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Home My WebLink About2003-058 IVIA 4W. wltY " ° ,e Vrf, .0 Y e ^a at uA C 4 I If fIf 1 Ta, fi is G s, F y � A } A f a y Y 'fl y p w G*mry 'j 4 p 6 p R } 'tI fl .. 0 hY Ott ,� wIt 4w ° fK Y" e . e Vit. A { { s 1 f s'� C F vt'a{ x v b F�Sa 1 7 '" � r , fn z � w � • u tt # d A J b Vt Y Yr " p e If"M � Illy, clo /. AT+;,"• Y & v t i 31 � '4 W 1 , e 4 T �,f,m 1 1A'[ e i ° � ' . � +e ,w' �. s. ^� '� �# ;P c� �. '6 Af yA. m 2 { + 4Y i m w4AA (nl` Lf " Yv� J Sy ^. w,t It mt s '� N L,2 j§� iy IN vKf a L >< It I ( If It e, T9 *, '� i ,. r. . If a ,r $ � :h {, _ 4 i ate • "INA Y w6eI If f�' b r f YprA + 1 r y mq .( , a Y. E �f i ie ' � �"�+ :.w t it E a • ti... y s: .y' . • AA w t 1 s iR r A x ' l ' r tYIt :a '6•'1 - Ifo f i r, 2, t ,q. S 4 INn. 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If 'If If( Ajy 9 It : 1 IfLI a :} v } m . .II The Indian River County Library 5yotem provides the means for people of all ages, irnteroot5, backgrounds and circumotance5 to have acce5o to the recorded wisdom , experiences and ideas of others. A trained and Skilled otaff, along with the latest technology, facilitates the use of the many reoourceo of the library System . Dy committing themselves to excellence in all facets of the library oyotem ' S services, the library administration , otaff and Public Library Advisory Board reaffirm the democratic idealo upon which the American public library wao founded . During the 2001 - 2002 fiscal year, both the Indian River County Main Library and the North County Library underwent major expansion and renovation projects to provide the community with improved and expanded library aerviceo and functiono. The Main Library, located in the heart of downtown Vero Beach , Serves ao a landmark for both citizens and tourists alike . The modern look of the architecture, bright colors and beautifully kept grounds, make the Main Library one of the County's moot beloved treasures. The 2 million dollar expansion project of the Main Library increased the exioting building by approximately 7, 000 oquare feet, providing addi - tional space in the Children 'o Area , Genealogy and Florida History Department, Reference Department, ao well ao the area for general collectiono. The North Indian River County Library, located on County Road 512 in 5ebaotian , aloo serves the residents of the County ao well ao the surrounding areao. The 1 . 5 million dollar expansion of the North Library added 7,500 oquare feet and provided 50 additional parking spaces. The meeting room capacity expanded from 110 to 200 people . The Story Time Room was added to the Children 's Area and the general collectiono area was expanded for more book - stacking space . One major benefit of the expansion projects was an increase in the computers for public access. This allowo for information and knowledge to be more readily available and accessible to the individuals of the County who choose to utilize thio valuable service . The number of computers in the Main Library nearly tripled , while a new computer lab for 26 computers wao added to the North Library, doubling its number of public use computers and increasing the adult PC sign - ups by 18 % . The Indian River County Library 5yotem has earned many accolades and honors over the past few years. During the fiscal year 2001 - 2002, it was ranked first in the State for reference transactions and adult programming . It hao aloo previouoly been ranked fourth in the State for the number of library visits and total circulation as well ao second for juvenile circulation . The Main Library was given an honorable mention in the " Family Tree" magazine for boot omall town library, while the North Library has continued to become a major Source of both education and entertainment for the children and young people of Indian River County, reaching over 12 , 000 children in more than 400 programs. Because of theoe positive programs offered by the libraries, the County's children and young adults develop into reoponoible, educated community leaders for the future of Indian River County. r INDIAN RIVER COUNTY, FLORIDA r r COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30 , 2002 r r ' Jeffrey K . Barton Clerk of the Circuit Court ' Prepared By : Clerk of the Circuit Court Finance Department Edwin M . Fry, Jr. Finance Director Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30 , 2002 Board of County Commissioners Ruth M . Stanbridge Fran B . Adams Chairman Caroline D . Ginn John W. Tippin Kenneth R. Macht rice-Chairman Elected Constitutional Officers Jeffrey K . Barton David C . Nolte Clerk of the Circuit Court Property Appraiser Kay Clem Roy Raymond Supervisor of Elections Sheriff Charles W. Sembler Tax Collector County Management James E . Chandler Paul Bangel County Administrator County Attorney Joseph Baird John W. King Assistant County Administrator Director of Emergency Services James W. Davis Robert M . Keating Director of Public Works Director of Community Development Erik Olson Thomas W. Frame Director of Utilities Director of General Services Cliff Crawford Robert J . Komarinetz Director of Recreation Director of Golf Course James E . Carnicella Director of Human Resources ' Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Fiscal Year Ended September 30 , 2002 Page Number ' INTRODUCTORY SECTION LETTEROF TRANSMITTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i ' ORGANIZATION CHART xi ' CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE INFINANCIAL REPORTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii ' FINANCIAL SECTION REPORT OF INDEPENDENT ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 MANAGEMENT ' S DISCUSSION AND ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 BASIC FINANCIAL STATEMENTS : Government-wide Financial Statements : Statementof Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . 13 Statementof Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Fund Financial Statements : Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Statement of Revenues , Expenditures , and Changes in Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Reconciliation of the Statement of Revenues , Expenditures , and Changes ' in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . 20 Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 21 ' Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual - Secondary Roads Construction Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual -Transportation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual - Emergency Services District Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Statement of Net Assets - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Statement of Revenues , Expenses , and Changes in Fund Net Assets - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 ' Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Statement of Fiduciary Net Assets - Agency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Notes to the Financial Statements . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED Fiscal Year Ended September 30 , 2002 Page Number Combining and Individual Fund Statements and Schedules : Combining Balance Sheet - Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Combining Statement of Revenues , Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds98 Budgetary Comparison Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Combining Statement of Net Assets - Nonmajor Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Combining Statement of Revenues , Expenses , and Changes in Fund Net Assets - Nonmajor Enterprise Funds . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Combining Statement of Cash Flows - Nonmajor Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Combining Statement of Net Assets - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Combining Statement of Revenues, Expenses , and Changes in Fund Net Assets - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Combining Statement of Cash Flows - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Statement of Changes in Assets and Liabilities - Agency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Capital Assets Used in the Operation of Governmental Activities : Comparative Schedules By Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 150 Schedule by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Schedule of Changes by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 ' Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED Fiscal Year Ended September 30 , 2002 Page Number STATISTICAL SECTION TABLE 1 General Government Expenditures by Function - Last Fifteen Fiscal Years . . . . . . . . . . . 154 TABLE 2 General Government Revenues by Source - Last Fifteen Fiscal Years . . . . . . . . . . . . . . . . . . . . 155 ' TABLE 3 Property Tax Levies and Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P rh' . . . . . . 156 TABLE 4 Just and Taxable Value of Real and Personal Property - LastTen Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 iTABLE 5 Property Tax Rates - Direct and Overlapping Governments- Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 TABLE 6 Special Assessment Billings and Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . 159 TABLE 7 Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 TABLE 8 Computation of Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 TABLE 9 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures - Last Ten Fiscal Years . . . . . . . . . . . . 162 ' TABLE 10 Department of Utility Services- Summary of Historical Revenue of the System - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 TABLE 11 Revenue Bond Coverage - Golf Course - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 TABLE 12 Revenue Bond Coverage - Indian River County Housing Authority - ' Component Unit - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 TABLE 13 Demographic Statistics - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 TABLE 14 Property Value , Construction and Bank Deposits - Last Ten Fiscal Years . . . . . . . . . . . . . . . 167 TABLE 15 Principal Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 TABLE 16 Schedule of Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 TABLE 17 Miscellaneous Statistical Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 a Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED Fiscal Year Ended September 30 , 2002 Page Number TABLE 18 Department of Utility Services- Water and Sewer Customers-Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 TABLE 19 Department of Utility Services - HighVolume Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 TABLE 20 Department of Utility Services - Historical Rate Structure- Last Eight Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 177 COMPLIANCE SECTION Federal and State Grants : Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Report on Compliance and on Internal Control Over Compliance Applicable to Each Major Federal Program and StateProject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Sc edule of Expenditures of Federal Awards and State Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Notes to Schedule of Expenditures of Federal Awards and State Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 186 Schedule of Findings and Questioned Costs - Federal Awards and States Projects . . . . . . . . . . . . " " " 187 1 ' Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED ' Fiscal Year Ended September 30 , 2002 AUDITOR GENERAL REPORTS SECTION Page ' Number COUNTY MANAGEMENT COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 189 ' BOARD OF COUNTY COMMISSIONERS ' Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 ' Report on Compliance and on Internal Control over Financial Reporting Baseed on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 ' Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 ' Response to Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 CLERK OF THE CIRCUIT COURT Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 ' Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 Report on Compliance and on Internal Control over Financial ' Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 ' Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Response to Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 ' PROPERTY APPRAISER Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 ' Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 ' Management Comments g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS -CONTINUED Fiscal Year Ended September 30 , 2002 Page Number SHERIFF Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1111 . . . . . 294 SUPERVISOR OF ELECTIONS Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1111 . . . . . . 298 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 Response to Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 TAX COLLECTOR Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . 1111 . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . 320 ��vER c JEFFREY K . BARTON Clerk of Circuit Court P. O . Box 1028 Vero Beach , Florida 32961 - 1028 F�0R�� Telephone: ( 772 ) 770-5185 March 5 , 2003 To the Citizens of Indian River County : The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended September 30, 2002 , is respectfully submitted. This report was prepared by the Finance Department under the supervision ofthe Clerk ofthe Circuit Court. Responsibility for both the accuracy ofthe presented data and the completeness and fairness ofthe presentation, including all disclosures , rests with the Finance Department. This report contains four major sections : the Introductory, the Financial , the Statistical and the Compliance Sections . The Introductory Section is designed to give the reader ofthe financial report some basic background information about the County. The Financial Section is divided into ( 1 ) management' s discussion & analysis and the basic financial statements , and (2) the combining and individual fund financial statements . The Statistical Section reflects social and economic data, financial trends and the fiscal capacity of Indian River County. The Compliance Section includes a schedule of expenditures of federal awards and state projects as required by the Florida Single Audit Act, the U. S . Single Audit Act of 1984, the U . S . Single Audit Act Amendments of 1996 and the U . S . Office of Management and Budget. The County has prepared the financial statements to meet the requirements of Governmental Accounting Standards Board Statement No . 34 , Basic Financial Statements - and Management 's Discussion and Analysis -forState and Local Governments (GASB 34) . These statements are significantly different from the financial statements prepared by the County for previous fiscal years . GASB 34 establishes a new reporting model that the County has reported in four parts : 1 ) Management' s Discussion andAnalysis - anarrative reportproviding significant information aboutthe County and how the County' s financial position has changed from September 30 , 200 1 , to September 30 , 2002 , and the reasons for the change ; 2) Government-wide Financial Statements - financial reports on the governmental and business-type assets, ' liabilities , expenses and revenues ofthe County; 3) Fund Financial Statements - financial reports on the major individual governmental and proprietary funds of the County, and budgetary comparisons for the County' s general fund and mayor special revenue funds ; and 4) Notes to the Financial Statements . Indian River County is a Non-Charter County established under the Constitution and the Laws ofthe State of Florida. This Comprehensive Annual Financial Report (CAFR) includes the funds ofthe primary government (the Board of County Commissioners , the Clerk ofthe Circuit Court, the Property Appraiser, the Sheriff, the Supervisor ofElections and the Tax Collector) and the following component units : The Emergency Services District The Indian River County Housing Authority The Solid Waste Disposal District These entities were included because generally accepted accounting principles require that organizations for which the County is financially accountable 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 County Memorial Hospital . ECONOMIC CONDITION AND OUTLOOK Indian River County, established on June 29, 1925 , by an act ofthe Florida Legislature, is on the central Atlantic coast ofFlorida, approximately 100 miles southeast of Orlando and 135 miles north ofMiami . 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 ofAtlantic beaches . The City of Vero Beach is the seat of County government, as well as the largest municipality in the County. Indian River County is the winter home for thousands ofvisitors , spring training grounds ofthe Los Angeles Dodgers, and home ofthe Disney Resort on Orchid Island . The functional (seasonal plus resident) population reaches approximately 150,000 . Like the State ofFlorida, the County has experienced significant population growth. Retail trade and the service industries remain the largest sectors of employment in the County. Other major sources of j obs are found in government and agriculture . Indian River citrus is a well recognized name and product throughout the United States and internationally. Strong growth in the County continued and has provided the County the opportunity to lower tax rates while still providing a high level of services to County residents and visitors . Property tax values increased 14 . 8% and the taxable value compared to the total just value ofproperty increased from 75 . 6% to 75 . 9% . Construction activity in 2002 was strong with 2,257 permits being issued for new construction with a value of$433 . 8 million. This was an increase of 15 . 6% from last year and sets a new record for annual construction value . Just slightly less than 18 % ofthe total County acreage is dedicated to citrus production. The County is a major producer of citrus in the state and produced 19 . 1 million boxes of citrus in 2002 compared to last year' s production of 18 . 0 million boxes . Total employment increased slightly from 42, 815 to 42,952 . However, as did the state and national annual average unemployment rates, the annual average unemployment rate in the County increased, rising from 6 . 5 % to 7 . 7% . Population growth, which was averaging about 2 . 15 % per year in the 1990s, was 2 . 1 % in 2002 . Indian River County ' s estimated population for 2002 was 118 , 149. Construction activity in the County continued to exhibit strength with a number ofprojects being completed during the past year. There appears to be continuing strength going forward with many projects in the planning stages or currently underway. ii ' In the north part of the county, some of the projects underway include : •A 3 ,000 square foot convenience store/ food court at the intersection of US 1 and 8611 Street with a car wash and 12 fueling stations ; *The 14 , 000 square foot Lakeside Fellowship Baptist Church east of 661 Avenue and south of 81 st 1 Street; *The Jungle Trail/Pelican Island Wildlife Refuge conservation education facility including three bath- room facilities , five shelters and 2 kiosks ; ' • The North County soccer complex expansion to provide bathrooms and a concession stand; •The Bermuda Club consisting of 90 single-family lots and a 78 unit multi-family area onA 1 A south of Sea Oaks and north of Disney; *The Marsh Island Planned Development with 27 single-family lots, 8 duplex lots, and a fitness center on the Wabasso Causeway; •Phase III of the Old Orchid Development with 30 single-family lots on County Road 510 ; and •The Seasons Community, a 100 lot single-family subdivision at the intersection of County Road 510 and Jungle Trail. Completed projects include : *The North County Elementary Magnet School, a 76,000 square foot complex on County Road 510 ; and *Dune House Point, a six-unit apartment building on A 1 A north of the Sea Oaks . In the central part of the county, some of the projects underway include : •A 12 ,400 square foot medical office building on 37th Place ; •A 4, 800 square foot contractor trades building at 6598 Old Dixie Highway; • A 2 , 800 square foot pole barn and 22 , 800 square foot addition to the agriculture research facility at 7145 58th Avenue ; •A 85 , 600 square foot retail/office building at 3929 US 1 ; •A 92 , 800 square foot mini-storage facility at 3890 69th Street; • Sunset Cove an 11 single-family lot subdivision in Grand Harbor; * The Walker Avenue Club, a 172 unit apartment complex at 6900 26th Street; *The Cascades of Vero , an 80 lot single-family subdivision between 651 and 691 Streets ; *Eagle Trace, a 62 lot single-family subdivision east of 58th Avenue ; *Pine Ridge, a 42 lot single-family subdivision at the intersection of 581 Avenue and 57th Street; and * Sabal Trace, a 28 single-family lot subdivision at 2225 581Avenue . Completed projects include : • A new Sonny 's Bar-B - Q restaurant at 5001 20th Street ; * The Spine and Sport Medical Office , a 2 , 800 square foot building at 1345 361h Street; *The 290 acre Quail Valley Golf Club 18 hole golf course, clubhouse and maintenance facility; •A 4, 000 square foot contractor trade building at 4004 43 `d Avenue ; • In Grand Harbor, two 6-plexes , 4 duplexes , a ship ' s store , a tiki bar and a pool ; *Also in Grand Harbor, the Osprey Pointe 12 multi-family unit complex and the Sunset Trace 6 duplex unit complex; and • The Compass Pointe Subdivision, a 57 single-family lot subdivision south of 261 Street and west of 50th Avenue . iii In the south part of the county, some of the projects underway include : *The 3 ,300 square foot Dr. StewartAnimal Clinic at 890 Old Dixie Highway; * Four 7, 500 square foot contractor trades buildings at the intersection of 18d' Avenue SW and Oslo Road; *The 25 ,000 square foot Florida River Packing House at 6350 91 Street SW; *The Vero Mall redevelopment, which will use the old mall site to provide retail facilities including a grocery store and numerous retail outlets ; *Two 6 ,200 square foot warehouses , one at 430 3 `d Lane SW and one at 440 31 Lane SW; •A 10,000 square foot contractor trades building at 1452 Old Dixie Highway; *The Grand Royale, a 72 multi-family unit complex at 100 Vista Royale Blvd; *Village Walk South, a 102 unit multi-family subdivision at 620 6d, Avenue; • Citrus Springs Village , a multi-phase project with 54 lots on 29 acres east of 58th north of 5d' Street SW and 216 lots on 75 acres on 58' Avenue between 9th Street SW and the South Relief Canal : *Pointe West North Village, a 25 single-family lot subdivision between 161 Street and SR 60 ; • Carriage Lake, a 64 single-family lot subdivision at the intersection of Kings Highway and 81 Street; • Waters Edge , a 131 unit subdivision at the intersection of 1 s' Street SW and 32"1 Court SW; and • Waterford Lakes , a 265 single-family lot subdivision at the intersection of 121 Street and 161 Av- enue. Completed projects include : •A new Carraba 's restaurant in front of the old Vero Mall on US 1 ; *An 11 ,000 square foot contractors trade facility at 1000 Old Dixie Highway; •A 44, 000 square foot contractor trades facility north of Oslo Road between 33rd and 341 Avenue S W; •A 400 unit self storage complex south of Oslo Road and east of 181 Avenue SW; •A 13 ,200 square foot warehouse at 9015 161 Place ; •The Vineyards , a 59 single-family lot subdivision on the east side of 43 " Avenue south of 1 S' Street SW; and *Hunters Run, a 39 single-family lot subdivision south of Oslo Road between 471 Avenue SW and 58th Avenue . MAJOR INITIATIVES Indian River County continued with its overall program of improving the management ofthe County and followed through on many ofthe activities identified in the previous year. Major accomplishments for the 2001 -2002 fiscal year (FY 2002) listed below demonstrate what taxpayer dollars were used for in the prior year and sets a framework for the organization ' s goals for the 2002 -2003 fiscal year (FY 2003 ) . Fairgrounds Agricultural Arena The Florida Department ofAgriculture and Consumer Services awarded a $ 391 , 000 grant to Indian River County for improvements at the Arena. Sandblasting and painting ofthe livestock pavilion for $ 154,000 was completed in FY 2002 . Construction of a second exhibition building to the south of the current exhibition building is planned in FY 2003 . iv North Coun� Regional Park Construction of the North County Regional Park began in FY 2002 . To date , two grants from the Florida Recreation Development Assistance Program have been received totaling $350,000 . The park will include two baseball/softball fields, a playground, walking/nature trail, and two pools . The activity pool will be 7,000 square feet and will include slides for the children. The competition pool will be an olympic stretch pool of 217 feet in length and 75 feet in width, holding 1 ,000, 000 gallons of water. Contracts in the amount of $5 , 590,735 were awarded for engineering services, construction of the pools, and other improvements such as landscap- ing, construction of a pool building and pool support facilities , and site improvements . A total of $4,647, 565 had been spent by the end of the fiscal year and the pools were substantially completed by the end of the fiscal year. Stormwater Improvements The Roseland Area Stormwater Improvement Project will provide flood control and stormwater quality treat- ment for a 211 -acre section of the Roseland community. The project includes construction of two stormwater detention ponds, installation of enlarged culverts, and construction of stormwater conveyance . Design is com- plete and the construction should start in the FY 2003 . A grant in the amount of $ 185 , 000 has been awarded by the St. Johns River Water Management District (SJRWMD) . The Vero Lake Estates Stormwater Project covers an area of 2 , 410 acres and 10 , 000 platted lots . The 1 subdivision does not have adequate stormwater treatment and drainage . The County plans to construct and convert borrow pits into retention facilities to hold rerouted stormwater for treatment prior to release into the ' Indian River Lagoon. Phase I of the project, which serves as the backbone of the system , was completed during the FY 2002 . Phase I included drainage canal enhancements, enlargement of one lake and a connection from that lake to a second lake which was deepened. This project has received funding from SJRWMD in the amount of $250,000 and the Environmental Protection Agency in the amount of $626, 808 . Phase H and Phase III, which are in the planning stage, will be stormwater management systems that tie into Phase I . The East Gifford Area Stormwater Project proposes to construct a 5 -acre stormwater detention pond and swales at the northwest corner of 41 It Street and the railroad tracks to provide flood protection, erosion control and promote health benefits by reducing the amount of stagnant surface water in the area. This project will reduce flooding in a low-income area where some of the homes have floor elevations below flood levels . The project has been designed and permits received. Construction of the improvements should start in the FY 2003 . Grant funding in the amount of $ 100,000 has been received from the SJRWMD . The East Indian River CountyStormwater Management Plan addresses g stormwater runoff from over 50, 000 ' acres of land, including the urban center of Vero Beach. This watershed discharges a tremendous amount of pollutants directly into a 15 mile-long area of the Indian River Lagoon. The plan is to reduce the pollution by developing an integrated stormwater treatment, storage, and recharge/reuse system . A master drainage plan is in development and the project will be subdivided into three different areas . As the plan is implemented, the project will probably be further subdivided. Grant funding in the amount of $ 120,000 has been committed by the SJRWMD . v Citrus Best Management Practices The County entered into a $ 50,000 cost share agreement with the St. Johns River Water Management District to implement citrus best management practices (BMPs) in the County to reduce polluted water discharges . These funds will be used to reimburse citrus property owners 75 % of the cost of BMPs implemented by the owners . The County was also able to obtain a $750,000 grant, with $250,000 paid to the County each year for the next 3 years, from the Florida Department ofAgriculture and Consumer Services for BMPs. The Indian River Soil and Water Conservation District, in cooperation with the United States Department ofAgriculture Natural Resource Conservation Service, is monitoring the BMPs implementation program . Environmental Lands During the FY2002 , the County purchased the Kroegel Parcel for $351 , 601 . This is one of three parcels of the homestead of Paul Kroegel , the first wildlife warden of the Pelican Island National Wildlife Refuge , the nation's first refuge. The County also issued the second and final series of the Environmentally Sensitive Land Acquisition Bonds in the amount of $ 11 million. Proceeds were used in the 2003 fiscal year to purchase the Lost Tree Islands, a group of environmentally significant islands in the Indian River Lagoon. Jungle Trail/Pelican Island Wildlife Re age The County started on improvements to three sites along Jungle Trail with two ofthe sites being in the Pelican Island Wildlife Refuge . A Florida Department of Transportation Grant in the amount of $ 687, 968 along with County gas tax funds and Environmentally Sensitive Bond funds will be used to pay the estimated $ 1 . 216 million improvements . On the Cairns site , 11 paved parking spaces , a restroom , drainage improvements , wetlands mitigation and a kiosk are under construction. On the Sherman site , 14 paved parking spaces, 36 grass parking spaces , drainage and landscaping are under construction . On the Kennedy site , 12 parking spaces, a restroom, a kiosk and informational signs are under construction. In addition to the County improve- ments , the United States Fish and Wildlife Service is constructing an observation tower in the Refuge . The Service is also performing wetlands restoration, constructing boardwalks and building nature trails in the Ref- uge. Beach Restoration The County has been developing a beach restoration plan since 1999 . The overall plan was completed in FY 2002 and the beach restoration project was divided into four phases . The first phase, which will restore 2 . 5 miles of beach from the Sebastian Inlet on the northern end of the County to just south of the Ambersand Beach access , was designed and permitted during the FY 2002 . The project started in February, 2003 and should be completed in early May, prior to the start of turtle nesting season. Sebastian Water Expansion On going expansion of the Sebastian Water System continued with the completion of Phase IID and IIE providing water service to 1 ,661 lots in the Sebastian area at a construction cost of $3 . 1 million. Work started on Phase IIID and IIIE and will provide water service to another 1 ,433 lots at an estimated cost of $ 3 . 2 million. With the completion of Phase 1D and HIE , the County will have installed approximately 109. 4 miles of water lines in Sebastian Highlands providing water service to approximately 8 ,000 lots . Kings Highway A contract was awarded in August 2001 to Smith and Company, Inc . for Kings Highway improvements . Construction began in the FY 2002 . The $ 13 . 5 million contract includes improving north/south traffic flow vi ' through the four laning of the highway from 121 Street to Oslo Road and replacement of the 5 east/west bridges over the canals that connect to Kings Highway. Coup Road 512 The county will be widening County Road 512 to four lanes between I-95 and Roseland Road . Design work has begun and the County is in the process of acquiring the needed right-of-way. The project is estimated to cost $ 5 ,665 ,000 and the County will receive a grant of $ 1 ,982, 750 from the Florida Department of Transpor- tation to help pay for the project. Old Fellsmere School Indian River County continued with the restoration of the historic Old Fellsmere School during the FY 2002 . Grant funding from the Florida Recreation DevelopmentAssistance Program in the amount of $ 150,000 and a grant from the Department of State, Division of Historical Resources in the amount of $250,000 will assist in the preservation and restoration improvements to the School . During the FY 2002, mold was removed from the school, a microbial disinfectant and cleanup was accomplished, asbestos removal was completed, the two old fire escapes were removed and the school was connected to the City of Fellsmere sewer system . Sebastian Canoe Launch Continuing the commitment to outdoor recreational facilities, the County completed construction of a canoe launch and other improvements on the Sebastian River. The completed facilities include a canoe launch and dock, parking lot, and picnic areas at a cost of $ 159, 000 . The Department of Environmental Protection ' provided grant funding in the amount of$ 105 ,000 to help pay for the improvements . Homeless Assistance Services The County received a number of grants from the U . S . Housing and Urban Development Department . A Family Options Transitional Housing Program Grant in the amount of $293 , 898 will be used for renovations, rehabilitations, and support services at the Indian River Homeless Services Council 's shelter. The local match required of $243 ,031 will partially be provided from the County 's SHIP funds . Other grants received by the County for homeless services were a Shelter Plus Care Grant in the amount of $453 , 900 for tenant-based rental assistance, a Youth Crisis Center Grant in the amount of $210, 191 to provide supportive housing assis- t tance for homeless families with children and a Homeless Management Information Systems Grant in the amount of$ 108 ,530 to create a point of service homeless management information system . State Housing Improvements Program The State Housing Improvements Program (SHIP) is a vital source of funds used by the County to provide financial assistance to County residents who want to become home owners or make improvements to their homes . Using SHIP funds, the County provided 70 loans totaling $ 1 ,068 ,000 for down payment/closing costs assistance, rehabilitation loan assistance and impact fee loan assistance . Of the 70 loans, 25 were provided to very low income households , 35 to low income households and 10 to moderate income households . Humane Society Progress continued to be made on the new Humane Society facility. . The County purchased the old facilities from the Humane Society at a cost of $380,000 and leased them back to the Society until their new facility on 771 Street is constructed . The County is paving 771 Street between 58th Avenue and 66th Avenue in order ' to have a paved street leading to the new facilities . vii Mass Transit Services The County has an agreement with the Council on Aging to provide mass transit services to County residents . During the FY 2002, a Federal Transportation Authority Grant in the amount $721 ,600, a Florida Department of Transportation Grant in the amount of $276, 500 and a matching grant of $330, 500 from the County were provided to the Council on Aging. The Council used these funds to operate their fleet of 20 vehicles to provide over 196,000 boardings to County residents for transport between the Gifford area, the central beach area, the central Vero area, Vero Beach Highlands , Sebastian and the State Road 60 corridor. Five days a week eight routes are serviced. Four routes are serviced on Saturdays . Landfill Improvements During the FY 2002 , the County made a number of improvements to the Landfill site . At a cost of $979,600, a new scale house and two new scales were constructed; a new entrance with landscaped roads and signage was completed; turn around truck lanes and deceleration lanes on 74th Avenue were built; expansion of the employee 's parking lot and improved drainage for the parking lot were completed ; additional stormwater capacity was provided; repair and resurfacing of the site 's paved roadways were completed ; and a loading dock for the recycled newsprint storage and transfer building was constructed. OtherProjects A $531 ,200 Florida Department of Transportation Grant was used to construct sidewalks along County road 512 in Fellsmere , Roseland Road and Old Winter Beach Road. The County purchased a new touch screen voting system at a cost of $2 million. An electronics upgrade at the jail was completed at a cost of $289,000 . Construction of a one-story 2, 500 square feet addition to the County Health Department building began in the FY 2002 . The new space will be used as a Dental Clinic , BUDGETPROCESS The Constitutional Officers submit, atvarious times, to the Board and to certain divisions within the Department ofRevenue, State ofFlorida, a proposed operating budget for the fiscal year commencing the following October 1 . The operating budget includes proposed expenditures and the means offinancing them as set forth in Chapter 129 ofthe 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 ofManagement and Budget for assistance, review and compilation. The County Administrator then reviews all County department, state agencies and non-profit organizations budgets , and makes his budget recommendation to the Board of County Commissioners on or before July 15 of each year. The tentative budget includes proposed appropriations and the means offinancing them. During September, public hearings are held pursuant to Section 200 .065 , Florida Statutes, in order forthe Board to receive public input on the tentative budget. At the end ofthe 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 . Computerized integrated budget reports are used for management control purposes throughout the year. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long viii 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 ofthe fiscal year. FINANCIAL INFORMATION Readers ofthis report are encouraged to read Management' s Discussion and Analysis (MD&A) . The MD&A provides basic financial information about the County and an overview of the County ' s activities . The government-wide financial statements , consisting of a statement of net assets and a statement of activities , provide a comprehensive financial picture ofthe County, split between governmental activities and business-type activities . These statements are prepared using the economic resources measurement focus and the accrual basis of accounting, where all assets, liabilities, revenues, and expenses ofthe County are reported. The fund financial statements provide information concerning the County' s funds and are prepared from the County ' s accounting records . The County ' s accounting records for general governmental operations are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting records for the County ' s proprietary funds are maintained on the accrual basis . The County operates on a fiscal year (FY) of October 1 to September 30 . Internal accounting controls for the County are designed to provide reasonable , but not absolute , assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets . The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgements by management. CashMana eg ment 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 . Surplus funds were invested in direct U . S . government obligations , U . S . agency obligations , the Florida Local Government Surplus Funds Trust Fund and the Florida Local Government Investment Trust Fund. During FY 2002, County investments had yields ranging from 2 . 0% to 7 . 515 % . The average yield ofthe portfolio as of September 30, 2002 was 4 . 64% . 1 1 ix OTHER INFORMATION Section 11 .45 , Florida Statutes, requires an annual audit of all County agencies . The County has directed that the annual audit be more extensive than that required by Florida Statutes by requiring that the annual audit be a single audit covering all the funds and account groups ofthe County. This requirement has been complied with, and the unqualified opinion ofthe auditors has been included in this report. The audit was also designed to meet the requirements of Government Auditing Standards, the Florida Single Audit Act, the federal Single Audit Act of 1984, the Single Audit Act Amendments of 1996, and revised OMB Circular A- 133 . A comprehensive annual financial report ofthis nature could not have been prepared on a timely basis without the dedicated efforts of all staff members concerned . 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 dedicated support in planning and conducting the financial operations of the County in a responsible and progressive manner. cftj Jeffrey K. Barton Clerk ofthe Circuit Court JKB/ms x INDIAN RIVER COUNTY FLORIDA ORGANIZATION CHART Residents of Indian River County Clerk of Circuit Board of Property Court Sheriff Supervisor of FP Y Tax Elections County Appraiser Collector Commissioners Finance Department County Attorney County Administrator B . C . C . Executive Aide Assistant i County Administrator Office of Management & Budget ManagemRisk ent Computer Services General Utility Emergency Community Services Public Works L Services Services Development Youth Leisure Services Human Human Guidance (Golf Course ) Services Recreation Resources Libraries Engineering Wastewater Emergency County Treatment Management Planning ' Purchasing Roads & Water Fire Environmental Buildings & Bridges Production Services Planning/ g Grounds Code Enforcement TrafficJ General & Advanced Life Engineering Support IRCLHAP / Mailroom / ( ALS or EMS) SHIP Switchboard __LParks Division Biosolids Program Operations Radiological Veterans Emergency Metropolitan Services Fleet Preparedness Planning Management Customer Organization Probation Service i Emergency Secondary Base Grant Road Wastewater Building Telecommunications Division Construction Collection Animal Shooting Control Range Water Distribution 91 I Soil & Water Coordinator Conservation Solid Waste Disposal District Housing Authority / Rental Assist . Extenswn X1 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The Government Finance Officers Association ofthe United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Indian River County, Florida, for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 200 1 . The Certificate ofAchievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports . In order to be awarded a Certificate ofAchievement, a government unit must publish an easily readable and efficiently organized CAFR, whose contents conform to program standards . Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements . A Certificate ofAchievement is valid for aperiod ofone year only. Indian River County has received a Certificate ofAchievement for the last nineteen fiscal years (fiscal years ended 1983 -2001 ) . We believe our current report continues to conform to the Certificate ofAchievement program requirements, and we are submitting it to the GFOA . Note : In addition to being awarded the Certificate ofAchievement, Indian River County has also been awarded the Distinguished Budget Presentation Award for the last eleven fiscal years (fiscal years ended 1992 - 2002). xii Certificate of 1 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, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting ' and financial reporting. ED Z� *04V ETA z CAM" President Executive Director ' xiii Y � Q, " � Q > x �Q� �lt� Harris , Cotherman He Associates ' Certified Public Accountants - Chartered 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Report of Independent Accountants The Honorable County Commissioners and ' Constitutional Officers Indian River County, Florida We have audited the accompanying basic financial statements of Indian River County, Florida (the "County"), as of and for the year ended September 30, 2002 , as listed in the table of ' contents . These basic financial statements are the responsibility of the County' s management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States . Those standards ' require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements . An audit also ' includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion . In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the County as of September 30, 2002 , and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated January 31 ,2003 on our consideration of the County' s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants . That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management ' s Discussion and Analysis on pages three through ten is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it . ' "Providing Vision and Direction to our Clients" Member AICPA Member AICVA Di 'sion For CPA Firms Member FICPA Private Compard Practice Section Hams, Cotherman & Associates C«tified Public nccmm=ts - Chartered The Honorable County Commissioners and Constitutional Officers Indian River County, Florida Page two Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information identified in the table of contents as combining and individual fund statements and schedules is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The information identified in the table of contents as the Introductory and Statistical Sections is presented for purposes of additional analysis and is not a required part of the basic financial statements of Indian River County, Florida. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. Q' rriS Vero Beach, Florida January 31 , 2003 2 Indian River County, Florida ' Management 's Discussion and Analysis For the Year Ended September 30 , 2002 Management 's discussion and analysis provides an objective and easily readable analysis of the County ' s financial activities for the October 1 , 2001 through September 30 , 2002 fiscal year. The analysis provides sum - ' maty financial information for the County and should be read in conjunction with the County's financial statements . OVERVIEW OF THE FINANCIAL STATEMENTS The County's basic financial statements comprise three components; l ) Government-wide financial statements, 2) Fund financial statements, and 3 ) Notes to the financial statements . The Government-wide financial statements present an overall picture of the County's financial position and results of operations . The Fund financial statements present financial information for the County's major funds . The Notes to the financial statements provide additional information concerning the County 's finances that are not disclosed in the Government-wide or Fund financial ' statements. The Government-wide financial statements are the Statement of Net Assets and the Statement ofActivities . These statements use accounting methods similar to those used by private-sector companies . Emphasis is placed on the net assets of governmental activities and business-type activities and the change in net assets . Governmental Activities are primarily supported by property taxes , sales taxes , federal and state grants, and state shared rev- enues . Business-type Activities are supported by charges to the users of those activities , such as water and sewer service charges . The Statement of Net Assets presents information on all assets and liabilities of the County, with the difference between assets and liabilities reported as net assets . Net assets are reported in three categories ; l ) invested in ' capital assets , net of related debt, 2) restricted, and 3 ) unrestricted. Assets , liabilities , and net assets are reported for all Governmental Activities separate from the assets , liabilities and net assets of Business-type Activities . In addition, assets , liabilities , and net assets are reported for the Indian River County Housing Authority, which is considered a component unit of the County. The Statement ofActivities presents information on all revenues and expenses of the County and the change in net assets . Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the County. To assist in understanding the County's operations , expenses have been reported as governmental activities or business-type activities . Governmental Activities fi- nanced by the County include public safety, transportation, culture and recreation, and general government ser- vices . Business-type Activities financed by user charges include water and sewer services , solid waste disposal , and a golf course . Again, expenses and revenues of the Indian River County Housing Authority are reported separately from the County's financial information. Fund financial statements present financial information for governmental funds, proprietary funds, and a fiduciary fund. These statements provide financial information for the major funds of the County. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial re- sources (revenues and expenditures), and current available resources . The proprietary funds financial statements provide information on all assets and liabilities of the funds , changes in the economic resources (revenues and expenses) , and total economic resources . The fiduciary fund statement provides information concerning assets held in trust by the County on behalf of others . 3 Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30 , 2002 Fund financial statements include a balance sheet and a statement of revenues , expenditures , and changes in fund balances for all governmental funds . A statement of revenues, expenditures , and changes in fund balances - budget and actual, is provided for the County's General Fund and major special revenue funds. For the proprietary funds, which includes internal service funds in addition to business-type activities, a statement of net assets ; a statement of revenues, expenses, and changes in fund net assets ; and a statement of cash flows are presented . A statement of fiduciary net assets is presented for the County 's agency fund. Fund financial statements provide more detailed information about the County's activities. Individual funds are established by the County to track revenues that are restricted to certain uses, comply with legal requirements, or account for the use of State and federal grants . The government-wide financial statements and the fund financial statements provide different pictures of the County. The government-wide financial statements provide an overall picture of the County's financial standing, split be- tween Governmental Activities and Business-type Activities . These statements are comparable to private-sector companies and give a good understanding of the County's overall financial health and how the County paid for the various activities, or functions, provided by the County. All assets of the County, including buildings, land, roads, bridges , and traffic signals, are reported in the statement of net assets. All liabilities, including principal outstanding on bonds, capital leases, and future employee benefits obligated but not paid by the County, are included . The statement of activities includes depreciation on all long lived assets of the County, but transactions between the different functions of the County have been eliminated in order to avoid "doubling up" the revenues and expenses . The fund financial statements provide a picture of the major funds of the County and a column for all non-major funds . In the case of governmental activities , outlays for long lived assets are reported as expenditures and long- term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government wide financial statements. Notes to the financial statements provide additional detail concerning the financial activities and financial balances of the County. Additional information about the accounting practices of the County, investments of the County, long-term debt, and pension plans are some of the items included in the notes to the financial statements . FINANCIAL HIGHLIGHTS Total assets of the County exceeded total liabilities by $ 538 . 3 million (net assets) . Unrestricted net assets for Governmental Activities were $ 17 . 6 million and unrestricted net assets for Business-type Activities were $45 . 1 million. Governmental Activities restricted net assets were $ 113 .2 million and Business-type Activities restricted net assets were $31 . 2 million. Total net assets increased by $36 . 7 million. Governmental Activities net assets increased by $22 . 7 million and Business-type Activities net assets increased by $ 14 . 0 million. Governmental Activities revenues increased 2.2% to $ 125 .4 million while governmental activities expenses increased 7% to $ 101 . 3 million. Business-type Activities revenues increased less than 1 % to $49 . 8 million while business-type expenses increased 2 . 6% to $35 . 9 million. 4 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30 , 2002 FINANCIALANALYSIS OF THE COUNTY The following schedule provides a summary of the assets, liabilities and net assets of the County. Total net assets for Governmental Activities increased from $333 . 3 million to $356 million. Total net assets for Business-type Activities increased from $ 168 . 3 million to $ 182 . 3 million. Net Assets (inmillions) Total Governmental Business-type Percent Activities Activities Total Change 2002 2001 2002 2002 2002 2001 Current assets $ 151 . 2 $ 139 . 9 $ 43 . 2 $ 38 . 5 $ 194 . 4 $ 178 . 4 9 . 0% Restricted assets 3 . 7 - 44 . 2 42 . 5 47 . 9 42 . 5 12 . 7% Non-current assets 0 . 3 0 . 2 1 . 2 1 . 3 1 . 5 1 . 5 0% Capital assets 256 . 4 234 . 6 185 . 2 178 . 8 441 . 6 413 . 4 6 . 8 % Total assets 411 . 6 374 . 7 273 . 8 261 . 1 685 . 4 635 . 8 7 . 8 % Current liabilities (payable from current assets) 13 . 9 11 . 2 1 . 5 Li 15 . 4 12 . 3 25 . 2 % Current liabilities (payable from restricted assets) 3 . 7 1 . 5 12 . 4 12 . 2 16 . 1 13 . 7 17 . 5 % ' Long-term liabilities 38 . 0 28 . 7 77 . 6 79 . 5 115 . 6 108 . 2 6 . 8 % Total liabilities 55 . 6 41 . 4 91 . 5 92 . 8 147 . 1 134 . 2 9 . 6% ' Net assets - invested in capital assets , net of related debt 225 . 2 214 . 6 106 . 0 97 . 7 331 . 2 312 . 3 6 . 1 % Net assets - restricted 113 . 2 100 . 8 31 . 2 26 . 8 144 . 4 127 . 6 13 . 2 % Net assets - unrestricted 17 . 6 17 . 9 45 . 1 43 . 8 62 . 7 61 . 7 1 . 6% Total net assets $ 356 . 0 $ 333 . 3 $ 182 . 3 $ 168 . 3 $ 538 . 3 $ 501 . 6 7 . 3 % The increase in Governmental Activities current assets, long-teen liabilities and restricted net assets is primarily due ' to the issuance of the Series 2001 General Obligation Bonds ($ 11 million) . The bond proceeds will be used to acquire environmentally sensitive lands . Governmental Activities capital assets increased due to ongoing construc- tion of the North County Regional Park, expansion of the Main and North County libraries , roadway improve- ments to Kings Highway and Jungle Trail , stormwater improvements and renovations to the Dodgertown Com- plex. ' The increase in Business-type Activities current assets ($4 . 7 million) is primarily due to capital contributions from developers and home builders for County Utilities . Net assets - invested in capital assets, increased due to acqui- sitions using capital contributions . Unspent capital contributions are the primary reason that restricted net assets increased from $26 . 8 million to $31 .2 million. 5 Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30 , 2002 The following schedule provides a summary of the changes in net assets . Governmental Activities revenues ex- ceeded expenses by $24 . 1 million. Business-type Activities revenues exceeded expenses by $ 13 . 9 million. Total revenues increased $2 . 8 million from the previous year. Increases in property values and millage rates generated an increase in property taxes . The strong local economy plus population growth of the County contributed to in- Changes in Net Assets (in millions) Total Governmental Business-type Percent Activities Activities Total Change 2002 2001 2002 2001 2002 2001 Program revenues Charges for services $ 16 . 2 $ 16 . 1 $ 34 . 7 $ 33 . 3 $ 50 . 9 $ 49 . 4 3 . 0% Operating grants/contributions 5 . 4 5 . 1 - 0 . 1 5 . 4 5 . 2 3 . 8 % Capital grants/contributions 4 . 8 3 . 7 11 . 3 9 . 9 16 . 1 13 . 6 18 .4% General revenues Property taxes 57 . 0 52 .4 - - 57 . 0 52A 8 . 8 % Sales taxes 17 . 0 15 . 6 - - 17 . 0 15 . 6 9 . 0% Franchise fees 5 . 8 6 . 3 - - 5 . 8 6 . 3 (7 . 9)% State shared revenues 12 . 9 12 . 2 - - 12 . 9 12 . 2 5 . 7% Other 6 . 3 11 . 3 3 . 8 6 . 4 10 . 1 17 . 7 (42 . 9)% Total revenues 125 . 4 122 . 7 49 . 8 49 . 7 175 .2 172 . 4 1 . 6% Expenses General government 17 . 9 13 . 8 - - 17 . 9 13 . 8 29 . 7% Public safety 45 . 2 42 . 9 - - 45 . 2 42 . 9 5 . 4% Physical environment 1 . 6 2 . 1 - - 1 . 6 2 . 1 (23 . 8)% Transportation 14 . 9 13 . 5 - - 14 . 