HomeMy WebLinkAbout2014-029Indian River County
Florida
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year
October 1, 2012 through September 30, 2013
The Lagoon Greenway is a public conservation area on the
west shore of the Indian River lagoon. The Greenway is open to
the public, with a trailhead located at 850 Indian River
Boulevard. It is a three-mile eco -friendly trail system for hiking,
jogging or bike riding.
The public access improvements for the Greenway were
completed in January 2013. Funding was provided by County
parks impact fees and a matching grant from the Florida Inland
Navigation District.
The Lagoon Greenway was developed by the County in
partnership with the Indian River Land Trust, with cooperative
assistance from the Florida Inland Navigation District, Indian
River Mosquito Control District, and St. John's River Water
Management District.
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2012
THROUGH
SEPTEMBER 30, 2013
Jeffrey R. Smith, CPA, CGFO, CGMA
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, 2013
Board of County Commissioners as of September 30, 2013
Joseph E. Flescher Peter D. O'Bryan
Chairman Bob Solari
Wesley S. Davis Tim Zorc
Vice -Chairman
Current Board of County Commissioners (as of November 19, 2013)
Peter D. O'Bryan Joseph E. Flescher
Chairman Bob Solari
Wesley S. Davis Tim Zorc
Vice -Chairman
Constitutional Officers as of September 30, 2013
Jeffrey R. Smith David C. Nolte
Clerk of the Circuit Court and Comptroller Property Appraiser
Leslie R. Swan
Supervisor of Elections
Deryl Loar Carole Jean Jordan
Sheriff Tax Collector
County Management
Joseph A. Baird Dylan Reingold
County Administrator County Attorney
Michael Zito
Assistant County Administrator
Jason Brown
Budget Director
Chris Mora
Director of Public Works
Stan Boling John W. King
Director of Community Development Director of Emergency Services
Vincent Burke
Director of Utilities
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2013
INTRODUCTORY SECTION
Page
Number
LETTER OF TRANSMITTAL
ORGANIZATION CHART vii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 3
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statement of Net Position 19
Statement of Activities 20
Fund Financial Statements:
Balance Sheet - Governmental Funds 22
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities 24
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds 26
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 28
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund 29
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Impact Fees Fund 30
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Secondary Roads Construction Fund 31
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual -Transportation Fund 32
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Emergency Services District Fund 33
Statement of Fund Net Position - Proprietary Funds 35
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
Fiscal Year Ended September 30, 2013
Page
Number
Statement of Revenues, Expenses, and Changes in
Fund Net Position - Proprietary Funds 36
Statement of Cash Flows - Proprietary Funds 38
Statement of Fiduciary Net Position - Fiduciary Funds 42
Statement of Changes in Fiduciary Net Position -
Other Postemployment Benefits Trust Fund 43
Notes to the Financial Statements 45
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress - Other Postemployment Benefits Plan 100
Schedule of Employer Contributions - Other Postemployment Benefits Plan 100
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds 106
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds 114
Budgetary Comparison Schedules 122
Combining Statement of Net Position - Internal Service Funds 154
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position - Internal Service Funds 155
Combining Statement of Cash Flows - Internal Service Funds 156
Combining Statement of Changes in Assets and Liabilities - Agency Fund 160
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2013
STATISTICAL SECTION
Page
Number
SCHEDULE 1 Net Position by Component - Last Ten Fiscal Years 162
SCHEDULE 2 Changes in Net Position - Last Ten Fiscal Years 164
SCHEDULE 3 Fund Balances, Governmental Funds - Last Ten Fiscal Years 168
SCHEDULE 4 Changes in Fund Balances, Governmental Funds -
Last Ten Fiscal Years 170
SCHEDULE 5 Tax Revenues by Source, Governmental Funds -
Last Ten Fiscal Years 172
SCHEDULE 6 Assessed Value and Actual Values of Taxable Property -
Last Ten Fiscal Years 173
SCHEDULE 7 Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years 174
SCHEDULE 8 Principal Property Taxpayers - Year 2013 and Year 2004 176
SCHEDULE 9 Property Tax Levies and Collections - Last Ten Fiscal Years 177
SCHEDULE 10 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 178
SCHEDULE 11 Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years 180
SCHEDULE 12 Computation of Legal Debt Margin 181
SCHEDULE 13 Direct and Overlapping Governmental Activities Debt 182
SCHEDULE 14 Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years 184
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2013
Page
Number
SCHEDULE 15 Demographic and Economic Statistics - Last Ten Years 186
SCHEDULE 16 Principal Employers - Year 2013 and Year 2004 187
SCHEDULE 17 Building Permits - Last Ten Fiscal Years ..188
SCHEDULE 18 Operating Indicators by Function/Program - Last Ten Fiscal Years 190
SCHEDULE 19 Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal Years 194
Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 196
Department of Utility Services - Historical Rate Structure -
Last Ten Fiscal Years 200
Water and Wastewater Customers - Last Ten Fiscal Years 201
Top 10 High Volume Customers of Utility Services 202
Capacity Charges - Utilities Department - Last Ten Fiscal Years 203
SCHEDULE 20
SCHEDULE 21
SCHEDULE 22
SCHEDULE 23
SCHEDULE 24
SCHEDULE 25
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 -
Last Ten Fiscal Years 204
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2013
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 205
County Management Letter 207
Federal and State Grants:
Independent Auditors' 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 209
Independent Auditors' Report on the Schedule of Expenditures of
Federal Awards and State Projects Required by OMB Circular
A-133 and Chapter 10.550, Rules of the Auditor General 212
Schedule of Expenditures of Federal Awards and State Projects 213
Notes to Schedule of Expenditures of Federal Awards and State Projects 218
Schedule of Findings and Questioned Costs 219
Impact Fee Affidavit 221
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2013
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
Independent Auditors' Report 224
Fund 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 288
Management Letter 290
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditors' Report 294
Fund Financial Statements 296
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 307
Management Letter 309
PROPERTY APPRAISER
Independent Auditors' Report 312
Fund Financial Statements 314
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 320
Management Letter 322
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS -CONTINUED
Fiscal Year Ended September 30, 2013
Page
Number
SHERIFF
Independent Auditors' Report 326
Fund Financial Statements 328
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 338
Management Letter 340
SUPERVISOR OF ELECTIONS
Independent Auditors' Report 344
Fund Financial Statements 346
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 354
Management Letter 356
TAX COLLECTOR
Independent Auditors' Report 360
Fund Financial Statements 362
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 373
Management Letter 375
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court & Comptroller
1801 27th Street
Vero Beach, FL 32960
Telephone: (772) 226-1945
March 7, 2014
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2013, 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.
The County has established a comprehensive internal control framework designed to ensure that the
assets of the County are protected from loss, theft or misuse and to certify that the financial records and
data used for preparing the financial statements are in conformity with accepted accounting principles
(GAAP) as applicable to governmental entities. The internal control system is designed to provide
reasonable, rather than absolute, assurance that these objectives are met. The idea of reasonable
assurance recognizes two aspects: 1) the cost of internal control should not exceed the anticipated
benefits; and 2) the valuation of the costs and benefits require estimates and judgment by management.
All internal control evaluations take place within this framework. We believe the County's internal
controls adequately safeguard its assets and provide reasonable assurance of properly recorded financial
transactions.
Section 218.39, Florida Statutes, requires an annual audit of all local governments. The unqualified
opinion of the auditors (Rehmann, Certified Public Accountants) on the County's financial statements
for the year ended September 30, 2013 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 Federal 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.
i
Profile of Indian River County
Indian River County, established on June 29, 1925 by an act of the Florida Legislature, is located 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. Indian River County is a non -charter county
established under the Constitution and the Laws of the State of Florida. It is governed by a five member
Board of County Commissioners (Board) elected at large from the five districts within the County. A
County Administrator is appointed by the Board and is responsible for implementing the policies set
forth by the Board. The Administrator is charged with the fiscal control of the resources of the County
as well. In addition to the Board, there are five elected Constitutional Officers serving specific
governmental functions: Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff,
Supervisor of Elections and Tax Collector. Although the funding for all Constitutional Offices is part of
the County's General Fund, the Board does not have direct responsibility for their operations. Each
office is run separately within each of its respective legal guidelines.
Indian River County provides a full range of services including, but not limited to: construction and
maintenance of roadways, sidewalks and other infrastructure, fire rescue/emergency services, law
enforcement, library services, traffic operations and control, parks and recreational services, human
services, building inspections, licenses and permits, water/sewer utility services, and refuse collection
and disposal.
The Clerk of the Circuit Court and Comptroller (Clerk), Sheriff, and Supervisor of Elections submit
proposed operating budgets to the Board prior to May 1. The Florida Department of Revenue receives
budgets from the Property Appraiser prior to June 1 and from the Tax Collector prior to August 1. Once
these budgets are approved, they are forwarded to the Board. The court -related function of the Clerk
submits a budget to the Florida Clerks of Court Operations Corporation (CCOC) prior to June 1. These
operating budgets include proposed expenditures and the sources to finance them as set forth in Florida
Statutes.
Constitutional Officers, all departments controlled by the Board of County Commissioners, 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 the budgets of the
County departments, state agencies and nonprofit organizations, and makes his budget recommendations
to the Board of County Commissioners on or before July 15 of each year.
During September, public hearings are held pursuant to Section 200.065, 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 (at the fund level) the budgets for all governmental fund types.
The budgets legally adopted by the Board set forth the anticipated revenues by source and the
appropriations by function. Budgets for Enterprise and Internal Service funds are adopted on a basis
consistent with generally accepted accounting principles. Management is authorized to transfer
budgeted amounts between objects and departments in any fund as long as the total appropriations of a
fund are not exceeded. Board approval to amend the budget is required when unanticipated revenues are
received that management wishes to have appropriated, thereby increasing the total appropriations of a
fund. Appropriations for the County lapse at the close of the fiscal year.
ii
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 which are fiscally dependent on the County 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
Indian River County's population of 139,586 in 2013 has increased 10% over the last ten years. While
the population of the County has been steadily increasing, so has the median age of residents living here.
Nationally, average ages have risen due to the increasing age of the baby boomer generation as well as
the increase in life expectancy for all Americans. In addition, Florida continues to be a popular
destination for retirees. Based on the 2010 census, persons ages 15-44 make up the largest percentage of
residents in the County, followed by ages 45-64 and 65+ respectively with persons ages 14 and under
comprising the smallest portion of the population.
Indian River County's economy is made up of agriculture (citrus and cattle), tourism, light
manufacturing, wholesale and retail trade. Piper Aircraft, Inc., whose headquarters for aircraft research,
development and manufacturing operations are located in Vero Beach, is the largest manufacturing
employer in the area. CVS Pharmacy operates a distribution center which provides the distribution of
products to all CVS locations in the southern half of Florida. INEOS New Planet BioEnergy opened a
state of the art center in Indian River County. The facility converts low-cost organic materials such as
household and vegetative waste into bioethanol for use as a renewable road transport fuel (ethanol)
while generating renewable power for export to the local electricity grid. This new technology will
reduce greenhouse gas emissions from cars and energy generation in addition to reducing the amount of
waste going into our landfills. The Atlantic beaches and the Indian River, along with the comfortable
climate, provide the basis for a year-round tourism industry. Residents can enjoy these resources at any
of the County parks, the Sebastian Inlet State Park or the Pelican Island National Wildlife Refuge.
The effects of the decline in the national economy continued to affect Indian River County in 2013.
Total property tax values continued to decrease from $13.2 billion in 2012 to $12.7 billion in 2013;
however, construction activity saw a significant increase with 30% more building permits issued in 2013
over 2012. Please see Statistical Schedules 6 and 17 for more information.
The unemployment rate decreased from 11.3% in 2012 to 8.8% in 2013.
Although Indian River County is a major producer of citrus with approximately 32,820 acres dedicated
to citrus production, over the last ten years production has decreased by 45% from 14.8 million boxes in
2003 to 8.2 million in 2013.
iii
Long Term Financial Planning and Major Initiatives
Chapter 163 Florida Statutes and Florida Administrative Code Rule 9J-5 requires each local government
to have a Comprehensive Land Use Plan. An important part of this plan is the Capital Improvements
Program (CIP) which evaluates the need for public facilities in support of the Future Land Use Element,
to estimate the costs of improvements for which local government has fiscal responsibility, to analyze
the fiscal capacity of the local government to finance and construct improvements, and to adopt financial
policies to guide the funding and construction of the improvements. The CIP is updated annually and
encompasses a period of five years. Listed below are six major capital projects included in the current
CIP along with the source of funding and capital costs:
➢ Fire/EMS Station 13 - Construction of an additional station is underway to serve the expanding
south county population. The Emergency Services District reserves will provide $530,000 with
the remaining $1.6 million being funded by impact fees. The operating expense will be
approximately $2.1 million.
➢ Osprey Marsh - The County is constructing the second algal turf scrubber (ATS) system called
the "Osprey Marsh" for the south relief canal. The ATS will remove dissolved nitrogen and
phosphorous from the water and return the treated water back to the Indian River lagoon where it
will enhance water quality and thereby support the resurgence of sea grasses in the lagoon. This
project is a collaborative effort between the Utilities Department and the Stormwater Division. It
is being funded through a combination of capacity charges, one cent sales tax and grants at an
estimated cost of $8.6 million.
➢ 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 intergenerational facility will be constructed at a cost of $6.9 million
with impact fees and one cent sales tax providing the funding. Ad valorem tax proceeds and user
fees as well as partnering agency contributions will fund increased operating costs which are
estimated to be about $118,000 per year.
➢ 66th Avenue Widening — Construction has begun to widen 66th Avenue from State Road 60 in
Vero Beach to 49th Street. 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 $20 million. Funding is from traffic impact fees, gas taxes and
grants. In the future, the County plans to expand 66th Avenue from 49th Street to the Sebastian
City limits.
➢ 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. Funding is derived from
traffic impact fees and gas taxes.
➢ Crime Scene Unit Building — This is a renovation and expansion of an existing structure next to
the Sheriff's Office for additional evidence storage. Funding in the amount of $2.4 million is
provided by both optional sales tax and impact fees.
iv
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.
The secondary objective is to obtain competitive returns on the investment of County surplus funds.
During fiscal year 2013, County investments had yields ranging from 0.11% to 2.50%. The overall
annual yield of the portfolio as of September 30, 2013 was 0.31%.
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 April 6, 2010. 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 change in net position for
the OPEB Trust for the fiscal year was $2.2 million. In addition, interest, dividend and mark -to -market
adjustments resulted in net investment income of $926,404. The OPEB Trust annual yield was 8.58%.
Standard and Poor's Rating Services (S&P) revised its outlook from AA stable to AA+ on the 2006
Limited General Obligation Bonds in August 2013. S&P awarded the one notch increase due to the
County's strong financial position with a long history of positive operations, proactive financial
management policies and practices, and low debt burden.
In December 2012, the 2005 and 2009 water and sewer systems debt issues were also reviewed by S&P
who reaffirmed the AA stable rating. S&P considered both systems to have ample capacity to
accommodate additional growth, low debt and low additional capital needs.
In fiscal year 2013, the Board of County Commissioners approved the general fund to partially pay
down $2,275,000 of the Series 2001 Spring Training Facility Revenue Bonds. The early call of these
bonds provides approximately $380,000 in additional half -cent sales tax revenue available each year as
well as a reduction in annual interest expenses.
The County's goal is to maintain an overall fund balance equal to 30% of the annual budget in all of its
taxing funds, which provides a three month cushion for operating expenses. The three month reserve is
necessary due to the timing of property tax levies in the State of Florida. Although the fiscal year begins
in October, property tax monies are not typically received until mid to late December, which would
require the County to operate in a deficit position for the first two months of the fiscal year without this
reserve. Reserve funds are needed in order to allow the County to respond to events without facing
serious financial burdens. County policy is to maintain fund balance levels and prohibit the use of fund
balance to fund recurring expenses. Information on the County's fund balance policy can be found in
County Note 19.
In summary, Indian River County completed the year financially strong and well positioned. In a time
of a strained world-wide economy and low investment returns, the County stood committed to manage
funds and services for its citizens.
v
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, 2012. This was
the 30th 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.
In addition, Indian River County also received the GFOA's Distinguished Budget Presentation Award
for its annual budget document for the 2012-2013 fiscal year. This was the 22nd 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 Finally, thanks to the
citizens for the trust you continue to place in your County and those who work to serve you.
Respectfully submitted,
Jeffrey R. Smith, CPA, CGFO, CGMA
Clerk of the Circuit Court and Comptroller
vi
Indian River County BCC Departmental Organization
Clerk of Circuit
Court &
Comptroller
Finance
Department
Assistant
County Administrator/
General Services
Sheriff
Residents of
Indian River County
Board of
County
Commissioners
Supervisor of
Elections
Property Tax
Appraiser Collector
County Administrator
County Attorney
Golf Course
Parks and
Recreation
Veterans
Services
Shooting
Range
Libraries
Mailroom
Switchboard
Human
Services
Assistant to
Administrator
Commission Office
Public Works
Engineering
Roads &
Bridges
Traffic
Utilities
Services
Fleet
Management
Secondary
Road
Construction
Stormwater
Coastal
Engineering
Facilities
Management
Telecommunication
Wastewater
Treatment
Water
Production
General &
Engineering
Emergency
Services
Biosolids
Operations
Customer
Service
Wastewater
Collection
Water
Distribution
Solid Waste
Disposal District
vii
Community
Development
Emergency
Management
Fire / Rescue
Radiological
Emergency
Preparedness
Emergency
Base Grant
Animal
Control
911
Coordinator
Geographic Info
Systems
Office of
Management & Budget
Human
Resources
Planning
Division
Environmental
Planning &
Code Enforcement
IRCLHAP /
SHIP Program
Metropolitan
Planning
Organization
Building
Division
Soil & Water
Conservation
Rental
Assistance
Ag
1 Extension
Risk
Management
Computer
1 Services
Purchasing
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Indian River County
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2012.
,P040,-.
Executive Director/CED
viii
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying financial statements of the 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, 2013, and the related notes to the financial
statements, which collectively comprise the County's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
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, 2013,
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
1
NEXIA
I NT FR N AT1ONi\I.
The Honorable Board of County Commissioners
and Constitutional Officers
March 3, 2014
Page 2
and the respective changes in financial position and, where applicable, cash flows thereof, and the
respective budgetary comparison for the general fund and each major special revenue fund, for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and the postemployment benefit plans, 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 inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise basic financial statements. The introductory section, combining and individual fund financial
statements, and statistical section are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The combining and individual fund financial statements are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the information
is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3 2014 on
our consideration of Indian River County, 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 internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering Indian River County, internal control over financial
reporting and compliance.
444,40c4r4unt. LLC
2
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
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, 2013. 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 -vi of this report.
FINANCIAL HIGHLIGHTS
• The County's overall financial position improved over 2012.
• The assets and deferred outflows of resources of the County exceeded its liabilities by $1,007.7
million (net position). Of this amount, $140.5 million (unrestricted net position) may be used to
meet the government's ongoing obligations to citizens and creditors.
• The government's total net position increased by $1.0 million. Governmental activities
accounted for $0.5 million of this increase and business -type activities accounted for $0.5
million of this increase. Further information can found on page 6.
• Governmental activities expenses reflected a 2.8% increase ($147.4 million in 2012 to $151.6
million in 2013) and business -type activities expenses reflected a 1.2% decrease ($48.9 million
in 2012 to $48.3 million in 2013). Further information can found on page 8.
• Unassigned fund balance for the general fund was $44.4 million, or an 8.8% decrease from the
prior year general fund unassigned balance of $48.7 million. Contributing to this decrease was
the $2.275 million in unassigned fund balance used to pay off a portion of the Spring Training
bonds and $1.565 loaned to the Golf Course Fund to call the balance of the Recreational
Revenue Bonds.
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 Position presents information on all of the County's assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position 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, 2013
The Statement of Activities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected grant revenue 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 (BCC),
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 19-21 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 35 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 29 governmental funds are combined
into a single, aggregated presentation.
4
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
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 101-151 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 22-33 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 153-157 of this report. The basic proprietary fund
financial statements can be found on pages 35-41 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 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 42-43 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 45-99 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 100 of this report.
5
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the County, assets and deferred outflows of resources exceeded liabilities by
$1,007.7 million at the close of the fiscal year.
Indian River County Net Position (In Millions)
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Total deferred outflows
Current liabilities
Other liabilities
Total liabilities
Governmental Business -type
Activities Activities
Total
2013 2012 2013 2012 2013 2012
$ 223.8 $ 228.8 $ 111.1 $ 108.7 $ 334.9 $ 337.5
556.4 553.4 251.3 257.3 807.7 810.7
780.2 782.2 362.4 366.0 1,142.6 1,148.2
2.5 2.8 2.5 2.8
2.5 2.8 2.5 2.8
23.8 21.3 13.7 13.5 37.5 34.8
49.0 54.0 50.9 55.5 99.9 109.5
72.8 75.3 64.6 69.0 137.4 144.3
Net position:
Net investment in capital assets 518.3 509.1 210.7 211.6 729.0 720.7
Restricted 117.3 121.2 20.9 17.9 138.2 139.1
Unrestricted 71.8 76.6 68.7 70.3 140.5 146.9
Total net position $ 707.4 $ 706.9 $ 300.3 $ 299.8 $ 1,007.7 $ 1,006.7
Overall, the County's net position increased $1.0 or less than 1%. Governmental and business -type
activities net position each increased by $0.5 million.
Governmental Activities
In governmental activities, the decrease in unrestricted net position was due to the early payoff of bonds
and the increase in net investment in capital assets and decrease in restricted net position was a result of
right of way purchases and construction of roads and beach restoration projects.
Business -type Activities
In business -type activities, the decrease in unrestricted net position was due to funds spent on
maintenance projects. The decrease in net investment in capital assets was due to depreciation expense.
The increase in restricted net position was due to increased water and sewer impact fee collections.
6
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
Indian River County Net Position (In millions)
September 30, 2012 and 2013
net investment in capital assets
restricted
unrestricted
0 100 200 300 400 500
600 700 800
■ 2012
■ 2013
By far, the largest portion of the County's net position (72% or $729.0 million) reflects its investment in
capital assets (e.g., land, buildings, infrastructure, intangibles, machinery, and equipment), less any
related outstanding 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.
A portion of the County's net position (14% or $138.2 million) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of the unrestricted net position
($140.5 million) may be used to meet the government's ongoing obligations to citizens and creditors.
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
Indian River County Changes in Net Position (In Millions)
Governmental Business -type
Activities Activities
Total
2013 2012 2013 2012 2013 2012
Revenues:
Program revenues:
Charges for services $ 18.2 $ 15.7 $ 43.6 $ 42.9 $ 61.8 $ 58.6
Operating grants/contributions 26.9 26.2 - - 26.9 26.2
Capital grants/contributions 6.7 7.1 4.7 2.5 11.4 9.6
General revenues:
Property taxes 67.0 70.3 - - 67.0 70.3
Sales taxes 21.0 20.1 - - 21.0 20.1
Franchise fees 8.8 8.6 - 8.8 8.6
Other 3.5 3.7 0.5 0.7 4.0 4.4
Total revenues 152.1 151.7 48.8 46.1 200.9 197.8
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 position before transfers
Transfers
Increase (decrease) in net position
20.6
66.2
1.9
26.3
2.5
6.8
19.4
5.8
2.1
151.6
19.1
66.5
2.4
23.7
2.0
7.7
18.1
5.6
2.3
33.8
10.4
2.5
1.6
147.4 48.3
34.3
10.7
2.4
1.5
48.9
0.5 4.3 0.5 (2.8)
(0.03) - 0.03
0.5 4.3 0.5 (2.8)
20.6 19.1
66.2 66.5
1.9 2.4
26.3 23.7
2.5 2.0
6.8 7.7
19.4 18.1
5.8 5.6
2.1 2.3
33.8 34.3
10.4 10.7
2.5 2.4
1.6 1.5
199.9 196.3
1.0 1.5
1.0 1.5
Net position - October 1, 2012 706.8 702.6 299.8 303.2 1,006.6 1,005.8
Adjustments to beginning net position 0.1 (0.1) - (0.6) 0.1 (0.7)
Net position - September 30, 2013 $ 707.4 $ 706.8 $ 300.3 $ 299.8 $ 1,007.7 $ 1,006.6
8
80
70
60
50
40
30
20
10
0
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
Revenues By Source (In Millions)
Governmental Activities
Fiscal Years 2012 and 2013
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Governmental Activities
• Overall program revenues increased $2.8 million.
FY 2012
• FY 2013
1) Charges for services increased by $2.5 million or 16%, due to an increase in ambulance
service charges ($0.8 million), impact fee collections ($1.0 million), and court revenues
previously required to be remitted to the State for distribution to County Clerk of Circuit
Courts ($0.7 million).
2) The remaining $0.3 million increase resulted from a $0.7 million increase in operating grants
and contributions revenue that was offset by a $0.4 million decrease in capital grant and
contribution revenues.
• Overall general revenues decreased by $2 4 million mainly due to decreased property tax values
and tax rates (reduction of $3 3 million or 5%) which was then offset by an increase in sales
taxes ($0.9 million or 4%).
9
70
60
50
40
30
20
10
0
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
Expenditures By Function (In Millions)
Governmental Activities
Fiscal Years 2012 and 2013
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FY 2012
m FY 2013
• The governmental activities expenses were $4.2 million higher in 2013 than in 2012. Major
increases included: $1.5 million in general government expenses due to the crime scene building
renovation and the jail fire alarm system, $2.6 million in transportation expenses mainly due to
the 66th Avenue road construction project and $1.3 million in culture and recreation due to the
write off of a portion of a beach restoration project due to its asset impairment caused by
Hurricane Sandy. The major decrease in human services expenses of $0.9 million was due to a
Medicaid settlement recorded in fiscal year 2012. Budget reductions resulted in an overall net
decrease of $0.3 million in public safety, physical environment, court related, and interest
expenses.
Business -type Activities
Business -type activities net position increased by $0.5 million. Key elements of this increase are as
follows:
• Overall program revenues increased $2.9 million.
1) Charges for services increased by $0.7 million or 2%. A gradual improvement in the local
economy has attributed to the following increases over 2012 revenues: water and sewer
charges increased by $0.1 million or less than 1%, solid waste revenues increased $0.4
million or 4%, and the building revenues increased by $0.3 million or 16%. These increases
were offset by a $0.1 million decrease in golf course revenues or 4% due to lower tourism in
the early part of the season.
10
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
2) Capital grants and contributions were $2.2 million higher in 2013 than in 2012, an overall
increase of 85%. This was largely due to a $0.7 million capital grant for the West Wabasso
Sewer Project and a $1.5 million increase in customer impact fee contributions from 2012 to
2013 in the water and sewer fund.
• Interest earnings decreased by $0.2 million or 28% from the preceding year due to lower interest
rates.
• Overall expenses were $0.6 million or 1% lower in 2013 than in 2012. The water and sewer
utilities expenses were $0.5 million or 1% lower in 2013 than in 2012 due to a prior year loss on
capital asset sales and lower bond interest expenses. The solid waste expenses were $0 3 million
or 3% lower in 2013 than in 2012 due to reduced engineering costs. The golf course had $0.1
million or 4% higher expenses in 2013 than in 2012 due to maintenance projects completed
during the fiscal year. The building department had $0.1 million or 7% higher expenses in 2013
than in 2012 due to staffing increases.
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.
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 25% of this total amount ($44.0 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 ($1.3 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
($113.5 million), 3) a committed category for constraints imposed by approval of ordinances and
contracts by Board of County Commissioners ($3.9 million), and 4) an assigned category for constraints
by the County's intent to use for specific purposes ($9.9 million).
The two largest restricted amounts are in the Impact Fees Fund with a $17.0 million restricted fund
balance and the Optional Sales Tax Fund with a $52.4 million restricted fund balance. Fifty-eight
percent of the Impact Fees Fund ($9.9 million) and fifty percent ($25.6 million) of the Optional Sales
Tax Fund is slated for major road expansions throughout the County.
The County's governmental funds reported a combined fund balance of $172.6 million, which is a
decrease of $11.3 million over the prior year of $183.9 million. Contributing factors to the $1 1.3
million decrease in fund balance are:
11
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
• Fund balance in the General Fund decreased by $4.5 million. This decrease was mainly due to
the payoff of a portion of the Spring Training Bonds ($2.3 million), delayed transportation grant
reimbursements ($1.1 million), and decreased property tax revenues.
• Fund balance in the Emergency Services District Fund decreased by $2.5 million, largely the
result of decreased revenue from property tax values and interest income.
• In the Impact Fees Fund, fund balance decreased $6.1 million. This was largely due to the $7.0
million in transportation spending for major road construction and right-of-way purchases.
• Fund balance in the Optional Sales Tax Fund increased by $2.0 million due to budgeted projects
not yet completed.
Proprietary funds
Unrestricted net position at the end of the year amounted to $12.5 million in the Solid Waste Disposal
District (SWDD) Fund, ($1.4) million in the Golf Course Fund, $4.6 million in the County Building
Fund, and $52.9 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 $8 million increase in appropriations between the original and final
amended budget. The main components are as follows:
• $4,303,610 grants appropriations and prior year rollovers for the Senior Resource Association to
provide County -wide public transportation.
• $2,275,000 to call a portion of the Spring Training Bonds, Series 2001.
• $189,334 Local Jobs Grants
• $156,073 Homeland Security Grants
Actual revenues exceeded final budget by $1.5 million for the following reasons:
• $613,016 Ad Valorem actual at 96.5% - budgeted at 95%
• $328,199 Half Cent Sales Tax exceeded budgeted amount
Actual expenditures were $2.7 million lower than anticipated for the following reasons:
• $601,346 Senior Resource Association capital budgeted but not expended
• $558,071 in reserves not fully expended
• $292,672 in Medicaid invoices backlogged for two months
• $255,055 in contractual services expenses lower than expected
• $243,536 lower than expected communication expenses due to new towers installed mid -year
• $198,332 lower than expected Tax Collector expenses
12
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and
Actual is shown on page 29.
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, 2013, amounts to $807.7 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%.
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Governmental Business -type
Activities Activities
Total
2013 2012 2013 2012 2013 2012
Land $ 140.7 $ 139.6 $ 27.3 $ 27.3 $ 168.0 $ 166.9
Right-of-way 55.7 54.7 - - 55.7 54.7
Buildings and improvements 146.7 149.0 207.2 220.1 353.9 369.1
Equipment 23.7 26.3 1.6 1.6 25.3 27.9
Intangibles 1.7 1.7 1.8 1.8 3.5 3.5
Infrastructure 150.9 153.9 - - 150.9 153.9
Construction in progress 37.0 28.2 13.4 6.5 50.4 34.7
Total $ 556.4 $ 553.4 $ 251.3 $ 257.3 $ 807.7 $ 810.7
Governmental activities had the following major increases during the fiscal year:
• An increase in construction in progress primarily due to the following continuing project costs:
South County Multi -Purpose Fields ($1.9 million) and the 66th Avenue road expansion project
from SR60 to 49th Street ($7.3 million) and from 12th Street to 4th Street ($4.1 million).
Business -type activities had the following major increases during the fiscal year:
• An increase in construction in progress was due to the following continuing project costs: the
Oslo Customer Convenience Center ($2.2 million), Segment 3 Lateral Expansion Project ($1.7
million), the West Wabasso Gravity Sewer Project ($0.9 million), the Osprey Marsh Project
($0.5 million) and the West Regional Wastewater Treatment Plant Odor Improvements Project
($0.5 million).
13
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
Capital Assets, Net
Total Primary Government
September 30, 2013
• Land
• Right of Way
• Buildings and Improvements
• Equipment
• Intangibles
• Infrastructure
Construction In Progress
Additional information on the County's capital assets can be found in Note 6 on pages 68-70 of this
report.
Debt Administration — Long-term debt
At the end of the current fiscal year, the County had total bonded debt outstanding of $81.1 million. Of
this amount, $30.0 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)
Governmental Business -type
Activities Activities Total
General Obligation Debt: 2013 2012 2013 2012 2013 2012
Limited General Oblig., Series 2006 $ 30.0 $ 33.2 $ - $ $ 30.0 $ 33.2
Revenue Bonds:
Spring Training Facility, Series 2001 8.1 11.1 8.1 11.1
Recreational Revenue Ref., Series 2003 - - 2.1 2.1
Water and Sewer Ref. Rev., Series 2005 - - 18.0 19.6 18.0 19.6
Water and Sewer Ref. Rev., Series 2009 25.0 26.8 25.0 26.8
Total $ 38.1 $ 44.3 $ 43.0 $ 48.5 $ 81.1 $ 92.8
14
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
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".
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 76-84 of this
report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The County has been making adjustments to account for reduced revenues for the previous six years.
The proposed budget for FY 2013/14 includes a moderate increase in total property taxes for the first
time since fiscal year 2006/07. The County tax roll is increasing by approximately 1.4% from last
year. While the tax roll is still substantially below the peak in 2007, this marks an increase in ad
valorem revenues. In accordance with the County's fund balance policy and sound fiscal practices, staff
recommends that the County begin phasing out the use of fund reserves to help balance the budget. This
change along with increasing Florida Retirement System (FRS) rates and Constitutional Officer
increases have resulted in the recommended ad valorem increases for FY 2013/14.
The General Fund and Emergency Services District millage rates are increasing in order to address
rising costs and the phase-out of fund balance usage. The Municipal Services Taxing Unit Fund millage
rate remains the same as the current year and the Land Acquisition Fund millage is decreasing slightly.
After accounting for the ad valorem increases proposed, the County's total ad valorem taxes are still
down over $29 million since FY 2006/07 (from $103.3 million to $74 million).
In an effort to hold the line on taxes, BCC departments, Constitutional Officers, and outside agencies
were asked to maintain budgets at or below the level for the previous year. The BCC departments have
met this goal, as well as the Clerk of the Circuit Court and Comptroller. However, the Sheriff, Property
Appraiser, Tax Collector and Supervisor of Elections all requested budget increases.
The total proposed budget is $255,107,975, a decrease of $36,684,220 or 12.6% from the current year.
This represents a drop of 46.0% from the approved FY 2006/07 amount of $472,420,328.
The single greatest individual expense in the budget is Personnel Services. In total, four (4) additional
full-time (FT) positions are proposed for FY 13/14. BCC departments are increasing by three (3) full-
time positions, while Constitutional Officers show a net increase of one (1) position. This results in an
additional cost of $128,616 (BCC only). Two of the three positions are in non -taxing funds.
The proposed budget includes a contingency for a potential (modest) salary increase for BCC
employees. Staff is currently negotiating contracts for next fiscal year with the two collective
bargaining units (Teamsters and IAFF). If union negotiations result in raises, the proposed agreements
will be submitted to the BCC for final approval.
Staff proposes a slight increase in SWDD assessment rates. Four (4) of the County's nineteen (19) street
lighting and drainage Municipal Services Benefit Unit funds reflect a rate increase. Otherwise, no
increases in rates or fees are proposed for the upcoming fiscal year.
15
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2013
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
1801 27th Street
Vero Beach, FL 32960
16
BASIC FINANCIAL STATEMENTS
17
18
Indian River County, Florida
Statement of Net Position
September 30, 2013
Primary Government
Governmental Business -type
Activities Activities
Total
ASSETS
Current assets:
Cash and cash equivalents $ 196,460,153 $ 59,613,712 $ 256,073,865
Investments 837,078 837,078
Accounts receivable - net 1,123,458 2,690,015 3,813,473
Internal balances 1,652,243 (1,652,243) -
Due from other governments 15,932,575 11,000 15,943,575
Interest receivable 274,525 567,949 842,474
Inventories 241,168 903,988 1,145,156
Prepaid expenses 1,325,011 219,152 1,544,163
Current restricted assets:
Cash and cash equivalents 5,432,485 43,682,848 49,115,333
Total current assets 223,278,696 106,036,421 329,315,117
Non-current assets:
Net other postemployment benefits asset 300,606 - 300,606
Capital assets - non -depreciable 237,834,350 42,133,928 279,968,278
Capital assets - depreciable 567,627,376 431,355,241 998,982,617
Capital assets - accumulated depreciation (249,073,518) (222,202,427) (471,275,945)
Non-current restricted assets:
Special assessments receivable 298,361 837,768 1,136,129
Impact fees receivable 1,069,667 1,069,667
Liens receivable 3,155,552 3,155,552
Total non-current assets 556,987,175 256,349,729 813,336,904
Total assets 780,265,871 362,386,150 1,142,652,021
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refundings
Total deferred outflows of resources
2,506,911 2,506,911
2,506,911 2,506,911
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 9,221,578 3,326,581 12,548,159
Retainage payable - 218,329 218,329
Claims payable 2,197,855 2,197,855
Due to other governments 830,466 2,850,115 3,680,581
Other deposits held in escrow 101,536 1,000 102,536
Unearned revenues 259,013 30,744 289,757
Accrued compensated absences 5,648,031 616,316 6,264,347
Pollution remediation costs payable 120,190 5,167 125,357
Current liabilities (payable from current restricted assets):
Accounts payable 106,718 106,718
Retainage payable 1,390,920 26,557 1,417,477
Accrued interest payable 341,565 161,454 503,019
Customer deposits - 2,983,394 2,983,394
Bonds payable 3,700,000 3,350,000 7,050,000
Total current liabilities 23,811,154 13,676,375 37,487,529
Non-current liabilities:
Accrued compensated absences 5,656,718 198,316 5,855,034
Pollution remediation costs payable 2,607,210 5,333 2,612,543
Claims payable 5,876,145 - 5,876,145
Due to other governments 474,260 - 474,260
Closure and maintenance costs payable - 11,011,736 11,011,736
Bonds payable, net of premium and discount 34,432,489 39,670,793 74,103,282
Total non-current liabilities 49,046,822 50,886,178 99,933,000
Total liabilities 72,857,976 64,562,553 137,420,529
NET POSITION
Net investment in capital assets 518,255,719 210,772,860 729,028,579
Restricted for:
Transportation/road projects 25,856,763 - 25,856,763
Public safety 15,147,917 15,147,917
Court related costs 3,362,563 3,362,563
Housing assistance 1,253,616 - 1,253,616
Capital projects 53,881,701 20,871,037 74,752,738
Beach renourishment 6,174,870 - 6,174,870
Culture/recreation 7,343,966 7,343,966
Debt service 2,288,289 2,288,289
Environmental conservation/preservation 212,171 212,171
Special assessment projects 1,799,899 - 1,799,899
Unrestricted 71,830,421 68,686,611 140,517,032
Total net position $ 707,407,895 $ 300,330,508 $ 1,007,738,403
The accompanying notes are an integral part of the fmancial statements.
