HENDRY COUNTY, FLORIDA - flauditor.gov rpts/2017 hendry county.pdf · Hendry County, Florida This...

HENDRY COUNTY,FLORIDA

ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED

SEPTEMBER 30, 2017

PREPARED BY:

BARBARA S. BUTLERCLERK OF THE CIRCUIT COURT

STEVE CLARKFINANCE DIRECTOR

Page(s)

REPORT OF INDEPENDENT AUDITOR………………………………………………………… 1-3

MANAGEMENT DISCUSSION AND ANALYSIS………………………………………..……… 4-11

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTSStatement of Net Position………………………………………………...……………...……… 12Statement of Activities………………………..………………………………………………… 13-14

FUND FINANCIAL STATEMENTSBalance Sheet – Governmental Funds……………………...…………………………………… 15-16Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position……………………………………….……………………………… 17Statement of Revenues, Expenditures and Changes in Fund Balance –

Governmental Funds…………………………………………………………………...… 18-19Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balance of Governmental Funds to the Statement of Assets – Governmental Funds………………………………………………………...… 20

Statement of Revenues, Expenses and Changes in Fund BalancesBudget and Actual – General Fund…………………………..…………………………… 21

Statement of Revenues, Expenses and Changes in Fund Balances Budget and Actual – County Transportation Trust Fund…………………………..……… 22

Statement of Revenues, Expenses and Changes in Fund Balances Budget and Actual – Solid Waste Disposal Fund………………………………..………… 23

Statement of Net Position – Proprietary Funds…………………………...…………………… 24-25Statement of Revenues, Expenses and Changes in Fund Net Position –

Proprietary Fund……………………...…………………………………………………… 26Statement of Cash Flows – Proprietary Funds……………………………...…………………… 27-28Statement of Fiduciary Assets and Liabilities – Fiduciary Funds……………………………… 29Notes to Financial Statements………………………..………………………………………… 30-62

REQUIRED SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules

Non-major Governmental FundsCombining Schedule – Balance Sheet – General Fund…………………………...……… 63-64Combining Statement of Revenues, Expenditures and Changes in

Fund Balance – General Fund…………………………………..…………………… 65-66Combining Schedule of Revenues, Expenditures, and Changes in

Fund Balances – Budget and Actual – General Fund………………………………… 67-69

TABLE OF CONTENTS

SECTION I - COMBINED STATEMENTS

Page(s)

REQUIRED SUPPLEMENTARY INFORMATIONCombining and Individual Fund Statements and Schedules

Non-major Governmental FundsCombining Balance Sheet – Non-major Governmental Funds………………...………… 70-75Combining Statement of Revenues, Expenditures and Changes in

Fund Balance – Non-major Governmental Funds…………………………………… 76-81Combining Schedule – Balance Sheet – Fiduciary Funds………………………………… 82Statement of Changes in Assets and Liabilities – Fiduciary Funds……………………… 83-84

FRS Pension Plan & HIS Pension Plan – Supporting Schedules……………………………… 85-86

SUPPLEMENTARY REPORTSReport of Independent Auditor on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……………………..……… 87-88

SINGLE AUDITReport of Independent Auditor on Compliance with Requirements Applicable

to Each Major Federal Awards Program and State Financial Assistance Project and On Internal Control Over Compliance Required by Uniform Guidance and Chapter 10.550, Rules of the Auditor General ……………………………………… 89-90

Schedule of Expenditures of Federal Awards……….………………………………….……… 91

Schedule of State Financial Assistance……………………………………………………………92-93

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance………………………………………………………………………………… 94

Schedule of Findings and Questioned Costs……………………..……………………………… 95-97

Summary Schedule of Prior Audit Findings and Corrective Action Plan 98

Independent Auditor's Management Letter………………………..…………….………………… 99-100

Report of Independent Accountant on Compliance with Local Government InvestmentPolicies and E911 Requirements of Sections 365.172 and 365.173, Florida Statutes………… 101

TABLE OF CONTENTS

SECTION I - COMBINED STATEMENTS (CONTINUED)

Page(s)

REPORT OF INDEPENDENT AUDITOR…………………………………………...……………… 1-3

FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds…………………………..………………………….……… 4Statement of Revenues, Expenditures, and Changes in Fund Balance -

Governmental Funds……………………………..……………………………………………… 5Statement of Fiduciary Assets and Liabilities- Agency Funds……………………………………. 6Notes to Financial Statements……………………….……………………………………………… 7-14

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund……………………………………………...……………… 15

OTHER FINANCIAL INFORMATION

Combining Statement of Fiduciary Assets and Liabilities - All Agency Funds…………………... 16Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency Funds……… 17-19

SUPPLEMENTARY REPORTS

Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..………………….…… 20-21

Independent Auditor's Management Letter 22-23

Report of Independent Accountant on Compliance with Local Government Investment Policies, Article V Requirements, and Florida Statute 61.181 Requirements………………… 24

REPORT OF INDEPENDENT AUDITOR……………………...…………………………………… 1-2

FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds…………………………..………………………….……… 3Statement of Revenues, Expenditures, and Changes in Fund Balance -

Governmental Funds………………………………………………..…………………………… 4Notes to Financial Statements……………………...……………………………………………… 5-13

TABLE OF CONTENTS

SECTION II - CLERK OF THE CIRCUIT COURT

SECTION III - PROPERTY APPRAISER

Page(s)

REQUIRED SUPPLEMENTARY INFORMATIONSchedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual - General Fund…………………………..………………………………… 14


Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..…………………..…… 16-16

Independent Auditor's Management Letter……………………………..…………………………… 17-18

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies…………………………...………………………………………………… 19

REPORT OF INDEPENDENT AUDITOR…………………………….…………………………… 1-3

FUND FINANCIAL STATEMENTSBalance Sheet - Governmental Funds…………………………...………………………….……… 4Statement of Revenues, Expenditures, and Changes in Fund Balance -

Governmental Funds………………………...………………………………………………… 5Statement of Fiduciary Assets and Liabilities- All Agency Funds…………………...…………… 6Notes to Financial Statements…………………………………...………………………………… 7-16


Budget and Actual - General Fund, Non-GAAP Basis………………………………………… 17

OTHER FINANCIAL INFORMATIONCombining Balance Sheet - Non-major Governmental Funds…………………………………..… 18Combining Statement of Revenues, Expenditures and Changes in Fund Balance -

Non-major Governmental Funds……………………………….……………………………… 19Combining Statement of Fiduciary Assets and Liabilities - Agency Funds………………………… 20-21Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds…………… 22-25

TABLE OF CONTENTS

SECTION III - PROPERTY APPRAISER (CONTINUED)

SECTION IV - SHERIFF

Page(s)


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..……………………… 26-27

Independent Auditor's Management Letter…………………………………….…………………… 28-29

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies………………………………..…………………………………………… 30

REPORT OF INDEPENDENT AUDITOR…………………………..……………………………… 1-2

FUND FINANCIAL STATEMENTSBalance Sheet - Governmental Funds……………………...…………………………….………… 3Statement of Revenues, Expenditures, and Changes in Fund Balance -

Governmental Funds……………………….…………………………………………………… 4Notes to Financial Statements………………………..…………………………………………… 5-11


Budget and Actual - General Fund………………..….………………………………………… 12


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards …………………...………… 13-14

Independent Auditor's Management Letter…………………………………..……………………… 15-16

Report of Independent Accountant on Compliance with Local Government Investment Policies………………………..…………………………………………………… 17

TABLE OF CONTENTS

SECTION IV - SHERIFF (CONTINUED)

SECTION V - SUPERVISOR OF ELECTIONS

Page(s)

REPORT OF INDEPENDENT AUDITOR………………………….……………………………… 1-3

FUND FINANCIAL STATEMENTSBalance Sheet - Governmental Funds………………………………….…………………….……… 4Statement of Revenues, Expenditures, and Changes in Fund Balance -

Governmental Funds……………………………………………………………...…………… 5Statement of Fiduciary Assets and Liabilities- Agency Funds…………………………..………… 6Notes to Financial Statements……………………………..……………………………………… 7-14


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund……………………………...……………………………… 15

OTHER FINANCIAL INFORMATIONCombining Statement of Fiduciary Assets and Liabilities - Agency Funds…………………..…… 16-17Combining Statement of Changes in Assets and Liabilities - All Agency Funds………………...… 18-23


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..…………...…………… 24-25

Independent Auditor's Management Letter…………………………………...…………………… 26-27

Report of Independent Accountant on Compliance with Local Government Investment Policies…………………………….……………………………………………… 28

SECTION VI - TAX COLLECTOR

TABLE OF CONTENTS

AND COMPONENT UNIT

COMBINED FINANCIAL STATEMENTS

HENDRY COUNTY, FLORIDA

SEPTEMBER 30, 2017

INCLUDING BOARD OF COUNTY COMMISSIONERS,

CONSTITUTIONAL OFFICERS,

Page(s)

REPORT OF INDEPENDENT AUDITOR……………………………………………………… I-1 - I-3

MANAGEMENT DISCUSSION AND ANALYSIS………………………………………..…… I-4 - I-11

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTSStatement of Net Position………………………………………………...……………...… I-12Statement of Activities………………………..…………………………………………… I-13 - I-14

FUND FINANCIAL STATEMENTSBalance Sheet – Governmental Funds……………………...……………………………… I-15 - I-16Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position……………………………………….…………………………… I-17Statement of Revenues, Expenditures and Changes in Fund Balance –

Governmental Funds………………………………………………………………….. I-18 - I-19Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balance of Governmental Funds to the Statement of Assets – Governmental Funds……………………………………………………… I-20

Statement of Revenues, Expenses and Changes in Fund BalancesBudget and Actual – General Fund…………………………..………………………… I-21

Statement of Revenues, Expenses and Changes in Fund Balances Budget and Actual – County Transportation Trust Fund…………………………..… I-22

Statement of Revenues, Expenses and Changes in Fund Balances Budget and Actual – Solid Waste Disposal Fund………………………………..…… I-23

Statement of Net Position – Proprietary Funds…………………………...………………… I-24 - I-25Statement of Revenues, Expenses and Changes in Fund Net Position –

Proprietary Fund……………………...………………………………………………… I-26Statement of Cash Flows – Proprietary Funds……………………………...……………… I-27 - I-28Statement of Fiduciary Assets and Liabilities – Fiduciary Funds…………………………… I-29Notes to Financial Statements………………………..……………………………………… I-30 - I-62

REQUIRED SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules

Non-major Governmental FundsCombining Schedule – Balance Sheet – General Fund…………………………...…… I-63 - I-64Combining Statement of Revenues, Expenditures and Changes in

Fund Balance – General Fund…………………………………..………………… I-65 - I-66Combining Schedule of Revenues, Expenditures, and Changes in

Fund Balances – Budget and Actual – General Fund…………………………… I-67 - I-69

TABLE OF CONTENTS


Page(s)

REQUIRED SUPPLEMENTARY INFORMATIONCombining and Individual Fund Statements and Schedules

Non-major Governmental FundsCombining Balance Sheet – Non-major Governmental Funds………………...……… I-70 - I-75Combining Statement of Revenues, Expenditures and Changes in

Fund Balance – Non-major Governmental Funds………………………………… I-76 - I-81Combining Schedule – Balance Sheet – Fiduciary Funds……………………………… I-82Statement of Changes in Assets and Liabilities – Fiduciary Funds…………………… I-83 - I-84

FRS Pension Plan & HIS Pension Plan – Supporting Schedules…………………………… I-85 - I-86


Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……………………..…… I-87 - I-88

SINGLE AUDITReport of Independent Auditor on Compliance with Requirements Applicable

to Each Major Federal Awards Program and State Financial Assistance Project and On Internal Control Over Compliance Required by Uniform Guidance and Chapter 10.550, Rules of the Auditor General ………………………… I-89 - I-90

Schedule of Expenditures of Federal Awards……….………………………………….…… I-91

Schedule of State Financial Assistance……………………………………………………… I-92 - I-93

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance……………………………………………………………………………… I-94

Schedule of Findigns and Questioned Costs……………………..………………………… I-95 - I-97

Summary Schedule of Prior Auidt Findings and Corrective Action Plan I-98

Independent Auditor's Management Letter………………………..………...…….…………… I-99 - I-100

Report of Independent Accountant on Compliance with Local Government Investment Policies and E911 Requirements of Sections 365.172 and 365.173, Florida Statutes ……………………………………………………………………………… I-101


TABLE OF CONTENTS - CONTINUED

366 East Olympia AvenuePunta Gorda, Florida 33950

Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Board of County Commissioners of Hendry County, Florida

Report on the Financial Statements

Management's Responsibility for the Financial Statements

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from material misstatement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.

Report of Independent Auditor

We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate discretely presented component unit and remaining fundinformation of Hendry County, Florida (the "County") as of and for the fiscal year ended September 30, 2017,and the related notes to the financial statements, which collectively comprise the County's basic financialstatements as listed in the table of contents.

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error.

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An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, weexpress no such opinion. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of significant accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.

Opinions

Required Supplementary Information

Other Information

Other Matters

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Accounting principles generally accepted in the United States of America require that the management'sdiscussion and analysis and required supplementary information, as provided in the table of contents, bepresented to supplement the basic financial statements. Such information, although not a part of the basicfinancial statements, is required by the Governmental Accounting Standards Board, who considers it to be anessential part of financial reporting for placing the basic financial statements in an appropriate operational,economic, or historical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States of America, whichconsisted of inquiries of management about the methods of preparing the information and comparing theinformation for consistency with management's responses to our inquiries, the basic financial statements, andother knowledge we obtained during our audit of the basic financial statements. We do not express an opinionor provide any assurance on the information because the limited procedures do not provide us with sufficientevidence to express an opinion or provide any assurance.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activities, each major fund, and theaggregate discretely presented component unit and remaining fund information of the County as of September30, 2017, and respective changes in financial position and, where applicable, cash flows thereof and therespective budgetary comparison for the General Fund, County Transportation Trust Fund, and the SolidWaste Disposal Fund for the year then ended in accordance with accounting principles generally accepted inthe United States of America.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the County's basic financial statements. The introductory section, combining statements andschedules and statistical section as provided in the table of contents, are presented for purposes of additionalanalysis and are not a required part of the basic financial statements. The schedule of expenditures of federalawards and state financial assistance is presented for purposes of additional analysis as required by Title 2U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards; U.S. Office of Management and Budget Circular A-133, Auditsof States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the AuditorGeneral, and are also not a required part of the basic financial statements.

The combining statements and schedules and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlyingaccounting and other records used to prepare the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basic financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlying accounting andother records used to prepare the basic financial statements or to the basic financial statements themselves, andother additional procedure in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the combining statements and schedules and the schedules of expenditures of federalawards and state financial assistance are fairly stated, in all material respects, in relation to the basic financialstatements as a whole.

Punta Gorda, FloridaJune 27, 2018

Other Reporting Required by Government Auditing Standards

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In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2018, onour consideration of the County's internal control over financial reporting and on our tests of its compliancewith certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and complianceand the results of that testing, and not to provide an opinion on internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the County's internal control over financial reporting and compliance.

MANAGEMENTDISCUSSION & ANALYSIS

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Hendry County, Florida

Management’s Discussion and Analysis This discussion and analysis of Hendry County’s (the “County”) financial statements is designed to introduce the basic financial statements and provide an analytical overview of the County’s financial activities for the fiscal year ended September 30, 2017. The basic financial statements are comprised of the government-wide financial statements, fund financial statements, and footnotes. We hope this will assist readers in identifying significant financial issues and changes in the County’s financial position. Financial Highlights

• At the close of fiscal year 2017 the County’s total assets and deferred outflows of resources exceeded its total liabilities and deferred inflows of resources, resulting in net assets and deferred outflows of $67,398,085 a decrease of ($3,087,279) over last year or 4 percent. Governmental and business-type assets and deferred outflows of resources exceeded its liabilities and deferred inflows by $51,529,311 and $15,868,774, respectively, which was a decrease of ($2,491,272) for governmental assets and deferred outflows, or 4 percent and a decrease of ($596,007) for business-type assets and deferred outflows or, (3) percent.

• Total revenues for governmental activities were $51,149,828, which was a decrease of ($783,078) over prior year.

• Total expenses for governmental activities increased $3,787,804.

• Noncurrent liabilities are reported at $32,828,138 on September 30, 2017 for governmental activities and $8,613,690 for business-type activities.

• Capital Assets net of depreciation are reported at $79,644,245 on September 30, 2017 for all fund types.

Government-Wide Financial Statements The government-wide financial statements (statement of net assets and statement of activities) concentrate on the County as a whole and do not emphasize fund types but rather a governmental or a business-type classification, which are presented in separate columns. The governmental and business-type activities comprise the primary government and are reported separate from the component unit for which the County is accountable. General governmental and intergovernmental revenues support the governmental activities, whereas the business-type activities are primarily supported by user fees and charges for services. The purpose of the government-wide financial statements is to allow the user to be able to analyze the County’s total financial position. The statement of activities reflect the expenses of a given function or segment, which are offset by program revenues. Program revenues are defined as charges for services, operating grants and contributions, and capital grants and contributions directly associated with a given function. Taxes are reported under general revenue. Fund Financial Statements The accounts of the County are organized on the basis of funds, each of which is considered 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 or retained earnings, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The County’s funds are presented in separate fund financial statements. These funds are presented on a governmental fund financial statement and a proprietary fund financial statement. The County’s major funds are

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presented in separate columns on the fund financial statements. The definition of a major fund is one that meets certain criteria set-forth in Governmental Accounting Standards Board Statements Number 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments (GASB 34). The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the fund financial statements. The County adopts an annual budget for all funds. A budgetary comparison has been presented for the General Fund, County Transportation Trust Fund, Solid Waste Disposal Fund, Disaster Relief Fund, Capital Projects Fund, and Debt Service Fund which compares not only actual results to budget but also the original adopted budget to final budget. Governmental Fund Financial Statements Governmental fund financial statements are prepared on the modified accrual basis using current financial resources measurement focus. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Five of the County’s governmental funds, the General Fund, County Transportation Trust Fund, Solid Waste Disposal Fund are classified as major funds. All other governmental funds are combined into a single column on the governmental fund financial statements. Individual fund data for the non-major funds are found in combining statement as supplemental financial data. Proprietary Fund Financial Statements Proprietary fund financial statements like government-wide financial statements are prepared on the full accrual basis. Proprietary funds record both operating and non-operating revenues and expenses. Operating revenues are those that are obtained from the operations of the proprietary fund. The County reports their Port LaBelle Utility System in the proprietary fund financial statement. This enterprise fund represents our water and sewer system that the county owns and operates. Fiduciary Fund Financial Statement The fiduciary fund financial statement is not included in the government-wide financial statements because the resources of those funds are not available to support the County’s programs. The only type of fiduciary funds the County maintains, agency funds, are used to account for assets held by the County as an agent for individuals. Government-Wide Financial Analysis The government-wide financial statements were designed so that the user could determine if the County is in a better or worse condition from the prior year. In fiscal year ending 2003 GASB 34 was implemented and reporting requirements changed significantly. The following is a condensed summary of net position for the primary government for fiscal years 2016 and 2017 with increases and decreases.

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Governmental Governmental Governmental Business-type Business-type Business-type All Actvities All ActvitiesActivities Activities Activities Activities Activities Activities Total Total

2016 2017 Inc / (Dec) 2016 2017 Inc / (Dec) 2017 Inc / (Dec)Current and other assets 27,073,942$ 26,784,849$ (289,093)$ 5,750,481$ 6,079,679$ 329,198$ 32,864,528$ 40,105$ Capital assets 58,393,334 59,768,718 1,375,384 20,844,623 19,906,433 (938,190) 79,675,151 437,194 Deferred outflows Related to pensions 9,984,440 12,264,230 2,279,790 149,249 201,510 52,261 12,465,740 2,332,051 Total assets and deferred outflows 95,451,716 98,817,797 3,366,081 26,744,353 26,187,622 (556,731) 125,005,419 2,809,350

Other Liabilities 11,454,719 12,897,089 1,442,370 1,389,757 1,418,108 28,351 14,315,197 1,470,721 Non-current Liabilities 28,890,846 32,882,138 3,991,292 8,873,494 8,613,690 (259,804) 41,495,828 3,731,488 Deferred inflows Related to pensions 1,085,568 1,509,259 423,691 16,321 287,050 270,729 1,796,309 694,420 Total liabilities and deferred inflows 41,431,133 47,288,486 5,857,353 10,279,572 10,318,848 39,276 57,607,334 5,896,629

Net position:Invested in capital assets, net of related debt 56,391,259 57,867,659 1,476,400 12,050,117 11,433,745 (616,372) 69,301,404 860,028 Restricted 3,874,156 3,982,234 108,078 - - - 3,982,234 108,078 Unrestricted (6,244,832) (10,320,582) (4,075,750) 4,414,664 4,435,029 20,365 (5,885,553) (4,055,385) Total Net Position 54,020,583$ 51,529,311$ (2,491,272) 16,464,781$ 15,868,774$ (596,007)$ 67,398,085$ (3,087,279)$

Hendry County, FloridaSummary of Net Position with Prior Year Comparison

September 30, 2017

Investment in capital assets, net of related debt is the largest portion of the net assets. This represents capital assets (land, buildings, improvements, equipment, furniture, vehicles, and infrastructure), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The restricted net position balance of $3,982,234 in 2017 represents a bonding requirement, capital project and disaster recovery requirements in 2017. The unrestricted net position balance of ($5,885,553) represents assets that are available for spending at the County’s discretion however it is important to note that this balance is county wide and there are restrictions within each source of funds as to what these funds can be used for. The largest decrease in asset type for fiscal year ending in 2017 was restricted assets for governmental activities. Governmental Activities Analysis Governmental Revenue Accounts had a decrease of (2 percent) from 2016 to 2017. The majority of this variance is due to an increase in Ad Valorem Taxes offset by decreases in intergovernmental revenues such as Charges for Services, Operating Grants and Capital Grants and Contributions. The increase in Ad Valorem Taxes is associated with a slight upward turn of our economy in Hendry County as well as the State. The decrease in Grant income is associated with slightly less State Airport and Road Projects in Fiscal Year 2017. None of the remaining revenue accounts had material differences. Expenses increased .5 percent in 2017. Taking into consideration increases in Salaries, Benefits, Medicaid, Public Safety and Hurricane Irma expenses, this increase was held to minimum. The Hendry County Board of County Commissioners, Hendry County Staff as well as all Hendry County Constitutional Officials have worked diligently to become more efficient and cost effective over the past few years and will continue this process into the future. Business Activities Analysis The Port LaBelle Utility System had increases in both revenue and expenses due to the increase of economy in the Port LaBelle area. New homes were built end existing inventory purchases causing an increase in 2017 Fiscal Year.

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The following schedule represents Summary of Revenue and Expenditures and Changes in Net Position for the year September 30, 2017.

Governmental Governmental Business-type Business-typeActivities Activities Activities Activities Total

2016 2017 2016 2017 2017Revenues:Program Revenues:

Charges for Service 10,323,459$ 9,116,157$ 1,525,986$ 1,690,008$ 10,806,165$ Operating Grants and Contributions 951,008 649,358 - - 649,358 Capital Grants and Contributions 8,852,580 6,420,205 - - 6,420,205

General Revenues:Taxes 22,756,900 23,574,231 - - 23,574,231 Impact Fees - - - - -

Intergovernmental revenues, not restricted for specific purposes 7,024,833 8,956,841 - - 8,956,841

Other 2,024,126 2,433,036 68,248 233,645 2,666,681 Total Revenues 51,932,906 51,149,828 1,594,234 1,923,653 53,073,481

Expenses:Program Activities:

General Government 12,906,988 16,019,599 - - 16,019,599 Court Related 1,565,706 1,477,944 - - 1,477,944 Public Safety 20,434,652 22,551,221 - - 22,551,221 Physical Environment 3,271,795 3,390,649 - - 3,390,649 Transportation 7,546,949 7,172,437 - - 7,172,437 Economic environment 858,426 761,460 - - 761,460 Human Services 2,166,945 1,121,979 - - 1,121,979 Culture and recreation 1,064,858 1,058,187 - - 1,058,187 Interest on long-term debt 36,977 87,624 - - 87,624

Business-type activities:Water and wastewater - - 2,333,099 2,519,660 2,519,660

49,853,296 53,641,100 2,333,099 2,519,660 56,160,760

Increase in net position (12,417,805) (2,491,272) (738,865) (596,007) (3,087,279)

Beginning Net position, October 1 51,940,973 54,020,583 17,203,646 16,464,781 70,485,364 Ending Net position, September 30 39,523,168$ 51,529,311$ 16,464,781$ 15,868,774$ 67,398,085$

Hendry County, FloridaSummary of Revenues, Expenses and Changes in Net Position

As of September 30, 2017

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Governmental Activities The following is a chart of revenues by source for governmental activities by percent of total revenues for fiscal year 2017.

18%1%12%

46%0%

19% 4%

Revenues by Source - Governmental Activities

Charges for ServiceOperating Grants and ContributionsCapital Grants and ContributionsTaxesImpact FeesIntergovernmental revenues, not restricted for specific purposesOther

I - 9

The following is a chart of expenses by program for governmental activities for fiscal year 2017.

30%

3%42%

6%

13% 2%2%

2%

Expenses by Program - Govermental Activities

Charges for ServiceOperating Grants and ContributionsCapital Grants and ContributionsTaxesImpact FeesIntergovernmental revenues, not restricted for specific purposesOther

I - 10

Business-Type Activities The following is a chart of Revenues by Source for our Business Activities for fiscal year 2017. Our Business Activities consist of Port LaBelle Utilities. Total Revenues created from Charges for Services consisted of $1,690,008. This represents charges for water/sewer usage. Other revenues totaling $233,645 resulted from a special assessment, interest revenue and miscellaneous charges. All business type expenditures for fiscal year 2017 consisted of water and wastewater expenses to operate Port LaBelle Utility Systems and administrative fees.

1,690,008

233,645

Business Revenues

Charges for Service Other

I - 11

Financial Analysis of the Government’s Funds Governmental Funds Governmental funds are comprised of the General Fund, Fine & Forfeiture Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Disaster Relief Fund. As noted earlier governmental funds use the current financial resources measurement focus that focus on near-term inflows and outflows. The General Fund is the general operating fund that is used to account for all financial resources, except those required to be accounted for in another fund. The Fine & Forfeiture fund is comprised to fund the Hendry County Sheriff’s office, probation department, courthouse security, mandated costs for law enforcement, and other misc. items to do with the same. Proprietary Funds Proprietary funds are comprised of enterprise funds and internal service funds. An enterprise fund is used to account for activities for which a fee is charged to external users for goods and services. Internal service funds are those that provide a service, primarily within the government, and charge a recovery fee. Capital Assets Non-depreciable capital assets include land and construction in progress. Depreciable assets include buildings, improvements other than buildings, machinery and equipment, and infrastructure. Total Capital assets total $79,644,243. This is an increase of $406,286 over prior year.

Debt Administration At September 30, 2017, the County had a total of governmental and business-type liabilities of $55,811,025. Governmental liabilities of $45,779,227, mostly consisted of pension related liabilities of $27,178,939, other post-employment benefits of $2,273,333, and notes and capital leases payable of $1,901,059. Additionally, business-type liabilities of $8,613,690, mostly consisted of revenue bonds of $6,490,282 and notes payable of $1,982,406. Request for information This financial report is designed to provide the reader an overview of the County. Questions regarding any information provided in this report should be directed to: Hendry County Clerk of Courts, Finance Department, 25 East Hickpochee Avenue, LaBelle, FL 33935, phone (863) 675-5322.

BASICFINANCIAL STATEMENTS

Governmental Business-typeActivities Activities Total

ASSETSCash and cash equivalents 11,007,131$ 794,999$ 11,802,130$ Investments, at fair value 3,306,751 - 3,306,751 Prepaid expenses 20,960 - 20,960 Receivables, net 6,527,768 2,896,288 9,424,056 Due from other governments 140,734 - 140,734 Due from other funds 5,781,505 - 5,781,505 Inventory - 360 360 Restricted assets:

Cash and cash equivalents - 2,388,032 2,388,032 Amortized bond costs, net - 30,906 30,906 Capital assets:

Non-depreciable 16,163,693 537,006 16,700,699 Depreciable, net 43,605,025 19,338,521 62,943,546

TOTAL ASSETS 86,553,567 25,986,112 112,539,679

DEFERRED OUTFLOWS OF RESOURCESRelated to pensions 12,264,230 201,510 12,465,740

LIABILITIESAccounts payable 3,420,360 43,002 3,463,362 Accrued liabilities 1,090,332 33,190 1,123,522 Deferred revenue 4,741 - 4,741 Due to other governments 1,067,181 - 1,067,181 Other liabilities 2,038,021 - 2,038,021 Due to other funds 4,850,459 816,160 5,666,619 Liabilities payable from restricted assets:

Current portion of long term debt 425,995 340,204 766,199 Customer deposits - 185,552 185,552

Noncurrent liabilities:Due in more than one year 32,882,138 8,613,690 41,495,828

TOTAL LIABILITIES 45,779,227 10,031,798 55,811,025

DEFERRED INFLOWS OF RESOURCESRelated to pensions 1,509,259 287,050 1,796,309

NET POSITIONInvested in capital assets,

net of related debt 57,867,659 11,433,745 69,301,404 Restricted for:

General government 682,234 - 682,234 Disaster recovery 3,300,000 - 3,300,000

Unrestricted (10,320,582) 4,435,029 (5,885,553) TOTAL NET POSITION 51,529,311$ 15,868,774$ 67,398,085$

The accompanying notes to the financial statements are an integral part of this statement.

Primary Government

HENDRY COUNTY, FLORIDASTATEMENT OF NET POSITION

September 30, 2017

I-12

Operating Capital Charges for Grants and Grants and

Functions/Programs Expenses Services Contributions ContributionsPrimary government: Governmental Activities :

General government 16,019,599$ 5,108,323$ -$ -$ Court related 1,477,944 39,668 - 7,477 Public safety 22,551,221 2,257,886 382,283 310,827 Physical environment 3,390,649 227,122 - 90,909 Transportation 7,172,437 1,434,908 - 5,755,929 Economic environment 761,460 39,949 267,075 - Culture and recreation 1,058,187 8,301 - 255,063 Human services 1,121,979 - - - Interest on long-term debt 87,623 - - -

Total governmental activities 53,641,100 9,116,157 649,358 6,420,205

Business-type Activities :Water and Wastewater 2,519,660 1,690,008 - -

Total primary government 56,160,760$ 10,806,165$ 649,358$ 6,420,205$

General revenues : Property taxes

Gasoline taxes Communications taxes Other taxes Licenses and permits Intergovernmental revenues MiscellaneousTotal general revenues

Change in net position

Net position, October 1, 2016

Net position, September 30, 2017


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HENDRY COUNTY, FLORIDASTATEMENT OF ACTIVITIES

September 30, 2017

Program Revenues

Governmental Business-typeActivities Activities Total

(10,911,276)$ -$ (10,911,276)$ (1,430,799) - (1,430,799)

(19,600,225) - (19,600,225) (3,072,618) - (3,072,618)

18,400 - 18,400 (454,436) - (454,436) (794,823) - (794,823)

(1,121,979) - (1,121,979) (87,623) - (87,623)

(37,455,380) - (37,455,380)

- (829,652) (829,652)

(37,455,380) (829,652) (38,285,032)

15,264,129 - 15,264,129 4,085,507 - 4,085,507

171,434 - 171,434 4,053,161 - 4,053,161

611,497 - 611,497 8,956,841 - 8,956,841 1,821,539 233,645 2,055,184

34,964,108 233,645 35,197,753

(2,491,272) (596,007) (3,087,279)

54,020,583 16,464,781 70,485,364

51,529,311$ 15,868,774$ 67,398,085$

Net (Expense) Revenue and Changes in Net Position

Primary Government

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County SolidTransportation Waste Capital

General Trust Disposal ProjectsASSETS

Cash and cash equivalents 2,516,343$ 5,668$ 1,584,748$ 264,670$ Investments 3,306,751 - - - Prepaid expenses - - - - Receivables (net) 2,174,087 2,654,239 152,149 1,140,529 Due from other governments 140,734 - - - Due from other funds 2,549,836 2,090,000 - -

Total assets 10,687,751$ 4,749,907$ 1,736,897$ 1,405,199$

LIABILITIES AND FUND BALANCES

LiabilitiesAccounts payable 1,655,079$ 222,633$ 157,148$ 715,061$ Accrued liabilities 955,383 76,224 2,298 - Deferred revenue - - - - Due to other governments 1,067,181 - - - Other liabilities 220,246 950,665 - - Due to other funds 2,894,669 222,374 48,618 945,799

Total liabilities 6,792,558 1,471,896 208,064 1,660,860

Fund balancesRestricted - - - - Committed 3,300,000 - - - Assigned (329,374) 3,278,011 1,528,833 (255,661) Unassigned 924,567 - - -

Total fund balances 3,895,193 3,278,011 1,528,833 (255,661)

Total liabilities and fund balances 10,687,751$ 4,749,907$ 1,736,897$ 1,405,199$


September 30, 2017

HENDRY COUNTY, FLORIDABALANCE SHEET

GOVERNMENTAL FUNDS

I-15

Other TotalGovernmental Governmental

Funds Funds

6,635,702$ 11,007,131$ - 3,306,751

20,960 20,960 406,764 6,527,768

- 140,734 1,141,669 5,781,505

8,205,095$ 26,784,849$

670,439$ 3,420,360$ 56,427 1,090,332 4,741 4,741

- 1,067,181 867,110 2,038,021 738,999 4,850,459

2,337,716 12,471,094

682,234 682,234 - 3,300,000

5,185,145 9,406,954 - 924,567

5,867,379 14,313,755

8,205,095$ 26,784,849$

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Fund Balances - total governmental funds 14,313,755$

Non-depreciable governmental capital assets 16,163,693$ Depreciable governmental capital assets, net 43,605,025 59,768,718

Notes payable (1,158,770) Capital leases (742,289) Other Post Employment Benefits (2,273,333) Net Pension liability (27,178,939) Deferred outflows related to pensions 12,264,230 Deferred inflows related to pensions (1,509,259) Compensated absences (1,954,802) (22,553,162)

Net position of governmental activities 51,529,311$


September 30, 2017

HENDRY COUNTY, FLORIDARECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION

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Capital assets used in governmental activities are not financial resourcesand are therefore not reported in the governmental funds:

Long-term liabilities are not due and payable in the current period andtherefore are not reported in the governmental funds:

County SolidTransportation Waste

General Trust DisposalREVENUES

Taxes 15,475,290$ 1,255,816$ 890,456$ Licenses and permits 198,408 15 - Intergovernmental 6,281,251 8,024,500 90,909 Charges for services 6,200,210 457,078 227,122 Fines and forfeitures - - - Miscellaneous 525,609 13,575 19,435

Total revenues 28,680,768 9,750,984 1,227,922

EXPENDITURES Current

General government 10,380,723 - - Court related 1,174,485 - - Public safety 18,184,766 - - Physical environment 451,708 - 2,028,624 Transportation - 5,526,969 - Economic environment 298,379 - - Culture and recreation 125,467 - - Human services 1,121,979 - -

Capital outlayGeneral government 91,958 - - Public safety 121,000 - - Physical environment - - - Transportation - 3,899,409 -

Debt servicePrincipal retirement 559,143 91,315 - Interest and fiscal charges 66,796 12,643 -

Total expenditures 32,576,404 9,530,336 2,028,624

Excess (deficiencies) of revenues over (under) expenditures (3,895,636) 220,648 (800,702)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 259,711 - - Proceeds from sale of capital assets 37,741 - - Transfers in 16,991,427 164,901 - Transfers out (13,922,024) - -

Total other financing sources (uses) 3,366,855 164,901 -

Net change in fund balances (528,781) 385,549 (800,702) Fund balances, October 1, 2016 4,423,974 2,892,462 2,329,535 Fund balances, September 30, 2017 3,895,193$ 3,278,011$ 1,528,833$


HENDRY COUNTY, FLORIDASTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDSFor the Year Ended September 30, 2017

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Other TotalCapital Governmental GovernmentalProjects Funds Funds

2,769,343$ 3,183,326$ 23,574,231$ - 413,074 611,497

814,526 815,218 16,026,404 - 2,231,747 9,116,157 - 290,432 290,432

5,525 852,374 1,416,518 3,589,394 7,786,171 51,035,239

1,599,204 324,863 12,304,790 - 208,273 1,382,758 - 2,317,727 20,502,493 - 910,317 3,390,649 - 1,645,468 7,172,437 - 463,081 761,460 - 932,720 1,058,187 - - 1,121,979

530,680 136,085 758,723 - - 121,000 - 91,045 91,045 - - 3,899,409

- 65,219 715,677 - 8,184 87,623

2,129,884 7,102,982 53,368,230

1,459,510 683,189 (2,332,991)

- - 259,711 - - 37,741

255,874 20,000 17,432,202 (2,648,889) (861,289) (17,432,202) (2,393,015) (841,289) 297,452

(933,505) (158,100) (2,035,539) 677,844 6,025,479 16,349,294

(255,661)$ 5,867,379$ 14,313,755$

I-19

Net change in fund balances - total governmental funds: (2,035,539)$

1,484,975

Principal payments 715,677$ Landfill Closure 42,842 Increase in other post employment benefits (326,886) Proceeds from issuance of debt (259,711) 171,922

Change in compensated absences (70,189) Pension expenditures (2,042,441) (2,112,630)

Change in net position of governmental activities (2,491,272)$


I-20

For the Fiscal Year ended September 30, 2017

HENDRY COUNTY, FLORIDARECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIES

GOVERNMENTAL FUNDS

Debt proceeds provide current financial resources for governmental funds,but issuing debt increases long-term liabilities in the statement of netposition. Repayment of debt principal is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in the statement of netposition.