9 13 . 5 10 .4 % Economic environment 0 . 3 1 . 4 - - 0 . 3 1 .4 (78 . 6)% Human services 6 . 0 4 . 7 - - 6 . 0 4 . 7 27 . 7% Culture/recreation 8 . 2 10 . 6 - - 8 . 2 10 . 6 (22 . 7)% Court related 5 . 5 5 . 2 - - 5 . 5 5 . 2 5 . 8 % Interest on long-term debt 1 . 7 0 . 6 - - 1 . 7 0 . 6 183 , 3 % Water and sewer - - 23 . 2 22 . 5 23 . 2 22 . 5 3 , 1 % Solid waste - - 8 . 0 8 . 2 8 . 0 8 . 2 (2 .4)% Golf course - - 2 . 8 2 . 9 2 . 8 2 . 9 (3 . 5 )% Other - - 1 . 9 1 . 4 1 . 9 1 . 4 35 . 7% Total expenses 101 . 3 94 . 8 35 . 9 35 . 0 137 . 2 129 . 8 5 . 7% Increase in net assets before transfers 24 . 1 27 . 9 13 . 9 14 . 7 38 . 0 42 . 6 ( 10 . 8 )% Special item - grant to State 1 . 3 - - - ( 1 . 3 ) - 100% Transfers (0 . 1 ) (0 . 1 ) 0 . 1 0 . 1 - _ 0% Increase in net assets 22 . 7 27 . 8 14 . 0 14 . 8 36 . 7 42 . 6 ( 13 . 9)% 6 Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30 , 2002 ' creases in charges for services, sales taxes and state shared revenues . The significant decrease in other revenues is a direct result of plummeting interest rates, which reduced interest earnings from $ 16 .9 million to $9 . 0 million. Total expenses increased $ 7 .4 million from the previous year. Increased spending for general government (financial & ' administrative costs, other general government costs), public safety (law enforcement, fire protection, ambulance services), transportation, and water and sewer services were primarily responsible for the increase in expenses . Property taxes provide 44% of the revenues for Governmental Activities . Most of the Governmental Activities resources are spent for Public Safety (45 %) , General Government ( 18 %), Transportation ( 15 %) , and Culture/ Recreation (8%) activities . As would be expected for Business-type Activities, charges for services provide 70% of the revenues . What is unusual about the County ' s Business-type Activities is the amount of revenue provided by capital grants and contributions, nearly 23 % of total revenue . The reason for this is the rapid growth of the County's Utilities System, adding approximately 3 ,000 new users every year. Major developers are required to provide water distribution and sewer collection systems for their projects and then must donate those systems to the County. Every new user is required to pay impact fees , which are used to expand and enhance the system . FUND FINANCIAL INFORMATION ' Governmental Funds General Fund ' The County's General Fund is the main operating fund of the County. It is used to account for all financial resources that are not restricted by State or Federal laws, County Ordinances or other externally imposed requirements . As of September 30 , 2002 , total assets were $21 , 778 ,206 and total liabilities were $ 3 , 533 ,481 . The ending fund balance of $ 18 ,244, 725 represents approximately 30% of the budgeted uses of funds for the next fiscal year. Total sources of funds , $69 , 686 , 953 , exceeded total uses of funds, $68 , 924 , 072, by $ 762 , 881 . During the fiscal year, the County amended the budget in the amount of$ 1 . 357 million for Federal and State Grants (primarily mass transit and stormwater grants) approved during the course of the year and in the amount of $327 thousand for charges to other governments for the housing of prisoners . Revenues from taxes exceeded the budget ' because State law requires that the County budget taxes at 95 % of the total levy and actual collections were 96 .2% . The unexpected strength of the local economy caused other locally levied taxes to exceed the budget. The local economic strength was also responsible for Intergovernmental revenues , such as State shared revenues like sales taxes and gas taxes , exceeding the budget. Charges for services exceeded the budget due to service fees collected by the Sheriff, Tax Collector and Property Appraiser. Interest earnings were less than budgeted because ' interest rates were significantly lower than anticipated. Actual expenditures for general government services were significantly less than the final approved budget due to vacancies in professional positions , staff turnover, and operating costs of County buildings being less than anticipated. Actual expenditures for public safety were less than the final approved budget primarily because of lower operating costs for law enforcement and staffturnover at the corrections facility. Actual expenditures for physical environment were less than budgeted because grant awards by the County were not made prior to year-end. Actual expenditures for culture/recreation were less than bud- geted because of delays in opening recreational facilities . 7 Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30, 2002 Other Governmental Funds The Secondary Roads Construction Fund accounts for the use of gas taxes restricted for transportation im - provements, such as roads, bridges , and right-of-way acquisitions . This year, the County budgeted for all trans- portation projects that had been approved and where funds had been designated for those projects . Since the projects frequently take multiple years to complete, actual expenditures will be significantly less than the budget. The Transportation Fund accounts for the annual maintenance of roads, bridges, right-of-way, drainage systems , etc . The County has the legal authority to levy ad valorem taxes for the Transportation Fund but has chosen not to do so . Instead, the County uses ad valorem taxes collected in the General Fund and then transferred to the Transportation Fund , The Emergency Services District Fund is used to account for the provision of fire and ambulance services throughout the County. The primary source of funds, 84%, is ad valorem taxes . The Optional Sales Tax Fund is used to account for the local option one cent sales tax , also referred to as the infrastructure surtax, and capital grants which use the sales tax as matching funds . County voters approved the one cent sales tax in March, 1989 , for a period of fifteen years . In November, 2002 , County voters approved an extension of the sales tax to December, 2019 . Monies in this fund are used for various capital projects such as stormwater improvements, road construction, library expansion and recreational facilities . Proprietary Funds Solid Waste Disposal District Fund This fund is used to account for all operations of the County's landfill, including five off-site collection centers . The District operates like a business , where the rates established by the County generate sufficient funds to pay the costs of current operations and provide funding for long-term asset acquisitions . As required by the State Depart- ment ofEnvironmental Protection, the County has set aside $6. 8 million for the long term care of the landfill and for closure ofthe landfill . Total assets as of September 30 were $35 . 7 million, total liabilities were $7 . 7 million and net assets were $28 . 0 million. Operating income was $ 1 , 839, 341 , an increase of $421 ,733 over last year 's operating income. Golf Course Fund This fund is used to account for the operations of the County golf course . Total assets as of September 30 were $8 .2 million, total liabilities were $ 7 . 8 million and net assets were $0. 4 million. Operating income was $ 510,747 , a decrease of $ 59, 142 from last year 's operating income . During the year, the County paid $360, 000 to reduce the amount of outstanding bonds to $7 . 11 million. Net revenues available for debt service were 1 . 01 times the debt service requirements of $735 , 148 . 8 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2002 County Utilities Fund This fund is used to account for the operations of the County 's water and sewer systems , and sludge disposal . As of September 30, the County had approximately 41 , 000 water customers and 30, 000 sewer customers compared ' to 39,000 water customers and 29,000 sewer customers last year. The utilities system has experienced significant growth over the last decade and will continue to have significant growth over the next decade , anticipating an additional 3 ,000 new users every year. Total assets as of September 30 were $225 . 3 million, total liabilities were $ 76 . 3 million and net assets were $ 149 . 0 million. Operating income was $928 , 836 , an increase of $ 71 , 846 from last year 's operating income . During the year, the County paid $ 1 , 690,000 to reduce the amount of outstanding ' bonds to $ 74 . 525 million. Net revenues available for debt service were 2 . 79 times the debt service requirements of $ 5 , 792 , 839 . ' CAPITAL ASSETS ACTIVITY Governmental Activities capital assets activity during the fiscal year: ' A decrease in land is the result of transferring an environmentally significant land to the State . The County had entered into a cost sharing agreement with the State that required title to the land to be held by the State . ' A decrease in infrastructure assets is the result of depreciation expense for the current period and no major infrastructure projects being completed during the year. An increase in buildings and improvements was primarily due to the completion of the Gifford Aquatic Center at a cost of $ 1 . 8 million. An increase in equipment was primarily due to the acquisition of a new touch screen voting system for $2 ' million. Business-type Activities capital assets activity during the fiscal year: An increase in land due to the acquisition of 20 acres at a cost of$2 . 8 million for expansion of the Landfill . Completion of Phases 2 D & E in Sebastian, at a cost of $ 3 million, will provide water service to 1 , 661 lots . This addition offsets buildings and improvements depreciation expense for the current period. Capital Assets (net of depreciation, in millions) Total Governmental Business -type Percent Activities Activities Total Change 2002 2001 2002 2001 2002 2001 Land $ 52 . 1 $ 53 . 7 $ 15 . 9 $ 13 . 0 $ 68 . 0 $ 66 . 7 1 . 9% Right of way 10 . 5 9 . 7 - - 10 . 5 9 . 7 8 . 2% Infrastructure 101 . 8 103 . 7 - - 101 . 8 103 . 7 ( 1 . 8 )% Buildings and improvements 41 . 4 40 . 0 150 . 2 150 . 0 191 . 6 190 . 0 0 . 8 % ' Equipment 23 . 5 21 . 4 3 . 7 3 . 6 27 . 2 25 . 0 8 . 8 % Construction in progress 27 . 1 6 . 1 15 . 4 12 . 2 42 . 5 18 . 3 132 . 2 % ' Total $ 256 . 4 $ 234 . 6 $ 185 . 2 $ 178 . 8 $ 441 . 6 $ 413 . 4 6 . 8 % 9 Indian River County, Florida Management ' s Discussion and Analysis For the Year Ended September 30 , 2002 DEBT MANAGEMENT Governmen tal Activities Debt On November 29, 2001 , the County issued $ 11 , 000,000 of General Obligation Bonds , Series 2001 . This was the second series of bonds authorized by voters to acquire environmentally sensitive lands . The first series in the amount of $ 15 , 000 , 000 was issued in 1995 . The general obligation bonds are backed by ad valorem taxes . During the year, principal payments of $ 1 ,405 ,000 were made leaving a balance of $ 19 , 8 10 ,000 . On August 15 , 2001 , the County issued $ 16, 810,000 of revenue backed bonds to acquire the Dodger 's spring training facilities and make improvements to those facilities . Principal payments of $360,000 were made during the year and as of September 30, $ 16,450,000 is still outstanding. Since all County bond issues are insured byAAA rated insurance agencies, the bonds are rated AAA, which is the highest rating given by the rating agencies . Business-type Activities Debt The County issued bonds in 1993 to legally defease the 1985 and 1991 Recreational Revenue Bonds, which were issued to provide funding for the County golf course , Sandridge . Principal payments of $ 360,000 were made during the year and as of September 30, $7 , 110, 000 is still outstanding . In 1993 and in 1996, the County issued bonds to refund outstanding water and sewer bonds and to provide funds for expansion of the water and sewer systems . Principal payments of $ 1 ,690 ,000 were made during the year and as of September 30 , $74 , 525 ,000 is still outstanding . All three bond issues are insured byAAA rated insurance agencies and, therefore, are rated AAA. FUTURE FINANCIAL CONDITION Governmental Activities For the 2002/2003 fiscal year, an increase in taxable values of 12 .3 % has provided the opportunity to implement anew County Recreation Department without a significant increase in tax rates . The overall millage rate of 6. 5865 is 3 % less than the millage rate for the 2001 /2002 fiscal year. Additional debt service requirements for the general obligation bonds necessitated an increase of 46% in the ad valorem tax rate to 0.2839 mills . On February 5 , 2003 , the County purchased the Lost Tree Islands for $ 15 , 105 ,000 . The County used $ 12 ,375 , 000 of General Obliga- tion Bonds, Series 2001 , funds and an interf ind loan of $2 ,730 ,000 . Business-type Activities For the 2002/2003 fiscal year, an increase in golf course fees was adopted to ensure financial stability and meet cash flow needs . Other business-type activities fees were kept at the same rates . Revenues generated by the solid waste system, utilities system and othe business-type activities will be sufficient to cover their operating costs and capital needs. ADDITIONAL FINANCIAL INFORMATION This report was prepared by the Finance Department under the supervision of the Clerk of the Circuit Court . Questions concerning this report or requests for additional information should be addressed to the Finance De- partment, 1840 25th Street, Vero Beach, Fl , 32960, or by calling 772 - 567- 8000 , extension 1201 . Separate financial statements for the Indian River County Housing Authority are available in the administrative office located at 1028 20th Place , Vero Beach, FL , 32960 . 10 of Unit ID and Name : 100031 Indian River Was Annual Financial Report filed electronically? State Use Onl [I Yes ❑Q No Initials Date Financial Officer Name : Clerk iC Barton If yes Indicate method: AFR Tracked Financial Officer Title : Clerk of circuit Court FTP si Diskette Audit Tracked Mailing Address : 1840 25th Street Date completed Audit Report was received : 3 / 4 / 2003 Rev/Exp City Address : Vero Beach Complete State: FI Has the local governmental entity reported herein expended any funds received from the State of Florida after July 1 , 2002, for newspaper, magazine, direct, mail, radio, television, or outdoor advertisingsupport of or in 'in pp opposition to, any candidate or issue appearing on the ballot? _Ye*L.No(Rtfertnce Section 78, Chapter 2002-402, Laws of Florida. See memorandum dated August 5, 2002 Zip Code : 132960-3394 included in this reporting package.) Email Address : Financial Condition Information Amount of outstanding long -term debt: $ 117 , 895 , 000 . 00 Phone Number: (561 ) 567-8000 (As of the end of fiscal year ended 09/30/2002. The term "long-term debt" means any agreement or series of agreements to pay Phone Extension : zos money, which, at inception, contemplate terms of payment exceeding 1 year in duration) Contact Person's Name: 115dwin M. Fry, Jr. Have you experienced a financial emergency in fiscal year ended 2002? A Yes No If yes, have you complied with Section 218.503(2), Florida Statutes? O Yes ❑� No Contact's Phone Number: (561 ) 567-sono (ie: Have you reported a financial emergency if there has been one ?) Contact's Extension : zos Use separate page for response if needed . FAX Number. (561 ) 770-5331 Mail Completed Forms and Required Attachments/Eadosures to: State of Florida Department of Financial Services CertificationBureau of Accounting Annual Local Government Financial Report We th igned certify, to the hest of our knowled that the Information reported Fiscal Year 2001 -2002 200 E. Gaines Street her or submitted el is accurate and pi e. Tallahassee, Florida 32399-0354 N me Counties and and Municipalities Only Kenneth R . Macht Enter the utility service tax rates for the following : Title Electricity Chairman BCC Approved : 03 - 11 - 03 Telecommunications X Signature of Chairman of Goverment Board (required) Water Jeffrey K . Barton Natural Gas Name Cable Vision Clerk Of The Circuit Co rt T• Fuel Oil Propane X Sign f Chief Financial Officer (required) Other FORM DBF-AA-401 (Rev . 10/29/98) ' BASIC FINANCIAL STATEMENTS 1 1 11 F Indian River County, Florida Statement of Net Assets September 30, 2002 Primary Government Governmental Business-type Component Activities Activities Total Unit ASSETS Current assets : Cash and cash equivalents $ 143 , 417 , 649 $ 39 , 906 , 526 $ 183 , 324 , 175 $ 1325957 Accounts receivable - net 725 , 743 2 , 314 , 425 3 , 0403168 9 , 150 Internal balances 5515649 ( 551 , 649 ) Due from other governments 51518 , 632 99000 5 , 527 , 632 125500 Interest receivable 8053485 839 , 459 1 , 644 , 944 ' Inventories 140 , 128 674 , 086 814 , 214 Total current assets 151 , 1591286 43 , 191 , 847 194 , 351 , 133 1545607 Restricted assets : Restricted cash and cash equivalents 33709 , 073 37 , 7762333 415485 , 406 900 , 218 Investments - 539 , 576 539 , 576 Impact fees receivable 1 , 7069650 1 , 706 , 650 Special assessments receivable 412099314 4 , 209 , 314 Total restricted assets 3 , 709 , 073 44 , 231 , 873 47 , 940 , 946 900 , 218 Non -current assets : ' Special assessments receivable 133 , 213 133 , 213 Liens receivable 113 , 420 1131420 Unamortized bond costs - 8985953 898 , 953 Intangible assets 149 , 617 149 , 617 ' Deposits 142 , 623 125 1429748 894 Capital assets - net 256 ,439 , 898 185 , 2025596 441 , 642 , 494 6 , 435 , 553 Total non-current assets 256 , 715 , 734 186 , 364 , 711 443 . 080 , 445 6 , 436 , 447 Total assets 411 , 584 , 093 273 , 788 , 431 6853372 , 524 7 , 4911272 ' LIABILITIES Current liabilities (payable from current assets) : Accounts payable 85233 , 205 173803665 9 , 6135870 93847 Claims payable 4 , 26100 4 , 261 , 000 ' Due to other governments 2775916 20 , 071 297 , 987 Other deposits held in escrow 171 , 789 1711789 Deferred revenues 311 , 518 239034 3345552 Accrued compensated absences 3353000 1005000 435 , 000 Capital leases 336 , 557 336 , 557 Total current liabilities (payable from current assets 13 , 9267985 195232770 15 , 450 , 755 91847 ' Current liabilities (payable from restricted assets) : Accounts payable 6539702 653 , 702 Retainage payable 1 ,4455693 435 , 149 1 , 8805842 Accrued interest payable 238 , 380 365 , 048 603 , 428 3 , 140 Closure and maintenance costs payable 6 , 7759168 65775 , 168 Customer deposits 210183930 29018 , 930 429456 Bonds payable 250253000 2 , 140 , 000 4 , 165 , 000 182 , 000 Total current liabilities ( payable from restricted assets) 35709 , 073 1213879997 16 , 097 , 070 227 , 596 Non-current liabilities : Accrued compensated absences 3 , 303 , 116 497 , 486 3 , 800 , 602 Capital leases 417 , 452 4179452 Bonds payable 34 , 23500 77 , 057 , 955 11112925955 3 , 538 , 400 Total long-term liabilities 37 , 9555568 77 , 555 , 441 115 , 511 , 009 3 , 538 , 400 Total liabilities 55 , 5915626 91 , 467 , 208 147 , 058 , 834 3 , 775 , 843 NET ASSETS Invested in capital assets, net of related debt 225 , 1795898 1065004 , 641 331 , 184 , 539 2 , 715 , 152 Restricted for : Capital projects 341370 , 806 31 , 000 , 818 65 , 371 , 624 - Debt service 19329 , 586 178 , 333 11507 , 919 44 , 761 ' Road projects 48 , 348 , 033 48 , 348 , 033 Beach restoration 55650 , 477 59650 , 477 Other purposes 23 , 553 , 678 23 , 5539678 8135082 Unrestricted 17 , 5599989 45 , 137 , 431 629697 , 420 1429434 ' Total net assets $ 355 , 992 , 467 $ 182 , 321 , 223 $ 538 , 313 , 690 $ 3 , 715 , 429 13 Indian River County, Florida Statement of Activities For the Year Ended September 30 , 2002 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government : Governmental activities : General government $ 179942, 122 $ 5 ,349,797 $ 380,689 $ 4039146 Public safety 4551869455 4, 120,093 818,431 1165098 Physical environment 1 ,648,446 64,314 35, 167 9145635 Transportation 14,8783771 434769914 1 , 196, 700 1 ,397,944 Economic environment 357,911 - 1 , 197, 571 777,815 Human services 53975 ,775 186,290 11518,604 301 , 136 Culture/Recreation 8, 157,505 473 ,043 2781207 9075852 Court related 5 ,4721095 1 ,515,840 Interest and fiscal charges 157109405 Total governmental activities 1019329,485 1691863291 5425 ,369 4,8189626 Business-type activities : Water and sewer 2312401123 19,962,496 - 11 ,222, 114 Solid waste 85043 , 106 99897,222 Golf course 21777,519 2,8979502 Others 11882,038 290099737 - 335925 Total business-type activities 35 ,942,786 34,766,957 - 113256,039 Total primary government $ 137,2721271 $ 50,953 ,248 $ 554253369 $ 16,0749665 Component Unit : Housing authority $ 7915697 $ 712,236 $ 144, 179 $ - General Revenues : Taxes : Property taxes, levied for general purposes Property taxes, levied for debt service Sales and use taxes Franchise fees State shared revenues Interest earnings Miscellaneous Total general revenues Special item - Grant to State Transfers Total general revenues, transfers and special item Change in net assets Net assets - beginning Net assets - ending The accompanying notes are an integral part of the financial statements . 14 Net (Expense) Revenue and Changes in Net Assets ' Primary Government Governmental Business-type Component Activities Activities Total Unit $ ( 11 , 808,490) $ - $ ( 11 ,808 ,490) $ - ' (40, 1319833 ) = (405131 , 833 ) = (6349330) (634,330) (79807,213 ) - (798079213 ) - ' 19617,475 - 196175475 = (3 ,9699745 ) (3 ,969,745) (654985403 ) - (6,498 ,403 ) - ' (3 ,956,255 ) = (3 ,956,255 ) = ( 1 ,710,405 ) ( 157109405) (74, 8999199) - (7458995199) - 75944,487 7,9449487 - = 15854, 116 198549116 = 1191983 119,983 1615624 161 ,624 - ' - 1050805210 10,080,210 - (7458999199) 10,0805210 (645818,989) - 64,718 555407, 180 - 551407, 180 - ' 19581 ,362 = 195815362 - 169983 ,678 16,9835678 - 5 ,7979407 - 59797,407 - ' 1299149452 - 129914,452 59189,432 397905253 85979,685 219255 1 , 103 ,457 15, 100 1 , 118, 557 - 985976,968 3 ,8055353 1029782,321 219255 ( 1 ,245 ,253 ) ( 1 ,2455253 ) ( 158,048) 1585048 - ' 97,5731667 33963 ,401 1019537,068 21 ,255 22,6749468 14,043 ,611 369718,079 859973 333 ,317,999 168,2779612 501 ,5959611 3 ,629,456 $ 355 ,992,467 $ 182,321 ,223 $ 538,313 ,690 $ 39715 ,429 ' 15 Indian River County, Florida Balance Sheet Governmental Funds September 30, 2002 Secondary Emergency Roads Services General Construction Transportation District ASSETS Cash and cash equivalents $ 19061411 $ 261258 , 362 $ 219141718 $ 5 , 562, 501 Accounts receivable - net 6129619 - 11192 985 Special assessments receivable - - 133 ,213 Due from other funds 1259000 - 177,292 Due from other governments 1 , 1352120 2749077 202 ,497 169204 Inventories 679746 Deposits 141 , 310 250 661 Advance to other funds - 625, 000 Total assets $ 21 , 7785206 $ 27, 157, 689 $ 3 ,252 ,281 $ 53756, 982 LIABILITIES AND FUND BALANCES Liabilities : Accounts payable $ 29779, 219 $ 112659731 $ 167, 730 $ 4069947 Retainage payable 93582 1359930 Due to other funds 2709911 Due to other government 216,337 Deferred revenues 85 ,643 - 133 ,213 167765 Other deposits held in . escrow 171 , 789 Total liabilities 39533 ,481 19401 ,661 300, 943 423 , 712 Fund balances : Reserved for: Debt service Capital projects Other purposes - 6259000 Unreserved, reported in : General fund 181244,725 Special revenue funds - 252131 ,028 25951 ,338 51333 ,270 Total fund balances 1832447725 25 ,756,028 2,951 , 338 513339270 Total liabilities and fund balances $ 211778 ,206 $ 27, 1579689 $ 39252,281 $ 5 , 756,982 The accompanying notes are an integral part of the financial statements . 16 1 1 Optional Other Total ' Sales Governmental Governmental Tax Funds Funds $ 2899565287 $ 56,453 , 527 $ 139, 8419806 529413 667,209 133 ,213 2309000 209268 5529560 760, 191 6519159 3 ,0399248 67,746 142,221 625 , 000 $ 291946,478 $ 579177,367 $ 1459069,003 $ 19768, 100 $ 11577, 559 $ 719659286 9859270 314, 911 1 ,4451693 355 ,000 625 ,911 619579 277, 916 163 , 870 459240 444, 731 171 , 789 299173240 253549289 10,931 ,326 ' - 1 , 5409187 1 , 540, 187 2790295238 10, 818 , 634 37, 8479872 625 ,000 18,244, 725 429464,257 75, 8791893 ' 279029,238 542823 ,078 13491373677 $ 2939469478 $ 579177367 Amounts reported for governmental activities in the statement of net assets are different because : Capital assets used in governmental activities are not financial resources, therefore, are not reported in the funds. 2561414, 104 Long-term liabilities, including bonds payable ($36 , 260, 000), capital ' leases ($754 , 009) and accrued compensated absences ($ 3 , 578 , 878) are not due and payable in the current period and, therefore, are not reported in the funds . (40, 592, 887) Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported in the fund. (238 ,380 ) Special assessment receivables are not financial resources in the current period and, therefore, are reported as deferred revenues. 133 ,213 Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet services, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets . 29917, 158 Grant and gas tax revenues are not recognized in current period because the resources are not available, therefore, are not reported in the fund. 29416, 097 Interest revenues are not recognized in current period because the resources are not available , therefore, are not reported in the fund . 8053485 Net assets of governmental activities $ 355 , 992 ,467 ' 17 Indian River County , Florida Statement of Revenues , Expenditures , and Changes in Fund Balances Governmental Funds For the Year Ended September 30 , 2002 Secondary Emergency Roads Services General Construction Transportation District REVENUES Taxes $ 453694,948 $ 399675345 $ - $ 15 ,9185637 Licenses and permits 484,320 - 315333 _ Intergovernmental 11 ,508 ,015 - 21232,027 475564 Charges for services 851249795 - 103 ,059 25382,357 Fines and forfeitures 1 ,057,947 Special assessments - - 16 014 - Interest 13091 ,306 845 ,456 1115534 3165806 Miscellaneous 747,736 109,484 296,404 2079839 Total revenues 68,7099067 4,922,285 297907371 18, 8735203 EXPENDITURES Current: General government 15 ,7891593 - 582,731 - Public safety 267982, 806 - - 17,639,796 Physical environment 3689063 Transportation 1 ,495 ,227 2,9515520 9,236, 143 - Economic environment 3479096 Human services 394639574 Culture/Recreation 71303 ,009 Court related 534703996 Debt service : Principal 1999982 - - 2645219 Interest and fiscal charges 7,741 - - 35 ,980 Capital projects Total expenditures 611428,087 2,951 ,520 9, 818, 874 1799395995 Excess of revenues over (under) expenditures 75280,980 15970,765 (75028 , 503 ) 9335208 OTHER FINANCING SOURCES (USES) Transfers in 702,886 - 7, 128,440 - Transfers out (7,351 , 806) - - (4395902) Transfer to component unit ( 1445179) Lease purchase proceeds 2759000 - - Debt proceeds Total other financing sources (uses) (615189099) - 791289440 (4399902) Net change in fund balances 762,881 19970,765 99,937 4935306 Fund balances at beginning of year 17,4813844 23 ,7857263 2,8511401 43839,964 Fund balances at end of year $ 1892445725 $ 255756,028 $ 2,951 ,338 $ 51333 ,270 The accompanying notes are an integral part of the financial statements . 18 L Optional Other Total Sales Governmental Governmental Tax Funds Funds ' $ 1193993491 $ 3 ,507,922 $ 8034889343 515 ,653 431 ,250 6,5845126 209802,982 7585188 115368,399 363 ,595 114215542 - 49214,505 452309519 19066,560 195755488 550075150 141822 9861495 2,362,780 12,912, 123 1799909319 12691979368 r - 6075370 169979,694 - 729,721 45 ,352,323 = 1 , 105 ,686 194735749 3 ,0039484 1656869374 347,096 = 292933005 51756,579 1 ,8149891 9, 117,900 3319802 55802,798 1 - 197655000 2,229,201 19577,457 136219178 1893999175 2,3689208 20,767,383 18,3999175 1515969624 12631347275 ' (59487,052) 29393 ,695 639093 ' 17494, 869 9,326, 195 ( 1 ,400,000) (2925535 ) (99484,243 ) ( 144, 179) - - 275 ,000 ' - 11 ,000,000 11 ,000,000 ( 11400,000) 12,202,334 10,972,773 (6, 8879052) 14,596,029 11 ,0359866 33 ,9169290 4092275049 1239101 ,811 ' $ 2710299238 $ 549823 ,078 $ 134, 137,677 Continued 19 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 , 2002 Net change in fund balances - total governmental funds $ 1110351866 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 302709897 Less current year depreciation (7,6555599) 22,615298 Governmental funds only report the disposal of assets to the extent proceeds are received from the sale . In the statement of activities, a gain or loss is reported for each disposal . Land grant to State ( 12459253) Gain on sale of fixed assets 78,620 Proceeds on sale of fixed assets (829,585) ( 11996218) Contributions reported in the statement of activities do not provide current financial resources , therefore, are not reported as revenues in governmental funds . 12207001 Debt and capital lease proceeds provide current financial resources to governmental funds, but debt and capital leases increase long-term liabilities in the statement of net assets . Bond proceeds ( 11 ,0005000) Capital lease proceeds (275,000) ( 11275,000) Repayments of bond principal and capital lease principal are expenditures in the govern- mental funds, but the repayment reduces long-term liabilities in the statement of net assets . Bond principal payment 1 ,7655000 Capital lease principal payment 464,201 2229201 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 . Change in compensated absences (258,207) Accrued bond interest expense (86,567) Accrued capital lease interest expense (25660) (3475434) Some revenues reported in the governmental funds have been recognized as revenues in prior fiscal year in the statement of activities. ( 16274) Internal service funds are used by management to charge the costs of insurance and fleet services to individual funds . The net costs of the internal service funds are reported with governmental activities . (6665400) 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 prior year accrual and current year accrual . (915610) 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 prior year accrual and current year accrual . (32,962) Change in net assets of governmental activities $ 223674,468 The accompanying notes are an integral part of the financial statements . 20 Indian River County , Florida Statement of Revenues , Expenditures , and rChanges in Fund Balances = Budget and Actual ■ General Fund For the Year Ended September 30, 2002 Variance with Budgeted Amounts Final Budget 1Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 44,2489631 $ 44,2489631 $ 45 ,6949948 $ 19446,317 Licenses and permits 424,270 4249270 484,320 60,050 Intergovernmental 9,628,943 119046,230 119508,015 461 ,785 Charges for services 6,6659712 7,3709857 89124,795 7535938 Fines and forfeitures 9215579 9219579 1 ,057,947 1369368 Interest 1 ,630,200 1 ,6355417 1 ,0919306 (544, 111 ) ' Miscellaneous 362,276 4799440 747,736 2689296 Total revenues 633881 ,611 66, 126,424 68,709,067 2 ,5829643 EXPENDITURES Current : General government 15 , 1531262 16,3979216 155789,593 6079623 Public safety 279005 , 115 2796395961 26,9829806 6571155 Physical environment 3735622 6989622 368,063 3309559 Transportation 496, 881 1 ,514,992 1 ,4959227 19,765 Economic environment 374,276 3769322 3479096 29,226 Human services 3 ,472,536 396649101 3 ,4639574 200,527 Culture/Recreation 7,3461436 7,6079233 71303 ,009 304,224 Court related 5 ,612, 570 596495057 594709996 1789061 Debt service : Principal 200,029 200,029 199,982 47 ' Interest and fiscal charges 7,741 7,741 72741 - Total expenditures 60,042,468 639755 ,274 61 ,4289087 293275187 Excess of revenues over (under) expenditures 358399143 2,371 , 150 7,280,980 4,9099830 OTHER FINANCING SOURCES (USES) Transfers in 1 ,0839677 7305437 7029886 (27, 551 ) Transfers out (7,341 ,688) (755573707) (7,3519806) 205 ,901 Transfers to component unit ( 162,005 ) ( 162,005 ) ( 144, 179) 175826 Lease purchase proceeds - 275 ,000 275 ,000 - Total other financing sources (uses) (63420,016) (65714 ,275 ) (655185099) 196, 176 Net change in fund balances (255809873 ) (4,3439125 ) 7629881 591063006 Fund balances at beginning of year 29580,873 4,343 , 125 17,4819844 13 , 138 719 ' Fund balances at end of year $ - $ - $ 185244,725 $ 189244,725 The accompanying notes are an integral part of the financial statements . 21 Indian River County, Florida Statement of Revenues, Expenditures , and Changes in Fund Balances - Budget and Actual Secondary Roads Construction For the Year Ended September 30 , 2002 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 237319982 $ 2,731 ,982 $ 39967,345 $ 1 ,235 ,363 Interest 614,795 614, 795 845 ,456 23061 Miscellaneous - - 109,484 109,484 Total revenues 3 346 346,777 3 , , 777 41922,285 1 ,575 508 EXPENDITURES Current : Transportation 3 ,346,777 221351 ,290 259512520 19,399, 770 Total expenditures 31346,777 225351 ,290 299519520 195399, 770 Net change in fund balances - ( 195004, 513 ) 1 ,970,765 20,9759278 Fund balances at beginning of year - 19,004,513 23 ,785,263. . 4, 780, 750 Fund balances at end of year $ $ 25 ,7569028 $_ 2557561028 The accompanying notes are an integral part of the financial statements . 22 Indian River County, Florida Statement of Revenues , Expenditures, and Changes in Fund Balances - Budget and Actual Transportation For the Year Ended September 30 , 2002 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Licenses and permits $ 10,000 $ 109000 $ 31 ,333 $ 219333 Intergovernmental 25123 ,512 2, 1235512 2,2329027 108 ,515 Charges for services 79,000 79,000 103 ,059 24,059 Special assessments 1505000 1509000 16,014 ( 1335986) Interest 1779861 177,861 111 ,534 (669327) Miscellaneous 405 ,000 417,516 2965404 ( 1213112) Total revenues 2,945 ,373 2,9579889 29790,371 ( 1679518) EXPENDITURES Current : General government 748,682 7569182 582,731 173 ,451 Transportation 917579614 10,219,763 952369143 9835620 Total expenditures 1095063296 10,9759945 9, 818, 874 1 , 157,071 Excess of revenues over (under) expenditures (7, 560,923 ) (8,0181056) (750285503 ) 9891553 ' OTHER FINANCING SOURCES (USES) Transfers in 79328,440 75328,440 79128,440 (200,000) Transfers out (5 ,000) (59000) - 5 ,000 Total other financing sources ( uses) 793235440 753235440 751289440 ( 195 ,000) Net change in fund balances (2375483 ) (6943616) 995937 794,553 Fund balances at beginning of year 237,483 694,616 298515401 23156, 785 Fund balances at end of year $ - $ - $ 2,951 ,338 $ 259515338 The accompanying notes are an integral part of the financial statements . 23 Indian River County, Florida Statement of Revenues, Expenditures , and Changes in Fund Balances - Budget and Actual Emergency Services District For the Year Ended September 30, 2002 Variance with Budgeted Amounts Final Budget Actual Positive _ Original Final Amounts REVENUES (Negative) Taxes $ 15 , 730,412 $ 15 ,730,412 $ 155918,637 $ 188225 Intergovernmental 14,000 57, 569 479564 ( 107005) Charges for services 1 ,505, 136 13885, 136 293827357 497,221 Interest 3253000 325 ,000 316, 806 (8, 194) Miscellaneous 205,267 2079075 2071839 764 Total revenues 171779, 815 189205, 192 187873 ,203 6%011 EXPENDITURES Current: Public safety 16,612,202 181054,902 17,639,796 415, 106 Debt service : Principal 2645220 264,220 264,219 1 Interest and fiscal charges 35,980 35 ,980 35,980 . .. Total expenditures 16,912,402 182355 , 102 172939,995 415007 Excess of revenues over (under) expenditures 8675413 ( 14%910) 933 ,208 1 ,083 , 118 OTHER FINANCING SOURCES (USES) Transfers out (423 , 191 ) (550 191 ) (439,902) 110,289 Total other financing sources (uses) (423 191 ) (550, 191 ) (4399902) 110 289 Net change in fund balances 444222 (700, 101 ) 493 ,306 151939407 Fund balances at beginning of year (444,222) 7009101 4,8399964 451399863 Fund balances at end of year $ - $ - $ 513335270 $ 59333 ,270 The accompanying notes are an integral part of the financial statements . 24 Indian River County, Florida Statement of Net Assets Proprietary Funds September 30, 2002 Business-type Activities- Enterprise Funds Governmental Solid Waste Other Activities Disposal Golf County Enterprise Internal District Course Utilities Funds Total Service Funds ASSETS Current assets : Cash and cash equivalents $ 892355606S 60 , 489 $ 28 , 022 , 396 $ 37588 , 035 $ 3999065526 $ 79284 , 916 Accounts receivable - net 2135241 1 , 137 2 , 100 , 047 2 , 314 , 425 58 , 534 ' Due from other funds 735351 73 , 351 Due from other governments 91000 99000 63 , 287 Interest receivable 839 , 459 839 , 459 Inventories - 53 , 236 594 , 871 25 , 979 6745086 72 , 382 Deposits - 125 125 402 Total current assets 8 , 5221198 123 , 862 31 , 556 , 773 3 , 614 , 139 43 , 8165972 75479 , 521 Restricted assets : Cash and cash equivalents 10 , 1821480 44 , 031 27 , 442 , 382 107 , 440 37 , 776 , 333 Investments 5399576 5395576 Impact fees receivable _ - 1 , 706 , 650 1 , 706 , 650 Special assessments receivable 4 , 209 , 314 4 , 2099314 Total restricted assets 10 , 182 , 480 583 , 607 33 , 358 , 346 107 , 440 44 , 231 , 873 Non -current assets : Liens receivable 113 , 420 _ 113 , 420 Unamortized bond costs 100 , 949 7983004 898 , 953 Intangible assets 89 , 617 609000 149 , 617 Capital assets : Property, plant and equipment 24 , 3115191 99057 , 519 2321563 , 338 11708 , 361 2675640 , 409 455 , 070 Less : Accumulated depreciation 7 , 384 , 253 13617 , 040 73 , 1699744 2669776 829437 , 813 4291276 Total non -current assets 17 , 016 , 555 _ 77541 , 428 1603365 , 018 15441 , 585 186 , 364 , 586 257794 Total assets 35 , 721 , 233 81248 , 897 225 , 280 , 137 5 , 163 , 164 274 , 413 , 431 7 , 505 , 315 LIABILITIES Current liabilities (payable from current assets) : Accounts payable 706 , 399 151 , 916 4695536 525814 1 , 380 , 665 2675919 Claims payable - 412613000 Due to other governments 99360 5 , 931 4 , 780 20 , 071 Deferred revenues 23 , 034 239034 Total current liabilities (payable from current assets) 706 , 399 1845310 4753467 57 , 594 1 , 4239770 45528 , 919 Current liabilities (payable from restricted assets) : Accounts payable - 653 , 702 653 , 702 Retainage payable 52 , 110 383 , 039 435 , 149 Accrued interest payable 299882 335 , 166 3655048 Bonds payable - 375 , 000 197659000 2 , 140 , 000 Closure and maintenance costs payable 6 , 775 , 168 6 , 775 , 168 Customer deposits 60 , 200 1 , 851 , 290 1075440 25018 , 930 Total current liabilities (payable from restricted assets) 65887 , 478 404 , 882 4 , 988 , 197 1075440 12 , 387 , 997 Non-current liabilities : Accrued compensated absences 112 , 289 651496 327 , 009 925692 5971486 59 , 238 Advance from other funds 6253000 w 625 , 000 Bonds payable - net of unamonized discount 65528 , 617 7035299338 - 77 , 057 , 955 Total non -current liabilities 1125289 7 , 219 , 113 701856 , 347 92 , 692 78 , 280 , 441 595238 Total liabilities 7 , 706 , 166 7 , 808 , 305 76 , 320 , 011 257 , 726 92 , 0925208 4 , 588 , 157 NETASSETS Invested in capital assets, net of related debt 16 , 9267938 536 , 862 877099 , 256 1 , 4415585 106 , 004 , 641 255794 Restricted for: Debt service 31 ,250 147 , 083 1787333 Capital projects 31 , 0005818 31 ,000 , 818 Unrestricted 111088 , 129 ( 127, 520) 30 , 7129969 33463 , 853 45 , 137 ,431 2 , 891 , 364 Total net assets $ 28 , 015 , 067 $ 440 , 592 $ 148 , 960 , 126 $ 4 , 905 , 438 $ 182 , 321 , 223 $ 2 , 917 , 158 The accompanying notes are an integral part of the financial statements . 25 Indian River County, Florida Statement of Revenues , Expenses , and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30 , 2002 Business-type Activities Enterprise Funds Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds OPERATING REVENUES Charges for services $ 9, 897,222 $ - $ - $ 29009, 737 Charges for services pledged as security for revenue bonds - 218979502 19,962,496 _ Total operating revenues 91897,222 258979502 19,962,496 2,0094737 OPERATING EXPENSES Personal services 29241 ,234 7755968 5 ,205 ,239 19271 ,489 Material , supplies , services and other operating 512379548 13412,823 44569401 567,356 Depreciation 579,099 1973964 99372,020 549399 Total operating expenses 8,057, 881 293863755 19,033 ,660 128939244 Operating income 158395341 510,747 9289836 116,493 NONOPERATING REVENUES (EXPENSES) Interest income 654,896 - - 1215925 Interest income pledged as security for revenue bonds - 30,400 219839032 - Gain on disposal of equipment 800 255 115845 2,200 Interest expense - (3845483 ) (49150, 155) - Bond amortization expense - ( 14, 742) (98 ,388) Intangible amortization expense (9,867) - ( 155000) - Loss on disposal of equipment - _ (868) _ Total nonoperating revenues (expenses) 6455829 (3685570) ( 172699534) 124, 125 Income before transfers and capital contributions 294859170 142, 177 (340,698) 240,618 Transfers - - - 158,048 Capital contributions - - 8,3451763 339925 Capital contributions pledged as security for revenue bonds - - 298765351 - Change in net assets 2,485 , 170 1429177 10, 881 ,416 4329591 Total net assets - beginning 25 ,5291897 298,415 138,0785710 4,4723847 Total net assets - ending $ 28,0159067 $ 4409592 $ 148,960, 126 $ 4,905 ,438 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds Change in net assets of business-type activities The accompanying notes are an integral part of the financial statements . 26 ' Governmental Activities Internal Total Service Funds $ 11 ,906,959 $ 1196579034 22,8599998 - 34,766,957 119657,034 954939930 293185319 11 ,674, 128 10,076,942 109203 ,482 411160 31 ,3 71 ,540 12,43 6,421 1 3 ,395 ,417 (7793387) 776,821 215 ,244 390139432 - 15 , 100 = (4, 534,638) ( 1133130) - (24, 867) - (868) (8689150) 215 ,244 2 527 267 (564J43 ) 158,048 - 893799688 - 2, 876,351 - 13 ,941 ,354 ( 564, 143 ) 3 ,481 ,301 $ 25917, 158 102,257 $ 14,0435611 27 Indian River County, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30 , 2002 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County District Course Utilities CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 9,901 ,276 $ 258997979 $ 19,6049530 Cash paid to suppliers for goods and services (4,7629150) ( 19328 ,742) (4,511 ,036) Cash paid to employees for services (2,213 517 (764,716) (51664,002) Net cash provided by operating activities 2,9255609 806,521 9,429,492 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Proceeds from advances from other funds Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments - bonds/notes - (360,000) ( 19690,000) Principal payments - capital leases - (84,981 ) - Interest paid on long-term debt - (377, 888) (491219175) Proceeds from sale of fixed assets 800 255 107977 Purchase of fixed assets (35854,031 ) ( 125,799) ( 10,425 ,772) Bond paying agent fees - (835 ) ( 19071 ) Capital contributed by others - - 9 503 196 Proceeds from advances from other funds - 100,000 Net cash used in capital and related financing activities (3 , 853 ,231 ) (8499248) (697237845) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 6549896 305400 29387,498 Net cash provided by investing activities 654,896 305400 2,387,498 Net increase (decrease) in cash and cash equivalents (272, 726) ( 12,327) 550935145 Cash and cash equivalents at beginning of year 189690,812 1165847 50,3715633 Cash and cash equivalents at end of year $ 185418,086 $ 1043520 $ 55,4649778 Classified as : Current assets $ 8,2353606 $ 60,489 $ 283022,396 Restricted assets 10, 182,480 449031 2794425382 Totals $ 185418,086 $ 104, 520 $ 55 ,4641778 The accompanying notes are an integral part of the financial statements . 28 Governmental Other Activities Enterprise Internal Funds Total Service Funds $ 2,0231277 $ 341429,062 $ 11005664 (564,245 ) ( 11 , 166, 173 ) (9,367 ,236) ( 1 ,251 ,302) (958932537) (2,311 ,964) 207,730 135369,352 (789536) 1589048 1589048 ( 19000) ( 19000) - 157,048 157,048 - i (29050,000) - 1 = (84,981 ) = (4,4999063 ) 2,200 14,232 - (40,573 ) ( 14,4465175 ) (4,088) ( 1 ,906) 9,503 , 196 - - 1009000 - (38,373 ) ( 1194649697) (49088) 121 925 39194,719 215 244 1219925 391943719 2159244 448,330 592565422 1329620 39247, 145 721426,437 7, 152,296 $ 396955475 $ 77,6825859 $ 792849916 $ 3 ,5885035 $ 39,9069526 $ 7,284,916 1079440 379776,333 - $ 3 ,695 ,475 $ 7756825859 $ 7,2845916 Continued 29 Indian River County, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2002 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County District Course Utilities RECONCILIATION OF NET OPERATING INCOME (LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income ( loss) $ 1 ,839,341 $ 5105747 $ 928, 836 Adjustments to reconcile operating income to net cash provided by operating activities : Work in progress reclassified as expense 21983 - 1 ,758 Depreciation 5793099 197,964 95372,020 Capitalized self-incurred expenses - - (499,956) (Increase) Decrease in assets : Accounts receivable (25 ,729) 29344 4,3825859 Due from other funds 9,879 - - Due from other governments 8,404 - - Inventories - 20,314 5295 Impact fees receivable - - (4513078) Special assessments receivable - - (4,4093012) Liens receivable - - (7,280) Deposits - - - Increase (Decrease) in liabilities : Accounts payable 288,688 625199 135922 Due to other governments - 1 ,568 - Other deposits in escrow - - - Retainage payable 52, 110 - (75 ,610) Customer deposits 11 ,500 - 126,545 Closure and maintenance costs payable 131 ,617 - - Deferred revenues - 133 - Claims payable - - - Accrued compensated absences 275717 115252 41 , 193 Total adjustments 1 ,086,268 295 ,774 855005656 Net cash provided by operating activities $ 259255609 $ 8065521 $ 9,4299492 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ ( 103 ,232) $ ( 19546) $ (300, 842) Contributed property, plant and equipment $ - $ - $ 19576,227 The accompanying notes are an integral part of the financial statements . 30 1 Governmental Other Activities Enterprise Internal Funds Total Service Funds $ 1169493 $ 3 ,3955417 $ (779,387) 45741 9,600 549399 1092039482 41 , 160 (499,956) - 165 453599639 ( 19666) 9,879 - ( 125 ) 8,279 (54,704) 899 26,508 (79558) (4519078) - (41409,012) = (7 ,280) (20) ( 11433 ) 3639376 135 ,684 3 ,645 5 ,213 - 13 , 500 139500 = (23 ,500) 138,045 - = 131 ,617 = 133 572,000 1 20, 187 1009349 6,355 91 ,237 93973 ,935 700, 851 $ 207,730 $ 131369,352 $ ( 78, 536) $ (209860) $ (426,480) $ (37 ,035 ) $ - $ 15576,227 $ - 31 Indian River County, Florida Statement of Fiduciary Net Assets Agency Fund September 30, 2002 ASSETS Cash and cash equivalents $ 5 , 865 , 020 Accounts receivable - net 26 , 703 Total assets 5 , 891 , 723 LIABILITIES Accounts payable 833430 Due to other governments 232333744 Other deposits held in escrow 33574, 549 Total liabilities 5 , 891 , 723 NET ASSETS Total net assets $ _ The accompanying notes are an integral part of the financial statements . 32 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 Note Page Note Page 1 . Summary of Significant Accounting 12, Long-term Liabilities 61 -74 Policies 3443 Business-type Activities 61 -65 Reporting Entity 34-35 Recreational Revenue Refunding Measurement Focus and Basis of Bonds, Series 1993 61 Accounting 36 -38 Water and Sewer Revenue Basis of Presentation 38 -40 Bonds, Series 1993A 62 -63 Assets, Liabilities, and Net Assets Water and Sewer Revenue or Equity 40-43 Bonds , Series 1996 63 -65 Cash and Cash Equivalents 40 Annual Debt Service Payments - Investments 40 Business-type Activities 65 Allowance for Doubtful Accounts 40 Governmental Activities 66-69 Receivables and Payables 40-41 General Obligation Bonds , Inventories 41 Series 1995 66 Restricted Assets 41 Spring Training Facility Revenue Capital Assets 41 -42 Bonds, Series 2001 67-68 Capitalization of Interest 42 Annual Debt Service Payments - Unamortized Bond Costs 42 Governmental Activities 69 Unamortized Bond Discounts 42 Housing Authority Revenue Bonds 70-71 Intangible Assets 42 Summary of Defeased Debt Deferred Revenues 43 Outstanding 71 Accrued Compensated Absences 43 Capital Leases and Notes Payable 72 Obligation for Bond Arbitrage Changes in Long-term Liabilities 73 ' Rebate 43 Conduit Debt Obligations 74 Landfill Closure Costs 43 13 . Provision for Closure Costs 75 Capital Contributions 43 14. Defined Benefit Pension Plans 75-78 2. Reconciliation of Government-wide and Florida Retirement System 75-76 Fund Financial Statements 4451 Firefighters Defined Benefit 3. Stewardship , Compliance, and Pension Plan 77-78 Accountability 52-53 15. Operating Leases 79 Budgets and Budgetary Accounting 52-53 16. Fund Equity 80-81 4. Cash and Cash Equivalents 53-55 17. Fund Equity Deficit 81 Deposits 53 18. Risk Management 82-83 Accrued Interest 53 19. Commitments and Contingencies 83-84 Investments 54-55 Litigation 83 5. Property Tax Revenues 55 Contracts and Other Commitments 84 6. Capital Assets 56-57 Grants 84 ' 7. Restricted Cash and Cash Equivalents and 20. Subsequent Events 84 Investments 57 8. Payable from Restricted Assets 58 9. Interfund Balances 58-59 10. Interfund Transfers 59 11 . Receivable and Payable Balances 60 I33 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 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 the Legislature , separating it from St . Lucie County, the County encompasses approximately 497 square miles of land with an estimated population of 118 , 149 . The County is governed by the Board of County Commissioners and five elected constitutional officers (Clerk ofthe Circuit Court, PropertyAppraiser, Sheriff, Supervisor ofElections, 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 andArticle 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 . Pronouncements of the Financial Accounting Standards Board (FASB) issued after November 30, 1989 are not applied in the preparation of the financial statements of the proprietary fund types in accordance with GASB Statement 20 . 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 . In June 1999 , the Governmental Accounting Standards Board (GASB) unanimously approved Statement 34 - Basic Financial Statements and Management ' s Discussion and Analysis - for State and Local Governments . This Statement provides for the most significant change in financial reporting in over twenty years and is scheduled for a phased implementation (based on the size of government) starting with the fiscal year ending 2002 . As part of this statement, there is a new reporting requirement regarding the local government ' s infrastructure (roads , bridges , traffic signals , etc . ) . This requirement permits an optional four-year further delay for implementation of the infi astructure related portion to the fiscal year ending in 2006. The County has fully implemented the basic model and the infrastructure-related portion in the FY 2000-2001 . 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 34 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued iburdens 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, the Emergency Services District, and the Indian River County Housing Authority were the only organizations that should be included in the County ' s financial statements as 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 the EMS . Although legally separate , the EMS is appropriately blended as a governmental fund type (special revenue) component unit into the primary government. Discretely Presented Component Unit Indian River County Housing Authority (IRCHA) - Created pursuant to Chapter 421 , Florida Statutes , the IRCHA, whose Board is appointed by the State of Florida, provides subsidized public housing in accordance with federal legislation. The County provides the primary funding for the operations of the IRCHA , maintains budgetary control over the operating costs of the IRCHA , and provides use of certain furniture and equipment at no charge . Appropriations from the County totaled $ 162 ,005 and the related actual operating costs totaled $ 144, 179 ' for the fiscal year. The IRCHA cannot overspend appropriations in total . Since the IRCHA is fiscally dependent on the County, it has been reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. The IRCHA is presented as a proprietary fund type . Separate financial statements for the Solid Waste Disposal District and the Emergency Services District are not available. Separate financial statements for the Indian River County Housing Authority are available in the administrative office located at 1028 20th Place , Vero Beach, Florida 32960 . Because the component units have been reported as if they are part of the County , there are limited instances where special note reference or separation will be required. If no separate note reference or categorization is made, the user should assume that information presented is equally applicable . 35 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 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) , as well as its discreetly presented component unit. For the most part, the effect of interfund activity has been removed from these statements . 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 . Likewise , the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable . Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and agency fund financial statements . Under the accrual basis of accounting, revenues , expenses , gains , losses , assets , and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place . Revenues , expenses, gains , losses , assets , and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement 33 - Accounting and Financial Reporting for Nonexchange Transactions . 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 cost of each program . Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements , rather than reported as an expenditure . Proceeds of long-term debt are recorded as liabilities 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 "dou- bling up" effect. 36 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Measurement Focus And Basis Of Accounting - Continued t2 . Fund Financial Statements The underlying accounting system of the County is organized and operated on the basis of separate funds , each of which is considered to be a separate accounting entity . The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets , liabilities , fund equity, revenues and expenditures or expenses , as appropriate . Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled . Fund financial statements for the primary government ' s governmental , proprietary, and fiduciary funds are presented after the government-wide financial statements . These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds . The fiduciary statement includes financial information for the agency fund. The agency fund of the County primarily represents assets held by the County in a custodial capacity for other individuals or governments . 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 40 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred , as under accrual accounting . Franchise fees , licenses , 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 County. Under the current financial resources measurement focus , onlycurrent assets and current liabilities are generally g Y ' included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources " . Governmental funds operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets . Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period . Non-current portions of long-term receivables (special assessments) due to governmental funds are reported on their balance sheets in spite of their spending measurement focus . Non-current portions of other long-term receivables are offset by fund balance reserve accounts . i 37 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Measurement Focus And Basis Of Accounting - Continued Because of their spending measurement focus , expenditure recognition for governmental fund types exclude amounts represented by noncurrent liabilities . Since they do not affect net current assets , such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities . Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets . The proceeds of long-term debt are 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 judgements , 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 and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets . Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets . The Board applies all GASB pronouncements as well as all FASB Statements and Interpretations , APB Opinions and Accounting Research Bulletins , issued on or before November 30, 1989 , which do not conflict with or contradict GASB pronouncements . Proprietary fund operating revenues , such as charges for services , result from exchange transactions associated with the principal activity of the fund . Exchange transactions are those in which each party receives and gives up essentially equal values . Nonoperating 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 expenditure . 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 . C . Basis of Presentation GASB Statement 34 sets forth minimum criteria (percentage of the assets , liabilities , revenues or expenditures/ expenses of either fund category and the governmental and enterprise combined) for the determination of major funds . The County has used GASB 34 minimum criteria for major fund determination and has also electively disclosed funds which either had debt outstanding or specific community focus as major funds . The non- major funds are combined in a column in the fund financial statements and detailed in the combining section. 