
Total Fair Value $
8,452,000
100.00 %
* Ratings based upon Standard and Poor's
NOTE 5 - PROPERTY TAX REVENUES
Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal
year starting October 1. Property tax revenues recognized for the 2010-2011 fiscal year were levied in
October 2010. All taxes are due and payable on November 1 or as soon as the assessment roll is
certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4%
in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without
discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via
the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at
fiscal year end.
65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 6 - CAPITAL ASSETS
A. Governmental Activities
Primary Government
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Right-of-way
Intangibles
Infrastructure
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and improvements
Equipment
Intangibles
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and improvements
Equipment
Intangibles
Infrastructure
Total accumulated depreciation
Beginning
Ending
Balance
Additions
Deletions
Balance
$ 138,413,559 $
- $
(25,000) $
138,388,559
43,708,168
17,321,671
(17,003,713)
44,026,126
48,989,397
4,751,124
-
53,740,521
554,456
-
-
554,456
3,575,067
-
-
3,575,067
235,240,647
22,072,795
(17,028,713)
240,284,729
186,433,065
744,123
-
187,177,188
56,528,883
3,986,214
(1,416,698)
59,098,399
2,599,955
283,908
-
2,883,863
251,862,449
16,400,540
-
268,262,989
497,424,352
21,414,785
(1,416,698)
517,422,439
(33,706,183)
(5,342,863)
-
(39,049,046)
(31,058,776)
(3,314,770)
1,409,213
(32,964,333)
(800,794)
(1,367,268)
-
(2,168,062)
(130,063,345)
(8,733,142)
-
(138,796,487)
(195,629,098)
(18,758,043)
1,409,213
(212,977,928)
Total capital assets, being depreciated, net 301,795,254 2,656,742 (7,485) 304,444,511
Governmental activities capital assets, net $ 537,035,901 $ 24,729,537 $ (17,036,198) $ 544,729,240
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 6 - CAPITAL ASSETS — Continued
A. Governmental Activities - Continued
Depreciation expense, which includes amortization expense on intangible assets, was charged to the
functions/programs of the primary government's governmental activities as follows:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Culture/recreation
Court related
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
Total depreciation expense — governmental activities
67
$ 3,167,052
2,822,534
563,409
6,084,233
937
139,976
5,729,270
97,336
153,296
18.758.043
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 6 - CAPITAL ASSETS — Continued
B. Business -type Activities
Primary Government
Business -type activities:
Capital assets, not being depreciated:
Land $
Intangibles
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Beginning
Balance Additions
19,312,400 $
1,288,410
9,270,970
29,871,780
408,355,013
402,133
18,794,461
427,551,607
(165,486,630)
(401,122)
(15,447,249)
(181,335,001)
1,218,032$
99,969
6,872,593
8,190,594
4,453,232
500,374
918,902
5,872,508
(14,822,503)
(6,400)
(894,970)
(15,723,873)
246,216,606 (9,851,365)
Deletions
(5,803,425)
(5,803,425)
(8,945)
(2,140)
(5,364,985)
(5,376,070)
1,783
3,885,529
3,887,312
(1,488,758)
Ending
Balance
20,530,432
1,388,379
10,340,138
32,258,949
412,799,300
900,367
14,348,378
428,048,045
(180,309,133)
(405,739)
(12,456,690)
(193,171,562)
234,876,483
Business -type activities capital assets, net $ 276,088,386 $ (1,660,771) $ (7,292,183) $ 267,135,432
Depreciation expense, which includes amortization expense on intangible assets, was charged to the
functions/programs of the primary government's business -type activities as follows:
Solid Waste Disposal District
Golf Course
County Utilities
County Building
Total depreciation expense — business -type activities
.:
$ 987,673
122,977
14,602,614
10,609
15.723.873
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 7 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS
Various bond covenants, resolutions, and state regulations require that the County restrict cash and cash
equivalents and investments within the business -type activities. Restricted cash and cash equivalents
and investments are as follows:
Primary Government
Solid Waste
Disposal Golf County
District Course Utilities Total
Sinking funds $
- $
470,664 $ 6,159,070 $
6,629,734
Renewal and replacement
3,347,112
- 3,485,928
6,833,040
Customer deposits
127,141
- 2,471,418
2,598,559
Capital construction
-
- 14,221,313
14,221,313
Closure and maintenance costs
10,016,236
- -
10,016,236
Total $
13,490,489 $
470,664 $ 26,337,729 $
40,298,882
Cash totaling $14,220,716 is reported as restricted on the Statement of Net Assets for governmental
activities. Of that amount, $6,220,716 is restricted for current liabilities such as retainage payable,
accrued interest payable, and the current year portion of bonds payable. The remaining $8,000,000 is
restricted for future payments to a local aircraft manufacturer as part of an incentive agreement to retain
the company in Vero Beach.
NOTE 8 - PAYABLE FROM RESTRICTED ASSETS
Liabilities payable from the County's business -type activities restricted assets are as follows:
Accounts payable
Retainage payable
Accrued interest payable
Bonds payable (current)
Closure and maintenance
costs payable
Customer deposits
Total
Solid Waste
Disposal Golf
District Course
8,580
- 535,000
County
Utilities
Total
287,331 $
287,331
136,260
136,260
182,787
191,367
3,090,000
3,625,000
10,016,236 - - 10,016,236
127,141 - 2,477,787 2,604,928
$ 10,143,377 $ 543,580 $ 6,174,165 $ 16,861,122
69
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 9 - INTERFUND BALANCES
Interfund balances at September 30, 2011, consisted of the following:
Receivable Fund
General Fund
General Fund
General Fund
Payable Fund Amount
Nonmajor Governmental Funds $ 272,000
Golf Course Enterprise Fund 52,604
Fleet Internal Service Fund 190,000
$ 514,604
In October 2010, the General Fund loaned $ 333,050 to the Golf Course Fund to purchase new golf
carts. The amount reported as due from the Golf Course Fund is the current portion of the scheduled
payments due to the General Fund in fiscal year 2012. The remaining amount due from the Golf
Course Fund is reported as an interfund advance. The amounts due from the Fleet Internal Service Fund
and the Nonmajor Governmental Funds represent short-term cash loans that will be repaid within the
next twelve months.
Receivable Fund Payable Fund Amount
Major Governmental Fund:
Emergency Services District Fund General Fund $ 260,414
Major Enterprise Fund:
Solid Waste Disposal District Fund
General Fund
$
96,850
Nonmajor Governmental Funds:
Land Acquisition Bonds Fund
General Fund
$
75,290
Street Lighting Districts Fund
General Fund
2,406
Vero Lake Estates Fund
General Fund
1,230
East Gifford Stormwater Fund
General Fund
12
Total Nonmajor Governmental Funds
$
78,938
Total:
$
436,202
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2011.
Interfund advances at September 30, 2011, consisted of the following:
Receivable Fund
Secondary Roads Construction Fund
General Fund
Payable Fund Amount
Golf Course Fund $ 510,000
Golf Course Fund 242,751
$ 752,751
These amounts are considered long-term advances between major funds expected to be paid over the
course of several years. These amounts have been presented as nonspendable on the General and
Secondary Roads Construction Funds Balance Sheets.
70
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 10 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2011, consisted of the following:
Transfers Out:
General Fund
Emergency
Services District
Fund
Nonmajor
Governmental
Funds
Transfers In:
Nonmajor
General Transportation Governmental Internal Service
Fund Fund Funds Fund Total
$ - $ 7,953,026 $ 118,809 $ 55,298 $ 8,127,133
402,837 - - - 402,837
317,632 - 70,665 - 388,297
Total $ 720,469 $ 7,953,026 $ 189,474 $ 55,298 $ 8,918,267
Transfers are used for the following purposes: 1) use unrestricted general fund revenues to finance
transportation activities which must be accounted for in a special revenue fund, 2) use unrestricted
general fund revenues for beach restoration activities which must be accounted for in another fund, 3)
provide matching funds for grants, 4) move revenues from the fund that state law requires to collect
them to the fund that state law requires to expend them, and 5) use unrestricted general fund revenues to
offset a portion of salaries and benefits expenses for an employee accounted for in the health insurance
fund.
NOTE 11 — DUE FROM OTHER GOVERNMENTS
Governmental Funds
On November 18, 2008, the Board entered into a locally funded agreement with the Florida Department
of Transportation (FDOT) to advance the six-laning of State Road 60 from 82nd Avenue to I-95
(Segment Two). The agreement obligated the Board to pay $14,429,754 to the FDOT. Payment was
made in November 2008 to the FDOT. Funding was from the Optional Sales Tax Fund.
Reimbursement by the FDOT for Segment Two will be in ten quarterly installments over a three-year
period which began in July 2011. Repayments to the Board will include principal and any accumulated
interest earnings that have not been used for supplemental costs of the project.
71
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11– DUE FROM OTHER GOVERNMENTS - Continued
Governmental Funds - Continued
Segment Two Amount Advance Funded
Less: Reimbursements received as of 9/30/2011
Balance Due from FDOT SR60 Agreement
Additional Funds Due from other governments
Total Due from other governments
NOTE 12 – ACCOUNTS PAYABLE
Payables
Payables at September 30, 2011, were as follows:
Governmental Activities:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Optional Sales Tax
Other governmental
Total Governmental Activities
Business -Type Activities:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Payable from restricted assets:
Utilities
Total Business -Type Activities
Vendors
$ 1,529,293
747,711
688,779
132,818
438,263
903,954
815,991
5.256.809
Optional Sales
Tax Fund
$ 14,429,754
(500,000)
13,929,754
1,213,941
$ 15,143,695
Salaries and
Benefits
—
$ 1,255,225
17,616
774
23,032
66,917
15,513
1.379.077
Total
Payables
$ 2,784,518
765,327
689,553
155,850
505,180
903,954
831,504
6.635.886
$ 989,811
$ 1,782
$ 991,593
24,508
1,867
26,375
513,153
23,375
536,528
3,532
3,295
6,827
287,331
-
287,331
1.818.335
S 30.319
1.848.654
The County has not engaged in any short-term debt activity during fiscal year 2011 other than that
listed in Note 9.
Due To Other Governments – Utilities Fund
On August 25, 2010, the County received notification from the State Division of Emergency
Management that a repayment of $2,827,524 may be due to the Federal Emergency Management
Agency (FEMA) for disallowed costs related to a sewer project. The County has appealed FEMA's
decision. As of September 30, 2011, the County recorded these costs as a liability, Due to Other
Governments, in the Utilities proprietary fund while awaiting FEMA's response to the appeal.
72
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES
A. Changes in Long-term Liabilities
Long-term liability activity for the year ended September 30, 2011, was as follows:
Governmental Activities:
Bonds payable:
Limited General Obligation Bonds -
Series 2006
General Obligation Bonds — Series 2001
Spring Training Facility Revenue Bonds -
Series 2001
Subtotal
Add: Unamortized bonds premium
Total bonds payable
Other liabilities:
Pollution remediation
Claims payable
Compensated absences
Total other liabilities
Governmental activities long-term liabilities
Business -type Activities:
Bonds payable:
Recreational Refunding Revenue Bonds -
Series 2003
Water & Sewer Refunding Revenue Bonds -
Series 1993A
Series 2005
Series 2009
Subtotal
Add: Unamortized bonds premium
Less: Unamortized bonds discount
Total bonds payable
Other liabilities:
Landfill closure and maintenance costs
Pollution remediation
Compensated absences
Total other liabilities
Business -type activities long-term liabilities
Beginning
$ 38,270,000 $
Due
Ending Within
Additions Retirements Balance One Year
- $ 2,885,000 $ 35,385,000 $ 3,000,000
5,210,000
780,000
4,430,000
810,000
12,310,000
605,000
11,705,000
630,000
55,790,000
4,270,000
51,520,000
4,440,000
1,002,163
93,224
908,939
-
56,792,163
-
4,363,224
52,428,939
4,440,000
2,498,200
71,000
-
2,569,200
136,373
7,899,000
12,901,425
12,923,425
7,877,000
2,395,278
10,198,660
7,533,952
6,964,127
10,768,485
5,916,426
20,595,860
20,506,377
19,887,552
21,214,685
8,448,077
$ 77,388,023 $
20,506,377 $
24,250,776 $
73,643,624 $
12,888,077
$ 3,175,000 $
$ 520,000 $ 2,655,000 $ 535,000
1,555,000
1,555,000
-
-
21,925,000
1,435,000
20,490,000
1,480,000
26,370,000
-
26,370,000
1,610,000
53,025,000
3,510,000
49,515,000
3,625,000
3,166,507
236,904
2,929,603
-
(27,386)
(4,629)
(22,757)
-
56,164,121
3,742,275
52,421,846
3,625,000
9,518,736
497,500
-
10,016,236
-
41,600
23,400
-
65,000
17,720
1,027,790
679,872
886,584
821,078
667,833
10,588,126
1,200,772
886,584
10,902,314
685,553
$ 66,752,247 $
1,200,772 $
4,628,859 $
63,324,160 $
4,310,553
73
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government
Governmental Activities
Annual Debt Service Payments - Governmental Activities
The annual debt service payments for bonds outstanding at September 30, 2011, are as follows:
Fiscal Year
Limited General
Ending
Obligation Bonds
September 30
Series 2006
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
General Obligation
Spring Training Facility
Refunding Bonds
Revenue Bonds
Series 2001
Series 2001
Principal
Interest
Principal
Interest
Principal
Interest
$ 3,000,000
$1,612,263
$ 810,000
$ 183,368
$ 630,000
$ 593,423
3,120,000
1,492,263
845,000
151,778
655,000
566,333
3,255,000
1,367,463
885,000
117,977
685,000
537,513
3,390,000
1,204,712
925,000
80,807
725,000
501,550
3,545,000
1,035,212
965,000
41,495
760,000
463,487
19,075,000
2,667,762
-
-
4,435,000
1,676,412
-
-
-
-
1,695,000
793,000
-
-
-
-
2,120,000
324,750
35,385,000
9,379,675
4,430,000
575,425
11,705,000
5,456,468
3,000,000
-
810,000
-
630,000
-
908,939 - - - - -
$ 33,293,939 $ 9,379,675 $ 3,620,000 $575,425 $ 11,075,000 $ 5,456,468
74
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Limited General Obligation Bonds
Purpose — On July 6, 2006, the County issued $48,600,000 of Limited General Obligation Bonds,
Series 2006. The issuance of the Series 2006 bonds was approved by a majority of votes cast in a bond
referendum held on November 2, 2004, by the qualified electors of the County. The referendum
authorized a total of $50,000,000 aggregate principal amount of limited general obligation bonds. The
proceeds of this issue will provide funds to acquire interest in lands to protect water resources and/or
drinking water sources, environmentally sensitive lands, historic sites, and/or agricultural lands together
with the necessary preservation, restoration, remediation and reclamation activities to preserve, protect,
or enhance such property.
Pledge of revenues — The principal and interest on the bonds are payable from ad valorem taxes not
exceeding %2 mil and having a maturity not exceeding fifteen years, which are levied by the County
upon the taxable real and personal property of the County.
Bonds Issued - At September 30, 2011, Limited General Obligation Bonds consisted of the following:
Interest
Rates and
Outstanding at
September 30,
Description Date Maturity Issue 2011
Limited General Obligation 4.00%-5.00%
Bonds, Series 2006 1/1 and 7/1 2021 $ 48,600,000 S 35,385,000
Optional Redemption — The Limited General Obligation Bonds, Series 2006, maturing on or after July
1, 2017, are subject to redemption prior to maturity, at the option of the County on and after July 1,
2016, in whole or in part, at any time, on any date at a redemption price of 100% of the principal
amount thereof, together with accrued interest thereon to the redemption date.
General Obligation Bonds
Purpose - On November 29, 2001, the County issued the additional $11,000,000 of General Obligation
Bonds, Series 2001. The issuance of the Series 1995 bonds and the Series 2001 bonds were approved
by a majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of
the County. The referendum authorized a total of $26,000,000 aggregate principal amount of general
obligation bonds, in one or more series, of which the Series 1995 bonds are the first (in the amount of
$15,000,000) and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to
acquire environmentally sensitive lands, together with the necessary restoration, remediation and
reclamation activities to preserve and enhance such property.
75
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
General Obligation Bonds - Continued
On July 1, 2003, the County issued $7,800,000 of General Obligation Refunding Bonds, Series 2003.
The bonds were issued to provide funds, together with $600,000, to refund and redeem the entire
outstanding principal amount of the County's $15,000,000 General Obligation Bonds, Series 1995.
Proceeds of the bonds will also be used to pay the cost of issuance of the bonds, including the
premiums for guaranty insurance.
Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied
by the County upon the taxable real and personal property of the County and are pledged for the
remaining term of the bonds.
Bonds Issued - At September 30, 2011, General Obligation Bonds consisted of the following:
Interest
Rates and
Outstanding at
September 30,
Description Date Maturity Issue 2011
General Obligation Bonds, 2.50%-4.30%
Series 2001 1/1 and 7/1 2016 $ 11.000.0004.430.000
Optional Redemption - The General Obligation Bonds, Series 2001, maturing on or after July 1, 2013,
are subject to redemption prior to maturity, at the option of the County on and after July 1, 2012, in
whole or in part, at any time, on any date at par plus accrued interest plus a premium ranging between
0% to I% depending on the year of redemption.
Please refer to the Subsequent Event Note 24 for an early call announcement of these bonds.
Spring TrainingFacility Revenue Bonds
Purpose - On August 15, 2001, the County issued $16,810,000 of Spring Training Facility Revenue
Bonds, Series 2001. The Series 2001 bonds are being issued by the County to provide funds, together
with other available funds, to (1) finance a portion of the cost of acquisition and expansion of a spring
training facility currently known as "Vero Beach Sports Village (formerly known as Dodgertown)"; (2)
pay a premium for a municipal bond insurance policy and a debt service reserve account surety bond,
and (3) pay certain costs and expenses incurred in connection with the issuance of the Series 2001
bonds.
76
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Spring TrainingFacility Revenue Bonds - Continued
Pledge of Revenues - The principal and interest on the Series 2001 bonds will be payable from and
secured by a first lien upon and pledge of the following, together with any investment income realized
on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund:
(1) Payments received by the County from the State of Florida pursuant to Section 212.20, Florida
Statutes; and
(2) The Fourth Cent Tourist Development Tax levied by the County in Ordinance No. 2000-029,
enacted pursuant to Section 125.0104(3)(1), Florida Statutes; and
(3) Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the County,
pursuant to Chapter 218, Part VI, Florida Statutes.
The foregoing are collectively referred to herein as the "pledged revenues". These revenue streams are
pledged for the remaining term of the bonds.
The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to
the payment of debt service on the Series 2001 bonds are automatically released as a pledged revenue
for the Series 2001 bonds immediately following the April 1, 2021 principal payment on the Series
2001 bonds.
The current principal and interest payments of $1,223,432 represent eighteen percent of total pledged
revenues. All three revenue sources totaled $6,967,824 for the current fiscal year. The County applied
100% of the first two pledged revenue sources and six percent of the Half -Cent Sales Tax to the debt
service payments. The total principal and interest remaining to be paid on the bonds is $17,161,468.
Bonds Issued - At September 30, 2011, Spring Training Facility Revenue Bonds consisted of the
following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2011
Spring Training Facility Revenue 3.30%-5.25%
Bonds, Series 2001 4/1 and 10/1 2031 $ 16,810,000 11.705.000
77
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring TrainingFacility Revenue Bonds - Continued
Optional Redemption - The Series 2001 bonds maturing on or after April 1, 2012, were subject to
redemption at the option of the County in whole or in part, on April 1, 2011, or on any date thereafter at
par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of the
redemption.
Mandatory Redemption - The Series 2001 Term Bonds are subject to mandatory redemption prior to
maturity, by lot, at par plus accrued interest, according to the following schedule:
Term Bonds due April 1, 2015
Date Principal Amount
April 1, 2014 $ 685,000
April 1, 2015 725,000
Term Bonds due April 1, 2017
Date Principal Amount
April 1, 2016 $ 760,000
April 1, 2017 795,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 840,000
April 1, 2019 890,000
April 1, 2020 930,000
April 1, 2021 980,000
Term Bonds due April 1, 2027
Date
Principal Amount
April 1, 2022
$ 305,000
April 1, 2023
320,000
April 1, 2024
340,000
April 1, 2025
355,000
April 1, 2026
375,000
April 1, 2027
390,000
Term Bonds due April 1, 2031
Date Principal Amount
April 1, 2028 $ 410,000
April 1, 2029 430,000
April 1, 2030 455,000
April 1, 2031 435,000
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Business -type Activities
Annual Debt Service Payments — Business -type Activities
The annual debt service payments for bonds outstanding at September 30, 2011 are as follows:
Fiscal Year
Ending
September 30
2012
2013
2014
2015
2016
2017-2021
2022-2026
Total
Less:
Current portion
Unamortized
bond discount
Add:
Unamortized
bond premium
Total
Recreational
Revenue Refunding
Bonds Series 2003
Principal Interest
$535,000 $102,964
555,000 83,169
580,000 62,356
600,000 39,881
385,000 15,881
2,655,000 304,251
535,000 -
Water and Sewer
Revenue Refunding
Bonds Series 2005
Principal
Interest
$ 1,480,000
$925,250
1,530,000
877,150
1,605,000
800,650
1,670,000
736,450
1,750,000
652,950
10,145,000
1,878,300
2,310,000
92,400
20,490,000
5,963,150
1,480,000 -
Water and Sewer
Revenue Refunding
Bonds Series
2009
Principal
Interest
$ 1,610,000 $ 1,268,200
1,675,000
1,203,800
1,745,000
1,136,800
1,815,000
1,067,000
1,905,000
976,250
11,050,000
3,353,750
6,570,000
596,500
26,370,000
9,602,300
1,610,000 -
22,757 - - - - -
- - 671,967 - 2,257,636 -
$2,097,243 $304,251 $19,681,967 $5,963,150 $ 27,017,636 $9,602,300
Recreational (Golf Course) Revenue Refunding Bonds, Series 2003
Purpose - On October 15, 2003, the Series 2003 bonds were issued to redeem $6,735,000 of the
County's outstanding Recreational Revenue Bonds, Series 1993. The Series 2003 bonds are being
issued by the County to provide funds, together with $583,790, to retire all of the outstanding 1993
Series bonds and to pay for all bond issuance costs. The previous bonds were issued to build a County -
owned golf course.
The aggregate difference in debt service between the Series 1993 debt ($9,284,290) and Series 2003
debt ($8,060,911) is $1,223,379. The net economic gain was $348,450.
79
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Recreational (Golf Course) Revenue Refunding Bonds, Series 2003 - Continued
Pledge of Revenues - The revenue bonds are secured by liens, for the remaining term of the bonds, in
the following order: (1) the net revenues derived from the operations of the golf course, (2) one hundred
percent of racetrack and Jai Alai Fronton funds, and (3) seven percent of the half -cent sales tax accruing
annually to the County.
The financial strength of our municipal bond insurer, AMBAC, was downgraded to Baal in November
2008. This downgrade required the County to fully cash fund the debt service reserve. The County
elected to pledge the Racetrack and Jai Alai Fronton funds to meet this bond covenant. The total annual
amount of the required debt service reserve is $417,500 was cash funded.
The current principal and interest payments of $639,864 represent sixty-nine percent of net revenues
($923,691) of the golf course. The total principal and interest remaining to be paid on the bonds is
$2,959,251. All three pledged revenue sources totaled $1,865,448 for the current fiscal year. The
County did not utilize the second and third revenue sources toward the current year principal and
interest payments.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and current year principal and
interest requirements.
Bonds Issued - At September 30, 2011, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturi1y Issue 2011
2003 Recreational Revenue 2.00 — 4.125% 9/1/16 $ 6,455,000 2,655,000
Refunding Bonds 3/1 and 9/1
Optional Redemption - The revenue bonds, maturing on or after September 1, 2014, are subject to
redemption prior to maturity, at the option of the County on and after September 1, 2013, in whole or in
part, at any time thereafter at the redemption price of par, plus interest accrued to the date of
redemption.
01
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Bonds, Series 2005
Purpose - The Series 2005 bonds were issued to defease $31,680,000 of the County's outstanding
Water and Sewer Revenue Bonds, Series 1996. These bonds were issued by the County to provide
funds, together with $5,000,000, to retire 95 percent of the 1996 Series and to pay for all bond issuance
costs. The September 1, 2005 and 2006 principal installments were not subject to early call and
consequently paid at their respective maturity dates. The 1996 bonds were issued to acquire an existing
water and sewer facility, as well as for capital improvements to the existing system.
The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005
($39,619,193) is $966,000. The net economic gain was $2,944,661, which included shortening the term
of the bonds by four years and lowering average annual debt service by $242,000.
Pledge of Revenues - The revenue bonds are collateralized, for the remaining term of the bonds, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and special
assessments.
Annual principal and interest payments of $2,405,800 represent approximately eighteen percent of net
revenues ($13,158,703) of the utility system. The total principal and interest remaining to be paid on
the bonds is $26,453,150.
Rate Covenant — Net revenues shall be sufficient to pay 100% of the reserve account requirement and
120% of the current year's principal and interest payment.
Bonds Issued - At September 30, 2011, the revenue bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2011
Water and Sewer 3-5%
Revenue Refunding Bonds, 3/1 and 9/1 2022 $ 27,675,000 20,490.000
Series 2005
Outstanding In -Substance Defeased Debt - The proceeds from the refunding have been invested in
federal securities and were placed in an escrow account with J.P. Morgan. All of the defeased bonds
($31,680,000) were called on September 1, 2006 at 102% of the outstanding principal amount.
Optional Redemption - The Series 2005 bonds maturing after September 1, 2015, are subject to
redemption by the County on or after September 1, 2015, in whole or in part, at par, plus accrued
interest to date of redemption.
M.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Bonds, Series 2009
Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009,
$28,270,000 of the County's outstanding Water and Sewer Revenue Bonds, Series 1993A. The
refunding excluded debt service payments due September 1, 2010 and 2011.
The aggregate difference in debt service between the Series 1993A ($80,434,415) and Series 2009
($78,755,772) is $1,678,643. The net economic gain was $1,368,427, which lowered average annual
debt service by $126,000.
Pledge of Revenues — The revenue bonds are collateralized, for the remaining term of the bonds, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and special
assessments.
The interest payments of $1,268,200 represent approximately ten percent of net revenues ($13,158,703)
of the utility system. The total principal and interest remaining to be paid on the bonds is $35,972,300.
Rate Covenant —Net revenues shall be sufficient to pay 100% of the reserve account requirement and
120% of the current year's principal and interest payment.
Bonds Issued - At September 30, 2011, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturi Issue 2011
Water and Sewer 4-5%
Revenue Refunding Bonds, 3/1 and 9/1 2024 $ 26,370,00026.370,000
Series 2009
Outstanding In -Substance Defeased Debt - The proceeds from the refunding were invested in federal
securities and were placed in an escrow account with Bank of New York/Mellon. All of the defeased
bonds ($28,270,000) were called on September 1, 2009 at 101% of the outstanding principal amount.
Optional Redemption - The Series 2009 bonds maturing on or prior to September 1, 2019, are not
subject to redemption prior to their respective dates of maturity. The Series 2009 bonds stated to mature
after September 1, 2019, are subject to redemption at the option of the County in whole or, from time to
time, in part on September 1, 2019, at the redemption price of the principal amount to be redeemed,
plus accrued interest to the date of redemption.
M.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 - LONG-TERM LIABILITIES - Continued
C. Summary of Defeased Debt Outstanding
The last installment of the Capital Improvement Revenue Bonds Series 1980 totaling $390,000 was
defeased on October 1, 2010. Since governmental obligations are held in escrow for the payment of
principal and interest, the bonds are not liabilities of the County.
D. Compensated Absences
Both Governmental Activities and Business -type Activities compensated absences are paid by the fund
which normally pays the personnel services costs of the employee.
E. Conduit Debt Obligations
Indian River County issued various Industrial Revenue Bonds over the years which provide financial
assistance to private -sector entities for the acquisition, construction and equipping of industrial and
commercial facilities deemed to be in the public interest. The bonds are secured by the property
financed and are payable solely from payments received on the underlying mortgage loans. Upon
repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served
by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in
any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
NOTE 14 - PROVISION FOR CLOSURE COSTS
Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of
Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final
cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The
SWDD annually obtains updated and revised estimates of total future closure and post -closure costs
from its consulting engineers. The SWDD recognizes the expenses associated with the final closure and
post -closure maintenance of the landfill areas over the active life of those areas. The provision for
closure costs reported in the financial statements as operating expense represents the portion of these
estimated future outlays which are allocable to the current year based on the amount of capacity used.
The total unrecognized closure and post -closure costs are approximately $3.9 million. These costs will
be recognized in future periods as the remaining capacity is filled. The County's policy is to fund 100%
of the current year's allocation (based upon the consulting engineers' report) of both closure and post -
closure care.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 14 - PROVISION FOR CLOSURE COSTS — Continued
Required closure and post -closure sub -accounts:
Capacity Estimated
Used Closing
('lncnrP Crwtc
Amount
Class I - Segments I and II
56%
2030 $
6,501,947
Construction and Demolition - Cell I
89%
2017
1,101,366
Post -closure Costs
Class I - Segments I and II
N/A
N/A
2,238,435
Construction and Demolition - Cell I
N/A
N/A
174,488
Total account balance at 9/30/11:
$
10,016236
All amounts recognized are based on what it would cost to perform all closure and post -closure
functions in current dollars. Actual costs may be different due to inflation, deflation, changes in
technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof
of ability to finance closure and post -closure costs. The SWDD is making annual deposits to a closure
and post -closure cost escrow account to provide for the financing of future closure -related expenses. At
September 30, 2011, $9,960,868 was on deposit at the Florida Local Government Investment Trust and
$55,368 was on deposit in the County's Operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/01/10 Deposits Withdrawals 09/30/11
Closure and long-term care costs9.518.736 $497,500 $ - R0,016.236
Of the $10,016,236 liability for closure and long-term care costs, management estimates that no funds
will be due and payable within one year.
NOTE 15 — POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financial Reporting for Pollution
Remediation Obligations, a consultant evaluated six sites to assess pollution remediation liabilities.
The consultant calculated for each site an expected value (EV) estimate for pollution remediation based
on three plausible mitigation scenarios. An obligating event occurred at each of the following six sites
requiring the County (using the consultant's services) to attempt to accrue a liability for pollution
remediation. The liability totaled $2,634,200 at September 30, 2011 for all six sites. The pollution
remediation obligation is an estimate and subject to changes resulting from price increases and
reductions, technology, and changes in applicable laws or regulations. There are no estimated
recoveries that would reduce the liability.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 15 — POLLUTION REMEDIATION - Continued
Governmental Activities:
1) South Gifford Road closed landfill — The nature of the pollution remediation obligation is
chlorinated solvent contamination. The consultant will conduct monitoring, bioremediation and
reporting with the Florida Department of Environmental Protection (FDEP). The amount of the
estimated year end liability is $2,450,000.
2) Old Administration Building — The nature of the pollution remediation obligation is closed
underground storage tank contamination. The consultant will conduct monitoring and reporting
with the FDEP. The amount of the estimated year end liability is $38,900.
3) Cattle dip site — The nature of the pollution remediation obligation is arsenic contamination.
The consultant will conduct monitoring and assessment. The amount of the estimated year end
liability is $75,300.
4) Former Cumberland Farms — The nature of the pollution remediation obligation is closed
underground storage tank petroleum contamination. The consultant will conduct the well
abandonment and obtain the final No Further Action. The amount of the estimated year end
liability is $5,000.
Total Governmental Activities liability:2 569 200
Business -type Activities:
5) North County Reverse Osmosis plant — The nature of the pollution remediation obligation is
groundwater inorganics contamination. The consultant will conduct monitoring and
assessment. The amount of the estimated year end liability is $43,200.
6) Old Savannah Lift Station — The nature of the pollution remediation obligation is petroleum
impacts (diesel) due to a leaky filter on an emergency generator. The consultant will conduct
monitoring and assessment. The amount of the estimated year end liability is $21,800.
Total Business -type Activities liability: 65 000
Due to the addition of the Old Savannah Lift Station site in fiscal year 2011, beginning net assets for
the Utilities Fund needed to be restated. Please see Note 21-C for information regarding the
restatement of beginning net assets for the proprietary funds as it relates to the pollution remediation
liability. The difference between the Utilities Fund restated beginning net assets of $35,281 and the
liability of $21,800 was expensed during the current year.
MW
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 16 - PENSION PLANS
Florida Retirement System
Plan Description: The County's employees participate in the Florida Retirement System (FRS), a cost-
sharing, multiple -employer public employee retirement system, administered by the Florida Department
of Management Services. Effective July 1, 2011, the FRS became a contributory plan for all members,
except DROP participants, whereby members contribute 3% and employers pay a rate based upon each
member's employment class (regular class 4.91%, senior class 6.27%, and elected official class
11.14%).
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age. Under the Pension Plan, early retirement is available before
reaching normal retirement age and will be subject to an early-retirement reduction of 5% for each year
your age at retirement is under your normal retirement age. For those employees who elect participation
in the Investment Plan rather than the Pension Plan, vesting occurs after one year of service.
Participants have access to the full value of their vested account balance when they leave FRS
employment, regardless of age. These participants receive a defined contribution for self-direction in
an investment product with a third party administrator selected by the State Board of Administration.
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal
years of pay, membership class and the payment option selected at retirement.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP).
This program allows eligible employees to defer receipt of monthly retirement benefit payments while
continuing employment with a FRS employer for a period not to exceed five years after electing to
participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest.
Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines
contribution rates for the various membership classes of the FRS. The FRS issues a publicly available
financial report that includes financial statements, ten-year historical trend information and other
required supplementary information. That report may be obtained by writing to the Florida Department
of Management Services, Division of Retirement, Attention: Research and Education Section, P.O. Box
9000, Tallahassee, Florida 32315-9000, or from the website at www.dms.myflorida.com.
:.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 16 - PENSION PLANS - Continued
Florida Retirement System - Continued
Funding Policy: The FRS has six classes of membership with descriptions and contribution rates in
effect during the period ended September 30, 2011, as follows (contribution rates are in agreement with
the actuarially determined rates):
07/01/06 07/1/10 07/01/11
to 6/30/10 to 6/30/11 to 09/30/11
Regular Class -
Members not qualifying for other classes. 9.85% 10.77% 7.91%
Senior Management Service Class -
Members of senior management who do not elect the
optional annuity management program. 13.12% 14.57% 9.27%
Special Risk Class -
Members employed as law enforcement officers,
firefighters, or correctional officers and meet the criteria
set to qualify for this class. 20.92% 23.25% 17.10%
Special Risk Administrative Support Class -
Special risk members who are transferred or reassigned
to non -special risk and meet the criteria. 12.55% 13.24% 9.04%
Elected County Officer's Class -
Certain elected county officials. 16.53% 18.64% 14.14%
Deferred Retirement Option Program -
Members who are eligible for normal retirement that
have elected to participate in the deferred retirement
option program. 10.91% 12.25% 4.42%
Contributions to the FRS for the fiscal years ended September 30, 2009, 2010, and 2011, were equal to
14.15%, 14.71%, and 14.15% of the annual covered payroll. Contributions to the FRS for the fiscal
years ended September 30, 2009, 2010, and 2011 were $10,734,876, $10,736,848, and $9,810,332
respectively, which are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $455,378.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN
A. Plan Description
The Indian River County OPEB Trust (IRCOT) was established by resolution on September 23, 2008
for the Board of County Commissioners and the five constitutional officers (Clerk of the Circuit Court,
Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector). The Indian River County
Board of County Commissioners acts as the OPEB Board of Trustees and delegates the administration
of the IRCOT to an OPEB Trust Board. The OPEB Trust Board consists of the Clerk of the Circuit
Court and Comptroller, Budget Director, Finance Director, County Administrator, and Human
Resources Director.
Resolution 2008-163 gave authority to establish the IRCOT as a single -employer defined benefit plan
(OPEB Plan). The IRCOT's financial statements are reported using the accrual basis of accounting. The
IRCOT trustees can amend the benefit provisions. The OPEB Plan subsidizes the cost of health care
for employees hired prior to February 1, 2006 and their eligible dependents according to the provisions
of the substantive plan (the plan as understood by the employer and the plan members). Employees
hired on or after February 1, 2006 will not be eligible for any subsidy, regardless of years of service or
Medicare eligibility. Life insurance is available to retirees at a flat rate per $1,000 of coverage. The
premium rate is contingent upon age and date of retirement. Only the implicit rate subsidy applies to
retiree life insurance coverage since retirees are responsible for the full premium of their life insurance
policy.
Retired employees are permitted to remain covered under the County's medical and life insurance plans
as long as they pay a premium applicable to the coverage elected. This conforms to the minimum
required of Florida governmental employers per Florida Statute 112.0801. The implicit rate subsidy
also applies to health insurance coverage since the premiums charged are based upon a blending of
younger, active employees and older, retired employees. Active participants as well as retirees are
subject to the same benefits and rules. Health insurance premiums, effective October 1, 2008, range
from $198 for Medicare participants to $735 for family coverage. The County subsidizes the cost of
the premiums for each retiree based upon their years of service and employment date; a 2% discount for
each year of service based upon the following table:
Retirement Date
Years of Service
Under Age 65
Medicare Eligible
Before 01/01/04
N/A
No subsidy
60% subsidy
01/01/04 - 10/01/04
Less than 15 years
No subsidy
60% subsidy
01/01/04 - 10/01/04
15 or more years
2%/yr-max 40%
20% in addition to yrs of
service - max 60%
subsidy
10/01/04 - 01/31/09
Less than 15 years
No subsidy
20% subsidy
10/01/04 - 01/31/09
15 or more years
2%/yr-max 40%
20% in addition to yrs of
service - max 60%
subsidy
02/01/09 and after
Less than 15 years
No subsidy
No subsidy
02/01/09 and after
15 or more years
2%/yr-max 40%
No subsidy
The retiree has the option to continue with the County group health plan or elect the Medicare
Advantage Plan. The subsidy will apply to either plan.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
A. Plan Description - Continued
At October 1, 2009, the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,452
Retired participants 286
Total participants 1.738
There are two classes of participants at October 1, 2009:
Regular and senior management 1,153
Special risk 585
Total participants 1.738
The average employer's contribution was $2,031 per employee, approximately 4% of current payroll.
Financial statements for the IRCOT are included in this report and can be found on pages 40-41. A
separate, stand-alone financial report is not issued by the County. The IRCOT investments can be
found in Note 4D.
B. Funding Policy
The Board of County Commissioners, in concert with the OPEB Board of Trustees, has the authority to
establish and amend the funding policy of the OPEB Plan. The IRCOT is advance funded by the
County. For the year ended September 30, 2011, the County contributed $2.82 million to the qualifying
IRCOT. Plan members receiving benefits contributed $1.12 million or approximately 45 percent of
total premiums. It is the County's policy to base future IRCOT contributions on the annual required
contribution (ARC) in subsequent annual actuarial reports. Custodial and individual fund administrative
fees are paid from the portfolio dividend and interest income.
C. Annual OPEB Cost and Net OPEB Obligation
The employer's contribution (i.e. annual cost or expense) to the County's IRCOT is based on the ARC
calculation. The ARC is an amount actuarially determined in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to
exceed 20 years. The following table shows the components of the County's annual IRCOT cost for the
year, the amount actually contributed, and the changes in the net obligation.
Annual Required Contribution
Interest on Net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB Cost (expense)
Contributions
Change in Net OPEB obligation
Net OPEB obligation — beginning of year
Net OPEB obligation — end of year
Percentage of Annual OPEB Cost Contributed
FY 2010/2011 FY 2009/2010 FY 2008/2009
$ 2,948,682
(22,381)
23,385
2,949,686
(2,819,540)
130,146
(319,730)
$ (189,584)
:'
95.59%
2,814,435
(7,272)
7,779
2,814,942
(3,030,792)
(215,850)
(103.880)
$ (319,730) $
107.67%
2,810,092
(6,587)
6,082
2,809,587
(2,819,373)
(9,786)
(94,094)
(103,880)
100.35%
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
D. Funded Status and Funding Progress
The contribution made to the IRCOT for the current fiscal year was 95.6% of the annual OPEB cost.
Information is available for the two preceding fiscal years. As of the October 1, 2009 actuarial
valuation date, the IRCOT was 11.37% funded, the actuarial accrued liability for benefits was $32.5
million, and the actuarial value of assets was $3.7 million, resulting in an unfunded actuarial accrued
liability (UAAL) of $28.8 million. The covered payroll (annual payroll of active employees covered by
the IRCOT) was $70.6 million, and the ratio of the UAAL to the covered payroll was 40.8%. Actuarial
valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events into the future. Examples include assumptions about
future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded
status of the plan and the annual required contributions of the employer are subject to continual revision
as actual results are compared with past expectations and new estimates are made about the future.
The schedule of funding progress and schedule of employer contributions, presented as required
supplementary information following the notes to the financial statements, presents information about
whether the actuarial value of the plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the benefits provided under terms
of the substantive plan (the plan as understood by the employer and the plan members) in effect at the
time of each valuation and on the pattern of sharing of costs between the employer and plan members to
that point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing between
the employer and plan members in the future. Actuarial calculations reflect a long-term perspective.
Consistent with that perspective, actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period (closed)
Asset valuation method
The actuarial assumptions are:
Investment rate of return
Projected annual salaries increase
Healthcare cost trend rate
(post-retirement benefit)
Inflation rate
Entry age normal cost method
Level percent of payroll projected to grow 4% per year
17 years
Market Value
7% (net administrative expenses)
4.0%-9.47% (dependent on years of service and age)
9%
Included in the Healthcare cost trend rate
.o
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 18 - OPERATING LEASES
The County has entered into non -cancelable operating leases, both as lessor and lessee. Lease terms
vary from 1 to 50 years. Lease revenues totaled $574,277 and lease expenditures totaled $273,494 for
the year ended September 30, 2011. The County also leases other equipment and office facilities as
both lessor and lessee on a month-to-month basis.