19
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, 2013
Expenses
$ 20,637,750 $
66,178,467
1,858,307
26,286,998
2,550,157
6,818,023
19,369,326
5,835,184
2,087,204
Program Revenues
Charges for
Services
Operating
Grants and
Contributions
5,482,814 $ 12,452,713 $
6,625,924 1,385,495
5,900 -
2,768,107 6,023,308
938,486
213,485 3,313,327
1,765,912 285,843
1,301,135 2,522,342
Capital
Grants and
Contributions
152,520
6,343,966
184,935
151,621,416 18,163,277 26,921,514 6,681,421
33,815,749 28,522,667
10,405,143 9,998,410
2,537,525 3,072,332
1,547,815 2,018,104
48,306,232 43,611,513
4,700,473
4,700,473
$ 199,927,648 $ 61,774,790 $ 26,921,514 $ 11,381,894
General Revenues:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees, levied on gross receipts
Interest earnings
Miscellaneous
Total general revenues
Change in net position
Net position - beginning, as restated (Note 21C)
Net position - ending
The accompanying notes are an integral part of the financial statements.
20
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental
Activities
(2,549,703) $
(58,167,048)
(1,852,407)
(11,151,617)
(1,611,671)
(3,291,211)
(17,132,636)
(2,011,707)
(2,087,204)
(99,855,204)
(99,855,204)
62,305,177
4,664,885
21,035,360
8,818,952
637,099
2,903,771
100,365,244
510,040
706,897,855
707,407,895
Business -type
Activities
(592,609)
(406,733)
534,807
470,289
5,754
5,754
427,041
37,812
464,853
470,607
299,859,901
$ 300,330,508
Total
$ (2,549,703)
(58,167,048)
(1,852,407)
(11,151,617)
(1,611,671)
(3,291,211)
(17,132,636)
(2,011,707)
(2,087,204)
(99,855,204)
(592,609)
(406,733)
534,807
470,289
5,754
(99,849,450)
62,305,177
4,664,885
21,035,360
8,818,952
1,064,140
2,941,583
100,830,097
980,647
1,006,757,756
$ 1,007,738,403
21
ASSETS
Cash and cash equivalents
Investments
Accounts receivable - net
Special assessments receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaid items
Advances to other funds
Total assets
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Other deposits
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments
Total deferred inflows of resources
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2013
General
Secondary
Impact Roads
Fees Construction
48,254,145 $ 17,916,841 $ 14,399,563
837,078 - -
981,653
1,412,853 - -
1,295,110 107,486 287,929
19,165 6,858 5,558
39,598 - -
72,810
1,112,427
54,024,839 $ 18,031,185 $ 14,693,050
2,805,482 $ 386,800 $ 1,501,314
565,049 81,742
393,334 -
609,168 63,216
234,731 - -
101,536
4,144,251 1,015,065 1,583,056
FUND BALANCES
Nonspendable:
Inventories 39,598
Prepaid items 72,810
Advances to other funds 1,112,427 -
Restricted for:
Transportation/road improvements 9,954,310 13,109,994
Court -related costs and improvements -
Housing assistance -
Law enforcement/public safety 499,166
Fire/emergency services 1,228,245
Tourism -related activites -
Beach renourishment
Boating related projects -
Library services 590,970
Land acquisition -
Stormwater, street lighting, and other special assessments
Debt service -
Capital projects 1,411,963
Dodgertown repairs/improvements
Solid waste projects - 25,875
Parks/recreational projects 1,000,000 3,305,591
Committed to:
Economic incentives 2,323,013
Environmental conservation/preservation
Law enforcement/public safety 3,832
Parks/recreational projects 43,234
Assigned to:
Subsequent year's budget appropriation of fund balance 900,000
Law enforcement/public safety -
Transportation/road improvements -
Unassigned 44,385,674
Total fund balances 49,880,588 17,016,120 13,109,994
Total liabilities, deferred inflows and fund balances $ 54,024,839 $ 18,031,185 $ 14,693,050
The accompanying notes are an integral part of the financial statements.
22
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
8,467,140 $ 9,746,508 $ 45,471,581 $ 23,103,144 $ 167,358,922
- - 837,078
156 3,296 4,120 989,225
298,361 - - 298,361
- 226,983 - 65,314 1,705,150
230,683 10,413,615 371,946 12,706,769
145,257 4,009 17,662 6,734 205,243
- - 24,610 64,208
10,645 15,533 98,988
- - 1,112,427
9,141,597 $ 9,991,441 $ 55,902,858 $ 23,591,401 $ 185,376,371
336,901 $ 589,926 $ 2,744,699 $ 737,029 $ 9,102,151
2,624 - 714,296 27,209 1,390,920
455,000 848,334
- 672,384
1,750 18,920 - 3,612 259,013
- - 101,536
341,275 608,846 3,458,995 1,222,850 12,374,338
440,587 - 440,587
440,587 440,587
10,645
24,610
15,533
64,208
98,988
1,112,427
23,064,304
3,326,242 3,326,242
1,193,022 1,193,022
3,491,312 3,990,478
8,871,950 - 10,100,195
356,409 356,409
5,986,911 5,986,911
1,140,627 1,140,627
99,168 690,138
212,171 212,171
1,799,899 1,799,899
2,629,854 2,629,854
52,443,863 - 53,855,826
846,201 846,201
25,875
4,305,591
1,103,200
378,112
500,000
104,503
8,359,735 -
(339,223)
8,359,735 9,382,595 52,443,863 22,368,551
$ 9,141,597 $ 9,991,441 $ 55,902,858 $ 23,591,401 $
23
2,323,013
1,103,200
381,944
43,234
1,400,000
104,503
8,359,735
44,046,451
172,561,446
185,376,371
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
September 30, 2013
Total governmental fund balances: $ 172,561,446
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported 556,174,809
in the fund.
Long-term liabilities, including bonds payable ($38,132,489), accrued compensated absences ($11,250,922),
medicaid settlement funds payable ($632,342) and accrued pollution remediation costs ($2,727,400)
are not due and payable in the current period and, therefore, are not reported in the fund. (52,743,153)
Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported in (341,565)
the fund.
Special assessment receivables are not available to pay for current period expenditures and, therefore, are
reported as unavailable revenue in the funds. 440,587
Accrued interest on special assessments is not recognized in the current period because the resources are
not available and, therefore, not reported in the fund. 47,564
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 position.
Grant revenues are not recognized in the current period because the resources are not available and,
therefore, are not reported in the fund.
The OPEB asset resulting from contributions in excess of the annual required contribution is not a financial
resource and, therefore, is not reported in the funds.
27,854,227
3,113,374
300,606
Net position of governmental activities $ 707,407,895
The accompanying notes are an integral part of the financial statements.
24
25
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2013
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
General
Secondary
Impact Roads
Fees Construction
46,721,964 $ - $ 3,303,751
9,010,223 3,214,992 91,136
16,747,325 726,779 1,745,127
8,750,267 - -
345,320 - -
181,776 60,387 42,234
996,578 184,518 687,249
82,753,453 4,186,676 5,869,497
EXPENDITURES
Current:
General government 17,454,089 260,520 -
Public safety 39,425,892 1,142,356 -
Physical environment 235,111 - -
Transportation 4,685,702 6,961,531 5,432,749
Economic environment 368,786 - -
Human services 3,625,268 -
Culture/recreation 7,972,993 1,613,204
Court related 5,262,432 - -
Debt service:
Principal - - -
Interest and fiscal charges - - -
Capital projects - - -
Total expenditures 79,030,273 9,977,611 5,432,749
Excess of revenues over (under) expenditures 3,723,180 (5,790,935) 436,748
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
1,706,554
(9,886,193)
(321,031)
(8,179,639) (321,031)
Net change in fund balances (4,456,459) (6,111,966) 436,748
Fund balances at beginning of year,
as restated (Note 19D) 54,337,047
Fund balances at end of year
23,128,086 12,673,246
$ 49,880,588 $ 17,016,120 $ 13,109,994
The accompanying notes are an integral part of the financial statements.
26
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
- $ 17,146,131 $ 14,422,829 $ 6,410,747 $ 88,005,422
132,937 - 45,568 274,988 12,769,844
2,719,157 60,620 1,392,962 6,694,509 30,086,479
117,224 5,488,112 - 1,531,638 15,887,241
- 11,600 - 421,655 778,575
36,824 45,571 138,786 64,981 570,559
806,299 16,296 416,131 734,223 3,841,294
3,812,441 22,768,330 16,416,276 16,132,741 151,939,414
267,631 - - 1,074,082 19,056,322
- 24,968,230 - 1,371,850 66,908,328
474,551 - - 62,280 771,942
10,914,008 - - 229,239 28,223,229
- - - 2,212,615 2,581,401
- - - 3,327,192 6,952,460
- - - 1,952,612 11,538,809
- - - 792,390 6,054,822
- - 6,050,000 6,050,000
- 2,118,704 2,118,704
13,037,552 - 13,037,552
11,656,190 24,968,230 13,037,552 19,190,964 163,293,569
(7,843,749)
(2,199,900) 3,378,724
(3,058,223) (11,354,155)
7,459,882 3,338,263 12,504,699
(336,797) (1,417,655) (578,511) (12,540,187)
7,459,882
(383,867)
8,743,602
(336,797) (1,417,655)
(2,536,697) 1,961,069
11,919,292 50,482,794
2,759,752 (35,488)
(298,471) (11,389,643)
22,667,022 183,951,089
$ 8,359,735 $ 9,382,595 $ 52,443,863 $ 22,368,551 $ 172,561,446
27
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, 2013
Net change in fund balances - total governmental funds $ (11,389,643)
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 26,899,512
Less current year loss on assets (554,631)
Less current year depreciation (24,648,996) 1,695,885
Governmental funds do not report capital assets contributed from outside the
entity. However, those assets are recognized in the statement of net position
and the capital contribution is recognized in the statement of activities.
1,478,378
Payments of bond principal, pollution remediation, and medicaid settlement costs are
expenditures in the governmental funds, but the payment reduces long-term liabilities
in the statement of net position.
Bond principal payment 6,050,000
Bond premium payment 93,225
Medicaid settlement 158,092
Pollution remediation costs (114,400) 6,186,917
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. (297,240)
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
Accrued OPEB expense
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 position of governmental activities
31,500
(21,075)
The accompanying notes are an integral part of the financial statements.
28
10,425
(12,145)
974,656
1,890,833
(28,026)
$ 510,040
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2013
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
Budgeted Amounts
Original Final
$ 45,900,567 $
8,399,900
12,659,093
10,974,052
292,790
266,975
467,252
78,960,629
17,434,337
38,316,739
256,204
786,859
369,164
3,959,071
7,844,612
4,268,141
73,235,127
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
45,900,566 $ 46,721,964 $ 821,398
8,399,900 9,010,223 610,323
16,638,146 16,747,325 109,179
8,952,853 8,750,267 (202,586)
292,790 345,320 52,530
266,975 181,776 (85,199)
790,392 996,578 206,186
81,241,622 82,753,453 1,511,831
18,444,870
39,622,379
293,453
5,170,966
371,657
4,008,633
8,438,476
5,364,613
81,715,047
Excess of revenues over (under) expenditures 5,725,502 (473,425)
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
193,141
(10,253,681)
(10,060,540)
(4,335,038)
4,335,038
1,882,999
(9,886,193)
(8,003,194)
(8,476,619)
8,476,619
17,454,089
39,425,892
235,111
4,685,702
368,786
3,625,268
7,972,993
5,262,432
79,030,273
3,723,180
1,706,554
(9,886,193)
990,781
196,487
58,342
485,264
2,871
383,365
465,483
102,181
2,684,774
4,196,605
(176,445)
(8,179,639) (176,445)
(4,456,459) $ 4,020,160
54,337,047
$ 49,880,588
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
Impact Fees Fund
For the Year Ended September 30, 2013
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 1,684,872 $ 1,684,872 $ 3,214,992 $ 1,530,120
Intergovernmental - 265,000 726,779 461,779
Interest 117,750 117,750 60,387 (57,363)
Miscellaneous - 184,518 184,518
Total revenues 1,802,622 2,067,622 4,186,676 2,119,054
EXPENDITURES
Current:
General government 748,164 573,623 260,520 313,103
Public safety 190,000 2,889,868 1,142,356 1,747,512
Physical environment 26,000 26,000 26,000
Transportation 5,260,613 10,747,366 6,961,531 3,785,835
Culture/recreation 2,865,455 5,080,360 1,613,204 3,467,156
Total expenditures 9,090,232 19,317,217 9,977,611 9,339,606
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
(7,287,610) (17,249,595) (5,790,935) 11,458,660
(321,031) (321,031)
(321,031) (321,031)
Net change in fund balances (7,287,610) (17,570,626) (6,111,966) $ 11,458,660
Fund balances at beginning of year 7,287,610 17,570,626 23,128,086
Fund balances at end of year $ $ - $ 17,016,120
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
Secondary Roads Construction Fund
For the Year Ended September 30, 2013
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 3,168,250 $ 3,168,250 $ 3,303,751 $ 135,501
Permits, fees and special assessments 69,156 91,136 21,980
Intergovernmental 2,372,673 1,745,127 (627,546)
Interest 52,250 52,250 42,234 (10,016)
Miscellaneous 687,249 687,249
Total revenues 3,220,500 5,662,329 5,869,497 207,168
EXPENDITURES
Current:
Transportation 6,655,887 11,390,304
Total expenditures 6,655,887 11,390,304
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
5,432,749 5,957,555
5,432,749 5,957,555
(3,435,387) (5,727,975) 436,748 $ 6,164,723
3,435,387
5,727,975 12,673,246
$ $ 13,109,994
The accompanying notes are an integral part of the financial statements
31
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Transportation Fund
For the Year Ended September 30, 2013
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
$ 118,750 $
2,251,500
96,425
49,875
834,850
3,351,400
269,600
581,708
11,229,974
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
118,750 $ 132,937 $ 14,187
2,471,500 2,719,157 247,657
96,425 117,224 20,799
49,875 36,824 (13,051)
836,425 806,299 (30,126)
3,572,975 3,812,441 239,466
273,039
611,784
12,003,916
12,081,282 12,888,739
(8,729,882) (9,315,764)
7,459,882 7,459,882
7,459,882 7,459,882
(1,270,000) (1,855,882)
267,631
474,551
10,914,008
11,656,190
5,408
137,233
1,089,908
1,232,549
(7,843,749) 1,472,015
7,459,882
7,459,882
(383,867) $ 1,472,015
1,270,000 1,855,882
$ - $
8,743,602
- $ 8,359,735
The accompanying notes are an integral part of the financial statements.
32
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Public safety
Total expenditures
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, 2013
Budgeted Amounts
Original Final
$ 16,908,731 $
38,000
4,506,325
950
87,875
19,371
21,561,252
24,681,406
24,681,406
Excess of revenues over (under) expenditures (3,120,154)
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
(395,018)
(395,018)
(3,515,172)
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
16,908,731 $ 17,146,131 $ 237,400
77,936 60,620 (17,316)
4,656,325 5,488,112 831,787
950 11,600 10,650
87,875 45,571 (42,304)
20,732 16,296 (4,436)
21,752,549 22,768,330 1,015,781
25,878,175
25,878,175
(4,125,626)
(395,018)
(395,018)
(4,520,644)
24,968,230
24,968,230
909,945
909,945
(2,199,900) 1,925,726
(336,797)
(336,797)
58,221
58,221
(2,536,697) $ 1,983,947
3,515,172
$ $
4,520,644
11,919,292
$ 9,382,595
The accompanying notes are an integral part of the financial statements.
33
34
Indian River County, Florida
Statement of Fund Net Position
Proprietary Funds
September 30, 2013
Business -type Activities - Enterprise Funds
Solid Waste
Disposal Golf County County
District Course Utilities Building
Total
Governmental
Activities
Internal
Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 10,588,272 $ 458,535 $ 43,832,875 $ 4,734,030 $ 59,613,712 $ 34,533,716
Accounts receivable - net 156,657 - 2,533,358 - 2,690,015 134,233
Due from other funds 101,037 - - - 101,037 -
Due from other governments - 11,000 - 11,000 112,432
Interest receivable 9,758 423 554,613 3,155 567,949 21,718
Inventories - 55,083 848,905 - 903,988 176,960
Prepaid items - 595 218,557 - 219,152 1,226,023
Current restricted assets:
Cash and cash equivalents 14,295,593 29,387,255 43,682,848
Total current assets 25,151,317 525,636 77,375,563 4,737,185 107,789,701 36,205,082
Non-current assets:
Capital assets - non -depreciable 22,726,813 6,705,768 12,701,347 42,133,928 -
Capital assets - depreciable 21,813,929 2,353,176 406,820,447 367,689 431,355,241 1,125,695
Capital assets - accumulated depreciation (9,528,840) (1,873,546) (210,462,840) (337,201) (222,202,427) (912,296)
Non-current restricted assets:
Special assessments receivable - - 837,768 - 837,768 -
Impact fees receivable - - 1,069,667 - 1,069,667
Liens receivable - 3,155,552 3,155,552 -
Totalnon-currentassets 35,011,902 7,185,398 214,121,941 30,488 256,349,729 213,399
Total assets 60,163,219 7,711,034 291,497,504 4,767,673 364,139,430 36,418,481
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refundings - - 2,506,911 - 2,506,911
Total deferred outflows of resources - - 2,506,911 - 2,506,911
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,360,470 41,868 1,881,612 42,631 3,326,581 119,427
Retainage payable 79,755 138,574 218,329
Due to other funds - 640,853 - 640,853 317,000
Claims payable - - - - - 2,197,855
Due to other governments - 7,287 2,827,524 15,304 2,850,115 -
Other deposits - 1,000 1,000 -
Uneamedrevenues - 30,744 - - 30,744 -
Pollutionremediationpayable - - 5,167 - 5,167 -
Accrued compensated absences 36,864 20,742 503,212 55,498 616,316 31,993
Total current liabilities (payable from current assets) 1,477,089 742,494 5,356,089 113,433 7,689,105 2,666,275
Current liabilities (payable from restricted assets):
Accounts payable - - 106,718 - 106,718
Retainage payable - - 26,557 - 26,557
Accrued interest payable - - 161,454 - 161,454
Bonds payable - - 3,350,000 - 3,350,000
Customer deposits 131,126 - 2,852,268 - 2,983,394
Total current liabilities (payable from restricted assets) 131,126 6,496,997 - 6,628,123
Total current liabilities 1,608,215 742,494 11,853,086 113,433 14,317,228 2,666,275
Non-current liabilities:
Accrued compensated absences 2,163 31,396 129,168 35,589 198,316 21,834
Advance from other funds - 1,112,427 1,112,427
Claims payable - - - 5,876,145
Pollution remediation payable - - 5,333 - 5,333
Closure and maintenance costs payable 11,011,736 - - - 11,011,736
Bonds payable - net of unamortized discount/premium - - 39,670,793 - 39,670,793
Total non-current liabilities 11,013,899 1,143,823 39,805,294 35,589 51,998,605 5,897,979
Total liabilities 12,622,114 1,886,317 51,658,380 149,022 66,315,833 8,564,254
NET POSITION
Net investment in capital assets 35,011,902 7,185,398 168,545,072 30,488 210,772,860 213,399
Restricted for:
Capital projects - - 20,871,037 - 20,871,037
Unrestricted 12,529,203 (1,360,681) 52,929,926 4,588,163 68,686,611 27,640,828
Total net position $ 47,541,105 $ 5,824,717 $ 242,346,035 $ 4,618,651 $ 300,330,508 $ 27,854,227
The accompanying notes are an integral part of the financial statements.
35
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2013
Business -type Activities -
Solid Waste
Disposal Golf
District Course
OPERATING REVENUES
Charges for services $ 9,998,410 $ 3,072,332
Charges for services pledged as
security for revenue bonds
Total operating revenues 9,998,410 3,072,332
OPERATING EXPENSES
Personal services 505,556 497,147
Material, supplies, services and
other operating 9,058,346 1,704,741
Depreciation 840,661 122,648
Total operating expenses 10,404,563 2,324,536
Operating income (loss)
(406,153) 747,796
NONOPERATING REVENUES (EXPENSES)
Interest income 85,812 2,555
Interest income pledged as
security for revenue bonds -
Gain on disposal of equipment 430
Interest expense (87,645)
Bond amortization expense (125,344)
Loss on disposal of equipment (580) -
Total nonoperating revenues (expenses) 85,232 (210,004)
Income (loss) before transfers and
capital contributions
Capital contributions
Transfers
(320,921) 537,792
Change in net position (320,921) 537,792
Total net position - beginning
Total net position - ending
47,862,026 5,286,925
$ 47,541,105 $ 5,824,717
The accompanying notes are an integral part of the financial statements.
36
Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities
Internal
Service Funds
$ $ 2,018,104 $ 15,088,846 $ 22,224,942
28,522,667 28,522,667
28,522,667 2,018,104
43,611,513 22,224,942
7,352,824 1,082,207 9,437,734 1,870,705
9,935,957 456,907 21,155,951 19,366,204
14,424,758 8,701 15,396,768 144,452
31,713,539
1,547,815 45,990,453 21,381,361
(3,190,872) 470,289 (2,378,940) 843,581
13,473 101,840 94,566
325,201 325,201
37,382 37,812
(2,070,241) (2,157,886)
(24,209) (149,553)
(7,760) (8,340)
(1,739,627) 13,473
(4,930,499) 483,762
1,021
(1,850,926) 95,587
(4,229,866) 939,168
4,700,473 4,700,473
(230,026)
35,488
483,762 470,607 974,656
242,576,061 4,134,889 299,859,901 26,879,571
$ 242,346,035 $ 4,618,651 $ 300,330,508 $ 27,854,227
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2013
Business -type
Solid Waste
Disposal Golf
District Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,957,401 $ 3,073,524
Cash paid to suppliers for goods and services (9,173,152) (1,801,690)
Cash paid to employees for services (508,802) (488,044)
Net cash provided by (used in) operating activities 275,447 783,790
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers
Proceeds from advances from other funds - 1,564,999
Payments for advances from other funds (309,809)
Net cash provided by (used in) noncapital financing activities - 1,255,190
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes - (2,120,000)
Interest paid on long-term debt - (94,106)
Proceeds from sales of capital assets - 430
Purchase of capital assets (4,107,648) (23,410)
Bond paying agent fees
Capital contributed by others - Net cash provided by (used in) capital and related financing activities (4,107,648) (2,237,086)
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
85,662 2,570
85,662 2,570
(3,746,539) (195,536)
28,630,404 654,071
Cash and cash equivalents at end of year $ 24,883,865 $ 458,535
Classified as:
Current assets $ 10,588,272 $ 458,535
Restricted assets 14,295,593
Totals $ 24,883,865 $ 458,535
The accompanying notes are an integral part of the financial statements.
38
Activities - Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities
Internal
Service Funds
$ 28,731,963 $ 2,018,104 $ 43,780,992 $ 23,673,576
(8,660,180) (433,481) (20,068,503) (19,457,018)
(7,395,611) (1,090,111) (9,482,568) (1,861,848)
12,676,172 494,512 14,229,921 2,354,710
1,564,999
(309,809)
35,488
92,000
1,255,190 127,488
(3,205,000) (5,325,000)
(2,080,951) - (2,175,057) -
37,382 37,812 1,021
(3,523,222) (8,233) (7,662,513) (5,760)
(1,250) (1,250)
2,705,139 - 2,705,139 -
(6,067,902) (8,233) (12,420,869) (4,739)
296,576 12,423 397,231 88,762
296,576 12,423 397,231 88,762
6,904,846 498,702 3,461,473 2,566,221
66,315,284 4,235,328 99,835,087 31,967,495
$ 73,220,130 $ 4,734,030 $ 103,296,560 $ 34,533,716
$ 43,832,875 $ 4,734,030 $ 59,613,712 $ 34,533,716
29,387,255 43,682,848 -
$ 73,220,130 $ 4,734,030 $ 103,296,560 $ 34,533,716
Continued
39
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2013
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
Capitalized self -incurred expenses
(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
Business -type Activities -
Solid Waste
Disposal Golf
District Course
(406,153) $ 747,796
840,661
122,648
(42,837)
(2,672)
100
1,590
Increase (Decrease) in liabilities:
Accounts payable (612,806)
Due to other governments -
Retainage payable -
Customer deposits 4,500
Closure and maintenance costs payable 498,000
Pollution remediation costs payable -
Unearned revenues -
Accrued compensated absences (3,246)
Total adjustments
(595)
(97,460)
(484)
1,092
9,103
681,600 35,994
Net cash provided by (used in) operating activities $ 275,447 $ 783,790
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 6,829 $
Contributed property, infrastructure and equipment $ - $
Capital assets purchased through accounts payable $ 86,302 $
The accompanying notes are an integral part of the financial statements.
40
296
Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities
Internal
Service Funds
$ (3,190,872) $ 470,289 $ (2,378,940) $ 843,581
14,424,758
(2,329)
330,621
4,331
44,901
(335,987)
(36,039)
169,652
(6,699)
1,220,991
(6,422)
14,884
83,140
1,700
(40,458)
8,701
22,668
758
(7,904)
15,396,768 144,452
(2,329)
287,784 1,434,102
(2,672) -
4,431 14,532
46,491 41,236
(335,987) -
(36,039) -
169,652 -
(7,294) (48,585)
533,393 (83,465)
(6,148) -
14,884 -
87,640
498,000 -
1,700 -
1,092 -
(42,505) 8,857
15,867,044 24,223 16,608,861 1,511,129
$ 12,676,172 $ 494,512 $ 14,229,921 $ 2,354,710
$ 31,396 $
$ 1,705,822 $
$ 814,080 $
2,208 $ 40,729 $ 15,200
- $ 1,705,822 $ -
8,233 $ 908,615 $ -
Indian River County, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2013
Agency
ASSETS
Cash and cash equivalents $ 13,157,483 $
Investments, at fair value:
Surplus Funds Trust Fund - Fund B 43,708 -
Index funds - 5,839,900
U.S. government securities funds - 4,805,380
Prime money market fund - 926,688
Other
Postemployment
Benefits Trust
Total assets $ 13,201,191 11,571,968
LIABILITIES
Accounts payable $ 388,991
Due to other governments 4,430,980
Other deposits held in escrow 8,381,220
Total liabilities $ 13,201,191
NET POSITION
Net position restricted for other
postemployment benefits 11,571,968
Total net position $ 11,571,968
The accompanying notes are an integral part of the financial statements.
42
Indian River County, Florida
Statement of Changes in Fiduciary Net Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2013
ADDITIONS
Employer contributions $ 2,965,251
Investment income 928,354
Investment expense (1,950)
Total additions 3,891,655
DEDUCTIONS
Benefits paid to participants
Total deductions
1,693,734
1,693,734
Change in net position 2,197,921
Net position - beginning 9,374,047
Net position - ending $ 11,571,968
The accompanying notes are an integral part of the financial statements.
43
44
Note
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
Page Note
1. Summary of Significant Accounting
Policies 46
Reporting Entity 46
Measurement Focus and
Basis of Accounting 47
Basis of Presentation 50
Assets, Liabilities, Deferred Outflows/
Inflows of Resources, and
Net Position or Fund Balances 52
Cash and Cash Equivalents 52
Investments 52
Allowance for Doubtful Accounts 52
Receivables and Payables 53
Inventories 53
Prepaid Items 53
Restricted Net Position 53
Capital Assets 54
Capitalization of Interest 55
Deferred Inflows/Outflows of
Resources 55
Unearned Revenues 55
Accrued Compensated Absences 55
Obligation for Bond Arbitrage
Rebate 56
Landfill Closure Costs 56
Unamortized Bond Discounts
and Premiums 56
Capital Contributions 56
2. Reconciliation of Government -wide
and Fund Financial Statements 57
3. Stewardship, Compliance and
Accountability 61
Budget and Budgetary Accounting61
4. Cash and Cash Equivalents 62
Deposits 62
Accrued Interest 62
Investments 62
OPEB Trust Investments 66
5. Property Tax Revenues 67
6. Capital Assets 68
45
Page
7. Restricted Cash and Cash Equivalents
and Investments 71
8. Payable from Restricted Assets 71
9. Interfund Balances 72
10. Interfund Transfers 73
11. Due from Other Governments 74
12. Accounts Payable 74
13. Long-term Liabilities 76
Changes in Long-term Liabilities 76
Governmental Activities 77
Annual Debt Service Payments —
Governmental Activities 77
Limited General Obligation Bonds 78
Spring Training Facility Revenue
Bonds 78
Business -type Activities 81
Annual Debt Service Payments —
Business -type Activities 81
Recreational Revenue Refunding
Bonds, Series 2003 82
Water and Sewer Revenue Refunding
Bonds, Series 2005 82
Water and Sewer Revenue Refunding
Bonds, Series 2009 83
Compensated Absences 84
14. Provision for Closure Costs 84
15. Pollution Remediation 86
16. Pension Plans -
Florida Retirement System 87
17. Other Postemployment Benefits Plan89
18. Operating Leases 92
19. Fund Balance 94
20. Fund Balance Deficit 96
21. Net Position 96
22. Risk Management 97
23. Commitments and Contingencies 98
Litigation 98
Contracts and Other
Commitments 98
Grants 99
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 139,586. 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
from 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.
46
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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, deferred outflows/inflows of resources,
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.
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.
47
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
1. Government -wide Financial Statements - Continued
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, deferred outflows
of resources, liabilities, deferred inflows of resources, fund balance, 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.
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.
48
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
Governmental Funds - Continued
Under the current financial resources measurement focus, only current assets, deferred outflows of
resources, and current liabilities and deferred inflows of resources 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 fund balance. 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 fund balances, 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.
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, deferred outflows of resources, liabilities and
deferred inflows of resources (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 position.
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 (for example, interest income). 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.
49
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
Proprietary Funds - Continued
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, deferred
outflows/inflows of resources, 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.
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 accounted for and reported 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.
50
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation - Continued
1. Governmental Major Funds - Continued
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.
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.
51
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation — Continued
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 Position.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances
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.
When restricted and unrestricted resources are available, expenses are paid first from restricted
resources.
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 (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 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, 2013, 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, 2013.
52
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
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 Golf Course 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.
7. Restricted Net Position
Certain resources of the County are classified as restricted net position on the statement of net position
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 net position, qualified expenses are
considered to be paid first from restricted net position and then from unrestricted net position. Further
information on the restrictions can be found in Note 21.
53
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
8. 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.
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 position.
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
54
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
9. 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.
10. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. Deferred outflows of resources represent a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The County reports the deferred charge on refundings in the amount
of $2,506,911 in this category on the government -wide statement of net position. A deferred charge on
refundings results from the difference in the carrying value of refunded debt and its reacquisition price.
This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position may report a separate section for deferred
inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies
to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The County only has one item, unavailable revenue, which arises under the modified accrual basis of
accounting and is reported on the governmental funds balance sheet in the amount of $440,587. The
source of the unavailable revenue is a special assessment on road paving. This amount is deferred and
recognized as an inflow of resources in the period that the amounts become available.
11. Unearned Revenues
Unearned revenues represent revenues, which are available but unearned. At September 30, 2013, the
total amount of unearned revenues reported on the statement of net position for the governmental
activities is $259,013 and for the business -type activities is $30,744.
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.
55
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - 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, 2013.
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 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.
16. 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 Position 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.
56
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 Position
"Total fund balances" of the County's governmental funds, $172,561,446 differs from "net position" of
governmental activities, $707,407,895, reported in the statement of net position. This difference
primarily results from the long-term economic focus of the statement of net position versus the current
financial resources focus of the governmental funds 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 position included those capital assets among the
assets of the County as a whole.
Cost of capital assets
Accumulated depreciation
Net Total
Long-term debt transactions
$ 804,336,031
( 248,161,222)
$ 556,174,809
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 position.
Balances at September 30, 2013 were:
Bonds payable:
Limited General Obligation Bonds, Series 2006 $ (29,265,000)
Spring Training Facility Bonds, Series 2001 (8,145,000)
Bond premium payable:
Limited General Obligation Bonds, Series 2006 (722,489)
Medicaid settlement payable (632,342)
Pollution remediation payable (2,727,400)
Compensated absences (11,250,922)
Total $ (52,743,153)
Accrued interest
Accrued liabilities in the statement of net position differs from the amount reported in governmental
funds due to accrued interest on the Limited General Obligation Bonds, Series 2006.
$ (341,565)
57
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 Position - Continued
Deferred Inflow of Resources — Unavailable Revenue
Deferred inflows of resources reported on the statement of net position 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 unavailable revenue, a deferred inflow of
resources. However, unavailable revenues in governmental funds are susceptible to full accrual on
government -wide financial statements.
Unavailable revenues $ 440,587
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 position because they primarily serve
governmental activities of the County.
Internal service funds $ 27,854,227
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 revenues $ 3,113,374
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 $ 47,564
Net OPEB Obligation
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 $ 300,606
Elimination of interfund receivables/payables
Interfund receivables and payables in the amount of $1,165,334 between governmental funds must be
eliminated for the statement of net position.
58
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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, ($11,389,643), differs from the "change in
net position" for governmental activities, $510,040 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 position decreases by the amount of depreciation expense charged for
the year.
Capital outlay $ 26,899,512
Depreciation expense (24,648,996)
Capital contributions 1,478,378
Loss on assets (554,631)
Difference $ 3,174,263
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 position and do not result in an expense in the statement of activities.
Bond principal payments made $ 6,050,000
Bond premium payments made 93,225
Medicaid settlement costs 158,092
Pollution remediation costs (114,400)
Total $ 6,186,917
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 $ (21,075)
Net accrued bond interest payable 31,500
Total $ 10,425
59
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 $ (297,240)
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 $ (12,145)
Internal service funds operating gain
The assets and liabilities of the internal service funds are included in governmental activities in the
statement of net position 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 $ 974,656
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 $ 1,890,833
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 $ (28,026)
Reclassification and Eliminations
The governmental funds recognize revenues in the amount of $2,441,286 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 $12,540,187 between governmental activities should be eliminated.
Capital projects costs in the amount of $13,037,552 must be distributed to the related expenditure
functions.
60
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. 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 Clerk Special Revenue Fund and the Supervisor of Elections Special Revenue
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.
61
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013, the carrying amount of the primary government's deposits was $34,802,592
and the bank balance was $37,351,435. 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. Cash on hand at September 30, 2013
was $26,639.
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, 2013, accrued interest for the County's portfolio totaled $193,392. The remaining
accrued interest is reflected in utilities and road paving assessments.
C. Investments
On November 5, 2013, the Board updated its 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 January 2013. The
Clerk adopted a formal investment policy on April 25, 2013.
62
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
As of September 30, 2013, the County had the following investments:
Investment Type
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
Certificate of Deposit
W&S Sinking Fund Reserve:
U.S. Treasuries
Fidelity Institutional Money Market
Total Fair Value
Fair Value
$ 107,038,012
48,012,190
38,987,528
15,993,511
14,989,340
57,289
312,596
10,978,126
13,050,363
12,090,687
16,683,111
250,473
253,565
250,473
5,437,742
13,230
$ 284,398,236
Weighted Average Maturity of Investments
Weighted
Average
Maturity Portfolio
InYears Percentage
1.17
1.22
0.72
1.07
1.38
Credit
Risks*
37.64 % N/A
16.88 AA+
13.71 AA+
5.62 AA+
5.27 AA+
0.08 0.02 AAAm
4.04 0.11 Not Rated
AAAf and
0.08 3.86 S-1**
0.08
0.08
0.08
1.08
1.76
2.00
1.00
0.08
0.92
4.59 N/A
4.25 N/A
5.87 AAAm
0.09 N/A
0.09 N/A
0.09 N/A
1.90 N/A
0.01 AAAm
100.00 %
* 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).
63
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013, the County had $275,993 invested in Fund B Surplus Funds Trust Fund (Fund
B), a fluctuating net asset value pool. The State Board of Administration (SBA) determined that Fund
B did not meet the requirements of a SEC 2a-7 like fund; therefore, a fair value factor (total net asset
value of Fund B divided by total participant balances) was provided for reporting the value of the
County's participation in Fund B at fiscal year-end. This resulted in a positive adjustment of 13.3% of
the portfolio balance, or $36,603. Consequently, the net investment in Fund B is reported at $312,596.
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 and Clerk follow this policy. The Tax
Collector's policy is to limit maturities to 24 months or less. The Clerk's policy is to limit maturities to
three years or less and maintain at least 50% of the portfolio in readily available funds.
64
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Credit Risk
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 Funds;
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;
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, the Clerk of the Circuit Court and
Comptroller, and the Tax Collector follow their own investment policies. The 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 10% of the portfolio may be placed in any one money market fund, mutual fund, or
intergovernmental investment pool.