Some expenditures reported in the statement of activities do not require theuse of current financial resources and, therefore, are not reported asexpenditures in governmental funds. The net changes associated with theseexpenses/expenditures are as follow:

Governmental funds report capital outlays as expenditures. However, in the statement ofactivities the cost of those assets is allocated over their estimated useful lives and reportedas depreciation or amortization expense. This is the amount by which depreciation,amortization and capital asset adjustments were above capital outlays in the current period.

Amounts reported for governmental activities in the statement of activities are differentbecause:

Variance withFinal Budget -

Actual PositiveOriginal Final Amounts (Negative)

REVENUESTaxes 15,795,613$ 16,162,867$ 15,475,290$ (687,577)$ Licenses and permits 117,500 198,908 198,408 (500) Intergovernmental 5,323,322 6,510,134 6,281,251 (228,883) Charges for services 5,642,643 6,130,436 6,200,210 69,774 Miscellaneous 269,600 696,421 525,609 (170,812)

Total revenues 27,148,678 29,698,766 28,680,768 (1,017,998)


General government 10,759,318 10,183,008 10,380,723 (197,715) Court related 1,218,138 1,220,737 1,174,485 46,252 Public safety 15,134,995 16,924,738 18,184,766 (1,260,028) Physical environment 474,257 452,184 451,708 476 Economic environment 347,940 298,377 298,379 (2) Culture and recreation 78,047 125,987 125,467 520 Human services 911,286 1,101,702 1,121,979 (20,277)

Capital OutlayGeneral government 54,700 92,138 91,958 180 Public safety 290,585 319,068 121,000 198,068 Physical environment 40,000 - - - Transportation 500 - - -

Debt servicePrincipal retirement 310,500 332,035 559,143 (227,108) Interest and fiscal charges 200 22,655 66,796 (44,141)

Contingency 50,000 50,000 - 50,000 Total expenditures 29,670,466 31,122,629 32,576,404 (1,453,775)

Deficiencies of revenues under expenditures (2,521,788) (1,423,863) (3,895,636) (2,471,773)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt - 259,711 259,711 - Proceeds from sale of capital assets - 37,741 37,741 - Transfers in 16,975,343 17,056,407 16,991,427 (64,980) Transfers out (12,859,403) (16,555,520) (13,922,024) 2,633,496

Total other financing sources (uses) 4,115,940 798,339 3,366,855 2,568,516 Net change in fund balances 1,594,152 (625,524) (528,781) 96,743 Fund balances - October 1, 2016 (1,594,152) 325,524 4,423,974 4,098,450 Fund balances - September 30, 2017 -$ (300,000)$ 3,895,193$ 4,195,193$


I-21

Budgeted Amounts

HENDRY COUNTY, FLORIDASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - GENERAL FUNDFor the Fiscal Year Ended September 30, 2017



REVENUESTaxes 1,153,361$ 1,255,816$ 1,255,816$ -$ Intergovernmental 15,893,997 16,042,510 8,024,500 (8,018,010) Charges for services 409,500 460,078 457,093 (2,985) Miscellaneous 25,600 25,931 13,575 (12,356)

Total revenues 17,482,458 17,784,335 9,750,984 (8,033,351)


Transportation 11,697,399 11,031,088 5,526,969 5,504,119 Capital outlay

Transportation 6,861,642 6,825,333 3,899,409 2,925,924 Debt service

Principal retirement - 91,315 91,315 - Interst and fiscal charges 12,643 12,643

Total expenditures 18,559,041 17,960,379 9,530,336 8,430,043

Excess (deficiencies) of revenues over (under) expenditures (1,076,583) (176,044) 220,648 396,692

OTHER FINANCING SOURCES Transfers in 80,316 80,316 164,901 84,585

Total other financing sources 80,316 80,316 164,901 84,585

Net change in fund balance (996,267) (95,728) 385,549 481,277

Fund balance-October 1, 2016 996,267 95,728 2,892,462 2,796,734

Fund balance- September 30, 2017 -$ -$ 3,278,011$ 3,278,011$


I-22

Budgeted Amounts

BUDGET AND ACTUALCOUNTY TRANSPORTATION TRUST


For the Fiscal Year Ended September 30, 2017



REVENUESTaxes 852,462$ 890,455$ 890,455$ -$ Intergovernmental 90,909 90,909 90,909 - Charges for services 101,508 149,967 227,123 77,156 Miscellaneous 18,949 21,693 19,435 (2,258)

Total revenues 1,063,828 1,153,024 1,227,922 74,898

EXPENDITURESCurrent

Physical environment 2,221,975 2,131,066 2,028,624 102,442

Total expenditures 2,221,975 2,131,066 2,028,624 102,442

Excess (deficiencies) of revenues over (under) expenditures (1,158,147) (978,042) (800,702) 177,340

Fund balance - October 1, 2016 1,158,147 978,042 2,329,535 1,351,493

Fund balance - September 30, 2017 -$ -$ 1,528,833$ 1,528,833$


I-23

Budgeted Amounts

BUDGET AND ACTUALSOLID WASTE DISPOSAL



Business-type ActivitiesEnterprise Fund

Port LaBelleUtility System

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES

AssetsCurrent Assets

Cash and cash equivalents 794,999$ Receivables (net) 2,896,288 Inventory 360 Restricted Assets:

Cash and cash equivalents 2,388,032

Total current assets 6,079,679

Noncurrent AssetsAmortized bond costs, net 30,906 Capital Assets

Non-depreciable 537,006 Depreciable 29,252,689 Less: accumulated depreciation (9,914,168)

Total Capital Assets, net 19,875,527

Total noncurrent assets 19,906,433

Total assets 25,986,112

Deferred outflows of resourcesRelated to pensions 201,510



HENDRY COUNTY, FLORIDASTATEMENT OF NET POSITION

PROPRIETARY FUND

I-24



LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION

LiabilitiesCurrent liabilities

Accounts payable 43,002 Accrued liabilities 33,190 Due to other funds 816,160

Total current liabilities 892,352

Current liabilities payable from restricted assetsNotes payable 166,404 Bonds payable 173,800 Customer deposits 185,552

Total current liabilities payable from restricted assets 525,756

Noncurrent liabilitiesAccrued compensated absences 27,147 Notes payable 1,826,784 Bonds payable 6,305,700 Net pension liability 454,059

Total noncurrent liabilities 8,613,690

Total liabilities 10,031,798

Deferred inflows of resourcesRelated to pensions 287,050

Net positionInvested in capital assets, net of related debt 11,433,745 Unrestricted 4,435,029

Total net position 15,868,774$

I-25



OPERATING REVENUESCharges for services 1,690,008$ Miscellaneous 65,234

Total operating revenues 1,755,242

OPERATING EXPENSESPersonal services 743,499 Contractual services 101,041 Repairs and maintenance 120,394 Depreciation and amortization 969,451 Office 5,120 Supplies 57,330 Utilities 59,547 Other expense 150,667

Total operating expenses 2,207,049

Operating income (loss) (451,807)

NON-OPERATING REVENUES (EXPENSES)Interest revenue 168,411 Interest and fiscal charges (312,611)

Total non-operating (expenses) (144,200)

Change in net position (596,007)

Total net position, October 1, 2016 16,464,781

Total net position, September 30, 2017 15,868,774$


I-26

HENDRY COUNTY, FLORIDASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDFor the Fiscal Year Ended September 30, 2017

Business-type ActivitiesEnterprise Funds


CASH FLOWS FROM OPERATING ACTIVITIES:Cash received from customers 1,841,956$ Cash payments to suppliers for goods and services (551,202) Cash payments to employees for services (303,117)

Net cash provided by operating activities 987,637

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Deposits collected from customers less deposits refunded to customers 7,935

Net cash provided by noncapital financing activities 7,935

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Principal paid on notes payable and revenue bonds (321,818) Interest paid on notes payable and revenue bonds (312,611)

Net cash used in capital financing activities (634,429)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest on investments 168,411

Net cash provided by investing activities 168,411

Net increase in cash and cash equivalents 529,554

Cash and cash equivalents on October 1, 2016 2,653,477

Cash and cash equivalents on September 30, 2017 3,183,031$


HENDRY COUNTY, FLORIDASTATEMENT OF CASH FLOWS

PROPRIETARY FUNDSFor the Fiscal Year Ended September 30, 2017

I-27

Business-type ActivitiesEnterprise Funds


Reconciliation of operating income (loss) to net cash provided by operating activities:

Operating income (loss) (451,807)$

Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization 969,451

Changes in assets and liabilities:(Increase) decrease in: Accounts receivable 164,377 Increase (decrease) in:

Accounts payable 2,005 Accrued liabilities (534)

Deferred outflows - pension related (increase) decrease (52,261) Deferred inflows - pension related increase (decrease) 270,729 Net pension liability increase (decrease) 85,677

Total adjustments 1,439,444

Net cash provided by operating activities 987,637$

I-28

Agency Funds

ASSETSCash and cash equivalents 2,681,709$ Receivables (net) 4,690

Total assets 2,686,399$

LIABILITIESAccounts payable 73,465 Due to other constitutional officers 38,125 Due to other governments 1,367,224 Due to individuals 506,244 Due to other funds 114,886 Deposits 586,455

Total liabilities 2,686,399$


I-29

HENDRY COUNTY, FLORIDASTATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDSAs of September 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

East Hendry County Drainage District

Hendry County (the “County”) was created in 1923 by the Laws of Florida 1923, Chapter 23-9369 asamended, Section 7.26, Florida Statutes and is a political subdivision of the State of Florida. It is governed byan elected Board of County Commissioners (the “Board”) which is a body of elected Constitutional Officers ofHendry County. In addition to the members of the Board of County Commissioners, there are five electedConstitutional Officers: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisorof Elections, which were established by the Constitution of the State of Florida, Article VIII, Section 1(d). TheConstitutional Officers maintain separate accounting records and budgets.

Hendry County also has a number of independent special districts, whose financials are not included in thisreport, but are subject to independent audit and whose financials are made available to the public by theDistrict. These include the Bolles Drainage District, the Central County Water Control District, the ClewistonDrainage District, the Collins Slough Water Control District, the Devil's Garden Water Control District, theGerber Groves Water control District, the Hendry Hilliard Water Control District, the Hendry County HospitalAuthority, the Area Housing Commission of Clewiston and the Hendry-LaBelle Recreation Board.

The basic financial statements consist of the government wide financial statements and fund financialstatements. Both sets of statements distinguish between the governmental and business type activities of theBoard.

HENDRY COUNTY, FLORIDANOTES TO THE FINANCIAL STATEMENTS

September 30, 2017

Government-Wide and Fund Financial Statements

Blended component units are legally separate entities that are in substance part of the County’s operation, asthey either have governing bodies that are substantively the same as the Board and there is a financial benefitor burden relationship between the Board and the component unit, or they provide their services exclusively oralmost exclusively to the County government. The financial transactions of these component units are mergedin with transactions of the County as part of the primary government. The blended component unit of theCounty is as follows:

The accompanying financial statements present the combined financial position and results of operations andchanges in cash flows of the County of the applicable fund types governed by the Board of CountyCommissioners of Hendry County, Florida and its Constitutional Officers.

As required by accounting principles generally accepted in the United States of America, the financialstatements of the reporting entity include those of Hendry County (the primary government) and its componentunits. A component unit is a legally separate organization for which the elected officials of the primarygovernment are financially accountable. In addition, a component unit may be another organization for whichthe nature and significance of its relationship with a primary government is such that exclusion would causethe reporting entity’s financial statements to be misleading or incomplete.

I-30

The District maintains the canals, ditches and storm water treatment areas located in East HendryCounty. By Petition of the Hendry County Board of County Commissioners, pursuant to the provisionsof Laws of Florida, Chapter 67-1443, the creation of the East Hendry County Drainage District wasapproved by court order on October 9, 1984.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The government-wide financial statements (the statement of net position and the statement of activities) reporton the Board as a whole and do not emphasize fund types but rather a governmental or a business-typeclassification, which are presented in separate columns. These statements report on the Board as a whole, boththe primary government and its component units, and provide a consolidated financial picture of the Board ofCounty Commissioners. As part of the consolidation process, inter-fund activities are eliminated to avoiddistorted financial results.

The Statement of Net Position reports all financial and capital resources of the Board’s governmental andbusiness-type activities. It is presented in a net position format (assets less liabilities equal net position) andshown with three components: amounts invested in capital assets, net of related debt; restricted net position;and unrestricted net position. The statement of activities reflects the expenses of a given function or segment,which are offset by program revenues. Program revenues are defined as charges for services, operating grantsand contributions and capital grants and contributions directly associated with a given function. Taxes arereported under general revenue.

I-31

The government-wide financial statements are prepared on a full accrual basis using the economic resourcesmeasurement focus, as are the proprietary fund financial statements.

Basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts andreported in the financial statements. Basis of accounting relates to the timing of the measurements made,regardless of the measurement focus applied.

NOTES TO THE FINANCIAL STATEMENTSSeptember 30, 2017

Program revenues are classified into three categories; charges for services, operating grants and contributionsand capital grants and contributions. Charges refer to direct recovery from customers for services rendered.Grants and contributions refer to revenues restricted for specific programs whose use may be restricted furtherto operational or capital items. The general revenues section displays revenue collected that helps support allfunctions of our government and contribute to the change in the net position for the fiscal year.

The Board’s major funds are presented in separate columns on the governmental fund financial statements andthe proprietary fund financial statements. The definition of a major fund is one that meets certain criteria set-forth in GASB 34. The funds that do not meet the criteria of a major fund are considered non-major funds andare combined into a single column on the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The accounts of the Board are organized on the basis of funds, each of which is considered a separateaccounting entity. The operations of each fund are accounted for with a separate set of self-balancing accountsthat comprise its assets, liabilities, fund equity or retained earnings, revenues and expenditures or expenses, asappropriate. Government resources are allocated to and accounted for in individual funds based upon thepurpose for which they are to be spent and the means by which spending activities are controlled.


Government-Wide and Fund Financial Statements, Continued


General Fund

County Transportation Trust Fund

Expenditures reported in governmental fund financial statements are generally recognized under the modifiedaccrual basis of accounting when the related fund liability is incurred. An exception to this general ruleincludes principal and interest on general long-term debt, which is recognized when due, the noncurrentportion of accrued compensated absences and other post employment benefits.


September 30, 2017

When both restricted and unrestricted resources are available, restricted resources will be used first forincurred expenses, and then unrestricted as needed.

The General Fund is the general operating fund of the Board that is used to account for all financialresources, except those required to be accounted for in another fund.

The County Transportation Trust Fund accounts for revenues received and expended for theconstruction and maintenance of roadways.

The Board reports the following major governmental funds:

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Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes arerecognized in the year for which they are levied. Grants and similar items are recognized as revenues as soonas all of the eligibility requirements have been met.

Proprietary funds record both operating and non-operating revenues and expenses. Operating revenues arethose that are obtained from the operations of the proprietary fund and include user fees. Non-operatingrevenues are not related to the operations of the proprietary fund and include interest and other miscellaneousearnings. Operating expenses represent the cost of operations, which includes depreciation. Non-operatingexpenses are not related to operations such as interest expense.

Governmental fund financial statements are prepared on the modified accrual basis using the current financialresources measurement focus. Under the modified accrual basis, revenues are recognized when they becomemeasurable and available as net current assets. The Board considers all revenues available if they are collectedwithin sixty days after year-end. Primary revenues, such as property taxes, special assessments,intergovernmental revenues, charges for services, sales and franchise taxes, rents and interest are treated assusceptible to accrual under the modified accrual basis and have been recognized as revenues.

The business-type activities reported in the government-wide financial statements and proprietary funds followprivate sector standards issued prior to December 1, 1989, to the extent those standards do not conflict withGovernmental Accounting Standards Board statements. However, pursuant to Government AccountingStandards Board Statement Number 20, Accounting and Financial Reporting for Proprietary Funds and OtherGovernmental Entities That Use Proprietary Fund Accounting, the Board has elected not to apply accountingstandards issued after November 30, 1989, by the Financial Accounting Standards Board.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued


Solid Waste Disposal Fund

Capital Projects Fund

Non-major Governmental Funds

The Port LaBelle Utility System

Budgets and Budgetary Accounting

(1)

(2)

(3)

(4)

(5)

(6)

The non-major governmental funds are a combination of special revenue, debt service and capitalprojects funds.

On or before July 15, a tentative budget for the fiscal year commencing the following October 1 ispresented to the Board.

Public hearings are conducted to inform the taxpayers of the tentative budget and proposed tax levies andto obtain taxpayer comments.

Section 129.07 of the Florida Statutes prohibits incurring expenditures in excess of total fundappropriations.

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Additionally, the Board reports Agency Funds. Agency funds are custodial funds and do not involvemeasurement of results of operations. These funds are clearing accounts for assets held by the County as anagent for other funds. These funds hold assets prior to disbursement or in a custodial capacity.

Formal budgetary integration is employed as a management control device during the year in allGovernmental Fund Types. Estimated beginning fund balances are considered in the budgetary process,but are not included in the financial statements as budgeted revenue.

The Capital Projects Fund accounts for revenues received from the infrastructure surtax.

The Board reports the following major proprietary fund:

The Port LaBelle Utility System accounts for activities related to the county-owned water and systems.

Chapters 129 and 200 of the Florida Statutes govern the preparation, adoption and administration of theCounty’s annual budget. The budget is required to be balanced; that is; the total of the estimated revenues,including balances brought forward, shall equal the total of the appropriations and reserves. The followingprocedures are followed by the County in establishing the operating budget:

The tentative budget is reviewed by the Board and any necessary changes are made.

On or before September 30, the budget is legally adopted through passage of a resolution.

The Solid Waste Disposal Fund is used to account for the activities related to the solid waste disposalprogram.


September 30, 2017

Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)


Budgets and Budgetary Accounting (continued)

(7)

(8)

Assets, Liabilities, and Net Position or Fund Equity

Cash and Investments

The Board reports all investments at fair value.

Inventories

Capital Assets

The annual budgets serve as the legal authorization for expenditures. Expenditures cannot legally exceed thetotal amount budgeted for each fund. The Board must approve all budget amendments, which change thelegally adopted total appropriation for a fund.

For accounting and investment purposes, the Board maintains a cash pool that is available for use by allfunds except those whose cash and investments may be segregated due to legal or other restrictions.

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The Board considers cash and cash equivalents to be cash on hand, demand deposits, highly liquidinvestments, including those held as restricted assets, with original maturities of three months or lesswhen purchased, and those included in the internal investment pool.

Interest earned on investments in the pool is allocated to the various funds based upon each fund’s equitybalance in the pool during the allocation period.

Inventories, consisting primarily of materials and supplies, are stated at cost, which approximates fairmarket value. The “first-in, first-out” method of accounting is used to determine cost. All inventoriesare recorded as expenditures, or expenses, as they are used (consumption method).

Capital assets include property, plant and equipment. Infrastructure assets are defined as public domainfixed assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lightingsystems and similar assets that are immovable and of value only to the government unit. Pursuant toGASB Statement No. 34, the County, a Phase 3 government, has elected to report infrastructureretroactively. Retroactive infrastructure is reported at the estimated historical cost.

Budgets for General, Special Revenue, Debt Service and Capital Projects Funds are adopted on a basisconsistent with accounting principles generally accepted in the United States of America.

Formal budgetary integration is employed as a management control device during the year in allGovernmental Fund Types. Estimated beginning fund balances are considered in the budgetary process,but are not included in the financial statements as budgeted revenue.


September 30, 2017

If, during the fiscal year, additional revenues become available for appropriation in excess of those estimatedin the budget, the Board may make supplemental appropriations by resolution for the year up to the amount ofsuch excess. During the fiscal year the Board, in accordance with Florida Statutes, approved varioussupplemental appropriations. Appropriations lapse at fiscal year-end.


Assets, Liabilities, and Net Position or Fund Equity (continued)

The ranges of the useful lives are as follows:

Years

Buildings 30-50Infrastructure 10-100Improvements other than

Buildings 6-50Equipment 3-35Computer Equipment 3-10Furniture 4-20Vehicles & Rolling Stock 3-15

Deferred Outflows/Inflows of Resources

Compensated Absences

Capital assets are reported in the government-wide financial statements in the applicable governmental orbusiness-type activities column, as well as the proprietary fund financial statements. The threshold forcapitalizing property, plant, and equipment is $5,000. The threshold for capitalizing infrastructure is$100,000. Capital assets are recorded at cost, or estimated historical cost. Contributed assets arerecorded at estimated fair market value at the time received.

Depreciation is calculated using the straight-line method over the estimated useful lives of the relatedassets. Florida Statutes require that the Board maintain accountability for all assets used in operations,except those maintained by the Sheriff.

Asset

The Board maintains a policy that permits employees to accumulate earned but unused vacation and sickpay benefits that will be paid to employees upon separation from Board service if certain criteria are met.These benefits, plus their related tax and retirement costs are classified as compensated absences. Boththe current and long-term portion of compensated absences are accrued and reported in the government-wide and proprietary fund financial statements. This is accounted for pursuant to GASB StatementNumber 16, Accounting for Compensated Absences.

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Deferred outflows of resources represent a consumption of net position that applies to a future period andtherefore will not be recognized as expended until then. The Board presents deferred outflows associatedwith pensions to be expensed over future periods.

Deferred inflows of resources are reported in governmental activities to offset receivables and depositsthat do not meet the availability criterion under the modified accrual basis of accounting. The Boardpresents amounts associated with pensions as deferred inflows of resources.


September 30, 2017


Assets, Liabilities, and Net Position or Fund Equity (continued)

Net Position / Fund Balance Classification

Spendable Fund Balances:

Invested in Capital Assets, Net of Related Debt – indicates that portion of net position whichrepresents the County’s equity in capital assets, less the amount of related debt.

Restricted Net Position – indicates that portion of net position which is segregated due to externalrestrictions imposed by creditors, grantors, contributors or laws or regulations of other governmentsand restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – indicates that portion of net position which is available for generaloperations.

Government-wide statements and proprietary fund statements utilize an economic resourcesmeasurement focus and categorize net position among the following components:

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Governmental funds report fund balances as either nonspendable or spendable. Spendable fund balancesare further classified as restricted, committed, assigned or unassigned, based on the extent to which thereare external or internal constraints on the spending of these fund balances.

Nonspendable fund balances include amounts that cannot be spent because they are not in spendableform or legally or contractually required to be maintained intact. The County considers inventories andprepaid items as part of this category, as well as long-term receivables from which proceeds are notrestricted, committed or assigned.


Restricted Fund Balance: Amounts that are restricted to specific purposes, and are restrictedthrough enabling legislation and are legally enforceable. The legislation that creates the revenuestream must also stipulate the purposes for which that revenue can be used.

Committed Fund Balance: Amounts that are committed for specific purposes by formal action ofthe governments’ highest level of decision making authority. These amounts are not subject to legalenforceability as in restricted, however those amounts cannot be used for any other purpose unlessthe government removes or changes the limitation by taking the same form of action it employed topreviously impose the limitation.

Assigned Fund Balance: Amounts that are intended by the government to be used for specificpurposes but are neither restricted nor limited. Intent should be expressed by (a) the governing bodyitself, or (b) a subordinate high-level body or official possessing the authority to assign amounts tobe used for specific purposes.

Unassigned Fund Balance: The residual classification for the general fund. This classificationrepresents fund balance that has not been assigned to other funds and that has not been restricted,limited or assigned to specific purposes within the general fund.


Use of Estimates

New Accounting Pronouncement

NOTE 2 - PROPERTY TAXES

Important dates in the property tax cycle are as follows:

- Assessment roll certified- July 1--- Taxes due and payable (levy date)- November 1--- Taxes become delinquent (lien date)- April 1- Tax certificate sold- prior to June 1

The preparation of financial statements in conformity with accounting principles generally accepted in theUnited States of America requires the Board to make estimates and assumptions relating to the reporting ofassets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financialstatements, and the reported amounts of revenue and expenditures or expenses during the reporting period.Actual results could differ from those estimates.

Effective October 1, 2014, the County adopted provisions GASB Statement No. 68, Accounting and FinancialReporting for Pensions, an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions made Subsequent to the Measurement Date, an amendment of GASB StatementNo. 68.

The enforceable lien date is approximately two years after taxes become delinquent and occurs only uponrequest of a holder of a delinquent tax certificate. There was no significant delinquent property taxesreceivable at September 30, 2017.

September 30, 2017


No accrual for the property tax levy becoming due in November 2017 is included in the accompanyingfinancial statements, since such taxes are collected to finance expenditures of the subsequent period.Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, areprovided by Florida Statutes and are performed by the Hendry County Tax Collector.

Property taxes become due and payable on November 1 of each year and are delinquent on April 1 of thefollowing year. Discounts on property taxes are allowed for payments made prior to the April 1 delinquentdate. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1 of each year.

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Millage resolution approved- no later than 93 days following certification of assessment rollBeginning of fiscal year for which taxes have been levied- October 1

Property taxes payable (maximum discount of 4 percent)- 30 days after levy dateDue date- March 31

Deficit Fund Balances

Non-major Governmental Funds:

Budgetary Compliance

The Seven K Estates MSBU has a deficit fund balance of $549. It is anticipated that the deficit willbe resolved in the next fiscal year through an adjustment.

The Fines and Forfeitures Fund has a deficit fund balance of $39,306. It is anticipated that thedeficit will be resolved in the next fiscal year through an adjustment.

The East Hendry County Recreational MSBU has a deficit fund balance of $96,525. It is anticipatedthat the deficit will be resolved in the next fiscal year through an adjustment.

The East Hendry County Fire District has a deficit fund balance of $581,071. It is anticipated thatthe deficit will be resolved in the next fiscal year through an adjustment.

The Court Technology Fund has a deficit fund balance of $14,539. It is anticipated that the deficitwill be resolved in the next fiscal year through an adjustment.

As of September 30, 2017, the County has the following non-major governmental funds with deficit fundbalances. The County anticipates these deficits to be resolved in the next fiscal year through an adjustment.

The County incurred unbudgeted expenditures from natural disaster Hurricane Irma for which relatedFEMA Disaster Grant revenue was not recognized. Due to the timing of the natural disaster and theexpected approval of FEMA Disaster Grant funding, the County has not recognized the revenue.Additionally, the Hendry County Board of County Commissioners approved a temporary loan to theHendry County Sheriff's Office in order to cover additional expenditures incurred due to the naturaldisaster. The Hendry County Sheriff's Office will eliminate this temporary loan upon receipt ofreimbursement from the Federal Emergency Management Agency (FEMA).

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NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY


NOTE 4 - CASH, CASH EQUIVALENTS AND INVESTMENTS

Enterprise: Labelle Utility

Accounts receivable 2,896,288$ Less: allowance for bad debt - Total receivables 2,896,288$

NOTE 6 - SPECIAL ASSESSMENT

NOTE 7 - RESTRICTED ASSETS AND LIABILITIES

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September 30, 2017

In connection with the Port LaBelle Utility System (PLUS), the Board has commenced a phased constructionprogram to provide utility service to vacant lots in Units 1–9 in Hendry County and Unit 102 in GladesCounty. The costs of the improvements are to be financed by special assessments levied against individuallots. The remaining balance of the assessment (if any) is to be paid over a twenty-year period through the realestate tax collection process. Interest at 7% is to be charged on the unpaid balance. The special assessment ratefor lots in Hendry County is $975 per lot, and the rate per lot in Glades County is $1,080 per lot.

Restricted assets of the proprietary fund represent monies to be restricted for special assessments,renewal and replacement, capital improvements and construction, and customer deposits under theterms of outstanding bond agreements, resolutions, and other contractual agreements.

Board investments are made in accordance with the provisions of Section 218.415, Florida Statutes“Investment of Local Government Surplus Funds”. Authorized investments include U.S. Governmentobligations, passbook savings accounts, tax-exempt State and municipal securities, certificates of deposit,Local Government Surplus Funds Investment Pool Trust Fund (SBA), the Florida Local GovernmentInvestment Trust (FLGIT), and any other investments authorized by Chapter 218, Florida Statutes. There wereno violations of this policy during the fiscal year.

NOTE 5 - ACCOUNTS RECEIVABLE

At September 30, 2017, receivables were as follows:

The Public Deposit Security Trust Fund has a procedure to allocate and recover losses in the event of a defaultor insolvency. When public deposits are made in accordance with Chapter 280, no public depositor shall beliable for any loss thereof. Chapter 280 defines deposits as time deposit accounts, demand deposit accounts,and certificates of deposit. The total amount of bank deposits, $11,802,130, is insured by Federal depositoryinsurance and pursuant to Chapter 280, Florida Statutes.

All Board depositories are banks or savings institutions designated by the State Treasurer as qualified publicdepositories. Chapter 280, Florida Statues “Florida Security for Public Deposits Act” provides procedures forpublic depositories to insure monies in banks and savings and loans are collateralized with the Treasurer as anagent for the public entities.

Restricted cash 2,388,032$

Current portion of long-term debt 340,204$ Customer deposits 185,552

525,756$ Total

Remainder of this page is intentionally left blank

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September 30, 2017

Port LaBelle Utility

Port LaBelle Utility

NOTE 7 - RESTRICTED ASSETS AND LIABILITIES (CONTINUED)

Restricted assets reported on the proprietary fund statement of net position at September 30, 2017, were asfollows:

Assets restricted for debt service are for the payment of bond principal and interest and bond reserverequirements. Assets restricted for renewal and replacement are for the payment of unusual or extra-ordinarymaintenance or repairs. Additionally, assets are restricted for capital improvements and construction.Customer deposits are advance payments held until certain conditions are met.

Liabilities payable from restricted assets were at September 30, 2017 comprised of the following:

Beginning EndingBalance Balance

Governmental Activities 10/01/2016 Increases Decreases Adjustments 09/30/2017

Capital Assets not being depreciated:Land 6,713,121$ -$ -$ -$ 6,713,121$ Construction in progress 6,832,554 4,281,641 - (1,663,623) 9,450,572

Total capital assets not being depreciated 13,545,675 4,281,641 - (1,663,623) 16,163,693

Capital assets being depreciated:Buildings and improvements 127,662,558 104,456 - 1,663,623 129,430,637 Furniture and equipment 31,129,733 449,535 (216,189) - 31,363,079

Total capital assets being depreciated 158,792,291 553,991 (216,189) 1,663,623 160,793,716

Less accumulated depreciation for:Buildings and improvements (88,122,620) (2,219,214) - - (90,341,834) Furniture and equipment (25,822,012) (1,229,226) 204,382 - (26,846,856)

Total accumulated depreciation (113,944,632) (3,448,440) 204,382 - (117,188,690) Total capital assets being depreciated, net 44,847,659 (2,894,449) (11,807) 1,663,623 43,605,026

58,393,334$ 1,387,192$ (11,807)$ -$ 59,768,719$

Business-Type Activities:

Capital assets not being depreciated:Land 537,006$ -$ -$ -$ 537,006$

Total capital assets not being depreciated 537,006 - - - 537,006

Capital assets being depreciated:Buildings and improvements 29,005,660 - - 64,479 29,070,139 Furniture and equipment 247,017 - - (64,479) 182,538

Total capital assets being depreciated 29,252,677 - - - 29,252,677

Less accumulated depreciation for:Buildings and improvements (8,732,294) (962,035) - - (9,694,329) Furniture and equipment (212,766) (7,063) - - (219,829)

Total accumulated depreciation (8,945,060) (969,098) - - (9,914,158) Total capital assets being depreciated, net 20,307,617 (969,098) - - 19,338,519

20,844,623$ (969,098)$ -$ -$ 19,875,525$


September 30, 2017

NOTE 8 - CAPITAL ASSETS

Total governmental activities capital assets, net

Total business-type activities capital assets, net

During the year ended September 30, 2017, the following changes in capital assets occurred:

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Governmental activities:

General government 777,826$ Court related 27,202 Public safety 904,077 Physical environment 185,292 Transportation 357,206 Economic environment 79,224 Culture and recreation 67,040 Human services 1,050,573

Total depreciation cost for governmental activities 3,448,440$

Business-type activities:

Water and wastewater depreciation cost 969,098$

NOTE 9 - LONG-TERM DEBT

Revenue Bonds

3,228,500$

3,251,000

Total business-type - revenue bonds 6,479,500

Notes Payable

1,023,439

969,749

Total business-type - notes payable 1,993,188

Total Business-Type - Revenue Bonds and Notes Payable 8,472,688$

Depreciation costs were charged to functions/ programs as follows:


September 30, 2017

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NOTE 8 - CAPITAL ASSETS (CONTINUED)

Business Type - Revenue Bonds and Notes Payable

The Board issued revenue bonds for business-type activities. The descriptions and balances of theoutstanding revenue bonds as of September 30, 2017, were as follows:

$1,430,705 bank loan, bearing interest at a rate of 7%, 15 annual payments of $157,084. Finalpayment due September 2026.

$1,355,656 bank loan, bearing interest at a rate of 7%, 15 annual payments of $148,844. Finalpayment due September 2026.

$3,689,000 Hendry County, Water and Sewer System Revenue Bonds, Series 2007, bearing interestof 4.125% payable on September 1, 2007 and annually thereafter on September 1, with principalmaturing from September 1, 2010 to September 1, 2046.

$4,700,000 Hendry County, Water and Sewer System Revenue Bonds, Series 1996, bearing interestof 5% payable on September 1, 1996 and annually thereafter on September 1, with principalmaturing from September 1, 1997 to September 1, 2035.