38 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C . Basis Of Presentation - Continued 1 . Governmental Major Funds : General Fund - The General Fund is the general operating fund of the County . It is used to account for all financial resources, except those required to be accounted for in another fund . Secondary Roads Construction Fund - The Secondary Roads Construction Fund accounts for the expenditures of road and bridge construction . 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 Fun - The Emergency Services District Fund accounts for the expenditures of providing fire protection and advanced life support to all of 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 . 3 . Other Fund Types : Internal Service Funds - Internal Service Funds account for Fleet Management and Self Insurance services provided to other departments of the County on a cost reimbursement basis . Agency Fund - The Agency Fund is used to account for the collection and disbursement of monies by the County on behalf of other governments and individuals, such as cash bonds, traffic fines, child support payments and ad valorem taxes . 39 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 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 assets . D. Assets, Liabilities , and Net Assets or Equity 1 . Cash and Cash Equivalents 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 investments 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 . 2 . Investments Investments consist of U . S . Treasury Securities, U . S . Government Agency Securities , a guaranteed investment contract, the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the Florida Local Government Investment Trust Fund (Trust) . Except for the Pool and the Trust, investments are reported at their fair value based on the average price obtained from three brokers/dealers . Fair value of the Pool and the Trust are based on the fair value per share of the underlying portfolio . 3 . Allowance for Doubtful Accounts The County provides an allowance for water and sewer accounts receivable that may become uncollectable . At September 30, 2002, this allowance was $256 , 594 . No other allowances for doubtful accounts are maintained since other fund accounts receivable are considered collectable as reported at September 30, 2002 . 4 . Receivables and Payables Activity 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" . 40 1 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Assets , Liabilities, and Net Assets or Equity - Continued 4 . Receivables and Payables - Continued All receivables are shown net of an allowance for doubtful accounts . Receivables in excess of 180 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 . Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased . 6. Restricted Assets Certain net assets of the County are classified as restricted assets on the statement of net assets because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors , grantors , contributors , or laws or regulations of other governments . In a fund with both restricted and unrestricted asstes, qualified expenses are considered to be paid first from restricted net assets and then from unrestricted net assets . 7. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e . g . , roads, bridges, right-of-ways , water and sewer distribution systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements . Capital assets are defined by the County as assets with an initial , individual cost of $ 750 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 donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized . Major outlays for capital assets and improvements are capitalized as projects are constructed . Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed . The Board holds legal title to the capital assets used in the operations of the Board, Clerk of the Circuit Court , Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law . The Sheriff is accountable for and thus maintains capital asset records pertaining only to equipment used in his operations . These assets have been combined with the Board 's governmental activities capital assets in the statement of net assets . 41 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Assets , Liabilities , and Net Assets or Equity - Continued Property, plant, and equipment 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 Buildings and improvements 25 - 50 Machinery and equipment 3 - 10 Utility distribution systems 25 - 50 Road and bridge infrastructure 20 - 50 8 . 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. 9. Unamortized Bond Costs Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amortized over the life of the bonds using the straight-line method of accounting . 10 . Unamortized Bond Discounts Bond discounts associated with the issuance of Proprietary Fund revenue bonds are amortized according to the straight-line method . For financial reporting, unamortized bond discounts are netted against the applicable long-term debt. 11 . Intangible Assets Land use rights were purchased by the County Utilities Fund from the Golf Course Fund for irrigating the golf course with treated effluent . Leachate disposal rights were purchased by the Solid Waste Disposal Fund from the County Utilities Fund for removal and transportation of leachate from the County landfill to the sewer system . These assets are being amortized using the straight-line method over the estimated useful life of 20 years . 42 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Assets , Liabilities , and Net Assets or Equity - Continued 12 . Deferred Revenues Deferred revenues reported in government-wide financial statements represent unearned revenues . The deferred revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting . Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting , are reported as deferred revenues . 13 . Accrued Compensated Absences The County accrues accummulated 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 . 14. 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 1 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, 2002 . 15. 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 . 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 nonoperating revenues and expenses on the statement of revenues , expenses , and changes in fund assets in accordance with GASB Statement 33 . 43 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets "Total fund balances" of the County's governmental funds ($ 134, 137,677) differs from "net assets" of governmental activities ($355 ,992 ,467) reported in the statement of net assets . This difference primarily results from the long-term economic focus of the statement of net assets versus the current financial resources focus of the governmental fund balance sheet. Capital related items When capital assets (property, plant, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds . However, the state- ment of net assets included those capital assets among the assets of the County as a whole . Cost of capital assets $ 336 , 5149139 Accumulated depreciation (80 , 100,03 5 ) Total $256 ,414, 104 Lonjz-term debt transactions Long-term liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities . All liabilities (both current and long-term) are reported in the statement of net assets . Balances at September 30, 2002 were : Bonds Payable : General Obligation Bonds , Series 1995 $ (992909000) General Obligation Bonds, Series 2001 ( 10, 520 , 000) Spring Training Facility Bonds, Series 2001 ( 16 ,4505000) Capital leases (754 ,009) Compensated absences (35578 , 878 ) Total $(409592 , 887) Accrued interest Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds due to accrued interest on General Obligation Bonds, Series 1995 , General Obligation Bonds, Series 2001 , Spring Training Facility Bonds , Series 2001 , and capital leases . Bonds $ (2109601 ) Capital leases (279779) Total $ (238 , 380) 44 Indian River County , Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS - Continued A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets - Continued Deferred revenues Deferred revenues in the statement of net assets differs from the amount reported in governmental funds due to special assessment receivables . Governmental fund financial statements report unearned revenues or revenues which are measureable but not available as deferred revenues . However, deferred revenues in governmental funds are suscep- tible to full accrual on government-wide financial statements . Deferred revenues reduced $ 1339213 Internal service funds ' Internal service funds are used b management to charge the costs of fleet management and insurance activities to Y g g g individual funds . The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets because they primarily serve governmental activities of the County. Internal service fund $2 , 917 , 158 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 $2 ,416 ,097 Accrued interest revenues 1 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 $ 805 ,485 Elimination of mterf ind receivables/pg3qbles Interfund receivables and payables in the amount of $625 ,911 between governmental funds must be eliminated for the statement of net assets . r 45 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government Total Capital Long-term Governmental Related Debt Interest ASSETS Funds Items Transactions Payable Cash and cash equivalents $ 1395841 , 806 $ Accounts receivable - net 6671209 Special assessments receivable 133 ,213 Due from other funds 552 , 560 Due from other governments 39039 ,248 - - Interest receivable Inventories 67 , 746 - - Deposits 142 ,221 Advance to other funds 625 , 000 Capital assets - net - 256 ,414 , 104 - - Total assets $ 145 ,0695003 $ 25654145104 LIABILITIES AND FUND BALANCES Liabilities : Accounts payable $ 75965 ,286 Retainage payable 14455693 Accrued interest payable - - - 2389380 Claims payable Due to other funds 625 , 911 Due to other governments 277, 916 - - - Deferred revenues 444 , 731 - - Other deposits held in escrow 1715789 Accrued compensated absences - - 39578 , 878 Capital leases - - 7545009 - Bonds payable - - 3692605000 Total liabilities 10 ,9319326 - 40 , 5925887 2385380 Fund balances/net assets 1345137 , 677 2565414, 104 (40 , 5925887) (238 , 380) Total liabilities and fund balances/net assets $ 1455069, 003 $ 256 ,414 , 104 46 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 - Continued ' - wide Statement of Net Assets - Continued Internal Accrued Accrued Reclassifications Statement Deferred Service Grant Interest and of Revenues Funds Revenues Revenues Eliminations Net Assets $ - $ 792849916 $ - $ . $ . $ 14791269722 = 58 , 534 = = = 725 , 743 133 ,213 - - - - (911 ) 5519649 ' = 63 ,287 2 ,4169097 - = 5 , 518 , 632 805 ,485 805 ,485 729382 - - - 1409128 - 402 - - - 1425623 (625 , 000) - 259794 - - - 256 ,4399898 $ - $ 7 , 505 , 315 $ 2 ,416 ,097 $ 805 ,485 $ (625 , 911 ) $ 411 , 584 , 093 $ = $ 2679919 $ = $ = $ = $ 8 ,233 ,205 1 ,445 , 693 238 , 380 = 432615000 = = - 4 ,261 , 000 (625 , 911 ) - - - - - 2775916 ( 133 , 213 ) - - - - 311 , 518 171 , 789 ' = 599238 _ _ _ 3 , 6385116 754 , 009 36 ,260 , 000 ( 133 ,213 ) 495883157 - - (6259911 ) 559591 , 626 1339213 29917 , 158 294169097 8059485 - 35599925467 $ - $ 735059315 $ 2 ,4163097 $ 805 ,485 $ (625 ,911 ) $ 411 , 5847093 ' 47 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 2 - RECONCILIATION OF GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - Continued B . Explanation of Differences Between Governmental Fund Operating Statements and the State- ment of Activities The net change in fund balances" for governmental funds ($ 11 ,035 ,866) differs from the "change in net assets" for governmental activities ($22,674,468) 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 ofthe differences is illustrated below. Capital related items When capital assets that are to be used in governmental activities are purchased or constructed, the resources ex- pended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense . As a result, fund balances decrease by the amount of financial resources expended, whereas net assets decrease by the amount of depreciation expense charged for the year. Capital outlay $ 30,270 , 897 Depreciation expense (7, 655 , 599) Difference $ 22 ,615 ,298 In the statement of activities , only the gain and loss on the sale of capital assets are reported. However, in the govern- mental funds , the proceeds from the sale increase financial resources . Thus, the change in net assets differs from the change in fund balance by the cost of the capital assets sold. Sale of fixed assets $ ( 1 , 996 ,218 ) Contributions reported in the statement of activities do not provide current financial resources , therefore , are not reported as revenues in the governmental funds . Contributions $ 15220,001 Long-term debt transactions In the statement of activities, debt and capital lease proceeds increase long-term liabilities. However, in the governmen- tal funds, debt and capital lease proceeds are treated as other financing sources since they provide current financial resources to governmental funds . Debt proceeds $( 11 ,000 ,000) Capital lease proceeds (275 , 000) Net adjustment $( 112275 ,000) Repayments of bond principal and capital lease principal 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 principal payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities. Bond principal payments made $ 137655000 Capital lease principal payments made 4649201 Total $ 2 ,2295201 48 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 2 - RECONCILIATION OF GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - Continued B . Explanation of Differences Between Governmental Fund Operating Statements and the State- ment of Activities - 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 $ (258 ,207) Interest payable : Net accrued bond interest payable ( 86, 567) Net accrued capital lease interest payable (21660) (899227) Net adjustment $ (347 , 434) 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 $ ( 169274) Internal service funds operating loss The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets because they primarily serve governmental activities of the County. The net costs of the internal service funds are reported with governmental activities . Internal service funds operating loss $ (666 ,400) 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 $ (91 , 610) IAccrued 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 $ (325962 ) Reclassification and Eliminations The general fund recognizes revenues in the amount of $ 1 ,333 ,548 for the general administrative charges to the public ' safety and transportation functions .These revenues and expenditures must be eliminated to avoid double counting . Transfers in and transfers out in the amount of $ 9 , 326 , 195 between governmental activities should be eliminated . Capital projects costs in the amount of $20, 767,383 must be distributed to the related expenditure functions . 1 ' 49 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATE- B . Explanation of Differences Between Governmental Fund Operating Statements and the State- Total Capital Long-term Governmental Related Debt Compensated REVENUES Funds Items Transactions Absences Taxes $ 80,488,343 $ - $ Licenses and permits 5155653 Intergovernmental 205802,982 Charges for services 11 ,368,399 Fines and forfeitures 1 ,421 ,542 Special assessments 41230,519 Interest 55007, 150 Miscellaneous 2,362,780 (7501965 ) - - Total revenues 126, 197,368 (750,965) - - EXPENDITURES Current : General government 16,9791694 ( 1 ,5433788) - 103 ,289 Public safety 45 ,352,323 (332,259) - 579207 Physical environment 1 ,473 ,749 ( 1 ,0345326) - 4, 196 Transportation 1696865374 (7,238,718) - 445342 Economic environment 347,096 25087 - 563 Human services 5,756,579 (32, 174) - 59126 Culture/Recreation 9, 117,900 ( 105878,635 ) - 329588 Court related 598029798 (312,232) - 109896 Debt service : Principal 2922%201 - (2,229,201 ) - Interest and fiscal charges 1 ,6219178 Capital projects 20,7679383 - -Total expenditures 1269134,275 (215370,045) (25229,201 ) 2581207 Excess of revenues over (under) expenditures 635093 20,619,080 2522%201 (258,207) OTHER FINANCING SOURCES (USES) Transfers in 9,3261195 - - - Transfers out (91484,243 ) - - - Transfers to component unit ( 144, 179) - - - Contributions - 15220,001 - - Lease purchase proceeds 275,000 - (275,000) - Debt proceeds 1150009000 - ( 11 ,000,000) - Total other financing sources (uses) 10,972,773 1 ,220,001 ( 11 ,275 ,000) - Net change in fund balances 11 ,035 , 866 21 ,839,081 (9,0455799) (258,207) Fund balances at beginning of year 1235101 ,811 234575 ,023 (315621 ,434) 332553 Fund balances at end of year $ 1349137,677 $ 256,4143104 $ (40,6671233 ) $ 74,346 50 ' Indian River County , Florida Notes To Financial Statements Year Ended September 30 , 2002 MENTS - Continued ment of Activities - Continued Accrued Internal Accrued Accrued Reclassifications Statement Interest Deferred Service Grant and Tax Interest and of Expenses Revenues Funds Revenues Revenues Eliminations Activities $ $ - $ - $ - $ 8034885343 - 515 ,653 (91 ,610) = - 20,7119372 ( 1 ,333 ,548) 10,034,851 1 ,421 ,542 ( 16,274) - - - - 492149245 ' - - 215 ,244 - (32,962) - 51189,432 1 ,611 , 815 ( 16,274) 215 ,244 (919610) (325962) ( 15333 ,548) 12431879253 - 1463405 - 31248, 801 18,9345401 - - 3351180 - - 967,874 461380,325 - - 10,957 - - - 454,576 - - 220,974 - - 55165 ,799 14,878,771 - 8, 165 - - - 357,911 269203 - - 759862 5 ,8315596 1329347 - - 109006,279 8,410,479 1 - - 15413 - - (309780) 55472,095 89,227 = = = = - 157109405 (20,767,383 ) - 89,227 - 8819644 - - ( 1 ,3339548) 1025430,559 (895227) ( 16,274) (666,400) (915610) (32,962) - 2197569694 ' - - - - - (91326, 195) 9,3265195 ( 1585048) ( 144, 179) 1 ,220,001 - - - - 917,774 (895227) ( 169274) (666,400) (91 ,610) (32,962) - 22,674,468 ( 149, 153 ) 1499487 39583 ,558 25507,707 8381447 - 33353175999 ' $ (238,380) $ 133 ,213 $ 2,917, 158 $ 2,416,097 $ 805 ,485 $ - $ 355 ,992,467 51 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 3 = STEWARDSHIP, COMPLIANCE , AND ACCOUNTABILITY Budgets and Budgetary Accounting The County uses the following procedures in establishing the budgetary data reflected in the financial statements : ( 1 ) The constitutional officers submit, at various times , to the Board and to certain divisions within the Department of Revenue , State of Florida, a proposed operating budget for the fiscal year commencing the following October 1 . The operating budget includes proposed expenditures and the means of financing them , as set forth in Chapter 129 of the Florida Statutes . (2) The Department of Revenue , State of Florida, has the final authority on the operating budgets for the Tax Collector and the Property Appraiser included in the General Fund . (3 ) Constitutional officers , all departments controlled by the Board, and outside state and local agencies submit their proposed budgets to the Office of Management and Budget for assistance , review and compilation. The County Administrator then reviews all County departments, state agencies and nonprofit organization ' s budgets and makes his budget recommendation to the Board . (4) On or before July 15 of each year, the County Administrator and the Director of the Office of Management and Budget, as the Board ' s designated budget officer, submit to the Board a tentative budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means of financing them . The Board then holds workshops to review the tentative budget by fund on a departmental level . (5 ) During September, public hearings are held pursuant to Section 200 . 065 of the Florida Statutes in order for the Board to receive public input on the tentative budget. At the end of the last public hearing, the Board enacts ordinances to legally adopt the budgets at the fund level for all 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 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. 52 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 3 - STEWARDSHIP, COMPLIANCE , AND ACCOUNTABILITY - Continued Budgets and Budgetary Accounting - Continued ' (9) The following is a comparison of the appropriations to total expenses for the proprietary funds for the fiscal year ended September 30 , 2002 : Variance Total Positive Appropriations Expenses (Negative) Primary Government Enterprise Funds : Solid Waste Disposal District $ 9 , 6159232 $ 8 ,067 , 748 $ 195479484 ' Shooting Range 3293798 321 ,209 83589 Golf Course 3 , 1663587 2 , 785 ,980 3803607 CountyBuilding 195939670 15572 , 035 219635 County Utilities 2396769627 23 ,298 ,071 378 , 556 Internal Service Funds : ' Fleet Management 19538 , 126 195245817 135309 Self Insurance 12 , 023 , 772 1099119604 151129168 Component Unit Housing Authority 8275980 7919697 36 ,283 1 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 . 1 . Deposits At September 30 , 2002 , the carrying amount of the Primary Government ' s deposits , including $ 8 , 000, 000 of non- negotiable CDs , was $20 ,384 , 832 and the bank balance was $22 , 539 ,677 . The carrying amount of the component unit 's deposits totaled $ 1 ,033 , 175 and the bank balance was $ 1 ,035 , 164 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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 . As of September 30, 2002 , the component unit had $ 15 , 382 in a certificate of deposit that will mature in May, 2003 with an interest rate of 1 . 85 % . 2 . Accrued Interest Interest earnings on U . S . Treasury Notes and government agency bonds are recorded in the cash and invest- ment pool and then allocated to each fund based on each fund ' s average monthly balance . Interest received within 40 days of September 30, in the amount of $659, 039, was accrued and allocated to the funds based on their average monthly balance for September. ' 53 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued 3 . Investments Florida Statutes , the County ' s Investment Policy, and various bond covenants authorize investments in certifi - cates of deposit, money market accounts , savings accounts , repurchase agreements , the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, Florida Local Govern- ment Investment Trust Fund, obligations of the U . S . Government, obligations of government agencies uncon- ditionally guaranteed by the U . S . Government, obligations of the Federal Farm Credit Banks , obligations of the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation partici - pation certificates , obligations of the Federal Home Loan Bank, obligations of the Government National Mort- gage Association, obligations of the Federal National Mortgage Association and securities of any management type investment company or investment trust registered under the Investment Company Act of 1940 , 15 U . S . C . ss . 80a4 et seq . , provided the portfolio is limited to U . S . Government obligations and to repurchase agree- ments fully collateralized by U . S . Government obligations . The County invested in only these types of instru- ments during the fiscal year. In accordance with generally accepted accounting principles , the County ' s investments are categorized in the following schedule to give an indication of the level of custodial credit risk assumed at year end . Category 1 includes investments that are insured or registered, or for which the securities are held by the County or its agent in the County 's name . Investments in the Local Government Surplus Funds Trust Fund, the Florida Local Gov- ernment Investment Trust Fund, money market accounts and guaranteed investment contract are not categorized since the investments are not evidenced by securities that exist in physical or book entry form . The Local Government Surplus Funds Trust Fund Investment Pool (Pool) is a "2a- 7" like pool , and therefore , the County ' s account balance is used for fair value reporting . All units of local government in Florida are eligible , but not required, to participate in the Pool . In addition to a variety of fixed coupon investments , the Pool also purchases floating rate and adjustable rate securities . These floating rate and adjustable rate securi - ties are used to hedge against interest rate risk and provide diversification to the portfolio . The floating rate and adjustable rate securities all float relative to prevailing short-term interest rates such as LIBOR, Prime , or Fed Funds rates . On September 30 , 2002 , the Pool held floating rate securities , either directly or as invested securities lending collateral, at a fair value of $ 1 ,395 ,418 , 000 . The Pool also participates insecurities lending programs . As of September 30 , 2002 , the collateral held by the Pool, $4,207,209 ,480 in cash and $ 14,467, 338 in U . S . Government securities, exceeded the fair value of the securities underlying the agreements. As of September 30, 2002, the Pool had 811 local government participants with total investments of approximately $ 13 . 95 billion. The portfolio 's average maturity was 63 days . The Florida Local Government Investment Trust Fund (Trust) is a professionally managed fund available only to public entities in Florida. The investment policy of the Trust restricts investments to direct obligations of or securities fully guaranteed by the United States ; obligations of certain federal agencies , including collateral- ized mortgage obligations ; repurchase agreements ; corporate bonds ; and commercial paper. As of September 30 , 2002 , the Trust had investments , at fair value, of approximately $452 . 3 million. Of the total investments in the Trust, 26 . 28 % was invested in asset backed securities and 8 . 81 % was invested in adjustable rate mortgages . 54 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued 3 . Investments - Continued ' Except for the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the Florida Local Govern- ment Investment Trust Fund (Trust), investments are reported at fair value based on the average price obtained from three broker/dealers . Fair value of the Pool and the Trust are based on the fair value per share of the underlying portfolio. Upon issuance of the Water and Sewer Bonds , Series 1993A and 1993B , the County invested the required sinking fund reserve monies , $ 3 , 139 ,285 , in a guaranteed investment contract with AIG Matched Funding Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less than the arbitrage yield of the bonds . All of the County's U. S . Treasury Securities and U. S . Government Agencies are held in trust by the County's custodial ' bank, in the County 's name . Schedule of Investments at September 30, 2002 Category Fair ' 1 Value U . S . Treasury Securities $ 1200 , 737 $ 12 , 8805737 ' U . S . Government Agencies 9296529026 929652 , 026 $ 105 , 5325763 $ 10595329763 Local Government Surplus Funds Trust Fund 94 ,498 ,258 Florida Local Government Investment Trust Fund 790009000 Guaranteed Investment Contract 39139 ,285 Total Investments $ 2105170 , 306 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 2001 -2002 fiscal year were levied in October, 2001 . 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 ofApril 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. 55 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 . NOTE 6 - CAPITAL ASSETS Capital asset activity for the year ended September 30 , 2002 was as follows : Primary Government Beginning Ending Balance Additions Deletions Balance Governmental activities : Capital assets , not being depreciated : Land $ 53,7109608 $ 380,091 $ ( 1 ,9969218) $ 52,094,481 Construction in progress 63170,785 265439, 135 (5,513 ,058) 27,096, 862 Right-of-way 996759655 880,708 - 107556,363 Infrastructure 3 ,296,055 - - 35296,055 Total capital assets , not being depreciated 72, 853 , 103 27,6993934 (7,5099276) 9390439761 Capital assets , being depreciated : Buildings and improvements 51 ,374,625 2,537,721 - 5399129346 Equipment 34,9139656 555679530 ( 159135077) 38 ,568, 109 Infrastructure 150,251 ,733 1 , 193 ,260 - 151 ,444,993 Total capital assets , being depreciated 23695405014 99298,511 ( 11913 ,077) 2439925,448 Less accumulated depreciation for: Buildings and improvements ( 1194029243) ( 11104,856) - ( 12,5071099) Equipment ( 13,4815490) (354897128) 1 ,913 ,077 ( 15 ,0579541 ) Infrastructure (4958615895) (3 , 102,776) - (52,9643671 ) Total accumulated depreciation (74,7451628) (796963760) 1 ,913 ,077 (8%5291311 ) Total capital assets , being depreciated , net 1619794,386 156019751 - 16393969137 Governmental activities capital assets , net $ 234,6479489 $ 29,301 ,685 $ (7,509,276) $ 2569439,898 Business -type activities : Capital assets , not being depreciated : Land $ 13 ,046,594 $ 2,8421766 $ - $ 15 ,8899360 Construction in progress 122194,429 1095859948 (71414,229) 15 ,3669148 Total capital assets , not being depreciated 25 ,2419023 13 ,428,714 (7,4149229) 31 ,2559508 Capital assets , being depreciated : Buildings , distribution systems and improvements 2159037,433 %0869361 - 22411233794 Equipment 11 , 157, 170 114695408 (3657471 ) 1292615107 Total capital assets , being depreciated 226, 194,603 10,5559769 (3655471 ) 236,384,901 Less accumulated depreciation for: Buildings , distribution systems and improvements (65 ,0089846) (85917,230) - (73 ,9263076) Equipment (7,590,089) ( 1 ,2865252) 3649604 (8 , 511 ,737) Total accumulated depreciation (72,598,935 ) ( 1092039482) 364,604 (82,437,813) Total capital assets , being depreciated , net 153 ,595 ,668 352,287 (867) 153 ,947,088 Business -type activities capital assets , net $ 178,836,691 $ 13 ,781 ,001 $ (7,4155096) $ 18592029596 56 Indian River County , Florida Notes To Financial Statements ' Year Ended September 30 , 2002 ' NOTE 6 - CAPITAL ASSETS - Continued Depreciation expense was charged to functions/programs of the primary government as follows : Governmental activities : General Government $ 191639075 Public Safety 2,293,488 Physical Environment 59567 Transportation 39774,240 ' Economic Environment 23087 Human Services 68, 190 Cultural/Recreation 300,533 Court Related 489419 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 415161 Total depreciation expense - governmental activities $ 7,696,760 ' Business -type activities : Solid Waste Disposal District $ 5799099 Shooting Range 309941 Golf Course 1979964 County Building 23,458 County Utilities 9,372,020 Total depreciation expense - business -type activities $ 10,2039482 NOTE 7 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS Various bond covenants , resolutions and state regulations require that the County restrict cash and cash equiva- lents and investments within the Enterprise Funds . Restricted cash and cash equivalents and investments are as follows : ' Component Primary Government Unit Solid Waste Other Disposal Golf County Enterprise Housing District Course Utilities Funds Total Authority Sinking Funds $ - $ 583,607 $ 4,4695973 $ - $ 5,0539580 $ 44,761 ' Renewal and Replacement 3 ,347, 112 3,557,881- - 6,904,993 7619704 Customer Deposits 60,200 - 1 ,851 ,290 107,440 21018,930 42,375 ' Capital Construction - - 1795639238 - 171563 ,238 - Closure and Mainte- nance Costs 65775, 168 - - - 69775 , 168 - TaxFscrow - - - - - 51 ,378 Total $ 1091829480 $ 583,607 $ 2794429382 $ 1079440 $ 38,3151909 $ 900,218 r57 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 8 - PAYABLE FROM RESTRICTED ASSETS Liabilities payable from the County ' s Enterprise Funds restricted assets are as follows : Component 1 Primary Government Unit Solid Waste Other Disposal Golf County Proprietary Housing District Course Utilities Funds Total Authority Accounts payable $ - $ - $ 653 , 702 $ - $ 6539702 $ Retainage payable 52, 110 - 383 ,039 - 435, 149 - Accrued interest payable - 29,882 335, 166 - 365 ,048 3 , 140 Bonds payable (current portion) - 3759000 1 ,7653000 - 211407000 182,000 Closure & maintenance costs payable 6,7759168 - - - 6,775 , 168 - Customer deposits 609200 - 1 ,8519290 1079440 230189930 42,456 Total $ 6,887,478 $ 4049882 $ 4,9889197 $ 1079440 $ 123387,997 $ 227,596 NOTE 9 - INTERFUND BALANCES Interfund balances at September 30, 2002, consisted of the following: Due to General Fund from : Nonmajor governmental funds : Court Facilities Fund $ 1153000 Metropolitan Planning Organization Fund 10 , 000 Total $ 1259000 Due to Optional Sales Tax Fund from : Nonmajor governmental funds : Library Bequests Fund $ 2255000 Vero Lake Estates Fund 5 , 000 Total $ 230 , 000 Amounts due from the Court Facilities and Metropolitan Planning Organization Funds to the General Fund and amounts due from the Library Bequests and Vero Lake Estates Funds to the Optional Sales Tax Fund represent short term cash loans that will be repaid within the next twelve months . Due from General fund to : Emergency Services District Fund $ 1779292 Solid Waste Disposal District Fund 73 , 351 Non-major governmental funds : Land Acquisition Debt Service Fund 179550 Other Funds 29718 Total $ 2709911 58 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 9 - INTERFUND BALANCES - Continued Amounts due from the General Fund represent excess fees of the constitutional officers remitted to the Boards Funds ' subsequent to September 30, 2002 . NOTE 10 - INTERFUND TRANSFERS Interfund transfers for the year ended September 30, 2002 , consisted of the following : Transfers to General Fund from : Emergency Services District Fund $ 439 , 902 Nonmajor governmental funds 2629984 ' Transfers to Transportation Fund from : General Fund 7 , 1289440 Transfers to Nonmajor Funds from : General Fund 2239366 Optional Sales Tax Fund 194009000 All other transfers 295551 Total transfers $ 9 ,484 ,243 Transfers are used to 1 ) move revenues from the fund that state law requires to collect them to the fund that state law requires to expend them , 2) provide matching funds for grants , 3 ) use unrestricted general fund revenues to finance transportation activities which must be accounted for in another fund, 4) use optional sales ' tax revenues for beach restoration activities which must be accounted for in another fund, and 5 ) use unre - stricted general fund revenues to subsidize a business activity, the Shooting Range . ' 59 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 NOTE 11 - RECEIVABLE AND PAYABLE BALANCES Receivables Receivables at September 30 , 2002 , were as follows : Due from Other Total Accounts Governments Receivables Govemmental Activities : General $ 612,619 $ 1 , 135, 120 $ 1 ,747,739 Secondary roads - 2749077 274,077 Transportation 19192 202,497 2039689 Finergency services 985 16204 17, 189 Optional sales tax - 2,2879491 2287,491 Other governmental 110,947 1 ,603,243 1 ,714, 190 Total - governmental activities $ 725,743 $ 51518,632 $ 62449375 Business -type activities : Solid waste $ 2139241 $ - $ 213241 Golf course 1 , 137 9,000 109137 Utilities 2, 100,047 - 29100,047 Total - business -type activities $ 2,314,425 $ 91000 $ 2,3237425 Payables Payables at September 30 , 2002, were as follows : Salaries and Total Vendors Benefits Retainage Payables Governmental Activities : General $ 1 ,723 ,411 $ 1 ,055,808 $ 99582 $ 21788, 801 Secondary roads 1 ,264,221 1 ,510 135 ,930 174015661 Transportation 128 ,575 39, 155 - 1675730 Emergency services 3157902 91 ,045 - 406,947 Optional sales tax 117689100 - 985 ,270 2,753 ,370 Other governmental 158389092 7,386 314,911 2, 1601389 Total-governmental activities $ 750383301 $ 11194,904 $ 1 ,445 ,693 $ 9,6781898 Business -type activities (payable from current assets ): Solid waste $ 6925841 $ 139558 $ - $ 706,399 Golf course 1472482 41434 - 1512916 Utilities 431 ,249 38,287 - 469, 536 Other enterprise 445142 8,672 - 52, 814 Business -type activities (payable from restricted assets ) : Solid Waste 52, 110 52, 110 Utilities 6537702 - 383 ,039 1 ,036,741 Total - business -type activities $ 1 ,969,416 $ 64,951 $ 4359149 $ 21469, 516 60 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES A. Primary Government Business -type Activities Recreational (Golf Course) Revenue Refunding Bonds , Series 1993 Purpose - The Series 1993 Bonds were issued to legally defease all of the County ' s outstanding Recreational Revenue Bonds , Series 1985 and Series 1991 . Pledge of Revenue - The revenue bonds are collateralized by a lien on the net revenues derived from the operations of the project and racetrack and jai alai fronton funds accruing annually to the County . Bonds Issued - At September 30 , 2002 , the revenue bonds consisted of the following : ' Interest Outstanding at Rates and Original September 30 , Description Date Maturity Issue 2002 ' 1993 Recreational Revenue 2 . 80 - 5 . 25 % 9/ 1 / 16 $ 958759000 $ 7 , 1109000 Refunding Bonds 3/ 1 and 9/ 1 Less : Current portion 3755000 Unamortized bond discount 206 , 383 Long-Term Portion $ 69528 , 617 ' Mandatory Redemption - The Series 1993 term bonds due September 1 , 2016 , are subject to mandatory re- demption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule : Date Principal Amount ' September 1 , 2009 $ 5009000 September 1 , 2010 530 ,000 September 1 , 2011 555 , 000 September 1 , 2012 580 , 000 September 1 , 2013 6109000 September 1 , 2014 6459000 September 1 , 2015 675 , 000 September 1 , 2016 4705000 ' Optional Redemption - The revenue bonds , maturing on or after September 1 , 2004, (except the Series 1993 Term Bonds maturing on September 1 , 2016) are subject to redemption prior to maturity, at the option of the County on and after September 1 , 2003 , in whole or in part, at any time , on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and 2% depending on the year of redemption. ' 61 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Water and Sewer Revenue Bonds , Series 1993A Purpose - The Series 1993 bonds were issued to legally defease all of the County ' s outstanding Water and Sewer Revenue and Refunding Bonds, Series 1986 and 1986A, Series 1989 , Series 1991 , and Special Assess- ment Revenue Bonds, Series 1989 and Series 1990 , and to provide funds to make certain capital improve- ments to the utility system . Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system , and certain surcharges and special assessments . Bonds Issued - At September 30, 2002 , the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September ,30 , Description Date Maturity Issue 2002 Water and Sewer 2 . 60- 6 . 50% Revenue Bonds, 3 / 1 and 9/ 1 2024 $ 45 ,475 , 000 $ 39 , 575 , 000 Series 1993A Less : Current portion 1 005 000 Unamortized bond discount 112879772 Long-Term Portion $ 37 282 228 Mandatory Redemption - The Series 1993A Term Bonds are subject to mandatory redemption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule : Term Bonds due September 1 , 2008 Date Principal Amount September 1 , 2007 $ 15230 ,000 September 1 , 2008 1 , 310, 000 Term Bonds due September 1 , 2011 Date Principal Amount September 1 , 2009 $ 1 , 395 ,000 September 1 , 2010 134759000 September 1 , 2011 1 , 555 ,000 62 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued ' Term Bonds due September 1 , 2015 Date Principal Amount September 1 , 2012 $ 13640 , 000 September 1 , 2013 1 , 7309000 September 1 , 2014 198255000 ' September 1 , 2015 199255000 Term Bonds due September 1 , 2018 Date Principal Amount September 1 , 2016 $ 2 , 0309000 September 1 , 2017 291359000 ' September 1 , 2018 29250 , 000 Term Bonds due September 1 , 2020 Date Principal Amount September 1 , 2019 $ 293703000 September 1 , 2020 2 ,4903000 Term Bonds due September 1 , 2024 Date Principal Amount September 1 , 2021 $ 2 ,625 , 000 September 1 , 2022 297605000 ' September 1 , 2023 2 , 9053000 September 1 , 2024 15585 , 000 Optional Redemption - The revenue bonds , Series 1993A, maturing on or after September 1 , 2009 , are subject to redemption prior to maturity, at the option of the County on and after September 1 , 2008 , in whole or in part, at any time , on any interest payment date at par plus accrued interest and plus a premium ranging between 0% ' and 2% depending on the year of redemption. Water and Sewer Revenue Bonds , Series 1996 ' Purpose - The Series 1996 Bonds were issued to provide funds to make certain capital improvements to the utility system, and to reimburse the County for the purchase of a utility system from the City of Sebastian, Florida. Pledge o Revenues - The revenue bonds are collateralized b a pledge of all net revenues derived from the g f Y P g operation of the system and certain surcharges and special assessments . t 63 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Bonds Issued- At September 30, 2002 , the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September 30 , Description Date Maturity Issue 2002 Water and Sewer 3 . 80- 5 . 45 % Revenue Bonds, 3 / 1 and 9/ 1 2026 $ 38 , 900 , 000 $ 34 , 950 , 000 Series 1996 Less : Current portion 760 000 Unamortized bond discount 942 , 890 Long-Term Portion $ 33 ,2471110 Mandatory Redemption - The Series 1996 term bonds are subject to mandatory redemption prior to-maturity, in part (including portions ofBonds) at par plus accrued interest, according to the following schedule : Term Bonds due September 1 , 2016 Date Principal Amount September 1 , 2011 $ 1 , 1259000 September 1 , 2012 1 , 18500 September 1 , 2013 192559000 September 1 , 2014 193203000 September 1 , 2015 1 , 395 , 000 September 1 , 2016 194705000 Term Bonds due September 1 , 2019 Date Principal Amount September 1 , 2017 $ 1 , 550,000 September 1 , 2018 13635 , 000 September 1 , 2019 1 , 7255000 Term Bonds due September 1 , 2026 Date Principal Amount September 1 , 2020 $ 19820 , 000 September 1 , 2021 1 , 920, 000 September 1 , 2022 25025 ,000 September 1 , 2023 2 , 140,000 September 1 , 2024 25255 ,000 September 1 , 2025 2 , 380 , 000 September 1 , 2026 295105000 64 ' Indian River County , Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Optional Redemption - The Series 1996 Bonds maturing on or after September 1 , 2007 , are subject to redemp- tion by the County on or after September 1 , 2006 , in whole or in part, at par plus accrued interest to date of redemption, plus a premium ranging from 0% to 2 % depending on the year of redemption . Annual Debt Service Pa ents - yrrl Business- type Activities The annual debt service payments for bonds outstanding at September 30, 2002 , are as follows : Fiscal Year Recreational Revenue Water and Sewer Refunding Water and Sewer Revenue Ending Refunding Bonds , Series 1993 Revenue Bonds , Series 1993 Bonds , Series 1996 ' September 30, Principal Interest Principal Interest Principal Interest 2003 $ 375 , 000 $ 3589588 $ 190059000 $ 2 , 134,235 $ 760,000 $ 118875754 2004 395 ,000 3409775 1 ,055 , 000 2,083 ,985 800,000 118523034 ' 2005 4109000 3219420 1 , 110,000 2 ,0301180 835 ,000 118133634 2006 4309000 3009920 1 , 1701000 119729460 875,000 157729719 2007 4559000 278,990 1 ,2307000 1 ,9101450 920,000 1 ,728,969 2008-2012 312559000 1 ,016,935 79375 , 000 833339950 573605000 75882,931 2013 -2017 1 ,790,000 290,250 99645 ,000 6,0585825 6,990,000 69256,800 2018-2022 - - 12 ,495 , 000 392139523 971255000 49112,625 ' 2023 -2026 - - 41490,000 318, 937 972859000 15310,650 Total 7, 110, 000 2,9079878 39, 5757000 28 ,0569545 349950,000 2896189116 Less : ' Current Portion 375,000 1 ,0059000 760,000 Unamortized bond discount 206,383 112879772 942,890 ' Total $ 63528,617 $ 23907,878 $ 37,282,228 $ 2890569545 $ 33,247, 110 $ 28,618, 116 1 ' 65 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Governmental Activities General Obligation Bonds Purpose - On July 11 , 1995 , the County issued $ 15 ,000, 000 of General Obligation Bonds, Series 1995 . On Novem- ber 29, 2001 , the County issued the additional $ 11 , 000,000 of General Obligation Bonds, Series 2001 . The issuance of the Series 1995 Bonds and the Series 2001 Bonds were approved by a majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of the County. The referendum authorized a total of $26,000,000 aggregate principal amount of general obligation bonds, in one or more series, of which the Series 1995 Bonds are the first and the Series 2001 Bonds are the second. The proceeds of this issue will provide funds to acquire by purchase, interest in environmentally sensitive lands, together with the necessary restoration, remediation and reclamation activi- ties to preserve and enhance such property and customary and necessary costs incurred in the acquisition. Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied by the County upon the taxable real and personal property of the County. Bonds Issued - At September 30, 2002 , General Obligation Bonds consisted of the following : Outstanding at Interest Original September 30, Description Rates and Date Maturity Issue 2002 General Obligation 3 . 50% - 5 . 00% 1995 Series 1 / 1 and 7/ 1 2010 $ 15 , 000 , 000 $ 9,290 , 000 General Obligation 2 . 50%-4 . 30% 2001 Series 1 / 1 and 7/ 1 2016 $ 11 ,000 ,000 $ 10, 520, 000 Optional Redemption - The General Obligation Bonds, Series 1995 , maturing on or after July 1 , 2004 , are subject to redemption prior to maturity, at the option of the County on and after July 1 , 2003 , in whole or in part, at any time , on any date at par plus accrued interest and plus a premium ranging between 0% and 2 % depending on the year of redemption. The General Obligation Bonds, Series 2001 , maturing on or after July 1 , 2013 , are subj ect to redemption prior to maturity, at the option of the County on and after Julyl , 2012 , in whole or in part, at any time , on any date at par plus accrued interest and plus a premium ranging between 0% to 1 % depending on the year of redemption 66 ' Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued 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 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 known as "Dodgertown" ; (2) pay a premium for a municipal bond insurance policy and a debt service reserve account surety bond, and (3 ) pay certain costs and expenses incurred in connection with the issuance of the Series 2001 Bonds . ' Pledge of Revenues - The principal and interest on the Series 2001 Bonds will be payable from and secured by a first lien upon and pledge of the following , together with any investment income realized on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund : ( 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 " . 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 . ' Bonds Issued - At September 30 , 2002 , Spring Training Facility Revenue Bonds consisted ofthe following : tOutstanding at Interest Original September 30 , Description Rates and Date Maturity Issue 2002 ' Spring Training 3 . 30%- 5 . 25 % ' Facility 4/ 1 and 10/ 1 2031 $ 16 , 810 , 000 $ 16 ,450 , 000 ' 67 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Optional Redemption - The Series 2001 Bonds maturing on or after April 1 , 2012 , are 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 I % depending on the year of the redemption. Mandatory Redemption - The Series 2001 Term Bonds are subject to mandatory redemption prior to maturity, by lot, at par plus accrued interest, according to the following schedule : Term Bonds due April 1 , 2015 Date Principal Amount April 1 , 2014 $ 6859000 April 1 , 2015 7259000 Term Bonds due April 1 , 2017 Date Principal Amount April 1 , 2016 $ 760, 000 April 1 , 2017 795 , 000 Term Bonds due April 1 , 2021 Date Principal Amount April 1 , 2018 $ 8403000 April 1 , 2019 890,000 April 1 , 2020 9309000 April 1 , 2021 980,000 Term Bonds due April 1 , 2027 Date Principal Amount April 1 , 2022 $ 3059000 April 1 , 2023 320 , 000 April 1 , 2024 340 , 000 April 1 , 2025 355 , 000 April 1 , 2026 3753000 April 1 , 2027 39000 Term Bonds due April 1 , 2031 Date Principal Amount April 1 , 2028 $ 410 , 000 April 1 , 2029 430, 000 April 1 , 2030 4555000 April 1 , 2031 4359000 68 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES = Continued A. Primary Government - Continued Annual Debt Service Payments - Governmental Activities ' The annual debt service payments for bonds outstanding at September 30, 2002 , are as follows : Fiscal Year General Obligation Bonds General Obligation Bonds Spring Training Facility Bonds ' Ending 1995 Series 2001 Series 2001 Series September 30, Principal Interest Principal Interest Principal Interest ' 2003 $ 970 000 $ 455,435 $ 595,000 $ 386 967 $ 4%000 $ 770J27 ' 2004 1 ,0151000 410,815 610,000 369, 118 4759000 754,028 2005 11070,000 363 , 110 630,000 3509817 490,000 7379402 ' 2006 1 , 120,000 311 ,750 650,000 3319918 5059000 721 ,233 2007 1 , 180,000 255,750 670,000 3123417 5209000 704,062 2008-2012 3 ,935 ,000 4009250 31745,000 1 , 194,083 2,9255000 352045463 j2013-2017 - - 39620,000 3929058 39620,000 294925470 2018-2022 - - - - 399459000 194439575 ' 2023-2027 - - - - 1 ,780,000 7085250 2028-2031 - - - - 197309000 2189750 ' Total $ 912909000 $ 2, 197, 110 $ 10,5209000 $ 393379378 $ 1694505000 $ 11 ,754,360 ' 69 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued B . Discretely Presented Component Unit Housing Authority Revenue Bonds On April 1 , 1986 , August 23 , 1988 , and July 16 , 1991 , the Housing Authority adopted resolutions authorizing the issuance of revenue bonds payable to the U . S . Department of Agriculture , Farmers Home Administration, for the purpose of financing a part of the cost of acquiring, erecting and constructing low-rent, multi -family housing facilities (Victory Park Apartments - Phase I and Phase II and Orangewood Park Apartments) , includ- ing the repayment of certain notes payable to the State of Florida for the acquisition of land . The bond and interest thereon are payable solely from and collateralized by a prior lien upon and a pledge of the gross revenues to be derived from the projects . The revenue bond resolution provides for the following : Bonds Issued - The revenue bond obligation consists of. Original Revenue Outstanding at Interest Bond September 30 , Description Rates and Date Commitment 2002 Indian River County 1 % per annum on HousingAuthority the unpaid balance Revenue Bonds : payable September 1 each year Victory Park, Phase I $ 19908 ,000 $ 1111800 Victory Park, Phase II 19908 , 000 1 , 1789000 Orangewood Park Apartments 2 ,006 ,400 134245400 $ 5 , 822 ,400 $ 3 , 720,400 Less : Current portion 1829000 Long-term Portion $ 39538 ,400 Optional Redemption - Each revenue bond is redeemable at the option of the Housing Authority at par plus accrued interest and plus a premium ranging between 0% and 5 % depending on the year of redemption and the holder of the bond at the time of redemption. The Housing Authority may redeem , in whole or in part, at any time , the principal portion of each revenue bond on any interest payment date , at the price of par plus accrued interest, without premium if the bond is held by the U. S . Department of Agriculture , Farmers Home Administration. 70 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued B . Discretely Presented Component Unit - Continued Annual Debt Service Payments - Housing Authority ' The annual debt service payments for bonds outstanding at September 30 , 2002 , are as follows : Fiscal Year ' Ending Payment September 30 , Amounts 2003 $ 219,204 2004 219 , 384 2005 219 , 544 2006 219 , 684 2007 2193804 2006- 2012 1 ,095 ,400 ' 2013 - 2017 1 ,097 , 070 2018 - 2022 736 , 030 2023 75 , 144 Total 4 , 101 ,264 Less : Amount representing interest 3809864 Total principal 3 , 7209400 Less : Current portion 1829000 Total $ 3 , 538 ,400 C. Summary of Defeased Debt Outstanding SThe following outstanding revenue bonds are legally defeased . Since governmental obligations are held in escrow for the payment of principal and interest, the bonds are not liabilities of the County. Outstanding Retired Outstanding at During at September 30, Fiscal Year September 30 , 2001 2002 2002 ' Capital Improvement Revenue Bonds : Series 1980 $ 205 , 000 $ 17500 $ 2 , 5209000 Refunding Revenue Bonds : Series 1992 $ 29875 , 000 $ 6609000 $ 252155000 t71 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued D. Capital Leases and Notes Payable Governmental Activities The County has entered into several lease-purchase agreements to purchase various types of equipment and furniture with lease terms varying from 24-60 months . The following is a schedule of future minimum lease payments under capital leases , together with the present value of the net minimum lease payments, as of September 30, 2002 : Board of Year Ending County Tax September 30 , Commissioners Collector Total 2003 $ 300, 199 $ 709586 $ 3705785 2004 203 , 535 525244 255 , 779 2005 - 525244 523244 2006 - 523244 52 ,244 2007 - 52 ,245 521245 Thereafter - 395183 39, 183 Total Minimum Lease Payments 503 , 734 318 , 746 8229480 Less : Amounts representing interest 32 , 546 35 , 925 68 ,471 Present Value of Net MinimumLease Payments $ 471 , 188 $ 2825821 $ 754,009 The following is an analysis of the leased property under capital leases : Capitalized Cost Board of County Tax Type of Property Commissioners Collector Total Computer equipment $ - $ 5135961 $ 5139961 Firetrucks 1 , 310, 055 - 1 , 3103055 Total $ 19310, 055 $ 513 , 961 $ 15824 , 016 Monthly payments for the computer equipment leases are made by the General Fund. Annual payments for the firetruck leases are made by the Emergency Services District Fund. 72 1 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 12 - LONG-TERM LIABILITIES - Continued ' E. Changes in Lon -term Liabilities g g jLong-term liability activity for the year ended September 30, 2002 , was as follows : Beginning Ending Due Within Balance Additions Retirements Balance One Year Governmental Activities : Bonds payable : General Obligation Bonds - 1995 Series $ 1092152000 $ - $ (9252000 ) $ 91290,000 $ 9709000 General Obligation Bonds - 2001 Series 11 , 000 , 000 (4802000 ) 10 , 520, 000 5953000 Spring Training Facility Revenue Bonds ' - Series 1993 16 , 810 ,000 - (360, 000 ) 16 ,4503000 460 , 000 Total bonds payable 27 , 025 , 000 11 , 000 , 000 ( 157659000 ) 3672609000 23025 , 000 Other liabilities : Compensated absences 32373 ,554 418665248 (4 , 601 , 686) 336382116 3353000 Capital leases 9437210 275 , 000 (464 , 201 ) 7545009 336 , 557 Total other liabilities 4, 3161764 5 , 141 , 248 (55065 , 887) 413927125 671 , 557 Governmental activities long-term liabilities $ 31 , 3417764 $ 165141 , 248 $ (658305887 ) $ 40 , 652 , 125 $ 21696 , 557 Business -type Activities : Bonds payable : Recreational Refunding Revenue Bonds - Series 1993 $ 7 , 4702000 $ - $ (360, 000) $ 71110, 000 $ 37500 Water & Sewer Refunding Revenue Bonds - Series 1993A 403535 ,000 - (960 , 000 ) 391575 , 000 1700500 Water & Sewer Revenue Bonds - Series 1996 351680 , 000 (7309000 ) 3459503000 76000 8356857000 - (2 ,0505000 ) 81 , 6355000 2 , 1405000 rLess : Unamortized bonds discount (2 , 5501175 ) - 113 , 130 (214373045 ) - Totals bonds payable 81 , 134 , 825 - ( 1 , 936 , 870) 79 , 197 , 955 25140 , 000 ' Other liabilities : Compensated absences 497 , 137 100, 349 5973486 10000 Capital leases 84 ,981 - (84 , 981 ) Total other liabilities 582 , 118 100 , 349 ( 84 , 981 ) 597 , 486 100 , 000 Business -type activities long-term liabilities $ 815716 ,943 $ 1005349 $ (2 , 021 , 851 ) $ 79 , 795 , 441 $ 25240 , 000 73 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 , NOTE 12 - LONG-TERM LIABILITIES - Continued F. Conduit Debt Obligations From 1986 until 1999, Indian River County issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition, construction and equipping of industrial and commercial facilities deemed to be in the public interest. These facilities included a nursing home , an expanded processing facility, a manufacturing facility, and an educational facility, for a total of four series of Industrial Revenue Bonds . The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans . Upon repayment of the bonds , ownership of the acquired facilities transfers to the private- sector entity served by the bond issuance . Neither the County, the State, nor any political subdivision thereof is obligated in any mannerfor repayment ofthe bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Original Principal Bond Issue Outstandine Year Bonds and Project Description $ 185000, 000 $ 181000, 000 1999 St. Edward ' s School , Inc . — Upper School educational facilities 6,025 ,000 4,812,574 1997 Hetra Computer & Communications Industries , Inc . (XL Vision, Inc . ) 62 , 000 sq . ft . manufacturing facility 4,8003000 1 ,800,000 1986 Florida Convalescent Centers , Inc . — 91 -bed skilled and intermediate care nursing home 4,080,000 2,400,000 1997 Ocean Spray Cranberries , Inc . — expansion of 23 , 000 sq . ft. processing facility Total $ 275012,574 74 iIndian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 13 - PROVISION FOR CLOSURE COSTS The SWDD annually obtains updated and revised estimates of total future closure and post-closure costs from I ts consulting engineers . The provision for closure costs reported in the financial statements as operating ex- pense 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 attributable to the currently active landfill areas ( Seg- ment II, C & D) are approximately $ 3 . 