HENDRY COUNTY, FLORIDA - flauditor.gov rpts/2016 hendry county.pdf · information of Hendry County,...

HENDRY COUNTY,FLORIDA

ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED

SEPTEMBER 30, 2016

PREPARED BY:

BARBARA S. BUTLERCLERK OF THE CIRCUIT COURT

STEVE CLARKFINANCE DIRECTOR

THIS SPACE IS INTENTIONALLY LEFT BLANK

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……….………………………………….……… 91-92

Schedule of State Financial Assistance……………………………………………………………93-94

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance………………………………………………………………………………… 95

Schedule of Findigns and Questioned Costs……………………..………………………………96-97

Summary Schedule of Prior Auidt 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 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

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

Budget and Actual - General Fund……………………………………………...……………… 15

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


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 InvestmentPolicies, Article V Requirements, and Florida Statute 61.181 Requirements………………… 24

Management's Response to Auditor's Management Letter…………………………………..………25

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……………………...……………………………………………… 5-13

TABLE OF CONTENTS

SECTION II - CLERK OF THE CIRCUIT COURT

SECTION III - PROPERTY APPRAISER

Page(s)


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

Management's Response to Auditor's Management Letter……………………….………………… 20

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)

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 ……..……………………… 26-27

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

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

Management's Response to Auditor's Management Letter……………………………...………… 31

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 GovernmentInvestment Policies………………………..…………………………………………………… 17

Management's Response to Auditor's Management Letter……………………………………..……18

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


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 GovernmentInvestment Policies…………………………….……………………………………………… 28

SECTION VI - TAX COLLECTOR

TABLE OF CONTENTS

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.

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.

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, 2016,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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Opinions

Emphasis of Matter

Required Supplementary Information

Other Information

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

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, 2016, 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 federal

We draw attention to Note 16 to the financial statements, which describes a prior-period adjustment to thebeginning balances within the primary government's cash and cash equivalents for business-type activities. Theadjustment restates the net position of the Enterprise Fund, Port LaBelle Utility System as $17,203,646; areduction of $1,252,927. The adjustment was necessary because in a prior year, the County did not properlyrecord the receipt of the cash from the release of escrow funds. As a result of this adjustment the beginning netposition of the primary government's business-type activities was decreased by $1,252,927.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.

Punta Gorda, FloridaJune 27, 2017

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, 2017, 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.

awards 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.

MANAGEMENTDISCUSSION & ANALYSIS

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Hendry County, FloridaManagement’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, 2016. 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 2016 the County’s assets exceeded its liabilities, resulting in net assets of $70,485,364 an increase of 87,818 over last year or 1 percent. Governmental and business-type assets exceeded its liabilities by $54,020,583 and $18,456,573, respectively, which was an increase of $2,079,610 for governmental assets, or 4 percent and decrease of ($1,991,792) for business-type assets or,(11) percent.

Total revenues for governmental activities were $51,932,906 which was an increase of $5,319,039 over prior year.

Total expenses for governmental activities increased $3,614,781.

Long-term liabilities are reported at $28,890,846 on September 30, 2016 for governmental activities and $8,873,494 for business-type activities. Increase in September 30, 2016 for governmental is associated with GASB 68 decreases in business type long-term liabilities were associated with the pay-off of several buildings and no additional debt service during the 2016 fiscal year.

Capital Assets net of depreciation are reported at $79,237,957 on September 30, 2016 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 meetscertain 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 2015 and 2016with 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

2015 2016 Inc / (Dec) 2015 2016 Inc / (Dec) 2016 Inc / (Dec)

Current and other assets 25,167,291$ 27,073,942$ 1,906,651$ 7,105,159$ 5,750,481$ (1,354,678)$ 32,824,423$ 551,973$ Capital assets 54,043,745 58,393,334 4,349,589 21,814,074 20,844,623 (969,451) 79,237,957 3,380,138Related to pensions 3,052,729 9,984,440 6,931,711 50,995 149,249 98,254 10,133,689 7,029,965

Total Assets 82,263,765 95,451,716 13,187,951 28,970,228 26,744,353 (2,225,875) 122,196,069 10,962,076

Other Liabilities 9,321,164 11,454,719 2,133,555 1,403,330 1,389,757 (13,573) 12,844,476 2,119,982Non-current Liabilities 17,685,695 28,890,846 11,205,151 9,067,845 8,873,494 (194,351) 37,764,340 11,010,800Related to pensions 3,315,933 1,085,568 (2,230,365) 42,480 16,321 (26,159) 1,101,889 (2,256,524)

Total liabilities 30,322,792 41,431,133 11,108,341 10,513,655 10,279,572 (234,083) 51,710,705 10,874,258

Net position:Invested in capital assets,

net of related debt 52,701,867 56,391,259 3,689,392 12,716,123 12,050,117 (666,006) 68,441,376 3,023,386Restricted 5,483,933 3,874,156 (1,609,777) - - - 3,874,156 (1,609,777)Unrestricted (6,244,827) (6,244,832) (5) 5,740,450 4,414,664 (1,325,786) (1,830,168) (1,325,791)

Total Net Position 51,940,973$ 54,020,583$ 2,079,610 18,456,573$ 16,464,781$ (1,991,792)$ 70,485,364$ 87,818$

Hendry County, FloridaSummary of Net Position with Prior Year Comparison

September 30, 2016

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 $3,874,156 in 2016 represents a bonding requirement, capital project and disaster recovery requirements in 2016.

The unrestricted net position balance of ($1,830,168) 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 2016 was restricted assets for governmental activities.

Governmental Activities Analysis

The Governmental Revenue Accounts had an increase of 12 percent from 2015 to 2016. The majority of this variance is due to an increase in Ad Valorem Taxes and intergovernmental revenues such as 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 increase in Grant income is associated with more State Airport and Road Projects. None of the remaining revenue accounts had material differences. Expenses increased 8 percent in 2016.Taking into consideration increases in Salaries, Benefits, Medicaid, Public Safety and Capital Projects expenses which could no longer be overlooked, 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 minimal changes in both revenues and expenses from 2015 to 2016. This is associated a minimal change in the customer base.

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The following schedule represents Summary of Revenue and Expenditures and Changes in Net Position for the year September 30, 2016.

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

2015 2016 2015 2016 2016Revenues:Program Revenues:

Charges for Service 9,010,639$ 10,323,459$ 1,479,098$ 1,525,986$ 11,849,445$ Operating Grants and Contributions 848,307 951,008 - - 951,008Capital Grants and Contributions 1,043,951 8,852,580 - - 8,852,580

General Revenues:Taxes 22,526,015 22,756,900 - - 22,756,900Impact Fees - - - - -

Intergovernmental revenues, not restricted for specific purposes 11,192,540 7,024,833 - - 7,024,833

Other 1,992,415 2,024,126 52,122 68,248 2,092,374Total Revenues 46,613,867 51,932,906 1,531,220 1,594,234 53,527,140

Expenses:Program Activities:

General Government 11,773,795 12,906,988 - - 12,906,988Court Related 1,524,446 1,565,706 - - 1,565,706Public Safety 17,924,877 20,434,652 - - 20,434,652Physical Environment 3,397,661 3,271,795 - - 3,271,795Transportation 7,763,753 7,546,949 - - 7,546,949Economic environment 748,104 858,426 - - 858,426Human Services 2,125,481 2,166,945 - - 2,166,945Culture and recreation 945,921 1,064,858 - - 1,064,858Interest on long-term debt 34,477 36,977 - - 36,977

Business-type activities:Water and wastewater - - 2,352,838 2,333,099 2,333,099

46,238,515 49,853,296 2,352,838 2,333,099 52,186,395

Increase in net position (14,122,063) 2,079,610 (1,066,184) (738,865) 1,340,745

Beginning Net position, October 1 66,063,036 51,940,973 19,522,757 17,203,646 69,144,619Ending Net position, September 30 51,940,973$ 54,020,583$ 18,456,573$ 16,464,781$ 70,485,364$

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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 2016.

20% 2%

17%44%

0%13% 4%

Revenues by Source - Governmental Activities

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

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The following is a chart of expenses by program for governmental activities for fiscal year 2016.

Business-Type Activities

The following is a chart of Revenues by Source for our Business Activities for fiscal year 2016. Our Business Activities consist of Port LaBelle Utilities. Total Revenues created from Charges for Services consisted of $1,525,986. This represents charges for water/sewer usage. Other revenues totaling $68,248 resulted from aspecial assessment, interest revenue and miscellaneous charges.

All business type expenditures for fiscal year 2016 consisted of water and wastewater expenses to operate Port LaBelle Utility Systems and administrative fees.

26%

3%41%

7%15% 2%

4%2% 0%

Expenses by Program - Govermental Activities

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

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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 $79,237,957. This is an increase of $3,380,138 over prior year.

Debt Administration

At September 30, 2016, the County had $51,708,005 of total liabilities. Of this amount $24,084,090 of FRS Pension liability $17,715,425 consisted of non-current liabilities which mostly consists of bonds and notes payable of $9,111,190 for Port LaBelle Utilities bonds.

1,525,986

68,248

Business Revenues

Charges for Service Other

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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 7,757,291$ 517,766$ 8,275,057$Investments, at fair value 4,224,093 - 4,224,093Prepaid expenses 49,121 - 49,121Receivables, net 15,043,437 3,060,665 18,104,102Inventory - 5,433 5,433Restricted assets:

Cash and cash equivalents - 2,135,711 2,135,711Investments, at fair value - 30,906 30,906

Capital assets:Non-depreciable 13,545,675 537,006 14,082,681Depreciable, net 44,847,659 20,307,617 65,155,276

TOTAL ASSETS 85,467,276 26,595,104 112,062,380

DEFERRED OUTFLOWS OF RESOURCESRelated to pensions 9,984,440 149,249 10,133,689

LIABILITIESAccounts payable 5,795,611 840,728 6,636,339Accrued liabilities 924,475 33,724 958,199Deferred revenue 3,000 - 3,000Other liabilities 4,001,562 - 4,001,562Liabilities payable from restricted assets:

Current portion of long term debt 730,071 321,818 1,051,889Customer deposits - 193,487 193,487

Noncurrent liabilities:Due in more than one year 28,890,846 8,873,494 37,764,340

TOTAL LIABILITIES 40,345,565 10,263,251 50,608,816

DEFERRED INFLOWS OF RESOURCESRelated to pensions 1,085,568 16,321 1,101,889

NET POSITIONInvested in capital assets,

net of related debt 56,391,259 12,050,117 68,441,376Restricted for:

General government 574,156 - 574,156Disaster recovery 3,300,000 - 3,300,000

Unrestricted (6,244,832) 4,414,664 (1,830,168)TOTAL NET POSITION 54,020,583$ 16,464,781$ 70,485,364$

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

Primary Government

HENDRY COUNTY, FLORIDASTATEMENT OF NET POSITION

September 30, 2016

I-12

Operating Capital Charges for Grants and Grants and

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

General government 12,906,988$ 3,679,777$ -$ 325,517$Court related 1,565,706 1,027,264 - -Public safety 20,434,652 1,842,912 535,571 375,389Physical environment 3,271,795 2,201,266 -Transportation 7,546,949 1,533,746 - 7,971,070Economic environment 858,426 31,974 415,437 -Culture and recreation 1,064,858 6,520 - 137,592Human services 2,166,945 - - 43,012Interest on long-term debt 36,977 - - -

Total governmental activities 49,853,296 10,323,459 951,008 8,852,580

Business-type Activities :Water and Wastewater 2,333,099 1,525,986 - -

Total primary government 52,186,395$ 11,849,445$ 951,008$ 8,852,580$

General revenues : Property taxes

Gasoline taxes Communications taxes Other taxes Intergovernmental revenues Interest income MiscellaneousTotal general revenues

Change in net position

Net position, October 1, 2015Restatement

Net position, October 1, 2015, as restated

Net position, September 30, 2016


I-13

HENDRY COUNTY, FLORIDASTATEMENT OF ACTIVITIES

September 30, 2016

Program Revenues

Governmental Business-typeActivities Activities Total

(8,901,694)$ -$ (8,901,694)$(538,442) - (538,442)

(17,680,780) - (17,680,780)(1,070,529) - (1,070,529)1,957,867 - 1,957,867(411,015) - (411,015)(920,746) - (920,746)

(2,123,933) - (2,123,933)(36,977) - (36,977)

(29,726,249) - (29,726,249)

- (807,113) (807,113)

(29,726,249) (807,113) (30,533,362)

18,546,717 - 18,546,7171,420,358 - 1,420,358

112,708 - 112,7082,677,117 - 2,677,1177,024,833 - 7,024,833

139,723 3,897 143,6201,884,403 64,351 1,948,754

31,805,859 68,248 31,874,107

2,079,610 (738,865) 1,340,745

51,940,973 18,456,573 70,397,546- (1,252,927) (1,252,927)

51,940,973 17,203,646 69,144,619

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

I-14

Net (Expense) Revenue and Changes in Net Position

Primary Government

County SolidTransportation Waste Capital

General Trust Disposal ProjectsASSETS

Cash and cash equivalents 1,972,879$ 3,030$ 68,375$ 326,575$Investments 4,224,093 - - -Prepaid expenses 75 - - -Receivables (net) 2,813,558 6,623,942 2,439,755 376,057

Total assets 9,010,605$ 6,626,972$ 2,508,130$ 702,632$

LIABILITIES AND FUND BALANCESLiabilities

Accounts payable 2,944,548$ 1,199,386$ 176,366$ 24,788$Accrued liabilities 822,986 71,994 2,229 -Deferred revenue - - - -Other liabilities 819,097 2,463,130 - -

Total liabilities 4,586,631 3,734,510 178,595 24,788

Fund balancesRestricted - - - -Committed 3,300,000 - - -Assigned - 2,892,462 2,329,535 677,844Unassigned 1,123,974 - - -

Total fund balances 4,423,974 2,892,462 2,329,535 677,844

Total liabilities and fund balances 9,010,605$ 6,626,972$ 2,508,130$ 702,632$


September 30, 2016

HENDRY COUNTY, FLORIDABALANCE SHEET

GOVERNMENTAL FUNDS

I-15

Other TotalGovernmental Governmental

Funds Funds

5,386,432$ 7,757,291$- 4,224,093

49,046 49,1212,790,125 15,043,437

8,225,603$ 27,073,942$

1,450,523$ 5,795,611$27,266 924,4753,000 3,000

719,335 4,001,562

2,200,124 10,724,648

574,156 574,156- 3,300,000

5,451,323 11,351,164- 1,123,974

6,025,479 16,349,294

8,225,603$ 27,073,942$

I-16

Fund Balances - total governmental funds 16,349,294$

Non-depreciable governmental capital assets 13,545,675$Depreciable governmental capital assets, net 44,847,659 58,393,334

Notes payable (1,259,786)Capital leases (742,289)Landfill closure (42,842)Other Post Employment Benefits (1,946,447)Net Pension liability (23,715,708)Deferred outflows related to pensions 9,984,440Deferred inflows related to pensions (1,085,568)Compensated absences (1,913,845) (20,722,045)

Net position of governmental activities 54,020,583$


September 30, 2016

HENDRY COUNTY, FLORIDARECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION

I-17

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 15,105,599$ 1,184,434$ 762,417$Licenses and permits 41,815 133 -Intergovernmental 6,406,983 9,223,614 90,909Charges for services 6,029,366 492,311 205,338Fines and forfeitures - - -Miscellaneous 830,890 22,673 25,948

Total revenues 28,414,653 10,923,165 1,084,612

EXPENDITURES Current

General government 10,585,893 - -Court related 1,236,594 - -Public safety 16,243,201 - -Physical environment 445,449 - 1,890,567Transportation - 5,823,929 -Economic environment 288,002 - -Culture and recreation 109,119 - -Human services 925,567 - -

Capital outlayGeneral government 33,245 - -Public safety 922,429 - -Physical environment 32,437 - -Transportation - 5,590,725 -

Debt servicePrincipal retirement 440,492 103,958 -Interest and fiscal charges 29,708 - -

Total expenditures 31,292,136 11,518,612 1,890,567

Excess (deficiencies) of revenues over (under) expenditures (2,877,483) (595,447) (805,955)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 774,123 302,022 -Transfers in 16,226,650 - -Transfers out (13,197,673) - -

Total other financing sources (uses) 3,803,100 302,022 -

Net change in fund balances 925,617 (293,425) (805,955)Fund balances, October 1, 2015 3,498,357 3,185,887 3,135,490Fund balances, September 30, 2016 4,423,974$ 2,892,462$ 2,329,535$


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

GOVERNMENTAL FUNDSFor the Year Ended September 30, 2016

I-18

Other TotalCapital Governmental GovernmentalProjects Funds Funds

2,647,082$ 2,961,399$ 22,660,931$- 319,194 361,142

53,601 1,053,314 16,828,421- 3,119,381 9,846,396- 351,613 351,613

11,267 1,044,765 1,935,5432,711,950 8,849,666 51,984,046

257,728 318,181 11,161,802- 199,019 1,435,613- 1,857,295 18,100,496- 669,261 3,005,277- 2,008,724 7,832,653- 465,369 753,371- 861,269 970,388- - 925,567