65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Concentration Risk - Continued
The Tax Collector's cash and 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 95%
Securities & Exchange Commission Money Funds 25%
Bank Super NOW Accounts 95%
Bank Repo Agreements 50%
United States Government Agencies 25%
The Clerk's cash and investment policy limits portfolio composition to no more than 10% or $1 million
in certificates of deposit with a qualified public depository with any one financial institution.
The Clerk's investment in the Florida Trust Day to Day Fund of $5,603,429, the Tax Collector's
investment of $25,278, and the Board's investment of $11,054,404 have a combined total of
$16,683,111.
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 party 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, 2013, the
County's investment portfolio in U.S. Treasuries, U.S. Agencies, and money market funds, was held by
The Bank of New York/Mellon. Additional investments include the following: the SunTrust NOW
account, the Regions Bank Money Markets, Harbor Community Bank certificates deposit, CenterState
Bank certificate of deposit, the Florida Local Government Investment Trust (held by the Bank of New
York/Mellon) and the Florida Trust Day to Day Fund (held by UMB Bank).
D. OPEB Trust Investments
Funds are held in the name of the Indian River County OPEB Trust (OPEB Trust), 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.
66
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
D. OPEB Trust Investments - Continued
The County approved a separate investment policy for the OPEB Trust assets on February 3, 2009 (last
amended on November 5, 2013). 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.
The contribution of $2,965,251 for the year ended September 30, 2013 was invested in the various
funds listed below. As of September 30, 2013, the OPEB Trust had the following investments:
Investment Type
Short -Term Portion:
Weighted
Average
Maturity Portfolio Credit
Fair Value InYears Percentage Risks*
Fidelity Treasury Money Market $ 32,198 0.15 0.28 % AAAm
Long -Term Portion:
Vanguard 500 Index 2,556,906 N/A 22.10 N/A
Vanguard All World Ex -US 2,346,217 N/A 20.28 N/A
Vanguard Mid Cap Index 620,459 N/A 5.36 N/A
Vanguard Small Cap Index 316,318 N/A 2.72 N/A
Vanguard Short -Term Treasury 3,418,774 2.30 29.54 AA+
Vanguard Intermediate Treasury 1,148,802 5.60 9.93 AA+
Vanguard Prime Money Market 926,688 0.16 8.01 A-1
Vanguard Federal Money Market 205,606 0.16 1.78 A-1
Total Fair Value
$ 11,571,968 100.00 %
* 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 2012-2013 fiscal year were levied in
October 2012. 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.
67
NOTE 6 - CAPITAL ASSETS
A. Governmental Activities
Primary Government
Governmental activities:
Capital assets, not being depreciated:
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
Beginning
Balance
Land $ 139,633,250 $
Construction in progress 28,125,197
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
Total capital assets, being depreciated, net
54,718,602
577,333
3,575,067
226,629,449
194,268,183
56,578,996
3,276,269
300,147,030
554,270,478
(45,508,883)
(31,071,260)
(2,283,981)
(149,852,894)
Additions
1,131,465 $
23,740,793
1,509,847
241,294
26,623,399
Deletions
(50,880) $
(14,818,243)
(549,375)
Ending
Balance
140,713,835
37,047,747
55,679,074
818,627
3,575,067
(15,418,498) 237,834,350
3,121,561 (38,950)
2,680,008 (2,501,359)
97,936 (298,205)
10,295,907
16,195,412 (2,838,514)
197,350,794
56,757,645
3,076,000
310,442,937
567,627,376
(5,203,573) 38,950 (50,673,506)
(4,476,847) 2,501,359 (33,046,748)
(218,159) 298,205 (2,203,935)
(13,296,435) (163,149,329)
(228,717,018) (23,195,014) 2,838,514 (249,073,518)
325,553,460
(6,999,602) 318,553,858
Governmental activities capital assets, net $ 552,182,909 $ 19,623,797 $ (15,418,498) $ 556,388,208
Beginning balance amounts have been reduced for equipment ($2.2 million), intangibles ($0 2 million),
and building and improvements ($0.2 million) that are contributed to and reported by a grant sub -
recipient.
68
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 $ 2,623,199
Public safety 3,942,235
Physical environment 563,394
Transportation 5,810,842
Economic environment 608
Human service 139,078
Culture/recreation 9,924,498
Court related 46,708
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 144,452
Total depreciation expense — governmental activities $ 23,195,014
In accordance with GASB Statement 42 Accounting and Financial Reporting for Impairment of Capital
Assets and for Insurance Recoveries, the County wrote down the value of the Sector 3 Beach
Restoration asset in the amount of $2,619,835. This impairment was caused by Hurricane Sandy
erosion damage that occurred in October 2012. This impairment amount is included as a culture and
recreation program expense on the Statement of Activities.
69
NOTE 6 - CAPITAL ASSETS —
B. Business -type Activities
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
Continued
Primary Government
Business -type activities:
Capital assets, not being depreciated:
Land
Intangibles
Construction in progress
Total capital assets, not being depreciated
Beginning
Balance Additions Deletions
$ 27,322,149 $
1,431,112
6,535,100
35,288,361
-$
29,795
7,091,662
(275,890)
7,121,457 (275,890)
Capital assets, being depreciated:
Buildings, distribution systems, & improvements 414,175,362 1,951,917 (1,529)
Intangibles 907,347
Equipment 14,467,382 585,608 (730,846)
Total capital assets, being depreciated 429,550,091 2,537,525 (732,375)
Less accumulated depreciation for:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
(194,155,984)
(492,771)
(12,868,838)
(14,792,477)
(70,344)
(533,947)
(207,517,593) (15,396,768)
222,032,498 (12,859,243)
$ 257,320,859 $
1,529
710,405
Ending
Balance
$ 27,322,149
1,460,907
13,350,872
42,133,928
416,125,750
907,347
14,322,144
431,355,241
(208,946,932)
(563,115)
(12,692,380)
711,934 (222,202,427)
(20,441) 209,152,814
(5,737,786) $ (296,331) $ 251,286,742
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
$ 840,661
122,648
14,424,758
8,701
Total depreciation expense — business -type activities $ 15,396,768
The beginning balance reported for land was increased by $6,036,139 and the beginning balance for
buildings, distribution systems, and improvements was decreased by $6,036,139 to reflect the
reclassification of capital assets from improvements to land.
70
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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
Sinking funds
Renewal and replacement
Customer deposits
Capital construction
Closure and maintenance costs
Solid Waste
Disposal
District
3,152,731
131,126
11,011,736
County
Utilities
$ 6,195,428
3,485,928
2,852,268
16,853,631
Total
$ 6,195,428
6,638,659
2,983,394
16,853,631
11,011,736
Total $ 14,295,593 $ 29,387,255 $ 43,682,848
Cash totaling $5,432,485 is reported as restricted on the Statement of Net Position for governmental
activities. These funds are restricted for current liabilities such as retainage payable, accrued interest
payable, and the current year portion of bonds payable.
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
Customer deposits
Bonds payable (current)
Closure and maintenance
costs payable
Total
Primary Government
Solid Waste
Disposal
District
County
Utilities
$ - $ 106,708
26,557
- 161,454
131,126 2,852,268
- 3,350,000
Total
$ 106,708
26,557
161,454
2,983,394
3,350,000
11,011,736 11,011,736
$ 11,142,862 $ 6,496,987 $ 17,639,849
71
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 9 - INTERFUND BALANCES
Interfund balances at September 30, 2013, consisted of the following:
Receivable Fund
General Fund
General Fund
General Fund
Payable Fund Amount
Nonmajor Governmental Funds
Golf Course Enterprise Fund
Fleet Internal Service Fund
$ 455,000
640,853
317,000
$ 1,412,853
In October 2010, the General Fund loaned $333,050 to the Golf Course Fund to purchase new golf
carts. In September 2013, the General Fund loaned $1,565,000 to the Golf Course Fund to pay off the
Series 2003 Recreational Revenue Refunding Bonds. 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 2014. 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
Major Governmental Fund:
Emergency Services District Fund
Major Enterprise Fund:
Solid Waste Disposal District Fund
Nonmajor Governmental Funds:
Land Acquisition Bonds Fund
Street Lighting Districts Fund
Vero Lake Estates Fund
East Gifford Stormwater Fund
Total Nonmajor Governmental Funds
Payable Fund Amount
General Fund $ 226,983
General Fund $ 101,037
General Fund
General Fund
General Fund
General Fund
Total:
$ 61,678
2,402
1,221
13
$ 65,314
$ 393,334
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2013.
72
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 9 - INTERFUND BALANCES - Continued
Interfund advances at September 30, 2013, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Fund $ 1,112,427
This amount is considered a long-term advance between major funds expected to be paid over the
course of several years. This amount has been presented as nonspendable on the General Fund balance
sheet.
NOTE 10 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2013, consisted of the following:
Transfers In:
Nonmajor
General Transportation Govemmental Internal Service
Fund Fund Funds Fund
Total
Transfers Out:
General Fund $ $ 7,459,882 $ 2,390,823 $ 35,488 $ 9,886,193
Impact Fees Fund - - 321,031 321,031
Emergency Services District Fund 336,797 - - 336,797
Optional Sales Tax Fund 817,655 - 600,000 1,417,655
Nonmajor Governmental Funds 552,102 - 26,409 578,511
Total $ 1,706,554 $ 7,459,882 $ 3,338,263 $ 35,488 $ 12,540,187
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, 5) use unrestricted general fund revenues to pay
off a bond issue, 6) use unrestricted general fund revenues to pay down a portion of an outstanding
bond issue, 7) use unrestricted general fund revenues to offset a portion of salaries and benefits
expenses for an employee accounted for in the health insurance fund, 8) use optional sales tax fund
revenues for purchase of new vehicles for the Sheriff's departments and renovations at the Historic
Dodgertown facility, and 9) to close a debt service fund.
73
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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.
Segment Two Amount Advance Funded
Less: Reimbursements received as of 9/30/2013
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, 2013, 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
$ 1,322,155
384,797
1,495,570
185,479
118,205
2,744,699
813,599
$ 7,064,504
$ 1,350,089
31,428
1,717,409
18,402
106,718
$ 3,224,046
Optional Sales
Tax Fund
$ 11,429,754
(3,000,000)
8,429,754
1,983,861
$ 10,413,615
Salaries and Total
Benefits Payables
$ 1,483,327 $ 2,805,482
2,003 386,800
5,744 1,501,314
151,422 336,901
471,721 589,926
2,744,699
42,857 856,456
$ 2,157,074 $ 9,221,578
$ 10,381
10,440
164,203
24,229
$ 1,360,470
41,868
1,881,612
42,631
106,718
$ 209,253 $_„433_,299
74
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 12 — ACCOUNTS PAYABLE - Continued
The County has not engaged in any short-term debt activity during fiscal year 2013 other than that
listed in Note 9.
Due To Other Governments — Governmental Activities
On August 21, 2012, the County approved a 5 -year payment plan agreement with the State of Florida to
pay back $790,434 in disputed Medicaid billings. Monthly payments began on October 5, 2012. The
County recorded the repayment agreement as a liability, Due to Other Governments, in the government -
wide Statement of Net Position; and at September 30, 2013, the amount due to the State of Florida is
$474,260.
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. The County has reported these repayments as a liability, Due to Other Governments, in the
Utilities proprietary fund while awaiting FEMA's response to the appeal.
75
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES
A. Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2013, was as follows:
Due
Beginning Ending Within
Balance Additions Retirements Balance One Year
Governmental Activities:
Bonds payable:
Limited General Obligation Bonds - $ 32,385,000 $ - $ 3,120,000 $ 29,265,000 $ 3,255,000
Series 2006
Spring Training Facility Revenue Bonds -
Series 2001 11,075,000 - 2,930,000 8,145,000 445,000
Subtotal 43,460,000 - 6,050,000 37,410,000 3,700,000
Add: Unamortized bonds premium 815,714 - 93,225 722,489
Total bonds payable 44,275,714 - 6,143,225 38,132,489 3,700,000
Other liabilities:
Pollution remediation 2,613,000 114,400 - 2,727,400 120,190
Claims payable 8,074,000 14,396,726 14,396,726 8,074,000 2,197,855
Due to other governments -Medicaid 632,347 - 158,087 474,260 158,092
Compensated absences 10,998,652 6,481,234 6,175,137 11,304,749 5,648,031
Total other liabilities 22,317,999 20,992,360 20,729,950 22,580,409 8,124,168
Governmental activities long-term liabilities
66,593,713 $ 20,992,360 $ 26,873,175 $ 60,712,898 $ 11,824,168
Business -type Activities:
Bonds payable:
Recreational Refunding Revenue Bonds -
Series 2003 $ 2,120,000 $ - $ 2,120,000 $ - $
Water & Sewer Refunding Revenue Bonds -
Series 2005 19,010,000 - 1,530,000 17,480,000 1,605,000
Series 2009 24,760,000 - 1,675,000 23,085,000 1,745,000
Subtotal 45,890,000 - 5,325,000 40,565,000 3,350,000
Add: Unamortized bonds premium 2,692,698 236,905 2,455,793
Less: Unamortized bonds discount (18,129) - (18,129) -
Total bonds payable 48,564,569 - 5,543,776 43,020,793 3,350,000
Other liabilities:
Landfill closure and maintenance costs 10,513,736 498,000 - 11,011,736
Pollution remediation 8,800 1,700 10,500 5,167
Compensated absences 857,137 635,828 678,333 814,632 616,316
Total other liabilities 11,379,673 1,135,528 678,333 11,836,868 621,483
Business -type activities long-term liabilities
$ 59,944,242 $ 1,135,528 $ 6,222,109 $ 54,857,661 $ 3,971,483
76
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013, are as follows:
Fiscal Year
Ending
September 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2031
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Limited General
Obligation Bonds
Series 2006
Principal Interest
$ 3,255,000
3,390,000
3,545,000
3,705,000
3,890,000
11,480,000
$ 1,367,463
1,204,712
1,035,212
893,413
745,212
1,029,138
29,265,000 6,275,150
3,255,000
722,489
$ 26,732,489 $ 6,275,150
77
Spring Training Facility
Revenue Bonds
Series 2001
Principal Interest
$ 445,000
470,000
495,000
520,000
550,000
2,475,000
1,870,000
1,320,000
$ 418,075
394,713
370,037
344,050
316,750
1,136,162
619,250
132,250
8,145,000 3,731,287
445,000
$ 7,700,000 $ 3,731,287
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 1/2 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, 2013, Limited General Obligation Bonds consisted of the following:
Description
Limited General Obligation
Bonds, Series 2006
Interest Outstanding at
Rates and September 30,
Date Maturity Issue 2013
4.00%-5.00%
1/1 and 7/1
2021 $ 48,600,000 $ 29,265,000
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.
Spring Training Facility 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 "Historic 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.
78
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility 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 and are listed on Schedule 25 in the statistical section.
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 sixteen percent of total pledged
revenues. All three revenue sources totaled $7,656,378 for the current fiscal year. The County applied
100% of the first two pledged revenue sources and five 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 $11,876,287.
On September 30, 2013, the Board transferred $2,275,000 from the General fund to pay down the
principal. Excess debt service funds of $59,387 were used to pay the related interest expense.
Bonds Issued - At September 30, 2013, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Spring Training Facility Revenue
Bonds, Series 2001
Interest Outstanding at
Rates and September 30,
Date Maturity Issue 2013
3.30%-5.25%
4/1 and 10/1 2031 $ 16,810,000 $ 8,145,000
79
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility 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.
The County redeemed the following amounts and maturity dates on September 30, 2013:
Maturity Date Amount
April 1, 2014 $ 240,000
April 1, 2015 255,000
April 1, 2016 265,000
April 1, 2017 275,000
April 1, 2018 290,000
April 1, 2019 305,000
April 1, 2020 315,000
April 2, 2021 330,000
Total Optional Redemption $2,275,000
Remaining 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 $ 445,000
April 1, 2015 470,000
Term Bonds due April 1, 2017
Date Principal Amount
April 1, 2016 $ 495,000
April 1, 2017 520,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 550,000
April 1, 2019 585,000
April 1, 2020 615,000
April 1, 2021 650,000
80
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility Revenue Bonds - Continued
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
Business -type Activities
Annual Debt Service Payments — Business -type Activities
The annual debt service payments for bonds outstanding at September 30, 2013 are as follows:
Fiscal Year Water and Sewer Water and Sewer
Ending Revenue Refunding Revenue Refunding
September 30 Bonds Series 2005 Bonds Series 2009
Principal Interest Principal Interest
2014 1,605,000 800,650 1,745,000 1,136,800
2015 1,670,000 736,450 1,815,000 1,067,000
2016 1,750,000 652,950 1,905,000 976,250
2017 1,840,000 565,450 2,000,000 881,000
2018 1,930,000 473,450 2,100,000 781,000
2019-2023 8,685,000 931,800 12,180,000 2,221,250
2024 1,340,000 67,000
Total 17,480,000 4,160,750 23,085,000 7,130,300
Less:
Current portion 1,605,000 1,745,000
Add:
Unamortized
bond premium 548,858 1,906,935
Total $ 16,423,858 $ 4,160,750 $ 23,246,935 $7,130,300
81
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - 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
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 Board elected to redeem 100% of the outstanding bonds in the amount of $1,565,000, at par, on
September 30, 2013 in addition to the regularly scheduled payment of $555,000, which was due and
payable on September 1, 2013.
At the time of the early call, $417,500 of debt service reserve was released from restricted cash to
operating cash. In addition, $13,886 of the unamortized bond discount and $82,645 of unamortized net
economic gain was charged to bond amortization expense.
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, which included shortening the term of the bonds by
four years and lowering average annual debt service by $242,000, was $2,944,661 and is amortized
over the life of the bonds. The unamortized balance of the deferred amount on the refunding at
September 30, 2013 is $1,514,801 and is reflected as a deferred outflow of resources on the Statement
of Net Position.
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 $2,407,150 represent approximately eighteen percent of net
revenues of $13,741,700 of the utility system. The total principal and interest remaining to be paid on
the bonds is $21,640,750.
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.
82
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Bonds, Series 2005 - Continued
Bonds Issued - At September 30, 2013, the revenue bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2013
Water and Sewer 3-5%
Revenue Refunding Bonds, 3/1 and 9/1 2022 $ 27,675,000 $ 17,480,000
Series 2005
Outstanding In -Substance Defeased Debt - The proceeds from the refunding were 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.
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, which were consequently
paid at their respective maturity date.
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, which lowered average annual debt service by
$126,000, was $1,368,427 and is amortized over the life of the bonds. The unamortized balance of the
deferred amount on the refunding at September 30, 2013 is $992,110 and is reflected as a deferred
outflow of resources on the Statement of Net Position.
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 principal and interest payments of $2,878,800 represent approximately twenty one percent of net
revenues of $13,741,700 of the utility system. The total principal and interest remaining to be paid on
the bonds is $30,215,300.
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.
83
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 13 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Bonds, Series 2009 - Continued
Bonds Issued - At September 30, 2013, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2013
Water and Sewer 4-5%
Revenue Refunding Bonds, 3/1 and 9/1 2024 $ 26,370,000 $ 23,085,000
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.
C. Compensated Absences
For the governmental activities compensated absences liability, the general fund normally liquidates 71
percent, and the Transportation and Emergency Services District funds normally liquidate 6 percent and
9 percent, respectively. The remaining 14 percent is liquidated by other governmental and internal
service funds.
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 $3.3 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.
84
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 14 - PROVISION FOR CLOSURE COSTS - Continued
Required closure and post -closure sub -accounts:
Capacity Estimated
Used Closing
Amount
Closure Costs
Class I - Segments I and II 61% 2030 $ 7,101,947
Construction and Demolition - Cell I 90% 2023 1,136,866
Post -closure Costs
Class I - Segments I and II N/A N/A 2,588,435
Construction and Demolition - Cell I N/A N/A 184,488
Total account balance at 9/30/13: $ 11,011,736
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, 2013, $10,978,126 was on deposit at the Florida Local Government Investment Trust
and $33,610 was on deposit in the County's Operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/01/12 Deposits Withdrawals 09/30/13
Closure and long-term care costs $ 10,513,736 $ 498,000 $ - $11,011,736
Of the $11,011,736 liability for closure and long-term care costs, management estimates that no funds
will be due and payable within one year.
85
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 15 — POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financial Reporting for Pollution
Remediation Obligations, a consultant evaluated five 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 five
sites requiring the County (using the consultant's services) to attempt to accrue a liability for pollution
remediation. The liability totaled $2,737,900 at September 30, 2013 for all five 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 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 $2,640,000 and will be paid from the Optional Sales Tax Fund.
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 $11,200 and will be paid from
the General Fund.
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 $73,200 and will be paid from the Impact Fees Fund.
4) Shadowbrook Estates — The nature of the pollution remediation obligation is arsenic and lead
contamination in two areas of a former citrus grove. The consultant will conduct the additional
assessment and natural attenuation monitoring. The amount of the estimated year end liability is
$3,000 and will be paid from a nonmajor fund, the Land Acquisition Fund.
Total Governmental Activities liability: $2,727,400
Business -type Activities:
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 $10,500 and will be paid from the County
Utilities Fund.
Total Business -type Activities liability: $10,500
86
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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. Employer rates effective as of July 1, 2013 were as follows: regular class
6.95%, senior class 18.31%, special risk 19.06% and elected official class 33.03%.
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.
87
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013, as follows (contribution rates are in agreement with
the actuarially determined rates):
Regular Class -
Members not qualifying for other classes.
10/01/10 07/01/11 07/01/12 07/01/13
to 6/30/11 to 6/30/12 to 6/30/13 to 9/30/13
10.77% 7.91% 8.18% 9.95%
Senior Management Service Class -
Members of senior management who do
not elect the optional annuity management
program. 14.57% 9.27% 9.30% 21.31%
Special Risk Class -
Members employed as law enforcement
officers, firefighters, or correctional officers
and meet the criteria set to qualify for this
class. 23.25% 17.10% 17.90% 22.06%
Special Risk Administrative Support Class -
Special risk members who are transferred or
reassigned to non -special risk and meet the
criteria.
Elected County Officer's Class -
Certain elected county officials.
13.24%
9.04% 8.91% 38.96%
18.64% 14.14% 13.23% 36.03%
Deferred Retirement Option Program -
Members who are eligible for normal
retirement that have elected to participate
in the deferred retirement option program. 12.25% 4.42% 5.44% 12.84%
Contributions to the FRS for the fiscal years ended September 30, 2011, 2012, and 2013, were equal to
14.15%, 8.66%, and 9.97% of the annual covered payroll. Contributions to the FRS for the fiscal years
ended September 30, 2011, 2012, and 2013 were $9,810,332, $5,857,114, and $6,678,184 respectively.
Employee contributions for the fiscal years ended September 30, 2011, 2012, and 2013 were $455,378,
$1,789,315, and $1,735,675 respectively. Both employer and employee contributions were equal to
100% of the required contribution for each year.
88
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
A. Plan Description
On September 23, 2008, the Board of County Commissioners approved resolution number 2008-163,
establishing an irrevocable trust (OPEB Trust) to separately identify assets accumulated to pay OPEB
benefits for eligible retirees. The OPEB Trust includes the Board of County Commissioners and the
five constitutional officers (Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff,
Supervisor of Elections, and Tax Collector). The resolution also established the Board of County
Commissioners as trustees of the OPEB Trust and the authority for the trustees to amend the benefit
provisions.
The OPEB Trust is a single -employer defined benefit plan (OPEB Plan). The OPEB plan subsidizes
(see the chart below) 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 plan members). Employees hired on or after February 1, 2006, will not be eligible for
any subsidy, regardless of the years of service or Medicare eligibility.
Active participants as well as retirees are subject to the same benefits and rules. 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 retiree has the option to continue with the
Board group health plan or elect Medicare Advantage Plan.
The implicit rate subsidy applies to health and life insurance coverage since the premiums charged are
based upon a blending of younger active employees and older retired employees. Health insurance
premiums, effective October 1, 2012 range from $400 for Medicare participants to $715 for family
coverage. Life insurance is available to retirees at a flat rate of $.20 per $1000 of coverage (to a
maximum of $20,000 until the age of 70). After 70, the maximum amount of life insurance is $10,000.
The Board subsidizes the cost of the health premiums for each retiree based upon their years of service
and employment date (as mentioned above); a 2% discount is given 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
89
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
A. Plan Description - Continued
The OPEB Trust financial statements are reported using the accrual basis of accounting and are
included in the Indian River County Comprehensive Annual Financial Report (CAFR). Questions
regarding the OPEB plan may be directed to the Finance Director.
At October 1, 2011, the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,428
Retired participants 371
Total participants 1,799
There are two classes of participants at October 1, 2011:
Regular and senior management 1,127
Special risk 672
Total participants 1,799
The average employer's contribution was $2,077 per employee, approximately 4.5% of current payroll.
Financial statements for the OPEB Trust are included in this report and can be found on pages 42-43. A
separate, stand-alone financial report is not issued by the County. The OPEB Trust 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 OPEB Trust is advance funded by the
County. For the year ended September 30, 2013, the County contributed $2.96 million to the qualifying
OPEB Trust. Plan members receiving benefits contributed $1.7 million, or approximately 57 percent of
the total premiums. We anticipate that the OPEB liability will be liquidated in the following manner:
General fund 57 percent, Transportation fund 8 percent, Emergency Services District fund 21 percent,
enterprise funds 9 percent, and the remaining 5 percent is by the other governmental and internal
service funds. It is the County's policy to base future OPEB Trust 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 OPEB Trust 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 cost for the
current and two preceding years, the amount actually contributed, and the changes in the net obligation.
90
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
C.
Annual OPEB Cost and Net OPEB Obligation - Continued
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
D. Funded Status and Funding Progress
FY 2012/2013
2,965,251
(20,909)
26,830
2,971,172
(2,950,097)
21,075
(321,681)
(300,606)
99.29%
FY 2011/2012
$ 2,828,452
(12,323)
14,075
2,830,204
(2,962,301)
(132,097)
(189,584)
$ (321,681)
104.67%
FY 2010/2011
$ 2,948,682
(22,381)
23,385
2,949,686
(2,819,540)
130,146
(319,730)
$ (189,584)
95.59%
As of October 1, 2011 (the most recent actuarial valuation date), the funded status of the plan was as
follows:
Actuarial accrued liability (AAL)
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio
Covered payroll (annual payroll of active employees covered by the
UAAL as a percentage of covered payroll
$ 33,877,613
$ 6,955,356
$ 26,922,257
20.53%
plan) $ 62,739,616
42.91 %
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 immediately following the County Notes to the Financial Statements (on
page 100), presents multi-year trend information regarding liabilities, funding, and payroll. The data
also reflects whether the actuarial value of the plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits. This information includes the current (listed above) and
past two actuarial valuations as well as six years of funding data.
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
E.
Actuarial Methods and Assumptions - Continued
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
Inflation rate
NOTE 18 - OPERATING LEASES
Entry age normal cost method
Level percent of payroll projected to grow 4% per year
15 years
Market Value
6.5%
4.0%-9.47%
8.5%
3%
(net administrative expenses)
(dependent on years of service and age)
(decreasing '/2% each year & thereafter to
the ultimate value of 5.32%)
The County has entered into non -cancelable operating leases, both as lessor and lessee. Lease terms
vary from 1 to 99 years. Lease revenues totaled $570,512 and lease expenditures totaled $290,136 for
the year ended September 30, 2013. 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
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
Total future minimum lease receipts:
92
Amount
$ 492,260
493,573
501,512
488,966
484,421
2,282,892
1,187,108
551,013
134,900
$ 6,616,645
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 18 - OPERATING LEASES — Continued
A. Future Minimum Lease Receipts - Continued
The property being leased is included in the statement of net position governmental activities and
business -type activities columns and has a cost of $29,077,088 and a carrying value of $20,284,620.
Current year depreciation on property being leased was $474,346.
B. Future Minimum Lease Payments
The following is a schedule of minimum future rentals to be paid by the County for various non-
cancelable operating leases of office space, park land, and office equipment as of September 30, 2013:
Year Amount
2014 $ 287,135
2015 205,160
2016 154,472
2017 108,421
2018 29,969
2019-2023 7,500
2024-2028 7,500
2029-2033 7,500
2034-2038 6,300
2039-2043 4,500
2044-2048 4,500
2049-2053 3,000
2054-2058 2,100
2059-2063 1,500
2064-2068 1,500
2069-2073 1,500
2074-2076 1,200
Total future minimum lease payments: $ 833,757
93
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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 the approval of a County ordinance by the Board of
County Commissioners. This category also includes existing resources on hand to satisfy the
obligations that arise from 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.
94
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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. 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.
At September 30, 2013, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization
Total
General Fund $ 5,100,000 $ 5,100,000 $ 10,200,000
Transportation Fund 700,000 700,000 1,400,000
Emergency Services District Fund 1,400,000 1,400,000 2,800,000
Total
$ 7,200,000 $ 7,200,000 $ 14,400,000
The General Fund reserves are included in the unassigned fund balance on the balance sheet. The
Transportation Fund reserves are included in the assigned fund balance and the Emergency Services
District Fund reserves are included in the restricted fund balance on the balance sheet.
Emergency/Disaster Relief and Budget Stabilization Reserve amounts may only be revised by the
Board of County Commissioners.
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 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.
D. Restatement of Beginning Fund Balance
Beginning fund balance for the Sheriff special revenue fund was restated due to the reclassification of
amounts previously reported in the agency fund. At October 1, 2012, this results in an increase of the
Sheriff's special revenue fund balance of $107,947.
95
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 20 - FUND BALANCE DEFICIT
The following funds had a deficit in fund balance at September 30, 2013:
Fund Deficit
Nonmajor Governmental Funds:
Metropolitan Planning Organization Fund $ 284,024
Community Development Block Grant Fund 12,244
CDBG NSP3 Grant Fund 34,303
Federal/State Grants Fund 1,452
Total Deficit $ 332,023
The deficits for these four funds will be eliminated by grant proceeds in fiscal year 2014.
NOTE 21 — NET POSITION
A. Restricted Net Position
The County has established a restriction in the County Utilities Fund for capital projects related to an
expansion of capacity within the water and sewer system. At September 30, 2013, this capital projects
restriction is reported on the government -wide and proprietary funds statements of net position in the
amount of $20,871,037.
B. Net Position Restricted by Enabling Legislation
The government -wide statement of net position for the primary government reports $138,192,792 of
restricted net position, of which $83,659,319 is restricted by enabling legislation.
C. Restatement of Beginning Net Position
Beginning net position for the governmental activities was restated due to the reclassification of
amounts previously reported in an agency fund to a special revenue fund. At October 1, 2012, this
results in an increase of beginning net position of $107,947. See note 19D for further information on
this restatement.
96
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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
09/30/08
$ 300,000
250,000
250,000
500-25,000
250,000
1,000,000
1,000,000
10/01/08 to
04/30/11
$ 350,000
250,000
250,000
250,000
250,000
2,000,000
1,000,000
05/01/11 to
09/30/13
$ 350,000
200,000
200,000
200,000
200,000
2,000,000
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. 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 Board has received two health insurance reimbursements totaling $108,123 in
fiscal year 2013. In fiscal year 2012, the Board received one reimbursement for a liability claim in
excess of the general liability limit, in the amount of $134,820.
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. 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 current and prior
two fiscal years.
The claims liability of $8,074,000 reported at September 30, 2013, 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, $2,197,855 will be liquidated over the next twelve months.
97
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
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:
2009-2010
2010-2011
2011-2012
2012-2013
Balance at
Fiscal Year
Beginning
$ 7,875,000
7,899,000
7,877,000
8,074,000
Claims
and Changes
in Estimates
$ 13,940,099
12,901,425
13,967,831
14,396,726
Claim
Payments
$ (13,916,099)
(12,923,425)
(13,770,831)
(14,396,726)
Balance
at Fiscal
Year End
$ 7,899,000
7,877,000
8,074,000
8,074,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2013, unrestricted net position of $25,513,263 has 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, 2013, 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, 2013. In the General
Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
consulting services and external auditing services. In the Special Revenue Funds, contracts are for the
construction of Fire Station 13 in the southern part of the County on 4th Street and 43rd Avenue, Oslo
Road Widening from 58th Avenue to 43rd Avenue (Phase III), 66th Avenue Roadway Improvements
from 16th Street to 4th Street, County Road 512 Road Resurfacing (Eastbound) from Roseland Road to
Easy Street, as well as a variety of other and paving and drainage projects.
98
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 23 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
In the Capital Projects Fund, contracts are for the South County Regional Park Intergenerational
Recreation Facility, PC South Algal Turf Scrubber Nutrient Recovery System, 66th Avenue Roadway
Improvements from State Road 60 to 49th Street, and several sidewalk and road improvement projects
throughout the County. In the Enterprise Funds, contracts are for the Reverse Osmosis Lime Slurry
Injection Project, the West Regional Wastewater Treatment Facility Anaerobic Tanks Odor Control
System, Oslo Customer Convenience Center, South County Brine Disposal project and various other
water and sewer projects.
A summary of these projects at September 30, 2013, is as follows:
Total Total Paid as of
Contract Price September 30, 2013
Remaining
Balance at
September 30, 2013
General $ 745,826 $ (340,818) $ 405,008
Special Revenue 33,916,790 (19,812,897) 14,103,893
Capital Projects 23,485,546 (9,514,568) 13,970,978
Enterprise 13,795,601 (5,119,967) 8,675,634
Internal Service 119,767 119,767
Total $ 72,063,530 $ (34,788,250) $ 37,275,280
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 County. In the opinion of management, any such
adjustments would not be significant.
99
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
10/01/2007 * $
10/01/2009 $
10/01/2011 $
3,690,592
6,955,356
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2013
Other Postemployment Benefits Plan
Schedule of Funding Progress
Actuarial Accrued
Liability (AAL) -
Entry Age
(b)
29,098,337
32,456,186
33,877,613
Unfunded AAL
(UAAL)
(b -a)
$ 29,098,337
$ 28,765,594
$ 26,922,257
* First year of Indian River County Other Postemployment Benefits Trust (IRCOT)
Fiscal Year
Ending
9/30/2008
9/30/2009
9/30/2010
9/30/2011
9/30/2012
9/30/2013
Schedule of Employer Contributions
Annual
Required Contribution
$ 2,626,254
$ 2,810,072
$ 2,814,435
$ 2,948,682
$ 2,828,452
$ 2,965,251
Funded Ratio
(a/b)
0.00%
11.37%
20.53%
Amount Percentage
Contributed Contributed
$ 2,720,348 103.58%
$ 2,819,373 100.33%
$ 3,030,792 107.69%
$ 2,819,540 95.62%
$ 2,962,301 104.73%
$ 2,950,097 99.49%
Covered Payroll
(c)
$ 64,841,779
$ 70,558,251
$ 62,739,616
UAAL as a
Percentage of
Covered
Payroll
((b-a)/c)
44.88%
40.77%
42.91%
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.
100
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
y
101
Court Facilities -
Section 8 Rental Assistance -
Special Law Enforcement-
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
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.
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.
102
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 -
Beach Restoration-
CDBG Neighborhood Stabilization
Program -
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.
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.
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 -
Disabled Access Program-
Federal/State Grants -
Traffic Education Program -
To account for bequests which may be used for improvements to
the Indian River County Libraries.
To account for fines assessed against individuals for illegal use of
handicapped parking spaces.
To account for revenues and expenditures of various grants from
Federal and State agencies.
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.
103
Land Acquisition -
East Gifford Stormwater-
Vero Lake Estates-
Dodgertown Reserve -
Clerk Special Revenue -
Sheriff Special Revenue -
Supervisor of Elections
Special Revenue -
Street Lighting Districts-
CDBG Neighborhood Stabilization
Program 3 Grant -
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.
To account for expenditures of funds for stormwater improvements
in the East Gifford Watershed. Funds are provided by non -ad
valorem taxes.
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.
To provide additional improvements to the Historic Dodgertown
facility. The City of Vero Beach contributed $1,400,000 and the
County contributed $600,000. This fund was previously known as
the Vero Beach Sports Village Reserve Fund in prior fiscal years.
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.
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 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.
104
Spring Training Facility Bonds -
Land Acquisition Bonds -
DEBT SERVICE FUNDS
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.
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.