55 million. These costs will be recognized in future periods as the remaining capacity is filled. This landfill area is expected to close in three phases . The first phase was closed in 1998 , the second phase is scheduled in the year 2005 , and the third phase in the year 2008 . To date , 64% of the Segment 11 and 58 % of the C & D landfill capacities have been filled. 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, 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 , and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time , the SWDD is making annual deposits to a closure and post-closure cost account to provide for the financing of future closure -related expenditures . The balance in the account for inactive and active landfill areas as of September 30 , 2002 was $6 , 775 , 168 . rNOTE 14 - DEFINED BENEFIT PENSION PLANS ' A. Florida Retirement System Plan Description : The County ' s employees , except certain firefighters , participate in the Florida Retirement ' System (FRS ) , a cost- sharing multiple-employer public employee retirement system , administered by the Florida Department of Administration . The FRS is noncontributory for all members ; all contributions are made by the employer . The FRS provides for vesting of benefits after six years of creditable service . Normal retirement ' benefits are available to employees who retire at or after age 62 with six or more years of service . Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age . Retirement benefits are based on age , average compensation, and years -of- service credit where average compensation is computed as the average of an individual ' s five highest years of earn- ings . Florida Statutes Chapter 121 , as may be amended from time to time by the state legislature , determines contri - bution 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 in- formation. That report may be obtained by writing to the Department of Administration, Division of Retire - ment, Cedars Executive Center, Building C , 2639 North Monroe Street, Tallahassee , Florida 32399 - 1560 . 75 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 14 - DEFINED BENEFIT PENSION PLANS - Continued A. 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 , 2002 , as follows (contribution rates are in agreement with the actuarially determined rates) : 10/ 1 /01 7/ 1 /02 to 6/30/02 to 9/30/02 Regular Class - Members not qualifying for other classes . 7 . 30% 5 . 76% Senior Management Service Class - Members of senior management who do not elect the optional annuity management program . 9 . 28 % 6 . 06% Special Risk Class - Members employed as law enforcement officers, firefighters , or correctional officers and meet the criteria set to qualify for this class . 18 . 44% 16 , 01 % Special Risk Administrative Support Class - Special risk members who are transferred or reassigned to non-special risk and meet the criteria. 9 . 83 % 6 . 56% Elected County Officer' s Class - Certain elected county officials . 15 . 14% 11 . 86% Deferred Retirement Option Program Members who are eligible for normal retirement that have elected to participate in the deferred retirement option program . 12 . 67% 9 , 11 % Contributions to the FRS for the fiscal year ended September 30, 2002 , were equal to 11 .47% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2000, 2001 , and 2002 , were $6,465 ,882 , $6,391 ,466 and $6 ,068 , 537 respectively, which are equal to 100% ofthe required contribution for each year. 76 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 14 - DEFINED BENEFIT PENSION PLANS - Continued ' B . Firefighters Defined Benefit Pension Plan In October 1981 , the South Indian River County Fire District took over the operations of the City of Vero Beach, Florida' s Fire Department . Full-time firefighters were given the option of joining the Florida Retire - ment System (FRS ) or remaining in the City ' s plan . Twenty full -time firefighters and all of the volunteers elected to remain in the City ' s plan . Those who joined the FRS received refunds of their contributions from the City ' s plan . Indian River County contributes to the City ' s plan, on behalf of eligible firefighters , which is a single -employer defined benefit pension plan . The City administers the plan, and by statute , retains fiduciary responsibility for this plan . ' The City accounts for the plan in a pension trust fund . The City ' s Comprehensive Annual Financial Report (CAFR) includes the required financial statements and required supplementary information for the plan . A copy of the City ' s CAFR may be obtained from the Finance Department of the City of Vero Beach, 1053 20th Place , Vero Beach, FL 32960 . Funding Policy and Annual Pension Cost: The City establishes and may amend the contribution requirements 1 of plan members and the City in accordance with Florida Statutes . Indian River County ' s annual pension cost for the most recent actuarial valuation report, as of 2002 , and related information for the plan is as follows : ' Contribution rates : Employee 7% of Compensation State Premium Tax Refund Employer None Required 1 Annual Pension Cost $ 329 , 380 Contributions made $ 246 , 373 Actuarial valuation date October 1 , 2002 1 Actuarial cost method Aggregate Amortization method N/A Remaining amortization period 25 years Asset valuation method 5 year smoothed market Actuarial assumptions : Investment rate of return 8 % Projected salary increases 4% Inflation rate 4% ' Post retirement benefit increases N/A Cost of living increase 2% ' 77 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 14 - DEFINED BENEFIT PENSION PLANS — Continued B . Firefighters Defined Benefit Pension Plan — Continued Funding Progress : Actuarial Actuarial Accrued URAL As Actuarial Value of Liability (AAL) Unfunded Funded Covered of Covered Valuation Assets Frozen Entry Age AAL (URAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c ) (b-a)/c 10/01 /00 $ 7,202,770 $ 7,593 ,964 $ 391 , 194 94 . 8% $ 1649201 238 . 2% 10/01 /01 $ 7,3129430 $ 79876,933 $ 5649503 92 . 8 % $ 865791 650. 4% 10/01 /02 $ 699939181 $ 7,982,786 $ 989,605 87 . 6% $ 63 ,483 1558 . 9% Annual Pension Cost And Net Pension Obligation Fiscal Year Ending September 30 : 2002 2001 2000 A . Annual Required Contribution (ARC) * $ 242, 148 $ 234,915 $ - B . Interest on Net Pension Obligation (NPO) (23 , 103 ) (38,216) (35 ,359) C . Adjustment to ARC ( 1109335) (2293101 ) (2435597) D . Annual Pension Cost (A+B -C) 329,380 425 ,800 208,238 E . Actual Contributions 246,373 2361893 243 ,951 F. NPO at beginning of year (288,790) (4779697) (441 ,984) G Increase (decrease) in NPO (D-E) 83 ,007 1885907 (359713 ) H . NPO at end of year (F+G) (2059783 ) (288, 790) (477,697) * Includes expected State contribution . Three- Year Trend Information : Percentage Annual Pension Cost of APC Net Pension Year Ending APC Contributed Oblijzation September 30, 2000 $208,238 117% $(477,697) September 30 , 2001 $4259800 56% $(288,790) September 30, 2002 $329,380 75 % $(205 , 783 ) 78 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 15 - OPERATING LEASES The County has entered into noncancelable operating leases, both as lessor and lessee . Lease terms vary from 2 to 30 years . Lease revenues totaled $233 ,429 and lease expenditures totaled $ 352 , 106 for the year ended September 30 , 2002 . 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 Arm i t 2003 $ 2635718 2004 1523476 2005 1529476 1 2006 959800 2007 589150 2008- 2012 979000 ' 2013 - 2017 55800 2018- 2022 1 , 000 Total fit= minm un lease receipts : $ 826,420 The property being leased is included in the statement of net assets governmental activities and business-type activities ' columns and has a carrying value of $ 7 , 680 , 722 . For fiscal year 2002 , total depreciation expense for depreciable property being leased is $ 435 ,972 . ' B . Future Minimum Lease Payments The following is a schedule , by years , of minimum future rentals to be paid by the County for noncancelable 1 operating leases as of September 30 : Year Amount 2003 $ 3735967 1 2004 2725788 2005 2639915 2006 194 , 436 2007 139 , 135 2008 - 2012 5805225 2013 - 2017 1745725 ' 2018 - 2022 27 , 405 Remaining 15 , 900 Total future minimum lease payments : $ 29042 , 496 ' 79 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 16 - FUND EQUITY A. Restricted Net Assets The County has established certain restrictions within the net assets section of the proprietary funds , Restricted net assets at September 30, 2002, consist of the following : Component Primary Government Unit Total Golf County Primary Housing Course Utilities Government Authority Restricted for debt service $ 31 ,250 $ 1472083 $ 1789333 $ 44, 761 Restricted for renewal and rep lacement - - - 761 , 704 Restricted for capital projects - 317000, 818 31 ,000, 818 - Restricted for insurance and property tax - - - 512378 Total $ 312250 $ 31 , 147, 901 $ 3111792151 $ 8573843 B . Reserved Fund Balances The County has established certain reserves within the fund equity section of the governmental funds : Re - served fund balances at September 30, 2002 , consist of the following : Special Revenue Funds : Reserved for Advances to Other Funds : Secondary Roads Construction $ 6259000 Total $ 6259000 Debt Service Funds : Reserved for Debt Service : Land Acquisition Bonds $ 150865536 Spring Training Facility Revenue Bonds 4539651 Total $ 155409187 80 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 16 - FUND EQUITY - Continued B . Reserved Fund Balances - Continued ' Capital Projects Funds : Reserved for Capital Projects : ' Dodgertown Facility $ 4, 9985428 Dodgertown Capital Reserve 25030 , 996 Homeless Assistance Center 228 , 702 ' Fellsmere Old School 629508 Optional Sales Tax 2750293238 Gifford Road Construction 35366 , 723 Shooting Range 1311277 Total $ 3798479872 NOTE 17 - FUND EQUITY DEFICIT The following fund had a deficit in fund balance at September 30, 2002 : Fund Deficit LibraryBe Fund Bequests $ 2215221 The deficit for the Library Bequests Fund will be eliminated by the proceeds of the private donations in the fiscal ' year 2003 . I 81 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 18 - RISK MANAGEMENT General Liability, Property and Worker ' s Compensation 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 . During a previous fiscal year, the County established a fund to account for risk management called the Self Insurance Fund (an internal service fund) . The risk management program began on November 1 , 1988 , and has provided coverage for the County as follows : 11 /1 /88 10/1 /89- 10/1 /92- 10/1 /94- 10/1 /89 10/1 /92 10/1 /94 Present Worker ' s Compensation $ 100, 000 $ 1003000 $ 1505000 $ 1503000 General Liability 1003000 500, 000 200 , 000 200, 000 Auto Liability 100, 000 500,000 1005000 200, 000 Property Damage 100 , 000 109000 500-255000 500-25 , 000 Errors or Omissions 259000 255000 200 , 000 200 ,000 Annual Aggregate 600 , 000 1 , 000 , 000 190005000 - 1 , 000 ,000 The County purchases commercial insurance for claims in excess of coverage provided by the fund and for all other risks of loss . The County has not incurred any settlements in excess of the insurance coverage in the past three fiscal years . All departments of the County participate in the program . Payments are made by various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current year claims . The County is also self insured for medical claims covering employees and their eligible dependents . As required by Section 112 . 081 , Florida Statutes , retirees and their eligible dependents are provided the same health care coverage as is offered to active employees , however, the retirees are responsible for payment of the premiums . Medical claims are paid from premiums contributed by employees , retirees and by the County . Premiums and contributions are determined by projected claims based on historical and actuarial experience . The self insurance plan assumes all risk for claims up to $ 125 , 000 per individual , per year, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2000, 2001 , and 2002 fiscal years . The claims liability of$4,261 ,000 reported at September 30, 2002, 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 . 82 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2002 NOTE 18 - RISK MANAGEMENT - Continued General Liability, Property and Worker' s Compensation - Continued Changes in the fund ' s claims liability amount during the current and prior fiscal years are as follows : Current Year ' Balance at Claims Balance Fiscal Year and Changes Claim at Fiscal ' Beginning - in Estimates Payments Year End 1988 - 1989 $ $ 504 , 167 $ ( 889917 ) $ 4159250 1989 - 1990 4159250 866 , 250 ( 1679553 ) 191135947 ' 1990 - 1991 191139947 496829363 (394675596 ) 29328 , 714 1991 - 1992 293289714 394269954 (354665903 ) 2 , 2889765 1992 - 1993 29288 , 765 4 , 4749994 (492555815 ) 295079944 ' 1993 - 1994 295079944 498259081 (493989521 ) 2 , 934 , 504 1994 - 1995 29934 , 504 412489626 (498305926 ) 293529204 1995 - 1996 2 , 3529204 5 , 201 , 050 (459909111 ) 2 , 5639143 ' 1996 - 1997 295639143 592269091 ( 5 , 461 , 151 ) 2 , 3289083 1997 - 1998 2 , 3289083 695419439 (55917 , 522 ) 2 , 952 , 000 1998 - 1999 299529000 6 , 5989493 (695175493 ) 39033 , 000 1999 - 2000 390339000 6 , 4019416 (6 , 4079416 ) 390279000 2000 - 2001 350279000 893225143 ( 7 , 6609143 ) 3 , 6899000 2001 - 2002 396899000 998509070 (992785070 ) 41261 , 000 Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially deter- mined and at September 30 , 2002 , retained earnings of $2,251 , 192 has been designated for this purpose . The County has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30 , 2002 , the ' undiscounted liability was the greater of the two amounts . The discount rate used in the calculation was four percent. ' NOTE 19 - COMMITMENTS AND CONTINGENCIES A. Litigation ' Various suits and claims are currently pending against the County. It is impossible for the County to accu- rately quantify the exposure involved given the jury ' s latitude in assessing compensatory and punitive dam - ages , 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 . i83 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued B . Contracts and Other Commitments The County has various contracts and commitments outstanding at September 30, 2002 . In the General Fund, con- tracts are for the Health DepartmentAir Pre-conditioning, Re-Roofing Projects and the Wireless Master Plan. In the Special Revenue Funds, contracts are for the Beach Preservation Plan, Kings Highway Phase Il Improvements and various road paving and drainage projects. In the Capital Projects Funds, contracts are for the Main Library and North County Library Additions, the North County Regional Park, Dodgertown Training Facility, Jungle Trail/Pelican Island Improvements and various stormwater projects. In the Enterprise Funds , contracts are for the South County Reverse Osmosis Plant Membrane Replacement, Solid Waste Disposal District Scalehouse Improvements, Sebastian Water Expansion - Phase 31), Wetland Mitigation Site Maintenance, Hazardous Waste Collection and various other water and sewer projects . A summary of these projects at September 30, 2002 , is as follows : Special Capital General Revenue Proiects Enterprise Total Total contract price $ 1869333 $ 15 ,659241 $ 23 ,3459238 $ 17,582,579 $ 569773 ,391 Total paid as of September 30, 2002 111 , 126 4,239, 192 1396145868 95542,054 279507,240 Remaining obligations at September 30, 2002 $ 759207 $ 11 ,420,049 $ 91730,370 $ 89040,525 $ 292669151 In addition to the contractual commitments above, the County has committed $7,000,000 for the construction of a Public Works/Fleet facility. 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. NOTE 20 - SUBSEQUENT EVENTS On February 5 , 2003 , the County purchased the Lost Tree Islands for $ 15 , 105 ,000 . The County used $ 12 , 375 , 000 of General Obligation Bonds, Series 2001 , funds and an interfund loan of $2 , 730,000 . 84 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 1 1 1 1 1 1 1 1 1 1 1 ' 85 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Road Improvement Fees - To account for the receipt of traffic impact fees . Funds are used for the upgrading and construction of roads and bridges . Court Facilities- To account for expenditures for improvements made to court facilities . Financing is provided by addi - tional fees collected by the court system . Section 8 Rental Assistance- To account for the provision of rental assistance for low income housing . Financing is provided by grants from the U . S . Department of Housing and Urban Development, Special Law Enforcement- To account for the expenditures of providing law enforcement equipment. Financing is provided by confiscation of monies and property in accordance with Section 932 . 704 of the Florida Statutes . Parks Development- To account for expenditures for improvements made to County parks . Financing is provided by the sale of surplus County property. 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 . 86 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 . Metropolitan Planning Organization- To account for expenditures incurred for planning community transportation in the County. Financing ' is provided by grants . Land Acquisition- To account for expenditures incurred in the ' purchase of environmentally sensitive land . Financing is provided by bond proceeds and state grants . Multi-Jurisdictional Task Force - To account for expenditures incurred in connection with the cooperative drug enforcement task force established by the County, the City of Vero Beach and the City of Sebastian . Funds are provided by ' grants and program generated income . Native Uplands Land Acquisition- To account for expenditures related to the ' acquisition of native habitat preserve areas and for the management of such lands . Funding is provided by developers of property who pay to mitigate ' native uplands destruction where native upland plant communities will be destroyed . ' Beach Restoration- To account for the expenditure of funds to preserve and improve County beaches . Funds are provided ' by the levy of a local option tourist development tax . ' Vero Lake Estates - To account for the expenditure of funds to improve roads in the Vero Lake Estates subdivision . Funds are provided by the levying of special assessments . ' 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 . ' 87 Library Bequests- To account for bequests to the Indian River County Library to be used for improvements to the Main and North County Libraries , East Gifford Stormwater- To account for expenditures of funds for stormwater improvements in East Gifford Stormwater Watershed. Funds are provided by non-ad valorem taxes Clerk Special Revenue- To account for the proceeds from a special recording fee to be used for modernizing the Clerk of the Circuit Courts ' public records system . Sheriff Special Revenue- To account for the expenditure of grants , fines and restricted revenues received by the Sheriff. Street Lighting Districts- To account for the costs of providing street lights . Financing is provided by the levying of special assessments . . Disabled Access Programs- To account for fines assessed against individuals for illegal use of handicapped parking spaces . Federal/State Grants - To account for revenues and expenditures of various grants from State and Federal agencies . DEBT SERVICE FUNDS Spring Training Facility Bonds- To account for the accumulation of State assistance and tourist tax monies pledged to pay the principal , interest, and fiscal charges on the Spring Training Facility Bonds . Land Acquisition Bonds - To account for the accumulation of ad valorem taxes to pay the principal , interest and fiscal charges related to the Land Acquisition Bonds . 88 ' CAPITAL PROJECTS FUNDS Dodgertown Capital Reserve - To provide additional improvements to the ' Dodgertown Spring Training Facility. The City of Vero Beach contributed $ 1 ,400 , 000 and the County ' contributed $600 , 000 . Gifford Road Construction- To account for expenditures incurred to improve the ' Gifford area . Financing is provided by a transfer from the Secondary Roads Construction Special Revenue Fund Shooting Range - To account for expenditures incurred to construct a public shooting range . Financing is provided by the ' Florida Game and Freshwater Fish Commission and transfers from other funds . ' Dodgertown Facility- To account for expenditures incurred to acquire and refurbish the Dodgertown Spring Training Facility. Financing is provided by proceeds from the Spring ' Training Facility Bond issue . ' Homeless Assistance Center- To account for expenditures incurred in the renova- tion and expansion of the Homeless Assistance Center. Financing is provided by the Department of Housing and Urban Development and transfers from other funds . ' Fellsmere Old School - To account for expenditures incurred by the restoration of the Fellsmere Old School . Financing is provided by the Department of Environmental Protection and the Department of State . MAJOR CAPITAL PROJECTS FUND Optional Sales Tax- To account for revenues generated by the local ' option 1 cent sales tax . Monies are used for various capital projects . ' 89 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2002 Special Revenue Section Road 8 Improvement Court Rental ASSETS Fees Facilities Assistance Cash and cash equivalents $ 19 , 566 , 790 $ 11 ,452 $ 1333000 Accounts receivable _ Due from other funds 327 Due from other governments - 1713404 Total Assets $ 199566 ,790 $ 182 , 856 $ 1339327 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 106 196 $ $ 1 ,680 Retainage payable 449127 _ Due to other funds - 115 , 000 Due to other governments - - 61 , 579 Accrued interest payable _ _ Deferred revenues Total Liabilities 150 ,323 115 ,000 63 ,259 Fund Equity: Fund balances : Unreserved (Deficit) 19 416 467 67, 856 705068 Reserved for debt service _ Reserved for capital projects _ Total Fund Equity 19 416 467 67, 856 70,068 Total Liabilities and Fund Equity $ 19,5669790 $ 182 , 856 $ 133 ,327 Continued 90 Special Revenue Tree Special Law Parks Ordinance Tourist 911 ' Enforcement Development Fines Development Surcharge $ 95 , 653 $ 1795130 $ 1399800 $ 1 , 351 ,686 $ 4759063 41 ,207 10 ,250 $ 95 , 653 $ 179 , 130 $ 13900 $ 1 , 351 ,686 $ 5265520 24 ,388 $ 215343 249388 215343 957653 179 , 130 139 , 800 193275298 505 , 177 959653 179 , 130 1399800 173275298 5053177 $ 959653 $ 1795130 $ 1395800 $ 153519686 $ 5265520 ' 91 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30 , 2002 Special Revenue State Housing Metropolitan Initiatives Planning Drug Abuse Partnership Organization ASSETS Cash and cash equivalents $ 84 ,600 $ 1 ,058 , 086 $ 2 ,060 Accounts receivable _ _ Due from other funds - Due from other governments 13321 88 ,029 57, 109 Total Assets $ 855921 $ 19146 , 115 $ 59 , 169 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 32 , 731 $ 25 , 894 $ 42900 Retainage payable - - 6 , 645 Due to other funds - - 10,000 Due to other governments _ _ Accrued interest payable Deferred revenues - Total Liabilities 32 , 731 25 , 894 21 , 545 Fund Equity : Fund balances : Unreserved (Deficit) 53 , 190 1 , 120,221 37, 624 Reserved for debt service Reserved for capital projects _ Total Fund Equity 532190 11120,221 37,624 Total Liabilities and Fund Equity $ 85 ,921 $ 1 , 146 , 115 $ 597169 Continued 92 E6 r r 1 r r r r Sib` SZ £ $ 8 £ b` £ SZ $ 8I6 L69 ` 9 $ £ £9 997 $ 66b` 85 $ ZI I ` 6L9 ` OI $ ' SIb SZ £ 590 817Z 69b 8 £ S S £ £ 9 99b LO £ bS 6ZI LL9 OI SIb` SZ £ 590 ` 8bZ 69b` 8 £ 949 ' £ £9 99b LO £ bS 6Z [ LL9 OI £L £ ` S - r Ebb 6SI Z6I ` b £ 86` I 000 ` S I Sb` LO I $ CLE $ 866' 19 $ - $ Z6I ` b $ E86 ' 1 Sib` SZ £ $ 8 £ b` £ 9Z $ 8I6 `L69 ` 9 $ £ £ 9 ` 99b ' $ 66b` 89 $ ZII ` 6L9 ` OI $ - 000 OSZ Ib8 b £9 Sib` SZ £ $ £961 $ 8I6 ` L69 ` 9 $ £ £9499b $ 66b489 $ ZII ` 6L9 ` 01 $ wea �oad sa; e;sg uol; eao;sag uol;Ism ad aaao3 alses uol; isin ad r ; uawano.idwI allerl oaaA gaeag pueZ leuol;alpslanp pUe'I 2ul; eog spueldn -I;InW eplao13 anljel\I r anuana I 1 I 1 . r r Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30 , 2002 Special Revenue Clerk Library East Gifford Special Bequests Stormwater Revenue ASSETS Cash and cash equivalents $ 3 , 779 $ 17325 $ 846,212 Accounts receivable Due from other funds - 14 - Due from other governments Total Assets $ 3 ,779 $ 1 ,339 $ 846 ,212 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ - $ _ $ 72 Retainage payable Due to other funds 2259000 - Due to other governments Accrued interest payable Deferred revenues Total Liabilities 2257000 - 72 Fund Equity: Fund balances : Unreserved (Deficit) (2215221 ) 1 , 339 846 , 140 Reserved for debt service Reserved for capital projects Total Fund Equity (221 ,221 ) 19339 8465140 Total Liabilities and Fund Equity $ 31779 $ 11339 $ 8469212 Continued 94 ' Debt Special Revenue Service ' Sheriff Street Disabled Spring Special Lighting Access Federal/State Training ' Revenue Districts Programs Grants Facility Bonds $ 19094 ,976 $ 3973922 $ 319180 $ 185736 $ 810 ,006 109245 - - - ' = 19863 = - - 7 , 893 28 , 709 $ 1 , 105 ,221 $ 399 , 785 $ 317180 $ 26 , 629 $ 838 , 715 $ 9 , 598 $ 13 ,028 $ - $ 24 , 692 $ - = = 3855064 9 , 598 139028 - 249692 3859064 r 19095 ,623 386 ,757 31 , 180 12937 - = 4535651 1 ,095 ,623 3867757 319180 1 ,937 453 ,651 ' $ 1 , 105 ,221 $ 3995785 $ 31 , 180 $ 26 ,629 $ 838 , 715 ' 95 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2002 Debt Service Capital Projects y ry Land Dodgertown Acquisition Capital Gifford Road Bonds Reserve Construction ASSETS Cash and cash equivalents $ 130685986 $ 220303996 $ 3 ,3667723 Accounts receivable Due from other funds 175550 Due from other governments Total Assets $ 11086 ,536 $ 2 ,030 ,996 $ 35366 ,723 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ Retainage payable Due to other funds Due to other governments Accrued interest payable Deferred revenues Total Liabilities Fund Equity : Fund balances : Unreserved (Deficit) Reserved for debt service 110867536 Reserved for capital projects - 210309996 3 , 3661723 Total Fund Equity 190863536 2 .030 . 996 3 . 3664723 Total Liabilities and Fund Equity $ 11086, 536 $ 2,030, 996 $ 3 ,366 , 723 Continued 96 Capital Projects Homeless Total Nonmajor Shooting Dodgertown Assistance Fellsmere Governmental Range Facility Center Old School Funds $ 131 ,743 $ 6 ,0035843 $ 1959232 $ 125 ,008 $ 56 ,4535527 52 ,413 209268 36 ,444 6515159 $ 1313743 $ 65003 , 843 $ 231 ,676 $ 125 ,008 $ 57 , 1771367 $ 466 $ 848 , 727 $ 29974 $ 17 ,260 $ 19192 ,495 1565688 314 , 911 355 ,000 - 61 , 579 = = - 3859064 45 ,240 45 ,240 466 1 ,0055415 25974 62 , 500 233545289 = � = 425464 ,257 1 , 540 , 187 131 ,277 419985428 2289702 62 , 508 10 , 818 ,634 131 ,277 41998 ,428 228 , 702 62 , 508 5458235078 ' $ 131 , 743 $ 65003 , 843 $ 231 ,676 $ 125 ,008 $ 5751773367 ' 97 Indian River County, Florida Combining Statement of Revenues , Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2002 Special Revenue Section Road 8 Improvement Court Rental Fees Facilities Assistance REVENUES Taxes $ _ $ _ $ _ Intergovernmental - 417 ,904 1 , 1979571 Charges for services - 93 ,921 1 , 172 Fines and forfeitures Special assessments 359729717 Interest 6155484 1 ,037 21279 Miscellaneous 18 ,351 Total revenues 4 ,6061552 5129862 152013022 EXPENDITURES Current: General government Public safety Physical environment Transportation 1 , 820 , 762 Human services - - 1 , 182 ,332 Culture/Recreation Court related - 331 , 802 - Debt service : Principal Interest Capital projects Total expenditures 1 , 820 ,762 331 , 802 19182 , 332 Excess of Revenues Over (Under) Expenditures 21785 , 790 181 ,060 1800 OTHER FINANCING SOURCES Transfers in Transfers out - (54 ,000) Debt proceeds Total other financing sources (uses) - ( 545000) - Net change in fund balances 2 , 785 , 790 127 ,060 18 ,690 Fund balances at beginning of year 161630 ,677 (599204) 51 ,378 Fund balances at end of year $ 19,416 ,467 $ 67 , 856 $ 70 , 068 Continued 98 w Special Revenue Tree ' Special Law Parks Ordinance Tourist 911 Enforcement Development Fines Development Surcharge 531 ,350 $ 5109982 349320 1145915 249942 - 10 ,450 - - ' 3 ,081 6 ,235 5 ,335 43 , 824 13 ,302 5 ,000 - ' 625343 69235 159785 5805174 639 , 199 - - - - 2975973 68 ,641 - - - 323444 253000 5599469 - ' 685641 325444 25 ,000 559,469 2973973 ' (61298 ) (269209) (91215 ) 204705 341 ,226 ( 18 ,998 ) - - - ( 155 ,295 ) ( 18 ,998 ) - - - ( 1555295 ) (259296 ) (26 ,209 ) (9 ,215 ) 209705 1855931 ' 120 , 949 205 ,339 149 ,015 1 ,3065593 3199246 $ 95 ,653 $ 1799130 $ 139 , 800 $ 113275298 $ 505 , 177 ' 99 Indian River County, Florida Combining Statement of Revenues , Expenditures and Changes in . Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2002 Special Revenue Ship Metropolitan Drug Low Income Planning Abuse Housing Organization REVENUES Taxes $ _ $ _ $ _ Intergovernmental 1557911 1 ,2029206 260 , 720 Charges for services - 180 , 158 34 Fines and forfeitures 7,681 Special assessments Interest 11341 28 ,041 27839 Miscellaneous - 11914 Total revenues 164 ,933 1 ,412 ,319 263 ,593 EXPENDITURES Current : General government - - 279 ,601 Public safety 110 838 Physical environment Transportation Human services 81 ,464 996 ,624 - Culture/Recreation Court related Debt service : Principal Interest Capital projects Total expenditures 192 ,302 996 ,624 279 ,601 Excess of revenues over (under) expenditures (27, 369) 4159695 ( 16 ,008) OTHER FINANCING SOURCES Transfers in 39 , 100 Transfers out Debt proceeds Total other financing sources (uses) 39 , 100 Net change in fund balances 11 ,731 415 ,695 ( 16 ,008 ) Fund balances at beginning of year 41 ,459 7049526 537632 Fund balances at end of year $ 53 , 190 $ 1 , 120,221 $ 377624 Continued 100 1 Special Revenue Native Florida Multi- Uplands Boating Land Jurisdictional Land Beach Vero Lake Improvement Acquisition Task Force Acquisition Restoration Estates Program 531 ,349 $ 1 , 136 $ - 9 % 872 8665808 1825923 649314 - - - ' � 28 , 502 - - - 759347 1929946 11942 145437 1739358 39301 9 , 155 7479965 - - - - - 940 ,911 30 ,444 78 , 751 1 ,673 , 579 9465592 192 ,078 27 , 192 - - - - 1 , 1017887 - 3 , 799 � = 19028 , 171= 413 , 131 - 82 , 199 19101 , 887 27 , 192 31799 4139131 190285171 825199 ' ( 160 ,976 ) 39252 74 ,952 1 ,2605448 ( 81 , 579 ) 1099879 134009000 - ( 10 , 553 ) (29611 ) 11 ,000 , 000 - - - - - ' 115000 , 000 ( 109553 ) - 1 ,400 , 000 (23611 ) 10 , 8399024 (79301 ) 74 , 952 256603448 ( 843190) 1095879 ( 161 , 895 ) 61 ,608 39101 25878 ,021 3329255 215 , 536 $ 10 ,677 , 129 $ 549307 $ 466 , 633 $ 5 , 5381469 $ 248 , 065 $ 325 ,415 1 101 Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2002 Special Revenue Clerk Library East Gifford Special Bequests Stormwater Revenue REVENUES Taxes $ _ $ 3 $ _ Intergovernmental Charges for services - - 140 394 Fines and forfeitures Special assessments - 1 318 - Interest 13 , 774 30 15 ,621 Miscellaneous 23 ,004 Total revenues 36 ,778 1 ,351 1565015 EXPENDITURES Current: General government - - 29 796 Public safety Physical environment Transportation Human services Culture/Recreation 702 ,648 Court related Debt service : Principal Interest Capital projects Total expenditures 702 ,648 - 299796 Excess of revenues over (under) expenditures (6659870) 1 , 351 126,219 OTHER FINANCING SOURCES Transfers in Transfers out - ( 12) - Debt proceeds Total other financing sources (uses) - ( 12 ) _ Net change in fund balances (665 , 870) 1 ,339 126 ,219 Fund balances at beginning of year 444 ,649 - 719 ,921 Fund balances at end of year $ (221 ,221 ) $ 1 ,339 $ 846 , 140 Continued 102 Debt ' Special Revenue Service ' Sheriff Street Disabled Spring Special Lighting Access Federal/State Training Revenue Districts Programs Grants Facility Bonds $ - $ 4 ,030 $ 3475710 1419081 75893 8445506 2782195 287, 060 - 49960 = 165 , 123 19 ,200 135957 2 69 22 ,283 29220 - 265560 ' 7252536 185 ,330 41962 34 , 522 1 ,214 ,499 5235050 - 1549551 32 , 585 - 360 ,000 8469003 523 ,050 154 , 551 - 32 , 585 15206 ,003 ' 2029486 30 , 779 41962 1 , 937 8 ,496 ' 29 , 551 - 26 ,218 = = (6 , 137) 29 , 551 (65137) 265218 2323037 24 ,642 315180 15937 8 ,496 8635586 362 , 115 - - 445 , 155 $ 1 , 095 , 623 $ 3869757 $ 319180 $ 17937 $ 4535651 ' 103 Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2002 Debt Service Capital Projects Land Dodgertown Acquisition Capital Gifford Road Bonds Reserve Construction REVENUES Taxes $ 15581 , 362 $ _ $ _ Intergovernmental Charges for services Fines and forfeitures Special assessments Interest 76 ,559 30,020 1129482 Miscellaneous Total revenues 1 , 657 ,921 30 ,020 1129482 EXPENDITURES Current: General government Public safety Physical environment Transportation Human services Culture/Recreation Court related Debt service : Principal 1 ,405 ,000 Interest 7319454 Capital projects - - 10 649 Total expenditures 2 , 1361454 - 103649 Excess of revenues over (under) expenditures (478 , 533 ) 30,020 101 , 833 OTHER FINANCING SOURCES Transfers in Transfers out (442929) Debt proceeds Total other financing sources (Uses) (449929) - Net change in fund balances (523 ,462) 30, 020 101 , 833 Fund balances at beginning of year 116099998 2 ,000 ,976 3 ,264 , 890 Fund balances at end of year $ 1 ,0869536 $ 2 ,0305996 $ 3 , 3665723 Continued 104 Capital Projects Homeless Total Nonmajor Shooting Dodgertown Assistance Fellsmere Governmental Range Facility Center Old School Funds $ - $ - $ - $ - $ 3 , 5079922 = = 1365444 529052 69584 , 126 758 , 188 363 , 595 - - - 49214 , 505 ' 57271 141 ,481 3 ,663 3 , 139 11575 ,488 1405000 219481 9865495 55271 141 ,481 280 , 107 76 ,672 175990 , 319 = = = 6079370 729 , 721 1 , 105 ,686 3 , 003 ,484 ' = = 25293 , 005 1 , 814 , 891 331 , 802 - - - - 19765 ,000 1 , 577 ,457 44 , 035 2 , 1771830 759862 59 , 832 213689208 445035 211775830 759862 59 , 832 15 , 596 ,624 ( 38 ,764) (29036 ,349) 204 ,245 163840 21393 ,695 1 ,494 , 869 (292 , 535 ) 11 ,000 , 000 12 ,202 , 334 ' (38 , 764 ) (2 ,036 ,349) 204 ,245 165840 14 , 5965029 1705041 71034 , 777 249457 459668 40 ,2275049 $ 131 ,277 $ 419985428 $ 2285702 $ 625508 $ 5458235078 ' 105 Indian River County, Florida Budgetary Comparison Schedule Road Improvement Fees For the Year Ended September 30, 2002 Variance Final Actual Positive Budget Amount (Negative) REVENUES Special assessments $ 15565 , 000 $ 3 ,972 , 717 $ 29407 ,717 Interest 159 , 000 6155484 456 ,484 Miscellaneous 185351 18 ,351 Total revenues 1 , 724 , 000 416064552 21882 , 552 EXPENDITURES Transportation 113554 , 771 1 , 820, 762 997343009 Total expenditures 11 , 554 , 771 1 , 820, 762 9 , 7345009 Net change in fund balances (95830 , 771 ) 2 , 785 , 790 1256169561 Fund balances at beginning of year 91830 , 771 16,630 ,677 61799 ,906 Fund balances at end of year $ - $ 1954165467 $ 1994169467 106 Indian River County, Florida Budgetary Comparison Schedule Court Facilities For the Year Ended September 30 , 2002 Variance Final Actual Positive REVENUES Budget Amount (Negative) Intergovernmental $ 4175904 $ 4175904 $ - 1 Charges for services 679300 93 , 921 269621 Interest 15100 11037 (63 ) Total revenues 4869304 512 , 862 265558 EXPENDITURES Court related 5129044 331 , 802 180 ,242 Total expenditures 512 , 044 3319802 1809242 Excess of revenues over (under) expenditures (259740) 1819060 2069800 OTHER FINANCING SOURCES Transfers out (545000) ( 549000) - Total other financing sources (uses) (54 , 0000 (549000) - Net change in fund balances (799740) 1279060 2065800 Fund balances at beginning of g g year 795740 (599204) ( 1385944) rFund balances at end of year $ - $ 679856 $ 679856 i i 1 107 Indian River County, Florida Budgetary Comparison Schedule Section 8 Rental Assistance For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 19424 ,428 $ 1 , 197, 571 $ (2269857) Charges for services - 1 , 172 15172 Interest - 2, 279 29279 Total revenues 15424 ,428 152019022 (223 ,406) EXPENDITURES Human services 154249428 15182 , 332 2429096 Total expenditures 1 ,424 ,428 191825332 242 , 096 Net change in fund balances - 187690 183690 Fund balances at beginning of year - 519378 515378 Fund balances at end of year $ - $ 70 , 068 $ 70 , 068 108 Indian River County, Florida Budgetary Comparison Schedule 1 Special Law Enforcement For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 34 ,478 $ 349320 $ ( 158 ) Fines and forfeitures 539477 249942 (289535 ) Interest - 3 , 081 3 , 081 Total revenues 879955 629343 (25 , 612 ) EXPENDITURES Public safety 68 , 956 685641 315 Total expenditures 689956 689641 315 Excess of revenues over (under) expenditures 18 ,999 (6 ,298 ) (255297) OTHER FINANCING SOURCES Transfers out ( 185999) ( 189998 ) 1 Total other financing sources (uses) ( 18 , 999) ( 18 , 998 ) 1 Net change in fund balances - (259296) (25 ,296) Fund balances at beginning iof g g year - 1209949 1209949 rFund balances at end of year $ - $ 95 , 653 $ 95 , 653 109 Indian River County, Florida Budgetary Comparison Schedule Parks Development For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 69235 $ 69235 Total revenues - 6 , 235 64235 EXPENDITURES Culture/Recreation 65 ,000 329444 329556 Total expenditures 659000 32 ,444 329556 Net change in fund balances (65 ,000) (26 , 209) 389791 Fund balances at beginning of year 659000 2059339 140 , 339 Fund balances at end of year $ - $ 1799130 $ 179 , 130 110 Indian River County, Florida . tY� 1 Budgetary Comparison Schedule Tree Ordinance Fines For the Year Ended September 30 , 2002 Variance Final Actual Positive ' Budget Amounts (Negative) REVENUES Fines and forfeitures $ - $ 105450 $ 105450 Interest - 59335 5 , 335 Total revenues - 15 . 785 155785 ' EXPENDITURES Culture/Recreation 259000 25 , 000 - Total expenditures 25 , 000 259000 - Net change in fund balances (259000) (9 , 215 ) 159785 Fund balances at beginning of year 255000 149 , 015 124 , 015 Fund balances at end of year $ - $ 139 , 800 $ 139 , 800 1 1 111 Indian River County, Florida Budgetary Comparison Schedule Tourist Development For the Year Ended September 30, 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ 513 ,000 $ 531 , 350 $ 183350 Interest 505226 43 , 824 (63402) Miscellaneous - 5 , 000 51000 Total revenues 5639226 5805174 165948 EXPENDITURES Culture/Recreation 6185541 5595469 59 , 072 Total expenditures 618 , 541 5595469 595072 Net change in fund balances ( 559315 ) 20 , 705 763020 Fund balances at beginning of year 559315 1 , 3065593 1 ,251 ,278 Fund balances at end of year $ - $ 1 , 327 ,298 $ 19327 ,298 112 Indian River County, Florida Budgetary Comparison Schedule 1 911 Surcharge For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ 4379220 $ 510 , 982 $ 735762 Intergovernmental 52 , 598 114 , 915 629317 Interest - 13 , 302 13 , 302 Total revenues 4895818 639 , 199 1499381 EXPENDITURES General government 3349523 297 , 973 362550 Total expenditures 3349523 297 , 973 36 , 550 Excess of revenues over (under) expenditures 1559295 341 ,226 185 , 931 OTHER FINANCING SOURCES - Transfers out ( 1559295 ) ( 155 , 295 ) Total other financing sources (uses) ( 155 ,295 ) ( 155 ,295 ) - ' Net change in fund balances - 1859931 1859931 Fund balances at beginning of year - 319 ,246 3199246 Fund balances at end of year $ - $ 5055177 $ 505 , 177 1 1 1 i 1 113 Indian River County, Florida Budgetary Comparison Schedule Drug Abuse For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 134, 105 $ 155 , 911 $ 21 , 806 Fines and forfeitures 31000 79681 43681 Interest - 1 , 341 1 ,341 Miscellaneous 10 , 197 - ( 10 , 197) Total revenues 147 ,302 164,933 17 , 631 EXPENDITURES Public safety HUM 110, 838 Human services 81 ,464 819464 _ Total expenditures 1923302 192,302 - Excess of revenues over (under) expenditures (459000) (273369) 17 , 631 OTHER FINANCING SOURCES Transfers In 45 , 000 39, 100 (5 , 900) Total other financing sources (uses) 45 ,000 39, 100 (5 , 900) Net change in fund balances - 11 , 731 11 , 731 Fund balances at beginning of year - 41 ,459 413459 Fund balances at end of year $ - $ 53 , 190 $ 53 , 190 114 1 ` Indian River County, Florida Budgetary Comparison Schedule SHIP-Low Income Housing For the Year Ended September 30 , 2002 Variance Final Actual Positive ' Budget Amounts (Negative) REVENUES Intergovernmental $ 11112 , 065 $ 1 ,202 ,206 $ 90 , 141 Charges for services - 1809158 1805158 Interest - 28 , 041 283041 Miscellaneous - 15914 19914 Total revenues 191129065 134129319 3009254 EXPENDITURES Human services 15112 , 065 996 , 624 1159441 Total expenditures 1 , 1125065 996 ,624 1159441 Net change in fund balances - 415 , 695 4155695 Fund balances at beginning of year - 704 , 526 704 , 526 Fund balances at end of year $ - $ 191209221 $ 1 , 1209221 1 115 Indian River County, Florida Budgetary Comparison Schedule Metropolitan Planning Organization For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 3429348 $ 260 , 720 $ (81 ,628) Charges for services - 34 34 Interest - 29839 2 , 839 Total revenues 342 , 348 2639593 ( 789755 ) EXPENDITURES General government 342 , 348 279,601 629747 Total expenditures 3429348 2799601 62 , 747 Net change in fund balances - ( 169008 ) ( 16 , 008 ) Fund balances at beginning of year - 531632 53 , 632 Fund balances at end of year $ - $ 37,624 $ 375624 116 1 Indian River County, Florida Budgetary Comparison Schedule ' Land Acquisition For the Year Ended September 30 , 2002 Variance Final Actual Positive ' Budget Amounts (Negative) REVENUES Intergovernmental $ 50 , 000 $ - $ ( 509000) Interest 1925946 192 , 946 Miscellaneous - 747 , 965 7479965 ' Total revenues 505000 940 , 911 8909911 EXPENDITURES Physical environment 119050 , 000 19101 , 887 999489113 Total Eependitures 1190503000 151019887 9,948 , 113 Excess of revenues over (under) expenditures ( 119000, 000) ( 1609976) 1098395024 OTHER FINANCING SOURCES Debt proceeds 11 , 000 , 000 1190009000 - Total other financing sources (uses) 1190005000 11 , 000 , 000 - Net chane in fund balances g - 103839 , 024 1058399024 ' Fund balances at beginning of year - ( 1619895 ) ( 1619895 ) ' Fund balances at end of year $ - $ 1096779129 $ 10 , 677 , 129 t117 Indian River County, Florida Budgetary Comparison Schedule Multi-Jurisdictional Law Enforcement For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Fines and forfeitures $ 37, 745 $ 28 , 502 $ (9,243 ) Interest - 15942 1 , 942 Total revenues 37, 745 30 ,444 (7,301 ) EXPENDITURES Public safety 27, 192 275192 _ Total expenditures 27 , 192 275192 Excess of revenues over (under) expenditures 107553 3 ,252 OTHER FINANCING SOURCES Transfers out ( 109553 ) ( 10 , 553 ) Total other financing sources (uses) ( 10 , 553 ) ( 10, 553 ) - Net change in fund balances - (75301 ) (79301 ) Fund balances at beginning of year - 619608 619608 Fund balances at end of year $ - $ 54 ,307 $ 54 , 307 118 1 Indian River County, Florida Budgetary Comparison Schedule Native Uplands Land Acquisition For the Year Ended September 30 , 2002 Variance ' Final Actual Positive Budget Amounts (Negative) REVENUES Charges for services $ = $ 649314 $ 64 ,314 Interest 145437 149437 Total revenues - 78 , 751 783751 EXPENDITURES Physical environment 159000 3 , 799 11 ,201 Total expenditures 15 , 000 31799 11 ,201 Net change in fund balances ( 159000) 749952 89 , 952 Fund balances at beginning of year 15 , 000 391 , 681 376 , 681 Fund balances at end ofear $ - $ 466 633 $ 466 633 Y > ' 119 Indian River County, Florida Budgetary Comparison Schedule Beach Restoration For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ 513 , 000 $ 5313349 $ 18 , 349 Intergovernmental - 9685872 968 , 872 Interest - 173 , 358 1739358 Total revenues 513 , 000 19673 , 579 1 , 160 , 579 EXPENDITURES Culture/Recreation 315585619 _ 413J31 311452488 Total expenditures PM 35558 ,619 413 , 131 35145 ,488 Excess of revenues over (under) expenditures (3 , 0459619) 1 ,260,448 4 , 3069067 OTHER FINANCING SOURCES Transfers in 13400,000 1 ,400,000 _ Total other financing sources 1 ,400,000 15400, 000 _ Net change in fund balances ( 13645 , 619) 2 , 660,448 49306 , 067 Fund balances at beginning of year 156459619 _ 22878 , 021 _ 1 ,2325402 Fund balances at end of year $ - $_ 5 . 538 ,469 $ 5 . 5384469 120 1 Indian River County, Florida Budgetary Comparison Schedule Vero Lake Estates For the Year Ended September 30, 2002 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ - $ 19136 $ 1 , 136 1 Intergovernmental 890,258 8665808 (239450) Special assessments 73 , 661 755347 1 , 686 Interest 75125 39301 (35824) ' Total revenues 971 , 044 946 , 592 (24 ,452 ) EXPENDITURES Transportation 1 , 1759193 19028 , 171 1475022 Total expenditures 191759193 1 , 0289171 1479022 Excess of revenues over (under) expenditures (204 , 149) (819579) 1225570 OTHER FINANCING SOURCES Transfers out (35945 ) (2 , 611 ) 19334 ' Total other financing sources (uses) (3 , 945 ) (2 , 611 ) 1 , 334 Net change in fund balances (2089094) ( 849190) 123 , 904 Fund balances at beginning of year 208 094 332 25 g g Y 5 124 , 161 ' Fund balances at end of year $ - $ 248 , 065 $ 248 , 065 ' 121 Indian River County, Florida Budgetary Comparison Schedule Florida Boating Improvement Program For the Year Ended September 30 , 2002 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 74 ,211 $ 182 , 923 $ 108 , 712 Interest - 9 , 155 9, 155 Total revenues 74 ,211 192 , 078 117, 867 EXPENDITURES Culture/Recreation 1299211 82 , 199 47, 012 Total expenditures 129 ,211 82 , 199 47, 012 Net change in fund balances (55 , 000) 1093879 164, 879 Fund balances at beginning of year 554000 2155536 160, 536 Fund balances at end of year $ - $ 3259415 $ 325 ,415 122 Indian River County, Florida Budgetary Comparison Schedule Library Bequests For the Year Ended September 30, 2002 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Interest $ - $ 13 , 774 $ 13 , 774 Miscellaneous 263 ,240 23 , 004 (2409236) Total revenues 263 ,240 36 , 778 (226 ,462) EXPENDITURES Culture/Recreation 703 ,240 702 ,648 592 Total expenditures 703 ,240 702 , 648 592 Net change in fund balances (440 , 000) (6659870) (2259870) ' Fund balances at beginning of year 440 , 000 444 , 649 4 , 649 Fund balances at end of year $ - $ (221 ,221 ) $ (221 ,221 ) ' 123 Indian River County, Florida Budgetary Comparison Schedule East Gifford Stormwater For the Year Ended September 30, 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ - $ 3 $ 3 Special assessments 1 , 995 1 ,318 (677) Interest - 30 30 Total revenues 15995 1 , 351 (644) EXPENDITURES Transportation 13965 - 15965 Total expenditures 1 965 - 13965 Excess of revenues over (under) expenditures 30 1 , 351 15321 OTHER FINANCING SOURCES Transfers out (30) ( 12) 18 Total other financing sources (uses) (30) ( 12) 18 Net change in fund balances - 1 , 339 15339 Fund balances at beginning of year Fund balances at end of year $ - $ 1 , 339 $ 15339 124 Indian River County, Florida Budgetary Comparison Schedule ' Street Lighting Districts For the Year Ended September 30 , 2002 ' Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ - $ 49030 $ 49030 ' Special assessments 1699920 1659123 (49797) Interest 12 , 025 139957 19932 Miscellaneous - 25220 2 , 220 Total revenues 181 , 945 1859330 3 , 385 EXPENDITURES Transportation 1805021 154 , 551 25 ,470 Total expenditures 180 , 021 1549551 255470 Excess of revenues over (under) expenditures 19924 309779 28 , 855 OTHER FINANCING SOURCES Transfers out (75167 (6 , 137) 15030 Total other financing sources (uses) (7 , 167) (69137) 1 , 030 ' Net change in fund balances (5 ,243 ) 24 , 642 299885 Fund balances at beginning of year 5 ,243 3629115 3569872 Fund balances at end of year $ - $ 386 , 757 $ 386 , 757 ' 125 Indian River County, Florida Budgetary Comparison Schedule Disabled Access Programs For the Year Ended September 30, 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Licenses and permits Fines and forfeitures 59000 4 , 960 (40) Interest _ 2 2 Total revenues 500 43962 (38) EXPENDITURES Human services 313219 - 31 ,219 Total expenditures 31 ,219 - 315219 Excess of revenues over (under) expenditures (269219) 49962 31 , 181 OTHER FINANCING SOURCES Transfers in 26,219 26,218 ( 1 ) Total other financing sources (uses) 265219 26 ,218 ( 1 ) Net change in fund balances - 313180 31 , 180 Fund balances at beginning of year Fund balances at end of year $ - $ 311180 $ 319180 126 Indian River County, Florida Budgetary Comparison Schedule ' Federal/State Grants For the Year Ended September 30 , 2002 ' Variance Final Actual Positive Budget Amounts (Negative) REVENUES Licenses and permits $ _ $ Intergovernmental 903780 75893 ( 825887) Interest - 69 69 Miscellaneous - 269560 26 , 560 ' Total revenues 90 , 780 343522 (56 ,258 ) EXPENDITURES Human services 90 , 780 32 , 585 589195 ' Total expenditures 909780 329585 589195 Net change in fund balances - 1 , 937 19937 ' Fund balances at beginning of year Fund balances at end of year $ - $ 1 , 937 $ 19937 ' 127 Indian River County, Florida Budgetary Comparison Schedule Spring Training Facility Bonds For the Year Ended September 30, 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ 3425000 $ 347 , 710 $ 5 , 710 Intergovernmental 802 ,277 844 , 506 42,229 Interest 14,250 225283 8 , 033 Total revenues 15158 , 527 19214 ,499 559972 EXPENDITURES Debt service : Principal 360 , 000 360, 000 _ Interest 926, 882 8465003 80,879,, Total expenditures 1 ,286, 882 1 ,206 , 003 803879 Excess of revenues over (under) expenditures ( 1289355) 8 ,496 136 , 851 Net change in fund balances ( 128 , 355 ) 8 ,496 136 , 851 Fund balances at beginning of year 128 , 355 4453155 316 , 800 Fund balances at end of year $ - $ 453 , 651 $ 453 , 651 128 ' Indian River County, Florida Budgetary Comparison Schedule Land Acquisition Bonds For the Year Ended September 30 , 2002 Variance ' Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 1 , 5605736 $ 155815362 $ 205626 Interest 53 , 030 76 , 559 23 , 529 Total revenues 1 , 6135766 19657 , 921 445155 r EXPENDITURES ' Debt service : Principal 1 ,405 , 000 194059000 - Interest 774 , 614 731 ,454 43 , 160 ' Total expenditures 2 , 17% 614 231365454 43 , 160 Excess of revenues over ' (under) expenditures (565 , 848 ) (478 , 533 ) 87 , 315 ' OTHER FINANCING SOURCES Transfers out (54 , 809) (44 , 929) 9 , 880 Total other financing sources (uses) ( 549809) (445929) 99880 ' Net change in fund balances (6209657) ( 523 ,462 ) 97 , 195 ' Fund balances at beginning of year 620 , 657 10 % 998 9899341 Fund balances at end of year $ - $ 1 , 086 , 536 $ 190869536 ' 129 Indian River County, Florida Budgetary Comparison Schedule Dodgertown Capital Reserve , For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 30 , 020 $ 30 , 020 Total revenues - 305020 30,020 EXPENDITURES- Capital projects 23000 , 000 - 2 , 0005000 Total expenditures 230009000 - 25000 , 000 Net change in fund balances (2 , 0005000) 305020 2 , 030, 020 Fund balances at beginning of year 2 , 000 ,000 29000 , 976 976 Fund balances at end of year $ - $ 25030 , 996 $ 250309996 130 £ ZL ` 99 £ ` £ $ £ ZL ` 99 £ ` £ $ - $ n;)X jo pua ju saauutuq puna ' 068 ` b9Z` i 068 ` b9Z` £ 000` 000 ` Z ivoXjo Ouiuui2aq 1u saauuluq puna ' £ £ 8 ` 101 ` Z £ £ 8 ` 10I (000 ` 000 ` Z) saauutuq punj ui a2uup jaN 19E ' 686 ' 1 6t9 0 i 000' 000 ' z sa.xnlipuadxa Iielo.L 19E ' 686 ' 1 6V9` 0 i 000` 000` Z slaafold Iujid D Sauf1.LI (ImadXd Z8t? Z I I Z8ti Z I I - sanuana.z JUIOJL Z8t` Z I I $ ZWZ I I $ - $ lsazaIul SWINHAg I ' (anije!laN) s;unouiV jaSpng 3AIJISod iun;ad Iuu13 aauui.� uA ZOOZ 10 £ jagrualdaS papud aeaA aqj .iol uoi;ana;suo3 ploog paoJ3i9 ainpagaS uospvduio3 ,ravja2lpng up!lo13 'Aunoa 13AIH ampul ' Indian River County, Florida Budgetary Comparison Schedule Shooting Range For the Year Ended September 30 , 2002 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 5 ,271 $ 59271 Total revenues - 5 ,271 59271 EXPENDITURES Capital projects 709000 44 ,035 259965 Total expenditures 70 ,000 44 , 035 25 , 965 Net change in fund balances (70,000) (389764) 31 ,236 : Fund balances at beginning of year 70 ,000 170, 041 1009041 Fund balances at end of year $ - $ 131 ,277 $ 131 ,277 132 Indian River County, Florida Budgetary Comparison Schedule Dodgertown Facility For the Year Ended September 30 , 2002 Variance ' Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 1419481 $ 1419481 Miscellaneous 509000 - (50, 000) Total revenues 501000 141 ,481 91 , 481 EXPENDITURES ' Capital projects 790509000 21177, 830 49872 , 170 Total expenditures 7 , 050 , 000 221775830 41872 , 170 ' Net change in fund balances (79000 , 000) (290369349) 49963 , 651 Fund balances at beginning of year 790005000 790343777 349777 Fund balances at end of year $ _ $ 4 , 9981428 $ 499985428 ' 133 Indian River County, Florida Budgetary Comparison Schedule Homeless Assistance Center For the Year Ended September 30 , 2002 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ Interest 393 , 898 $ 136,444 $ (257 ,454) - 39663 35663 Total revenues Miscellaneous 1003000 140, 000 409000 493 , 898 280, 107 (213 , 791 ) EXPENDITURES Capital projects 5179639 755862 441 , 777 Total expenditures 5179639 75 , 862 4415777 Excess of revenues over (under) expenditures (23 , 741 ) 204, 245 227398E OTHER FINANCING SOURCES Transfers in 239741 - (239741 ) Total other financing sources (uses) 23 741 - (23 , 741 ) Net change in fund balances - 2045245 2045245 Fund balances at beginning of year - 243457 245457 Fund Balances at End of Year $ - $ 228 , 702 $ 2285702 134 Indian River County, Florida Budgetary Comparison Schedule Fellsmere Old School For the Year Ended September 30, 2002 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 4009000 $ 529052 $ (347, 948) Interest 3 , 139 3 , 139 Miscellaneous 2 , 500 213481 18 , 981 Total revenues 4029500 76 , 672 (3255828 ) EXPENDITURES Capital projects 437 , 500 599832 377 , 668 Total expenditures 437, 500 59 , 832 377, 668 Net change in fund balances (359000) 165840 519840 Fund balances at beginning of year 359000 45 , 668 1068 Fund balances at end of year $ - $ 62 , 508 $ 629508 ' 135 Indian River County, Florida Budgetary Comparison Schedule Optional Sales Tax For the Year Ended September 30, 2002 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 10709000 $ 119399,491 $ 153293491 Intergovernmental Interest 2 , 157, 650 431 ,250 ( 1 , 726,400) 617, 500 190669560 449 , 060 Miscellaneous 2 ,483 14 , 822 125339 Total revenues 12 , 847 , 633 12 , 9125123 649490 EXPENDITURES Capital projects 4334929269 1893993175 2550933094 Total expenditures 43 ,4929269 1833991175 259093 , 09.4 Excess of revenues over (under) expenditures (309644 , 636) (59487 , 052) 259157, 584 OTHER FINANCING SOURCES Transfers out ( 1 ,400, 000) ( 1 ,400 , 000) _ Total other financing sources (uses) ( 1 ,400,000) ( 1 ,400, 0000 _ Net change in fund balances (3230449636) (69887, 052) 25 , 157, 584 Fund balances at beginning of year 3290449636 339916 ,290 198719654 Fund balances at end of year $ - $ 27 , 0295238 $ 2730299238 136 NONMAJOR ENTERPRISE FUNDS Shooting Range - To account for the revenues , expenses , assets and liabilities associated with the County Shooting Range . ' County Building- To account for the revenues , expenses , assets and liabilities associated with the building permit and inspection program . ' 137 Indian River County, Florida Combining Statement of Net Assets Nonmajor Enterprise Funds For the Year Ended September 30 , 2002 ASSETS Shooting County Range Building Totals Current assets : Cash and cash equivalents $ 485860 $ 3 , 539 , 175 $ 35588 , 035 Inventories Deposits 25 , 979 - 25 , 979 - Total current assets 125 12574 839 3 , 5399300 3 ,614 139 Restricted assets : Cash and cash equivalents - 1075440 _ 107,440 Total restricted assets - 1073440 1077440 Non-current assets : Property, plant and equipment 1 ,4125376 295 , 985 15708 , 361 Less : Accumulated depreciation 33 , 803 232 ,973 266 , 776 Total non-current assets 19378 , 573 63 ,012 15441 , 585 Total assets 15453 ,412 3 , 709, 752 551635164 LIABILITIES Current liabilities (payable from current assets) : Accounts payable 5 , 780 47,034 52 , 814 Due to other governments _ 41655 125 4 , 780 Total current liabilities (payable from current assets) 103435 47 159 57, 594 Current liabilities (payable from restricted assets) : Customer deposits - 1079440 107,440 Total current liabilities (payable from restricted assets) - 107 440 1072440 Non-current liabilities : Accrued compensated absences 6 , 723 85 , 969 92 ,692 Total non-current liabilities 6 , 723 85 969 _ 92 , 692 Total liabilities 179158 240 , 568 257, 726 NET ASSETS Invested in capital assets, net of related debt 15378 , 573 63 , 012 1 ,441 , 585 Unrestricted 57 ,681 3 ,4062172 33463 , 853 Total net assets $ 1 ,4365254 $ 35469 , 184 $ 4 ,905 ,438 138 Indian River County, Florida Combining Statement of Revenues , Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds For the Year Ended September 30 , 2002 Shooting County Range Building Totals OPERATING REVENUES Charges for services $ 1759344 $ 198349393 $ 250093737 ' Total revenues 175 , 344 1 , 834 ,393 2099737 OPERATING EXPENSES ' Personal services 218 ,395 190539094 1 ,271 ,489 Materials, supplies , services and other operating 71 873 4959483 567,356 Depreciation 30 , 941 23 ,458 54 , 399 Total operating expenses 3219209 115727035 118935244 Operating income (loss) 145 865 ( ) 2627358 1165493 ' NONOPERATING REVENUES Interest income 955 120 ,970 121 , 925 Gain on disposal of fixed assets 29200 - _ 22200 ' Total nonoperating revenues 35155 120 , 970 1249125 Income before transfers and capital contributions ( 1425710) 383 ,328 240 , 618 Transfers 1585048 - 158 , 048 Capital contributions 33 ,925 - 33 , 925 Change in net assets 499263 383 ,328 4325591 Total net assets - beginning 19386 , 991 3 ,085 , 856 4 ,4723847 ' Total net assets - ending $ 15436 ,254 $ 334695184 $ 43905 ,438 ' 139 Indian River County, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2002 Shooting County CASH FLOWS FROM OPERATING ACTIVITIES Range Building Totals Cash received from customers $ 175 , 509 $ 1 , 847, 768 $ 2 , 023 ,277 Cash paid to suppliers for goods and services ( 73 , 745) (490, 500) (564 245 Cash paid to employees for services 214 008 ) Net cash provided by (used in) operating ( ) ( 1 , 037,294) ( 1 251 302) activities ( 1129244) 319, 974 2075730 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers 158, 048 - 158, 048 Proceeds from advances from other funds ( 19000) - ( 19000) Net cash provided by noncapital financing activities 1575048 - 157, 048 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of fixed assets 2 ,200 2 ,200 Purchase of fixed assets - (40, 573 ) (40, 573 ) Net cash used in capital and related financing activities 2 ,200 (403573 ) (38 ,373 ) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 955 120, 970 1219925 Net cash provided by investing activities 955 120,970 1215925 Net increase in cash and cash equivalents 479959 400,371 448, 330 Cash and cash equivalents at beginning of year 901 352469244 3 , 247, 145 Cash and cash equivalents at end of year $ 48 , 860 $ 3 , 6461615 $ 3 , 695 ,475 Classified as : Current assets $ 48 , 860 $ 3 , 539, 175 $ 39588 , 035 Restricted assets - 107, 440 107,440 Totals *'48 , 860 $ 35646, 615 $ 3 , 695 ,475 140 Indian River County, Florida Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2002 Shooting County RECONCILIATION OF NET OPERATING INCOME (LOSS) Range Building Totals NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income ( loss) $ ( 1459865 ) $ 262 , 358 $ 1165493 ' Adjustments to reconcile operating income to net cash provided by operating activities : ' Depreciation 30,941 23 ,458 (Increase) decrease in assets : 54 ,399 Accounts receivable 165 165 Due from other governments - ( 125 ) ( 125 ) Inventories 899 _ Increase (Decrease) in liabilities : 899 1 Accounts payable (69497) 59064 ( 1 ,433 ) Due to other governments 39726 Other deposits in escrow ( 81 ) 3 ,645 Accrued compensated absences 13 , 500 135500 45387 15 , 800 209187 Total adjustments 335621 57 , 616 91 ,237 rNet cash provided by (used in) operating activities $ 112 , 244 $ — ) 319974 $ 207, 730 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ (251 ) $ (209609) $ (205860 Contributed property, plant and equipment $ 33 925 $ _ $ 1 ' 141 INTERNAL SERVICE FUNDS Fleet Management- To account for the expenses incurred to repair and maintain the County 's vehicles and equipment. Revenues are generated by charging user departments for maintenance of their vehicles and equipment. Self Insurance- To account for the expenses incurred for worker 's compensation claims, general and auto liability and property damage, and employee health insurance claims . Revenues are generated by charges to the various departments and funds based on past experience and actuarial estimates . 