Notes Payable

Total governmental - notes payable

Government Funds - Notes Payable, Capital Leases, & Other Payables


September 30, 2017

NOTE 9 - LONG-TERM DEBT (CONTINUED)

$140,000 bank loan for the purchase of a new EMS rescue truck, bearing interest at a rate of2.85%, with equal annual payments of $37,529. Final payment due July 2019. 66,306

1,158,770

58,190

$260,000 bank loan for the purchase of a new 800MHz communication system, bearinginterest at a rate of 2.99%, with equal annual payments of $37,143. Final payment dueDecember 28, 2019. 74,285

$79,926 bank loan for the purchase of a new EMS rescue truck, bearing interest at a rate of2.875%, with equal annual payments of $17,427. Final payment due July 2019.

$650,000 loan from a financial institution for the purchase of airplane hangars bearinginterest at a rate of 2.625%, annual payments of differing values. Final payment due January2019. 108,842$

33,348

$140,000 bank loan for the purchase of a new EMS rescue truck, bearing interest at a rate of2.85%, with equal annual payments of $37,529. Final payment due March 2019.

71,967

$85,000 bank loan for the implementation of new lights for the West Recreation District,bearing interest at a rate of 2.75%, with equal annual payments of $15,561. Final paymentdue December 2020.

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$302,022 loan from a financial institution for the purchase of John Deere equipment, bearinginterest of 3.25%, with equal annual payments of $103,958. Final payment is due August2018. 101,690

$391,943 bank loan for the purchase of ambulatory machinery and equipment, bearinginterest of 2.69%, with equal annual payments of $89,400. Final payment is due April 2021.

$87,482 bank loan for the purchase of a new EMS truck, bearing interest at a rate of 2.45%,with equal annual payments of $18,803. Final payment is due May 2021.

313,604

70,827

$146,313 bank loan for the purchase of a new ambulance, bearing interest at a rate of 3.15%,with equal annual payments of $39,503. Final payment is due July 2021. 146,313

$113,398 bank loan for the purchase of five new vehicles, bearing interest at a rate of 2.50%,with equal annual payments of $24,409. Final payment is due July 2022. 113,398

Capital Leases

Total governmental - capital leases

Total Governmental Funds - Debt Service Requirements

On January 23, 2015 the Sheriff entered into a leasing agreement for van for the jail for$36,649 bearing interest at a rate of 6.50%, requiring quarterly payments of $2,620. Finalpayment due January 23, 2019.

On May 20, 2016, the Sheriff entered into a leasing agreement for nine police interceptorsedans for $405,912 bearing interest at a rate of 13.30%, requiring quarterly payments of$27,061. Final payment due June 1, 2020. 262,747

1,588,951$

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On January 7, 2015 the Sheriff entered into a leasing agreement for eight police interceptorsedans for $324,959 bearing interest at a rate of 6.50%, requiring quarterly payments of$23,228. Final payment due January 7, 2019. 131,773

430,181

14,861

On January 7, 2015 the Sheriff entered into a leasing agreement for one 2015 FordInterceptor SUV for $51,293 bearing interest at a rate of 6.50%, requiring quarterlypayments of $3,666. Final payment due January 7, 2019. 20,800


September 30, 2017


Government Funds - Notes Payable, Capital Leases, & Other Payables (continued)

FiscalYear(s) Principal Interest Principal Interest Principal Interest

2018 631,353$ 51,791$ 340,204$ 438,433$ 971,557$ 490,224$ 2019 519,064 31,823 360,552 418,668 879,616 450,491 2020 246,331 19,120 381,016 397,703 627,347 416,823 2021 155,856 3,347 400,628 375,459 556,484 378,806 2022 36,347 595 424,290 351,860 460,637 352,455 2023 - - 449,363 326,815 449,363 326,815 2024 - - 475,922 300,231 475,922 300,231 2025 - - 504,149 272,017 504,149 272,017

2026-2030 - - 1,650,265 1,006,696 1,650,265 1,006,696 2031-2035 - - 1,720,902 630,108 1,720,902 630,108 2036-2047 - - 1,765,397 524,447 1,765,397 524,447

Total 1,588,951$ 106,676$ 8,472,688$ 5,042,437$ 10,061,639$ 5,149,113$

Bond Resolutions

Business-typeLong-Term Debt Long-Term Debt

Government Funds


September 30, 2017

The annual debt service requirements at September 30, 2017, were as follows:


Total

The resolution for the bonds established certain accounts and determined the order in which certain revenuesare to be deposited into those accounts. In addition, there are various other covenants established by theofficial statements and Board resolutions, including such items as debt service coverage, reportingrequirements, and maintenance of facilities. Management believes that it has complied, in all materialrespects, with these covenants.

The 1996 Series Bonds pledge the net revenues of the utility system for the payment of the principal,redemption price and the interest on the bonds. The Board covenants to fix, establish, and maintain rates andto collect such revenues from the product and services to provide in each fiscal year net revenues which atleast equal the annual debt service on all of the outstanding bonds.

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Bond Resolutions (continued)

Beginning EndingBalance Balance Due Within

10/1/2016 Additions Reductions 9/30/2017 One YearGovernmental Activities

Notes Payable 1,259,786$ 259,711$ (360,727)$ 1,158,770$ 425,995$ Capital Leases 742,289 - (312,108) 430,181 205,358 Landfill Closure 42,842 - (42,842) - - Other Post Employment

Benefits 1,946,447 326,886 - 2,273,333 - FRS Pension Liability 18,232,813 3,708,451 - 21,941,264 - HIS Liability 5,482,895 - (245,220) 5,237,675 - Compensated Absences 1,913,845 70,189 (29,232) 1,954,802 -

Total governmental activitieslong-term liabilities 29,620,917$ 4,365,237$ (990,129)$ 32,996,025$ 631,353$

Business-Type ActivitiesPort LaBelle Utility Systems

Notes Payable 2,148,706$ -$ (155,518)$ 1,993,188$ 166,404$ Revenue Bonds 6,645,800 - (166,300) 6,479,500 173,800 FRS Pension liability 263,568 89,368 - 352,936 - HIS Liability 104,814 - (3,691) 101,123 - Compensated Absences 32,424 - (5,277) 27,147 -

Total business-type activitieslong-term liabilities 9,195,312$ 89,368$ (330,786)$ 8,953,894$ 340,204$

NOTE 10 - LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS

NOTES TO THE FINANCIAL STATEMENTS

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September 30, 2017

Changes in bonded and other indebtedness of the Board for the year ended September 30, 2017, was asfollows:



State and Federal laws and regulations require that Hendry County place a final cover on its landfill that wasclosed and perform certain maintenance and monitoring functions at the landfill site for twenty years afterclosure. The liability is being recognized based on the future post closure costs that will be incurred after thedate the landfill no longer accepts waste.

NOTE 10 - LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS (CONTINUED)

Florida Retirement System:

NOTE 11 - CONTINGENCIES

September 30, 2017


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The landfill stopped accepting solid waste on December 1, 1992, and finished placing the required cover onthe landfill during the fiscal year ended September 30, 1994.

Grants and Assistance

Litigation

Activities of certain funds of the Board are financed in whole or in part by various forms of grants andassistance, principally from the federal government. There can be no absolute assurance that such assistancewill continue in the future at the present levels. Amounts received from grantor agencies are subject to auditor adjustment by the grantor agencies. Also, any amounts disallowed could constitute liabilities of theapplicable funds.

The Board, in accordance with the normal conduct of its affairs, is involved in various judgments, claims, andlitigation. It is expected that the final settlement of these matters will not materially affect the financialstatements of the Board.

NOTE 12 - RETIREMENT PLAN

General Information - All of the employees of the primary government participate in the Florida RetirementSystem (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing,multiple employer defined benefit plans administered by the Florida Department of Management Services,Division of Retirement, including the FRS Pension Plan (“Pension Plan”) and the Retiree Health InsuranceSubsidy (“HIS Plan”).

Since the landfill is closed, the estimated liability is based on the current estimated costs for services tomonitor and maintain the closed landfill for the required period. However, the actual cost of post-closure caremay be higher due to inflation, changes in technology, or changes in landfill laws and regulations.

The Board is required by state and federal regulations to make annual contributions to finance the postclosure care. The Board has set aside funds in the amount of $42,842 for post closure care. The funding forcosts for providing the final cover was provided by Lee County under the interlocal agreement for the jointsolid waste disposal program.

Pension Plan

The State of Florida annually issues a publicly available financial report that includes financial statements andrequired supplementary information for the FRS. The latest available report may be obtained by writing to theState of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee,Florida 32315-9000, or from the Web site: www.dms.myflorida.com/workforce_operations/retirement/publications.

Benefits Provided - Benefits under the Pension Plan are computed on the basis of age, average finalcompensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular classmembers who retire at or after age 62 with at least six years of credited service or 30 years of serviceregardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their finalaverage compensation based on the five highest years of salary, for each year of credited service. Vestedmembers with less than 30 years of service may retire before age 62 and receive reduced retirement benefits.Special Risk Administrative Support class members who retire at or after age 55 with at least six years ofcredited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly forlife, equal to 1.6% of their final average compensation based on the five highest years of salary, for each yearof credited service.

Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (“InvestmentPlan”) alternative to the FRS Pension Plan, which is administered by the State Board of Administration(“SBA”). As a general rule, membership in the FRS is compulsory for all employees working in a regularlyestablished position for a state agency, county government, district school board, state university, communitycollege, or a participating city or special district within the State of Florida. The FRS provides retirement anddisability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code.Amendments to the law can be made only by an act of the Florida State Legislature.

Plan Description – The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with aDeferred Retirement Option Program (“DROP”) for eligible employees. The general classes of membershipare as follows:

Regular Class- Members of the FRS who do not qualify for membership in other classes.

Elected County Officers Class- Members who hold specified elective offices in local government.

Senior Management Service Class (SMSC)- Members in senior management positions.

Special Risk Class- Members who are employed in public safety and meet the criteria to qualify for thisclass.

NOTE 12 - RETIREMENT PLAN (CONTINUED)


September 30, 2017

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Pension Plan (continued)


September 30, 2017


For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years ofcredited service for all these members and increasing normal retirement to age 65 or 33 years of serviceregardless of age for Regular, Senior Management Service, and Elected Officers’ class members, and to age60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support classmembers. Also, the final average compensation for all these members will be based on the eight highest yearsof salary.

Benefits provided (continued)- Special Risk class members (sworn law enforcement officers, firefighters,and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0%of their final average compensation based on the five highest years of salary for each year of credited service.Senior Management Service class members who retire at or after age 62 with at least six years of creditedservice or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life,equal to 2.0% of their final average compensation based on the five highest years of salary for each year ofcredited service. Elected Officers’ class members who retire at or after age 62 with at least six years ofcredited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly forlife, equal to 3.0% (3.33% for judges and justices) of their final average compensation based on the fivehighest years of salary for each year of credited service.

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan beforeJuly 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment isthree percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or afterJuly 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-livingadjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service creditby the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or afterJuly 1, 2011, will not have a cost-of-living adjustment after retirement.

In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthlyretirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrueinterest. There are no required contributions by DROP participants.

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The County’s contributions to the Pension Plan totaled $1,787,412 for the fiscal year ended September 30,2017.

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September 30, 2017


Contributions – Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, arerequired to contribute three percent of their salary to the FRS. In addition to member contributions,governmental employers are required to make contributions to the FRS based on state-wide contribution ratesestablished by the Florida Legislature. These rates are updated as of July 1 of each year. The employercontribution rates by job class for the periods from October 1, 2016 through June 30, 2017 and July 1, 2017through September 30, 2017, respectively, were as follows: regular 7.52% and 7.92%; county elected officers42.47% and 45.50%; senior management 21.77% and 22.71%; special risk 22.57% and 23.27%; special riskadministration 28.06% and 34.63%; rehired regular class 4.49% and 5.16%; and DROP participants 12.99%and 13.26%.. These employer contribution rates include 1.66% HIS Plan subsidy and .06% administrative fee.


Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions – At September 30, 2017, the County reported a liability of $22,294,200 forits proportionate share of the Pension Plan’s net pension liability. The net pension liability was measured as ofJune 30, 2017, and the total pension liability used to calculate the net pension liability was determined by anactuarial valuation as of July 1, 2017. The County’s proportionate share of the net pension liability was basedon the County’s 2016-17 fiscal year contributions relative to the 2016-17 fiscal year contributions of allparticipating members. At June 30, 2017, the County's proportionate share was 0.075%, which was a decreaseof 0.002% from its proportionate share measured as of June 30, 2016.


Differences between expected and actualexperience 2,046,071$ (123,498)$

Change of assumptions 7,492,425 -

Net difference between projected and actualearnings on Pension Plan investments - (552,507)

Changes in proportion and differences betweenCounty Pension Plan contributions and proportionate share of contributions 1,288,642 (548,889)

County Pension Plan contributions subsequentto the measurement date 537,009 -

11,364,147$ (1,224,894)$

Amount

1,253,714 3,171,576 2,359,736

648,585 1,591,748

576,885 2022

20202021

Thereafter

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Total

The deferred outflows of resources related to the Pension Plan, totaling $537,009 resulting from Countycontributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the netpension liability in the fiscal year ended September 30, 2018. Other amounts reported as deferred outflows ofresources and deferred inflows of resources related to the Pension Plan will be recognized in pension expenseas follows:

Fiscal Year Ending September 30:

20182019

For the fiscal year ended September 30, 2017, the County recognized pension expense of $3,628,513,excluding HIS. In addition the County reported deferred outflows of resources and deferred inflows ofresources related to pensions from the following sources:

Description


September 30, 2017


Deferred Outflows of Resources

Deferred Inflows of Resources


Inflation 2.60%Salary increases 3.25%, average, including inflationInvestment rate of return 7.10%, net of pension plan investment expense,

including inflation

Asset Class

Cash 1.0% 3.0% 3.0% 1.8%Fixed income 18.0% 4.5% 4.4% 4.2%Global equity 53.0% 7.8% 6.6% 17.0%Real estate (property) 10.0% 6.6% 5.9% 12.8%Private equity 6.0% 11.5% 7.8% 30.0%Strategic investments 12.0% 6.1% 5.6% 9.7%

Total 100.0%

Assumed Inflation - Mean 2.6% 1.9%

(1) As outlined in the Pension Plan's investment policy

Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables, updated to betteranticipate expected future experience for those members while in FRS covered employment.

Target Allocation (1)

Annual Arithmetic Return

Compound Annual (Geometric)

ReturnStandard Deviation

Actuarial Assumptions – The total pension liability in the July 1, 2016 actuarial valuation was determinedusing the following actuarial assumption, applied to all periods included in the measurement:

The actuarial assumptions used in the July 1, 2016, valuation were based on the results of an actuarialexperience study for the period July 1, 2008 through June 30, 2013.


September 30, 2017


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The long-term expected rate of return on Pension Plan investments was not based on historical returns, butinstead is based on a forward-looking capital market economic model. The allocation policy’s description ofeach asset class was used to map the target allocation to the asset classes shown below. Each asset classassumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflationassumption. The target allocation and best estimates of arithmetic and geometric real rates of return for eachmajor asset class are summarized in the following table:


County's proportionate share of the net pensionliability/(asset) 40,351,155$ 22,294,200$ 7,302,790$

HIS Plan


1% Increase (8.10%)

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Benefits Provided – For the fiscal year ended September 30, 2017, eligible retirees and beneficiaries receiveda monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with aminimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receivethese benefits, a retiree under a State-administered retirement system must provide proof of health insurancecoverage, which may include Medicare.

Sensitivity of the County’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate -The following represents the County’s proportionate share of the net pension liability calculated using thediscount rate of 7.10%, as well as what the County’s proportionate share of the net pension liability would beif it were calculated using a discount rate that is one percentage point lower (6.10%) or one percentage pointhigher (8.10%) than the current rate:

Pension Plan Fiduciary Net Position - Detailed information regarding the Pension Plan’s fiduciary netposition is available in the separately issued FRS Pension Plan and Other State Administered SystemsComprehensive Annual Financial Report.

Payables to the Pension Plan - At September 30, 2017, the County reported $148,950 payable foroutstanding contributions to the Pension Plan.

Plan Description – The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan establishedunder Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. Thebenefit is a monthly payment to assist retirees of State-administered retirement systems in paying their healthinsurance costs and is administered by the Florida Department of Management Services, Division ofRetirement.


September 30, 2017

Discount Rate - The discount rate used to measure the total pension liability was 7.10%. The Pension Plan’sfiduciary net position was projected to be available to make all projected future benefit payments of currentactive and inactive employees. Therefore, the discount rate for calculation of the total pension liability is equalto the long-term expected rate of return.

1%, Decrease (6.10%)

Discount Rate (7.10%)

HIS Plan (continued)


September 30, 2017


Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions – At September 30, 2017, the County reported a liability of $5,338,798 for itsproportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June30, 2017, and the total pension liability used to calculate the net pension liability was determined by anactuarial valuation as of July 1, 2016. The County’s proportionate share of the net pension liability was basedon the County’s 2016-17 fiscal year contributions relative to the 2016-17 fiscal year contributions of allparticipating members. At June 30, 2017, the County's proportionate share was 0.050%, which was an increaseof 0.002% from its proportionate share measured as of June 30, 2016.

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Contributions – The HIS Plan is funded by required contributions from FRS participating employers as set bythe Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRSmembers. For the fiscal year ended September 30, 2017, the HIS contribution was 1.66%. The Countycontributed 100% of its statutorily required contributions for the current and preceding three years. HIS Plancontributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits arenot guaranteed and are subject to annual legislative appropriation.

The County’s contributions to the HIS Plan totaled $269,317 for the fiscal year ended September 30, 2017.

In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants,benefits may be reduced or cancelled.



Differences between expected and actualexperience -$ (11,116)$

Change of assumptions 750,453 (461,652)

Net difference between projected and actualearnings on HIS Plan investments 2,960 -

Changes in proportion and differences betweenCounty HIS Plan contributions and proportionate share of contributions 277,161 (98,647)

County HIS Plan contributions subsequentto the measurement date 71,019 -

1,101,593$ (571,415)$

Amount

109,995$ 109,435 109,166 104,943 62,480

(36,860)

Deferred Outflows of Resources

Deferred Inflows of Resources


September 30, 2017


For the fiscal year ended September 30, 2017, the County recognized HIS expense of $509,533. In addition theCounty reported deferred outflows of resources and deferred inflows of resources related to pensions from thefollowing sources:

Description

20192020

Thereafter

Total

Fiscal Year Ending September 30:

20172018

The deferred outflows of resources related to the HIS Plan, totaling $71,019 resulting from Countycontributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the netpension liability in the fiscal year ended September 30, 2018. Other amounts reported as deferred outflows ofresources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense asfollows:

2021

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Inflation 2.60%Salary increases 3.25%, average, including inflationMunicipal bond rate 3.58%

County's proportionate shareof the net pension liability 6,092,276$ 5,338,798$ 4,711,193$


September 30, 2017


Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables, updated to betteranticipate expected future experience for those members while in FRS covered employment.

1%, Decrease (2.58%)

Discount Rate (3.58%)

1% Increase (4.58%)

The actuarial assumptions used in the July 1, 2015 valuation were based on the results of an actuarialexperience study for the period July 1, 2008 through June 30, 2013.

Discount Rate - The discount rate used to measure the total pension liability was 3.58%. In general, thediscount rate for calculating the total pension liability is equal to the single rate equivalent to discounting atthe long-term expected rate of return for benefit payments prior to the projected depletion date. Because theHIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate,and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor.The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipalbond index.

Sensitivity of the County’s Proportionate Share of the Net Pension Liability to Changes in the DiscountRate - The following represents the County’s proportionate share of the net pension liability calculated usingthe discount rate of 3.58%, as well as what the County’s proportionate share of the net pension liability wouldbe if it were calculated using a discount rate that is one percentage point lower (2.58%) or one percentagepoint higher (4.58%) than the current rate:

I-56

Actuarial Assumptions – The total pension liability in the July 1, 2015 actuarial valuation was determinedusing the following actuarial assumption, applied to all periods included in the measurement:


Investment Plan


HIS Plan Fiduciary Net Position - Detailed information regarding the HIS Plan’s fiduciary net position isavailable in the separately issued FRS Pension Plan and Other State Administered Systems ComprehensiveAnnual Financial Report.

Payables to the HIS Plan - At September 30, 2017, the County reported a payable of $22,443 for outstandingcontributions to the HIS Plan.

The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The InvestmentPlan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive AnnualFinancial Report.


September 30, 2017

As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in theInvestment Plan in lieu of the FRS defined benefit plan. Board employees participating in DROP are noteligible to participate in the Investment Plan. Employer and employee contributions, including amountscontributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part onthe performance of investment funds. Benefit terms, including contribution requirements, for the InvestmentPlan are established and may be amended by the Florida Legislature. The Investment Plan is funded with thesame employer and employee contribution rates that are based on salary and membership class (Regular Class,Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts,and the individual members allocate contributions and account balances among various approved investmentchoices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, arefunded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members.Allocations to the investment member's accounts during the 2016-17 fiscal year, as established by Section121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class--6.30%, Special Risk Administrative Support class--7.95%, Special Risk class--14.00%, Senior ManagementService class--7.67% and County Elected Officers class--11.34%.

For all membership classes, employees are immediately vested in their own contributions and are vested afterone year of service for employer contributions and investment earnings. If an accumulated benefit obligationfor service credit originally earned under the Pension Plan is transferred to the Investment Plan, the membermust have the years of service required for Pension Plan vesting (including the service credit represented bythe transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employercontributions are placed in a suspense account for up to five years. If the employee returns to FRS-coveredemployment within the five-year period, the employee will regain control over their account. If the employeedoes not return within the five-year period, the employee will forfeit the accumulated account balance. For thefiscal year ended September 30, 2017, the information for the amount of forfeitures was unavailable from theSBA; however, management believes that these amounts, if any, would be immaterial to the County.

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Investment Plan (continued)

The County’s Investment Plan contributions totaled $454,471 for the fiscal year ended September 30, 2017.

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NOTE 13 - RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets,errors and omissions, injuries to employees and natural disasters.

The County is a member of Public Risk Management (PRM), a local government liability risk pool.

PRM administers insurance activities relating to property, general, automobile, public official's liability,workers’ compensation, health and auto physical damage. The pool assesses each member its pro rata share ofthe estimated amount required to meet current year losses, operating expenses and reinsurance costs(premiums). To reduce its exposure to large losses on all types of insured events PRM uses reinsurancepolicies purchased from third parties. The Fund is fully funded annually.

Major uninsurable risks include damages to infrastructure assets and damages or governmental fines due toseepage, pollution or contamination of any kind. Since the amounts of loss cannot be reasonably estimated andthe likelihood is undeterminable, no provision for such occurrences is included in these financial statements.

Plan Description

NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS

In accordance with Section 112.0801, Florida Statutes, because the Board provides medical plans toemployees of the County and their eligible dependents, the Board is also required to provide retirees theopportunity to participate in the group employee health plan. Retirees participating in the group insuranceplans offered by the County are required to contribute 100% of the active participants cost of participation.


September 30, 2017


After termination and applying to receive benefits, the member may rollover vested funds to another qualifiedplan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the fundsinvested for future distribution, or any combination of these options. Disability coverage is provided; themember may either transfer the account balance to the Pension Plan when approved for disability retirement toreceive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and relyupon that account balance for retirement income.

Active Employees 33817

Covered Spouses 1


September 30, 2017

NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Annual OPEB Costs and Net OPEB Obligation

Eligibility for Insurance Coverage

Employees of the County and all constitutional officers who were participants in the existing medical plan atthe time of retirement are entitled to participate in the Plan.

Depending on the class of employee the following eligibility rules apply:

Regular Class and Elected Officials - Age 62 and 6 years of service or 30 years of service, regardless of age,is normal retirement. Employees may retire early at age 43 and 6 years of service.

Special Risk - Age 55 and 6 years of service or 25 years of service, regardless of age is normal retirement.Employees may retire early at age 36 and 6 years of service.

Hendry County had an actuarial valuation performed for the plan as of October 1, 2016 to determine thefunded status of the plan as of that date, as well as the employer's annual required contribution (ARC) for thefiscal year ended September 30, 2017. The County’s annual OPEB cost for the fiscal year was set at $433,553as the transition liability was set to zero as of September 30, 2017.

Funding Policy

Funding for this plan is on a pay-as-you-go basis. The Program is currently unfunded. There is no separatetrust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for thispurpose.

The County’s annual OPEB cost (expense) is calculated based on the annual required contribution of theemployer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45.The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costseach year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.

Membership

As of September 30, 2017, membership consisted of:

Retired Participants

I-59

Valuation Date 10/1/2014 10/1/2016Applicable for Fiscal Year Ending 9/30/2016 9/30/2017

Annual Required Contribution (ARC) 370,581$ 474,631$ Interest on Net OPEB Obligation 67,886 77,858 Adjustment to Annual Required Contribution (102,516) (118,936) Annual OPEB Cost 335,951 433,553 Contributions Made (86,649) (106,667) Increase in Net OPEB Obligation 249,302 326,886 Beginning, Net OPEB Obligation 1,697,145 1,946,447 Ending, Net OPEB Obligation 1,946,447$ 2,273,333$

Funded Status 10/1/2014 10/1/2016

Actuarial Accrued Liability (AAL) 2,325,427$ 2,940,718$ Actuarial Value of Plan Assets - - Unfunded Actuarial Accrued Liability (AAL) 2,325,427$ 2,940,718$

Covered Payroll 11,592,700$ 11,830,000$ Ration of UAAL to Covered Payroll 20.1% 24.9%

September 30, 2017 433,553$ 24.6% 2,273,333$ September 30, 2016 335,951$ 25.8% 1,946,447$ September 30, 2015 331,911$ 26.0% 1,697,145$

Schedule of Funding Progress:

Actuarial Valuation Date 10/01/14 10/1/2016Actuarial Value of Assets (a) -$ -$ Accrued Liability (AAL)- Entry Age (b) 2,325,427 2,940,718 Unfunded AAL (UAAL) (b-a) 2,325,427 2,940,718 Funded Ratio (a/b) 0.0% 0.0%Covered Payroll ( c) 11,592,700$ 11,830,000$ UAAL as a % of Covered Payroll ((b-a)/c) 20.1% 24.9%

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The County's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the netOPEB obligation are as follows:

Annual OPEB Cost

% of Annual OPEB Cost Contributed

Net OPEB ObligationFiscal Year Ended

The following table shows the components of the County's annual OPEB cost for the year and changes in theCounty's net OPEB obligation.


September 30, 2017


The net OPEB obligation is reflected in the government-wide financial statements.

For the Actuarial Valuation, the Entry Age Normal (level dollar) actuarial cost method was used.

Select Actuarial Assumptions are listed in the table below:

Valuation Interest Rate 4.0%

Health Care Inflation

Inflation Assumption 3.0%

Amortization of UAAL Level Dollar (closed Amortization over 30 Years)

Employee Contribution Information


September 30, 2017


Calculations are based upon the types of benefits provided under the terms of the substantive plan at the timeof the valuation and on the pattern of sharing of costs between the employer and plan members to that point.Calculations reflect a long-term prospective, so methods and assumptions used include techniques that aredesigned to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets.

The actuarial valuation involves estimates of the value of reported amounts and assumptions about theprobability of events far into the future. Examples include assumptions about future employment, mortality,and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annualrequired contributions of the employer are subject to constant revision as actual experience is compared withpast expectations and new estimates are made about the future. The schedule of funding progress, presented asrequired supplementary information following the notes to the financial statements, presents multi-year trendinformation that shows whether the actuarial value of plan assets is increasing or decreasing over time relativeto the actuarial liabilities for benefits.

Initial rate of 8.75% in fiscal year 2017, then 8.50% in fiscal 2018, gradingdown to the ultimate trend rate of 4.00% in fiscal 2073.

Retirees participating in the group insurance plans offered by the County are required to contribute 100% ofthe active premiums. In future years, contributions are assumed to increase at the same rate as premiums.

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Note that the projected premiums for the dental and life insurance benefits are assumed to cover the entirecost of the program.

NOTE 15 - COMMITMENTS

Fund Balance Commitments

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The County adopted a resolution to commit $3,300,000 of the General Funds' fund balance for a disasteremergency reserve to enable the County to properly respond to emergencies affecting the County caused bynatural and other disasters.


Board of County Clerk of PropertyCommissioners Circuit Court Appraiser Sheriff

ASSETSCash and cash equivalents 759,760$ 250,423$ 169,299$ 1,093,538$ Investments 3,306,751 - - - Prepaid expenses - - - - Receivables, net 2,084,951 3,220 - 85,916 Due from other governments - 97,050 - - Due from other funds 2,471,887 31,718 - -

Total assets 8,623,349$ 382,411$ 169,299$ 1,179,454$

LIABILITIES AND FUND BALANCESLiabilities

Accounts payable 1,154,250$ 26,268$ -$ 467,316$ Accrued liabilities 129,617 25,821 9,826 712,181 Due to other governments - 330,322 159,473 329,331 Other liabilities 220,246 - - - Due to other funds 2,894,669 - - -

Total liabilities 4,398,782 382,411 169,299 1,508,828

Fund balancesCommitted 3,300,000 - - - Assigned - - - (329,374) Unassigned 924,567 - - -

Total fund balances 4,224,567 - - (329,374)

Total liabilities and fund balances 8,623,349$ 382,411$ 169,299$ 1,179,454$

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COMBINING SCHEDULE - BALANCE SHEETGENERAL FUND



Supervisor Tax of Elections Collector Total

44,164$ 199,159$ 2,516,343$ - - 3,306,751 - - - - - 2,174,087 - 43,684 140,734 - 46,231 2,549,836

44,164$ 289,074$ 10,687,751$

-$ 7,245$ 1,655,079$ 44,164 33,774 955,383

- 248,055 1,067,181 - - 220,246 - - 2,894,669

44,164 289,074 6,792,558

- - 3,300,000 - - (329,374) - - 924,567

- - 3,895,193

44,164$ 289,074$ 10,687,751$

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Board of County Clerk of PropertyCommissioners Circuit Court Appraiser Sheriff

REVENUESTaxes 15,475,290$ -$ -$ -$ Licenses and permits 198,408 - - - Intergovernmental 5,845,745 96,032 - 339,474 Charges for services 1,851,580 978,020 1,335,827 311,052 Fines and Forfeitures - - - - Miscellaneous 438,143 6,909 760 67,514

Total revenues 23,809,166 1,080,961 1,336,587 718,040

EXPENDITURESCurrent

General government 6,225,959 997,207 1,142,569 - Court related - 959,779 - 214,706 Public safety 5,553,515 - - 12,631,251 Physical environment 451,708 - - - Economic environment 298,379 - - - Culture and recreation 125,467 - - - Human services 1,121,979 - - -

Capital outlayGeneral government 57,413 - 34,545 - Public safety - - - 121,000 Physical environment - - - - Transportation - - - -

Debt servicePrincipal retirement 247,035 - - 312,108 Interest and fiscal charges 22,655 - - 44,141

Total expenditures 14,104,110 1,956,986 1,177,114 13,323,206

Excess (deficiencies) of revenues over (under) expenditures 9,705,056 (876,025) 159,473 (12,605,166)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 259,711 - - - Proceeds from sale of capital assets - - - 37,741 Transfers in 3,089,402 1,132,783 - 12,238,051 Transfers out (13,253,576) (256,758) (159,473) -

Total other financing sources (uses) (9,904,463) 876,025 (159,473) 12,275,792

Net change in fund balances (199,407) - - (329,374)

Fund balances - October 1, 2016 4,423,974 - - - Fund balances - September 30, 2017 4,224,567$ -$ -$ (329,374)$


COMBINING SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES

GENERAL FUNDAs of September 30, 2017


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Supervisor Tax of Elections Collector Total

-$ -$ 15,475,290$ - - 198,408 - - 6,281,251 - 1,723,731 6,200,210 - - -

1,622 10,661 525,609 1,622 1,734,392 28,680,768

491,204 1,523,784 10,380,723 - - 1,174,485 - - 18,184,766 - - 451,708 - - 298,379 - - 125,467 - - 1,121,979

- - 91,958 - - 121,000 - - - - - -

- - 559,143 - - 66,796

491,204 1,523,784 32,576,404

(489,582) 210,608 (3,895,636)

- - 259,711 - - 37,741

531,191 - 16,991,427 (41,609) (210,608) (13,922,024) 489,582 (210,608) 3,366,855

- - (528,781)

- - 4,423,974 -$ -$ 3,895,193$

I-66

Budget Actual Budget ActualREVENUES

Taxes 16,162,867$ 15,475,290$ -$ -$ Licenses and permits 198,908 198,408 - - Intergovernmental 6,170,675 5,845,745 - 96,032 Charges for services 1,933,084 1,851,580 959,775 978,020 Fines and forfeitures - - - - Miscellaneous 629,208 438,143 - 6,909

Total revenues 25,094,742 23,809,166 959,775 1,080,961

EXPENDITURESCurrent

General government 5,627,103 6,225,959 1,132,779 997,207 Court related - - 959,779 959,779 Public safety 4,346,248 5,553,515 - - Physical environment 452,184 451,708 - - Economic environment 298,377 298,379 - - Culture and recreation 125,987 125,467 - - Human services 1,101,702 1,121,979 - -

Capital outlayGeneral government 57,548 57,413 - - Public safety - - - - Physical environment - - - - Transportation - - - -

Debt Service - Principal retirement 247,035 247,035 - - Interest and fiscal charges 22,655 22,655 - -

Contingency - - - - Total expenditures 12,278,839 14,104,110 2,092,558 1,956,986

Excess (deficiencies) of revenues over (under) expenditures 12,815,903 9,705,056 (1,132,783) (876,025)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 259,711 259,711 - - Proceeds from sale of capital assets - - - - Transfers in 3,154,382 3,089,402 1,132,783 1,132,783 Transfers out (16,555,520) (13,253,576) - (256,758)

Total other financing sources (uses) (13,141,427) (9,904,463) 1,132,783 876,025

Net change in fund balances (325,524) (199,407) - -

Fund balances - October 1, 2016 325,524 4,423,974 - - Fund balances - September 30, 2017 -$ 4,224,567$ -$ -$

Board of CountyCommissioners

I-67



COMBINING SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND, NON-GAAP BASIS

Clerk ofCircuit Court


Budget Actual Budget Actual Budget Actual

-$ -$ -$ -$ -$ -$ - - - - - - - - 339,459 339,474 - -

1,335,826 1,335,827 311,052 311,052 - - - - - - - - - 760 67,213 67,514 - 1,622

1,335,826 1,336,587 717,724 718,040 - 1,622

1,301,236 1,142,569 - - 531,191 491,204 - - 260,958 214,706 - - - - 12,578,490 12,631,251 - - - - - - - - - - - - - - - - - - - - - - - - - -

34,590 34,545 - - - - - - 319,068 121,000 - - - - - - - - - - - - - -

- - 85,000 312,108 - - - - - 44,141 - - - - 50,000 - - -

1,335,826 1,177,114 13,293,516 13,323,206 531,191 491,204

- 159,473 (12,575,792) (12,605,166) (531,191) (489,582)

- - - - - - - - 37,741 37,741 - - - - 12,238,051 12,238,051 531,191 531,191 - (159,473) - - - (41,609) - (159,473) 12,275,792 12,275,792 531,191 489,582