24,069 1,220,468 1,277,782- 137,714 1,060,143- 360,654 393,091- - 5,590,725

- 52,197 596,647- 7,269 36,977

281,797 8,157,420 53,140,532

2,430,153 692,246 (1,156,486)

- 87,482 1,163,627- 18,704 16,245,354

(2,601,780) (445,901) (16,245,354)(2,601,780) (339,715) 1,163,627

(171,627) 352,531 7,141849,471 5,672,948 16,342,153677,844$ 6,025,479$ 16,349,294$

I-19

Net change in fund balances - total governmental funds: 7,141$

4,256,372

Principal payments 596,647$Landfill Closure 42,077Increase in other post employment benefits (268,310)Proceeds from issuance of debt (1,163,627) (793,213)

Change in compensated absences (77,126)Pension expenditures (1,313,564) (1,390,690)

Change in net position of governmental activities 2,079,610$


I-20

For the Fiscal Year ended September 30, 2016

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 reported asdepreciation 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$ 15,831,634$ 15,105,599$ (726,035)$Licenses and permits 117,500 118,825 41,815 (77,010)Intergovernmental 5,323,322 6,368,915 6,406,983 38,068Charges for services 5,752,213 6,193,129 6,029,366 (163,763)Miscellaneous 269,600 955,493 830,890 (124,603)

Total revenues 27,258,248 29,467,996 28,414,653 (1,053,343)


General government 10,606,291 10,948,246 10,534,923 413,323Court related 1,328,106 1,306,485 1,236,594 69,891Public safety 14,266,027 16,068,716 16,243,201 (174,485)Physical environment 474,257 487,158 445,449 41,709Economic environment 347,940 350,629 288,002 62,627Culture and recreation 78,047 107,924 109,119 (1,195)Human services 911,286 980,795 925,567 55,228

Capital OutlayGeneral government 58,487 76,646 84,215 (7,569)Public safety 240,585 1,127,147 922,429 204,718Physical environment 40,000 40,000 32,437 7,563Transportation 500 500 - 500

Debt servicePrincipal retirement 310,500 310,500 457,801 (147,301)Interest and fiscal charges 200 12,596 12,399 197

Contingency 50,000 50,000 - 50,000Total expenditures 28,712,226 31,867,342 31,292,136 575,206

Deficiencies of revenues under expenditures (1,453,978) (2,399,346) (2,877,483) (478,137)

OTHER FINANCING SOURCES (USES)Proceeds from financing - 774,123 774,123 -Transfers in 15,907,533 15,937,533 16,226,650 289,117Transfers out (12,859,403) (12,868,954) (13,197,673) (328,719)

Total other financing sources (uses) 3,048,130 3,842,702 3,803,100 (39,602)Net change in fund balances 1,594,152 1,443,356 925,617 (517,739)Fund balances - October 1, 2015 (1,594,152) (1,443,356) 3,498,357 4,941,713Fund balances - September 30, 2016 -$ -$ 4,423,974$ 4,423,974$


I-21

Budgeted Amounts

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

BUDGET AND ACTUAL - GENERAL FUND

For the Fiscal Year Ended September 30, 2016



REVENUESTaxes 1,153,361$ 1,184,435$ 1,184,434$ (1)$Intergovernmental 13,824,703 15,699,235 9,223,614 (6,475,621)Charges for services 13,500 495,445 492,444 (3,001)Miscellaneous 23,000 43,154 22,673 (20,481)

Total revenues 15,014,564 17,422,269 10,923,165 (6,499,104)


Transportation 9,653,577 8,830,178 5,726,171 3,104,007 Capital outlay

Transportation 7,544,642 10,140,642 5,688,483 4,452,159 Debt service

Principal retirement - 104,000 103,958 42

Total expenditures 17,198,219 19,074,820 11,518,612 7,556,208

Excess (deficiencies) of revenues over (under) expenditures (2,183,655) (1,652,551) (595,447) 1,057,104

OTHER FINANCING SOURCES Proceeds from financing - - 302,022 302,022

Total other financing sources - - 302,022 302,022

Net change in fund balance (2,183,655) (1,652,551) (293,425) 1,359,126

Fund balance-October 1, 2015 2,183,655 1,652,551 3,185,887 1,533,336

Fund balance- September 30, 2016 -$ -$ 2,892,462$ 2,892,462$


I-22

Budgeted Amounts

BUDGET AND ACTUALCOUNTY TRANSPORTATION TRUST





REVENUESTaxes 879,332$ 897,099$ 762,417$ (134,682)$Intergovernmental 90,909 90,909 90,909 -Charges for services 98,000 208,700 205,338 (3,362)Miscellaneous 24,239 25,948 25,948 -

Total revenues 1,092,480 1,222,656 1,084,612 (138,044)

EXPENDITURESCurrent

Physical environment 1,944,732 1,985,483 1,890,567 94,916

Total expenditures 1,944,732 1,985,483 1,890,567 94,916

Excess (deficiencies) of revenues over (under) expenditures (852,252) (762,827) (805,955) (43,128)

Fund balance - October 1, 2015 852,252 762,827 3,135,490 2,372,663

Fund balance - September 30, 2016 -$ -$ 2,329,535$ 2,329,535$


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 517,766$Receivables (net) 3,060,665Inventory 5,433Restricted Assets:

Cash and cash equivalents 2,135,711Investments at fair value 30,906

Total current assets 5,750,481

Noncurrent AssetsCapital Assets

Non-depreciable 537,006Depreciable 29,252,677Less: accumulated depreciation (8,945,060)

Total noncurrent assets 20,844,623

Total assets 26,595,104

Deferred outflows of resourcesRelated to pensions 149,249



HENDRY COUNTY, FLORIDASTATEMENT OF NET POSITION

PROPRIETARY FUND

I-24


Port LabelleUtility System

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION

LiabilitiesCurrent liabilities

Accounts payable 840,728Accrued liabilities 33,724

Total current liabilities 874,452

Current liabilities payable from restricted assetsNotes payable 155,518Bonds payable 166,300Customer deposits 193,487

Total current liabilities payable from restricted assets 515,305

Noncurrent liabilitiesAccrued compensated absences 32,424Notes payable 1,993,188Bonds payable 6,479,500Net pension liability 368,382

Total noncurrent liabilities 8,873,494

Total liabilities 10,263,251

Deferred inflows of resourcesRelated to pensions 16,321

Net positionInvested in capital assets, net of related debt 12,050,117Unrestricted 4,414,664

Total net position 16,464,781$

I-25


Port LabelleUtility System

OPERATING REVENUESCharges for services 1,525,986$Miscellaneous 64,351

Total operating revenues 1,590,337

OPERATING EXPENSESPersonal services 391,596Contractual services 84,702Repairs and maintenance 108,651Depreciation and amortization 969,451Office 14,022Supplies 62,575Utilities 96,194Other expense 125,238

Total operating expenses 1,852,429

Operating income (loss) (262,092)

NON-OPERATING REVENUES (EXPENSES)Interest revenue 3,897Interest and fiscal charges (480,670)

Total non-operating (expenses) (476,773)

Change in net position (738,865)

Total net position, October 1, 2015, as restated 17,203,646

Total net position, September 30, 2016 16,464,781$


I-26

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

PROPRIETARY FUNDFor the Fiscal Year Ended September 30, 2016

Business-type ActivitiesEnterprise Funds


CASH FLOWS FROM OPERATING ACTIVITIES:Cash received from customers 1,898,615$Cash payments to suppliers for goods and services (527,867)Cash payments to employees for services (389,140)

Net cash provided by operating activities 981,608

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Deposits collected from customers less deposits refunded to customers 5,137

Net cash provided by noncapital financing activities 5,137

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Principal paid on notes payable and revenue bonds (303,444)Interest paid on notes payable and revenue bonds (480,670)

Net cash used in capital financing activities (784,114)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest on investments 3,897

Net cash provided by investing activities 3,897

Net increase in cash and cash equivalents 206,528

Cash and cash equivalents on October 1, 2015 906,812Restatement 1,540,137

Cash and cash equivalents on October 1, 2015, as restated 2,446,949

Cash and cash equivalents on September 30, 2016 2,653,477$


HENDRY COUNTY, FLORIDASTATEMENT OF CASH FLOWS

PROPRIETARY FUNDSFor the Fiscal Year Ended September 30, 2016

I-27

Business-type ActivitiesEnterprise Funds


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

Operating income (loss) (262,092)$

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 308,278Increase (decrease) in:

Accounts payable (36,485)Accrued liabilities 2,456

Total adjustments 1,243,700

Net cash provided by operating activities 981,608$

I-28

Agency Funds

ASSETSCash and cash equivalents 1,604,289$Receivables (net) 4,382

Total assets 1,608,671$

LIABILITIESAccounts payable 79,481Due to other constitutional officers 36,331Due to other governments 633,955Due to individuals 303,026Due to other funds 61,981Deposits 493,897

Total liabilities 1,608,671$


I-29

HENDRY COUNTY, FLORIDASTATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDSAs of September 30, 2016

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

East Hendry County Drainage District

HENDRY COUNTY, FLORIDANOTES TO THE FINANCIAL STATEMENTS

September 30, 2016

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 units of theCounty are 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 component units. 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.

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 Officersof Hendry 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.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Government-Wide and Fund Financial Statements

NOTES TO THE FINANCIAL STATEMENTSSeptember 30, 2016

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

HENDRY COUNTY, FLORIDA

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 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.

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.


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.

The government-wide financial statements are prepared on a full accrual basis using the economic resourcesmeasurement focus, as are the proprietary fund financial statements. Revenues are recorded when earned andexpenses are recorded when a liability is incurred. Property taxes are recognized in the year for which they arelevied. Grants and similar items are recognized as revenues as soon as all of the eligibility requirements havebeen 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 fundsfollow private sector standards issued prior to December 1, 1989, to the extent those standards do not conflictwith Governmental 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)

I-32


September 30, 2016

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

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.


General Fund

County Transportation Trust Fund

Solid Waste Disposal Fund

Capital Projects Fund

Non-major Governmental Funds

The Port LaBelle Utility System

Budgets and Budgetary Accounting

I-33

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


September 30, 2016

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

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.

The Board reports the following major governmental funds:

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

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.


Budgets and Budgetary Accounting (continued)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Assets, Liabilities, and Net Position or Fund Equity

Cash and Investments

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.

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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.

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.

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, 2016

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.

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

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.

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.

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.


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

Cash and Investments (continued)

The Board reports all investments at fair value.

Inventories

Capital Assets

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


September 30, 2016

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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

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.

Capital assets are reported in the government-wide financial statements in the applicable governmentalor business-type activities column, as well as the proprietary fund financial statements. The threshold for capitalizing 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.



Deferred Outflows/Inflows of Resources

Compensated Absences

Net Position / Fund Balance Classification

Spendable Fund Balances:

Deferred outflows of resources represent a consumption of net position that applies to a future periodand therefore will not be recognized as expended until then. The Board presents deferred outflowsassociated with 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.


Committed Fund Balance: Amounts that are committed for specific purposes by formal action of thegovernments’ 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 unless thegovernment removes or changes the limitation by taking the same form of action it employed topreviously impose the limitation.

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Restricted Fund Balance: Amounts that are restricted to specific purposes, and are restricted throughenabling legislation and are legally enforceable. The legislation that creates the revenue stream mustalso stipulate the purposes for which that revenue can be used.

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 .

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 arenot restricted, committed or assigned.



Net Position / Fund Balance Classification (continued)

Spendable Fund Balances (continued):

Use of Estimates

New Accounting Pronouncement

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, limitedor assigned to specific purposes within the general fund.

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.

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

September 30, 2016

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 governments andrestrictions imposed by law through constitutional provisions or enabling legislation.

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

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


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.

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

NOTE 4 - CASH, CASH EQUIVALENTS AND INVESTMENTS


The East Hendry County Fire District has a deficit fund balance of $441,320. It is anticipated that the deficitwill be resolved in the next fiscal year through an adjustment.

The East Hendry County Recreational MSBU has a deficit fund balance of $28,503. It is anticipated that thedeficit will be resolved in the next fiscal year through an adjustment.

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.

No accrual for the property tax levy becoming due in November 2016 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.

Millage resolution approved- no later than 93 days following certification of assessment roll

Deficit Fund Balances

Beginning of fiscal year for which taxes have been levied- October 1

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

NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Due date- March 31

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


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, 2016.

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NOTE 4 - CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED)

Enterprise:Labelle Utility

Accounts receivable 3,060,665$Less: allowance for bad debt -Total receivables 3,060,665$

NOTE 6 - SPECIAL ASSESSMENT

NOTE 7 - RESTRICTED ASSETS AND LIABILITIES

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September 30, 2016

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. Therewere no violations of this policy during the fiscal year.

NOTE 5 - ACCOUNTS RECEIVABLE

At September 30, 2016, 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, $17,692,235, is insured by Federal depositoryinsurance and pursuant to Chapter 280, Florida Statutes.

Restricted cash 2,135,711$

Current portion of long-term debt 321,818$ Customer deposits 193,487

515,305$ Total

Remainder of this page is intentionally left blank

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September 30, 2016

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, 2016, 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, 2016 comprised of the following:

Beginning EndingBalance Balance

Governmental Activities 10/01/2015 Increases Decreases Adjustments 09/30/2016

Capital Assets not being depreciated:Land 6,704,622$ 8,499$ -$ -$ 6,713,121$Construction in progress 1,148,577 6,163,734 - (479,757) 6,832,554

Total capital assets not being depreciated 7,853,199 6,172,233 - (479,757) 13,545,675

Capital assets being depreciated:Buildings and improvements 127,836,476 335,323 (24,479) (484,762) 127,662,558Furniture and equipment 29,680,587 1,814,185 (1,329,558) 964,519 31,129,733

Total capital assets being depreciated 157,517,063 2,149,508 (1,354,037) 479,757 158,792,291

Less accumulated depreciation for:Buildings and improvements (87,144,577) (791,311) 8,814 (195,546) (88,122,620)Furniture and equipment (24,181,940) (3,166,336) 1,330,718 195,546 (25,822,012)

Total accumulated depreciation (111,326,517) (3,957,647) 1,339,532 - (113,944,632)Total capital assets being depreciated, net 46,190,546 (1,808,139) (14,505) 479,757 44,847,659

54,043,745$ 4,364,094$ (14,505)$ -$ 58,393,334$

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 29,117,920 - - (112,260) 29,005,660Furniture and equipment 134,768 - - 112,249 247,017

Total capital assets being depreciated 29,252,688 - - (11) 29,252,677

Less accumulated depreciation for:Buildings and improvements (7,833,627) (962,035) - 63,368 (8,732,294)Furniture and equipment (141,993) (7,416) - (63,357) (212,766)

Total accumulated depreciation (7,975,620) (969,451) - 11 (8,945,060)Total capital assets being depreciated, net 21,277,068 (969,451) - - 20,307,617

21,814,074$ (969,451)$ -$ -$ 20,844,623$


September 30, 2016

NOTE 8 - CAPITAL ASSETS

Total governmental activities capital assets, net

Total business-type activities capital assets, net

During the year ended September 30, 2016, the following changes in capital assets occurred:

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Governmental activities:

General government 892,682$Court related 31,219Public safety 1,037,576Physical environment 212,653Transportation 409,952Economic environment 90,922Culture and recreation 76,939Human services 1,205,704

Total depreciation cost for governmental activities 3,957,647$

Business-type activities:

Water and wastewater depreciation cost 969,451$

NOTE 9 - LONG-TERM DEBT

Revenue Bonds

3,337,800$

3,308,000

Total business-type - revenue bonds 6,645,800

Notes Payable

1,103,292

1,045,414

Total business-type - notes payable 2,148,706

Total Business-Type - Revenue Bonds and Notes Payable 8,794,506$

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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, 2016, 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.

Depreciation costs were charged to functions/ programs as follows:


September 30, 2016

Notes Payable

Total governmental - notes payable

$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. 199,138

$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.

391,943

87,482

$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.

$650,000 loan from a financial institution for the purchase of airplane hangars bearinginterest at a rate of 2.625%, annual payments of differing values. Final payment due January2019. 141,431$

49,325

$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.

106,461

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


September 30, 2016

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. 100,801

1,259,786

71,777

$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. 111,428

Capital Leases

Total governmental - capital leases

Other Payables

Total governmental - other payables

Total Government Funds Long-Term Debt

TOTAL LONG-TERM DEBT

66,593

On September 20, 2013, the Hendry County Sheriff entered into a leasing agreement for fourK-9 SUVs for $188,054 bearing interest at a rate of 12.56%, annual principal payments of$47,013. Final payment due September 30, 2017. 47,013

On August 15, 2013, the Hendry County Sheriff entered into a leasing agreement for sixsquad cars for $266,372 bearing interest at a rate of 12.56%, annual principal payments of$66,593. Final payment due September 15, 2017.

September 30, 2016


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

23,999

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. 33,590


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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. 212,802

742,289

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.

Post-closure care costs for monitoring of the landfill for twenty years after the landfill hasstopped accepting waste and the final cover has been completed. The County has 1 yearremaining.

