LEE SOIL AND WATER

CONSERVATION DISTRICT

LEE COUNTY. FLORIDA

FINANCIAL STATEMENTS

WITH INDEPENDENT AUDITOR'S REPORT THEREON

SEPTEMBER 30. 2011

LEE SOIL AND WATER CONSERVATION DISTRICT

TABLE OF CONTENTS

INDEPENDENT AUDITOR'S REPORT ..."""'1

GENERAL PURPOSE FINANCIAL STATEMENTS

Combined Balance Sheet - A11 Fund Types' "" "2

Statement of Revenues, Expenditures, and Changes in Fund

Balance - Budget and Actual - General Fund' ' """"'3

Notes to Financial Statements "''"'4-6

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL

CONTROL OVER FINANCIAL REPORTING BASE,D ON AN AUDIT

OF GENE,RAL PURPOSE FINANCIAL STATEME,NTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

MANAGEMENT LETTER. ........9-10

WALTE,R T. LA PIE,DRA, C.P.A., P.A.CERTIFIED PUBLIC ACCOUNTANT

8140 COLLEGE PARKWAY, STE 104

FORT MYERS, FLORIDA 33919

TELEPHONE (239) 337 -27 7 7

Board of SupervisorsLee Soil and Water Conservation DistrictLee County, Florida

We have audited the accompanying balance sheet - all fund types and account groups of Lee Soil

and Water Conservation Olstrici, as of September 30,2011, and the related statement of revenues,

expenditures and changes in fund balance - budget and actual - general fund for the year then

ended. These general "purpor"

financial statements are the responsibility of Lee Soil and Water

Conservation District'.iurrug.*ent. Our responsibility is to express an opinion on these general

purpose financial statements based on our audit'

We conducted our audit in accordance with auditing standards generally accepted in the Unjted

States of America and Government Auditing Standards, issued by the Comptroller General of the

United States. Those standards require that we plan and perform the audit to obtain reasonable

assurance about whether the general pr.pot" financial statements are free of material

misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and

disclosures in the gen"ral purpose financial statements. An audit also includes assessing the

accounting principlfs urea La significant estimates made by management, as well as evaluating

the overaf g".r"rui purpose financial statement presentation. We believe that our audit provides a

reasonable basis for our oPinion.

In our opinion, the general purpose financial statements referred to above present fairly, in all

material respects, the financial position of Lee Soil and Water Conservation District as of

September 30, 2011, and the results of its operations for the year then ended in conformity with

accounting principles generally accepted in the United States of America'

In accordance with Government Auditing Standards, we have also issued our report dated

December lg,20l2,on our consideration"of Lee Soil and Water Conservation District's internal

control over financial reporting and our tests of its compliance with certain provisions of laws,

MEMBER:AMEzuCAN INSTITUTE of C.P'A''s

FLORIDA INSTITUTE of C.P'A''s

December 18,2012

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LEE SOIL AND WATER CONSERVATION DISTRICT

BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS

SEPTEMBER 30,2011

GovernmentalFund Types

GeneralFund

AccountGroupsGeneral

Long - TermDebt

Totals(Memorandum

OnlY)

$4,020$4,020 s0ASSETS

Cash

Total Assets

LIABILITIES AND FUND BALANCE

LIABILITIESAccounts Payable

Total Liabilities

FI-JND BALANCEUnrestricted

Total Liabilities and Fund Balance

$4,020 $4,020

3,000 3,000

3,000 3,000

1,0201,020

$4,020

Read Independent Auditor's Report.

The accompanying notes are an integral

part of the financial statements..)

$0 $4,020

LEESOILANDWATERCONSERVATIONDISTRICTSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE.BUDGETANDACTUAL.GENERALFUNDFOR THE YEAR ENDED SEPTEMBER 30,2011

VarianceFavorable

(Unfavorable)Actual

REVENUESInterestTotal Revenues

EXPENDITURESOperating:

Accounting & AuditingDistributions to ProPertY Owners

Fees & Licenses

Office Expenses

Total Operating ExPenditures

Total Expenditures

Excess of ExPenditures over

Revenues

FUND BALANCE - October 1,2010

FUND BALANCE - SePtember 30,2011

28,100 106,147 (78'047)

x)oo rce )+t (tg,o+t)

Budget

2,000 74 (1,926)

2,000 74 (t,926)

3,00025,000

100

3,000

79,160r28

23,859

(26,100) (106,073)

107,093

0

(54,160)(28)

(23,859)

76,121

r107.093)

($25,080)($26,100) $1,020

Read lndependent Auditor's Report.