- - (300,000) (329,374) - -

- - - - - - -$ -$ (300,000)$ (329,374)$ -$ -$

of ElectionsProperty

I-68

SheriffSupervisor

Appraiser

Variance -Positive

Budget Actual Budget Actual (Negative)REVENUES

Taxes -$ -$ 16,162,867$ 15,475,290$ (687,577)$ Licenses and permits - - 198,908 198,408 (500) Intergovernmental - - 6,510,134 6,281,251 (228,883) Charges for services 1,590,699 1,723,731 6,130,436 6,200,210 69,774 Fines and forfeitures - - - - - Miscellaneous - 10,661 696,421 525,609 (170,812)

Total revenues 1,590,699 1,734,392 29,698,766 28,680,768 (1,017,998)

EXPENDITURESCurrent

General government 1,590,699 1,523,784 10,183,008 10,380,723 (197,715) Court related - - 1,220,737 1,174,485 46,252 Public safety - - 16,924,738 18,184,766 (1,260,028) Physical environment - - 452,184 451,708 476 Economic environment - - 298,377 298,379 (2) Culture and recreation - - 125,987 125,467 520 Human services - - 1,101,702 1,121,979 (20,277)

Capital outlayGeneral government - - 92,138 91,958 180 Public safety - - 319,068 121,000 198,068 Physical environment - - - - - Transportation - - - - -

Debt ServicePrincipal retirement - - 332,035 559,143 (227,108) Interest and fiscal charges - - 22,655 66,796 (44,141)

Contingency - - 50,000 - 50,000 Total expenditures 1,590,699 1,523,784 31,122,629 32,576,404 (1,453,775)

Excess (deficiencies) of revenues over (under) expenditures - 210,608 (1,423,863) (3,895,636) (2,471,773)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt - - 259,711 259,711 - Proceeds from sale of capital assets - - 37,741 37,741 - Transfers in - - 17,056,407 16,991,427 (64,980) Transfers out - (210,608) (16,555,520) (13,922,024) 2,633,496

Total other financing sources (uses) - (210,608) 798,339 3,366,855 2,568,516

Net change in fund balances - - (625,524) (528,781) 96,743

Fund balances - October 1, 2016 - - 325,524 4,423,974 4,098,450 Fund balances - September 30, 2017 -$ -$ (300,000)$ 3,895,193$ 4,195,193$



COMBINING SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND, NON-GAAP BASIS


(CONTINUED)

I-69

TotalTax

Collector

Law Court LocalEnforcement Section 8 Technology Affordable Emergency

Trust Housing Fund Housing 911

ASSETSCash and cash equivalents 61,653$ 12,424$ 511$ 720,777$ 243,157$ Prepaid expenses - - - - - Receivables (net) - 1,208 2,277 11,431 45,772 Due from other funds -

Total assets 61,653$ 13,632$ 2,788$ 732,208$ 288,929$


Accounts payable -$ 1,269$ 327$ 12,969$ 7,017$ Accrued liabilities - 413 - 826 978 Unearned revenue - - - - - Other liabilities - - - 630,813 - Due to other funds 17,000

Total liabilities - 1,682 17,327 644,608 7,995

Fund balancesRestricted - - - - - Assigned 61,653 11,950 (14,539) 87,600 280,934

Total fund balances (deficits) 61,653 11,950 (14,539) 87,600 280,934

Total liabilities and fund balances 61,653$ 13,632$ 2,788$ 732,208$ 288,929$


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS


Special Revenue Funds


I-70

Port Labelle East Hendry East Hendry West Hendry East Hendry West HendryStreet County County County County County

Lighting Drainage Fire Fire Mid-County Recreational RecreationalDistrict District District District MSBU MSBU MSBU

42,638$ 209,259$ 2,216$ 24,236$ 582,486$ 159,283$ 467,962$ - - - - - - - 37 - 3,286 300 6 - 40,136

- - - 801,676 - - - 42,675$ 209,259$ 5,502$ 826,212$ 582,492$ 159,283$ 508,098$

4,758$ 6,600$ 94,188$ 81,930$ 82,044$ - - 18,554 16,793 - 1,038 6,634 - - - - - - - - - - - 155,292 -

1,206 1,142 473,831 15,732 1,580 17,434 25,695 5,964 7,742 586,573 114,455 1,580 255,808 32,329

- - - - - - - 36,711 201,517 (581,071) 711,757 580,912 (96,525) 475,769 36,711 201,517 (581,071) 711,757 580,912 (96,525) 475,769

42,675$ 209,259$ 5,502$ 826,212$ 582,492$ 159,283$ 508,098$

I-71


Airport North Four WheelerSears Felda Labelle Corners Road

MSBU MSBU MSBU MSBU MSBU

ASSETSCash and cash equivalents 963,071$ 310,751$ 274,226$ 42,323$ 245,293$ Prepaid expenses - - - - - Receivables (net) - - - 4,795 Due from other funds - - - 317,000 -

Total assets 963,071$ 310,751$ 274,226$ 359,323$ 250,088$


Accounts payable 8,059$ -$ 517$ 3,876$ -$ Accrued liabilities - - - - - Unearned revenue - - - - - Other liabilities - - - - - Due to other funds 3,447 1,132 1,669 1,138 1,166

Total liabilities 11,506 1,132 2,186 5,014 1,166

Fund balancesRestricted - - - - - Assigned 951,565 309,619 272,040 354,309 248,922

Total fund balances (deficits) 951,565 309,619 272,040 354,309 248,922

Total liabilities and fund balances 963,071$ 310,751$ 274,226$ 359,323$ 250,088$


COMBINING BALANCE SHEET (CONTINUED)NONMAJOR GOVERNMENTAL FUNDS




I-72

Clerk ofHooker's Phillips Circuit Court's Sheriff's

Point Mosquito Road Sky Valley Building Property Modernization Gun RangeLighting Control MSBU MSBU Projects Appraiser Trust Fund Fund

15,778$ 355,862$ 3,759$ 14,078$ 81,227$ 146,886$ 243,408$ 40,078$ - - - - - - 20,960 - - 6,104 - - 7,775 - - - - 22,977 - - - - - -

15,778$ 384,943$ 3,759$ 14,078$ 89,002$ 146,886$ 264,368$ 40,078$

1,013$ 84,663$ -$ 287$ 5,092$ -$ -$ -$ - - - - - - - - - - - - - - - - - 3,506 - - 2,000 - - - 19 3,924 - 20 - - - -

1,032 92,093 - 307 7,092 - - -

- - - - - - 264,368 - 14,746 292,850 3,759 13,771 81,910 146,886 - 40,078 14,746 292,850 3,759 13,771 81,910 146,886 264,368 40,078

15,778$ 384,943$ 3,759$ 14,078$ 89,002$ 146,886$ 264,368$ 40,078$


I-73

Sheriff's Supervisor ofSheriff's Equitable ElectionsTraining Sharing Sheriff's Federal Election

Fund Program Fund Commissary Activities Fund

ASSETSCash and cash equivalents 5,000$ 2,723$ 392,786$ 4,783$ Prepaid expenses - - - - Receivables (net) - - 27,224 - Due from other funds - - -

Total assets 5,000$ 2,723$ 420,010$ 4,783$


Accounts payable -$ -$ 2,186$ -$ Accrued liabilities - - - - Unearned revenue - - - 4,741 Other liabilities - - - - Due to other funds

Total liabilities - - 2,186 4,741

Fund balancesRestricted - - 417,824 42 Assigned 5,000 2,723 - -

Total fund balances (deficits) 5,000 2,723 417,824 42

Total liabilities and fund balances 5,000$ 2,723$ 420,010$ 4,783$



NONMAJOR GOVERNMENTAL FUNDS

REQUIRED SUPPLEMENTARY INFORMATIONHENDRY COUNTY, FLORIDA

COMBINING BALANCE SHEET (CONTINUED)

I-74

TotalLaBelle Airglades Seven K Murray Non-Major

Fines and Airport Airport Estates Road Building Governmental forfeitures Fund Fund MSBU MSBU Department Funds

129,140$ 227,642$ 447,435$ 451$ 21,238$ 141,162$ 6,635,702$ - - - - - - 20,960

92,733 119,595 44,085 - - - 406,764 16 - - - - - 1,141,669

221,889$ 347,237$ 491,520$ 451$ 21,238$ 141,162$ 8,205,095$

.

215,519$ 37,737$ 17,890$ -$ -$ 2,498$ 670,439$ 3,176 975 975 - - 6,065 56,427

- - - - - - 4,741 1,500 34,983 39,016 - - - 867,110

41,000 12,253 118,601 1,000 10 - 738,999 261,195 85,948 176,482 1,000 10 8,563 2,337,716

- - - - - - 682,234 (39,306) 261,289 315,038 (549) 21,228 132,599 5,185,145 (39,306) 261,289 315,038 (549) 21,228 132,599 5,867,379

221,889$ 347,237$ 491,520$ 451$ 21,238$ 141,162$ 8,205,095$

I-75


Law Court LocalEnforcement Section 8 Technology Affordable Emergency

Trust Housing Fund Housing 911REVENUES

Taxes -$ -$ -$ -$ -$ Licenses and permits - - - - - Intergovernmental - 185,697 213,477 77,833

Charges for services - 39,949 39,668 - 218,000 Fines and forfeitures 3,079 - - - - Miscellaneous - - 113 - 1,026

Total revenues 3,079 225,646 39,781 213,477 296,859


General government - - 56,468 - - Court related - - - - - Public safety 11,722 - - - 199,378 Physical environment - - - - - Transportation - - - - - Economic environment - 264,589 - 198,492 - Culture and recreation - - - -

Capital outlayGeneral government - - - - - Physical environment - - - - -

Debt servicePrincipal retirement - - - - - Interest and fiscal charges - - - - -

Total expenditures 11,722 264,589 56,468 198,492 199,378

Excess (deficiencies) of revenues over (under) expenditures (8,643) (38,943) (16,687) 14,985 97,481

OTHER FINANCING SOURCES (USES)Transfers in - 20,000 - - - Transfers out - - - - -

Total other financing sources (uses) - 20,000 - - -

Net change in fund balances (8,643) (18,943) (16,687) 14,985 97,481

Fund balances - September 30, 2016 70,296 30,893 2,148 72,615 183,453 Fund balances - September 30, 2017 61,653$ 11,950$ (14,539)$ 87,600$ 280,934$




COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCENON-MAJOR GOVERNMENTAL FUNDS


I-76

Port Labelle East Hendry East Hendry West Hendry East Hendry West HendryStreet County County County County County

Lighting Drainage Fire Fire Mid-County Recreational RecreationalDistrict District District District MSBU MSBU MSBU

70,861$ 47,390$ 548,225$ 572,790$ 286,533$ 289,839$ 542,921$ - - - - - - - - - - - - - - - - - - - 1,201 - - - - - - - - 37 1,723 2,804 6,867 4,823 8,468 7,666

70,898 49,113 551,029 579,657 291,356 299,508 550,587

- - - - - - - - - - - - - - - - 690,780 532,509 - - -

59,500 26,618 - - - - - - - - - 169,592 - - - - - - - - - - - - - - 344,753 587,967

- - - - - 22,777 - - - - - - - -

- - - 32,632 - - - - - - 3,600 - - -

59,500 26,618 690,780 568,741 169,592 367,530 587,967

11,398 22,495 (139,751) 10,916 121,764 (68,022) (37,380)

- - - - - - - - - - - - - - - - - - - - -

11,398 22,495 (139,751) 10,916 121,764 (68,022) (37,380)

25,313 179,022 (441,320) 700,841 459,148 (28,503) 513,149 36,711$ 201,517$ (581,071)$ 711,757$ 580,912$ (96,525)$ 475,769$


I-77

Airport North Four WheelerSears Felda Labelle Corners Road

MSBU MSBU MSBU MSBU MSBUREVENUES

Taxes 92,125$ 23,015$ 48,953$ 17,228$ 111,519$ Licenses and permits - - - - - Intergovernmental - - - - -

Charges for services - - - - - Fines and forfeitures - - - - - Miscellaneous 8,303 2,492 2,268 2,858 6,629

Total revenues 100,428 25,507 51,221 20,086 118,148


General government - - - - - Court related - - - - - Public safety - - - - - Physical environment 91,456 10,655 23,613 12,807 41,579 Transportation - - - - Economic environment - - - - Culture and recreation - - - - -

Capital outlayGeneral government - - - - Physical environment 80,194 - - - -

Debt servicePrincipal retirement - - - - Interest and fiscal charges - - - -

Total expenditures 171,650 10,655 23,613 12,807 41,579

Excess (deficiencies) of revenues over (under) expenditures (71,222) 14,852 27,608 7,279 76,569

OTHER FINANCING SOURCES (USES)Transfers in - - - - - Transfers out - - - - -

Total other financing sources (uses) - - - - -

Net change in fund balances (71,222) 14,852 27,608 7,279 76,569

Fund balances - September 30, 2016 1,022,787 294,767 244,432 347,030 172,353 Fund balances - September 30, 2017 951,565$ 309,619$ 272,040$ 354,309$ 248,922$






I-78

Clerk ofHooker's Phillips Sky Circuit Court's Sheriff's

Point Mosquito Road Valley Building Property Modernization Gun RangeLighting Control MSBU MSBU Projects Appraiser Trust Fund Fund

11,339$ 496,839$ -$ 14,639$ -$ -$ -$ -$ - - - - - - - - - 25,000 - 118,124 - - - - - - 122,713 - 14,627 - - - - - - - - 148 77,634 30 123 57,496 514 - 18

11,487 574,473 30 14,762 82,496 123,227 118,124 14,645

- - - - 65,775 112,500 78,454 3,213 - - - - - - - - - - - - - - - -

12,160 619,724 - 10,643 - - - - - - - - - -

- - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - -

12,160 619,724 - 10,643 65,775 112,500 78,454 3,213

(673) (45,251) 30 4,119 16,721 10,727 39,670 11,432

- - - - - - - - - - - - (25,000) - - - - - - - (25,000) - - -

(673) (45,251) 30 4,119 (8,279) 10,727 39,670 11,432

15,419 338,101 3,729 9,652 90,189 136,159 224,698 28,646 14,746$ 292,850$ 3,759$ 13,771$ 81,910$ 146,886$ 264,368$ 40,078$


I-79

Sheriff's Supervisor ofSheriff's Equitable ElectionsTraining Sharing Sheriff's Federal Election

Fund Program Fund Commissary Activities FundREVENUES

Taxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental - - - 3,000 Charges for services - - - - Fines and forfeitures - - - - Miscellaneous 3,476 6 198,321 8

Total revenues 3,476 6 198,321 3,008


General government 5,453 - - 3,000 Court related - - - - Public safety - - 119,070 - Physical environment - - - - Transportation - - - - Economic environment - - - - Culture and recreation - - - -

Capital outlayGeneral government - - - - Physical environment - - 10,851 -

Debt servicePrincipal retirement - - - - Interest and fiscal charges - - - -

Total expenditures 5,453 - 129,921 3,000

Excess (deficiencies) of revenues over (under) expenditures (1,977) 6 68,400 8

OTHER FINANCING SOURCES (USES)Transfers in - - - - Transfers out - - - -

Total other financing sources (uses) - - - -

Net change in fund balances (1,977) 6 68,400 8

Fund balances - September 30, 2016 6,977 2,717 349,424 34 Fund balances - September 30, 2017 5,000$ 2,723$ 417,824$ 42$






I-80

TotalLaBelle Airglades Seven K Murray Non-Major

Fines and Airport Airport Estates Road Building Governmental Forfeitures Fund Fund MSBU MSBU Department Funds

-$ -$ -$ -$ 9,110$ -$ 3,183,326$ - - - 413,074 413,074

19,976 146,388 25,723 - - - 815,218 360,701 541,409 893,479 - - 2,231,747 287,353 - - - - - 290,432 140,486 1,050 316,987 - - - 852,374 808,516 688,847 1,236,189 - 9,110 413,074 7,786,171

- - - - - - 324,863 208,273 - - - - - 208,273 422,122 - - - - 342,146 2,317,727

- - - - 1,562 - 910,317 - 462,371 1,013,505 - - - 1,645,468 - - - - - 463,081 - - - - - - 932,720

- 87,045 26,263 - - - 136,085 - - - - - 91,045

- 32,587 - - - - 65,219 - 4,584 - - - - 8,184

630,395 586,587 1,039,768 - 1,562 342,146 7,102,982

178,121 102,260 196,421 - 7,548 70,928 683,189

- - - - - - 20,000 (671,387) - (164,902) - - - (861,289) (671,387) - (164,902) - - - (841,289)

(493,266) 102,260 31,519 - 7,548 70,928 (158,100)

453,960 159,029 283,519 (549) 13,680 61,671 6,025,479 (39,306)$ 261,289$ 315,038$ (549)$ 21,228$ 132,599$ 5,867,379$

I-81


Clerk of Tax Circuit Court Sheriff Collector Total

ASSETSCash and cash equivalents 1,120,937$ 175,651$ 1,385,121$ 2,681,709$ Receivables (net) 4,690 - - 4,690

Total assets 1,125,627$ 175,651$ 1,385,121$ 2,686,399$

LIABILITIES Accounts payable 73,465$ -$ -$ 73,465$ Due to other constitutional officers - - 38,125 38,125 Due to other governments 1,008,918 6,135 352,171 1,367,224 Due to individuals 11,526 133,254 361,464 506,244 Due to other funds 31,718 36,262 46,906 114,886 Deposits - - 586,455 586,455

Total liabilities 1,125,627$ 175,651$ 1,385,121$ 2,686,399$


COMBINING SCHEDULE - BALANCE SHEETFIDUCIARY FUNDS


I-82


Beginning Ending Balance Additions Deletions Balance

Clerk of Circuit CourtASSETS

Cash and cash equivalents 843,222$ 9,499,069$ 9,221,354$ 1,120,937$ Accounts Receivable 4,382 10,268 9,960 4,690

Total assets 847,604$ 9,509,337$ 9,231,314$ 1,125,627$

LIABILITIESAccounts payable 79,481$ 3,319,988$ 3,326,004$ 73,465$ Due to other governments 718,540 7,836,428 7,546,050 1,008,918 Due to individuals 8,891 12,420 9,785 11,526 Due to other funds 40,692 1,427,026 1,436,000 31,718

Total liabilities 847,604$ 12,595,862$ 12,317,839$ 1,125,627$

SheriffASSETS

Cash and cash equivalents 106,947$ 633,895$ 565,191$ 175,651$ Total assets 106,947$ 633,895$ 565,191$ 175,651$

LIABILITIESDue to other governments 6,217$ 2,989$ 3,071$ 6,135$ Due to individuals 79,441 508,419 454,606 133,254 Due to other funds 21,289 120,781 105,808 36,262

Total liabilities 106,947$ 632,189$ 563,485$ 175,651$

Tax CollectorASSETS

Cash and cash equivalents 654,120$ 71,710,272$ 70,979,271$ 1,385,121$ Total assets 654,120$ 71,710,272$ 70,979,271$ 1,385,121$

LIABILITIESDue to other constitutional officers 36,331$ 28,536$ 26,742$ 38,125$ Due to other governments 64 49,588,768 49,236,661 352,171 Due to individuals 123,828 11,543,824 11,306,188 361,464 Due to other funds - 2,320,015 2,273,109 46,906 Deposits 493,897 8,229,129 8,136,571 586,455

Total liabilities 654,120$ 71,710,272$ 70,979,271$ 1,385,121$


STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFIDUCIARY FUNDS



I-83

Beginning Ending Balance Additions Deletions Balance

TOTALASSETS

Cash and cash equivalents 1,604,289$ 81,843,236$ 80,765,816$ 2,681,709$ Receivables (net) 4,382 10,268 9,960 4,690

Total assets 1,608,671$ 81,853,504$ 80,775,776$ 2,686,399$

LIABILITIESAccounts payable 79,481$ 3,319,988$ 3,326,004$ 73,465$ Due to other constitutional officers 36,331 28,536 26,742 38,125 Due to other governments 724,821 57,428,185 56,785,782 1,367,224 Due to individuals 212,160 12,064,663 11,770,579 506,244 Due to other funds 61,981 3,867,822 3,814,917 114,886 Deposits 493,897 8,229,129 8,136,571 586,455

Total liabilities 1,608,671$ 84,938,323$ 83,860,595$ 2,686,399$

I-84

6/30/2017 6/30/2016 6/30/2015 6/30/2014

0.07537% 0.07325% 0.06703% 0.06420%

22,294,200$ 18,496,380$ 8,657,429$ 3,917,027$

County's covered-employee payroll 13,087,294$ 12,162,212$ 11,951,308$ 11,095,372$

58.70% 65.75% 72.44% 35.30%

83.19% 84.88% 92.00% 96.09%

Note: Data was unavailable prior to 2014

2017 2016 2015 2014

Contractually required contribution 1,787,412$ 1,598,337$ 1,877,742$ 1,701,137$

(1,787,412) (1,598,337) 1,877,742 1,701,137

Contribution deficiency (excess) -$ -$ -$ -$


13.48% 13.20% 15.71% 15.33%


HENDRY COUNTY, FLORIDAREQUIRED SUPPLEMENTARY INFORMATION

Fiscal Year Ended September 30, 2017

I-85

Schedule of the County's Proportionate Share of Net Pension Plan LiabilityFlorida Retirement System Pension Plan

y p p net pension liability as a percentage of its covered-employee payroll

y p percentage of the total pension liability

Schedule of the County's Contributions to the Florida Retirement System Pension Plan

County's proportionate share of the net pension liability

Contributions in relation to the contractually required contribution


Fiscal Year Ended September 30, 2017For the Last Three Fiscal Years Ended June 30

Contributions as a percentage of covered-employee payroll

County's proportion of the net pension liability

6/30/2017 6/30/2016 6/30/2015 6/30/2014

0.04993% 0.04734% 0.00473% 0.04660%

$ 5,338,798 5,587,709$ 4,828,351$ 4,356,955$


33.45% 37.52% 33.32% 32.20%

1.64% 0.97% 0.50% 0.99%


2017 2016 2015 2014

Contractually required contribution 269,317$ 247,253$ 197,705$ 171,106$

(269,317) (247,253) (197,705) (171,106)

Contribution deficiency (excess) -$ -$ -$ -$


1.66% 1.66% 1.36% 1.26%


I-86

percentage of the total HIS Plan liability

Schedule of the County's Contributions to the Health Insurance Subsidy Plan

Contributions in relation to the contractually required contribution

Contributions as a percentage of covered-employee payroll

REQUIRED SUPPLEMENTARY INFORMATIONHENDRY COUNTY, FLORIDA

Fiscal Year Ended September 30, 2017For the Last Three Fiscal Years Ended June 30


County's proportion of the HIS Plan liability

County's proportionate share of the HIS Plan liability

County's proportionate share of the HIS Plan liability as a percentage of its covered-employee payroll


Schedule of the County's Proportionate Share of Health Insurance Subsidy Plan Liability

SUPPLEMENTARYREPORTS


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Board of County Commissioners of Hendry County, Florida:

Internal Control Over Financial Reporting

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards issuedby the Comptroller General of the United States, the financial statements of the governmental activities, thebusiness-type activities, each major fund, and the aggregate discretely presented component units andremaining fund information of Hendry County, Florida, (the "County") as of and for the fiscal year endedSeptember 30, 2017, and the related notes to the financial statements, which collectively comprise theCounty's basic financial statements, and have issued our report thereon dated June 27, 2018.

In planning and performing our audit of the financial statements, we considered the County's internal controlover financial reporting (internal control) to determine the audit procedures that are appropriate in thecircumstances for the purpose of expressing our opinions on the financial statements, but not for the purposeof expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do notexpress an opinion on the effectiveness of the County’s internal control.

Report of Independent Auditor on Internal Control over Financial Reportingand on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

A deficiency in internal control exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, ininternal control, such that there is a reasonable possibility that a material misstatement of the entity's basicfinancial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than amaterial weakness, yet important enough to merit attention by those charged with governance.

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Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be material weaknessesor significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies ininternal control that we consider to be material weaknesses. However, material weaknesses may exist thathave not been identified.

Compliance and Other Matters

Purpose of this Report


As part of obtaining reasonable assurance about whether the County’s financial statements are free frommaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards.

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The purpose of this report is solely to describe the scope of our testing of internal control and compliance andthe results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control oron compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication isnot suitable for any other purpose.

SINGLE AUDIT


Phone: 941.639.6600Fax: 941.639.6115


Report on Compliance for Each Major Federal Program and State Financial Assistance Project

Management’s Responsibility

Auditor’s Responsibility

Report of Independent Auditor on Compliance for Each Major Federal Awards Program and State Financial Assistance Project and on Internal Control over Compliance Required by Uniform Guidance,

OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General

We have audited Hendry County, Florida’s (the “County”) compliance with the types of compliancerequirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement; OMBCircular A-133 Compliance Supplement; and the requirements described in the State of Florida Departmentof Financial Services’ State Projects Compliance Supplement that could have a direct and material effect oneach of the County’s major federal programs and state financial assistance projects for the year endedSeptember 30, 2017. The County’s major federal programs and state financial assistance projects areidentified in the summary of auditor’s results section of the accompanying schedule of findings andquestioned costs.

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grantsapplicable to its federal programs and state financial assistance projects.

Our responsibility is to express an opinion on compliance for each of the County’s major federal programs andstate financial assistance projects based on our audit of the types of compliance requirements referred toabove. We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards , issued by the Comptroller General of the United States; the requirements of Title 2 U.S. Code ofFederal Regulation Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements of Federal Awards ("Uniform Guidance"); OMB Circular A-133, Audits of States, LocalGovernments, and non-Profit Organizations ("OMB Circular A-133"); and Chapter 10.550, Rules of theAuditor General. Those standards, the Uniform Guidance, 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 aboutwhether noncompliance with the types of compliance requirements referred to above that could have a directand material effect on a major federal program or state financial assistance project occurred. An auditincludes examining, on a test basis, evidence about the County’s compliance with those requirements andperforming such other procedures as we considered necessary in the circumstances.

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Opinion of Each Major Federal Program and State Financial Assistance Project

Report on Internal Control over Compliance


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In our opinion, the County complied, in all material respects, with the types of compliance requirementsreferred to above that could have a direct and material effect on each of its major federal programs and statefinancial assistance projects for the year ended September 30, 2017.

Management of the County is responsible for establishing and maintaining effective internal control overcompliance with the types of compliance requirements referred to above. In planning and performing ouraudit of compliance, we considered the County’s internal control over compliance with the types ofrequirements that could have a direct and material effect on each major federal program and state financialassistance project to determine the auditing procedures that are appropriate in the circumstances for thepurpose of expressing an opinion on compliance for each major federal program and state financial assistanceproject and to test and report on internal control over compliance in accordance with the Uniform Guidance,OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General, but not for the purpose ofexpressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do notexpress an opinion on the effectiveness of the County’s internal control over compliance.

A deficiency in control over compliance exists when the design or operation of a control over compliancedoes not allow management or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program orstate financial assistance project on a timely basis. A material weakness in internal control over complianceis a deficiency, or combination of deficiencies, in internal control over compliance, such that there is areasonable possibility that material noncompliance with a type of compliance requirement of a federalprogram or state financial assistance project will not be prevented, or detected and correct, on a timely basis.A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, ininternal control over compliance with a type of compliance requirement of a federal program or state financialassistance project that is less severe than a material weakness in internal control over compliance, yetimportant enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section was not designed to identify all deficiencies in internal control over compliance thatmight be material weaknesses or significant deficiencies. We did not identify any deficiencies in internalcontrol over compliance that we consider to be material weaknesses. However, material weaknesses may existthat have not been identified. Additionally, we noted other instances of noncompliance that are required to bereported in accordance with the Uniform Guidance and OMB Circular A-133 that is described in theaccompanying schedule of findings and questioned costs as item 2017-01.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose.

We believe that our audit provides a reasonable basis for or opinion on compliance for each major federalprogram and state financial assistance project. However, our audit does not provide a legal determination ofthe County’s compliance.

FEDERAL AGENCY FederalPass-through entity CFDA Federal Transfers to

Federal Program - Project Name Number Contract / Grant Number Expenditures Subrecipients

DEPARTMENT OF HOMELAND SECURITY Passed through the Federal Emergency Management Agency Homeland Security Grant - Office of Domestic Preparedness Grant (ODP) 97.067 17-DS-V4-09-18-01-01-342 8,500$ -$

Emergence Management Preparedness & Assistance (EMPG) 97.042 17-FG-P9-09-36-01-099 29,064 - Emergence Management Preparedness & Assistance (EMPG) 97.042 18-FG-7A-09-36-01-201 14,893 -

43,957 -

52,457 -

DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through State of Florida, Department of Revenue Title IV Child Support Enforcement 93.563 COC26 96,032 -

96,032 -

FEDERAL AVIATION ADMINISTRATION Airport Improvement Program - General Aviation Terminal building / Labelle Airport 20.106 FAA#03-12-0125-008-2015 64,365 -

LaBelle Airport-Master Plan Update 20.106 FAA#03-12-0125-009-2016 8,895 - Install Weather Reporting Equipment (AWOS III P/T) 20.106 FAA#03-12-0012-006-2017 23,151 -

96,411 -

DEPARTMENT OF TRANSPORTATION Passed through State of Florida, Department of Transportation Highway Planning and Construction Cluster - CR78 Sidewalk Project 20.205 FM#428105-1-5801 602 -

CR78 Sidewalk Project 20.205 FM#428105-1-6801 728 -

TOTAL DEPARTMENT OF TRANSPORTATION - Highway Planning and Construction Cluster 1,330 -

DEPARTMENT OF JUSTICE - BUREAU OF JUSTICE ASSISTANCE Passed through State of Florida Department of Law Enforcement Edward Byrne Memorial Justice Assistance Grant - HCSO Project Safe Assembly Grant 16.738 2017-JAGC-HEND-3-R3-259 8,498 -

Passed through State of Florida Attorney General ARRA Recovery Act - Public Safety Partnership and Community Policing - COPS Hiring Recovery Program (CHRP) ** 16.710 2013UMWX0055 174,474 - COPS Hiring Recovery Program (CHRP) 16.710 2015UMWX0024 44,967 -

219,441 -

Bulletproof Vest Partnership Program 16.607 2015BUBX15079907 10,683 - Bulletproof Vest Partnership Program 16.607 16084404 2,032 -

12,715 -

State Criminal Alien Assistance Program (SCAAP) 16.606 2013-AP-BX-0281 15,616 - State Criminal Alien Assistance Program (SCAAP) 16.606 2014-AP-BX-0724 22,068 - State Criminal Alien Assistance Program (SCAAP) 16.606 2015-AP-BX-0722 10,864 -

48,548 -

Victims of Crime Act (VOCA) Grant 16.575 0-00569 36,380 -

325,582 -

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Passed through State of Florida Department of Community Affairs Lower Income Housing Assistance Program_Section 8 Moderate Rehabilitation - Section 8 Voucher Program 14.856 A3405 185,697 -

185,697 -

757,509$ -$ **Indicates the grant was tested as a major program in accordance with OMB Circular A-133 requirements.

HENDRY COUNTY, FLORIDASCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


TOTAL DEPARTMENT OF HOMELAND SECURITY

TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES

TOTAL FEDERAL AWARDS

TOTAL FEDERAL AVIATION ADMINISTRATION

TOTAL DEPARTMENT OF JUSTICE

TOTAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

The notes to Schedules of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule.

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StateSTATE AGENCY CSFA State Transfers to

State Project - Project Name Number Grant / Contract Number Expenditures Subrecipients

STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES

Wireless 911 Emergency Telephone System 72.001 16-10-13 77,833$ - Wireless 911 Emergency Telephone System 72.001 16-04-25 6,300 -

TOTAL STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES 84,133 -

STATE OF FLORIDA DEPARTMENT OF HEALTH

Emergency Medical Services (EMS) Matching Awards - Emergency Medical Grant 64.003 C5026 7,419 -

TOTAL STATE OF FLORIDA DEPARTMENT OF HEALTH 7,419 -

STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION

Small County Road Assistance Program (SCRAP) - Flaghole Road Project 55.016 FM431898-1-5801 572,043 - Francisco Street Project 55.016 FM435018-1-5801 10,688 - W.C. Owen Ave Project 55.016 FM#436651-1-5402 1,106 - Ft Denaud Rd from Ft Denaud Bridge to Huggets Rd 55.016 FM#436652-1-5402 1,245 - Forrey Drive (Cowboy Way to SR80) 55.016 FM#438570-1-5401 13,073 - Lewis Blvd (Georgia Ave to US27) 55.016 FM#438571-1-5401 7,914 -

606,069 - Small County Outreach Program - Flaghole Road Project 55.009 FM#431898-1-5802 1,612,504 - W.C. Owen Ave Project 55.009 FM#436651-1-5401 14,462 - Ft Denaud Rd from Ft Denaud Bridge to Huggets Rd 55.009 FM#436652-1-5401 4,993 - CR833/CR846 Intersection Improvement 55.009 FM#433692-1-5401 17,552 -

1,649,511 - County Incentive Grant Program - Helms Road Extention Construction From SR29 to SR80 55.008 FM#419948-3-5801 3,399,424 -

Aviation Development Grants - Traffic Signal Maintenance and Compensation Agreement 55.004 FM#412670-01-8801 8,811 - Rodeo Drive at LaBelle Airport 55.004 FM431876-1-9401 32,444 - LaBelle Airport Rehab Airfield Markings 55.004 FM441247-1-94-01 7,301 - LaBelle Airport Reconstruct Lights & Modify Funway & Payment 55.004 FM441248-1-94-01 11,487 - LaBelle Airport Master Plan 55.004 FM439855-1-9401 988 - Airglades Airport - AWOS 55.004 FM#441201-1-9401 2,572 - General Aviation Terminal Building-LaBelle Airport 55.004 FM#429210-1-9401 7,353 -

70,956 -

5,725,960 -

STATE OF FLORIDA DEPARTMENT OF STATE AND SECRETARY OF STATE

Acquisition, Restoration of Historic Properties - Historic Preservation of Old County Courthouse 45.032 SC511 320,207 - Historic Preservation of Old County Courthouse 45.032 SC709 216,278

536,485 -

STATE OF FLORIDA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

Hendry County, Dalla B Townsend AG Center 42.041 22943 30,615 -

30,615 -

STATE OF FLORIDA HOUSING FINANCE CORPORATION

State Housing Initiatives Partnership Program (SHIP) 40.901 NONE 196,877 -

Division of Community Development - Competitive Florida Partnership Grant 40.038 P0188 29,203 -

226,080 -

TOTAL STATE OF FLORIDA DEPARTMENT OF STATE AND SECRETARY OF STATE

TOTAL STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION

TOTAL STATE OF FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY

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TOTAL STATE OF FLORIDA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES


HENDRY COUNTY, FLORIDASCHEDULE OF STATE FINANCIAL ASSISTANCE


StateSTATE AGENCY CSFA State Transfers to

State Project - Project Name Number Grant / Contract Number Expenditures Subrecipients

STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION

Statewide Surface Water Restoration and Wastewater Projects - DEP-Force Main from Airglades Airport to Clewiston 37.039 S0857 247,425 -

Small County Solid Waste Grant 37.012 SC715 90,909 -

TOTAL STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION 338,334 -

STATE OF FLORIDA EXECUTIVE OFFICE OF THE GOVENOR

Emergency Management Programs - Emergency Management Preparedness & Assistance Base Grant 31.063 17-BG-83-09-36-01-032 83,986 - Emergency Management Preparedness & Assistance Base Grant 31.063 18-BG-W9-09-36-01-234 3,560 -

87,546 -

7,036,572$ -$ TOTAL STATE FINANCIAL ASSISTANCE

TOTAL STATE OF FLORIDA EXECUTIVE OFFICE OF THE GOVENOR

HENDRY COUNTY, FLORIDASCHEDULE OF STATE FINANCIAL ASSISTANCE - (CONTINUED)


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NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

YEAR ENDED SEPTEMBER 30, 2017

NOTE 1 – GENERAL

The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include the federal and state activity of Hendry County, Florida (the “County”). The County reporting entity is defined in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2017. All federal financial assistance programs received directly from federal agencies, as well as federal financial assistance programs passed through other government agencies, are included in the schedule. The Schedule is presented in accordance with Uniform Guidance and OMB Circular A-133.