42,842

2,044,917

10,839,423$

42,842

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. 358,292

FiscalYear(s) Principal Interest Principal Interest Principal Interest

2017 730,071$ 79,042$ 321,818$ 457,063$ 1,051,889$ 536,105$2018 584,051 45,116 340,204 438,433 924,255 483,5492019 444,034 27,224 360,552 418,668 804,586 445,8922020 189,707 15,242 381,016 397,703 570,723 412,9452021 97,054 2,575 400,628 375,459 497,682 378,0342022 - - 424,290 351,860 424,290 351,8602023 - - 449,363 326,815 449,363 326,8152024 - - 475,922 300,231 475,922 300,2312025 - - 504,149 272,017 504,149 272,017

2026-2030 - - 1,650,265 1,006,696 1,650,265 1,006,6962031-2035 - - 1,720,902 630,108 1,720,902 630,1082036-2047 - - 1,765,397 524,447 1,765,397 524,447

Total 2,044,917$ 169,199$ 8,794,506$ 5,499,500$ 10,839,423$ 5,668,699$

Bond Resolutions

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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Business-typeLong-Term Debt Long-Term Debt

Government Funds


September 30, 2016

The annual debt service requirements at September 30, 2016, were as follows:


Bond Resolutions (continued)

Beginning EndingBalance Balance Due Within

10/1/2015 Additions Reductions 9/30/2016 One YearGovernmental Activities

Notes Payable 747,745$ 866,447$ (354,406)$ 1,259,786$ 375,121$Capital Leases 594,133 405,912 (257,756) 742,289 312,108Landfill Closure 84,919 - (42,077) 42,842 42,842Other Post Employment

Benefits 1,678,137 268,310 - 1,946,447 -FRS Pension Liability 8,509,033 9,723,780 - 18,232,813 -HIS Liability 4,731,035 751,860 - 5,482,895 -Compensated Absences 1,836,719 77,126 - 1,913,845 -

Total governmental activitieslong-term liabilities 18,181,721$ 12,093,435$ (654,239)$ 29,620,917$ 730,071$

Business-Type ActivitiesPort LaBelle Utility Systems

Notes Payable 2,294,051$ -$ (145,345)$ 2,148,706$ 155,518$Revenue Bonds 6,803,900 - (158,100) 6,645,800 166,300FRS Pension liability 148,396 115,172 - 263,568 -HIS Liability 97,316 7,498 - 104,814 -Compensated Absences 27,626 4,798 - 32,424 -

Total business-type activitieslong-term liabilities 9,371,289$ 127,468$ (303,445)$ 9,195,312$ 321,818$

NOTE 10 - LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS

NOTES TO THE FINANCIAL STATEMENTS

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September 30, 2016

Changes in bonded and other indebtedness of the Board for the year ended September 30, 2016, 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:

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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.

NOTE 11 - CONTINGENCIES

September 30, 2016


Pension Plan

NOTE 12 - RETIREMENT PLAN (CONTINUED)


September 30, 2016

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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.

Pension Plan (continued)

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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.


September 30, 2016


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.


The County’s contributions to the Pension Plan totaled $1,598,337 for the fiscal year ended September 30,2016.

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September 30, 2016


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, 2015 through June 30, 2016 and from July 1,2016 through September 30, 2016, respectively, were as follows: Regular--7.26% and 7.52%; Special RiskAdministrative Support--32.95% and 28.06%; Special Risk--22.04% and 22.57%; Senior Management Service--21.46% and 21.77%; Elected Officers’--42.27% and 42.47%; and DROP participants--12.88% and 12.99%.These employer contribution rates include 1.66% HIS Plan subsidy for the period of October 1, 2015 throughSeptember 30, 2016. Other than DROP participants, these employer contribution rates include .04% and .06administrative fee for the periods October 1, 2015 through June 30, 2016 and July 1, 2016 through September30, 2016, respectively.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions – At September 30, 2016, the County reported a liability of $18,496,380 forits proportionate share of the Pension Plan’s net pension liability. The net pension liability was measured as ofJune 30, 2016, 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 2015-16 fiscal year contributions relative to the 2014-16 fiscal year contributions of allparticipating members. At June 30, 2016, the County's proportionate share was 0.073%, which was a increaseof 0.006% from its proportionate share measured as of June 30, 2015.



Differences between expected and actualexperience 1,416,225$ (172,214)$

Change of assumptions 1,118,976 -

Net difference between projected and actualearnings on Pension Plan investments 4,781,089 -

Changes in proportion and differences betweenCounty Pension Plan contributions and proportionate share of contributions 1,260,642 (752,209)

County Pension Plan contributions subsequentto the measurement date 481,588 -

9,058,520$ (924,423)$

Amount

1,029,7041,029,7042,893,6692,107,814

444,740146,878

For the fiscal year ended September 30, 2016, the County recognized pension expense of $1,060,439,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, 2016


Deferred Outflows of Resources

Deferred Inflows of Resources

Total

The deferred outflows of resources related to the Pension Plan, totaling $481,588 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, 2017. 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:

2017201820192020

Thereafter

I-51

2021


Inflation 2.60%Salary increases 3.25%, average, including inflationInvestment rate of return 7.60%, net of pension plan investment expense,

including inflation

Asset Class

Cash 1.0% 3.0% 3.0% 1.7%Fixed income 18.0% 4.7% 4.6% 4.6%Global equity 53.0% 8.1% 6.8% 17.2%Real estate (property) 10.0% 6.4% 5.8% 12.0%Private equity 6.0% 11.5% 7.8% 30.0%Strategic investments 12.0% 6.1% 5.6% 11.1%

Total 100.0%

Assumed Inflation - Mean 2.6% 1.9%

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

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:

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, 2016


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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:

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


County's proportionate share of the net pensionliability/(asset) 34,053,088$ 18,496,380$ 5,547,475$

HIS Plan

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 7.60%, 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 (6.60%) or one percentage pointhigher (8.60%) 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, 2016, the County reported $59,315 payable for outstandingcontributions 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, 2016

Discount Rate - The discount rate used to measure the total pension liability was 7.65%. 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 (6.60%)

Discount Rate (7.60%)


1% Increase (8.60%)

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Benefits Provided – For the fiscal year ended September 30, 2016, 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.

HIS Plan (continued)


September 30, 2016


Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions – At September 30, 2016, the County reported a liability of $5,587,709 for itsproportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June30, 2016, 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 2015-16 fiscal year contributions relative to the 2014-15 fiscal year contributions of allparticipating members. At June 30, 2016, the County's proportionate share was 0.048%, which was an increaseof 0.001% from its proportionate share measured as of June 30, 2015.

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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, 2015, the HIS contribution for the period October 1, 2015through September 30, 2016 was 1.66%. The County contributed 100% of its statutorily required contributionsfor the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund fromwhich payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislativeappropriation.

The County’s contributions to the HIS Plan totaled $247,253 for the fiscal year ended September 30, 2016.

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 -$ (12,727)$

Change of assumptions 876,854 -

Net difference between projected and actualearnings on HIS Plan investments 2,825 -

Changes in proportion and differences betweenCounty HIS Plan contributions and proportionate share of contributions 132,285 (126,831)

County HIS Plan contributions subsequentto the measurement date 65,297 -

1,077,261$ (139,558)$

Amount

150,588$150,588150,050149,791146,429124,960

Total

Fiscal Year Ending September 30:

20172018

The deferred outflows of resources related to the HIS Plan, totaling $65,297 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, 2017. 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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20192020

Thereafter

Deferred Outflows of Resources

Deferred Inflows of Resources


September 30, 2016


For the fiscal year ended September 30, 2016, the County recognized HIS expense of $211,384. In addition theCounty reported deferred outflows of resources and deferred inflows of resources related to pensions from thefollowing sources:

Description


Inflation 2.60%Salary increases 3.25%, average, including inflationMunicipal bond rate 2.85%

County's proportionate shareof the net pension liability 6,410,372$ 5,587,709$ 4,904,944$

Discount Rate - The discount rate used to measure the total pension liability was 2.85%. 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 2.85%, 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 (1.85%) or one percentagepoint higher (3.85%) than the current rate:

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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:


September 30, 2016


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 (1.85%)

Discount Rate (2.85%)

1% Increase (3.85%)

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.


Investment Plan

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 0.04% of payroll and by forfeited benefits of plan members.Allocations to the investment member's accounts during the 2014-15 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, 2015, the information for the amount of forfeitures was unavailable from theSBA; however, management believes that these amounts, if any, would be immaterial to the Board.

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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, 2016, the County reported a payable of $8,479 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, 2016


Investment Plan (continued)

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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, 2016


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.

The County’s Investment Plan contributions totaled $405,838 for the fiscal year ended September 30, 2016.

Active Employees 3329

Covered Spouses 1

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Hendry County had an actuarial valuation performed for the plan as of October 1, 2014 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, 2016. The County’s annual OPEB cost for the fiscal year was set at $335,951as the transition liability was set to zero as of September 30, 2016.

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, 2016, membership consisted of:

Retired Participants


September 30, 2016

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.

Valuation Date 10/1/2014 10/1/2014Applicable for Fiscal Year Ending 9/30/2015 9/30/2016

Annual Required Contribution (ARC) 360,507$ 370,581$Interest on Net OPEB Obligation 58,060 67,886Adjustment to Annual Required Contribution (86,656) (102,516)Annual OPEB Cost 331,911 335,951Contributions Made (86,254) (86,649)Increase in Net OPEB Obligation 245,657 249,302Beginning, Net OPEB Obligation 1,451,488 1,697,145Ending, Net OPEB Obligation 1,697,145$ 1,946,447$

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

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

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

September 30, 2016 335,951$ 25.8% 1,946,447$September 30, 2015 331,911$ 26.0% 1,697,145$

352,678$ 17.3% 1,451,488$

Schedule of Funding Progress:

Actuarial Valuation Date 10/01/14 10/01/12Actuarial Value of Assets (a) -$ -$ Accrued Liability (AAL)- Entry Age (b) 2,325,427 2,387,378Unfunded AAL (UAAL) (b-a) 2,325,427 2,387,378Funded Ratio (a/b) 0.0% 0.0%Covered Payroll ( c) 11,592,700$ 11,950,650$UAAL as a % of Covered Payroll ((b-a)/c) 20.1% 20.0%

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, 2016


September 30, 2014

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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 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

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.


September 30, 2016


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.

Pre-medicare: 7.25% in fiscal 2016 (grading down 0.75% per year to 5% infiscal 2019, with an ultimate rate of 4.50% in fiscal 2020)

Post-medicare: 7.25% in fiscal 2016 (grading down 0.75% per year to 5%in fiscal 2019, with an ultimate rate of 4.50% in fiscal 2020)

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

Operating Leases

40,392$

Total operating leases 40,392$

FiscalYear(s) Principal Interest Total

2017 40,392$ 7,610$ 48,002$

Total 40,392$ 7,610$ 48,002$

Fund Balance Commitments

NOTE 16 - RESTATEMENTS

The October 1, 2015 net position for the Enterprise Fund, Port LaBelle Utility System, has been decreased by$1,252,927 and restated as $17,203,646 as a result of the overstatement of cash and cash equivalents in FiscalYears Ending September 30, 2011 through September 30, 2015. The County did not properly record thereceipt of the cash from the release of escrow funds. The restricted investments balance was reduced and thecorrect balance was recorded as restricted cash and cash equivalents to correct this error. The effect of thiserror has been an overstatement of assets- restricted investments, an understatement of assets- restricted cashand cash equivalents, and an overstatement of net position in the proprietary fund and total primarygovernment Statement of Net Position.

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Operating Lease - Commitments

The annual commitments requirement for operating leases at September 30, 2016, were asfollows:

On September 20, 2013, the Hendry County Sheriff entered into a leasing agreement for tenvehicles for $168,333, bearing interest at a rate of 15.73%, annual principal payments of$41,891. Final payment due September 30, 2017.


The County adopted a resolution to commit $5,000,000 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 772,646$ 299,772$ 90,345$ 690,669$ Investments 4,224,093 - - - Prepaid expenses - 75 - - Receivables, net 2,490,086 101,535 - 180,210

Total assets 7,486,825$ 401,382$ 90,345$ 870,879$


Accounts payable 2,787,530$ 9,287$ -$ 140,501$ Accrued liabilities 110,359 22,096 12,279 642,270 Other liabilities 164,962 369,999 78,066 88,108

Total liabilities 3,062,851 401,382 90,345 870,879

Fund balancesCommitted 3,300,000 - - - Unassigned 1,123,974 - - -

Total fund balances 4,423,974 - - -

Total liabilities and fund balances 7,486,825$ 401,382$ 90,345$ 870,879$

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COMBINING SCHEDULE - BALANCE SHEETGENERAL FUND

As of September 30, 2016

REQUIRED SUPPLEMENTARY INFORMATION

Supervisor Tax of Elections Collector Total

-$ 119,447$ 1,972,879$- - 4,224,093 - - 75

3,296 38,431 2,813,558

3,296$ 157,878$ 9,010,605$

-$ 7,230$ 2,944,548$3,296 32,686 822,986

- 117,962 819,097

3,296 157,878 4,586,631

- - 3,300,000 - - 1,123,974

- - 4,423,974

3,296$ 157,878$ 9,010,605$

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Board of County Clerk of PropertyCommissioners Circuit Court Appraiser Sheriff

REVENUESTaxes 15,105,599$ -$ -$ -$Licenses and permits 41,815 - - - Intergovernmental 5,821,930 97,316 - 487,737Charges for services 1,779,275 1,003,012 1,286,139 338,698Miscellaneous 759,618 10,385 714 51,686

Total revenues 23,508,237 1,110,713 1,286,853 878,121

EXPENDITURESCurrent

General government 6,453,089 919,757 1,208,787 - Court related - 989,534 - 247,060Public safety 4,754,997 - - 11,488,204Physical environment 445,449 - - - Economic environment 288,002 - - - Culture and recreation 109,119 - - - Human services 925,567 - - -

Capital outlayGeneral government 19,297 - - - Public safety 398,477 - - 523,952Physical environment 32,437 - - - Transportation - - - -

Debt servicePrincipal retirement 182,735 - - 257,757Interest and fiscal charges 12,399 - - 17,309

Total expenditures 13,621,568 1,909,291 1,208,787 12,534,282

Excess (deficiencies) of revenues over(under) expenditures 9,886,669 (798,578) 78,066 (11,656,161)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 391,943 - - 382,180Transfers in 3,367,247 1,045,519 - 11,305,076Transfers out (12,720,242) (246,941) (78,066) (31,095)

Total other financing sources (uses) (8,961,052) 798,578 (78,066) 11,656,161

Net change in fund balances 925,617 - - -

Fund balances - October 1, 2015 3,498,357 - - - Fund balances - September 30, 2016 4,423,974$ -$ -$ -$


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

GENERAL FUNDAs of September 30, 2016


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Supervisor Tax of Elections Collector Total

-$ -$ 15,105,599$- - 41,815- - 6,406,983- 1,622,242 6,029,366

3,367 5,120 830,8903,367 1,627,362 28,414,653

508,808 1,495,452 10,585,893- - 1,236,594- - 16,243,201- - 445,449- - 288,002- - 109,119- - 925,567

- 13,948 33,245- - 922,429- - 32,437- - -

- - 440,492- - 29,708

508,808 1,509,400 31,292,136

(505,441) 117,962 (2,877,483)

- - 774,123508,808 - 16,226,650

(3,367) (117,962) (13,197,673)505,441 (117,962) 3,803,100

- - 925,617

- - 3,498,357-$ -$ 4,423,974$

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Budget Actual Budget ActualREVENUES

Taxes 15,831,634$ 15,105,599$ -$ -$Licenses and permits 118,825 41,815 - -Intergovernmental 5,881,178 5,821,930 - 97,316Charges for services 1,910,370 1,779,275 1,059,534 1,003,012Miscellaneous 912,241 759,618 - 10,385

Total revenues 24,654,248 23,508,237 1,059,534 1,110,713

EXPENDITURESCurrent

General government 6,553,927 6,453,089 1,045,519 919,757Court related - - 1,059,534 989,534Public safety 4,598,928 4,754,997 - -Physical environment 487,158 445,449 - -Economic environment 350,629 288,002 - -Culture and recreation 107,924 109,119 - -Human services 980,795 925,567 - -

Capital outlayGeneral government 32,111 19,297 - -Public safety 421,943 398,477 - -Physical environment 40,000 32,437 - -Transportation 500 - - -

Debt Service -Principal retirement 225,500 182,735 - -Interest and fiscal charges 12,596 12,399 - -

Contingency - - - -Total expenditures 13,812,011 13,621,568 2,105,053 1,909,291

Excess (deficiencies) of revenues over(under) expenditures 10,842,237 9,886,669 (1,045,519) (798,578)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 391,943 391,943 - -Transfers in 3,078,130 3,367,247 1,045,519 1,045,519Transfers out (12,868,954) (12,720,242) - (246,941)

Total other financing sources (uses) (9,398,881) (8,961,052) 1,045,519 798,578

Net change in fund balances 1,443,356 925,617 - -

Fund balances - October 1, 2015 (1,443,356) 3,498,357 - -Fund balances - September 30, 2016 -$ 4,423,974$ -$ -$