A. Future Minimum Lease Receipts
Year
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
2032-2036
2037-2038
Total future minimum lease receipts:
Amount
$ 495,535
448,437
453,203
467,377
453,612
2,310,869
1,495,460
777,865
207,259
55,300
7,164.917
The property being leased is included in the statement of net assets governmental activities and
business -type activities columns and has a cost of $25,824,960 and a carrying value of $17,857,037.
Current year depreciation on property being leased was $708,293.
B. Future Minimum Lease Payments
The following is a schedule of minimum future rentals to be paid by the County for various
noncancelable operating leases of office space, park land, and office equipment as of September 30,
2011:
Year
Amount
2012
$ 270,886
2013
248,919
2014
124,090
2015
75,951
2016
23,132
2017-2021
70,596
2022-2026
3,000
2027-2031
3,000
2032-2036
3,000
2037-2041
3,000
2042-2046
3,000
2047-2048
900
Total future minimum lease payments: $ 829,474
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 19 - FUND BALANCE
GASB Statement 54, Fund Balance Reporting and Governmental Funds Type Definitions, requires the
fund balance for governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the specific purposes
for which amounts in those funds can be spent.
A. Categories
There are five categories of fund balance for governmental funds under Statement 54:
Nonspendable — Amounts that cannot be spent because they are not in spendable form or are legally or
contractually required to remain intact.
Restricted — Use of these resources is based on the constraints imposed externally by creditors,
grantors, contributors, or laws and regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation.
Committed — Amounts whose use is constrained by formal action of the Board of County
Commissioners, including resolution or ordinance. This category includes contractual obligations
entered into by the Board of County Commissioners.
Assigned — The Board of County Commissioners is the governing body authorized to assign fund
balance amounts to be used for specific purposes. Amounts appropriated to eliminate a budgetary
deficit in a subsequent year are reported in this category as well.
Unassigned — Residual amounts in the general fund that do not meet any of the other fund balance
classifications.
B. Fund Balance Policy
On September 21, 2010, the County approved a Fund Balance and Reserve Policy that set forth the
following reserves of fund balance in the General, Transportation, and Emergency Services District
Funds:
Emergency/Disaster Relief Reserve — A balance of no less than 5% of budgeted operating expenditures
for the current fiscal year will be reserved only for the purpose of responding to natural and man-made
disasters. Disasters include hurricanes, tropical storms, floods, wildfires, or terrorist activities. These
funds can only be used to respond and provide relief after such a disaster. Funds will be replenished
over a five-year period after the completion of the recovery from the disaster. This reserve is presented
as committed fund balance in those funds.
92
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 19 - FUND BALANCE — Continued
B. Fund Balance Policy - Continued
Budget Stabilization Reserve — A balance of no less than 5% of budgeted operating expenditures for
the current fiscal year will be reserved only for the purpose of revenue declines or unfunded mandates
from the state and federal governments. This reserve is presented as committed fund balance in those
funds. Funds utilized due to revenue declines will be replenished over a five-year period. Funds
utilized for unfunded mandates or unanticipated expenditures cannot be used for more than a three-year
period and must be replenished within five -years after the three-year period.
Minimum Fund Balance - The approved fund balance policy dictates the County's attempt to maintain
a minimum fund balance in the General, Transportation, and Emergency Services District funds of 20%
of budgeted annual operating expenditures.
The Emergency/Disaster Relief and Budget Stabilization Reserve amounts may only be revised by the
Board of County Commissioners. The minimum fund balance level may be revised by the County
Administrator or his designee.
C. Spending Hierarchy
For all governmental funds, when restricted, committed, assigned, and unassigned fund balances are
combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as
appropriate, then assigned and finally unassigned fund balances.
93
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 20 - FUND BALANCE DEFICIT
The following funds had a deficit in fund balance at September 30, 2011:
Fund
Deficit
Nonmajor Governmental Funds:
Metropolitan Planning Organization Fund $ 107,412
Federal/State Grants Fund 229,275
CDBG Neighborhood Stabilization Program 3 Grant Fund 11,108
Total Deficit $ 347,795
The deficits for these three funds will be eliminated by grant proceeds in fiscal year 2012.
NOTE 21— NET ASSETS
A. Restricted Net Assets
The County has established certain restrictions within the net assets section of the proprietary funds.
Restricted net assets at September 30, 2011 consist of the following:
Restricted for Debt Service:
Golf Course Fund $ 44,583
County Utilities Fund 253,750
Total $ 298,333
Restricted for Capital Projects:
County Utilities Fund $ 23,931,768
B. Net Assets Restricted by Enabling Legislation
The government -wide statement of net assets for the primary government reports $149,682,617 of
restricted net assets, of which $78,874,091 is restricted by enabling legislation.
C. Restatement of Beginning Net Assets
In accordance with the requirements of GASB Statement 49, Accounting and Financial Reporting for
Pollution Remediation Obligations, beginning net assets for the Utilities Fund was restated. Due to the
addition of the Old Savannah Lift Station and based on the consultant's report, the Utilities Fund's
portion of the estimated liability at October 1, 2010 was $35,281; therefore, beginning net assets was
reduced by that amount. For more information on the County's pollution remediation obligation, please
see Note 15.
f.i
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 22 - RISK MANAGEMENT
General Liability, Property, Worker's Compensation and Medical
The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors or omissions, injuries to employees, and natural disasters. The County established a Self
Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under
this program, the Self Insurance Fund provides coverage as follows:
Worker's Compensation
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
Liquor Liability
04/01/08 to 10/01/08 to 05/01/11 to
09/30/08 04/30/11 09/30/11
$ 300,000
$ 350,000
$ 350,000
250,000
250,000
200,000
250,000
250,000
200,000
500-25,000
250,000
200,000
250,000
250,000
200,000
1,000,000
2,000,000
2,000,000
1,000,000
1,000,000
1,000,000
The County purchases excess insurance to cover claims in excess of the amounts listed above. There is
a 5% deductible per location for property damages arising due to a hurricane under the reinsurance
policy. The County has not incurred any settlements in excess of the insurance coverage listed above in
the past four fiscal years. All departments of the County participate in the program. Payments are made
by various funds to the Self Insurance Fund based on past experience and actual estimates of the
amounts needed to pay current year claims.
The County is also self insured for medical claims covering employees and their eligible dependents.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
same health care coverage as is offered to active employees; however, the retirees are responsible for
payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees
and by the County. Premiums and contributions are determined by projected claims based on historical
and actuarial experience. The self insurance plan assumes all risk for claims, other than worker's
compensation, up to $250,000 per occurrence. For worker's compensation, the plan assumes all risk for
claims up to $350,000 per occurrence. The County has purchased a reinsurance policy to cover claims
in excess of these limits. There were no claims in excess of these limits for the 2009, 2010, and 2011
fiscal years.
The claims liability of $7,877,000 reported at September 30, 2011, is based on the requirements of
generally accepted governmental accounting standards, which require that a liability for claims be
reported if information prior to the issuance of the financial statements indicates that it is probable that
a liability has been incurred at the date of the financial statements, and the amount of the loss can be
reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and
recorded. Based on the actuary's report, $2,395,278 will be liquidated over the next twelve months.
95
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 22 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
Changes in the fund's claim liability amount during the current and prior three fiscal years are as
follows:
Claims
and Changes
in Estimates
$ 14,209,397
15,637,406
13,940,099
12,901,425
Claim
Pavments
$ (13,873,397)
(14,657,406)
(13,916,099)
(12,923,425)
Balance
at Fiscal
Year End
$ 6,895,000
7,875,000
7,899,000
7,877,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2011, unreserved net assets of $23,254,165 have been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability excluding non -incremental claims adjustment expenses. At September 30, 2011, the
undiscounted liability was the greater of the two amounts. The discount rate used in the calculation was
2.5 percent.
NOTE 23 - COMMITMENTS AND CONTINGENCIES
A. Litigation
Various suits and claims are currently pending against the County. It is impossible for the County to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits.
The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
County.
B. Contracts and Other Commitments
The County has various contracts and commitments outstanding at September 30, 2011. In the General
Fund, contracts are for custodial services and external auditing services. In the Special Revenue Funds,
contracts are for Sector 3 beach restoration, Old Dixie Highway bridge replacement, 43rd Avenue and
66th Avenue roadway expansions as well as a variety of other road paving and drainage projects. In the
Capital Projects Fund, contracts are for the expansion of the 800 Mhz radio system, Vero Beach Sports
Village quadrangle softball fields, 53rd Street roadway improvements, and several sidewalk and road
improvement projects throughout the County. In the Enterprise Funds, contracts are for the North
County Reverse Osmosis 3.0 MG reuse storage tank and pumping facility, Spoonbill Marsh Wetlands,
Utility software implementation and various other water and sewer projects.
.e
Balance at
Fiscal Year
Be ig nning
2007-2008
$ 6,559,000
2008-2009
6,895,000
2009-2010
7,875,000
2010-2011
7,899,000
Claims
and Changes
in Estimates
$ 14,209,397
15,637,406
13,940,099
12,901,425
Claim
Pavments
$ (13,873,397)
(14,657,406)
(13,916,099)
(12,923,425)
Balance
at Fiscal
Year End
$ 6,895,000
7,875,000
7,899,000
7,877,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2011, unreserved net assets of $23,254,165 have been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability excluding non -incremental claims adjustment expenses. At September 30, 2011, the
undiscounted liability was the greater of the two amounts. The discount rate used in the calculation was
2.5 percent.
NOTE 23 - COMMITMENTS AND CONTINGENCIES
A. Litigation
Various suits and claims are currently pending against the County. It is impossible for the County to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits.
The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
County.
B. Contracts and Other Commitments
The County has various contracts and commitments outstanding at September 30, 2011. In the General
Fund, contracts are for custodial services and external auditing services. In the Special Revenue Funds,
contracts are for Sector 3 beach restoration, Old Dixie Highway bridge replacement, 43rd Avenue and
66th Avenue roadway expansions as well as a variety of other road paving and drainage projects. In the
Capital Projects Fund, contracts are for the expansion of the 800 Mhz radio system, Vero Beach Sports
Village quadrangle softball fields, 53rd Street roadway improvements, and several sidewalk and road
improvement projects throughout the County. In the Enterprise Funds, contracts are for the North
County Reverse Osmosis 3.0 MG reuse storage tank and pumping facility, Spoonbill Marsh Wetlands,
Utility software implementation and various other water and sewer projects.
.e
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 23 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
A summary of these projects at September 30, 2011, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Internal Service
Total
C. Grants
Total
Contract Price
$ 1,089,709 $
38,297,381
15,977,924
7,031,103
Total Paid as of
September 30, 2011
(908,091) $
(25,545,251)
(9,213,629)
(4,985,823)
Remaining
Balance at
September 30, 2011
181,618
12,752,130
6,764,295
2,045,280
109,200 (27,300) 81,900
$ 62,505,317 $ (40,680,094) $ 21,825,223
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the County. In the opinion of management, any such
adjustments would not be significant.
NOTE 24 — SUBSEQUENT EVENTS
On February 14, 2012 the County approved beginning the process of early payoff of the remaining
Land Acquisition General Obligation Bonds, Series 2001. The County approved payment of
$3,620,000 from the General Fund on July 1, 2012. These bonds will be called at a 1% redemption fee.
97
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2011
Other Postemployment Benefits Plan
Schedule of Funding Progress
* First year of Indian River County Other Postemployment Benefits Trust (IRCOT)
Schedule of Employer Contributions
Fiscal Year
Annual
Amount
Percentage
UAAL as a
Net OPEB
Actuarial
Actuarial Accrued
Contributed
Contributed
Percentage of
Actuarial
Value of
Liability (AAL) -
Unfunded AAL
$
2,720,348
Covered
Valuation
Assets
Entry Age
(UAAL)
Funded Ratio
Covered Payroll
Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
((b-a)/c)
10/01/2007 *
$ -
$ 29,098,337
$ 29,098,337
0.00%
$ 64,847,001
44.87%
10/01/2009
$ 3,690,592
$ 32,456,186
$ 28,765,594
11.37%
$ 70,558,251
40.77%
* First year of Indian River County Other Postemployment Benefits Trust (IRCOT)
Schedule of Employer Contributions
Fiscal Year
Annual
Amount
Percentage
Net OPEB
Ending
Required Contribution
Contributed
Contributed
Obligation
9/30/2008
$
2,626,254
$
2,720,348
103.58%
$
(94,094)
9/30/2009
$
2,809,587
$
2,819,373
100.35%
$
(103,880)
9/30/2010
$
2,814,942
$
3,030,792
107.67%
$
(319,730)
9/30/2011
$
2,949,686
$
2,819,540
95.59%
$
(189,584)
In the current fiscal year, there have not been any factors, such as changes in benefit provisions, the size or composition of the population covered by
the plan or the actuarial methods and assumptions used, that would significantly affect the identification of trends in the amounts reported. See Note
17 for more information on the IRCOT.
W'.
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Court Facilities- To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
Section 8 Rental Assistance- To account for the provision of rental assistance for low income
housing. Financing is provided by grants from the U.S. Department
of Housing and Urban Development.
Special Law Enforcement- To account for the expenditures of providing law enforcement
equipment. Financing is provided by confiscation of monies and
property in accordance with Section 932.704 of the Florida
Statutes.
Tree Ordinance Fines- To account for fines assessed against individuals for illegal
removal of protected trees. Funds are used for park improvements.
Tourist Development- To account for the proceeds from the levy of a local option Tourist
Development tax. Funds are used to attract tourism trade and for
the benefit of County residents.
911 Surcharge- To account for the receipt of the 911 surcharge on all telephone
bills of the County. Monies are used to pay the operating costs of
the 911 Emergency Center.
Drug Abuse- To account for the collection of fines on criminal drug cases.
Monies are used for drug prevention and education programs.
State Housing Initiatives
Partnership- To account for State funds distributed under the State Housing
Initiatives Partnership Act. The purpose of this program is to
provide for the creation and preservation of affordable housing.
Funds are provided by the documentary stamp taxes.
100
Metropolitan Planning Organization- To account for expenditures incurred for planning community
transportation in the County. Financing is provided by grants.
Multi -Jurisdictional Law Enforcement- To account for expenditures incurred in connection with the
cooperative drug enforcement task force established by the
County, the City of Vero Beach and the City of Sebastian. Funds
are provided by grants and program generated income.
Native Uplands Land Acquisition- To account for expenditures related to the acquisition of native
habitat preserve areas and for the management of such lands.
Funding is provided by developers of property who pay to mitigate
native uplands destruction where native upland plant communities
will be destroyed.
Beach Restoration- To account for the expenditure of funds to preserve and improve
County beaches. Funds are provided by the levy of a local option
tourist development tax.
CDBG Neighborhood Stabilization
Program- To account for the proceeds from the Community Development
Block Grant. The purpose of this grant is to provide neighborhood
stabilization through resale and rental of housing units purchased
by the grant funds.
Florida Boating Improvement Program- To account for boat registration fees which may be used for
providing recreational channel marking, public launching facilities,
and other boating -related activities.
Library Bequests- To account for bequests which may be used for improvements to
the Indian River County Libraries.
Disabled Access Program- To account for fines assessed against individuals for illegal use of
handicapped parking spaces.
Federal/State Grants- To account for revenues and expenditures of various grants from
Federal and State agencies.
Traffic Education Program- To account for the proceeds of an additional $3 add-on to traffic
fines authorized by County Ordinance. Proceeds must be used for
traffic education programs.
101
Land Acquisition- To account for expenditures incurred in the purchase of
environmentally sensitive land, preservation of water sources,
historic sites and agricultural lands. Financing is provided by bond
proceeds and state grants.
East Gifford Stormwater- To account for expenditures of funds for stormwater improvements
in the East Gifford Watershed. Funds are provided by non -ad
valorem taxes.
Vero Lake Estates- To account for the expenditure of funds to improve roads in the
Vero Lake Estates subdivision. Funds are provided by the levying
of special assessments.
Vero Beach Sports Village Reserve- To provide additional improvements to the Vero Beach Sports
Village facility. The City of Vero Beach contributed $1,400,000
and the County contributed $600,000. This fund was previously
known as the Dodgertown Capital Reserve Fund in prior fiscal
years.
Clerk Special Revenue- To account for the proceeds from a special recording fee to be used
for computer linkage and modernizing the Clerk of the Circuit
Court and Comptroller's public records system.
Sheriff Special Revenue -
Supervisor of Elections
Special Revenue -
Street Lighting Districts -
Disaster Recovery Grants-
CDBG Neighborhood Stabilization
To account for the expenditure of grants, fines, and restricted
revenues received by the Sheriff.
To account for revenues and expenditures from state grants for
voter education and pollworker activities.
To account for the costs of providing street lights. Financing is
provided by the levying of special assessments.
To account for revenues and expenditures of grants received in
response to disasters, such as hurricanes.
Program 3 Grant- To account for the proceeds from the Community Development
Block Neighborhood Stabilization Program 3 Grant. The purpose
of this grant is to provide neighborhood stabilization through resale
of housing units purchased with the grant funds.
102
DEBT SERVICE FUNDS
Spring Training Facility Bonds- To account for the accumulation of State assistance and tourist tax
monies pledged to pay the principal, interest, and fiscal charges on
the Spring Training Facility Bonds.
Land Acquisition Bonds- To account for the accumulation of ad valorem taxes to pay the
principal, interest, and fiscal charges related to the Land
Acquisition Bonds.
MAJOR CAPITAL PROJECTS FUND
Optional Sales Tax- To account for revenues generated by the local option one cent
sales tax. Monies are used for various capital projects.
103
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other funds
Due from other governments
Prepaid items
Other assets held for resale
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Deferred revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Environmental conservation/preservation
Sports Village repairs/improvements
Other purposes
Committed to:
Court operations
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue
Section 8
Court Rental Special Law
Facilities Assistance Enforcement
$ 1,229,785 $ 341,238 $ 270,318
- 6,114 -
$ 1,229,785 $ 347,352 $ 270,318
$ 58,096 $ 3,828 $ -
58,096 3,828 -
1,171,689 - -
- 343,524 -
- 270,318
1,171,689 343,524 270,318
$ 1,229,785 $ 347,352 $ 270,318
104
Special Revenue
Tree
State Housing
Ordinance Tourist
911
Drug
Initiatives
Fines Development
Surcharge
Abuse
Partnership
$ 206,142 $ 455,133 $
2,599,501 $
174,977 $
1,317,365
- -
63,088
19,787
-
$ 206,142 $ 455,133 $
2,662,589 $
194,764 $
1,317,365
$ - $ 72,755 $
1,128 $
11,572 $
1,343
- -
1,014,138
-
-
72,755
1,015,266
11,572
1,343
- - - 1,316,022
- 1,647,323 - -
382,378 - - -
206,142 - -
183,192 -
206,142 382,378 1,647,323 183,192 1,316,022
$ 206,142 $ 455,133 $ 2,662,589 $ 194,764 $ 1,317,365
105
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other funds
Due from other governments
Prepaid items
Other assets held for resale
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Deferred revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Environmental conservation/preservation
Sports Village repairs/improvements
Other purposes
Committed to:
Court operations
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue
Metropolitan
Multi-
Native Uplands
Planning
Jurisdictional
Land
Organization
Law Enforcement
Acquisition
$ 1,686 $
112,760 $
834,690
7,200
-
$ 8,886 $
112,760 $
834,690
$ 1,298 $
- $
-
115,000
-
116,298
-
7,200
112,760
- 834,690
(114,612) - -
(107,412) 112,760 834,690
$ 8,886 $ 112,760 $ 834,690
106
Special Revenue
$ 62,179 $ 10,286 $
481,812 -
543,991 10,286 -
- 1,347,503 -
7,622,078 -
- 1,024,233 -
- - 130,694
61,228
7,622,078 1,347,503 1,024,233 130,694 61,228
$ 8,166,069 $ 1,357,789 $ 1,024,233 $ 130,694 $ 61,228
Continued
107
CDBG
Florida
Disabled
Beach
Neighborhood
Boating Improv.
Library
Access
Restoration
Stabilization Pgm
Program
Bequests
Program
$ 8,132,308
$ 251,036 $
1,024,233 $
130,694 $
61,228
-
37
-
-
-
33,761
-
-
1,106,716
-
-
-
$ 8,166,069
$ 1,357,789 $
1,024,233 $
130,694 $
61,228
$ 62,179 $ 10,286 $
481,812 -
543,991 10,286 -
- 1,347,503 -
7,622,078 -
- 1,024,233 -
- - 130,694
61,228
7,622,078 1,347,503 1,024,233 130,694 61,228
$ 8,166,069 $ 1,357,789 $ 1,024,233 $ 130,694 $ 61,228
Continued
107
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other funds
Due from other governments
Prepaid items
Other assets held for resale
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Deferred revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Environmental conservation/preservation
Sports Village repairs/improvements
Other purposes
Committed to:
Court operations
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue
Traffic
Federal/State Education Land
Grants Program Acquisition
$ 818 $ 37,126 $ 311,322
170,886 -
$ 171,704 $ 37,126 $ 311,322
$ 215,926 $ 1,780 $ 120
40,053 - -
145,000 -
400,979 1,780 120
311,202
35,346
(229,275) - -
(229,275) 35,346 311,202
$ 171,704 $ 37,126 $ 311,322
108
Special Revenue
East
Vero Beach
Clerk
Sheriff
Gifford Vero Lake
Sports
Special
Special
Stormwater Estates
Village Reserve
Revenue
Revenue
$ 16,144 $ 1,147,775 $
1,069,363 $
2,456,416 $
2,053,592
- -
-
85
-
12 1,230
-
-
- -
-
7,584
902
-
$ 16,156 $ 1,149,005 $
1,069,363 $
2,457,403 $
2,061,176
$ - $ 26 $
122,105 $
12,100 $
33,796
- -
-
-
69
- 26
122, l05
12,100
33,865
- 902 -
- - 2,383,255 -
- - 2,027,311
16,156 1,148,979 - - -
- - 947,258 - -
- - - 61,146 -
16,156 1,148,979 947,258 2,445,303 2,027,311
$ 16,156 $ 1,149,005 $ 1,069,363 $ 2,457,403 $ 2,061,176
Continued
109
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other funds
Due from other governments
Prepaid items
Other assets held for resale
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Deferred revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Environmental conservation/preservation
Sports Village repairs/improvements
Other purposes
Committed to:
Court operations
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue
Supervisor Street
of Elections Lighting CDBG
Special Revenue Districts NSP3 Grant
$ 25,929 $ 500,936 $ 901
- 2,406 -
$ 25,929 $ 503,342 $ 901
$ - $ 7,706 $ 9
- - 12,000
18,185 - -
18,185 7,706 12,009
- 495,636 -
7,744 - -
7,744 495,636 (11,108)
$ 25,929 $ 503,342 $ 901
110
Debt Service
Spring
Land
Training
Acquisition
Facility Bonds
Bonds
$ 1,300,070 $
1,668,490
-
75,290
37,392
1
296,711
-
$ 1,634,173 $
1,743,781
296,711
1,337,462 1,743,781
1,634,173 1,743,781
$ 1,634,173 $ 1,743,781
111
Total Nonmajor
Governmental
Funds
$ 27,731,976
6,236
78,938
332,499
304,813
1,106,716
$ 29,561,178
$ 616,053
521,865
272,000
1,032,392
2,442,310
304,813
3,554,944
3,007,049
4,057,712
382,378
7,622,078
1,024,233
130,694
311,202
1,660,771
7,744
3,081,243
1,040,832
947,258
279,766
61,146
(354,995)
27,118,868
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Special Revenue
Section 8
Court Rental Special Law
Facilities Assistance Enforcement
- 2,004,715 -
485,747 87,345 36,082
- - 42,049
7,101 1,893 1,419
492,848 2,093,953 79,550
11,393
- -
-
29,604 -
-
2,078,888 -
314,205
- -
325,598
2,108,492 -
167,250
(14,539) 79,550
(10,523)
- - (10,523)
167,250 (14,539) 69,027
1,004,439 358,063 201,291
$ 1,171,689 $ 343,524 $ 270,318
112
ial Revenue
Tree
640,975
697,552
State Housing
Ordinance Tourist
911
Drug
Initiatives
Fines Development
Surcharge
Abuse
Partnership
- $ 578,978 $
- $
- $
-
- -
860,568
114,331
350,000
- -
-
-
143,255
- -
-
13,838
-
1,282 2,690
13,063
1,024
8,379
- -
1,093
-
4,328
1,282 581,668
874,724
129,193
505,962
697,552 59,005 -
- - - 27,686 1,310,400
42,709 640,975 - - -
42,709
640,975
697,552
86,691
1,310,400
(41,427)
(59,307)
177,172
42,502
(804,438)
-
-
(193,141)
-
-
-
-
(193,141)
-
-
(41,427)
(59,307)
(15,969)
42,502
(804,438)
247,569
441,685
1,663,292
140,690
2,120,460
$ 206,142 $
382,378 $
1,647,323 $
183,192 $
1,316,022
Continued
113
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Revenue
Metropolitan Multi- Native Uplands
Planning Jurisdictional Land
Organization Law Enforcement Acquisition
457,034 - -
- 29,832 -
569 5,023
457,034 30,401 5,023
444,247 - -
- 11,260 -
- 2,500
444,247 11,260 2,500
12,787 19,141 2,523
12,787
(60,142)
(60,142)
(41,001)
2,523
(120,199) 153,761 832,167
$ (107,412) $ 112,760 $ 834,690
114
Revenue
-
CDBG
Florida
Disabled
Beach
Neighborhood
Boating Improv.
Library Access
Restoration
Stabilization Pgm
Program
Bequests Program
17,767
80,578
-
$ 544,849
$ - $
- $
- $ -
636,645
1,635,846
69,332
- -
-
-
-
- 641
55,010
274
6,021
826 366
1,366
664,965
-
- -
1,237,870
2,301,085
75,353
826 1,007
-
1,645,660
-
-
-
4,923,566
-
17,767
80,578
-
4,923,566
1,645,660
17,767
80,578
-
(3,685,696)
655,425
57,586
(79,752)
1,007
116,407
-
-
-
-
116,407
-
-
-
-
(3,569,289)
655,425
57,586
(79,752)
1,007
11,191,367
692,078
966,647
210,446
60,221
$ 7,622,078 $
1,347,503 $
1,024,233 $
130,694 $
61,228
Continued
115
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Revenue
Traffic
Federal/State Education Land
Grants Program Acquisition
1,053,950 - -
384 -
241 1,836
- - 39,982
1,053,950 625 41,818
434,374 - -
- 32,111
7,565 -
772,062 - -
31,094 - -
1,237,530
7,565
32,111
(183,580)
(6,940)
9,707
(183,580)
(6,940)
9,707
(45,695)
42,286
301,495
$ (229,275) $
35,346 $
311,202
116
Special Revenue
East
Vero Beach
Clerk
Sheriff
Gifford
Vero Lake
Sports
Special
Special
Stormwater
Estates
Village Reserve
Revenue
Revenue
$ 53 $
179 $
- $
- $
-
861
94,015
-
-
-
-
-
-
-
72,998
-
-
-
326,662
298,258
-
-
-
173,363
204,053
95
6,845
-
4,600
3,495
1,009
101,039
-
504,625
578,804
-
-
-
303,589
-
-
-
-
-
653,732
-
10,485
-
-
-
-
-
290,643
-
-
-
-
-
374,546
38,717
-
10,485
290,643
678,135
692,449
1,009
90,554
(290,643)
(173,510)
(113,645)
- - - - 70,665
(49) (2,830) - - -
(49) (2,830) - - 70,665
960 87,724 (290,643) (173,510) (42,980)
15,196 1,061,255 1,237,901 2,618,813 2,070,291
$ 16,156 $ 1,148,979 $ 947,258 $ 2,445,303 $ 2,027,311
Continued
117
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Supervisor of
Elections
Special Revenue
4,522
3
525
Revenue
Street
Lighting
Districts
2,654 $
181,080
3,243
2,440
189.417
Disaster
Recovery
Grants
33,248
33,248
General government
4,539
- -
Public safety
-
- -
Physical environment
-
- -
Transportation
-
188,218 -
Economic environment
-
- -
Human services
-
- -
Culture/recreation
-
- -
Court related
-
- -
Debt service:
Principal
-
- -
Interest and other fiscal charges
-
- -
Total expenditures
4,539
188,218 -
Excess of revenues over (under) expenditures
(14)
1,199 33,248
OTHER FINANCING SOURCES (USES)
Transfers in
2,402
- -
Transfers out
-
(5,199) -
Total other financing sources (uses)
2,402
(5,199) -
Net change in fund balances
2,388
(4,000) 33,248
Fund balances at beginning of year
5,356
499,636 (33,248)
Fund balances at end of year $
7,744 $
495,636 $ -
118
ecial Revenue
CDBG
NSP3 Grant
$ (11,108)
Debt Service
Spring Training
Facility Bonds
$ 363,233 $
948,706
7,661
Land
Acquisition
Bonds
5,600,767
22,654
1,319,600 5,623,421
605,000
3,665,000
618,833
1,943,541
1,223,833
5,608,541
95,767
14,880
(116,413)
- (116,413)
95,767 (101,533)
1,538,406 1,845,314
$ 1,634,173 $ 1,743,781
119
Total
Nonmajor
Governmental
Funds
$ 7,090,713
275,956
8,241,895
1,377,349
464,160
155,613
714,174
18,319,860
1,198,142
1,421,549
34,611
206,268
1,686,372
4,189,036
6,027,332
727,468
4,270,000
2,562,374
22,323,152
(4,003,292)
189,474
(388,297)
(198,823)
(4,202,115)
31,320,983
$ 27,118,868
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2011
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 451,276 $
485,747 $
34,471
4,000
7,101
3,101
455,276
492,848
37,572
45,000
11,393
33,607
443,284
314,205
129,079
488,284
325,598
162,686
(33,008)
167,250
200,258
33,008
1,004,439
971,431
$ - $
1,171,689 $
1,171,689
120
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Interest
Total revenues
EXPENDITURES
Economic environment
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 2,065,194 $
2,004,715 $
(60,479)
-
87,345
87,345
-
1,893
1,893
2,065,194
2,093,953
28,759
29,604
29,604
-
2,085,480
2,078,888
6,592
2,115,084
2,108,492
6,592
(49,890)
(14,539)
35,351
49,890
358,063
308,173
$ - $
343,524 $
343,524
121
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2011
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 36,082 $ 36,082
10,523 42,049 31,526
- 1,419 1,419
10,523 79,550 69,027
10,523 79,550
(10,523) (10,523)
(10,523) (10,523)
- 69,027
69,027
69,027
201,291 201,291
$ - $ 270,318 $ 270,318
122
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2011
REVENUES
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $
1,282 $
1,282
-
1,282
1,282
75,000
42,709
32,291
75,000
42,709
32,291
(75,000)
(41,427)
33,573
75,000
247,569
172,569
$ - $
206,142 $
206,142
123
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2011
REVENUES
Taxes
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 489,250 $ 578,978 $ 89,728
9,500 2,690 (6,810)
498,750 581,668 82,918
693,162 640,975 52,187
693,162 640,975 52,187
(194,412) (59,307) 135,105
194,412 441,685 247,273
Fund balances at end of year $ - $ 382,378 $ 382,378
124
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 1,188,570 $
1,188,570
2,321,469
697,552 1,623,917
2,321,469 697,552 1,623,917
(1,132,899) 177,172 1,310,071
(193,141) (193,141) -
(193,141) (193,141) -
(1,326,040) (15,969) 1,310,071
1,326,040 1,663,292 337,252
$ - $ 1,647,323 $ 1,647,323
125
Variance
Actual
Positive
Amounts
(Negative)
860,568 $
(328,002)
13,063
13,063
1,093
1,093
874,724
(313,846)
697,552 1,623,917
2,321,469 697,552 1,623,917
(1,132,899) 177,172 1,310,071
(193,141) (193,141) -
(193,141) (193,141) -
(1,326,040) (15,969) 1,310,071
1,326,040 1,663,292 337,252
$ - $ 1,647,323 $ 1,647,323
125
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Public safety
Human services
Total expenditures
Net change in fund balance
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 117,686 $
114,331 $
(3,355)
-
13,838
13,838
-
1,024
1,024
117,686
129,193
11,507
90,000
59,005
30,995
27,686
27,686
-
117,686
86,691
30,995
-
42,502
42,502
-
140,690
140,690
$ - $
183,192 $
183,192
126
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 1,715,215 $ 350,000 $ (1,365,215)
75,000 143,255 68,255
7,000 8,379 1,379
- 4,328 4,328
1,797,215 505,962 (1,291,253)
1,868,902 1,310,400 558,502
1,868,902 1,310,400 558,502
(71,687) (804,438) (732,751)
71,687 2,120,460 2,048,773
Fund balances at end of year $ - $ 1,316,022 $ 1,316,022
127
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
General government
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 660,846 $ 457,034 $ (203,812)
660,846 457,034 (203,812)
660,846 444,247 216,599
660,846 444,247 216,599
- 12,787 12,787
- (120,199) (120,199)
$ - $ (107,412) $ (107,412)
128
Indian River County, Florida
Budgetary Comparison Schedule
Multi -Jurisdictional Law Enforcement
For the Year Ended September 30, 2011
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
129
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ 71,403 $
29,832 $
(41,571)
-
569
569
71,403
30,401
(41,002)
11,260
11,260
-
11,260
11,260
-
60,143
19,141
(41,002)
(60,143)
(60,142)
1
(60,143)
(60,142)
1
-
(41,001)
(41,001)
-
153,761
153,761
$ - $
112,760 $
112,760
129
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2011
REVENUES
Interest
Total revenues
EXPENDITURES
Physical environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 5,023 $ 5,023
- 5,023 5,023
55,000 2,500 52,500
55,000 2,500 52,500
(55,000) 2,523 57,523
55,000 832,167 777,167
Fund balances at end of year $ - $ 834,690 $ 834,690
130
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2011
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
131
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ 489,250 $
544,849 $
55,599
-
636,645
636,645
42,750
55,010
12,260
-
1,366
1,366
532,000
1,237,870
705,870
6,529,317
4,923,566
1,605,751
6,529,317
4,923,566
1,605,751
(5,997,317)
(3,685,696)
2,311,621
116,407
116,407
-
116,407
116,407
-
(5,880,910)
(3,569,289)
2,311,621
5,880,910
11,191,367
5,310,457
$ - $
7,622,078 $
7,622,078
131
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
132
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ 1,635,845 $
1,635,846 $
1
-
274
274
675,411
664,965
(10,446)
2,311,256
2,301,085
(10,171)
2,307,323
1,645,660
661,663
2,307,323
1,645,660
661,663
3,933
655,425
651,492
(3,933)
-
3,933
(3,933)
-
3,933
-
655,425
655,425
-
692,078
692,078
$ - $
1,347,503 $
1,347,503
132
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 35,000 $ 69,332 $ 34,332
- 6,021 6,021
35,000 75,353 40,353
285,884 17,767 268,117
285,884 17,767 268,117
(250,884) 57,586 308,470
250,884 966,647 715,763
Fund balances at end of year $ - $ 1,024,233 $ 1,024,233
133
Indian River County, Florida
Budgetary Comparison Schedule
Library Bequests
For the Year Ended September 30, 2011
REVENUES
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 826 $ 826
- 826 826
86,797 80,578 6,219
86,797 80,578 6,219
(86,797) (79,752) 7,045
86,797 210,446 123,649
$ - $ 130,694 $ 130,694
134
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2011
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 641 $ 641
- 366 366
- 1,007 1,007
20,000 - 20,000
20,000 - 20,000
(20,000) 1,007 21,007
20,000 60,221 40,221
Fund balances at end of year $ - $ 61,228 $ 61,228
135
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
General government
Transportation
Human services
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 3,302,123 $ 1,053,950 $ (2,248,173)
3,302,123 1,053,950 (2,248,173)
1,918,953
76,087
1,307,083
3,302,123
434,374
772,062
31,094
1,237,530
(183,580)
1,484,579
76,087
535,021
(31,094)
2,064,593
(183,580)
(45,695) (45,695)
Fund balances at end of year $ - $ (229,275) $ (229,275)
136
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2011
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ - $ 384 $ 384
Interest - 241 241
Total revenues - 625 625
EXPENDITURES
Transportation 40,268 7,565 32,703
Total expenditures 40,268 7,565 32,703
Net change in fund balances (40,268) (6,940) 33,328
Fund balances at beginning of year 40,268 42,286 2,018
Fund balances at end of year $ - $ 35,346 $ 35,346
137
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2011
REVENUES
Interest
Miscellaneous
Total revenues
EXPENDITURES
Physical environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 1,836 $ 1,836
18,518 39,982 21,464
18,518 41,818 23,300
58,518 32,111 26,407
58,518 32,111 26,407
(40,000) 9,707 49,707
40,000 301,495 261,495
Fund balances at end of year $ - $ 311,202 $ 311,202
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Interest
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
139
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ - $
53 $
53
1,330
861
(469)
-
95
95
1,330
1,009
(321)
1,928
-
1,928
1,928
-
1,928
(598)
1,009
1,607
(58)
(49)
9
(58)
(49)
9
(656)
960
1,616
656
15,196
14,540
$ - $
16,156 $
16,156
139
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lake Estates
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Interest
Total revenues
EXPENDITURES
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $
179 $
179
88,174
94,015
5,841
4,750
6,845
2,095
92,924
101,039
8,115
141,037
-
141,037
293,903
10,485
283,418
434,940
10,485
424,455
(342,016)
90,554
432,570
(4,718)
(2,830)
1,888
(4,718)
(2,830)
1,888
(346,734)
87,724
434,458
346,734
1,061,255
714,521
$ - $
1,148,979 $
1,148,979
140
Indian River County, Florida
Budgetary Comparison Schedule
Vero Beach Sports Village Reserve
For the Year Ended September 30, 2011
REVENUES
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Final Actual
Budget Amounts
Variance
Positive
(Negative)
1,237,899 290,643 947,256
1,237,899 290,643 947,256
(1,237,899) (290,643) 947,256
1,237,899 1,237,901
2
Fund balances at end of year $ - $ 947,258 $ 947,258
141
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2011
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(64,607) - 64,607
(64,607) - 64,607
- (173,510) (173,510)
2,618,813 2,618,813
$ - $ 2,445,303 $ 2,445,303
142
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ 455,000 $
326,662 $
(128,338)
270,000
173,363
(96,637)
2,600
4,600
2,000
101,494
-
(101,494)
829,094
504,625
(324,469)
372,594
303,589
69,005
391,893
374,546
17,347
764,487
678,135
86,352
64,607
(173,510)
(238,117)
(64,607) - 64,607
(64,607) - 64,607
- (173,510) (173,510)
2,618,813 2,618,813
$ - $ 2,445,303 $ 2,445,303
142
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Public safety
Court related
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 72,998 $
72,998 $
-
333,136
298,258
(34,878)
215,000
204,053
(10,947)
3,400
3,495
95
624,534
578,804
(45,730)
655,700
653,732
1,968
39,500
38,717
783
695,200
692,449
2,751
(70,666)
(113,645)
(42,979)
70,666
70,665
(1)
70,666
70,665
(1)
- (42,980) (42,980)
2,070,291 2,070,291
Fund balances at end of year $ - $ 2,027,311 $ 2,027,311
143
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues under expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
144
Variance
Final Actual
Positive
Budget Amounts
(Negative)
$ - $ 4,522 $
4,522
- 3
3
- 4,525
4,525
- 4,539
(4,539)
- 4,539
(4,539)
- (14)
(14)
- 2,402
2,402
- 2,402
2,402
- 2,388
2,388
- 5,356
5,356
$ - $ 7,744 $
7,744
144
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $
2,654 $
2,654
173,877
181,080
7,203
3,602
3,243
(359)
3,205
2,440
(765)
180,684
189,417
8,733
227,948
188,218
39,730
227,948
188,218
39,730
(47,264)
1,199
48,463
(6,441)
(5,199)
1,242
(6,441)
(5,199)
1,242
(53,705)
(4,000)
49,705
53,705
499,636
445,931
$ - $
495,636 $
495,636
145
Indian River County, Florida
Budgetary Comparison Schedule
Disaster Recovery Grants
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 33,248 $ 33,248
33,248 33,248
146
33,248 33,248
- (33,248) (33,248)
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 1,500,428 $
1,500,428
Actual
Amounts
Variance
Positive
(Negative)
$ (1,500,428)
(1,500,428)
1,500,428 11,108 1,489,320
1,500,428 11,108 1,489,320
(11,108) (11,108)
$ - $ (11,108) $ (11,108)
147
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2011
REVENUES
Taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 326,166 $ 363,233 $ 37,067
901,267 948,706 47,439
11,400 7,661 (3,739)
1,238,833 1,319,600 80,767
605,000 605,000
-
633,833 618,833
15,000
1,238,833 1,223,833
15,000
- 95,767
95,767
- 1,538,406
1,538,406
$ - $ 1,634,173 $
1,634,173
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2011
REVENUES
Taxes
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 5,492,551 $ 5,600,767 $ 108,216
43,700 22,654 (21,046)
5,536,251 5,623,421 87,170
3,665,000
3,665,000
-
1,960,670
1,943,541
17,129
5,625,670
5,608,541
17,129
(89,419)
14,880
104,299
(160,006)
(116,413)
43,593
(160,006)
(116,413)
43,593
(249,425)
(101,533)
147,892
249,425
1,845,314
1,595,889
$ - $
1,743,781 $
1,743,781
149
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 11,400,000 $
12,942,483 $
1,542,483
-
56,850
56,850
1,475,591
2,202,063
726,472
237,500
165,265
(72,235)
3,412,163
8,137
(3,404,026)
16,525,254
15,374,798
(1,150,456)
28,018,210
5,825,287
22,192,923
28,018,210
5,825,287
22,192,923
(11,492,956)
9,549,511
21,042,467
11,492,956
34,713,820
23,220,864
$ - $
44,263,331 $
44,263,331
150
Fleet Management -
INTERNAL SERVICE FUNDS
To account for the expenses incurred to repair and
maintain the County's vehicles and equipment.
Revenues are generated by charging user
departments for maintenance of their vehicles and
equipment.
Self Insurance- To account for the expenses incurred for worker's
compensation claims, general and auto liability and
property damage, and employee health insurance
claims. Revenues are generated by charges to the
various departments and funds based on past
experience and actuarial estimates.