NOTE 2 – BASIS OF ACCOUNTING

The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2017. The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.

NOTE 3 – CONTINGENCIES

Grant monies received by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. As of September 30, 2017, there were material questioned or disallowed costs as a result of grant audits in process or completed of which management was aware. Any adjustments to grant funding are recorded in the year the adjustment occurs. See finding 2017 – 01 in this report.

NOTE 4 – MAJOR FEDERAL PROGRAM DETERMINATION

Major federal program determination has been completed in accordance with Uniform Guidance and where applicable OMB Circular A-133. The major federal program CFDA 16.710 as selected, is split among two grant awards. Grant Number 2013UMWX0055 was awarded to the County on October 1, 2013 and the grantor agency has not indicated to either the Auditor or to the Grantee that program may be audited in accordance with Uniform Guidance, thus this grant has been selected and tested as a major program under OMB Circular A-133 requirements. Additionally, grant number 2015UMWX0024 has been tested as a major program under Uniform Guidance.

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SCHEDULE OF FINDINGS AND QUESTIONED COST - FEDERAL AWARD PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS


Part I – Summary of Auditor’s Results

Financial Statements

Type of auditor’s report issued: Unmodified Internal control over financial reporting:

Material weakness(es) identified? Yes X No

Significant deficiency(ies)? ____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 Significant deficiency(ies) identified? Yes X None reported Type of auditor’s report issued on compliance for major federal programs and state projects: Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) or OMB Circular A-133? X Yes No

Any audit findings disclosed that are required to be reported in accordance with Chapter 10.550 for state projects? ____Yes X No Identification of major federal programs and state projects:

Federal Programs: CFDA No.

DEPARTMENT OF JUSTICE – Public Safety Partnership and Community Policing Grant 16.710 State Projects: CSFA No.

STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION– Small County Outreach Program 55.016 County Incentive Grant Program 55.008 STATE OF FLORIDA DEPARTMENT OF STATE AND SECRETARY OF STATE– Acquisition, Restoration of Historic Properties 45.032 STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION– Statewide Surface Water Restoration and Wastewater Projects 37.039

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(CONTINUED)


Part I – Summary of Auditor’s Results – (Continued) Dollar threshold used to determine Type A programs: Federal programs:

Uniform Guidance $ 750,000 OMB Circular A-133 $ 300,000

State projects $ 300,000 Auditee qualified as low-risk auditee? X Yes No

Part II – Financial Statement Findings

This section identifies significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements, and abuse related to the financial statements that are required to be reported in accordance with Government Auditing Standards.

There were no financial statement findings required to be reported in accordance with Government Auditing Standards.

Part III –Federal Award Findings and Questioned Costs

This section identifies the significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs, as well as any material abuse findings, related to the audit of major federal programs, as required to be reported by 2 CFR 200.516(a) and/or OMB Circular A-133.

2017 – 01 The Sheriff should follow its policies and procedures when preparing grant reimbursement requests. Criteria – The Sheriff should follow its policies and procedures when preparing grant reimbursement requests to ensure it is requesting reimbursement for expenses in accordance with the provisions of the grant agreement. Condition and Context – The Sheriff’s finance department inadvertently miscalculated salary related expenses which were reimbursed by the Department of Justice’s Public Safety Partnership and Community Policing Grant. Salary related expenses totaling approximately $49,000 were reimbursed to the Sheriff over two grant agreements. Effect – The Sheriff inadvertently received funds from the Department of Justice which were incorrectly submitted as salary related expenses. The Sheriff is in the process of returning the excess funds to the Department of Justice. Cause – The Sheriff did not adequately follow its policies and procedures when preparing grant reimbursement requests.

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(CONTINUED)

YEAR ENDED SEPTEMBER 30, 2017 Part III –Federal Award Findings and Questioned Costs, continued

Recommendation – To help ensure the accuracy of grant reimbursement requests, the Sheriff should more closely prepare and review all reimbursement requests prior to submission.

The Sheriff’s responsible officials’ planned corrective action are in its corrective action plan included below at the end of this report.

Part IV – State Project Findings and Questioned Costs

This section identifies the significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs, as well as any material abuse findings, related to the audit of major state projects, as required to be reported by Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits.

There were no findings required to be reported by Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits.

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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND CORRECTIVE ACTION PLAN – FEDERAL AWARD PRGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS


Prior Year Audit Findings:

There were no prior year audit findings. Corrective Action Plan:

2017 - 01 The Sheriff concurs with the finding and will work more diligently to follow its policies and procedures regarding submission of grant reimbursement requests. The Sheriff is in the process of returning the funds to the Department of Justice.

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Phone: 941.639.6600Fax: 941.639.6115




Other Reports and Schedule

Prior Audit Findings

Official Title and Legal Authority

Independent Auditor's Management Letter

We have audited the financial statements of the governmental activities, the business-type activities, each majorfund, and the aggregate discretely presented component units and remaining fund information of Hendry County,Florida (the "County"), as of and for the fiscal year ended September 30, 2017, which collectively comprise theCounty's basic financial statements and have issued our report thereon dated June 27, 2018.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States; the audit requirements of Title 2 U.S. Code Federal Regulations (CFR) Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards ("UniformGuidance"); OMB Circular A-133, Audits of States, Local Governments, and non-Profit Organizations ("OMBCircular A-133"); and Chapter 10.550, Rules of the Auditor General.

We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government AuditingStandards; Report of Independent Auditor on Compliance for Each Major Federal Awards Program and StateFinancial Assistance Project and on Internal Control Over Compliance Required by Uniform Guidance, OMBCircular A-133, and Chapter 10.550, Rules of the Auditor General; Schedule of Findings and Questioned Costs;and Report of Independent Accountant on Compliance with Local Government Investment Policies and E911Requirements of Sections 365.172 and 365.173, Florida Statutes. Disclosures in those reports and schedule, whichare dated June 27, 2017, should be considered in conjunction with this management letter.

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actionshave been taken to address findings and recommendations made in the preceding annual financial audit report.There were no recommendations made in the preceding annual financial audit report.

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority forthe primary government and each component unit of the reporting entity be disclosed in this management letter,unless disclosed in the notes to the financial statements. The County discloses this information in the notes to thefinancial statements.

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Financial Condition and Management

Annual Financial Report

Special District Component Units

Additional Matters

Purpose of this Letter


Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special districtthat is a component unit of a county, municipality, or special district, provided the financial information necessaryfor proper reporting of the component unit, within the audited financial statements of the county, municipality, orspecial district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, wedetermined that all special district component units provided the necessary information for proper reporting inaccordance with Section 218.39(3)(b), Florida Statutes.

Our management letter is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal andother granting agencies, the Hendry County Board of County Commissioners, and applicable management, and innot intended to be and should not be used by anyone other than these specified parties.

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Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions ofcontracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on thefinancial statements that is less than material but which warrants the attention of those charged with governance. Inconnection with our audit of the County, see finding 2017 - 01 as presented on the Schedule of Findings andQuestioned Costs of Federal Award Programs.

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate proceduresand communicate the results of our determination as to whether or not the County has met one or more of theconditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. Inconnection with our audit, we determined that the County did not meet any of the conditions described in Section218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditionassessment procedures for the County. It is management’s responsibility to monitor the County's financialcondition, and our financial condition assessment was based in part on representations made by management and thereview of financial information provided by same.

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require us to apply appropriate proceduresand communicate the results of our determination as to whether the annual financial report for the County for thefiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year endedSeptember 30, 2017. In connection with our audit, we determined that these two reports were in agreement.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter anyrecommendations to improve financial management. In connection with our audit, we did not have any suchrecommendations.


Phone: 941.639.6600Fax: 941.639.6115


Report on Compliance

Scope

Opinion


We have examined Hendry County, Florida's (the "County's") compliance with the local governmentinvestment policy requirements of 218.415, Florida Statutes, and E911 requirements of Sections 365.172 and365.173, Florida Statutes, for the year ended September 30, 2017. Management is responsible for theCounty's compliance with those requirements. Our responsibility is to express an opinion on the County'scompliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Instituteof Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about theCounty's compliance with those requirements and performing such other procedures as we consider necessaryin the circumstances. We believe that our examination provides a reasonable basis for our opinion. Ourexamination does not provide a legal determination on the County's compliance with specified requirements.

In our opinion, the County complied, in all material respects, with the aforementioned requirements for theyear ended September 30, 2017.

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Report of Independent Accountant on Compliance With Local Government Investment Policies and E911 Requirements of Sections 365.172 and 365.173, Florida Statutes

HENDRY COUNTY, FLORIDACLERK OF THE CIRCUIT COURT

September 30, 2017

FINANCIAL STATEMENTS,TOGETHER WITH REPORTS OF INDEPENDENT AUDITOR

Page(s)

Report of Independent Auditor…………………………….…………………………………...… II-1 - II-3


Balance Sheet - Governmental Funds…………………………...………………………….…… II-4

Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds………………………………………………………………...……… II-5

Statement of Fiduciary Assets and Liabilities- Agency Funds………………………………… II-6

Notes to Financial Statements…………………………………..……………………………… II-7 - II-15


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund………………………….……………………………… II-16

Other Financial Information

Combining Statement of Fiduciary Assets and Liabilities - All Agency Funds………………… II-17

Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency Funds…… II-18 - II-20

Supplementary Reports

Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..……………..…… II-21 - II-22

Independent Auditor's Management Letter II-23 - II-24

Report of Independent Accountant on Compliance with Local Government InvestmentPolicies, Article V Requirements, and Florida Statute 61.181 Requirements……………… II-25

Table of Contents


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Barbara S. Butler,Clerk of the Circuit CourtHendry County, Florida






An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, butnot for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of significant accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.

We have audited the accompanying financial statements of each major fund and the aggregate remaining fundinformation of the Hendry County, Florida, Clerk of the Circuit Court, (the "Clerk") as of and for the fiscalyear ended September 30, 2017, and the related notes to the financial statements, as listed in the table ofcontents.

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentationof financial statements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards , issued by theComptroller General of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from material misstatement.

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Opinions

Emphasis of Matter


Other Information

As discussed in Note 1 to the financial statements, the financial statements referred to above were preparedsolely for the purpose of complying with Rules of the Auditor Gneral of the State of Florida. In conformitywith the Rules, the accompanying financial statements are intended to present the financial position andchanges in financial position of each fund of Hendry County, Florida that is attributable to the Clerk. They donot purport to, and do not, present fairly the financial position of Hendry County, Florida as of September 30,2017, and the changes in its financial position for the fiscal year then ended in conformity with accountingprinciples generally accepted in the Unites States of America. Our opinions are not midified with respect tothis matter.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Clerk’s basic financial statements. The combining financial statements listed in the OtherFinancial Information section of the table of contents are presented for purposes of additional analysis and arenot a required part of the basic financial statements.

The combining financial statements are the responsibility of management and were derived from and relatedirectly to the underlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financial statementsand certain additional procedures, including comparing and reconciling such information directly to theunderlying accounting and other records used to prepare the basic financial statements or to the basic financialstatements themselves, and other additional procedures in accordance with auditing standards generallyaccepted in the United States of America. In our opinion, the combining financial statements are fairly stated,in all material respects, in relation to the basic financial statements as a whole.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of each major fund and the aggregate remaining fund information of the Clerk as ofSeptember 30, 2017 and the respective changes in financial position thereof for the fiscal year then ended inconformity with accounting principles generally accepted in the United States of America.

Other Matters

Accounting principles generally accepted in the United States of America require that the budgetarycomparison information on pages 15 be presented to supplement the financial statements. Such information,although not a part of the financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the financial statements in anappropriate operational, economic, or historical context. We have applied certain limited procedures to therequired supplementary information in accordance with auditing standards generally accepted in the UnitedStates of America, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management's responses to our inquiries, thefinancial statements, and other knowledge we obtained during our audit of the financial statements. We do notexpress an opinion or provide any assurance on the information because the limited procedures do not provideus with sufficient evidence to express an opinion or provide any assurance.

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In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2018, onour consideration of the Clerk's internal control over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of thatreport is to describe the scope of our testing of internal control over financial reporting and compliance andthe results of that testing, and not to provide an opinion on internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the Clerk's internal control over financial reporting and compliance.

FINANCIAL STATEMENTS

General Fund Modernization

Trust Fund Total

ASSETS

Cash 250,423$ 243,408$ 493,831$ Accounts Receivable 3,220 - 3,220 Due from Other Funds 31,718 - 31,718 Due from Other Governments 97,050 - 97,050 Prepaid Expenses - 20,960 20,960

Total Assets 382,411$ 264,368$ 646,779$

LIABILITIES AND FUND BALANCES

Liabilities

Accounts Payable 26,268$ -$ 26,268$ Accrued liabilities 25,821 - 25,821 Due to BOCC 256,758 - 256,758 Due to Other Governments 73,564 - 73,564

Total Liabilities 382,411 - 382,411

Fund Balance

Restricted - 264,368 264,368

Total Liabilities and Fund Balance 382,411$ 264,368$ 646,779$

See accompanying notes.


September 30, 2017Balance Sheet - Governmental Funds

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General Fund Modernization

Trust Fund Total Revenues

Intergovernmental 96,032$ 118,124$ 214,156$ Charges for Services 978,020 - 978,020 Fines & Forfeitures - - - Miscellaneous 6,909 - 6,909

Total Revenues 1,080,961 118,124 1,199,085

ExpendituresGeneral Government 997,207 78,454 1,075,661 Court Related 959,779 - 959,779

Total Expenditures 1,956,986 78,454 2,035,440

Excess of revenues over (under) expenditures (876,025) 39,670 (836,355)

Other financing sources (uses)Operating transfers in 1,132,783 - 1,132,783 Operating transfers out (256,758) - (256,758)

Total other financing sources (uses) 876,025 - 876,025

Excess of revenues and other sources sources over (under) expenditures and other sources - 39,670 39,670

Fund Balance - October 1, 2016 - 224,698 224,698

Fund Balance - September 30, 2017 -$ 264,368$ 264,368$



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Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental Funds

Agency Funds

ASSETS

Cash 1,120,937$ Accounts Receivable 10 Due from Other Governments 4,680

Total Assets 1,125,627$

LIABILITIES

Accounts Payable 73,465$ Due to Other Funds 31,718 Due to Other Governments 1,008,918 Due to Individuals 11,526

Total Liabilities 1,125,627$


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CLERK OF THE CIRCUIT COURTStatement of Fiduciary Assets and Liabilities- Agency Funds

September 30, 2017


Reporting Entity

(a) Fund Accounting

Governmental Funds

General Fund


Fiduciary Funds

Agency Funds

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Notes to Financial Statements

The General Fund is used to account for all revenues and expenditures applicable to the general operations ofthe Clerk, which are not properly accounted for in another fund. All operating revenues, which are notspecifically restricted or designated as to use, are recorded in the General Fund. Excess revenues at the end ofthe year, due back to the Board of County Commissioners and the State of Florida, are shown as operatingtransfers out.


The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legallyrestricted to expenditures for specific purposes. The Public Records Modernization Trust fund is used toaccount revenues generated from the additional service charge on most recorded instruments as defined inSections 28.24 (12)(d) and 28.24 (12)(e)1, F.S. The funds shall be used exclusively to fund court-relatedtechnology needs of the Clerk as defined in Section 29.008(1)(f)2 and (h), F.S. The excess of such revenuesover expenditures for the fiscal year are retained by the Clerk in the fund.

The accounts of the Clerk are organized on the basis of funds, each of which is considered a separateaccounting entity. The operations of each fund are accounted for with a separate set of self-balancing accountsthat comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate. Governmentresources are allocated to, and accounted for, in individual funds, based upon the purposes for which they areto be spent and the means by which spending activities are controlled.

The Agency Funds are used to account for assets held by public officials in a trustee capacity or as an agent for individuals, private organizations, other governments and/or other funds.

The Clerk, as an elected constitutional officer was established by the Constitution of the State of Florida,Article VIII, Section 1 (d). As such, the Clerk's special purpose financial statements are included in thegovernment wide financial statements of Hendry County, the primary government. A component unit is alegally separate organization for which the elected officials of the primary government are financiallyaccountable. Based on the criteria established by Statement of Governmental Accounting Standards BoardNumber 14, "Financial Reporting Entity," there are no component units included in the Clerk's financialstatements.

September 30, 2017


(b) Measurement Focus, Basis of Accounting and Financial Statement Presentation

Governmental Funds

Fiduciary Funds

Basis of Accounting

Budgetary Process

Notes to Financial StatementsSeptember 30, 2017

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Expenditures are generally recognized under the modified accrual basis of accounting when the related fundliability is incurred. Exceptions to this general rule include:

1. Principal and interest on general long-term debt, which is recognized when due; and2. Expenditures are not divided between years by the recording of prepaid expenses.

The General Fund and Special Revenue Funds are accounted for on a "spending" or "financial flow"measurement focus. This means that only current assets and current liabilities are generally included on thebalance sheet. Accordingly, the reported undesignated fund balances (net current assets) art considered ameasure of available, spendable or appropriable resources. General operating statements present increases(revenues and other financing sources) and decreases (expenditures and other financing uses) in net currentassets.

Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results ofoperations.

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported inthe financial statements. Basis of accounting relates to the timing of the measurements made, regardless of themeasurement focus applied.

The modified accrual basis of accounting is followed by all funds. The modification in such method from theaccrual basis is that revenues are recorded when they become measurable and available to finance operationsof the current year.

The annual budget serves as the legal authorization for expenditures. Expenditures cannot legally exceed thetotal amount budgeted for each fund. All budgets are prepared on the modified accrual basis. The level ofcontrol for appropriations is exercised at the functional level.

Chapter 218, Florida Statutes, governs the preparation, adoption and administration process of the Clerk'sannual budget. The Clerk's budget, however, is prepared in two parts. One portion relates to the State courtsystem, including Recording, and is required to be filed with the State Court Administrator. The remainingportion relates to the requirements of the Clerk as ex officio to the Board, Clerk of the Board of CountyCommissioners, County Auditor and custodian, or treasurer, of all County funds. The budget for this portionis submitted to and approved by the Board of County Commissioners. However, the budget in total is requiredto be filed with the State Court Administrator.

CLERK OF THE CIRCUIT COURTHENDRY COUNTY, FLORIDA


Encumbrances

(c) Assets, Liabilities and Equity

Capital Assets


Estimates

Fund Balances

Restricted fund balances are fund balance amounts that are constrained for specific purposes which areexternally imposed by creditors, grantors, contributors, or laws or regulations or imposed by law throughconstitutional provisions or enabling legislation. As of September 30, 2017, the Clerk had $264,368 inrestricted fund balance in the Modernization Trust Fund.

The preparation of financial statements in conformity with accounting principles generally accepted in theUnited States of America requires management of the Clerk to make estimates and assumptions relating to thereporting of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of thefinancial statements, and the reported amounts of revenues and expenditures or expenses during the reportingperiod. Actual results could differ from those estimates.

Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending ofthese fund balances.

CLERK OF THE CIRCUIT COURT

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Acquisitions of tangible personal property are recorded as expenditures in the General Fund at the time ofpurchase. These assets are reported to the Hendry County, Florida, Board of County Commissioners and arerecorded in the government wide financial statements.

The Clerk's employees accumulate sick and annual leave based on the number of years of continuous serviceand other criteria. Upon termination of employment, employees generally receive payment for accumulatedannual and sick leave.

As of September 30, 2017, the Clerk had $105,925 in long-term compensated absences payable. This amountis reported in the government-wide financial statements of Hendry County, Florida.

Statement of Governmental Accounting Standards Board No. 16, "Accounting for Compensated Absences",requires the compensated absences liability to be measured using the salary rate in effect at the balance sheetdate and requires additional amounts to be accrued for certain salary related payments associated with thepayment of compensated absences. The liability shown in the financial statements of Hendry County has beenaccrued in accordance with this criteria.


Encumbrance accounting, under which purchase orders and other commitments for the expenditure of moniesare recorded in order to reserve that portion of the applicable appropriation, is not employed by the Clerk.



New Accounting Standards

NOTE 2 - CASH AND CASH INVESTMENTS

The deposits whose values exceeded the limits of federal depository insurance are entirely insured orcollateralized pursuant to the Public Depository Security Act of the State of Florida, Chapter 280 of theFlorida Statutes.

The Clerk held no investments during the fiscal year.

Beginning with fiscal year 2014, the Clerk implemented GASB No. 63: Financial Reporting of DeferredOutflows of Resources, Deferred Inflows of Resources and Net Position. This statement requires a Statementof Fiduciary Net Position (rather than net assets) format which segregates deferred inflows and deferredoutflows from assets and liabilities, respectively. Specific items required to be broken out as deferred inflowsor deferred outflows are discussed in GASB Statements 53 and 60. These items are derivative instruments andservice concession arrangements, respectively. None of these items affect the Clerk at this time. The otherposition of GASB Statement is nomenclature. Statement No. 64; Derivative Instruments: Application ofHedge Accounting Termination Provisions is not applicable to the Clerk.

Assigned fund balances are fund balances are constrained by the Clerk's intent to be used for specificpurposes, but which are neither restricted nor committed. As of September 30, 2017, the Clerk had no assignedfund balances.

September 30, 2017

Committed fund balances are fund balances constrained for specific purposes imposed by the Clerk’s formalaction of highest level of decision making authority. As of September 30, 2017, the Clerk had no committedfund balances.


During the fiscal year, the Clerk maintained deposits in interest-bearing savings and checking accounts. AtSeptember 30, 2017, the bank balance of all accounts was $1,803,727 and the book balance of deposits was$1,614,233.

The Clerk had $535 of cash on hand at September 30, 2017.


Unassigned fund balances represent the residual positive fund balance within the General Fund, which has notbeen assigned to other funds and has not been restricted, committed or assigned. In funds other than theGeneral Fund, unassigned fund balances are limited to negative residual balances. As of September 30, 2017,the Clerk had no unassigned fund balances because all excess revenues within the general fund are required tobe remitted to the Board.

The excess of such revenues over expenditures for the fiscal year are retained by the Clerk in the fund to fundcourt-related technology needs of the Clerk, as defined in Section 29.008(1)(f)2 and (h), F.S.

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Plan Description

Funding Policy

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Benefits under the Pension Plan are computed on the basis of age, average final compensation, and servicecredit. For Pension Plan members enrolled before July l, 2011, Regular class members who retire at or afterage 62 with at least six years of credited service, or 30 years of service regardless of age, are entitled to aretirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on thefive highest years of salary, for each year of credited service. Vested regular class members with less than 30years of service may retire before age 62 and are entitled to a retirement benefit payable monthly also equal to1.6% of their final average compensation for each year of credited service based on the five highest years ofsalary, with a 5% reduction for each year under age 62. Substantial changes were made to the Pension Planduring fiscal year 2011, affecting new members enrolled on or after July 1, 2011, by extending the vestingrequirement to eight years of credited service and increasing normal retirement to age 65 or 33 years of serviceregardless of age. Also, the final average compensation for these members is based on the eight highest yearsof salary.

The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and isadministered by the Florida Department of Management Services, Division of Retirement. Eligible retirees andbeneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service,with a minimum payment of $30 and a maximum payment of $150 per month.

All enrolled members of the FRS Pension Plan are required to contribute 3.0% of their salary to the FRS. Inaddition to member contributions, governmental employers are required to make contributions to the FRSbased on statewide contribution rates. The employer contribution rates by job class for the periods fromOctober 1, 2016 through June 30, 2017 and July 1, 2017 through September 30, 2017, respectively, were asfollows: regular 7.52% and 7.92%; county elected officers 42.47% and 45.50%; senior management 21.77%and 22.71%; special risk 22.57% and 23.27%; special risk administration 28.06% and 34.63%; rehired regularclass 4.49% and 5.16%; and DROP participants 12.99% and 13.26%. During the fiscal year ended September30, 2017, the Clerk of the Circuit Court contributed to the plan an amount equal to 13.26% of covered payroll.


The Clerk of the Circuit Court's employees participate in the Florida Retirement System (FRS). As providedby Chapters 12I and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer definedbenefit plans administered by the Florida Department of Management Services, Division of Retirement,including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan").Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("InvestmentPlan") alternative to the FRS Pension Plan, which is administered by the State Board of Administration.

As a general rule, membership in the FRS is compulsory for all employees working in a regularly establishedposition for a state agency, county government, district school board, state university, community college, or aparticipating city or special district within the State of Florida. The FRS provides retirement and disabilitybenefits, annual cost-of-living adjustments (where applicable), and death benefits to plan members andbeneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, FloridaAdministrative Code. Amendments to the law can be made only by an act of the Florida Legislature.



NOTE 4 - GENERAL LONG-TERM DEBT

98,707$ 7,218

105,925$

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General long-term debt is comprised of the noncurrent portion of compensated absences. Employees of theClerk are entitled to paid annual leave, based on length of service and job classification.

The Clerk of the Circuit Court recognizes pension expenditures in an amount equal to amounts paid to thePension Plan, the HIS Plan and the defined contribution plan, amounting to $119,600, $19,996, and $11,902respectively, for the fiscal year ended September 30, 2017. The Clerk of the Circuit Court's payments afterJune 30, 2017, the measurement date used to determine the net pension liability associated with the PensionPlan and HIS Plan, amounted to $33,723, and $5,564, respectively. The Clerk of the Circuit Court is notlegally required to and does not accumulate expendable available resources to liquidate the retirementobligation related to its employees. Accordingly, the net pension liability and associated deferred outflows anddeferred inflows are presented on the government-wide financial statements of the County, followingrequirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment ofGASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequentto the Measurement Date - an amendment of GASB Statement No. 68, effective October 1, 2014.

The State of Florida annually issues a publicly available financial report that includes financial statements andrequired supplementary information for the FRS. The latest available report may be obtained by writing to theState of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee,Florida 32315-9000, or from the Web site www.ams.mvflorida.com/retirement.

The HIS Plan is funded by required contributions from FRS participating employees as set forth by FloridaLegislature, based on a percentage of gross compensation for all active FRS members.



For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occursat one year of service. These participants receive a contribution for self-direction in an investment productwith a third party administrator selected by the State Board of Administration. Employer and employeecontributions, including amounts contributed to individual member's accounts, are defined by law, but theultimate benefit depends in part on the performance of investment funds. Benefit terms, including contributionrequirements, for the Investment Plan are established and may be amended by the Florida Legislature. TheInvestment Plan is funded with the same employer and employee contribution rates that are based on salaryand membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.Contributions are directed to individual member accounts, and the individual members allocate contributionsand account balances among various approved investment choices. Costs of administering the plan, includingthe FRS Financial Guidance Program, are funded through an employer contribution 0.06 percent of payroll byforfeited benefits of plan members.

Long-term debt payable at September 30, 2017

The following changes in general long-term debt occurred during the year ended September 30, 2017:

Long-term debt payable at October 1, 2016Increase in accrued compensated absences

NOTE 5 - INSURANCE


NOTE 7- OTHER POST EMPLOYMENT BENEFITS

Plan Description


September 30, 2017

The Clerk participates in the County-wide insurance program. The Hendry County, Florida, Board of CountyCommissioners is a member of Public Risk Management (PRM), a local government liability risk pool.

PRM administers insurance activities relating to property, general, automobile, public official's liability,worker's compensation, health, and auto physical damage. The pool assesses each member its pro-rata share ofthe estimated amount required to meet current year losses, operating expenses and reinsurance costs(premiums).

To reduce its exposure to large losses on all types of insured events PRM uses reinsurance policies purchasedfrom third-party carriers. The fund is fully funded annually. The premiums for this coverage are paid by thevarious Constitutional Officers and Board of County Commissioners on a per employee coverage basis.

Regular Class and Elected Officials - For employees enrolled in FRS prior to July 1, 2011, age 62, and 6years of service or 30 years of service, regardless of age, is normal retirement, respectively. Employeesmay retire early at age 43 and 6 years of service. For employees enrolled in FRS on or after July 1, 2011,age 65, and 8 years of service or 33 years of service, regardless of age, is normal retirement, respectively.Employees may retire early at age 43 and 8 years of service.

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Charges to operating departments are based upon amounts believed by management to meet the requiredannual payout during the fiscal year and to pay for the estimated operating costs of the program and forpremiums for third party carrier insurance plans. For fiscal year ended September 30, 2017, the Clerk wascharged $424,567.

The Clerk is involved from time to time in certain routine litigation, the substance of which as other liabilitiesfor recoveries, would not materially affect the financial position of the Clerk.

In accordance with Section 112.081, Florida Statutes, because the Clerk provides medical plans to employeesof the Clerk and their eligible dependents, the Clerk is also required to provide retirees the opportunity toparticipate in the group employee health plan. Retirees participating in the group insurance plans offered bythe County are required to contribute 100% of the active participants.




NOTE 7- OTHER POST EMPLOYMENT BENEFITS, CONTINUED

Eligibility for Insurance Coverage, Continued

Membership


Active Employees 30 Eligible Retirees 10 Covered Spouses -

Funding Policy


September 30, 2017 31,920$ 7,853$ 24.6% 167,374$ September 30, 2016 24,799$ 6,396$ 25.8% 143,684$ September 30, 2015 29,053$ 7,550$ 26.0% 148,554$

216,510$ -

216,510$

853,512$

25.4%

Funding for this plan is on a pay-as-you-go basis. The Program is currently unfunded. There is no separatetrust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for thispurpose. Currently, the Clerk has no employees receiving benefits.

Hendry County had an actuarial valuation performed for the plan as of October 1, 2016 to determine thefunded status of the plan as of that date, as well as the employer's annual required contribution (ARC) for thefiscal year ended September 30, 2017. The Clerk's annual OPEB cost for the fiscal year was $31,920. TheClerk's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEBobligation from 2017 is as follows:

Special Risk - For employees enrolled in FRS prior to July 1, 2011, age 55 and 6 years of service or 25years of special risk service, regardless, of age is normal retirement. Employees may retire early at age 36and 6 years of service. For employees enrolled in FRS on or after July 1, 2011, age 60 and 8 years ofservice or 30 years of special risk service, regardless of age, is normal retirement. Employees may retireearly at 36 and 8 years of service.

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Actuarial Accrued Liability (AAL)Actuarial Value of Plan AssetsUnfunded Actuarial Accrued Liability (AAL)

Covered Payroll

Ration of UAAL to Covered Payroll

Annual Cost of OPEB

The funded status of the plan as of September 30, 2017 was as follows:

Employer ContributedFiscal Year Ended

Percentage of OPEB Cost Contributed

Net OPEB Obligation

NOTE 7- OTHER POST EMPLOYMENT BENEFITS, CONTINUED

Valuation Methods and Assumptions

Normal cost and the allocation of benefit values between service rendered before and after the valuation datewas determined using the Entry Age Normal Actuarial Cost Method. The rate of return on investment underthe pay-as-you-go approach is 4.0%, compounded annually. Salaries are assumed to increase between 3.7%and 7.8% depending on the members age and service. Salary increase assumptions are the salary increaseassumptions used in the most recent Actuarial Valuation of the Florida Retirement System (FRS).



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SUPPLEMENTARYINFORMATION

REQUIRED

Variance withFinal Budget

Original Final Positive Budget Budget Actual (Negative)

Revenues

Intergovernmental -$ -$ 96,032$ 96,032$ Charges for Services 957,176 959,775 978,020 18,245 Miscellaneous - - 6,909 6,909

Total Revenues 957,176 959,775 1,080,961 121,186

ExpendituresGeneral Government

Personal Services 862,779 862,779 773,233 89,546 Operating Expenses 270,000 270,000 223,974 46,026

Court Related Personal Services 864,429 864,429 864,429 - Operating Expenses 92,751 95,350 95,350 -

Total Expenditures 2,089,959 2,092,558 1,956,986 135,572

Excess of expenditures over revenues (1,132,783) (1,132,783) (876,025) 256,758

Other financing sources (uses)Operating transfers in 1,132,783 1,132,783 1,132,783 - Operating transfers out - - (256,758) (256,758)

Total other financing sources (uses) 1,132,783 1,132,783 876,025 (256,758)

Excess of revenues and other sourcesover (under) expenditures and other uses - - - -

Fund Balance - October 1, 2016 - - - -

Fund Balance - September 30, 2017 -$ -$ -$ -$

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GENERAL FUNDSchedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual


OTHER FINANCIALINFORMATION

Operating Fines and Christmas Trust Registry Forfeitures Club Total

ASSETS

Cash 487,093$ 205,609$ 416,709$ 11,526$ 1,120,937$ Accounts Receivable 10 - - - 10 Due from Other Governments 4,680 - - - 4,680

Total Assets 491,783$ 205,609$ 416,709$ 11,526$ 1,125,627$

LIABILITIES

Accounts Payable 18,041$ -$ 55,424$ -$ 73,465$ Due to Other Funds - - 31,718 - 31,718 Due to Other Governments 473,742 205,609 329,567 - 1,008,918 Due to Individuals - - - 11,526 11,526

Total Liabilities 491,783$ 205,609$ 416,709$ 11,526$ 1,125,627$

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Combining Statement of Fiduciary Assets and Liabilities- Agency Funds


September 30, 2017

Balance BalanceOctober 1, September 30,

2016 Additions Deletions 2017OPERATING TRUST

ASSETS

Cash 330,507$ 5,031,689$ 4,875,103$ 487,093$ Accounts Receivable - 5,588 5,578 10 Due from Other Governments 4,320 4,680 4,320 4,680

Total Assets 334,827$ 5,041,957$ 4,885,001$ 491,783$

LIABILITIES

Accounts Payable 16,357$ 1,733,251$ 1,731,567$ 18,041$ Due to Other Funds - 740,302 740,302 - Due to Other Governments 318,470 4,326,012 4,170,740 473,742

Total Liabilities 334,827$ 6,799,565$ 6,642,609$ 491,783$

REGISTRY OF COURT

ASSETS

Cash 148,099$ 2,229,542$ 2,172,032$ 205,609$

Total Assets 148,099$ 2,229,542$ 2,172,032$ 205,609$

LIABILITIES

Due to Other Governments 148,099$ 1,160,500$ 1,102,990$ 205,609$



Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency FundsFor the fiscal year ended September 30, 2017

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2016 Additions Deletions 2017CHRISTMAS CLUB

ASSETS

Cash 8,891$ 12,420$ 9,785$ 11,526$

Total Assets 8,891$ 12,420$ 9,785$ 11,526$

LIABILITIES

Due to Individuals 8,891$ 12,420$ 9,785$ 11,526$

Total Assets 8,891$ 12,420$ 9,785$ 11,526$

FINES AND FORFEITURES

ASSETS

Cash 355,725$ 2,225,418$ 2,164,434$ 416,709$ Accounts receivable 62 - 62 -

Total Assets 355,787$ 2,225,418$ 2,164,496$ 416,709$

LIABILITIES

Accounts Payable 63,124$ 1,586,737$ 1,594,437$ 55,424$ Due to Other Funds 40,692 686,724 695,698 31,718 Due to Other Governments 251,971 2,349,916 2,272,320 329,567



Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency Funds

For the fiscal year ended September 30, 2017

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(Continued)


2016 Additions Deletions 2017TOTAL - ALL AGENCY FUNDS

ASSETS

Cash 843,222$ 9,499,069$ 9,221,354$ 1,120,937$ Accounts Receivable 62 5,588 5,640 10 Due from Other Governments 4,320 4,680 4,320 4,680

Total Assets 847,604$ 9,509,337$ 9,231,314$ 1,125,627$

LIABILITIES

Accounts Payable 79,481$ 3,319,988$ 3,326,004$ 73,465$ Due to Other Funds 40,692 1,427,026 1,436,000 31,718 Due to Other Governments 718,540 7,836,428 7,546,050 1,008,918 Due to Individuals 8,891 12,420 9,785 11,526

Total Liabilities 847,604$ 12,595,862$ 12,317,839$ 1,125,627$

Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency Funds(Continued)

II - 20

For the fiscal year ended September 30, 2017

CLERK OF THE CIRCUIT COURTHENDRY COUNTY, FLORIDA


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Barbara S. Butler,



In planning and performing our audit of the financial statements, we considered the Clerk's internal controlover financial reporting ("internal control") to determine the audit procedures that are appropriate in thecircumstances for the purpose of expressing our opinions on the financial statements, but not for the purposeof expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly, we do not expressan opinion on the effectiveness of the Clerk’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, ininternal control, such that there is a reasonable possibility that a material misstatement of the entity's financialstatements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is adeficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance.