142 Indian River County, Florida Combining Statement of Net Assets rInternal Service Funds For the Year Ended September 30 , 2002 Fleet Self ASSETS Management Insurance Totals ' Current assets : Cash and cash equivalents $ 606 , 165 $ 67678 , 751 $ 792849916 Accounts receivable-net 22 , 363 36 , 171 587534 Due from other governments 45877 583410 63 ,287 Inventories 729382 - 729382 Deposits - 402 402 Total current assets 705 , 787 6 , 773 , 734 ON 79479 , 521 ' Non-current assets : Property, plant and equipment 427, 736 279334 4559070 1 Less : Accumulated depreciation 403 , 844 25 ,432 429 ,276 Total property, plant, and equipment 23 , 892 1 , 902 25 , 794 Total assets 729,679 NMI 69775 ,636 72505 ,315 LIABILITIES Current liabilities (payable from current assets) : Accounts payable 425675 225 ,244 2679919 ' Claims payable - 49261 ,000 42261 ,000 Total current liabilities (payable from current assets) 42 ,675 4 ,486 ,244 4 , 5289919 Non-current liabilities : ' Accrued compensated absences 38 ,045 21 , 193 599238 Total non-current liabilities 38 ,045 215193 593238 Total liabilities 80 , 720 49507 ,437 475889157 NET ASSETS Invested in capital assets, net of related debt 239892 15902 25 , 794 Unrestricted 6259067 2 ,266 ,297 2 , 8913364 Total net assets $ 648 , 959 $ 27268 , 199 $ 22917 158 ' 143 Indian River County, Florida Combining Statement of Revenues, Expenses , and Changes in Fund Net Assets Internal Service Funds For the Year Ended September 30, 2002 Fleet Self Management Insurance Totals OPERATING REVENUES Charges for services : Vehicle maintenance $ 1 ,466 ,490 $ - $ 1 ,466 ,490 Self insurance 10. 190 544 10. 190 . 544 Total revenues _ 1 ,466 490 _ 1091902544 11 , 6579034 OPERATING EXPENSES Personal services 490,466 1 , 827, 853 2 , 3189319 Materials, supplies, services and other operating 993 471 9 , 0835471 10 , 0765942 Depreciation 40 . 880 280 Total operating expenses — _ 41 160 L524 , 817 10 , 911 ,604 12 ,43 6,421 Operating Income (Loss) (582327) (721 060 ) (779 ,387) NONOPERATING REVENUES Interest income 167315 198 ,929 Total nonoperating revenues — 215 ,244 16 , 315 198 , 929 215 ,244 Change in net assets (429012 ) (522 , 131 ) (564 , 143 ) Total net assets - beginning 690 ,971 2, 7901330 3 ,481 ,301 Total net assets - ending $ 648 , 959 $ 2 ,268 , 199 $ 2 ,9175158 144 Indian River . County, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2002 Fleet Self CASH FLOWS FROM OPERATING ACTIVITIES Management Insurance Totals ' Cash received from customers $ 11459, 198 $ 1091413466 $ 11 ,600,664 Cash paid to suppliers for goods and services (9965485 ) ( 8 ,3709751 ) (993679236) Cash paid to employees for services (489, 166) ( 1 , 822 , 798) (2 ,311 , 964) Net cash used in operating activities (269453 ) (525083 ) ( 78 536) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets (29406) ( 19682) (4, 088) 1 Net cash provided by (used in) capital and related financing activities (23406) ( 1 , 682) (4 , 088) ' CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 16,315 198 , 929 _ 2155244 Net cash provided by investing activities 16,315 1989929 215 ,244 Net increase (decrease) in cash and cash equivalents ( 12 , 544) 145 , 164 1323620 Cash and cash equivalents at beginning of year 618 , 709 61533 , 587 7 , 152 296 Cash and cash equivalents at end of year $ 606, 165 $ 636783751 $ 79284 , 916 Classified as : Current assets $ 6069165 $ 6 , 6789751 $ 7 ,284 , 916 Restricted assets Totals $ 606, 165 $ 696789751 $ 792845916 ' 145 Indian River County, Florida Statement of Cash Flows Internal Service Funds For the Year Ended September 30 , 2002 Fleet Self RECONCILIATION OF NET OPERATING INCOME (LOSS) Management Insurance Totals NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ (58 ,327) $ (721 , 060) $ (7799387) Adjustments to reconcile operating income to net cash provided by operating activities : Work in progress from prior year reclassified as expense 9 600 Depreciation - 99600 (Increase) decrease in assets : 403880 280 415160 Accounts receivable (79788) 6 , 122 Due from other governments ( 1 , 666) Inventories 496 (55 ,200) (545704) Deposits (7, 558) - (7, 558) Increase (Decrease) in liabilities : (20) (20) Accounts payable (5 , 056) 140, 740 1355684 Claims payable - 5723000 572 , 000 Accrued compensated absences 1 ,300 5 ,055 69355 Total adjustments 313874 668 , 977 700, 851 Net cash provided by operating activities $ (26,453 ) $ (529083 ) $ (78, 536) NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ (2 ,587) $ (349448) $ (379035 ) Continued 146 1 . FIDUCIARY FUND Agency Fund To account for assets held solely in a custodial capacity by the County. r i r 147 Indian River County, Florida Statement of Changes in Assets and Liabilities Agency Fund For the Year Ended September 30, 2002 Balance Balance October 1 , September 30, 2001 Additions Deductions 2002 ASSETS Cash and cash equivalents $ 5 ,2383335 $248 , 756 , 985 $248 , 130,300 $ 5 , 8655020 Accounts receivable 10 , 820 162 ,263 1469380 26 , 703 Total assets $ 5 ,249 , 155 $2483919,248 $248 ,276 ,680 $ 5 , 891 723 LIABILITIES Accounts payable $ 260, 338 $ 490389583 $ 4,215 ,491 $ 835430 Due to other governments 19617 , 078 23393783183 2329761 , 517 2 ,2339744 Other deposits held in escrow 3 ,371 , 739 113502 ,482 11 ,299, 672 395749549 Total liabilities $ 5 ,249 , 155 $248 , 919,248 $ 2485276 , 680 $ 5 , 8919723 148 r i CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES 1 1 f ' 149 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Comparative Schedules By Source September 30, 2002 FY 2001 FY 2002 Governmental activities capital assets : Land $ Right-of--way 53 , 710, 608 $ 5250949481 Buildings and improvements 95675 , 655 105556 , 36351 , 374 , 625 535912 , 346 Equipment 34, 913 , 656 38 , 568 , 109 Infrastructure 1,53 , 547, 788 154, 741 , 048 Construction in progress 6 , 170, 785 27 , 0969862 Total governmental activities capital assets $ 309, 3935117 $ 336 ,96%209 Investment in governmental activities capital assets by sources : General revenue $ 266 , 6685543 $ 274 , 378, 762 Federal revenuesharing/grants 5 ,404 , 945 518685383 General obligation debt 30, 082 , 517 315753 , 673 Capital projects funds 39446, 908 21 ,2129902 Contributions 3 , 7909204 39755 ,489 Total investment in governmental activities capital assets by sources $ 309, 393 , 117 $ 336 , 969 ,209 150 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities ' Schedule By Function and Activity September 30 , 2002 Buildings and Function and Activity Total Land Improvements Equipment Infrastructure General government: Executive $ 849781 $ - $ - $ 84, 781 $ Financial and administrative 495160, 828 19,2809643 26, 9285880 2, 9519305 Legal counsel 29,351 - 29,351 _ Comprehensive planning 132 049 132,049 Other general governmental services 41142 ,235 2255680 31916, 555 Subtotal 5227482474 19,280, 643 27, 154, 560 71114,041 _ Public safety: Law enforcement 1194993086 - 219109141 895883945 Fire control 832619744 3869808 2, 8253533 590499403 Detention/Corrections 131726, 741 1375275 129776, 700 812, 766 _ Emergency and disaster relief services 498363116 4, 836, 116 Ambulance and rescue services 198359675 - - 198359675 Other public safety 69, 818 - - 69 , 818 Subtotal 40,229, 180 524,083 18, 512,374 21 , 192 , 723 _ Physical environment: Soil conservation 559000 559000 Telecommunications 4, 564 - - 4, 564 _ Subtotal 595564 _ - 59,564 _ Transportation : - Road and street facilities 16893569901 10, 556,363 6,3559545 151 ,4449993 IRC - Council on Aging 110449084 - - 190449084 Subtotal 1693400,985 10, 556,363 - 79399,629 1515444, 993 Economic environment: Veterans services 102607 - - 10,607 Housing and urban development 109951 - - 10,951 Subtotal 213558 - - 21 , 558 _ Human services : Health 695 , 724 695 , 724 Welfare 45 ,386 - - 45 ,386 _ Substance abuse council 81542 8 , 542 Subtotal 749,652 _ 749, 652 _ Culture/Recreation : Libraries 53945 ,895 13275 , 181 3 ,945 , 047 725 , 667 Parks and recreation 39,3763869 3120143574 _ 4,2979352 _ 768 , 888 312967055 Subtotal 452322, 764 321289, 755 81242, 399 19494, 555 3 ,2961055 Court Related : Judicial 539,400 - _ 31013 536387 Subtotal 539,400 3 , 013 536, 387 _ Total 3092872,347 $ 62,650,844 $ 53 ,912,346 $ 38, 568 , 109 $ 154, 741 , 048 Construction in progress 27 096 862 Total $ 33629693209 151 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Schedule of Changes By Function and Activity For The Year Ended September 30 , 2002 Governmental Governmental Activities Activities Capital Assets Transfers Transfers Capital Assets _ Function and Activity October 1 , 2001 Additions Deletions In Out September 30 2002 General government: Executive $ 939245 $ 2, 763 $ (97125 ) $ 785 $ (29887) $ 849781 Financial and administrative 509468, 052 318, 515 ( 116393731 ) 439450 (29,458) 49, 1603828 Legal counsel 30,951 ( 11600) Comprehensive planning 136,309 5 , 868 9396 _ - 29,351 Other general governmental services 2,019, 917 2, 166, 300 ( ' ) (732) 132, 049 Subtotal - (55 ,063 ) 18 ,028 (6,947) _ 41142, 235 52 , 7482474 224932446 1127142915 ) 62 ,263 409024 53254 % 244 Public safety: Law enforcement 109937,255 1 , 598, 731 ( 1 ,0491149) 73 ,320 (61 ,071 ) 115499, 086 Fire control 8,085 ,069 2129569 ( 16, 864) - ( 19,030) 8 ,261 , 744 Detention/Corrections 13 ,390,913 368, 706 (209629) 61 ,071 (73 ,320) 1337269741 Emergency and disaster relief services 4, 8161560 29,468 ( 11472) - (8,440) 4, 836, 116 Ambulance and rescue services 196029147 416,273 ( 195, 115) 19,030 (6,660) 198355675 Other public safety 69,818 - 69,818 Subtotal 389901 , 762 2,625, 747 jL283 ,229L1531421 168 , 521 40,2299180 Physical environment: Soil conservation 45,905 11 , 933 (2, 838) Telecommunications 4, 564 _ 55 ,000 Subtotal - _ - 4 , 564 50,469 11 ,933 2, 838) - - 5 % 564 Transportation : Road and street facilities 166, 172,975 295155842 (3183622) 12,347 (259641 ) 1689356, 901 IRC - Council on Aging 894, 817 155, 715 (61448 ) 1 044 084 Subtotal 167,067, 792 2,671 ,557 325, 070 12,347 251641 169, 4009985 Economic environment: Veterans services 127465 - ( 11858) - 7 10,60 Housing and urban development 109951 - - 10, 60 Subtotal 951 23 ,416 - 11858 - - 21 , 558 Human services : Health 6699899 219772 (4,387) 8,440 695, 724 Welfare 45 , 190 21730 - (2, 534) 459386 Substance abuse council 85542 89542 Subtotal 723 , 631 24, 502 (4, 387) 8 ,440 (21534 ) 7499652 Culture/Recreation : Libraries 51866,415 82 ,013 (2, 533 ) 5 ,945 , 895 Parks and recreation 372318, 034 2, 597, 782 542 838 32891 - 39, 376 869 Subtotal 4311849449 216799795 (545,371 ) 3 , 891 - 459322, 764 Court related : Judicial 5229339 52,330 (31 ,627) 909085 (937727) 539, 400 Subtotal 5229339 52,330 (319627) 907085 (93 ,727) 5399400 Construction in progress 61170, 785 261439, 135 (5 ,5139058) - - 27,096, 862 Total $ 309,3931117 $ 362998445 $ (93422,353 ) $ 3303447 $ 330 447 $ 336, 969, 209 152 Man i am i i STATISTICAL SECTION The statistical data relates to the physical , economic, social COMMENTS RELATIVE TO STATISTICAL SECTION and political characteristics of Indian River County. It is intended to provide a broader and more complete unders- The following statistical tables are not included for the tanding of the County and its financial affairs than is reasons stated below: possible from the financial statements and supporting schedules included in the financial section. Most of these a) Computation of the Legal Debt Margin is omitted tables cover more than two fiscal years and present data because the Constitution of the State of Florida (FS wfrom outside the accounting records . Therefore, the 200 . 181 ) and Indian River County set no legal debt Statistical Section data has not been subjected to independent limit. audit. b) Ten-year comparative summaries of specific information regarding the Public Employee Retirement System (PERS) are omitted because NOTE : The fiscal year is from October 1 to September 30 . Indian River County participates in a multi-employer Hence, fiscal year 2002 includes financial data for October 1 , PERS administered by the State of Florida and 2001 to September 30 , 2002 . separate actuarial valuations for each participating employer are not available . INDIAN RIVER COUNTY, FLORIDA TABLE 1 GENERAL GOVERNMENT EXPENDITURES BY FUNCTION LAST FIFTEEN FISCAL YEARS PHYSICAL CULTURE ECONOMIC AND FISCAL GENERAL PUBLIC ENVIRON- TRANSPOR- ENVIRON- HUMAN RECRE- YEAR TOTALS GOVERNMENT SAFETY MENT TATION COURT DEBT MENT SERVICES ATION RELATED SERVICE 1988 $ 42 , 545 , 657 $ 815929908 20% $ 16 , 724 , 374 39 % $ 7273949 2 % $ 79577 , 677 18 % $ 81 , 902 0% $ 23171 ,445 5 % $ 2 , 205 ,954 5 % $ 4 , 463 ,448 1l % 1989 47,3142363 101648, 161 23 1858122177 40 226, 796 0 716562874 16 105,943 0 2, 5607922 5 4, 878 , 744 11 2,4249746 5 1990 681812,282 12,011 , 708 17 27, 129,895 40 51701 ,984 8 9,812,006 14 123 , 112 0 2,7022806 4 7,449, 117 11 3 , 881 ,654 6 1991 69,362,905 171418, 669 25 27,336,310 40 583 , 745 1 97930,682 14 145,083 0 31201 , 109 5 6,264,398 9 43482 ,909 6 1992 709758,332 15,204,264 21 272325 ,680 39 217,426 0 12, 5141174 18 1525612 0 3, 595 ,088 5 55486, 774 8 6,262,314 9 1993 761048,057 20,289,055 27 27,9791687 37 278,037 0 11 , 395, 887 15 170,359 0 3 , 549,693 5 5 ,043 , 594 6 7,341 ,745 10 1994 77, 587, 773 22, 592, 742 29 28,3831551 37 2825866 0 131201 , 190 17 183 ,369 0 3 , 888 , 198 5 5 ,2271780 7 3 , 828 ,077 5 1995 71 ,207, 503 1670025950 23 29, 5311035 41 2, 543 ,098 4 12, 105 ,310 17 157, 895 0 4,069,066 6 551617035 7 1 ,637, 114 2 1996 769561 ,004 15 ,359, 169 20 32,924,200 43 1 ,242,069 2 111609,464 15 1639406 0 4, 5899591 6 75436 ,836 10 39236,269 4 1997 94,321 , 079 16, 130,433 17 391831 ,979 42 8,738 ,689 9 11 , 892, 662 13 266, 849 0 4,9721494 5 61308,543 7 6, 179,430 7 1998 881423 ,334 13,456, 145 15 37,093 , 684 42 3 ,276,200 4 16, 813 ,930 19 2812879 0 379899075 5 7, 149, 129 8 $ 3 ,866,441 4% 2,496, 851 3 1999 931403 , 557 131844, 361 15 39, 852, 827 43 033 ,456 1 18, 70009 20 278 , 191 0 5 ,048, 135 5 7, 150,011 8 4 ,375 ,340 5 25820,427 3 2000 1013876 , 515 14 , 665 , 306 14 40, 893 , 105 40 4 , 9475965 5 13 , 4155177 13 259 , 354 0 4 , 9285117 5 123006 , 079 12 4 , 565 , 674 5 6 , 195 , 738 6 2001 109, 531 , 820 15 , 7991857 15 425891 , 194 39 23254 , 447 2 13 , 4081736 12 302 , 580 0 5 , 746 , 410 5 211945 , 498 20 59323 , 388 5 178599710 2 2002 126 , 134 , 275 20, 228 , 495 16 45 , 3525323 36 296673619 2 22 , 729 , 769 18 347 , 096 0 5 , 8321441 5 19, 323 , 355 15 5 , 802 , 798 5 378503379 3 NOTE : Includes General , Special Revenue, Debt Service, and Capital Projects Funds INDIAN RIVER COUNTY, FLORIDA TABLE 2 GENERAL GOVERNMENT REVENUES BY SOURCE LAST FIFTEEN FISCAL YEARS TOTAL ALL LICENSES INTER- CHARGES FINES FISCAL GOVERNMENTAL AND GOVERNMENTAL FOR YEAR FUNDS TAXES PERMITS REVENUE SERVICES FORFEITURES MI EVENUEOUS 1988 $ 49,6181543 $ 32,0691112 64% $ 243 , 975 1 % $ 7,912,270 16% $ 3 ,478, 601 7% $ 509,082 1 % $ 59405 , 503 11 % 1989 54, 899,516 33 ,3713314 61 2859200 0 8,636,945 16 47856, 808 9 558,017 1 73191 ,232 13 1990 65, 803 , 143 42,336, 845 65 2239674 0 9, 2981727 14 513669564 8 626,632 1 7,9509701 12 1991 70, 4795195 44,297, 560 63 291 ,666 0 91515, 922 14 515009819 8 866, 183 1 10071045 14 1992 72, 800, 951 465133 , 709 63 268, 836 0 105283 , 840 14 51420, 748 7 683 ,646 1 10105172 14 1993 725060, 625 489115,203 67 2879510 0 9,9531032 14 5,4129529 8 850,422 1 7,4417629 10 1994 74, 597,257 509045, 611 67 295, 945 0 10327401 14 6, 1519859 9 962,250 1 6, 5099191 9 1995 7690449056 509363 , 898 67 264,450 0 11 ,300,394 15 619349303 9 915,452 1 69265, 559 8 1996 8497509308 559884,036 66 3919601 0 12,3285908 15 7, 8231576 9 1 , 126, 163 1 791969024 9 1997 919466,698 581955,069 64 4033849 0 1393299351 15 99129, 805 10 1 ,0265303 1 85622,321 9 1998 9795659154 6137409699 63 327,978 0 16,3929327 17 9, 123 , 027 10 11286, 672 1 8,6949451 9 1999 102, 1394978 64, 470, 143 63 480,408 0 16,431 , 926 16 9, 8819292 10 1 , 1649084 1 9, 712, 125 10 2000 111 ,0623846 69, 537, 158 63 5209813 0 189908, 166 17 934259310 9 153323950 1 11 , 338,449 10 2001 119, 8275983 73 ,553, 625 62 493 , 585 0 18, 7641102 16 115037, 594 9 112519098 1 14, 727, 979 12 2002 1265197, 368 80,4889343 64 515, 653 0 20, 802, 982 17 11 ,368,399 9 1 ,4211542 1 11 ,600,449 9 NOTE : Includes General , Special Revenue, Debt Service, and Capital Project Funds. INDIAN RIVER COUNTY, FLORIDA TABLE 3 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS CURRENT PERCENT DELINQUENT TOTAL PERCENT FISCAL TOTAL TAX OF LEVY TAS{ TAX OF TOTAL YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS CCTO LEVIYNS 1993 $ 379683 ,977 $ 36,3371153 96.43 % $ 87, 830 $ 36,424, 983 96. 66% 1994 39,304,957 379518, 799 95 . 46 1699530 377688, 329 95 . 89 1995 37,4757209 351835 ,361 95 . 62 667, 860 3655035221 97.41 1996 42, 5079452 40, 9079378 96. 24 152228 40,9229606 96 . 27 1997 43 , 7671639 42,474, 085 97. 04 93 ,054 42,5679139 97. 26 o, 1998 455087,396 439498, 326 96.48 65, 517 43 , 5639843 96. 62 1999 47, 1782979 44,9857116 95 . 35 132,335 459117,451 95 . 63 2000 50, 599, 662 48,9363993 96. 72 108, 698 49, 0451691 96 . 93 2001 53 , 7271318 52, 1489971 97. 07 158, 661 529307, 632 97 . 36 2002 599184, 019 5698569770 96.07 95 ,364 56,9522134 96. 23 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. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax_ year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid 'by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold 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 five- year statute of limitations. The County does not accrue its portion of the County-held certificates due to the immaterial amount. r Imam INDIAN RIVER COUNTY, FLORIDA TABLE 4 JUST AND TAXABLE VALUE OF REAL AND PERSONAL PROPERTY LAST TEN FISCAL YEARS PERCENT OF PERSONAL TOTAL TAXABLE REAL PROPERTY PROPERTY VALUE FISCAL TOTAL TO TOTAL JUST JUST JUST TAXABLE JUST YEAR VALUE ( 1 ) VALUE ( 1 ) VALUE ( 1 ) VALUE ( 1 ) VALUE 1993 $ 6,385,346,500 $ 364, 5371718 $ 6, 749, 884,218 $ 591609114, 845 76 . 4% 1994 6, 703 , 739, 975 372,2239746 7907539633721 59406,2455871 76 . 4 1995 710119412,975 4305527,594 7544199405569 5 ,4649325,993 73 . 4 1996 71305 ,0499473 530, 8255131 7, 835 , 8741604 5 , 7189915, 081 73 . 0 1997 79589, 071 , 741 554, 667,039 8, 1435738, 780 539405864, 817 73 . 0 1998 71807,203 , 863 6229046,910 8 ,429,250, 773 651593944, 874 73 . 1 1999 8, 080,247,333 6529698 , 708 8973299465041 69420,215 ,433 73 . 5 2000 8,671 ,573 ,086 764, 851 ,686 9,436,4249772 65995,948,262 74 . 1 2001 931099672,314 725,3901231 9, 83550629545 7144058965735 75 . 6 2002 105539,705,283 70739419621 11 ,247,646,904 85541 ,205 , 140 75 .9 Source ( 1 ) Indian River County Property Appraiser NOTE : Values are established as of January 1 of the previous calender year, i . e . , January 1 , 2001 , taxable values apply to the fiscal year ending 2002 . INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX RATES - DIRECTAND OVERLAPPING GOVERNMENTS TABLE 5 (PER $ 15000 OF ASSESSED VALUE) LAST TEN FISCAL YEARS COUNTY- WIDEINDEPENDENT SCHOOL COUNTY- FISCAL TOTAL TAXING DISTRICTS YEAR COUNTY( 1 ) BOARD OTHER(2) WIDE CITIES (3 ) OTHER(2) 1993 5 .65490 9.56260 2 . 72080 17 .93830 4. 58254 1 . 63707 1994 5 . 77090 9 . 84460 2 . 58730 18 .20280 4 . 61054 2 . 01939 1995 5 . 95235 10 . 19830 2 .26023 18 .41088 4 . 29846 2 . 71708 00 1996 5 . 92350 10 . 34800 2 . 74083 19 . 01233 4 . 40633 2 . 00503 1997 5 . 92330 10 . 31900 2 . 64544 18 . 87740 3 . 84790 1 . 70220 1998 5 . 80800 10 . 14000 2 . 49690 18 . 84490 3 . 78756 1 . 51850 1999 5 . 73690 10 . 15000 2 . 59470 18 .48160 3 . 68094 1 , 73635 2000 5 . 54870 9.61400 2 .69490 17. 85760 3 .29626 1 . 52091 2001 5 . 54080 9. 55700 2 . 70780 17 . 80560 3 . 19996 1. . 62899 2002 5 . 52340 9. 08200 2 . 56070 17 . 16610 3 .05086 1 . 61045 ( ] ) 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 mils, except for voted levies . (2) Composite tax rates (3 ) Average tax rate INDIAN RIVER COUNTY, FLORIDA TABLE 6 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS COLLECTIONS ADDITIONAL ASSESSMENTS ASSESSMENTS AS % OF ASSESSMENTS COLLECTED OUTSTANDING ASSESSMENTS FISCAL BEGINNING MADE DURING DURING END OF OUTSTANDING YEAR OF YEAR YEAR YEAR YEAR DURING YEAR 1993 $ 3 ,9965105 $ 2 ,381 , 744 $ 199121178 $ 4,465 , 671 29 .98% 1994 4,4651671 3 ,9471208 3 ,2199916 551925963 38 . 27 1995 55192, 963 2459167 2 , 036,465 3 ,401 , 665 37 .45 1996 35401 , 665 359429750 2 , 5209025 49827, 390 34 . 31 1997 4 , 8279390 1 , 555 , 553 11804, 510 4, 578 ,433 28 . 27 1998 43578,433 3 , 8017428 3 ,2835276 59096, 585 39. 18 1999 53096, 585 022 , 727 2, 527, 194 4 ,4929118 36 . 00 2000 4,4929118 2,3505146 2,4919273 4,3501991 36 . 41 2001 4,3501991 1 ,2235748 0961113 31578,626 35 . 82 2002 355789626 474311758 35667, 858 49342, 526 ( 1 ) 45 . 79 ( 1 ) Assessments outstanding end of year are represented by : Water and Sewer Assessments Receivable $ 45209,313 Other Assessments Receivable 133 ,213 $ 45342, 526 INDIAN RIVER COUNTY, FLORIDA TABLE 7 RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS GROSS GENERAL RATIO OF OBLIGATION DEBT SERVICE NET BONDED FISCAL TAXABLE BONDED MONIES NET BONDED TDAXABLBT E NDEBTT PET ERD YEAR POPULATION( 1 ) VALUE(2) DEBT AVAILABLE DEBT VALUE CAPITA 1993 95,641 $ 5, 160, 114, 845 $ 035 ,000 $ 703 , 750 $ 631 ,250 . 0001 6. 60 1994 97,415 5940692459871 _ o _ - 0- - 0- . 0000 N/A 0 1995 100,261 59464,3259993 15 , 0007000 -0 - 1590009000 . 0027 149. 61 1996 102,211 5 , 71899159081 14,280, 000 368, 731 13 ,911 ,269 . 0024 136 . 10 1997 1049605 59940, 864, 817 13 , 535 , 000 6619037 12, 873 ,963 . 0022 123 . 07 1998 106,675 6915999449874 12 , 755 , 000 8855904 115869, 096 . 0019 111 . 26 1999 109, 579 65420,2159433 11 , 945 , 000 1 , 072 , 959 109872, 041 . 0017 99 . 22 2000 112,947 6,995,9489262 115100,000 1 ,3571461 9,7421539 . 0014 86 .25 2001 1159716 7344038969735 10,215,000 1 ,609,998 8,605,002 . 0012 74 . 36 2002 1185149 8,541 ,2059140 193810,000 105,999 18,7245001 . 0022 158 .48 ( 1 ) Source : U . S . Census and Bureau of Business and Economic Research, University of Florida (2 ) Source : Indian River County Property Appraiser INDIAN RIVER COUNTY, FLORIDA TABLE 8 COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30, 2002 PERCENTAGE AMOUNT APPLICABLE TO APPLICABLE TO INDIAN RIVER INDIAN RIVER NET DEBT COUNTY COUNTY JURISDICTION OUTSTANDING RESIDENTS RESIDENTS Indian River County General Obligation Bonds, Series 1995 , Series 2001 $ 189724,001 100 % $ 189724, 001 rn Indian River County School Board 431006,236 ( 1 ) 100 449530, 000 ( 1 ) Sources : ( 1 ) Indian River County School Board, as of June 30, 2002 INDIAN RIVER COUNTY, FLORIDA TABLE 9 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS RATIO OF TOTAL DEBT SERVICE GENERAL( 1 ) TO GENERAL FISCAL TOTAL GOVERNMENTAL EXPENDI - YEAR PRINCIPAL INTEREST DEBT SERVICE EXPENDITURES TURES 1993 $ 1 ,250, 000 $ 158,353 $ 1 ,408,353 $ 76,048,057 . 019 1994 193357000 250, 155 1 , 5859155 779587, 773 . 020 o� 1995 -0- 40 - 0- 719207, 503 N/A 1996 702, 000 6871228 114079228 76, 5615004 . 018 1997 7455000 6629028 1 ,407, 028 94,321 , 079 . 015 1998 780, 000 634, 090 1 ,414, 090 88 ,4239334 . 016 1999 810, 000 6025890 1 ,412 , 890 939403 , 557 . 015 2000 845,000 569,680 19414,680 1019876,515 .014 2001 8851000 534, 190 1 ,4199190 109,5319820 . 013 2002 1 ,4051000 762, 113 2, 1671113 1261134,275 . 017 ( 1 ) Includes General , Special Revenue, Debt Service, and Capital Project Funds . NOTE : The Constitution of the State of Florida, Florida Statute 200 . 181 , and Indian River County do not set a legal debt margin . rr rr r rr rr ri rr �r rr �r rrr r rr rt � rrE rr �r INDIAN RIVER COUNTY DEPARTMENT OF UTILITY SERVICES TABLE 10 SUMMARY OF HISTORICAL REVENUES OF THE SYSTEM LAST TEN FISCAL YEARS 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Uniform Charges Water Sales $ 51038 , 747 $ 593773174 $ 5 , 7305508 $ 6, 657 ,323 $ 7 , 112 ,979 $ 7 , 576 , 145 $ 8, 1055703 $ 85680 ,435 $ 95101 , 553 $ 9, 3731866 Sewer Sales 55827 , 005 6 , 283 , 250 6 , 5005416 7 , 034 , 397 71424 , 615 7 , 4485529 7 , 9131884 7 , 9919280 811541933 81534 , 228 Other 978 , 386 1 , 236, 701 1 , 116 , 865 1 , 442 , 557 1 , 985 , 179 1 , 462 , 839 1 , 162 , 098 1 , 443 , 978 1 , 367 , 291 1 , 684 , 506 Total Uniform Charges $ 11 , 844, 138 $ 12 , 897, 125 $ 13 ,3475789 $ 1551347277 $ 16 , 5221773 $ 16, 527 , 513 $ 17518105 $ 185115 , 693 $ 189623 , 777 $ 19, 592 , 600 w Septage/Sludge 10 ,229 49 , 034 159 , 034 113 ,492 88 , 267127 , 544 118 , 633 223 , 384 293 , 741 381 , 741 Surcharges 238 , 116 241 , 773 231 , 267 132 , 062 1221936 3451390 234 , 729 2311478 2385079 2475137 Interest Earnings 1 , 5257454 1 , 575 , 189 1 , 741 , 677 15346 , 579 1 , 637 , 156 15964 , 251 1 , 8455469 2 , 938 , 338 4 , 577 , 350 2 , 9837032 1989/ 1990 Special Assessments 11599 , 946 645 , 513 384 , 662 4825779 6335974 4963944 53 , 386 166 , 239 37 ,235 9 , 409 1996 Special Assessments 190, 610 1 , 4589337 7415707 1 , 542 , 906 870 , 629 2 , 6191805 Gross Revenues : $ 15 ,217 , 883 $ 15 , 408 , 634 $ 15 . 864 , 429 $ 17, 209, 189 $ 19, 195 , 716 $ 20, 919, 979 $ 20, 175 , 609 $ 23 , 218 , 038 $ 24 , 640 , 811 $ 25 , 833 , 724 Direct Expense 6 , 531 , 838 7 , 332 , 244 6 . 747 , 171 8 , 309 , 142 8 , 144 , 867 8 , 565 , 905 7 , 868 , 098 8 , 361 , 845 92388 , 472 9, 662 , 508 Net Revenues Available for Debt Service $ 8 , 686 , 045 $ 8 , 076 ,390 $ 9, 117 ,258 $ 8 , 900 . 047 $ 113050, 849 $ 12 , 354 , 074 $ 12 , 307 , 511 $ 14 , 856 , 193 $ 15 , 252 , 339 $ 16, 171 , 216 Annual Debt Service 21418 , 859 3 , 6811090 3 , 6727010 45340 , 916 65286 , 771 65264 , 549 6 , 247 , 069 65232 , 654 5 , 7929559 51792 , 839 Debt Service Coverage 3 . 59x 2 . 19x 2 . 48x 2 . 05x 1 . 76x 1 . 97x 1 . 97x 2 . 38x 2 . 63x 2 . 79x NOTE : In accordance with the Water and Sewer Revenue Bonds, Series 1996 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, which are considered contributions of capital . INDIAN RIVER COUNTY, FLORIDA TABLE 11 REVENUE BOND COVERAGE GOLF COURSE LAST TEN FISCAL YEARS NET REVENUE DIRECT AVAILABLE DEBT SERVICE REQUIREMENTS FISCAL GROSS OPERATING FOR DEBT YEAR REVENUES EXPENSES SERVICE PRINCIPAL INTEREST TOTAL COVERAGE 1993 $ 2 , 631 , 552 $ 11845 ,978 $ 785 , 574 $ 50 , 000 $ 503 , 833 $ 553 , 833 1 . 42x 1994 2 , 682 , 844 15999, 173 683 , 671 2809000 469,284 7499284 . 91 1995 2 , 7429702 159259315 8173387 2705000 461 , 332 731 , 332 1 . 12 1996 2 , 750, 896 119047775 846 , 121 2809000 452 , 917 732 , 917 1 . 16 1997 2 , 5629967 198439526 7191440 2903000 4421417 7329417 98 1998 21842 , 342 25068 ,075 774 ,267 3005000 430, 818 730, 818 1 . 06 1999 299289530 29063 , 359 865 , 171 3159000 418 , 518 733 , 518 1 . 18 2000 2 , 9989955 211109920 888 , 035 3255000 4045973 7299973 1 . 22 2001 3 , 095 , 768 25190, 943 9049825 3455000 3909673 7359673 1 . 23 2002 29928 , 157 2 , 188 , 791 739, 366 3603000 3755148 735 , 148 1 . 01 � r r rr rr rr rr �r r rf rr rr �r r� rrf rr rr r� rr INDIAN RIVER COUNTY, FLORIDA TABLE 12 REVENUE BOND COVERAGE INDIAN RIVER COUNTY HOUSING AUTHORITY- COMPONENT UNIT LAST TEN FISCAL YEARS NET REVENUE DIRECT AVAILABLE DEBT SERVICE REQUIREMENTS FISCAL GROSS OPERATING FOR DEBT YEAR REVENUES EXPENSES SERVICE PRINCIPAL INTEREST TOTAL COVERAGE 1993 $ 5909475 $4929928 $ 97, 547 $ 165 , 000 $ 529675 $ 2179675 .45x 1994 615 , 859 4799970 1355889 16700 52 , 695 2195695 . 62 1995 6239320 420, 160 2039160 1699000 515087 2049716 . 99 rn 1996 6239313 470 ,456 152 , 857 1709000 495453 2199453 . 70 1997 6299888 447, 148 1829740 172 ,000 47, 774 2199774 . 83 1998 6379191 416 , 078 221 , 113 1739000 465054 2199054 1 . 01 1999 630, 100 4099647 2209453 1755000 449293 2199293 1 . 01 2000 6665946 4025612 264 , 334 177 , 000 429705 219, 705 1 . 20 2001 716 , 796 4499220 2679576 1799000 40 , 655 219,655 1 . 22 2002 7129236 465 , 551 2469685 181 , 000 39 , 014 2209014 1 . 12 INDIAN RIVER COUNTY, FLORIDA TABLE 13 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS ANNUAL ANNUAL ANNUAL AVERAGE AVERAGE AVERAGE UNEMPLOYMENT UNEMPLOYMENT UNEMPLOYMENT PER CAPITA SCHOOL RATE- RATE- RATE- FISCAL POPULATION INCOME ENROLLMENT COUNTY STATE NATIONAL YEAR ( 1 ) ( 1 ) (2) (3 ) (3 ) (3 ) 1993 95,641 $ 27,201 12,009 10.7% 7. 1 % 7.0% 1994 975415 $ 28,268 13,085 11 .0 6.6 6.3 1995 100,261 $ 30,356 13,034 9.4 5.7 6. 1 1996 102211 $ 31 ,951 132692 9.5 5.5 5.4 1997 104,605 $ 33,496 14,043 8.4 5. 1 5 .4 1998 1069675 $ 34,852 14,300 8. 1 4.5 4.6 1999 109,579 $ 35,202 14,497 7.6 4. 1 4.3 2000 112,947 $ 35,623 147223 7.0 3.8 4.0 2001 1159716 N/A 14,050 6.5 3.9 4.4 2002 1181149 N/A 15,660 7.7 5.4 5.7 SOURCES: ( 1 ) U . S . Census and Bureau of Economic and Business Research, University of Florida (2) Indian River County School Board, Peak Enrollment (3 ) Florida Department of Labor and Employment Security Bureau of Labor Market and Performance N/A- Not Available r� rr �r rr rr � � � r � +� +� � rs � r� rr r. ■t INDIAN RIVER COUNTY, FLORIDA TABLE 14 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS REAL COMMERCIAL FISCAL PROPERTY NEW BANK YEAR VALUE ( 1 ) CONSTRUCTION (4) DEPOSITS 1993 $ 6,38513469500 $ 14536275209 $ 192129103 ,000 (2) 1994 617035739,975 202,2175559 13237, 8171000 (2) 1995 7101194129975 164, 6763298 1 ,268,658,000 (3 ) p� 1996 7,30550491473 240,383 , 102 1 ,422, 161 ,000 (3 ) 1997 79589,0715741 23052659581 1 ,408,200,000 (2) 1998 75807,2031863 270, 410,847 19534, 1169000 (5) 1999 8908052479333 301 ,2945691 197965439,000 (5 ) 2000 89671 , 5731086 3999651 ,994 11830, 7519000 (5) 2001 9, 1099672,314 3725109,920 199651088,000 (5) 2002 10953997059283 433 , 774, 860 2,088, 3563000 (5) ( 1 ) Source : Indian River County Property Appraiser (2 ) As of September 30. Source : Florida Bankers Association (3 ) As of June 30. Source : State of Florida, Division of Banking (4 ) Source : Building Departments-Indian River County, Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of Fellsmere (5 ) As of June 30 . Source : FDIC website, www. fdic. gov 1 INDIAN RIVER COUNTY, FLORIDA TABLE 15 PRINCIPAL TAXPAYERS SEPTEMBER 30, 2002 PERCENT 2001 OF TOTAL TAXABLE TAXABLE TAXPAYER TYPE OF BUSINESS VALUE( 1 ) VALUE Disney Vacation Development, Inc. Resort $ 69,069,073 0,72% Florida Power & Light Electric Utility 619098,500 0.64 BellSouth Telecommunication Telephone Utility 58,6553192 0.62 Windsor Properties Land Development 50 376 579 0.53 00 Indian River Mall Associates Ltd . Regional Shopping Center 47,5747020 0.50 The New Piper Aircraft Aircraft Manufacturer 34, 1211169 036 John 's Island Club Inc . Club and Golf Course 309849,571 032 Adult Community Total Services Retirement Community 30,514, 130 032 Prime Outlet Center Ltd. Regional Shopping Center 29,737,070 0.31 Wal-Mart Stores, Inc . Retail 28,577,908 0.30 $ 440,573 ,212 4.62% ( 1 ) Total Taxable Value $ 8,541 ,205, 140 Source : Indian River County Property Appraiser Note : Values are established as of January 1 of the previous calendar year, i . e . , January 1 , 2001 , taxable values apply to the fiscal year ending 2002 . r. rr �r rt �r �■�r r� sr r � � +� r � � r� r� r. � INDIAN RIVER COUNTY, FLORIDA TABLE 16 SCHEDULE OF INSURANCE SEPTEMBER 30, 2002 TYPE OF COVERAGE DETAILS OF LIMITS OF ANNUAL NAME OF BROKER PERIOD COVERAGE LIABILITY DEDUCTIBLES PREMIUM STATUTORY AD & D/L. B . BRYAN 10/01 /01 TO STATUTORY STATUTORY NONE $ 7,425 . 61 09/30/02 BOILER & MACHINERY/ A.J. GALLAGHER 10/01 /01 TO PER SCHEDULE $ 5000,000 $ 5,000 $ 6,250 09/30/02 REAL & PERSONAL PROPERTY, BUSINESS 10/01 /01 TO PER SCHEDULE PER SCHEDULE $ 1009000 SIR $ 850,599* INTERRUPTION, EXTRA EXPENSE, VALUABLE 09/30/02 GENERAL LIABILITY, PAPERS, MOBILE EQUIPMENT, MISC . EQUIPMENT, $ 25 ,000 SIR AUTO COMPUTER EQUIPMENT, AUTO PHYSICAL PHYSICAL DAMAGE; DAMAGE, CRIME, GENERAL LIABILITY, AUTO $ 2505000 SIR WORKERS ' LIABILITY, PUBLIC OFFICIALS LIABILITY, COMP WORKERS ' COMPENSATION/EMPLOYER ' S LIABILITY, CRIME (AJG) FLOOD/SCHLITT SERVICES 10/01 /01 TO $ 200,000 UNDERLYING $ 200,000 NONE $ 16, 324 09/30/02 LAYER SPECIAL EVENTS/FLORIDA LEAGUE 03/ 14/01 TO $ 1 MILLION $ 1 MILLION $ 250 $ 750 * OF CITIES (FLC) 03/ 13/02 LIQUOR LIABILITY/FLC 11 /01 /01 TO $ 1 MILLION $ 1 MILLION NONE $ 873 10/31 /02 * PREMIUM AT POLICY INCEPTION; INCREASED THROUGHOUT THE YEAR AS PROPERTY/EVENTS ADDED INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 1 of 5 SEPTEMBER 30, 2002 DATEFOUNDED June 29, 1925 COUNTY SEAT Vero Beach FORM OF GOVERNMENT Elected Board of Commissioners Number of Commissioners : Five (5) Term of Office : Four (4) years 0 LOCATION Southeast Coast of Florida AREA ( 1 ) 497 Square Miles EDUCATION (2) Number of Schools : Kindergarten through Grade 5 13 Middle Schools 6-8 3 Senior High School 9- 12 2 Wabasso Special School I Number of Students 155660 Number ofAdministrative and Teaching Personnel 998 Number of Non- Instructional Personnel 845 ( 1 ) Source : Bureau of Business and Economic Research, University of Florida (2) Source : Indian River County School Board r� rr rr r� rr r rr rr r rr rr rr rr r rr rr r� r �■r INDIAN RIVER COUNTY, FLORIDA TABLE 17 BUILDING PERMITS Pg 2 of 5 LAST TEN FISCAL YEARS INDIAN RIVER COUNTY MUNICIPALITIES COUNTYWIDE FISCAL # OF NEW # OF ADDITIONS & # OF NEW # OF ADDITIONS & # OF NEW # OF ADDITIONS & YEAR PERMITS CONSTRUCTION PERMITS ALTERATIONS PERMITS CONSTRUCTION PERMITS ALTERATIONS PERMITS CONSTRUCTION PERMITS ALTERATIONS 1993 801 $ 86,470, 122 1455 $ 10, 114,567 343 $ 591157,087 2840 $ 1656662724 1144 $ 145,627,209 4295 $ 26,781 ,291 1994 955 14456185788 1690 16256,022 477 571598,771 3009 12,377,431 1432 20272175559 4699 28,6337453 1995 870 122,696219 1490 16, 154,930 323 41 ,980,079 2587 175149,968 1193 164,676298 4077 33,3041898 1996 970 1905335,512 1749 35, 1327241 369 5050479590 2476 16, 121 ,421 1339 240,3839102 4225 51253,662 1997 908 137,713256 1781 23,838,749 409 929552,325 2643 189544,614 1317 230265,581 3098 42,3831363 1998 1039 180,336,969 1699 17,3331346 452 901073,878 3024 285195,353 1491 270,410,847 4723 451528,699 1999 1236 1915181 ,886 1778 23,3767870 498 1109112,805 3023 21 ,622,464 1734 301294,691 4801 4459997334 2000 1336 24875237923 1710 2093459326 482 15171285071 3213 2375105426 1818 399,651 ,994 4923 433855,752 2001 1518 259,7055809 1664 24,332,468 503 11274045111 3364 30274210 2021 3729109,920 5028 54,606,378 2002 1658 291 ,5431816 1334 3221189404 599 142,231 ,044 3588 27,3331128 2257 433,774,860 4922 5954515532 Source : Building Departments - Indian River County ( including City of Vero Beach), Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of FeIIsmere. INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 3 OF 5 LAST TEN FISCAL YEARS CITRUS FISCAL PRODUCTION CITRUS PRODUCTION CITRUS ACREAGE/ YEAR (BOXES) ACREAGE PER ACRE TOTAL ACREAGE 1993 229552 , 000 65 ,446 344 . 59 20 . 6 1994 18 , 8905000 695240 272 . 82 21 . 8 1995 21 , 687, 000 69 ,240 313 . 21 21 . 8 N 1996 18 ,4755000 669561 277 . 56 20 . 9 1997 21 , 768 , 000 66 , 561 327 . 04 20 . 9 1998 205437,000 64 , 138 318 . 64 20 . 1 1999 1758709000 645138 278 . 62 20 . 1 2000 20,4385000 605293 338 . 98 18 . 9 2001 18 , 041 ,000 60 ,293 299 . 22 18 . 9 2002 19 , 126, 000 569012 341 . 46 17 . 6 Source : Florida Department ofAgriculture and Consumer Services Website, www.nass .usda.gov/fl rr �r rr r r� .r r r rr rr ■r rr r� r� r� rr rr r r INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 4 OF 5 INCREASE TOTAL (DECREASE) - ----------------------REGISTERED VOTERS (2)-------- ------ ---------- --- YEAR POPULATION ( 1 ) PERCENT REPUBLICAN DEMOCRATIC OTHER TOTAL 1991 92,429 2 .46 269738 169653 3 , 124 46,515 1992 941091 1 . 80 311007 17, 848 39701 529556 1993 955641 1 . 65 30, 523 175585 35603 519711 1994 975415 1 . 85 311762 171763 39689 531214 1995 1001261 2 .92 32 ,634 181282 45637 551553 1996 1025211 1 .94 35 , 507 203226 6,256 621029 1997 1045605 2 .34 36, 895 21 ,443 75700 663038 1998 1065675 1 .98 361481 201761 85394 65 ,636 1999 109, 579 2 . 72 379599 215818 95613 69,030 2000 1121947 3 . 07 38256 221064 115100 715420 2001 115,716 2 .45 395007 229875 113975 731857 2002 1185149 2. 11 40,639 231819 13 ,090 775548 ( 1 ) Source : U . S . Census and Bureau of Business and Economic Research , University of Florida (2 ) Source : Indian River County Supervisor of Elections INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 5 OF 5 LAST TEN FISCAL YEARS Year Total One Cent Tourist Tax Tourist Half Cent ourist Pledge to Sales September 30 Tax Collected Spring Training Facility Bonds Tax 1993 $ 419,471 $ 3 , 300 , 914 1994 551 , 983 _ 6 , 600 , 141 1995 671 ,295 _ 3 , 752 , 414 1996 873 ,393 4 , 275 , 358 1997 982 , 023 _ 4 , 755 , 099 1998 11000,084 5 ,425 , 803 1999 1 , 0589842 5 , 871 , 632 2000 1 , 114,916 6 , 205 , 862 2001 1 ,408 , 046 ( 1 ) $ 2445623 6 , 521 , 024 2002 1 ,410,409 347 , 710 6 , 917 ,278 ( 1 ) A 4th cent was imposed effective Feburary 1 , 2001 INDIAN RIVER COUNTY TABLE 18 DEPARTMENT OF UTILITY SERVICES WATER AND SEWER CUSTOMERS LAST TEN FISCAL YEARS Fiscal Year Water ERUs Sewer ERUs 1993 24 ,067 24 , 505 1994 25 , 590 24 , 999 1995 27 , 124 253424 1996 30 , 635 265416 1997 319898 279724 1998 33 , 747 28 ,406 1999 351418 28 , 065 2000 369999 289544 2001 39,404 29, 644 2002 41 , 242 303297 ERU- Equivalent Residential Unit INDIAN RIVER COUNTY TABLE 19 DEPARTMENT OF UTILITY SERVICES HIGH VOLUME CUSTOMERS SEPTEMBER 30, 2002 (THOUSANDS OF GALLONS) CUSTOMERS WATER SEWER Village Green Manufacturing Housing Park 28,373 28,373 Disney 's Vero Beach Resort 247022 24,022 Department of Correction 10,286 10286 rn Isles of Vero Beach 99908 91908 Indian River County Jail 9,789 9,789 Sebastian River Medical Center 85830 8,830 Acts, Inc . 7, 124 7 124 Days Inn Vero Beach 65507 6,507 River Run 61506 6,506 Captain Hiram 's Key West Resort 51642 51642 The County sold 1 ,971 million gallons of water and 1 , 144 million gallons of wastewater in FY 2002 . The high volume customers accounted for 3 .0% of total annual volume . r r� rr rr r� rr rr rr rr rr rr rr r� rr rr rr r rr r INDIAN RIVER COUNTY TABLE 20 DEPARTMENT OF UTILITY SERVICES HISTORICAL RATE STRUCTURE LAST EIGHT FISCAL YEARS 1995 1996 1997 1998 1999 2000 2001 2002 2002 WATER RATES Billing Charge $ 2 . 00 $ 2. 00 $ 2 . 00 $ 2 . 00 $ 2. 00 $ 1 . 29 $ 1 . 29 $ 1 . 29 Base Facilities Charge (per ERU) Single-Family or Commercial 9. 20 9.20 9. 20 9. 20 9. 20 7. 76 7 . 76 7. 76 Multi-Family or Manufactured Home 9. 20 9. 20 9. 20 9. 20 9.20 6. 60 6. 60 6. 60 Volume Charge-per 1 , 000 gallons (per ERU) 0-3 ,000 gallons 1 . 75 1 . 75 1 . 75 1 . 75 1 . 75 2. 20 2. 20 2. 20 3 ,001 -7, 000 gallons 2. 15 2 . 15 2. 15 2 . 15 2. 15 2 . 42 2 .42 2. 42 7, 001 gallons and over 2 . 55 2. 55 2. 55 2 . 55 2 . 55 3 . 85 3 . 85 3 . 85 Excess Volume Surcharge - Greater than 13 , 000 gallons per month (per ERU) 2. 30 2. 30 2. 30 2 . 30 2. 30 7. 70 7. 70 7. 70 Base Facilities Charge Where Capacity Is Reserved But Lines Are Not Yet Available (per ERU) Single-Family or Commercial 4. 60 4. 60 4.60 4 . 60 4. 60 3 . 88 3 . 88 3 . 88 Multi-Family or Manufactured Home 4. 60 4.60 4. 60 4. 60 4.60 3 . 30 3 . 30 3 . 30 SEWER RATES Billing Charge 2 . 00 2 . 00 2. 00 2 . 00 2. 00 1 . 29 1 . 29 1 . 29 Base Facility Charge ( per ERU) Single-Family or Commercial 13 . 50 13 . 50 13 . 50 13 . 50 13 . 50 14. 58 14 . 58 14 . 58 Multi-Family or Manufactured Home 13 . 50 13 . 50 13 . 50 13 . 50 13 . 50 12 . 40 12 . 40 12 . 40 Volume Charge-per 1 ,000 gallons Single-Family & Manufactured Homes( 1 ,000- 12,000) 3 . 35 3 . 35 3 . 35 3 . 35 3 . 35 2 . 86 2 . 86 2. 86 Multi-Family & Commercial (0- 13 ,000) 3 . 35 3 . 35 3 . 35 3 . 35 3 . 35 2. 86 2. 86 2 . 86 Multi-Family & Commercial (> 13 ,000) 4. 45 4. 45 4. 45 4.45 4. 45 4. 29 4. 29 4. 29 Base Facility Charge Where Capacity Is Reserved But Lines Are Not Yet Available (per ERU) Single-Family or Commercial 6. 75 6. 75 6. 75 6. 75 6. 75 7. 29 7. 29 7. 29 Multi-Family or Manufactured Home 6. 75 6. 75 6. 75 6. 75 6. 75 6. 20 6. 20 6. 20 In addition to the charges shown above, users of the North Beach Water System are subject to a $ 13 per ERU per month surcharge � d OJ 1� �3A Harris, Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA ' Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Report on Compliance pLance and on Internal Control over Financial ' Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards i The Honorable Board of County Commissioners ' Indian River County, Florida ' We have audited the basic financial statements of Indian River County, Florida as of and for the year ended September 30, 2002, and have issued our report thereon dated January 31 , 2003 . 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. Compliance As part of obtaining reasonable assurance about whether the Indian River County, Florida ' s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Indian River County, Florida 's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that ' misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended solely for the information of the Board of County Commissioners, management, federal and state awarding agencies, pass-through entities and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 179 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Independent Auditors Report on Compliance and Internal Control over Compliance Applicable to Each Major Federal Program And State Project The Honorable Board of County Commissioners Indian River County, Florida Compliance We have audited the compliance of Indian River County, Florida with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A- 133 Compliance Supplement and the requirements described in the Executive Office of the Governor's State Projects Compliance Supplement that are applicable to each of its major federal programs and state projects for the year ended September 30, 2002 . The Indian River County, Florida's major federal programs and state projects are identified in the summary of auditor' s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations contracts and grants applicable to each of its major federal programs and state projects is the responsibility of the Indian River County, Florida' s management. Our responsibility is to express an opinion on Indian River County, Florida' s compliance based on our audit. We conducted our audit of compliance in accordance with United States generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A- 133 , Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10 . 550, Rules of the Auditor General. Those standards, OMB Circular A- 133 , and Chapter 10. 550, Rules of the Auditor General require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Indian River County, Florida ' s compliance with those requirements. In our opinion, the Indian River County, Florida complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs and state projects for the year ended September 30, 2002 . Internal Control Over Compliance The management of the Indian River County, Florida is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs and state projects. In planning and performing our audit, we considered Indian River County, Florida 's internal control over compliance with requirements that could have a direct and material effect on a major federal program or state project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A- 133 and Chapter 10.550 , Rules of the Auditor General. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 180 Harris, Cotherman ' & Associates Certified Public Accountants . Chartered Report on Compliance P p January 31 , 2003 Page Two ' Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major ' federal program or state project being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. ' Schedule of Expenditures of Federal Awards and State Projects We have audited the basic financial statements of Indian River County, Florida as of and for the year ended September 30, 2002 , and have issued our report thereon dated January 31 , 2003 . Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards and state projects is presented for purposes of additional analysis as required by OMB Circular A- 133 and Chapter 10 . 550, Rules of the Auditor General and is not a required part of the basic ' financial statements. Such information has been subjected to the auditing g procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information of the Board of County Commissioners, management, federal and state awarding agencies, pass-through entities and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. Vero Beach, Florida ' January 31 , 2003 ' 181 Indian River . County, Florida Schedule of Expenditures of Federal Awards And State Projects For the Fiscal Year Ended September 30 , 2002 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients Department of Housing and Urban Development: Direct Programs : Section 8 Rental Assistance Vouchers 14 . 871 FL- 132 -VO-014 to 017 $ 11205 ,683 $ Family Options Transitional Housing 14 .235 FL29B009001 369444 Shelter Plus Care 14 .235 FL29C 109001 7, 893 Homeless Management Information Systems 14 .235 FL29CIO9003 24 ,692 Total Department of Housing and Urban Development: 1 ,274, 712 Federal Transit Administration : Direct Programs : FTA Section 5307 Grant 20. 507 FL-90-X445 552, 998 FTA Section 5307 Grant 20. 507 FL-90-X416 1 , 961 FTA Section 5307 Grant 20. 507 FL-90-X393 75 ,762 FTA Section 5307 Grant 20. 507 FL-90-X378 909891 Total Federal Transit Administration : 721 , 612 Federal Highway Administration : Indirect Programs : Passed through Florida Department of Transportation : FTA Section 5303 20.505 AF680 13 ,394 FTA Section 5303 20. 505 AL117 679500 County Road 512/Fellsmere Sidewalk 20.205 AH923 1077876 Old Winter Beach Road Sidewalk 20.205 A1597 79, 668 Roseland Road Sidewalk 20 .205 A1372 2769506 Metropolitan Planning Organization 20 .205 AA080 212, 173 Jungle Trail Enhancement 20 .205 AG051 7513273 Total Federal Highway Administration : 115083390 Federal Emergency Management Administration : Indirect Programs : Passed through Florida Dept. of Community Affairs : Terrorism Training Grant 83 . 552 02-PR-70-07-038 -01 -004 499807 Emergency Management Performance Grant 83 . 552 02-CP-04- 10-40-01 -031 28 ,988 Total Federal Emergency Management : 78 ,795 Department of Justice: Direct Programs : State Criminal Alien Assistance Program 16 .606 N/A 38, 122 COPS In School 16 . 710 2000SHWX0650 493758 Local Law Enforcement Block Grant 16 . 592 2001 LBBX2110 85 ,997 Local Law Enforcement Block Grant 16 . 592 2000LBBX2169 5 ,960 Local Law Enforcement Block Grant 16. 592 1999LBVX8118 4,630 Bulletproof Vests Grant 16 .607 01006512 29131 Indirect Programs : Passed through Florida Department of Law Enforcement: Criminal Justice Court Automation 16 . 579 00-CJ-D8- 10-40-01 -213 171 ,404 The accompanying notes are an integral part of the schedule . 182 Indian River County, Florida Schedule of Expenditures of Federal Awards ' And State Projects (Continued) For the Fiscal Year Ended September 30 , 2002 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No . No. Expenditures Subrecipients Department of Justice, continued : ' Indirect Programs : Passed through Florida Department of Law Enforcement : Criminal Justice Court Automation 16 . 579 00-CJ-5D- 10-40-01 -013 $ 78 ,826 $ ' Multi -Agency Drug Enforcement 16 . 579 02 -CJ-2H- 10-40-01 -076 83 , 129 Substance Abuse Advisory Council 16 . 579 02-CJ-2H- 10-40-01 -078 145422 Prevent II 16 . 579 02-CJ-2H- 10-40-01 -077 46 ,676 Passed through Office of the Attorney General : Victim Assistance Program 16 . 575 V 1004 389544 Total Department of Justice: 619, 599 US Fish and Wildlife Services : Indirect Programs : Passed through Florida Fish and Wildlife Conservation Commission : Pelican Island National Wildlife Refuge 15 .617 1448-40181 -00-K-007 35 ,358 ' Artificial Reef Grant 15 .605 FWCC-01194 11 ,250 Total US Fish and Wildlife Services : 46,608 Office of Child Support Enforcement Indirect Program : Passed through Florida Department of Revenue : Title IV D Child Support 93 . 563 CC331 222 , 384 Total Office of Child Support Enforcement: 222,384 ' Office of Library Services : Indirect Program : Passed through Florida Department of State : Born to Read Grant 45 . 310 01 -LSTA-E-08 53 ,000 Total Office of Library Services : 53 ,000 ' Environmental Protection Agency : Indirect Program : Passed through Florida Department of Environmental Protection : Section 319-Vero Lake Estates Stormwater 66 .460 WM803 586, 808 Total Environmental Protection Agency : 586, 808 TOTAL EXPENDITURES OFFEDERALAWARDS : $ 433905296 $ 7215612 The accompanying notes are an integral part of the schedule . 183 Indian River County, Florida Schedule of Expenditures of Federal Awards And State Projects (Continued) For the Fiscal Year Ended September 30 , 2002 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Federal Program/State Project No Transfers to No. Expenditures Subrecipients STATE OF FLORIDA Department of Community Affairs : Direct Project : Emergency Management Base Grant 52 .008 02-CP-04- 10-40-01 -031 $ 102, 846 $ Total Department of Community Affairs : 102, 846 Florida Housing Finance Agency : Direct Project : State Housing Initiatives Partnership 52 . 901 N/A 861 ,069 Total Florida Housing Finance Agency: 861 , 069 Department of Health and Rehabilitative Services : Direct Project: EMS County Awards Grant 64 .005 CG031 26,804 Total Department of Health and Rehabilitative Services : 267804 Department of State, Division of Historical Resources : Direct Project : Fellsmere Old School 45 .031 SC250 179260 Division of Elections : Direct Projects : Voter Education Training 45 .029 N/A 489545 Voting System Assistance 45 . 029 N/A 1429500 Division of Library Services : Direct Project: Library General State Aid 45 . 030 01 -ST-23 258,466 Total Department of State: 4665771 Department of Environmental Protection : Direct Projects : Fellsmere Old School 37 .017 M99048 24,310 Sebastian River Canoe Launch 37 .017 M9814 229355 Beach Preservation Plan 37 .003 98IR1 112, 008 North County Regional Park 37 .017 F1033 150, 000 Total Department of Environmental Protection : 3083673 Justice Administrative Commission : Direct Project : Dependency Court Representation Grant in Aid 21 . 001 N/A 17, 500 Total Justice Administrative Commission : 17, 500 184 Indian River County, Florida Schedule of Expenditures of Federal Awards ' And State Projects (Continued) For the Fiscal Year Ended September 30 , 2002 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients Department of Transportation : Direct Projects : Transportation Disadvantaged Grant 55 . 002 AI723 $ 6, 219 $ Transportation Disadvantaged Grant 55 .002 AK325 159366 ' Public Transit Block Grant 55 . 010 AL321 276,499 Total Department of Transportation : 219585 2769499 Department of Agriculture and Consumer Services : Direct Projects : Citrus Best Management Practices 42 .017 006800 14 ,878 Fairgrounds Agricultural Building/Livestock Pavillion 42 . 001 5649 186,030 Total Department of Agriculture and Consumer Services : 200,908 Department of Management Services : Direct Project : Wireless 911 Emergency Telephone System 72 .001 N/A 1145915 ' Total Department of Management Services : 114 , 915 Department of Revenue : Direct Project : ' Dodgertown-Spring Training Facility 73 .016 N/A 500, 004 Total Department of Revenue: 500, 004 ' TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE : $ 2,621 ,075 $ 2763499 United States Department of Agriculture : FHA Acquisition and Construction Revenue Bonds ' Victory Park Phase I 10 .405 09-031 -596000674-01 -5 $ 1 , 118 , 000 Victory Park Phase II 10 .405 09-031 -596000674-01 -5 191789000 Orangewood Park Apartments 10 . 405 09-031 -596000674-01 -2 11424,400 ' TOTAL BONDS PAYABLE (FEDERALLY GUARANTEED) : $ 397205400 The accompanying notes are an integral part of the schedule . ' 185 Indian River County, Florida Notes to Schedule of Expenditures of Federal Awards and State Projects Year Ended September 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING 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 Compli - ance 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 modified accrual basis of accounting is followed in the Schedule of Expenditures of Federal Awards and State Projects . Under the modified accrual basis , revenues are recognized when they become measur- able and available . Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period . For this purpose, the County con- siders revenues to be available if they are collected within 40 days after the end of the current fiscal period . Expenditures generally are recorded when a liability is incurred, as under accrual accounting . 