105
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2013
Special Revenue
Section 8
Court Rental Special Law
Facilities Assistance Enforcement
ASSETS
Cash and cash equivalents $ 1,184,085 $ 403,109 $ 301,963
Accounts receivable -
Due from other funds -
Due from other governments 881 24
Interest receivable 438 154 112
Inventories -
Prepaid items
Total Assets $ 1,184,523 $ 404,144 $ 302,099
LIABILITIES
Accounts payable $ 75,381 $ 5,090 $
Retainage payable -
Due to other funds -
Unearned revenues 3,135
Total Liabilities 75,381 8,225
FUND BALANCES
Nonspendable:
Inventories
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
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
1,109,142
395,919
302,099
1,109,142 395,919 302,099
$ 1,184,523 $ 404,144 $ 302,099
106
Special Revenue
Tree State Housing
Ordinance Tourist 911 Drug Initiatives
Fines Development Surcharge Abuse Partnership
265,621 $
101
265,722 $
265,722
418,994 $
145
1,283,400 $
59,037
483
419,139 $ 1,342,920 $
62,730 $ 15,588 $
214,310 $ 832,716
11,231 -
80 316
225,621 $ 833,032
15,094 $ 35,929
62,730 15,588
15,094 35,929
797,103
1,327,332 210,527
356,409
265,722 356,409 1,327,332 210,527 797,103
$ 265,722 $ 419,139 $ 1,342,920 $ 225,621 $ 833,032
Continued
107
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2013
Special Revenue
Metropolitan Multi- Native Uplands
Planning Jurisdictional Land
Organization Law Enforcement Acquisition
ASSETS
Cash and cash equivalents $ 676 $ 103,585 $ 837,159
Accounts receivable
Due from other funds -
Due from other governments 158,944 -
Interest receivable 39 319
Inventories -
Prepaid items 7,200
Total Assets $ 166,820 $ 103,624 $ 837,478
LIABILITIES
Accounts payable $ 76,844 $ - $
Retainage payable -
Due to other funds 374,000
Unearned revenues -
Total Liabilities 450,844
FUND BALANCES
Nonspendable:
Inventories
Prepaid items 7,200
Restricted for:
Court -related costs and improvements
Housing assistance
Law enforcement/public safety 103,624
Tourism -related activites
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation 837,478
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned (291,224)
Total Fund Balances (284,024) 103,624 837,478
Total Liabilities and Fund Balances $ 166,820 $ 103,624 $ 837,478
108
Special Revenue
CDBG Florida Disabled
Beach Neighborhood Boating Improv. Library Access
Restoration Stabilization Pgm Program Bequests Program
6,127,944 $
2,317
630 $ 1,140,196 $
99,437 $
62,870
431 38 24
$ 6,130,261 $ 630 $ 1,140,627 $ 99,475 $ 62,894
$ 116,141 $ 5,874 $ - $ 307 $ 27
27,209 - -
- 7,000 - -
143,350 12,874 307 27
5,986,911
1,140,627
99,168
(12,244)
62,867
5,986,911 (12,244) 1,140,627 99,168 62,867
$ 6,130,261 $ 630 $ 1,140,627 $ 99,475 $ 62,894
Continued
109
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2013
Special Revenue
Traffic
FederallState Education Land
Grants Program Acquisition
ASSETS
Cash and cash equivalents $ 735 $ 19,295 $ 254,743
Accounts receivable -
Due from other funds - -
Due from other governments 16,208 - Interest receivable 7 97
Inventories - -
Prepaid items
Total Assets $ 16,943 $ 19,302 $ 254,840
LIABILITIES
Accounts payable $ 15,395 $ 4,895 $ 42,669
Retainage payable -
Due to other funds 3,000
Unearned revenues -
Total Liabilities 18,395 4,895 42,669
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
Court -related costs and improvements
Housing assistance -
Law enforcement/public safety 14,407
Tourism -related activites -
Beach renourishment
Boating related projects
Library services -
Land acquisition - 212,171
Stormwater, street lighting, and other special assessments -
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned (1,452)
Total Fund Balances (1,452) 14,407 212,171
Total Liabilities and Fund Balances $ 16,943 $ 19,302 $ 254,840
110
S
Special Revenue
East Clerk Sheriff
Gifford Vero Lake Dodgertown Special Special
Storm water Estates Reserve Revenue Revenue
18,152 $ 1,315,905 $ 997,740 $ 2,229,175 $ 1,981,302
- - 4,120
13 1,221 -
7 501 -
- - 24,610
- - 8,333 -
18,172 $
1,317,627 $ 997,740 $
1,018 $ 151,539 $
2,237,508 $ 2,010,032
12,075 $ 32,351
1,018 151,539 12,075 32,351
8,333
2,217,100
24,610
- - 1,470,456
18,172 1,316,609
846,201
378,112
104,503
18,172 1,316,609 846,201 2,225,433 1,977,681
$ 18,172 $ 1,317,627 $ 997,740 $ 2,237,508 $ 2,010,032
Continued
111
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2013
Special Revenue
Supervisor Street
of Elections Lighting CDBG
Special Revenue Districts NSP3 Grant
ASSETS
Cash and cash equivalents $ 477 $ 472,683 $ 967
Accounts receivable
Due from other funds 2,402 -
Due from other governments - 93,665
Interest receivable 180 -
Inventories
Prepaid items
Total Assets $ 477 $ 475,265 $ 94,632
LIABILITIES
Accounts payable $ - $ 10,147 $ 57,935
Retainage payable - -
Due to other funds - 71,000
Unearned revenues 477 - -
Total Liabilities 477 10,147 128,935
FUND BALANCES
Nonspendable:
Inventories
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 465,118
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned - (34,303)
Total Fund Balances 465,118 (34,303)
Total Liabilities and Fund Balances $ 477 $ 475,265 $ 94,632
112
Debt Service
Spring Land Total Nonmajor
Training Acquisition Governmental
Facility Bonds Bonds Funds
1,769,215 $ 766,060 $ 23,103,144
- - 4,120
- 61,678 65,314
31,956 - 371,946
654 291 6,734
- - 24,610
- - 15,533
$ 1,801,825 $ 828,029 $ 23,591,401
$ - $ - $ 737,029
- - 27,209
- - 455,000
- - 3,612
1,222,850
24,610
15,533
- - 3,326,242
- - 1,193,022
- - 3,491,312
- - 356,409
- - 5,986,911
- - 1,140,627
- - 99,168
- - 212,171
- - 1,799,899
1,801,825 828,029 2,629,854
- - 846,201
1,103,200
378,112
104,503
(339,223)
1,801,825 828,029 22,368,551
$ 1,801,825 $ 828,029 $ 23,591,401
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2013
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
Special Revenue
Section 8
Court Rental Special Law
Facilities Assistance Enforcement
1,924,693 -
525,175 26,319 35,430
47,641
3,650 1,250 853
528,825
25,197
550,754
1,952,262 83,924
1,904,893
575,951 1,904,893
Excess of revenues over (under) expenditures (47,126) 47,369 83,924
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
(24,000)
Total other financing sources (uses) (24,000)
Net change in fund balances (47,126) 47,369 59,924
Fund balances at beginning of year, as restated (Note 19D) 1,156,268 348,550 242,175
Fund balances at end of year $ 1,109,142 $ 395,919 $ 302,099
114
Special Revenue
Tree State Housing
Ordinance Tourist 911 Drug Initiatives
Fines Development Surcharge Abuse Partnership
- $ 653,731 $ - $ - $
747,375 63,902 405,619
- 187,166
43,700 - 12,739 -
814 1,125 3,676 629 2,294
73 1,867
44,514 654,856 751,124 77,270 596,946
679,599
305,162
50,339
13,563 493,410
679,599 305,162 63,902 493,410
44,514 (24,743) 445,962 13,368 103,536
(193,141)
(193,141)
44,514 (24,743) 252,821 13,368 103,536
221,208
381,152 1,074,511
197,159 693,567
$ 265,722 $ 356,409 $ 1,327,332 $ 210,527 $ 797,103
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, 2013
Special Revenue
Metropolitan Multi- Native Uplands
Planning Jurisdictional Land
Organization Law Enforcement Acquisition
REVENUES
Taxes $ - $ - $
Permits, fees and special assessments -
Intergovernmental 573,392
Charges for services - -
Judgments, fines and forfeits 14,992
Interest 322 2,617
Miscellaneous
Total revenues 573,392 15,314 2,617
EXPENDITURES
Current:
General government 666,728
Public safety
Physical environment 2,500
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures 666,728 2,500
Excess of revenues over (under) expenditures (93,336) 15,314 117
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
(2,409)
Total other financing sources (uses) (2,409)
Net change in fund balances (93,336) 12,905 117
Fund balances at beginning of year, as restated (Note 19D) (190,688) 90,719 837,361
Fund balances at end of year $ (284,024) $ 103,624 $ 837,478
116
Special Revenue
CDBG Florida Disabled
Beach Neighborhood Boating Improv. Library Access
Restoration Stabilization Pgm Program Bequests Program
$ 653,731 $ - $ - $ - $ -
212,765 70,179 -
369
18,934 34 3,478 325 196
1,500 405,400 - 10,000
674,165 618,199 73,657 10,325 565
892,863
1,156,547
892,863 1,156,547
(218,698)
112,214
112,214
(106,484)
6,093,395
$ 5,986,911 $
17,500 55,647
17,500 55,647
(538,348) 56,157 (45,322) 565
(538,348)
526,104
56,157
1,084,470
(12,244) $ 1,140,627 $
Continued
117
(45,322) 565
144,490 62,302
99,168 $ 62,867
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2013
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
Special Revenue
Traffic
Federal/State Education Land
Grants Program Acquisition
- $
918,957
918,957
36
69
861
12,995
105 13,856
EXPENDITURES
Current:
General government
Public safety
Physical environment 59,780
Transportation 12,460
Economic environment -
Human services 915,326
Culture/recreation -
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures 915,326 12,460 59,780
Excess of revenues over (under) expenditures 3,631 (12,355) (45,924)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year, as restated (Note 19D)
Fund balances at end of year
3,631 (12,355) (45,924)
(5,083)
(1,452) $
118
26,762 258,095
14,407 $ 212,171
Special Revenue
East Clerk Sheriff
Gifford Vero Lake Dodgertown Special Special
Stormwater Estates Reserve Revenue Revenue
$ 38 $ 155 $ $ - $
920 93,173
60,080
438,257 319,291
141,351 160,827
56 4,074 5,554 -
- - 108,682
1,014 97,402 585,162 648,880
11,390
345,824
1,016,349
307,003 -
234,733 6,903
11,390 307,003 580,557 1,023,252
1,014 86,012 (307,003) 4,605 (374,372)
600,000 347,440
(47) (2,647) - (117,602) -
(47) (2,647) 600,000 (117,602) 347,440
967 83,365 292,997 (112,997) (26,932)
17,205
1,233,244 553,204
2,338,430 2,004,613
18,172 $ 1,316,609 $ 846,201 $ 2,225,433 $ 1,977,681
Continued
119
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2013
Special Revenue
Supervisor of Street
Elections Lighting CDBG
Special Revenue Districts NSP3 Grant
REVENUES
Taxes $ - $ 2,386 $
Permits, fees and special assessments 180,895 -
Intergovernmental 32,724 801,346
Charges for services -
Judgments, fines and forfeits - -
Interest - 1,603 18
Miscellaneous 2,440 191,266
Total revenues 32,724 187,324 992,630
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
36,333
36,333
205,389
1,056,068
205,389 1,056,068
Excess of revenues over (under) expenditures (3,609) (18,065) (63,438)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
3,609
(4,878)
Total other financing sources (uses) 3,609 (4,878)
Net change in fund balances (22,943) (63,438)
Fund balances at beginning of year, as restated (Note 19D) 488,061 29,135
Fund balances at end of year $ $ 465,118 $ (34,303)
120
Debt Service
Total
Land Nonmajor
Spring Training Acquisition Governmental
Facility Bonds Bonds Funds
$ 435,821 $ 4,664,885 $ 6,410,747
274,988
883,477 6,694,509
1,531,638
421,655
5,174 7,375 64,981
734,223
1,324,472
4,672,260 16,132,741
1,074,082
1,371,850
62,280
229,239
2,212,615
3,327,192
1,952,612
792,390
2,930,000 3,120,000 6,050,000
625,720 1,492,984 2,118,704
3,555,720
(2,231,248)
2,275,000
2,275,000
4,612,984 19,190,964
59,276 (3,058,223)
(233,787)
3,338,263
(578,511)
(233,787) 2,759,752
43,752 (174,511) (298,471)
1,758,073
1,002,540 22,667,022
$ 1,801,825 $ 828,029 $ 22,368,551
121
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for services $ 455,000 $ 525,175 $ 70,175
Interest 3,000 3,650 650
Total revenues 458,000 528,825 70,825
EXPENDITURES
General government
Court related
Total expenditures
30,000
626,139
656,139
25,197 4,803
550,754 75,385
575,951 80,188
Net change in fund balances (198,139) (47,126) 151,013
Fund balances at beginning of year 198,139 1,156,268 958,129
Fund balances at end of year $ $ 1,109,142 $ 1,109,142
122
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 2,447,102 $ 1,924,693 $ (522,409)
Charges for services 26,319 26,319
Interest 1,250 1,250
Total revenues 2,447,102 1,952,262 (494,840)
EXPENDITURES
Human services 2,449,983 1,904,893 545,090
Total expenditures 2,449,983 1,904,893 545,090
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(2,881) 47,369 50,250
2,881 348,550 345,669
$ $ 395,919 $ 395,919
123
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Public safety
Total expenditures
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
- $ 35,430 $ 35,430
24,000 47,641 23,641
853 853
24,000 83,924 59,924
Excess of revenues over (under) expenditures 24,000 83,924
OTHER FINANCING USES
Transfers out (24,000) (24,000)
Total other financing uses (24,000) (24,000)
59,924
Net change in fund balances 59,924 59,924
Fund balances at beginning of year - 242,175 242,175
Fund balances at end of year $ $ 302,099 $ 302,099
124
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ $ 43,700 $ 43,700
Interest - 814 814
Total revenues - 44,514 44,514
EXPENDITURES
Culture/recreation 50,000 - 50,000
Total expenditures 50,000 - 50,000
Net change in fund balances (50,000) 44,514 94,514
Fund balances at beginning of year 50,000 221,208 171,208
Fund balances at end of year $ - $ 265,722 $ 265,722
125
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 579,500 $ 653,731 $ 74,231
Interest 4,750 1,125 (3,625)
Total revenues 584,250 654,856 70,606
EXPENDITURES
Culture/recreation
Total expenditures
715,937
715,937
679,599 36,338
679,599 36,338
Net change in fund balances (131,687) (24,743) 106,944
Fund balances at beginning of year 131,687 381,152 249,465
Fund balances at end of year $ - $ 356,409 $ 356,409
126
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 713,450 $ 747,375 $ 33,925
Interest - 3,676 3,676
Miscellaneous 73 73
Total revenues 713,450 751,124 37,674
EXPENDITURES
Public safety
Total expenditures
587,053
587,053
Excess of revenues over (under) expenditures 126,397
OTHER FINANCING USES
Transfers out
Total other financing uses
305,162 281,891
305,162 281,891
445,962 319,565
(193,141) (193,141)
(193,141) (193,141)
Net change in fund balances (66,744) 252,821 319,565
Fund balances at beginning of year 66,744 1,074,511 1,007,767
Fund balances at end of year $ - $ 1,327,332 $ 1,327,332
127
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 71,497 $ 63,902 $ (7,595)
Judgments, fines and forfeits - 12,739 12,739
Interest - 629 629
Total revenues 71,497 77,270 5,773
EXPENDITURES
Public safety
Human services
Total expenditures
Net change in fund balance
Fund balances at beginning of year
Fund balances at end of year
57,934
13,563
71,497
50,339 7,595
13,563 -
63,902 7,595
13,368 13,368
197,159 197,159
$ - $ 210,527 $ 210,527
128
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 55,619 $ 405,619 $ 350,000
Charges for services - 187,166 187,166
Interest 2,294 2,294
Miscellaneous - 1,867 1,867
Total revenues 55,619 596,946 541,327
EXPENDITURES
Human services 945,853 493,410 452,443
Total expenditures 945,853 493,410 452,443
Net change in fund balances (890,234) 103,536 993,770
Fund balances at beginning of year 890,234 693,567 (196,667)
Fund balances at end of year $ - $ 797,103 $ 797,103
129
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 562,753 $ 573,392 $ 10,639
Total revenues 562,753 573,392 10,639
EXPENDITURES
General government 767,524 666,728 100,796
Total expenditures 767,524 666,728 100,796
Net change in fund balances (204,771) (93,336) 111,435
Fund balances at beginning of year 204,771 (190,688) (395,459)
Fund balances at end of year $ - $ (284,024) $ (284,024)
130
Indian River County, Florida
Budgetary Comparison Schedule
Multi -Jurisdictional Law Enforcement
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ 2,410 $ 14,992 $ 12,582
Interest - 322 322
Total revenues 2,410 15,314 12,904
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures 2,410 15,314 12,904
OTHER FINANCING USES
Transfers out (2,410) (2,409) 1
Total other financing uses (2,410) (2,409) 1
Net change in fund balances - 12,905 12,905
Fund balances at beginning of year - 90,719 90,719
Fund balances at end of year $ - $ 103,624 $ 103,624
131
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Interest $ - $ 2,617 $ 2,617
Total revenues - 2,617 2,617
EXPENDITURES
Physical environment
Total expenditures
55,000
55,000
2,500 52,500
2,500 52,500
Net change in fund balances (55,000) 117 55,117
Fund balances at beginning of year 55,000 837,361 782,361
Fund balances at end of year $ - $ 837,478 $ 837,478
132
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 579,500 $ 653,731 $ 74,231
Interest 23,750 18,934 (4,816)
Miscellaneous 1,500 1,500
Total revenues 603,250 674,165 70,915
EXPENDITURES
Culture/recreation
Total expenditures
2,129,865
2,129,865
892,863 1,237,002
892,863 1,237,002
Excess of revenues over (under) expenditures (1,526,615) (218,698) 1,307,917
OTHER FINANCING SOURCES
Transfers in 112,214 112,214
Total other financing sources 112,214 112,214
Net change in fund balances (1,414,401) (106,484) 1,307,917
Fund balances at beginning of year 1,414,401 6,093,395 4,678,994
Fund balances at end of year $ - $ 5,986,911 $ 5,986,911
133
REVENUES
Intergovernmental
Interest
Miscellaneous
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
$ $ 212,765 $ 212,765
- 34 34
1,105,459 405,400 (700,059)
1,105,459
618,199 (487,260)
EXPENDITURES
Economic environment 1,310,593 1,156,547 154,046
Total expenditures 1,310,593 1,156,547 154,046
Net change in fund balances (205,134) (538,348) (333,214)
Fund balances at beginning of year 205,134 526,104 320,970
Fund balances at end of year $ - $ (12,244) $ (12,244)
134
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 42,500 $ 70,179 $ 27,679
Interest - 3,478 3,478
Total revenues 42,500 73,657 31,157
EXPENDITURES
Culture/recreation
Total expenditures
266,300
266,300
17,500 248,800
17,500 248,800
Net change in fund balances (223,800) 56,157 279,957
Fund balances at beginning of year 223,800 1,084,470 860,670
Fund balances at end of year $ - $ 1,140,627 $ 1,140,627
135
Indian River County, Florida
Budgetary Comparison Schedule
Library Bequests
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Interest $ - $ 325 $ 325
Miscellaneous - 10,000 10,000
Total revenues 10,325 10,325
EXPENDITURES
Culture/recreation
Total expenditures
65,551
65,551
55,647 9,904
55,647 9,904
Net change in fund balances (65,551) (45,322) 20,229
Fund balances at beginning of year 65,551 144,490 78,939
Fund balances at end of year $ - $ 99,168 $ 99,168
136
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ $ 369 $ 369
Interest - 196 196
Total revenues 565 565
EXPENDITURES
Human services 20,000 - 20,000
Total expenditures 20,000 - 20,000
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(20,000)
20,000
565 20,565
62,302 42,302
$ - $ 62,867 $ 62,867
137
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 1,564,033 $ 918,957 $ (645,076)
Total revenues 1,564,033 918,957 (645,076)
EXPENDITURES
General government
Human services
Total expenditures
1,564,033
1,564,033
915,326 648,707
915,326 648,707
Net change in fund balances 3,631 3,631
Fund balances at beginning of year - (5,083) (5,083)
Fund balances at end of year $ - $ (1,452) $ (1,452)
138
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ $ 36 $ 36
Interest - 69 69
Total revenues 105 105
EXPENDITURES
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
23,803
23,803
(23,803)
23,803
12,460 11,343
12,460 11,343
(12,355) 11,448
26,762 2,959
$ - $ 14,407 $ 14,407
139
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 15,000 $ - $ (15,000)
Interest 861 861
Miscellaneous 55,664 12,995 (42,669)
Total revenues 70,664 13,856 (56,808)
EXPENDITURES
Physical environment 225,664 59,780 165,884
Total expenditures 225,664 59,780 165,884
Net change in fund balances (155,000) (45,924) 109,076
Fund balances at beginning of year 155,000 258,095 103,095
Fund balances at end of year $ - $ 212,171 $ 212,171
140
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2013
REVENUES
Taxes
Permits, fees and special assessments
Interest
Total revenues
Variance
Final Actual Positive
Budget Amounts (Negative)
- $ 38 $ 38
1,330 920 (410)
56 56
1,330 1,014 (316)
EXPENDITURES
Transportation 1,928 - 1,928
Total expenditures 1,928 - 1,928
Excess of revenues over expenditures (598) 1,014 1,612
OTHER FINANCING USES
Transfers out (55) (47) 8
Total other financing uses (55) (47) 8
Net change in fund balances (653) 967 1,620
Fund balances at beginning of year 653 17,205 16,552
Fund balances at end of year $ $ 18,172 $ 18,172
141
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lake Estates
For the Year Ended September 30, 2013
REVENUES
Taxes
Permits, fees and special assessments
Interest
Total revenues
Variance
Final Actual Positive
Budget Amounts (Negative)
- $ 155 $ 155
88,174 93,173 4,999
3,325 4,074 749
91,499 97,402 5,903
EXPENDITURES
Physical environment 141,037 - 141,037
Transportation 65,000 11,390 53,610
Total expenditures 206,037 11,390 194,647
Excess of revenues over (under) expenditures (114,538) 86,012 200,550
OTHER FINANCING USES
Transfers out (4,401) (2,647) 1,754
Total other financing uses (4,401) (2,647) 1,754
Net change in fund balances (118,939) 83,365 202,304
Fund balances at beginning of year 118,939 1,233,244 1,114,305
Fund balances at end of year $ - $ 1,316,609 $ 1,316,609
142
Indian River County, Florida
Budgetary Comparison Schedule
Dodgertown Reserve
For the Year Ended September 30, 2013
REVENUES
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
Variance
Final Actual Positive
Budget Amounts (Negative)
1,153,197
1,153,197
307,003 846,194
307,003 846,194
(1,153,197) (307,003) 846,194
OTHER FINANCING SOURCES
Transfers in 600,000 600,000
Total other financing sources 600,000 600,000
Net change in fund balances (553,197) 292,997 846,194
Fund balances at beginning of year 553,197 553,204 7
Fund balances at end of year $ - $ 846,201 $ 846,201
143
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for services $ - $ 438,257 $ 438,257
Judgments, fines and forfeits - 141,351 141,351
Interest - 5,554 5,554
Total revenues - 585,162 585,162
EXPENDITURES
General government 345,824 (345,824)
Court related - 234,733 (234,733)
Total expenditures 580,557 (580,557)
Excess of revenues over (under) expenditures 4,605 4,605
OTHER FINANCING USES
Transfers out - (117,602) (117,602)
Total other financing uses (117,602) (117,602)
Net change in fund balances - (112,997) (112,997)
Fund balances at beginning of year 2,338,430 2,338,430
Fund balances at end of year $ - $ 2,225,433 $ 2,225,433
144
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 60,080 $ 60,080 $ -
Charges for services 360,480 319,291 (41,189)
Judgments, fines and forfeits 170,000 160,827 (9,173)
Miscellaneous 105,000 108,682 3,682
Total revenues 695,560 648,880 (46,680)
EXPENDITURES
Public safety 1,036,000 1,016,349 19,651
Court related 7,000 6,903 97
Total expenditures 1,043,000 1,023,252 19,748
Excess of revenues over (under) expenditures
(347,440) (374,372) (26,932)
OTHER FINANCING SOURCES
Transfers in 347,440 347,440
Total other financing sources 347,440 347,440
Net change in fund balances (26,932) (26,932)
Fund balances at beginning of year, as restated (Note 19D) 2,004,613 2,004,613
Fund balances at end of year $ - $ 1,977,681 $ 1,977,681
145
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ $ 32,724 $ 32,724
Total revenues - 32,724 32,724
EXPENDITURES
General government 36,333 (36,333)
Total expenditures - 36,333 (36,333)
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
146
(3,609) (3,609)
3,609 3,609
3,609 3,609
$ - $
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ 2,386 $ 2,386
Permits, fees and special assessments 173,876 180,895 7,019
Interest 1,084 1,603 519
Miscellaneous 3,205 2,440 (765)
Total revenues 178,165 187,324 9,159
EXPENDITURES
Transportation 230,396 205,389 25,007
Total expenditures 230,396 205,389 25,007
Excess of revenues over (under) expenditures (52,231) (18,065) 34,166
OTHER FINANCING USES
Transfers out (6,227) (4,878) 1,349
Total other financing uses (6,227) (4,878) 1,349
Net change in fund balances (58,458) (22,943) 35,515
Fund balances at beginning of year 58,458 488,061 429,603
Fund balances at end of year $ - $ 465,118 $ 465,118
147
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 1,400,016 $ 801,346 $ (598,670)
Interest - 18 18
Miscellaneous 767,203 191,266 (575,937)
Total revenues 2,167,219 992,630 (1,174,589)
EXPENDITURES
Economic environment
Total expenditures
2,167,219
2,167,219
1,056,068 1,111,151
1,056,068 1,111,151
Net change in fund balances - (63,438) (63,438)
Fund balances at beginning of year - 29,135 29,135
Fund balances at end of year $ - $ (34,303) $ (34,303)
148
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 386,334 $ 435,821 $ 49,487
Intergovernmental 839,299 883,477 44,178
Interest 5,700 5,174 (526)
Total revenues 1,231,333 1,324,472 93,139
EXPENDITURES
Debt service:
Principal 2,930,000 2,930,000
Interest 635,720 625,720 10,000
Total expenditures 3,565,720 3,555,720 10,000
Excess of revenues under expenditures (2,334,387) (2,231,248) 103,139
OTHER FINANCING SOURCES
Transfers in 2,275,000 2,275,000
Total other financing sources 2,275,000 2,275,000
Net change in fund balances (59,387) 43,752 103,139
Fund balances at beginning of year 59,387 1,758,073 1,698,686
Fund balances at end of year $ - $ 1,801,825 $ 1,801,825
149
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 4,592,870 $ 4,664,885 $ 72,015
Interest 11,875 7,375 (4,500)
Total revenues 4,604,745 4,672,260 67,515
EXPENDITURES
Debt service:
Principal 3,120,000 3,120,000 -
Interest 1,502,263 1,492,984 9,279
Total expenditures 4,622,263 4,612,984 9,279
Excess of revenues over (under) expenditures (17,518) 59,276 76,794
OTHER FINANCING USES
Transfers out (252,083) (233,787) 18,296
Total other financing uses (252,083) (233,787) 18,296
Net change in fund balances (269,601) (174,511) 95,090
Fund balances at beginning of year 269,601 1,002,540 732,939
Fund balances at end of year $ - $ 828,029 $ 828,029
150
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax
For the Year Ended September 30, 2013
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 11,458,911 $ 14,422,829 $ 2,963,918
Permits, fees and special assessments - 45,568 45,568
Intergovernmental 7,204,754 1,392,962 (5,811,792)
Interest 95,000 138,786 43,786
Miscellaneous 4,220,827 416,131 (3,804,696)
Total revenues 22,979,492 16,416,276 (6,563,216)
EXPENDITURES
Capital projects 35,244,117 13,037,552 22,206,565
Total expenditures 35,244,117 13,037,552 22,206,565
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
(12,264,625) 3,378,724 15,643,349
(1,417,655) (1,417,655)
(1,417,655) (1,417,655)
Net change in fund balances (13,682,280) 1,961,069 15,643,349
Fund balances at beginning of year 13,682,280 50,482,794 36,800,514
Fund balances at end of year $ - $ 52,443,863 $ 52,443,863
151
152
INTERNAL SERVICE FUNDS
Fleet Management -
Self Insurance -
Geographic Information Systems -
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.
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.
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.
153
Indian River County, Florida
Combining Statement of Net Position
Internal Service Funds
September 30, 2013
Geographic
Fleet Self Information
Management Insurance Systems
Totals
ASSETS
Current assets:
Cash and cash equivalents $ 1,090 $ 32,416,004 $ 2,116,622 $ 34,533,716
Accounts receivable - net 125,247 8,986 134,233
Due from other governments 112,432 112,432
Interest receivable - 20,321 1,397 21,718
Inventories 176,960 - 176,960
Prepaid items - 1,193,740 32,283 1,226,023
Total current assets 415,729 33,639,051 2,150,302 36,205,082
Non-current assets:
Capital assets - depreciable 282,540 17,986 825,169 1,125,695
Accumulated depreciation (236,341) (17,046) (658,909) (912,296)
Total non-current assets 46,199 940 166,260 213,399
Total assets 461,928 33,639,991 2,316,562 36,418,481
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 70,285 35,787 13,355 119,427
Claims payable - 2,197,855 2,197,855
Due to other funds 317,000 317,000
Accrued compensated absences 17,246 9,175 5,572 31,993
Total current liabilities (payable from current assets) 404,531 2,242,817 18,927 2,666,275
Non-current liabilities:
Claims payable - 5,876,145 5,876,145
Accrued compensated absences 15,008 6,826 21,834
Total non-current liabilities 15,008 5,882,971 5,897,979
Total liabilities 419,539 8,125,788 18,927 8,564,254
NET POSITION
Net investment in capital assets 46,199 940 166,260 213,399
Unrestricted (3,810) 25,513,263 2,131,375 27,640,828
Total net position $ 42,389 $ 25,514,203 $ 2,297,635 $ 27,854,227
154
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2013
OPERATING REVENUES
Charges for services
Total revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and other operating
Depreciation
Total operating expenses
Operating income (loss)
Fleet
Management
$ 3,638,516 $
3,638,516
433,241
3,232,114
31,927
3,697,282
NONOPERATING REVENUES (EXPENSES)
Interest income
Gain on disposal of equipment
Total nonoperating revenues
Income (loss) before transfers
Transfers in
Change in net position
Total net position - beginning
Total net position - ending
(58,766)
1,021
1,021
(57,745)
(57,745)
Self
Insurance
Geographic
Information
Systems
Totals
18,310,176 $ 276,250 $ 22,224,942
18,310,176
1,179,793
16,070,893
145
17,250,831
276,250 22,224,942
257,671
63,197
112,380
1,870,705
19,366,204
144,452
433,248 21,381,361
1,059,345 (156,998)
88,452
88,452
6,114
6,114
1,147,797 (150,884)
35,488
1,183,285 (150,884)
843,581
94,566
1,021
95,587
939,168
35,488
974,656
100,134 24,330,918 2,448,519 26,879,571
$ 42,389 $ 25,514,203 $ 2,297,635 $ 27,854,227
155
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2013
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
Fleet
Management
Self
Insurance
3,615,187 $ 19,782,139 $
(3,288,267) (16,117,265)
(415,693) (1,179,524)
(88,773) 2,485,350
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers -
Proceeds from advances from other funds 92,000
Net cash provided by noncapital financing activities 92,000
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
1,021
(3,415)
(2,394)
35,488
35,488
(1,085)
(1,085)
82,957
82,957
Net increase (decrease) in cash and cash equivalents 833 2,602,710
Cash and cash equivalents at beginning of year 257 29,813,294
Geographic
Information
Systems
276,250 $
(51,486)
(266,631)
Totals
23,673,576
(19,457,018)
(1,861,848)
(41,867) 2,354,710
(1,260)
(1,260)
5,805
5,805
35,488
92,000
127,488
1,021
(5,760)
(4,739)
88,762
88,762
(37,322) 2,566,221
2,153,944 31,967,495
Cash and cash equivalents at end of year $ 1,090 $ 32,416,004 $ 2,116,622 $ 34,533,716
Classified as:
Current assets $ 1,090 $ 32,416,004 $ 2,116,622 $ 34,533,716
156
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2013
Geographic
Fleet Self Information
Management Insurance Systems
Totals
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ (58,766) $ 1,059,345 $ (156,998) $ 843,581
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 31,927 145 112,380 144,452
(Increase) Decrease in assets:
Accounts receivable (34,748) 1,468,850 1,434,102
Due from other governments 11,419 3,113 14,532
Inventories 41,236 - 41,236
Deposits - (48,837) 252 (48,585)
Increase (Decrease) in liabilities:
Accounts payable (97,389) 2,465 11,459 (83,465)
Accrued compensated absences 17,548 269 (8,960) 8,857
Total adjustments (30,007) 1,426,005 115,131 1,511,129
Net cash provided by (used in) operating activities $ (88,773) $ 2,485,350 $ (41,867) $ 2,354,710
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ - $ 14,222 $ 978 $ 15,200
157
158
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial
capacity by the County.
159
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2013
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
October 1,
2012
Additions
Deductions
Balance
September 30,
2013
11,550,559 $ 364,255,312 $ 362,648,388 $ 13,157,483
79,993 9,421 45,706 43,708
46 46
11,630,552 $ 364,264,779 $ 362,694,140 $ 13,201,191
637,964 $ 63,726,381 $ 63,975,354 $ 388,991
5,114,411 317,819,438 318,502,869 4,430,980
5,878,177 37,277,229 34,774,186 8,381,220
11,630,552 $ 418,823,048 $ 417,252,409 $ 13,201,191
160
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 Page(s)
Financial Trends (Schedules 1 - 5)
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)
These schedules contain information to help the reader assess the County's most
significant local revenue source, the property tax.
Debt Capacity (Schedules 10 — 14)
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 15 — 16)
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 17 — 20)
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 21— 25)
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.
161
162-172
173-177
178-185
186-187
188-199
200-204
Indian River County, Florida
Net Position by Component (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2004 2005 2006 2007
Governmental activities
Net investment in capital assets $ 242,057,257 $ 264,193,976 $ 278,213,361 $ 374,501,758 (A)
Restricted 128,024,220 150,019,583 158,046,966 173,236,941 (B)
Unrestricted 22,697,741 60,737,524 121,561,389 60,726,026 (B)
Total governmental activities net position $ 392,779,218 $ 474,951,083 $ 557,821,716 $ 608,464,725
Business -type activities
Net investment in capital assets $ 122,280,348 $ 134,402,945 $ 152,168,135 $ 174,540,682
Restricted 57,825,011 81,084,337 89,071,967 83,840,471
Unrestricted 44,084,834 52,553,913 53,751,547 47,338,783
Total business -type activities net position $ 224,190,193 $ 268,041,195 $ 294,991,649 $ 305,719,936
Primary government
Net investment in capital assets $ 364,337,605 $ 398,596,921 $ 430,381,496 $ 549,042,440
Restricted 185,849,231 231,103,920 247,118,933 257,077,412
Unrestricted 66,782,575 113,291,437 175,312,936 108,064,809
Total primary government net position $ 616,969,411 $ 742,992,278 $ 852,813,365 $ 914,184,661
(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 position.
162
Schedule 1
2008 2009 2010 2011 2012 2013
$ 445,541,175 $ 461,709,848 $ 480,243,738 $ 492,300,301 $ 509,076,923 $ 518,255,719
163,119,085 158,306,364 132,928,838 125,452, 516 121,189,228 117,321, 755
55,081,576 55,914,407 85,810,359 84,860,897 76,523,757 71,830,421
$ 663,741,836 $ 675,930,619 $ 698,982,935 $ 702,613,714 $ 706,789,908 $ 707,407,895
$ 206,069,196 $ 223,273,040 $ 223,375,337 $ 217,876,742 $ 211,631,529 $ 210,772,860
75,814,407 51,021,928 27,898,292 24,230,101 17,941,773 20,871,037
24,624,779 37,122,462 54,592,201 61,041,483 70,286,599 68,686,611
$ 306,508,382 $ 311,417,430 $ 305,865,830 $ 303,148,326 $ 299,859,901 $ 300,330,508
$ 651,610,371 $ 684,982,888 $ 703,619,075 $ 710,177,043 $ 720,708,452 $ 729,028,579
238,933,492 209,328,292 160,827,130 149,682,617 139,131,001 138,192,792
79,706,355 93,036,869 140,402,560 145,902,380 146,810,356 140,517,032
$ 970,250,218 $ 987,348,049 $ 1,004,848,765 $ 1,005,762,040 $ 1,006,649,809 $ 1,007,738,403
163
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
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
2004 2005 2006 2007
23,287,533 (C) $ 18,165,441 $ 14,642,124 $ 15,506,424
54,052,726 (C) 54,271,542 58,578,985 42,050,455 (J)
1,039,550 2,850,738 8,490,570 (E) 34,998,512 (E)
21,335,262 (C) 21,726,741 22,011,006 26,173,989
639,826 696,448 1,077,731 950,024
7,664,422 (C) 7,385,726 12,270,899 (F) 13,925,599
9,616,323 (C) 10,775,291 11,546,217 31,196,252 (H;
6,221,983 5,704,361 6,014,793 6,870,466
1,313,340 1,246,237 2,315,372 (G) 3,220,907 (G-
125,170,965 122,822,525 136,947,697 174,892,628
Business -type activities:
Water and sewer 26,907,959 30,260,577 33,387,825 37,518,226
Solid waste 14,103,641 (C) 19,156,896 (C) 11,558,323 10,331,431
Golf course 2,806,115 2,939,321 3,058,307 3,084,837
Other 2,532,617 3,768,301 4,202,588 3,703,658
Total business -type activities expenses 46,350,332 56,125,095 52,207,043 54,638,152
Total primary government expenses $ 171,521,297 $ 178,947,620 $ 189,154,740 $ 229,530,780
Program Revenues
Governmental activities:
Charges for services:
General government $ 7,593,486 $ 8,779,557 $ 10,437,774 $ 7,957,770
Public safety 3,927,664 4,712,594 7,151,354 5,728,644
Physical environment 92,354 631,456 854,219 1,447.553
Transportation 11,182,015 37,384,003 (D) 16,619,853 5,618,055
Human service 604,379 821,811 754,916 545,305
Cultural/recreation 813,827 800,555 5,480,612 2,425,679
Corot related 1,449,771 2,294,908 2,466,882 2,800,680
Operating grants and contributions 9,270,478 16,310,024 (C) 13,420,891 25,561,608 (I)
Capital grants and contributions (A) 11,784,511 (C) 6,069,586 13,081,116 13,441,915
Total govemmental activities program revenues 46,718,485 77,804,494 70,267,617 65,527,209
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
(B)
22,984,883 25,579,512 28,029,062 27,541,849
11,160,368 16,874,618 13,741,864 11,946,566
3,099,287 3,247,815 3,306,424 3,374,772
3,202,380 4,535,869 4,746,668 3,250,585
5,760,512 8,518,757 1,235,413 72,828
19,138,278 (B) 38,112,182 (B) 26,781,118 (B) 9,729,371
65,345,708 96,868,753 77,840,549 55,915,971
$ 112,064,193 $' 174,673,247 $ 148,108,166 $ 121,443,180
Notes:
(A) County received grants for the purchase of environmentally sensitive lands and beach erosion; recorded as capital assets.