II - 21

Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be material weaknessesor significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies ininternal control that we consider to be material weaknesses. However, material weaknesses may exist thathave not been identified.

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards issuedby the Comptroller General of the United States, the financial statements of each major fund and the aggregateremaining fund information of the Hendry County, Florida, Clerk of the Circuit Court, (the "Clerk") as of andfor the fiscal year ended September 30, 2017, and the related notes to the financial statements, and have issuedour report thereon dated June 27, 2018, for the purpose of compliance with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits.

Report of Independent Auditor on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of Financial Statements Performed

in Accordance with Government Auditing Standards

Clerk of the Circuit Court




II - 22

As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free frommaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards.

The purpose of this report is solely to describe the scope of our testing of internal control and compliance andthe results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control oron compliance. This report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the entity's internal control and compliance. Accordingly, this communication is notsuitable for any other purpose.


Phone: 941.639.6600Fax: 941.639.6115




We have issued our Report of Independent Auditor on Internal Control over Financial Reporting andCompliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance withGovernment Auditing Standards; and Report of Independent Accountant on an examination conducted inaccordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements inaccordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are datedJune 27, 2018, should be considered in conjunction with this management letter.


Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not correctiveactions have been taken to address findings and recommendations made in the preceding annual financial auditreport. There were no findings and recommendations made in the preceding annual financial audit report.


Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authorityfor the primary government and each component unit of the reporting entity be disclosed in this managementletter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to thefinancial statements.

II - 23

Other Reporting Requirements



We have audited the financial statements of the Hendry County, Florida, Clerk of the Circuit Court (the"Clerk"), as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated June 27, 2018.


We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued bythe Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General.

Additional Matters


II - 24

Financial Management


Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance withprovisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, thathave an effect on the financial statements that is less than material but which warrants the attention of thosecharged with governance. In connection with our audit, we did not have any such findings.

Purpose of the Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, Federal andother granting agencies, the Hendry County Clerk of the Circuit Court, and applicable management, and is notintended to be and should not be used by anyone other than these specified parties.


Phone: 941.639.6600Fax: 941.639.6115




Scope

Opinion


Report of Independent Accountant on Compliance With Local Government Investment Policies, Article V Requirements, and Florida Statute 61.181 Requirements

II - 25


We have examined the Hendry County, Florida Clerk of the Circuit and County Courts’ (the “Clerk’s”)compliance with the local government investment policy requirements of 218.415, Florida Statutes, Article Vrequirements of Sections 28.35 and 28.36, Florida Statutes, and depository requirements for alimonytransactions, support, maintenance and support payments of Section 61.181, Florida Statutes, for the yearended September 30, 2017. Management is responsible for the Clerk’s compliance with those requirements.Our responsibility is to express an opinion on the Clerk’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Instituteof Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about theClerk’s compliance with those requirements and performing such other procedures as we considered necessaryin the circumstances. We believe that our examination provides a reasonable basis for our opinion. Ourexamination does not provide a legal determination on the Clerk’s compliance with specified requirements.

In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the yearended September 30, 2017.

HENDRY COUNTY, FLORIDAPROPERTY APPRAISER

September 30, 2017


Page(s)

Report of Independent Auditor…………………………….…………………………...……… III-1 - III-2


Balance Sheet - Governmental Funds………………………...……………………………… III-3

Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds…………………………...………………………………………… III-4

Notes to Financial Statements………………………….……………………………………… III-5 - III-13


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund…………………………..…………………………… III-14


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..……………….… III-15 - III-16

Independent Auditor's Management Letter……………………………….…………………… III-17 - III-18

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies………………………...……………………………………………… III-19

Table of Contents


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Phillip L. Pelletier,Property AppraiserHendry County, Florida





III-1


We have audited the accompanying financial statements of each major fund and the aggregate remaining fundinformation of the Hendry County, Florida, Property Appraiser, (the "Property Appraiser") as of and for thefiscal year ended September 30, 2017, and the related notes to the financial statements, as listed in the table ofcontents.




Opinions

Emphasis of Matter




III-2


In accordance with Government Auditing Standards , we have also issued our report dated June 25, 2018, onour consideration of the Property Appraiser's internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and other mattersunder the heading INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THEFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITINGSTANDARDS . The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on internalcontrol over financial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards in considering the Property Appraiser's internal control overfinancial reporting and compliance.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of each major fund and the aggregate remaining fund information of the Property Appraiseras of September 30, 2017 and the respective changes in financial position thereof for the fiscal year then endedin conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the financial statements, the financial statements referred to above were preparedsolely for the purpose of complying with Rules of the Auditor General of the State of Florida. In conformitywith the Rules, the accompanying financial statements are intended to present the financial position andchanges in financial position of each fund of Hendry County, Florida that is attributable to the PropertyAppraiser. They do not purport to, and do not, present fairly the financial position of Hendry County, Floridaas of September 30, 2017, and the changes in its financial position for the fiscal year then ended in conformitywith accounting principles generally accepted in the Unites States of America. Our opinions are not modifiedwith respect to this matter.

Other Matters

Special Total General Revenue Governmental

Fund Fund Funds

ASSETS

Cash 169,299$ 146,886$ 316,185$

Total Assets 169,299$ 146,886$ 316,185$

LIABILITIES AND FUND EQUITY

LiabilitiesDue to Board of County Commissioners 159,473$ -$ 159,473$ Accrued Wages 9,826 - 9,826

Total Liabilities 169,299 - 169,299

Fund EquityFund BalanceAssigned - 146,886 146,886

Total Liabilities and Fund Equity 169,299$ 146,886$ 316,185$


Balance Sheet - Governmental FundsSeptember 30, 2017

III-3

Special Total General Revenue Governmental

Fund Fund Funds Revenues

Charges for Services 1,335,827$ 122,713$ 1,458,540$ Miscellaneous 760 514 1,274

Total Revenues 1,336,587 123,227 1,459,814

Expenditures

General GovernmentPersonal Services 1,028,712 95,550 1,124,262 Operating Expenditures 113,857 16,950 130,807 Capital Outlay 34,545 - 34,545

Total Expenditures 1,177,114 112,500 1,289,614

Excess of Revenues over Expenditures 159,473 10,727 170,200

Other financing (uses) sources

Operating transfers out (159,473) - (159,473)

Total other financing (uses) sources (159,473) - (159,473)

Excess of revenues and other sources over (under) expenditures and other uses - 10,727 10,727

Fund balances - October 1, 2016 - 136,159 136,159

Fund balances - September 30, 2017 -$ 146,886$ 146,886$

Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental Funds

III-4




Reporting Entity

(a) Fund Accounting

General Fund

Special Revenue Fund

(b) Measurement Focus, Basis of Accounting, and Financial Statement Presentation



III-5

Under Chapter 192, Florida Statutes, the Property Appraiser is charged with determining the just value of realand tangible personal property located within the County. The Property Appraiser functions as a ConstitutionalCounty Officer subject to the general oversight of the Florida Department of Revenue. The office receivescompensation from several taxing authorities in the County, based on the budget approved by the Departmentof Revenue, as provided in Section 192.091, Florida Statutes.

As required by generally accepted accounting principles, the financial statements of the reporting entityinclude those of the Property Appraiser and its component units. Component units are entities for which thegovernment is considered to be financially accountable. Financial accountability is determined on the basis ofthe Property Appraiser's ability to significantly influence operations, select the governing authority, andparticipate in fiscal management. Based on application of the criteria set forth by the GovernmentalAccounting Standards Board, management has determined that no component units exist which would requireinclusion in these financial statements.

The Property Appraiser is an elected Constitutional Officer of Hendry County (County), a political subdivisionof the State of Florida. The position of Property Appraiser was established by Article VIII, Section 1 (d) of theState of Florida Constitution.

The accounts of the Property Appraiser are organized on the basis of funds, each of which is considered aseparate accounting entity. The operations of each fund are accounted for using a separate set of self-balancingaccounts which comprise its assets, liabilities, fund equities, revenues, and expenditures. The various funds aregrouped by type in the financial statements. The Property Appraiser utilizes the following governmental funds:

The Special Revenue Funds are used to account for proceeds of specific revenue sources that are legallyrestricted to expenditures for specified purposes.

The General Fund is used to account for all revenues and expenditures applicable to the general operationsof the Property Appraiser. All general operating revenues which are not restricted or designated as to use byoutside sources are recorded in the General Fund.


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

(b) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)

Budgetary Requirements

The General Fund budget is prepared on the modified accrual basis of accounting.

1.

2.

3.

A budget was not adopted for the Special Revenue Fund, as it is not required.

Encumbrances

(c) Assets, Liabilities, and Equity


III-6



September 30, 2017

Encumbrance accounting, under which purchase orders and other commitments for the expenditure of moniesare recorded in order to reserve that portion of the applicable appropriation, is not employed by the PropertyAppraiser.

The Property Appraiser's employees accumulate sick and annual leave based on the number of years ofcontinuous service and other criteria. Upon termination of employment, employees generally receive paymentfor accumulated leave.

The budget for the General Fund is adopted on a basis consistent with generally accepted governmentalaccounting principles.

On or before August 15 the Department shall make its final budget amendments or changes to thebudget and shall provide notice thereof to the Property Appraiser and the Board of CountyCommissioners.

On or before June 1 of each year the Property Appraiser shall, concurrently submit an annual budget tothe Florida Department of Revenue and to the Board of County Commissioners. Budgetary control isestablished at the functional level.

The modified accrual basis of accounting is followed by the General Fund and the Special Revenue Fund.Revenues are recognized when they become measurable and available as net current assets. Expenditures aregenerally recognized when the related fund liability is incurred, if measurable, except expenditures for debtservice and other long-term obligations which are recognized when paid.

Expenditures of the General Fund are controlled by appropriations in accordance with the budgetaryrequirements set forth in the Florida Statutes. The budgeted revenues and expenditures in the accompanyingfinancial statements reflect all amendments approved by the State of Florida Department of Revenue.

The Property Appraiser follows these procedures in establishing the budgetary data reflected in the financialstatements:


(c) Assets, Liabilities, and Equity (Continued)

Estimates

Fund Balances

Unassigned: Fund balance that has not been reported in any other classification.

NOTE 2 - CASH AND INVESTMENTS

PROPERTY APPRAISERHENDRY COUNTY, FLORIDA

At September 30, 2017, the book balance of deposits was $316,185 for the Property Appraiser and the bankbalance was $352,943.

When both assigned and unassigned resources are available for use, it is the Property Appraiser's policy to useassigned resources first, then unassigned resources as needed.

III-7

During the fiscal year, cash consisted of an interest-bearing bank account. The funds in the bank account wereentirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer byfinancial institutions which comply with the requirements of Florida statutes and have been designated asqualified public depositories by the State Treasurer.


"Statement of Government Accounting Standards Board Number 16, Accounting for Compensated Absences",requires the compensated absences liability to be measured using the salary rate in effect at the balance sheetdate and requires additional amounts to be accrued for certain salary related payments associated with thepayment of compensated absences. The liability shown in the County's basic financial statements has beenaccrued in accordance with this criteria.

September 30, 2017

The preparation of financial statements in conformity with accounting principles generally accepted in theUnited States of America requires management of the Property Appraiser to make estimates and assumptionsrelating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities as of thedate of the financial statements, and the reported amounts of revenue and expenditures or expenses during thereporting period. Actual results could differ from those estimates.

Florida Statutes authorize the Property Appraiser to invest in the Local Government Surplus Funds Trust Fundadministered by the State Treasurer; negotiable direct obligations of or obligations unconditionally guaranteedby the U.S. Government; interest bearing time deposits or savings accounts in financial institutions located inFlorida and organized under Federal or Florida laws.

The liability shown in the County's financial statement has been accrued in accordance with this criteria. AtSeptember 30, 2017, the Property Appraiser had $80,484 in long-term compensated absences payable.

Assigned: Assigned fund balances are constrained by the Property Appraiser's intent to be used for specificpurposes, but are neither restricted nor committed.

NOTE 3 - AMOUNTS DUE TO FUNDING ENTITIES AND EXCESS FUNDS


Changes in General Long-Term Debt

CompensatedAbsences

General long-term debt at 10/1/2016 73,648$

Increase in accrued compensated absences 6,836

General long-term debt at 9/30/2017 80,484$

NOTE 5 - GENERAL FIXED ASSETS


Plan Description

Tangible personal property used by the Property Appraiser in his operations is shown in the statement of netposition of the Board of County Commissioners. In addition, office space used in the Property Appraiser'soperations is provided at no cost by the Board of County Commissioners.

Changes in the general long-term debt of the Property Appraiser for the year ended September 30, 2017, aresummarized below:

September 30, 2017Notes to Financial Statements

Substantial funding for the operations of the Property Appraiser is provided by the Hendry County Board ofCounty Commissioners. The amount of such funding is estimated in the budgeting process and by Statute, anyexcess of revenues over expenditures which would otherwise exist is returned to the appropriate funding entityand is, therefore, reflected as a liability and an operating transfer out in the accompanying financial statements.

As a general rule, membership in the FRS is compulsory for all employees working in a regularly establishedposition for a state agency, county government, district school board, state university, community college, or aparticipating city or special district within the State of Florida. The FRS provides retirement and disabilitybenefits, annual cost-of-living adjustments (where applicable), and death benefits to plan members andbeneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, FloridaAdministrative Code. Amendments to the law can be made only by an act of the Florida Legislature.

The Property Appraiser's employees participate in the Florida Retirement System (FRS). As provided byChapters 12I and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefitplans administered by the Florida Department of Management Services, Division of Retirement, including theFRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternativeto the FRS Pension Plan, which is administered by the State Board of Administration.

III-8


NOTE 6 - RETIREMENT PLAN - (Continued)

Plan Description - (Continued)

Funding Policy

Funding Policy

Benefits under the Pension Plan are computed on the basis of age, average final compensation, and servicecredit. For Pension Plan members enrolled before July l, 2011, Regular class members who retire at or afterage 62 with at least six years of credited service, or 30 years of service regardless of age, are entitled to aretirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on thefive highest years of salary, for each year of credited service. Vested regular class members with less than 30years of service may retire before age 62 and are entitled to a retirement benefit payable monthly also equal to1.6% of their final average compensation for each year of credited service based on the five highest years ofsalary, with a 5% reduction for each year under age 62. Substantial changes were made to the Pension Planduring fiscal year 2011, affecting new members enrolled on or after July 1, 2011, by extending the vestingrequirement to eight years of credited service and increasing normal retirement to age 65 or 33 years of serviceregardless of age. Also, the final average compensation for these members is based on the eight highest yearsof salary.



III-9

All enrolled members of the FRS Pension Plan are required to contribute 3.0% of their salary to the FRS. Inaddition to member contributions, governmental employers are required to make contributions to the FRSbased on statewide contribution rates. The employer contribution rates by job class for the periods fromOctober 1, 2016 through June 30, 2017 and July 1, 2017 through September 30, 2017, respectively, were asfollows: regular 7.52% and 7.92%; county elected officers 42.47% and 45.50%; senior management 21.77%and 22.71%; special risk 22.57% and 23.27%; special risk administration 28.06% and 34.63%; rehired regularclass 4.49% and 5.16%; and DROP participants 12.99% and 13.26%. During the fiscal year ended September30, 2017, the Property Appraiser contributed to the plan an amount equal to 7.82% of covered payroll.

The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and isadministered by the Florida Department of Management Services, Division of Retirement. Eligible retirees andbeneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service,with a minimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded byrequired contributions from FRS participating employees as set forth by Florida Legislature, based on apercentage of gross compensation for all active FRS members.

For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occursat one year of service. These participants receive a contribution for self-direction in an investment productwith a third party administrator selected by the State Board of Administration. Employer and employeecontributions, including amounts contributed to individual member's accounts, are defined by law, but theultimate benefit depends in part on the performance of investment funds. Benefit terms, including contributionrequirements, for the Investment Plan are established and may be amended by the Florida Legislature. TheInvestment Plan is funded with the same employer and employee contribution rates that are based on salaryand membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.


Funding Policy - (Continued)

The Property Appraiser recognizes pension expenditures in an amount equal to amounts paid to the PensionPlan, the HIS Plan and the defined contribution plan, amounting to $35,603, $12,524 and $65,246,respectively, for the fiscal year ended September 30, 2017. The Property Appraiser's payments after June 30,2017, the measurement date used to determine the net pension liability associated with the Pension Plan andHIS Plan, amounted to $22,667, and $3,252, respectively. The Property Appraiser is not legally required to anddoes not accumulate expendable available resources to liquidate the retirement obligation related to itsemployees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows arepresented on the government-wide financial statements of the County, following requirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No.27 , and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the MeasurementDate - an amendment of GASB Statement No. 68, effective October 1, 2014.

Contributions are directed to individual member accounts, and the individual members allocate contributionsand account balances among various approved investment choices. Costs of administering the plan, includingthe FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payrollfrom by forfeited benefits of plan members.




REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

III-10


Plan Description



Membership


Active Employees 18 Eligible Retirees - Covered Spouses -

Funding Policy

III-11


In accordance with Section 112.0801, Florida Statutes, because the Property Appraiser provides medical plansto employees of the Property Appraiser and their eligible dependents, the Property Appraiser is also requiredto provide retirees the opportunity to participate in the group employee health plan. Retirees participating inthe group insurance plans offered by the County are required to contribute 100% of the active participants.

September 30, 2017



Regular Class and Elected Officials - For employees enrolled in FRS prior to July 1, 2011, age 62, and 6years of service or 30 years of service, regardless of age, is normal retirement, respectively. Employees mayretire early at age 43 and 6 years of service. For employees enrolled in FRS on or after July 1, 2011, age 65,and 8 years of service or 33 years of service, regardless of age, is normal retirement, respectively.Employees may retire early at age 43 and 8 years of service.

Special Risk - For employees enrolled in FRS prior to July 1, 2011, age 55 and 6 years of service or 25years of special risk service, regardless, of age is normal retirement. Employees may retire early at age 36and 6 years of service. For employees enrolled in FRS on or after July 1, 2011, age 60 and 8 years ofservice or 30 years of special risk service, regardless of age, is normal retirement. Employees may retireearly at 36 and 8 years of service.

Funding for this plan is on a pay-as-you-go basis. The Program is currently unfunded. There is no separatetrust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for thispurpose. Currently, the Property Appraiser has no employees receiving benefits.

NOTE 7 - OTHER POST-EMPLOYMENT BENEFITS - (Continued)


Annual Percentage ofOPEB Employer OPEB Cost Net OPEB

Fiscal Year Ended Cost Contributed Contributed Obligation

September 30, 2017 $ 18,493 $ 4,550 24.6% $ 96,966 September 30, 2016 $ 16,497 $ 4,255 25.8% $ 95,584 September 30, 2015 $ 15,865 $ 4,123 26.0% $ 81,123


Actuarial Accrued Liability (AAL) $ 125,432 Actuarial Value of Plan Assets - Unfunded Actuarial Accrued Liability (AAL) $ 125,432

Covered Payroll 494,470$

Ration of UAAL to Covered Payroll 25.4%



PROPERTY APPRAISER

Hendry County had an actuarial valuation performed for the plan as of October 1, 2016 to determine thefunded status of the plan as of that date, as well as the employer's annual required contribution (ARC) for thefiscal year ended September 30, 2017. The Property Appraiser's annual OPEB cost for the fiscal year was$18,493. The Property Appraiser's annual OPEB cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation from 2017 is as follows:


The Property Appraiser is involved from time to time in certain routine litigation, the substance of which aseither liabilities or recoveries, would not materially affect the financial position of the Property Appraiser.Much of the present litigation involves appraised value issues, which depending on the final resolution, effectfees earned by the Property Appraiser and/or the loss or recovery of legal fees. The Property Appraiser is notin a position at this time to predict the final outcome of the lawsuits and claims or the exact amount of costsand/or potential recovery. The Property Appraiser plans to vigorously contest these matters unless first settled.

III-12




III-13


September 30, 2017



The Property Appraiser participates in the County-wide insurance program. The Hendry County, Florida,Board of County Commissioners is a member of Public Risk Management (PRM), a local government liabilityrisk pool.

Charges to operating departments are based upon amounts believed by management to meet the requiredannual payout during the fiscal year and to pay for the estimated operating costs of the program and forpremiums for third party carrier insurance plans. For fiscal year ended September 30, 2017, the PropertyAppraiser was charged $223,215.


REQUIRED

INFORMATIONSUPPLEMENTARY



RevenuesCharges for Services 1,300,332$ 1,335,826$ 1,335,827$ 1$ Miscellaneous - - 760 760

Total Revenues 1,300,332 1,335,826 1,336,587 761

ExpendituresGeneral Government

Personal Services 1,048,067 1,084,361 1,028,712 55,649 Operating Expenditures 155,365 141,175 113,857 27,318 Capital Outlay 21,200 34,590 34,545 45 Non-Operating 75,700 75,700 - 75,700


Excess of revenues over expenditures - - 159,473 159,473

Other financing sources (uses)Operating transfers out - - (159,473) (159,473)

Total other financing sources (uses) - - (159,473) (159,473)


Fund balances - October 1, 2016 - - - -

Fund balances - September 30, 2017 -$ -$ -$ -$

Budget and ActualFor the Fiscal Year Ended September 30, 2017

III-14


GENERAL FUNDSchedule of Revenues, Expenditures and Changes in Fund Balances-


Phone: 941.639.6600Fax: 941.639.6115



A deficiency in internal control exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, ininternal control, such that there is a reasonable possibility that a material misstatement of the entity's financialstatements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is adeficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yetimportant enough to merit attention by those charged with governance.

Report of Independent Auditor on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

We have audited, in accordance with the auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards issued by theComptroller General of the United States, the financial statements of the major fund and the aggregateremaining fund information of the Hendry County, Florida, Property Appraiser, (the "Property Appraiser") asof and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, and haveissued our report thereon dated June 25, 2018, for the purpose of compliance with Section 218.39(2), FloridaStatutes, and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits.

In planning and performing our audit of the financial statements, we considered the Property Appraiser'sinternal control over financial reporting ("internal control") to determine the audit procedures that areappropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but notfor the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control.Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control.

Our consideration of internal control was for the limited purpose described in the first paragraph of this sectionand was not designed to identify all deficiencies in internal control that might be material weaknesses orsignificant deficiencies. Given these limitations, during our audit we did not identify any deficiencies ininternal control that we consider to be material weaknesses. However, material weaknesses June exist thathave not been identified.

III-15




As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are freefrom material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards .


III-16

This report is intended solely for the information and use of the Property Appraiser's management, the HendryCounty, Florida, Board of County Commissioners and the Florida Auditor General and is not intended to beand should not be used by anyone other than these specified parties.


Phone: 941.639.6600Fax: 941.639.6115



We have issued our Report of Independent Auditor on Internal Control over Financial Reporting andCompliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance withGovernment Auditing Standards; and Independent Accountant's Examination Report on an examinationconducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliancerequirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reportsand schedule, which are dated June 25, 2018, should be considered in conjunction with this management letter.



Official Title and Legal AuthoritySection 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authorityfor the primary government and each component unit of the reporting entity be disclosed in this managementletter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to thefinancial statements.

III-17


We have audited the financial statements of the Hendry County, Florida, Property Appraiser, as of and for thefiscal year ended September 30, 2017, and have issued our report thereon dated June 25, 2018.





Financial ManagementSection 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations toimprove financial management. In connection with our audit, we did not have any such recommendations.

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we communicate noncompliance withprovisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, thathave an effect on the financial statements that is less than material but which warrants the attention of thosecharged with governance. In connection with our audit, we did not have any such findings.


Our management letter is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federaland other granting agencies, the Hendry County, Florida, Property Appraiser, and applicable management, andis not intended to be and should not be used by anyone other than these specified parties.

III-18

Additional Matters


Phone: 941.639.6600Fax: 941.639.6115



Scope

Opinion


III-19

Report of Independent Accountant on Compliance WithLocal Government Investment Policies

We have examined the Hendry County, Florida, Property Appraiser's (the "Property Appraiser") compliancewith the local government investment policy requirements of Section 218.415, Florida Statutes, during theyear ended September 30, 2017. Management is responsible for the Property Appraiser's compliance withthose requirements. Our responsibility is to express an opinion on the Property Appraiser's compliance basedon our examination.

Our examination was conducted in accordance with attestation standards established by the American Instituteof Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about theProperty Appraiser's compliance with those requirements and performing such other procedures as weconsider necessary in the circumstances. We believe that our examination provides a reasonable basis for ouropinion. Our examination does not provide a legal determination on the Property Appraiser's compliance withspecified requirements.

In our opinion, the Hendry County, Florida, Property Appraiser complied, in all material respects, with theaforementioned requirements for the year ended September 30, 2017.

HENDRY COUNTY, FLORIDASHERIFF

September 30, 2017


Page(s)

Report of Independent Auditor……………………………………………....………………… IV-1 - IV-3


Balance Sheet - Governmental Funds…………………………………………………..….… IV-4

Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds……………………………………..………………………………… IV-5

Statement of Fiduciary Assets and Liabilities- All Agency Funds………………………….… IV-6

Notes to Financial Statements……………………….………………………………………… IV-7 - IV-16


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund, Non-GAAP Basis…………………………………… IV-17


Combining Balance Sheet - Non-major Governmental Funds…………………..…………… IV-18

Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non-major Governmental Funds………………………….……………………………… IV-19

Combining Statement of Fiduciary Assets and Liabilities - Agency Funds…………………… IV-20 - IV-21

Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds……… IV-22 - IV-25


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..…………….…… IV-26 - IV-27

Independent Auditor's Management Letter………………………………..…………………… IV-28 - IV-29

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies………………………………...……………………………………… IV-30

Table of Contents


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Steve Whidden,SheriffHendry County, Florida





We have audited the accompanying financial statements of each major fund and the aggregate remaining fundinformation of the Hendry County, Florida, Sheriff, (the "Sheriff") as of and for the fiscal year endedSeptember 30, 2017, and the related notes to the financial statements, as listed in the table of contents.





IV-1

Opinions

Emphasis of Matter


Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Sheriff’s basic financial statements. The combining financial statements listed in the OtherFinancial Information section of the table of contents are presented for purposes of additional analysis and arenot a required part of the basic financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of each major fund and the aggregate remaining fund information of the Sheriff as ofSeptember 30, 2017 and the respective changes in financial position thereof for the fiscal year then ended inconformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the financial statements, the financial statements referred to above were preparedsolely for the purpose of complying with Rules of the Auditor Gneral of the State of Florida. In conformitywith the Rules, the accompanying financial statements are intended to present the financial position andchanges in financial position of each fund of Hendry County, Florida that is attributable to the Sheriff. Theydo not purport to, and do not, present fairly the financial position of Hendry County, Florida as of September30, 2017, and the changes in its financial position for the fiscal year then ended in conformity with accountingprinciples generally accepted in the Unites States of America. Our opinions are not midified with respect tothis matter.

Other Matters

Accounting principles generally accepted in the United States of America require that the budgetarycomparison information, as listed in the table of contents, be presented to supplement the financial statements.Such information, although not a part of the financial statements, is required by the Governmental AccountingStandards Board, who considers it to be an essential part of financial reporting for placing the financialstatements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generallyaccepted in the United States of America, which consisted of inquiries of management about the methods ofpreparing the information and comparing the information for consistency with management's responses to ourinquiries, the financial statements, and other knowledge we obtained during our audit of the financialstatements. We do not express an opinion or provide any assurance on the information because the limitedprocedures do not provide us with sufficient evidence to express an opinion or provide any assurance.


IV-2



In accordance with Government Auditing Standards , we have also issued our report dated June 26, 2018, onour consideration of the Sheriff's internal control over financial reporting and on our tests of its compliancewith certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and complianceand the results of that testing, and not to provide an opinion on internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the Sheriff's internal control over financial reporting and compliance.

IV-3

TotalNon-Major Governmental

General Commissary Governmental Funds

ASSETSCash 1,093,538$ 392,786$ 47,801$ 1,534,125$ Accounts Receivable - 27,224 - 27,224 Due from other Governments 85,916 - - 85,916

Total Assets 1,179,454$ 420,010$ 47,801$ 1,647,265$


Liabilities Accounts Payable 467,316$ 2,186$ -$ 469,502$ Accrued Liabilities 712,181 - - 712,181 Deferred Revenue 29,331 - - 29,331 Due to Board of County Commissioners 300,000 - - 300,000

Total Liabilities 1,508,828 2,186 - 1,511,014

Fund EquityFund Balance

Assigned (329,374) - 47,801 (281,573) Restricted - 417,824 - 417,824

Total Fund Equity (329,374) 417,824 47,801 136,251

Total Liabilities and Fund Equity 1,179,454$ 420,010$ 47,801$ 1,647,265$

See accompanying notes.IV-4



TotalGeneral Non-Major Governmental Fund Commissary Governmental Funds

RevenuesIntergovernmental 339,474$ -$ -$ 339,474$ Charges for Services 311,052 - 14,627 325,679 Fines and Forfeitures - - 3,473 3,473 Interest 1,016 395 27 1,438 Commission - 197,926 - 197,926 Miscellaneous 66,498 - - 66,498

Total Revenues 718,040 198,321 18,127 934,488

ExpendituresLaw Enforcement

Personnel Services 7,509,414 - - 7,509,414 Operating Expenditures 1,656,326 - 8,666 1,664,992 Capital Outlay 53,701 - - 53,701 Debt Service

Principal 312,108 - - 312,108 Interest 44,141 - - 44,141

CorrectionsPersonnel Services 2,654,661 59,800 - 2,714,461 Operating Expenditures 810,850 59,270 - 870,120 Capital Outlay 67,299 10,851 - 78,150

JudicialPersonnel Services 214,706 - - 214,706

Total Expenditures 13,323,206 129,921 8,666 13,461,793

Excess of Revenues Over (Under)Expenditures (12,605,166) 68,400 9,461 (12,527,305)

Other Financing Sources and (Uses)Proceeds from sale of capital assets 37,741 - - 37,741 Operating Transfers in 12,238,051 - - 12,238,051 Operating Transfers out - - - -

Total other Financing Sources (Uses) 12,275,792 - - 12,275,792

Excess of Revenues and Other SourcesOver (Under) Expenditures and Other Uses (329,374) 68,400 9,461 (251,513)

Fund Balance - October 1, 2016 - 349,424 38,340 387,764

Fund Balance - September 30, 2017 (329,374)$ 417,824$ 47,801$ 136,251$

See accompanying notes.IV-5


Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental FundsFor the Fiscal Year Ended September 30, 2017

Agency Funds

ASSETSCash 175,651$ Accounts Receivable -

Total assets 175,651$

LIABILITIESDue to Other Governments 6,135$ Due to Other Funds 36,262 Due to Individuals 133,254

Total Liabilities 175,651$


Statement of Fiduciary Assets and Liabilities- Agency FundsSeptember 30, 2017

IV-6


Reporting Entity

(a) Fund Accounting

Governmental Funds

General Fund


Fiduciary Funds

Agency Funds

September 30, 2017


The Agency Funds are used to account for assets held by public officials in a trustee capacity or as an agent forindividuals, private organizations, other governments and/or other funds.

IV-7

As required by accounting principles generally accepted in the United States of America, the financial statementsof the reporting entity include those of the Sheriff and its component units. Component units are entities forwhich the government is considered to be financially accountable. Financial accountability is determined on thebasis of the Sheriff's ability to significantly influence operations, select the governing authority and participate infiscal management.

Based on the application of the criteria set forth by the Governmental Accounting Standards Board, managementhas determined that no component units exist which would require inclusion in these financial statements.

The accounts of the Sheriff are organized on the basis of funds, each of which is considered a separateaccounting entity. The operations of each fund are accounted for with a separate set of self-balancing accountsthat comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate. The various funds aregrouped by type in the financial statements. The Sheriff utilizes the following funds:

Special Revenue Funds are operating funds used to account for revenues (other than expendable trusts or capitalprojects), the use of which is restricted or designated. The Commissary Fund is used to account for the receiptsand disbursements relating to the inmates of the Hendry County Jail. This fund is restricted to purchases of itemsfor the benefit of the inmates.

The General Fund is used to account for all revenues and expenditures applicable to the general operations of theSheriff which are not properly accounted for in another fund. All operating revenues, which are not specificallyrestricted or designated as to use, are recorded in the General Fund. Excess revenues at the end of the year, dueback to the Board of County Commissioners, are shown as operating transfers out.

The Sheriff is an elected constitutional officer of Hendry County, a political subdivision of the State of Florida.The position of Sheriff was established by Article VIII, Section 1(d) of the Constitution of the State of Florida.

The duties and responsibilities of the Sheriff are concerned with law enforcement, judicial process andcorrections. The operations are financed by appropriations made by the Board of County Commissionerspursuant to the approved budget.

Notes to Financial StatementsSHERIFF


(b) Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Governmental Funds

Basis of Accounting

1. Principal and interest on general long-term debt, which is recognized when due; and2. Expenditures are not divided between years by the recording of prepaid expenses.

Budgetary Process

Encumbrances

(c) Assets, Liabilities, and Equity

Capital Assets

September 30, 2017


Chapter 30, of the Florida Statutes, governs the preparation, adoption and administration process of the District'sannual budget. A budget is only required to be prepared for the General Fund. The budget and amendments, ifany, for the General Fund are required to be submitted to and approved by the Board of County Commissioners.The budget is prepared on the modified accrual basis. The level of control for appropriations is exercised at thefunctional level.

IV-8

The General Fund and Special Revenue Funds are accounted for on a "spending" or "financial flow"measurement focus. This means that only current assets and current liabilities are generally included on thebalance sheet. Accordingly, the reported undesignated fund balance (net current assets) is considered a measureof available, spendable or appropriable resources. General operating statements present increases (revenues andother financing sources) and decreases (expenditures and other financing uses) in net current assets.

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in thefinancial statements. Basis of accounting relates to the timing of the measurements made, regardless of themeasurement focus applied. All governmental and agency funds are accounted for using the modified accrualbasis of accounting. All revenues are recognized when they become measurable and available as net currentposition.


As the Sheriff's Office does not have a legally adopted budget for the Commissary Special Revenue fund, abudgetary comparison for this fund is not presented.