186 ' Indian River County, Florida Schedule of Findings and Questioned Costs - Federal Awards and State Projects ' Year Ended September 30, 2002 Section I — Summary of Auditor' s Results Financial Statements Type of auditor' s report issued Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes X No Reportable condition(s) identified not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards and State Projects Internal control over major programs : Material weakness(es) identified? Yes X No Reportable condition(s) identified not considered to be material weaknesses? Yes X None reported ' Type of auditor' s report issued on compliance for major federal programs and state projects Unqualified Any audit findings disclosed that are required to be reported in regards to the major federal ' programs or state projects Yes X No Identification of major programs : CFDA ' Number Name of Federal Program or Cluster 14 . 871 HUD Section 8 Rental Assistance 66.460 EPA Sect. 319 Vero Lakes Estates Storm Water Management ' 10 .405 FHA Acquisition & Construction Revenue Bonds : Victory Park Phase I Victory Park Phase II Orangewood Park Apartments CSFA Number Name of State Project 55 .010 FDOT Florida Public Transit Block Grant 52 .901 FHFA — State Housing Initiatives Partnership ' 73 .016 DOR — Dodgertown Spring Training Facility Dollar threshold used to distinguish between ' Type A and Type B programs $3005000 Auditee qualified as low-risk auditee? X Yes No Section II — Financial Statement Findings There were no reportable conditions, material weaknesses, or instances of noncompliance related to the financial statements. ' Section III — Federal Award Findings and Questioned Costs There were no audit findings related to federal awards required to be reported by Circular A- 133 , Section 510(A) . 187 x00 •_, � , ,, opo Q� Harris , Cotherman & Associates Certified Public Accountants - Chartered Management Comments The Honorable Board of County Commissioners Indian River County , Florida We have audited the basic financial statements of Indian River County , Florida as of and for the year ended September 30 , 2002 , and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with United States generally accepted auditing standards ; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ; and OMB Circular A - 133, Audits of States , Local Governments , and Non - Profit ' Organizations . We have issued our Independent Auditor ' s Report on Compliance and Internal Control over Financial Reporting , Independent Auditor ' s Report on Compliance and Internal Control over Compliance Applicable to each Major Federal Program and State Project , and Schedule of Findings and ' Questioned Costs . Disclosures in those reports and schedule , which are dated .lamlary 31 . 2003 . should be considered in conjunction with this management letter . We have also issued separate management letters dated January 31 , 2003 , for each county agency not included in this letter, which should also be considered in conjunction with this management letter . Additionally, our audit was conducted in accordance with Chapter 10 . 550 , Rules of the Auditor General . ' The Rules of the Auditor General ( Section 10 . 554( 1 ) (g) l . a) require disclosure in the management letter of the following matters if not already addressed in the auditor ' s reports on compliance and internal controls or schedule of findings and questioned costs : ( 1 ) violations of laws , rules , regulations , and contractual provisions that have occurred , or are likely to have occurred ; ( 2 ) improper or illegal expenditures : ( 3 ) improper or inadequate accounting procedures ; ( 4) failures to properly record financial transactions : and ( 5 ) other inaccuracies , shortages , defalcations , and instances of fraud discovered by , or that come to the ' attention of, the auditor. There were no such matters noted during the current year . We have also tested your operations for compliance with applicable laws and have provided additional ' comments required to be included by reason of the Rules of the Auditor General of the State of Florida . COMMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Financial Condition Assessment As required by the Rules of the Auditor General ( Sections 10 . 554( g ) ( 6 )c and 10 . 556 ) , we applied financial condition assessment procedures relating to Indian River County . It is management ' s ' responsibility to monitor the entity ' s financial condition , and our financial condition assessment was done as of the fiscal year end and was based in part on representations made by management and the review of financial information provided by same . Determination of Financial Emergency - F. S . Section 218 . 503 ( 1 ) Nothing came to our attention which indicated that the County is , or during the year ended September 305 2002 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) of the Florida Statutes . 189 Harris, Cotherman & Associates Certified Public Accountants - Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Two Florida Department of Banking and Finance Financial Report The annual financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 of the Florida Statutes has been completed . We compared this report with the financial audit report and noted no exceptions for the fiscal year ended September 30 , 2002 . Compliance With Section 218 .415 As required by the Rules of the Auditor General ( Section 10 . 554( 1 ) (g ) 2 . ) , the scope of our audit included a review of the provisions of Section 218 . 415 , Florida Statutes , regarding the investment of public funds . In connection with our audit, we determined that the Board of County Commissioners complied with Section 218 . 415 , Florida Statutes . This report is intended for the information of management, the Board of County Commissioners , and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties . cc��l.�ct.w Cid cu%cc�• _S Ccu5. DOOLC Vero Beach, Florida January 31 , 2003 190 BOARD OF COUNTY COMMISSIONERS 1 1 191 a Harris , Cotherman & Associates Certified Public Accountants - Chartered ' 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 ' Fax 772 - 234-8488 Report on Special Purpose Financial Statements Prepared in Compliance With a ' Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity With Generally Accepted Accounting Principles The Honorable Board of County Commissioners ' Indian River County , Florida We have audited the accompanying fund financial statements of Indian River County , Florida . Board of County Commissioners as of and for the fiscal year ended September 30 , 2002 , as listed in the table of ' contents . These financial statements are the responsibility of the Board of County Commissioners management. Our responsibility is to express an opinion on the financial statements based on our audit . We conducted our audit in accordance with 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 . Those standards require that we plan and perform the audit to obtain ' reasonable assurance about whether the fund financial statements are free of material misstatement . An audit includes examining , on a test basis , evidence supporting the amounts and disclosures in the fund financial statements . An audit also includes assessing the accounting principles used and significant ' estimates made by management, as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion . As described in Note 1 , the accompanying fund financial statements referred to above present fairly only ' the financial position of the Board of County Commissioners at September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . ' In our opinion , the fund financial statements referred to above present fairly , in all material respects , the financial position of the Board of County Commissioners as of September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . ' In accordance with Government Auditing Standards we have also issued a report dated January 31 , 2003 on our consideration of the Board of County Commissioners ' internal control over financial reporting and ' on our tests of compliance with certain provisions of laws , regulations , contracts , and grants . This report is intended solely for the information and use of management, the Board of County ' Commissioners , the Auditor General and applicable Federal and State agencies , and is not intended to be and should not be used by anyone other than these specified parties . CPC A Vero Beach, Florida ' January 31 , 2003 . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 193 Indian River County, Florida Board of County Commissioners Balance Sheet Governmental Funds September 30, 2002 Secondary Emergency Roads Services General Construction Transportation District ASSETS Cash and cash equivalents $ 155292, 539 $ 26,2581362 $ 2,914, 718 $ 53561 , 160 Accounts receivable 256, 868 - 19192 985 Special assessments receivable - - 133 ,213 _ Due from other funds 1253000 Due from other governments 318473914 2743077 202,497 1945837 Inventories 67,030 Deposits 2 ,289 250 661 _ Advance to other funds 625, 000 Total assets $ 19, 5917640 $ 27, 157,689 $ 39252,281 $ 517567982 LIABILITIES AND FUND BALANCES Liabilities : Accounts payable $ 13068, 741 $ 1 ,265 , 731 $ 167, 730 $ 4069947 Interest payable Retainage payable 99582 1355930 Due to other funds Due to other governments 129899 Deferred revenues 859643 - 133 , 213 16 ,765 Other deposits held in escrow 170,050 Total liabilities 113469915 114019661 300, 943 4235712 Fund balances : Reserved for: Debt service Capital projects Advances to other funds - 6259000 Unreserved, reported in : General fund 18,2447725 Special revenue funds - 25 , 1312028 2,9511338 5 , 3332270 Total fund balances 1872447725 25 , 7569028 2,951 ,338 513339270 Total liabilities and fund balances $ 199591 ,640 $ 2791571689 $ 3 ,252,281 $ 517565982 The accompanying notes are an integral part of the financial statements , 194 ' Optional Other Total Sales Governmental Governmental Tax Funds Funds ' $ 2859569287 $ 5494195209 $ 1339402, 275 425168 301 ,213 - _ 1332213 2309000 3555000 760, 191 7649557 61044,073 67 ,030 1 - - 31200 625 . 000 $ 291946,478 $ 55 ,225 ,934 $ 140. 931 ,004 ' $ 117689100 $ 111827825 $ 518609074 3853064 3859064 ' 9859270 3143911 1 ,4451693 3553000 3559000 61 , 579 745478 ' 1635870 459240 4445731 170, 050 2,9175240 2,3443619 897359090 ' - 15540, 187 19540, 187 279029,238 10, 8189634 37, 8473872 - - 6255000 18,244, 725 40, 5223494 7399389130 ' 273029,238 52, 8815315 13291959914 $ 291946,478 $ 555225 ,934 $ 140,9319004 ' 195 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, 2002 Secondary Emergency Roads Services General Construction Transportation District REVENUES Taxes $ 45 ,6949948 $ 3 ,9673345 $ - $ 15 ,9189637 Licenses and permits 484,320 - 31 ,333 _ Intergovernmental 11 ,285,631 - 292329027 47, 564 Charges for services 4, 894,329 - 1039059 2,3823357 Fines and forfeitures 1 ,0575947 Special assessments - - 16 014 _ Interest 9739491 8455456 1115534 316, 806 Miscellaneous 747,687 109,484 2969404 2079839 Total revenues 65 , 1381353 42922,285 227902371 18,8735203 EXPENDITURES Current: General government 7, 564,973 - 5825731 - Public safety 2048^4 - - 1796399796 Physical environment 3689063 Transportation 11495 ,227 29951 ,520 93236, 143 - Economic environment 347,096 Human services 3 ,463 ,574 Culture/Recreation 71303 ,009 Court related 19031 ,964 Debt service : Principal - - - 264,219 Interest and fiscal charges - - - 35 ,980 Capital projects Total expenditures 23 ,621 ,970 2,951 ,520 9, 818,874 177939,995 Excess of revenues over (under) expenditures 4125167383 1 ,9701765 (7,0289503 ) 9333208 OTHER FINANCING SOURCES (USES) Transfers in - - 7, 128,440 Transfers out (7,351 , 806) Transfers to constitutional officers (337257, 517) - - (439,902) Transfers to component unit ( 144, 179) Debt proceeds Total other financing sources (uses) (40, 753 , 502) - 7, 128,440 (439,902) Net change in fund balances 762,881 19970,765 999937 493 ,306 Fund balances at beginning of year 17,4813844 239785 ,263 2, 8511401 4, 839,964 Fund balances at end of year $ 18,244,725 $ 25 ,756,028 $ 2,9511338 $ 5 ,333 ,270 The accompanying notes are an integral part of the financial statements . 196 L6I ' 17i6` S614Z £ I $ 9I £6188 `ZS $ 8 £Z`6Z0`LZ $ , 170 £`8I9 ' 1ZI Z1796 £179` 8 £ 06Z`9I6` £ £ ' 0I9`LL9`0I £LL `L £Z`17i (ZSO`L88 `9) ( 181 `Z6Z` £Z) £8L `ZL VZ i (00060017` I ) ' 000`000411 000`000` II - (6L1 `1717I ) - - (1796`686` £ £) ( S £ 54ZK) (908 ' 1 5L68) - (000`0017` i ) 89L6 £6948 81 £` 5917` i 16L`696` £ £ 06641790`Z (Z9O`L817` 5) ' Zi £` SLL`L8 8LL ` £170` 9I 9LI `66 £`8I £8 £6L9L`OZ 80Z689 £`Z 9Li666 £`81 , L £17` £ 19` i LS17`LL9 ` 1 6I Z`6Z0`Z 000` 99L` I 99L4 £9 £` i Z08 , 1 EE 0066L 11 '6 168 `17 181 6L9`9SL69 5004 £6Z`Z 960`L17 £ - 17L £`989`91 17817` £00` £ - 617L` £L174i 989` SOi ` i I £5`1768`61 iL9`90Z 8LZ` SZL`8 17LS`LL9 - £Oi ` S17L ` iZI 89L `801 `Li £ZI4Z16`ZI ' I £L `Z9 £`Z 9617`986 ZZ8 `17i 171 S`1758 `17 L99'017941 095,990, 1 6I5`0 £Z`17 SOS`biZ`17 Z817`17£ i ` I S £5 `9L 1717£`61L`L 66S`6 £ £ L i S`6 £17`OZ 9170` £1717`9 OSZ` I £17 ' £S9` S I S - - £17 £`8817`08 $ ZZ6`LO9` £ $ 1617466 £` I1 $ spun , spun3 XV JL ' 1e;uawuaan0O ju;uawuaanoO sales IuJo,L jaq;O [euoi;dO 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, 2002 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 449248,631 $ 44,2483631 $ 455694,948 $ 1 ,446,317 Licenses and permits 4249270 424,270 484,320 60,050 Intergovernmental 9,378,943 109796,230 11 ,285,631 489,401 Charges for services 4,038, 549 4,4975151 4, 894,329 3975178 Fines and forfeitures 9213579 921 ,579 19057,947 136,368 Interest 13339,500 1 ,339,500 973 ,491 (366,009) Miscellaneous 362,476 479,640 7473687 268,047 Total revenues 60,7139948 62, 707,001 65, 138,353 2,4312352 EXPENDITURES Current : General government 793619298 8,0407052 7, 564,973 475 ,079 Public safety 19942,644 2, 168,556 2,048,064 1203492 Physical environment 373 ,622 6989622 3681063 330,559 Transportation 496,881 15514,992 15495 ,227 19,765 Economic environment 3745276 3763322 347,096 29,226 Human services 3 ,4729536 35664, 101 31463 ,574 200, 527 Culture/Recreation 7,346,436 73607,233 7,303 ,009 304,224 Court related 1 ,042,662 11085,336 1 ,031 ,964 535372 Total expenditures 2224109355 259155,214 23 ,6219970 19533 ,244 Excess of revenues over (under) expenditures 387303 ,593 37,5519787 415516,383 3 ,9649596 OTHER FINANCING SOURCES (USES) Transfers out (7,341 ,688) (7, 557,707) (7,351 ,806) 2059901 Transfers to constitutional officers (33 ,380, 773 ) (34, 175 ,200) (33 ,2579517) 917,683 Transfers to component unit ( 162,005) ( 162,005) ( 1447179) 179826 Total other financing sources (uses) (4098843466) (411894,912) (40, 753 ,502) 1 , 1411410 Net change in fund balances (2,5809873 ) (4,343 , 125) 76201 591067006 Fund balances at beginning of year 2,5809873 4,343 , 125 17,481 ,844 13 , 1389719 Fund balances at end of year $ - $ - $ 18,244,725 $ 18,2441725 The accompanying notes are an integral part of the financial statements . 198 ' 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 , 2002 ' Variance with Budgeted Amounts Final Budget Actual Positive ' Original Final Amounts (Negative) REVENUES Taxes $ 297319982 $ 2,7319982 $ 31967,345 $ 152359363 1 Interest 6149795 614,795 845 ,456 2309661 Miscellaneous 1095484 1099484 Total revenues 393469777 39346,777 499225285 135759508 ' EXPENDITURES Current : ' Transportation 35346,777 229351 ,290 299519520 19,3999770 Total expenditures 3 ,346,777 2253519290 29951 , 520 1993999770 ' Net change in fund balances - ( 19,004,513 ) 1 ,970,765 20,9751278 Fund balances at beginning of year - 19,0041513 23 ,785 ,263 497805750 ' Fund balances at end of year $ - $ - $ 25 ,756,028 $ 25 ,756,028 ' The accompanying notes are an integral part of the financial statements . 199 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, 2002 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Licenses and permits $ 10,000 $ 10,000 $ 31 ,333 $ 21 ,333 Intergovernmental 23123,512 2, 123 ,512 22327027 108 , 515 Charges for services 79,000 79,000 1039059 249059 Special assessments 150,000 1509000 165014 ( 133 ,986) Interest 1773861 177,861 1119534 (66,327) Miscellaneous 4052000 417,516 296,404 ( 121 , 112) Total revenues 21945,373 2,957, 889 29790,371 ( 1679518) EXPENDITURES Current : General government 748,682 7569182 582,731 1735451 Transportation 9.757,614 104219.763 9,2364143 983 .620 Total expenditures 10,506296 10,975 ,945 94818, 874 1 , 157,071 Excess of revenues over (under) expenditures (75560,923 ) (8,018 ,056) (7,028,503 ) 9895553 OTHER FINANCING SOURCES (USES) Transfers in 713289440 71328,440 7, 128440 (200,000) Transfers to constitutional officers (5 000) (5 000) 5,000 Total other financing sources (uses) 7323 ,440 7,321440 7, 128.440 ( 195 ,000) Net change in fund balances (237,483 ) (694,616) 99,937 7949553 Fund balances at beginning of year 2379483 6949616 23851 ,401 2, 1569785 Fund balances at end of year $ - $ - $ 2,9517338 $ 2,951 ,338 The accompanying notes are an integral part of the financial statements. 200 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 , 2002 Variance with Budgeted Amounts Final Budget Actual Positive ' Original Final Amounts (Negative) REVENUES Taxes $ 15 ,7303412 $ 155730,412 $ 159918,637 $ 1889225 ' Intergovernmental 149000 57,569 475564 ( 10,005) Charges for services 1 ,5055136 198855136 2,382,357 497,221 Interest 3259000 325 ,000 316, 806 ( 8 , 194) ' Miscellaneous 205 ,267 2079075 207, 839 764 Total revenues 17,779, 815 18,205 , 192 18, 873 ,203 6687011 EXPENDITURES Current : Public safety 169612,202 18,054,902 17,6393796 415 , 106 Debt service : Principal 264,220 264,220 264,219 1 Interest and fiscal charges 35 ,980 359980 359980 - Total expenditures 1619125402 1853559102 17,9395995 415 , 107 ' Excess of revenues over ( under) expenditures 867,413 ( 1495910) 933 ,208 150835118 OTHER FINANCING USES Transfers out - ( 100,000) (439,902) (339,902) Transfers to constitutional officers (423 , 191 ) (450, 191 ) - 450, 191 ' Total other financing uses (4235191 ) (550, 191 ) (4399902) 110,289 Net change in fund balances 4445222 (7009101 ) 4939306 1 , 1933407 Fund balances at beginning of year (4445222) 700, 101 4,839,964 45139, 863 ' Fund balances at end of year $ - $ - $ 513339270 $ 5 ,333 ,270 ' The accompanying notes are an integral part of the financial statements . 201 -r ,.. . , � � � � J fx� • , . �` Indian River County, Florida Board of County Commissioners Statement of Net Assets Proprietary Funds September 30, 2002 ' Business-type Activities- Enterprise Funds Governmental Solid Waste Other Activities ' Disposal Golf County Enterprise Internal District Course Utilities Funds Total Service Fund ASSETS Current assets : ' Cash and cash equivalents $ 8723406$ 60 , 489$ 28 , 0225396$ 395889035$ 39 , 9051726$ 7 , 284 , 916 Accounts receivable - net 2135241 1 , 137 251005047 2 , 314 , 425 58 , 534 Due from other governments 745151 900 83 , 151 63 , 287 Interest receivable - 839 , 459 - 8391459 - ' Inventories 53 , 236 594 , 871 25 , 979 674 , 086 725382 Deposits 125 125 402 Total current assets 83522 , 198 123 , 862 31 , 5561773 3 , 614 , 139 43 , 8161972 714792521 Restricted assets : Cash and cash equivalents 10 , 1825480 44 , 031 27 , 4421382 107 , 440 37 , 7761333 Investments - 539 , 576 - 539 , 576 Impact fees receivable 1 , 7061650 1 , 7065650 Special assessments receivable - 4 , 209 , 314 - 41209 , 314 Total restricted assets10 , 182 , 480 583 , 607 33 , 358 , 346 107 , 440 44 , 231 , 873 ' Non-current assets : - Liens receivable 113 , 420 1135420 Unamortized bond costs 1005949 798 , 004 8985953 Intangible assets 89 , 617 605000 1491617 Capital assets Property, plant and equipment 24 , 311 , 191 95057 , 519 2322563 , 338 1 , 708 , 361 2671640 , 409 4553070 Less : Accumulated depreciation (7 , 3841253 ) ( 1 , 617 , 040 ) ( 73 , 169 , 744 ) ( 266 , 776 ) ( 82 , 437 , 813 ) (4295276 ) Total non-current assets 17 , 016 , 555 79541 , 428 1605365 , 018 15441 , 585 186 , 364 , 586 253794 ' Total assets 35 , 7219233 85248 , 897 225 , 280 , 137 5 , 163 , 164 274 , 413 , 431 7 , 5053315 LIABILITIES Current liabilities (payable from current assets): Accounts payable 706 , 399 151 , 916 469 , 536 52 , 814 1 , 38005 2673919 Claims payable - 4 , 261 , 000 Due to other governments 92360 51931 45780 20 , 071 Deferred revenues 23 , 034 233034 Total current liabilities (payable from current assets) 706 , 399 184 , 310 475 , 467 57 , 594 1 , 423 , 770 41528 , 919 ' Current liabilities (payable from restricted assets ) : - Accounts payable 653 , 702 653 , 702 Retainage payable 52 , 110 383 , 039 4353149 Accrued interest payable - 29 , 882 3359166 - 3655048 - ' Bonds payable - 375 , 000 1 , 7651000 2 , 14000 Closure and maintenance costs payable 6 , 7751168 6 , 775 , 168 Customer deposits 60 , 200 1 , 851 , 290 107 , 440 2 , 0181930 Total current liabilities (payable from restricted assets) 6 , 887 , 478 404 , 882 4 , 9881197 107 , 440 12 , 387 , 997 ' Non-current liabilities : Accrued compensated absences 1129289 659496 327 , 009 92 , 692 5975486 59 ,238 Advance from other funds 625 , 000 625 , 000 Bonds payable - net of unamortized discount - 6 , 5283617 701529 , 338 - 771057 , 955 ' Total non-current liabilities 1129289 7 , 219 , 113 701856 , 347 92 , 692 78 , 280 , 441 59 , 238 Total liabilities 7 , 706 , 166 7 , 808 , 305 76 , 320 , 011 257 , 726 92 , 092 , 208 4 , 588 , 157 NET ASSETS Invested in capital assets, net of related debt 163926 , 938 5361862 875099 , 256 1 , 441 , 585 1065004 , 641 25 , 794 ' Restricted for: Debt service 315250 147 , 083 178 , 333 Capital projects - 31 , 0009818 3100 , 818 Unrestricted 11 , 088 , 129 ( 1277520 ) 3037125969 31463 , 853 45 , 137 , 431 25891 , 364 Total net assets $ 28 , 015 , 067$ 440 . 592 $ 148 . 960 . 126$ 4 . 905 . 438 182 , 321 , 223 $ 2 , 917 , 158 The accompanying notes are an integral part of the financial statements . 203 Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenses , and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30 , 2002 Business-type Activities Enterprise Funds Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds OPERATING REVENUES Charges for services $ 9,897,222 $ - $ - $ 2,0099737 Charges for services pledged as security for revenue bonds - 23897,502 19,962,496 Total operating revenues 958979222 2,8973502 191962,496 2,0099737 OPERATING EXPENSES Personal services 2,241 ,234 775,968 5 ,2055239 1 ,271 ,489 Material, supplies , services and other operating 5,237,548 19412,823 49456,401 5673356 Depreciation 579,099 1979964 9,3729020 545399 Total operating expenses 8,057,881 29386,755 192033 ,660 1 , 893 ,244 Operating income ( loss) 15839,341 510,747 9285836 116,493 NONOPERATING REVENUES (EXPENSES) Interest income 654,896 - - 1215925 Interest income pledged as security for revenue bonds - 30,400 2,983 ,032 - Gain on disposal of equipment 800 255 11 ,845 2,200 Interest expense - (384,483 ) (49150, 155) - Bond amortization expense - ( 149742) (98,388) - Intangible amortization expense (91867) - ( 153000) - Loss on disposal of equipment _ _ (868) _ Total nonoperating revenues (expenses) 645,829 (368, 570) ( 11269,534) 1245125 Income before transfers and capital contributions 2,4859170 142, 177 (3409698) 240,618 Transfers - - - 158,048 Capital contributions - - 8,345 ,763 33 ,925 Capital contributions pledged as security for revenue bonds - - 21876,351 Change in net assets 2,4853170 142, 177 10,881 ,416 4327591 Total net assets - beginning 25 ,5293897 2989415 138,078,710 4,472,847 Total net assets - ending $ 28,0151067 $ 440,592 $ 148,960, 126 $ 4,905 ,438 The accompanying notes are an integral part of the financial statements . 204 ' Governmental Activities Internal ' Total Service Funds $ 11 ,906,959 $ 11 ,657,034 ' 22, 8591998 - 349766,957 119657,034 ' 9,4933930 21318,319 1196749128 10,076,942 10,2035482 411160 31 ,3 71 ,540 12,43 6,421 313959417 (779,387) ' 776, 821 2155244 ' 3 ,0139432 = 15 , 100 (4, 5345638) - ' ( 1139130) = (24, 867) (868 ) - ( 868, 150) 215 ,244 2, 527,267 (5645143 ) 158,048 893799688 - 2, 876,351 - 13 ,941 ,354 (5645143 ) i168,379, 869 3 ,4819301 $ 182,3219223 $ 25917, 158 ' 205 Indian River County, Florida Board of County Commissioners Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2002 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County District Course Utilities CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 9,9309436 $ 29899,979 $ 19,6049530 Cash paid to suppliers for goods and services (497629150) ( 1 ,3285742) (4,511 ,036) Cash paid to employees for services (2,2139517) (764, 716) (51664,002) Net cash provided by operating activities 2,9549769 8069521 9,429,492 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Proceeds from advances from other funds Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments - bonds/notes - (360,000) ( 196905000) Principal payments - capital leases - (84,981 ) Interest paid on long-term debt - (377,888) (4, 121 , 175 ) Proceeds from sale of fixed assets 800 255 109977 Purchase of fixed assets (33854,031 ) ( 125 ,799) ( 10,425 ,772) Bond paying agent fees - (835) ( 1 ,071 ) Capital contributed by others - - 915039196 Proceeds from advance from other fund - 100,000 Net cash used in capital and related financing activities (398533231 ) (8499248) (6,7239845) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 654,896 30,400 29387,498 Net cash provided by investing activities 654, 896 30,400 27387,498 Net increase (decrease) in cash and cash equivalents (2439566) ( 12,327) 59093 , 145 Cash and cash equivalents at beginning of year 189660, 852 1163847 509371 ,633 Cash and cash equivalents at end of year $ 18,4179286 $ 104,520 $ 5594649778 Classified as : Current assets $ 8,234,806 $ 60489 $ 28,022,396 Restricted assets 10, 182,480 44,031 279442,382 Totals $ 1894175286 $ 104, 520 $ 55,464,778 The accompanying notes are an integral part of the financial statements . 206 ' Governmental Other Activities Enterprise Internal Funds Total Service Funds $ 23023 ,277 $ 343458 ,222 $ 11 ,6005664 (564,245 ) ( 1191669173 ) (993675236) ( 15251 ,302) (9, 8935537) (2,3119964) 207,730 1353989512 (78,536) 1589048 1585048 - ( 1 ,000) ( 19000) - 1579048 1579048 - ' - (29050,000) - ( 849981 ) - - (4,499,063 ) = 2,200 14,232 (409573 ) ( 149446, 175) (4,088) ' = ( 1 ,906) 9,503 , 196 100,000 - (38,373 ) ( 11 ,4649697) (43088) ' 1219925 3 , 1945719 215 ,244 121 ,925 3 , 194,719 215 ,244 448,330 5 ,285 ,582 132,620 3 ,2479145 729396,477 79152,296 $ 316959475 $ 7796825059 $ 71284,916 ' $ 39588,035 $ 39,905 , 726 $ 712847916 107,440 37, 776,333 - $ 3 ,695 ,475 $ 7756822059 $ 74284,916 ' Continued 207 Indian River County, Florida Board of County Commissioners Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2002 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County District Course Utilities RECONCILIATION OF NET OPERATING INCOME (LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income ( loss) $ 1 ,8399341 $ 510,747 $ 9285836 Adjustments to reconcile operating income to net cash provided by operating activities : Work in progress reclassified as expense 2 983 - 1 ,758 Depreciation 579,099 1979964 9,372,020 Capitalized self-incurred expenses - - (499,956) (Increase) Decrease in assets : Accounts receivable (259729) 2,344 4,382, 859 Due from other governments 47 443 _ Inventories - 20,314 5,295 Impact fees receivable - - (4519078) Special assessments receivable - - (4,409,012) Liens receivable - - (71280) Deposits Increase (Decrease) in liabilities : Accounts payable 2885688 62, 199 13 ,922 Claims payable _ Due to other governments - 15568 _ Other deposits in escrow Retainage payable 52X110 - (759610) Customer deposits 111500 - 126,545 Closure and maintenance costs payable 131 617 Deferred revenues - 133 - Accrued compensated absences 27,717 11 ,252 41 , 193 Total adjustments 1 , 115,428 295,774 8,5005656 Net cash provided by operating activities $ 299549769 $ 8069521 $ 914299492 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ ( 103 232) $ ( 1 546) $ (300, 842) Contributed property, plant. and equipment $ - $ - $ 1 ,576,227 The accompanying notes are an integral part of the financial statements . 208 ' Governmental Other Activities Enterprise Internal ' Funds Total Service Funds ' $ 116.493 $ 393959417 $ (779,387) - 4,741 9,600 545399 10,2035482 415160 (4995956) - ' 165 41359,639 ( 19666) ( 125 ) 47,318 (545704) 899 269508 (79558) ' = (451 ,078) - (4,40%012) (7,280) - ' - - (20) ( 15433 ) 3639376 135 ,684 ' - - 5729000 3 ,645 5 ,213 139500 13 ,500 - (23 , 500) = 138,045 131 ,617 ' - 133 100, - 20, 187 349 6,355 91 ,237 10,0039095 700, 851 $ 207,730 $ 13 ,3985512 $ (78,536) ' $ (209860) $ (426,480) $ (375035 ) $ - $ 19576,227 $ - ' 209 Indian River County, Florida Board of County Commissioners Statement of Fiduciary Net Assets Agency Fund September 30, 2002 ASSETS Cash and cash equivalents $ 2 ,4603303 Total assets $ 21460 ,303 LIABILITIES Accounts payable $ 83 ,430 Other deposits held in escrow 29376 , 873 Total liabilities $ 29460 , 303 The accompanying notes are an integral part of the financial statements . 210 ' Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' The Board of County Commissioners (the "Board") is a County agency and a local governmental entity pursu- ant to Article VIII, Section 1 (e ) of the Constitution of the State of Florida. For financial statement and report- ing 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 . Since the County has implemented GASB Statement No 34 "Basic Financial Statements -and Management ' s Discussion and Analysis -for State and Local Governments" , the format of the Board ' s statements have 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. 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 , be- cause 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 may be 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 organi- zations , 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 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. ' 211 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued 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 . 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 equity, revenues and expenditures or expenses, as appropriate . Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Board's governmental, proprietary, and fiduciary funds are presented. Governmental accounting standards set forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category and the governmental and enterprise combined) for the determination of major funds . These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds . The Statement of Fiduciary Net Assets presents assets held by the Board in a custodial capacity for other individuals or organizations . When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources , and then from unrestricted resources . 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 collectible 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 40 days after the end of the current fiscal period . Expenditures generally are recorded when a liability is incurred, as under accrual accounting . Franchise fees , licenses , 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 . 212 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ' B . Fund Financial Statements - Continued Under the current financial resources measurement focus , only current assets and current liabilities are generally ' included on the balance sheet . The reported fund balance is considered to be a measure of "available spendable resources " . Governmental funds operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets . Accordingly, they are said to ' present a summary of sources and uses of "available spendable resources" during a period . Non-current portions of long-term receivables (special assessments) due to governmental funds are reported ' on their balance sheets in spite of their spending measurement focus . ' Non-current portions of other long-term receivables are offset by fund balance reserve accounts . 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. However, debt service expenditures , as well as expenditures related to compensated absences ' and claims and judgements , are recorded only when payment is due . Proprietary Funds The County ' s enterprise and internal service funds are proprietary funds . In the fund financial statements , proprietary funds are presented using the accrual basis of accounting . Revenues are recognized when they are ' earned and expenses are recognized when the related goods or services are delivered . In the fund financial statements , proprietary funds are presented using the economic resources measurement focus . This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets . Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets . The Board applies all GASB pronouncements as well as all FASB Statements and ' Interpretations , APB Opinions and Accounting Research Bulletins , issued on or before November 30 , 1989 , which do not conflict with or contradict GASB pronouncements . ' Proprietary fund operating revenues , such as charges for services , result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values . Non-operating revenues , such as subsidies , taxes , and investment earnings result ' from nonexchange transactions or ancillary activities . Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements , rather than reported as an expenditure . 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 . ' 213 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Fund Financial Statements - Continued Fiduciary Fund Agency Fund - The Agency Fund is custodial in nature and does not involve measurement of the results of operations . It is accounted for on the accrual basis . Governmental Major Funds General Fund - The General Fund is the general operating fund of the County. It is used to account for all financial resources, except those required to be accounted for in another fund. Secondary Roads Construction Fund - The Secondary Roads Construction Fund accounts for the expenditures of road and bridge construction. 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 all of 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 . ProprielM Mai or 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 . 214 Indian River County , Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES - Continued B . Fund Financial Statements - Continued Other Fund Types Internal Service Funds - Internal Service Funds account for Fleet Management and Self Insurance 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 on behalf of other p ty governments and individuals . C. Cash and Cash Equivalents The Board 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 Board 's funds and are therefore reported as investments on these statements . D. Investments 1 Investments consist of U . S . Treasury Securities , U . S . Government Agency Securities , a guaranteed invest- ment contract, the Local Government Surplus Funds Trust Fund Investment Pool and the Florida Local Government Investment Trust Fund. Investments are reported at fair value in the balance sheet. ' E . Allowance for Doubtful Accounts The Board provides an allowance for water and sewer accounts receivable that may become uncollectable . At Sep- tember 30, 2002, this allowance was $256, 594 . No other allowances for doubtful accounts are maintained since other accounts receivable are considered collectible as reported at September 30 , 2002 . ' F. Inventories Inventories are valued at cost, which approximates market, using the "first-in, first-out" method of accounting . ' Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased . ' 215 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G . Capital Assets Capital assets , which include property, plant, equipment, and infrastructure assets (e . g . , roads , bridges, right of ways , water and sewer distribution systems and similar items), are defined by the County as assets with an initial, individual cost of $ 750 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 donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful lives 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 enterprise fund activities is included as part of the capitalized value of the assets constructed . The Board holds legal title for the capital assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law. Capital assets used by the Board's governmental funds are reported in the financial statements of the County. Capital assets of the Board 's enterprise and internal service funds are reported in the Proprietary Funds financial statements . Property, plant, and equipment of the Board 's enterprise and internal service funds, as well as the Solid Waste Disposal District, are depreciated using the straight line method over the following estimated useful lives : Assets Years Buildings and improvements 25 - 50 Machinery and equipment 3 - 10 Utility distribution systems 25 - 50 H. 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. I. Unamortized Bond Costs Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amor- tized over the life of the bonds using the straight- line method of accounting . 216 1 Indian River County, Florida 1 Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ' J. Unamortized Bond Discounts Bond discounts associated with the issuance of Proprietary Fund revenue bonds are amortized according to the interest method, which results in a constant rate of interest being applied to the amount outstanding at any given time . For financial reporting , unamortized bond discounts are netted against the applicable long-term debt. ' K. Intangible Assets Land use rights were purchased by the County Utilities Fund from the Golf Course Fund for irrigating the golf course with treated effluent. Leachate disposal rights were purchased by the Solid Waste Disposal District Fund from the County Utilities Fund for removal and transportation of leachate from the County landfill to the sewer system . These assets are being amortized using the straight- line method over the estimated useful life of 20 years . L . Deferred Revenues Deferred revenues reported in applicable Governmental Fund Types represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting , are reported as deferred revenues . The deferred revenues will be recognized as revenue in the fiscal year they are ' earned or become available . M. Accrued Compensated Absences ' The Board records compensated absences in the Governmental Fund Types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources . The ' liability is reported in the financial statements of the County . Proprietary Fund Types accrue compensated absences in the period they are earned . ' N. Obligation for Bond Arbitrage Rebate Pursuant to Section 148 (f) of the U . S . Internal Revenue Code , the Board must rebate to the United States ' Government the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. The Board has no arbitrage liability outstanding as of September 30, 2002 . ' O . Landfill Closure Costs Under the terms of current state and federal regulations , the Solid Waste Disposal District ( S WDD) 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 . Re - ' quired obligations for closure and post-closure costs are recognized in the Solid Waste Disposal District Enter- prise Fund . ' 217 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 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 state- ments : ( 1 ) The constitutional officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1 . The operating budget includes proposed expenditures and the means of financing them, as set forth in Chapter 129 of the Florida Statutes . (2) The Department of Revenue , State of Florida, has the final authority on the operating budgets for the Tax Collector and the Property Appraiser included in the General Fund . (3 ) Constitutional officers, all departments controlled by the Board, and outside state and local agencies submit their proposed budgets to the Office of Management and Budget for assistance, review and compilation. The County Administrator then reviews all County departments, state agencies, and nonprofit organization 's budgets and makes his budget recommendation to the Board. (4) On or before July 15 of each year, the County Administrator and the Director of the Office of Manage- ment 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 . (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 governmental and propri - etary 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 govern- mental 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 appropria- tions 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. 218 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued P . Budgets and Budgetary Accounting - Continued (9) The following is a comparison of the appropriations to total expenses for the proprietary funds for the Ifiscal year ended September 30 , 2002 : Variance 1 Total Positive Appropriations Expenses (Negative) Primary Government ' Enterprise Funds : Solid Waste Disposal District $ 956159232 $ 8 , 067 , 748 $ 1 , 547 , 484 Shooting Range 3295798 321 ,209 85589 Golf Course 351669587 2 , 785 , 980 3805607 CountyBuilding 1 , 5933670 1 , 572 , 035 219635 County Utilities 23 , 6769627 23 ,298 , 071 3783556 Internal Service Funds : Fleet Management 1 , 5385126 1 , 524 , 817 139309 ' Self Insurance 12 , 023 , 772 10 , 9115604 1 , 1125168 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 , 2002 , the carrying amount of the Board 's deposits, including $ 8 ,000, 000 of non-negotiable CDs, was $ 14 ,263 , 157, and the bank balance was $ 15 ,499,304 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursu- ant to the Public Depository Security Act of the State of Florida. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. ' B . Accrued Interest Interest earnings on U . S . Treasury Notes and government agency bonds are recorded in the cash and invest- ment pool and then allocated to each fund based on each fund ' s average monthly balance . Interest received within 40 days after September 30 , in the amount of $659, 039 , was allocated to the funds based on their average ' monthly balance for September. ' 219 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2002 NOTE 2 - CASH AND CASH EQUIVALENTS - Continued C . Investments Florida Statutes , the Board ' s Investment Policy, and various bond covenants authorize investments in certifi- cates of deposit, money market accounts , savings accounts , repurchase agreements , the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, Florida Local Govern- ment Investment Trust Fund, obligations of the U . S . Government, obligations of government agencies uncon- ditionally guaranteed by the U . S . Government, obligations of the Federal Farm Credit Banks , obligations of the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation partici - pation certificates , obligations of the Federal Home Loan Bank, obligations of the Government National Mort- gage Association, obligations of the Federal National Mortgage Association and securities of any management type investment company or investment trust registered under the Investment Company Act of 1940 , 15 U . S . C . ss . 80a- 1 et seq . , provided the portfolio is limited to U. S . Government obligations and to repurchase agree- ments fully collateralized by U. S . Government obligations . The Board invested in only these types of instru- ments during the fiscal year. In accordance with generally accepted accounting principles , the Board ' s investments are categorized in the following schedule to give an indication of the level of custodial credit risk assumed at year-end . Category 1 includes investments that are insured or registered, or for which the securities are held by the Board or its agent in the Board ' s name . U . S Treasury Securities and U . S . Government Agencies are held in safekeeping by the Board ' s agent in the Board ' s name . Investments in the Local Government Surplus Funds Trust Fund, the Florida Local Government Investment Trust Fund, money market accounts and guaranteed investment con- tract are not categorized since the investments are not evidenced by securities that exist in physical or book entry form . The Local Government Surplus Funds Trust Fund Investment Pool (Pool) is a "2a-7" like pool, and therefore , the County ' s account balance is used for fair value reporting. All units of local government in Florida are eligible, but not required, to participate in the Pool . In addition to a variety of fixed coupon investments , the Pool also purchases floating rate and adjustable rate securities . These floating rate and adjustable rate securi- ties are used to hedge against interest rate risk and provide diversification to the portfolio . The floating rate and adjustable rate securities all float relative to prevailing short-term interest rates such as LIBOR, Prime , or Fed Funds rates . On September 30, 2002 , the Pool held floating rate securities , either directly or as invested securities lending collateral, at a fair value of $ 1 ,395 ,418 ,000 . The Pool also participates insecurities lending programs . As of September 30 , 2002, the collateral held by the Pool, $4,207,209,480 in cash and $ 14,467,338 in U . S . Government securities, exceeded the fair value of the securities underlying the agreements . As of September 30, 2002, the Pool had 811 local government participants with total investments of approximately $ 13 . 95 billion. The portfolio 's average maturity was 63 days . The Florida Local Government Investment Trust Fund (Trust) is a professionally managed fund available only to public entities in Florida. The investment policy of the Trust restricts investments to direct obligations of or securities fully guaranteed by the United States ; obligations of certain federal agencies , including collateral - ized mortgage obligations ; repurchase agreements ; corporate bonds ; and commercial paper. As of September 30, 2002 , the Trust had investments, at fair value , of approximately $452 . 3 million. Of the total investments in the Trust, 26 . 28 % was invested in asset backed securities and 8 . 81 % was invested in adjustable rate mortgages . 220 Indian River County , Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 2 - CASH AND CASH EQUIVALENTS - Continued ' C . Investments - Continued Except for the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the Florida Local Government Investment Trust Fund (Trust) , investments are reported at fair value based on the average price obtained from three broker/dealers . Fair value of the Pool and the Trust are based on the fair value per share of the underlying portfolio . ' Upon issuance of the Water and Sewer Bonds , Series 1993A and 1993B , the Board invested the required p q sinking fund reserve monies , $ 3 , 139 , 285 , in a guaranteed investment contract with AIG Matched Funding ' Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less than the arbitrage yield of the bonds . All of the Board 's U . S . Treasury Securities and U. S . Government Agencies are held in trust by the Board's custodial bank in the Board' s name . ' Schedule of Investments at September 30, 2002 ' Category Fair 1 Value U . S Treasury Securities $ 129880,737 $ 12,8805737 U . S . Government Agencies 9236523026 9256529026 $ 105 ,532,763 10555329763 Local Government Surplus Funds Trust Fund 9097747881 ' Florida Local Government Investment Trust Fund 79000,000 Guaranteed Investment Contract 39139,285 ' Total Investments $ 2061446,929 ' 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 2001 -2002 fiscal year were levied in October, 2001 . 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 ofApril 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. 221 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 4 - CAPITAL ASSETS A. Governmental Fund Type Capital Assets A summary of changes in the governmental fund type capital assets is as follows : Buildings Total and Gmstruction Capital Land Improvetrents Equipment In Progress Infrastructure Assets Balance at October 1 , 2001 $ 53,7101608 $ 51, 148,945 $ 25,8939511 $ 31446,908 $ 3,296,055 $ 1375496,027 Additions 380,091 2,537,721 3,8851014 1751539778 - 235956,604 Deletions ( 1 ,996,218) - (826, 156) (47573,508) - (71395,882) Balance at September 30, 2002 $ 52,0945481 $ 533686,666 $ 28,952,369 $ 16,027, 178 $ 3,2963055 $ 15450563749 Depreciation expense 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. Be Proprietary Fund Type Capital Assets A summary of changes in the proprietary fund type capital assets is as follows : Buildings Total and Construction Capital Land Improvements Equipment In Progress Assets Balance at October 1 , 2001 $ 13 ,0461594 $ 215,2639113 $ 1154009553 $ 12,2049029 $ 251 ,914,289 Additions 2,842 ,766 9, 0863361 19473 , 497 107585, 948 23 ,988, 572 Deletions - - (3839553 ) (7,423 , 829) (7, 807, 382) 159889,360 224, 3493474 12,4902497 15, 3665148 2689095 ,479 Less Accumulated depreciation - ($74, 136,035 ) ($8 ,7312054) - (82, 8671089) Balance at October 1 , 2002 $ 15 , 8899360 $ 15092135439 $ 3 ,7591443 $ 1593665148 $ 185 ,228 , 390 222 Indian River County , Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 5 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS ' Various bond covenants , resolutions and state regulations require that the Board restrict cash and cash equiva- lents and investments within the Enterprise Funds . Restricted cash and cash equivalents and investments are as follows : Solid Waste Other ' Disposal Golf County Enterprise District Course Utilities Funds Total Sinking Funds $ - $ 583,607 $ 49469,973 $ $ 590539580 Renewal and Replacement 3,347, 112 - 31557,881 69904,993 ' Custorrer Depos its 60,200 = 19851 ,290 107,440 2,0189930 Capital Construction 17,5639238 17,5631238 Closure and Mainte- nance Costs 6,775, 168 - - - 697759168 Total $ 10, 182,480 $ 5839607 $ 27,442,382 $ 1079440 $ 389315,909 NOTE 6 - PAYABLE FROM RESTRICTED ASSETS ' Liabilities payable from the Board ' s Enterprise Funds restricted assets listed above are as follows : ' Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds Total Accounts payable $ - $ - $ 653 ,702 $ - $ 653 ,702 Retainage payable 52 , 110 - 383 ,039 - 435 , 149 Accrued interest payable - 299882 3359166 - 365 ,048 I Bonds payable (current portion) 375 ,000 1 ,765 ,000- - 2, 140,000 Closure & maintenance ' costs payable 6,775 , 168 - - - 657755168 Customer deposits 60,200 19851 ,290 107440 2,0185930 Total $ 69887,478 $ 404 ,882 $ 499889197 $ 1073440 $ 12,3879997 ' 223 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 7 - INTERFUND BALANCES Interfund balances at September 30, 2002, consisted of the following : Due to General Fund from : Nonmajor governmental funds : Court Facilities Fund $ 115 , 000 Metropolitan Planning Organization Fund 10, 000 Total $ 125 , 000 Due to Optional Sales Tax Fund from : Nonmajor governmental funds : Library Bequests Fund $ 225 , 000 Vero Lake Estates Fund 59000 Total $ 230 , 000 Amounts due from the Court Facilities and Metropolitan Planning Organization Funds to the General Fund and amounts due from the Library Bequests and Vero Lake Estates Funds to the Optional Sales Tax Fund represent short term cash loans that will be repaid within the next twelve months . NOTE 8 - INTERFUND TRANSFERS Interfund transfers for the year ended September 30, 2002 , consisted of the following : Transfers to Transportation Fund from : General Fund $ 7, 128 ,440 Transfers to Nonmajor Funds from : General Fund 223 ,366 Optional Sales Tax Fund 1 ,400 , 000 Total transfers $ 8 , 751 , 806 Transfers are used to 1 ) provide matching funds for grants, 2) use unrestricted general fund revenues to finance transportation activities which must be accounted for in another fund, 3 ) use optional sales tax revenues for beach restoration activities which must be accounted for in another fund, and 4) use unrestricted general fund revenues to subsidize a business activity, the Shooting Range . 224 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 9 - RECEIVABLE AND PAYABLE BALANCES ' Receivables Receivables at September 30, 2002 , were as follows : Due from Other Total Accounts Gowrnments Receivables Governmental Activities : General $ 2569868 $ 3, 8479914 $ 4, 104,782 Secondary roads - 2745077 2745077 ' Transportation 19192 202,497 2039689 Emergency services 985 194,837 195 ,822 Optional sales tax - 7609191 7609191 Other governmental 429168 764,557 806,725 Total - governmental activities $ 3012213 . $ 690445073 $ 693455286 Business -type activities : Solid waste $ 2139241 $ 74, 151 $ 287,392 Golf course 1 , 137 99000 109137 ' Utilities 211009047 - 2, 100,047 Other proprietary 589534 63,287 121 ,821 Total - business -type activities $ 29372,959 $ 1469438 $ 255199397 ' Payables Payables at September 30 , 2002 , were as follows : Salaries and Total Vendors Benefits Retainage Payables ' Governmental Activities : General $ 996,909 $ 719832 $ 9,582 $ 130785323 Secondary roads 172649221 1 ,510 135,930 1 ,401 ,661 ' Transportation 128 ,575 39, 155 - 167, 730 Emergency services 3155902 913045 4069947 Optional sales tax 197689100 - 9859270 21753 ,370 Other governmental 135643969 23920 3149911 1 ,882, 800 Total - governmental activities $ 6,038,676 $ 206,462 $ 114459693 $ 7,690, 831 Business -type activities (payable from current assets ) : ' Solid waste $ 6929841 $ 13 , 558 $ $ 7063399 Golf course 147,482 43434 151 ,916 Utilities 431 ,249 38,287 - 469, 536 ' Other enterprise 3079884 12, 849 - 3207733 Business -type activities (payable from restricted assets ) : Solid waste - - 52, 110 52, 110 Utilities 653 ,702 - 383 , 039 150365741 ' Total - business -type activities $ ' 21233 , 158 $ 699128 $ 435 , 149 $ 297379435 225 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES A. Enterprise Fund Bonds Payable Recreational (Golf Course) Revenue Refunding Bonds Series 1993 Purpose - The Series 1993 bonds were issued to legally defease all of the Board ' s outstanding Recreational Revenue Bonds , Series 1985 and Series 1991 . Pledge of Revenues - The revenue bonds are collateralized by a lien on the net revenues derived from the operations of the project and racetrack and jai alai fronton funds accruing annually to the Board. Bonds Issued - At September 30, 2002, the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September 30, Description Date Issue 2002 1993 Recreational Revenue 2 . 80- 5 . 25 % 9/ 1 / 16 $ 9, 875 , 000 $ 711109000 Refunding Bonds 3 / 1 and 9/ 1 Less : Current portion 375 , 000 Unamor ized bond discount 2065383 Long-Term Portion $ 61528 ,617 Mandatory Redemption - The Series 1993 term bonds due September 1 , 2016 , are subject to mandatory re- demption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule : Date Principal Amount September 1 , 2009 $ 500 000 September 1 , 2010 530 000 September 1 , 2011 555 000 September 1 , 2012 580 000 September 1 , 2013 610, 000 September 1 , 2014 645 000 September 1 , 2015 675 000 September 1 , 2016 470, 000 Optional Redemption - The revenue bonds, maturing on or after September 1 , 2004 , (except the Series 1993 term bonds maturing on September 1 , 2016) are subject to redemption prior to maturity, at the option of the County on and after September 1 , 2003 , in whole or in part, at any time , on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and 2 % depending on the year of redemption. 226 ' Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - Continued Water and Sewer Revenue Bonds , Series 1993A ' Purpose - The Series 1993 bonds were issued to legally defease all of the County ' s outstanding Water and Sewer Revenue and Refunding Bonds , Series 1986 and 1986A , Series 1989 , Series 1991 , and Special Assessment Rev- enue Bonds , Series 1989 and Series 1990, and to provide funds to make certain capital improvements to the utility system. ' Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system , and certain surcharges and special assessments . ' Bonds Issued - At September 30 , 2002 , the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September 30 , Description Date Maturity Issue 2002 ' Water and Sewer 2 . 60- 6 . 50% Revenue Bonds, 3/ 1 and 9/ 1 2024 $ 4594759000 $ 399575 , 000 Series 1993A ' Less : Current portion 150055000 Unamortized bond discount 1 ,287 , 772 ' Long-Tenn Portion $ 3792829228 Mandatory Redemption - The Series 1993A term bonds are subject to mandatory redemption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule : Term Bonds due September 1 , 2008 Date Principal Amount September 1 , 2007 $ 1 ,2309000 ' September 1 , 2008 153109000 Term Bonds due September 1 , 2011 Date Principal Amount September 1 , 2009 $ 1 , 3959000 September 1 , 2010 1 ,475 , 000 ' September 1 , 2011 195555000 ' 227 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - Continued Water and Sewer Revenue Bonds , Series 1993A - Continued Term Bonds due September 1 , 2015 Date Principal Amount September 1 , 2012 $ 19640 ,000 September 1 , 2013 1 , 730 , 000 September 1 , 2014 198255000 September 1 , 2015 19925 , 000 Term Bonds due September 1 , 2018 Date Principal Amount September 1 , 2016 $ 29030 ,000 September 1 , 2017 25135 , 000 September 1 , 2018 29250,000 Term Bonds due September 1 , 2020 Date Principal Amount September 1 , 2019 $ 293705000 September 1 , 2020 294909000 Term Bonds due September 1 , 2024 Date Principal Amount September 1 , 2021 $ 29625 ,000 September 1 , 2022 2, 7609000 September 1 , 2023 2 , 905 ,000 September 1 , 2024 1 , 5859000 Optional Redemption - The revenue bonds , Series 1993A, maturing on or after September 1 , 2009 , are subject to redemption prior to maturity, at the option of the County on and after September 1 , 2008 , in whole or in part, at any time , on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and 2% depending on the year of redemption . Water and Sewer Revenue Bonds , Series 1996 Purpose - The Series 1996 bonds were issued to provide funds to make certain capital improvements to the utility system , and to reimburse the County for the purchase of a utility system from the City of Sebastian, Florida. Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system and certain surcharges and special assessments . 228 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - Continued Water and Sewer Revenue Bonds , Series 1996 - Continued Bonds Issued - At September 30 2002 the revenue bonds consisted of the following : :g ' Interest Outstanding at Rates and Original September 30, Description Date Maturity Issue 2002 Water and Sewer 3 . 80- 5 . 45 % Revenue Bonds, 3 / 1 and 9/ 1 2026 $ 38 , 9009000 $ 349950 , 000 Series 1996 Less : Current portion 760 , 000 Unamortized bond ' discount 942 , 890 Long-Term Portion $ 33 ,247 , 110 ' Mandatory Redemption - The Series 1996 term bonds are subject to mandatory redemption prior to maturity, in part (including portions of bonds) at par plus accrued interest, according to the following schedule : ' Term Bonds due September 1 , 2016 Date PrincipalAmount ' September 1 , 2011 $ 15125 , 000 September 1 , 2012 1 , 1859000 September 1 , 2013 19255 , 000 September 1 , 2014 193209000 September 1 , 2015 133959000 September 1 , 2016 1 ,470 , 000 Term Bonds due September 1 , 2019 Date PrincipalAmount September 1 , 2017 $ 15550 , 000 ' September 1 , 2018 1 , 635 , 000 September 1 , 2019 19725 , 000 Term Bonds due September 1 , 2026 Date PrincipalAmount September 1 , 2020 $ 19820 , 000 ' September 1 , 2021 159209000 September 1 , 2022 2 , 0259000 September 1 , 2023 211409000 September 1 , 2024 292559000 September 1 , 2025 23380 , 000 September 1 , 2026 235105000 ' 229 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - Continued Annual Debt Service Pavments - Enterprise Fund Bonds Payable The annual debt service payments for bonds outstanding at September 30, 2002, are as follows : Fiscal Year Recreational Revenue Water and Sewer Refunding Water and Sewer Revenue Ending Refunding Bonds , Series 1993 Revenue Bonds , Series 1993 Bonds , Series 1996 September 30, Principal Interest Principal Interest Principal Interest 2003 $ 375 , 000 $ 3589588 $ 1 ,0055000 $ 2 , 134,235 $ 7609000 $ 15887,754 2004 3959000 340, 775 1 ,055 ,000 21083 , 985 8005000 11852,034 2005 410,000 3219420 1 , 110 ,000 21030, 180 8359000 11813,634 2006 430, 000 300,920 1 , 1709000 139729460 875 ,000 11772, 719 2007 455 ,000 278 ,990 11230, 000 11910,450 920,000 12728,969 2008 -2012 3 ,2555000 15016,935 7 ,3759000 893339950 59360,000 7, 882,931 2013 -2017 1 , 7901000 2907250 956459000 610589825 63990,000 612565800 2018 -2022 - 129495 , 000 312132523 9, 125,000 4, 112,625 2023 -2026 - 4 ,4901000 318, 937 93285,000 1 ,3103650 Total 7 , 110, 000 2 ,9073878 392575 , 000 28 ,0562545 34, 9509000 28 , 618 , 116 Less : Current Portion 375 ,000 1 ,005,000 760,000 Unamortized - bond discount 206,383 152877772 942,890 Total $ 6,528,617 $ 29907,878 $ 37,282,228 $ 281056,545 $ 3332479110 $ 28,618, 116 230 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued ' B . Changes in Governmental Long-Term Liabilities ' Balance Balance October 1 , September 30 , 2001 Additions Deletions 2002 ' Accrued Compensated Absences : $ 2 , 0537116 $ 295245122 $ 292579535 $ 29319 , 703 Capital Leases : 735 , 408 264 , 220 471 , 188 Bonds Payable : ' Spring Training Facility - Revenue Bonds - 2001 Series 16 , 810 , 000 360 , 000 16 , 450 , 000 General O b ligatio n Bonds - 1995 Series 10 , 2159000 - 9259000 99290 , 000 General O bligation Bonds - 2001 Series - 119000 , 000 4809000 1095209000 ' Total Bonds Payable 2770259000 1190009000 1 , 7651000 36 , 260 , 000 Total $ 2998139524 $ 139524 , 122 $ 4 , 2869755 $ 39 , 0501891 ' Of the $2,319 ,703 liability for accrued compensated absences, management estimates that $200,000 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. C. Governmental Long- Term Debt ' General Obligation Bonds Purpose - On July 11 , 1995 , the Board issued $ 15 ,000,000 of General Obligation Bonds, Series 1995 . On Novem- ber 29 , 200 1 , the Board issued the additional $ 11 ,000 ,000 of General Obligation Bonds, Series 2001 . The issuance of the Series 1995 bonds and the Series 2001 bonds were approved by a majority of votes cast in a bond referendum held on November 2 , 1992 , by the qualified electors of the County. The referendum authorized a total of $26 ,000,000 aggregate principal amount of general obligation bonds, in one or more series, of which the Series 1995 bonds are the first and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to acquire by purchase, ' interest in environmentally sensitive lands, together with the necessary restoration, remediation and reclamation activi- ties to preserve and enhance such property and customary and necessary costs incurred in the acquisition. Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied by the Board upon the taxable real and personal property of the Board . 1 231 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Long-Term Debt - Continued General Obligation Bonds - Continued Bonds Issued - At September 30, 2002 , General Obligation Bonds consisted of the following : Interest Original September 30, Outstanding at Description Rates and Date Maturity Issue 2002 General Obligation 3 . 50%- 5 . 00% 1995 Series 1 / 1 and 7/ 1 2010 $ 151000 , 000 $ 922903000 General Obligation 2 . 50%4 . 30% 2001 Series 1 / 1 and 7/ 1 2016 $ 11 , 000,000 $ 10, 5205000 Optional Redemption - The General Obligation Bonds, Series 1995 , maturing on or after July 1 , 2004, are subject to redemption prior to maturity, at the option of the Board on and after July 1 , 2003 , in whole or in part, at any time, on any date at par plus accrued interest and plus a premium ranging ,between 0% to 2% depending on the year of redemption. The General Obligation Bonds, Series 2001 , maturing on or after July 1 , 2013 , are subject to redemption prior to maturity, at the option of the Board on and after July 1 , 2012 , in whole or in part, at any time, on any date at par plus accrued interest and plus a premium ranging between 0% to 1 % depending on the year of redemption. Spring Traning 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 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 known as "Dodgertown" ; (2) pay a premium for a municipal bond insurance policy and a debt service reserve account surety bond, and (3 ) pay certain costs and expenses incurred in connection with the issuance of the Series 2001 bonds . Pledge of Revenues - The principal and interest on the Series 2001 bonds will be payable from and secured by a first lien upon and pledge of the following, together with any investment income realized on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund : ( 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 . 232 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Long-Term Debt - Continued Sprin Tg ranin Fg acility Revenue Bonds - Continued The foregoing are collectively referred to herein as the "pledged revenues" . ' 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 I mmediately following the April 1 , 2021 principal payment on the Series 2001 bonds . Bonds Issued - At September 30 , 2002, Spring Training Facility Revenue Bonds consisted of the following : Outstanding at Interest Original September 30 , ' Description Rates and Date Maturity Issue 2002 Spring Training 3 . 30%- 5 . 25 % ' Facility 4/ 1 and 10/ 1 2031 $ 16 , 810 , 000 $ 16 ,4509000 Optional Redemption - The Series 2001 bonds maturing on or after April 1 , 2012 , are subject to redemption at the option of the County in whole or in part, onApril 1 , 2011 , or on any date thereafter at par plus accrued interest and plus a premium ranging between 0% to 1 % depending on the year of the redemption. ' Mandatory Redemption - The Series 2001 term bonds are subject to mandatory redemption prior to maturity, by lot, at par plus accrued interest, according to the following schedule : Term Bonds due April 1 , 2015 Date Principal Amount April 1 , 2014 $ 685 , 000 April 1 , 2015 7259000 Term Bonds due April 1 , 2017 Date Principal Amount April 1 , 2016 $ 760 ,000 April 1 , 2017 7959000 Term Bonds due April 1 , 2021 Date Principal Amount ' April 1 , 2018 $ 8409000 April 1 , 2019 890 , 000 April 1 , 2020 9303000 April - 1 , 2021 9805000 ' 233 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Long-Term Debt - Continued Spring Traning Facility Revenue Bonds - Continued Term Bonds due April 1 , 2027 Date PnncipalAmount 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 $ 410 000 430 April 1 , 2029 D , 000 April 1 , 2030 455 000 April 1 , 2031 4359000 Annual Debt Service Payments - Governmental Long Term Debt The annual debt service payments for bonds outstanding at September 30, 2002 , are as follows : Fiscal Year General Obligation Bonds General Obligation Bonds Spring Training Facility Bonds Ending 1995 Series 2001 Series 2001 Series September 30, Principal Interest Principal Interest Principal Interest 2003 $ 970, 000 $ 455, 435 $ 595 , 000 $ 386, 967 $ 4605000 $ 7709127 2004 11015 , 000 410, 815 610, 000 369, 118 4752000 7545028 2005 1 , 070, 000 363 , 110 630, 000 3507817 490 , 000 737, 402 2006 1 , 120, 000 311 , 750 6507000 331 , 918 5052000 7213233 2007 1 , 180, 000 2553750 6709000 312, 417 5209000 704 , 062 2008 - 2012 3 , 935 , 000 400, 250 3 , 7459000 11194, 083 2 , 9259000 35204 , 463 2013 -2017 - - 316203000 3922058 396209000 21492, 470 2018 -2022 - - - - 319459000 194435575 2023 - 2027 - - - - 157809000 7089250 2028 - 2031 - - - 117302000 218 , 750 Total $ 9, 290, 000 $ 2 , 197 , 110 $ 10, 5209000 $ 3 , 337, 378 $ 16 , 4509000 $ 11 , 754 , 360 234 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Long-Term Debt - Continued The General Obligation Bonds and Spring Training Facility 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 financial statements ofthe County. ' D . Summary of Defeased Debt Outstanding ' The following outstanding revenue bonds are legally defeased. Since governmental obligations are held in escrow for the payment ofprincipal and interest, the bonds are not liabilities of the Board. ' Outstanding Retired Outstanding at During at September 30, Fiscal Year September 30 , 2001 2002 2002 Capital Improvement Revenue Bonds : Series 1980 $ 22695 , 000 $ 175 , 000 $ 2 , 520 , 000 ' Refunding Revenue Bonds : Series 1992 $ 21875 , 000 $ 660, 000 $ 2 ,215 , 000 ' E. Capital Leases and Notes Payable Governmental Capital Leases The Board has entered into several lease-purchase agreements to purchase various types of equipment and furniture with lease terms varying from 24-60 months . 235 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2002 NOTE 10 - LONGTERM LIABILITIES - Continued E. Capital Leases and Notes Payable - Continued The following is a schedule of future minimum lease payments under capital leases , together with the present value of the net minimum lease payments, as of September 30, 2002 : Year Ending September 30, Amount 2003 $ 300 , 199 2004 2039535 Total Minimum Lease Payment 503 , 734 Less : Amounts representing interest 329546 Present Value ofNet Minimum Lease Payments $ 471 188 The following is an analysis of the leased property under capital leases : Type :)f Property . Capitalized Cost Firetrucks $ 1 , 3109055 The equipment listed above is reported in the financial statements of the County. Annual payments for the firetruck leases are made by the Emergency Services District Fund, E Conduit Debt Obligations From 1986 until 1999, Indian River County issued Industrial Revenue Bonds to provide financial assistance to private- sector entities for the acquisition, construction and equipping of industrial and commercial facilities deemed to be in the public interest. These facilities included a nursing home, an expanded processing facility, a manufacturing facility, and an educational facility, for a total of four series of Industrial Revenue Bonds . The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans . Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. 236 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 10 - LONG-TERM LIABILITIES - Continued F. Conduit Debt Obligations - Continued Original Principal Bond Issue Outstanding Year Bonds and Project Description $ 1890009000 $ 181000,000 1999 St. Edward ' s School , Inc . — Upper School educational facilities 690259000 49812,574 1997 Hetra Computer & Communications Industries , Inc . (XL Vision, Inc . ) 62 ,000 sq . ft. manufacturing facility ' 4, 800,000 1009000 1986 Florida Convalescent Centers , Inc . — 91 -bed skilled and intermediate care nursing home ' 4,0809000 234009000 1997 Ocean Spray Cranberries , Inc . — expansion of 23 , 000 sq . ft . processing facility ' Total $ 2790129574 ' NOTE 11 - PROVISION FOR CLOSURE COSTS Current regulations of the U . S . Environmental Protection Agency (EPA) and the Florida Department of Envi- ronmental 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 recognizes the expenses associated with the final closure and post-closure maintenance of the landfill areas over the active life of those areas . These costs are recognized in each operating period based on the amount of capacity used during that period, regardless of when cash disbursements are made for these costs . ' The SWDD annually obtains updated and revised estimates of total future closure and post-closure costs from its consulting engineers . The provision for closure costs reported in the financial statements as operating ex- pense 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 attributable to the currently active landfill areas (Seg- ment Il, C & D) are approximately $3 . 55 million. These costs will be recognized in future periods as the remaining capacity is filled. This landfill area is expected to close in three phases . The first phase was closed in 1998 , the second ' phase is scheduled in the year 2005 , and the third phase in the year 2008 . To date , 64% of the landfill capacity has been filled. 237 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 11 - PROVISION FOR CLOSURE COSTS - Continued 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, 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 , and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time, the S WDD is making annual deposits to a closure and post-closure cost account to provide for the financing of future closure-related expenditures . The balance in the account for inactive and active landfill areas as of September 30 , 2002 was $ 6, 775 , 168 . NOTE 12 - DEFINED BENEFIT PENSION PLANS A. Florida Retirement System Plan Description : The Board ' s employees , except certain firefighters , participate in the Florida Retirement System (FRS) , a cost-sharing multiple-employer public employee retirement system , administered by the Florida Department of Administration. The FRS is noncontributory for all members ; all contributions are. made by the employer. The FRS provides for vesting of benefits after six years of creditable service . Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service . Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age . Retirement benefits are based on age , average compensation, and years=of- service credit where average compensation is computed as the average of an individual 's five highest years of earnings . For further information concerning the Florida Retirement System and contribution rates , please read the County-wide note on the Florida Retirement System . Contributions to the FRS for the fiscal year ended September 30, 2002, were equal to 10. 34% of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30, 2000, 2001 , and 2002 , were $3 ,410,306, $3 ,424 , 831 and $3 ,236 , 178 respectively, which are equal to 100% ofthe required contribution for each year. B . Firefighters Defined Benefit Pension Plan In October 1981 , the South Indian River County Fire District took over the operations of the City of Vero Beach, Florida's Fire Department. Full-time firefighters were given the option of joining the Florida Retirement System (FRS) or remaining in the City's plan. Twenty full-time firefighters and all of the volunteers elected to remain in the City's plan. Those who joined the FRS received refunds of their contributions from the City's plan. The Board of County Commis. sioners contributes to the City 's plan, on behalf of eligible firefighters, which is a single-employer defined benefit pension plan. The City administers the plan, and by statute, retains fiduciary responsibility for this plan. The City accounts for the plan in a pension trust fund. The City 's Comprehensive Annual Financial Report (CAFR) includes the required financial statements and required supplementary information for the plan . A copy of the City's CAFR may be obtained from the Finance Department of the City of Vero Beach, 1053 20th Place , Vero Beach, FL 32960 . 238 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2002 rNOTE 12 - DEFINED BENEFIT PENSION PLANS - Continued B . Firefighters Defined Benefit Pension Plan - Continued Funding Policy and Annual Pension Cost: The City establishes and may amend the contribution requirements of ' plan members and the City in accordance with Florida Statutes . The Board 's annual pension cost for the most recent actuarial valuation report, as of 2002 , and related information for the plan is as follows : Contribution rates : ' Employee 7% of Compensation State Premium Tax Refund Employer None Required Annual Pension Cost $ 329, 380 Contributions made $ 246, 373 Actuarial valuation date October 1 , 2002 ' Actuarial cost method Aggregate Amortization method N/A Remaining amortization period 25 years ' Asset valuation method 5 year smoothed market Actuarial assumptions : Investment rate of return 8 % Projected salary increases 4% Inflation rate 4% ' Post retirement benefit increases N/A Cost of living increase 2% ' Funding Progress : ' Actuarial Actuarial Accrued UAAL As % Actuarial Value of Liability (AAL) Unfunded Funded Covered of Covered Valuation Assets Frozen Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c ) (b-a)/c ' 10/01 /00 $ 79202, 770 $ 79593 ,964 $ 391 , 194 94 . 8 % $ 1641201 238 . 2% 10/01 /01 $ 7,3129430 $ 7, 8769933 $ 564,503 92 . 8 % $ 861791 650 . 4% ' 10/01 /02 $ 6,993 , 181 $ 799829786 $ 9899605 87 . 6% $ 63 ,483 1558 . 9% 239 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2002 NOTE 12 - DEFINED BENEFIT PENSION PLANS — Continued B . Firefighters Defined Benefit Pension Plan — Continued Annual Pension Cost And Net Pension Obligation Fiscal Year Ending September 30 : 2002 2001 2000 A . Annual Required Contribution (ARC) * $ 242, 148 $ 234,915 $ B . Interest on Net Pension Obligation (NPO) 23 103 (NPO) (23 ) (38,216) (35 ,359) C . Adjustment to ARC ( 1103335) (229, 101 ) (243 , 597) D . Annual Pension Cost (A+B -C) 329,380 425, 800 E . Actual Contributions 208,238 246,373 236, 893 2439951 F. NPO at beginning of year (288, 790) (477,697) (4413984) G Increase (decrease) in NPO (D-E) 83 ,007 188,907 H . NPO at end of year (F+G) (35 , 713 ) (2059783 ) (288, 790) _(477,697) * Includes expected State contribution. Three-Year Trend Information : Percentage Annual Pension Cost of APC Net Pension Year Ending LAP.C.-I Contributed Obligation September 30, 2000 $208238 117% $(477 , 697) September 30, 2001 $425 , 800 56 % $(288 , 790) September 30 , 2002 $3299380 75 % $(205 , 783 ) 240 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 13 - OPERATING LEASES ' The Board has entered into noncancelable operating leases, both as lessor and lessee . Lease terms vary from 2 to 30 years . Lease revenues totaled $233 ,429 and lease expenditures totaled $ 58 ,456 for the year ended September 30 , 2002 . The Board also leases other equipment and office facilities as both lessor and lessee on a month-to-month basis . ' A. Future Minimum Lease Receipts Year Amount ' 2003 $ 2635718 2004 152 ,476 ' 2005 152 ,476 2006 95 , 800 2007 58 , 150 ' 2008 - 2012 975000 2013 - 2017 55800 2018 - 2022 19000 Total future minimum lease receipts : $ 826 ,420 The property being leased is reported in the financial statements of the County and has a carrying value of $ 7,680, 722 . For fiscal year 2002 , total depreciation expense for depreciable property being leased is $435 , 972 . B . Future Minimum Lease Payments The following is a schedule , by years, of minimum future rentals to be paid by the Board for noncancelable operating leases as of September 30 : Year Amount 2003 $ 1259078 2004 119 , 252 2005 112 , 165 2006 47 , 280 12007 21 , 205 2008 - 2012 108 , 225 2013 - 2017 108 , 225 2018 - 2022 27 , 405 Remaining 159900 ' Total future minimum lease payments : $ 684 , 735 ' 241 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 14 - FUND EQUITY Reserved Fund Balances The Board has established certain reserves within the fund equity section of the governmental funds . Reserved fund balances at September 30, 2002, consist of the following : Debt Service Funds : Reserved for Debt Service : Land Acquisition Bonds $ 1 086 536 Spring Training Facility Revenue Bonds 453 , 651 Total $ 1 , 540, 187 Capital Projects Funds : Reserved for Capital Projects : Optional Sales Tax $ 27,0293238 Dodgertown Capital Reserve 2 030 996 Gifford Road Construction 393669723 Shooting Range 131 ,277 Dodgertown Facility 4 998 428 Homeless Assistance Center 228 ,702 Fellsmere Old School 62 , 508 Total $ 37, 8479872 Special Revenue Funds : Reserved for Advances to Other Funds : Secondary Roads Construction $ 6254000 NOTE 15 - FUND EQUITY DEFICIT The following fund had a deficit in fund balance at September 30 , 2002 : Fund Deficit Library Bequests Fund $ 221 ,221 The deficit for the Library Bequests Fund will be eliminated by the proceeds of the private donations in the fiscal year 2003 . 242 Indian River County, Florida ' Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 ' NOTE 16 - RESTRICTED NET ASSETS The Board has established certain restrictions within the net assets section of the proprietary funds . Restricted net assets at September 30, 2002 , consist of the following : ' Restricted for debt service : Golf Course Fund $ 31 , 250 County Utilities Fund 1479083 ' Total $ 1789333 Restricted for capital projects : ' County Utilities Fund $ 3120009818 NOTE 17 - RISK MANAGEMENT A. General Liability, Property and Worker ' s Compensation 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 . During a previous fiscal year, the Board established a fund to account for risk management called the Self Insurance Fund (an internal service fund) . ' The risk management program began on November 1 , 1988 , and has provided coverage for the Board as follows : 11 /1/88- 10/1 /89- 10/1 /92 - 10/1 /94- 10/1 /89 10/1 /92 10/1 /94 Present Worker 's Compensation $ 100 , 000 $ 1005000 $ 1505000 $ 1509000 General Liability 10000 500 , 000 200 , 000 200 , 000 Auto Liability 1005000 5005000 100 , 000 200 , 000 Property Damage 100 , 000 105000 500-259000 500-259000 ' Errors or Omissions 259000 25 , 000 200 , 000 200, 000 Annual Aggregate 6009000 1 , 000 , 000 190009000 1 , 000 , 000 ' The Board purchases commercial insurance for claims in excess of coverage provided by the fund and for all other risks of loss . The Board has not incurred any settlements in excess of the insurance coverage in the past three fiscal years . All departments of the Board participate in the program . Payments are made by various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current year claims . ' The Board is also self insured for medical claims covering employees and their eligible dependents . As re- quired by Section 112 . 081 , Florida Statutes , retirees and their eligible dependents are provided the same health care coverage as is offered to active employees , however, the retirees are responsible for payment of the premiums . Medical claims are paid from premiums contributed by employees , retirees and by the Board . Premiums and contributions are determined by projected claims based on historical and actuarial experience . ' The self insurance plan assumes all risk for claims up to $ 125 , 000 per individual , per year, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2000, 2001 , and 2002 fiscal years . 243 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 17 - RISK MANAGEMENT - Continued A. General Liability, Property and Worker 's Compensation - Continued The claims liability of $4,261 ,000 reported at September 30, 2002 , 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. Changes in the fund 's claims liability amount during the current and prior fiscal years are as follows : Current Year Balance at Claims Balance Fiscal Year and Changes Claim at Fiscal Beginning in Estimates Payments Year End 1988 - 1989 $ $ 5049167 $ ( 88 , 917 ) $ 4152250 1989 - 1990 415 , 250 866 , 250 ( 1679553 ) 1 , 113 , 947 1990 - 1991 1 , 113 , 947 4 , 682 , 363 ( 3 , 467 , 596 ) 213289714 1991 - 1992 2 , 3281714 3 , 426 , 954 ( 3 , 4661903 ) 212889765 1992 - 1993 21288 , 765 4 , 4749994 (4 , 255 , 815 ) 29507 , 944 1993 - 1994 2 , 507 , 944 45825 , 081 (4 , 398 , 521 ) 29934 , 504 1994 - 1995 2 , 934 , 504 4 , 2481626 (4 , 830 , 926 ) 223529204 1995 - 1996 2 , 3525204 5 , 201 , 050 (4 , 990 , 111 ) 29563 , 143 1996 - 1997 295635143 5 , 2262091 ( 5 , 461 , 151 ) 25328 , 083 1997 - 1998 21328 , 083 6 , 541 , 439 ( 51917 , 522 ) 29952 , 000 1998 - 1999 21952 , 000 615985493 (6 , 517 , 493 ) 3 , 0331000 1999 - 2000 35033 , 000 62401 , 416 ( 61407 , 416 ) 3 , 0271000 2000 - 2001 39027 , 000 81322 , 143 ( 79660 , 143 ) 3 , 6891000 2001 - 2002 3 , 6895000 998502070 ( 9 , 278 , 070 ) 4 , 261 , 000 Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially determined and at September 30, 2002 , retained earnings of $2,251 , 192 have been designated for this purpose . The Board has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30, 2002 , the undiscounted Iiability was the greater of the two amounts . The discount rate used in the calculation was four percent. NOTE 18 - 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 . 244 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2002 NOTE 18 - COMMITMENTS AND CONTINGENCIES - Continued A. Litigation - Continued The Board is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations . In the opinion of management and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the Board. ' B . Contracts and Other Commitments The Board has various contracts and commitments outstanding at September 30, 2002 . In the General Fund, contracts are for the Health Department Air Pre-conditioning, Re-Roofing Projects and the Wireless Master Plan. In the Special Revenue Funds , contracts are for the Beach Preservation Plan, Kings Highway Phase II Improvements and various road paving and drainage projects . In the Capital Projects Funds , contracts are for the Main Library and North County LibraryAdditions, the North County Regional Park, Dodgertown Training Facility, Jungle Trail/Pelican Island Improvements and various stormwater projects . In the Enterprise Funds, contracts are for the South County Reverse Osmosis Plant Membrane Replacement, Solid Waste Disposal District Scalehouse Improvements, Sebastian Water Expansion - Phase 31), Wetland Mitigation Site Maintenance , Hazardous Waste Collection and various other water and sewer projects . A summary of these projects at September 30, 2002 , is as follows : Special Capital General Revenue Projects Enterprise Total Total contract price $ 186,333 $ 159659241 $ 239345238 $ 17,5829579 $ 569773 ,391 Total paid as of September 30, 2002 1119126 4239, 192 139614,868 9,542,054 27,507,240 Remaining obligations at September 30, 2002 $ 75207 $ 11 ,420 049 $ 9.7309370 $ 8,040 525 $ 29,266 151 In addition to the contractual commitments above, the Board has committed $7,000,000 for the construction of a Public Works/Fleet facility. 1 C . Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies . ' If any expenditures are disallowed as a result of these audits , the claims for reimbursement to the grantor agency would become a liability of the Board . In the opinion of management, any such adjustments would not be significant. NOTE 19 - SUBSEQUENT EVENTS ' On February 5 , 2003 , the Board purchased the Lost Tree Islands for $ 15 , 105 , 000 . The Board used $ 12, 375 ,000 of General Obligation Bonds , Series 2001 , funds and an interfund loan of $2, 730, 000 . ' 245 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772 . 234-8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Board of County Commissioners Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Board of County Commissioners, as of and for the year ended September 30, 2002 , and issued our report thereon dated January 31 , 2003 . 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. Compliance As part of obtaining reasonable assurance about whether the Board of County Commissioner ' s fund financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Board of County Commissioner' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information of management, the Board of County Commissioners, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. ' 4�rt16 , Q,kc � VIJa'�OG%r�. s pa' — CY.t�rc Vero Beach, Florida January 31 , 2003 " Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 246 i Harris , Cotherman i & Associates Certified Public Accountants - Chartered 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772 - 234-8484 Management Comments Fax 772 -234-8488 The Honorable Board of County Commissioners Indian River County , Florida We have audited the basic financial statements of Indian River County , Florida , including the individual fund financial statements of the Board of County Commissioners , as of and for the year ended September 30 , 2002 , and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with United States generally accepted auditing standards ; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ; and OMB Circular A - 133, Audits of States, Local Governments, and Non Profit Organizations . We have issued our Independent Auditor ' s Report on Compliance and Internal Control over Financial Reporting, Independent Auditor ' s Report on Compliance and Internal Control over Compliance Applicable to each Major Federal Program and State Project, and Schedule of Findings and Questioned Costs . Disclosures in those reports and schedule , which are dated January 31 , 2003 , 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 . The Rules of the Auditor General ( Section 10 . 554 ( 1 ) ( g) l . a ) require disclosure in the management letter of the following matters if not already addressed in the auditor ' s reports on compliance and internal controls or schedule of findings and questioned costs : ( 1 ) violations of laws , rules , regulations , and contractual provisions that have occurred, or are likely to have occurred ; (2 ) improper or illegal expenditures ; ( 3 ) improper or inadequate accounting procedures ; (4) failures to properly record financial transactions ; and ( 5 ) other inaccuracies, shortages , defalcations , and instances of fraud discovered by, or that come to the attention of, the auditor. There were no such matters noted during the current year. In addition , we are submitting for your consideration the following recommendations designed to help the Board of County Commissioners improve the internal control structure and achieve operational efficiencies . We have also tested your operations for compliance with applicable laws and have provided additional 1 comments required to be included by reason of the Rules of the Auditor General of the State of Florida FINDINGS AND RECOMMENDATIONS TO IMPROVE THE ORGANIZATION ' S INTERNAL . CONTROL AND OPERATING PROCEDURES DISPOSITION OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS • In accordance with the Rules of the Auditor General (Section 10 . 554 ( l ) ( g ) l . b ) we have noted that all findings and recommendations made in the preceding annual financial audit have been corrected . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 247 Harris , Cotherman & Associates Certified Public Accountants - Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Two CURRENT YEAR FINDINGS AND RECOMMENDATIONS : Utilities Department : Irrigation Fees : During the current year we noted certain instances where the monthly charge for irrigation triage was incorrectly coded . We recommend the Utilities Department review, on a regular basis , the various fee codings set up for billing to ensure established rates are being charged. We also recommend that any refunds or adjustments relating to these items be made accordingly. Computer Software Implementation , Based on the upcoming software implementation we recommend that the Utilities Department employ accounting staff as well as information technology staff to assure that in the software conversion , all balances reconcile between the parallel computer systems . These balances should be reconciled daily to ensure the conversion is working effectively and accurately . All problems should be resolved timely and all standard reporting information obtained in the prior system should continue to be provided with the new software . General : Information Technology and Internal Control Based on Statement on Auditing Standards 94( SAS 94) , effective for fiscal year 2002 , we noted certain recommendations in regards to information technology and internal control . These recommendations are as follows : 248 1 Harris , Cotherman & Associates Certified Public Accountants • Chartered The Honorable County Commissioners ' Indian River County, Florida Management Comments Page Three 1 . ) Access to the server room should be secured and limited to appropriate personnel . 2 . ) A procedure for securing a backup tape in an off- site storage facility should be developed . 3 . ) Policy/Procedure/Network manuals and documentation should be developed . 4 . ) With implementation of the Munis software , a security policy should be developed so ' that network personnel and financial application personnel have segregation of duties . COMMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA ' Determination of Financial Emergency = F. S . Section 218 . 503 ( 1 ) Nothing came to our attention which indicated that the Board of County Commissioners is , or during the year ended September 30 , 2002 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) of the Florida Statutes . Florida Department of Banking and Finance Financial Report The annual financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 of the Florida Statutes has been completed . We compared this report with the financial audit report and noted no exceptions for the fiscal year ended September 30 , 2002 . 1 r 249 Harris, Cotherman & Associates Certified Public Accountants • Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Four Compliance With Section 218 .415 As required by the Rules of the Auditor General ( Section 10 . 554( 1 )(g)2 .), the scope of our audit included a review of the provisions of Section 218 .415 , Florida Statutes, regarding the investment of public funds . In connection with our audit, we determined that the Board of County Commissioners complied with Section 218 .415 , Florida Statutes . This report is intended for the information of management, the Board of County Commissioners, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties . Vero Beach, Florida January 31 , 2003 250 BOARD OF COUNTY COMMISSIONERS DEPARTMENT OF UTILITY SER VICES 1840 25th Street, Vero Beach, Florida 32960 FAX: (407) 770-5143 ' 11 `O .ice Monday, March 03 , 2003 Harris , Cotherman & Associates , CPA ' s 5070 North A- 1 -A, Suite 250 ' Vero Beach, FL 32963 �lORI4�' Attn . : Sarah Hansard, Lead Auditor RE : Response to Management Comments for : Fiscal Year Ending September 30, 2002 To Ms . Hansard, The following are our responses to the Management Comments resulting from your audit of the Department of Utility Services as they relate to the general -purpose financial statements of' Indian River County for the year ending September 30 , 2002 . ' We thank your staff in expanding our knowledge of auditing procedure practices and look forward to implementing several of the recommendations brought forward in your evaluation of our finance practices . There is always opportunity for improvements and we readily accept your ideas . The following is the Departments response to written comments from your office in the order they were presented in your letter . a.) Irrigation Fees: During the current year, we noted certain instances where the monthly charges for irrigation usage were incorrectly coded. We recommend that Utilities Department review, on a regular basis, the various fee coding set up for billing to ensure established rates are being ' charged We also recommend that any refunds or adjustments relating to these items be made accordingly. i . ) Response : We concur with your observation . The rates and charges instituted in October 1999 included irrigation accounts . There are forty-four (44) specific irrigation accounts that were not properly coded to reflect the most recent billing rates . As a result of this , these forty- four customers were placed at a higher usage rate ( surcharge ) resulting in higher monthly billing charges than should have been imposed . This only affected the irrigation accounts wherein monthly invoices are strictly related to water consumption for the purpose of landscape irrigation and does not impact the sewer system . ii . ) Based on the Auditor ' s comments , staff has reviewed each of the specific irrigation customers and has instituted a credit for each one . Letters have been forwarded to these individual customers noting the cause and amount of each respective credit . These credits have been applied toward the customer ' s outstanding balance . iii . ) Corrective Action : The Utilities Department will conduct quarterly reviews of various customer accounts to assure charges and fees are being properly applied . These accounts (residential , commercial , irrigation , etc . ) will be selected at random and audited for quality assurance . b.) Computer Software Implementation : Based on the upcoming software implementation we t recommend that the Utilities Department employ accounting staff as well as information technology staff to assure that in the software conversion, all balances reconcile between the ' parallel computer systems. These balances should be reconciled daily to ensure the conversion 1s 251 Page I of 2 11V Nrrn N TTS r, n r . .�, ,,.... �N < < .,� CP VOn . Mir nu ,nnI DRAFT Inc working effectively and accurately. All problems should be resolved timely and all standard reporting information obtained in the prior system should continue to be provided with the new software. i . ) Response : With respect to additional accounting staff we offer the following . The Department realizes the benefits of having an onsite Certified Public Accountant (CPA) or an equivalent individual to monitor and track the Department ' s financials . A qualified CPA has the ability to institute protocols and procedures commensurate to the review practices in place by independent Auditors . The same CPA should have sufficient foresight to institute predictive financial measures to assure accurate reporting. ii .) Corrective Action : The Utilities Department is moving forward on re-designating the duties assigned to staff to better serve auditing needs and comments . Items such as monthly reconciliation ' s , account balances, capital expenditures, fixed asset monitoring & control , can be improved given sufficient resources . The job description qualification assigned to the current Controller will be quantified to include CPA certification in the State of Florida . C.) Computer Software Implementation : Based on the upcoming software implementation we recommend that the Utilities Department employ accounting staff as well as information teehnolo V staff to assure that in the software conversion, et al, i . ) Response : With respect to Information Technology ( IT) needs we offer the following . The Department has relied upon outside professional services and consultants to address programming needs . Resources have been committed from County staff and outside consultant assistance is available to assist in the conversion . In-house data processing staff and the Customer Service/Billing Supervisor along with an outside programmer are making progress in converting the utility database from the outgoing AS/400 system to the MUNIS software system. As the MUNIS system moves forward in the next fiscal years , the need for more technical assistance may require full-time in -house support. The need to employ a full time IT staff could then be considered and if justified, presented to the Board of County Commissioners during the Budget cycle for consideration . On a short-term basis , the Department will be presenting for Budget consideration the concept of sharing the employment costs associated with retaining a full-time Countywide Information Technology Specialist that would better serve all Department needs . ii .) Corrective Action : The Utilities Department will monitor the progress made during the conversion process and apply additional resources if necessary to assure all balances reconcile between the parallel computer systems . We wish to commend your firm on the thoroughness and professionalism displayed during the engagement. We welcome your input, feedback and attempts to assist our Department in improving Utility operations and accountability . We have committed time and resources to improving our current and future practice and look forward to improving our evaluation in the upcoming audit year . Sincerely, C, /on W . Erik Director of Utility Services Cc : Joe Baird, Assistant County Administrator Jason Brown, Office of Management & Budget Shai Francis, Assist. Dir. of Finance Dept. Steven Doyle, PE, Assist. Dir. of Utilities Bill Barie, Coniroller Art Reisfeld, Billing Services Supervisor Carol Besancon, Senior Account Clerks Barbara Parker, Senior Account Clerks Karin Ashmore, Harris, Cotherman & Assoc . et. al . 252 Page 2 of 2 F:\Utilities\UTILITY - ACCOUNTING\Harris Cothertrun Assoc CPA's 001 - Mar 03 2003 DRAFT.doc BOARD OF COUNTY COMMISSIONERS 1840 25th Street, Vero Beach, Florida 32960-3365 Office of Management & Budget Q ' Telephone: (772 ) 567-8000 ' C A . U February 28 , 2003 OR1�4' Harris, Cotherman and Associates , CPA ' s 5070 North AIA, Suite 250 Vero Beach, FL 32963 Re : General Management Comment – Information Technology and Internal Control Dear Reader: Please find below our responses to the management comments resulting from your audit of the general purpose financial statements of Indian River County for the fiscal year ended September 30, 2002 , Information Technology and Internal Control We are taking measures to ensure the security of the server room . Access will be limited to appropriate personnel—primarily Computer Services employees . A new solid core door with security locks will be installed to prevent unauthorized access to this area. The network server is backed up on tape nightly. Currently, a rolling one-month history is provided with the use of six (6) backup tapes . Each night, the oldest data is overwritten with the backup of the current day' s data. In the future, a tape with the most current data will be taken to storage off-site on a weekly basis . This will provide backup data off-site that is no more than five days old. Thank you for your forward-looking approach in addressing the issue of security and internal controls on the Munis software system. As you are aware, the County began recording financial transactions on this system at the beginning of the 2002/03 fiscal year. We are deploying a policy to address internal controls on the new software. Due to the limited staffing of our Computer Services Department, it is difficult to segregate the duties of network personnel from financial application personnel completely. However, we are limiting the number of Computer Services employees that have authority on the financial application. The two employees who will continue to have permissions on the financial application will be monitored as a system of cross-checking. Due to limited County staffing and resources , it is not practical to have two separate computer services departments—one for serving as the County network administrator and one for serving as the Munis system administrator—to meet the recommendation for ' 253 addressing this issue. Computer Services employees will not post any financial transactions to the system without these transactions being approved by other staff members . The software system records a detailed audit trail of users who initiate and approve each financial transaction. County staff does not have the ability to edit or delete this audit trail for any transaction. We are working diligently to ensure that proper internal controls and segregation of duties are maintained in this area. County staff is currently working on a Policy/Procedure/Network manual for proper documentation and control of information technology. This document will address security of financial data, documentation of transactions, and internal controls relating to information technology throughout the organization. We wish to commend your firm on the thoroughness and professionalism displayed throughout this audit. Thank you for identifying this area of concern. Sincerely, Jason own Budget anager cc : Joseph A. Baird, Assistant County Administrator Edwin M. Fry, Finance Director Basil D . Dancy, Computer Services 254 f 1 1 1 1 1 CLERK OF THE CIRCUIT COURT 1 1 r t i255 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772 -234-8484 Fax 772-234-8488 Report on Special Purpose Financial Statements Prepared in Compliance With a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity With Generally Accepted Accounting Principles The Honorable Jeffrey K. Barton Clerk of the Circuit Court Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida, Clerk of the Circuit Court as of and for the fiscal year ended September 30, 2002 , as listed in the table of contents . These financial statements are the responsibility of the Clerk of the Circuit Court ' s management. Our responsibility is to express an opinion on the financial statements based on our audit . We conducted our audit in accordance with 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 . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement . An audit includes examining, on a test basis , evidence supporting the amounts and disclosures in the fund financial statements . An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1 , the accompanying fund financial statements referred to above present fairly only the financial position of the Clerk of the Circuit Court at September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Clerk of the Circuit Court as of September 30 , 2002, and the results of operations for the year then ended in conformity with generally accepted accounting principles . In accordance with Government Auditing Standards we have also issued a report dated January 31 , 2003 on our consideration of the Clerk of the Circuit Court ' s internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations , contracts, and grants . This report is intended solely for the information and use of management, the Clerk of the Circuit Court, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . CPO S Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Com paames Practice Section Indian River County, Florida 1 Clerk of the Circuit Court Balance Sheet Governmental Funds September 30, 2002 Public Records Total Modernization Governmental General Fund Funds ASSETS Cash and cash equivalents $ 6979762 $ 8469212 $ 195435974 1 Accounts receivable 199622 - 19 , 622 Due from other governments 42 , 799 - 425799 Total assets $ 760 , 183 $ 8469212 $ 1 , 606 , 395 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 1805704 $ 72 $ 180 , 776 1 Due to other governments 5795479 - 579 ,479 Total liabilities 760 , 183 72 7605255 Fund Equity : Fund balances : Unreserved - 8469140 8469140 1 Total fund equity - 846 , 140 846 , 140 Total liabilities and fund equity $ 7605183 $ 846 ,212 $ 156063395 The accompanying notes are an integral part of the financial statements . ' 257 Indian River County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2002 Public Record Total Modernization Governmental General Fund Funds REVENUES Intergovernmental $ 222 , 384 $ - $ 2229384 Charges for services 2 ,231 ,382 1409394 29371 , 776 Interest 51 , 584 15 , 621 67, 205 Total revenues MEN 295059350 156 , 015 2 , 661 , 365 EXPENDITURES General government 1 , 8219464 29, 796 1 , 851 ,260 Court related 2 , 7339713 - 2 , 7335713 Total expenditures 4, 5551177 29 , 796 4 , 584 , 973 Excess ofrevenues over (under) expenditures (2 , 0499827) 126 ,219 ( 1 , 9235608) OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 2 , 629, 306 - 2 , 629 , 306 Transfers to Board of County Commissioners (579,479) - (579, 479 ) Total other financing sources (uses) 2 049 827 - 2, 0491827 Net change in fund balances - 126,219 126 ,219 Fund balances at beginning of year - 719 , 921 719, 921 Fund balances at end of year $ - $ 8469140 $ 846 , 140 The accompanying notes are an integral part of the financial statements . 258 Indian River County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures , and Changes in Fund Balances - Budget and Actual ' General Fund For the Year Ended September 30, 2002 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ 250 , 000 $ 250, 000 $ 222 , 384 $ (27 ,616) Charges for services 1 , 724 , 300 137489622 292319382 4829760 Interest 1459700 1459700 519584 (94 , 116) Total revenues 2 , 1205000 2 , 1445322 25505 ,350 3615028 EXPENDITURES General government 198205551 159243773 158219464 1035309 Court related 2 , 9289755 2 , 8485855 217335713 1159142 Total expenditures 49749 , 306 49773 , 628 4, 5559177 2189451 Excess of revenues over ' (under) expenditures (29629 , 306) (29629 , 306) (290499827) 579 ,479 OTHER FINANCING SOURCES (USES) Transfers from Board _ of County Commissioners 29629 , 306 29629 , 306 216299306 Transfers to Board of County Commissioners - - ( 5799479) (5799479) Total other financing sources (uses) 296299306 29629 , 306 290499827 ( 5799479) Net change in fund balances 1 Fund balances at beginning of year _ Fund balances at end of year $ _ i The accompanying notes are an integral part of the financial statements . ' 259 Indian River County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Assets Agency Fund September 30, 2002 ASSETS Cash and cash equivalents $ 2 ,2199426 Accounts receivable - net 13 ,384 Total assets $ 2 ,232 , 810 LIABILITIES Due to other governments $ 19119 , 817 Escrow deposits 151129993 Total liabilities $ 2 ,232 , 810 The accompanying notes are an integral part of the financial statements . 260 ' Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Clerk of the Circuit Court is a County agency and a local governmental entity pursuant to Article 8 , Section 1 (d), of the Constitution of the State of Florida. For financial statement and reporting purposes , the Clerk of the Circuit Court does not meet the definition of a legally separate organization and is not considered to be a component unit. The Clerk of the Circuit Court 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 Clerk of the Circuit Court only. Since the County has implemented GASB Statement No 34 "Basic Financial Statements-and Management's Discussion and Analysis- for State and Local Governments " , the format of the Clerk of the Circuit Court '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 Funds General Fund - The General Fund, which is a governmental fund, is used to account for all revenues and expenditures applicable to the general operations of the Clerk of the Circuit Court which are not accounted for ' in another fund . All general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund. The governmental fund measurement focus is upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income determination. Public Records Modernization Fund - The Public Records Modernization Fund accounts for the proceeds from recording fees to be used for modernizing the Clerk ofthe Circuit Court's public records systems . Fiduciary Fund Agency Fund — The Agency Fund is used to account for assets held by the Clerk of the Circuit Court in a trustee capacity or as an agent . 1 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 and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures they are not considered earned and are reflected as liabilities . The fiduciary fund is accounted for on the accrual basis . 1 261 Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements z State statutes require the Clerk to prepare his budget in two parts , the budget relating to the state court system , including recording; and the budget relating to the requirements ofthe Clerk as clerk to the Board of County Commis- sioners, County auditor, and custodian of all County funds and other County-related duties . The budget relating to the state court system , including recording, is prepared and adopted by the Clerk prior to September 1 . 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 by the Board, modified as required by the Board, and approved by the Board. 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. Clerk approval is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing 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 . Capital Assets Tangible personal property used by the Clerk of the Circuit Court in operations is reported in the financial statements of the County. F. Compensated Absences The Clerk of the Circuit Court accrues a liability for employees ' rights to receive compensation for future absences when certain conditions are met . The Clerk of the Circuit Court 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 governmental funds . G. Transfer Out In accordance with Florida Statutes , all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners . These "excess fees" are reported as a transfer out and were $579,479 at year-end. 262 Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30 , 2002 ' NOTE 2 - CASH AND INVESTMENTS A. Deposits At September 30 , 2002 , the carrying amount of the Clerk 's deposits was $2 , 305 , 512 , and the bank balance was ' $2,540,905 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial ' institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. ' B . Investments Florida Statutes authorize investments in certificates of deposit, savings accounts , the Local Government Surplus Funds Trust Fund administered by the Florida State Board ofAdministration, 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. The Clerk had $ 1 ,457, 888 in investments with the Local Government Surplus Funds Trust Fund as of September 30 P , 2002 . These investments are not categorized for custodial credit risk since they are not evidenced by securities that exist in physical or book entry form . Please read the County-wide note for additional information concerning the Local Government Surplus Funds Trust Fund. NOTE 3 - DEFINED BENEFIT 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 Administration. The FRS is noncontributory for all members ; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service . Normal retirement benefits are available to employees who retire at or after age 62 ' with six or more years of service . Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years-of-service credit where average compensation is computed as the average of an individual 's five highest years of earnings . For further information concerning the Florida Retirement System and contribution rates , please read the County-wide note on the Florida Retirement System , 1 Contributions to the FRS for the fiscal year ended September 30, 2002, were equal to 7 . 