(13) 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.
(1) Grants received for beach renourishment, environmental sensitive lands, and various road projects.
(I) 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 t6 reduced impact fees collections (slowdown in construction activity).
(Q) Received Neighborhood Stabilization Grant of $2.6 million.
(R) Contribution of $4.2 milion for Sector 3 beach renourishment from Sebastian Inlet District.
(0) State Shared Revenues reclassified to operating grants and contributions.
164
Schedule 2
2008 2009 2010 2011 2012 2013
7,416,850 $ 25,837,007 $ 23,506,576 $ 21,324,680 $ 19,069,181 $ 20,637,750
70,973,212 (K) 71,221,082 68,235,492 67,393,943 66,456,674 66,178,467
27,974,837 813,580 1,405,690 1,353,074 2,424,109 1,858,307
25,742,974 23,711,653 20,861,672 22,300,819 23,629,799 26,286,998
4,583,763 (L) 661,897 2,525,988 2,056,453 1,986,091 2,550,157
12,590,578 8,453,562 7,370,995 7,762,962 7,749,253 6,818,023
9,510,029 24.559,117 (0) 16,009,122 16,484.242 18,089,432 19,369,326
7,265,471 6,765,203 6,251,773 5,774,032 5,635,245 5,835,184
2,764,803 2,906,802 2,714,422 2,526,114 2,350,241 2,087,204
168,822,517 164,929,903 148,881,730 146,976,319 147,390,025 151,621,416
41,354,025 (M) 37,523,097 34,748,276 33,818,640 34,246,967 33,815,749
11,355,697 10,407,437 10,683,984 10,370,476 10,659,004 10,405,143
2,775,497 2,937,141 2,715,607 2,537,665 2,451,603 2,537,525
3,010,668 2,168,894 1,858,420 1,623,862 1,487,515 1,547,815
58,495,887 53,036,569 50,006,287 48,350,643 48,845,089 48,306,232
227,318,404 $ 217,966,472 $ 198,888,017 $ 195,326,962 $ 196,235,114 $ 199,927,648
6,943,354 $ 6,028,321 $ 5,889,678 $ 5,845,567 $ 5,304,385 $ 5,482,814
5,754,082 5,884,118 5,267,209 6,076,085 5,852,093 6,625,924
972,865 636,219 21,006 24,204 20,923 5,900
5,478,734 2,157,456 (P) 1,514,132 (P) 2,090,194 2,345,186 2,768,107
331,856 204,299 295,812 346,689 358,279 213,485
1,730,471 1,322,785 1,328,225 1,340,550 1,397,660 1,765,912
2,971,093 2,375,430 545,967 501,980 414,356 1,301,135
15,227,659 11,077,388 15,772,265 (Q) 7,926,832 8,230,411 26,921,514 (S)
29,165,641 (N) 15,032,731 7,016,429 (R) 1,937,488 7,053,494 6,681,421
68,575,755 44,718,747 37,650,723 26,089,589 30,976,787 51,766,212
27,876,971 26,957,649 27,738,920 27,842,092 28,361,246 28,522,667
10,758,812 9,713,883 8,972,136 9,221,396 9,582,955 9,998,410
3,313,994 3,279,135 3,148,029 3,163,062 3,216,471 3,072,332
2,726,888 1,572,693 1,612,870 1,588,934 1,735,713 2,018,104
217,751 1,194,994 - - - -
10,802,859 3,748,585 1,713,074 1,923,271 2,545,759 4,700,473
55,697,275 46,466,939 43,185,029 43,738,755 45,442,144 48,311,986
$ 124,273,030 $ 91,185,686 $ 80,835,752 $ 69,828,344 $ 76,418,931 $ 100,078,198
Continued
165
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expenses
General Revenues and Other Changes in Net Position
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
Change in Net Position
Governmental activities
Business -type activities
Total primary government change in net position
Notes:
2004
$ (78,452,480) (A) $
18,995,376 (B)
$ (59,457,104) $
$ 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
2005
2006
2007
(45,018,031) $ (66,680,080) $ (109,365,419)
40,743,658 (B) 25,633,506 1,277,819
(4,274,373) $ (41,046,574) $ (108,087,600)
$ 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
$ 82,448,807
2,465,462
21,855,885
9,318,394
13,043,670
1,104,116
12,163,993
2,089,540
5,060,846
149,550,713
(C) $ 92,592,309
7,094,485
20,738,502
9,732,773
12,368,421
(D)
6,335,240
42,554
(5,060,846) (D)
16,004,890
1,583,343
(106,295)
160,008,428
9,209,517
134,656
106,295
1,789,829 3,107,344 1,316,948 9,450,468
$ 112,753,281 $ 130,297,240 $ 150,867,661 $ 169,458,896
$ 32,510,972 $ 82,171,865 $ 82,870,633 $ 50,643,009
20,785,205 43,851,002 26,950,454 10,728,287
$ 53,296,177 $ 126,022,867 $ 109,821,087 $ 61,371,296
(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.
(E) Gain on sale of capital assets due to the privatization of the County landfill.
(F) State Shared Revenues reclassified to operating grants and contributions.
166
Schedule 2
2008 2009 2010 2011 2012 2013
$ (100,246,762) $ (120,211,156) $ (111,231,007) $ (120,886,730) $ (116,413,238) $ (99,855,204)
(2,798,612) (6,569,630) (6,821,258) (4,611,888) (3,402,945) 5,754
$ (103,045,374) $ (126,780,786) $ (118,052,265) $ (125,498,618) $ (119,816,183) $ (99,849,450)
$ 92,483,561 $ 87,265,989 $ 78,670,463 $ 69,856,750 $ 64,753,566 $ 62,305,177
7,343,180 7,131,231 5,933,535 5,600,767 5,574,183 4,664,885
20,088,899 19,292,179 19,022,728 19,261,033 20,144,820 21,035,360
9,443,399 9,670,169 9,254,621 8,730,861 8,620,401 8,818,952
11,596,227 11,227,450 17,487,653 17,328,867 17,908,806 - (F)
10,347,019 5,747,573 2,079,873 1,299,894 668,012 637,099
2,170,033 2,018,901 2,061,415 3,082,481 3,079,701 2,903,771
2,051,555 (7,452,905) (25,965) (643,144) (32,957)
155, 523, 873 134,900, 587 134,484,323 124,517,509 120,716,532
100,365,244
417,500 - -
5,553,239 3,685,805 1,173,512 723,870 600,116 427,041
85,374 7,893 70,181 562,651 (E) 8,400 37,812
(2,051,555) 7,452,905 25,965 643,144 32,957
3,587,058 11,564,103 1,269,658 1,929,665 641,473 464,853
$ 159,110,931 $ 146,464,690 $ 135,753,981 $ 126,447,174 $ 121,358,005 $ 100,830,097
$ 55,277,111 $ 14,689,431 $ 23,253,316 $ 3,630,779 $ 4,303,294 $ 510,040
788,446 4,994,473 (5,551,600) (2,682,223) (2,761,472) 470,607
$ 56,065,557 $ 19,683,904 $ 17,701,716 $ 948,556 $ 1,541,822 $ 980,647
167
Indian River County, Florida
Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
2004 2005 2006 2007
General Fund
Reserved $ - $ - $ - $
Unreserved 20,623,340 30,152,425 45,300,882 50,321,956
Total general fund $ 20,623,340 $ 30,152,425 $ 45,300,882 $ 50,321,956
All other governmental funds
Reserved $ 47,458,489 $ 50,257,972 $ 38,075,117 $ 23,047,708
Unreserved, reported in:
Special revenue funds 74,344,120 115,822,479 183,318,603 149,564,925
Total all other governmental funds $ 121,802,609 $ 166,080,451 $ 221,393,720 $ 172,612,633
Total governmental funds $ 142,425,949 $ 196,232,876 $ 266,694,602 $ 222,934,589
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.
(B) Reclassified emergency/disaster and budget stabilization reserves from Committed to Unassigned
168
Schedule 3
2008 2009 2010(A) 2011 2012 2013
$ 8,000,000 $ 8,000,000 $ N/A $ N/A $ N/A $ N/A
44,874,259 47,616,773 N/A N/A N/A N/A
$ 52,874,259 $ 55,616,773 $ N/A $ N/A $ N/A $ N/A
$ 49,667,320 $ 53,252,040 $ N/A $ N/A $ N/A $ N/A
N/A N/A N/A N/A
96,950,614 91,600,421 N/A N/A N/A N/A
$ 146,617,934 $ 144,852,461 $ N/A $ N/A $ N/A $ N/A
$ 199,492,193 $ 200,469,234 $ N/A $ N/A $ N/A $ N/A
$ 162,760 $ 363,619 $ 311,241 $ 1,224,835
18,290 50,015 1,120,087 1,000,000
21,757,565 21,041,045 2,374,790 (B) 2,370,079
1,415,000 1,660,000 1,808,000 900,000
33,160,873 33,694,612 48,722,929 (B) 44,385,674
$ 56,514,488 $ 56,809,291 $ 54,337,047 $ 49,880,588
$ 2,316,373 $ 814,858 $ 557,128 $ 50,788
130,175,284 125,082,370 116,379,943 112,523,743
4,691,573 4,661,146 1,483,393 1,481,312
9,471,022 10,013,457 11,288,602 8,964,238
(1,184,722) (354,995) (202,971) (339,223)
$ 145,469,530 $ 140,216,836 $ 129,506,095 $ 122,680,858
$ 201,984,018 $ 197,026,127 $ 183,843,142 $ 172,561,446
169
Indian River County, Florida
Changes in Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
Taxes
Permits, fees, and special assessments
Intergovermnental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
2004 2005 2006
2007
95,675,370 $ 104,012,925 $ 116,088,548 $ 130,158,069
11,788,168 38,043,246 26,285,557 8,397,437
26,588,303 35,973,818 38,261,489 54,252,074
14,282,587 18,151,546 18,204,600 18, 997,529
1,508,786 1,715,875 2,069,593 2,403,093
1,999,574 4,083,164 10,574,489 15,777,318
1,791,613 1,398,166 4,597,369 3,495,610
Total Revenues 153,634,401 203,378,740 216,081,645
233,481,130
Expenditures
Current:
General government 19,996,339 20,107,020 21,831,839 24,815,255
Public safety 55,792,130 57,045,359 65,975,870 72,907,822
Physical environment 1,751,551 2,989,117 8,955,262 34,324,331
Transportation 21,928,790 21,285,597 30,610,413 49,503,680
Economic environment 627,914 713,019 1,054,239 968,227
Human service 7,185,411 7,270,391 12,470,222 13,862,463
Culture/recreation 13,179,751 15,062,134 16,380,438 23,751,173
Court related 6,210,614 5,630,734 5,915,727 6,649,724
Debt service:
Principal 2,394,142 2,239,663 2,615,659 4,870,876
Interest and fiscal charges 1,333,392 1,255,837 1,790,431 3,255,767
Capital outlay 10,994,900 15,779,577 37,848,475 42,489,997
Total Expenditures 141,394,934 149,378,448 205,448,575 277,399,315
Excess of revenues over
(under) expenditures 12,239,467 54,000,292 10,633,070 (43,918,185)
Other Financing Sources (Uses)
Debt issuance 49,996,735 -
Payments from capital leases 291,562 264,467
Transfers out (193,611) (193,365) (236,067) (19,736,023)
Transfers in 10,067,988 19,629,728
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
97,951 (193,365) 59,828,656 158,172
12,337,418 $ 53,806,927 $ 70,461,726 $ (43,760,013)
3.1% 3.0%
(A) Early call of remaining General Obligation Bonds, Series 2001 of $3.6 million.
(B) Payoff of portion of Spring Training Bonds, Series 2001 of $2.275 million.
170
3.4% 4.8%
Schedule 4
2008 2009 2010 2011 2012 2013
$ 119,915,640 $ 113,689,399 $ 103,626,726 $ 94,718,550 $ 90,472,569 $ 88,005,422
15,888,780 12,433,598 11,322,039 11,189,393 11,486,235 12, 769, 844
49,065,955 34,305,682 37,687,574 30,453,182 29,759,832 30,086,479
18,678,544 16,852,653 14, 665, 805 15,030,329 14,760,125 15,887,241
2,137,413 1,792,517 852,012 936,995 739,275 778,575
10,052,801 5,721,869 2,061,385 1,173,103 613,023 570,559
2,449,035 2,489,532 2,383,493 4,175,614 5,237,426 3,841,294
218,188,168 187,285,250 172,599,034 157,677,166 153,068,485
151,939,414
25,323,595 22,566,113 20,894,116 19,271,196 20,477,898 19,056,322
73,982,636 74,813,164 71,489,613 70,432,615 67,761,985 66,908,328
28,111,033 910,213 1,131,173 1,371,734 1,751,623 771,942
50,231,090 38,111,512 27,497,907 28,432,207 29,058,310 28,223,229
4,579,574 653,547 2,520,339 2,099,698 2,021,184 2,581,401
12,619,575 8,621,760 7,267,406 7,625,369 6,888,883 6,952,460
21,068,267 15,450,688 18,453,642 14,706,194 13,808,303 11,538,809
6,940,682 6,620,830 6,214,831 5,983,085 5,860,925 6,054,822
5,069,591 5,120,000 5,315,000 4,270,000 8,060,000 (A) 6,050,000 (B)
2,803,585 2,948,758 2,758,138 2,562,374 2,426,083 2,118,704
11,617,867 10,435,212 7,487,068 5,825,287 8,108,370 13,037,552
242,347,495 186,251,797 171,029,233 162,579,759 166,223,564 163,293,569
(24,159,327) 1,033,453
1,569,801 (4,902,593) (13,155,079) (11,354,155)
126,000
(13,254,013) (14,366,145) (17,057,014) (8,918,267) (11,622,984) (12,540,187)
13,844,944 14,309,733 17,001,997 8,862,969 11,595,078 12,504,699
716,931 (56,412) (55,017) (55,298) (27,906) (35,488)
$ (23,442,396) $ 977,041 $ 1,514,784 $ (4,957,891) $ (13,182,985) $ (11,389,643)
5.0% 5.4% 5.6% 5.0% 7.6% 6.0%
171
Indian River County, Florida
Tax Revenues by Source, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Schedule 5
Fiscal Year Property (A) Sales & Use Tourist Franchise (B) Gasoline Other Total
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
2012 70,327,749 13,708,911 1,604,920 3,329,183 1,501,806 90,472,569
2013 66,970,062 14,422,829 1,743,283 3,303,751 1,565,497 88,005,422
(A) The County 's primary source of revenue is property taxes, amounting to 76 percent of Governmental Funds tax
revenues in 2013. 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.
172
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property (Unaudited)
Last Ten Fiscal Years
Schedule 6
Fiscal
Year
Real
Property
Actual Value
2004 $ 13,547,372,018 $
2005 15,716,463,269
2006 19,265,033,998
2007 25,458,676 130
Personal
Property
Actual Value
693,374,322 $
699,716,008
712,011,582
755,187,275
Total
Actual Value
14,240,746,340
16,416,179,277
19,977,045,580
26 213 863 405
Less:
Tax -Exempt
Property
Total Taxable
Assessed
Value
$ 3,556,717,407 $ 10,684,028,933
4,236,183,618
5,734,060,645
8,366,701,791
12,179,995,659
14,242,984,935
17,847,161,614
Total
Direct
Tax Rate
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
2012 17,291,910,945 644,205,795 17,936,116,740 4,731,112,173 13,205,004,567
2013 16,563,604,291 635,119,066 17,198,723,357 4,497,471,382 12,701,251,975
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1, 2012 taxable values apply to the fiscal year ending September 30, 2013.
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.
173
5.5181
5.1563
4.9173
4.3250
4.1037
4.1493
4.1666
4.1625
4.1625
4.1625
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates (Unaudited)
Last Ten Fiscal Years
County direct rate
General fund
Municipal service
Total direct rate (A)
County -wide district school board rate
Other County -wide rates
Emergency Management Services District
Land acquisition bond
Total other County -wide rates
Total County -wide rate (B)
2004 2005 2006 2007
3.8377
1.6804
5.5181
3.6233
1.5330
5.1563
3.5204
1.3969
4.9173
3.1914
1.1336
4.3250
8.7100 8.4990 8.2400 7.4430
2.1871
0.2344
2.4215
1.9836
0.2106
2.1942
1.9911
0.1789
2.1700
1.7639
0.4108
2.1747
16.6496 15.8495 15.3273 13.9427
City rates
Fellsmere 5.7500 5.7500 5.7500 5.7500
Indian River Shores 1.4730 1.4730 1.4730 1.4730
Sebastian 4.5904 4.5904 3.9325 3.0519
Orchid 0.8954 0.7508 0.6900 0.4525
Vero Beach 2.1425 2.1425 2.2925 2.1425
Average of cities rates
Other special district rates
2.9703 2.9413 2.8276 2.5740
2.1548 1.8923
(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
174
1.6082 1.4795
Schedule 7
2008 2009 2010 2011 2012 2013
3.0202
1.0835
4.1037
3.0689
1.0804
4.1493
7.5380 7.0400
1.7201
0.4082
2.1283
1.7148
0.4220
2.1368
13.7700 13.3261
3.0892 3.0892 3.0892 3.0892
1.0774 1.0733 1.0733 1.0733
4.1666 4.1625 4.1625 4.1625
7.5960 8.2500 8.2440 8.3130
1.7148
0.3879
2.1027
1.7148
0.4087
2.1235
13.8653 14.5360
4.4301 4.4300 4.4300
1.3923 1.3923 1.3923
2.9917 3.3456 3.3456
0.4494 0.4550 0.4550
1.9367 1.9367 1.9367
2.2400 2.3119 2.3119
4.4300
1.4105
3.3041
0.4550
1.9367
2.3073
1.7148 1.7148
0.4364 0.3799
2.1512 2.0947
14.5577 14.5702
5.2455 5.4999
1.4731 1.4731
3.3041 3.7166
0.4550 0.5000
2.0336 2.0336
2.5023 2.6446
1.3817 1.5362 1.7515 1.7663 1.6856 1.6859
175
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Year 2013 and Year 2004
Schedule 8
2013 2004
Real Percentages Real Percentages
Property of Total Property of Total
Assessed Assessed Assessed Assessed
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Florida Power & Light $ 102,669,719 1 0.81% $ 69,651,488 2 0.65%
Disney Vacation Dev. Inc. 70,674,710 2 0.56 70,327,615 1 0.66
Windsor Properties 37,828,560 3 0.30 49,577,379 5 0.46
BellSouth Telecomm Inc. 35,742,953 4 0.28 57,062,169 3 0.53
Adult Community Services Inc. 32,682,140 5 0.26 31,738,000 8 0.30
Johns Island Club Inc. 29,794,930 6 0.23 32,456,566 7 0.30
Sebastian Hospital Inc. 29,105,664 7 0.23 -
I.R. Mall Associates Ltd. 27,891,780 8 0.22 50,431,333 4 0.47
Health Care REIT Inc 23,713,180 9 0.19 -
The New Piper Aircraft 23,373,485 10 0.18 34,595,801 6 0.32
Wal-Mart Stores - 28,954,047 9 0.27
Fellsmere Joint Venture - 26,445,960 10 0.25
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 413,477,121
Total County Taxable Valuation
(from schedule 6)
2.46% $ 451,240,358
$ 12,701,251,975 $ 10,684,028,933
Source: Indian River County Property Appraiser
176
3.58%
Indian River County, Florida
Property Tax Levies And Collections (Unaudited)
Last Ten Fiscal Years
Schedule 9
Year
Percent of Percent of
Total Current Current Tax Delinquent Total Total Tax
Tax Tax Collections Tax Tax Collections
Levy Collections To Tax Levy Collections (1) Collections To Tax Levy
2004 $ 72,306,331 $ 69,906,761 96.68% $ 176,345 $ 70,083,106 96.93%
2005 76,748,078 73,991,702 96.41 111,220 74,102,922 96.55
2006 87,754,823 84,736,835 96.56 34,344 84,771,179 96.60
2007 102,986,045 99,404,127 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
2012 72,668,518 70,200,922 96.60 133,385 70,334,307 96.79
2013 69,251,173 66,838,348 96.52 111,341 66,949,689 96.68
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.
177
Indian River County, Florida
Ratios of Outstanding Debt by Type (Unaudited)
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)
2004 $ 16,080,000 $ 434,938 $ 15,515,000 $ 5,989,843 $ - $ 68,901,114
2005 14,385,000 380,275 15,025,000 5,544,471 263,237 64,809,132
2006 62,630,060 14,520,000 5,089,099 193,786 62,416,115
2007 58,441,835 8,591 14,000,000 4,618,728 110,025 59,908,097
2008 53,958,611 13,455,000 4,138,356 28,126 57,285,080
2009 49,305,387 12,895,000 3,652,985 56,123,413
2010 44,482,163 12,310,000 3,147,614 53,016,507
2011 40,723,939 11,705,000 2,632,243 49,789,603
2012 33,200,714 11,075,000 2,101,871 46,462,698
2013 29,987,489 8,145,000 43,020,793
(A) General Obligation Bonds include Series 2001 and Limited General Obligation Bonds, Series 2006.
The remaining balance of the 2001 issue was called early on July 1, 2012.
This information is also presented on Schedules 11 and 13.
(B) Recreational Revenue Refunding Bonds, Series 2003. The remaining balance was called early on 9/30/2013.
(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 may be found in Note 13.
Source for per capita income is University of Florida, Bureau of Economic and Business Research.
178
Schedule 10
Percentage
Total of Total Debt Debt
Primary to Personal Per
Government Income (E) Capita (E)
$ 106,920,895 1.82% $ 859
100,407,115 1.57 773
144,849,060 2.07 1,071
137,087,276 1.76 981
128,865,173 1.68 910
121,976,785 1.60 862
112,956,284 1.69 818
104,850,785 1.48 756
92,840,283 1.25 666
81,153,282 (D) 581
179
Indian River County, Florida
Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita (Unaudited)
Last Ten Fiscal Years Schedule 11
Fiscal
Year Population (A)
Taxable
Value (A)
2004 126,829 $ 10,684,028,933
2005 130,043
2006 135,262
2007 139,757
2008 141,667
2009 141,475
2010 138,028
2011 138,694
2012 139,446
2013 139,586
12,179,995,659
14,242,984,935
17,847,161,614
18,580,296,938
17,449,270,077
15,796,158,693
14,139,034,830
13,205,004,567
12,701,251,975
Gross General
Obligation
Bonded Debt
$ 16,080,000 $
14,385,000
62,630,060
58,441,835
53,958,611
49,305,387
44,482,163
40,723,939
33,200,714
29,987,489
Debt Service
Monies Net Bonded
Available (A) Debt
Ratio Of
Net Bonded
Debt To
Taxable Value
867,776 $ 15,212,224 0.0014
1,106,353 13,278,647 0.0011
1,375,837 61,254,223 0.0043
1,956,189 56,485,646 0.0032
2,530,612 51,427,999 0.0028
2,841,769 46,463,618 0.0027
1,845,314 42,636,849 0.0027
1,743,781 38,980,158 0.0028
1,002,540 32,198,174 0.0024
828,029 29,159,460 0.0023
Net Bonded
Debt Per
Capita
119.9428
102.1097
452.8561
404.1704
363.0203
328.4228
308.9000
281.0515
230.9007
208.8996
(A) Columns are provided as additional information for General Obligation Bonds (G.O.B.), Series 2001 and Limited
G.O.B., Series 2006. The remaining balance of the 2001 issue was called early on July 1, 2012. Total taxable values are
also presented in Schedule 6.
Gross G.O.B. debt is also presented on Schedules 10 and 13.
Source of population data is the University of Florida, Bureau of Economic and Business Research.
180
Indian River County, Florida
Computation of Legal Debt Margin (Unaudited)
September 30, 2013
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 sets no legal debt limit.
181
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt (Unaudited)
September 30, 2013
Schedule 13
Governmental Unit
Debt repaid with property taxes:
Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Indian River County Limited General Obligation Bonds, Series 2006 $ 29,987,489 100% $ 29,987,489
Revenue Bonds - Spring Training Facility - Series 2001 8,145,000 100 8,145,000
Total direct debt of County: 38,132,489
Other debt:
Indian River County School District Certificates of Participation 122,688,585 (A) 100 122,688,585
Indian River County School District Capital Lease Payable 301,547 (A) 100 301,547
Total overlapping debt: 122,990,132
Total direct and overlapping debt: $ 161,122,621
(A) Indian River County School District, as of June 30, 2013
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.
182
183
Indian River County, Florida
Pledged Revenue Coverage (Unaudited)
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
2004 2005 2006 2007
Uniform Charges
Water sales $ 11,037,623 $ 12,146,416 $ 13,336,623 $ 13,529,341
Wastewater sales 9,439,597 10,437,091 11,634,181 12,003,677
Other 1,426,112 1,685,502 1,744,486 1,386,198
Total uniform charges 21,903,332 24,269,009 26,715,290 26,919,216
Septage/Sludge 278,897 269,575 332,329 290,955
Surcharges 234,746 242,451 244,166 243,919
Interest earnings 1,269,838 2,264,132 4,554,419 6,576,873
1989/1990 Special assessments 1,564 60,229 21,138
1996 Special assessments 1,539,600 722,922 350,712 268,883
Gross revenues 25,227,977 27,768,089 32,257,145 34,320,984
Less: Direct expenses 12,507,398 12,853,872 14,270,414 16,226,651
Net revenues available
for debt service $ 12,720,579 $ 14,914,217 $ 17,986,731 $ 18,094,333
Annual debt service
Principal $ 1,855,000 $ 2,020,000 $ 2,390,000 $ 2,505,000
Interest 3,936,019 3,525,573 3,157,260 3,041,150
Total debt service payment $ 5,791,019 $ 5,545,573 $ 5,547,260 $ 5,546,150
Debt service coverage 2.20x 2.69x 3.24x 3.26x
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.
184
Schedule 14
2008 2009 2010 2011 2012 2013
$ 13,435,398 $ 13,001,743 $ 13,570,657 $ 13,565,766 $ 13,621,878 $ 13,667,115
12,128,706 11,954,333 12,375,346 12,203,750 12,515,394 12, 546,429
1,460,143 1,285,605 1,430,966 1,639,985 1,727,411 1,763,426
27,024,247 26,241,681 27,376,969 27,409,501 27,864,683 27,976,970
256,785 294,459 302,187 314,969 373,616 426,634
245,343 244,619 245,011 245,245 246,298 246,363
3,650,480 2,110,031 686,776 491,260 315,377 239,270
112 413 438 8,718
220,754 184,272 151,316 93,513 75,037 69,757
31,397,721 29,075,475 28,762,697 28,563,206 28,875,011 28,958,994
17,147,444 17,057,273 16,007,055 15,404, 503 15, 657,085 15,217,294
$ 14,250,277 $ 12,018,202 $ 12,755,642 $ 13,158,703 $ 13,217,926 $ 13,741,700
$ 2,620,000 $ 2,745,000 $ 2,870,000 $ 2,990,000 $ 3,090,000 $ 3,205,000
2,922,950 2,047,513 2,510,910 2,324,525 2,193,450 2,080,951
$ 5,542,950 $ 4,792,513 $ 5,380,910 $ 5,314,525 $ 5,283,450 $ 5,285,951
2.57x 2.51x 2.37x 2.48x 2.50x 2.60x
185
Indian River County, Florida
Demographic and Economic Statistics (Unaudited)
Last Ten Years
Schedule 15
Total Per Capita
Personal Personal Unemployment
Year Population (A) Income (B) Income (B) Rate (C)
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 47,689 15.2
2010 138,028 6,687,691,000 48,378 15.2
2011 138,694 7,090,634,000 51,041 13.7
2012 139,446 7,429,653,000 52,855 11.3
2013 139,586 (D) (D) 8.8
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.
186
Indian River County, Florida
Principal Employers (Unaudited)
Year 2013 and Year 2004
Schedule 16
2013
Employer
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,123 3.58
Indian River County * 1,354 2.28
Indian River Medical Center 1,608 2.71
Publix Supermarkets 1,092 1.84
Piper Aircraft Inc. 800 1.35
Sebastian River Medical Center 576 0.97
John's Island 550 0.93
City of Vero Beach 460 0.78
Visiting Nurse Association 401 0.68
Indian River Estates 350 0.59
Total 9,314 15.71%
Total County Employees 59,304
Employer
2004
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,027 3.90
Indian River County* 1,628 3.13
Indian River Memorial Hospital 1,373 2.64
Publix Supermarkets 931 1.79
Piper Aircraft Inc. 688 1.32
Hale Groves 650 1.25
City of Vero Beach 600 1.15
Sebastian River Medical Center 525 1.01
Wal-Mart 505 0.97
John's Island 500 0.96
Total 9,427 18.12%
Total County Employees 52,002
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.
187
Indian River County, Florida
Building Permits (Unaudited)
Last Ten Fiscal Years
Indian River County Munici-
Fiscal # of New # of Additions & # of New
Year Permits Construction Permits Alterations Permits Construction
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
2012 421 95,703,031 2,591 25,060,272 150 37,380,374
2013 562 159,419,936 3,165 32,572,696 278 63,277,504
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.
188
Schedule 17
palities Countywide
# of Additions & # of New # of Additions &
Permits Alterations Permits Construction Permits Alterations
4,395 $ 47,075,876 4,662 $ 824,876,069 6,330 $ 93,249,722
13,062 119,403,505 5,917 966,108,386 17,471 176,953,400
7,072 65,822,951 4,586 940,373,663 12,702 109,721,626
3,712 53,482,334 1,673 387,155,954 7,611 91,772,466
2,850 40,039,893 1,063 326,379,830 5,536 70,771,128
2,188 34,072,491 564 138,734,040 3,913 51,174,803
2,948 32,545,131 516 113,044,340 4,965 53,268,856
2,973 42,087,897 528 124,114,377 5,261 68,455,917
3,271 43,011,051 571 133,083,405 5,862 68,071,323
4,433 45,723,356 840 222,697,440 7,598 78,296,052
189
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2004 2005 2006 2007
General Government
Purchasing 2,800 2,554 2,734 2,753
Purchase orders issued
Public Safety
Fire rescue
Vehicle rescue response 11,467 10,602 6,880 32,488 (A)
Fire code inspections 2,514 2,215 2,420 2,593
Advanced life support calls 7,222 5,623 10,728 7,537
Basic life support calls (transport only) 4,340 4,606 11,105 3,643
Sheriff
Arrests 4,979 5,172 5,211 5,012
Violent crimes 359 300 652 338
Non-violent crimes 2,805 3,930 3,462 6,192
Total calls for service 130,847 122,893 131,489 126,490
Building department
Construction permits issued 3,889 4,770 3,760 1,404
Estimated value of construction (millions) $ 642.0 $ 704.0 $ 754.8 $ 280.1
Physical Environment
Solid waste
Waste stream tonnage received 349,538 529,238 380,109 295,977
Total recycled material (tons) 72,568 129,869 70,919 57,247
Utilities - water & sewer
Number of water customers 33,793 34,867 43,477 41,101
Number of wastewater customers 19,786 20,237 25,943 24,666
Water ERUs 46,254 53,032 54,070 61,494
Wastewater ERUs 33,250 38,387 41,351 45,396
Water consumption (Average Daily Demand) 7,660,000 7,780,000 8,370,000 8,790,000
(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 18
2008 2009 2010 2011 2012 2013
2,520 2,463 1,970 1,805 1,852 1,740
33,845 34,480 34,529 37,550 39,316 39,340
3,527 5,917 2,358 2,239 1,874 1,992
5,862 9,085 9,751 10,935 10,904 10,991
5,759 3,486 3,269 3,077 3,406 3,544
5,620 4,331 5,065 4,464 3,144 3,885
353 340 310 394 107 439
6,383 6,099 5,719 6,058 6,063 5,683
129,389 138,998 154,480 162,944 176,170 199,687
857 442 394 416 421 562
$ 222.2 $ 97.7 $ 83.0 $ 96.3 $ 95.7 $ 159.4
239,296 207,344 201,561 180,434 205,355 211,382
42,088 40,931 45,298 30,424 53,255 50,792
42,000 42,972 43,723 44,254 44,571 45,216
25,000 25,192 25,205 25,465 25,773 26,233
61,558 63,147 64,146 64,391 64,820 65,477
45,785 45,319 45,427 45,863 46,107 46,576
8,603,000 8,700,000 8,225,000 8,198,000 7,798,000 7,558,000
Continued
191
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2004 2005 2006 2007
Transportation
Public works
Projects under design 3 4 5 5
Projects awarded for construction 3 0 4 5
Construction projects completed 5 0 4 5
County engineering
Roads designed 12 6 11 7
Miles of roads designed 6.50 1.71 6.50 3.50
Traffic engineering
Site plans reviewed 1,103 1,274 1,135 520
Culture/Recreation
Library
Circulation (County -wide) 1,012,241 1,079,206 1,140,904 1,188,366
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 95,711 89,000 93,088 90,503
Shooting range
Safety/Registration cards issued 4,616 3,718 6,036 6,784
Golf course
Rounds played 106,871 97,465 107,048 100,539
Court Related
Law library
Circulation 25,627 26,481 26,255 24,759
(B) Law library circulation is now included in the County -wide Library Circulation.
192
Schedule 18
2008 2009 2010 2011 2012 2013
6 29 13 26 19 20
5 5 7 7 10 5
5 12 6 8 8 5
8
6.00
332
5 6 4 4 6
5.00 6.00 1.00 8.00 6.00
423 271 218 290 357
1,250,075 1,314,372
1,403,367 1,362,857
1,277,253 1,300,764 (B)
415,051 437,302 467,434 449,213 420,609 404,287
8,673 14,730 23,750 24,112 23,979 23,841
90,475 89,787 87,107 98,515 97,965 97,183
6,784 9,050 6,471 8,176 8,302 8,462
104,716 101,810 96,593 94,713 96,723 91,770
21,107
18,512 13,079
193
9,168 9,428 N/A (B)
Indian River County, Florida
Full -Time Equivalent County Government Employees by Function/Program (Unaudited)
Last Ten Fiscal Years
2004 2005 2006 2007
General Government
Board of County Commissioners 10 10 10 10
County Attorney 6 6 6 7
Administration 3 3 3 3
Financial/Administrative Service 23.5 23.5 24.5 25.5
Comprehensive Planning 20 23 23 23
Other 46 42 50 62
Clerk of Circuit Court 106 108 113 118
Property Appraiser 47 47 49 50
Supervisor of Elections 11.5 11.5 11.5 12
Tax Collector 40 40 40 40
Public Safety
Fire Department 142.5 144.5 233 232
Advanced Life Support 82 82 - (A)
Sheriff - Corrections 128 130 200 197
Sheriff - Court Service 25.5 25.5 26 29.5
Sheriff - Law Enforcement 273 276 276 301
Building Department 29 45 49 50
Other 19.5 17.5 11 12
Physical Environment
Solid Waste 54 53 53 53
Utilities - water and sewer 125 126 131 139
Other 8 11 13 14
Transportation
Road and Bridges 99 100 103 106
County Engineering 29 33 39 42
Traffic Engineering 20 22 24 26
Real Estate Acquisition 0 0 0 0
Economic Environment 6 6 6 6
Human Services 15 15 17 15
Culture/Recreation
Libraries 51 51 51 52.5
Parks 37 39 43 42
Recreation Department 55 56.5 56 58.5
Coastal Engineering 0 3 3 3
Shooting Range 6 6 6 6
Golf Course 22.5 22 21.5 21.5
Court Related
Law Library 1 1 1 1
Total
1,541 1,579 1,692.5
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.
Totals include unfilled positions.
(A) The fire and advanced life support departments were consolidated on September 18, 2006.