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

-$ -$ -$ -$ -$ -$- - - - - -- - 487,737 487,737 - -

1,286,139 1,286,139 338,698 338,698 - -- 714 43,252 51,686 - 3,367

1,286,139 1,286,853 869,687 878,121 - 3,367

1,255,552 1,157,817 - - 508,808 508,808- - 246,951 247,060 - -- - 11,469,788 11,488,204 - -- - - - - -- - - - - -- - - - - -- - - - - -

30,587 50,970 - - - -- - 705,204 523,952 - -- - - - - -- - - - - -

- - 85,000 275,066 - -- - - - - -- - 50,000 - - -

1,286,139 1,208,787 12,556,943 12,534,282 508,808 508,808

- 78,066 (11,687,256) (11,656,161) (508,808) (505,441)

- - 382,180 382,180 - -- - 11,305,076 11,305,076 508,808 508,808- (78,066) - (31,095) - (3,367)- (78,066) 11,687,256 11,656,161 508,808 505,441

- - - - - -

- - - - - --$ -$ -$ -$ -$ -$

of ElectionsProperty

I-68

SheriffSupervisor

Appraiser

Variance -Positive

Budget Actual Budget Actual (Negative)REVENUES

Taxes -$ -$ 15,831,634$ 15,105,599$ (726,035)$Licenses and permits - - 118,825 41,815 (77,010)Intergovernmental - - 6,368,915 6,406,983 38,068Charges for services 1,598,388 1,622,242 6,193,129 6,029,366 (163,763)Miscellaneous - 5,120 955,493 830,890 (124,603)

Total revenues 1,598,388 1,627,362 29,467,996 28,414,653 (1,053,343)

EXPENDITURESCurrent

General government 1,584,440 1,495,452 10,948,246 10,534,923 413,323Court related - - 1,306,485 1,236,594 69,891Public safety - - 16,068,716 16,243,201 (174,485)Physical environment - - 487,158 445,449 41,709Economic environment - - 350,629 288,002 62,627Culture and recreation - - 107,924 109,119 (1,195)Human services - - 980,795 925,567 55,228

Capital outlayGeneral government 13,948 13,948 76,646 84,215 (7,569)Public safety - - 1,127,147 922,429 204,718Physical environment - - 40,000 32,437 7,563Transportation - - 500 - 500

Debt ServicePrincipal retirement - - 310,500 457,801 (147,301)Interest and fiscal charges - - 12,596 12,399 197

Contingency - - 50,000 - 50,000Total expenditures 1,598,388 1,509,400 31,867,342 31,292,136 575,206

Excess (deficiencies) of revenues over(under) expenditures - 117,962 (2,399,346) (2,877,483) (478,137)

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt - - 774,123 774,123 -Transfers in - - 15,937,533 16,226,650 289,117Transfers out - (117,962) (12,868,954) (13,197,673) (328,719)

Total other financing sources (uses) - (117,962) 3,842,702 3,803,100 (39,602)

Net change in fund balances - - 1,443,356 925,617 (517,739)

Fund balances - October 1, 2015 - - (1,443,356) 3,498,357 4,941,713Fund balances - September 30, 2016 -$ -$ -$ 4,423,974$ 4,423,974$



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 80,834$ 9,447$ 314$ 549,088$ 9,970$Prepaid expenses - - - - -Receivables (net) - 22,312 4,302 - 173,568

Total assets 80,834$ 31,759$ 4,616$ 549,088$ 183,538$


Accounts payable 10,538$ 553$ 2,468$ 16$ 85$Accrued liabilities - 313 - 627 - Unearned revenue - - - - - Other liabilities - - - 475,830 -

Total liabilities 10,538 866 2,468 476,473 85

Fund balancesRestricted - - - - - Assigned 70,296 30,893 2,148 72,615 183,453

Total fund balances (deficits) 70,296 30,893 2,148 72,615 183,453

Total liabilities and fund balances 80,834$ 31,759$ 4,616$ 549,088$ 183,538$


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

31,086$ 181,610$ 2,404$ 734,446$ 460,634$ 258,203$ 788,621$- - - - - - - - 100 13,918 1,481 736 12,108

31,086$ 181,710$ 16,322$ 735,927$ 460,634$ 258,939$ 800,729$

4,573$ 1,524$ 446,271$ 33,536$ 1,486$ 126,206$ 282,042$- - 11,371 1,550 - 814 5,538- - - - - - -

1,200 1,164 - - - 160,422 - 5,773 2,688 457,642 35,086 1,486 287,442 287,580

- - - - - - - 25,313 179,022 (441,320) 700,841 459,148 (28,503) 513,14925,313 179,022 (441,320) 700,841 459,148 (28,503) 513,149

31,086$ 181,710$ 16,322$ 735,927$ 460,634$ 258,939$ 800,729$

I-71


Airport North Four WheelerSears Felda Labelle Corners Road

MSBU MSBU MSBU MSBU MSBU

ASSETSCash and cash equivalents 26,629$ 45,949$ 246,060$ 48,152$ 173,693$Prepaid expenses - - - - -Receivables (net) 1,000,000 250,053 - 300,000 67

Total assets 1,026,629$ 296,002$ 246,060$ 348,152$ 173,760$


Accounts payable 3,842$ 1,235$ 1,628$ 1,122$ 1,407$Accrued liabilities - - - - -Unearned revenue - - - - -Other liabilities - - - - -

Total liabilities 3,842 1,235 1,628 1,122 1,407

Fund balancesRestricted - - - - -Assigned 1,022,787 294,767 244,432 347,030 172,353

Total fund balances (deficits) 1,022,787 294,767 244,432 347,030 172,353

Total liabilities and fund balances 1,026,629$ 296,002$ 246,060$ 348,152$ 173,760$


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

16,348$ 408,469$ 3,729$ 12,154$ 88,183$ 136,159$ 171,424$ 28,646$- - - - - - 49,046 - - 10,540 - - 4,006 - 4,228 -

16,348$ 419,009$ 3,729$ 12,154$ 92,189$ 136,159$ 224,698$ 28,646$

929$ 77,402$ -$ 2,502$ -$ -$ -$ -$- - - - - - - - - - - - - - - - - 3,506 - - 2,000 - - - 929 80,908 - 2,502 2,000 - - -

- - - - - - 224,698 - 15,419 338,101 3,729 9,652 90,189 136,159 - 28,64615,419 338,101 3,729 9,652 90,189 136,159 224,698 28,646

16,348$ 419,009$ 3,729$ 12,154$ 92,189$ 136,159$ 224,698$ 28,646$


I-73

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

Fund Program Fund Commissary Activities Fund

ASSETSCash and cash equivalents 6,977$ 2,717$ 336,282$ 3,034$Prepaid expenses - - - -Receivables (net) - - 15,114 -

Total assets 6,977$ 2,717$ 351,396$ 3,034$


Accounts payable -$ -$ 1,964$ -$Accrued liabilities - - - -Unearned revenue - - - 3,000Other liabilities - - 8 -

Total liabilities - - 1,972 3,000

Fund balancesRestricted - - 349,424 34Assigned 6,977 2,717 - -

Total fund balances (deficits) 6,977 2,717 349,424 34

Total liabilities and fund balances 6,977$ 2,717$ 351,396$ 3,034$



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

390,620$ 44,951$ 8,383$ 451$ 13,680$ 67,085$ 5,386,432$- - - - - - 49,046

132,675 230,581 614,336 - - - 2,790,125523,295$ 275,532$ 622,719$ 451$ 13,680$ 67,085$ 8,225,603$

66,161$ 79,569$ 300,827$ 1,000$ -$ 1,637$ 1,450,523$1,674 801 801 - - 3,777 27,266

- - - - - - 3,0001,500 36,133 37,572 - - - 719,335

69,335 116,503 339,200 1,000 - 5,414 2,200,124

- - - - - - 574,156453,960 159,029 283,519 (549) 13,680 61,671 5,451,323453,960 159,029 283,519 (549) 13,680 61,671 6,025,479

523,295$ 275,532$ 622,719$ 451$ 13,680$ 67,085$ 8,225,603$

I-75


Law Court LocalEnforcement Section 8 Technology Affordable Emergency

Trust Housing Fund Housing 911REVENUES

Taxes -$ -$ -$ -$ -$Licenses and permits - - - - -Intergovernmental - 227,955 - 215,957 214,517

Charges for services - 29,407 37,730 - 164,959Fines and forfeitures 44,899 - - - -Miscellaneous - 21,380 69 - 665

Total revenues 44,899 278,742 37,799 215,957 380,141


General government - - 49,637 - -Court related - - - - -Public safety 11,287 - - - 174,713Physical environment - - - - -Transportation - - - - -Economic environment - 249,412 - 215,957 -Culture and recreation - - - - -

Capital outlayGeneral government - - - - -Public safety - - - - 137,714Physical environment - - - - -

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

Total expenditures 11,287 249,412 49,637 215,957 312,427

Excess (deficiencies) of revenues over (under) expenditures 33,612 29,330 (11,838) - 67,714

OTHER FINANCING SOURCES (USES)Proceeds from financing - - - - -Transfers in - - 18,704 - -Transfers out - - - - -

Total other financing sources (uses) - - 18,704 - -

Net change in fund balances 33,612 29,330 6,866 - 67,714

Fund balances - October 1, 2015 36,684 1,563 (4,718) 72,615 115,739Fund balances - September 30, 2016 70,296$ 30,893$ 2,148$ 72,615$ 183,453$




COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-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

62,808$ 43,239$ 501,251$ 461,152$ 279,537$ 330,062$ 539,351$- - - - - - - - - - - - - - - - - - 2,085 - - - - - - - - - 1,586 12,210 94,611 5,045 2,619 6,891

62,808 44,825 513,461 555,763 284,582 334,766 546,242

- - - - - - - - - - - - - - - - 608,447 366,303 - - -

55,883 19,067 - - - - - - - - - 270,091 - - - - - - - - - - - - - - 276,620 584,649

- - 17,710 87,482 - 13,060 - - - - - - - - - - - - - - -

- - - 15,520 - - - - - - 1,889 - - -

55,883 19,067 626,157 471,194 270,091 289,680 584,649

6,925 25,758 (112,696) 84,569 14,491 45,086 (38,407)

- - - 87,482 - - - - - - - - - - - - - - - - - - - - 87,482 - - -

6,925 25,758 (112,696) 172,051 14,491 45,086 (38,407)

18,388 153,264 (328,624) 528,790 444,657 (73,589) 551,55625,313$ 179,022$ (441,320)$ 700,841$ 459,148$ (28,503)$ 513,149$


I-77

Airport North Four WheelerSears Felda Labelle Corners Road

MSBU MSBU MSBU MSBU MSBUREVENUES

Taxes 94,678$ 22,923$ 47,643$ 17,216$ 92,786$Licenses and permits - - - - -Intergovernmental - - - - -

Charges for services - - - - -Fines and forfeitures - - - - -Miscellaneous 8,831 2,570 3,070 3,037 1,424

Total revenues 103,509 25,493 50,713 20,253 94,210


General government - - - - -Court related - - - - -Public safety - - - - -Physical environment 41,543 13,028 15,520 16,980 33,044Transportation - - - -Economic environment - - - -Culture and recreation - - - - -

Capital outlayGeneral government - - - -Public safety - - - - -Physical environment - - 305,654 - -

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

Total expenditures 41,543 13,028 321,174 16,980 33,044

Excess (deficiencies) of revenues over (under) expenditures 61,966 12,465 (270,461) 3,273 61,166

OTHER FINANCING SOURCES (USES)Proceeds from financing - - - - -Transfers in - - - - -Transfers out - - - - -

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

Net change in fund balances 61,966 12,465 (270,461) 3,273 61,166

Fund balances - October 1, 2015 960,821 282,302 514,893 343,757 111,187Fund balances - September 30, 2016 1,022,787$ 294,767$ 244,432$ 347,030$ 172,353$



NON-MAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended September 30, 2016


(CONTINUED)


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

10,929$ 440,861$ -$ 7,392$ -$ -$ -$ -$- - - - - - - - - 25,000 - 132,061 -- - - - - 121,564 - 17,981- - - - - - - -162 70,341 32 113 58,503 454 - 19

11,091 511,202 32 7,505 83,503 122,018 132,061 18,000

- - - - 11,497 112,500 108,828 5,704- - - - - - - -- - - - - - - -

11,161 446,316 - 11,685 - - - -- - - - - -

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

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

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

11,161 446,316 - 11,685 11,497 112,500 108,828 5,704

(70) 64,886 32 (4,180) 72,006 9,518 23,233 12,296

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

(70) 64,886 32 (4,180) 47,006 9,518 23,233 12,296

15,489 273,215 3,697 13,832 43,183 126,641 201,465 16,35015,419$ 338,101$ 3,729$ 9,652$ 90,189$ 136,159$ 224,698$ 28,646$


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 - - - 6,244

Charges for services - - - -Fines and forfeitures - - - -Miscellaneous 12,517 1,060 228,168 14

Total revenues 12,517 1,060 228,168 6,258


General government 8,786 1,062 - 6,244Court related - - - -Public safety - - 106,192 -Physical environment - - - -Transportation - - - -Economic environment - - - -Culture and recreation - - - -

Capital outlayGeneral government - - - -Public safety - - - -Physical environment - - 55,000 -

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

Total expenditures 8,786 1,062 161,192 6,244

Excess (deficiencies) of revenues over (under) expenditures 3,731 (2) 66,976 14

OTHER FINANCING SOURCES (USES)Proceeds from financing - - - -Transfers in - - - -Transfers out - - - -

Total other financing sources (uses) - - - -

Net change in fund balances 3,731 (2) 66,976 14

Fund balances - October 1, 2015 3,246 2,719 282,448 20Fund balances - September 30, 2016 6,977$ 2,717$ 349,424$ 34$



NON-MAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended September 30, 2016


(CONTINUED)


I-80

TotalLaBelle Airglades Seven K Murray Non-Major

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

-$ -$ -$ -$ 9,571$ -$ 2,961,399$- - - - - 319,194 319,194

16,590 214,990 - - - - 1,053,314440,431 470,408 1,834,816 - - - 3,119,381306,714 - - - - - 351,613180,273 1,100 326,308 1,693 - - 1,044,765944,008 686,498 2,161,124 1,693 9,571 319,194 8,849,666

5,510 - - 8,413 - - 318,181199,019 - - - - - 199,019332,830 - - - - 257,523 1,857,295

- - - - 5,034 - 669,261- 432,060 1,306,573 - - - 2,008,724- - - - - - 465,369- - - - - - 861,269

- 221,059 881,157 - - - 1,220,468- - - - - - 137,714- - - - - 360,654

- 36,677 - - - - 52,197- 5,380 - - - - 7,269

537,359 695,176 2,187,730 8,413 5,034 257,523 8,157,420

406,649 (8,678) (26,606) (6,720) 4,537 61,671 692,246

- - - - - - 87,482- - - - - - 18,704

(420,901) - - - - - (445,901)(420,901) - - - - - (339,715)

(14,252) (8,678) (26,606) (6,720) 4,537 61,671 352,531

468,212 167,707 310,125 6,171 9,143 - 5,672,948453,960$ 159,029$ 283,519$ (549)$ 13,680$ 61,671$ 6,025,479$

I-81


Clerk of Tax Circuit Court Sheriff Collector Total

ASSETSCash and cash equivalents 843,222$ 106,947$ 654,120$ 1,604,289$Receivables (net) 4,382 - - 4,382

Total assets 847,604$ 106,947$ 654,120$ 1,608,671$

LIABILITIES Accounts payable 79,481$ -$ -$ 79,481$Due to other constitutional officers - - 36,331 36,331 Due to other governments 627,674 6,217 64 633,955 Due to individuals 99,757 79,441 123,828 303,026 Due to other funds 40,692 21,289 - 61,981 Deposits - - 493,897 493,897

Total liabilities 847,604$ 106,947$ 654,120$ 1,608,671$


COMBINING SCHEDULE - BALANCE SHEETFIDUCIARY FUNDS


I-82


Beginning Ending Balance Additions Deletions Balance

Clerk of Circuit CourtASSETS

Cash and cash equivalents 2,839,193$ 9,157,828$ 11,153,799$ 843,222$Accounts Receivable 2,944 7,890 6,452 4,382

Total assets 2,842,137$ 9,165,718$ 11,160,251$ 847,604$

LIABILITIESAccounts payable 73,543$ 6,752,371$ 6,746,433$ 79,481$Due to other governments 617,273 5,120,334 5,109,933 627,674Due to individuals 2,092,423 1,045,649 3,038,315 99,757Due to other funds 58,898 2,131,102 2,149,308 40,692

Total liabilities 2,842,137$ 15,049,456$ 17,043,989$ 847,604$

SheriffASSETS

Cash and cash equivalents 126,083$ 692,517$ 711,653$ 106,947$Total assets 126,083$ 692,517$ 711,653$ 106,947$

LIABILITIESDue to other governments 6,833$ 8,672$ 9,288$ 6,217$Due to individuals 112,826 523,760 557,145 79,441Due to other funds 6,424 124,998 110,133 21,289