SHERIFFNotes to Financial Statements

Acquisitions of tangible personal property are recorded as expenditures at the time of purchase. These assets arereported to the Board of County Commissioners and are recorded in the County's basic financial statements.

Encumbrance accounting, under which purchase orders and other commitments for the expenditure of monies arerecorded in order to reserve that portion of the applicable appropriation, is not employed by the Sheriff.



Fund Balances

Assigned fund balances are fund balances intended to be used for specific purposes, but which are neitherrestricted nor committed.

Unassigned fund balances represent the residual positive fund balance within the General Fund, which has notbeen assigned to other funds and has not been restricted, committed or assigned. In funds other than the GeneralFund, unassigned fund balances are limited to negative residual balances. As of September 30, 2017, the Sheriffhad no unassigned fund balances because all excess revenues within the general fund are required to be remittedto the Board and there were no negative residual balances in the special revenue fund.

Committed fund balances are fund balances constrained for specific purposes imposed by the Sheriff’s formalaction of highest level of decision making authority. As of September 30, 2017, the Sheriff had no committedfund balances.

Restricted fund balances are fund balance amounts that are constrained for specific purposes which are externallyimposed by creditors, grantors, contributors, or laws or regulations or imposed by law through constitutionalprovisions or enabling legislation. As of September 30, 2017, the Sheriff had $392,786 in restricted cash in theCommissary Special Revenue. This amount is restricted to purchases of items for the benefit of the inmates atHendry County Jail.

IV-9

When both assigned and unassigned resources are available for use, it is the Sheriff's policy to use assignedresources first, then unassigned resources as needed.

Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending ofthese fund balances.


It is the Sheriff's policy to permit employees to accumulate a limited amount of earned, but unused, sick andannual leave, which will be paid upon separation of service. Vacation is accrued as a liability when benefits areearned by the employee. The Sheriff uses the vesting method to accrue sick leave liability. The vesting methodaccrues sick leave liability for employees who are currently eligible to receive termination payments uponseparation as well as those expected to become eligible in the future.


September 30, 2017

Statement of Governmental Accounting Standards Board No. 16, "Accounting for Compensated Absences",requires the compensated absences liability to be measured using the salary rate in effect at the balance sheet dateand requires additional amounts to be accrued for certain salary related payments associated with the payment ofcompensated absences. The liability shown in the financial statements of Hendry County has been accrued inaccordance with this criteria.

As of September 30, 2017, the Sheriff had long-term compensated absences payable of $1,126,715. This amountis reported in the government-wide financial statements of Hendry County, Florida.


Estimates


Cash

Investments


Changes in general fixed assets are as follows: Beginning

Balance Ending Balance

10/1/2016 Increases Decreases 9/30/2017 Equipment 6,049,245$ 131,851$ (199,819)$ 5,981,277$ Less: Accumulated Depreciation (4,384,595) (574,939) 188,011 (4,771,523)

Total Equipment being depreciated, net 1,664,650$ (443,088)$ (11,808)$ 1,209,754$

NOTE 4 - COMMITMENTS AND CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies,principally the State of Florida. Any disallowed claims, including amounts already collected, may constitute aliability of the applicable fund. The amount, if any, of expenditures which may be disallowed by the grantorcannot be determined at this time although the District expects such amounts, if any, to be immaterial.


The preparation of financial statements in conformity with accounting principles generally accepted in the UnitedStates of America requires management of the Sheriff to make estimates and assumptions relating to thereporting of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of thefinancial statements, and the reported amounts of revenue and expenditures or expenses during the reportingperiod. Actual results could differ from those estimates.


At September, 30 2017, the carrying amount of the Sheriff's deposits was $1,713,755 and the bank balance was$1,932,519. The Sheriff held petty cash on hand as of September 30, 2017 in the amount of $10,102. Thesedeposits were entirely covered during the year and at year-end by federal depository insurance or by collateralpursuant to the Public Depository Act of the State of Florida (Florida Statute Chapter 280). All Sheriffdepositories are banks designated as qualified depositories by the State Treasurer.

IV-10

Florida Statutes authorize the Sheriff to invest in the Local Government Surplus Funds Trust Fund administeredby the State Treasurer; negotiable direct obligations of or obligations unconditionally guaranteed by the U.S.Government; interest-bearing time deposits or savings accounts in financial institutions located in Florida andorganized under Federal or Florida laws; securities of any open-end or closed-end management type investmentcompany or investment trust registered under the Investment Act of 1940 provided the portfolio is limited toUnited States Government obligations. The Sheriff did not have any investments during the year or at year end.

NOTE 4 - COMMITMENTS AND CONTINGENCIES - (Continued)

NOTE 5- LONG-TERM LIABILITIES

Long-term liabilities are comprised of the following as of September 30, 2017:

Capital Leases

20,800$

14,861

131,773

262,747

Total Capital Leases 430,181


1,126,715

Net OPEB Obligation

1,017,145

TOTAL LONG-TERM LIABILITIES 2,574,041$

IV-11

The Sheriff, in accordance with the normal conduct of its affairs, is involved in various judgments, claims andlitigations. It is expected that the final settlement of these matters will not materially affect the financialstatements of the Sheriff.

Employees of the Sheriff's Office are entitled to paid sick time, personal and comp time based onlength of service and job classification.


On January 7, 2015 the Sheriff entered into a leasing agreement for one 2015 Ford InterceptorSUV for $51,293 bearing interest at a rate of 6.50%, requiring quarterly payments of $3,666.Final payment due January 7, 2019.

On May 20, 2016 the Sheriff entered into a leasing agreement for nine police interceptor sedansfor $405,912 bearing interest at a rate of 13.30%, requiring quarterly payments of $27,061. Finalpayment due June 1, 2020.

SHERIFF

On January 23, 2015 the Sheriff entered into a leasing agreement for van for the jail for $36,649bearing interest at a rate of 6.50%, requiring quarterly payments of $2,620. Final payment dueJanuary 23, 2019.

On January 7, 2015 the Sheriff entered into a leasing agreement for eight police interceptor sedans for $324,959 bearing interest at a rate of 6.50%, requiring quarterly payments of $23,228. Finalpayment due January 7, 2019.


Cumulative difference between annual OPEB cost and District payments toward the cost of postemployment benefits other than pensions since GASB No. 45 transition date of October 1, 2008.

REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK

NOTE 5- LONG-TERM LIABILITIES - (Continued)

The annual debt service requirements at September 30, 2017, were as follows:

Principal Interest Total205,358$ 20,941$ 226,299$ 153,164 14,108 167,272 71,659 9,524 81,183

430,181 44,573$ 474,754$

Compensated Absences 1,126,715 Net OPEB Obligation 1,017,145 TOTAL LONG-TERM LIABILITIES 2,574,041$

Beginning EndingBalance Balance Due Within

10/1/2016 Additions Reductions 9/30/2017 One YearCapital Leases 742,289$ -$ (312,108)$ 430,181$ 205,358$ Other Post Employment Benefits 829,432 187,713 - 1,017,145 - Compensated absences 1,155,947 - (29,232) 1,126,715 -

2,727,668$ 187,713$ (341,340)$ 2,574,041$ 205,358$

Changes in long-term liabilities for the year ended September 30, 2017, was as follows:

REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK

IV-12

SHERIFFHENDRY COUNTY, FLORIDA


Year EndingSeptember 30,

201820192020

Total Capital leases


Plan Description

Funding Policy

As a general rule, membership in the FRS is compulsory for all employees working in a regularly establishedposition for a state agency, county government, district school board, state university, community college, or aparticipating city or special district within the State of Florida. The FRS provides retirement and disabilitybenefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits areestablished by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to thelaw can be made only by an act of the Florida Legislature.


September 30, 2017

IV-13

All enrolled members of the FRS Pension Plan are required to contribute 3.0% of their salary to the FRS. Inaddition to member contributions, governmental employers are required to make contributions to the FRS basedon statewide contribution rates. The employer contribution rates by job class for the periods from October 1,2016 through June 30, 2017 and July 1, 2017 through September 30, 2017, respectively, were as follows: regular7.52% and 7.92%; county elected officers 42.47% and 45.50%; senior management 21.77% and 22.71%; specialrisk 22.57% and 23.27%; special risk administration 28.06% and 34.63%; rehired regular class 4.49% and5.16%; and DROP participants 12.99% and 13.26%. During the fiscal year ended September 30, 2016, theSheriff contributed to the plan an amount equal to 16.41% of covered payroll.


The Sheriff's employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administeredby the Florida Department of Management Service, Division of Retirement, including the FRS Pension Plan("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section 121.4501, FloridaStatutes, the FRS also provides a defined contribution plan ("Investment Plan") alternative to the FRS PensionPlan, which is administered by the State Board of Administration.

Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit.For Pension Plan members enrolled before July l, 2011, Regular class members who retire at or after age 62 withat least six years of credited service, or 30 years of service regardless of age are entitled to a retirement benefitpayable monthly for life, equal to 1.6% of their final average compensation based on the five highest years ofsalary, for each year of credited service. Vested regular class members with less than 30 years of service mayretire before age 62 and are entitled to a retirement benefit payable monthly also equal to 1.6% of their finalaverage compensation for each year of credited service based on the five highest years of salary, with a 5%reduction for each year under age 62. Substantial changes were made to the Pension Plan during fiscal year 2011,affecting new members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years ofcredited service and increasing normal retirement to age 65 or 33 years of service regardless of age. Also, thefinal average compensation for these members is based on the eight highest years of salary.

The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and isadministered by the Florida Department of Management Services, Division of Retirement. Eligible retirees andbeneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service, with aminimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded by requiredcontributions from FRS participating employees as set forth by Florida Legislature, based on a percentage ofgross compensation for all active FRS members.


www.dms.myflorida.com/retirement

NOTE 7 - RELATED PARTY TRANSACTIONS


For those members who elect participation in the Investment plan, rather than the Pension Plan, vesting occurs atone year of service. These participants receive a contribution for self-direction in an investment product with athird party administrator selected the State Board of Administration. Employer and employee contributions,including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefitdepends in part on the performance of investment funds. Benefit terms, including contribution requirements, forthe Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan isfunded with the same employer and employee contribution rates that are based on salary and membership class(Regular Class, Elected County Officers, etc.) as the FRS defined benefit plan. Contributions are directed toindividual member accounts, and the individual members allocate contributions and account balances amongvarious approved instrument choices. Costs of administering the plan, including the FRS Financial GuidanceProgram, are funded through an employer contribution of 0.06 percent of payroll by forfeited benefits of planmembers.

The Sheriff recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the HISPlan, and the defined contribution plan, amounting to $871,985, $113,948, and $302,389, respectively, for thefiscal year ended September 30, 2017. The Sheriff's payments after June 30, 2017, the measurement date used todetermine net pension liability associated with the Pension Plan and the HIS Plan, amounted to $266,842 and$29,041, respectively. The Sheriff is not legally required to and does not accumulate expendable availableresources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government-wide financial statements ofthe County, following requirements of GASB No. 68, Accounting and Financial Reporting for Pensions- anamendment of GASB No. 27, and GASB No. 71, Pension Transition for Contributions Made Subsequent to theMeasurement Date- an amendment of GASB No. 68, effective October 1, 2014.



The pool provides coverage for, liability, public officials liability automobile physical damage, general liability,and automobile liability. The costs of the property and casualty insurance and workers' compensation areaccounted for in the General Fund of the Board of County Commissioners.

The Sheriff is exposed to various risk of loss related to torts; theft of, or damage to, and destruction of assets;errors and omissions; injuries to employees; and natural disasters. The Sheriff is a member of a public entity riskpool which is a cooperative group of governmental entities joining together to finance an exposure, liability, orrisk.

The Sheriff is a constitutional county officer whose appropriations are approved by the Board of CountyCommissioners. The Board has agreed to provide certain operating expenditures for the Sheriff. The Board paidall property and casualty insurance and workers' compensation premiums for the Sheriff.

The State of Florida annually issues a publicly available financial report that includes financial statements andrequired supplementary information for the FRS. The latest available report may be obtained by writing to theState of Florida, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the Web site:

IV-14

http://www.dms.myflorida.com/retirement

NOTE 8 - RISK MANAGEMENT - (Continued)


Plan Description



Membership


Active Employees 126 Eligible Retirees 27 Covered Spouses 1

Funding Policy

In accordance with Section 112.0801, Florida Statutes, because the Sheriff provides medical plans to employeesof the Sheriff and their eligible dependents, the Sheriff is also required to provide retirees the opportunity toparticipate in the group employee health plan. Retirees participating in the group insurance plans offered by theCounty are required to contribute 100% of the active participants.

Employees of the County and all constitutional officers who were participants in the existing medical plan at thetime of retirement are entitled to participate in the Plan.

Regular Class and Elected Officials - For employees enrolled in FRS prior to July 1, 2011, age 62, and 6 yearsof service or 30 years of service, regardless of age, is normal retirement, respectively. Employees may retire earlyat age 43 and 6 years of service. For employees enrolled in FRS on or after July 1, 2011, age 65, and 8 years ofservice or 33 years of service, regardless of age, is normal retirement, respectively. Employees may retire early atage 43 and 8 years of service.

Special Risk - For employees enrolled in FRS prior to July 1, 2011, age 55 and 6 years of service or 25 years ofspecial risk service, regardless, of age is normal retirement. Employees may retire early at age 36 and 6 years ofservice. For employees enrolled in FRS on or after July 1, 2011, age 60 and 8 years of service or 30 years ofspecial risk service, regardless of age, is normal retirement. Employees may retire early at 36 and 8 years ofservice.

The Sheriff provides hospitalization and medical coverage through the Public Risk Management of FloridaGroup Health Trust. A loss fund is established to pay a self-insured retention amount of $50,000 per person. Anyclaims in excess of this limit are paid by aggregate and stop loss insurance.



Funding for this plan is on a pay-as-you-go basis. The Program is currently unfunded. There is no separate trustthrough which benefits for retirees are funded. No assets are currently accumulated or earmarked for thispurpose. Currently, the Sheriff has no employees receiving benefits.

IV-15

NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS - (Continued)


Annual Percentage ofOPEB Employer OPEB Cost Net OPEBCost Contributed Contributed Obligation193,982$ 47,725$ 24.6% 1,017,145$ 143,157$ 36,923$ 25.8% 829,432$ 137,449$ 35,719$ 26.0% 702,810$


Actuarial Accrued Liability (AAL) 1,315,749$ Actuarial Value of Plan Assets -

Unfunded Actuarial Accrued Liability (AAL) 1,315,749$

Covered Payroll 5,186,858$



NOTE 10 - DEFICIT FUND BALANCE & OVER EXPENDITURE OF BUDGET

September 30, 2017

IV-16

Hendry County had an actuarial valuation performed for the plan as of October 1, 2016 to determine the fundedstatus of the plan as of that date, as well as the employer's annual required contribution (ARC) for the fiscal yearended September 30, 2017. The Sheriff's annual OPEB cost for the fiscal year was $193,982. The Sheriff'sannual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligationfrom 2017 is as follows:

Fiscal Year Ended

September 30, 2016September 30, 2015



Normal cost and the allocation of benefit values between service rendered before and after the valuation date wasdetermined using the Entry Age Normal Actuarial Cost Method. The rate of return on investment under the pay-as-you-go approach is 4.0%, compounded annually. Salaries are assumed to increase between 3.7% and 7.8%depending on the members age and service. Salary increase assumptions are the salary increase assumptionsused in the most recent Actuarial Valuation of the Florida Retirement System (FRS).

As of September 30, 2017, the general fund reported a deficit fund balance of $329,000. The deficit fund balance is attributed to unanticipated staff costs related to Hurricane Irma. The Sheriff has applied for FEMA reimbursement, however, due to the timing of the storm, the Sheriff was unable to amend his budget for the receipt of the award. The Hendry County Board of County Commissioners, in antipacation of the Sheriff receiving FEMA aide, has agreed to provide the Sheriff temporary assistance for this amount.

REQUIREDSUPPLEMENTARY

INFORMATION

OriginalBudget

FinalBudget Actual

Variance with Final Budget

Positive (Negative)

RevenuesIntergovernmental -$ 339,459$ 339,474$ 15$ Charges for Services - 311,052 311,052 - Miscellaneous - 67,213 67,514 301

Total Revenues - 717,724 718,040 316

ExpendituresLaw Enforcement

Personnel Services 7,022,410 7,902,738 7,509,414 393,324 Operating Expenditures 1,221,215 1,315,114 1,656,326 (341,212) Capital Outlay 262,085 262,085 53,701 208,384 Debt Service 85,000 85,000 356,249 (271,249) Contingency 30,000 30,000 - 30,000

Total Law Enforcement 8,620,710 9,594,937 9,575,690 19,247

CorrectionsPersonnel Services 2,509,683 2,542,373 2,654,661 (112,288) Operating Expenditures 798,200 818,265 810,850 7,415 Capital Outlay 28,500 56,983 67,299 (10,316) Contingency 20,000 20,000 - 20,000

Total Corrections 3,356,383 3,437,621 3,532,810 (95,189)

JudicialPersonal Services 260,958 260,958 214,706 46,252 Operating Expenditures - - - - Capital Outlay - - - -

Total Judicial 260,958 260,958 214,706 46,252 Total Expenditures 12,238,051 13,293,516 13,323,206 (29,690)

Excess of Revenues Over (Under) Expenditures (12,238,051) (12,575,792) (12,605,166) (29,374)

Other Financing Sources (Uses)Proceeds From Sale of Capital Assets - 37,741 37,741 - Operating Transfers In 12,238,051 12,238,051 12,238,051 - Operating Transfers Out - - - -

Total Other Financing Sources (Uses) 12,238,051 12,275,792 12,275,792 -

Excess of Revenues and Other SourcesOver (Under) Expenditures and Other Uses - (300,000) (329,374) (29,374)

Fund Balance - October 1, 2016 - - - - Fund Balance - September 30, 2017 -$ (300,000)$ (329,374)$ (29,374)$

IV-17


Schedule of Revenues, Expenditures and Changes in Fund Balances

For the Fiscal Year Ended September 30, 2017Budget and Actual - General Fund, Non-GAAP Basis

OTHERFINANCIAL

INFORMATION

TotalEquitable Non-MajorSharing Gun Governmental

Training Program Range FundsASSETS

Cash 5,000$ 2,723$ 40,078$ 47,801$

Total assets 5,000$ 2,723$ 40,078$ 47,801$

FUND EQUITY

Fund Balances Assigned 5,000$ 2,723$ 40,078$ 47,801$

Total Fund Equity 5,000$ 2,723$ 40,078$ 47,801$

September 30, 2017

IV-18


Combining Balance SheetNon-Major Governmental Funds

TotalEquitable Non-MajorSharing Gun Governmental

Training Program Range Funds

RevenuesCharges for Services -$ -$ 14,627$ 14,627$ Collections 3,473 - - 3,473 Interest 3 6 18 27

Total Revenues 3,476 6 14,645 18,127

ExpendituresOperating Expenses 5,453 - 3,213 8,666

Total Expenditures 5,453 - 3,213 8,666

Excess of Revenues Over(Under) Expenditures (1,977) 6 11,432 9,461

Fund Balances - October 1, 2016 6,977 2,717 28,646 38,340

Fund Balances - September 30, 2017 5,000$ 2,723$ 40,078$ 47,801$

For the Year Ended September 30, 2017

IV-19


Combining Statement of Revenues, Expenditures, and Changes in Fund BalanceNon-Major Governmental Funds

Mounted Impound Special Relief EmployeePatrol Fees Fund Fund Fund

ASSETS

Cash 349$ 6,135$ 5,366$ 1,882$ 18,323$ Accounts Receivable - - - - -

Total Assets 349$ 6,135$ 5,366$ 1,882$ 18,323$

LIABILITIES

Due to Other Governments -$ 6,135$ -$ -$ -$ Due to Other Funds - - - - - Due to Individuals 349 - 5,366 1,882 18,323

Total Liabilities 349$ 6,135$ 5,366$ 1,882$ 18,323$


Combining Statement of Fiduciary Assets and Liabilities- Agency FundsSeptember 30, 2017

IV-20

Inmate TotalFine Operating D.A.R.E Explorer Auxiliary Fidicuary

Suspense and Cost Account Program Program Fund Fund

48,681$ 50$ 63,897$ 19,683$ 2,999$ 8,286$ 175,651$ - - - - - - -

48,681$ 50$ 63,897$ 19,683$ 2,999$ 8,286$ 175,651$

-$ -$ -$ -$ -$ -$ 6,135$ - - 36,262 - - - 36,262

48,681 50 27,635 19,683 2,999 8,286 133,254

48,681$ 50$ 63,897$ 19,683$ 2,999$ 8,286$ 175,651$

IV-21

of 4

Balance BalanceSeptember 30, September 30,

2016 Additions Deductions 2017

Mounted Patrol

AssetsCash 349$ 45$ 45$ 349$

Total assets 349$ 45$ 45$ 349$

LiabilitiesDue to Individuals 349$ 45$ 45$ 349$

Total Liabilities 349$ 45$ 45$ 349$

Impound Fees

AssetsCash 6,217$ 2,989$ 3,071$ 6,135$

Total assets 6,217$ 2,989$ 3,071$ 6,135$

LiabilitiesDue to Other Governments 6,217$ 2,989$ 3,071$ 6,135$

Total Liabilities 6,217$ 2,989$ 3,071$ 6,135$

Special Fund

AssetsCash 71$ 5,340$ 45$ 5,366$

Total assets 71$ 5,340$ 45$ 5,366$

Liabilities Due to Individuals 71$ 5,340$ 45$ 5,366$

Total Liabilities 71$ 5,340$ 45$ 5,366$


Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency FundsFor the Year Ended September 30, 2017

IV-22

of 4



Relief Fund

AssetsCash 1,881$ 46$ 45$ 1,882$

Total assets 1,881$ 46$ 45$ 1,882$

LiabilitiesDue to Individuals 1,881$ 46$ 45$ 1,882$

Total Liabilities 1,881$ 46$ 45$ 1,882$

Employee Flower Fund

AssetsCash 16,393$ 23,946$ 22,016$ 18,323$

Total assets 16,393$ 23,946$ 22,016$ 18,323$

LiabilitiesDue to Individuals 16,393$ 23,946$ 22,016$ 18,323$


Suspense

AssetsCash 29,980$ 119,028$ 100,327$ 48,681$

Total assets 29,980$ 119,028$ 100,327$ 48,681$




Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds - (Continued)

IV-23


of 4



Fine and Cost

AssetsCash 50$ 45$ 45$ 50$

Total assets 50$ 45$ 45$ 50$

LiabilitiesDue to Individuals 50$ 45$ 45$ 50$

Total Liabilities 50$ 45$ 45$ 50$

Inmate Operating

AssetsCash 32,559$ 448,899$ 417,561$ 63,897$ Accounts Receivable 1,619 - 1,619 -

Total assets 34,178$ 448,899$ 419,180$ 63,897$

LiabilitiesDue to Other Funds 21,289$ 120,781$ 105,808$ 36,262$ Due to Individuals 12,889 326,412 311,666 27,635


D.A.R.E. Program

AssetsCash 3,643$ 27,812$ 11,772$ 19,683$

Total assets 3,643$ 27,812$ 11,772$ 19,683$




Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds - (Continued)

IV-24


of 4



Explorer Program

AssetsCash 5,903$ 5,741$ 8,645$ 2,999$

Total assets 5,903$ 5,741$ 8,645$ 2,999$

LiabilitiesDue to Individuals 5,903$ 5,741 8,645 2,999$


Auxiliary Fund

AssetsCash 8,282$ 4$ -$ 8,286$

Total assets 8,282$ 4$ -$ 8,286$

LiabilitiesDue to Individuals 8,282$ 4$ -$ 8,286$

Total Liabilities 8,282$ 4$ -$ 8,286$

Totals - Agency Funds

AssetsCash 105,328$ 633,895$ 563,572$ 175,651$ Accounts Receivable 1,619 - 1,619 -

Total assets 106,947$ 633,895$ 565,191$ 175,651$

LiabilitiesDue to Other Governments 6,217$ 2,989$ 3,071$ 6,135$ Due to Other Funds 21,289 120,781 105,808 36,262 Due to Individuals 79,441 508,419 454,606 133,254



Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds - (Continued)For the Year Ended September 30, 2017

IV-25


Phone: 941.639.6600Fax: 941.639.6115



Our consideration of internal control was for the limited purpose described in the first paragraph of this sectionand was not designed to identify all deficiencies in internal control that might be material weaknesses orsignificant deficiencies. Given these limitations, during our audit we did not identify any deficiencies ininternal control that we consider to be material weaknesses. However, material weaknesses may exist thathave not been identified.

IV-26




We have audited, in accordance with the auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards issued by theComptroller General of the United States, the financial statements of each major fund and the aggregateremaining fund information of the Hendry County, Florida, Sheriff, (the "Sheriff") as of and for the fiscal yearended September 30, 2017, and the related notes to the financial statements, and have issued our report thereondated June 26, 2018, for the purpose of compliance with Section 218.39(2), Florida Statutes, and Chapter10.550, Rules of the Auditor General-Local Governmental Entity Audits.

In planning and performing our audit of the financial statements, we considered the Sheriff's internal controlover financial reporting ("internal control") to determine the audit procedures that are appropriate in thecircumstances for the purpose of expressing our opinions on the financial statements, but not for the purposeof expressing an opinion on the effectiveness of the Sheriff’s internal control. Accordingly, we do not expressan opinion on the effectiveness of the Sheriff’s internal control.




As part of obtaining reasonable assurance about whether the Sheriff’s financial statements are free frommaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards .


IV-27

This report is intended solely for the information and use of the Sheriff's management, the Hendry County,Florida, Board of County Commissioners and the Florida Auditor General and is not intended to be and shouldnot be used by anyone other than these specified parties.


Phone: 941.639.6600Fax: 941.639.6115




We have audited the financial statements of the Hendry County, Florida, Sheriff, as of and for the fiscal yearended September 30, 2017, and have issued our report thereon dated June 26, 2018.




We have issued our Report of Independent Auditor on Internal Control over Financial Reporting andCompliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance withGovernment Auditing Standards; and Independent Accountant's Examination Report on an examinationconducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliancerequirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reportsand schedule, which are dated June 26, 2018, should be considered in conjunction with this management letter.




Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authorityfor the primary government and each component unit of the reporting entity be disclosed in this managementletter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to thefinancial statements.

IV-28



Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisionsof contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have aneffect on the financial statements that is less than material but which warrants the attention of those chargedwith governance. In connection with our audit of the Sheriiff, see finding 2017 - 01 as presented on the


Our management letter is solely for the information and use of the Legislative Auditing Committee, membersof the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and othergranting agencies, the Hendry County, Florida, Sheriff, and applicable management, and is not intended to beand should not be used by anyone other than these specified parties.

IV-29

Additional Matters



Phone: 941.639.6600Fax: 941.639.6115



Scope

Opinion


IV-30


We have examined the Hendry County, Florida, Sheriff's (the "Sheriff") compliance with the localgovernment investment policy requirements of Section 218.415, Florida Statutes, during the year endedSeptember 30, 2017. Management is responsible for the Sheriff's compliance with those requirements. Ourresponsibility is to express an opinion on the Sheriff's compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Instituteof Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about theSheriff's compliance with those requirements and performing such other procedures as we consider necessaryin the circumstances. We believe that our examination provides a reasonable basis for our opinion. Ourexamination does not provide a legal determination on the Sheriff's compliance with specified requirements.

In our opinion, the Hendry County, Florida, Sheriff complied, in all material respects, with the aforementionedrequirements for the year ended September 30, 2017.

HENDRY COUNTY, FLORIDASUPERVISOR OF ELECTIONS

September 30, 2017


Page(s)

Report of Independent Auditor………………………………...……….……………………… V-1 - V-2


Balance Sheet - Governmental Funds…………………………………………..………….… V-3

Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds…………………………………..…………………………………… V-4

Notes to Financial Statements………………………….……………………………………… V-5 - V-12


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund……………………..………………………………… V-13


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..………………… V-14 - V-15

Independent Auditor's Management Letter……………………...…………………………… V-16 - V-17

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies………………………….…………………………………………… V-18

Table of Contents


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Brenda K. Hoots,Supervisor of ElectionsHendry County, Florida





V-1


We have audited the accompanying financial statements of each major fund and the aggregate remaining fundinformation of the Hendry County, Florida, Supervisor of Elections, (the "Supervisor of Elections") as of andfor the fiscal year ended September 30, 2017, and the related notes to the financial statements, as listed in thetable of contents.




Opinions

Emphasis of Matter



Accounting principles generally accepted in the United States of America require that the budgetarycomparison information on page 13 be presented to supplement the financial statements. Such information,although not a part of the financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the financial statements in anappropriate operational, economic, or historical context. We have applied certain limited procedures to therequired supplementary information in accordance with auditing standards generally accepted in the UnitedStates of America, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management's responses to our inquiries, thefinancial statements, and other knowledge we obtained during our audit of the financial statements. We do notexpress an opinion or provide any assurance on the information because the limited procedures do not provideus with sufficient evidence to express an opinion or provide any assurance.

V-2


In accordance with Government Auditing Standards, we have also issued our report dated June 25, 2018, onour consideration of the Supervisor of Election's internal control over financial reporting and on our tests ofits compliance with certain provisions of laws, regulations, contracts, and grant agreements and other mattersunder the heading Independent Auditor's Report on Internal Control over Financial Reporting and onCompliance and Other Matters Based on an Audit of the Financial Statements Preformed in Accordance withGovernment Auditing Standards . The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to provide an opinionon internal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Supervisor of Election'sinternal control over financial reporting and compliance.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of each major fund and the aggregate remaining fund information of the Supervisor ofElections as of September 30, 2017 and the respective changes in financial position thereof for the fiscal yearthen ended in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the financial statements, the financial statements referred to above were preparedsolely for the purpose of complying with Rules of the Auditor General of the State of Florida. In conformitywith the Rules, the accompanying financial statements are intended to present the financial position andchanges in financial position of each fund of Hendry County, Florida that is attributable to the Supervisor ofElections. They do not purport to, and do not, present fairly the financial position of Hendry County, Floridaas of September 30, 2017, and the changes in its financial position for the fiscal year then ended in conformitywith accounting principles generally accepted in the Unites States of America. Our opinions are not modifiedwith respect to this matter.

Other Matters

Federal Total Election Governmental

General Fund Activities Fund Funds

ASSETS

Cash 44,164$ 4,783$ 48,947$ Due from the Board of County

Commissioners - - -

Total assets 44,164$ 4,783$ 48,947$


Liabilities Accrued liabilities 44,164$ -$ 44,164$ Unearned Revenue - 4,741 4,741

Total liabilities 44,164 4,741 48,905

Fund equity

Fund balance - 42 42

Total fund equity - 42 42

Total liabilities and fund equity 44,164$ 4,783$ 48,947$

V-3

Governmental Funds



Federal Total Election Governmental

General Fund Activities Fund FundsRevenues

Intergovernmental -$ 3,000$ 3,000$ Miscellaneous 1,432 - 1,432 Interest 190 8 198

Total revenues 1,622 3,008 4,630

ExpendituresGovernmental expenditures 491,204 3,000 494,204

Excess of revenues under expenditures (489,582) 8 (489,574)

Other financing sources (uses)Operating transfers in 531,191 - 531,191 Operating transfers out (41,609) - (41,609)

Total other financing sources (uses) 489,582 - 489,582

Excess of revenues and other sourcesover (under) expenditures and other uses - 8 8

Fund balance - October 1, 2016 - 34 34

Fund balance - September 30, 2017 -$ 42$ 42$

V-4


Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental FundsFor the Fiscal Year Ended September 30, 2017


Financial Reporting Entity

Fund Accounting

General Fund


Basis of Accounting

V-5

As required by accounting principles generally accepted in the United States of America, the financialstatements of the reporting entity include those of the Supervisor of Elections and its component units.Component units are entities for which the government is considered to be financially accountable. Financialaccountability is determined on the basis of the Supervisor of Elections' ability to significantly influenceoperations, select the governing authority, and participate in fiscal management. Based on application of thecriteria set forth by the Governmental Accounting Standards Board, management has determined that nocomponent units exist which would require inclusion in these financial statements.

The accounts of the Supervisor of Elections are organized on the basis of funds, each of which is considered aseparate accounting entity. The operations of each fund are accounted for using a separate set of self-balancing accounts which comprise its assets, liabilities, fund equities, revenues, and expenditures.

The General Fund is used to account for all revenues and expenditures applicable to the general operations ofthe Supervisor of Elections. All general operating revenues which are not restricted or designated as to use byoutside sources are recorded in the General Fund.

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legallyrestricted to expenditures for specified purposes.




The Supervisor of Elections is an elected Constitutional Officer of Hendry County ("County"), a politicalsubdivision of the State of Florida. The position of Supervisor of Elections was established by Article VIII,Section 1 (d) of the State of Florida Constitution. The general powers and responsibilities of the Supervisor ofElections are specified in Chapters 97 through Florida Statutes. The Supervisor of Elections is charged withthe conduct of elections within the County, except certain independent special district elections separatelyprovided for by special acts. The operations are financed by appropriations made by the Board of CountyCommissioners pursuant to the approved budget.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)

Basis of Accounting, (Continued)

Budgetary Requirements

1.

2.

3.

4. Prior to October 1, the budget is legally enacted by the Board.

Encumbrances




All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues arerecognized when they become measurable and available as net current assets. Expenditures are generallyrecognized when the related fund liability is incurred, if measurable, except expenditures for debt service, andother long-term obligations which are recognized when paid.

Expenditures of the General Fund are controlled by appropriations in accordance with the budgetaryrequirements set forth in the Florida Statutes. The budgeted revenues and expenditures in the accompanyingfinancial statements reflect all amendments approved by the Board of County Commissioners.

The Supervisor of Elections follows these procedures in establishing the budgetary data reflected in thefinancial statements:

On or before June 1 of each year the Supervisor of Elections shall submit to the Board of CountyCommissioners a tentative budget for the ensuing fiscal year. Budgetary control is established at the fundlevel.

Public hearings are held by the Board to obtain taxpayer comments and possible adjustments by theBoard.

The Board of County Commissioners may amend, modify, increase, or reduce any or all items ofexpenditures in the proposed budget submitted by the Supervisor of Elections by giving written noticesof its actions, after approval of the budget.

Encumbrance accounting, under which purchase orders and other commitments for the expenditure of moniesare recorded in order to reserve that portion of the applicable appropriation, is not employed monies arerecorded in order to reserve that portion of the applicable appropriation, is not employed by the Supervisor ofElections.

It is the Supervisor of Election's policy to permit employees to accumulate a limited amount of earned, butunused, vacation and sick leave, which will be paid upon separation of service. Vacation is accrued as aliability when benefits are earned by the employee. The Supervisor of Elections uses the vesting method inaccruing sick leave liability. The vesting method accrues sick leave liability for employees who are currentlyeligible to receive termination payments upon separation, as well as those expected to become eligible in thefuture. For the fiscal year ended September 30, 2017, the amount of accrued compensated absences was$19,116.

V-6


Compensated Absences, (Continued)


NOTE 3 - AMOUNT TO BE REMITTED TO BOARD OF COUNTY COMMISSIONERS




"Statement of Government Accounting Standards Board Number 16, Accounting for CompensatedAbsences", requires the compensated absences liability to be measured using the salary rate in effect at thebalance sheet date and requires additional amounts to be accrued for certain salary related paymentsassociated with the payment of compensated absences. The liability shown in the Board's financial statementhas been accrued in accordance with this criteria.