Geographic Information System -
To account for the expenses incurred for maintaining
the County's geographic information system.
Revenues are generated by charging user departments
for their use of the geographic information system.
151
Indian River County, Florida
Combining Statement of Net Assets
Internal Service Funds
September 30, 2011
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable - net
Due from other governments
Interest receivable
Inventories
Prepaid expenses
Total current assets
Non-current assets:
Capital assets - depreciable
Accumulated depreciation
Total non-current assets
Total assets
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Claims payable
Due to other funds
Accrued compensated absences
Total current liabilities (payable from current assets)
Non-current liabilities:
Claims payable
Accrued compensated absences
Total non-current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
150,925
29,248
Geographic
215,451
Fleet
Self
Information
2,395,278
Management
Insurance
Systems
Totals
17,212
1,698
$ 489 $
28,628,693 $
2,297,412 $
30,926,594
62,980
1,501,596
-
1,564,576
112,527
-
-
112,527
-
21,640
1,752
23,392
209,667
-
-
209,667
-
1,010,474
25,196
1,035,670
385,663
31,162,403
2,324,360
33,872,426
274,003
16,901
729,338
1,020,242
(169,597)
(16,901)
(428,209)
(614,707)
104,406
-
301,129
405,535
490,069
31,162,403
2,625,489
34,277,961
150,925
29,248
35,278
215,451
-
2,395,278
-
2,395,278
190,000
-
-
190,000
17,212
1,698
3,933
22,843
358,137
2,426,224
39,211
2,823,572
-
5,481,722
-
5,481,722
11,695
292
8,971
20,958
11,695
5,482,014
8,971
5,502,680
369,832
7,908,238
48,182
8,326,252
104,406
-
301,129
405,535
15,831
23,254,165
2,276,178
25,546,174
$ 120,237 $
23,254,165 $
2,577,307 $
25,951,709
152
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended September 30, 2011
OPERATING REVENUES
Charges for services:
Vehicle maintenance
Self insurance
Geographic information systems
Total revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest income
Gain on disposal of equipment
Total nonoperating revenues
Income (loss) before transfers
- 154,060 13,252 167,312
3,200 - - 3,200
3,200 154,060 13,252 170,512
(201,476) 2,032,891 (47,507) 1,783,908
Transfers in - 55,298 - 55,298
Change in net assets (201,476) 2,088,189 (47,507) 1,839,206
Total net assets - beginning 321,713 21,165,976 2,624,814 24,112,503
Total net assets - ending $ 120,237 $ 23,254,165 $ 2,577,307 $ 25,951,709
153
Geographic
Fleet
Self
Information
Management
Insurance
Systems
Totals
$ 3,426,504 $
-
$ - $
3,426,504
-
17,711,022
-
17,711,022
-
-
357,500
357,500
3,426,504
17,711,022
357,500
21,495,026
529,726
1,502,217
268,926
2,300,869
3,065,869
14,328,757
32,839
17,427,465
35,585
1,217
116,494
153,296
3,631,180
15,832,191
418,259
19,881,630
(204,676)
1,878,831
(60,759)
1,613,396
NONOPERATING REVENUES (EXPENSES)
Interest income
Gain on disposal of equipment
Total nonoperating revenues
Income (loss) before transfers
- 154,060 13,252 167,312
3,200 - - 3,200
3,200 154,060 13,252 170,512
(201,476) 2,032,891 (47,507) 1,783,908
Transfers in - 55,298 - 55,298
Change in net assets (201,476) 2,088,189 (47,507) 1,839,206
Total net assets - beginning 321,713 21,165,976 2,624,814 24,112,503
Total net assets - ending $ 120,237 $ 23,254,165 $ 2,577,307 $ 25,951,709
153
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2011
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Purchase of capital assets
Net cash provided by (used in) capital and
related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
3,200 - - 3,200
(41,106) - (55,900) (97,006)
(37,906) - (55,900) (93,806)
98 155,674 13,960 169,732
98 155,674 13,960 169,732
(19,325) 1,986,291 19,033 1,985,999
19,814 26,642,402 2,278,379 28,940,595
$ 489 $ 28,628,693 $ 2,297,412 $ 30,926,594
$ 489 $ 28,628,693 $ 2,297,412 $ 30,926,594
154
Geographic
Fleet
Self
Information
Management
Insurance
Systems
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $
3,382,026 $
17,536,084
$ 357,500 $
21,275,610
Cash paid to suppliers for goods and services
(350165466)
(14,2595562)
(30,655)
(17,3065683)
Cash paid to employees for services
(537,077)
(1,501,203)
(265,872)
(2,304,152)
Net cash provided by (used in) operating activities
(171,517)
1,775,319
60,973
1,6645775
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers
-
55,298
-
55,298
Proceeds from advances from other funds
190,000
-
-
190,000
Net cash provided by noncapital financing activities
190,000
55,298
-
2455298
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Purchase of capital assets
Net cash provided by (used in) capital and
related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
3,200 - - 3,200
(41,106) - (55,900) (97,006)
(37,906) - (55,900) (93,806)
98 155,674 13,960 169,732
98 155,674 13,960 169,732
(19,325) 1,986,291 19,033 1,985,999
19,814 26,642,402 2,278,379 28,940,595
$ 489 $ 28,628,693 $ 2,297,412 $ 30,926,594
$ 489 $ 28,628,693 $ 2,297,412 $ 30,926,594
154
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2011
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Geographic
Fleet Self Information
Management Insurance Systems Totals
$ (204,676) $ 1,878,831 $ (60,759) $ 1,613,396
Depreciation
35,585
1,217
116,494
153,296
(Increase) Decrease in assets:
Accounts receivable
(12,846)
(174,938)
-
(187,784)
Due from other governments
(31,632)
-
-
(31,632)
Inventories
(53,469)
-
-
(53,469)
Deposits
-
133,645
(25,196)
108,449
Increase (Decrease) in liabilities:
Accounts payable
102,872
(42,450)
27,380
87,802
Claims payable
-
(22,000)
-
(22,000)
Accrued compensated absences
(7,351)
1,014
3,054
(3,283)
Total adjustments
33,159
(103,512)
121,732
51,379
Net cash provided by (used in) operating activities $
(171,517) $
1,775,319 $
60,973 $
1,664,775
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments
$ - $ 26,384 $
155
2,136 $ 28,520
R
156
E-3
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial
capacity by the County.
157
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2011
ASSETS
Cash and cash equivalents
Investments
Accounts receivable
Total assets
LIABILITIES
Accounts payable
Due to other governments
Other deposits held in escrow
Total liabilities
Balance Balance
October 1, September 30,
$ 14,599,180 $ 351,504,571 $ 353,532,592 $ 12,571,159
91,189 37,782 51,450 77,521
.p 1T,Vl V,JVJ .p J✓1,JTJ,VJV .p JJJ,JUT,VTG .p 1L,VT%,J//
$ 461,889 $
58,086,227 $
57,726,757 $
821,359
5,483,574
315,210,495
315,754,154
4,939,915
8,744,906
26,144,838
28,001,641
6,888,103
$ 14,690,369 $
399,441,560 $
401,482,552 $
12,649,377
158
Statistical Section
This part of the Indian River County Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures and required supplementary information says about the County's overall financial health.
Contents
Pa e s
Financial Trends (Schedules 1 - 5) 160-170
These schedules contain trend information to help the reader understand how the
County's financial performance and well-being have changed over time.
Revenue Capacity (Schedules 6 — 9) 171-175
These schedules contain information to help the reader assess the County's most
significant local revenue source, the property tax.
Debt Capacity (Schedules 10 —15) 176-184
These schedules present information to help the reader assess the affordability of
the County's current levels of outstanding debt and the County's ability to issue
additional debt in the future.
Demographic and Economic Information (Schedules 16 —17) 185-186
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the County's financial activities take
place.
Operating Information (Schedules 18 — 21) 188-199
These schedules contain service and infrastructure data to help the reader
understand how the information in the County's financial report relates to the
services the County provides and the activities it performs.
Additional Bond Disclosures (Schedules 22 — 27) 200-205
These schedules provide information for required continuing disclosure for the
water and sewer, golf course and spring training bonds.
Sources:
Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial report for the relevant year.
159
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Indian River County, Florida
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2002 2003 2004 2005
$ 225,179,898 $ 227,795,289 $ 242,057,257 $ 264,193,976
113,252, 580 112,083,712 128,024,220 150,019, 583
17,559,989 20,389,245 22,697,741 60,737,524
$ 355,992,467 $ 360,268,246 $ 392,779,218 $ 474,951,083
$ 106,004,641 $ 113,354,198 $ 122,280,348 $ 134,402,945
31,179,151 42,971,494 57,825,011 81,084,337
45,137,431 47,079,296 44,084,834 52,553,913
$ 182,321,223 $ 203,404,988 $ 224,190,193 $ 268,041,195
Primary government
Invested in capital assets, net of related debt $ 331,184,539 $ 341,149,487 $ 364,337,605 $
398,596,921
Restricted 144,431,731 155,055,206 185,849,231
231,103,920
Unrestricted 62,697,420 67,468,541 66,782,575
113,291,437
Total primary government net assets $ 538,313,690 $ 563,673,234 $ 616,969,411 $
742,992,278
(A) Completed construction and renovations for beach renourishment, county administration buildings,
emergency operations center, five fire stations, county park improvements, and the purchase of
environmentally sensitive lands.
(B) The County reclassified special revenue funds from unrestricted to restricted net assets.
160
Schedule 1
2006
2007
2008
2009
2010
2011
$ 278,213,361 $
374,501,758 (A)
$
445,541,175 $
461,709,848 $
480,243,738 $
492,300,301
158,046,966
173,236,941 (B)
163,119,085
158,306,364
132,928,838
125,452,516
121,561,389
60,726,026 (B)
55,081,576
55,914,407
85,810,359
84,860,897
$ 557,821,716 $
608,464,725
$
663,741,836 $
675,930,619 $
698,982,935 $
702,613,714
$ 152,168,135 $
174,540,682
$
206,069,196 $
223,273,040 $
223,375,337 $
217,876,742
89,071,967
83,840,471
75,814,407
51,021,928
27,898,292
24,230,101
53,751,547
47,338,783
24,624,779
37,122,462
54,592,201
61,041,483
$ 294,991,649 $
305,719,936
$
306,508,382 $
311,417,430 $
305,865,830 $
303,148,326
$ 430,381,496 $
549,042,440
$
651,610,371 $
684,982,888 $
703,619,075 $
710,177,043
247,118,933
257,077,412
238,933,492
209,328,292
160,827,130
149,682,617
175,312,936
108,064,809
79,706,355
93,036,869
140,402,560
145,902,380
$ 852,813,365 $
914,184,661
$
970,250,218 $
987,348,049 $
1,004,848,765 $
1,005,762,040
161
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Cultural/recreation
Court related
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water and sewer
Solid waste
Golf course
Other
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Physical environment
Transportation
Human service
Cultural/recreation
Court related
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water and sewer
Solid waste
Golf course
Other
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Notes
Indian River County, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
Inrn
17,942,122
45,186,455
1,648,446
14,878,771
357,911
5,975,775
8,157,505
5,472,095
1,710,405
101,329,485
23,240,123
8,043,106
2,777,519
1,882,038
35,942,786
$ 137,272,271
5,349,797
4,120,093
64,314
4,476,914
186,290
473,043
1,515,840
5,425,369
4,818,626
26,430,286
19,962,496
9,897,222
2,897,502
2,009,737
11,256,039
46,022,996
$ 72,453,282
2003 2004
20,323;241
46,409,761
791,383
16,264,468
587;227
6,165,603
8,711,251
6,144,728
1,549,957
106,947,619
25,015,125
8,589,141
2,842,907
2,033,754
38,480,927
$ 145,428,546
6,513,557
4,288,357
29,260
5,584,999
302,998
776,829
1,458,688
5,175,499
19,908,254 (A)
44,038,441
21,210,935
10,187,432
3,112,087
2,432,420
271,662
19,796,906 (13)
57,011,442
$ 101,049,883
(A) County received grants for the purchase of environmentally sensitive lands and beach erosion; recorded as capital assets.
(B) Contributions for water andsewer services by developers due to significant increase in County population.
(C) Increase in revenue and related expenses due to hurricane Frances and Jeanne in 2004; and hurricane Wilma in 2005.
(D) Impact fees increased with building boom.
(E) Environmentally sensitive lands purchased with bond proceeds.
(F) Significant increase in SHIP programs due to population growth and building boom in 2005.
(G)Issued new Limited G.O.B. debt for $48,600,000.
(H) Completed sections of beach renourishment program.
(I) Grants received for beach renourishment, environmental sensitive lands, and various road projects.
(J) Includes adjustment for prior years' public safety expenses.
(K) Includes full year impact of increase in personnel, raises, and the depreciation and operating cost of new jail.
(L) Piper incentive of $4 million.
(M) Increase in operating costs due to maintenance projects.
(N) Received $16 million grant reimbursements for physical environment grants including beach restoration and stormwater.
(0) Increase due to $5 million contribution towards joint use library and increased depreciation for beach restoration projects.
(P) Decrease due to reduced impact fees collections (slowdown in construction activity).
162
23,287,533 (C)
54,052,726 (C)
1,039,550
21,335,262 (C)
639,826
7,664,422 (C)
9,616,323 (C)
6,221,983
1,313,340
125,170,965
26,907,959
14,103,641 (C)
2,806,115
2,532,617
46,350,332
$ 171,521,297
7,593,486
3,927,664
92,354
11,182,015
604,379
813,827
1,449,771
9,270,478
11,784,511 (C)
46,718,485
22,984,883
11,160,368
3,099,287
3,202,380
5,760,512
19,138,278 (B)
65,345,708
$ 112,064,193
IM5
18,165,441
54,271,542
2,850,738
21,726,741
696,448
7,385,726
10,775,291
5,704,361
1,246,237
122,822,525
30,260,577
19,156,896 (C)
2,939,321
3,768,301
56,125,095
$ 178,947,620
8,779,557
4,712,594
631,456
37,384,003 (D)
821,811
800,555
2,294,908
16,310,024 (C)
6,069,586
77,804,494
25,579,512
16,874,618
3,247,815
4,535,869
8,518,757
38,112,182 (B)
96,868,753
$ 174,673,247
2006 2007
2008 2009
$ 14,642,124 $
15,506,424
$ 7,416,850
$ 25,837,007
58,578,985
42,050,455 (1)
70,973,212 (K)
71,221,082
8,490,570 (E)
34,998,512 (E)
27,974,837
813,580
22,011,006
26,173,989
25,742,974
23,711,653
1,077,731
950,024
4,583,763 (L)
661,897
12,270,899 (F)
13,925,599
12,590,578
8,453,562
11,546,217
31,196,252 (H)
9,510,029
24,559,117 (0)
6,014,793
6,870,466
7,265,471
6,765,203
2,315,372 (G)
3,220,907 (G)
2,764,803
2,906,802
136,947,697
174,892,628
168,822,517
164,929,903
2,537,665
1,858,420
33,387,825
37,518,226
41,354,025 (M)
37,523,097
11,558,323
10,331,431
11,355,697
10,407,437
3,058,307
3,084,837
2,775,497
2,937,141
4,202,588
3,703,658
3,010,668
2,168,894
52,207,043
54,638,152
58,495,887
53,036,569
$ 189,154,740 $
229,530,780
$ 227,318,404
$ 217,966,472
1,328,225
$ 10,437,774 $
7,957,770
$ 6,943,354
$ 6,028,321
7,151,354
5,728,644
5,754,082
5,884,118
854,219
1,447,553
972,865
636,219
16,619,853
5,618,055
5,478,734
2,157,456 (P)
754,916
545,305
331,856
204,299
5,480,612
2,425,679
1,730,471
1,322,785
2,466,882
2,800,680
2,971,093
2,375,430
13,420,891
25,561,608 (1)
15,227,659
11,077,388
13,081,116
13,441,915
29,165,641 (I)
15,032,731
70,267,617
65,527,209
68,575,755
44,718,747
28,029,062
27,541,849
27,876,971
26,957,649
13,741,864
11,946,566
10,758,812
9,713,883
3,306,424
3,374,772
3,313,994
3,279,135
4,746,668
3,250,585
2,726,888
1,572,693
1,235,413
72,828
217,751
1,194,994
26,781,118 (B)
9,729,371
10,802,859
3,748,585
77,840,549
55,915,971
55,697,275
46,466,939
$ 148,108,166 $
121,443,180
$ 124,273,030
$ 91,185,686
Continued
163
Schedule 2
2010 2011
$ 23,506,576
$
21,324,680
68,235,492
67,393,943
1,405,690
1,353,074
20,861,672
22,300,819
2,525,988
2,056,453
7,370,995
7,762,962
16,009,122
16,484,242
6,251,773
5,774,032
2,714,422
2,526,114
148,881,730
146,976,319
34,748,276
33,818,640
10,683,984
10,370,476
2,715,607
2,537,665
1,858,420
1,623,862
50,006,287
48,350,643
$ 198,888,017
$
195,326,962
$ 5,889,678
$
5,845,567
5,267,209
6,076,085
21,006
24,204
1,514,132
2,090,194
295,812
346,689
1,328,225
1,340,550
545,967
501,980
15,772,265
7,926,832
7,016,429
1,937,488
37,650,723
26,089,589
27,738,920
27,842,092
8,972,136
9,221,396
3,148,029
3,163,062
1,612,870
1,588,934
1,713,074
1,923,271
43,185,029
43,738,755
$ 80,835,752
$
69,828,344
Net
Governmental activities
Business -type activities
Total primary government net expenses
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees
State shared revenues
Insurance recoveries
Interest earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
State shared revenues
Interest earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
Indian River County, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
2002
2003
2004
2005
16,983,678
17,162,979
$ (74,899,199) $
(62,909,178) $
(78,452,480) (A) $
(45,018,031)
10,080,210
18,530,515 (B)
18,995,376 (B)
40,743,658 (B)
$ (64,818,989) $
(44,378,663) $
(59,457,104) $
(4,274,373)
$ 55,407,180 $
60,139,514
1,581,362
2,595,265
16,983,678
17,162,979
5,797,407
6,222,326
12,914,452
10, 605,656
5,189,432
2,787,928
1,103,457
1,761,754
(1,403,301)
(157,870)
97,573, 667
101,117,552
3,790,253
2,332,013
15,100
63,367
158,048
157,870
3,963,401
2,553,250
$ 101,537,068 $
103,670,802
Change in Net Assets
Governmental activities $ 22,674,468 $ 38,208,374
Business -type activities 14,043,611 21,083,765
Total primary government change in net assets $ 36,718,079 $ 59,292,139
Notes:
(A) Hurricanes Frances and Jeanne FEMA reimbursements had not yet been received.
(B) Growth in water and sewer services due to expansion of County population.
(C) Taxable values increased by $2 billion.
(D) Transfers for proportionate share of new county administration building.
164
$ 67,701,525
2,427,908
18,825,771
6,720,166
11,608,557
2,536,347
1,336,789
(193,611)
110,963,452
1,590,203
6,015
193,611
1,789,829
$ 112,753,281
$ 32,510,972
20,785,205
$ 53,296,177
$ 71,698,850
2,480,497
21,892,558
7,941,020
14,022,896
3,666,960
4,444,772
1,235,708
(193,365)
127,189,896
2,861,308
52,671
193,365
3,107,344
$ 130,297,240
$ 82,171,865
43,851,002
$ 126,022,867
Schedule 2
2006
2007
2008
2009
2010
2011
$ (66,680,080)
$ (109,365,419)
$
(100,246,762)
$
(120,211,156)
$
(111,231,007)
$
(120,886,730)
25,633,506
1,277,819
(2,798,612)
(6,569,630)
(6,821,258)
(4,611,888)
$ (41,046,574)
$ (108,087,600)
$
(103,045,374)
$
(126,780,786)
$
(118,052,265)
$
(125,498,618)
$ 82,448,807 (C)
$ 92,592,309
$
92,483,561
$
87,265,989
$
78,670,463
$
69,856,750
2,465,462
7,094,485
7,343,180
7,131,231
5,933,535
5,600,767
21,855,885
20,738,502
20,088,899
19,292,179
19,022,728
19,261,033
9,318,394
9,732,773
9,443,399
9,670,169
9,254,621
8,730,861
13,043,670
12,368,421
11,596,227
11,227,450
17,487,653
17,328,867
1,104,116
-
-
-
-
-
12,163,993
16,004,890
10,347,019
5,747,573
2,079,873
1,299,894
2,089,540
1,583,343
2,170,033
2,018,901
2,061,415
3,082,481
5,060,846 (D)
(106,295)
2,051,555
(7,452,905)
(25,965)
(643,144)
149,550, 713
160,008,428
155, 523, 873
134,900, 587
134,484,323
124, 517,509
-
-
-
417,500
-
-
6,335,240
9,209,517
5,553,239
3,685,805
1,173,512
723,870
42,554
134,656
85,374
7,893
70,181
562,651
(5,060,846) (D)
106,295
(2,051,555)
7,452,905
25,965
643,144
1,316,948
9,450,468
3,587,058
11,564,103
1,269,658
1,929,665
$ 150,867,661
$ 169,458,896
$
159,110,931
$
146,464,690
$
135,753,981
$
126,447,174
$ 82,870,633
$ 50,643,009
$
55,277,111
$
14,689,431
$
23,253,316
$
3,630,779
26,950,454
10,728,287
788,446
4,994,473
(5,551,600)
(2,682,223)
109,821,087
$ 61,371,296
$
56,065,557
$
19,683,904
$
17,701,716
$
948,556
165
Indian River County, Florida
Fund Balances, Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accountine
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total governmental funds
Notes:
(A) The County implemented GASB Statement 54 in fiscal year 2010.
166
2002
2003
2004
2005
General Fund
Reserved
$
$
$ -
$
Unreserved
18,244,725
20,104,115
20,623,340
30,152,425
Total general fund
$
18,244,725 $
20,104,115
$ 20,623,340
$
30,152,425
All other governmental funds
Reserved
$
40,013,059 $
40,667,031
$ 47,458,489
$
50,257,972
Unreserved, reported in:
Special revenue funds
75,879,893
69,317,385
74,344,120
115,822,479
Total all other governmental funds
$
115,892,952 $
109,984,416
$ 121,802,609
$
166,080,451
Total governmental funds
$
134,137,677 $
130,088,531
$ 142,425,949
$
196,232,876
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total governmental funds
Notes:
(A) The County implemented GASB Statement 54 in fiscal year 2010.
166
Schedule 3
2006
2007
2008
2009
2010(A)
2011
$ -
$
-
$
8,000,000
$
8,000,000
$
N/A
N/A
45,300,882
50,321,956
44,874,259
47,616,773
N/A
N/A
$ 45,300,882
$
50,321,956
$
52,874,259
$
55,616,773
$
N/A
N/A
$ 38,075,117
$
23,047,708
$
49,667,320
$
53,252,040
$
N/A
N/A
N/A
N/A
183,318,603
149,564,925
96,950,614
91,600,421
N/A
N/A
$ 221,393,720
$
172,612,633
$
146,617,934
$
144,852,461
$
N/A
N/A
$ 266,694,602
$
222,934,589
$
199,492,193
$
200,469,234
$
N/A
N/A
$
162,760
363,619
18,290
50,015
21,757,565
21,041,045
1,415,000
1,660,000
33,160,873
33,694,612
$
56,514,488
56,809,291
$
2,316,373
814,858
130,175,284
125,082,370
4,691,573
4,661,146
9,471,022
10,013,457
(1,184,722)
(354,995)
$
145,469,530
140,216,836
$
201,984,018
197,026,127
167
Indian River County, Florida
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accountine)
168
2002
2003
2004
2005
Revenues
Taxes
$ 80,488,343 $
86,120,084 $
95,675,370 $
104,012,925
Permits, fees, and special assessments
4,746,172
5,499,533
11,788,168
38,043,246
Intergovernmental
20,802,982
35,213,140
26,588,303
35,973,818
Charges for services
11,368,399
13,683,108
14,282,587
18,151,546
Judgments, fines and forfeits
1,421,542
1,584,737
1,508,786
1,715,875
Interest
5,007,150
2,999,915
1,999,574
4,083,164
Miscellaneous
2,362,780
1,964,177
1,791,613
1,398,166
Total Revenues
126,197,368
147,064,694
153,634,401
203,378,740
Expenditures
Current:
General government
16,979,694
18,446,787
19,996,339
20,107,020
Public safety
45,352,323
47,565,048
55,792,130
57,045,359
Physical environment
1,473,749
17,613,489
1,751,551
2,989,117
Transportation
16,686,374
19,442,909
21,928,790
21,285,597
Economic environment
347,096
583,850
627,914
713,019
Human service
5,756,579
6,178,917
7,185,411
7,270,391
Culture/recreation
9,1 t 7,900
18,378,068
13,179,751
15,062,134
Court related
5,802,798
5,998,260
6,210,614
5,630,734
Debt service:
Principal
2,229,201
2,881,492
2,394,142
2,239,663
Interest and fiscal charges
1,621,178
1,639,145
1,333,392
1,255,837
Capital outlay
20,767,383
12,228,005
10,994,900
15,779,577
Total Expenditures
126,134,275
150,955,970
141,394,934
149,378,448
Excess of revenues over
(under) expenditures
63,093
(3,891,276)
12,239,467
54,000,292
Other Financing Sources (Uses)
Debt issuance
11,000,000
7,800,000
Payments to escrow agent
(7,800,000)
Payments from capital leases
275,000
291,562
Transfers out
(302,227)
(157,870)
(193,611)
(193,365)
Transfers in
Total other financing sources (uses)
10,972,773
(157,870)
97,951
(193,365)
Net change in fund balances
$ 11,035,866 $
(4,049,146) $
12,337,418 $
53,806,927
Debt service as a percentage of
noncapital expenditures
4.0%
4.4%
3.1%
3.0%
168
Schedule 4
2006
2007
2008
2009
2010
2011
$ 116,088,548 $
130,158,069 $
119,915,640 $
113,689,399 $
103,626,726 $
94,718,550
26,285,557
8,397,437
15,888,780
12,433,598
11,322,039
11,189,393
38,261,489
54,252,074
49,065,955
34,305,682
37,687,574
30,453,182
18,204,600
18,997,529
18,678,544
16,852,653
14,665,805
15,030,329
2,069,593
2,403,093
2,137,413
1,792,517
852,012
936,995
10,574,489
15,777,318
10,052,801
5,721,869
2,061,385
1,173,103
4,597,369
3,495,610
2,449,035
2,489,532
2,383,493
4,175,614
216,081,645
233,481,130
218,188,168
187,285,250
172,599,034
157,677,166
21,831,839
24,815,255
25,323,595
22,566,113
20,894,116
19,271,196
65,975,870
72,907,822
73,982,636
74,813,164
71,489,613
70,432,615
8,955,262
34,324,331
28,111,033
910,213
1,131,173
1,371,734
30,610,413
49,503,680
50,231,090
38,111,512
27,497,907
28,432,207
1,054,239
968,227
4,579,574
653,547
2,520,339
2,099,698
12,470,222
13,862,463
12,619,575
8,621,760
7,267,406
7,625,369
16,380,438
23,751,173
21,068,267
15,450,688
18,453,642
14,706,194
5,915,727
6,649,724
6,940,682
6,620,830
6,214,831
5,983,085
2,615,659
4,870,876
5,069,591
5,120,000
5,315,000
4,270,000
1,790,431
3,255,767
2,803,585
2,948,758
2,758,138
2,562,374
37,848,475
42,489,997
11,617,867
10,435,212
7,487,068
5,825,287
205,448,575
277,399,315
242,347,495
186,251,797
171,029,233
162,579,759
10,633,070
(43,918,185)
(24,159,327)
1,033,453
1,569,801
(4,902,593)
49,996,735
-
-
264,467
126,000
(236,067)
(19,736,023)
(13,254,013)
(14,366,145)
(17,057,014)
(8,918,267)
10,067,988
19,629,728
13,844,944
14,309,733
17,001,997
8,862,969
59,828,656
158,172
716,931
(56,412)
(55,017)
(55,298)
$ 70,461,726 $
(43,760,013) $
(23,442,396) $
977,041 $
1,514,784 $
(4,957,891)
3.4%
4.8%
5.0%
5.4%
5.6%
5.0%
169
Indian River County, Florida
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
170
(modified accrual basis of accounting)
Schedule 5
Fiscal Year
Property (A)
Sales & Use
Tourist Franchise (B)
Gasoline
Other
Total
2002 $
56,988,542 $
11,399,491 $
1,410,409$ 5,797,407$
3,967,345 $
925,149$
80,488,343
2003
62,734,779
11,678,272
1,286,885 6,222,326
3,222,742
975,080
86,120,084
2004
70,129,433
12,850,023
1,443,271 6,720,166
3,497,894
1,034,583
95,675,370
2005
74,179,347
15,582,689
1,675,781 7,941,020
3,573,036
1,061,052
104,012,925
2006
84,914,269
15,736,078
1,517,360 9,318,394
3,526,774
1,075,673
116,088,548
2007
99,686,794
14,549,834
1,449,083 9,732,773
3,482,514
1,257,071
130,158,069
2008
99,826,741
13,714,228
1,584,514 -
3,218,705
1,571,452
119,915,640
2009
94,397,220
13,023,095
1,294,163 -
3,369,962
1,604,959
113,689,399
2010
84,603,998
12,660,518
1,324,953 -
3,498,698
1,538,559
103,626,726
2011
75,457,517
12,942,483
1,487,060 -
3,346,362
1,485,128
94,718,550
(A) The County's primary source of revenue is property taxes, amounting to
80 percent of Governmental
Funds tax
revenues
in 2011. Consequently,
supplemental required schedules are provided only for property tax revenues.
(B) Effective
10/01/07, the State
of Florida changed
its uniform accounting manual to remove
franchise fees from
the taxes
designation.
170
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
Schedule 6
Real
Personal
Less:
Total Taxable
Fiscal Property
Property
Total
Tax -Exempt
Assessed
Year Actual Value
Actual Value
Actual Value
Property
Value
2002 $ 10,539,705,283 $
707,941,621 $
11,247,646,904 $
2,706,441,764 $
8,541,205,140
2003 11,985,128,952
694,305,280
12,679,434,232
3,178,543,019
9,500,891,213
2004 13,547,372,018
693,374,322
14,240,746,340
3,556,717,407
10,684,028,933
2005 15,716,463,269
699,716,008
16,416,179,277
4,236,183,618
12,179,995,659
2006 19,265,033,998
712,011,582
19,977,045,580
5,734,060,645
14,242,984,935
2007 25,458,676,130
755,187,275
26,213,863,405
8,366,701,791
17,847,161,614
2008 25,155,652,635
782,529,196
25,938,181,831
7,357,884,893
18,580,296,938
2009 24,141,420,963
739,467,578
24,880,888,541
7,431,618,464
17,449,270,077
2010 21,272,439,325
761,011,306
22,033,450,631
6,237,291,938
15,796,158,693
2011 18,741,543,869
711,180,228
19,452,724,097
5,313,689,267
14,139,034,830
Source: Indian River County Property Appraiser;
values are established as of January 1 of the previous
calendar year, i.e., January 1,
2010 taxable values
apply to the fiscal
year ending September 30, 2011.
The actual value is based upon market values
in the area. Property is assessed at the actual values less
various exemptions for homestead, age, disability,
widows, religious,
charitable, educational
and
governmental situations.
Total taxable values are also
presented on Schedules 8 and 11.
171
Total
Direct
Tax Rate
5.5234
5.4713
5.5181
5.1563
4.9173
4.3250
4.1037
4.1493
4.1666
4.1625
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates
Last Ten Fiscal Years
2002 2003
County direct rate
5.7500
1.4730
General fund
4.0501
3.8729
Municipal service
1.4733
1.5984
Total direct rate (A)
5.5234
5.4713
County -wide district school board rate
9.0820
8.7320
Other Countv-wide rates
Emergency Management Services District
2.3660
2.2750
Land acquisition bond
0.1947
0.2839
Total other County -wide rates
2.5607
2.5589
Total County -wide rate (B)
17.1661
16.7622
City rates
Fellsmere
5.7500
5.7500
Indian River Shores
1.4284
1.4370
Sebastian
4.5904
4.5904
Orchid
1.3430
0.9354
Vero Beach
2.1425
2.1425
Average of cities rates
3.0509
2.9711
Other special district rates
1.6105
1.9008
(A) Per Florida State Statute 200.071, no ad valorem tax millage shall be levied against real
property
and tangible personal property by counties in excess of 10 mills, except for voted levies.
(B) Total County -wide rate is borne by all property owners within the County boundaries.
Source: Indian River County Property Appraiser
172
2004 2005
3.8377 3.6233
8.7100 8.4990
2.1871 1.9836
0.2344 0.2106
16.6496 15.8495
5.7500
5.7500
1.4730
1.4730
4.5904
4.5904
0.8954
0.7508
2.1425
2.1425
2.9703 2.9413
2.1548 1.8923
Schedule 7
2006
2007
2008
2009
2010
2011
3.5204
3.1914
3.0202
3.0689
3.0892
3.0892
1.3969
1.1336
1.0835
1.0804
1.0774
1.0733
4.9173
4.3250
4.1037
4.1493
4.1666
4.1625
8.2400
7.4430
7.5380
7.0400
7.5960
8.2500
1.9911
1.7639
1.7201
1.7148
1.7148
1.7148
0.1789
0.4108
0.4082
0.4220
0.3879
0.4087
2.1700
2.1747
2.1283
2.1368
2.1027
2.1235
5.7500
5.7500
4.4301
4.4300
4.4300
4.4300
1.4730
1.4730
1.3923
1.3923
1.3923
1.4105
3.9325
3.0519
2.9917
3.3456
3.3456
3.3041
0.6900
0.4525
0.4494
0.4550
0.4550
0.4550
2.2925
2.1425
1.9367
1.9367
1.9367
1.9367
2.8276
2.5740
2.2400
2.3119
2.3119
2.3073
1.6082
1.4795
1.3817
1.5362
1.7515
1.7663
173
Indian River County, Florida
Principal Property Taxpayers
Year 2011 and Year 2002
Taxpayer
Real
Property
Assessed
Valuation
Florida Power & Light
$ 91,400,547
Disney Vacation Dev. Inc.
72,961,084
BellSouth Telecomm Inc.
42,197,328
Johns Island Club Inc.
40,527,089
I.R. Mall Association, Ltd.
38,298,008
Adult Community Total Services
36,637,750
Windsor Properties
31,266,657
Sebastian Hospital Inc.
30,009,649
Fellsmere Joint Venture
25,909,620
CVS Vero FL Distribution LLC
21,769,006
The New Piper Aircraft
Horizon Outlet Center Ltd.
Wal-Mart Stores
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 430,976,738
Total County Taxable Valuation $ 14,139,034,830
(from schedule 6)
Source: Indian River County Property Appraiser
Schedule 8
2011
2002
Percentages
Real
Percentages
of Total
Property
of Total
Assessed
Assessed
Assessed
Rank
Valuation
Valuation
Rank
Valuation
1
0.65 $
61,098,500
2
0.71
2
0.52
69,069,073
1
0.81
3
0.30
58,655,192
3
0.69
4
0.29
30,849,571
7
0.36
5
0.27
47,574,020
5
0.56
6
0.26
30,514,130
8
0.36
7
0.22
50,376,579
4
0.59
8
0.21
-
-
9
0.18
-
-
10
0.15
-
-
-
34,121,169
6
0.40
-
29,737,070
9
0.35
-
28,577,908
10
0.33
174
3.05% $ 440,573,212 5.16%
$ 8,541,205,140
Indian River County, Florida
Property Tax Levies And Collections
Last Ten Fiscal Years Schedule 9
Percent of
Total
Current
Percent of
Tax
Tax
Year
Levy
Collections
2002 $
59,184,019 $
56,856,770
2003
65,289,186
62,668,552
2004
72,306,331
69,906,761
2005
76,748,078
73,991,702
2006
87,754,823
84,736,835
2007
102,986,045
99,404,127
Indian River County, Florida
Property Tax Levies And Collections
Last Ten Fiscal Years Schedule 9
Percent of
Percent of
Current Tax
Delinquent
Total
Total Tax
Collections
Tax
Tax
Collections
To Tax Levy
Collections (1)
Collections
To Tax Levy
96.07%
$ 95,364 $
56,952,134
96.23%
95.99
7,797
62,676,349
96.00
96.68
176,345
70,083,106
96.93
96.41
111,220
74,102,922
96.55
96.56
34,344
84,771,179
96.60
96.52
61,566
99,465,693
96.58
2008 103,700,766 99,716,496 96.16 48,241 99,764,737 96.20
2009 97,439,623 94,107,423 96.58 273,002 94,380,425 96.86
2010 87,360,868 84,431,741 96.65 171,392 84,603,133 96.84
2011 77,790,733 75,215,452 96.69 290,472 75,505,924 97.06
All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered
to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts
are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month
of January and 1% in the month of February. The taxes paid in March are without discount.
(1) On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After the sale, tax
certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed
tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County.
Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the
property or by the seven year statute of limitations. The County does not accrue its portion of the County -held certificates due to
the immaterial amount.
Source: Indian River County Property Appraiser and Tax Collector provided the above information; consequently, the
reported collections on this schedule will vary from the actual collections as reported on Schedule 5. The Tax Collector
does not report the interest earnings on the collections, however, the Board includes those interest earnings as part of the total
tax collection.
175
Indian River County, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Business -type Activities
General Spring Training
Recreational
Obligation Capital Facility Bonds
Revenue
Capital
Water & Sewer
Year Bonds (A) Leases 2001 Series
Bonds (B)
Leases
Bonds (C)
2002 $ 19,810,000 $ 754,009 $ 16,450,000 $
7,110,000
$ - $
74,525,000
2003 17,725,000 417,518 15,990,000
6,735,000
-
72,760,000
2004 16,080,000 434,938 15,515,000
6,045,000
-
70,905,000
2005 14,385,000 380,275 15,025,000
5,595,000
263,237
64,880,000
2006 61,255,000 - 14,520,000
5,135,000
193,786
62,490,000
2007 57,160,000 8,591 14,000,000
4,660,000
110,025
59,985,000
2008 52,770,000 - 13,455,000
4,175,000
28,126
57,365,000
2009 48,210,000 - 12,895,000
3,685,000
-
52,720,000
2010 43,480,000 - 12,310,000
3,175,000
-
49,850,000
2011 39,815,000 - 11,705,000
2,655,000
-
46,860,000
(A) General Obligation Bonds include Series 2001 and Limited General Obligation Bonds, Series 2006.
This information is also presented on Schedule 11.
(B) Recreational Revenue Refunding Bonds, Series 2003
(C) Water & Sewer Bonds include Series 1993, Refunding Series 2005, and Series 2009.
(D) Information not available
(E) Refer to Schedule 16 for personal income and population information
Further information on these notes may be found in Note 13.
Source for per capita income is University of Florida, Bureau of Economic and Business Research.
176
Schedule 10
177
Percentage
Total
of Total Debt
Debt
Primary
to Personal
Per
Government
Income (E)
Capita (E)
$ 118,649,009
2.54%
$ 1,004
113,627,518
2.33
938
108,979,938
1.86
859
100,528,512
1.57
773
143,593,786
2.05
1,062
135,923,616
1.74
973
127,793,126
1.67
902
117,510,000
1.54
831
108,815,000
(D)
788
101,035,000
(D)
728
177
Indian River County, Florida
Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita
Last Ten Fiscal Years Schedule 11
178
Ratio Of
Gross General
Debt Service
Net Bonded
Net Bonded
Fiscal
Taxable
Obligation
Monies
Net Bonded
Debt To
Debt Per
Year
Population (A) Value (A)
Bonded Debt
Available (A)
Debt
Taxable Value
Capita
2002
118,149 $ 8,541,205,140 $
19,810,000 $
1,085,999 $
18,724,001
0.0022
158.4779
2003
121,274 9,500,891,213
17,725,000
684,016
17,040,984
0.0018
140.5164
2004
126,829 10,684,028,933
16,080,000
867,776
15,212,224
0.0014
119.9428
2005
130,043 12,179,995,659
14,385,000
1,106,353
13,278,647
0.0011
102.1097
2006
135,262 14,242,984,935
61,255,000
1,375,837
59,879,163
0.0042
442.6902
2007
139,757 17,847,161,614
57,160,000
1,956,189
55,203,811
0.0031
394.9985
2008
141,667 18,580,296,938
52,770,000
2,530,612
50,239,388
0.0027
354.6301
2009
141,475 17,449,270,077
48,210,000
2,841,769
45,368,231
0.0026
320.6802
2010
138,028 * 15,796,158,693
43,480,000
1,845,314
41,634,686
0.0026
301.6394
2011
138,694 14,139,034,830
39,815,000
1,743,781
38,071,219
0.0027
274.4980
(A) Columns are provided as additional information for General Obligation
Bonds (G.O.B.), Series 2001
and Limited
G.O.B.,
Series 2006. Total taxable values are also presented in Schedule 6.
Gross G.O.B. debt is also presented on Schedule
10.
Source
of population data is the University of Florida, Bureau of
Economic and Business Research.
* 2010
population adjusted due to the recent census.
178
Indian River County, Florida
Computation of Legal Debt Margin
September 30, 2011 Schedule 12
Computation of the Legal Debt Margin is omitted because the Constitution of the
State of Florida (F. S. 200.181) and Indian River County set no legal debt limit.
179
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2011
Schedule 13
Governmental Unit
Share of
Debt
Percentage
Overlapping
Debt repaid with property taxes:
Outstanding
Applicable
Debt
Indian River County General Obligation Bonds, Series 2001 $
3,576,442
(A) 100% $
3,576,442
Indian River County Limited General Obligation Bonds, Series 2006
34,494,777
(B) 100
34,494,777
Total direct debt of County:
38,071,219
Indian River County School District General Obligation Bonds, 2002 Refunding
8,493,998
(C) 100
8,493,998
Other debt:
Indian River County School District Certificates of Participation
131,346,000
(C) 100
131,346,000
Indian River County School District Capital Lease Payable
1,062,988
(C) 100
1,062,988
Total overlapping debt:
140,902,986
Total direct and overlapping debt:
$
178,974,205
(A) Ending General Obligation, Series 2001 balance $
4,430,000
Less: Fund balance available in debt service fund
(853,558)
Net debt outstanding
3,576,442
(B) Ending Limited General Obligation, Series 2006 balance
35,385,000
Less: Fund balance available in debt service fund
(890,223)
Net debt outstanding
34,494,777
Total direct debt of County: $ 38,071,219
(C) Indian River County School District, as of June 30, 2011
Source: Information on outstanding debt provided by the Indian River County School District Finance Department.