Total liabilities 126,083$ 657,430$ 676,566$ 106,947$

Tax CollectorASSETS

Cash and cash equivalents 578,800$ 59,737,753$ 59,662,433$ 654,120$Total assets 578,800$ 59,737,753$ 59,662,433$ 654,120$

LIABILITIESDue to other constitutional officers 37,335$ 4,788,827$ 4,789,831$ 36,331$Due to other governments 165 6,423,504 6,423,605 64 Due to individuals 58,338 732,711 667,221 123,828Due to other funds - 8,942 8,942 - Deposits 482,962 48,795,592 48,784,657 493,897

Total liabilities 578,800$ 60,749,576$ 60,674,256$ 654,120$


STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFIDUCIARY FUNDS



I-83

Beginning Ending Balance Additions Deletions Balance

TOTALASSETS

Cash and cash equivalents 3,544,076$ 69,588,098$ 71,527,885$ 1,604,289$Receivables (net) 2,944 7,890 6,452 4,382

Total assets 3,547,020$ 69,595,988$ 71,534,337$ 1,608,671$

LIABILITIESAccounts payable 73,543$ 6,752,371$ 6,746,433$ 79,481$Due to other constitutional officers 37,335 4,788,827 4,789,831 36,331Due to other governments 624,271 11,552,510 11,542,826 633,955Due to individuals 2,263,587 2,302,120 4,262,681 303,026Due to other funds 65,322 2,265,042 2,268,383 61,981Deposits 482,962 48,795,592 48,784,657 493,897

Total liabilities 3,547,020$ 76,456,462$ 78,394,811$ 1,608,671$

I-84

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

County's proportion of the net pension liability 0.07325% 0.06703% 0.06420%

18,496,380$ 8,657,429$ 3,917,027$

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

65.75% 72.44% 35.30%

84.88% 92.00% 96.09%

Note: Data was unavailable prior to 2014

2016 2015 2014

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

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

Contribution deficiency (excess) -$ -$ -$


13.20% 15.71% 15.33%


HENDRY COUNTY, FLORIDAREQUIRED SUPPLEMENTARY INFORMATION

Fiscal Year Ended September 30, 2016

I-85

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

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

Plan fiduciary net position as a 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, 2016For the Last Three Fiscal Years Ended June 30

Contributions as a percentage of covered-employee payroll

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

County's proportion of the HIS Plan liability 0.04734% 0.00473% 0.04660%

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


37.52% 33.32% 32.20%

0.97% 0.50% 0.99%


2016 2015 2014

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

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

Contribution deficiency (excess) -$ -$ -$


1.66% -1.36% -1.26%


I-86

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

Plan fiduciary net position as a 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


County's proportionate share of the HIS Plan liability



Schedule of the County's Proportionate Share of Health Insurance Subsidy Plan LiabilityFiscal Year Ended September 30, 2016

For the Last Three Fiscal Years Ended June 30


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, 2016, 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, 2017.

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.

I-87

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.

I-88

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, 2016. 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.

I-89

Opinion of Each Major Federal Program and State Financial Assistance Project

Report on Internal Control over Compliance


I-90

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, 2016.

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.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing ofinternal 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 reportis 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 15-DS-P4-39-36-01-255 10,485$ -$

Emergence Management Preparedness & Assistance (EMPG) 97.042 17-FG-40-09-36-01-099 11,976 - Emergence Management Preparedness & Assistance (EMPG) 97.042 16-FG-5A-09-36-01-092 35,859 -

47,835 -

58,320 -

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Passed through State of Florida, Department of Revenue Title IV Child Support Enforcement 93.563 COC26 97,316 -

97,316 -

FEDERAL AVIATION ADMINISTRATION

Airport Improvement Program - General Aviation Terminal building / Labelle Airport 20.106 FAA#03-12-0125-008-2015 171,066 -

171,066 -

DEPARTMENT OF JUSTICE - BUREAU OF JUSTICE ASSISTANCE

Passed through State of Florida Department of Law Enforcement Edward Byrne Memorial Justice Assistance Grant - Mobile Computing Phase IV 16.738 2016-JAGC HEND-1-H3-A57 19,913 - Truancy Court Grant 16.738 2016-JAGC HEND-3-H3-190 19,930 - Mobile Computing Upgrade 16.738 2015-DJ-BX-0487 4,906 - Truancy Intervention Specialist Grant 16.738 2015-DJ-BX-0487 4,905 - DOJ Grant Revenue 16.738 2015-DJ-BX-0487 4,906 -

54,560 - Passed through State of Florida Attorney General ARRA Recovery Act - Public Safety Partnership and Community Policing - COPS Hiring Recovery Program (CHRP) ** 16.710 2013UMWX0055 263,866 -

Bulletproof Vest Partnership Program 16.607 2014BUB14074280 3,358 - Bulletproof Vest Partnership Program 16.607 2015BUBX15079907 13 -

3,371 -

State Criminal Alien Assistance Program (SCAAP) 16.606 2013-AP-BX-0281 10,358 -

Victims of Crime Act (VOCA) Grant 15.575 V142-14204 35,709 -

367,864 -

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 227,954 -

227,954 -

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

TOTAL FEDERAL AVIATION ADMINISTRATION

TOTAL DEPARTMENT OF JUSTICE

TOTAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

I-91


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


TOTAL DEPARTMENT OF HOMELAND SECURITY

TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES

FEDERAL AGENCY FederalPass-through entity CFDA Federal Transfers to

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

DEPARTMENT OF AGRICULTURE

Passed through State of Florida Department of Agriculture & Consumer Services Cooperative Forestry Assistance - Volunteer Fire Assistance Grant 10.664 N/A 12,407 -

12,407 -

934,927$ -$ TOTAL FEDERAL AWARDS

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

TOTAL DEPARTMENT OF AGRICULTURE

I-92



SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - (CONTINUED)

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 15-11-20 70,503$ - Wireless 911 Emergency Telephone System 72.001 15-04-28 137,714 - Wireless 911 Emergency Telephone System 72.001 16-04-25 6,300 -

TOTAL STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES 214,517 -

STATE OF FLORIDA DEPARTMENT OF HEALTH

Emergency Medical Services (EMS) Matching Awards - Emergency Medical Grant 64.003 C4026 11,225 - Medical Services for Abused and Neglected Children 64.003 M4287 22,497 -

TOTAL STATE OF FLORIDA DEPARTMENT OF HEALTH 33,722 -

STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION

Intermodal Development Program - Airglades Airport Design and Construction Entrance Road to Airport 55.014 FM#410663-1-9401 883,767 -

Small County Outreach Program - Flaghole Road Project 55.009 FM#431898-1-5801 209,672 - Francisco Street Project 55.009 FM#435018-1-5801 54,421 - CR78 Construction of Phase III 55.009 FM#431886-1-5801 189,671 - CR78 Construction of Phase IV 55.009 FM#428157-1-5801 1,544,025 -

1,997,789 - County Incentive Grant Program - Helms Road Extention Design Services From SR29 to SR80 55.008 FM#419948-2-38-01 7,978 - Helms Road Extention Construction From SR29 to SR80 55.008 FM#419948-3-58-01 5,047,959 -

5,055,937 - Aviation Development Grants - LaBelle Land Acquisition 55.004 FM#438283-1-9401 8,499 - General Aviation Terminal Building-LaBelle Airport 55.004 FM#429210-1-9401 19,007 -

27,506 -

7,964,999 -

STATE OF FLORIDA DEPARTMENT OF STATE AND SECRETARY OF STATE

Acquisition, Restoration of Historic Properties 45.032 SC511 29,107 -

OF STATE 29,107 -

STATE OF FLORIDA HOUSING FINANCE CORPORATION

State Housing Initiatives Partnership Program (SHIP) 40.901 N/A 215,957 -

215,957 -

STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION

Statewide Surface Water Restoration and Wastewater Projects - Main from Airglades Airport to Clewiston 37.039 S0857 24,494 -

Small County Solid Waste Grant 37.012 SC615 90,909 -

TOTAL STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION 115,403 -


SCHEDULE OF STATE FINANCIAL ASSISTANCE


TOTAL STATE OF FLORIDA DEPARTMENT OF STATE AND SECRETARY

TOTAL STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION

TOTAL STATE OF FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY

I-93

StateSTATE AGENCY CSFA State Transfers to

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

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 20,209 - Emergency Management Preparedness & Assistance Base Grant 31.063 16-BG-83-09-36-01-025 83,700 -

103,909 -

8,677,614$ -$

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

TOTAL STATE FINANCIAL ASSISTANCE

TOTAL STATE OF FLORIDA EXECUTIVE OFFICE OF THE GOVENOR


SCHEDULE OF STATE FINANCIAL ASSISTANCE - (CONTINUED)


I-94


NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

YEAR ENDED SEPTEMBER 30, 2016

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, 2016. 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, 2016. 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, 2016, there were no 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.

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, 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. NOTE 5 – PRIOR FEDERAL AWARDS

The County expended $15,000 as a recipient of the federal grant CFDA 20.616 / Contact number: ARR24 during the prior fiscal year ended September 30, 2015. Although this grant was erroneously not included on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2015, these expenditures had no effect on major program determination or testing.

I-95


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? Yes X 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 program and state projects:

Federal Program: CFDA No.

DEPARTMENT OF JUSTICE – Public Safety Partnership and Community Policing Grant 16.710 State Project: CSFA No.

STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION– Intermodal Development Program 55.014 County Incentive Grant Program (CIGP) 55.008 STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES–

Wireless 911 Emergency Telephone System Rural County Grant Program 72.001 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

I-96


SCHEDULE OF FINDINGS AND QUESTIONED COST - FEDERAL AWARD PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS

(CONTINUED)


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. There were no findings required to be reported by 2 CFR 200.516(a) or OMB Circular A-133. 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.

I-97


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:

There were no audit findings in the current year independent auditor’s reports that required corrective action.

I-98


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, 2016, which collectively comprise theCounty's basic financial statements and have issued our report thereon dated June 27, 2017.

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.

I-99

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.

Financial Condition

Annual Financial Report

Special District Component Units

Other Matters

Purpose of this Letter


The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of theAuditor General. Accordingly, this management letter in not suitable for any other purpose.

I-100

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address 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 Board, we did not have any such findings.

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we report the results of ourdetermination as to whether or not the County has met one or more of the conditions described in Section218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit of thefinancial statements of the County, the results of our tests did not indicate the County met any of the specifiedconditions of a financial emergency contained in Section 218.503(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. It is management’s responsibility to monitor the County's financial condition, and ourfinancial condition assessment was based in part on representations made by management and the review offinancial information provided by same.

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, requires that we report the results of ourdetermination as to whether the annual financial report for the County for the fiscal year ended September 30, 2016,filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is inagreement with the annual financial audit report for the fiscal year ended September 30, 2016. Our comparison ofthese two reports resulted in no material differences.

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)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.


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, 2016. 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, 2016.

I-101

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, 2016

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-14


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

Other Financial Information

Combining Statement of Fiduciary Assets and Liabilities - All Agency Funds………………… II-16

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

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-20 - II-21

Independent Auditor's Management Letter II-22 - II-23

Report of Independent Accountant on Compliance with Local Government InvestmentPolicies, Article V Requirements, and Florida Statute 61.181 Requirements……………… II-24

Management's Response to Auditor's Management Letter………………………………….… 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




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, 2016, 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.

II - 1



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.

Opinions

Emphasis of Matter


Other Information

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, 2016 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.

II - 2

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 30,2016, 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.


II - 3


In accordance with Government Auditing Standards, we have also issued our report dated June 15, 2017, 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 299,772$ 171,424$ 471,196$ Accounts Receivable 3,217 - 3,217 Due from Other Funds 40,692 - 40,692 Due from Other Governments 57,626 4,228 61,854 Prepaid Expenses 75 49,046 49,121

Total Assets 401,382$ 224,698$ 626,080$

LIABILITIES AND FUND BALANCES

Liabilities

Accounts Payable 9,287$ -$ 9,287$ Accrued Payroll 22,096 - 22,096 Due to BOCC 252,796 - 252,796 Due to Other Governments 117,203 - 117,203

Total Liabilities 401,382 - 401,382

Fund Balance

Restricted - 224,698 224,698

Total Liabilities and Fund Balance 401,382$ 224,698$ 626,080$

See accompanying notes.


September 30, 2016Balance Sheet - Governmental Funds

II - 4

General Fund Modernization

Trust Fund Total Revenues

Intergovernmental 97,316$ 132,061$ 229,377$Charges for Services 1,003,012 - 1,003,012Miscellaneous 10,385 - 10,385

Total Revenues 1,110,713 132,061 1,242,774

ExpendituresGeneral Government 919,757 108,828 1,028,585Court Related 989,534 - 989,534

Total Expenditures 1,909,291 108,828 2,018,119

Excess of revenues over (under) expenditures (798,578) 23,233 (775,345)

Other financing sources (uses)Operating transfers in 1,045,519 - 1,045,519Operating transfers out (246,941) - (246,941)

Total other financing sources (uses) 798,578 - 798,578

Excess of revenues and other sources sources over (under) expenditures and other sources - 23,233 23,233

Fund Balance - October 1, 2015 - 201,465 201,465

Fund Balance - September 30, 2016 -$ 224,698$ 224,698$



II - 5


Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental Funds

Agency Funds

ASSETS

Cash 843,222$Accounts Receivable 62Due from Other Governments 4,320

Total Assets 847,604$

LIABILITIES

Accounts Payable 79,481$Due to Other Funds 40,692Due to Other Governments 627,674Due to Individuals 99,757

Total Liabilities 847,604$


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CLERK OF THE CIRCUIT COURTStatement of Fiduciary Assets and Liabilities- Agency Funds

September 30, 2016


Reporting Entity

(a) Fund Accounting

Governmental Funds

General Fund


Fiduciary Funds

Agency 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, 2016

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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.


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

Governmental Funds

Fiduciary Funds

Basis of Accounting

Budgetary Process

CLERK OF THE CIRCUIT COURTHENDRY COUNTY, FLORIDA

Notes to Financial StatementsSeptember 30, 2016

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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.


Encumbrances

(c) Assets, Liabilities and Equity

Capital Assets


Estimates

Fund Balances

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.



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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, 2016, the Clerk had $98,707 in long-term compensated absences payable. This amount isreported 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.

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, 2015, the Clerk had $224,698 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.


New Accounting Standards

NOTE 2 - CASH AND CASH INVESTMENTS

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, 2016,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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During the fiscal year, the Clerk maintained deposits in interest-bearing savings and checking accounts. AtSeptember 30, 2016, the bank balance of all accounts was $1,431,763 and the book balance of deposits was$1,313,883.

The Clerk had $535 of cash on hand at September 30, 2016.

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, 2016, the Clerk had nocommitted fund balances.

September 30, 2016

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, 2016, the Clerk had no committedfund balances.


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 (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 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.

CLERK OF THE CIRCUIT COURTNotes to Financial Statements

September 30, 2016

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, 2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were asfollows: regular 7.26% and 7.52%; county elected officers 42.27% and 42.47%; senior management 21.43%and 21.77%; special risk 22.04% and 22.57%; special risk administration 32.95% and 28.06%; rehired regularclass 4.31% and 4.49%; and DROP participants 12.88% and 12.99%. During the fiscal year ended September30, 2016, the Sheriff contributed to the plan an amount equal to 16.30% of covered payroll. During the fiscalyear ended September 30, 2016, the Clerk of the Circuit Court contributed to the plan an amount equal to

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NOTE 4 - GENERAL LONG-TERM DEBT

92,335$6,372

98,707$Long-term debt payable at September 30, 2016

The following changes in general long-term debt occurred during the year ended September 30, 2016:

Long-term debt payable at October 1, 2015Increase in accrued compensated absences

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 0.04 and 0.06 percent ofpayroll from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016,respectively, by forfeited benefits of plan members.

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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 $104,358, $18,445, and $13,695respectively, for the fiscal year ended September 30, 2016. The Clerk of the Circuit Court's payments afterJune 30, 2016, the measurement date used to determine the net pension liability associated with the PensionPlan and HIS Plan, amounted to $30,141, and $4,924, 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.

NOTE 5 - INSURANCE


NOTE 7- OTHER POST EMPLOYMENT BENEFITS

Plan Description


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, 2016, the Clerk wascharged $325,338.

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.



The Clerk participates in the County-wide self insurance program. The Hendry County, Florida, Board ofCounty Commissioners maintains a self-insurance internal service fund to administer insurance activitiesrelating to employee health insurance, life insurance, general liability, automobile liability and workers'compensation. Also, the Board carries excess insurance coverage for workers' compensation.


II - 13


September 30, 2016

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.

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.

NOTE 7- OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Membership


Active Employees 31 Eligible Retirees 4 Covered Spouses -

Funding Policy


September 30, 2016 24,799$ 6,396$ 25.8% 143,684$ September 30, 2015 29,053$ 7,550$ 26.0% 148,554$ September 30, 2014 28,662$ 4,957$ 17.3% 117,960$

187,767$-

187,767$

855,757$

21.9%

Valuation Methods and Assumptions

The funded status of the plan as of September 30, 2016 was as follows:

Employer ContributedFiscal Year Ended

Percentage of OPEB Cost Contributed

Net OPEB Obligation

II - 14



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

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, 2014 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, 2016. The Clerk's annual OPEB cost for the fiscal year was $24,799. TheClerk's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEBobligation from 2016 is as follows:

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).