During the fiscal year, cash consisted of interest-bearing bank accounts. The funds in the bank accounts wereentirely covered by Federal Depository Insurance Corporation or by a collateral pool pledged to the StateTreasurer by financial institutions which comply with the requirements of Florida statutes and have beendesignated as qualified public depositories by the State Treasurer.

Florida Statutes authorize the Supervisor of Elections to invest in the Local Government Surplus Funds TrustFund administered by the State Treasurer; negotiable direct obligations of or obligations unconditionallyguaranteed by the U.S. Government; interest bearing time deposits or savings accounts in financial institutionslocated in Florida and organized under Federal or Florida laws.

At September, 30 2017, the carrying amount of the Supervisor of Elections' deposits was $48,947 and thebank balance was $71,030. These deposits were entirely covered during the year and year-end by federaldepository insurance or by collateral pursuant to the Florida Security for Public Deposits Act of the State ofFlorida (Florida Statutes Chapter 280). The banks used by the Supervisor are banks designated as qualifieddepositories by the State Treasurer.

Funding for the operations of the Supervisor of Elections, accounted for in the General Fund, is provided bythe Hendry County Board of County Commissioners. The amount of such funding is estimated in thebudgeting process and by Statute, any excess of revenues and transfers over expenditures in the General Fundare returned to the Board of County Commissioners. Such excess, if any, is reflected as an operating transferout in the accompanying financial statements.

Tangible personal property used by the Supervisor of Elections is shown in the statement of net position ofthe Board of County Commissioners. In addition, office space used in the Supervisor of Elections' operationsis provided at no cost by the Board of County Commissioners.

V-7


Plan Description

Funding Policy

The Supervisor of Elections' employees participate in the Florida Retirement System (FRS). As provided byChapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefitplans administered by the Florida Department of Management Service, Division of Retirement, including theFRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternativeto the FRS Pension Plan, which is administered by the State Board of Administration.



As a general rule, membership in the FRS is compulsory for all employees working in a regularly establishedposition for a state agency, county government, district school board, state university, community college, or aparticipating city or special district within the State of Florida. The FRS provides retirement and disabilitybenefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits areestablished by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments tothe law can be made only by an act of the Florida Legislature.

Benefits under the Pension Plan are computed on the basis of age, average final compensation, and servicecredit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or afterage 62 with at least six years of credited service, or 30 years of service regardless of age are entitled to aretirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on thefive highest years of salary, for each year of credited service. Vested regular class members with less than 30years of service may retire before age 62 and are entitled to a retirement benefit payable monthly also equal to1.6% of their final average compensation for each year of credited service based on the five highest years ofsalary, with a 5% reduction for each year under age 62. Substantial changes were made to the Pension Planduring fiscal year 2011, affecting new members enrolled on or after July 1, 2011 by extending the vestingrequirement to eight years of credited service and increasing normal retirement to age 65 or 33 years ofservice regardless of age. Also, the final average compensation for these members is based on the eighthighest years of salary.

All enrolled members of the FRS Pension Plan are required to contribute 3.0% of their salary to the FRS. Inaddition to member contributions, governmental employers are required to make contributions to the FRSbased on statewide contribution rates. The employer contribution rates by job class for the periods fromOctober 1, 2016 through June 30, 2017 and July 1, 2017 through September 30, 2017, respectively, were asfollows: regular 7.52% and 7.92%; county elected officers 42.47% and 45.50%; senior management 21.77%and 22.71%; and DROP participants 12.99% and 13.26%. During the fiscal year ended September 30, 2017,the Supervisor of Elections contributed to the plan an amount equal to 20.69% of covered payroll.

The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and isadministered by the Florida Department of Management Services, Division of Retirement. Eligible retireesand beneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditableservice, with a minimum payment of $30 and a maximum payment of $150 per month.

V-8

NOTE 5 - RETIREMENT PLAN, (Continued)

The HIS Plan is funded by required contributions from FRS participating employees as set forth by FloridaLegislature, based on a percentage of gross compensation for all active FRS members.



For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occursat one year of service. These participants receive a contribution for self-direction in an investment productwith a third party administrator selected by the State Board of Administration. Employer and employeecontributions, including amounts contributed to individual member's accounts, are defined by law, but theultimate benefit depends in part on the performance of investment funds. Benefit terms, including contributionrequirements, for the Investment Plan are established and may be amended by the Florida Legislature. TheInvestment Plan is funded with the same employer and employee contribution rates that are based on salaryand membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.Contributions are directed to individual member accounts, and the individual members allocate contributionsand account balances among various approved investment choices. Costs of administering the plan, includingthe FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payrollby forfeited benefits of plan members. The Supervisor of Elections does not participate in the Investment Plan.

V-9

The Supervisor of Elections recognizes pension expenditures in an amount equal to amounts paid to thePension Plan and the HIS Plan amounting to $51,683, and $3,738, respectively, for the fiscal year endedSeptember 30, 2017. The Supervisor of Elections' payments after June 30, 2017, the measurement date used todetermine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $14,645 and$615 respectively. The Supervisor of Elections is not legally required to and does not accumulate expendableavailable resources to liquidate the retirement obligation related to its employees. Accordingly, the netpension liability and associated deferred outflows and deferred inflows are presented on the government-widefinancial statements of the County, following requirements of GASB Statement No. 68, Accounting andFinancial Reporting for Pensions - an amendment of GASB Statement No. 27, and GASB Statement No. 71,Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASBStatement No. 68, effective October 1, 2014 .


THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK


Plan Description



Membership


Active Employees 5Eligible Retirees -Covered Spouses -

Funding Policy

Funding for this plan is on a pay-as-you-go basis. The Program is currently unfunded. There is no separatetrust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for thispurpose. Currently, the Supervisor of Elections has no employees receiving benefits.

V-10

In accordance with Section 112.0801, Florida Statutes, because the Supervisor of Elections provides medicalplans to employees of the Supervisor of Elections and their eligible dependents, the Supervisor of Electionsrequired to provide retirees the opportunity to participate in the group employee health plan. Retireesparticipating in the group insurance plans offered by the County are required to contribute 100% of the activeparticipants.


Regular Class and Elected Officials - For employees enrolled in FRS prior to July 1, 2011, age 62, and 6years of service or 30 years of service, regardless of age, is normal retirement, respectively. Employees mayretire early at age 43 and 6 years of service. For employees enrolled in FRS on or after July 1, 2011, age 65,and 8 years of service or 33 years of service, regardless of age, is normal retirement, respectively. Employeesmay retire early at age 43 and 8 years of service.

Special Risk - For employees enrolled in FRS prior to July 1, 2011, age 55 and 6 years of service or 25 yearsof special risk service, regardless, of age is normal retirement. Employees may retire early at age 36 and 6years of service. For employees enrolled in FRS on or after July 1, 2011, age 60 and 8 years of service or 30years of special risk service, regardless of age, is normal retirement. Employees may retire early at 36 and 8years of service.




Percentage ofAnnual Employer OPEB Cost Net OPEB

Fiscal Year Ended OPEB Cost contributed Contributed Obligation

September 30, 2017 6,080$ 1,496$ 24.6% 31,882$ September 30, 2016 4,885$ 1,260$ 25.8% 28,302$ September 30, 2015 5,111$ 1,328$ 26.0% 26,132$


Actuarial Accrued Liability (AAL) 41,242$ Actuarial Value of Plan Assets - Unfunded Actuarial Accrued Liability (AAL) 41,242$





V-11

September 30, 2017

Hendry County had an actuarial valuation performed for the plan as of October 1, 2016 to determine thefunded status of the plan as of that date, as well as the employer's annual required contribution (ARC) for thefiscal year ended September 30, 2017. The Supervisor of Elections' annual OPEB cost for the fiscal year was$6,080. The Supervisor of Elections' annual OPEB cost, the percentage of annual OPEB cost contributed tothe plan, and the net OPEB obligation from 2017 is as follows:




The Supervisor participates in the County-wide insurance program. The Hendry County, Florida, Board ofCounty Commissioners is a member of Public Risk Management (PRM), a local government liability risk pool.




V-12


Charges to operating departments are based upon amounts believed by management to meet the requiredannual payout during the fiscal year and to pay for the estimated operating costs of the program and forpremiums for third party carrier insurance plans. For fiscal year ended September 30, 2017, the Supervisorwas charged $44,022.

REQUIREDSUPPLEMENTARY

INFORMATION

Variance with Final Budget


RevenuesMiscellaneous -$ -$ 1,432$ 1,432$ Interest - - 190 190

Total revenues - - 1,622 1,622

ExpendituresGovernmental expenditures 526,379 531,191 491,204 39,987

Excess of revenues over (under) expenditures (526,379) (531,191) (489,582) 41,609

Other financing sources (uses)Operating transfers in 526,379 531,191 531,191 - Operating transfers out - - (41,609) (41,609)

Total other financing sources (uses) 526,379 531,191 489,582 (41,609)


Fund balance - October 1, 2016 - - - -

Fund balance - September 30, 2017 -$ -$ -$ -$

V-13


Schedule of Revenues, Expenditures and Changes in Fund Balances

For the Fiscal Year Ended September 30, 2017Budget and Actual - General Fund


Phone: 941.639.6600Fax: 941.639.6115



Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be material weaknessesor significant deficiencies.

V-14

Given these limitations, during our audit we did not identify any deficiencies in internal control that weconsider to be material weaknesses. However, material weaknesses may exist that have not been identified.

A deficiency in internal control exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, ininternal control, such that there is a reasonable possibility that a material misstatement of the entity's financialstatements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is adeficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance.

Report of Independent Auditor on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of Financial

Statements Performed in Accordance with Government Auditing Standards

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards issuedby the Comptroller General of the United States, the financial statements of each major fund and theaggregate remaining fund information of the Hendry County, Florida, Supervisor of Elections, (the"Supervisor of Elections") as of and for the fiscal year ended September 30, 2017, and the related notes to thefinancial statements, and have issued our report thereon dated June 25, 2018.

p g p g , pinternal control over financial reporting ("internal control") to determine the audit procedures that areappropriate in the circumstances for the purpose of expressing our opinions on the financial statements, butnot for the purpose of expressing an opinion on the effectiveness of the Supervisor of Elections' internalcontrol. Accordingly, we do not express an opinion on the effectiveness of the Supervisor of Elections'internal control.




As part of obtaining reasonable assurance about whether the Supervisor of Elections' financial statements arefree from material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements, noncompliance with which could have a direct and materialeffect on the determination of financial statement amounts. However, providing an opinion on compliancewith those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.The results of our tests disclosed no instances of noncompliance or other matters that are required to bereported under Government Auditing Standards.


V-15

This report is intended solely for the information and use of the Supervisor of Elections' management, theHendry County, Florida, Board of County Commissioners and the Florida Auditor General and is not intendedto be and should not be used by anyone other than these specified parties.


Phone: 941.639.6600Fax: 941.639.6115



Management Letter

We have audited the financial statements of the Hendry County, Florida, Supervisor of Elections, as of and forthe fiscal year ended September 30, 2017, and have issued our report thereon dated June 25, 2018.


We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued bythe Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General .


We have issued our Report of Independent Auditor on Internal Control over Financial Reporting andCompliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance withGovernment Auditing Standards; and Independent Accountant's Report on an examination conducted inaccordance with AICPA A Professional Standards, AT-C Section 315, regarding compliance requirements inaccordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule,which are dated June 25, 2018, should be considered in conjunction with this management letter.


Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not correctiveactions have been taken to address findings and recommendations made in the preceding annual financialaudit report. There were no findings and recommendations made in the preceding annual financial audit report.


Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legalauthority for the primary government and each component unit of the reporting entity be disclosed in thismanagement letter, unless disclosed in the notes to the financial statements. This information is disclosed inthe notes to the financial statements.

V-16


Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations toimprove financial management. In connection with our audit, we did not have any such recommendations.

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisionsof contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have aneffect on the financial statements that is less than material but which warrants the attention of those chargedwith governance. In connection with our audit, we did not have any such findings.


Our management letter is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federaland other granting agencies, the Hendry County, Florida, Supervisor of Elections, and applicablemanagement, and is not intended to be and should not be used by anyone other than these specified parties.

V-17

Additional Matters

Financial Condition and Management


Phone: 941.639.6600Fax: 941.639.6115



Scope

Opinion


V-18


We have examined the Hendry County, Florida, Supervisor of Election's (the "Supervisor of Elections")compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, for the yearended September 30, 2017. Management is responsible for the Supervisor of Elections' compliance with thoserequirements. Our responsibility is to express an opinion on the Supervisor of Elections' compliance based onour examination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Supervisor of Election's compliance with those requirements and performing such other proceduresas we consider necessary in the circumstances. We believe that our examination provides a reasonable basisfor our opinion. Our examination does not provide a legal determination on the Supervisor of Election'scompliance with specified requirements.

In our opinion, the Hendry County, Florida, Supervisor of Elections complied, in all material respects, withthe aforementioned requirements for the year ended September 30, 2017.

HENDRY COUNTY, FLORIDATAX COLLECTOR

September 30, 2017


Page(s)

Report of Independent Auditor…………………………….…………………..……………… VI-1 - VI-3


Balance Sheet - Governmental Funds……………………………………………………..… VI-4

Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds……………………………...……………………………………… VI-5

Statement of Fiduciary Assets and Liabilities- Agency Funds………………………….…… VI-6

Notes to Financial Statements……………………………………………………...………… VI-7 - VI-14


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund…………………………..…………………………… VI-15


Combining Statement of Fiduciary Assets and Liabilities - Agency Funds…………………… VI-16

Combining Statement of Changes in Assets and Liabilities - All Agency Funds…………… VI-17 - VI-19


Report of Independent Auditor on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ……..………………… VI-20 - VI-21

Independent Auditor's Management Letter………………………………..………………… VI-22 - VI-23

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies…………………………...…………………………………………… VI-24

Table of Contents


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Patrick B. Langford,Tax CollectorHendry County, Florida





We have audited the accompanying financial statements of the major fund and the aggregate remaining fundinformation of the Hendry County, Florida, Tax Collector, (the "Tax Collector") as of and for the fiscal yearended September 30, 2017, and the related notes to the financial statements, as listed in the table of contents.





VI-1

Opinions

Emphasis of Matter


Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Tax Collector’s basic financial statements. The combining financial statements listed in the OtherFinancial Information section of the table of contents are presented for purposes of additional analysis and arenot a required part of the basic financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of each major fund and the aggregate remaining fund information of the Tax Collector as ofSeptember 30, 2017 and the respective changes in financial position thereof for the fiscal year then ended inconformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the financial statements, the financial statements referred to above were preparedsolely for the purpose of complying with Rules of the Auditor Gneral of the State of Florida. In conformitywith the Rules, the accompanying financial statements are intended to present the financial position andchanges in financial position of each fund of Hendry County, Florida that is attributable to the Tax Collector.They do not purport to, and do not, present fairly the financial position of Hendry County, Florida as ofSeptember 30, 2017, and the changes in its financial position for the fiscal year then ended in conformity withaccounting principles generally accepted in the Unites States of America. Our opinions are not midified withrespect to this matter.

Other Matters



VI-2



In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2018, onour consideration of the Tax Collector's internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the Tax Collector's internal control over financial reportingand compliance.

VI-3

ASSETS

Cash 199,159$ Due from other funds 46,231 Due from other governments 43,684

Total Assets 289,074$

LIABILITIES

Accounts payable 7,245$ Accrued expenses 33,774 Due to other governments 248,055

Total Liabilities 289,074$

See accompanying note

VI-4



General Fund

Revenue

Charges for services 1,723,731$ Miscellaneous 10,661

Total Revenue 1,734,392

Expenditures

General GovernmentPersonal service 1,417,395 Operating expense 106,389 Capital outlay -

Total Expenditures 1,523,784

Excess of revenues over expenditures

Other financing sources (uses)Operating transfers out (210,608)

Total other financing sources (uses) (210,608)

Excess of revenue and other sources over (under) expenditures and other uses -

Fund balance - October 1, 2016 -

Fund balance - September 30, 2017 -$


Statement of Revenue, Expenditures, and Change in Fund Balance - Governmental FundsFor the Fiscal Year Ended September 30, 2017

VI-5


Agency Funds

ASSETS

Cash 1,384,446$ Due to other funds 675

Total Assets 1,385,121$

LIABILITIES

Due to Board of County Commissioners 38,125$ Due to other funds 46,906 Due to other governments 352,171 Due to individuals 361,464 Deposits 586,455

Total Liabilities 1,385,121$


Statement of Fiduciary Assets and Liabilities - Agency FundsSeptember 30, 2017

VI-6



The following is a summary of the more significant accounting principles and policies:

Defining the Governmental Reporting Entity

Fund Accounting

The following fund types are utilized by the Tax Collector:

General Fund -

Agency Funds -

Measurement Focus

General Fund -


VI-7

The General Fund is used to account for all revenues and expenditures applicable to the general operationsof the Tax Collector, which are not properly accounted for in another fund. All operating revenues, whichare not specifically restricted or designated as to use, are recorded in the General Fund. Excess revenues atthe end of the year, due back to the Board of County Commissioners, are shown as operating transfers out.

The Agency Funds are used to account for assets held by public officials in a trustee capacity or as anagent for individuals, private organizations, other governments and/or other funds.

The General Fund is accounted for on a "spending" or "financial flow" measurement focus. This meansthat only current assets and current liabilities are generally included on the balance sheet. Accordingly, thereported undesignated fund balance (net current assets) is considered a measure of available, spendable orappropriable resources. General operating statements present increases (revenues and other financingsources) and decreases (expenditures and other financing uses) in net current assets.


The Tax Collector, as an elected constitutional officer was established by the Constitution of the State ofFlorida, Article VIII, Section 1 (d). As such, the Tax Collector's special purpose financial statements areincluded in the government wide financial statements of Hendry County, the primary government. Acomponent unit is a legally separate organization for which the elected officials of the primary government arefinancially accountable. Based on the criteria established by Statement of Governmental AccountingStandards Board Number 14, "Financial Reporting Entity", there are no component units included in the TaxCollector's financial statements.

The accounts of the Tax Collector are organized on the basis of funds, each of which is considered a separateaccounting entity. The operations of each fund are accounted for with a separate set of self-balancing accountsthat comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate. Governmentresources are allocated to, and accounted for, in individual funds, based upon the purposes for which they areto be spent and the means by which spending activities are controlled.


Agency Funds -

Basis of Accounting

1. Principal and interest on general long-term debt, which is recognized when due; and

2. Expenditures are not divided between years by the recording of prepaid expenses.

Budgetary Process

Encumbrances

Fixed Assets





Chapter 195, Florida Statutes, governs the preparation, adoption and amendment process of the Tax Collector'sannual budget. A budget is only required to be prepared for the General Fund. The Tax Collector's budget andamendments are prepared independently of the Board of County Commissioners and are approved by the Stateof Florida Department of Revenue. A copy of the approved budget is provided to the Board of CountyCommissioners.

Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results ofoperations.


Acquisitions of tangible personal property are recorded as expenditures in the General Fund at the time ofpurchase. These assets are reported to the Hendry County, Florida, Board of County Commissioners and arerecorded in the government-wide financial statements of the Board.

VI-8

The Tax Collector's employees accumulate sick and annual leave based on the number of years of continuousservice and other criteria. Upon termination of employment, employees generally receive payment foraccumulated paid time off (PTO).

The budget for the General Fund is prepared on the modified accrual basis of accounting. The annual budgetserves as the legal authorization for expenditures. The level of control for appropriations is exercised at thefunctional level.

Encumbrance accounting, under which purchase orders and other commitments for the expenditure of moniesare recorded in order to reserve that portion of the applicable appropriation, is not employed by the TaxCollector.


Compensated Absences, (Continued)


The Tax Collector held no investments during the fiscal year.


Plan Description



The Tax Collector had $5,430 of cash on hand at September 30, 2017.

The Tax Collector's employees participate in the Florida Retirement System (FRS). As provided by Chapters121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plansadministered by the Florida Department of Management Service, Division of Retirement, including the FRSPension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternativeto the FRS Pension Plan, which is administered by the State Board of Administration.

As a general rule, membership in the FRS is compulsory for all employees working in a regularly establishedposition for a state agency, county government, district school board, state university, community college, or aparticipating city or special district within the State of Florida. The FRS provides retirement and disabilitybenefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits areestablished by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments tothe law can be made only by an act of the Florida Legislature.

VI-9

During the fiscal year, the Tax Collector maintained deposits in interest-bearing savings and checkingaccounts. At September 30, 2017, the bank balance of all accounts was $1,798,393, and the book balance ofdeposits was $1,578,175.

The deposits whose values exceeded the limits of federal depository insurance are entirely insured orcollateralized pursuant to the Public Depository Security Act of the State of Florida, Chapter 280 of theFlorida Statutes.

September 30, 2017

As of September 30, 2017, the Tax Collector had $66,251 in long-term compensated absences payable. Thisamount is reported in the government-wide financial statements of Hendry County, Florida.

Statement of Governmental Accounting Standards Board No. 16, "Accounting for Compensated Absences",requires the compensated absences liability to be measured using the salary rate in effect at the balance sheetdate and requires additional amounts to be accrued for certain salary related payments associated with thepayment of compensated absences. The liability shown in the financial statements of Hendry County has beenaccrued in accordance with this criteria.


Plan Description, (Continued)

Funding Policy

Benefits under the Pension Plan are computed on the basis of age, average final compensation, and servicecredit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or afterage 62 with at least six years of credited service, or 30 years of service regardless of age are entitled to aretirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on thefive highest years of salary, for each year of credited service. Vested regular class members with less than 30years of service may retire before age 62 and are entitled to a retirement benefit payable monthly also equal to1.6% of their final average compensation for each year of credited service based on the five highest years ofsalary, with a 5% reduction for each year under age 62. Substantial changes were made to the Pension Planduring fiscal year 2011, affecting new members enrolled on or after July 1, 2011 by extending the vestingrequirement to eight years of credited service and increasing normal retirement to age 65 or 33 years of serviceregardless of age. Also, the final average compensation for these members is based on the eight highest yearsof salary.


All enrolled members of the FRS Pension Plan are required to contribute 3.0% of their salary to the FRS. Inaddition to member contributions, governmental employers are required to make contributions to the FRSbased on statewide contribution rates. The employer contribution rates by job class for the periods fromOctober 1, 2016 through June 30, 2017 and July 1, 2017 through September 30, 2017, respectively, were asfollows: regular 7.52% and 7.92%; county elected officers 42.47% and 45.50%; senior management 21.77%and 22.71%; rehired regular service 4.49% and 5.16%; and DROP participants 12.99% and 13.26%. Duringthe fiscal year ended September 30, 2017, the Property Appraiser contributed to the plan an amount equal to11.65% of covered payroll.

The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and isadministered by the Florida Department of Management Services, Division of Retirement. Eligible retirees andbeneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service,with a minimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded byrequired contributions from FRS participating employees as set forth by Florida Legislature, based on apercentage of gross compensation for all active FRS members.

VI-10


For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occursat one year of service. These participants receive a contribution for self-direction in an investment productwith a third party administrator selected by the State Board of Administration. Employer and employeecontributions, including amounts contributed to individual member's accounts, are defined by law, but theultimate benefit depends in part on the performance of investment funds. Benefit terms, including contributionrequirements, for the Investment Plan are established and may be amended by the Florida Legislature. TheInvestment Plan is funded with the same employer and employee contribution rates that are based on salaryand membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.Contributions are directed to individual member accounts, and the individual members allocate contributionsand account balances among various approved investment choices.


Funding Policy, (Continued)


The following changes in general long-term debt occurred during the year ended September 30, 2017:

Long-term debt payable at October 1, 2016 61,281$

Increase in accrued compensated absences 4,970

Long-term debt payable at September 30, 2017 66,251$

General long-term debt is comprised of the following:

Noncurrent portion of compensated absences Employees of the Tax Collector are entitled to paid leave time based on length of service and job classification. 66,251$


Costs of administering the plan, including the FRS Financial Guidance Program, are funded through anemployer contribution of 0.06 percent of payroll by forfeited benefits of plan members.

The Tax Collector recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan,the HIS Plan and the defined contribution plan, amounting to $79,609, $13,959, and $9,339, respectively, forthe fiscal year ended September 30, 2017. The Tax Collector's payments after June 30, 2017, the measurementdate used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to$21,820, and $3,295, respectively. The Tax Collector is not legally required to and does not accumulateexpendable available resources to liquidate the retirement obligation related to its employees. Accordingly, thenet pension liability and associated deferred outflows and deferred inflows are presented on the government-wide financial statements of the County, following requirements of GASB Statement No. 68, Accounting andFinancial Reporting for Pensions - an amendment of GASB Statement No. 27, and GASB Statement No. 71,Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASBStatement No. 68 , effective October 1, 2014.


VI-11




Plan Description


Membership


Active Employees 20 Eligible Retirees 1 Covered Spouses -

Funding Policy

Employees of the County and all constitutional officers who were participants in the existing medical plan atthe time of retirement are entitled to participate in the Plan. Depending on the class of employee the followingeligibility rules apply:

Funding for this plan is on a pay-as-you-go basis. The Program is currently unfunded. There is no separatetrust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for thispurpose. Currently, the Tax Collector has no employees receiving benefits.

VI-12

Regular Class and Elected Officials - For employees enrolled in FRS prior to July 1, 2011, age 62, and 6 yearsof service or 30 years of service, regardless of age, is normal retirement, respectively. Employees may retireearly at age 43 and 6 years of service. For employees enrolled in FRS on or after July 1, 2011, age 65, and 8years of service or 33 years of service, regardless of age, is normal retirement, respectively. Employees mayretire early at age 43 and 8 years of service.



TAX COLLECTOR

In accordance with Section 112.0801, Florida Statutes, because the Tax Collector provides medical plans toemployees of the Tax Collector and their eligible dependents, the Tax Collector is also required to provideretirees the opportunity to participate in the group employee health plan. Retirees participating in the groupinsurance plans offered by the County are required to contribute 100% of the active participants.

The Tax Collector is involved from time to time in certain routine litigation, the substance of which as otherliabilities for recoveries, would not materially affect the financial position of the Tax Collector.

NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS, (Continued)


Annual Percentage ofOPEB Employer OPEB Cost Net OPEBCost Contributed Contributed Obligation

24,148$ 5,941$ 24.6% 126,618$ 18,484$ 4,768$ 25.8% 107,096$ 18,924$ 4,918$ 26.0% 96,764$


Actuarial Accrued Liability (AAL) 163,789$ Actuarial Value of Plan Assets - Unfunded Actuarial Accrued Liability (AAL) 163,789$




Fiscal Year Ended

September 30, 2016

Hendry County had an actuarial valuation performed for the plan as of October 1, 2016 to determine thefunded status of the plan as of that date, as well as the employer's annual required contribution (ARC) for thefiscal year ended September 30, 2017. The Tax Collector's annual OPEB cost for the fiscal year was $24,148.The Tax Collector's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and thenet OPEB obligation from 2017 is as follows:



September 30, 2017

September 30, 2015


VI-13


VI-14



The Tax Collector participates in the County-wide insurance program. The Hendry County, Florida, Board ofCounty Commissioners is a member of Public Risk Management (PRM), a local government liability risk pool.



Charges to operating departments are based upon amounts believed by management to meet the requiredannual payout during the fiscal year and to pay for the estimated operating costs of the program and forpremiums for third party carrier insurance plans.For fiscal year ended September 30, 2017, the Tax Collectorwas charged $343,688.

SUPPLEMENTARYINFORMATION

REQUIRED



Revenues

Charges for Services 1,564,440$ 1,598,388$ 1,723,731$ 125,343$ Miscellaneous - - 10,661 10,661

Total Revenues 1,564,440 1,598,388 1,734,392 136,004

Expenditures

General GovernmentPersonal services 1,312,720 1,312,720 1,417,395 (104,675) Operating expenses 251,720 271,720 106,389 165,331 Capital outlay - 13,948 - 13,948


Excess of revenues over expenditures - - 210,608 210,608

Other financing sources (uses)Operating transfers out - - (210,608) (210,608)

Total other financing sources (uses) - - (210,608) (210,608)


Fund balance - October 1, 2016 - - - -

Fund balance - September 30, 2017 -$ -$ -$ -$

VI-15

HENDRY COUNTY, FLORIDATAX COLLECTORGENERAL FUND

Schedule of Revenues, Expenses and Changes in Fund Balances - Budget and ActualFor the Fiscal Year Ended September 30, 2017

OTHERFINANCIAL

INFORMATION

Total

ASSETS

Cash 1,335,448$ -$ 41,250$ 7,748$ 1,384,446$ Due from other Funds - 675 - - 675

Total Assets 1,335,448$ 675$ 41,250$ 7,748$ 1,385,121$

LIABILITIES

Due to Board of County Commissioners -$ -$ 38,125$ -$ 38,125$

Due to other funds 43,781 - 3,125 - 46,906 Due to other governments 351,496 675 - - 352,171 Due to individuals 353,716 - - 7,748 361,464 Deposits 586,455 - - - 586,455

Total Liabilities 1,335,448$ 675$ 41,250$ 7,748$ 1,385,121$

September 30, 2017Combining Statement of Fiduciary Assets and Liabilities - Agency Funds

TAX COLLECTORHENDRY COUNTY, FLORIDA

VI-16

Tax Collection

and Redemption

Tag and Licenses

Waste Collection

Employee Concession

of 3


2016 Additions Deletions 2017

ASSETSCash 617,766$ 64,937,383$ 64,219,701$ 1,335,448$

Total Assets 617,766$ 64,937,383$ 64,219,701$ 1,335,448$

LIABILITIESDue to Board of County Commissioners 390$ -$ 390$ -$ Due to other funds - 1,736,620 1,692,839 43,781 Due to other governments 64 49,569,188 49,217,756 351,496 Due to individuals 123,415 5,402,446 5,172,145 353,716 Deposits 493,897 8,229,129 8,136,571 586,455


TAG AND LICENSES

ASSETSCash -$ 6,721,876$ 6,721,876$ -$ Due from other funds - 675 - 675

Total Assets -$ 6,722,551$ 6,721,876$ 675$

LIABILITIESDue to other funds -$ 580,270$ 580,270$ -$ Due to other governments - 19,580 18,905 675 Due to individuals - 6,122,701 6,122,701 -

Total Liabilities -$ 6,722,551$ 6,721,876$ 675$

TAX COLLECTION AND REDEMPTION


Combining Statement of Changes in Assets and Liabilities - All Agency FundsSeptember 30, 2017

VI-17

of 3


2016 Additions Deletions 2017WASTE COLLECTION

ASSETSCash 35,941$ 31,661$ 26,352$ 41,250$

Total Assets 35,941$ 31,661$ 26,352$ 41,250$

LIABILITIESDue to Board of County Commissioners 35,941$ 28,536$ 26,352$ 38,125$ Due to other funds - 3,125 - 3,125


EMPLOYEE CONCESSION

ASSETSCash 4,833$ 14,257$ 11,342$ 7,748$

Total Assets 4,833$ 14,257$ 11,342$ 7,748$

LIABILITIESDue to individuals 4,833$ 14,257$ 11,342$ 7,748$



Combining Statement of Changes in Assets and Liabilities - All Agency Funds - (Continued)September 30, 2017

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2016 Additions Deletions 2017TOTAL - ALL AGENCY FUNDS

ASSETSCash 658,540$ 64,983,976$ 64,257,395$ 1,384,446$ Due from other funds - 675 - 675

Total Assets 658,540$ 64,984,651$ 64,257,395$ 1,385,121$

LIABILITIESDue to Board of County Commissioners 36,331$ 28,536$ 26,742$ 38,125$ Due to other funds - 2,320,015 2,273,109 46,906 Due to other governments 64 49,588,768 49,236,661 352,171 Due to individuals 128,248 11,539,404 11,306,188 361,464 Deposits 493,897 8,229,129 8,136,571 586,455



Combining Statement of Changes in Assets and Liabilities - All Agency Funds - (Continued)September 30, 2017

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Phone: 941.639.6600Fax: 941.639.6115



We have audited, in accordance with the auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards issued by theComptroller General of the United States, the financial statements of the major fund and the aggregateremaining fund information of the Hendry County, Florida, Tax Collector, (the "Tax Collector") as of and forthe fiscal year ended September 30, 2017, and the related notes to the financial statements, and have issued ourreport thereon dated June 27, 2018, for the purpose of compliance with Section 218.39(2), Florida Statutes,and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits.



In planning and performing our audit of the financial statements, we considered the Tax Collector's internalcontrol over financial reporting ("internal control") to determine the audit procedures that are appropriate inthe circumstances for the purpose of expressing our opinions on the financial statements, but not for thepurpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control. Accordingly, wedo not express an opinion on the effectiveness of the Tax Collector’s internal control.


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Our consideration of internal control was for the limited purpose described in the first paragraph of this sectionand was not designed to identify all deficiencies in internal control that might be material weaknesses orsignificant deficiencies. Given these limitations, during our audit we did not identify any deficiencies ininternal control that we consider to be material weaknesses. However, material weaknesses may exist thathave not been identified.




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As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free frommaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards.



Phone: 941.639.6600Fax: 941.639.6115



We have issued our Report of Independent Auditor on Internal Control over Financial Reporting andCompliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance withGovernment Auditing Standards ; and Report of Independent Accountant on Compliance With LocalGovernment Investment Policies, regarding compliance requirements in accordance with Chapter 10.550,Rules of the Auditor General . Disclosures in those reports and schedule, which are dated June 27, 2018,should be considered in conjunction with this management letter.


Section 10.554(1)(i)1., Rules of the Auditor General , requires that we determine whether or not correctiveactions have been taken to address findings and recommendations made in the preceding annual financial auditreport. There were no findings and recommendations made in the preceding annual financial audit report.


Section 10.554(1)(i)4., Rules of the Auditor General , requires that the name or official title and legal authorityfor the primary government and each component unit of the reporting entity be disclosed in this managementletter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to thefinancial statements.

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We have audited the financial statements of the Hendry County, Florida, Tax Collector, as of and for the fiscalyear ended September 30, 2017, and have issued our report thereon dated June 27, 2018.




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Section 10.554(1)(i)2., Rules of the Auditor General , requires that we address in the management letter anyrecommendations to improve financial management. In connection with our audit, we did not have any suchrecommendations.

Section 10.554(1)(i)3., Rules of the Auditor General , requires us to communicate noncompliance withprovisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, thathave an effect on the financial statements that is less than material but which warrants the attention of thosecharged with governance. In connection with our audit, we did not have any such findings.


Our management letter is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, Federal andother granting agencies, the Hendry County Tax Collector, and applicable management, and is not intended tobe and should not be used by anyone other than these specific parties.

Additional Matters


Phone: 941.639.6600Fax: 941.639.6115



Scope

Opinion


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Report of Independent Accountant on Compliance With

We have examined the Hendry County, Florida, Tax Collector's (the "Tax Collector") compliance with thelocal government investment policy requirements of Section 218.415, Florida Statutes, during the year endedSeptember 30, 2017. Management is responsible for the Tax Collector's compliance with those requirements.Our responsibility is to express an opinion on the Tax Collector's compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Instituteof Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the TaxCollector's compliance with those requirements and performing such other procedures as we considernecessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion.Our examination does not provide a legal determination on the Tax Collector's compliance with specifiedrequirements.

In our opinion, the Hendry County, Florida, Tax Collector complied, in all material respects, with theaforementioned requirements for the year ended September 30, 2017.

Local Government Investment Policies

HENDRY COUNTY, FLORIDA - flauditor.gov rpts/2017 hendry county.pdf · Hendry County, Florida This...

Documents

Transcript of HENDRY COUNTY, FLORIDA - flauditor.gov rpts/2017 hendry county.pdf · Hendry County, Florida This...