194
1,757.5
Schedule 19
2008 2009 2010 2011 2012 2013
11 10 10 10 8.5 9
7 7 6 6 6 6
3 3 2.72 2.35 2.35 2.35
26.5 22.5 21.5 19.85 19.85 19.35
23 19 16 14.32 15 15
49 44.5 36.5 34 34.75 33.9
116 99.5 98.5 98 96 98
45 40 40 36 35 35
12 9.5 9.5 8 8.5 8.5
38 38 38 38 38 44
241 240 246 244 243 243
197 195 198 207 163 163
29.5 29.5 29.5 29.5 27.5 27.5
301 301 301 301 303 303
33 18 17 15 14 15
12 10 9 6.68 6 4
51 49 49 10 9 9
130 128 118 112.5 112.5 113.5
15 9 9 8 8 7
100 86.5 80 77 77.25 77.1
42 33 28 27 26 24
24 21 21 20 20 19
3 2 2.28 1 1 1
4.5 3.5 3.5 2.5 2.5 2.5
15 14.5 13 13 13 12
50 45.5 47.5 46.5 42 41.5
41 39 37 34 28 28
57.5 46 37.5 33.3 33.3 32.3
3 3 2 2 2 2
5.5 5.5 5.5 5 5 5
18 16.5 15.5 15.5 15 13.5
1,704.5 1,589.5 1,549 1,478 1,416.0 1,415.0
195
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2004 2005 2006 2007
General Government
Buildings and grounds
Total square footage maintained 493,270 493,270 493,270 715,215
Number of facilities and sites maintained 43 43 43 47
Vehicles 17 18 18 17
General government
Vehicles 27 32 36 37
Planning
Vehicles 3 6 6 7
GIS
Vehicles
Public Safety
Fire department
Vehicles 41 43 49 54
Fire stations 11 11 11 1 I
Advanced life support
Vehicles 21 25 24 2 I
E911 Center
Vehicles
Sheriff
Vehicles 241 252 274 276
Building department
Vehicles 16 27 29 22
Physical Environment
Solid waste
Vehicles 32 32 33 34
Telecommunications
Vehicles
Ag Extension
Vehicles 2 2 2 2
Utilities - Water and Sewer
Vehicles 74 84 90 86
Water treatment plants 2 2 2 2
Wastewater treatment facilities 7 7 7 6
Water main - miles N/A N/A 737 769
Force main - miles N/A N/A 188 217
Gravity sewer lines - miles N/A N/A 250 259
Transportation
Road and bridge
Miles maintained (paved & unpaved) 609 614 614 617
Bridges maintained 78 78 78 78
Vehicles 59 61 66 68
Source: Internal reports prepared by the various departments of Indian River County.
196
Schedule 20
2008 2009 2010 2011 2012 2013
715,215 715,215 715,215 715,215 720,215 720,215
47 47 47 47 48 48
17 15 15 15 15 15
28 27 26 31 31 30
7 7 7 7 6 5
1 1 1 1 1 1
53 54 51 51 51 46
11 11 12 12 12 12
20 20 17 18 18 19
1 1 1 1 1 1
295 291 288 298 295 274
13 9 9 9 9 9
32 30 30 1 1 1
1 1 1 1 1 1
2 2 1 1 1 1
82 82 81 81 85 79
2 2 2 2 2 2
6 6 6 6 6 6
780 819 845 839 843 847
240 230 226 229 223 225
261 262 269 271 270 273
625 628 636 636 638 650
78 78 78 75 75 71
65 65 64 67 67 64
Continued
197
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2004 2005 2006 2007
Transportation -continued:
Senior Resource Association
Vehicles 10 20 22 25
Engineering
Vehicles 9 9 11 12
Traffic engineering
Traffic signals operated 119 122 125 132
Beacons operated 42 37 42 42
Vehicles 6 6 6 3
Traffic operations
Vehicles 10 10 10 16
Human Services
Health department
Vehicles 14 17 16 16
Animal Control
Vehicles 5 5 6 7
Rental Assistance
Vehicles 2 3 3 2
Culture/Recreation
Libraries
Locations 2 2 2 2
Parks
Number of neighborhood parks 12 12 12 12
Number of County parks 35 47 47 47
Acreage 3,857 3,994 4,004 4,014
Picnic shelters maintained 59 64 66 69
Boat ramps maintained 8 8 8 8
Vehicles 20 22 23 25
Recreation
Vehicles 4 4 5 5
Shooting range
Vehicles 1 1 0 1
Rifle range stations 29 29 0 29
Pistol range stations 35 35 35 35
Golf Course
Holes maintained 36 36 36 36
Vehicles 2 2 2 2
198
Schedule 20
2008 2009 2010 2011 2012 2013
23 25 32 34 34
17 16 16 16 13
38
13
133 133 137 137 137 150
41 48 48 53 46 45
5 3 1 1 1 1
16 15 16 18 18 19
16 16 15 15 17 17
7 7 7 7 7 7
2 2 2 2 2 2
2 2 3 3 3 3
12 12 12 12 12 10
47 47 47 47 47 40
4,014 4,014 4,014 4,014 4,014 4,014
69 69 69 69 69 69
8 8 8 8 8 8
24 25 24 25 24 22
5 5 5 5 5 5
1 1 1 1 1 1
29 29 29 29 29 29
35 35 35 35 35 35
36 36 36 36 36
2 2 2 2 2
199
36
2
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
Schedule 21
Fiscal Years
2004-2013 *
WATER RATES
Billing charges $ 1.29
Base facilities charges (per ERU)
Single-family or commercial 7.76
Multi -family or manufactured home 6.60
Volume charge - per 1,000 gallons (per ERU)
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
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
Base facility charge (per ERU)
Single-family or commercial
Multi -family or manufactured home
Volume charge - per 1,000 gallons
Single-family & manufactured home (1,000-12,000)
Multi -family & commercial (0-13,000)
Multi -family & commercial (>13,000)
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial
Multi -family or manufactured home
*The last change to the County's water and sewer rates occurred on October 1, 1999.
1.29
14.58
12.40
2.86
2.86
4.29
7.29
6.20
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 (Unaudited)
Last Ten Fiscal Years
Schedule 22
The number of County water and wastewater customers, expressed as the number of equivalent residential
units (ERUs), for the years 2004 through 2013 as set forth below:
Fiscal Year
Water ERUs Wastewater ERUs
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
2012 64,820 46,107
2013 65,477 46,576
Source: Indian River County Utilities Department
201
Indian River County, Florida
Top 10 High Volume Customers of Utility Services (Unaudited)
Fiscal Year 2013
Schedule 23
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2013:
Customer
Annual Water Annual Wastewater
Volume Volume
(x 1,000 gals.) (x 1,000 gals.)
1. Vista Royale 31,167 31,167
2. IRC School Board 24,652 18,397
3. Acts, Inc 24,013 23,666
4. Disney's Vero Beach Resort 23,988 23,988
5. City of Fellsmere (Wastewater Only) - 21,480
6. MHC Village Green LLC 21,246 21,246
7. IRC Facilities Management / Jail 13,558 13,558
8. Vista Gardens 13,445 13,445
9. Vista Plantation 13,285 13,241
10. Palms of Vero Beach LTD 12,408 12,408
Source: Indian River County Utilities Department
202
Indian River County, Florida
Capacity Charges - Utilities Department (Unaudited)
Last Ten Fiscal Years
Schedule 24
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:
Fiscal Year
Wastewater
Water Capacity Capacity Total
Charges Charges Charges
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
2012 585,490 755,838 1,341,328
2013 795,134 1,225,379 2,020,513
(A) Large increase in capacity charges due to construction boom.
203
Indian River County, Florida
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 (Unaudited)
Last Ten Fiscal Years Schedule 25
Year Professional Total
Ended Sports State Tourist One Cent Half Cent
September 30 Subsidy Tax Collected Tourist Tax (A) Sales Tax (B)
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
2012 500,004 1,604,919 401,230 7,412,887
2013 500,004 1,743,283 435,821 7,828,550
(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 13.
204
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
March 3, 2014
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the 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, 2013, and
the related notes to the financial statements, which collectively comprise the County's basic financial
statements, and have issued our report thereon dated March 3, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the County's
internal control. Accordingly, we do not express an opinion on the effectiveness of the County's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses
or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
205
NEXIA
I NTP RN AT1 ON Al
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
County's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
LLG
206
Fkehmann
MANAGEMENT LETTER
March 3, 2014
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the financial statements of the 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, 2013 and have issued our report thereon dated
March 3, 2014.
Internal Control Over Financial Reporting
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 OMB Circular A-133, Audits of States, Local Governments, and
Non -Profit Organizations; and Chapter 10.550, Rules of the Auditor General. 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 3, 2014, 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.
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 report. There were no findings and 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 County 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
make any such recommendations.
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CPAs & Consultants Wealth Advisors Corporate Investigators
207
I NTFR NAT10 N AI
Section 10.554(1)(1)4., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but more than
inconsequential. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)5., 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 disclosure has
been included in the notes to the financial statements.
Section 10.554(1)(i)6a., Rules of the Auditor General, requires a statement be included as to whether
or not the local governmental entity has met one or more of the conditions described in section
218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our
audit, we determined that the County did not meet any of the conditions described in Section
218.503(1), Florida Statutes.
Section 10.554(1)(i)6b., Rules of the Auditor General, requires that we determine whether the annual
financial report for the County for the fiscal year September 30, 2013 filed with the Florida Department
of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual
financial audit report for the fiscal year September 30, 2013. In connection with our audit, we
determined that these two reports were in agreeement.
Pursuant to Sections 10.554(1)(i)6.c. and 10.556(7), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the County's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by the same.
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, federal and other state granting agencies, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
41&1444C4t..."4 L LC
208
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A
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 AUDITOR GENERAL
March 3, 2014
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Report on Compliance for Each Major Federal Program
We have audited the compliance of Indian River County, Florida (the "County) with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement and the
requirements described in the Florida Department of Financial Services' State Projects Compliance
Supplement that could have a direct and material effect on each of the County's major federal
programs or state projects for the year ended September 30, 2013. The County'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.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Independent Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the County's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local
Governments, and Non -Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those
standards and OMB Circular A-133 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
209
NEXIA
1NT FR N AT1ONAI
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the County's
compliance.
Opinion on Each Major Federal Program and State Project
In our opinion, the County complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs and state project for the year ended September 30, 2013.
Report on Internal Control Over Compliance
Management of the County is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the County's internal control over compliance with
the types of requirements that could have a direct and material effect on each major federal program
and state project to determine the auditing procedures that are appropriate in the circumstances for
the purpose of expressing an opinion on compliance for each major federal program and state project
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 Countv's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program or state project will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement
of a federal program or state project that is less severe that a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
210
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not
suitable for any other purpose.
"\-gist4441.4(-74(9d-L-ryt, LLC
211
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND
STATE PROJECTS REQUIRED BY OMB CIRCULAR A-133
AND CHAPTER 10.550, RULES OF THE FLORIDA AUDITOR GENERAL
March 3, 2014
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
We have audited the financial statements of the 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, 2013, and the related notes to the financial
statements, which collectively comprise the County's basic financial statements. We issued our report
thereon dated March 3, 2014, which contained unmodified opinions on those financial statements. Our
audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. 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,
Audits of States, Local Governments, and Non-profit Organizations, 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 basic 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 basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the schedule of expenditure of federal awards and
state projects is fairly stated in all material respects in relation to the basic financial statements as a
whole.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
212
NEXIA
I NT PR N AT1ONA1.
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2013
Federal/State Agency
Pass-through Entity
Federal Program/State Project
Department of Housing and Urban Development:
Direct Programs:
Section 8 Housing Choice Vouchers
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Supportive Housing Progr
Homeless Management
Transitional Housing
Homeless Management
Homeless Management
Subtotal CFDA - 14.238
am -
Information Systems
Information Systems
Information Systems
Subtotal CFDA - 14.235
Continuum of Care -
Rental Assistance
Rental Assistance
Rental Assistance
Supportive Services
Homeless Management Information Systems
Rental Assistance
Rental Assistance
Subtotal CFDA - 14.267
Comm. Dev. Block Grant - Neighborhood Stabilization Pgm #3
CDBG NSP #3 Program Income Expenditures
Indirect Programs:
Passed through Florida Dept. of Economic Opportunity:
Comm. Dev. Block Grant - Neighborhood Revitalization
Comm. Dev. Block Grant - Neighborhood Stabilization Program
CDBG NSP Program Income Expenditures
Subtotal CFDA - 14.228
Indirect Programs:
Passed through Florida Housing Finance Corporation:
Tenant Based Rental Asssitance
Total Department of Housing and Urban Development
Federal Transit Administration:
Direct Programs:
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Total Federal Transit Administration
CFDA/ Contract/
CSFA Grant
No. No.
14.871 FL -132 -VO -014 to 017 $
14.238 FL29C709001
14.238 FL0360C4H091102
14.238 FL0380C4H091000
14.238 FL0113CH090800
14.238 FL0114CH091104
14.238 FL0338CH090900
14.238 FL0119CH091104
14.238 FL0120CH091104
14.235 FL0116B4H091104
14.235 FL0115B4H091104
14.235 FL0308B4H091103
14.235 FL0418B4H091100
14.267 FL0360L4H091203
14.267 FL0440L4H091201
14.267 FL0114L4H091205
14.267 FL0115L4H091205
14.267 FL0116L4H091205
14.267 FL0119L4H091205
14.267 FL0120L4H091205
14.228
14.228
14.228
14.228
14.228
14.239
20.507
20.507
20.507
20.507
20.507
20.507
20.507
20.507
213
B -11 -UN -12-0022
Program Income
12DB-OH-10-40-01-N01
1 ODB-4X-10-40-01-F13
Program Income
2013-210TBRA
FL -90-X828
FL -04-0153
FL -90-X799
FL -90-X792
FL -90-X756
FL -90-X739
FL -90-X702
FL -90-X611
Expenditures
1,900,679
63,361
68,678
63,851
60,595
38,109
108,528
89,792
118,333
611,247
35,287
46,708
25,856
20,391
128,242
22,633
44,117
29,853
23,354
1,452
16,429
37,998
175,836
835,685
220,383
713,557
102,801
395,746
2,268,172
4,215
5,088,391
Transfers to
Subrecipients
1,072,913
500,000
12,324
230,513
148,737
324,639
434,582
283,578
3,007,286
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2013
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No.
Expenditures
Department of Transportation:
Indirect Programs:
Passed through Florida Department of Transportation:
Old Dixie Highway Sidewalk 20.205 AQN64 $ 294,438
Metropolitan Planning Organization 20.205 AA080 334,615
Subtotal CFDA - 20.205 629,053
Federal Transit Metropolitan Planning Grant 20.505 AQ212 147,989
Section 5311 Non -Urbanized Public Transit 20.509 APT03 58,580
Safe Routes to School 20.600 AQJ07 56,888
Passed through Florida Department of Environmental Protection:
Trans -Florida Rail -Trail Greenway 20.219 T29025 494
Total Department of Transportation 893,004
Department of Justice:
Direct Programs:
State Criminal Alien Assistance Program 16.606 2012 -AP -BX -0680 78,306
2012 Local Solicitation Justice Assistance Grant 16.738 2012 -DJ -BX -0126 21,264
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
16.738 2013-JAGC-INRI-1-D7-151 50,339
16.738 2013-JAGC-INRI-2-D7-125 13,563
85,166
Passed through Office of the Attorney General:
Crime Victim Assistance Program 16.575 V12050 38,794
Total Department of Justice 202,266
Elections Assistance Commission:
Indirect Programs:
Passed through Florida Dept of State
Division of Elections:
Federal Elections Activities 2012/2013
Federal Elections Activities 2011/2012
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
90.401 N/A 23,583
90.401 N/A 9,142
32,725
93.563 00331 8,441
93.563 CD331 369,027
214
377,468
Transfers to
Subrecipients
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2013
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No.
Department of Homeland Security:
Direct Project:
Assistance to Firefighters Grant
Indirect Programs:
Passed through Division of Emergency Management:
Emergency Management Homeland Security
Emergency Management Homeland Security
Community Emergency Response Team
Community Emergency Response Team
Community Emergency Response Team
Subtotal CFDA - 97.067
Emergency Management Performance Grant
97.044 EMW-2011-F0-01142
Expenditures
16,869
97.067 11 -DS -9Z-39-10-40-386 46,365
97.067 12 -DS -20-10-40-01-454 10,800
97.067 13 -CI -58-10-40-01-416 5,358
97.067 13 -CI -A6-10-40-01-402 7,734
97.067 12 -CI -24-10-40-01-407 7,640
77,897
97.042 13 -FG -86-10-40-01-098
74,416
Total Department of Homeland Security 169,182
TOTAL EXPENDITURES OF FEDERAL AWARDS:
215
Transfers to
Subrecipients
$ 6,763,036 $ 3,007,286
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2013
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
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 - 31.063
31.067 13 -CP -11-10-40-01-214 $ 2,862
31.063 13 -BG -06-10-40-01-031 83,846
31.063 14 -BG -83-10-40-01-031 22,900
106,746
Total Division of Emergency Management 109,608
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
52.901 N/A 491,548
491,548
45.030 13 -ST -21 90,215
90,215
Department of Transportation:
Direct Projects:
Transportation Disadvantaged Planning Grant 55.002 AR258 3,272
Transportation Disadvantaged Planning Grant 55.002 AQP41 16,855
Subtotal CSFA - 55.002 20,127
SCOP - Indian River Blvd 55.009 AQL32 470,063
SCOP - CR512 Eastbound Lanes 55.009 AQ072 551,756
SCOP - 27th Ave Road Resurfacing 55.009 AQL69 957,662
Subtotal CSFA - 55.009 1,979,481
Fl Public Transit Block Grant 55.010 APT70 275,000
FDOT Service Development Grant 55.012 AQGO7 177,166
Transit Corridor Grant 55.013 AP049 120,029
TRIP - 66th Avenue from SR60 to 41st Street 55.026 AQN66 2,376,471
Total Department of Transportation 4,948,274
Department of Environmental Protection:
Direct Projects:
Hurricane Sandy Beach Project
Total Department of Environmental Protection
37.003 141R2 187,959
216
187,959
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2013
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 C1031 $ 3,540
Total Department of Health 3,540
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise
Total Department of Revenue
73.016 N/A 500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
217
500,004
$ 6,331,148 $
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Projects
For the Fiscal Year Ended September 30, 2013
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. Such expenditures are recognized following the cost principles contained in OMB
A-87 Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
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
COUNTY OF INDIAN RIVER, FLORIDA
• Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2013
SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
Noncompliance material to financial statements yes X no
noted?
Federal Awards and State Projects
Internal control over major programs and projects:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
Type of auditors' report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
Circular A-133, Section 510(a)? yes X no
Identification of major programs:
CFDA Number
14.228
14.267
20.205
CSFA Number
52.901
55.009
55.026
55.012
Dollar threshold used to distinguish
between Type A and Type B programs:
Auditee qualified as low-risk auditee?
219
Name of Federal Program or Cluster
Community Development Block Grant Cluster
Continuum of Care Program
Highway Planning and Construction
Name of State Project
FDCA SHIP
Small County Outreach Program
Transportation Regional Incentives Program
Public Transit Service Development Program
$ 300,000 (Federal and State)
X yes no
COUNTY OF INDIAN RIVER, FLORIDA
• Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2013
SECTION II - FINANCIAL STATEMENT FINDINGS
None noted.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None noted.
220
JEFFREY R. SMITH, CPA, CGFO, CDMA
Clerk of Circuit Court and Comptroller
Finance Department
1801 27th Street, Building A
Vero Beach, Florida 32960
Telephone (772) 226-1945
AFFIDAVIT
BEFORE ME, the undersigned authority, personally appeared Jeffrey R. Smith, 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. 2005-015 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 No. 2011-002, the
impact fee was amended to suspend three of the eight original impact fees from April 1, 2011 through
March 31, 2012. On March 13, 2012, Ordinance No. 2012-003 continued this suspension from April I,
2012 through March 31, 2014.
3. Indian River County has complied and, as of the date of this Affidavit, remains in compliance
with Section 163.31801, Florida Statutes.
FURTHER AFFIANT SAYETH NA HT.
STATE OF FLORIDA
COUNTY OF INDIAN RIVER
(C • of ,'_ ,�' ,/O fficer of the Entity)
SWORN TO AND SUBSCRIBED before me this ( day of • /S
Personally known
4,
2014.
NOTARY PUBLIC
Print Name ///, A'/ 7
or produced identification
Type of identification produced:
My Commission Expires:
22 I
_ MARIA I. SUESZ
_k, Commission # OD 978402
Via. r� a Expires July 26, 2014
Borded TfruTrcy FW Ynranoe emus -7919
222
BOARD OF COUNTY COMMISSIONERS
223
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable Board of County of Commissioners
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of each major fund and the aggregate
remaining fund information of the Indian River County, Florida Board of County Commissioners (the
"Board"), as of and for the year ended September 30, 2013, and the related notes to the financial
statements, which collectively comprise the Board's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
224
NEXIA
I NTP RN AT1 ON Al
The Honorable Board of County of Commissioners
Indian River County, Florida
March 3, 2014
Page 2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the funds of the Board of County Commissioners as of September 30,
2013, and the respective changes in financial position and the respective budgetary comparison for the
general fund for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Emphasis of Matter
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Board of County Commissioners and do not purport to, and do not, present fairly the financial
position of Indian River County, Florida as of September 30, 2013, and the changes in its financial
position for the year then ended, in conformity with accounting principles generally accepted in the
United States of America
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3,
2014 on our consideration of the Board of County Commissioners 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the Board of County Commissioners internal control over financial reporting and compliance.
41ervt-tive,_—,041.4y- LLC
225
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2013
General
Secondary
Impact Roads
Fees Construction
ASSETS
Cash and cash equivalents $ 44,540,575 $ 17,916,841 $ 14,399,563
Accounts receivable 523,239
Special assessments receivable - -
Due from other funds 1,412,853 -
Due from other governments 3,379,221 107,486 287,929
Interest receivable 19,165 6,858 5,558
Inventories 38,534 -
Prepaid expenses 60,277
Advances to other funds 1,112,427
Total assets $ 51,086,291 $ 18,031,185 $ 14,693,050
LIABILITIES
Accounts payable $ 996,538 $ 386,800 $ 1,501,314
Retainage payable 565,049 81,742
Due to other funds - -
Due to other governments 8,465 63,216 -
Unearned revenues 169,392
Other deposits 31,308
Total liabilities 1,205,703 1,015,065 1,583,056
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments
Total deferred inflows of resources
FUND BALANCES
Nonspendable:
Inventories 38,534
Prepaid items 60,277
Advances to other funds 1,112,427
Restricted for:
Transportation/road improvements 9,954,310 13,109,994
Court -related costs and improvements
Housing assistance
Law enforcement/public safety 499,166
Fire/emergency services 1,228,245
Tourism -related activites
Beach renourishment
Boating related projects
Library services 590,970
Land acquisition
Stormwater, street lighting, and other special assessments
Debt service
Capital projects 1,411,963
Dodgertown repairs/improvements -
Solid waste projects 25,875
Parks/recreational projects 1,000,000 3,305,591
Committed to:
Economic incentives 2,323,013
Environmental conservation/preservation - -
Law enforcement/public safety 3,832
Parks/recreational projects 43,234
Assigned to:
Subsequent year's budget appropriation of fund balance 900,000
Transportation/road improvements -
Unassigned 44,399,271
Total fund balances $ 49,880,588 $ 17,016,120 $ 13,109,994
Total liabilities, deferred inflows and fund balances $ 51,086,291 $ 18,031,185 $ 14,693,050
The accompanying notes are an integral part of the financial statements.
226
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
8,467,140 $ 9,743,852 $ 45,471,581 $ 18,728,768 $ 159,268,320
156 3,296 - - 526,691
298,361 298,361
- - - 1,412,853
230,683 229,639 10,413,615 600,682 15,249,255
145,257 4,009 17,662 6,734 205,243
- - 38,534
10,645 7,200 78,122
1,112,427
$ 9,141,597 $ 9,991,441 $ 55,902,858 $ 19,343,384 $ 178,189,806
$ 336,901 $ 589,926 $ 2,744,699 $ 692,603 $ 7,248,781
2,624 714,296 27,209 1,390,920
- 455,000 455,000
71,681
1,750 18,920 3,135 193,197
31,308
341,275
608,846 3,458,995
1,177,947 9,390,887
440,587 440,587
440,587 440,587
8,359,735
38,534
10,645 7,200 78,122
1,112,427
23,064,304
1,109,142 1,109,142
1,193,022 1,193,022
2,020,856 2,520,022
8,871,950 10,100,195
356,409 356,409
5,986,911 5,986,911
1,140,627 1,140,627
99,168 690,138
212,171 212,171
1,799,899 1,799,899
2,629,854 2,629,854
52,443,863 53,855,826
846,201 846,201
25,875
4,305,591
500,000
2,323,013
1,103,200 1,103,200
3,832
43,234
(339,223)
1,400,000
8,359,735
44,060,048
$ 8,359,735 $ 9,382,595 $ 52,443,863 $ 18,165,437 $ 168,358,332
$ 9,141,597 $ 9,991,441 $ 55,902,858 $ 19,343,384 $ 178,189,806
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, 2013
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
General
Secondary
Impact Roads
Fees Construction
46,721,964 $ - $ 3,303,751
9,010,223 3,214,992 91,136
14,212,857 726,779 1,745,127
4,888,263 -
345,320 -
169,004 60,387 42,234
1,004,638 184,518 687,249
76,352,269
4,186,676 5,869,497
9,088,931 260,520
4,210,752 1,142,356
235,111 -
4,685,702 6,961,531
368,786 -
3,625,268 -
7,972,993 1,613,204
198,738 -
30,386,281
5,432,749
9,977,611 5,432,749
Excess of revenues over (under) expenditures 45,965,988 (5,790,935) 436,748
OTHER FINANCING SOURCES (USES)
Transfers in 133,199
Transfers out (9,882,584)
Transfers to constitutional officers (40,530,839) (321,031)
Total other financing sources (uses) (50,280,224) (321,031)
Net change in fund balances (4,314,236) (6,111,966) 436,748
Fund balances at beginning of year 54,194,824 23,128,086 12,673,246
Fund balances at end of year $ 49,880,588 $ 17,016,120 $ 13,109,994
The accompanying notes are an integral part of the financial statements.
228
Transportation
132,937
2,719,157
117,224
36,824
806,299
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
17,146,131 $ 14,422,829 $ 6,410,747 $ 88,005,422
45,568 274,988 12,769,844
60,620 1,392,962 6,601,705 27,459,207
5,488,112 774,090 11,267,689
11,600 119,477 476,397
45,571 138,786 59,427 552,233
16,296 416,131 625,541 3,740,672
3,812,441 22,768,330 16,416,276 14,865,975 144,271,464
267,631
474,551
10,914,008
11,656,190
(7,843,749)
24,968,230
691,925 10,309,007
355,501 30,676,839
62,280 771,942
229,239 28,223,229
2,212,615 2,581,401
3,327,192 6,952,460
1,952,612 11,538,809
550,754 749,492
6,050,000 6,050,000
2,118,704 2,118,704
13,037,552 - 13,037,552
24,968,230 13,037,552 17,550,822 113,009,435
(2,199,900) 3,378,724 (2,684,847) 31,262,029
7,459,882 2,987,214 10,580,295
- - (600,000) (133,199) (10,615,783)
- (336,797) (817,655) (327,710) (42,334,032)
7,459,882 (336,797) (1,417,655) 2,526,305 (42,369,520)
(383,867) (2,536,697) 1,961,069 (158,542) (11,107,491)
8,743,602 11,919,292 50,482,794 18,323,979 179,465,823
$ 8,359,735 $ 9,382,595 $ 52,443,863 $ 18,165,437 $ 168,358,332
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, 2013
REVENUES
Taxes
Permits and fees
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 expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
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
$ 45,900,567
8,399,900
10,165,137
5,122,851
292,790
256,975
467,252
70,605,472
9,051,381
4,200,981
256,204
786,859
369,164
3,959,071
7,844,612
212,837
26,681,109
43,924,363
(7,607,584)
(40,651,817)
(48,259,401)
(4,335,038)
$ 45,900,566
8,399,900
14,135,818
5,191,593
292,790
256,975
715,600
74,893,242
9,799,972
4,492,872
293,453
5,170,966
371,657
4,008,633
8,43 8,476
229,634
32,805,663
42,087,579
133,200
(9,882,584)
(40,814,814)
(50,564,198)
(8,476,619)
Actual
Amounts
$ 46,721,964
9,010,223
14,212,857
4,888,263
345,320
169,004
1,004,638
76,352,269
9,088,931
4,210,752
235,111
4,685,702
368,786
3,625,268
7,972,993
198,738
30,386,281
45,965,988
133,199
(9,882,584)
(40,530,839)
(50,280,224)
Variance with
Final Budget
Positive
(Negative)
$ 821,398
610,323
77,039
(303,330)
52,530
(87,971)
289,038
1,459,027
711,041
282,120
58,342
485,264
2,871
383,365
465,483
30,896
2,419,382
3,878,409
(1)
283,975
283,974
(4,314,236) $ 4,162,383
4,335,038
8,476,619
54,194,824
- $ 49,880,588
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, 2013
REVENUES
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
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
$ 1,684,872 $
117,750
1,802,622
748,164
190,000
26,000
5,260,613
2,865,455
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
1,684,872 $ 3,214,992 $ 1,530,120
265,000 726,779 461,779
117,750 60,387 (57,363)
184,518 184,518
2,067,622 4,186,676 2,119,054
573,623
2,889,868
26,000
10,747,366
5,080,360
9,090,232 19,317,217
(7,287,610) (17,249,595)
(321,031)
(321,031)
(7,287,610) (17,570,626)
260,520
1,142,356
6,961,531
1,613,204
9,977,611
313,103
1,747,512
26,000
3,785,835
3,467,156
9,339,606
(5,790,935) 11,458,660
(321,031)
(321,031)
(6,111,966) $ 11,458,660
7,287,610 17,570,626
23,128,086
$ 17,016,120
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, 2013
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 3,168,250 $ 3,168,250 $ 3,303,751 $ 135,501
Permits, fees and special assessments 69,156 91,136 21,980
Intergovernmental 2,372,673 1,745,127 (627,546)
Interest 52,250 52,250 42,234 (10,016)
Miscellaneous - 687,249 687,249
Total revenues 3,220,500 5,662,329 5,869,497 207,168
EXPENDITURES
Current:
Transportation 6,655,887 11,390,304 5,432,749 5,957,555
Total expenditures 6,655,887 11,390,304 5,432,749 5,957,555
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(3,435,387) (5,727,975) 436,748 $ 6,164,723
3,435,387
5,727,975 12,673,246
$ $ 13,109,994
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, 2013
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)
$ 118,750 $ 118,750 $ 132,937 $ 14,187
2,251,500 2,471,500 2,719,157 247,657
96,425 96,425 117,224 20,799
49,875 49,875 36,824 (13,051)
834,850 836,425 806,299 (30,126)
3,351,400 3,572,975 3,812,441 239,466
269,600 273,039 267,631 5,408
581,708 611,784 474,551 137,233
11,229,974 12,003,916 10, 914,008 1,089,908
12,081,282 12,888,739 11,656,190 1,232,549
(8,729,882) (9,315,764) (7,843,749) 1,472,015
7,459,882 7,459,882 7,459,882
7,459,882 7,459,882 7,459,882
(1,270,000) (1,855,882)
(383,867) $ 1,472,015
1,270,000 1,855,882
8,743,602
$ 8,359,735
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, 2013
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 USES
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
$ 16,908,731
38,000
4,506,325
950
87,875
19,371
21,561,252
24,681,406
24,681,406
(3,120,154)
(395,018)
(395,018)
(3,515,172)
$ 16,908,731
77,936
4,656,325
950
87,875
20,732
21,752,549
25,878,175
25,878,175
(4,125,626)
(395,018)
(395,018)
(4,520,644)
Actual
Amounts
$ 17,146,131
60,620
5,488,112
11,600
45,571
16,296
22,768,330
24,968,230
24,968,230
(2,199,900)
(336,797)
(336,797)
Variance with
Final Budget
Positive
(Negative)
$ 237,400
(17,316)
831,787
10,650
(42,304)
(4,436)
1,015,781
909,945
909,945
1,925,726
58,221
58,221
(2,536,697) $ 1,983,947
3,515,172
4,520,644
11,919,292
$ 9,382,595
The accompanying notes are an integral part of the financial statements.
234
Indian River County, Florida
Board of County Commissioners
Statement of Fund Net Position
Proprietary Funds
September 30, 2013
Enterprise Funds
Solid Waste
Disposal Golf County County
District Course Utilities Building
Total
Internal
Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 10,587,383 $ 458,535 $ 43,832,875 $ 4,734,030 $ 59,612,823 $ 34,533,716
Accounts receivable - net 156,657 - 2,477,563 2,634,220 134,233
Due from other governments 101,926 11,000 349,638 462,564 112,432
Interest receivable 9,758 423 554,613 3,155 567,949 21,718
Inventories 55,083 848,905 903,988 176,960
Prepaid items 595 218,557 219,152 1,226,023
Current restricted assets:
Cash and cash equivalents 14,295,593 - 29,387,255 43,682,848 -
Totalcurrentassets 25,151,317 525,636 77,669,406 4,737,185 108,083,544 36,205,082
Non-current assets:
Capital assets- non -depreciable 22,726,813 6,705,768 12,701,347 42,133,928
Capital assets -depreciable 21,813,929 2,353,176 406,820,447 367,689 431,355,241 1,125,695
Accumulated depreciation (9,528,840) (1,873,546) (210,462,840) (337,201) (222,202,427) (912,296)
Non-current restricted assets:
Special assessments receivable - - 837,768 - 837,768 -
Impactfeesreceivable - - 775,824 - 775,824
Liens receivable - 3,155,552 3,155,552 -
Total non-current assets 35,011,902 7,185,398 213,828,098 30,488 256,055,886 213,399
Total assets 60,163,219 7,711,034 291,497,504 4,767,673 364,139,430 36,418,481
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refundings - - 2,506,911 - 2,506,911
Total deferred outflows of resources - - 2,506,911 - 2,506,911
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,360,470 41,868 1,881,612 42,631 3,326,581 119,427
Retainage payable 79,755 - 138,574 - 218,329 -
Claims payable - - 2,197,855
Due to other funds - 640,853 640,853 317,000
Due to other governments - 7,287 2,827,524 15,304 2,850,115 -
Unearned revenues - 30,744 - - 30,744 -
Other deposits - 1,000 1,000 -
Pollution remediation costs payable - 5,167 5,167 -
Accrued compensated absences 36,864 20,742 503,212 55,498 616,316 31,993
Total current liabilities (payable from current assets) 1,477,089 742,494 5,356,089 113,433 7,689,105 2,666,275
Current liabilities (payable from restricted assets):
Accounts payable - - 106,718 - 106,718 -
Retainage payable - - 26,557 - 26,557 -
Accrued interest payable - - 161,454 - 161,454 -
Bonds payable - 3,350,000 - 3,350,000 -
Customer deposits 131,126 - 2,852,268 - 2,983,394 -
Total current liabilities (payable from restricted assets) 131,126 - 6,496,997 6,628,123 -
Total current liabilities 1,608,215 742,494 11,853,086 113,433 14,317,228 2,666,275
Non-current liabilities:
Accrued compensated absences 2,163 31,396 129,168 35,589 198,316 21,834
Advance from other funds 1,112,427 1,112,427
Claims payable - - - - - 5,876,145
Pollution remediation costs payable - 5,333 - 5,333 -
Closure and maintenance costs payable 11,011,736 - - - 11,011,736 -
Bonds payable - net of discount and premium - - 39,670,793 39,670,793 -
Total non-current liabilities 11,013,899 1,143,823 39,805,294 35,589 51,998,605 5,897,979
Total liabilities 12,622,114 1,886,317 51,658,380 149,022 66,315,833 8,564,254
NET POSITION
Net investment in capital assets 35,011,902 7,185,398 168,545,072 30,488 210,772,860 213,399
Restricted for:
Capital projects - 20,871,037 20,871,037 -
Unrestricted 12,529,203 (1,360,681) 52,929,926 4,588,163 68,686,611 27,640,828
Total net position $ 47,541,105 $ 5,824,717 $ 242,346,035 $ 4,618,651 $ 300,330,508 $ 27,854,227
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 Position
Proprietary Funds
For the Year Ended September 30, 2013
Enterprise Funds
Solid Waste
Disposal Golf
District Course
OPERATING REVENUES
Charges for services $ 9,998,410 $ 3,072,332
Charges for services pledged as
security for revenue bonds
Total operating revenues 9,998,410 3,072,332
OPERATING EXPENSES
Personal services 505,556 497,147
Material, supplies, services and
other operating 9,058,346 1,704,741
Depreciation 840,661 122,648
Total operating expenses 10,404,563 2,324,536
Operating income (loss)
(406,153) 747,796
NONOPERATING REVENUES (EXPENSES)
Interest income 85,812 2,555
Interest income pledged as
security for revenue bonds -
Gain on disposal of equipment 430
Interest expense - (87,645)
Bond amortization expense (125,344)
Loss on disposal of equipment (580) -
Total nonoperating revenues (expenses) 85,232 (210,004)
Income (loss) before transfers and
capital contributions
Capital contributions
Transfers
(320,921) 537,792
Change in net position (320,921) 537,792
Total net position - beginning
Total net position - ending
47,862,026 5,286,925
$ 47,541,105 $ 5,824,717
The accompanying notes are an integral part of the financial statements.
236
County County
Utilities Building
Total
Internal
Service Funds
- $ 2,018,104 $ 15,088,846 $ 22,224,942
28,522,667 - 28,522,667
28,522,667
2,018,104 43,611,513 22,224,942
7,352,824 1,082,207 9,437,734 1,870,705
9,935,957 456,907 21,155,951 19,366,204
14,424,758 8,701 15,396,768 144,452
31,713,539
(3,190,872)
1,547,815 45,990,453 21,381,361
470,289 (2,378,940) 843,581
13,473 101,840 94,566
325,201 - 325,201
37,382 - 37,812
(2,070,241) - (2,157,886)
(24,209) (149,553)
(7,760) (8,340)
(1,739,627) 13,473
1,021
(1,850,926) 95,587
(4,930,499) 483,762 (4,229,866) 939,168
4,700,473 - 4,700,473 -
- - - 35,488
(230,026)
483,762 470,607 974,656
242,576,061 4,134,889 299,859,901 26,879,571
$ 242,346,035 $ 4,618,651 $ 300,330,508 $ 27,854,227
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2013
Enterprise Funds
Solid Waste
Disposal Golf
District Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,957,112 $ 3,073,524
Cash paid to suppliers for goods and services (9,173,152) (1,801,690)
Cash paid to employees for services (508,802) (488,044)
Net cash provided by (used in) operating activities 275,158 783,790
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers in
Proceeds from advances from other funds - 1,564,999
Payments on advances from other funds (309,809)
Net cash provided by (used in) noncapital financing activities - 1,255,190
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes - (2,120,000)
Interest paid on long-term debt (94,106)
Proceeds from sales of capital assets - 430
Purchase of capital assets (4,107,648) (23,410)
Bond paying agent and arbitrage fees - -
Capital grants and contributions
Net cash provided by (used in) capital and related financing activities (4,107,648) (2,237,086)
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
85,662 2,570
85,662 2,570
(3,746,828) (195,536)
28,629,804 654,071
Cash and cash equivalents at end of year $ 24,882,976 $ 458,535
Classified as:
Current assets $ 10,587,383 $ 458,535
Restricted assets 14,295,593
Totals $ 24,882,976 $ 458,535
The accompanying notes are an integral part of the financial statements.