INFORMATION

REQUIREDSUPPLEMENTARY

Variance withFinal Budget

Original Final Positive Budget Budget Actual (Negative)

Revenues

Intergovernmental -$ -$ 97,316$ 97,316$Charges for Services 1,081,155 1,059,534 1,003,012 (56,522)Miscellaneous - - 10,385 10,385

Total Revenues 1,081,155 1,059,534 1,110,713 51,179

ExpendituresGeneral Government

Personal Services 760,519 760,519 686,060 74,459 Operating Expenses 285,000 285,000 233,697 51,303

Court Related Personal Services 942,154 920,533 950,123 (29,590) Operating Expenses 139,001 139,001 39,411 99,590

Total Expenditures 2,126,674 2,105,053 1,909,291 195,762

Excess of expenditures over revenues (1,045,519) (1,045,519) (798,578) 246,941

Other financing sources (uses)Operating transfers in 1,045,519 1,045,519 1,045,519 -Operating transfers out - - (246,941) (246,941)

Total other financing sources (uses) 1,045,519 1,045,519 798,578 (246,941)

Excess of revenues and other sourcesover (under) expenditures and other uses - - - -

Fund Balance - October 1, 2015 - - - -

Fund Balance - September 30, 2016 -$ -$ -$ -$

II - 15


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 330,507$ 148,099$ 355,725$ 8,891$ 843,222$Accounts Receivable - - 62 - 62Due from Other Governments 4,320 - - - 4,320

Total Assets 334,827$ 148,099$ 355,787$ 8,891$ 847,604$

LIABILITIES

Accounts Payable 16,357$ -$ 63,124$ -$ 79,481$Due to Other Funds - - 40,692 - 40,692Due to Other Governments 318,470 57,233 251,971 - 627,674Due to Individuals - 90,866 - 8,891 99,757

Total Liabilities 334,827$ 148,099$ 355,787$ 8,891$ 847,604$

II - 16

Combining Statement of Fiduciary Assets and Liabilities- Agency Funds


September 30, 2016

Balance BalanceOctober 1, September 30,

2015 Additions Deletions 2016OPERATING TRUST

ASSETS

Cash 314,121$ 2,937,381$ 2,920,995$ 330,507$Accounts Receivable 50 3,428 3,478 -Due from Other Governments 2,865 4,400 2,945 4,320

Total Assets 317,036$ 2,945,209$ 2,927,418$ 334,827$

LIABILITIES

Accounts Payable 25,988$ 2,096,137$ 2,105,768$ 16,357$Due to Other Funds 29 62 91 -Due to Other Governments 291,019 4,359,836 4,332,385 318,470

Total Liabilities 317,036$ 6,456,035$ 6,438,244$ 334,827$

REGISTRY OF COURT

ASSETS

Cash 2,140,070$ 4,057,211$ 6,049,182$ 148,099$

Total Assets 2,140,070$ 4,057,211$ 6,049,182$ 148,099$

LIABILITIES

Accounts Payable -$ 3,028,656$ 3,028,656$ -$Due to Other Governments 57,233 - - 57,233Due to Individuals 2,082,837 1,036,266 3,028,237 90,866

Total Liabilities 2,140,070$ 4,064,922$ 6,056,893$ 148,099$


Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency FundsFor the fiscal year ended September 30, 2016

II - 17


2015 Additions Deletions 2016CHRISTMAS CLUB

ASSETS

Cash 9,586$ 9,383$ 10,078$ 8,891$

Total Assets 9,586$ 9,383$ 10,078$ 8,891$

LIABILITIES

Due to Individuals 9,586$ 9,383$ 10,078$ 8,891$

Total Assets 9,586$ 9,383$ 10,078$ 8,891$

FINES AND FORFEITURES

ASSETS

Cash 375,416$ 2,153,853$ 2,173,544$ 355,725$ Accounts receivable 29 62 29 62

Total Assets 375,445$ 2,153,915$ 2,173,573$ 355,787$

LIABILITIES

Accounts Payable 47,555$ 1,627,578$ 1,612,009$ 63,124$ Due to Other Funds 58,869 2,131,040 2,149,217 40,692 Due to Other Governments 269,021 760,498 777,548 251,971



Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency Funds

For the fiscal year ended September 30, 2016

II - 18

(Continued)


2015 Additions Deletions 2016TOTAL - ALL AGENCY FUNDS

ASSETS

Cash 2,839,193$ 9,157,828$ 11,153,799$ 843,222$ Accounts Receivable 79 3,490 3,507 62 Due from Other Governments 2,865 4,400 2,945 4,320

Total Assets 2,842,137$ 9,165,718$ 11,160,251$ 847,604$

LIABILITIES

Accounts Payable 73,543$ 6,752,371$ 6,746,433$ 79,481$ Due to Other Funds 58,898 2,131,102 2,149,308 40,692 Due to Other Governments 617,273 5,120,334 5,109,933 627,674 Due to Individuals 2,092,423 1,045,649 3,038,315 99,757

Total Liabilities 2,842,137$ 15,049,456$ 17,043,989$ 847,604$

CLERK OF THE CIRCUIT COURTHENDRY COUNTY, FLORIDA

Combining Statement of Changes in Fiduciary Assets and Liabilities - All Agency Funds(Continued)

II - 19

For the fiscal year ended September 30, 2016



Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Barbara S. Butler,

Hendry County, Florida


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, 2016, and the related notes to the financial statements, and have issuedour report thereon dated June 15, 2017, 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

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.

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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.




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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 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, 2016, and have issued our report thereon dated June 15, 2017.


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 Report of Independent Accountant on Compliance With LocalGovernment Investment Policies, Article V Requirements and Florida Statute 61.181 Requirements, regardingcompliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures inthose reports, which are dated June 15, 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 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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Other Matters

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 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.

Purpose of the Letter

The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General . Accordingly, this management letter is not suitable for any other purpose.


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 - 24


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, 2016. 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, 2016.

HENDRY COUNTY, FLORIDAPROPERTY APPRAISER

September 30, 2016

FINANCIAL STATEMENTS,TOGETHER WITH REPORTS OF INDEPENDENT

AUDITOR

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

Management's Response to Auditor's Management Letter……………………..………...……III-20

Table of Contents


Phone: 941.639.6600Fax: 941.639.6115

To the Honorable Phillip L. Pelletier,Property AppraiserHendry County, Florida





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, 2016, and the related notes to the financial statements, as listed in the table ofcontents.





III - 1

Opinions

Emphasis of Matter


Punta Gorda, FloridaMay 24, 2017


III - 2


In accordance with Government Auditing Standards , we have also issued our report dated May 24, 2017, 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 matters.The purpose of that report is to describe the scope of our testing of internal control over financial reportingand 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 Property Appraiser's internal control over financialreporting 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, 2016 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 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 PropertyAppraiser. They do not purport to, and do not, present fairly the financial position of Hendry County, Floridaas of September 30, 2016, 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 midifiedwith respect to this matter.

Other Matters


General Fund

Special Revenue

Fund

Total Governmental

Funds

ASSETS

Cash 90,345$ 136,159$ 226,504$

Total Assets 90,345$ 136,159$ 226,504$

LIABILITIES AND FUND EQUITY

LiabilitiesDue to Board of County Commissioners 78,066$ -$ 78,066$Accrued Wages 12,279 - 12,279

Total Liabilities 90,345 - 90,345

Fund EquityFund BalanceAssigned - 136,159 136,159

Total Liabilities and Fund Equity 90,345$ 136,159$ 226,504$


Balance Sheet - Governmental FundsSeptember 30, 2016

III-3

Special Total General Revenue Governmental

Fund Fund Funds Revenues

Charges for Services 1,286,139$ 121,564$ 1,407,703$ Miscellaneous 714 454 1,168

Total Revenues 1,286,853 122,018 1,408,871

Expenditures

General GovernmentPersonal Services 995,507 95,550 1,091,057 Operating Expenditures 162,310 16,950 179,260Capital Outlay 50,970 - 50,970

Total Expenditures 1,208,787 112,500 1,321,287

Excess of Revenues over Expenditures 78,066 9,518 87,584

Other financing (uses) sources

Operating transfers out (78,066) - (78,066)

Total other financing (uses) sources (78,066) - (78,066)

Excess of revenues and other sources over (under) expenditures and other uses - 9,518 9,518

Fund balances - October 1, 2015 - 126,641 126,641

Fund balances - September 30, 2016 -$ 136,159$ 136,159$

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

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 useby outside sources are recorded in the General Fund.


The Special Revenue Funds are used to account for proceeds of specific revenue sources that are legallyrestricted to expenditures for specified purposes.



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 aConstitutional County Officer subject to the general oversight of the Florida Department of Revenue. Theoffice receives compensation from several taxing authorities in the County, based on the budget approved bythe Department of 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 politicalsubdivision of the State of Florida. The position of Property Appraiser was established by Article VIII, Section1 (d) of the State 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:

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


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.

III-6



September 30, 2016

The Property Appraiser follows these procedures in establishing the budgetary data reflected in the financialstatements:

The budget for the General Fund is adopted on a basis consistent with generally acceptedgovernmental accounting principles.

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.

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.

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.

On or before June 1 of each year the Property Appraiser shall, concurrently submit an annual budgetto the Florida Department of Revenue and to the Board of County Commissioners. Budgetary controlis established at the functional level.


(c) Assets, Liabilities, and Equity (Continued)

Estimates

Fund Balances

Assigned

Unassigned Fund balance that has not been reported in any other classification.

NOTE 2 - CASH AND INVESTMENTS

At September 30, 2016, the book balance of deposits was $226,504 for the Property Appraiser and the bankbalance was $272,427.

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.

Assigned fund balances are constrained by the Property Appraiser's intent to beused for specific purposes, but are neither restricted nor committed.

III-7

PROPERTY APPRAISERHENDRY COUNTY, FLORIDA

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.

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, 2016, the Property Appraiser had $73,648 in long-term compensated absences payable.


"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, 2016

NOTE 3 - AMOUNTS DUE TO FUNDING ENTITIES AND EXCESS FUNDS


Changes in General Long-Term Debt

CompensatedAbsences

General long-term debt at 10/1/2015 82,693$

Decrease in accrued compensated absences (9,045)

General long-term debt at 9/30/2016 73,648$

NOTE 5 - GENERAL FIXED ASSETS


Plan Description

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.

Changes in the general long-term debt of the Property Appraiser for the year ended September 30, 2016, aresummarized below:


September 30, 2016

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

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.


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 financialstatements.

NOTE 6 - RETIREMENT PLAN - (Continued)

Plan Description - (Continued)

Funding Policy

Funding Policy

September 30, 2016Notes to Financial Statements

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, 2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were asfollows: regular 7.26% and 7.52%; county elected officers 42.27% and 42.47%; senior management 21.43%and 21.77%; re-hired regular service 4.31% and 4.49%; and DROP participants 12.88% and 12.99%. Duringthe fiscal year ended September 30, 2016, the Property Appraiser contributed to the plan an amount equal to8.17% 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 and beneficiaries 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.

PROPERTY APPRAISERHENDRY COUNTY, FLORIDA

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.

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 $39,153, $12,424 and $62,031,respectively, for the fiscal year ended September 30, 2016. The Property Appraiser's payments after June 30,2016, the measurement date used to determine the net pension liability associated with the Pension Plan andHIS Plan, amounted to $24,517, and $3,617, respectively. The Property Appraiser is not legally required toand does 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.


REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

III-10



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 0.04 and 0.06 percentof payroll from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016,respectively, by forfeited benefits of plan members.

September 30, 2016

PROPERTY APPRAISER


Plan Description



Membership



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 forthis purpose. Currently, the Property Appraiser has no employees receiving benefits.

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 of serviceor 30 years of special risk service, regardless of age, is normal retirement. Employees may retire early at 36and 8 years of service.

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, 2016

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.

NOTE 7 - OTHER POST-EMPLOYMENT BENEFITS - (Continued)


Annual Percentage ofOPEB Employer OPEB Cost Net OPEBCost Contributed Contributed Obligation

$ 16,497 $ 4,255 25.8% $ 95,584 $ 15,865 $ 4,123 26.0% $ 81,123 $ 15,919 $ 2,753 17.3% $ 65,518


Actuarial Accrued Liability (AAL) $ 124,909 Actuarial Value of Plan Assets -Unfunded Actuarial Accrued Liability (AAL) $ 124,909

Covered Payroll 569,280$

Ration of UAAL to Covered Payroll 21.9%




September 30, 2015


Fiscal Year Ended

September 30, 2016

PROPERTY APPRAISER

Hendry County had an actuarial valuation performed for the plan as of October 1, 2014 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, 2016. The Property Appraiser's annual OPEB cost for the fiscal year was$16,497. The Property Appraiser's annual OPEB cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation from 2016 is as follows:


September 30, 2014

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



Commitment to True Automation, Inc.

Licensed Software, Implementation and Training

Payment Due Date

Payment Amount

Initial payment upon execution of signed agreement PAID September, 2012 25,000$PACS software PAID September, 2013 61,000Hardware and third-party software PAID September, 2015 61,000Acceptance PAID July, 2016 58,299

Total Contract Payments 205,299Less: payments made (205,299)

Purchase Order 1 Commitment balance at of 9/30/2016 -$

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.

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.


III-13

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).

Item Description

For fiscal year ended September 30, 2016, the Property Appraiser was charged $161,541.

The Property Appraiser entered into a license and service agreement with True Automation Incorporated forthe purchase, installation, and training of the new appraising software in the amount of $205,299. TheProperty Appraiser disbursed an initial payment of $25,000 upon signing the agreement on 09/29/2011 andtwo additional payments of $61,000 on 09/18/2013 and 09/28/2015. The Property Appraiser the finalpayment of $58,299 on July 26, 2016, fulfilling the contracted commitment. Contract payments aretentatively scheduled as follows:

September 30, 2016


REQUIRED

INFORMATIONSUPPLEMENTARY

OriginalBudget

FinalBudget Actual

RevenuesCharges for Services 1,285,923$ 1,286,139$ 1,286,139$ -$Miscellaneous - - 714 714

Total Revenues 1,285,923 1,286,139 1,286,853 714

ExpendituresGeneral Government

Personal Services 1,032,436 1,032,652 995,507 37,145 Operating Expenditures 163,500 202,900 142,310 60,590 Capital Outlay 24,987 30,587 50,970 (20,383)Non-Operating 65,000 20,000 20,000 -


Excess of revenues over expenditures - - 78,066 78,066

Other financing sources (uses)

Operating transfers out - - (78,066) (78,066)

Total other financing sources (uses) - - (78,066) (78,066)


Fund balances - October 1, 2015 - - - -

Fund balances - September 30, 2016 -$ -$ -$ -$

Budget and ActualFor the Fiscal Year Ended September 30, 2016

III-14


GENERAL FUNDSchedule of Revenues, Expendituress and Changes in Fund Balances-


Positive(Negative)



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.

III-15

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.



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, 2016, and the related notes to the financial statements, and haveissued our report thereon dated May 15, 2017, 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 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.




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


Phone: 941.639.6600Fax: 941.639.6115




We have audited the financial statements of the Hendry County, Florida, Property Appraiser, as of and for thefiscal year ended September 30, 2016, and have issued our report thereon dated May 24, 2017.


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 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 May 24, 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 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 auditreport.



III-17





The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General . Accordingly this management letter is not suitable for any other purpose.

III-18

Other 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, 2016. 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, 2016.

HENDRY COUNTY, FLORIDASHERIFF

September 30, 2016


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

Management's Response to Auditor's Management Letter……………………………….……IV-31

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, 2016, and the related notes to the financial statements, as listed in the table of contents.





IV-1

Opinions

Emphasis of Matter


Other 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, 2016 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, 2016, 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 on page 17 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.