Note: Overlapping debt is borne by all property owners within the County boundaries.
180
R
181
E-3
Indian River County, Florida
Pledged Revenue Coverage
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
Note: In accordance with Water and Sewer Revenue Refunding Bonds, Series 2005 bond covenants, there are items included in the
debt service coverage calculation other than normal operating revenues. These items include surcharges and collections on
special assessments. Expenses specifically excluded: renewal and replacement, depreciation, amortization and interest expense,
and loss on disposal of equipment.
Note: Water and Sewer debt information can be found in Note 13.
182
2002
2003
2004
2005
Uniform Charges
Water sales
$
9,373,866
$ 10,108,045
$ 11,037,623
$ 12,146,416
Wastewater sales
8,534,228
8,940,200
9,439,597
10,437,091
Other
1,684,506
1,314,453
1,426,112
1,685,502
Total uniform charges
19,592,600
20,362,698
21,903,332
24,269,009
Septage/Sludge
381,741
348,320
278,897
269,575
Surcharges
247,137
243,342
234,746
242,451
Interest earnings
2,983,032
1,797,260
1,269,838
2,264,132
1989/1990 Special assessments
9,409
11,650
1,564
-
1996 Special assessments
2,619,805
2,752,661
1,539,600
722,922
Gross revenues
25,833,724
25,515,931
25,227,977
27,768,089
Less: Direct expenses
9,662,508
10,723,548
12,507,398
12,853,872
Net revenues available
for debt service
$
16,171,216
$ 14,792,383
$ 12,720,579
$ 14,914,217
Annual debt service
Principal
$
1,690,000
$ 1,765,000
$ 1,855,000
$ 2,020,000
Interest
4,102,839
4,021,989
3,936,019
3,525,573
Total debt service payment
$
5,792,839
$ 5,786,989
$ 5,791,019
$ 5,545,573
Debt service coverage
2.79x
2.56x
2.20x
2.69x
Note: In accordance with Water and Sewer Revenue Refunding Bonds, Series 2005 bond covenants, there are items included in the
debt service coverage calculation other than normal operating revenues. These items include surcharges and collections on
special assessments. Expenses specifically excluded: renewal and replacement, depreciation, amortization and interest expense,
and loss on disposal of equipment.
Note: Water and Sewer debt information can be found in Note 13.
182
Schedule 14
183
2006
2007
2008
2009
2010
2011
$
13,336,623
$ 13,529,341
$ 13,435,398
$ 13,001,743
$ 13,570,657
$ 13,565,766
11,634,181
12,003,677
12,128,706
11,954,333
12,375,346
12,203,750
1,744,486
1,386,198
1,460,143
1,285,605
1,430,966
1,639,985
26,715,290
26,919,216
27,024,247
26,241,681
27,376,969
27,409,501
332,329
290,955
256,785
294,459
302,187
314,969
244,166
243,919
245,343
244,619
245,011
245,245
4,554,419
6,576,873
3,650,480
2,110,031
686,776
491,260
60,229
21,138
112
413
438
8,718
350,712
268,883
220,754
184,272
151,316
93,513
32,257,145
34,320,984
31,397,721
29,075,475
28,762,697
28,563,206
14,270,414
16,226,651
17,147,444
17,057,273
16,007,055
15,404,503
$
17,986,731
$ 18,094,333
$ 14,250,277
$ 12,018,202
$ 12,755,642
$ 13,158,703
$
2,390,000
$ 2,505,000
$ 2,620,000
$ 2,745,000
$ 2,870,000
$ 2,990,000
3,157,260
3,041,150
2,922,950
2,047,513
2,510,910
2,324,525
$
5,547,260
$ 5,546,150
$ 5,542,950
$ 4,792,513
$ 5,380,910
$ 5,314,525
3.24x
3.26x
2.57x
2.51x
2.37x
2.48x
183
Indian River County, Florida
Pledged Revenue Coverage
Recreational Revenue Refunding Bonds, Series 2003
Last Ten Fiscal Years Schedule 15
184
Golf Course Operations
Less:
Net
Fiscal Revenues
Expenses
Available
Debt Service Requirements
Year Gross (A)
Operating (B)
Revenues Principal
Interest
Total
Coverage
2002 $ 2,928,157
$ 2,188,791 $
739,366 $ 360,000
$ 375,148 $
735,148
1.01
2003 3,135,478
2,326,179
809,299 375,000
357,103
732,103
1.11
2004 3,105,806
2,474,969
630,837 410,000
202,155
612,155
1.03
2005 35252,414
2,590,759
661,655 450,000
188,307
638,307
1.04
2006 35324,127
2,554,640
769,487 460,000
179,291
639,291
1.20
2007 35396,639
2,670,309
726,330 475,000
170,016
645,016
1.13
2008 35327,236
2,390,018
937,218 485,000
159,753
644,753
1.45
2009 35292,170
2,581,254
710,916 490,000
147,516
637,516
1.12
2010 3,157,520
2,393,964
763,556 510,000
133,889
643,889
1.19
2011 35163,062
2,246,881
916,181 520,000
126,302
646,302
1.42
(A) Gross revenues include charges for services of the golf course as well as interest income.
Insurance recoveries and gain on disposal of equipment are excluded.
(B) Operating expenses include all expenses except depreciation, amortization, interest expense,
and
loss on disposal of equipment.
Note: Details regarding the County's outstanding debt can be found in the Notes to the Financial
Statements.
184
Indian River County, Florida
Demographic and Economic Statistics
Sources:
(A) University of Florida, Bureau of Economic and Business Research
(B) US Department of Commerce, Bureau of Economic Analysis
(C) Florida Agency for Workforce Innovation
(D) Information not available
The population and personal income information is used in Schedule 10 for calculation of Debt
Per Capita and Percentage of Debt to Personal Income.
:I
Last Ten Years
Schedule 16
Total
Per Capita
Personal
Personal
Unemployment
Year
Population (A)
Income (B)
Income (B)
Rate (C)
2002
118,149 $
4,680,414,000 $
39,717
7.7%
2003
121,274
4,886,086,000
40,757
8.2
2004
126,829
5,870,597,000
47,286
6.9
2005
130,043
6,386,893,000
50,369
4.7
2006
135,262
7,002,160,000
54,045
4.7
2007
139,757
7,810,408,000
59,419
7.3
2008
141,667
7,669,062,000
57,107
10.1
2009
141,475
7,610,327,000
56,303
15.2
2010
138,028
(D)
(D)
15.2
2011
138,694
(D)
(D)
13.7
Sources:
(A) University of Florida, Bureau of Economic and Business Research
(B) US Department of Commerce, Bureau of Economic Analysis
(C) Florida Agency for Workforce Innovation
(D) Information not available
The population and personal income information is used in Schedule 10 for calculation of Debt
Per Capita and Percentage of Debt to Personal Income.
:I
Indian River County, Florida
Principal Employers
Year 2011 and Nine Years ARo
Number of
Employer Employees
School District of Indian River County
Indian River County *
Indian River Medical Center
Publix Supermarkets
Piper Aircraft Inc.
Sebastian River Medical Center
John's Island
City of Vero Beach
Visiting Nurse Association
Indian River Estates
Total
Total County Employees
2,013
1,354
1,608
1,006
700
569
550
492
399
350
9,041
52,318
Number of
Employer Employees
School District of Indian River County
Indian River Memorial Hospital
Indian River County*
The New Piper Aircraft
Publix Supermarkets
City of Vero Beach
Wal-Mart
Hale Groves
John's Island
Gracewood Fruit
Total
Total County Employees
1,940
1,451
1,372
1,000
715
681
672
500
475
465
9,271
46,154
2011
2002
Schedule 17
Percentage
of Total County
Employment
3.85
2.59
3.07
1.92
1.34
1.09
1.05
0.94
0.76
0.67
17.28%
Percentage
of Total County
Employment
4.20
3.14
2.97
2.17
1.55
1.48
1.46
1.08
1.03
1.01
20.09%
Source: Indian River County, Florida annual budgets for individual employers.
Florida Agency for Workforce Innovation - Labor Market Statistics, and Bureau of Economic and
Business Research at University of Florida for total County employment figures.
* This includes the Board of County Commissioners, Clerk of the Circuit Court, Supervisor of Elections,
Property Appraiser, Sheriff, and the Tax Collector.
186
R
187
E-3
Indian River County, Florida
Building Permits
Last Ten Fiscal Years
Indian River County Munici-
Fiscal # of New # of Additions & # of New
Year Permits Construction Permits Alterations Permits Construction
2002
1,658
$ 291,543,816
1,334 $
32,118,404
599 $
142,231,044
2003
2,084
386,495,461
1,382
28,817,520
770
128,376,076
2004
3,889
642,032,168
1,935
46,173,846
773
182,843,901
2005
4,770
703,972,409
4,409
57,549,895
1,147
262,135,977
2006
3,760
754,817,641
5,630
43,898,675
826
185,556,022
2007
1,404
280,056,839
3,899
38,290,132
269
107,099,115
2008
857
222,191,316
2,686
30,731,235
206
104,188,514
2009
442
97,694,608
1,725
17,102,312
122
41,039,432
2010
394
82,995,613
2,017
20,723,725
122
30,048,727
2011
416
96,301,948
2,288
26,368,020
112
27,812,429
Source:
Building Departments - Indian River County (including the City of Vero
Beach),
Town of Orchid, Town of Indian
River Shores, City of Sebastian, and City of Fellsmere.
ities
Schedule 18
# of Additions & # of New # of Additions &
Permits Alterations Permits Construction Permits Alterations
3,588 $
27,333,128
4,141
37,578,377
4,395
47,075,876
13,062
119,403,505
7,072
65,822,951
3,712
53,482,334
2,850
40,039,893
2,188
34,072,491
2,948
32,545,131
2,973
42,087,897
2,257
$ 433,774,860
2,854
514,871,537
4,662
824,876,069
5,917
966,108,386
4,586
940,373,663
1,673
387,155,954
1,063
326,379,830
564
138,734,040
516
113,044,340
528
124,114,377
4,922 $
59,451,532
5,523
66,395,897
6,330
93,249,722
17,471
176,953,400
12,702
109,721,626
7,611
91,772,466
5,536
70,771,128
3,913
51,174,803
4,965
53,268,856
5,261
68,455,917
Indian River County, Florida
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function/Program
General Government
Purchasing
Purchase orders issued
Probation
New cases received
Public Safety
Fire rescue
Vehicle rescue response
Fire code inspections
Advanced life support calls
Basic life support calls (transport only)
Sheriff
Arrests
Violent crimes
Non-violent crimes
Total calls for service
Building department
Construction permits issued
Estimated value of construction (millions)
Physical Environment
Solid waste
Waste stream tonnage received
Total recycled material (tons)
Utilities - water & sewer
Number of water customers
Number of wastewater customers
Water ERUs
Wastewater ERUs
Water consumption (Average Daily Demand)
2002 2003 2004 2005
2,742 2,563 2,800 2,554
1,156 731 N/A N/A
10,671
10,700
11,467
10,602
1,886
2,497
2,514
2,215
6,681
6,697
7,222
5,623
3,788
4,090
4,340
4,606
2,648
4,181
4,979
5,172
305
290
359
300
2,870
2,979
2,805
3,930
156,179
149,202
130,847
122,893
1,658
2,084
3,889
4,770
$ 291.5 $
386.5 $
642.0 $
704.0
274,604
277,622
349,538
529,238
79,362
81,006
72,568
129,869
27,632
27,849
33,793
34,867
16,737
17,293
19,786
20,237
41,242
44,420
46,254
53,032
30,297
32,432
33,250
38,387
6,897,000
7,586,000
7,660,000
7,780,000
(A) Effective September 18, 2006, fire and advanced life support combined into fire rescue.
Source: Internal reports prepared by the various departments of Indian River County.
190
Schedule 19
2006 2007 2008 2009 2010 2011
2,734 2,753 2,520 2,463 1,970 1,805
N/A N/A N/A N/A N/A N/A
6,880
32,488 (A)
33,845
34,480
34,529
37,550
2,420
2,593
3,527
5,917
2,358
2,239
10,728
7,537
5,862
9,085
9,751
10,935
11,105
3,643
5,759
3,486
3,269
3,077
5,211
5,012
5,620
4,331
5,065
4,464
652
338
353
340
310
394
3,462
6,192
6,383
6,099
5,719
6,058
131,489
126,490
129,389
138,998
154,480
162,944
3,760
1,404
857
442
394
416
$ 754.8 $
280.1 $
222.2 $
97.7 $
83.0 $
96.3
380,109
295,977
239,296
207,344
201,561
180,434
70,919
57,247
42,088
40,931
45,298
30,424
43,477
41,101
42,000
42,972
43,723
44,094
25,943
24,666
25,000
25,192
25,205
25,465
54,070
61,494
61,558
63,147
64,146
64,391
41,351
45,396
45,785
45,319
45,427
45,863
8,370,000
8,790,000
8,603,000
8,700,000
8,225,000
8,198,000
Continued
191
Indian River County, Florida
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function/Program
2002
2003
2004
2005
Transportation
Public works
Projects under design
8
8
3
4
Projects awarded for construction
5
2
3
0
Construction projects completed
3
3
5
0
County engineering
Roads designed
11
12
12
6
Miles of roads designed
4.00
6.40
6.50
1.71
Traffic engineering
Site plans reviewed
916
1,053
1,103
1,274
Culture/Recreation
Library
Circulation (County -wide)
862,783
1,012,852
1,012,241
1,079,206
Recreation department
Total beach park attendance
N/A
N/A
N/A
N/A
Athletic and event attedance
N/A
N/A
N/A
N/A
Aquatic centers attendance
21,369
101,182
95,711
89,000
Shooting range
Safety/Registration cards issued
5,961
4,929
4,616
3,718
Golf course
Rounds played
110,514
108,684
106,871
97,465
Court Related
Law library
Circulation
21,529
21,172
25,627
26,481
192
Schedule 19
2006 2007 2008 2009 2010 2011
5
5
6
29
13
26
4
5
5
5
7
7
4
5
5
12
6
8
11
7
8
5
6
4
6.50
3.50
6.00
5.00
6.00
1.00
1,135
520
332
423
271
218
1,140,904
1,188,366
1,250,075
1,314,372
1,403,367
1,362,857
N/A
N/A
415,051
437,302
467,434
449,213
N/A
N/A
8,673
14,730
23,750
24,112
93,088
90,503
90,475
89,787
87,107
98,515
6,036
6,784
6,784
9,050
6,471
8,176
107,048
100,539
104,716
101,810
96,593
95,601
26,255 24,759 21,107 18,512 13,079 9,168
193
Indian River County, Florida
Full -Time Equivalent County Government Employees by Function/Program
Last Ten Fiscal Years
Source: Indian River County, Florida annual budgets
Method: Using 1.0 for each full-time employee, and 0.50 for each part-time/seasonal employee.
(A) The fire department and advanced life support unions were consolidated on September 18, 2006.
194
2002
2003
2004
2005
General Government
Board of County Commissioners
10
10
10
10
County Attorney
6
6
6
6
Administration
3
3
3
3
Financial/Administrative Service
22.5
23.5
23.5
23.5
Comprehensive Planning
19
19
20
23
Other
51
50
46
42
Clerk of Circuit Court
99.5
104.5
106
108
Property Appraiser
47
47
47
47
Supervisor of Elections
10
10
11.5
11.5
Tax Collector
35
35
40
40
Public Safety
Fire Department
141.5
142.5
142.5
144.5
Advanced Life Support
82
82
82
82
Sheriff- Corrections
128
121
128
130
Sheriff - Court Service
26.5
37.5
25.5
25.5
Sheriff - Law Enforcement
265
261
273
276
Building Department
21.5
23
29
45
Other
22
22
19.5
17.5
Physical Environment
Solid Waste
53
54
54
53
Utilities - water and sewer
120
122
125
126
Other
8
8
8
11
Transportation
Road and Bridges
98
98
99
100
County Engineering
27
28
29
33
Traffic Engineering
19
20
20
22
Real Estate Acquisition
0
0
0
0
Economic Environment
6
6
6
6
Human Services
14
14
15
15
Culture/Recreation
Libraries
50.5
51
51
51
Parks
35
37
37
39
Recreation Department
28.5
54
55
56.5
Coastal Engineering
0
0
0
3
Shooting Range
6
6
6
6
Golf Course
26.5
26.5
22.5
22
Court Related
Law Library
1
I
1
1
Total
1,482
1,522.5
1,541
1,579
Source: Indian River County, Florida annual budgets
Method: Using 1.0 for each full-time employee, and 0.50 for each part-time/seasonal employee.
(A) The fire department and advanced life support unions were consolidated on September 18, 2006.
194
Schedule 20
2006 2007 2008 2009 2010 2011
10
10
11
10
10
10
6
7
7
7
6
6
3
3
3
3
2.72
2.35
24.5
25.5
26.5
22.5
21.5
19.85
23
23
23
19
16
14.32
50
62
49
44.5
36.5
34
113
118
116
99.5
98.5
98
49
50
45
40
40
36
11.5
12
12
9.5
9.5
8
40
40
38
38
38
38
233
232
241
240
246
244
- (A)
200
197
197
195
198
207
26
29.5
29.5
29.5
29.5
29.5
276
301
301
301
301
301
49
50
33
18
17
15
11
12
12
10
9
6.68
53
53
51
49
49
10
131
139
130
128
118
112.5
13
14
15
9
9
8
103
106
100
86.5
80
77
39
42
42
33
28
27
24
26
24
21
21
20
0
0
3
2
2.28
1
6
6
4.5
3.5
3.5
2.5
17
15
15
14.5
13
13
51
52.5
50
45.5
47.5
46.5
43
42
41
39
37
34
56
58.5
57.5
46
37.5
33.3
3
3
3
3
2
2
6
6
5.5
5.5
5.5
5
21.5
21.5
18
16.5
15.5
15.5
1
1
1
1
1
1
1,692.5
1,757.5
1,704.5
1,589.5
1,549
1,478
195
Indian River County, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Function/Program
2002
2003
2004
2005
General Government
Buildings and grounds
Total square footage maintained
483,470
493,270
493,270
493,270
Number of facilities and sites maintained
42
42
43
43
Vehicles
12
13
17
18
General government
Vehicles
21
23
27
32
Planning
Vehicles
3
3
3
6
GIS
Vehicles
Public Safety
Fire department
Vehicles
30
35
41
43
Fire stations
I 1
I 1
11
11
Advanced life support
Vehicles
16
19
21
25
E911 Center
Vehicles
Sheriff
Vehicles
214
227
241
252
Building department
Vehicles
8
13
16
27
Physical Environment
Solid waste
Vehicles
26
28
32
32
Telecommunications
Vehicles
Ag Extension
Vehicles
1
1
2
2
Utilities - water and sewer
Vehicles
54
62
74
84
Water treatment plants
2
2
2
2
Wastewater treatment facilities
7
7
7
7
Water main - miles
N/A
N/A
N/A
N/A
Force main - miles
N/A
N/A
N/A
N/A
Gravity sewer lines - miles
N/A
N/A
N/A
N/A
Transportation
Road and bridge
Miles maintained (paved & unpaved)
658
601
609
614
Bridges maintained
78
78
78
78
Vehicles
48
51
59
61
Source: Internal reports prepared by the various departments of Indian River County.
196
Schedule 21
2006
2007
2008
2009
2010
2011
493,270
715,215
715,215
715,215
715,215
715,215
43
47
47
47
47
47
18
17
17
15
15
15
36
37
28
27
26
31
6
7
7
7
7
7
1
1
1
1
49
54
53
54
51
51
11
11
11
11
12
12
24
21
20
20
17
18
1
1
1
1
274
276
295
291
288
298
29
22
13
9
9
9
33
34
32
30
30
1
1
1
1
1
2
2
2
2
1
1
90
86
82
82
81
81
2
2
2
2
2
2
7
6
6
6
6
6
737
769
780
819
845
839
188
217
240
230
226
229
250
259
261
262
269
271
614
617
625
628
636
636
78
78
78
78
78
78
66
68
65
65
64
67
Continued
197
Indian River County, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Function/Program
2002
Transportation - continued:
8
Senior Resource Association
9
Vehicles
7
Engineering
41
Vehicles
6
Traffic engineering
6
Traffic signals operated
110
Beacons operated
36
Vehicles
5
Traffic operations
2
Vehicles
9
Human Services
2
Health department
2
Vehicles
13
Animal Control
12
Vehicles
1
Rental Assistance
47
Vehicles
2
Culture/Recreation
62
Libraries
64
Locations
2
Parks
16
Number of neighborhood parks
12
Number of County parks
35
Acreage
3,85-)
Picnic shelters maintained
59
Boat ramps maintained
8
Vehicles
15
Recreation
35
Vehicles
2
Shooting range
1
Vehicles
1
Rifle range stations
29
Pistol range stations
35
Golf Course
Holes maintained
36
Vehicles
1
198
2003 2004 2005
9
10
20
8
9
9
114
119
122
41
42
37
5
6
6
10
10
10
14
14
17
2
5
5
2
2
3
2
2
2
12
12
12
37
35
47
3,869
3,857
3,994
62
59
64
8
8
8
16
20
22
4
4
4
1
1
1
29
29
29
35
35
35
36
36
36
1
2
2
Schedule 21
2006 2007 2008 2009 2010 2011
22
25
23
25
32
34
11
12
17
16
16
16
125
132
133
133
137
137
42
42
41
48
48
53
6
3
5
3
1
1
10
16
16
15
16
18
16
16
16
16
15
15
6
7
7
7
7
7
3
2
2
2
2
2
2
2
2
2
3
3
12
12
12
12
12
12
47
47
47
47
47
47
4,004
4,014
4,014
4,014
4,014
4,014
66
69
69
69
69
69
8
8
8
8
8
8
23
25
24
25
24
25
5
5
5
5
5
5
0
1
1
1
1
1
29
29
29
29
29
29
35
35
35
35
35
35
36
36
36
36
36
36
2
2
2
2
2
2
199
Indian River County, Florida
Department of Utility Services
Historical Rate Structure
Last Ten Fiscal Years Schedule 22
Fiscal Years
2002-2011 *
WATER RATES
Billing charges
Base facilities charges (per ERU)
$ 1.29
Single-family or commercial
7.76
Multi -family or manufactured home
6.60
Volume charge - per 1,000 gallons (per ERU)
14.58
0-3,000 gallons
2.20
3,000-7,000 gallons
2.42
7,001 gallons and over
3.85
Excess volume surcharge - greater than
2.86
13,000 gallons per month (per ERU)
7.70
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial
3.88
Multi -family or manufactured home
3.30
SEWER RATES
Billing charges
1.29
Base facility charge (per ERU)
Single-family or commercial
14.58
Multi -family or manufactured home
12.40
Volume charge - per 1,000 gallons
Single-family & manufactured home (1,000-12,000)
2.86
Multi -family & commercial (0-13,000)
2.86
Multi -family & commercial (>13,000)
4.29
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial
7.29
Multi -family or manufactured home
6.20
*The last change to the County's water and sewer rates occurred on October 1, 1999.
Source: Indian River County Utilities Department
In addition to the charges shown above, users of the North Beach Water System are subject to
a $13 per ERU per month surcharge.
200
Indian River County, Florida
Water and Wastewater Customers
Last Ten Fiscal Years Schedule 23
The number of County water and wastewater customers, expressed as the number of equivalent residential
units (ERUs), for the years 2002 through 2011 as set forth below:
Fiscal Year
Water ERUs
Wastewater ERUs
2002
41,242
30,297
2003
44,420
32,432
2004
46,254
33,250
2005
53,032
38,387
2006
54,070
41,351
2007
61,494
45,396
2008
61,558
45,785
2009
63,147
45,319
2010
64,146
45,427
2011
64,391
45,863
Source: Indian River County Utilities Department
201
Indian River County, Florida
Top 10 High Volume Customers of Utility Services
Fiscal Year 2011
Schedule 24
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2011:
Customer
1. Vista Royale
2. ACTS Inc
3. City of Fellsmere (Wastewater Only)
4. IRC School Board
5. Village Green
6. Disney's Vero Beach Resort
7. IRC Facilities Management / Jail
8. Encore RV Park
9. Vista Gardens
10. Sebastian River Medical Center
Source: Indian River County Utilities Department
Annual Water
Annual Wastewater
Volume
Volume
(x 1,000 gals.)
(x 1,000 gals.)
24,907
24,907
24,549
24,549
202
23,813
23,350
20,310
20,750
20,750
19,747
19,747
16,030
16,030
13,758
13,758
12,028 12,028
11,912 11,912
Indian River County, Florida
Capacity Charges - Utilities Department
Last Ten Fiscal Years Schedule 25
The County also receives capacity charges in connection with the system. Capacity charges are not
pledged as a security for the bonds. While the County may pledge the capacity charges in the future,
the County presently has no intention to pledge capacity charges as security for the bonds. Capacity
charges for the last ten fiscal years ended September 30 are as follows:
(A) Large increase in capacity charges due to construction boom.
203
Wastewater
Water Capacity
Capacity
Total
Fiscal Year
Charges
Charges
Charges
2002
$ 2,687,997
$ 2,423,583
$ 5,111,580
2003
4,182,272
5,448,827
9,631,099
2004
5,464,809
7,559,916
13,024,725
2005
11,036,369
19,109,246
30,145,615 (A)
2006
4,758,320
8,287,244
13,045,564
2007
1,159,803
620,915
1,780,718
2008
699,054
1,088,279
1,787,333
2009
504,658
367,940
872,598
2010
1,025,700
276,551
1,302,251
2011
485,225
462,114
947,339
(A) Large increase in capacity charges due to construction boom.
203
Indian River County, Florida
Pledged Revenues for Recreational Revenue Refunding Bonds, Series 2003
Last Ten Fiscal Years Schedule 26
Racetrack 7% of
Fiscal and Jai Alai Half -Cent
Year Fronton Funds Sales Tax
2002 $ 446,500 $ 483,509
2003 446,500 490,138
2004 446,500 529,488
2005 446,500 612,279
2006 446,500 614,368
2007 446,500 568,608
2008 446,500 531,138
2009 446,500 490,033
2010 446,500 485,062
2011 446,500 495,257
Racetrack and Jai Alai fronton funds and 7% of the Half -Cent Sales Tax are pledged as security for
payment on these bonds. This is in addition to the net revenues of the golf course. Refer to pledged
revenue coverage ratio on Schedule 15 and County Note 13 for more information.
204
Indian River County, Florida
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001
Last Ten Fiscal Years Schedule 27
Year
Professional
Total
Ended
Sports State
Tourist
One Cent
Half Cent
September 30
Subsidy
Tax Collected
Tourist Tax (A)
Sales Tax (B)
2002 $
500,004
$ 1,410,409 $
347,710 $
6,917,278
2003
500,004
1,286,885
321,721
7,001,976
2004
500,004
1,443,272
360,818
7,564,109
2005
500,004
1,675,781
418,945
8,746,849
2006
500,004
1,517,360
379,340
8,776,684
2007
500,004
1,449,083
362,271
8,122,976
2008
500,004
1,584,512
396,128
7,587,682
2009
500,004
1,294,163
323,541
7,000,465
2010
500,004
1,324,953
331,238
6,929,458
2011
500,004
1,487,061
363,233
7,075,101
(A) A 4th cent was imposed effective February 1, 2001.
(B) This amount represents 100% of the half -cent sales tax received. Eighty-six percent of this amount is
pledged to the payment of debt service on the Series 2001 bonds.
Refer to pledged revenue coverage on County Note 13A.
ill
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206
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Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida (the "County") as of
and for the year ended September 30, 2011, and have issued our report thereon dated March 9,
2012. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the County's internal control over financial reporting.
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 County's financial statements will not be
prevented or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
"Providing Vision and Direction to our Clients"
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Private Companies Practice Section
207
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information of the Board of County Commissioners,
management, the Auditor General of the State of Florida, and federal and state awarding
agencies and is not intended to be and should not be used by anyone other than these specified
parties.
HWVW), 1�6
&Itt�
Vero Beach, Florida
March 9, 2012
208
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772-234.8484
Fax 772.234.8488
Management Letter
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida as of and for the year ended
September 30, 2011 and have issued our report thereon dated March 9, 2012.
We conducted our audit in accordance with United States generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, and OMB Circular A-133, Audits of States, Local
Governments, and Non -Profit Organizations. We have issued our Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters, Report on Compliance with Requirements
that Could Have a Direct and Material Effect on Each Major Federal Program and Major State Project
and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550,
Rules of the Auditor General, and Schedule of Findings and Questioned Costs. Disclosures in those
reports and schedule, which are dated March 9, 2012, should be considered in conjunction with this
management letter.
We have also issued separate management letters dated March 9, 2012 for each County agency not
included in this letter, which should also be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local government entity audits performed in the state of Florida. This letter
includes the following information, which is not included in the aforementioned auditors' reports or
schedules.
In accordance with the Rules of the Auditor General (Section 10.554(1)(i)1.), it is noted that there were no
recommendations made in the preceding audit report.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2.), the scope of our audit included a
review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds.
In connection with our audit, we determined that the Board of County Commissioners complied with
Section 218.415, Florida Statutes.
The Rules of the Auditor General (Section 10.554(1)(i)3.) require that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we did not
have any such recommendations.
The Rules of the Auditor General (Section 10.554(1)(i)4.) require that we address violations of provisions
of contracts and grant agreements or abuse that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material but more than inconsequential. In connection
with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
so
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
The Rules of the Auditor General (Section 10.554(1)(i)5.) provide that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on financial
statement amounts, considering both quantitative and qualitative factors: (1) violations of provisions of
contracts or grant agreements, fraud, illegal acts or abuse and (2) deficiencies in internal control that are
not significant deficiencies. In connection with our audit, we did not have any such findings.
The Rules of the Auditor General (Section 10.554(1)(i)6.) require that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This disclosure has been
included in the notes to the financial statements.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.a.), none of the conditions
described in Section 218.503(1), Florida Statutes, were met during the fiscal year ended September 30,
2011.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.b.), the annual financial report
required to be filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a) of
the Florida Statutes has been completed and is in agreement with the annual financial audit report.
As required by the Rules of the Auditor General (Sections 10.554(l)(i)7.c. and 10.556(7)), we applied
financial condition assessment procedures relating to Indian River County. It is management's
responsibility to monitor the County's financial condition, and our financial condition assessment was
based in part on representations made by management and the review of financial information provided
by same.
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 management and others within the entity,
the Board of County Commissioners, the Auditor General of the State of Florida, and applicable federal
and state agencies, and is not intended to be and should not be used by anyone other than these specified
parties.
Vero Beach, Florida
March 9, 2012
210
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772-234.8488
Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major
Federal Program and Major State Project and on
Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550,
Rules of lite Auditor General
The Honorable Board of County Commissioners
Indian River County, Florida
Compliance
We have audited the compliance of Indian River County, Florida (the "County") with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement and the requirements described in the Department of Financial Services' State Projects Compliance
Supplement that have a direct and material effect on each of its major federal programs and state projects for the
year ended September 30, 2011. Indian River County, Florida's major federal programs and state projects are
identified in the summary of auditors' results section of the accompanying schedule of findings and questioned
costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major
federal programs and state projects is the responsibility of the County's management. Our responsibility is to
express an opinion on Indian River County, Florida's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non -
Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133,
and Chapter 10.550 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence
about the County's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit
does not provide a legal determination on the County's compliance with those requirements.
In our opinion, Indian River County, Florida complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its federal programs and major state projects
for the year ended September 30, 2011.
Internal Control over Compliance
Management of Indian River County, Florida is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs
and state projects. In planning and performing our audit, we considered the County's internal control over
compliance with requirements that could have a direct and material effect on a major federal program or state
project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and
to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550
Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal
control over compliance.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
211
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct noncompliance with a type of compliance requirement of a federal program or state project on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program or state project will not be prevented or
detected and corrected on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be
deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of FederalAwards and State Projects
We have audited the financial statements of governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of Indian River County, Florida as of and for the year ended
September 30, 2011, and have issued our report thereon dated March 9, 2012, which contained unqualified opinions
on those financial statements. Our audit was performed for the purpose of forming opinions on the financial
statements as a whole. The accompanying schedule of expenditures of federal awards and state projects is presented
for purposes of additional analysis as required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor
General, and is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records used to
prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole.
This report is intended solely for the information and use of the Board of County Commissioners, management, the
Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
�<,Uvlt.AJ � (_:0��t1lXiY►'IBiNJ � � �/�� °`
G�,rua�
�u QeGx �n -L-4ia�t ve¢cv
Vero Be ch Florida
March 9, 2012
212
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213
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Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2011
Federal/State Agency
CFDA
Contract/
Pass-through Entity
CSFA
Grant
Federal Program/State Project
No.
No.
Department of Housing and Urban Development:
FL0I 15BH091003
23,354
Direct Programs:
14.235
FL0116BH090802
Section 8 Housing Choice Vouchers
14.871
FL -132 -VO -014 to 017 $
Shelter Plus Care
14.238
FL29C509001
Shelter Plus Care
14.238
FL29C709001
Shelter Plus Care
14.238
FL0360C4H091001
Shelter Plus Care
14.238
FL0380C4H091000
Shelter Plus Care
14.238
FL0338C4H090900
Shelter Plus Care
14.238
FL0113CH090800
Shelter Plus Care
14.238
FL0114CH090802
Shelter Plus Care
14.238
FL0114CH091003
Shelter Plus Care
14.238
FL0119CH090802
Shelter Plus Care
14.238
FL0119CH091003
Shelter Plus Care
14.238
FL0120CH090802
Shelter Plus Care
14.238
FL0120CH091003
Subtotal CFDA - 14.238
Direct Programs:
Supportive Housing Program
Transfers to
Expenditures Subrecipients
2,108,492
71,406
64,491
23,138
950
49,220
59,932
38,111
34,703
100,522
18,740
137,324
36,890
635,427
Homeless Management Information Systems
14.235
FL308B4H090901
25,856
Homeless Management Information Systems
14.235
FL0115BH090802
50,332
Homeless Management Information Systems
14.235
FL0I 15BH091003
23,354
Homeless Management Information Systems
14.235
FL0116BH090802
36,177
Homeless Management Information Systems
14.235
FL0I 16BH091003
915
Subtotal CFDA - 14.235
136,634
Comm. Dev. Block Grant - Neighborhood Stabilization Pgm #3
14.228
B -11 -UN -12-0022
11,108
Indirect Programs:
Passed through Florida Dept. of Economic Opportunity:
Comm. Dev. Block Grant - Neighborhood Stabilization Program
14.228
IODB-4X-10-40-01-F13
650,037
CDBG NSP Program Income Expenditures
14.228
Program Income
424,682
Subtotal CFDA - 14.228
1,085,827
Total Department of Housing and Urban Development
3,966,380
Federal Transit Administration:
Direct Programs:
ARRA - Federal Transit Formula Section 5307 Grant
20.507
FL-96-XO18-00
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X756
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X739
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X717
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X702
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X611
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X500
Total Federal Transit Administration
Department of Transportation:
Indirect Programs:
Passed through Florida Department of Transportation:
8th Street Sidewalk From 18th Ct/Old Dixie (prior year costs)
20.205
AP106
15,503
8th Street Sidewalk From US 1 to 6 Ave
20.205
APY52
35,229
FDOT IR Boulevard Sidewalk
20.205
APK04
283,746
Metropolitan Planning Organization
20.205
AA080
392,638
Subtotal CFDA - 20.205
727,116
Federal Transit Metropolitan Planning Grant
20.505
AQ212
53,469
Section 5311 Non -Urbanized Public Transit
20.509
APT03
52,536
Passed through Florida Department of Environmental Protection:
Trans -Florida Rail -Trail Greenway
20.219
T2925
7,977
Total Department of Transportation
841,098
214
$ 364,598
956,035
337,703
360,334
24,411
12,847
69,776
2,125,704
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2011
Federal/State Agency
Pass-through Entity
Federal Program/State Project
Department of Justice:
Direct Programs:
State Criminal Alien Assistance Program
ARRA - 2009 COPS Hiring
2009 Local Solicitation Justice Assistance Grant
2009 Local Solicitation Justice Assistance Grant
Indirect Programs:
Passed through Florida Department of Law Enforcement:
Bryne Formula Grant Program
Multi -Agency Drug Enforcement Unit
Drug Testing Program Grant
Subtotal CFDA - 16.738
Passed through Office of the Attorney General:
Crime Victim Assistance Program
Total Department of Justice
Elections Assistance Commission:
Indirect Programs:
Passed through Florida Dept of State:
Division of Elections:
Federal Elections Activities 2008/2009
Total Elections Assistance Commission
Department of Health and Human Services,
Agency for Children and Families,
Office of Child Support Enforcement:
Indirect Programs:
Passed through Florida Department of Revenue:
Sheriff Service of Notices
Child Support Enforcement -Title IV D
Total Office of Child Support Enforcement
Department of Homeland Security:
Indirect Programs:
Passed through Division of Emergency Management:
Emergency Management Homeland Security
Emergency Management Performance Grant
Total Department of Homeland Security
TOTAL EXPENDITURES OF FEDERAL AWARDS:
CFDA
Contract/
CSFA
Grant
Transfers to
No.
No.
Expenditures Subrecipients
16.606
2009 -F8319 -FL -AP
$ 144,874
16.710
2009RKWX0223
314,918
16.738
2009 -DJ -BX -0913
1,500
16.738
2010 DJ -BX -1593
31,145
16.738 2011-JAGC-INRI-2-B2-115 59,006
16.738 2011-JAGC-INRI-I-B2-231 27,686
119,337
16.575 V10050 40,353
619,482
90.401 N/A 4,522
4,522
93.563 00331 9,200
93.563 CD331 409,456
418,656
97.067 09 -DS -51-10-40-01-421 30,500
97.042 11 -FG -7W-10-40-01-050 63.237
215
93, /S /
$ 5,943,875 $ 2,125,704
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2011
Federat/State Agency
Pass-through Entity
Federal Program/State Project
STATE OF FLORIDA
Division of Emergency Management:
Direct Projects:
Hazardous Materials Analysis Grant
Emergency Management Programs
Emergency Management Preparedness and Assistance
Emergency Management Preparedness and Assistance
Subtotal CSFA - 52.008
Total Division of Emergency Management
Florida Housing Finance Corporation:
Direct Projects:
State Housing Initiatives Partnership
Total Florida Housing Finance Corporation
Department of State:
Division of Library Services:
Direct Project:
State Aid to Libraries
Total Department of State
Department of Transportation:
Direct Projects:
Transportation Disadvantaged Planning Grant
Transportation Disadvantaged Planning Grant
Subtotal CSFA - 55.002
Small County Outreach Program (SCOP) - Old Dixie Hwy
Fl Public Transit Block Grant
FDOT Service Development Grant
Transit Corridor Grant
Transit Corridor Grant
Subtotal CSFA - 55.013
Access Improvements to Aviation Boulevard
Enhancement & Operation Computerized Traffic Control
Intersection Improvements (TRIP)
Total Department of Transportation
Department of Environmental Protection:
Direct Projects:
Wabasso Beach Restoration
Ambersand Beach Renourishment
Subtotal CSFA - 37.003
Pollution Control South
Total Department of Environmental Protection
CFDA Contract/
CSFA Grant
No. No.
Transfers to
Expenditures Subrecipients
52.023 11 -CP -03-10-40-01-216 $ 1,483
52.008 11 -BG -05-10-40-01-150 74,290
52.008 12 -BG -05-10-40-01-031 21,031
95,321
96,804
52.901 N/A 1,310,400
1,310,400
45.030 11 -ST -22 118,924
118,924
55.002
AQB41
2,981
55.002
AQ040
14,904
17,885
55.009
APS88
227,337
55.010
APT70
342,368
55.012
A0185
22,519
55.013
AOX67
196,500
55.013
AP049/AP050
77,400
273,900
55.014
ANP77
20,898
55.023
APG29
100,374
55.026
AP105
77,126
37.003 07IR2 19,313
37.003 07IR3 120,518
139,831
37.039 LP31010 86,765
216
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2011
Federal/State Agency
CFDA
Contract/
Pass-through Entity
CSFA
Grant
Transfers to
Federal Program/State Project
No.
No.
Expenditures Subrecipients
STATE OF FLORIDA - Continued
Department of Health:
Direct Project:
County Awards Grant -Emergency Medical Svc
64.005
C9031
$ 40,205
Total Department of Health
40,205
Department of Management Services:
Direct Project:
E911 State Grant Program
72.002
53-10-11-01
79,142
Total Department of Management Services
79,142
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise
73.016
N/A
500,004
Total Department of Revenue
500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
$ 3,454,482 $
217
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Projects
For the Fiscal Year Ended September 30, 2011
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and presentation of the Single Audit Report of Indian River County, Florida,
(the "County") have been designed to conform to generally accepted accounting principles as applicable
to governmental units, including the reporting and compliance requirements of the Audits of States,
Local Governments, and Non -Profit Organizations and Office of Management and Budget Circular A-
133.
A. Reporting Entity
The reporting entity consists of Indian River County, the primary government, and each of its
component units. The County includes a Schedule of Expenditures of Federal Awards and State
Projects in the Compliance Section.
B. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made, regardless of the measurement focus. The Schedule of Expenditures of Federal
Awards and State Projects is maintained on a modified accrual basis of accounting for governmental
funds and a full accrual basis for proprietary funds, which is explained further in the notes to the
financial statements.
C. Program Clusters
OMB Circular A-133 defines a cluster of programs as a grouping of closely related programs that share
common compliance requirements. According to this definition, similar programs deemed to be a cluster
of programs are tested accordingly.
D. Contingencies
Grant revenue amounts received by the County are subject to audit and adjustment by the grantor
agencies. Such audits may result in requests for reimbursement by the grantor agency. Any adjustments
to grant funding are recorded in the year the adjustment occurs.