The accompanying notes are an integral

part of the financial statements.a

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LEESOILANDWATERCONSERVATIONDISTRICTNOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30,2011

NOTE 1 - DESCRIPTION

The Lee Soil and Water Conservation District (the "District") was established July 10, 1941,

under the Florida Statutes, Chapter 582, to assist in solving soil and water conservation problems'

The District was organized pursuant to the Soil Conservation Districts Law of Florida, as a

governmental subdivision of the State, to exercise public powers in connection with soil

conservation and erosion control within its boundaries. In october 1995, the Lee county Mobil

Irrigation Laboratory was started to provide technical assistance through on site evaluations,

identification and explanation of areas for improvement, and development of an irrigation water

management Plan.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements conform to generally accepted accounting principles for

governmental units as prescribed by the Govemmental Accounting Standards Board ("GASB")

and other recognized authoritative sources. The more significant accounting policies are described

below.

Reporting Entit),

The District follows standards promulgated by GASB Statement No. 14, The Financial Reporting

Entity, to define the reporting entity. Statement No. 14 requires funds and account groups of

agencies, boards, and authorities that are controlled by, or are dependent on' the District to be

included in its Audit Report. In determining the ug"n"i"r, boards, or authorities to be included in

the annual financial ,"po.t, the District cons=idered the following criteria: oversight responsibility,

including financial interdependency, selection of governing authority, designation of management'

ability to significantly influence operations, accountability for fiscal matters, scope of public

services, and special financing relationships. Control by, or dependence on, the District has been

determined and, as a result, no other ug*n.i., are included in the District's Audit Report since the

District exercises no manifestations oftversight, nor is any agency's activity for the benefit of the

District.

Basis of Presentation - Fund Accounting

The accounting records of the District are organized on the basis of funds and account groups' A

fund is an independent fiscal and accountin[ entity with a self-balancing set of accounts' Fund

accounting segregates funds according to their intended purpose and is used. to aid management in

demonstrating compliance with flnanie-related legal and contractual provisions. The minimum

number of funds is maintained consistent with legal and managerial requirements. Account

groups are a reporting device to account for certain assets and liabilities of the governmental funds

not recorded directly in those funds. The fund utilized by the District is as follows:

Governmental Fund Types- The governmental fund measurement focus is upon determination of

financial position and changes in f,rnancial position (sources, uses, and balances of financial

,.ro.t ..rjrather than upon net income determination'

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LEE SOIL AND WATER CONSERVATION DISTRICTNOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30,2011

General fund - The general firnd is the principal fund used to account for general

governmental activities of the District. A11 financial transactions not required to be

accounted for in other funds are accounted for in the general fund.

Basis of Accounting

The basis of accounting for the District reflected within these statements is the modified accrual

basis. A description of this basis follows:

Revenues - Under the modified accrual basis, revenues are recorded as received except for

revenues susceptible to accrual, and revenues of a material amount that have not been

received at the normal time of receipt. Revenues considered susceptible to accrual include

interest, and certain miscellaneous revenues.

Expenditurrzs - Under the modified accrual basis of accounting, expenditures are generally

recorded when obligations are incurred or when benefits are received, except for interest

on general and special obligation bonds, which is recorded in the accounting period in

which payment becomes due.

Encumbrqnces - The District does not utilize an encumbrance system in accounting for

expenditures in its budgetary fund.

At September 30, 20ll,cash consisted of demand deposit accounts which are stated at cost. Cost

approximates market value.

A11 depositories are banks designated by the State Treasurer as qualified public depositories. As

of September 30, 2011, these accounts were fully insured under Chapter 280 of the Florida

Statutes.

Budgetary Process and RePorting

Budgets have been adopted by the District for all govemmental funds. Budgets are adopted on a

basis consistent with generally accepted accounting principles. Estimated beginning fund balance

is considered in the budgetary process, but is not included in the financial statements as budgeted

revenue. Differences between estimated beginning fund balance and actual fund balance, ifmaterial, are submitted to the Supervisors as budget amendments.

The axnual budgets serve as the legal authorization for expenditures. Expenditures cannot legally

Cash

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LEE SOIL AND WATER CONSERVATION DISTRICTNOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30' 2011

exceed the amount budgeted in each fund's budget. A1l budget amendments, which change the

legally adopted total appiopriation for a fund, are approved by the Supervisors.

If, during the fiscal year, additional revenues become available for appropriation in excess of those

estimated in the Uujg"t, the District by resolution may make supplemental appropriations for the

year up to the amount of such excess.

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WALTER T. LA PIE,DRA, C.P.A., P.A.CE,RTIFIED PUBLIC ACCOLTNTANT

8140 COLLEGE PARKWAY, STE 104

FORT MYERS, FLOzuDA 33919

TELEPHONE (239) 337 -2777

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL

CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL

PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOWKNMENT AUDITING STANDARDS

MEMBER:AMERICAN INSTITUTE of C-P.A''s

FLORIDA INSTITUTE of C.P'A''s

Board of SuPervisors

Lee Soil and Water Conservation District

Lee County. Florida

we have audited the general purpose financial statements of Lee Soil and water conservation

District as of and lbr tlie year ended September 30,2011, and have issued our report thereon dut:d

December lg, 2012. we conducted our audit in accordance with auditing standards generally

accepted in the united States of America and the standards applicable tofinancial audits contained

in Government Auditing Standards, issued by the Comptroller General of the United States'