IV-2



In accordance with Government Auditing Standards , we have also issued our report dated May 22, 2017, 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 purposeof that 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 690,669$ 336,282$ 38,340$ 1,065,291$ Accounts Receivable - 2,259 - 2,259 Due from other Funds 8,434 12,855 - 21,289 Due from other Governments 171,776 - - 171,776

Total Assets 870,879$ 351,396$ 38,340$ 1,260,615$


Liabilities Accounts Payable 140,501$ 1,964$ -$ 142,465$ Accrued Liabilities 642,270 - - 642,270 Deferred Revenue 57,013 - - 57,013 Due to other Funds - - - - Due to other Governments 31,095 8 - 31,103

Total Liabilities 870,879 1,972 - 872,851

Fund EquityFund Balance

Assigned - - 38,340 38,340 Restricted - 349,424 - 349,424

Total Fund Equity - 349,424 38,340 387,764

Total Liabilities and Fund Equity 870,879$ 351,396$ 38,340$ 1,260,615$

See accompanying notes.IV-4



General Fund Commissary

Non-MajorGovernmental

Total Governmental

FundsRevenues

Intergovernmental 487,737$ -$ -$ 487,737$Charges for Services 338,698 - 17,981 356,679 Fines and Forfeitures - - 13,570 13,570 Interest 898 330 26 1,254Commission - 227,838 - 227,838 Miscellaneous 50,788 - - 50,788

Total Revenues 878,121 228,168 31,577 1,137,866

ExpendituresLaw Enforcement

Personal Services 6,813,622 - - 6,813,622 Operating Expenditures 1,467,335 - 15,552 1,482,887 Capital Outlay 495,122 - - 495,122 Debt Service

Principal 257,757 - - 257,757 Interest 17,309 - - 17,309

CorrectionsPersonal Services 2,456,084 57,570 - 2,513,654 Operating Expenditures 751,163 48,622 - 799,785 Capital Outlay 28,830 55,000 - 83,830

JudicialPersonal Services 247,060 - - 247,060

Total Expenditures 12,534,282 161,192 15,552 12,711,026

Excess of Revenues Over (Under)Expenditures (11,656,161) 66,976 16,025 (11,573,160)

Proceeds from financing 382,180 - - 382,180 Operating Transfers in 11,305,076 - - 11,305,076 Operating Transfers out (31,095) - - (31,095)

Total other Financing Sources (Uses) 11,656,161 - - 11,656,161

Excess of Revenues and Other SourcesOver (Under) Expenditures and Other Uses - 66,976 16,025 83,001

Fund Balance - October 1, 2015 - 282,448 22,315 304,763

Fund Balance - September 30, 2016 -$ 349,424$ 38,340$ 387,764$


IV-5


Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental FundsFor the Fiscal Year Ended September 30, 2016

Agency Funds

ASSETS

Cash 105,328$Accounts Receivable 1,619

Total assets 106,947$

LIABILITIES

Due to Other Governments 6,217$Due to Other Funds 21,289Due to Individuals 79,441



Statement of Fiduciary Assets and Liabilities- Agency FundsSeptember 30, 2016

IV-6


Reporting Entity

(a) Fund Accounting

Governmental Funds

General Fund


Fiduciary Funds

Agency Funds

SHERIFFHENDRY COUNTY, FLORIDA

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.



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

Governmental Funds

Basis of Accounting


Budgetary Process

Encumbrances

(c) Assets, Liabilities, and Equity

Capital Assets


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.


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.

SHERIFF

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.

September 30, 2016



Fund Balances

SHERIFFNotes to Financial Statements

September 30, 2016

Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending ofthese fund balances.


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, 2016, the Sheriff had long-term compensated absences payable of $1,155,947. This amountis reported in the government-wide financial statements of Hendry County, Florida.

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.

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, 2016, 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, 2016, 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, 2016, the Sheriff had $336,282 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.


Estimates


Cash

Investments


Changes in general fixed assets are as follows:

Beginning Balance

Ending Balance

10/1/2015 Increases Decreases 9/30/2016

Equipment 6,260,575$ 495,142$ (706,472)$ 6,049,245$ Less: Accumulated Depreciation (4,592,263) (498,804) 706,472 (4,384,595)

Total Equipment being depreciated, net 1,668,312$ (3,662)$ -$ 1,664,650$



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 2016, the carrying amount of the Sheriff's deposits was $1,171,249 and the bank balance was$1,327,374. The Sheriff held petty cash on hand as of September 30, 2016 in the amount of $8,198. 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.


Operating Leases

40,392$

Total Operating Leases 40,392$


2017 40,392$ 7,610$ 48,002$

40,392$ 7,610$ 48,002$

NOTE 5- LONG-TERM DEBT

Capital Leases

66,593$

47,013

33,590

23,999

212,802

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. The balance at September 30, 2016 was

On January 7, 2015 the Sheriff entered into a leasing agreement for eight police interceptor sedansfor $324,959 bearing interest at a rate of 6.50%, requiring quarterly payments of $23,228. Finalpayment due January 7, 2019. The balance at September 30, 2016 was

SHERIFF

IV-11



Operating Lease - Commitments

On August 15, 2013, the Sheriff entered into a leasing agreement for six squad cars for $266,372bearing interest at a rate of 12.56%, annual principal payments of $66,953. Final payment dueSeptember 15, 2017. The balance at September 30, 2016 was

On September 20, 2013 the Sheriff entered into a leasing agreement for four K-9 SUVs for$188,054 bearing interest at a rate of 12.56%, annual principal payments of $47,013. Finalpayment due September 30, 2017. The balance at September 30, 2016 was

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. The balance at September 30, 2016 was

On September 20, 2013, the Sheriff entered into a leasing agreement for ten vehicles for $168,333bearing interest at a rate of 15.73%, annual principal payments of $41,891. Final Payment dueSeptember 30, 2017. The balance at September 30, 2016 was

The annual commitments requirement for operating leases at September 30, 2016, were as follows:

NOTE 5- LONG-TERM DEBT - (Continued)

Capital Leases - (Continued)

358,292

TOTAL LONG-TERM DEBT - Capital Leases 742,289$

The annual debt service requirements for capital leases at September 30, 2016, were as follows:


2017 312,108$ 44,117$ 356,225$ 2018 205,358 20,941 226,2992019 153,164 14,108 167,2722020 71,659 9,524 81,183

742,289$ 88,690$ 830,979$

Beginning EndingBalance Balance Due Within

10/1/2015 Additions Reductions 9/30/2016 One Year

Capital Leases 594,133$ 405,912$ (257,756)$ 742,289$ 312,108$ Other Post Employment Benefits 702,810 126,622 - 829,432 -Compensated absences 1,062,000 93,947 - 1,155,947 -

2,358,943$ 626,481$ (257,756)$ 2,727,668$ 312,108$

SHERIFFHENDRY COUNTY, FLORIDA


Capital Leases

IV-12

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. The balance at September 30, 2016 was

Changes in long-term liabilities for the year ended September 30, 2016, was as follows:

REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK


Plan Description

Funding Policy

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.


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.

IV-13


SHERIFF

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.

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 1,2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were as follows: regular7.26% and 7.52%; county elected officers 42.27% and 42.47%; senior management 21.43% and 21.77%; specialrisk 22.04% and 22.57%; special risk administration 32.95% and 28.06%; and DROP participants 12.88% and12.99%. During the fiscal year ended September 30, 2016, the Sheriff contributed to the plan an amount equal to16.30% of covered payroll.


www.dms.myflorida.com/retirement

NOTE 7 - CONTINGENT LIABILITIES

NOTE 8 - RELATED PARTY TRANSACTIONS

IV-14

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 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.

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:

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 0.04 and 0.06 percent of payroll from October 1, 2015through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, by forfeited benefits of

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 $800,706, $104,475, and $251,740, respectively, for thefiscal year ended September 30, 2016. The Sheriff's payments after June 30, 2016, the measurement date used todetermine net pension liability associated with the Pension Plan and the HIS Plan, amounted to $240,602 and$27,250, 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 andassociated 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.





Plan Description



IV-15

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.

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.


NOTE 10 - OTHER POST-EMPLOYMENT BENEFITS - (Continued)

Membership


Active Employees 172 Eligible Retirees 20 Covered Spouses 1

Funding Policy


Annual Percentage ofOPEB Employer OPEB Cost Net OPEBCost Contributed Contributed Obligation

143,157$ 36,923$ 25.8% 829,432$ 137,449$ 35,719$ 26.0% 702,810$ 160,031$ 27,674$ 17.3% 658,554$


Actuarial Accrued Liability (AAL) 1,083,905$ Actuarial Value of Plan Assets - Unfunded Actuarial Accrued Liability (AAL) 1,083,905$

Covered Payroll 4,939,951$



September 30, 2016

IV-16

Hendry County had an actuarial valuation performed for the plan as of October 1, 2014 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, 2016. The Sheriff's annual OPEB cost for the fiscal year was $143,157. The Sheriff's annualOPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation from 2016is as follows:

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.

Fiscal Year Ended

September 30, 2015September 30, 2014



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).

REQUIREDSUPPLEMENTARY

INFORMATION

OriginalBudget

FinalBudget Actual

Variance with Final Budget

Positive (Negative)

RevenuesIntergovernmental -$ 487,737$ 487,737$ -$Charges for Services - 338,698 338,698 - Miscellaneous - 43,252 51,686 8,434

Total Revenues - 869,687 878,121 8,434

ExpendituresLaw Enforcement

Personal Services 6,418,123 7,061,556 6,813,622 247,934Operating Expenditures 1,060,000 1,198,173 1,467,335 (269,162)Capital Outlay 212,085 644,265 495,122 149,143Debt Service 85,000 85,000 275,066 (190,066)Contingency 30,000 30,000 - 30,000

Total Law Enforcement 7,805,208 9,018,994 9,051,145 (32,151)

CorrectionsPersonal Services 2,403,217 2,403,217 2,456,084 (52,867)Operating Expenditures 801,200 806,842 751,163 55,679Capital Outlay 28,500 60,939 28,830 32,109Contingency 20,000 20,000 - 20,000

Total Corrections 3,252,917 3,290,998 3,236,077 54,921

JudicialPersonal Services 246,951 246,951 247,060 (109)

Total Judicial 246,951 246,951 247,060 (109)Total Expenditures 11,305,076 12,556,943 12,534,282 22,661

Excess of Revenues Over (Under) Expenditures (11,305,076) (11,687,256) (11,656,161) 31,095

Other Financing Sources (Uses)Proceeds From Financing - 382,180 382,180 - Operating Transfers In 11,305,076 11,305,076 11,305,076 - Operating Transfers Out - - (31,095) (31,095)

Total Other Financing Sources (Uses) 11,305,076 11,687,256 11,656,161 (31,095)

Excess of Revenues and Other SourcesOver (Under) Expenditures and Other Uses - - - -

Fund Balance - October 1, 2015 - - - - Fund Balance - September 30, 2016 -$ -$ -$ -$

IV-17


Schedule of Revenues, Expenditures and Changes in Fund Balances

For the Fiscal Year Ended September 30, 2016Budget and Actual - General Fund, Non-GAAP Basis

OTHERFINANCIAL

INFORMATION

TotalEquitable Non-MajorSharing Gun Governmental

Training Program Range FundsASSETS

Cash 6,977$ 2,717$ 28,646$ 38,340$

Total assets 6,977$ 2,717$ 28,646$ 38,340$

FUND EQUITY

Fund BalancesAssigned 6,977$ 2,717$ 28,646$ 38,340$

Total Fund Equity 6,977$ 2,717$ 28,646$ 38,340$

September 30, 2016

IV-18


Combining Balance SheetNon-Major Governmental Funds

EquitableSharing Gun

Training Program Range Total

RevenuesCharges for Services -$ -$ 17,981$ 17,981$ Collections 12,512 1,058 - 13,570 Interest 5 2 19 26

Total Revenues 12,517 1,060 18,000 31,577

ExpendituresOperating Expenses 8,786 1,062 5,704 15,552

Total Expenditures 8,786 1,062 5,704 15,552

Excess of Revenues Over(Under) Expenditures 3,731 (2) 12,296 16,025

Fund Balances - October 1, 2015 3,246 2,719 16,350 22,315

Fund Balances - September 30, 2016 6,977$ 2,717$ 28,646$ 38,340$

For the Year Ended September 30, 2016

IV-19


Combining Statement of Revenues, Expenditures, and Changes in Fund BalanceNon-Major Governmental Funds

MountedPatrol

ImpoundFees

SpecialFund

ReliefFund

EmployeeFund

ASSETS

Cash 349$ 6,217$ 71$ 1,881$ 16,393$ Accounts Receivable - - - - -

Total Assets 349$ 6,217$ 71$ 1,881$ 16,393$

LIABILITIES

Due to Other Governments -$ 6,217$ -$ -$ -$Due to Other Funds - - - - -Due to Individuals 349 - 71 1,881 16,393

Total Liabilities 349$ 6,217$ 71$ 1,881$ 16,393$


Combining Statement of Fiduciary Assets and Liabilities- Agency FundsSeptember 30, 2016

IV-20

SuspenseFine

and Cost

InmateOperatingAccount

D.A.R.E Program

Explorer Program

Auxiliary Fund

Total Fidicuary

Funds

29,980$ 50$ 32,559$ 3,643$ 5,903$ 8,282$ 105,328$- - 1,619 - - - 1,619

29,980$ 50$ 34,178$ 3,643$ 5,903$ 8,282$ 106,947$

-$ -$ -$ -$ -$ -$ 6,217$- - 21,289 - - - 21,289

29,980 50 12,889 3,643 5,903 8,282 79,441

29,980$ 50$ 34,178$ 3,643$ 5,903$ 8,282$ 106,947$

IV-21

Balance BalanceSeptember 30, September 30,

2015 Additions Deductions 2016

Mounted Patrol

AssetsCash 99$ 500$ 250$ 349$

Total assets 99$ 500$ 250$ 349$

LiabilitiesDue to Individuals 99$ 500$ 250$ 349$

Total Liabilities 99$ 500$ 250$ 349$

Impound Fees

AssetsCash 2,858$ 3,872$ 513$ 6,217$

Total assets 2,858$ 3,872$ 513$ 6,217$

LiabilitiesDue to Other Governments 2,858$ 3,872$ 513$ 6,217$

Total Liabilities 2,858$ 3,872$ 513$ 6,217$

Special Fund

AssetsCash 50$ 8,021$ 8,000$ 71$

Total assets 50$ 8,021$ 8,000$ 71$

Liabilities Due to Other Governments -$ 4,800$ 4,800$ -$

Due to Individuals 50 3,221 3,200 71

Total Liabilities 50$ 8,021$ 8,000$ 71$


Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency FundsFor the Year Ended September 30, 2016

IV-22



Relief Fund

AssetsCash 1,880$ 1,797$ 1,796$ 1,881$

Total assets 1,880$ 1,797$ 1,796$ 1,881$

LiabilitiesDue to Individuals 1,880$ 1,797$ 1,796$ 1,881$

Total Liabilities 1,880$ 1,797$ 1,796$ 1,881$

Employee Flower Fund

AssetsCash 22,966$ 36,716$ 43,289$ 16,393$

Total assets 22,966$ 36,716$ 43,289$ 16,393$



Suspense

AssetsCash 51,152$ 155,941$ 177,113$ 29,980$

Total assets 51,152$ 155,941$ 177,113$ 29,980$




Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds - (Continued)

IV-23




Fine and Cost

AssetsCash 50$ -$ -$ 50$

Total assets 50$ -$ -$ 50$

LiabilitiesDue to Individuals 50$ -$ -$ 50$

Total Liabilities 50$ -$ -$ 50$

Inmate Operating

AssetsCash 23,432$ 463,623$ 454,496$ 32,559$ Accounts Receivable - 1,619 - 1,619

Total assets 23,432$ 465,242$ 454,496$ 34,178$

LiabilitiesDue to Other Governments 3,975$ -$ 3,975$ -$ Due to Other Funds 6,424 124,998 110,133 21,289 Due to Individuals 13,033 305,157 305,301 12,889


D.A.R.E. Program

AssetsCash 10,885$ 2,620$ 9,862$ 3,643$

Total assets 10,885$ 2,620$ 9,862$ 3,643$




Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds - (Continued)

IV-24


3



Explorer Program

AssetsCash 4,436$ 9,454$ 7,987$ 5,903$

Total assets 4,436$ 9,454$ 7,987$ 5,903$

LiabilitiesDue to Individuals 4,436$ 9,454 7,987 5,903$


Auxiliary Fund

AssetsCash 8,275$ 8,354$ 8,347$ 8,282$

Total assets 8,275$ 8,354$ 8,347$ 8,282$



Totals - Agency Funds

AssetsCash 126,083$ 690,898$ 711,653$ 105,328$Accounts Receivable - 1,619 - 1,619

Total assets 126,083$ 692,517$ 711,653$ 106,947$

LiabilitiesDue to Other Governments 6,833$ 8,672$ 9,288$ 6,217$Due to Other Funds 6,424 124,998 110,133 21,289Due to Individuals 112,826 523,760 557,145 79,441



Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds - (Continued)For the Year Ended September 30, 2016

IV-25



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 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, 2016, and the related notes to the financial statements, and have issued our report thereondated May 22, 2017, 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.


IV-26




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


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, 2016, and have issued our report thereon dated May 22, 2017.


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 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 May 22, 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 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.

IV-28


Other Matters


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.


The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General. Accordingly this management letter is not suitable for any other purpose.

IV-29


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, 2016. 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 theaforementioned requirements for the year ended September 30, 2016.