218
Indian River County, Florida
Schedule of Findings and Questioned Costs
Year Ended September 30, 2011
Section I — Summary of Auditors' Results
Financial Statements
Type of auditors' report issued
Unqualified
Internal control over financial reporting:
Material weakness(es) identified?
Yes
X
No
Significant deficiency(ies) identified not
considered to be material weaknesses?
Yes
X
None reported
Noncompliance material to financial statements
noted?
Yes
X
No
Federal Awards and State Projects
Internal control over major programs and projects:
Material weakness(es) identified?
Yes
X
No
Significant deficiency(ies) identified not
considered to be material weaknesses?
Yes
X
None reported
Type of auditors' report issued on compliance for
major federal programs and state projects
Unqualified
Any audit findings disclosed that are required to
be reported in accordance with Section 510(a)
of Circular A-133?
Yes
X
No
Identification of major federal programs and state projects:
CFDA Number Name of Federal Program or Cluster
14.238 HUD - Shelter Plus Care
14.871 HUD Section 8
16.606 DOJ - Criminal Alien Assistance
16.710 ARRA DOJ COPS
20.507 ARRA DOT FTA Section 5307
CSFA Number
52.901
55.013
73.016
Name of State Project
FHFA SHIP
FDOT Transit Corridor
FDOR - Spring Training Facility
219
Indian River County, Florida
Schedule of Findings and Questioned Costs
Page two
Dollar threshold used to distinguish between
Type A and Type B programs $300,000 (Federal)
$300,000 (State)
Auditee qualified as low-risk auditee? X Yes No
Section II — Financial Statement Findings
There were no financial statement findings.
Section III — Federal or State Award Findings and Questioned Costs
There were no federal or state award findings or questioned costs.
Section IV — Prior Year Findings and Questioned Costs
There were no prior year findings or questioned costs.
220
JEFFREY K. BARTON
Clerk of Circuit Court and Comptroller
Finance Department ID's•
1801 27th Street, Building A
Vero Beach, Florida 32960
Telephone (772) 225-1945
AFFIDAVIT
BEFORE ME, the undersigned authority, personally appeared Jeffrey K. Barton, who being
duly sworn, deposes and says on oath that:
1. I am the Chief Financial Officer of Indian River County which is a local governmental
entity of the State of Florida;
2. Indian. River County adopted Ordinance No. 2005-41.5 on May 17, 2005 implementing an
impact fee. The impact fee was subsequently amended as follows: on March 24, 2009 in
Ordinance No. 2009-003, on September 22, 2009 in Ordinance No. 2009-015, and on March 16,
2010 in Ordinance No. 2010-002. The result of these amendments was suspension of five of the
eight original impact fees from April 1, 2009 through March 31, 2011. On March 15, 2011 in
Ordinance 2011-002, the impact fee was amended to suspend three of the eight original impact
fees from April 1, 2011 through March 31, 2012.
3. Indian River County has complied and, as of the date of this Affidavit, remains in
compliance with Section 163.31$41, Florida Statutes.
FURTHER AFFIANT SAYETH NAUGHT.
(Chie ia1 Officer of the Entity)
STATE OF FLORIDA
COUNTY OF INDIAN RIVER
SWORN TO AND SUBSCRIBED before me this day of A 2012.
NOTA Y PUBtk)l
�
Print Name 4PJ E. Akkl
Personally known /'Or produced identification
Type of identification produced: 41-4 N0rAR7.PMm��ATE OF FWRMA
,rwrrgr 1)emko
Aiii E.
i =CuMm fssiorl #DD908571
�1; �?s' Expires: AUG. 05 2413
My Commission Expires: 30NDi THRUA,L,.ti-ncs❑,,1Mm.co.,uzc.
Au6. �z-2oo
221
R
222
E-3
BOARD OF COUNTY COMMISSIONERS
223
R
224
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772.234.8488
Independent Auditors' Report on Special Purpose Financial Statements Prepared in Compliance
with a Regulatory Provision That Results in an Incomplete Presentation But One That Is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the accompanying special purpose financial statements of Indian River County, Florida
Board of County Commissioners as of and for the fiscal year ended September 30, 2011, as listed in the
table of contents. These financial statements are the responsibility of the Board of County
Commissioners' management. Our responsibility is to express an opinion on the financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the fund financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the, amounts and
disclosures in the presentation of the fund financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
As described in Note 1, the accompanying fund financial statements present the financial position of only
the Board of County Commissioners at September 30, 2011 and the results of operations for the year then
ended. These financial statements are not intended to be a complete presentation of the financial position
of Indian River County.
In our opinion, the accompanying special purpose financial statements present fairly, in all material
respects, the financial position of the Board of County Commissioners as of September 30, 2011 and the
results of operations for the year then ended in conformity with U. S. generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued reports dated March 9, 2012 on
our consideration of the Board of County Commissioners' internal control over financial reporting and on
our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Board of County
Commissioners, the Auditor General of the State of Florida, and applicable federal and state agencies, and
is(jn�oot intended to be and should not be used by anyone other than these specified parties.
I ak.1taZ4-'
q��
Vero Be ch, Florida
March 9, 2012
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
225
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Special assessments receivable
Due from other funds
Due from other governments
Inventories
Prepaid expenses
Other assets held for resale
Advances to other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Other deposits
Total liabilities
Fund Balances:
Nonspendable:
Inventories
Prepaid items
Advances to other funds
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Fire/emergency services
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Debt service
Capital projects
Environmental conservation/preservation
Sports Village repairs/improvements
Solid waste projects
Parks/recreational projects
Other purposes
Committed to:
Economic incentives
Emergency/disaster relief
Budget stabilization
Other purposes
Assigned to:
FY 2012 budget appropriation
Transportation/road improvements
Unassigned
Total fund balances
Total liabilities and fund balances
42,883
40,224 -
242,751 510,000
20,758,946 12,682,689
1,499,416
1,787,799
221,127
25,781
6,465,939
1,739,524
9,762,653
5,600,000
5,600,000
78,392
1,660,000
33,700,242 - -
$ 56,727,145 $ 32,498,532 $ 13,192,689
$ 57,969,831 $ 33,626,417 $ 13,924,993
The accompanying notes are an integral part of the financial statements.
226
Secondary
Impact
Roads
General
Fees
Construction
$ 51,964,170 $
33,565,477 $
13,143,118
496,315
-
-
514,604
-
-
4,668,884
60,940
271,875
42,883
-
-
40,224
242,751
-
510,000
$ 57,969,831 $
33,626,417 $
13,924,993
$ 977,522 $
765,327 $
689,553
-
362,558
42,751
10,347
94,759
160,058
-
-
1,242,686
1,127,885
732,304
42,883
40,224 -
242,751 510,000
20,758,946 12,682,689
1,499,416
1,787,799
221,127
25,781
6,465,939
1,739,524
9,762,653
5,600,000
5,600,000
78,392
1,660,000
33,700,242 - -
$ 56,727,145 $ 32,498,532 $ 13,192,689
$ 57,969,831 $ 33,626,417 $ 13,924,993
The accompanying notes are an integral part of the financial statements.
226
227
Emergency
Optional
Other
Total
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
$ 9,250,801
$
14,061,089
$
30,428,225
$
23,058,355
$ 175,471,235
692
-
-
6,151
503,158
367,111
-
367,111
-
-
-
-
514,604
202,814
291,640
15,143,695
541,537
21,181,385
-
-
-
-
42,883
45
303,911
344,180
-
1,106,716
1,106,716
-
-
-
-
752,751
$ 9,821,463
$
14,352,729
$
45,571,920
$
25,016,670
$ 200,284,023
$ 155,850
$
505,180
$
903,954
$
570,157
$ 4,567,543
-
-
404,635
521,865
1,331,809
-
272,000
272,000
-
-
-
10,347
367,111
2,635
1,014,138
1,478,643
-
-
-
160,058
522,961
507,815
1,308,589
2,378,160
7,820,400
-
-
-
-
42,883
45
303,911
344,180
-
-
752,751
-
33,441,635
1,171,689
1,171,689
3,007,049
3,007,049
-
2,030,401
3,529,817
8,529,914
-
10,317,713
-
382,378
382,378
7,622,078
7,622,078
1,024,233
1,024,233
130,694
351,821
311,202
311,202
1,660,771
1,660,771
-
3,081,243
3,081,243
44,263,331
-
44,263,331
-
1,040,832
1,040,832
947,258
947,258
-
25,781
-
6,465,939
279,766
2,019,290
-
-
-
9,762,653
800,000
1,500,000
7,900,000
800,000
1,500,000
7,900,000
-
-
78,392
-
2,315,000
3,975,000
7,698,457
-
7,698,457
-
-
-
(354,995)
33,345,247
$ 9,298,502
$
13,844,914
$
44,263,331
$
22,638,510
$ 192,463,623
$ 9,821,463
$
14,352,729
$
45,571,920
$
25,016,670
$ 200,284,023
227
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Transfers to constitutional officers
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
8,904,208
172,123 -
Secondary
1,217,805
Impact
Roads
General
Fees
Construction
$ 51,978,308 $
- $
3,346,362
8,882,669
1,741,302
113,700
13,719,067
214,084
227,337
4,925,596
-
150,530
469,935
-
-
396,760
194,070
70,233
1,486,495
64,507
86,070
81,858,830
2,213,963
3,994,232
8,904,208
172,123 -
4,331,270
1,217,805
259,310
643,144 -
3,655,363
8,492,314 5,024,531
413,326
- -
3,436,333
-
8,603,256
75,606 -
234,098
- -
29,837,164 10,600,992 5,024,531
52,021,666 (8,387,029) (1,030,299)
(8,124,731) - -
(43,430,780) - -
(51,555,511) - -
466,155 (8,387,029) (1,030,299)
56,260,990 40,885,561 14,222,988
$ 56,727,145 $ 32,498,532 $ 13,192,689
The accompanying notes are an integral part of the financial statements.
228
319,958 -
Emergency
Optional
Other
Total
32,605,755
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
- -
- 4,189,036
7,625,369
$ - $
19,360,684 $
12,942,483 $
7,090,713 $
94,718,550
118,916
-
56,850
275,956
11,189,393
2,582,152
84,072
2,202,063
8,164,375
27,193,150
105,531
5,123,675
-
752,429
11,057,761
-
2,900
-
86,744
559,579
60,436
115,872
165,265
147,515
1,150,151
1,215,642
594,390
8,137
714,174
4,169,415
4,082,677
25,281,593
15,374,798
17,231,906
150,037,999
319,958 -
- 890,014
10,286,303
- 26,288,863
- 767,817
32,605,755
434,669 -
- 34,611
1,371,734
11,053,731 -
- 206,268
28,432,207
- -
- 1,686,372
2,099,698
- -
- 4,189,036
7,625,369
- -
- 6,027,332
14,706,194
- -
- 314,205
548,303
- -
- 4,270,000
4,270,000
- -
- 2,562,374
2,562,374
- -
5,825,287 -
5,825,287
11,808,358 26,288,863
5,825,287 20,948,029
110,333,224
(7,725,681) (1,007,270)
9,549,511 (3,716,123)
39,704,775
7,953,026 -
- (402,837)
7,953,026 (402,837)
227,345 (1,410,107)
9,549,51
116,407 8,069,433
- (8,124,731)
(388,297) (44,221,914)
(271,890) (44,277,212)
(3,988,013) (4,572,437)
9,071,157 15,255,021 34,713,820 26,626,523 197,036,060
$ 9,298,502 $ 13,844,914 $ 44,263,331 $ 22,638,510 $ 192,463,623
229
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
The accompanying notes are an integral part of the financial statements.
230
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Taxes
$ 51,000,471 $
51,000,470 $
51,978,308 $
977,838
Permits and fees
9,037,350
9,037,350
8,882,669
(154,681)
Intergovernmental
9,328,051
12,252,030
13,719,067
1,467,037
Charges for services
5,488,431
5,542,718
4,925,596
(617,122)
Judgments, fines and forfeits
294,500
294,500
469,935
175,435
Interest
541,500
541,500
396,760
(144,740)
Miscellaneous
436,659
695,122
1,486,495
791,373
Total revenues
76,126,962
79,363,690
81,858,830
2,495,140
EXPENDITURES
Current:
General government
9,684,921
10,048,193
8,904,208
1,143,985
Public safety
4,473,503
4,733,657
4,331,270
402,387
Physical environment
263,084
271,529
259,310
12,219
Transportation
912,008
3,941,649
3,655,363
286,286
Economic environment
354,850
8,426,160
413,326
8,012,834
Human services
3,500,439
3,557,671
3,436,333
121,338
Culture/recreation
8,566,753
9,071,777
8,603,256
468,521
Court related
299,333
300,735
234,098
66,637
Total expenditures
28,054,891
40,351,371
29,837,164
10,514,207
Excess of revenues over expenditures
48,072,071
39,012,319
52,021,666
13,009,347
OTHER FINANCING USES
Transfers out
(8,124,731)
(8,209,256)
(8,124,731)
84,525
Transfers to constitutional officers
(43,805,715)
(43,965,069)
(43,430,780)
534,289
Total other financing uses
(51,930,446)
(52,174,325)
(51,555,511)
618,814
Net change in fund balances
(3,858,375)
(13,162,006)
466,155 $
13,628,161
Fund balances at beginning of year
3,858,375
13,162,006
56,260,990
Fund balances at end of year
$ - $
- $
56,727,145
The accompanying notes are an integral part of the financial statements.
230
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Impact Fees Fund
For the Year Ended September 30, 2011
Budgeted Amounts
Original Final
REVENUES
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Permits, fees and special assessments
$ 1,329,963 $ 1,329,963 $
1,741,302 $
411,339
Intergovernmental
- 17,845
214,084
196,239
Interest
270,000 270,000
194,070
(75,930)
Miscellaneous
- -
64,507
64,507
Total revenues
1,599,963 1,617,808
2,213,963
596,155
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
282,163 195,997
172,123
23,874
- 1,291,975
1,217,805
74,170
- 643,144
643,144
-
1,377,500 17,507,010
8,492,314
9,014,696
- 3,929,912
75,606
3,854,306
1,659,663 23,568,038
10,600,992
12,967,046
(59,700) (21,950,230) (8,387,029) $ 13,563,201
59,700 21,950,230 40,885,561
$ 32,498,532
The accompanying notes are an integral part of the financial statements.
231
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Secondary Roads Construction Fund
For the Year Ended September 30, 2011
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 3,297,174 $
3,297,174 $
3,346,362 $
49,188
-
-
113,700
113,700
-
1,925,602
227,337
(1,698,265)
-
-
150,530
150,530
80,000
80,000
70,233
(9,767)
5,958,341
6,006,995
86,070
(5,920,925)
9,335,515
11,309,771
3,994,232
(7,315,539)
9,335,515 14,686,453 5,024,531 9,661,922
9,335,515 14,686,453 5,024,531 9,661,922
(3,376,682) (1,030,299) $ 2,346,383
3,376,682 14,222,988
$ 13,192,689
The accompanying notes are an integral part of the financial statements.
232
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Transportation Fund
For the Year Ended September 30, 2011
REVENUES
Permits, fees and special assessments
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Physical environment
Transportation
Total expenditures
Excess of revenues under expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 123,500 $
123,500 $
118,916 $
(4,584)
2,318,950
2,318,950
2,582,152
263,202
86,925
86,925
105,531
18,606
90,250
90,250
60,436
(29,814)
792,750
792,750
1,215,642
422,892
3,412,375
3,412,375
4,082,677
670,302
304,650
333,967
319,958
14,009
576,834
590,866
434,669
156,197
11,658,917
14,001,859
11,053,731
2,948,128
12,540,401
14,926,692
11,808,358
3,118,334
(9,128,026)
(11,514,317)
(7,725,681)
3,788,636
7,953,026
7,953,026
7,953,026
-
7,953,026
7,953,026
7,953,026
-
(1,175,000)
(3,561,291)
227,345 $
3,788,636
1,175,000
3,561,291
9,071,157
$ - $
- $
9,298,502
The accompanying notes are an integral part of the financial statements.
233
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Emergency Services District Fund
For the Year Ended September 30, 2011
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers to constitutional officers
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 18,981,402 $
18,981,402 $
19,360,684 $
379,282
28,500
80,729
84,072
3,343
4,099,250
4,099,250
5,123,675
1,024,425
-
-
2,900
2,900
194,750
194,750
115,872
(78,878)
14,298
14,298
594,390
580,092
23,318,200
23,370,429
25,281,593
1,911,164
25,439,789 28,190,377 26,288,863 1,901,514
25,439,789 28,190,377 26,288,863 1,901,514
(2,121,589) (4,819,948) (1,007,270) 3,812,678
64,020 - (64,020)
(466,987) (466,987) (402,837) 64,150
(466,987) (402,967) (402,837) 130
(2,588,576) (5,222,915) (1,410,107) $ 3,812,808
2,588,576 5,222,915 15,255,021
13,844,914
The accompanying notes are an integral part of the financial statements.
234
Indian River County, Florida
Board of County Commissioners
Statement of Net Assets
Proprietary Funds
September 30, 2011
Enterprise Funds
Solid Waste
Disposal Golf County County
District Course Utilities Building
ASSETS
Current assets
Internal
Total Service Funds
Cash and cash equivalents
$ 16,272,939 $
132,583 $
34,595,467 $
3,980,050 $
54,981,039 $
30,926,594
Accounts receivable - net
108,294
-
2,770,758
375
2,879,427
1,564,576
Due from other governments
96,905
10,800
26,887
-
134,592
112,527
Interest receivable
15,633
574
536,308
3,012
555,527
23,392
Inventories
-
54,462
876,259
-
930,721
209,667
Prepaid expenses
-
-
181,164
-
181,164
1,035,670
Current restricted assets:
1,000
-
1,000
Cash and cash equivalents
13,490,489
470,664
26,337,729
-
40,298,882
-
Total current assets
29,984,260
669,083
65,324,572
3,983,437
99,961,352
33,872,426
Non-current assets:
1,031,527
152,578
3,921,714
83,289
5,189,108
2,823,572
Unamortized bond costs
-
49,523
477,430
-
526,953
-
Deferred amounts onrefundings
-
134,019
3,029,137
-
3,163,156
-
Capital assets- non -depreciable
15,940,391
669,630
15,648,928
-
32,258,949
27,300
Capital assets -depreciable
21,807,067
8,356,251
397,458,084
426,643
428,048,045
992,942
Accumulated depreciation
(7,887,372)
(1,729,813)
(183,132,771)
(421,606)
(193,171,562)
(614,707)
Non-current restricted assets:
127,141
2,477,787
2,604,928
Special assessments receivable
-
-
1,256,636
-
1,256,636
-
Impactfeesreceivable
1,158,668
696,158
771,704
83,289
771,704
2,823,572
Liens receivable
2,133,445
2,133,445
Total non-current assets
29,860,086
7,479,610
237,642,593
5,037
274,987,326
405,535
Total assets
59,844,346
8,148,693
302,967,165
3,988,474
374,948,678
34,277,961
LIABILITIES
Current liabilities (payable from current assets)
Accounts payable
991,593
26,375
536,528
6,827
1,561,323
215,451
Retainage payable
-
-
13,769
-
13,769
-
Claims payable
-
-
-
2,395,278
Due to other funds
52,604
-
-
52,604
190,000
Due to other governments
7,745
2,827,524
11,316
2,846,585
-
Unearned revenues
28,274
-
-
28,274
Other deposits
1,000
-
1,000
Pollution remediation costs payable
-
-
17,720
-
17,720
-
Accrued compensated absences
39,934
36,580
526,173
65,146
667,833
22,843
Total current liabilities (payable from current assets)
1,031,527
152,578
3,921,714
83,289
5,189,108
2,823,572
Current liabilities (payable from restricted assets):
Accounts payable
-
-
287,331
-
287,331
-
Retainage payable
-
136,260
136,260
Accrued interest payable
8,580
182,787
191,367
Bonds payable
-
535,000
3,090,000
3,625,000
Customer deposits
127,141
2,477,787
2,604,928
Total current liabilities (payable from restricted assets)
127,141
543,580
6,174,165
6,844,886
Total current liabilities
1,158,668
696,158
10,095,879
83,289
12,033,994
2,823,572
Non-current liabilities:
Accrued compensated absences
-
28,142
94,591
30,512
153,245
20,958
Advance from other funds
752,751
-
-
752,751
-
Claims payable
-
-
-
5,481,722
Pollution remediation costs payable
-
-
47,280
-
47,280
-
Closure and maintenance costs payable
10,016,236
-
-
10,016,236
Bonds payable - net of discount and premium
2,097,243
46,699,603
48,796,846
Total non-current liabilities
10,016,236
2,878,136
46,841,474
30,512
59,766,358
5,502,680
Total liabilities
11,174,904
3,574,294
56,937,353
113,801
71,800,352
8,326,252
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Debt service
Capital projects
Unrestricted
Total net assets
29,860,086 4,797,844 183,213,775 5,037 217,876,742 405,535
44,583 253,750 298,333
- - 23,931,768 - 23,931,768 -
18,809,356 (268,028) 38,630,519 3,869,636 61,041,483 25,546,174
$ 48,669,442 $ 4,574,399 $ 246,029,812 $ 3,874,673 $ 303,148,326 $ 25,951,709
The accompanying notes are an integral part of the financial statements.
235
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2011
OPERATING REVENUES
Charges for services
Charges for services pledged as
security for revenue bonds
Total operating revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and
other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest income
Interest income pledged as
security for revenue bonds
Gain on disposal of equipment
Interest expense
Bond amortization expense
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income (loss) before transfers and
capital contributions
Capital contributions
Capital grants
Transfers in
Change in net assets
Total net assets - beginning
Total net assets - ending
Enterprise Funds
Solid Waste
Disposal Golf
District Course
$ 9,221,396 $
- 3,163,062
9,221,396 3,163,062
1,200,617 585,330
8,180,639
1,661,551
987,673
122,977
10,368,929
2,369,858
(1,147,533)
203,253
530,241
(1,547)
731,947
(415,586)
643,144
793,204
7,510
12,640
(126,302)
(41,505)
(147,657)
645,547
227,558 645,547
48,441,884 3,928,852
$ 48,669,442 $ 4,574,399
The accompanying notes are an integral part of the financial statements.
236
County
County
2,479,650
Internal
Utilities
Building
Total
Service Funds
305,830,549
24,112,503
$ - $
1,588,934 $
10,810,330 $
21,495,026
27,842,092
-
31,005,154
-
27,842,092
1,588,934
41,815,484
21,495,026
7,601,131
1,132,608
10,519,686
2,300,869
9,227,181
480,645
19,550,016
17,427,465
14,602,614
10,609
15,723,873
153,296
31,430,926
1,623,862
45,793,575
19,881,630
(3,588,834)
(34,928)
(3,978,091)
1,613,396
-
21,847
225,100
167,312
491,260
-
498,770
-
19,770
-
562,651
3,200
(2,313,602)
-
(2,439,904)
-
(74,112)
-
(115,617)
-
-
-
(1,547)
-
(1,876,684)
21,847
(1,270,547)
170,512
(5,465,518)
1,836,506
86,765
(3,542,247)
249,572,059
$ 246,029,812 $
(13,081)
3,887,754
3,874,673 $
(5,248,638)
1,783,908
2,479,650
-
-
55,298
(2,768,988)
1,839,206
305,830,549
24,112,503
303,148,326 $
237
25,951,709
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2011
Enterprise Funds
Solid Waste
Disposal Golf
District Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,163,709
Cash paid to suppliers for goods and services (7,137,512)
Cash paid to employees for services (1,379,205)
Net cash provided by (used in) operating activities 646,992
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers in -
Proceeds from advances from other funds -
Payments on advances from other funds -
Net cash provided by (used in) noncapital financing activities -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent and arbitrage fees
Capital contributed by others
Net cash provided by (used in) capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
Restricted assets
Totals
$ 3,164,408
(1,693,577)
(589,688)
881,143
333,050
(150,431)
182,619
- (520,000)
- (126,975)
1,990,772 12,640
(2,369,252) (336,146)
643,144 -
264,664 (970,481)
209,661 7,612
209,661 7,612
1,121,317 100,893
28,642,111 502,354
$ 29,763,428 $ 603,247
$ 16,272,939 $ 132,583
13,490,489 470,664
$ 29,763,428 $ 603,247
The accompanying notes are an integral part of the financial statements.
238
County
County
Internal
Utilities
Building
Total
Service Funds
$ 27,663,095 $
1,588,559 $
41,579,771 $
21,275,610
(9,731,633)
(507,369)
(19,070,091)
(17,306,683)
(7,622,783)
(1,134,722)
(10,726,398)
(2,304,152)
10,308,679
(53,532)
11,783,282
1,664,775
-
-
-
55,298
-
-
333,050
190,000
-
-
(150,431)
-
-
-
182,619
245,298
(2,990,000)
-
(3,510,000)
-
(2,324,573)
-
(2,451,548)
-
19,770
-
2,023,182
3,200
(5,981,088)
-
(8,686,486)
(97,006)
(5,100)
-
(5,100)
-
1,252,512
-
1,895,656
-
(10,028,479)
-
(10,734,296)
(93,806)
500,094
23,295
740,662
169,732
500,094
23,295
740,662
169,732
780,294
(30,237)
1,972,267
1,985,999
60,152,902
4,010,287
93,307,654
28,940,595
$ 60,933,196 $
3,980,050 $
95,279,921 $
30,926,594
$ 34,595,467 $
26,337,729
$ 60,933,196 $
3,980,050 $ 54,981,039 $
- 40,298,882
3,980,050 $ 95,279,921 $
Continued
239
30,926,594
30,926,594
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2011
Enterprise Funds
Solid Waste
Disposal Golf
District Course
RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ (1,147,533) $ 793,204
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
987,673
122,977
(Increase) Decrease in assets:
Accounts receivable
(44,008)
-
Due from other governments
(1,394)
500
Inventories
-
(7,628)
Liens receivable
-
-
Impact fees receivable
-
-
Special assessments receivable
-
-
Prepaid items
-
-
Increase (Decrease) in liabilities:
Accounts payable
545,627
(24,632)
Due to other governments
-
234
Retainage payable
-
-
Customer deposits
(12,285)
-
Closure and maintenance costs payable
497,500
-
Pollution remediation costs payable
-
-
Unearned revenues
-
846
Claims payable
-
-
Accrued compensated absences
(178,588)
(4,358)
Total adjustments
1,794,525
87,939
Net cash provided by (used in) operating activities $
646,992 $
881,143
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 19,061 $ 700
Contributed property, infrastructure and equipment $ - $ -
Capital assets purchased through accounts payable $ 236,816 $ -
The accompanying notes are an integral part of the financial statements.
240
County County Internal
Utilities Building Total Service Funds
$ (3,588,834) $ (34,928) $ (3,978,091) $ 1,613,396
14,602,614
10,609 15, 723, 873
153,296
5,190
(375) (39,193)
(187,784)
(50)
- (944)
(31,632)
27,908
- 20,280
(53,469)
(563,702)
- (563,702)
-
43,869
- 43,869
-
311,792
- 311,792
-
(147,831)
- (147,831)
108,449
(359,162) (33,428) 128,405 87,802
(18,575) 6,704 (11,637) -
5,089 - 5,089 -
23,904 - 11,619 -
- - 497,500 -
(11,881) - (11,881) -
846 -
- (22,000)
(21,652) (2,114) (206,712) (3,283)
13,897,513 (18,604) 15,761,373 51,379
$ 10,308,679 $ (53,532) $ 11,783,282 $ 1,664,775
$ 51,334 $ 3,673 $ 74,768 $ 28,520
$ 643,922 $ - $ 643,922 $ -
$ 194,045 $ - $ 430,861 $ -
241
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2011
Other
Postemployment
Agency Benefits Trust
ASSETS
Cash and cash equivalents $ 5,581,531 $ -
Investments, at fair value:
Index funds - 3,226,690
U.S. government securities funds - 4,700,167
Prime money market fund - 525,143
Total assets $ 5,581,531 8,452,000
LIABILITIES
Accounts payable $ 818,509 525
Benefits payable - 1,496,119
Other deposits held in escrow 4,763,022 -
Total liabilities $ 5,581,531 1,496,644
NET ASSETS
Assets held in trust for other
postemployment benefits
Total net assets
6,955,356
$ 6,955,356
The accompanying notes are an integral part of the financial statements.
242
Indian River County, Florida
Board of County Commissioners
Statement of Changes in Fiduciary Net Assets
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2011
ADDITIONS
Employer contributions $ 2,948,358
Investment loss (84,217)
Investment expense (2,130)
Total additions 2,862,011
DEDUCTIONS
Benefits payments 1,496,119
Total deductions 1,496,119
Change in net assets 1,365,892
Net assets - beginning 5,589,464
Net assets - ending $ 6,955,356
The accompanying notes are an integral part of the financial statements.
243
R
244
E-3
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Board of County Commissioners (the "Board") is a County agency and a local governmental entity
pursuant to Article VIII, Section 1(e) of the Constitution of the State of Florida. For financial statement
and reporting purposes, the Board does not meet the definition of a legally separate organization and is
not considered to be a component unit. The Board is considered to be a part of the primary government
of Indian River County. The financial statements contained herein represent the financial transactions of
the Board only.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Reporting Entity
The concept underlying the definition of the reporting entity is that elected officials are accountable to
their constituents for their actions. The reporting entity's financial statements should allow users to
distinguish between the primary government (the Board) and its component units. However, some
component units, because of the closeness of their relationship with the Board, should be blended as
though they are part of the Board. Otherwise, most component units should be discretely presented. As
required by generally accepted accounting principles, the financial reporting entity consists of. (1) the
primary government (the Board), (2) organizations for which the Board is financially accountable, and
(3) other organizations for which the nature and significance of their relationship with the Board are
such that exclusion would cause the reporting entity's financial statements to be misleading or
incomplete. The Board is financially accountable if it appoints a voting majority of the organization's
governing body and (a) it is able to impose its will on that organization or (b) there is a potential for the
organization to provide specific financial benefits to, or impose specific financial burdens on, the Board.
The Board is financially accountable if an organization is fiscally dependent on the Board regardless of
whether the organization has (a) a separately elected governing board, (b) a governing board appointed
by a higher level of government, or (c) a jointly appointed board. Based on these criteria, Board
management examined all organizations, which are legally separate, in order to determine which
organizations, if any, should be included in the Board's financial statements. Management determined
that the Solid Waste Disposal District and the Emergency Services District were the only organizations
that should be included in the Board's financial statements as blended component units.
Blended Component Units
Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the Board for the SWDD and sets the non ad valorem assessment fees
for the SWDD. Although legally separate, the SWDD is appropriately blended as a proprietary fund
type (enterprise) component unit into the primary government.
Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of County
Commissioners serves as the Board for the EMS and sets the millage rate for EMS. Although legally
separate, the EMS is appropriately blended as a governmental fund type (special revenue) component
unit into the primary government.
245
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements
The underlying accounting system of the Board is organized and operated on the basis of separate funds,
each of which is considered to be a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund
balances, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated
to and accounted for in individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled.
Fund financial statements for the Board's governmental, proprietary, and fiduciary funds are presented.
Governmental accounting standards set forth minimum criteria (percentage of the assets, liabilities,
revenues or expenditures/expenses of either fund category and the governmental and enterprise
combined) for the determination of major funds. These statements display information about major
funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. The
Statement of Fiduciary Net Assets presents assets held by the Board in a custodial capacity for other
individuals or organizations.
See Note 17 for more information on the spending hierarchy of fund balances in the fund financial
statements.
Governmental Funds
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectable within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Board considers revenues to be available if they are collected within 45 days after the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. Franchise fees, sales taxes, gas taxes, operating and capital grants, and interest associated
with the current fiscal period are all considered to be susceptible to accrual and so have been recognized
as revenues of the current fiscal period. All other revenue items are considered to be measurable only
when cash is received by the Board.
Under the current financial resources measurement focus, only current assets and current liabilities are
generally included on the balance sheet. The reported fund balance is considered to be a measure of
"available spendable resources". Governmental funds operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of "available spendable resources"
during a period.
Long-term receivables are reported on their balance sheets in spite of their spending measurement focus.
Advances and notes to other funds are offset as nonspendable fund balance. See Note 17 for more
information on the categories and descriptions of fund balances in the fund financial statements.
246
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Fund Financial Statements — Continued
Because of their spending measurement focus, expenditure recognition for governmental fund types
excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such
long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were
expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing
source rather than as a fund liability. Debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Proprietary Funds
The Board's enterprise and internal service funds are proprietary funds. In the fund financial statements,
proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when
they are earned and expenses are recognized when the related goods or services are delivered. In the
fund financial statements, proprietary funds are presented using the economic resources measurement
focus. This means that all assets and all liabilities (whether current or non-current) associated with their
activity are included on their balance sheets. Proprietary fund type operating statements present
increases (revenues) and decreases (expenses) in total net assets. The Board applies all GASB
Pronouncements as well as all FASB and AICPA Pronouncements.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and
investment earnings result from nonexchange transactions or ancillary activities.
Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather
than reported as an expense. Proceeds of long-term debt are recorded as a liability in the fund financial
statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness are
reported as a reduction of the related liabilities, rather than as an expense.
Fiduciary Funds
The fiduciary financial statements include financial information for the agency fund and the other
postemployment benefits trust fund. The agency fund of the Board primarily represents assets held by
the Board in a custodial capacity for other individuals or governments. The other postemployment
benefits trust fund (Trust) accounts for activities of the Trust, which accumulates resources for health
insurance benefit payments for current retirees and for current employees upon their retirement. The
agency and Trust fund statements are presented using the accrual basis of accounting.
247
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
Governmental Major Funds
General Fund — The General Fund is the general operating fund of the County. It is used to account for
all financial resources, except those required to be accounted for in another fund.
Impact Fees Fund — The Impact Fees Fund accounts for the receipt of various impact fees. Funds are
used for the construction of roads and bridges, correctional, public safety, library, park, public building,
and solid waste facilities. Funds are also used for administrative expenditures of monitoring the
aforementioned activities.
Secondary Roads Construction Fund — The Secondary Roads Construction Fund accounts for the
expenditures of road and bridge construction, roadway, bridge and right of way maintenance and
drainage, and related administrative expenses. Financing is provided by collections of the local option
gas tax.
Transportation Fund — The Transportation Fund accounts for expenditures incurred for the maintenance
and repair of County roads. Financing is provided by the 5th and 6th cent gas tax, County gas tax and
transfers from the General Fund.
Emergency Services District Fund — The Emergency Services District Fund accounts for the
expenditures of providing fire protection and advanced life support to the County. Ad valorem taxes are
the primary source of revenue.
Optional Sales Tax Fund — The Optional Sales Tax Fund accounts for revenue generated by the local
option one -cent sales tax and some capital grants that use the local option one -cent sales tax as matching
funds. Monies are used for various capital projects.
Proprietary Major Funds
Solid Waste Disposal District — The Solid Waste Disposal District Fund accounts for the revenues,
expenses, assets and liabilities associated with the County landfill.
Golf Course Fund — The Golf Course Fund accounts for the revenues, expenses, assets and liabilities
associated with the Golf Course.
County Utilities Fund — The County Utilities Fund accounts for the revenues, expenses, assets and
liabilities associated with the County water and sewer system.
County Building Fund — The County Building Fund accounts for revenues, expenses, assets, and
liabilities associated with the County building permit and inspection program.
248
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
Other Fund Types
Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and
Geographic Information Systems services provided to other departments of the County on a cost
reimbursement basis.
Agency Fund — The Agency Fund is used to account for assets held in a custodial capacity by the
County for other governmental units, other funds, individuals and businesses. Examples include payroll
deductions, self insurance premiums, and developer escrow funds.
Other Postemployment Benefits Trust Fund — The Other Postemployment Benefits Trust Fund accounts
for activities of the Trust, which accumulates resources for health insurance benefit payments for current
retirees and for current employees upon their retirement. Contributions are recorded when earned and
benefit payments and refunds when incurred within each year.
C. Cash and Cash Equivalents
Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety
days or less when purchased. The Board maintains a cash and investment pool that is available for use
by all funds. Earnings for the pooled investments are allocated to the respective funds based on
applicable cash participation by each fund. The investment pool is managed such that all participating
funds have the ability to deposit and withdraw cash as if they were demand deposit accounts. Therefore,
all balances representing participants' equity in the investment pools are classified as cash and cash
equivalents for financial statement purposes. In addition, longer-term investments are held by several of
the Board's funds and are, therefore, reported as current restricted cash and cash equivalents on these
statements.
D. Investments
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, money market
funds, Florida PRIME Fund (formerly known as the Local Government Surplus Funds Trust Fund
Investment (SBA) Fund A), Fund B Surplus Funds Trust Fund, and the Florida Local Government
Investment Trust Fund (FLGIT). Investments are reported at fair value based upon the average price
obtained from three brokers/dealers. The SBA and FLGIT values are based upon the fair market value
per share of the underlying portfolio. Refer to Note 2-C, Investments, for further information on
individual investments.
E. Allowance for Doubtful Accounts
The Board provides an allowance for water and sewer accounts receivables that may become
uncollectable. At September 30, 2011, this allowance was $424,493. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectable as reported at
September 30, 2011.
249
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
F. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting, with the exception of the Shooting Range and Fleet Internal Service Fund's inventories
which are valued using the average cost method of accounting. Inventories of all funds are recorded as
expenditures (expenses) when consumed rather than when purchased.
G. Prepaid Items
This account represents prepayments for services that will be used in future periods. The Board's policy
is to record the expenditure for the services when they are used rather than when the cash is disbursed.
H. Other Assets Held For Resale
This account represents assets the Board has purchased with the intent to resell. In fiscal year 2009, the
Board was allocated $4.6 million from the U.S. Department of Housing and Urban Development's
Neighborhood Stabilization Program under a Community Development Block Grant. This funding was
to be used by local governments for acquiring, redeveloping, and reselling foreclosed properties that
might otherwise become sources of abandonment within their communities. At September 30, 2011, ten
homes remain unsold. The Board intends to resell these homes in the next fiscal year. They are
reported at the lower of cost or market value on the balance sheet of the Board's governmental funds.
I. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, right-of-
ways, water and sewer distribution systems, beach restoration, stormwater systems and similar items),
and intangible assets (e.g. software, easements, and rights), are reported in the applicable governmental
or business -type activities column in the government -wide financial statements. The Board defines
capital assets as assets with an initial, individual cost of $1,000 or more and an estimated useful life in
excess of one year. Except for roads and bridges constructed prior to October 1, 1981, assets are
recorded at historical cost. Roads and bridges constructed prior to October 1, 1981 are reported at
estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of
donations. The costs of normal maintenance and repairs that do not add to the value of the asset nor
materially extend its useful life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of
the capitalized value of the assets constructed. The Board holds legal title to the capital assets used in
the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and
Tax Collector, and is accountable for them under Florida Law.
Capital assets used by the Board's governmental funds are reported in the financial statements of the
County. Capital assets of the Board's enterprise and internal service funds are reported in the Proprietary
Funds' financial statements.
250
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
I. Capital Assets - Continued
Property, plant, equipment, intangible, and infrastructure assets of the primary government, as well as
the component units, are depreciated, or amortized as in the case of intangible assets, using the straight-
line method over the following estimated useful lives:
Assets
Building and improvements
Machinery and equipment
Utility distribution systems
Road and bridge infrastructure
Fiberoptics
Software
Beach preservation infrastructure
Stormwater infrastructure
J. Capitalization of Interest
Years
10-50
3-10
25-50
20-50
20
3-5
7
30
Interest costs related to bond issues are capitalized during the construction period. These costs are netted
against applicable interest earnings on construction fund investments. During the current period, the
Board did not have any capitalized interest.
K. Unamortized Bond Costs
Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are
amortized over the life of the bonds using the straight-line method of accounting.
L. Unamortized Bond Discounts and Premiums
Bond discounts and premiums associated with the issuance of Proprietary Fund revenue bonds are
amortized over the life of the bonds according to the straight-line method. For financial reporting,
unamortized bond discounts and premiums are netted against the applicable long-term debt.
M. Landfill Closure Costs
Under the terms of current state and federal regulations, the Solid Waste Disposal District (SWDD) is
required to place a final cover on closed landfill areas, and to perform certain monitoring and
maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs
of closure and post -closure maintenance over the active life of each landfill area, based on landfill
capacity used during the period. Required obligations for closure and post -closure costs are recognized
in the Solid Waste Disposal District Enterprise Fund.
251
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
N. Deferred Revenues
In governmental fund financial statements (in accordance with the modified accrual basis of
accounting), deferred revenues represent revenues, which are measurable but not available, or received
and unearned.
O. Accrued Compensated Absences
The Board does not report compensated absences in the governmental fund statements since they are not
current liabilities payable from available spendable resources. They are reported in the financial
statements of the County. Proprietary fund types accrue compensated absences in the period they are
earned.
P. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(f) of the U.S. Internal Revenue Code, the Board must rebate to the United States
Government the excess of interest earned from the investment of certain debt proceeds and pledged
revenues over the yield rate of the applicable debt. The Board has no arbitrage liability outstanding as
of September 30, 2011.
Q. New Accounting Pronouncements
Effective October 1, 2010, the Board implemented the provisions of GASB Statement No. 61 The
Financial Reporting Entity: Omnibus and GASB Statement No. 62 Codification of Accounting and
Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA
pronouncements.
R. Budgets and Budgetary Accounting
The Board uses the following procedures in establishing the budgetary data reflected in the financial
statements:
1. The constitutional officers submit, at various times, to the Board and to certain divisions within the
Department of Revenue, State of Florida, a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the
means of financing them, as set forth in Chapter 129 of the Florida Statutes.
2. The Department of Revenue, State of Florida, has the final authority on the operating budgets for the
Tax Collector and the Property Appraiser included in the General Fund.
3. Constitutional officers, all departments controlled by the Board, and outside state and local agencies
submit their proposed budgets to the Office of Management and Budget for assistance, review, and
compilation. The County Administrator then reviews all County departments, state agencies, and
nonprofit organization's budgets and makes his budget recommendation to the Board.