238
County
Utilities
$ 28,731,963 $
(8,660,180)
(7,395,611)
County
Building
2,018,104 $
(433,481)
(1,090,111)
12,676,172 494,512
(3,205,000)
(2,080,951)
37,382
(3,523,222)
(1,250)
2,705,139
Total
43,780,703 $
(20,068,503)
(9,482,568)
Internal
Service Funds
23,673,576
(19,457,018)
(1,861,848)
14,229,632 2,354,710
1,564,999
(309,809)
35,488
92,000
1,255,190 127,488
(5,325,000)
(2,175,057)
37,812
(8,233) (7,662,513)
(1,250)
2,705,139
1,021
(5,760)
(6,067,902) (8,233) (12,420,869) (4,739)
296,576 12,423 397,231 88,762
296,576 12,423 397,231 88,762
6,904,846 498,702
3,461,184 2,566,221
66,315,284 4,235,328 99,834,487 31,967,495
$ 73,220,130 $ 4,734,030 $
$ 43,832,875 $ 4,734,030 $
29,387,255 -
$ 73,220,130 $ 4,734,030 $
103,295,671 $ 34,533,716
59,612,823 $
43,682,848
34,533,716
103,295,671 $ 34,533,716
Continued
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2013
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) $ (406,153) $ 747,796
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 840,661 122,648
Capitalized self -incurred expenses
(Increase) Decrease in assets:
Accounts receivable (42,837)
Due from other governments (2,961) 100
Inventories 1,590
Liens receivable -
Impact fees receivable -
Special assessments receivable -
Prepaid items - (595)
Increase (Decrease) in liabilities:
Accounts payable (612,806) (97,460)
Due to other governments - (484)
Retainage payable -
Customer deposits 4,500
Closure and maintenance costs payable 498,000
Pollution remediation costs payable
Unearned revenues - 1,092
Accrued compensated absences (3,246) 9,103
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
681,311 35,994
$ 275,158 $ 783,790
Change in fair value of investments $ 6,829 $ 296
Contributed property, infrastructure and equipment $ - $
Capital assets purchased through accounts payable $ 86,302 $
The accompanying notes are an integral part of the financial statements.
240
County County Internal
Utilities Building Total Service Funds
$ (3,190,872) $ 470,289 $ (2,378,940) $ 843,581
14,424,758 8,701 15,396,768 144,452
(2,329) - (2,329)
330,621 - 287,784 1,434,102
4,331 - 1,470 14,532
44,901 - 46,491 41,236
(335,987) - (335,987)
(36,039) - (36,039)
169,652 - 169,652
(6,699) - (7,294) (48,585)
1,220,991 22,668 533,393 (83,465)
(6,422) 758 (6,148)
14,884 - 14,884
83,140 87,640
498,000
1,700 1,700
1,092
(40,458) (7,904) (42,505) 8,857
15,867,044
24,223 16,608,572 1,511,129
$ 12,676,172 $ 494,512 $ 14,229,632 $ 2,354,710
$ 31,396 $ 2,208 $ 40,729 $
$ 1,705,822 $ - $ 1,705,822 $
$ 814,080 $ 8,233 $ 908,615 $
241
15,200
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2013
Agency
ASSETS
Cash and cash equivalents $ 2,536,400 $
Investments, at fair value:
Index funds - 5,839,900
U.S. government securities funds - 4,805,380
Prime money market fund - 926,688
Other
Postemployment
Benefits Trust
Total assets $ 2,536,400 11,571,968
LIABILITIES
Accounts payable $ 388,908
Other deposits held in escrow 2,147,492
Total liabilities $ 2,536,400
NET POSITION
Net position restricted for other
postemployment benefits 11,571,968
Total net position $ 11,571,968
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 Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2013
ADDITIONS
Employer contributions $ 2,965,251
Investment income 928,354
Investment expense (1,950)
Total additions 3,891,655
DEDUCTIONS
Benefits payments
Total deductions
1,693,734
1,693,734
Change in net position 2,197,921
Net position - beginning 9,374,047
Net position - ending $ 11,571,968
The accompanying notes are an integral part of the financial statements.
243
244
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013
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 plus deferred
outflows of resources, liabilities plus deferred inflows of resources, 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 Position 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, deferred outflows of
resources, current liabilities, and deferred inflows of resources 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 fund balances. 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, 2013
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, deferred outflows of resources, liabilities, and deferred inflows of
resources (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 position.
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, 2013
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 accounted for and reported 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, 2013
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, , Fund B Surplus Funds Trust Fund (Fund B), 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 Fund B 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, 2013, 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, 2013.
249
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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 Golf Course 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. 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. Transfers of capital assets within the Board 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.
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, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
H. 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 Years
Building and improvements 10 — 50
Machinery and equipment 3 — 10
Utility distribution systems 25 — 50
Road and bridge infrastructure 20 — 50
Fiberoptics 20
Software 3-5
Beach preservation infrastructure 7
Stormwater infrastructure 30
I. 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
Board did not have any capitalized interest.
J. Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net position/fund balance that applies to a
future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The Board only has one item that qualifies for reporting in this category. It is the deferred charge
on refunding reported on the Statement of Net Position for the Proprietary funds. A deferred charge on
refunding results from the difference in the carrying value of refunded debt and its reacquisition price.
This amount is deferred and amortized over the shorter of the life of the refunding debt.
Deferred inflows of resources represent an acquisition of net position/fund balance that applies to a
future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The Board
only has one type of item, which arises under a modified accrual basis of accounting, which qualifies for
reporting in this category. The item, unavailable revenue, is reported only in the governmental funds
balance sheet. The source of the unavailable revenue is a special assessment on road paving. This
amount is deferred and recognized as an inflow of resources in the period the amounts become available.
251
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
K. 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.
L. 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.
M. Unearned Revenues
In governmental fund financial statements (in accordance with the modified accrual basis of
accounting), unearned revenues represent revenues, which are available but not earned.
N. 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.
O. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(0 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, 2013.
252
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
P. 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
Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. 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 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.
253
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013, the carrying value of the Board's deposits was $21,722,245 and the bank
balance was $22,875,693. 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". Cash
on hand at September 30, 2013 was $8,240.
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, 2013, accrued interest for the Board's portfolio totaled $145,828 and was allocated to the
funds based on their average monthly balance for September.
254
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments
On November 5, 2013, 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, 2013, the Board had the following investments:
Investment Type
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:
Regions Bank Money Market
Suntrust Bank NOW Account
Florida Trust Day to Day Fund
W&S Sinking Fund Reserve:
U.S. Treasuries
Fidelity Institutional Money Market
Total Fair Value
Weighted
Average
Maturity Portfolio
Fair Value InYears Percentage
$ 107,038,012
48,012,190
38,987,528
15,993,511
14,989,340
Credit
Risks*
1.17 38.52 % N/A
1.22
0.72
1.07
1.38
17.28 AA+
14.03 AA+
5.76 AA+
5.39 AA+
258,489 4.04 0.09 Not Rated
AAAf and
10,978,126 0.08 3.95 S-1**
13,050,363
12,090,687
11,054,404
5,437,742
13,230
$ 277,903,622
Weighted Average Maturity of Investments
0.08
0.08
0.08
1.00
0.08
0.93
4.70 N/A
4.35 N/A
3.98 AAAm
1.95 N/A
0.00 AAAm
100.00 %
* 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).
255
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments — Continued
At September 30, 2013, the Board had $228,222 invested in Fund B Surplus Funds Trust Fund (Fund
B), a fluctuating net asset value pool. The State Board of Administration (SBA) determined that Fund B
did not meet the requirements of a SEC 2a7 -like fund; therefore, a fair value factor (total net asset value
of Fund B divided by total participant balances) was provided for reporting the value of the Board's
participation in Fund B at fiscal year-end. This resulted in a positive adjustment of 13.3% of the
portfolio balance, or $30,267. Consequently, the net investment in Fund B is reported at $258,489.
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;
256
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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 10% 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, 2013 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. Additional investments include the following: the SunTrust NOW account, the
Regions Bank Money Markets, the Florida Local Government Investment Trust (held by the Bank of
New York/Mellon) and the Florida Trust Day to Day Fund (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 (last
amended on November 5, 2013). The Board 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.
257
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
D. OPEB Trust Investments - Continued
The contribution of $2.96 million for the year ended September 30, 2013 was invested in the various
funds listed below. As of September 30, 2013, the Indian River County OPEB Trust (IRCOT) had the
following investments:
Investment Type
Short -Term Portion:
Weighted
Average
Maturity Portfolio Credit
Fair Value InYears Percentage Risks*
Fidelity Treasury Money Market $ 32,198
Long -Term Portion:
0.15 0.28 % AAAm
Vanguard 500 Index 2,556,906 N/A 22.10 N/A
Vanguard All World Ex -US 2,346,217 N/A 20.28 N/A
Vanguard Mid Cap Index 620,459 N/A 5.36 N/A
Vanguard Small Cap Index 316,318 N/A 2.72 N/A
Vanguard Short Term Treasury 3,418,774 2.30 29.54 AA+
Vanguard Intermediate Treasury 1,148,802 5.60 9.93 AA+
Vanguard Prime Money Market 926,688 0.16 8.01 A-1
Vanguard Federal Money Market 205,606 0.16 1.78 A-1
Total Fair Value
$ 11,571,968 100.00 %
* 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 2012-2013 fiscal year were levied in
October 2012. 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.
258
NOTE 4 — CAPITAL ASSETS
A.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
Governmental Fund Type Capital Assets
A summary of changes in the governmental fund type capital assets is as follows:
Balance 10/1/2012
Additions
Deletions
Balance 9/30/2013
Land
Buildings
And
Improvements
Equipment Intangibles
Infrastructure
Construction
In Progress
Total
$ 139,633,250
1,131,465
(50,880)
$ 194,250,031
3,121,561
(38,950)
$ 37,006,694
1,210,660
(1,761,884)
$ 3,157,906
339,230
(298,204)
$ 358,380,255
11,866,202
(549,379)
$ 28,185,641
23,680,349
(14,818,243)
$ 760,613,777
41,349,467
(17,517,540)
$ 140,713,835
$ 197,332,642
$ 36,455,470 $ 3,198,932
$ 369,697,078
$ 37,047,747 $ 784,445,704
Beginning balance amounts have been adjusted for equipment, intangibles, and building and
improvements that are contributed to and reported by a grant sub -recipient. Beginning balance amounts
have also been adjusted for infrastructure and constructions in progress previously only reported in the
County Notes and are now being included in the Board Notes.
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
Enterprise Funds
A summary of changes in the Enterprise fund type capital assets is as follows:
Balance at 10/1/2012
Additions
Deletions
Less:
Accumulated Depreciation
Balance at 9/30/2013
Land
Buildings
And
Improvements
Construction
Equipment Intangibles In Progress Total
$21,286,010
$ 420,211,502
1,951,916
(1,529)
$14,467,383 $2,338,458 $ 6,535,099 $464,838,452
585,608 29,795 7,091,663 9,658,982
(730,846) (275,890) (1,008,265)
21,286,010 422,161,889
14,322,145 2,368,253 13,350,872 473,489,169
(208,946,932) (12,692,380) (563,115)
$21,286,010 $ 213,214,957 $ 1,629,765 $1,805,138 $ 13,350,872
259
(222,202,427)
$251,286,742
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 — CAPITAL ASSETS - Continued
B. Proprietary Fund Type Capital Assets - Continued
Internal Service Funds
A summary of changes in the Internal Service fund type capital assets is as follows:
Balance at 10/1/2012
Additions
Buildings
And
Improvements Equipment Intangibles Total
$ 18,152 $ 406,087 $ 695,695 $ 1,119,934
5,761 5,761
18,152 411,848 695,695 1,125,695
Less:
Accumulated Depreciation (18,152) (367,998) (526,146) (912,296)
Balance at 9/30/2013 $ - $ 43,850 $ 169,549 $ 213,399
NOTE 5 — RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS
Solid Waste
Disposal County
District Utilities Total
Sinking funds $ - $ 6,195,428 $ 6,195,428
Renewal and
replacement 3,152,731 3,485,928 6,638,659
Customer deposits 131,126 2,852,268 2,983,394
Capital construction - 16,853,631 16,853,631
Closure and maintenance cost 11,011,736 - 11,011,736
Total $ 14,295,593 $ 29,387,255 $ 43,682,848
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 6 — PAYABLE FROM RESTRICTED ASSETS
Liabilities payable from the Board's Enterprise Funds restricted assets are as follows:
Solid Waste
Disposal County
District Utilities
Total
Accounts payable $ - $ 106,718 $ 106,718
Retainage payable - 26,557 26,557
Accrued interest payable 161,454 161,454
Bonds payable (current portion) 3,350,000 3,350,000
Closure/maint. costs payable 11,011,736 - 11,011,736
Customer deposits 131,126 2,852,268 2,983,394
Total $ 11,142,862 $ 6,496,997 $ 17,639,859
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2013, consisted of the following:
Receivable Fund
Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 455,000
General Fund Golf Course Enterprise Fund 640,853
General Fund Fleet Internal Service Fund 317,000
$ 1,412,853
In October 2010, the General Fund loaned $333,050 to the Golf Course Fund to purchase new golf carts.
In September 2013, the General Fund loaned $1,565,000 to the Golf Course Fund for early payoff of the
2003 Recreational Revenue Bonds. 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 2014. 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.
261
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 7 - INTERFUND BALANCES - Continued
Interfund advance at September 30, 2013, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Fund $1,112,427
This amount is considered a long-term advance between major funds expected to be paid over the course
of several years. This amount has been presented as nonspendable on the General Fund Balance Sheet.
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2013, consisted of the following:
Transfers In:
Nonmajor Internal
General Transportation Governmental Service
Fund Fund Funds Fund
Transfers Out:
Total
General Fund $ - $ 7,459,882 $ 2,387,214 $ 35,488 $ 9,882,584
Optional Sales - 600,000 600,000
Tax Fund
Nonmajor
Governmental
Funds 133,199 - - 133,199
Total $ 133,199 $ 7,459,882 $ 2,987,214 $ 35,488 $ 10,615,783
Transfers are used for the following purposes: 1) use unrestricted general fund revenues to finance
transportation activities which are 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) use
unrestricted general fund revenues to pay off a bond issue, 4) use unrestricted general fund revenues to
offset a portion of salaries and benefits expenses for an employee accounted for in the health insurance
fund, 5) to close a debt service fund due to payoff of a bond issue, and 6) to use capital project fund
revenues for improvements to the Historic Dodgertown facility.
262
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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 9/30/2013
Balance Due from FDOT SR60 Agreement
Additional Funds Due from other governments
Total Due from other governments
Optional Sales
Tax Fund
$ 11,429,754
(3,000,000)
8,429,754
1,983,861
$ 10,413,615
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 10 - ACCOUNTS PAYABLE
Accounts Payable at September 30, 2013, 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 106,718
Total Proprietary Funds $ 3,326,814
Vendors
$ 734,328
384,797
1,495,570
185,479
118,205
2,744,699
674,490
Salaries and
Benefits
$ 262,210
2,003
5,744
151,422
471,721
18,113
6,337,568 $ 911,213
$ 1,350,089 $ 10,381
31,428 10,440
1,717,409 164,203
18,402 24,229
102,768 16,659
Total
Accounts
Payable
$ 996,538
386,800
1,501,314
336,901
589,926
2,744,699
692,603
$ 7,248,781
$ 1,360,470
41,868
1,881,612
42,631
119,427
106,718
$ 225,912 $ 3,552,726
The Board has not engaged in any short-term debt activity during fiscal year 2013 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, 2013, 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.
264
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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
Spring Training Facility
Revenue Bonds - 2001 Series
Total Bonds Payable
Grand Total
Balance
October 1,
2012
Additions
$ 4,182,186 $ 2,431,942
32,385,000
11,075,000
43,460,000
$ 47,642,186
Deletions
Balance
September 30,
2013
$ 2,435,303 $ 4,178,825
3,120,000
- 2,930,000
$ 2,431,942
6,050,000
$ 8,485,303
29,265,000
8,145,000
37,410,000
$ 41,588,825
Of the $4,178,825 liability for accrued compensated absences, management estimates that $3,148,000
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.
The Spring Training Facility Revenue Bonds were partially redeemed on September 30, 2013 in the
amount of $2,275,000. The purpose of the call was to eliminate the use of Half -Cent Sales Tax on
future debt service payments. More information regarding this early call option is listed below under
Spring Training Facility Revenue Bonds.
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 Balances of Nonmajor Governmental
Funds).
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11 - LONG-TERM LIABILITIES — Continued
A.
Governmental Long -Term Debt - Continued
Annual Debt Service Payments
The annual debt service payments for bonds outstanding at September 30, 2013, are as follows:
Fiscal Year
Ending
September 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2031
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Limited General
Obligation Bonds
Series 2006
Principal Interest
$ 3,255,000 $ 1,367,463
3,390,000 1,204,712
3,545,000 1,035,212
3,705,000 893,413
3,890,000 745,212
11,480,000 1,029,138
29,265,000 6,275,150
3,255,000
722,489
Spring Training Facility
Revenue Bonds
Series 2001
Principal Interest
$ 445,000 $ 418,075
470,000 394,713
495,000 370,037
520,000
550,000
2,475,000
1,870,000
1,320,000
344,050
316,750
1,136,162
619,250
132,250
8,145,000 3,731,287
445,000
$ 26,732,489 $ 6,275,150 $ 7,700,000 $ 3,731,287
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 1/2 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.
266
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11 - LONG-TERM LIABILITIES — Continued
A. Governmental Long -Term Debt - Continued
Limited General Obligation Bonds - Continued
Bonds Issued - At September 30, 2013, Limited General Obligation Bonds consisted of the following:
Description
Limited General Obligation
Bonds, 2006 Series
Outstanding at
Interest Rates September 30,
and Date Maturity Issue 2013
4.00%-5.00%
1/1 and 7/1 2021 $ 48,600,000 $ 29,265,000
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.
Spring Training Facility 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 Board 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 "Historic 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:
1. Payments received by the Board 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 Board,
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.
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring Training Facility 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 $1,221,332 represent sixteen percent of total pledged
revenues. All three pledged revenue sources totaled $7,656,378 for the current fiscal year. The Board
applied 100% of the first two pledged revenues and five 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 $11,876,287.
On September 30, 2013, the Board transferred $2,275,000 from the General fund to pay down the
principal. Excess debt service funds of $59,387 were used to pay the related interest expense.
Bonds Issued - At September 30, 2013, Spring Training Facility Revenue Bonds consisted of the
following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2013
Spring Training Facility 3.30%-5.25%
Revenue Bonds, 2001 Series 4/1 and 10/1 2031 $ 16,810,000 $ 8,145,000
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.
The County redeemed the following amounts and maturity dates on September 30, 2013:
Maturity Date Amount
April 1, 2014 $ 240,000
April 1, 2015 255,000
April 1, 2016 265,000
April 1, 2017 275,000
April 1, 2018 290,000
April 1, 2019 305,000
April 1, 2020 315,000
April 2, 2021 330,000
Total Optional Redemption $2,275,000
268
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring Training Facility Revenue Bonds - Continued
Remaining 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 $ 445,000
April 1, 2015 470,000
Term Bonds due April 1, 2017
Date Principal Amount
April 1, 2016 $ 495,000
April 1, 2017 520,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 550,000
April 1, 2019 585,000
April 1, 2020 615,000
April 1, 2021 650,000
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
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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
Refunding Series 2005
Water & Sewer Revenue
Refunding Series 2009
Total Bonds Payable
Grand Total
Annual Debt Service Payments
Balance
October 1,
2012 Additions
Deletions
$ 902,107 $ 679,522 $ 712,937 $
Balance
September 30,
2013
868,692
2,120,000 - 2,120,000 -
19,010,000 - 1,530,000 17,480,000
24,760,000 - 1,675,000 23,085,000
45,890,000 - 5,325,000 40,565,000
$ 46,792,107 $ 679,522 $ 6,037,937 $ 41,433,692
The annual debt service payments for bonds outstanding at September 30, 2013 are as follows:
Fiscal Year
Ending
September 30
2014
2015
2016
2017
2018
2019-2023
2024
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Water and Sewer
Revenue Refunding
Bonds Series 2005
Principal Interest
$ 1,605,000 $
1,670,000
1,750,000
1,840,000
1,930,000
8,685,000
800,650
736,450
652,950
565,450
473,450
931,800
17,480,000 4,160,750
1,605,000
Water and Sewer
Revenue Refunding
Bonds Series 2009
Principal Interest
$ 1,745,000 $ 1,136,800
1,815,000
1,905,000
2,000,000
2,100,000
12,180,000
1,340,000
1,067,000
976,250
881,000
781,000
2,221,250
67,000
23,085,000 7,130,300
1,745,000
548,858 - 1,906,935
$16,423,858 $ 4,160,750 $ 23,246,935 $7,130,300
270
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11— LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long -Term Debt - Continued
Recreational (Golf Course) Revenue Refunding Bonds, Series 2003
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 were 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 Board elected to redeem 100% of the outstanding bonds in the amount of $1,565,000, at par, on
September 30, 2013 in addition to the regularly scheduled payment of $555,000, which was due and
payable on September 1, 2013.
At the time of the early call, $417,500 of debt service reserve was released from restricted cash to
operating cash. In addition, $13,886 of the unamortized bond discount and $82,645 of unamortized net
economic gain was charged to bond amortization expense.
The Board has entered into an inter -fund loan agreement with the Golf Course to repay the General
Fund $1,565,000 at 2.5% over the next three years. The purpose of the inter -fund loan was to save the
Golf Course $44,944 of interest expense.
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% 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, which included shortening the term of the bonds by
four years and lowering average annual debt service by $242,000, was $2,944,661 and is amortized over
the life of the bonds. The unamortized balance of the deferred amount on the refunding at September 30,
2013 is $1,514,801 and is reflected as a deferred outflow of resources on the Statement of Net Position.
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 $2,407,150 represent approximately eighteen percent of net
revenues of $13,741,700 of the utility system. The total principal and interest remaining to be paid on
the bonds is $21,640,750.
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11— LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt - Continued
Water and Sewer Revenue Refunding Bonds, Series 2005 - Continued
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, 2013, the revenue bonds consisted of the following:
Description
Water and Sewer
Revenue Bonds,
Series 2005
Outstanding at
Interest Rates September 30,
and Date Maturity Issue 2013
3-5%
3/1 and 9/1 2022 $ 27,675,000 $ 17,480,000
Outstanding In -Substance Defeased Debt - The proceeds from the refunding were invested in Federal
Securities and 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.
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, which lowered average annual debt service by
$126,000, was $1,368,427 and is amortized over the life of the bonds. The unamortized balance of the
deferred amount on the refunding at September 30, 2013 is $992,110 and is reflected as a deferred
outflow of resources on the Statement of Net Position.
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 current principal and interest payments of $2,878,800 represent approximately twenty one percent
of net revenues of $13,741,700 of the utility system. The total principal and interest remaining to be paid
on the bonds is $30,215,300
272
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 11 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt — Continued
Water and Sewer Revenue Refunding Bonds, Series 2009 - Continued
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, 2013, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2013
Water and Sewer 4-5%
Revenue Bonds, 3/1 and 9/1 2024 $ 26,370,000 $ 23,085,000
Series 2009
Outstanding In -Substance Defeased Debt - The proceeds from the refunding were invested in Federal
Securities and 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.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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 $3.3 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.
Required closure and post -closure sub -accounts:
Capacity Estimated
Used Closing
Amount
Closure Costs
Class I - Segments I and If 61% 2030 $ 7,101,947
Construction and Demolition - Cell I 90% 2023 1,136,866
Post -closure Costs
Class I - Segments I and II N/A N/A 2,588,435
Construction and Demolition - Cell I N/A N/A 184,488
Total account balance at 9/30/13: $ 1 1,01 1,736
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, 2013, $10,978,126 was on deposit at the Florida Local Government Investment Trust and
$33,610 was on deposit in the Board's Operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/01/12 Deposits Withdrawals 09/30/13
Closure and long-term care costs $ 10,513,736 $ 498,000 $ - $11,011,736
Of the $11,011,736 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, 2013
NOTE 13 — POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financial Reporting for Pollution Remediation
Obligations, a consultant evaluated five 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 five sites requiring
the Board (using the consultant's services) to attempt to accrue a liability for pollution remediation. The
liability totaled $2,737,900 at September 30, 2013 for all five 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 $2,640,000 and will be paid from the Optional Sales Tax Fund.
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 $11,200 and will be paid from
the General Fund.
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 $73,200 and will be paid from the Impact Fees Fund.
4) Shadowbrook Estates — The nature of the pollution remediation obligation is arsenic and lead
contamination in two areas of a former citrus grove. The consultant will conduct the additional
assessment and natural attenuation monitoring. The amount of the estimated year end liability is
$3,000 and will be paid from a nonmajor fund, the Land Acquisition Fund.
Total governmental funds liability: $2,727,400
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 $10,500 and will be paid from the County
Utilities Fund.
Total proprietary funds liability: $10,500
275
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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. Employer rates effective as of July 1, 2013 were as follows: regular class
6.95%, senior class 18.31%, special risk 19.06%, and elected official class 33.03%.
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.
Employer contributions to the FRS for the fiscal years ended September 30, 2011, 2012 and 2013, were
equal to 12.8%, 7.7%, and 9.1% of the annual covered payroll. Employer contributions to the FRS for
the fiscal years ended September 30, 2011, 2012, and 2013, were $4,975,937, $2,905,921 and
$3,397,021 respectively. Employee contributions for the fiscal years ended September 30, 2011, 2012,
and 2013 were $259,425, $956,266, and $919,672 Both employer and employee contributions were
equal to 100% of the required contribution for each year.
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.
276
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
A. Plan Description
On September 23, 2008, the Board of County Commissioners approved resolution number 2008-163,
establishing an irrevocable trust (OPEB Trust) to separately identify assets accumulated to pay OPEB
benefits for eligible retirees. The OPEB Trust includes the Board of County Commissioners and the five
constitutional officers (Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff,
Supervisor of Elections, and Tax Collector). The resolution also established the Board of County
Commissioners as trustees of the OPEB Trust and the authority for the trustees to amend the benefit
provisions.
The OPEB Trust is a single -employer defined benefit plan (OPEB Plan). The OPEB plan subsidizes
(see the chart below) 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 plan members). Employees hired on or after February 1, 2006, will not be eligible for any
subsidy, regardless of the years of service or Medicare eligibility.
Active participants as well as retirees are subject to the same benefits and rules. 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 retiree has the option to continue with the
Board group health plan or elect Medicare Advantage Plan.
The implicit rate subsidy applies to health and life insurance coverage since the premiums charged are
based upon a blending of younger active employees and older retired employees. Health insurance
premiums, effective October 1, 2012 range from $400 for Medicare participants to $715 for family
coverage. Life insurance is available to retirees at a flat rate of $.20 per $1000 of coverage (to a
maximum of $20,000 until the age of 70). After 70, the maximum amount of life insurance is $10,000.
The Board subsidizes the cost of the health premiums for each retiree based upon their years of service
and employment date (as mentioned above); a 2% discount is given 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
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) — Continued
A. Plan Description — Continued
The OPEB Trust financial statements are reported using the accrual basis of accounting and are included
in the Indian River County Comprehensive Annual Financial Report (CAFR). Questions regarding the
OPEB plan may be directed to the Finance Director.
At October 1, 2011, the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,428
Retired participants 371
Total participants 1,799
There are two classes of participants at October 1, 2011:
Regular and senior management 1,127
Special risk 672
Total participants 1,799
The average employer's contribution was $2,077 per employee, approximately 4.5% of current payroll.
Financial statements for the OPEB Trust are included in this report and can be found on pages 242-243.
A separate, stand-alone financial report is not issued by the Board; however, the OPEB Trust
investments can be found in Note 2D and the Schedule of Funding Progress can be found on page 100.
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 OPEB Trust is advance funded by the
Board. For the year ended September 30, 2013, the County contributed $2.96 million to the qualifying
OPEB Trust. Plan members receiving benefits contributed $1.7 million, or approximately 57 percent of
the total premiums. It is the Board's policy to base future contributions on the annual required
contribution (ARC) in subsequent annual actuarial reports. The contributions are paid by the fund(s) by
which the participant is employed. 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 OPEB Trust 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 cost for the
current and two preceding years, the amount actually contributed, and the changes in the net obligation.
278
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
C.
Annual OPEB Cost and Net OPEB Obligation - Continued
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
D. Funded Status and Funding Progress
FY 2012/2013
2,965,251
(20,909)
26,830
2,971,172
(2,950,097)
21,075
(321,681)
(300,606)
99.29%
FY 2011/2012
$ 2,828,452
(12,323)
14,075
2,830,204
(2,962,301)
(132,097)
(189,584)
$ (321,681)
104.67%
FY 2010/2011
$ 2,948,682
(22,381)
23,385
2,949,686
(2,819,540)
130,146
(319,730)
$ (189,584)
95.59%
The Schedule of Funding Progress and Schedule of Employer Contributions, presented as required
supplementary information immediately following the County Notes to the Financial Statements (on
page 100), presents multi-year trend regarding liabilities, funding, and payroll. The data also reflects
whether the actuarial value of the plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. This information includes the current and past two actuarial
valuations and six years of funding data.
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.
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.
279
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
E.
Actuarial Methods and Assumptions - Continued
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
Inflation rate
NOTE 16 - OPERATING LEASES
Entry age normal cost method
Level percent of payroll projected to grow 4% per year
15 years
Market Value
6.5% (net administrative expenses)
4.0%-9.47% (dependent on years of service and age)
8.5% (decreasing '/2% each year & thereafter to
the ultimate value of 5.32%)
3%
The Board has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary
from 1 to 99 years. Lease revenues totaled $570,512 and lease expenditures totaled $80,114 for the year
ended September 30, 2013. 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
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
Total future minimum receipts:
Amount
$ 492,260
493,573
501,512
488,966
484,421
2,282,892
1,187,108
551,013
134,900
$ 6,616,645
The property being leased is reported in the financial statements of County and has a cost of
$29,077,088, and a carrying value of $20,284,620. Current year depreciation on property being leased
was $474,346.
280
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 16 - OPERATING LEASES - Continued
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, 2013:
Year Amount
2014 $ 80,588
2015 64,457
2016 65,894
2017 25,644
2018 25,344
2019-2023 7,500
2024-2028 7,500
2029-2033 7,500
2034-2038 6,300
2039-2043 4,500
2044-2048 4,500
2049-2053 3,000
2054-2058 2,100
2059-2063 1,500
2064-2068 1,500
2069-2073 1,500
2074-2076 1,200
Total future minimum lease payments: $ 310,527
281
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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 the approval of a County ordinance by the Board of
County Commissioners. This category also includes existing resources on hand to satisfy the
obligations that arise from 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.
282
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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. 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.
At September 30, 2013, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $ 5,100,000 $ 5,100,000 $ 10,200,000
Transportation Fund 700,000 700,000 1,400,000
Emergency Services District Fund 1,400,000 1,400,000 2,800,000
Total
$ 7,200,000 $ 7,200,000 $ 14,400,000
The General Fund reserves are included in the unassigned fund balance on the balance sheet. The
Transportation Fund reserves are included in the assigned fund balance and the Emergency Services
District Fund reserves are included in the restricted fund balance on the balance sheet. The
Emergency/Disaster Relief and Budget Stabilization Reserve amounts may only be revised by the Board
of County Commissioners.
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 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, 2013
NOTE 18 - FUND BALANCE DEFICIT
The following funds had a deficit in fund balance at September 30, 2013:
Fund Deficit
Nonmajor Governmental Funds:
Metropolitan Planning Organization Fund $ 284,024
Community Development Block Grant Fund 12,244
Community Development Block Grant NSP3 Grant Fund 34,303
Federal/State Grants Fund 1,452
Total Deficit $ 332,023
The deficits for these four funds will be eliminated by grant proceeds in fiscal year 2014.
NOTE 19 — NET POSITION
A. Restricted Net Position
The Board has established a restriction in the County Utilities Fund for capital projects related to an
expansion of capacity within the water and sewer system. At September 30, 2013, this capital projects
restriction is reported on the statement of fund net position of the proprietary funds in the amount of
$20,871,037.
284
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
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:
04/01/08 to 10/01/08 to 05/01/11 to
09/30/08 04/30/11 09/30/13
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 liability coverage listed above.
There is a 5% deductible per location for property damages arising due to a hurricane under the
reinsurance policy. 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 has received two health insurance reimbursements
totaling $108,123 in fiscal year 2013. In fiscal year 2012, the Board received one reimbursement for a
liability claim in excess of the general liability limit, in the amount of $134,820.
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 medical plan assumes all risk for claims, other than
worker's compensation, up to $250,000 per occurrence. The Board has purchased a reinsurance policy
to cover claims in excess of these limits. There were no medical claims in excess of the $250,000 limit
for the current and prior two fiscal years.
285
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 20 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical — Continued
The claims liability of $8,074,000 reported at September 30, 2013, 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, $2,197,855 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:
2009-2010
2010-2011
2011-2012
2012-2013
Balance at
Fiscal Year
Beginning
$ 7,875,000
7,899,000
7,877,000
8,074,000
Claims
and Changes
in Estimates
$13,940,099
12,901,425
13,967,831
14,396,726
Claims
Payments
$ (13,916,099)
(12,923,425)
(13,770,831)
(14,396,726)
Balance
at Fiscal
Year End
$ 7,899,000
7,877,000
8,074000
8,074,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2013, unrestricted net position of $25,513,263 has been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2013, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2.5 percent.
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.
286
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 21 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments
The Board has various contracts and commitments outstanding at September 30, 2013. In the General
Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
consulting services and external auditing services. In the Special Revenue Funds, contracts are for the
construction of Fire Station 13 in the southern part of the County on 4th Street and 43rd Avenue, Oslo
Road Widening from 58th Avenue to 43rd Avenue (Phase III), 66th Avenue Roadway Improvements from
16th Street to 4th Street, County Road 512 Road Resurfacing (Eastbound) from Roseland Road to Easy
Street, as well as a variety of other road paving and drainage projects. In the Capital Projects Fund,
contracts are for the South County Regional Park Intergenerational Recreation Facility, PC South Algal
Turf Scrubber Nutrient Recovery System, 66th Avenue Roadway Improvements from State Road 60 to
49th Street, and several sidewalk and road improvement projects throughout the County. In the
Enterprise Funds, contracts are for the Reverse Osmosis Lime Slurry Injection Project, West Regional
Wastewater Treatment Facility Anaerobic Tanks Odor Control System, Oslo Customer Convenience
Center, South County Brine Disposal project and various other water and sewer projects.
A summary of these projects at September 30, 2013, is as follows:
Total Total Paid as of
Contract Price September 30, 2013
Remaining
Balance at
September 30, 2013
General $ 745,826 $ (340,818) $ 405,008
Special Revenue 33,916,790 (19,812,897) 14,103,893
Capital Projects 23,485,546 (9,514,568) 13,970,978
Enterprise 13,795,601 (5,119,967) 8,675,634
Internal Service 119,767 - 119,767
Total $ 72,063,530 $ (34,788,250) $ 37,275,280
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.
287
Fkehmann
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
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Board
of County of Commissioners (the "Board"), as of and for the year ended September 30, 2013, which
collectively comprise the Board's fund financial statements and have issued our report thereon dated
March 3, 2014.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Board's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Board's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Board's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
288
NEXIA
INTERN AT1 ON Al
The Honorable Board of County Commissioners
Indian River County, Florida
March 3, 2014
Page 2
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material
Effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Board's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Vero Beach, Florida
March 3, 2014
416,wuced.41.474., LLC
289
Fkehmann
MANAGEMENT LETTER
March 3, 2014
The Honorable Board of County Commissioners
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Indian River County, Florida Board of County of Commissioners (the "Board") as
of and for the year ended September 30, 2013 and have issued our report thereon dated March 3, 2014.
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; OMB Circular A-133, Audits of States, Local Governments,
and Non -Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General. 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 3, 2014, 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 governs 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.
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 report. There were no findings and 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 Board of County Commissioners 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 make any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but more than
inconsequential. In connection with our audit, we did not have any such findings.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
290
NEX1A
1N TFR N AT1ONAI
The Honorable Board of County Commissioners
Indian River County, Florida
March 3, 2014
Page 2
Section 10.554(1)(i)5., 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 disclosure has
been included in the notes to the financial statements.