45 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30, 2000 , 2001 and 2002 were $242 , 964 , $234 , 385 , and $209 , 871 respectively, which is equal to 100% of the required contribution for each year. 263 Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30, 2002 NOTE 4 - 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 ofthe Circuit Court participated in the County's self-insurance program during fiscal year 2002 at an annual cost of approximately $485 ,352 . NOTE 5 - LONG-TERM LIABILITIES Changes in Long-Term Liabilities The following is a schedule of changes in long-term liabilities as of September 30, 2002 : Beginning Ending Balance Balance 10/01 /01 Additions Deletions 9/30/02 Accrued Compensated Absences $ 144 , 074 $ 241 , 646 $ 224, 744 $ 1603976 Of the $ 160,976 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 Clerk since they are not payable from available spendable resources. They are reported in the financial statements of the County. 264 r Harris , Cotherman & Associates Certified Public Accountants - Chartered ' 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772- 234-8484 Fax 772. 234.8488 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 ' The Honorable Jeffery K. Barton Clerk of the Circuit Court Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Clerk of the Circuit Court, as of and for the year ended September 30 , 2002 , and issued our report thereon dated January 31 , 2003 . 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 . Compliance As part of obtaining reasonable assurance about whether the Clerk of the Circuit Court ' s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, noncompliance with which could have a direct and material effect on the determination of financial ' statement amounts . However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. ' Internal Control Over Financial Reporting In planning and performing our audit, we considered the Clerk of the Circuit Court ' s internal control over financial ' reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control financial reporting and its operation that we consider to be a material weakness . This report is intended for the information of management, the Clerk of the Circuit Court, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. oa Gt, -s t"NQI5 Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies P"a ticP Section Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234.8488 Management Comments The Honorable Jeffrey K. Barton Clerk of the Circuit Court Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Clerk of the Circuit Court, as of and for the year ended September 30, 2002 , and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement. In planning and performing our audit of the fund financial statements of the Indian River County Clerk of the Circuit Court for the year ended September 30, 2002, we considered the Clerk of the Circuit Court ' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure. As a result, no weaknesses in procedures and controls which are required to be reported came to our attention. Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. Disposition of Prior Year Findings and Recommendations : Comments noted in the prior year have been sufficiently implemented or otherwise resolved to our satisfaction . The following comments are required by the Auditor General of the State of Florida: Florida Department of Banking and Finance Financial Report: The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 )(b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section ' Hams, Cotherman & Associates Certified Public Accountants . Chartered The Honorable Jeffrey K. Barton ' Clerk of the Circuit Court Indian River County, Florida Page Two Determination of Financial Emergency - F.S . Section 218.503 ( 1 ) : Nothing came to our attention which - indicates that the Indian River County Clerk of the Circuit Court is or, during the year ended September 30, 2002 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes, ' under the Rules of the Auditor General of the State of Florida. Determination of Public Records Modernization Trust Fund - F. S . Section ' 28 .24 ( 15) (d) : The fund financial statements of the Clerk of the Circuit Court may be found at pages 257 through 260 . Based on the audit procedures performed, nothing come to our attention which indicates that the Indian River County Clerk of the Circuit Court has not complied with Section 28 . 24( 15 ) (d) , Florida Statutes , regarding the collection and use of Public Records ' Modernization Trust Fund monies . ' CURRENT YEAR COMMENTS . ' Information Technolou and Internal Control Based on Statement on Auditing Standards 94( SAS 94) , effective for fiscal year 2002 , we noted ' certain recommendations in regards to information technology and internal control . These recommendations are as follows : ' 1 . ) Access to the server room should be secured and limited to appropriate personnel . 2 . ) Changes made to in-house software should be documented . Harris , Cotherman & Associates Certified Public Accountants - Chartered The Honorable Jeffrey K. Barton Clerk of the Circuit Court Indian River County, Florida Page Three 3 . ) Policy/Procedure/Network manuals and documentation should be developed. 4 . ) With the implementation of the Munis financial application, a trained Munis software individual should be on-site to work with all departments to resolve problems timely. 5 . ) With the implementation of the Munis software, a security policy should be developed so that network personnel and financial application personnel have segregation of duties . This report is intended for the information - of management, the Clerk of the Circuit Court, and the Auditor General of the State of Florida. However, this report is a matter of public record, and its distribution is not limited . �� , C v►.�.,.,, eu � O S , CC'S — CLL" 1 Vero Beach, Florida January 31 , 2003 ' 1VER JEFFREY K . BARTON Clerk of Circuit Court P. O . Box 1028 ' Vero Beach , Florida 32961 - 1028 F�ORI�� Telephone: ( 772 ) 770-5185 March 5 , 2003 Harris , Cotherman & Associates 3150 Cardinal Drive Vero Beach, FL 32963 Gentlemen : The following is my response to the management comments for the 2001 -2002 fiscal year . ' Information Technology and Internal Control : We have recognized for some time that access to the server room should be restricted . However, the present facility does not provide us with the ability to restrict access to the server room . Until the Board of County Commissioners is able to provide different facilities for the server room , we will not be able to institute any changes to the current environment. We are in the process of developing policies and procedures to document changes in ' software and the responsibilities of information technology personnel . As the County moves forward with the implementation of the new financial software , we ' will rely upon in-house expertise to provide support for each module . I would like to thank your audit staff for their professional assistance and comments . Sincerely , Jeffrey K . Barton Clerk of the Circuit Court � e. 1 1 1 1 1 1 1 1 ' PROPERTY APPRAISER ' 271 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772- 234-8488 Report on Special Purpose Financial Statements Prepared in Compliance With a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity With Generally Accepted Accounting Principles The Honorable David C . Nolte Property Appraiser Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County , Florida Property Appraiser as of and for the fiscal year ended September 30 , 2002 , as listed in the table of contents . These financial statements are the responsibility of the Property Appraiser ' s management . Our responsibility is to express an opinion on the financial statements based on our audit . We conducted our audit in accordance with 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 . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement . An audit includes examining, on a test basis , evidence supporting the amounts and disclosures in the fund financial statements . An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion . As described in Note 1 , the accompanying fund financial statements referred to above present fairly only the financial position of the Property Appraiser at September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In our opinion, the fund financial statements referred to above present fairly , in all material respects , the financial position of the Property Appraiser as of September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In accordance with Government Auditing Standards we have also issued a report dated January 31 , 2003 on our consideration of the Property Appraiser ' s internal control over financial reporting and on our tests of compliance with certain provisions of laws , regulations , contracts , and grants . This report is intended solely for the information and use of management, the Property Appraiser, the Auditor General and applicable Federal and State agencies , and is not intended to be and should not be used by anyone other than these specified parties . 4Aaxt, 145 , (- D -4 f wt.m, Gid G . Y�G1�� Vero Beach , Florida January 31 , 2003 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 272 Indian River County, Florida Property Appraiser Balance Sheet General Fund ' September 30 , 2002 ASSETS Cash $ 59 , 970 Accounts receivable 2 , 759 Total assets $ 62 , 729 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 519108 Due to other governments 9882 Deposits I 739 ' Total liabilities 621729 Fund Equity: Fund balance _ Total fund equity _ Total liabilities and fund equity $ 62 , 729 The accompanying notes are an integral part of the financial statements . 273 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, 2002 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 27865 , 522 $ 2 , 908 ,289 $ 2 , 908 , 323 $ 34 Interest - - 1 , 955 1 , 955 Miscellaneous - - 171 171 Total revenues 2 , 8659522 25908 ,289 2 , 910,449 29160 EXPENDITURES General government 2 , 865 , 522 2 , 908 ,289 2 , 900, 567 _ 7, 722 Total expenditures 2 , 8659522 2 , 908 , 289 259009567 7 , 722 Excess ofrevenues over expenditures - - 9, 882 9 , 882 OTHER FINANCING USES Excess fees to Board of County Commissioners - - (9, 107) (9, 107) Excess fees to other governments - - (775) (775) Total other financing uses - - 9, 882 9, 882 Net change in fund balances Fund balance at beginning of year Fund balance at end of year $ - The accompanying notes are an integral part of the financial statements . 274 Indian River County, Florida ' Property Appraiser Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Property Appraiser is a County agency and a local governmental entity pursuant to Article 8 , 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. Since the County has implemented GASB Statement No 34 "Basic Financial Statements-and Management ' s Discussion and Analysis-for State and Local Governments", the format of the Property Appraiser 's statements has been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements . rThe following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements . A. Description of Fund The accounting records are organized for reporting purposes on the basis of a governmental 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 Property Appraiser. All general operating revenues ' which are not restricted or designated as to use by outside sources are recorded in the General Fund . The governmental fund measurement focus is 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 fund are maintained on the modified accrual basis . Under the modified accrual basis , expenditures are recorded at the time liabilities are incurred and revenues are recorded when ' received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures , they 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 . 275 Indian River County, Florida Property Appraiser Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Capital Assets _ Tangible personal property used by the Property Appraiser in operations is reported in the financial statements of the County. 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 in the governmental fund. 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" are reported as transfers out and were $9, 882 at year-end . NOTE 2 - CASH Deposits At September 30, 2002 , the carrying amount of the Property Appraiser 's deposits was $ 59 , 970, and the bank balance was $ 139,706 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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. NOTE 3 - DEFINED BENEFIT 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 r of Administration. The FRS is noncontributory for all members ; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service . Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service . Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age . 276 ' Indian River County, Florida Property Appraiser Notes to Financial Statements Year Ended September 30 , 2002 NOTE 3 - DEFINED BENEFIT PLAN - Continued ' Florida Retirement System - Continued Retirement benefits are based on age , average compensation, and years -of- service credit where average ' compensation is computed as the average of an individual 's five highest years of earnings . For further information concerning the Florida Retirement System and contribution rates, please read the County-wide note on the Florida Retirement System. ' Contributions to the FRS for the fiscalq ear ended September 30 , 2002, were equal to 8 . 60% of the annual covered Y p payroll . Contributions to the FRS for the fiscal years ended September 30 , 2000, 2001 , and 2002 were $ 166 ,399 , ' $ 160, 357, and $ 164 ,050 respectively, which is equal to 100% of the required contribution for each year. NOTE 4 - 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 2002 at an annual cost of approximately $209, 655 . NOTE 5 - LONG-TERM LIABILITIES A summary of changes in long-term liabilities is as follows : Beginning Ending Balance Balance 10/01 /01 Additions Deletions 09/30/02 ' Accrued Compensated Absences $ 66 , 795 $ 812211 $ 81 , 727 $ 66 ,279 Of the $ 66 ,279 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 ofthe Property Appraiser since they are not payable from available spendable resources . They are reported in the financial statements of the county. 277 Indian River County, Florida Property Appraiser Notes to Financial Statements Year Ended September 30, 2002 NOTE 6 - COMMITMENTS AND CONTINGENCIES Litigation Various suits and claims are currently pending against the PropertyAppraiser. It is impossible for the PropertyAppraiser 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 PropertyAppraiser 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 ofthe Property Appraiser. 278 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N, AIA Suite 250 Vero Beach, FL 32963 ' Phone 772 - 234-8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable David C . Nolte Property Appraiser Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Property Appraiser, as of and for the year ended September 30 , 2002 , and issued our report thereon dated January 31 , 2003 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 . Compliance 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 and contracts . noncompliance with which could have a direct and material effect on the determination of financial statement amounts . However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly , we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards . Internal Control Over Financial Reporting ' In planning and performing our audit, we considered the Property Appraiser ' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material ' weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Property Appraiser, and the Auditor General of the State of Florida . However, this report is a matter of public record and its distribution is not limited. rlw�15 10 CCk�Vkt� aXt44 &ZOaCt2�S cpq ctwt Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" ' Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772 - 234-8484 Fax 772 -234-8488 Management Comments The Honorable David C . Nolte Property Appraiser Indian River County, Florida We have audited the basic financial statements Indian River County, Florida, including the individual fund financial statements of the Property Appraiser, as of and for the year ended September 30 , 20021 and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Property Appraiser for the year ended September 30 , 2002 , we considered the Property Appraiser ' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention. Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. No comments were made in the prior year. The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report : The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 ) (b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 280 ' Harris, Cotherman & Associates Certified Public Accountants - Chartered The Honorable David C . Nolte Property Appraiser Indian River County , Florida Page Two Determination of Financial Emergency - F . S . Section 218 . 503 ( 1 ) : Nothing came to our attention which indicates that the Indian River County Property Appraiser is or, during the year ended September 30 , 2001 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes , under the Rules of the Auditor General of the State of Florida. This report is intended for the information of management, the Property Appraiser, and the Auditor General of the State of Florida. However, this report is a matter of public record , and its distribution is not limited . 4" , C4. pal - Vero Beach, Florida January 31 , 2003 281 a 1 1 1 1 1 1 1 1 SHERIFF ' 283 Harris, Cotherman & Associates Certified Public Accountants - Chartered Report on Special Purpose Financial Statements Prepared in Compliance With a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity With Generally Accepted Accounting Principles The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County . Florida . Sheriff as of and for the fiscal year ended September 30 , 2002, as listed in the table of contents . These I 'mancial statements are the responsibility of the Sheriff' s management . Our responsibility is to express an opinion on the financial statements based on our audit . We conducted our audit in accordance with 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 . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement . An audit includes examining, on a test basis , evidence supporting the amounts and disclosures in the fund financial statements . An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion . As described in Note 1 , the accompanying fund financial statements referred to above present fairly only the financial position of the Sheriff at September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In our opinion , the fund financial statements referred to above present fairly, in all material respects , the financial position of the Sheriff as of September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In accordance with Government Auditing Standards we have also issued a report dated January 31 , 2003 on our consideration of the Sheriff' s internal control over financial reporting and on our tests of compliance with certain provisions of laws , regulations , contracts , and grants . This report is intended solely for the information and use of management, the Sheriff, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . �d Vero Beach, Florida January 31 , 2003 284 Indian River County, Florida Sheriff Balance Sheet Governmental Funds September 30 , 2002 Total Special Governmental General Revenue Funds ASSETS Cash $ 1 , 3295925 $ 19094 , 976 $ 254245901 Accounts receivable - net 2849354 105245 2943599 Deposits 1195340 - 119 , 340 Total assets $ 197335619 $ 19105 , 221 $ 298389840 1 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 9749997 $ 9 , 598 $ 984 , 595 Due to other governments 7589622 - 7583622 Total liabilities 12733 , 619 91598 1 , 743 217 1 Fund Equity: Fund balance - 1 , 095 , 623 _ 1 , 095 , 623 Total fund equity - 1 . 095 , 623 1 . 095 623 1 Total liabilities and fund equity 197339619, 619 $ 191055221 $ 298389840 1 i 1 The accompanying notes are an integral art of the financial g P statements . 285 Indian River County, Florida Sheriff Statement of Revenues , Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2002 Total Special Governmental General Revenue Funds REVENUES Intergovernmental $ - $ 141 , 081 $ 141 , 081 Charges for services - 278 , 195 278 , 195 Fines and forfeitures - 287 , 060 2877060 Miscellaneous - 195200 19 ,200 Total revenues - 725 , 536 725 , 536 EXPENDITURES Public safety 24, 9343742 5235050 253457 , 792 Court related 1 , 705 , 319 1 , 7055319 Debt service : Principal 160 765 - 1609765 Interest 3 , 046 - 39046 Total expenditures 26 , 8039872 5239050 27 , 3269922 Excess of Revenues Over (Under) Expenditures (26, 803 , 872) 202 ,486 (269601 , 386) OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 2793503082 29 , 551 271379 , 633 Transfers to Board of County Commissioners (5469210) - (5469210) Total other financing sources 262803 , 872 29 , 551 26 , 833 ,423 Net change in fund balances - 232 , 037 232 , 037 Fund balances at beginning ofyear - 863 , 586 863 , 586 Fund balances at end of year $ - $ 1 , 095 , 623 $ 13095 ,623 The accompanying notes are an integral part of the financial statements . 286 Indian River County, Florida Sheriff Budgetary Comparison Statement General Fund For the Year Ended September 30 , 2002 Variance with - Budgeted Amounts Final BudgetPositive Original Final Actual (Negative) REVENUES $ _ $ _ $ _ $ _ Total revenues EXPENDITURES Public safety 2590629471 25 ,4719405 2499349742 5369663 Court related 136415153 1 , 714 , 866 19705 , 319 95547 Debt service : Principal 160 , 765 1609765 160 , 765 - Interest 3 , 046 39046 3 ,046 - Total expenditures 2658679435 273350 , 082 26 , 8039872 5469210 Excess of revenues over (under) expenditures (26 , 867 ,435 ) (27 , 350 , 082) (26, 803 , 872) 5469210 OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 2698679435 27 , 350, 082 273350 , 082 Transfers to Board of County Commissioners - - ( 5465210) ( 546 ,210) Total other financing sources 26 , 867 ,435 2793505082 2698039872 (546, 210) 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. 287 Indian River County, Florida Sheriff Statement of Fiduciary Net Assets Agency Fund September 30, 2002 ASSETS Cash and cash equivalents $ 879861 Total assets $ 8701 LIABILITIES Due to other governments $ 3 , 178 Escrow deposits 84 , 683 Total liabilities $ 8701 The accompanying notes are an integral part of the financial statements . 288 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Sheriff is a County agency and a local governmental entity pursuant to Article 8 , 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 Sherif only. Since the County has implemented GASB Statement No 34 "Basic Financial Statements-and Management 's Discussion and Analysis-for State and Local Governments", the format of the Sheriff's statements have been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements. rThe following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements . A. Description of Funds and Account Groups The accounting records are organized for reporting purposes on the basis of 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 general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund . The governmental fund measurement focus is upon determination of financial position and changes in financial position (sources, uses and balances of financial resources), rather than upon net income determination. Special Revenue Fund - The Special Revenue Fund accounts for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes . This fund accounts for expenditures for police education and law enforcement equipment. Fiduciga Fund Agency Fund - The Agency Fund is used to account for assets held by the Sheriff as an agent . The Agency fund is custodial in nature and does not involve measurement of results of operations . B . Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental funds and the fiduciary fund are maintained on the modified accrual basis . Under the modified accrual basis , expenditures are recorded at the time liabilities are incurred, and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they are not considered earned and are reflected as liabilities . 289 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30 , 2002 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, which shall show the estimated amounts of all proposed expenditures for operating and equipping the Sheriff's office and jail other than capital improvements of County buildings. 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 in the governmental funds . E. Transfer Out In accordance with Florida Statutes all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners . These "excess fees" are reported as a transfer out and were $ 546 ,210 at year-end. NOTE 2 - CASH Deposits At September 30 , 2002 , the carrying amount of the Sheriff's deposits was $2 , 512 , 762 , and the bank balance was $3 , 139,076. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository SecurityAct of the State of Florida. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial I nstitution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. 290 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30 , 2002 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 Sheriffto 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 /01 Additions Deletions 09/30/02 Tangible Personal Property $ 8 , 776 , 762 $ 1678 ,427 $ 1 , 0% 839 $ 9, 386 , 350 NOTE 4 - DEFINED BENEFIT PLAN Florida Retirement System Plan Description : The Sheriff' s employees participate in the Florida Retirement System FRS a cost-shari multiple-employer public employee retirement system , administered by the Florida Department of Administrating The FRS is noncontributory for all members ; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service . Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service . Early retirement is available after six years of service with a jfive percent reduction in benefits for each year prior to the normal retirement age . Retirement benefits are based on age, average compensation, and years-of-service credit where average compensation is computed as the average of an individual 's five highest years of earnings . For further information concerning the Florida Retirement System and contribution rates, please read the County-wide note on the Florida Retirement System . Contributions to the FRS for the fiscal year ended September 30, 2002 , were equal to 15 . 15 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30, 2000, 2001 , and 2002 were $2 , 517, 693 , $2 ,441 , 515 , and $2 , 332 ,434 respectively, which is equal to 100% of the required contribution for each year. 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 1 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 2002 at an annual cost of approximately $ 19948 ,475 . ' 291 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30 , 2002 NOTE 6 - LONG-TERM LIABILITIES A summary ofchanges in Long-Term Liabilities is as follows : Begg Egg Balance Balance 10/01 /01 Additions Deletions 09/30/02 Accrued Compensated Absences $ 1 , 0359301 $ 19945 , 389 $ 2 , 0149328 $ 966 , 362 Capital Leases 160, 765 - 160, 765 Total long-term liabilities $ 12196 , 066 $ 199454389 $ 2175 , 093 $ 966 , 362 Of the $966,362 liability for accrued compensated absences, management estimates that $ 100,000 will be due and payable within one year. The long term liabilities are not reported in the financial statements ofthe Sheriff since they are not payable from available spendable resources . They are reported in the financial statements of the County. NOTE 7 — OPERATING LEASES The Sheriffhas entered into noncancelable operating leases as lessee. Lease expenditures totaled $95, 147 for the year ended September 30, 2002 . 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 2003 $ 89, 934 2004 179076 2005 13 , 914 2006 125860 2007 6 ,430 Total Future Minimum Lease Payments $ 140,214 NOTE 8 - COMMITMENTS AND CONTINGENCIES Litigation Various suits and claims are currently pending against the Sheriff. It is impossible for the Sheriffto 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 . 292 Harris , Cotherman He is Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772 - 234-8484 Fax 772- 234-8488 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Sheriff, as of and for the year ended September 30 , 2002 , and issued our report thereon dated January 31 , 2003 . 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 . Compliance 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 and contracts , 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 1 and, accordingly, we do not express such an opinion . The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards . Internal Control Over Financial Reporting In planning and performing our audit, we considered the Sheriff' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduced to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees In the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weakness . This report is intended for the information of management , the Sheriff, and the Auditor General of the State of' Florida . However, this report is a matter of public record and its distribution is not limited . Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" 1 Member AICPA Member AICPA Division For CPA Firms Member F1CPA Private Companies Practice Section 293 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772 .234-8484 Fax 772.234-8488 Management Comments The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Sheriff, as of and for the year ended September 30 , 2002 , and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Sheriff for the year ended September 30 , 2002 , we considered the Sheriff' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention . Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida . Status of Prior Year Comments : No comments were made in the prior year. The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report , The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 )(b ) of the Florida Statues has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 294 1 Harris , Cotherman & Associates Certified Public Accountants - Chattered The Honorable Roy Raymond Sheriff Indian River County, Florida Page Two Determination of Financial Emergency - F. S . Section 218 . 503 ( 1 ) : Nothing came to our attention which indicates that the Indian River County Sheriff is or, during the year ended September 30 , 2002 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes , under the Rules of the Auditor General of the State of Florida . This report is intended for the information of management, the Sheriff, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited . 4karl'�15j CCVk4�� aU�Ck 0��CZ406" UA�)CL5 1 Vero Beach, Florida January 31 , 2003 t i 295 � � Q ' . .u� �QAli '�' 1 �( 1 j i r i A 1 ' SUPERVISOR OF ELECTIONS 1 1 1 1 ' 297 Harris, Cotherman & Associates Certified Public Accountants - Chartered Report on Special Purpose Financial Statements Prepared in Compliance With a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity With Generally Accepted Accounting Principles The Honorable Kay Clem Supervisor of Elections Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County , Florida , Supervisor of Elections as of and for the fiscal year ended September 30 , 2002 , as listed in the table of contents . These financial statements are the responsibility of the Supervisor of Elections ' management . Our responsibility is to express an opinion on the financial statements based on our audit . We conducted our audit in accordance with 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 . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement . An audit includes examining, on a test basis , evidence supporting the amounts and disclosures in the fund financial statements . An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion . As described in Note 1 , the accompanying fund financial statements referred to above present fairly only the financial position of the Supervisor of Elections at September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In our opinion , the fund financial statements referred to above present fairly , in all material respects , the financial position of the Supervisor of Elections as of September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In accordance with Government Auditing Standards we have also issued a report dated January 3 1 , 2003 on our consideration of the Supervisor of Elections ' internal control over financial reporting and on our tests of compliance with certain provisions of laws , regulations , contracts , and grants . This report is intended solely for the information and use of management, the Supervisor of Elections , the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . �aGrtqtb , CQ,� osl - S , 5 — Vero Beach, Florida January 31 , 2003 298 Indian River County, Florida Supervisor of Elections Balance Sheet General Fund 1 September 30, 2002 ASSETS Cash $ 9 , 863 Accounts receivable 15 , 640 Deposits 17, 011 Total assets $ 429514 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 289159 Due to other governments 149355 Total liabilities 42 , 514 Fund Equity : Fund balance Total fund equity Total liabilities and fund equity $ 429514 1 1 1 The accompanying notes are an integral part of the financial statements . 299 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, 2002 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ - $ 349804 $ 36 ,466 $ 15662 Interest - 5 ,217 Total revenues 5 , 382 165 403021 41 , 84811827 EXPENDITURES General government 9129409 9629430 9_49 , 9p2 12 , 528 Total expenditures 912 ,409 962 ,430 949, 902 12 , 528 Excess ofrevenues over (under) expenditures (9125409) (9225409) (908 054 14 , 355 OTHER"FINANCING SOURCES (USES) Transfer from Board of County Commissioners 9129409 922 ,409 9229409 Transfer to Board of County}' oners ( 14, 355 ) ( 14 ,355) Total other financing sources (uses) 9127409 9225409 908 , 054 14 ,355 Net change in fund balances Fund balance at beginning of year Fund balance at end of year $ - The accompanying notes are an integral part of the financial statements . 300 Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30, 2002 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Supervisor of Elections is a County agency and a local governmental entity pursuant to Article 8 , 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 part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Supervisor of Elections only. Since the County has implemented GASB Statement No 34 "Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments", the format of the Supervisor of Elections ' statements have 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 Fund The accounting records are organized for reporting purposes on the basis of a governmental 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 Supervisor of Elections . All general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund . The governmental fund measurement focus is 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 asurement Focus and Presentation The accounts of the Governmental Fund are maintained on the modified accrual basis . Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they 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 of Elections is authorized to transfer budgeted amounts between objects 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 ofthe 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 . 301 Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued D. Capital Assets Tangible personal property used by the Supervisor of Elections in operations is reported in the financial statements of the County . E . 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 in the governmental fund. R Transfer Out In accordance with Florida Statutes all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners . These "excess fees" are reported as transfers out and were $ 12 , 528 at year-end . NOTE 2 - CASH Deposits At September 30, 2002, the carrying amount of the Supervisor of Elections ' deposits was $ 9, 863 , and the bank balance was $59,779. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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. NOTE 3 - DEFINED BENEFIT 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 Administration. The FRS is noncontributory for all members ; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service . Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service . Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years-of-service credit where average compensation is computed as the average of an individual 's five highest years of earnings . For further information concerning the Florida Retirement System and contribution rates , please read the County-wide note on the Florida Retirement System . 302 Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30 , 2002 rNOTE 3 - DEFINED BENEFIT PLAN - Continued 1 Florida Retirement System - Continued Contributions to the FRS for the fiscal year ended September 30 , 2002, were equal to 8 . 58 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30 , 2000 , 2001 and 2002 were $ 37 , 038 , $ 34, 532 , and 31 ,218 respectively, which is equal to 100% of the required contribution for each year. NOTE 4 - 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 2002 at an annual cost of approximately $39, 981 . NOTE 5 - CHANGES IN LONG-TERM LIABILITIES ' A summary ofchanges in long-term liabilities is as follows : Beginning Ending Balance Balance 10/01 /01 Additions Deletions 09/30/02 Accrued Compensated Absences $ 8 , 145 $ 18 , 672 $ 15 , 112 $ 11 , 705 Of the $ 11 , 705 liability for accrued compensated absences, management estimates that $5 , 000 will be due and payable within one year. The liability for accrued compensated absences is not reported in the financial statements of the Supervisor of Elections since it is not payable from available spendable resources . The liability is reported in the financial statements ofthe County. NOTE 6 - OPERATING LEASES The Supervisor of Elections has entered into a noncancelable operating lease as lessee for a mail machine . Lease expenditures totaled $6,207 for the year ended September 30,2002 , i i 303 Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30 , 2002 NOTE 6 - OPERATING LEASES - Continued The following is a schedule by years of minimum future rentals to be paid by the Supervisor of Elections for the noncancelable operating lease as of September 30 : Year Amount 2003 $ 5 , 900 2004 5 , 900 2005 5 , 900 2006 983 Total Future Minimum Lease Payments $ 18 , 683 304 Harris , Cotherman & Associates Certit-ed Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772 -234.8484 Fax 772 -234.8488 1 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ' The Honorable Kay Clem Supervisor of Elections Indian River County , Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Supervisor of Elections , as of and for the year ended September 30 , 2002 , and issued our report thereon dated January 31 , 2003 . 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 . Compliance 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 and contracts , noncompliance j with which could have a direct and material effect on the determination of financial statement amounts . However , providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly , we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards . Internal Control Over Financial Reporting In planning and performing our audit, we considered the Supervisor of Elections ' internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees to the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Supervisor of Elections , and the Auditor General of the State of Florida . However, this report is a matter of public record and its distribution is not limited . 4-karvhoo`� I C IX�SpCia , ' Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Compan30 5 Practice Section Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone772-234-8484 Fax 772-234-8488 Management Comments The Honorable Kay Clem Supervisor of Elections Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Supervisor of Elections , as of and for the year ended September 30 , 2002 , and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of-material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Supervisor of Elections for the year ended September 30 , 2002 , we considered the Supervisor of Elections ' internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention . Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida . No comments were made in the prior year. The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report . The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 ) (b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 306 Harris, Cotherman & Associates Certified Public Accountants - Chartered The Honorable Kay Clem Supervisor of Elections Indian River County, Florida ' Page Two Determination of Financial Emergency - F. S . Section 218 . 503 ( 1 ) : Ng othin came to our attention which indicates that the Indian River County Supervisor of Elections is or, during the year ended September 30 , 2002 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( l ) , Florida Statutes , under the Rules of the Auditor General of the State of Florida. Payroll . During the current year we noted the executive payroll was overstated by $ 2 , 000 due to a miscommunication between the accounting department and the payroll service processing company . We recommend the Supervisor of Elections Office be reimbursed for the difference and a review ' procedure be established to verify payroll accuracy before processing . ' Travel Reimbursement : During travel testing we noted an overpayment for a travel reimbursement request . We recommend travel reimbursements be recalculated and reviewed for accuracy before they are processed . We also recommend the Supervisor of Elections Office be reimbursed for the difference . This report is intended for the information of management , the Supervisor of Elections , and the Auditor General of the State of Florida . However, this report is a matter of public record and its distribution is not limited . 4kaw;" s , CL . az-� , CA Vero Beach, Florida January 31 , 2003 1 307 Yw ti Kay Clem Supervisor of Elections Indian River County, Florida February 25 , 2003 Harris , Cotherman & Associates 5070 North AIA, Suite 250 Vero Beach, FL 32963 Gentlemen : In response to the management comments included in your audited basic financial statements of the Supervisor of Elections for the year ended September 30 , 2002 , please be advised of the following : Pavro!!: The Supervisor of Elections office has been reimbursed for the $ 2 , 000 and the funds were deposited directly into the checking account. We have established quarterly reviews to eliminate this error from happening in the future . Travel Reimbursement: The Supervisor of Elections office has been reimbursed for the $ 120 . 00 travel overpayment . As recommended in your management comments , we now recalculate all travel expenses and attach a copy of that recalculation to the travel expense request before reimbursing. We appreciate the professionalism of your staff and would like to thank them for their courtesy and assistance . Sincerely, Ch/UV Kay Clem Supervisor of Elections 1840 25th Street , suite N- 109 Vero Beach , FL 32960-3396 ( 561 ) 567-8187 FAX (561 ) 770- 5367 308 1 1 1 1 i 1 1 ' TAX COLLECTOR ' 309 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772o234&8484 Fax 772 -234-8488 Report on Special Purpose Financial Statements Prepared in Compliance With a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity With Generally Accepted Accounting Principles The Honorable Charles W. Sembler Tax Collector Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida, Tax Collector as of and for the fiscal year ended September 30 , 2002, as listed in the table of contents . These financial statements are the responsibility of the Tax Collector' s management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with 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 . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement . An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund financial statements . An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1 , the accompanying fund financial statements referred to above present fairly only the financial position of the Tax Collector at September 30 , 2002 , and the results of operations for the year then ended in conformity with generally accepted accounting principles . In our opinion, the fund financial statements referred to above present fairly, in all material respects , the financial position of the Tax Collector as of September 30 , 2002, and the results of operations for the year then ended in conformity with generally accepted accounting principles . In accordance with Government Auditing Standards we have also issued a report dated January 31 , 2003 on our consideration of the Tax Collector ' s internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations , contracts, and grants . This report is intended solely for the information and use of management, the Tax Collector, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private C 3 oan ies Practice Section Indian River County, Florida Tax Collector Balance Sheet General Fund September 30, 2002 ASSETS Cash and cash equivalents $ 2 , 114 ,406 Accounts receivable 36 , 046 Inventories 716 Total assets $ 251515168 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 475 , 510 Due to other governments 156759658 Total liabilities 2 , 151 , 168 ' Fund Equity : Fund balance Total liabilities and fund equity $ 251519168 The accompanying notes are an integral of the financial�' part ial statements . 311 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 , 2002 Variance with Final budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 3 ,488 ,292 $ 3 , 632 , 942 $ 3 , 9389363 $ 3059421 Interest 145 , 000 1459000 589894 (86 , 106) Total revenues 3 ,633 ,292 35777, 942 39997 ,257 2199315 EXPENDITURES General government 2 , 193 ,482 2 , 5613672 2 , 5525687 8 , 985 Debt service : Principal 39,264 39 , 264 399217 47 Interest 4 , 695 4 , 695 4 , 695 - Total expenditures 29237,441 296059631 295963599 91032 Excess of revenues over expenditures 1 , 3955851 1 , 1729311 194009658 228 , 347 OTHER FINANCING SOURCES (USES) Excess fees to Board of County Commissioners ( 1 ,221 , 370) ( 1 ,266 ,406) ( 11466 , 945 ) (200, 539) Excess fees to Other Governments ( 1749481 ) ( 180 , 905 ) (208 , 713 ) (27 ,808 ) Lease purchase proceeds - 275 , 000 275 , 000 - Totalotherfinancingsources (uses) ( 15395 , 851 ) ( 1 , 172, 311 ) ( 19400, 658 ) (2283347) 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. 312 Indian River County, Florida Tax Collector Statement of Fiduciary Net Assets Agency Fund September 30, 2002 ' ASSETS Cash and cash equivalents $ 193849647 Accounts receivable 13 , 319 Total assets $ 193979966 LIABILITIES Due to other governments $ 193979966 Total liabilities $ 1 , 3979966 The accompanying notes are an integral art of the g p financial statements . 313 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Tax Collector is a County agency and a local governmental entity pursuant to Article 8 , 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. Since the County has implemented GASB Statement No 34 "Basic Financial Statements-and Management 's Discussion and Analysis-for State and Local Governments", the format of the Tax Collector 's statements have 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 a governmental fund 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 general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund . The governmental fund measurement focus is 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 . B . Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental fund and fiduciary fund are maintained on the modified accrual basis . Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they are not considered earned and are reflected as liabilities . 314 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ' C. Budgetary Requirements State statutes require the Tax Collector 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 . 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 . Capital Assets 1 Tangible personal property used by the Tax Collector in operations is reported in the financial statements of the County . F. 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 he legally required to , accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported in the governmental fund . G Transfer Out In accordance with Florida Statutes all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners and other governments . These "excess fees" are reported as transfers out and were ' $ 1 , 675 , 658 at year-end . NOTE 2 - CASH AND INVESTMENTS A. Deposits ' At September 30, 2002 , the carrying amount of the Tax Collector 's deposits was $ 1 ,233 , 564 , and the bank balance was $ 1 , 160,907 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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 Us. 315 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2002 NOTE 2 - CASH AND INVESTMENTS - Continued B . Investments Florida Statutes authorize investments in certificates of deposit, savings accounts , the Local Government Surplus Funds Trust Fund administered by the Florida State Board ofAdmmistration, 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, The Tax Collector had $2 ,265 ,489 with the Local Government Surplus Funds Trust Fund as of September 30, 2002 . This investment is not categorized for custodial risk since it is not evidenced by securities that exist in physical or book entry form . Please read the County-wide note for additional information concerning the Local Government Surplus Funds Trust Fund, 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 - DEFINED BENEFIT 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 Administration . The FRS is noncontributory for all members ; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service . Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service . Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age . Retirement benefits are based on age , average compensation, and years-of- service credit where average compensation is computed as the average of an individual ' s five highest years of earnings . For further information concerning the Florida Retirement System and contribution rates , please read the County-wide note on the Florida retirement System. Contributions to the FRS for the fiscal year ended September 30, 2002 , were equal to 8 . 39% of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30 , 2000 , 2001 , and 2002 were $91 ,482 , $ 95 , 846, and $94 ,786 respectively, which is equal to 100% of the required contribution for each year. 316 ' Indian River County, Florida ' Tax Collector Notes to Financial Statements Year Ended September 30, 2002 ' 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 Tax Collector participated in the County 's self-insurance program during fiscal year 2002 at an annual cost of approximately $ 174, 837 . ' NOTE 6 - LONG-TERM LIABILITIES A. Capital Leases ' The following is a schedule of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments , as of September 30, 2002 : ' Fiscal year ending Amount 2003 $ 703586 2004 525244 ' 2005 529244 2006 525244 2007 525245 ' Thereafter 39 , 183 Total minimum lease payments 3189746 Less : Amount representing interest 35 , 925 ' Present value of net minimum lease payments $ 282 , 821 The following is an analysis of the leased property under capital leases : Type of Property Capitalized Cost Computer equipment $ 5139961 ' The equipment listed above is reported in the financial statements of the County. Monthly payments for the computer equipment leases are made by the General Fund. ' B . Changes in Long-Term Liabilities Beginning Ending Balance Balance ' 10/01 /01 Additions Deletions 09/30/02 Accrued Compensated Absences $ 139240 $ 483853 $ 85240 $ 539853 Capital Leases 474037 275 , 000 39 ,216 2824821 ' $ 609277 $ 3235853 $ 479456 $ 3365674 317 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2002 NOTE 6 - LONG-TERM LIABILITIES - Continued B. Changes in Long-Term Liabilities - Continued Of the $ 53 , 853 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 Tax Collector since they are not payable from available spendable resources . They are reported in the financial statements of the County. NOTE 7 - OPERATING LEASES The Tax Collector has entered into noncancelable operating leases as lessee for office space and office equipment. Lease expenditures totaled $ 192 ,296 for the year ended September 30, 2002 . 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 : Year Amount 2003 $ 153 , 055 2004 130 , 560 2005 131 ,936 2006 133 , 313 2007 111 ,500 Thereafter 538 , 500 Total Future Minimum Lease Payments $ 1 , 198 , 864 318 Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AlA Suite 250 Vero Beach, FL 32963 Phone 772 -234-8484 Fax 772- 234-8488 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Charles W. Sembler ' Tax Collector Indian River County, Florida We have audited the basic financial statements of Indian River Count Florida ing the fund financial statements of the Tax Collector, as of and for the year ended September 3� 0 , 2002 , � and issued ed our report thereon ' dated January 31 , 2003 . 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 . ' Compliance 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 and contracts , noncompliance with which could have a direct and material effect on the determination of financial statement amounts . However, providing an opinion on compliance with those provisions was not an objective of ' our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards . Internal Control over Financial Reporting In planning and performing our audit, we considered the Tax Collector ' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial ' statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Tax Collector, and the Auditor General of the State of Florida . However, this report is a matter of public record and its distribution is not limited. Vero Beach, Florida January 31 , 2003 "Providing Vision and Direction to Clients" our " Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companj iP§actice Section Harris , Cotherman & Associates Certified Public Accountants - Chartered 5070 N. AIA Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772 -234-8488 Management Comments The Honorable Charles W. Sembler - Tax Collector Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the fund financial statements of the Tax Collector, as of and for the year ended September 30, 2002 , and have issued our report thereon dated January 31 , 2003 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Tax Collector for the year ended September 30, 2002 , we considered the Tax Collector ' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure. As a result, we have issued a report dated January 31 , 2003 on our consideration of the Tax Collector's internal control structure and its compliance with laws and regulations and have noted reportable conditions in that report. The following comments are required by the Auditor General of the State of Florida: Florida Department of Banking and Finance Financial Report: The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 )(b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . Determination of Financial Emergency - F.S . Section 218 .503 (1 ) : Nothing came to our attention which indicates that the Indian River County Tax Collector is, or during the year ended September 30, 2002 was, in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes , under the Rules of the Auditor General of the State of Florida. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Co3mpa0nies Practice Section Harris , Cotherman & Associates Certified Public Accountants - Chartered The Honorable Charles W. Sembler Tax Collector Indian River County, Florida Page Two STATUS OF PRIOR YEAR COMMENTS : ' Comments noted in the prior year have been sufficiently implemented or otherwise resolved to our satisfaction . CURRENT YEAR COMMENTS : No comments noted. This report is intended for the information of management, the Tax Collector, and the Auditor General ' of the State of Florida. However, this report is a matter of public record and its distribution is not limited . - M15 ) CO _ , � S Vero Beach, Florida January 31 , 2003 ' 321