252
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
R. Budgets and Budgetary Accounting - Continued
4. On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board's designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the
means of financing them. The Board then holds workshops to review the tentative budget by fund on
a departmental level.
5. During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public
hearing, the Board enacts resolutions to legally adopt the budgets at the fund level for all
governmental and proprietary fund types. The budgets legally adopted by the Board set forth the
anticipated revenues by source and the appropriations by function.
6. Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the Board. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the
total appropriations of a fund. Board approval to amend the budget is only required when
unanticipated revenues are received that management wishes to have appropriated, thereby
increasing the total appropriations of a fund.
7. Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
8. Appropriations for the Board lapse at the close of the fiscal year.
NOTE 2 - CASH AND CASH EQUIVALENTS
The Board maintains a cash and investment pool that is available for use by all funds except those whose
cash and investments must be segregated due to bond covenants or other legal restrictions.
A. Deposits
At September 30, 2011, the carrying value of the Board's deposits with banks was $11,381,758 and the
bank balance was $13,082,244. All the deposits were covered by the FDIC or collateralized in
accordance with Chapter 280, Florida Statutes, also known as the "Florida Security for Public Deposits
Act".
B. Accrued Interest
Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and
investment pools and then allocated to each fund based on each fund's average monthly balance. As of
September 30, 2011, accrued interest for the Board's portfolio totaled $181,454 and was allocated to the
funds based on their average monthly balance for September.
253
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments
On August 12, 2008, the Indian River County Board of County Commissioners modified the investment
policy pursuant to Section 218.415, Florida Statutes, that established permitted investments, asset
allocation limits, issuer limits, credit ratings requirements and maturity limits to protect the Board's cash
and investments.
As of September 30, 2011, the Board had the following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value InYears Percentage Risks*
Fixed Rate Debt Instruments:
U.S. Treasuries
U.S. Agencies:***
Federal Farm Credit Bureau
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal National Mortgage Assoc.
Other Fixed Rate Investments:
Fund B Surplus Funds Trust Fund
Florida Local Government
Investment Trust Fund
Other Market Rate Investments:
$ 99,264,382 1.04 33.56 % N/A
Regions Bank Money Market
Suntrust Bank NOW Account
Florida Trust Day to Day Fund
W&S Sinking Fund Reserve:
U.S. Treasuries
Federal Home Loan Bank
Fidelity Institutional Money Market
Total Fair Value $
39,215,167
1.39
13.26
AA+
50,091,446
1.00
16.94
AA+
18,991,294
1.41
6.42
AA+
36,996,709
0.65
12.51
AA+
458,460
4.82
0.16
Not Rated
AAAf and
9,960,868
0.08
3.37
S-1**
13,897,326
0.08
4.70
N/A
7,567,072
0.08
2.55
N/A
13,914,862
0.08
4.70
AAAm
3,724,922
0.98
1.26
N/A
1,678,827
0.39
0.57
AA+
11,200
0.08
0.00
AAAm
295,772,535
100.00
%
0.91
* Ratings based upon Standard and Poor's
** AAAf credit quality, S-1 Market Volatility
*** The weighted calculation considers the investments are carried until full maturity
(i.e. call dates are not considered).
254
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments — Continued
At September 30, 2011, the Board had $605,757 invested in Fund B Surplus Funds Trust Fund, a
fluctuating net asset value pool. The State Board of Administration (SBA) determined a negative fair
market value adjustment of 24.32% of the portfolio balance, or $147,297, was needed to represent the
fair market value of the participation. Consequently, the net investment in Fund B is reported at
$458,460.
The Florida Local Government Investment Trust Fund is a pool of various securities with maturities of
less than five years. The fund was established by Florida Statute 163.01, is administered by the Florida
Association of Court Clerks, and is marked to market daily.
Interest Rate Risk
The Board's investment policy limits interest rate risk by attempting to match investment maturities with
known cash needs and anticipated cash flow requirements. All investments must have stated maturities
of ten (10) years or less and no more than 25% of the portfolio shall be invested in instruments with
stated final maturities greater than five (5) years. The portfolio shall have securities with varying
maturity and at least 10% of the portfolio shall be invested in readily available funds.
Credit Risks
Florida Statutes, Section 218.415 and the Board's investment policy limit investments to the following:
1. Direct obligations of the United States Treasury;
2. Florida PRIME (formerly known as Fund A) and Fund B Surplus Funds Trust Fund (Fund B);
3. Florida Local Government Investment Trust Fund;
4. Interest-bearing time deposits or savings in qualified public depositories as defined in Section
280.02, Florida Statutes;
5. Federal agencies and instrumentalities;
6. Securities of, or other interests in, any open-end or closed-end management -type investment
company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss.
80a-1 et seq., as amended from time to time, provided that the portfolio of such investment
company or investment trust is limited to obligations of the United States Government or any
agency or instrumentality thereof and to repurchase agreements fully collateralized by such United
States Government obligations, and provided that such investment company or investment trust
takes delivery of such collateral either directly or through an authorized custodian;
255
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments — Continued
7. Securities and Exchange Commission registered money market funds with the highest credit
quality rating from a nationally recognized rating agency;
8. Repurchase agreements with a term of one year or less collateralized by direct obligations of the
United States Government which have maturities of three (3) years or less and a market value
103% or more of the repurchase amount.
Currently, Fund B participants are permitted to withdraw scheduled amounts as assets become
liquid. Full realization of the principal value of Fund B assets is uncertain and dependent upon the
collateralized securities underlying each holding and is contingent upon future market conditions.
Concentration Risk
The Board's investment policy has established asset allocation and issuer limits to reduce concentration
of credit risk in the Board's investment portfolio. The Board's investment policy does not allow for
more than 20% of the entire portfolio to be invested in any one issuer, with the exception of United
States Treasury Obligations and state authorized pools. No more than 10% of the portfolio may be
placed in certificates of deposit and no more than $3 million of the portfolio may be placed in
certificates of deposit with any one financial institution. No more than 5% of the portfolio may be
placed in any one money market fund, mutual fund, or intergovernmental investment pool.
Custodial Credit Risk
The Board's investment policy pursuant to Section 218.415 (18), Florida Statutes requires securities to
be registered and held with a third party custodian. All securities purchased, as well as all collateral
obtained, by the Board shall be held in the name of the Board. The securities must be held in an account
separate and apart from the assets of the financial institution. As of September 30, 2011, the Board's
investment portfolio in U.S. Treasuries, U.S. Agencies, and money market fund, was held by The Bank
of New York/Mellon with the exception of the following: the SunTrust NOW account, the Regions
Bank Money Market, and the Florida Trust Day to Day Fund. The Florida Trust Day to Day Fund was
held by UMB Bank.
D. OPEB Trust Investments
Funds are held in the name of the Indian River County OPEB Trust (IRCOT), an irrevocable trust, by a
third party custodian, Bank of New York/Mellon. The investments are reported at fair value based upon
market -close price on the last business day of each month.
The Board approved a separate investment policy for the IRCOT assets on February 3, 2009 (amended
on May 12, 2009). The County adopted a broadly diversified portfolio composition consisting of equity,
debt, and cash and cash equivalents. Asset allocations are divided between short term and long term
investments. Short term asset allocations include cash and cash equivalents with maturities of 180 days
or less. Long term asset allocations range from 0-60% for equities, 0-60% for fixed income securities,
and 0-100% for cash and cash equivalents.
256
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
D. OPEB Trust Investments - Continued
The contribution of $2.82 million for year ended September 30, 2011 was invested in the various funds
listed below. As of September 30, 2011, the Indian River County OPEB Trust (IRCOT) had the
following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value InYears Percentage Risks*
Short -Term Portion:
Fidelity Treasury Money Market $ 1,496,119 0.12 17.70 % AAAm
Long -Term Portion:
Vanguard 500 Index
1,552,052
N/A
18.36
N/A
Vanguard All World Ex -US
1,174,299
N/A
13.89
N/A
Vanguard Mid Cap Index
335,441
N/A
3.97
N/A
Vanguard Small Cap Index
164,898
N/A
1.95
N/A
Vanguard Short Term Treasury
1,768,214
2.60
20.92
AA+
Vanguard Intermediate Treasury
1,230,290
5.40
14.56
AA+
Vanguard Prime Money Market
525,143
0.16
6.21
A-1
Vanguard Federal Money Market
205,544
0.15
2.44
A-1
Total Fair Value $
8,452,000
100.00 %
* Ratings based upon Standard and Poor's
NOTE 3 - PROPERTY TAX REVENUES
Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal
year starting October 1. Property tax revenues recognized for the 2010-2011 fiscal year were levied in
October 2010. All taxes are due and payable on November 1 or as soon as the assessments roll is
certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4% in
November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without
discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via
the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at
fiscal year end.
257
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 — CAPITAL ASSETS
A. Governmental Fund Type Capital Assets
A summary of changes in the governmental fund type capital assets is as follows:
Depreciation expense, which includes amortization expense on intangible assets, for governmental fund
type capital assets is not reported in the financial statements of the Board. Depreciation expense is
reported in the financial statements of the County. Please refer to the County Notes for a more detailed
explanation of the County's policy on depreciation.
B. Proprietary Fund Type Capital Assets
A summary of changes in the proprietary fund type capital assets is as follows:
Buildings
And
And
Construction
Construction
Land
Improvements
Land
Improvements
Equipment
Intangibles
Infrastructure
In Progress
Total
Balance 10/1/2010
$ 138,413,559
$ 186,414,912
$ 38,222,682
$ 2,620,522
$ 8,949,193
$ 1,126,677
$ 375,747,545
Additions
-
744,123
2,795,697
231,302
37,500
4,147,490
7,956,112
Deletions
(25,000)
-
(1,329,694)
-
-
(640,673)
(1,995,367)
Balance 9/30/2011
$ 138,388,559
$ 187,159,035
$ 39,688,685
$ 2,851,824
$ 8,986,693
$ 4,633,494
$ 381,708,290
Depreciation expense, which includes amortization expense on intangible assets, for governmental fund
type capital assets is not reported in the financial statements of the Board. Depreciation expense is
reported in the financial statements of the County. Please refer to the County Notes for a more detailed
explanation of the County's policy on depreciation.
B. Proprietary Fund Type Capital Assets
A summary of changes in the proprietary fund type capital assets is as follows:
258
Buildings
And
Construction
Land
Improvements
Equipment
Intangibles
In Progress
Total
Balance at 10/1/2010
$19,312,400
$408,373,165
$19,182,375
$2,224,432
$ 9,270,970
$458,363,342
Additions
1,218,032
4,453,232
941,761
652,949
6,899,893
14,165,867
Deletions
-
(8,945)
(5,387,463)
(2,140)
(5,803,425)
(11,201,973)
20,530,432
412,817,452
14,736,673
2,875,241
10,367,438
461,327,236
Less:
-
Accumulated Depreciation
-
(180,327,286)
(12,734,932)
(724,051)
-
(193,786,269)
Balance at 9/30/2011
$20,530,432
$ 232,490,166
$ 2,001,741
$2,151,190
$ 10,367,438
$267,540,967
258
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 5 — RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS
Sinking funds
Renewal and
replacement
Customer deposits
Capital construction
Closure and maintenance cost
Total
Solid Waste
Disposal Golf County
District Course Utilities Total
$ - $ 470,664 $ 6,159,070
3,347,112 -
3,485,928
127,141 -
2,471,418
- -
14,221,313
10,016,236 -
-
$ 13,490,489 $ 470,664
$ 26,337,729
NOTE 6 — PAYABLE FROM RESTRICTED ASSETS
$ 6,629,734
6,833,040
2,598,559
14,221,313
10,016,236
6. _
Liabilities payable from the Board's Enterprise Funds restricted assets above are as follows:
259
Solid Waste
Disposal
Golf
County
District
Course
Utilities
Total
Accounts payable
$ -
$ -
$ 287,331
$ 287,331
Retainage payable
-
-
136,260
136,260
Accrued interest payable
-
8,580
182,787
191,367
Bonds payable (current portion)
-
535,000
3,090,000
3,625,000
Closure/maint. costs payable
10,016,236
-
-
10,016,236
Customer deposits
127,141
-
2,477,787
2,604,928
Total
$ 10,143,377
$ 543,580
$ 6,174,165
$ 16,861,122
259
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2011, consisted of the following:
Receivable Fund
General Fund
General Fund
General Fund
Payable Fund Amount
Nonmajor Governmental Funds $ 272,000
Golf Course Enterprise Fund 52,604
Fleet Internal Service Fund 190,000
$ 514,604
In October 2010, the General Fund loaned $ 333,050 to the Golf Course Fund to purchase new golf
carts. The amount reported as due from the Golf Course Fund is the current portion of the scheduled
payments due to the General Fund in fiscal year 2012. The remaining amount due from the Golf Course
Fund is reported as an interfund advance. The amounts due from the Fleet Internal Service Fund and the
Nonmajor Governmental Funds represent short-term cash loans that will be repaid within the next
twelve months.
Interfund advances at September 30, 2011, consisted of the following:
Receivable Fund
Secondary Roads Construction Fund
General Fund
Payable Fund Amount
Golf Course Fund $ 510,000
Golf Course Fund 242,751
$ 752,751
These amounts are considered long-term advances between major funds expected to be paid over the
course of several years. These amounts have been presented as nonspendable on the General and
Secondary Roads Construction Funds Balance Sheets.
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2011, consisted of the following:
Transfers In:
Transportation Nonmajor Internal Service
Fund Governmental Funds Fund Total
Transfers Out:
General Fund $ 7,953,026 $ 116,407 $ 55,298 $ 8,124,731
260
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 8 - INTERFUND TRANSFERS - Continued
Transfers are used for the following purposes: 1) use unrestricted general fund revenues to finance
transportation activities which must be accounted for in a special revenue fund, 2) use unrestricted
general fund revenues for beach restoration activities which must be accounted for in another fund, and
3) use unrestricted general fund revenues to offset a portion of salaries and benefits expenses for an
employee accounted for in the health insurance fund.
NOTE 9 — DUE FROM OTHER GOVERNMENTS
Governmental Funds
On November 18, 2008, the Board entered into a locally funded agreement with the Florida Department
of Transportation (FDOT) to advance the six-laning of State Road 60 from 82nd Avenue to I-95
(Segment Two). The agreement obligated the Board to pay $14,429,754 to the FDOT. Payment was
made in November 2008 to the FDOT. Funding was from the Optional Sales Tax Fund.
Reimbursement by the FDOT for Segment Two will be in ten quarterly installments over a three-year
period which began in July 2011. Repayments to the Board will include principal and any accumulated
interest earnings that have not been used for supplemental costs of the project.
Segment Two Amount Advance Funded
Less: Reimbursements received as of 9/30/2011
Balance Due from FDOT SR60 Agreement
Additional Funds Due from other governments
Total Due from other governments
Optional Sales
Tax Fund
$ 14,429,754
(500,000)
13,929,754
1,213,941
$ 15,143,695
261
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 10 - ACCOUNTS PAYABLE
Accounts Payable at September 30, 2011, were as follows:
Governmental Funds:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Optional Sales Tax
Other Governmental
Total Governmental Funds
Proprietary Funds:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Other Proprietary
Payable from restricted assets:
Utilities
Total Proprietary Funds
The Board has not engaged in any short-term debt activity during fiscal year 2011 other than that listed
in Note 7.
Due To Other Governments - Utilities Fund
On August 25, 2010, the Board received notification from the State Division of Emergency Management
that a repayment of $2,827,524 may be due to the Federal Emergency Management Agency (FEMA) for
disallowed costs related to a sewer project. The Board has appealed FEMA's decision. As of
September 30, 2011, the Board recorded these costs as a liability, Due to Other Governments, in the
Utilities proprietary fund while awaiting FEMA's response to the appeal.
262
Total
Salaries and
Accounts
Vendors
Benefits
Pay_ able
$ 939,268
$ 38,254
$ 977,522
747,711
17,616
765,327
688,779
774
689,553
132,818
23,032
155,850
438,263
66,917
505,180
903,954
-
903,954
567,412
2,745
570,157
4.418,205
$ 149,338
4,567,543
$ 989,811
$ 1,782
$ 991,593
24,508
1,867
26,375
513,153
23,375
536,528
3,532
3,295
6,827
212,563
2,888
215,451
287,331
-
287,331
2,030,898
33,207
$ 2,064,105
The Board has not engaged in any short-term debt activity during fiscal year 2011 other than that listed
in Note 7.
Due To Other Governments - Utilities Fund
On August 25, 2010, the Board received notification from the State Division of Emergency Management
that a repayment of $2,827,524 may be due to the Federal Emergency Management Agency (FEMA) for
disallowed costs related to a sewer project. The Board has appealed FEMA's decision. As of
September 30, 2011, the Board recorded these costs as a liability, Due to Other Governments, in the
Utilities proprietary fund while awaiting FEMA's response to the appeal.
262
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES
A. Governmental Long -Term Debt
Changes in Long -Term Liabilities
Accrued Compensated Absences:
Bonds Payable:
Limited General Obligation
Bonds - 2006 Series
General Obligation
Bonds - 2001 Series
Spring Training Facility
Revenue Bonds - 2001 Series
Total Bonds Payable
Grand Total
Balance
October 1,
7.(11(1 Additinnc
Balance
September 30,
Deletions 2011
$ 4,520,819 $ 2,494,479 $ 2,851,540
38,270,000 - 2,885,000
5,210,000
- 780,000
$ 4,163,758
35,385,000
4,430,000
12,310,000 -
605,000
11,705,000
55,790,000 -
4,270,000
51,520,000
$ 60,310,819 $ 2,494,479
$ 7,121,540
$ 55,683,758
Of the $4,163,758 liability for accrued compensated absences, management estimates that $2,000,000
will be due and payable within one year. The long-term liabilities are not reported in the financial
statements of the Board since they are not payable from available spendable resources. They are
reported in the financial statements of the County by the fund which normally pays the personnel service
costs of the employee.
The General Obligation Bonds and Spring Training Facility Revenue Bonds are not reported in the
governmental fund statements since they are not current liabilities payable from available spendable
resources. They are reported in the government -wide financial statements of the County. Payments on
the above general obligation and revenue bonds are made by debt service funds (refer to the Table of
Contents for these debt service funds under the category, Combining Balance Sheet and Combining
Statement of Revenues, Expenditures and Changes in Fund Balance of Nonmajor Governmental Funds).
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES — Continued
A. Governmental Long -Term Debt - Continued
Annual Debt Service Pam
The annual debt service payments for bonds outstanding at September 30, 2011, are as follows:
Fiscal Year
Ending
September 30
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
Total
Limited General
Obligation Bonds
Series 2006
Principal
Interest
$ 3,000,000
$1,612,263
3,120,000
1,492,263
3,255,000
1,367,463
3,390,000
1,204,712
3,545,000
1,035,212
19,075,000
2,667,762
General Obligation
Bonds
Series 2001
Principal Interest
$ 810,000 $ 183,368
845,000 151,778
885,000 117,977
925,000 80,807
965,000 41,495
35,385,000 9,379,675 4,430,000 575,425
Spring Training Facility
Revenue
Bonds
Series 2001
Principal
Interest
$ 630,000
$ 593,423
655,000
566,333
685,000
537,513
725,000
501,550
760,000
463,487
4,435,000
1,676,412
1,695,000
793,000
2,120,000
324,750
11,705,000
5,456,468
Less:
Current portion 3,000,000 - 810,000 - 630,000 -
Add:
Unamortized
bond premium 908,939 - - - - -
Total $ 33,293,939 $ 9,379,675 $ 3,620,000 $ 575,425 $ 11,075,000 $ 5,456,468
Limited General Obligation Bonds
Purpose — On July 6, 2006, the Board issued $48,600,000 of Limited General Obligation Bonds, Series
2006. The issuance of the Series 2006 bonds was approved by a majority of votes cast in a bond
referendum held on November 2, 2004, by the qualified electors of the County. The referendum
authorized a total of $50,000,000 aggregate principal amount of limited general obligation bonds. The
proceeds of this issue will provide funds to acquire interest in lands to protect water resources and/or
drinking water sources, environmentally sensitive lands, historic sites, and/or agricultural lands together
with the necessary preservation, restoration, remediation and reclamation activities to preserve and
enhance such property.
Pledge of revenues - The principal and interest on the bonds are payable from ad valorem taxes not
exceeding '/z mil and having a maturity not exceeding fifteen years, which are levied by the Board upon
the taxable real and personal property of the Board.
264
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES — Continued
A. Governmental Long -Term Debt - Continued
Limited General Obligation Bonds - Continued
Bonds Issued - At September 30, 2011, Limited General Obligation Bonds consisted of the following:
Description
Limited General Obligation
Bonds, 2006 Series
Interest Rates
and Date
Maturi Issue
Outstanding at
September 30,
2011
4.00%-5.00%
1/1 and 7/1 2021 $ 48,600,000 35.385.000
Optional Redemption - The Limited General Obligation Bonds, Series 2006, maturing on or after July 1,
2017, are subject to redemption prior to maturity, at the option of the Board on and after July 1, 2016, in
whole or in part, at any time, on any date at a redemption price of par, together with accrued interest to
the redemption date.
General Obligation Bonds
Purpose — On November 29, 2001, the Board issued the additional $11,000,000 of General Obligation
Bonds, Series 2001. The issuance of the Series 1995 bonds and the Series 2001 bonds were approved by
a majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of the
County. The referendum authorized a total of $26,000,000 aggregate principal amount of general
obligation bonds, in one or more series, for which the Series 1995 bonds are the first (in the amount of
$15,000,000) and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to
acquire environmentally sensitive lands, together with the necessary restoration, remediation, and
reclamation activities to preserve and enhance such property.
On July 1, 2003, the Board issued $7,800,000 of General Obligation Refunding Bonds, Series 2003.
The bonds were issued to provide funds, together with $600,000, to refund and redeem the entire
outstanding principal amount of the Board's $15,000,000 General Obligation Bonds, Series 1995.
Proceeds of the bonds will also be used to pay the cost of issuance of the bonds, including the premiums
for guaranty insurance. The Series 2003 bonds were paid in full on July 1, 2010.
Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied
by the Board upon the taxable real and personal property of the Board and are pledged for the remaining
term of the bonds.
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt - Continued
General Obligation Bonds - Continued
Bonds Issued - At September 30, 2011, General Obligation Bonds consisted of the following:
Description
General Obligation Bonds,
2001 Series
Interest Rates
and Date
Maturi
Outstanding at
September 30,
Issue 2011
2.50%-4.30%
1/1 and 7/1 2016 $ 11,000,000 4.430.000
Optional Redemption - The General Obligation Bonds, Series 2001, maturing on or after July 1, 2013,
are subject to redemption prior to maturity, at the option of the Board on and after July 1, 2012, in whole
or in part, at any time, on any date at par plus accrued interest and plus a premium ranging between 0%
to 1% depending on the year of redemption. The Board elected to early call these bonds. See
Subsequent Event Note 22 for further information.
Spring Training Fg acility Revenue Bonds
Purpose - On August 15, 2001, the Board issued $16,810,000 of Spring Training Facility Revenue
Bonds, Series 2001. The Series 2001 bonds are being issued by the County to provide funds, together
with other available funds, to (1) finance a portion of the cost of acquisition and expansion of a spring
training facility currently known as "Vero Beach Sports Village (formerly known as Dodgertown)"; (2)
pay a premium for a municipal bond insurance policy and a debt service reserve account surety bond,
and (3) pay certain costs and expenses incurred in connection with the issuance of the Series 2001
bonds.
Pledge of Revenues - The principal and interest on the Series 2001 bonds will be payable from and
secured by a first lien upon and pledge of the following, together with any investment income realized
on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund:
Payments received by the County from the State of Florida pursuant to Section 212.20, Florida
Statutes; and
2. The Fourth Cent Tourist Development Tax levied by the County in Ordinance No. 2000-029,
enacted pursuant to Section 125.0104(3)(1), Florida Statutes; and
3. Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the County,
pursuant to Chapter 218, part VI, Florida Statutes.
The foregoing is collectively referred to herein as the "pledged revenues". These revenue streams are
pledged for the remaining term of the bonds.
266
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt - Continued
Spring TrainingFacility Revenue Bonds - Continued
The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to
the payment of debt service on the Series 2001 bonds are automatically released as pledged revenue for
the Series 2001 bonds immediately following the April 1, 2021 principal payment on the Series 2001
bonds.
The current principal and interest payments of $1,223,423 represent eighteen percent of total pledged
revenues. All three pledged revenue sources totaled $6,967,824 for the current fiscal year. The County
applied 100% of the first two pledged revenues and six percent of the Half -Cent Sales Tax to the debt
service payments. The total principal and interest remaining to be paid on the bonds is $17,161,468.
Bonds Issued - At September 30, 2011, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Spring Training Facility
Revenue Bonds, 2001 Series
Interest Rates
and Date
Maturi
Outstanding at
September 30,
Issue 2011
3.30%-5.25%
4/1 and 10/1 2031 $ 16,810,000 11,705,000
Optional Redemption - The Series 2001 bonds maturing on or after April 1, 2012, were subject to
redemption at the option of the Board, in whole or in part, on April 1, 2011, or on any date thereafter at
par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of the
redemption.
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring TrainingFacility Revenue Bonds - Continued
Mandatory Redemption - The Series 2001 Term Bonds are subject to mandatory redemption prior to
maturity, by lot, at par plus accrued interest, according to the following schedule:
Term Bonds due April 1, 2015
Date Principal Amount
April 1, 2014 $ 685,000
April 1, 2015 725,000
Term Bonds due April 1, 2017
Date Principal Amount
April 1, 2016 $ 760,000
April 1, 2017 795,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 840,000
April 1, 2019 890,000
April 1, 2020 930,000
April 1, 2021 980,000
Term Bonds due April 1, 2027
Date
Principal Amount
April 1, 2022
$ 305,000
April 1, 2023
320,000
April 1, 2024
340,000
April 1, 2025
355,000
April 1, 2026
375,000
April 1, 2027
390,000
Term Bonds due April 1, 2031
Date Principal Amount
April 1, 2028 $ 410,000
April 1, 2029 430,000
April 1, 2030 455,000
April 1, 2031 435,000
268
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt
Changes in Long -Term Liabilities
Accrued Compensated Absences
Bonds Payable:
Recreational Revenue Refunding
Series 2003
Water & Sewer Revenue
Series 1993
Water & Sewer Revenue
Refunding Series 2005
Water & Sewer Revenue
Refunding Series 2009
Total Bonds Payable
Grand Total
Balance Balance
October 1, September 30,
2010 Additions Deletions 2011
$ 1,074,872 $ 710,942 $ 920,935 $ 864,879
3,175,000 - 520,000 2,655,000
1,555,000 - 1,555,000 -
21,925,000 - 1,435,000 20,490,000
26,370,000 - - 26,370,000
53,025,000 - 3,510,000 49,515,000
$ 54,099,872 $ 710,942 $ 4,430,935 $ 50,379,879
Annual Debt Service Pqyments
The annual debt service payments for bonds outstanding at September 30, 2011 are as follows:
Fiscal Year Recreational Water and Sewer Water and Sewer
Ending Revenue Refunding Revenue Refunding Revenue Refunding
September 30 Bonds Series 2003 Bonds Series 2005 Bonds Series 2009
2012
2013
2014
2015
2016
2017-2021
2022-2026
Total
Less:
Current portion
Unamortized
bond discount
Add:
Unamortized
bond premium
Total
Principal Interest
$535,000 $102,964
555,000 83,169
580,000 62,356
600,000 39,881
385,000 15,881
2,655,000 304,251
535,000
22,757 -
$2,097,243 $304,251
Principal Interest
$ 1,480,000 $925,250
1,530,000 877,150
1,605,000 800,650
1,670,000 736,450
1,750,000 652,950
10,145,000 1,878,300
2,310,000 92,400
20,490,000 5,963,150
1,480,000
Principal Interest
$1,610,000 $ 1,268,200
1,675,000 1,203,800
1,745,000 1,136,800
1,815,000 1,067,000
1,905,000 976,250
11,050,000 3,353,750
6,570,000 596,500
26,370,000 9,602,300
1,610,000
671,967 - 2,257,636 -
$19,681,967 $ 5,963,150 $ 27,017,636 $9,602,300
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11— LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt - Continued
Recreational (Golf Course) Revenue Refunding Bonds, Series 2003
Purpose - On October 15, 2003, the Series 2003 bonds were issued to redeem $6,735,000 of the Board's
outstanding Recreational Revenue Bonds, Series 1993. The Series 2003 bonds are being issued by the
Board to provide funds, together with $583,790, to retire all of the outstanding 1993 Series bonds and to
pay for all bond issuance costs. The previous bonds were issued to build a County -owned golf course.
The aggregate difference in debt service between the Series 1993 debt ($9,284,290) and Series 2003
debt ($8,060,911) is $1,223,379. The net economic gain was $348,450.
Pledge of Revenue - The revenue bonds are secured by liens, for the remaining term of the bonds, in the
following order: (1) the net revenues derived from the operations of the golf course, (2) one hundred
percent of racetrack and Jai Alai Fronton funds, and (3) seven percent of the half -cent sales tax accruing
annually to the County.
The financial strength of our municipal bond insurer, AMBAC, was downgraded to Baal in November
2008. This downgrade required the Board to fully cash fund the debt service reserve. The Board elected
to pledge the Racetrack and Jai Alai Fronton funds to meet this bond covenant. The total annual amount
of the required debt service reserve of $417,500 was cash funded.
The current principal and interest payments of $639,864 represent sixty-nine percent of net revenues of
$923,691 of the golf course. The total principal and interest remaining to be paid on the bonds is
$2,959,251. All three pledged revenue sources totaled $1,865,448 for the current fiscal year. The
County did not utilize the second and third revenue sources toward the current year principal and interest
payments.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and current year principal and
interest requirements.
Bonds Issued - At September 30, 2011, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturi Issue 2011
Recreational Revenue 2.00 — 4.125% 9/1/16 $ 6,455,000 2.655.000
Refunding Bonds, Series 2003 3/1 and 9/1
Optional Redemption - The revenue bonds, maturing on or after September 1, 2014, are subject to
redemption prior to maturity, at the option of the Board on and after September 1, 2013, in whole or in
part, at any time thereafter at the redemption price of par, plus interest accrued to the date of redemption.
270
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11— LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt - Continued
Water and Sewer Revenue Refunding Bonds, Series 2005
Purpose - The Series 2005 bonds were issued to defease $31,680,000 of the Board's outstanding Water
and Sewer Revenue Bonds, Series 1996. These bonds were issued by the Board to provide funds,
together with $5,000,000, to retire 95 percent of the 1996 Series and to pay for all bond issuance costs.
The September 1, 2005 and 2006 principal installments were not subject to early call and consequently
paid at their respective maturity dates. The 1996 bonds were issued to acquire an existing water and
sewer facility, as well as for capital improvements to the existing system.
The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005
($39,619,193) is $966,000. The net economic gain was $2,944,661, which included shortening the term
of the bonds by four years and lowering average annual debt service by $242,000.
Pledge of Revenues — The revenue bonds are collateralized, for the remaining term of the bonds, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and special
assessments.
Annual principal and interest payments of $2,405,800 represent approximately eighteen percent of net
revenues of $13,158,703 of the utility system. The total principal and interest remaining to be paid on
the bonds is $26,453,150.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
Bonds Issued - At September 30, 2011, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2011
Water and Sewer 3-5%
Revenue Bonds, 3/1 and 9/1 2022 $ 27,675,000 20.490.000
Series 2005
Outstanding In -Substance Defeased Debt - The proceeds from the refunding was invested in Federal
Securities and was placed in an escrow account with J.P. Morgan. All of the defeased bonds
($31,680,000) were called on September 1, 2006 at 102% of the outstanding principal amount.
Optional Redemption - The Series 2005 bonds maturing after September 1, 2015, are subject to
redemption by the Board on or after September 1, 2015, in whole or in part, at par, plus accrued interest
to date of redemption.
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt — Continued
Water and Sewer Revenue Refunding Bonds, Series 2009
Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009,
$28,270,000 of the Board's outstanding Water and Sewer Revenue Bonds, Series 1993A. The
refunding excluded debt service payments due September 1, 2010 and 2011.
The aggregate difference in debt service between the Series 1993A ($80,434,415) and Series 2009
($78,755,772) is $1,678,643. The net economic gain was $1,368,427, which lowered average annual
debt service by $126,000.
Pledge of Revenues — The revenue bonds are collateralized, for the remaining term of the bonds, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and special
assessments.
The interest payments of $1,268,200 represent approximately ten percent of net revenues of $13,158,703
of the utility system. The total principal and interest remaining to be paid on the bonds is $35,972,300.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
Bonds Issued - At September 30, 2011, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturi Issue 2011
Water and Sewer 4-5%
Revenue Bonds, 3/1 and 9/1 2024 $ 26,370,000 26,370,000
Series 2009
Outstanding In -Substance Defeased Debt - The proceeds from the refunding was invested in Federal
Securities and was placed in an escrow account with Bank of New York/Mellon. All of the defeased
bonds ($28,270,000) were called on September 1, 2009 at 101% of the outstanding principal amount.
Optional Redemption - The Series 2009 bonds maturing on or prior to September 1, 2019, are not
subject to redemption prior to their respective dates of maturity. The Series 2009 Bonds stated to mature
after September 1, 2019, are subject to redemption at the option of the Board in whole or, from time to
time, in part on September 1, 2019, at the redemption price of the principal amount to be redeemed, plus
accrued interest to the date of redemption.
272
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 11 - LONG-TERM LIABILITIES - Continued
C. Summary of Defeased Debt Outstanding
The last installment of the Capital Improvement Revenue Bonds Series 1980 totaling $390,000 was
defeased on October 1, 2010. Since governmental obligations are held in escrow for the payment of
principal and interest, the bonds are not liabilities of the Board.
D. Conduit Debt Obligations
Indian River County issued various Industrial Revenue Bonds over the years which provide financial
assistance to private -sector entities for the acquisition, construction, and equipping of industrial and
commercial facilities deemed to be in the public interest. The bonds are secured by the property financed
and are payable solely from payments received on the underlying mortgage loans. Upon repayment of
the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond
issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner
for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
NOTE 12 - PROVISION FOR CLOSURE COSTS
Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of
Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final
cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The SWDD
annually obtains updated and revised estimates of total future closure and post -closure costs from its
consulting engineers. The SWDD recognizes the expenses associated with the final closure and post -
closure maintenance of the landfill areas over the active life of those areas. The provision for closure
costs reported in the financial statements as operating expense represents the portion of these estimated
future outlays which are allocable to the current year based on the amount of capacity used.
The total unrecognized closure and post -closure costs are approximately $3.9 million. These costs will
be recognized in future periods as the remaining capacity is filled. The Board's policy is to fund 100%
of the current year's allocation (based upon the consulting engineers' report) of both closure and post -
closure care.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 12 - PROVISION FOR CLOSURE COSTS - Continued
Required closure and post -closure sub -accounts:
All amounts recognized are based on what it would cost to perform all closure and post -closure
functions in current dollars. Actual costs may be different due to inflation, deflation, changes in
technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof
of ability to finance closure and post -closure costs. The SWDD is making annual deposits to a closure
and post -closure cost escrow account to provide for the financing of future closure -related expenses. At
September 30, 2011, $9,960,868 was on deposit at the Florida Local Government Investment Trust and
$55,368 was on deposit in the Board's Operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/01/10 Deposits Withdrawals 09/30/11
Closure and long-term care costs9.518.736 $497,500 S- 10.016.236
Of the $10,016,236 liability for closure and long-term care costs, management estimates that no funds
will be due and payable within one year.
274
Capacity
Estimated
Used
Closing
Amount
Closure Costs
Class I - Segments I and II
56%
2030 $
6,501,947
Construction and Demolition - Cell I
89%
2017
1,101,366
Post -closure Costs
Class I - Segments I and II
N/A
N/A
2,238,435
Construction and Demolition - Cell I
N/A
N/A
174,488
Total account balance at 9/30/11:
$
10,016,236
All amounts recognized are based on what it would cost to perform all closure and post -closure
functions in current dollars. Actual costs may be different due to inflation, deflation, changes in
technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof
of ability to finance closure and post -closure costs. The SWDD is making annual deposits to a closure
and post -closure cost escrow account to provide for the financing of future closure -related expenses. At
September 30, 2011, $9,960,868 was on deposit at the Florida Local Government Investment Trust and
$55,368 was on deposit in the Board's Operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/01/10 Deposits Withdrawals 09/30/11
Closure and long-term care costs9.518.736 $497,500 S- 10.016.236
Of the $10,016,236 liability for closure and long-term care costs, management estimates that no funds
will be due and payable within one year.
274
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 — POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financial Reporting for Pollution Remediation
Obligations, a consultant evaluated six sites to assess pollution remediation liabilities. The consultant
calculated for each site an expected value (EV) estimate for pollution remediation based on three
plausible mitigation scenarios. An obligating event occurred at each of the following six sites requiring
the Board (using the consultant's services) to attempt to accrue a liability for pollution remediation. The
liability totaled $2,634,200 at September 30, 2011 for all six sites. The pollution remediation obligation
is an estimate and subject to changes resulting from price increases and reductions, technology, and
changes in applicable laws or regulations. There are no estimated recoveries that would reduce the
liability.
Governmental Funds:
1) South Gifford Road closed landfill — The nature of the pollution remediation obligation is
chlorinated solvent contamination. The consultant will conduct monitoring, bioremediation and
reporting with the Florida Department of Environmental Protection (FDEP). The amount of the
estimated year end liability is $2,450,000.
2) Old Administration Building — The nature of the pollution remediation obligation is closed
underground storage tank contamination. The consultant will conduct monitoring and reporting
with the FDEP. The amount of the estimated year end liability is $38,900.
3) Cattle dip site — The nature of the pollution remediation obligation is arsenic contamination. The
consultant will conduct monitoring and assessment. The amount of the estimated year end
liability is $75,300.
4) Former Cumberland Farms — The nature of the pollution remediation obligation is closed
underground storage tank petroleum contamination. The consultant will conduct the well
abandonment and obtain the final No Further Action Notice. The amount of the estimated year
end liability is $5,000.
Total governmental funds liability: 2 569 200
275
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 13 — POLLUTION REMEDIATION - Continued
Proprietary Funds:
5) North County Reverse Osmosis plant — The nature of the pollution remediation obligation is
groundwater inorganic contamination. The consultant will conduct monitoring and assessment.
The amount of the estimated year end liability is $43,200.
6) Old Savannah Lift Station — The nature of the pollution remediation obligation is petroleum
impacts (diesel) due to a leaky filter on an emergency generator. The consultant will conduct
monitoring and assessment. The amount of the estimated year end liability is $21,800.
Total proprietary funds liability: 65 000
Due to the addition of the Old Savannah Lift Station site in fiscal year 2011, beginning net assets for the
Utilities Fund needed to be restated. Please see Note 19-B for information regarding the restatement of
beginning net assets for the proprietary funds as it relates to the pollution remediation liability. The
difference between the Utilities Fund restated beginning net assets of $35,281 and the liability of
$21,800 was expensed during the current year.
NOTE 14 — PENSION PLANS
Florida Retirement System
Plan Description: The Board's employees participate in the Florida Retirement System (FRS), a cost-
sharing, multiple -employer public employee retirement system, administered by the Florida Department
of Management Services. Effective July 1, 2011, the FRS became a contributory plan for all members,
except DROP participants, whereby members contribute 3% and employers pay a rate based upon each
member's employment class (regular class 4.91%, senior class 6.27%, and elected official class
11.14%).
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age. Under the Pension Plan, early retirement is available before reaching
normal retirement age and will be subject to an early-retirement reduction of 5% for each year your age
at retirement is under your normal retirement age. For those employees who elect participation in the
Investment Plan rather than the Pension Plan, vesting occurs after one year of service. Participants have
access to the full value of their vested account balance when they leave FRS employment, regardless of
age. These participants receive a defined contribution for self-direction in an investment product with a
third party administrator selected by the State Board of Administration.
276
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 14 — PENSION PLANS - Continued
Florida Retirement System - Continued
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
of pay, membership class and the payment option selected at retirement.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP).
This program allows eligible employees to defer receipt of monthly retirement benefit payments while
continuing employment with a FRS employer for a period not to exceed five years after electing to
participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest.
Employer contributions to the FRS for the fiscal years ended September 30, 2009, 2010 and 2011, were
equal to 13.1%, 13.4%, and 12.8% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2009, 2010, and 2011, were $5,630,401, $5,602,795 and
$4,975,937 respectively, which are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $259,425.
Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines
contribution rates for the various membership classes of the FRS. The FRS issues a publicly available
financial report that includes financial statements, ten-year historical trend information and other
required supplementary information. That report may be obtained by writing to the Florida Department
of Management Services, Division of Retirement, Attention: Research and Education Section, P.O. Box
9000, Tallahassee, Florida 32315-9000, or from the website at www.dms.myflorida.com. The funding
policy is described in detail in the Florida Retirement System note in the County -wide financial
statements.
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN
A. Plan Description
The Indian River County OPEB Trust (IRCOT) was established by resolution on September 23, 2008
for the Board of County Commissioners and the five constitutional officers (Clerk of the Circuit Court,
Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector). The Indian River County
Board of County Commissioners acts as the OPEB Board of Trustees and delegates the administration
of the IRCOT to an OPEB Trust Board. The OPEB Trust Board consists of the Clerk of the Circuit
Court, Budget Director, Finance Director, County Administrator, and Human Resources Director.
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
A. Plan Description - Continued
Resolution 2008-163 gave authority to establish the IRCOT as a single -employer defined benefit plan
(OPEB Plan). The Trust's financial statements are reported using the accrual basis of accounting. The
IRCOT trustees can amend the benefit provisions. The OPEB Plan subsidizes the cost of health care for
employees hired prior to February 1, 2006 and their eligible dependents according to the provisions of
the substantive plan (the plan as understood by the employer and the plan members). Employees hired
on or after February 1, 2006 will not be eligible for any subsidy, regardless of years of service or
Medicare eligibility. Life insurance is available to retirees at a flat rate per $1,000 of coverage. The
premium rate is contingent upon age and date of retirement. Only the implicit rate subsidy applies to
retiree life insurance coverage since the retirees are responsible for the full premium of their life
insurance coverage.