Compliance

As part of obtaining reasonable assurance about whether Lee Soil and Water Conservation

District,s general purpose financial statements are free of material misstatements, we performed

tests of its compliance with certain provisions of laws, regulations, contracts and grants'

noncompliance with which could have a direct and material effect on the determination of

financial statement amounts. However, providing an opinion on compliance with those provisions

was not an objective of our audit and, accordingly, we do not express such an opinion'

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered Lee Soil and Water Conservation District's

internal control over financial reporting in order to determine our auditing procedures for the

purpose of expressing our opinion on the financial statements and not to provide assurance on the

internal control over financial reporting- our consideration of the internal control over financial

reporting would not necessarity discloJe all matters in the internal control that might be material

weaknesses. A material weakness is a condition in which the design or operation of one or more

of the intemal control components does not reduce to a relatively low level the risk that

misstatements in amounts that would be material in reration to the financial statements being

audited may occur and not be detected within a timely period by employe,es jn the normal course

of performing their assigned functions. We noted no matters involving the internal control over

financial r"porting and iis operations that we consider to be material weaknesses'

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This report is intended solely for the information and use of the management, the Board of

Directors, and federal and state awarding agencies. However, this report is a matter of public

record and its disfiibution is not limited.

%/aWalter T. La Piedra CPA" PA

December 18,2012

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WALTER T. LA PIEDRA, C.P.A., P.A.CERTIFIED PUBLIC ACCOI]NTANT

8140 COLLEGE PARKWAY, STE 104

FORT MYERS, FLORIDA 33919

TELEPHONE (239) 331 -2777

ME,MBER:

AMEzuCAN INSTITUTE of C.P.A''s

FLORIDA INSTITUTE of C.P.A.'s

MANAGEMENT LETTER

Board of SuPervisorsLee Soil and Water Conservation DistrictLee County, Florida

In planning and performing our audit of the general purpose financial statements of Lee Soil and

Water Conservation DistriJt, as of and for the year ended September 30,2011, on which we have

issued a report dated December 18,2012, we considered its intemal control structure in order to

determine our auditing procedur., fo, the purpose of expressing an opinion on the general purpose

financial statements uira not to provide urr.rr*"" on the internal control structure' In connection

therewith, we have issued our report on compliance and on internal control over financial

reporting dated December 18,2012.

Our comments and recofllmendations, including the status of prior year comments and

fecommendations, and the reporting req-uirementt of th" Auditor's General, State of Florida are

presented under the following main captions:

- Status of Prior Year Comments- Status of Current Year Comments

- State RePorting Requirements

STATUS OF PzuOR YEAR COMMENTS

A prior year audit was not performed nor requested. The last audit previously conducted

was for the fiscal year ended September 30,2006'

STATUS OF CURRENT YEAR COMMENTS

Finding: The District did not have an annual financial audit completed within 12 months

after the end of it's fiscal year by an independent public accountant in accordance with

Florida statute 218.39.

Recommendation: There will be no recommendation to have any future annual financial

""dtt "r " *"J"rity of the Board of Directors voted to move the District in a different

direction. The budget was cut to virtually zero. The District began reducing the available

funds by distributin-g checks in the amount of $10.00 to property owners who have a direct

opportunity and incentive to conserve their own soil and water.

Management's Response: Management agreed that they had no need to arrange for a

future annual audit il-d ater disbuising the final funds that operations would be ceased'

STATE REPORTING REQUIREMENTS

The rules of the Auditor General, State of Florida, require that this report be filed with the Auditor

General together with the audited financial statements.

In connection with our audit of the general purpose financial statements of [,ee Soil and Water

Conservation District, pursuant to Chapter 10.550, the Rules of the Auditor General, State of

Florida-Local Government Entity Audits, we report the following:

- Nothing came to our attention to cause us to believe that Lee Soil and Water

Conservation District is, or during the year ended September 30,2011, was in a state of

financial emergency (as defrned) due to the occulrence of any of the conditions

described in Section 218.503(1), Florida Statutes'

- The financial report of Lee Soil and Water Conservation District frled with the

Department of Financial Services, State of Florida pursuant to Section 218.32, Florida

Statutes, is in agreement with the general pu{pose financial statements for the year

ended SePtember 30, 201I.

- The Lee Soil and Water Conservation District is a local govemmental unit created by

Soil Conservation Districts Laws of Florida, dated July 10, 1947,to assist in solving

soil and water conservation problems in Lee County, Florida.

- The Lee Soil and Water Conservation District complied with Section2l8.4l5, Florida

Statute, regarding the investment of public funds'

- The scope of the audit of the Lee Soil and Water Conservation District inciuded the use

of financial condition assessment procedures to detect deteriorating financial

conditions pursuant to Section 218.503(1), Florida statutes.

This report is intended solely for the information of the management, the Auditor General, and the

Comptroller of Florida- However, this report is a matter of public record and its distribution is not

limited. t/b,4,7fr2Walter T. La Piedra, CPA, PA

December 18,2012

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