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, federal and other state granting agencies, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
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CLERK OF THE CIRCUIT COURT AND
COMPTROLLER
293
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of each major fund and the aggregate
remaining fund information of the Indian River County, Florida Clerk of Court (the "Clerk"), as of
and for the year ended September 30, 2013, and the related notes to the financial statements, which
collectively comprise the Clerk's fund financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
294
I NT FR N'A'P 10 VAI
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Clerk as of September 30, 2013, and the respective changes in
financial position and the respective budgetary comparison for the general fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Clerk of Court and do not purport to, and do not, present fairly the financial position of Indian
River County, Florida as of September 30, 2013, and the changes in its financial position for the year
then ended, in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3,
2014 on our consideration of the Clerk's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering Clerk's internal control
over financial reporting and compliance.
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295
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2013
General
Total
Nonmajor Fund Governmental
Special Revenue Funds
ASSETS
Cash and cash equivalents $ 115,324 $ 2,229,175 $ 2,344,499
Accounts receivable 254,484 - 254,484
Prepaid items 8,333 8,333 16,666
Due from other governments 5,694 5,694
Total assets $ 383,835 $ 2,237,508 $ 2,621,343
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Other deposits held in escrow
Unearned Revenues
Total liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Unassigned
Total fund balances
Total liabilities and fund balances
10,671 $ 12,075 $ 22,746
275,486 275,486
64,190 64,190
33,488 - 33,488
383,835 12,075 395,910
8,333 8,333 16,666
2,217,100 2,217,100
(8,333) - (8,333)
2,225,433 2,225,433
$ 383,835 $ 2,237,508 $ 2,621,343
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
Governmental Funds
For the Year Ended September 30, 2013
General
Total
Nonmajor Fund Governmental
Special Revenue Funds
REVENUES
Intergovernmental $ 2,534,468 $ $ 2,534,468
Charges for services 2,140,073 438,257 2,578,330
Judgments, fines and forfeits 141,351 141,351
Interest 2,241 5,554 7,795
Total revenues 4,676,782 585,162 5,261,944
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers from Board of County Commissioners
Transfers out
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
1,961,162
3,701,919
5,663,081
(986,299)
117,602
899,633
(21,257)
(151,902)
844,076
(142,223)
142,223
345,824
234,733
2,306,986
3,936,652
580,557 6,243,638
4,605 (981,694)
(117,602)
117,602
899,633
(117,602)
(21,257)
(151,902)
(117,602) 726,474
(112,997) (255,220)
2,338,430 2,480,653
$ 2,225,433 $ 2,225,433
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 Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2013
Budgeted Amount
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 2,493,956 $ 2,502,328 $ 2,534,468 $ 32,140
Charges for services 966,771 2,089,046 2,140,073 51,027
Interest - 2,241 2,241
Total revenues 3,460,727 4,591,374 4,676,782 85,408
EXPENDITURES
General government 1,772,155 2,001,027 1,961,162 39,865
Court related 2,602,624 3,682,399 3,701,919 (19,520)
Total expenditures 4,374,779 5,683,426 5,663,081 20,345
Excess of revenues over
(under) expenditures (914,052) (1,092,052) (986,299) 105,753
OTHER FINANCING SOURCES (USES)
Transfers from other funds 14,419 214,419 117,602 (96,817)
Transfers from Board
of County Commissioners 899,633 899,633 899,633
Transfers to Board
of County Commissioners (22,000) (21,257) 743
Transfers to other governments - (151,902) (151,902)
Total other financing sources (uses) 914,052 1,092,052 844,076 (247,976)
Net change in fund balances $ $ (142,223) $ (142,223)
Fund balances at beginning of year 142,223
Fund balances at end of year $
The accompanying notes are an integral part of the financial statements.
298
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Position
Agency Fund
September 30, 2013
ASSETS
Cash and cash equivalents $ 6,780,102
Total assets $ 6,780,102
LIABILITIES
Accounts payable $ 83
Due to other governments 576,470
Escrow deposits 6,203,549
Total liabilities $ 6,780,102
The accompanying notes are an integral part of the financial statements.
299
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
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 2013 Legislative changes, the Clerk's court -related fiscal responsibility was returned to
the County. Court -related expenditures are funded through filing fees, service charges, court costs and
fines assessed to parties using the court system. Under 2013-44, Laws of Florida, revenue collected by
the Clerk is retained by the County and remitted to the Florida Department of Revenue based upon
various formulas determined by Florida Clerks of Court Corporation. The fiscal year for court
operations was also reinstated to the county fiscal year and is reported along with non -court operations.
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 (both court and non -court) 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.
300
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
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 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 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 Items
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.
301
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
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's 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 $214,419 from the public records modernization fund
to subsidize court technology expenditures. At year end, only $117,602 was needed to cover these
expenditures.
The non -court operations (finance function and board meeting recordings) were funded by the Board of
County Commissioners in the amount of $899,633.
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 29, 2013, $21,257
was returned to the Board. This transfer is also reported as Due to Other Governments on the balance
sheet.
Two transfers for court operations' net excess funds, totaling $151,902, were remitted to the Florida
Department of Revenue. These amounts represent surplus funds at the end of the State fiscal year (June
30) in the amount of $75,021 and surplus funds at the end of the County fiscal year (September 30) in
the amount of $76,881. Based on the legal opinion provided by the Clerks of Court Operations
Corporation general counsel of the provisions of Section 28.37(3), F.S., which was adopted as policy by
the CCOC Finance and Budget Committee, all excess court -related funds remaining at September 30,
2013 have been included in a fund liability, Due to Other Governments.
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.
302
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND CASH EQUIVALENTS
A. Deposits
At September 30, 2013, the carrying value of the Clerk's deposits was $3,508,873 and the bank balance
was $4,178,657. 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. Cash
on hand at September 30, 2013 was $1,900.
The Clerk's office follows the above state law (governing custodial credit risk) for cash deposits. Refer
to the County -wide note on cash and cash equivalents for the definition of custodial credit risk.
B. Investments
At September 30, 2013, the Clerk had $ 10,399 invested in the Fund B Surplus Funds Trust Fund (Fund
B), a fluctuating net asset value pool. The fund was established by Florida Statute 218.405 and is
administered by the Florida State Board of Administration (SBA). The SBA determined that Fund B did
not meet the requirements of a SEC 2a7 -like fund; therefore, a fair value factor (total net asset value of
Fund B divided by total participant balances) was provided for reporting the value of the Clerk's
participation in Fund B at fiscal year-end of $9,181 plus a positive market value adjustment of $1,218.
Consequently, the net investment in Fund B is reported at $10,399.
The Clerk also participated in the Florida Trust Day to Day Fund, a money market product of various
securities. This fund is part of the Florida Local Government Investment Trust Fund. It was established
by Florida Statute 163.01, is administered by the Florida Association of Court Clerks, and is marked to
market daily. The Day to Day fund has an average maturity of 54 days and carries an AAAm S&P
credit rating. At year end, the Clerk maintained a balance of $5,603,429 in this trust fund.
Interest Rate Risk
The Clerk adopted an investment policy on April 25, 2013 with the intent to match investment
maturities with known cash needs and anticipated cash flow requirements. The policy included the
following limits:
• All final maturities are three years or less,
• At least 50% of the portfolio shall be invested in readily available funds.
303
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
B. Investments — Continued
Credit Risk
Authorized investments are subject to the restrictions imposed by Section 218.145 of the Florida Statues
and are limited to the following securities:
• Florida Local Government Investment Trust Funds (FLGIT),
• State of Florida Local Government Surplus Funds Trust Funds, for existing fund only,
• Interest-bearing time deposits or savings accounts in qualified public depositories (as
defined in Section 280.02, FS),
• Money market funds registered with the Securities and Exchange Commission (with the
highest quality rating from a nationally recognized rating agency),
• Derivatives are prohibited.
Concentration Risk
The following limits on portfolio composition are outlined in the Clerk's investment policy:
• No more than 10% or $1 Million of the total portfolio may be placed in certificates of
deposit with a Qualified Public Depository with any one financial institution,
• No more than 35% of the portfolio may be placed in any money market fund or
intergovernmental investment pool.
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. Classes and rates in effect at July 1, 2013 were: regular class 6.95%,
senior class 18.31%, DROP class 12.84%, and elected official class 33.03%.
304
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - 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 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 the County -wide note on
pension plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2011, 2012 and 2013, were
equal to 9.92% %, 5.21% and 5.24% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2011, 2012 and 2013 were $371,781, $186,001 and $183,360
respectively. Employee contributions for the fiscal years ended September 30, 2011, 2012 and 2013
were $23,576, $91,895 and $93,110 respectively. Both employer and employee contributions were equal
to 100% of the required contribution for each year.
305
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust (IRCOT). The
Clerk's 2013 annual contribution of $170,098 was funded by the Board of County Commissioners in the
amount of $26,990; non -court revenue in the amount of $24,253; court -related State expenditures in the
amount of $116,972; and the public modernization trust fund in the amount of $1,883. 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 the fiscal year at an annual cost of approximately $666,699.
Further details of this self-insurance program are discussed in the County -wide financial statements and
County -wide note on risk management.
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, 2013:
Beginning Ending
Balance Balance
10/01/12 Additions Deletions 9/30/13
Accrued Compensated Absences $ 285,488 $ 317,918 $ 301,881 $ 301,525
Of the $301,525 liability for accrued compensated absences, management estimates that $75,000 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 by the fund which normally pays the personnel service costs of the
employee.
306
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
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 Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial statements contained in
Government Auditing Standards issued by the Comptroller General of the United States, the
fund financial statements of the major fund and the aggregate remaining fund information of
the Indian River County, Florida Clerk of Court (the "Clerk"), as of and for the year ended
September 30, 2013, which collectively comprise the Clerk's fund financial statements and
have issued our report thereon dated March 3, 2014.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Clerk's
internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Clerk's internal control.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
307
NEXIA
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The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have
a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Clerk's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
L LC
Vero Beach, Florida
March 3, 2014
308
Fkehmann
Management Letter
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Clerk of Court (the
"Clerk"), as of and for the year ended September 30, 2013, which collectively comprise the
Clerk's fund financial statements and have issued our report thereon dated March 3, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent
Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in that report, which is dated March 3, 2014,
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 auditors' 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 findings or recommendations 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 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
309
NEXIA
1N TFR N AT1ONAI
The Honorable Jeffrey R. Smith
Clerk of Circuit Court
Page two
Section 10.554(1)(i)5., 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.
Our management letter is intended solely for the information and use of the Legislative
Auditing Committee, members of the Florida Senate and the Florida House of
Representatives, the Florida Auditor General, Federal and other granting agencies, and
applicable management and is not intended to be and should not be used by anyone other
than these specified parties.
44441444-n•. LLC
Vero Beach, Florida
March 3, 2014
310
PROPERTY APPRAISER
311
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable David Nolte
Property Appraiser
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of the major fund information of the
Indian River County, Florida Property Appraiser (the "Property Appraiser"), as of and for the year
ended September 30, 2013, and the related notes to the financial statements, which collectively
comprise the Property Appraiser's fund financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
312
NEXA
I NTFR N AT10 VAI
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the fund of the Property Appraiser as of September 30, 2013, and the respective
changes in financial position and the respective budgetary comparison for the general fund for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Emphasis of Matter
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Property Appraiser and do not purport to, and do not, present fairly the financial position of
Indian River County, Florida as of September 30, 2013, and the changes in its financial position for the
year then ended, in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3,
2014 on our consideration of the Property Appraiser's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
Property Appraiser's internal control over financial reporting and compliance.
"Natitgu4frich-‘4,es- LLC
313
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2013
ASSETS
Cash and cash equivalents $ 44,452
Accounts receivable 3,385
Total assets $ 47,837
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 17,999
Due to other governments 24,129
Deposits 5,709
Total liabilities 47,837
Fund Balances:
Unassigned
Total fund balances
Total liabilities and fund balances
$ 47,837
The accompanying notes are an integral part of the financial statements.
314
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, 2013
Budgeted Amount
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES
Charges for services $ 2,731,691 $ 2,724,076 $ 2,732,059 $ 7,983
Interest - - 802 802
Total revenues 2,731,691 2,724,076 2,732,861 8,785
EXPENDITURES
General government 2,731,691 2,724,076 2,708,732 15,344
Total expenditures 2,731,691 2,724,076 2,708,732 15,344
Excess of revenues over
(under) expenditures
24,129 24,129
OTHER FINANCING USES
Transfers to Board of
County Commissioners (21,802)
Transfers to other governments (2,327)
Total other financing uses (24,129)
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.
315
(21,802)
(2,327)
(24,129)
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2013
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.
316
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2013
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 $24,129 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, 2013, the carrying amount of the Property Appraiser's deposits was $44,382 and the
bank balance was $82,486. 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 on cash and cash equivalents for the definition of
custodial credit risk. Cash on hand at September 30, 2013 was $70.
317
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2013
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 6.95%, senior class 18.31%, DROP
class 12.84%, and elected official class 33.03%).
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 the County -wide note on
pension plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2011, 2012, and 2013, were
equal to 10.02%, 5.41%, and 6.64% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2011, 2012, 2013 were $195,025, $102,232, and $123,913
respectively. Employee contributions for the fiscal years ended September 30, 2011, 2012 and 2013
were $13,320, $52,696, and $51,583 respectively. Both employer and employee contributions were
equal to 100% of the required contribution for each year.
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Property Appraiser participated in the Indian River County Other Post Employment Benefits Trust
(IRCOT). The Property Appraiser's 2013 annual contribution of $65,905 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.
318
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2013
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 2013 at an annual cost of approximately
$258,149. 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:
Accrued Compensated Absences
Beginning Ending
Balance Balance
10/01/12 Additions Deletions 09/30/13
$ 21,022 $ 107,067 $ 106.723 $ 21,366
Of the $21,366 liability for accrued compensated absences, management estimates that $10,000 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.
319
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
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 Nolte
Property Appraiser
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial statements contained in
Government Auditing Standards issued by the Comptroller General of the United States, the
fund financial statements of the major fund of the Indian River County, Florida Property
Appraiser (the "Property Appraiser"), as of and for the year ended September 30, 2013,
which comprises the Property Appraiser's fund financial statements and have issued our
report thereon dated March 3, 2014.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Property
Appraiser's internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an
opinion on the effectiveness of the Property Appraiser's internal control.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
320
NEXIA
I NT FR NA T 1 ONA 1.
The Honorable David Nolte
Property Appraiser
Page 2
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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Property Appraiser' internal control or on compliance. This report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the
entity's internal control and compliance. Accordingly, this communication is not suitable for
any other purpose.
-44td4f4x. LLC
Vero Beach, Florida
March 3, 2014
321
Fkehmann
Management Letter
The Honorable David Nolte
Property Appraiser
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund of the Indian River County,
Florida Property Appraiser (the "Property Appraiser"), as of and for the year ended
September 30, 2013, which comprises the Property Appraiser's fund financial statements and
have issued our report thereon dated March 3, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent
Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in that report, which is dated March 3, 2014,
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 auditors' 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 findings or recommendations 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 Genera(, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
322
I NT FR N \T 10 N AI
The Honorable David Nolte
Property Appraiser
Page two
Section 10.554(1)(i)5., 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.
Auditing Committee, members of the Florida Senate and the Florida House of
Representatives, the Florida Auditor General, Federal and other granting agencies, and
applicable management and is not intended to be and should not be used by anyone other
than these specified parties.
LLC
Vero Beach, Florida
March 3, 2014
323
324
SHERIFF
325
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of each major fund and the aggregate
remaining fund information of the Indian River County, Florida Sheriff (the "Sheriff"), as of and for
the year ended September 30, 2013, and the related notes to the financial statements, which
collectively comprise the Sheriff's fund financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
326
I NT FR N'A'P 10 VAI
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Sheriff as of September 30, 2013, and the respective changes in
financial position and the respective budgetary comparison for the general fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Sheriff and do not purport to, and do not, present fairly the financial position of Indian River
County, Florida as of September 30, 2013, and the changes in its financial position for the year then
ended, in conformity with accounting principles generally accepted in the United States of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3,
2014 on our consideration of the Sheriff'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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering Sheriff's internal control
over financial reporting and compliance.
LLC
327
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2013
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
ASSETS
Cash and cash equivalents $ 1,512,571 $ 1,981,302 $ 3,493,873
Accounts receivable - net 47,637 4,120 51,757
Inventories - 24,610 24,610
Prepaid items 1,650 1,650
Total assets $ 1,561,858 $ 2,010,032 $ 3,571,890
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,556,686 $ 32,351 $ 1,589,037
Due to other governments 5,172 5,172
Total liabilities 1,561,858 32,351 1,594,209
Fund Balances:
Nonspendable:
Inventories
Prepaid items
Restricted for:
Law enforcement/public safety
Committed for:
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total fund balances
Total liabilities and fund balances
1,650
(1,650)
24,610 24,610
1,650
1,470,456 1,470,456
378,112 378,112
104,503 104,503
(1,650)
1,977,681 1,977,681
$ 1,561,858 $ 2,010,032 $ 3,571,890
The accompanying notes are an integral part of the financial statements.
328
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2013
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Miscellaneous
Total revenues
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
$ 60,080 $ 60,080
319,291 319,291
160,827 160,827
32,998 108,682 141,680
32,998
EXPENDITURES
Public safety 35,215,140
Court related 1,361,775
Total expenditures 36,576,915
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
(36,543,917)
36,549,089
(5,172)
36,543,917
648,880 681,878
1,016,349
6,903
36,231,489
1,368,678
1,023,252 37,600,167
(374,372) (36,918,289)
347,440
36,896,529
(5,172)
347,440 36,891,357
Net change in fund balances (26,932) (26,932)
Fund balances at beginning of year, as restated (Note 1 G) - 2,004,613 2,004,613
Fund balances at end of year $ - $ 1,977,681 $ 1,977,681
The accompanying notes are an integral part of the financial statements.
329
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, 2013
Budgeted Amount
Original Final
Actual
REVENUES
Miscellaneous $ $ 32,998 $ 32,998 $
Total revenues 32,998 32,998
Variance with
Final Budget
Positive
(Negative)
EXPENDITURES
Public safety 34,115,758 35,129,507 35,215,140 (85,633)
Court related 1,452,680 1,452,580 1,361,775 90,805
Total expenditures 35,568,438 36,582,087 36,576,915 5,172
Excess of revenues over
(under) expenditures
(35,568,438) (36,549,089) (36,543,917) 5,172
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 35,568,438 36,549,089 36,549,089
Transfers to Board
of County Commissioners - (5,172) (5,172)
Total other financing sources 35,568,438 36,549,089 36,543,917 (5,172)
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 fmancial statements.
330
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Position
Agency Fund
September 30, 2013
ASSETS
Cash and cash equivalents $ 30,179
Total assets $ 30,179
LIABILITIES
Escrow deposits $ 30,179
Total liabilities $ 30,179
The accompanying notes are an integral part of the financial statements.
331
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2013
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, committed or assigned 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. Funds are for the employee cafeteria plan.
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.
332
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2013
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 Sheriffs 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 general fund revenues in excess of expenditures as of year-end
are owed to the Board of County Commissioners. This unspent budget totaled $5,172 and was reported
as a transfer to the Board of County Commissioners at year end. These transfers are also included as
due to other governments on the balance sheet.
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.
G. Restatement of Beginning Fund Balance
Beginning fund balance for the special revenue fund was restated due to the reclassification of amounts
previously reported in the agency fund. At October 1, 2012, this results in an increase of the Sheriff's
special revenue fund balance of $107,947.
333
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH
Deposits
At September 30, 2013, the carrying amount of the Sheriff's deposits was $3,523,477, and the bank
balance was $4,072,529. 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. Cash on hand at September 30, 2013 was $575.
The Sheriff's office elected not to adopt a formal investment policy and selects the alternative
investment guidelines as provided by Florida Statutes 218.415, subsection 17. Refer to the County -wide
note on 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
10/01/12 Additions Deletions 09/30/13
Tangible Personal Property $ 19,166,216 $ 1,463,587 $ 739,476 $ 19,890,327
Refer to the County -wide note on capital assets for capitalization threshold, depreciation methodology
and useful lives.
NOTE 4 - INVENTORIES
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting. The costs of inventory are recorded as an expenditure when consumed rather than when
purchased. Inventory of the Sheriff, included in the special revenue fund, represents miscellaneous
clothing and store items.
334
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 5 — 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 6.95%, special risk 19.06%, senior class 18.31%, DROP
class 12.84%, and elected official class 33.03%).
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 the County -wide note on
pension plans.
Employer contributions to the FRS for the fiscal years ended September 30, 2011, 2012, and 2013 were
equal to 17.87%, 11.30%, and 12.70% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2011, 2012, 2013 were $4,048,292, $2,544,542, and $2,835,772
respectively. Employee contributions for the fiscal years ended September 30, 2011, 2012 and 2013
were $146,774, $629,659, and $615,894 respectively. Both employer and employee contributions were
equal to 100% of the required contribution for each year.
NOTE 6 — OTHER POSTEMPLOYMENT BENEFITS
The Sheriff participated in the Indian River County Other Post Employment Benefits Trust (IRCOT).
The Sheriff's 2013 annual 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.
335
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 7 — 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 2013 at an annual cost of approximately $3,300,204.
Further details on this self-insurance program are disclosed in the County -wide financial statements and
County notes.
NOTE 8 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2013:
Beginning Ending
Balance Balance
10/01/12 Additions Deletions 09/30/13
Accrued Compensated Absences $ 6,337,861 $ 3,516,906 $ 3,248,368 $ 6,606,399
Of the $6,606,399 liability for accrued compensated absences, management estimates that $3,200,000
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 County -wide financial statements and County notes.
NOTE 9 — OPERATING LEASES
The Sheriff has entered into noncancelable operating leases as lessee of a building, hangar, mail
machine, and copiers. Lease expenditures totaled $107,283 for the year ended September 30, 2013.
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
2014 $ 102,731
2015 83,911
2016 78,412
2017 75,421
2018 2,861
Total Future Minimum Lease Payments $ 343,336
336
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 10 — 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.
337
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
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, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial statements contained in
Government Auditing Standards issued by the Comptroller General of the United States, the
fund financial statements of the major fund and the aggregate remaining fund information of
the Indian River County, Florida Sheriff (the "Sheriff"), as of and for the year ended
September 30, 2013, which collectively comprise the Sheriff's fund financial statements and
have issued our report thereon dated March 3, 2014.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Sheriff'
internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Sheriff' internal control. Accordingly, we do not express an opinion on the effectiveness
of the Sheriff' internal control.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
338
NEXIA
I NT PR NAT1 ONA1.
The Honorable Deryl Loar
Sheriff
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriff's financial statements
are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of
our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Sheriff's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
L LC
Vero Beach, Florida
March 3, 2014
339
Fkehmann
Management Letter
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Sheriff (the "Sheriff"), as of
and for the year ended September 30, 2013, which collectively comprise the Sheriff's fund
financial statements and have issued our report thereon dated March 3, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent
Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in that report, which is dated March 3, 2014,
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 auditors' 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 findings or recommendations 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
340
NEXIA
1N T FR N AT1ONi\I.
The Honorable Deryl Loar
Sheriff
Page two
Section 10.554(1)(i)5., 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.
Our management letter is intended solely for the information and use of the Legislative
Auditing Committee, members of the Florida Senate and the Florida House of
Representatives, the Florida Auditor General, Federal and other granting agencies, and
applicable management and is not intended to be and should not be used by anyone other
than these specified parties.
LLC
Vero Beach, Florida
March 3, 2014
341
342
SUPERVISOR OF ELECTIONS
343
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable Leslie Rossway Swan
Supervisor of Elections
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Supervisor of Elections (the
"Supervisor of Elections"), as of and for the year ended September 30, 2013, and the related notes to
the financial statements, which collectively comprise the Supervisor of Elections' fund financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
344
XIA
I NTFR N AT10 VAI
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Supervisor of Elections as of September 30, 2013, and the
respective changes in financial position and the respective budgetary comparison for the general fund
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Emphasis of Matter
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Supervisor of Elections and do not purport to, and do not, present fairly the financial position
of Indian River County, Florida as of September 30, 2013, and the changes in its financial position for
the year then ended, in conformity with accounting principles generally accepted in the United States
of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3,
2014 on our consideration of the Supervisor of Elections' 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
Supervisor of Elections' internal control over financial reporting and compliance.
4440(.7;erl-4-rs- LLC
345
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2013
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
ASSETS
Cash and cash equivalents $ 27,636 $ 477 $ 28,113
Prepaid items 1,183 - 1,183
Total assets $ 28,819 $ 477 $ 29,296
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 17,901 $ - $ 17,901
Due to other governments 10,918 10,918
Unearned revenue 477 477
Total liabilities 28,819 477 29,296
Fund Balances:
Nonspendable:
Prepaid items 1,183 - 1,183
Unassigned (1,183) - (1,183)
Total fund balances
Total liabilities and fund balances $ 28,819 $ 477 $ 29,296
The accompanying notes are an integral part of the financial statements.
346
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2013
REVENUES
Intergovernmental
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
- $ 32,724 $ 32,724
885 885
41,794 - 41,794
42,679 32,724 75,403
1,056,910
1,056,910
36,333 1,093,243
36,333 1,093,243
Excess of revenues over
(under) expenditures (1,014,231) (3,609) (1,017,840)
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
1,028,758
(10,918)
(3,609)
1,014,231
3,609
1,028,758
3,609
(10,918)
(3,609)
3,609 1,017,840
The accompanying notes are an integral part of the financial statements.
347
REVENUES
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
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, 2013
Budgeted Amount
Original Final
Actual
$ $ 885 $
41,794 41,794
41,794
Variance with
Final Budget
Positive
(Negative)
885
42,679 885
1,026,258 1,066,943 1,056,910 10,033
1,026,258 1,066,943 1,056,910 10,033
(1,026,258) (1,025,149) (1,014,231) 10,918
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 1,028,758 1,028,758 1,028,758
Transfers to Board
of County Commissioners (10,918) (10,918)
Transfers to other funds (2,500) (3,609) (3,609)
Total other financing sources (uses) 1,026,258 1,025,149 1,014,231 (10,918)
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.
348
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2013
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.
349
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Prepaid Items
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. Unearned Revenues
Unearned revenues reported on the Supervisor of Election's balance sheet represent revenues which are
available but not earned.
G. 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.
H. Transfer Out
In accordance with Florida Statutes, all general fund revenues in excess of expenditures as of year-end
are owed to the Board of County Commissioners and other governments. This unspent budget totaled
$10,918 and was reported as transfers out. These transfers are also reflected as due to other governments
on the balance sheet.
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.
350
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH
Deposits
At September 30, 2013, the carrying amount of the Supervisor of Elections' deposits was $28,088, and
the bank balance was $70,594. 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. Cash on hand at September 30, 2013 was $25.
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 on cash and cash equivalents for the
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 6.95%, senior class 18.31%, DROP
class 12.84%, and elected official class 33.03%). 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 the County -wide note on
pension plans.
351
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Employer contributions to the FRS for the fiscal years ended September 30, 2011, 2012, and 2013, were
equal to 11.5%, 6.19%, and 7.46% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2011, 2012, 2013 were $48,433, $28,013 and $33,448
respectively. Employee contributions for the fiscal years ended September 30, 2011, 2012 and 2013
were $1,957, $13,585, and $12,975 respectively. Both employer and employee contributions were equal
to 100% of the required contribution for each year.
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 2013 annual contribution of $13,181 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 2013 at an annual cost of
approximately $40,944.
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, 2013:
Beginning Ending
Balance Balance
10/01/12 Additions Deletions 09/30/13
Accrued Compensated Absences $ 26,589 $ 28,336 $24,915 $ 30,010
Of the $30,010 liability for accrued compensated absences, management estimates that $10,078 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.
352
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 7 — OPERATING LEASES
The Supervisor of Elections has entered into noncancelable operating leases as lessee for a mail machine
and letter opener. Lease expenditures totaled $7,101 for the year ended September 30, 2013.
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
2014 6,672
2015 6,672
2016 6,672
2017 5,004
Total Future Minimum Lease Payments $ 25,020
353
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
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, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial statements contained in
Government Auditing Standards issued by the Comptroller General of the United States, the
fund financial statements of the major fund and the aggregate remaining fund information of
the Indian River County, Florida Supervisor of Elections (the "Supervisor of Elections"), as
of and for the year ended September 30, 2013, which collectively comprise the Supervisor of
Elections' fund financial statements and have issued our report thereon dated March 3, 2014.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the
Supervisor of Elections' internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Supervisor of Elections' internal control. Accordingly, we
do not express an opinion on the effectiveness of the Supervisor of Elections' internal control.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
354
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1 N TF. R N VT10 N
The Honorable Leslie Swan
Supervisor of Elections
Page 2
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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Supervisor of Elections' internal control or on compliance. This report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering
the entity's internal control and compliance. Accordingly, this communication is not suitable
for any other purpose.
LLC
Vero Beach, Florida
March 3, 2014
355
Fkehmann
Management Letter
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Supervisor of Elections (the
"Supervisor of Elections), as of and for the year ended September 30, 2013, which collectively
comprise the Supervisor of Elections' fund financial statements and have issued our report
thereon dated March 3, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent
Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in that report, which is dated March 3, 2014,
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 auditors' 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 findings or recommendations 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 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
356
NEXIA
1N TFR N AT1ONAI
The Honorable Leslie Swan
Supervisor of Elections
Page two
Section 10.554(1)(i)5., 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.
Our management letter is intended solely for the information and use of the Legislative
Auditing Committee, members of the Florida Senate and the Florida House of
Representatives, the Florida Auditor General, Federal and other granting agencies, and
applicable management and is not intended to be and should not be used by anyone other
than these specified parties.
��t�sein. LLC
Vero Beach, Florida
March 3, 2014
357
358
TAX COLLECTOR
359
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 3, 2014
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Tax Collector (the "Tax Collector"),
as of and for the year ended September 30, 2013, and the related notes to the financial statements,
which collectively comprise the Tax Collector's fund financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
360
NEXIA
I NT FR N AT1ONi\I.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Tax Collector as of September 30, 2013, and the respective
changes in financial position and the respective budgetary comparison for the general fund for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Emphasis of Matter
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Tax Collector and do not purport to, and do not, present fairly the financial position of Indian
River County, Florida as of September 30, 2013, and the changes in its financial position for the year
then ended, in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 3,
2014 on our consideration of the Tax Collector's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering Tax Collector's
internal control over financial reporting and compliance.
-4-146titioce�.a.rn-LLC
361
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2013
ASSETS
Cash and cash equivalents $ 1,934,342
Investments 837,078
Accounts receivable 152,908
Inventories 1,064
Prepaid items 1,367
Total assets $ 2,926,759
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 205,687
Due to other governments 2,688,892
Unearned revenues 31,851
Other deposits held in escrow 329
Total liabilities 2,926,759
Fund Balances:
Nonspendable:
Inventories 1,064
Prepaid items 1,367
Unassigned (2,431)
Total fund balances
Total liabilities and fund balances $ 2,926,759
The accompanying notes are an integral part of the financial statements.
362
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, 2013
Budgeted Amount
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
REVENUES
Charges for services $ 5,874,500 $ 5,874,500 $ 5,400,369 $ (474,131)
Interest 10,000 10,000 9,729 (271)
Total revenues 5,884,500 5,884,500 5,410,098 (474,402)
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
2,852,852 2,852,852 2,721,206 131,646
2,852,852 2,852,852
3,031,648 3,031,648
2,721,206 131,646
2,688,892 (342,756)
OTHER FINANCING USES
Transfers to Board
of County Commissioners (2,643,597) (2,643,597) (2,344,743) 298,854
Transfers to other
governments (388,051) (388,051) (344,149) 43,902
Total other financing uses (3,031,648) (3,031,648) (2,688,892) 342,756
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.
363
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Position
Agency Fund
September 30, 2013
ASSETS
Cash and cash equivalents $ 4,057,014
Investments 43,708
Total assets $ 4,100,722
LIABILITIES
Due to other governments $ 4,100,722
Total liabilities $ 4,100,722
The accompanying notes are an integral part of the financial statements.
364
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
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.
365
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
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 Items
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. Unearned Revenues
Unearned revenues represent revenues which are available but not earned. The amount reported on the
Tax Collector's balance sheet of $31,851 represents prepaid vehicle registrations.
366
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H. 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.
I. 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" of $2,688,892 are
reported as transfers to other governments and are also included as due to other governments on the
balance sheet.
J. 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 CASH EQUIVALENTS
A. Deposits
At September 30, 2013, the carrying amount of the Tax Collector's deposits was $5,975,527 and the
bank balance was $6,071,476. 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. Cash on hand at September 30, 2013 was $15,829.
B. Investments
The Tax Collector modified their investment and deposit policy in January 2013. 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 on cash and cash equivalents for the
definition of custodial credit risk.
367
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
B. Investments - Continued
At September 30, 2013, the Tax Collector had the following investments:
Investment Type
Weighted Average Portfolio Credit
Fair Value Maturity In Years Percentage Risks
Other Fixed Rate Investments:
Florida PRIME (formerly Fund A) $ 57,289 .12 6.50% AAAm
Fund B Surplus Funds Trust Fund 43,708 4.04 4.96 Not Rated
Other Market Rate Investments:
Certificate of Deposit — 13 Month 250,473 1.08 28.44 N/A
Certificate of Deposit — 21 Month 253,565 1.76 28.79 N/A
Certificate of Deposit — 24 Month 250,473 2.00 28.44 N/A
Florida Trust Day to Day Fund 25,278 .08 2.87 AAAm
Total Fair Value
$ 880,786 100.00%
Portfolio weighted average maturity 1.59
Concentration Risk
The Tax Collector's cash and 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 95%
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
("Florida PRIME" and "Fund B").
368
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
Concentration Risk - Continued
The Florida PRIME has adopted operating procedures consistent with the requirements for a 2a-7 like
fund. The Tax Collector's investment in the Florida PRIME 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, 2013, the
Florida PRIME held a rating of AAAm by Standard and Poor's and had a weighted average days to
maturity of 44 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 Florida PRIME, 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, 2013. 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
Florida PRIME and Fund B.
At September 30, 2013, the Tax Collector had $38,590 invested in Fund B Surplus Funds Trust Fund, a
fluctuating net asset value pool. The State Board of Administration (SBA) determined that Fund B did
not meet the requirements of a SEC 2a7 -like fund; therefore, a fair value factor (total net asset value of
Fund B divided by total participant balances) was provided for reporting the value of the Tax Collector's
participation in Fund B at fiscal year-end. This resulted in a positive adjustment of 13.3% of the
portfolio balance, or $5,118. Consequently, the net investment in Fund B is reported at $43,708.
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 and funds in excess of current operating needs may have maturities of no longer than
twenty-four 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.
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Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
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 Florida PRIME 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.
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 6.95%, senior class 18.31%, DROP class 12.84%,
and elected official class 33.03%).
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 the County -wide note on
pension plans.
370
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
NOTE 4 — PENSION PLAN - Continued
Florida Retirement System - Continued
Employer contributions to the FRS for the fiscal year ended September 30, 2011, 2012, and 2013, were
equal to 10.69%, 5.63%, and 7.01% of the annual covered payroll. Employer contributions to the FRS
for the fiscal years ended September 30, 2011, 2012, and 2013 were $170,864, $90,405, and $104,670
respectively. Employee contributions for the fiscal years 2011, 2012 and 2013 were $10,326, $45,214
and $42,441. Both employer and employee contributions were equal to 100% of the required
contribution for each year.
NOTE 5 — OTHER POSTEMPLOYMENT BENEFITS
The Tax Collector participated in the Indian River County Other Postemployment Benefits Trust
(IRCOT). The Tax Collector paid their 2013 annual contribution of $82,852 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.
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 2013 at an annual cost of approximately $251,280.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
371
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2013
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, 2013:
Beginning Ending
Balance Balance
10/01/12 Additions Deletions 09/30/13
Accrued Compensated Absences $ 100,536 $_3_5M $ 23,247 $ 112,797
Of the $112,797 liability for accrued compensated absences, management estimates that $16,000 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 $95,638 for the fiscal year ended September 30, 2013.
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, 2013:
Year Amount
2014 $ 97,144
2015 50,120
2016 3,494
2017 2,352
2018 1,764
Total future minimum lease payments $ 154,874
372
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
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, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial statements contained in
Government Auditing Standards issued by the Comptroller General of the United States, the
fund financial statements of the major fund and the aggregate remaining fund information of
the Indian River County, Florida Tax Collector (the "Tax Collector"), as of and for the year
ended September 30, 2013, which collectively comprise the Tax Collector' fund financial
statements and have issued our report thereon dated March 3, 2014.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Tax
Collector' internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Tax Collector' internal control. Accordingly, we do not express an opinion
on the effectiveness of the Tax Collector' internal control.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
373
NEXIA
I NT PR NAT1 ONA1.
The Honorable Carole Jean Jordan
Tax Collector
Page 2
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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Tax Collector's internal control or on compliance. This report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the
entity's internal control and compliance. Accordingly, this communication is not suitable for
any other purpose.
Lit
Vero Beach, Florida
March 3, 2014
374
Fkehmann
Management Letter
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Tax Collector (the "Tax
Collector"), as of and for the year ended September 30, 2013, which collectively comprise
the Tax Collector's fund financial statements and have issued our report thereon dated March
3, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent
Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in that report, which is dated March 3, 2014,
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 auditors' 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 findings or recommendations 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
375
NEXIA
1N T FR N AT1ONi\I.
The Honorable Carole Jean Jordan
Tax Collector
Page two
Section 10.554(1)(i)5., 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.
Our management letter is intended solely for the information and use of the Legislative
Auditing Committee, members of the Florida Senate and the Florida House of
Representatives, the Florida Auditor General, Federal and other granting agencies, and
applicable management and is not intended to be and should not be used by anyone other
than these specified parties.
L LC
Vero Beach, Florida
March 3, 2014
376