Retired employees are permitted to remain covered under the Board's medical and life insurance plans
as long as they pay a premium applicable to the coverage elected. This conforms to the minimum
required of Florida governmental employers per Florida Statute 112.0801. The implicit rate subsidy
also applies to health insurance coverage since the premiums charged are based upon a blending of
younger, active employees and older, retired employees. Active participants as well as retirees are
subject to the same benefits and rules. Health insurance premiums, effective October 1, 2008, range
from $198 for Medicare participants to $735 for family coverage. The Board subsidizes the cost of the
premiums for each retiree based upon their years of service and employment date; a 2% discount for
each year of service based upon the following table:
Retirement Date
Years of Service
Under Age 65
Medicare Eligible
Before 01/01/04
N/A
No subsidy
60% subsidy
01/01/04 - 10/01/04
Less than 15 years
No subsidy
60% subsidy
01/01/04 - 10/01/04
15 or more years
2%/yr-max 40%
20% in addition to yrs of
service -max 60% subsidy
10/01/04 - 01/31/09
Less than 15 years
No subsidy
20% subsidy
10/01/04 - 01/31/09
15 or more years
2%/yr-max 40%
20% in addition to yrs of
service -max 60% subsidy
02/01/09 and after
Less than 15 years
No subsidy
No subsidy
02/01/09 and after
15 or more years
2%/yr-max 40%
No subsidy
The retiree has the option to continue with the Board group health plan or elect the Medicare Advantage
Plan. The subsidy will apply to either plan.
278
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN — Continued
A. Plan Description — Continued
At October 1, 2009, the date of the latest actuarial valuation, plan participation consisted of-
Active
fActive participants 1,452
Retired participants 286
Total participants 1.738
There are two classes of participants at October 1, 2009:
Regular and senior management 1,153
Special risk 585
Total participants 1.738
The average employer's contribution was $2,031 per employee, approximately 4% of current payroll.
Financial statements for the IRCOT are included in this report and can be found on pages 40-41. A
separate, stand-alone financial report is not issued by the Board. The IRCOT investments can be found
in Note 21).
B. Funding Policy
The Board of County Commissioners, in concert with the OPEB Board of Trustees, has the authority to
establish and amend the funding policy of the OPEB Plan. The IRCOT is advance funded by the Board.
For the year ended September 30, 2011, the County contributed $2.82 million to the qualifying IRCOT.
Plan members receiving benefits contributed $1.12 million, or approximately 45 percent of the total
premiums. It is the County's policy to base future IRCOT contributions on the annual required
contribution (ARC) in subsequent annual actuarial reports. Custodial and individual fund administrative
fees are paid from the portfolio dividend and interest income.
C. Annual OPEB Cost and Net OPEB Obligation
The employer's contribution (i.e. annual cost or expense) to the County's IRCOT is based on the ARC
calculation. The ARC is an amount actuarially determined in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to
exceed 20 years. The following table shows the components of the County's annual IRCOT cost for the
year and two preceding years, the amount actually contributed, and the changes in the net obligation.
Annual Required Contribution
Interest on Net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB Cost (expense)
Contributions
Change in Net OPEB obligation
Net OPEB obligation — beginning of year
Net OPEB obligation — end of year
Percentage of Annual OPEB Cost Contributed
FY 2010/2011 FY 2009/2010 FY 2008/2009
$ 2,948,682
(22,381)
23,385
2,949,686
(2,819,540)
130,146
(319,730)
$ (189,584)
95.59%
279
2,814,435
(7,272)
7,779
2,814,942
(3,030,792)
(215,850)
(103.880)
$ (319,730) $
107.67%
2,810,092
(6,587)
6,082
2,809,587
(2,819,373)
(9,786)
(94,094)
(103,880)
100.35%
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
D. Funded Status and Funding Progress
The contribution made to the IRCOT for the current fiscal year was 95.6% of the annual OPEB cost.
Information is available for the two preceding fiscal years. As of the October 1, 2009 actuarial valuation
date, the IRCOT was 11.37% funded, the actuarial accrued liability for benefits was $32.5 million, and
the actuarial value of assets was $3.7 million, resulting in an unfunded actuarial accrued liability
(URAL) of $28.8 million. The covered payroll (annual payroll of active employees covered by the
IRCOT) was $70.6 million, and the ratio of the UAAL to the covered payroll was 40.8%. Actuarial
valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status
of the plan and the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about the future.
The schedule of funding progress and schedule of employer contributions, presented as required
supplementary information following the County notes to the financial statements, presents information
about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the benefits provided under terms of
the substantive plan (the plan as understood by the employer and the plan members) in effect at the time
of each valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate the
potential effects of legal or contractual funding limitations on the pattern of cost sharing between the
employer and plan members in the future. Actuarial calculations reflect a long-term perspective.
Consistent with that perspective, actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period (closed)
Asset valuation method
The actuarial assumptions are:
Investment rate of return
Projected annual salaries increase
Healthcare cost trend rate
(post-retirement benefit)
Inflation rate
Entry age normal cost method
Level percent of payroll projected to grow 4% per year
17 years
Market Value
7% (net administrative expenses)
4.0%-9.47% (dependent on years of service and age)
9%
Included in the Healthcare cost trend rate
280
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 16 - OPERATING LEASES
The Board has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary
from 1 to 50 years. Lease revenues totaled $574,277 and lease expenditures totaled $72,326 for the year
ended September 30, 2011. The Board also leases other equipment and office facilities as both lessor
and lessee on a month-to-month basis.
A. Future Minimum Lease Receipts
Year
Amount
2012
$ 495,535
2013
448,437
2014
453,203
2015
467,377
2016
453,612
2017-2021
2,310,869
2022-2026
1,495,460
2027-2031
777,865
2032-2036
207,259
2037-2038
55,300
Total future minimum receipts:
$ 7.164.917
The property being leased is reported in the financial statements of County and has a cost of
$25,824,960, and a carrying value of $17,857,037. Current year depreciation on property being leased
was $708,293.
B. Future Minimum Lease Payments
The following is a schedule, by years, of minimum future rentals to be paid by the Board for various
noncancelable operating leases as of September 30, 2011:
Year
Amount
2012
$ 75,201
2013
78,076
2014
40,701
2015
23,132
2016
23,132
2017-2021
70,596
2022-2026
3,000
2027-2031
3,000
2032-2036
3,000
2037-2041
3,000
2042-2046
3,000
2047-2048
900
Total future minimum lease payments:
326 738
281
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 17 - FUND BALANCE
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions requires the
fund balance for governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the specific purposes
for which amounts in those funds can be spent.
A. Categories
There are five categories of fund balance for governmental funds under Statement 54:
Nonspendable — Amounts that cannot be spent because they are not in spendable form or are legally or
contractually required to remain intact.
Restricted — Use of these resources is based on the constraints imposed externally by creditors, grantors,
contributors, or laws and regulations of other governments; or imposed by law through constitutional
provisions or enabling legislation.
Committed — Amounts whose use is constrained by formal action of the Board of County
Commissioners, including resolution or ordinance. This category includes contractual obligations
entered into by the Board of County Commissioners.
Assigned — The Board of County Commissioners is the governing body authorized to assign fund
balance amounts to be used for specific purposes. Amounts appropriated to eliminate a budgetary
deficit in a subsequent year are reported in this category as well.
Unassigned — Residual amounts in the general fund that do not meet any of the other fund balance
classifications.
B. Fund Balance Policy
On September 21, 2010, the Board approved a Fund Balance and Reserve Policy that set forth the
following reserves of fund balance in the General, Transportation, and Emergency Services District
Funds:
Emergency/Disaster Relief Reserve — A balance of no less than 5% of budgeted operating expenditures
for the current fiscal year will be reserved only for the purpose of responding to natural and man-made
disasters. Disasters include hurricanes, tropical storms, floods, wildfires, or terrorist activities. These
funds can only be used to respond and provide relief after such a disaster. Funds will be replenished
over a five-year period after the completion of the recovery from the disaster. This reserve is presented
as committed fund balance in those funds.
282
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 17 - FUND BALANCE — Continued
B. Fund Balance Policy - Continued
Budget Stabilization Reserve — A balance of no less than 5% of budgeted operating expenditures for the
current fiscal year will be reserved only for the purpose of revenue declines or unfunded mandates from
the state and federal governments. This reserve is presented as committed fund balance in those funds.
Funds utilized due to revenue declines will be replenished over a five-year period. Funds utilized for
unfunded mandates or unanticipated expenditures cannot be used for more than a three-year period and
must be replenished within five -years after the three-year period.
Minimum Fund Balance - The approved fund balance policy dictates the Board's attempt to maintain a
minimum fund balance in the General, Transportation, and Emergency Services District funds of 20% of
budgeted annual operating expenditures.
The Emergency/Disaster Relief and Budget Stabilization Reserve amounts may only be revised by the
Board of County Commissioners. The minimum fund balance level may be revised by the County
Administrator or his designee.
C. Spending Hierarchy
For all governmental funds, when restricted, committed, assigned, and unassigned fund balances are
combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as
appropriate, then assigned and finally unassigned fund balances.
283
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 18 - FUND BALANCE DEFICIT
The following funds had a deficit in fund balance at September 30, 2011:
Fund
Deficit
Nonmajor Governmental Funds:
Metropolitan Planning Organization Fund $ 107,412
Federal/State Grants Fund 229,275
CDBG Neighborhood Stabilization Program 3 Grant Fund 11,108
Total Deficit $ 347,795
The deficits for these three funds will be eliminated by grant proceeds in fiscal year 2012.
NOTE 19 — NET ASSETS
A. Restricted Net Assets
The Board has established certain restrictions within the net assets section of the proprietary funds.
Restricted net assets at September 30, 2011 consist of the following:
Restricted for Debt Service:
Golf Course Fund $ 44,583
County Utilities Fund 253,750
Total $ 298,333
Restricted for Capital Projects:
County Utilities Fund $ 23,931,768
B. Restatement of Beginning Net Assets
In accordance with the requirements of GASB Statement 49, Accounting and Financial Reporting for
Pollution Remediation Obligations, beginning net assets for the Utilities Fund was restated. Due to the
addition of the Old Savannah Lift Station and based on the consultant's report, the Utilities Fund's
portion of the estimated liability at October 1, 2010 was $35,281; therefore, beginning net assets was
reduced by that amount. For more information on the Board's pollution remediation obligation, please
see Note 12.
E
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 20 - RISK MANAGEMENT
General Liability, Property, Worker's Compensation and Medical
The Board is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors or omissions, injuries to employees, and natural disasters. The Board established a Self
Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under
this program, the Self Insurance Fund provides coverage as follows:
The Board purchases excess insurance to cover claims in excess of the coverage listed above. There is a
5% deductible per location for property damages arising due to a hurricane under the reinsurance policy.
The Board has not incurred any settlements in excess of the insurance coverage listed above in the past
four fiscal years. All departments of the Board participate in the program. Payments are made by
various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts
needed to pay current year claims.
The Board is also self-insured for medical claims covering employees and their eligible dependents. As
required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
same health care coverage as is offered to active employees; however, the retirees are responsible for
payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees,
and by the Board. Premiums and contributions are determined by projected claims based on historical
and actuarial experience. The self insurance plan assumes all risk for claims, other than worker's
compensation, up to $250,000 per occurrence. For worker's compensation, the plan assumes all risk for
claims up to $350,000 per occurrence. The Board has purchased a reinsurance policy to cover claims in
excess of these limits. There were no claims in excess of these limits for the 2009, 2010, and 2011 fiscal
years.
285
04/01/08 to
10/01/08 to
05/01/11 to
09/30/08
04/30/11
09/30/11
Worker's Compensation
$ 300,000
$ 350,000
$ 350,000
General Liability
250,000
250,000
200,000
Auto Liability
250,000
250,000
200,000
Property Damage
500-25,000
250,000
200,000
Error or Omissions
250,000
250,000
200,000
Annual Aggregate
1,000,000
2,000,000
2,000,000
Liquor Liability
1,000,000
1,000,000
1,000,000
The Board purchases excess insurance to cover claims in excess of the coverage listed above. There is a
5% deductible per location for property damages arising due to a hurricane under the reinsurance policy.
The Board has not incurred any settlements in excess of the insurance coverage listed above in the past
four fiscal years. All departments of the Board participate in the program. Payments are made by
various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts
needed to pay current year claims.
The Board is also self-insured for medical claims covering employees and their eligible dependents. As
required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
same health care coverage as is offered to active employees; however, the retirees are responsible for
payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees,
and by the Board. Premiums and contributions are determined by projected claims based on historical
and actuarial experience. The self insurance plan assumes all risk for claims, other than worker's
compensation, up to $250,000 per occurrence. For worker's compensation, the plan assumes all risk for
claims up to $350,000 per occurrence. The Board has purchased a reinsurance policy to cover claims in
excess of these limits. There were no claims in excess of these limits for the 2009, 2010, and 2011 fiscal
years.
285
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 20 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical — Continued
The claims liability of $7,877,000 reported at September 30, 2011, is based on the requirements of
generally accepted governmental accounting standards, which require that a liability for claims be
reported if information prior to the issuance of the financial statements, and the amount of the loss, can
be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and
recorded. Based on the actuary's report, $2,395,278 will be liquidated over the next twelve months.
Changes in the fund's claims liability amount during the current and prior three fiscal years are as
follows:
Claims
and Changes
in Estimates
$14,209,397
15,637,406
13,940,099
12,901,425
Claims
Payments
$ (13,873,397)
(14,657,406)
(13,916,099)
(12,923,425)
Balance
at Fiscal
Year End
$ 6,895,000
7,875,000
7,899,000
7,877,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2011, unrestricted net assets of $23,254,165 have been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2011, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2.5 percent.
286
Balance at
Fiscal Year
Be _ ig nning
2007-2008
$ 6,559,000
2008-2009
6,895,000
2009-2010
7,875,000
2010-2011
7,899,000
Claims
and Changes
in Estimates
$14,209,397
15,637,406
13,940,099
12,901,425
Claims
Payments
$ (13,873,397)
(14,657,406)
(13,916,099)
(12,923,425)
Balance
at Fiscal
Year End
$ 6,895,000
7,875,000
7,899,000
7,877,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2011, unrestricted net assets of $23,254,165 have been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2011, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2.5 percent.
286
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 21 - COMMITMENTS AND CONTINGENCIES
A. Litigation
Various suits and claims are currently pending against the Board. It is impossible for the Board to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The Board intends to vigorously
defend against these lawsuits and believes it has a good chance of prevailing on their merits.
The Board is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
Board.
B. Contracts and Other Commitments
The Board has various contracts and commitments outstanding at September 30, 2011. In the General
Fund, contracts are for custodial services and external auditing services. In the Special Revenue Funds,
contracts are for Sector 3 beach restoration, Old Dixie Highway bridge replacement, 43rd Avenue and
66th Avenue roadway expansions as well as a variety of other road paving and drainage projects. In the
Capital Projects Fund, contracts are for the expansion of the 800 Mhz radio system, Vero Beach Sports
Village quadrangle softball fields, 53rd Street roadway improvements, and several sidewalk and road
improvement projects throughout the County. In the Enterprise Funds, contracts are for the North
County Reverse Osmosis 3.0 MG reuse storage tank and pumping facility, Spoonbill Marsh Wetlands,
Utility software implementation and various other water and sewer projects.
A summary of these projects at September 30, 2011, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Internal Service
Total
Total
Contract Price
$ 1,089,709 $
38,297,381
15,977,924
7,031,103
Remaining
Total Paid as of Balance at
September 30, 2011 September 30, 2011
(908,091) $
(25,545,251)
(9,213,629)
(4,985,823)
109,200 (27,300)
181,618
12,752,130
6,764,295
2,045,280
81.900
$ 62,505,317 $ (40,680,094) $ 21,825,223
287
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 21 - COMMITMENTS AND CONTINGENCIES - Continued
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the Board. In the opinion of management, any such
adjustments would not be significant.
NOTE 22 — SUBSEQUENT EVENTS
On February 14, 2012 the Board approved beginning the process of early payoff of the remaining Land
Acquisition General Obligation Bonds, Series 2001. The Board approved payment of $3,620,000 from
the General Fund on July 1, 2012. These bonds will be called at a 1% redemption fee.
Harris, Cotherman,
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Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the special
purpose financial statements of the Board of County Commissioners (the "Board"), as of and for
the year ended September 30, 2011 and have issued our report thereon dated March 9, 2012. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Board's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Board's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Board's internal control over financial reporting.
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 financial statements will not be prevented or detected and corrected
on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
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Indian River County, Florida
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board's special purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of the Board of County Commissioners,
management, and the Auditor General of the State of Florida and is not intended to be and should
not be used by anyone other than these specified parties.
Vero Beach, Florida
March 9, 2012
me
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5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234.8484
Fax 772.234.8488
Management Letter
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the special purpose
financial statements of the Board of County Commissioners, as of and for the year ended September 30, 2011
and have issued our report thereon dated March 9, 2012.
We conducted our audit in accordance with United States generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States and OMB Circular A-133, Audits of States, Local Governments,
and Non -Profit Organizations. We have issued our Report on Internal Control over Financial Reporting and
on Compliance and Other Matters, Report on Compliance with Requirements that Could Have a Direct and
Material Effect on Each Major Federal Program and Major State Project and on Internal Control over
Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General,
and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated
March 9, 2012, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local government entity audits performed in the state of Florida. This letter
includes the following information, which is not included in the aforementioned auditors' reports or
schedules.
In accordance with the Rules of the Auditor General (Section 10.554(1)(i)1.), we have noted that findings
and recommendations made in the preceding annual financial audit appear to be appropriately resolved.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2.), the scope of our audit included a
review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, we determined that the Board of County Commissioners complied with Section
218.415, Florida Statutes,
The Rules of the Auditor General (Section 10.554(1)(i)3.) require that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have any
such recommendations.
The Rules of the Auditor General (Section 10.554(1)(i)4.) require that we address violations of provisions of
contracts and grant agreements or abuse that have occurred, or are likely to have occurred, that have an effect
on the financial statements that is less than material but more than inconsequential. In connection with our
audit, we did not have any such findings.
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The Honorable Board of County Commissioners
Indian River County, Florida
Page two
The Rules of the Auditor General (Section 10.554(1)(i)5.) provide that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on financial statement
amounts, considering both quantitative and qualitative factors: (1) violations of provisions of contracts or
grant agreements, fraud, illegal acts or abuse and (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
The Rules of the Auditor General (Section 10.554(1)(i)6.) require that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This disclosure has been
included in the notes to the financial statements.
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 management and others within the entity, the
Board of County Commissioners, the Auditor General of the State of Florida, and applicable federal and state
agencies, and is not intended to be and should not be used by anyone other than these specified parties.
�*OW X),AnW,Q�L� A a4#64-d�
Vero Beach, Florida
March 9, 2012
292
CLERK OF THE CIRCUIT COURT AND
COMPTROLLER
293
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Independent Auditors' Report on Special Purpose Financial Statements Prepared in Compliance
with a Regulatory Provision That Results in an Incomplete Presentation But one That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Jeffrey K. Barton
Clerk of the Circuit Court
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Clerk of the
Circuit Court (the "Clerk of the Circuit Court") as of and for the year ended September 30, 2011 as listed
in the table of contents. These financial statements are the responsibility of the Clerk of the Circuit
Court's management. Our responsibility is to express an opinion on the financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government AuditingStandards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements present the financial position of only
the Clerk of the Circuit Court at September 30, 2011 and the results of its operations for the year then
ended. These statements are not intended to be a complete presentation of the financial position of Indian
River County.
In our opinion, the accompanying fund financial statements present fairly, in all material respects, the
financial position of the Clerk of the Circuit Court as of September 30, 2011 and the results of its
operations for the year then ended in conformity with accounting principles generally accepted in the
United States of America.
In accordance with. Government Auditing Standards, we have also issued a report dated March 9, 2012 on
our consideration of the Clerk of the Circuit Court's internal control over financial reporting and on our
tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Clerk of the Circuit Court,
Indian River County, the Florida Auditor General, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
Vero�lorida
March 9 2012
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294
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Prepaid expenses
Due from other governments
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Other deposits held in escrow
Total liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Committed to:
Court operations
Total fund balances
Total liabilities and fund balances
General
$ 570,472 $
82,426
32,131
2,609
$ 687,638 $
Special Revenue
Total
Governmental
Funds
2,456,416 $ 3,026,888
85 82,511
902 33,033
- 2,609
2,457,403 $ 3,145,041
$ 7,787 $ 12,100 $ 19,887
352,241 - 352,241
245,464 - 245,464
605,492 12,100 617,592
32,131 902 33,033
50,015 2,383,255 2,433,270
- 61,146 61,146
82,146 2,445,303 2,527,449
$ 687,638 $ 2,457,403 $ 3,145,041
The accompanying notes are an integral part of the financial statements.
295
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners
Transfers to Board of County Commissioners
Transfer to other governments
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Total
Governmental
General Special Revenue Funds
$ 3,182,512 $ - $ 3,182,512
1,628,046 326,662 1,954,708
- 173,363 173,363
- 4,600 4,600
19,411 - 19,411
4,829,969 504,625 5,334,594
1,977,335
303,589
2,280,924
3,506,046
374,546
3,880,592
5,483,381
678,135
6,161,516
(653,412)
(173,510)
(826,922)
972,818
-
972,818
(309,737)
-
(309,737)
(181,021)
-
(181,021)
482,060
-
482,060
(171,352)
(173,510)
(344,862)
253,498
2,618,813
2,872,311
$ 82,146 $
2,445,303 $
2,527,449
The accompanying notes are an integral part of the financial statements.
296
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from other funds
Transfers from Board
of County Commissioners
Transfers to Board
of County Commissioners
Transfers to other governments
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance with
253,498
$ 82,146
The accompanying notes are an integral part of the financial statements.
297
Final Budget
Budgeted Amount
Positive
Original
Final
Actual
(Negative)
$ 3,338,148 $
3,336,047 $
3,182,512
$ (153,535)
904,000
1,440,400
1,628,046
187,646
-
-
19,411
19,411
4,242,148
4,776,447
4,829,969
53,522
1,691,638
2,212,741
1,977,335
235,406
3,663,235
3,676,431
3,506,046
170,385
5,354,873
5,889,172
5,483,381
405,791
(1,112,725)
(1,112,725)
(653,412)
459,313
139,907
139,907
-
(139,907)
972,818
972,818
972,818
-
-
-
(309,737)
(309,737)
-
-
(181,021)
(181,021)
1,112,725
1,112,725
482,060
(630,665)
$ - $
-
(171,352)
$ (171,352)
253,498
$ 82,146
The accompanying notes are an integral part of the financial statements.
297
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Assets
Agency Fund
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Total assets
LIABILITIES
Accounts payable
Due to other governments
Escrow deposits
Total liabilities
$ 2,987,452
697
$ 2,988,149
$ 2,850
933,269
2,052,030
$ 2,988,149
The accompanying notes are an integral part of the financial statements.
298
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Clerk of the Circuit Court and Comptroller (Clerk) is a County agency and a local governmental
entity pursuant to Article VIII, Section 1(d) of the Constitution of the State of Florida. For financial
statement and reporting purposes, the Clerk does not meet the definition of a legally separate
organization and is not considered to be a component unit. The Clerk is considered to be a part of the
primary government of Indian River County.
As part of the 2009 Legislative changes, the Clerk's court -related functions are now funded through
general revenue appropriations and by trust funds supported by filing fees, service charges, fines, and
court costs assessed to parties using the court system. Under 2009-204, Laws of Florida, revenue
collected by the Clerk is remitted to the Florida Department of Revenue and deposited in the Clerk of
Court Trust Fund within the Justice Administrative Commission. The fiscal year for court operations is
July 1 to June 30 and the fiscal year for non -court operations is October 1 to September 30.
The financial statements contained herein represent the financial transactions of the Clerk of the Circuit
Court and Comptroller only. The format of the Clerk's statements has been prepared in accordance with
the presentation requirements of GASB 34 for fund financial statements.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Description of Funds
For reporting purposes, the accounting records are organized into the following two fund types:
governmental funds and a fiduciary fund.
Governmental Funds
General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and
expenditures applicable to the general operations of the Clerk which are not accounted for in another
fund. All financial resources, which are not accounted for and reported in another fund, are recorded in
the General Fund. The governmental fund measurement focus is based upon determination of financial
position and changes in financial position (sources, uses and balances of financial resources) rather than
upon net income determination.
Special Revenue Fund — The Special Revenue Fund accounts for the proceeds from recording fees to be
used for modernizing the Clerk's public records systems, subsidizing court -related operational needs and
program enhancements, and adding access to public records (by charging a computer usage fee).
Fiduciary Fund
Agency Fund — The Agency Fund is used to account for assets held by the Clerk in a trustee capacity or
as an agent. These funds cannot be used to support the Clerk's own programs.
299
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. Under the
modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are
recorded when received in cash or when they are considered both measurable and available. The Clerk
only considers revenue to be available if collected within the current fiscal year, except for Title IV -D
grant revenue. This grant revenue is subject to accrual and has been recognized as revenue of the current
fiscal period. Revenues collected in excess of expenditures are not considered earned and are reflected
as liabilities. The fiduciary fund is accounted for on the accrual basis.
C. Budgetary Requirements
State statutes require the Clerk to prepare his budget in two parts: the budget relating to the State court
system, including recording; and the budget relating to the requirements of the Clerk as Clerk to the
Board of County Commissioners, County auditor, and custodian of all County funds and other County -
related duties. The budget relating to the State court system, including recording, is prepared by the
Clerk and submitted to the Florida Clerks of Court Operations Corporation (CCOC) prior to October 1
of each year. The budget relating to the requirements of the Clerk as Clerk to the Board of County
Commissioners is prepared prior to May 1 and is reviewed, modified if required, and approved by the
Board by October 1. Both budgets are adopted on a basis consistent with generally accepted accounting
principles.
The budget legally adopted by the Clerk must be balanced; that is, the total of estimated receipts,
including funding from the Board, shall equal the total estimated expenditures. Management is
authorized to transfer budgeted amounts between objects and departments in any fund as long as
management does not exceed the total appropriations of a fund.
D. Cash and Cash Equivalents
Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety
days or less when purchased.
E. Prepaid Expenses
This account represents prepayments for services that will be used in future periods. The Clerk's policy
is to record the expenditure for the services when they are used rather than when the cash is disbursed.
F. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund
financial statements. Tangible personal property used by the Clerk in operations is reported in the
financial statements of the County. Refer to the County -wide note on capital assets for capitalization
threshold, depreciation methodology and useful lives.
W 11'
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G. Compensated Absences
The Clerk accrues a liability for employees' rights to receive compensation for future absences when
certain conditions are met. The Clerk does not, nor is he legally required to, accumulate expendable
available financial resources to liquidate this obligation. Accordingly, the liability for compensated
absences is not reported in the Clerk financial statements. Additional information on the liability is
reflected in subsequent Note 6.
H. Transfer In
The Clerk budgeted one transfer in the amount of $139,907 from the public records modernization fund
to subsidize court technology expenses. At year end, this amount was not needed due to an unexpected
receipt of prior years' reimbursements from the federal government.
The non -court operations (finance function and board meeting recordings) were funded by the Board of
County Commissioners in the amount of $972,818.
I. Transfer Out
In accordance with Florida Statutes, all non -court -related revenues in excess of expenditures as of year-
end are owed to the Board of County Commissioners before November 1. On October 28, 2011,
$309,737 was returned to the Board as "excess fees". This transfer is also reported as due to other
governments on the balance sheet.
With the change in fiscal year for court -related operations from September 30 to June 30, excess
revenues over expenditures at June 30, in the amount of $181,021, were submitted to the CCOC through
the Department of Revenue for deposit to the Clerk of Court Trust Fund.
J. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. The Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide Note on Fund Balance.
Per 2009 Florida Senate Bills 1718 and 2108, excess fees for the court related function are determined
on June 30 of each year to coincide with the State fiscal year. Court -related revenues in excess of
expenditures from July 1, 2011 through September 30, 2011 were $82,146; this amount is presented as
fund balance of the General Fund at September 30, 2011.
301
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND CASH EQUIVALENTS
A. Deposits
At September 30, 2011, the carrying value of the Clerk's deposits was $2,255,994, and the bank balance
was $2,611,887. All deposits with financial institutions were 100% insured by federal depository
insurance or by collateral provided by qualified public depositories to the State Treasurer in accordance
with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits Act.
The Clerk's office follows the above state law (governing custodial credit risk) for cash deposits. Refer
to the County -wide Note 4, Cash and Cash Equivalents, for definition of custodial credit risk.
B. Investments
The Clerk participated in the Local Government Surplus Funds Trust Fund, a money market fund
classified as a "20 like fund" using the SEC investment requirements for 2a7 funds. The fund was
established by Florida Statute 218.405 and is administered by the Florida State Board of Administration
(SBA). In November 2007, this trust fund was frozen due to an unprecedented run on withdrawals and
lack of market liquidity. The SBA subsequently established two separate pools: Pool A (now known as
Florida PRIME Fund) and Pool B (now known as Fund B). Pool B securities included asset-backed
commercial paper which was subject to sub -prime mortgage risk. As these Fund B assets are liquidated,
funds are remitted to participants. At September 30, 2011, the SBA determined a negative fair market
value adjustment of 24.32% was needed for the Fund B portfolio balance. At year end, the cash balance
in Fund B was $24,370 with a fair market adjustment of $5,926; consequently, the net investment in
Fund B is reported at $18,444.
The Clerk also participated in the Florida Trust Day to Day Fund, part of the Florida Local Government
Investment Trust Fund. The Day to Day fund is a money market product of various securities with an
average maturity of 50 days. It was established by Florida Statute 163.01, is administered by the Florida
Association of Court Clerks, and is marked to market daily. At year end, the Clerk maintained a balance
of $3,738,002 in this trust fund.
The Clerk's office elected not to adopt a formal investment policy and selected the alternative
investment guidelines as provided by Florida Statutes subsection 17, 218.415 which specifically
permitted these State authorized pools. This statute, the County -wide investment policy, and credit risks
are explained in Note 4 of the County -wide financial statements.
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Clerk's employees participate in the Florida Retirement System (FRS), a cost-
sharing, multiple -employer public employee retirement system, administered by the Florida Department
of Management Services. Effective July 1, 2011, the FRS became a contributory plan for all members,
except DROP participants, whereby members contribute 3% and employers pay a rate based upon each
member's employment class (regular class 4.91%, senior class 6.27%, and elected official class
11.14%).
302
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 3 — PENSION PLAN - Continued
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age. Under the Pension Plan, early retirement is available before reaching
normal retirement age and will be subject to an early-retirement reduction of 5% for each year your age
at retirement is under your normal retirement age. For those employees who elect participation in the
Investment Plan rather than the Pension Plan, vesting occurs after one year of service. Participants have
access to the full value of their vested account balance when they leave FRS employment, regardless of
age. These participants receive a defined contribution for self-direction in an investment product with a
third parry administrator selected by the State Board of Administration.
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
of pay, membership class and the payment option selected at retirement. For further information
concerning the Florida Retirement System and contribution rates, please read County -wide Note 16,
Pension Plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2009, 2010 and 2011, were
equal to 10.17%, 10.62%, and 9.92% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2009, 2010, and 2011 were $432,578, $375,894, and $371,781
respectively. These amounts are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $23,576.
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust (IRCOT). The
Clerk's 2011 annual required contribution of $133,800 was funded by the Board of County
Commissioners in the amount of $21,014; non -court revenue in the amount of $20,279; court -related
State expenditures in the amount of $91,006; and the public modernization trust fund in the amount of
$1,501. This contribution was considered part of a total contribution determined by the IRCOT actuary.
Further information on the IRCOT can be found in the County -wide financial statements and in the
County notes.
NOTE 5 — RISK MANAGEMENT
Indian River County maintains a risk management program that provides for coverage of risks of loss
related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees,
natural disasters, and medical and life insurance coverage for employees and their eligible dependents.
Various excess catastrophe insurance policies with a commercial carrier are also in force for claims
exceeding the amount chargeable against the Self-insurance Fund. The Clerk participated in the
County's self-insurance program during fiscal year 2011 at an annual cost of approximately $716,799.
Further details of this self-insurance program are discussed in the County -wide financial statements and
County notes.
303
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 6 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2011:
Beginning Ending
Balance Balance
10/01/10 Additions Deletions 9/30/11
Accrued Compensated Absences 247 289 &339,516 $305,657 $281,148
Of the $281,148 liability for accrued compensated absences, management estimates that $50,000 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Clerk since they are not payable from available spendable resources. They are reported in the
financial statements of the County.
W
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants -Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772-234.8484
Fax 772-234-8488
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Jeffery K. Barton
Clerk of the Circuit Court
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Clerk of the Circuit Court, as of and for the year ended September 30, 2011 and issued
our report thereon dated March 9, 2012. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
Management of the Clerk of the Circuit Court is responsible for establishing and maintaining effective
internal control over financial reporting. In planning and performing our audit, we considered the Clerk
of the Circuit Court's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the Clerk of the Circuit Court's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Clerk of the
Circuit Court's internal control over financial reporting.
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 financial statements will not be prevented or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as
defined above.
"Providing Vision and Dwection to our Chen&'
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Harms, Cothertnan,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Jeffery K. Barton
Clerk of the Circuit Court
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk of the Circuit Court's financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Uditing Standards.
This report is intended solely for the information and use of management, the Clerk of the Circuit Court,
Indian River County, others within the entity, the Florida Auditor General, and applicable federal and
state agencies, and is not intended to be and should not be used by anyone other than these specified
parties.
4��, ( o&XVVW J4"W, fs ";, " aQ�
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Vero Beach, Florida
March 9, 2012
306
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Management Letter
The Honorable Jeffrey K. Barton
Clerk of the Circuit Court
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Clerk of the Circuit Court, as of and for the year ended September 30, 2011 and have
issued our report thereon dated March 9, 2012.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. We have issued our Report on Internal Control
over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is
dated March 9, 2012, and should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental entity audits performed in the State of Florida. This
letter includes the following information which is not included in the aforementioned 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 recommendations made in the preceding annual financial audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Clerk of the Circuit Court, Indian River County, Florida, complied
with Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material, but more than inconsequential. In connection
with our audit, we did not have any such findings.
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Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Jeffrey K. Barton
Clerk of the Circuit Court
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that have an inconsequential effect on financial statements,
considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant
agreements, or fraud, illegal acts, or abuse and, (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is disclosed
in the notes to the financial statements.
Section 10.554(1)(i)8., Rules of the Auditor General, requires a statement as to whether or not the Clerk
of Courts complied with Sections 28.35 and 28.36, Florida Statutes. In connection with our audit, we
determined that the Clerk complied with such requirements.
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 management, the Clerk of the Circuit
Court, Indian River County, the Florida Auditor General, and applicable federal and state agencies, and is
not intended to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 9, 2012
s1'
PROPERTY APPRAISER
309
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Independent Auditors' Report on Special Purpose Financial Statements Prepared in Compliance
with a Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable David C. Nolte
Property Appraiser
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Property
Appraiser (the "Property Appraiser") as of and for the year ended September 30, 2011 as listed in the
table of contents. These financial statements are the responsibility of the Property Appraiser's
management. Our responsibility is to express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements present the financial position of only
the Property Appraiser at September 30, 2011 and the results of its operations for the year then ended.
These statements are not intended to be a complete presentation of the financial position of Indian River
County.
In our opinion, the accompanying fund financial statements present fairly, in all material respects, the
financial position of the Property Appraiser as of September 30, 2011 and the results of its operations for
the year then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued a report dated March 9, 2012 on
our consideration of the Property Appraiser's internal control over financial reporting and on our tests of
compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Property Appraiser, Indian
River County, the Florida Auditor General, and applicable federal and state agencies, and is not intended
to be and should not be used by anyone other than these specified parties.
Vero Mach, Florida
March 9, 2012
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
310
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Deposits
Total liabilities
Fund Balances:
Unassigned
Total fund balances
Total liabilities and fund balances
$ 89,498
9,227
$ 98,725
$ 11,618
74,005
13,102
98,725
$ 98,725
The accompanying notes are an integral part of the financial statements.
311
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING USES
Excess fees to Board of
County Commissioners
Excess fees to other governments
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Indian River County, Florida
Property Appraiser
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
Budgeted Amount
Original Final
Variance with
Final Budget
Positive
Actual (Negative)
$ 2,970,768 $ 2,970,768 $ 2,978,836 $ 8,068
- - 1,417 1,417
2,970,768 2,970,768 2,980,253 9,485
2,970,768 2,970,768 2,906,248 64,520
2,970,768 2,970,768 2,906,248 64,520
74,005 74,005
(66,915) (66,915)
(7,090) (7,090)
(74,005) (74,005)
The accompanying notes are an integral part of the financial statements.
312
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Property Appraiser is a County agency and a local governmental entity pursuant to Article VIII,
Section 1(d) of the Constitution of the State of Florida. For financial statement and reporting purposes,
the Property Appraiser does not meet the definition of a legally separate organization and is not
considered to be a component unit. The Property Appraiser is considered to be a part of the primary
government of Indian River County. The financial statements contained herein represent the financial
transactions of the Property Appraiser only. The format of the Property Appraiser's statements has been
prepared in accordance with the presentation requirements of GASB 34 for fund financial statements.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Description of Funds
For reporting purposes, the accounting records are organized on the basis of governmental funds.
Governmental Fund
General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and
expenditures applicable to the general operations of the Property Appraiser. All financial resources,
which are not accounted for and reported in another fund, are recorded in the General Fund. The
governmental fund measurement focus is based upon determination of financial position and changes in
financial position (sources, uses and balances of financial resources) rather than upon net income
determination.
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. Under the
modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are
recorded when received in cash or when they are considered both measurable and available. Revenues
collected in excess of expenditures are not considered earned and are reflected as liabilities.
C. Budgetary Requirements
State statutes require the Property Appraiser to prepare an annual budget, which clearly reflects the
revenues available to his office and the functions for which money is to be expended. The budgeted
revenues and expenditures are subject to the review and approval of the Department of Revenue.
Management is authorized to transfer budgeted amounts between objects and departments as long as
management does not exceed the total appropriations of a fund. Department of Revenue approval is only
required when unanticipated revenues are received that management wishes to have appropriated,
thereby increasing the total appropriations. The budget is prepared on a basis consistent with generally
accepted accounting principles.
313
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund
financial statements. Tangible personal property used by the Property Appraiser in operations is reported
in the financial statements of the County. Refer to the County -wide note on capital assets for
capitalization threshold, depreciation methodology and useful lives.
E. Compensated Absences
The Property Appraiser accrues a liability for employees' rights to receive compensation for future
absences when certain conditions are met. The Property Appraiser does not, nor is he legally required to,
accumulate expendable available financial resources to liquidate this obligation. Accordingly, the
liability for compensated absences is not reported on the Property Appraiser's financial statements.
Additional information on the liability is reflected in subsequent Note 6.
F. Transfer Out
In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to
the Board of County Commissioners and other governments. These "excess fees" totaled $74,005 and
are reported as transfers out. These transfers are also reflected as due to other governments on the
balance sheet.
G. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide Note on Fund Balance.
NOTE 2 - CASH
Deposits
At September 30, 2011, the carrying amount of the Property Appraiser's deposits was $89,428 and the
bank balance was $156,396. All deposits with financial institutions were 100% insured by federal
depository insurance or by collateral provided by qualified public depositories to the State Treasurer in
accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits
Act. The Property Appraiser adopted the Board of County Commissioners' investment policy. This
policy requires the Property Appraiser's office to follow the above state law (governing custodial credit
risk) for cash deposits. Refer to the County -wide Note 4, Cash and Cash Equivalents, for definition of
custodial credit risk.
314
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Property Appraiser's employees participate in the Florida Retirement System
(FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the
Florida Department of Management Services. Effective July 1, 2011, the FRS became a contributory
plan for all members, except DROP participants, whereby members contribute 3% and employers pay a
rate based upon each member's employment class (regular class 4.91%, senior class 6.27%, and elected
official class 11.14%).
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age. Under the Pension Plan, early retirement is available before reaching
normal retirement age and will be subject to an early-retirement reduction of 5% for each year your age
at retirement is under your normal retirement age. For those employees who elect participation in the
Investment Plan rather than the Pension Plan, vesting occurs after one year of service. Participants have
access to the full value of their vested account balance when they leave FRS employment, regardless of
age. These participants receive a defined contribution for self-direction in an investment product with a
third party administrator selected by the State Board of Administration.
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
of pay, membership class and the payment option selected at retirement. For further information
concerning the Florida Retirement System and contribution rates, please read County -wide Note 15,
Pension Plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2009, 2010, and 2011, were
equal to 10.42%, 10.73%, and 10.02% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2009, 2010, 2011 were $220,468, $224,920, and $195,025
respectively. These amounts are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $13,320.
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Property Appraiser participated in the Indian River County Other Post Employment Benefits Trust
(IRCOT). The Property Appraiser's 2011 annual required contribution of $54,036 was funded by the
Board of County Commissioners as part of a total contribution determined by the IRCOT actuary.
Further information on the IRCOT can be found in the County -wide financial statements and in the
County notes.
315
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 5 — RISK MANAGEMENT
Indian River County maintains a risk management program that provides for coverage of risks of loss
related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees,
natural disasters, and medical and life insurance coverage for employees and their eligible dependents.
Various excess catastrophe insurance policies with a commercial carrier are also in force for claims
exceeding the amount chargeable against the Self-insurance Fund. The Property Appraiser participated
in the County's self-insurance program during fiscal year 2011 at an annual cost of approximately
$297,542. Further details on the self-insurance program are discussed in the County -wide financial
statements and County notes.
NOTE 6 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
A summary of changes in long-term liabilities is as follows:
Beginning
Balance
10/01/10
Accrued Compensated Absences 84 421
Ending
Balance
Additions Deletions 09/30/11
&!U,634 $114,266 115,789
Of the $75,789 liability for accrued compensated absences, management estimates that $20,000 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Property Appraiser since they are not payable from available spendable resources. They are reported
in the financial statements of the County.
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Litigation
Various suits and claims are currently pending against the Property Appraiser. It is impossible for the
Property Appraiser to accurately quantify the exposure involved given the jury's latitude in assessing
compensatory and punitive damages, and the court's latitude in awarding attorney's fees. The Property
Appraiser intends to vigorously defend against these lawsuits and believes he has a good chance of
prevailing on their merits. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of these lawsuits will not have a material adverse effect on the financial position of
the Property Appraiser.
316
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772,234.8484
Fax 772.234.8488
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable David C. Nolte
Property Appraiser
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Property Appraiser, as of and for the year ended September 30, 2011 and issued our
report thereon dated March 9, 2012. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
Management of the Property Appraiser is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the Property
Appraiser's internal control over financial reporting as a basis for designing our auditing procedures for
the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Property Appraiser's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal
control over financial reporting.
A 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 financial statements will not be prevented or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as
defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
317
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable David C. Nolte
Property Appraiser
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Property Appraiser, Indian
River County, others within the entity, the Florida Auditor General, and applicable federal and state
agencies, and is not intended to be andshouldnot be used by anyone other than these specified parties.
Vero Ifeach, Florida
March 9, 2012
318
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772-234.8488
Management Letter
The Honorable David C. Nolte
Property Appraiser
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Property Appraiser, as of and for the year ended September 30, 2011 and have issued
our report thereon dated March 9, 2012.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. We have issued our Report on Internal Control
over Financial Reporting and on Compliance with Other Matters. Disclosures in that report, which is
dated March 9, 2012, and should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental entity audits performed in the State of Florida. This
letter includes the following information which is not included in the aforementioned report:
Section 10.554(l)(i)l., 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 recommendations made in the preceding annual financial audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Property Appraiser, Indian River County, Florida, complied with
Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material, but more than inconsequential. In connection
with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
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319
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable David C. Nolte
Property Appraiser
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that have an inconsequential effect on financial statements,
considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant
agreements, or fraud, illegal acts, or abuse and, (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is disclosed
in the notes to the financial statements.
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 management, the Property Appraiser,
Indian River County, the Florida Auditor General, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 9, 2012
320
SHERIFF
321
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Independent Auditors' Report on Special Purpose Financial Statements Prepared in Compliance
with a Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Sheriff (the
"Sheriff') as of and for the year ended September 30, 2011 as listed in the table of contents. These
financial statements are the responsibility of the Sheriff's management. Our responsibility is to express
an opinion on the financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements present the financial position of only
the Sheriff at September 30, 2011 and the results of its operations for the year then ended. These
statements are not intended to be a complete presentation of the financial position of Indian River County.
In our opinion, the accompanying fund financial statements present fairly, in all material respects, the
financial position of the Sheriff as of September 30, 2011 and the results of its operations for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated March 9, 2012 on
our consideration of the Sheriffs internal control over financial reporting and on our tests of compliance
with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Sheriff, Indian River
County, the Florida Auditor General, and applicable federal and state agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
",� ,9�°e
Vero B ach, Florida
March 9, 2012
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
322
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2011
ASSETS
Cash and cash equivalents
Accounts receivable - net
Due from other governments
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Unearned revenue
Total liabilities
Fund Balances:
Restricted for:
Law enforcement/public safety
Total fund balances
Total liabilities and fund balances
The accompanying notes are an integral part of the financial statements.
323
Total
Special
Governmental
General
Revenue
Funds
$ 1,394,825
$
2,053,592
$
3,448,417
77,893
-
77,893
-
7,584
7,584
$ 1,472,718
$
2,061,176
$
3,533,894
$ 1,464,833
$
33,796
$
1,498,629
7,885
-
7,885
-
69
69
1,472,718
33,865
1,506,583
-
2,027,311
2,027,311
-
2,027,311
2,027,311
$ 1,472,718
$
2,061,176
$
3,533,894
The accompanying notes are an integral part of the financial statements.
323
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners
Transfers to Board of County Commissioners
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
The accompanying notes are an integral part of the financial statements.
324
Total
Special
Governmental
General
Revenue
Funds
$ - $
72,998
$ 72,998
-
298,258
298,258
-
204,053
204,053
-
3,495
3,495
33,250
-
33,250
33,250
578,804
612,054
37,173,128
653,732
37,826,860
1,515,473
38,717
1,554,190
38,688,601
692,449
39,381,050
(38,655,351)
(113,645)
(38,768,996)
38,660,685
70,665
38,731,350
(5,334)
-
(5,334)
38,655,351
70,665
38,726,016
-
(42,980)
(42,980)
-
2,070,291
2,070,291
$ - $
2,027,311
$ 2,027,311
The accompanying notes are an integral part of the financial statements.
324
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
REVENUES
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners
Transfers to Board
of County Commissioners
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amount
Original Final Actual
$ - $ 33,250 $ 33,250 $
33,250 33,250
Variance with
Final Budget
Positive
(Negative)
38,380,893 37,178,452 37,173,128 5,324
1,686,721 1,515,483 1,515,473 10
40,067,614 38,693,935 38,688,601 5,334
(40,067,614) (38,660,685) (38,655,351) 5,334
40,067,614 38,660,685 38,660,685 -
- - (5,334) (5,334)
40,067,614 38,660,685 38,655,351 (5,334)
The accompanying notes are an integral part of the fmancial statements.
325
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Assets
Agency Fund
September 30, 2011
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Escrow deposits
Total liabilities
88,468
88,468
ME,
88,468
The accompanying notes are an integral part of the financial statements.
326
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Sheriff is a County agency and a local governmental entity pursuant to Article VIII, Section 1(d) of
the Constitution of the State of Florida. For financial statement and reporting purposes, the Sheriff does
not meet the definition of a legally separate organization and is not considered to be a component unit.
The Sheriff is considered to be a part of the primary government of Indian River County. The financial
statements contained herein represent the financial transactions of the Sheriff only. The format of the
Sheriff's statements has been prepared in accordance with the presentation requirements of GASB 34 for
fund financial statements.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Description of Funds
For reporting purposes, the accounting records are organized into the following two fund types:
governmental funds and a fiduciary fund.
Governmental Funds
General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and
expenditures applicable to the general operations of the Sheriff, which are not accounted for in another
fund. All financial resources, which are not accounted for and reported in another fund, are recorded in
the General Fund. The governmental fund measurement focus is based upon determination of financial
position and changes in financial position (sources, uses and balances of financial resources) rather than
upon net income determination.
Special Revenue Fund — The Special Revenue Fund accounts for the proceeds of specific revenue
sources that are legally restricted or committed for public safety such as police education, special
purpose equipment, jail commissary, and special law enforcement activities.
Fiduciary Fund
Agency Fund — The Agency Fund is used to account for assets held by the Sheriff in a trustee capacity
or as an agent. These funds cannot be used to support the Sheriff's own programs.
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. The fiduciary
fund is reported on an accrual basis. Under the modified accrual basis, expenditures are recorded at the
time liabilities are incurred. Revenues are recorded when received in cash or when they are considered
both measurable and available. Revenues collected in excess of expenditures are not considered earned
and are reflected as liabilities.
327
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Budgetary Requirements
State statutes require the Sheriff to submit a proposed budget to the Board of County Commissioners by
May 1 of each year. The budget reflects the estimated amounts of all proposed expenditures for
operating and equipping the Sheriff's office and jail. Capital improvements for these buildings are
funded by the Board. The budget is prepared on a basis consistent with generally accepted accounting
principles. After review and approval of the budget by the Board, the Sheriff is authorized to transfer
budgeted amounts between objects and departments as long as he does not exceed the total
appropriations approved by the Board. Increases in the total budget are subject to the review and
approval of the Board. The budgeted revenues and expenditures in the accompanying financial
statements reflect all amendments approved by the Board of County Commissioners.
D. Compensated Absences
The Sheriff accrues a liability for employees' rights to receive compensation for future absences when
certain conditions are met. The Sheriff does not, nor is he legally required to, accumulate expendable
available financial resources to liquidate this obligation. Accordingly, the liability for compensated
absences is not reported on the Sheriff's financial statements. Additional information on the liability is
reflected in subsequent Note 7.
E. Transfer Out
In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to
the Board of County Commissioners. These "excess fees" totaled $5,334 and are reported as a transfer to
the Board of County Commissioners at year end.
F. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide Note on Fund Balance.
328
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH
Deposits
At September 30, 2011, the carrying amount of the Sheriff's deposits was $3,536,885, and the bank
balance was $4,947,317. All deposits with financial institutions were 100% insured by federal
depository insurance or by collateral provided by qualified public depositories to the State Treasurer in
accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits
Act.
The Sheriff's office elected not to adopt a formal investment policy and selects the alternative
investment guidelines as provided by Florida Statutes subsection 17, 218.415. Refer to the County -wide
Note 4, Cash and Cash Equivalents, for the definition of custodial credit risk.
NOTE 3 — CAPITAL ASSETS
Tangible personal property used by the Sheriff in operations is reported in the financial statements of the
County. State law requires the Sheriff to account for all tangible property used by the Sheriff. A
summary of changes in capital assets is as follows:
Beginning Ending
Balance Balance
10/01/10 Additions Deletions 09/30/11
Tangible Personal Property 17,918,288 1,658,135 $555,003 19.021,420
Refer to the County -wide Note on Capital Assets for capitalization threshold, depreciation methodology
and useful lives.
329
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 — PENSION PLAN
Florida Retirement System
Plan Description: The Sheriff's employees participate in the Florida Retirement System (FRS), a cost-
sharing, multiple -employer public employee retirement system, administered by the Florida Department
of Management Services. Effective July 1, 2011, the FRS became a contributory plan for all members,
except DROP participants, whereby members contribute 3% and employers pay a rate based upon each
member's employment class (regular class 4.91%, senior class 6.27%, and elected official class
11.14%).
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age. Under the Pension Plan, early retirement is available before reaching
normal retirement age and will be subject to an early-retirement reduction of 5% for each year your age
at retirement is under your normal retirement age. For those employees who elect participation in the
Investment Plan rather than the Pension Plan, vesting occurs after one year of service. Participants have
access to the full value of their vested account balance when they leave FRS employment, regardless of
age. These participants receive a defined contribution for self-direction in an investment product with a
third party administrator selected by the State Board of Administration.
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
of pay, membership class and the payment option selected at retirement. For further information
concerning the Florida Retirement System and contribution rates, please read County -wide Note 16,
Pension Plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2009, 2010, and 2011 were
equal to 17.27%, 18.29%, and 17.87% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2009, 2010, 2011 were $4,221,209, $4,294,161, and $4,048,292
respectively. These amounts are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $146,774.
NOTE 5 — OTHER POSTEMPLOYMENT BENEFITS
The Sheriff participated in the Indian River County Other Post Employment Benefits Trust (IRCOT).
The Sheriff's 2011 annual required contribution of $1,101,833 was funded by the Board of County
Commissioners as part of a total contribution determined by the IRCOT actuary. Further information on
the IRCOT can be found in the County -wide financial statements and County notes.
eff
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 6 — RISK MANAGEMENT
Indian River County maintains a risk management program that provides for coverage of risks of loss
related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees,
natural disasters, and medical and life insurance coverage for employees and their eligible dependents.
Various excess catastrophe insurance policies with a commercial carrier are also in force for claims
exceeding the amount chargeable against the Self-insurance Fund. The Sheriff participated in the
County's self-insurance program during fiscal year 2011 at an annual cost of approximately $3,484,153.
Further details on this self-insurance program are disclosed in the County -wide financial statements and
County notes.
NOTE 7 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2011:
Beginning Ending
Balance Balance
10/01/10 Additions Deletions 09/30/11
Accrued Compensated Absences5.112.867 $4,510,527 $3,568,978 $6,054,416
Of the $6,054,416 liability for accrued compensated absences, management estimates that $3,600,000
will be due and payable within one year. The long-term liabilities are not reported in the financial
statements of the Sheriff since they are not payable from available spendable resources. They are
reported in the financial statements of the County.
NOTE 8 — OPERATING LEASES
The Sheriff has entered into noncancelable operating leases as lessee. Lease expenditures totaled
$92,159 for the year ended September 30, 2011.
The following is a schedule by years of minimum future rentals to be paid by the Sheriff for
noncancelable operating leases as of September 30:
Year
Amount
2012
$ 100,584
2013
74,528
2014
23,873
2015
5,086
Total Future Minimum Lease Payments
&204,,07 1
331
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 9 — COMMITMENTS AND CONTINGENCIES
Various suits and claims are currently pending against the Sheriff. It is impossible for the Sheriff to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The Sheriff intends to vigorously
defend against these lawsuits and believes he has a good chance of prevailing on their merits. In the
opinion of management and based on the advice of legal counsel, the ultimate disposition of these
lawsuits will not have a material adverse effect on the financial position of the Sheriff.
332
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772-2348488
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Sheriff, as of and for the year ended September 30, 2011 and issued our report thereon
dated March 9, 2012. We conducted our audit in accordance with auditing standards generally accepted
in the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of the Sheriff is responsible for establishing and maintaining effective internal control over
financial reporting. In planning and performing our audit, we considered the Sheriff's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the Sheriffs internal control over financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the Sheriff's internal control over financial reporting.
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 financial statements will not be prevented or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as
defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
333
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Deryl Loar
Sheriff
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriffs financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Sheriff, Indian River
County, others within the entity, the Florida Auditor General, and applicable federal and state agencies,
and is not intended to be and should not be used by anyone other than these specified parties.
eCv W &c4)
Vero Beach, Florida
March 9, 2012
334
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Management Letter
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida,
statements of the Sheriff, as of and for the year ended September 30, 2011
thereon dated March 9, 2012.
including the fund financial
and have issued our report
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. We have issued our Report on Internal Control
over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is
dated March 9, 2012, and should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental entity audits performed in the State of Florida. This letter
includes the following information, which is not included in the aforementioned report:
Section 10.554(1)(i)l., 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 recommendations made in the preceding annual financial audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Sheriff, Indian River County, Florida, complied with Section
218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material but more than inconsequential. In connection
with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms
Private Companies Practice Section
335
Member FICPA
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants • Chartered
The Honorable Deryl Loar
Sheriff
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that have an inconsequential effect on financial statements,
considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant
agreements, or fraud, illegal acts, or abuse and, (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is disclosed
in the notes to the financial statements.
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 management, the Sheriff, Indian River
County, the Florida Auditor General, and applicable federal and state agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
Vero B ach, Florida
March 9, 2012
336
SUPERVISOR OF ELECTIONS
337
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants, Chartered
5070 North Highway AIA, Suite 250
Vero Beach; FL 32963
Tel 772.234.8484
Fax 772.234.8488
Independent Auditors' Report on Special Purpose Financial Statements Prepared in Compliance
with a Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Supervisor
of Elections (the "Supervisor of Elections") as of and for the year ended September 30, 2011 as listed in
the table of contents. These financial statements are the responsibility of the Supervisor of Elections'
management. Our responsibility is to express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements present the financial position of only
the Supervisor of Elections at September 30, 2011 and the results of its operations for the year then ended.
These statements are not intended to be a complete presentation of the financial position of Indian River
County.
In our opinion, the accompanying fund financial statements present fairly, in all material respects, the
financial position of the Supervisor of Elections as of September 30, 2011 and the results of its operations
for the year then ended in conformity with accounting principles generally accepted in the United States
of America.
In accordance with Government Auditing Standards, we have also issued a report dated March 9, 2012 on
our consideration of the Supervisor of Elections' internal control over financial reporting and on our tests
of compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Supervisor of Elections,
Indian River County, the Florida Auditor General, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
a
Vero B ach, Florida
March 9, 2012
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
338
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2011
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Voting/elections activities
Unassigned
Total fund balances
Total liabilities and fund balances
5,585
7,744
(5,585) -
- 7,744
$ 59,050 $ 25,929 $
The accompanying notes are an integral part of the financial statements.
339
5,585
7,744
(5,585)
7,744
84,979
Total
Special
Governmental
General
Revenue
Funds
ASSETS
Cash and cash equivalents $
53,109 $
25,929
$ 79,038
Accounts receivable - net
356
-
356
Prepaid expenses
5,585
-
5,585
Total assets $
59,050 $
25,929
$ 84,979
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $
17,923 $
-
$ 17,923
Due to other governments
41,127
-
41,127
Unearned revenue
-
18,185
18,185
Total liabilities
59,050
18,185
77,235
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Voting/elections activities
Unassigned
Total fund balances
Total liabilities and fund balances
5,585
7,744
(5,585) -
- 7,744
$ 59,050 $ 25,929 $
The accompanying notes are an integral part of the financial statements.
339
5,585
7,744
(5,585)
7,744
84,979
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2011
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners
Transfer from other funds
Transfers to Board of County Commissioners
Transfer to other funds
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
The accompanying notes are an integral part of the financial statements.
340
Total
Special
Governmental
General
Revenue
Funds
$ - $
4,522
$ 4,522
622
-
622
264
3
267
13,578
-
13,578
14,464
4,525
18,989
977,906
4,539
982,445
977,906
4,539
982,445
(963,442)
(14)
(963,456)
1,006,971
-
1,006,971
-
2,402
2,402
(41,127)
-
(41,127)
(2,402)
(2,402)
963,442
2,402
965,844
-
2,388
2,388
-
5,356
5,356
$ - $
7,744
$ 7,744
The accompanying notes are an integral part of the financial statements.
340
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
The accompanying notes are an integral part of the financial statements.
341
Variance with
Final Budget
Budgeted Amount
Positive
Original
Final
Actual
(Negative)
REVENUES
Charges for services $
- $
- $
622
$ 622
Interest
-
-
264
264
Miscellaneous
-13,612
13,578
(34)
Total revenues
-
13,612
14,464
852
EXPENDITURES
General government
990,371
1,018,181
977,906
40,275
Total expenditures
990,371
1,018,181
977,906
40,275
Excess of revenues over
(under) expenditures
(990,371)
(1,004,569)
(963,442)
41,127
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners
990,371
1,006,971
1,006,971
-
Transfers to Board
of County Commissioners
-
-
(41,127)
(41,127)
Transfers to other funds
-
(2,402)
(2,402)
-
Total other financing sources (uses)
990,371
1,004,569
963,442
(41,127)
Net change in fund balances $
- $
-
-
$ -
Fund balances at beginning of year
-
Fund balances at end of year
$
-
The accompanying notes are an integral part of the financial statements.
341
R
342
E-3
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Supervisor of Elections is a County agency and a local governmental entity pursuant to Article VIII,
Section 1(d) of the Constitution of the State of Florida. For financial statement and reporting purposes,
the Supervisor of Elections does not meet the definition of a legally separate organization and is not
considered to be a component unit. The Supervisor of Elections is considered to be a part of the primary
government of Indian River County. The financial statements contained herein represent the financial
transactions of the Supervisor of Elections only. The format of the Supervisor of Elections' statements
has been prepared in accordance with the presentation requirements of GASB 34 for fund financial
statements.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Description of Funds
The accounting records are organized for reporting purposes on the basis of governmental funds.
Governmental Funds
General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and
expenditures applicable to the general operations of the Supervisor of Elections. All financial resources,
which are not accounted for and reported in another fund, are recorded in the General Fund. The
governmental fund measurement focus is based upon determination of financial position and changes in
financial position (sources, uses and balances of financial resources) rather than upon net income
determination.
Special Revenue Fund — The Special Revenue Fund accounts for the grant proceeds from the State and
matching funds from the County. These funds are legally restricted for voter education and poll worker
recruitment and training.
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. Under the
modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are
recorded when received in cash or when they are considered both measurable and available. Revenues
collected in excess of expenditures are not considered earned and are reflected as liabilities.
C. Budgetary Requirements
State statutes require the Supervisor of Elections to submit a proposed budget to the Board of County
Commissioners by May 1 of each year. After review and approval of the budget by the Board, the
Supervisor or Elections is authorized to transfer budgeted amounts between objects and departments as
long as she does not exceed the total appropriations approved by the Board. Increases in the total budget
are subject to the review and approval of the Board. The budgeted revenues and expenditures in the
accompanying financial statements reflect all amendments approved by the Board of County
Commissioners. The budget is prepared on a basis consistent with generally accepted accounting
principles.
343
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Prepaid Expenses
Deposits in the governmental funds represent prepayments for services that will be used in future
periods. The Supervisor of Election's policy is to record the expenditure for the services when they are
used rather than when the cash is disbursed.
E. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund
financial statements. Tangible personal property used by the Supervisor of Elections in operations is
reported in the financial statements of the County. Refer to the County -wide note on capital assets for
the capitalization threshold, depreciation methodology and useful lives.
F. Compensated Absences
The Supervisor of Elections accrues a liability for employees' rights to receive compensation for future
absences when certain conditions are met. The Supervisor of Elections does not, nor is she legally
required to, accumulate expendable available financial resources to liquidate this obligation.
Accordingly, the liability for compensated absences is not reported on the Supervisor of Elections'
financial statements. Additional information on the liability is reflected in subsequent Note 6.
G. Transfer Out
In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to
the Board of County Commissioners and other governments. These "excess fees" totaled $41,127 and
are reported as transfers out. These transfers are also reflected as due to other governments on the
balance sheet.
H. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide Note on Fund Balance.
ELI'
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH
Deposits
At September 30, 2011, the carrying amount of the Supervisor of Elections' deposits was $78,913, and
the bank balance was $115,983. All deposits with financial institutions were 100% insured by federal
depository insurance or by collateral provided by qualified public depositories to the State Treasurer in
accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits
Act.
The Supervisor of Elections has adopted the Board of County Commissioners' investment policy. This
policy requires the Supervisor of Elections' office to follow the above state law (governing custodial
credit risk) for cash deposits. Refer to the County -wide Note 4, Cash and Cash Equivalents, for
definition of custodial credit risk.
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Supervisor of Elections' employees participate in the Florida Retirement System
(FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the
Florida Department of Management Services. Effective July 1, 2011, the FRS became a contributory
plan for all members, except DROP participants, whereby members contribute 3% and employers pay a
rate based upon each member's employment class (regular class 4.91%, senior class 6.27%, and elected
official class 11.14%). Employees elect participation in either the defined benefit plan (Pension Plan) or
the defined contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1,
2011, normal retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the
employee enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of
service or 33 years of service, regardless of age. Under the Pension Plan, early retirement is available
before reaching normal retirement age and will be subject to an early-retirement reduction of 5% for
each year your age at retirement is under your normal retirement age. For those employees who elect
participation in the Investment Plan rather than the Pension Plan, vesting occurs after one year of
service. Participants have access to the full value of their vested account balance when they leave FRS
employment, regardless of age. These participants receive a defined contribution for self-direction in an
investment product with a third party administrator selected by the State Board of Administration.
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
of pay, membership class and the payment option selected at retirement. For further information
concerning the Florida Retirement System and contribution rates, please read County -wide Note 16,
Pension Plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2009, 2010, and 2011, were
equal to 10.5%, 11.4%, and 11.5% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2009, 2010, 2011 were $57,066, $59,170 and $48,433
respectively. These amounts are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $1,957.
345
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Supervisor of Elections participated in the Indian River County Other Post Employment Benefit
Trust (IRCOT). The Supervisor of Election's 2011 annual required contribution of $10,507 was funded
by the Board of County Commissioners as part of a total contribution determined by the IRCOT actuary.
Further information on the IRCOT can be found in the County -wide financial statements and County
notes.
NOTE 5 — RISK MANAGEMENT
Indian River County maintains a risk management program that provides for coverage of risks of loss
related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees,
natural disasters, and medical and life insurance coverage for employees and their eligible dependents.
Various excess catastrophe insurance policies with a commercial carrier are also in force for claims
exceeding the amount chargeable against the Self-insurance Fund. The Supervisor of Elections
participated in the County's self-insurance program during fiscal year 2011 at an annual cost of
approximately $41,337.
NOTE 6 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2011:
Beginning Ending
Balance Balance
10/01/10 Additions Deletions 09/30/11
Accrued Compensated Absences36 454 25 490 $38,174&237, 70
Of the $23,770 liability for accrued compensated absences, management estimates that $5,000 will be
due and payable within one year. The liability for accrued compensated absences is not reported in the
financial statements of the Supervisor of Elections since it is not payable from available spendable
resources. The liability is reported in the financial statements of the County.
WAI
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 7 — OPERATING LEASES
The Supervisor of Elections has entered into noncancelable operating leases as lessee for a mail
machine, letter opener, and a ballot on demand machine. Lease expenditures totaled $21,035 for the year
ended September 30, 2011.
The following is a schedule by years of minimum future rentals to be paid by the Supervisor of Elections
for the noncancelable operating leases as of September 30:
Year Amount
2012 $ 4,505
2013 3,379
Total Future Minimum Lease Payments $ 7.884
347
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772-234.8488
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Supervisor of Elections, as of and for the year ended September 30, 2011 and issued our
report thereon dated March 9, 2012. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
Management of the Supervisor of Elections is responsible for establishing and maintaining effective
internal control over financial reporting. In planning and performing our audit, we considered the
Supervisor of Elections' internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the Supervisor of Elections' internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Supervisor of
Elections' internal control over financial reporting.
A 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 financial statements will not be prevented or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses as
defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
as
Harris, Cotherman,
Jones, Price &. Associates
Certified Public Accountants - Chartered
The Honorable Leslie Swan
Supervisor of Elections
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Supervisor of Elections,
Indian River County, others within the entity, the Florida Auditor General, and applicable federal and
state agencies, and is not intended to be and should not be used by anyone other than these specified
parties.
�(,Utilt� � �o fit2�tirr,tLit� � � \ /-�✓u~-t� °' C�gd,O�t;a�Q.4�
&V,U& Qu� 0,f-&�
Vero Beach, Florida
March 9, 2012
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Management Letter
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Supervisor of Elections, as of and for the year ended September 30, 2011 and have
issued our report thereon dated March 9, 2012.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. We have issued our Report on Internal Control
over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is
dated March 9, 2012, and should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental entity audits performed in the State of Florida. This letter
includes the following information which is not included in the aforementioned report:
Section 10.554(1)(i)L, Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. Corrective action has been taken to address recommendations made in the management
letter for fiscal year ending September 30, 2010.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Supervisor of Elections, Indian River County, Florida, complied
with Section 218.415, Florida Statutes,
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material, but more than inconsequential. In connection
with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
350
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Leslie Swan
Supervisor of Elections
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that have an inconsequential effect on financial statements,
considering both quantitative and qualitative factors; (1) violations of provisions of contracts or grant
agreements, or fraud, illegal acts, or abuse and, (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is disclosed
in the notes to the financial statements.
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 management, the Supervisor of Elections,
Indian River County, the Florida Auditor General, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
l ICGUj ' V✓0� a awu.vC/
�Beaeh,
�lcc~64va- eltaAie46'JVero Florida
March 9, 2012
351
R
352
E-3
TAX COLLECTOR
353
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.2348488
Independent Auditors' Report on Special Purpose Financial Statements Prepared in Compliance
with a Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Tax
Collector (the "Tax Collector") as of and for the year ended September 30, 2011 as listed in the table of
contents. These financial statements are the responsibility of the Tax Collector's management. Our
responsibility is to express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements present the financial position of only
the Tax Collector at September 30, 2011 and the results of its operations for the year then ended. These
statements are not intended to be a complete presentation of the financial position of Indian River County.
In our opinion, the accompanying fund financial statements present fairly, in all material respects, the
financial position of the Tax Collector as of September 30, 2011 and the results of its operations for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued a report dated March 9, 2012 on
our consideration of the Tax Collector's internal control over financial reporting and on our tests of
compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Tax Collector, Indian River
County, the Florida Auditor General, and applicable federal and state agencies, and is not intended to be
and /should not be used by anyone otherthanthese specified parties.
Vero B ach, Florida
March 9, 2012
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
354
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2011
ASSETS
Cash and cash equivalents
$ 2,549,447
Investments
675,338
Accounts receivable
85,710
Inventories
33
Prepaid expenses
12
Total assets
$ 3,310,540
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ 304,835
Due to other governments
2,979,384
Deferred revenues
24,920
Other deposits held in escrow
1,401
Total liabilities
3,310,540
Fund Balances:
Nonspendable:
Inventories 33
Prepaid items 12
Unassigned (45)
Total fund balances -
Total liabilities and fund balances
$ 3,310,540
The accompanying notes are an integral part of the financial statements.
355
Indian River County, Florida
Tax Collector
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2011
Budgeted Amount
Original Final
REVENUES
Charges for services $ 5,737,457
Interest 10,000
Total revenues 5,747,457
EXPENDITURES
General government 2,967,386
Total expenditures 2,967,386
Excess of revenues over
(under) expenditures 2,780,071
OTHER FINANCING SOURCES (USES)
Excess fees to Board
of County Commissioners (2,424,500)
Excess fees to Other
Governments (355,571)
Total other financing sources (uses) (2,780,071)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
$ 5,737,457
10,000
2,967,386
2,967,386
$ 5,841,263
13,437
5,854,700
2,875,316
2,875,316
Variance with
Final Budget
Positive
(Negative)
$ 103,806
3,437
107,243
92,070
92,070
2,780,071
2,979,384
199,313
(2,424,500)
(2,598,238)
(173,738)
(355,571)
(381,146)
(25,575)
(2,780,071)
(2,979,384)
(199,313)
The accompanying notes are an integral part of the financial statements.
356
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Assets
Agency Fund
September 30, 2011
ASSETS
Cash and cash equivalents $
Investments
Total assets $
LIABILITIES
Due to other governments $
Total liabilities $
4,144,530
77,521
4,222,051
4,222,051
4,222,051
The accompanying notes are an integral part of the financial statements.
357
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358
E-3
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Tax Collector is a County agency and a local governmental entity pursuant to Article VIII, Section
1(d) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Tax
Collector does not meet the definition of a legally separate organization and is not considered to be a
component unit. The Tax Collector is considered to be a part of the primary government of Indian River
County. The financial statements contained herein represent the financial transactions of the Tax
Collector only. The format of the Tax Collector's statements has been prepared in accordance with the
presentation requirements of GASB 34 for fund financial statements.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Description of Funds
The accounting records are organized for reporting purposes on the basis of governmental funds and a
fiduciary fund.
Governmental Fund
General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and
expenditures applicable to the general operations of the Tax Collector. All financial resources, which are
not accounted for and reported in another fund, are recorded in the General Fund. The governmental
fund measurement focus is based upon determination of financial position and changes in financial
position (sources, uses and balances of financial resources) rather than upon net income determination.
Fiduciary Fund
Fiduciary Fund — The Fiduciary Fund of the Tax Collector is the Agency Fund, which is used to account
for assets held by the Tax Collector as an agent. The Agency Fund is custodial in nature and does not
involve measurement of results of operations. These funds cannot be used to support the Tax
Collector's own programs.
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. The fiduciary
fund is reported on an accrual basis. Under the modified accrual basis, expenditures are recorded at the
time liabilities are incurred. Revenues are recorded when received in cash or when they are considered
both measurable and available. Revenues collected in excess of expenditures are not considered earned
and are reflected as liabilities.
359
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Budgetary Requirements
State statutes require the Tax Collector to prepare an annual budget that clearly reflects the revenues
available to her office and the functions for which money is to be expended. The budgeted revenues and
expenditures are subject to the review and approval of the Department of Revenue. Management is
authorized to transfer budgeted amounts between objects and departments as long as management does
not exceed the total appropriations of a fund. Department of Revenue approval is only required when
unanticipated revenues are received that management wishes to have appropriated, thereby increasing
the total appropriations of a fund. The budget is prepared on a basis consistent with generally accepted
accounting principles.
D. Cash and Cash Equivalents
Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety
days or less when purchased.
E. Prepaid Expenses
This account represents prepayments for services that will be used in future periods. The Tax Collector's
policy is to record the expenditure for the services when they are used rather than when the cash is
disbursed.
F. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund
financial statements. Tangible personal property used by the Tax Collector in operations is reported in
the financial statements of the County. Refer to the County -wide note on capital assets for capitalization
threshold, depreciation methodology and useful lives.
G. Compensated Absences
The Tax Collector accrues a liability for employees' rights to receive compensation for future absences
when certain conditions are met. The Tax Collector does not, nor is she legally required to, accumulate
expendable available financial resources to liquidate this obligation. Accordingly, the liability for
compensated absences is not reported on the Tax Collector's financial statements. Additional
information on the liability is reflected in subsequent Note 7.
H. Transfer Out
In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to
the Board of County Commissioners and other governments. These "excess fees" are reported as
transfers out and a liability and were $2,979,384 at year-end.
360
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
I. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide Note on Fund Balance.
NOTE 2 - CASH AND INVESTMENTS
A. Deposits
At September 30, 2011, the carrying amount of the Tax Collector's deposits was $6,677,977 and the
bank balance was $6,898,588. All deposits with financial institutions were 100% insured by federal
depository insurance or by collateral provided by qualified public depositories to the State Treasurer in
accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits
Act.
B. Investments
The Tax Collector modified their investment and deposit policy in August 2011. This policy requires the
Tax Collector's office to follow the above state law (governing custodial credit risk) for deposits and
Section 218.415, Florida Statutes. Refer to the County -wide Note 4, Cash and Cash Equivalents, for
definition of custodial credit risk.
At September 30, 2011, the Tax Collector had the following investments:
361
Weighted Average
Portfolio
Credit
Investment Type
Fair Value
Maturity In Years
Percentage
Risks
Other Fixed Rate Investments:
Florida PRIME (formerly Fund A)
$ 142,678
.08
18.95%
AAAm
Fund B Surplus Funds Trust Fund
77,521
4.82
10.30
Not Rated
Other Market Rate Investments:
Certificate of Deposit — Six Month
251,880
.50
33.45
N/A
Certificate of Deposit — One Year
252,512
1.00
33.54
N/A
Florida Trust Day to Day Fund
25,204
.08
3.35
AAAm
Fidelity American U.S. Treasury Fund
3,064
.08
0.41
AAA
Total Fair Value
$ 752,859
100.00%
Portfolio weighted average maturity
1.02
361
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
The Tax Collector participated in a capital lease program in which funds are deposited into an escrow
account and drawn upon as equipment is purchased. At September 30, 2011, $3,064 of unspent capital
lease proceeds remained in the escrow account.
Concentration Risk
The Tax Collector's investment policy limits portfolio composition to the following maximum
guidelines:
Local Government Surplus Funds Trust Fund 95%
Florida Trust Day to Day Fund 95%
Direct Obligations of the U.S. Government 25%
Money Market, CD's, and Savings Accounts 50%
Securities & Exchange Commission Money Funds 25%
Bank Super NOW Accounts 95%
Bank Repo Agreements 50%
United States Government Agencies 25%
The Tax Collector invests surplus funds in an external investment pool, the Local Government Surplus
Funds Trust Fund (the "State Pool"). The State Pool is administered by the Florida State Board of
Administration ("SBA"), who provides regulatory oversight. During fiscal year 2008, the SBA reported
that the State Pool was exposed to potential risks due to indirect exposure in the sub -prime mortgage
financial market. Consequently, the SBA placed some restrictions on how participants could access
portions of their surplus funds and ultimately restructured the State Pool into two separate pools
("LGIP" and "Fund B").
The LGIP has adopted operating procedures consistent with the requirements for a 2a-7 like fund. The
Tax Collector's investment in the LGIP is reported at amortized cost. The fair value of the position in
the pool is equal to the value of the pool shares. At September 30, 2011, the LGIP held a rating of
AAAm by Standard and Poor's and had a weighted average days to maturity of 38 days.
The investment objective for Fund B is to maximize the present value of distributions to participants, to
the extent reasonable and prudent, net of fees; thus weight is given not only to the realized value of
security sales, but also to the speed with which monies are distributed (liquidity). As cash becomes
available in Fund B, it is distributed among participant accounts in the LGIP, according to each
participant's pro rata share of Fund B. All distributions from Fund B are 100% available liquid balance
(ALB) upon transfer.
Fund B is reported at fair value, determined by the fair value per share of the Pool's underlying
portfolio. Fund B was unrated as of September 30, 2011.
362
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments — Continued
Concentration Risk - Continued
All funds held in Fund B are "on -behalf -of ' (OBF) accounts. These OBF accounts were established on
December 26, 2007 and held for the eleven taxing districts that did not have SBA accounts at the time of
the restructuring of SBA funds into the LGIP and Fund B. At September 30, 2011, the State Board of
Administration (SBA) determined a negative fair market value adjustment of 24.32% of the portfolio
balance was needed for the Fund B portfolio balance. At year-end, the cash balance in Fund B was
$102,428 with a fair market adjustment of $24,907; consequently, the net investment in Fund B is
reported at $77,521.
Interest Rate Risk
The Tax Collector will attempt to match investment maturities with known cash needs and anticipated
cash flow requirements. Investments of current operating funds shall have maturities of no longer than
twelve months.
Credit Risk
Florida Statutes authorize investments in certificates of deposit, savings accounts, the Local Government
Surplus Funds Trust Fund administered by the Florida State Board of Administration; Securities and
Exchange Commission registered money market funds with the highest credit quality rating from a
nationally recognized rating agency, and direct obligations of the U.S. Treasury.
Custodial Credit Risk
All investments are held in the name of the Tax Collector, by the Tax Collector, with the exception of
the Florida Trust Day to Day Fund, which was held by UMB Bank, and the LGIP which was held by
BNY Mellon.
NOTE 3 - INVENTORIES
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting. The costs of general fund inventory are recorded as an expenditure when consumed rather
than when purchased. Inventory of the Tax Collector, included in the general fund, represents postage.
363
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 4 — PENSION PLAN
Florida Retirement System
Plan Description: The Tax Collector's employees participate in the Florida Retirement System (FRS), a
cost-sharing, multiple -employer public employee retirement system, administered by the Florida
Department of Management Services. Effective July 1, 2011, the FRS became a contributory plan for all
members, except DROP participants, whereby members contribute 3% and employers pay a rate based
upon each member's employment class (regular class 4.91%, senior class 6.27%, and elected official
class 11.14%).
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age. Under the Pension Plan, early retirement is available before reaching
normal retirement age and will be subject to an early-retirement reduction of 5% for each year your age
at retirement is under your normal retirement age. For those employees who elect participation in the
Investment Plan rather than the Pension Plan, vesting occurs after one year of service. Participants have
access to the full value of their vested account balance when they leave FRS employment, regardless of
age. These participants receive a defined contribution for self-direction in an investment product with a
third party administrator selected by the State Board of Administration.
Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
of pay, membership class and the payment option selected at retirement. For further information
concerning the Florida Retirement System and contribution rates, please read County -wide Note 16,
Pension Plans.
Employer contributions to the FRS for the fiscal year ended September 30, 2009, 2010, and 2011, were
equal to 10.69%, 11.44%, and 10.69% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2009, 2010, 2011 were $173,154, $179,908, $170,864
respectively. These amounts are equal to 100% of the required contribution for each year. Employee
contributions for the time period July 1, 2011 through September 30, 2011 were $10,326.
NOTE 5 — OTHER POSTEMPLOYMENT BENEFITS
The Tax Collector participated in the Indian River County Other Postemployment Benefits Trust
(IRCOT). The Tax Collector paid their 2011 annual required contribution of $60,040 which was their
part of the total contribution determined by the IRCOT actuary. Further information on the IRCOT can
be found in the County -wide financial statements and County notes.
364
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2011
NOTE 6 — RISK MANAGEMENT
Indian River County maintains a risk management program that provides for coverage of risks of loss
related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees,
natural disasters, and medical and life insurance coverage for employees and their eligible dependents.
Various excess catastrophe insurance policies with a commercial carrier are also in force for claims
exceeding the amount chargeable against the Self-insurance Fund. The Tax Collector participated in the
County's self-insurance program during fiscal year 2011 at an annual cost of approximately $271,469.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
NOTE 7 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2011:
Beginning
Balance
10/01/10
Accrued Compensated Absences149 726
Additions
27 236
Deletions
$51,158
Ending
Balance
09/30/11
125,804
Of the $125,804 liability for accrued compensated absences, management estimates that $21,737 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Tax Collector since they are not payable from available spendable resources. They are reported in
the financial statements of the County.
NOTE 8 — OPERATING LEASES
The Tax Collector has entered into noncancelable operating leases as lessee for office space and office
equipment. Lease expenditures totaled $87,974 for the fiscal year ended September 30, 2011.
The following is a schedule by years of minimum future rentals to be paid by the Tax Collector for
noncancelable operating leases as of September 30, 2011:
Year
Amount
2012
$ 90,596
2013
92,936
2014
59,516
2015
47,733
Total future minimum lease payments
290 781
365
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234.8484
Fax 772.234.8488
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Tax Collector, as of and for the year ended September 30, 2011 and issued our report
thereon dated March 9, 2012. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
Management of the Tax Collector is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the Tax Collector's
internal control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on
the effectiveness of the Tax Collector's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Tax Collector's internal control over financial reporting.
A 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 financial statements will not be prevented or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as
defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
366
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Carole Jean Jordan
Tax Collector
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Tax Collector, Indian River
County, others within the entity, the Florida Auditor General, and applicable federal and state agencies,
and is not intended to be and should not be used by anyone other than these specified parties.
*Ww�,
Vero Beach, Florida
March 9, 2012
367
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants • Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234.8484
Fax 772-234.8488
Management Letter
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Tax Collector, as of and for the year ended September 30, 2011 and have issued our
report thereon dated March 9, 2012.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. We have issued our Report on Internal Control
over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is
dated March 9, 2012, and should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental entity audits performed in the State of Florida. This
letter includes the following information which is not included in the aforementioned report:
Section 10.554(1)(i)l., 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 recommendations made in the preceding annual financial audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Tax Collector, Indian River County, Florida, complied with
Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material, but more than inconsequential. In connection
with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
368
Harris, Cotherman,
Jones, Price &- Associates
Certified Public Accountants - Chartered
The Honorable Carole Jean Jordan
Tax Collector
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that have an inconsequential effect on financial statements,
considering both quantitative and qualitative factors; (1) violations of provisions of contracts or grant
agreements, or fraud, illegal acts, or abuse and, (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is disclosed
in the notes to the financial statements.
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 management, the Tax Collector, Indian
River County, the Florida Auditor General, and applicable federal and state agencies, and is not intended
to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 9, 2012
369
R
370
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