HENDRY COUNTY, FLORIDASUPERVISOR OF ELECTIONS

September 30, 2016


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-11


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund……………………..………………………………… V-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 ……..………………… V-13 - V-14

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

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies………………………….…………………………………………… V-17

Management's Response to Auditor's Management Letter………………………...………… 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, 2016, 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 12 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 May 22, 2017, onour consideration of the Supervisor of Election'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 reportingand 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 Supervisor of Election's internal control over financialreporting 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, 2016 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, 2016, 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


General Fund

Federal Election

Activities Fund

Total Governmental

Funds

ASSETS

Cash -$ 3,034$ 3,034$Due from the Board of County

Commissioners 3,296 - 3,296

Total assets 3,296$ 3,034$ 6,330$


Liabilities

Accrued liabilities 3,296$ -$ 3,296$ Unearned Revenue - 3,000 3,000

Total liabilities 3,296 3,000 6,296

Fund equity

Fund balance - 34 34

Total fund equity - 34 34

Total liabilities and fund equity 3,296$ 3,034$ 6,330$

V-3

Governmental Funds



General Fund

Federal Election

Activities Fund

Total Governmental

FundsRevenues

Intergovernmental -$ 6,244$ 6,244$ Miscellaneous 3,146 - 3,146 Interest 221 14 235

Total revenues 3,367 6,258 9,625

Expenditures Governmental expenditures 508,808 6,244 515,052

Excess of revenues under expenditures (505,441) 14 (505,427)

Other financing sources (uses)Operating transfers in 508,808 - 508,808 Operating transfers out (3,367) - (3,367)

Total other financing sources (uses) 505,441 - 505,441

Excess of revenues and other sourcesover (under) expenditures and other uses - 14 14

Fund balance - October 1, 2015 - 20 20

Fund balance - September 30, 2016 -$ 34$ 34$

V-4




Financial Reporting Entity

Fund Accounting

General Fund


Basis of Accounting



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.

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.


V-5

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.

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, 2016, the amount of accrued compensated absences was$16,766.

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 thefund level.

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.

V-6

Public hearings are held by the Board to obtain taxpayer comments and possible adjustments by theBoard.


Compensated Absences, (Continued)


NOTE 3 - AMOUNT TO BE REMITTED TO BOARD OF COUNTY COMMISSIONERS


V-7

At September, 30 2016, the carrying amount of the Supervisor of Elections' deposits was $3,034, the bankbalance was $13,851. These deposits were entirely covered during the year and year-end by federal depositoryinsurance or by collateral pursuant to the Florida Security for Public Deposits Act of the State of Florida(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 of theBoard of County Commissioners. In addition, office space used in the Supervisor of Elections' operations isprovided at no cost by the Board of County Commissioners.



"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 Board's financial statement has been accrued inaccordance with this criteria.

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.

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.


Plan Description

Funding Policy

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, 2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were asfollows: regular 7.26% and 7.52%; county elected officers 42.27% and 42.47%; senior management 21.43%and 21.77%; and DROP participants 12.88% and 12.99%. During the fiscal year ended September 30, 2016,the Supervisor of Elections contributed to the plan an amount equal to 20.69% of covered payroll.

V-8

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.

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.



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.

NOTE 5 - RETIREMENT PLAN, (Continued)

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 0.04 and 0.06 percentof payroll from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016,respectively, by forfeited benefits of plan members. The Supervisor of Elections does not participate in theInvestment Plan.

The Supervisor of Elections recognizes pension expenditures in an amount equal to amounts paid to thePension Plan and the HIS Plan amounting to $43,013, and $3,4515, respectively, for the fiscal year endedSeptember 30, 2016. The Supervisor of Elections' payments after June 30, 2016, the measurement date used todetermine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $12,082, and$1,002, respectively. The Supervisor of Elections 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 .


THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK



V-9

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.


Plan Description



Membership



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


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.



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.


Percentage ofOPEB CostContributed

4,885$ 1,260$ 25.8% 28,302$5,111$ 1,328$ 26.0% 26,132$5,084$ 879$ 17.3% 20,925$


Actuarial Accrued Liability (AAL) 36,986$Actuarial Value of Plan Assets -Unfunded Actuarial Accrued Liability (AAL) 36,986$





September 30, 2014


Hendry County had an actuarial valuation performed for the plan as of October 1, 2014 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, 2016. The Supervisor of Elections' annual OPEB cost for the fiscal year was$4,885. The Supervisor of Elections' annual OPEB cost, the percentage of annual OPEB cost contributed tothe plan, and the net OPEB obligation from 2016 is as follows:

Fiscal Year EndedAnnual OPEB

CostEmployer

contributedNet OPEB Obligation


September 30, 2015


V-11

For fiscal year ended September 30, 2016, the Supervisor of Elections was charged $47,935.

The Supervisor of Elections 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. PRM administers insurance activities relating to property, general, automobile, public officialsliability, workers' compensation, health, and auto physical damage. The pool assesses each member its pro ratashare of the estimated amount required to meet current year losses, operating expenses and reinsurance costs(premiums). The Fund is fully funded annually. The premiums for this coverage are paid by variousconstitutional officers and Board of County Commissioners.

September 30, 2016

SUPPLEMENTARY INFORMATION

REQUIRED

Original Budget

FinalBudget Actual

Variance with Final Budget

Positive(Negative)

RevenuesMiscellaneous -$ -$ 3,146$ 3,146$Interest - - 221 221

Total revenues - - 3,367 3,367

ExpendituresGovernmental expenditures 478,808 508,808 508,808 -

Excess of revenues over (under) expenditures (478,808) (508,808) (505,441) 3,367

Other financing sources (uses)Operating transfers in 478,808 508,808 508,808 -Operating transfers out - - (3,367) (3,367)

Total other financing sources (uses) 478,808 508,808 505,441 (3,367)


Fund balance - October 1, 2015 - - - -

Fund balance - September 30, 2016 -$ -$ -$ -$

V-12


Schedule of Revenues, Expenditures and Changes in Fund Balances

For the Fiscal Year Ended September 30, 2016Budget 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 this sectionand was not designed to identify all deficiencies in internal control that might be material weaknesses orsignificant deficiencies.

V-13




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, Supervisor of Elections, (the "Supervisor ofElections") as of and for the fiscal year ended September 30, 2016, and the related notes to the financialstatements, and have issued our report thereon dated May 22, 2017, for the purpose of compliance withSection 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local GovernmentalEntity Audits.

In planning and performing our audit of the financial statements, we considered the Supervisor of Election'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 Supervisor of Elections’s internal control.Accordingly, we do not express an opinion on the effectiveness of the Supervisor of Elections’s internalcontrol.

Internal Control Over Financial Reporting, Continued




As part of obtaining reasonable assurance about whether the Supervisor of Elections’s 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 material effect on the determination of financial statement amounts. However, providing an opinion on compliance withthose provisions was not an objective of our audit, and accordingly, we do not express such an opinion. Theresults of our tests disclosed no instances of noncompliance or other matters that are required to be reportedunder Government Auditing Standards.


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.


Phone: 941.639.6600Fax: 941.639.6115




We have audited the financial statements of the Hendry County, Florida, Supervisor of Elections, as of and forthe fiscal year ended September 30, 2016, and have issued our report thereon dated May 22, 2017.


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 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 May 22, 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 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.

V-15



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.


The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General . Accordingly this management letter is not suitable for any other purpose.

V-16

Other Matters


Phone: 941.639.6600Fax: 941.639.6115



Scope

Opinion


V-17


We have examined the Hendry County, Florida, Supervisor of Election's (the "Supervisor of Elections")compliance with the local government investment policy requirements of Section 218.415, Florida Statutes,during the year ended September 30, 2016. Management is responsible for the Supervisor of Election'scompliance with those requirements. Our responsibility is to express an opinion on the Supervisor ofElections'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 theSupervisor of Election'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 Supervisor of Election's compliancewith 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, 2016.

HENDRY COUNTY, FLORIDATAX COLLECTOR

September 30, 2016


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 - VI-17

Combining Statement of Changes in Assets and Liabilities - All Agency Funds…………… VI-18 - VI-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 ……..………………… VI-24 - VI-25

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

Report of Independent Accountant on Compliance with Local GovernmentInvestment Policies…………………………...…………………………………………… VI-28

Management's Response to Auditor's Management Letter…………………………………… VI-29

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, 2016, and the related notes to the financial statements, as listed in the table of contents.


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.



VI-1

Opinions

Emphasis of Matter


Other Information


VI-2

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 theOther Financial Information section of the table of contents are presented for purposes of additional analysisand are not 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, 2016 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, 2016, 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




In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2017, 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 reportingand 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


General Fund

ASSETS

Cash 119,447$Due from other governments 38,431


LIABILITIES

Accounts payable 7,230$Accrued payroll 32,686Due to other governments 117,962





VI-4

General Fund Revenues

Charges for Services 1,622,242$Miscellaneous 5,120

Total Revenues 1,627,362

Expenditures

General GovernmentPersonal services 1,272,302Operating expenses 223,150Capital outlay 13,948

Total Expenditures 1,509,400

Excess of revenues over expenditures 117,962

Other financing sources (uses)Operating transfers out (117,962)

Total other financing sources (uses) (117,962)

Excess of revenues and other sourcesover (under) expenditures and other uses -

Fund balance - October 1, 2015 -

Fund balance - September 30, 2016 -$




VI-5

Agency Funds

ASSETS

Cash 654,120$


LIABILITIES

Due to Board of County Commissioners 36,331$Due to other governements 64 Due to individuals 123,828Due to other funds - Deposits 493,897




Statement of Fiduciary Assets and Liabilities- Agency FundsSeptember 30, 2016

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


Budgetary Process

Encumbrances

Fixed Assets


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.

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).





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.


Compensated Absences, (Continued)


The Tax Collector held no investments during the fiscal year.


Plan Description

September 30, 2016

As of September 30, 2016, the Tax Collector had $61,281 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.


The Tax Collector had $5,430 of cash on hand at September 30, 2016.

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, 2016, the bank balance of all accounts was $1,331,942, and the book balance ofdeposits was $773,567.

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.



Plan Description, (Continued)

Funding Policy

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.

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, 2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were asfollows: regular 7.26% and 7.52%; county elected officers 42.27% and 42.47%; senior management 21.42%and 21.77%; rehired regular service 4.31% and 4.49%; and DROP participants 12.88% and 12.99%. Duringthe fiscal year ended September 30, 2016, the Property Appraiser contributed to the plan an amount equal to10.94% of covered payroll.


Funding Policy, (Continued)


The following changes in general long-term debt occurred during the year ended September 30, 2016:

Long-term debt payable at October 1, 2015 61,515$

Decrease in accrued compensated absences (234)

Long-term debt payable at September 30, 2016 61,281$

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. 61,281$

Costs of administering the plan, including the FRS Financial Guidance Program, are funded through anemployer contribution of 0.04 and 0.06 percent of payroll from October 1, 2015 through June 30, 2016 andfrom July 1, 2016 through September 30, 2016, respectively, 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 $83,298, $9,953, and $13,187, respectively, forthe fiscal year ended September 30, 2016. The Tax Collector's payments after June 30, 2016, the measurementdate used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to$18,559, and $3,068, 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



Funding Policy

Employees of the County and all constitutional officers who were participants in the existing medical plan at the time of retirement are entitled to participate in the Plan. Depending on the class of employee thefollowing eligibility 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 forthis purpose. 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 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 of serviceor 30 years of special risk service, regardless of age, is normal retirement. Employees may retire early at 36and 8 years of service.


September 30, 2016Notes to Financial Statements

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 of

OPEB Employer OPEB Cost Net OPEBCost Contributed Contributed Obligation

18,484$ 4,768$ 25.8% 107,096$18,924$ 4,918$ 26.0% 96,764$19,663$ 3,401$ 17.3% 80,927$


Actuarial Accrued Liability (AAL) 139,954$Actuarial Value of Plan Assets -Unfunded Actuarial Accrued Liability (AAL) 139,954$





September 30, 2015September 30, 2014

The Tax Collector participates in the County-wide insurance program. The Hendry County, Florida, Boardof County Commissioners is a member of the Public Risk Management (PRM), a local government liabilityrisk pool.

Normal cost and the allocation of benefit values between service rendered before and after the valuationdate was determined using the Entry Age Normal Actuarial Cost Method. The rate of return on investmentunder the pay-as-you-go approach is 4.0%, compounded annually. Salaries are assumed to increase between3.7% and 7.8% depending on the members age and service. Salary increase assumptions are the salaryincrease assumptions used in the most recent Actuarial Valuation of the Florida Retirement System (FRS).

VI-13

Fiscal Year Ended

September 30, 2016

Hendry County had an actuarial valuation performed for the plan as of October 1, 2014 to determine thefunded status of the plan as of that date, as well as the employer's annual required contribution (ARC) forthe fiscal year ended September 30, 2016. The Tax Collector's annual OPEB cost for the fiscal year was$18,484. The Tax Collector's annual OPEB cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation from 2016 is as follows:



NOTE 7 - RISK MANAGEMENT, (Continued)

For the fiscal year ended September 30, 2016, the Tax Collector was charged $272,904.

VI-14

PRM administers insurance activities relating to property, general, automobile, public official's liability,worker's compensation, health, and auto physical damage.

The fund is fully funded annually. The premiums for this coverage are paid by the various ConstitutionalOfficers and the Board of County Commissioners on a per employee coverage basis.

The pool assesses each member its pro-rata share of the estimated amount required to meet current yearlosses, operating expenses and reinsurance costs (premiums). To reduce its exposure to large losses on alltypes of insured events PRM uses reinsurance policies purchased from third-party carriers.



SUPPLEMENTARYINFORMATION

REQUIRED


Original Final Positive Budget Budget Actual (Negative)

Revenues

Charges for Services 1,564,440$ 1,598,388$ 1,622,242$ 23,854$ Miscellaneous - - 5,120 5,120

Total Revenues 1,564,440 1,598,388 1,627,362 28,974

Expenditures

General GovernmentPersonal services 1,312,720 1,312,720 1,272,302 40,418 Operating expenses 251,720 271,720 223,150 48,570 Capital outlay - 13,948 13,948 -


Excess of revenues over expenditures - - 117,962 117,962

Other financing sources (uses)Operating transfers out - - (117,962) (117,962)

Total other financing sources (uses) - - (117,962) (117,962)


Fund balance - October 1, 2015 - - - -

Fund balance - September 30, 2016 -$ -$ -$ -$

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, 2016

OTHERFINANCIAL

INFORMATION

Tax LaBelle ClewistonCollection LaBelle Drivers Drivers ClewistonAccount Tag License License Tag

ASSETS

Cash 509,794$ -$ -$ -$ -$

Total Assets 509,794$ -$ -$ -$ -$

LIABILITIES

Due to Board of County Commissioners -$ -$ -$ -$ -$

Due to other governments 64 - - - -Due to individuals 15,833 - - - -Deposits 493,897 - - - -

Total Liabilities 509,794$ -$ -$ -$ -$

September 30, 2016Combining Statement of Fiduciary Assets and Liabilities - Agency Funds

TAX COLLECTORHENDRY COUNTY, FLORIDA

VI-16

Sports Waste Tax Sunshine ChristmasFund Collection Redemption Fund Club Total

-$ 35,941$ 107,972$ 413$ -$ 654,120$

-$ 35,941$ 107,972$ 413$ -$ 654,120$

-$ 35,941$ 390$ -$ -$ 36,331$ - - - - - 64 - - 107,582 413 - 123,828 - - - - - 493,897

-$ 35,941$ 107,972$ 413$ -$ 654,120$

VI-17

Page 1 of 6


2015 Additions Deletions 2016TAX COLLECTION FUND

ASSETSCash 510,373$ 48,406,035$ 48,406,614$ 509,794$

Total Assets 510,373$ 48,406,035$ 48,406,614$ 509,794$

LIABILITIESDue to Board of County Commissioners -$ -$ -$ -$Due to other governments 165 4,877 4,978 64Due to individuals 27,246 172,439 183,852 15,833Deposits 482,962 48,795,592 48,784,657 493,897


LABELLE TAG

ASSETSCash -$ 3,903,456$ 3,903,456$ -$

Total Assets -$ 3,903,456$ 3,903,456$ -$

LIABILITIESDue to Board of County Commissioners -$ 14,668$ 14,668$ -$Due to other governments - 3,874,681 3,874,681 -Due to individuals - 7,615 7,615 -Due to other funds - 7,964 7,964 -

Total Liabilities -$ 3,904,928$ 3,904,928$ -$


Combining Statement of Changes in Assets and Liabilities - All Agency FundsSeptember 30, 2016

VI-18

Page 2 of 6


2015 Additions Deletions 2016CLEWISTON TAG

ASSETSCash -$ 2,077,034$ 2,077,034$ -$

Total Assets -$ 2,077,034$ 2,077,034$ -$

LIABILITIESDue to Board of County Commissioners -$ 7,209$ 7,209$ -$ Due to other governments - 2,066,720 2,066,720 - Due to individuals - 3,333 3,333 -

Total Liabilities -$ 2,077,262$ 2,077,262$ -$

LABELLE DRIVERS LICENSE

ASSETSCash -$ 209,838$ 209,838$ -$

Total Assets -$ 209,838$ 209,838$ -$

LIABILITIESDue to other governments -$ 234,563$ 234,563$ -$

Total Liabilities -$ 234,563$ 234,563$ -$



VI-19

Page 3 of 6


2015 Additions Deletions 2016CLEWISTON DRIVERS LICENSE

ASSETSCash -$ 235,828$ 235,828$ -$

Total Assets -$ 235,828$ 235,828$ -$

LIABILITIESDue to other governments -$ 208,201$ 208,201$ -$


SPORTS FUND

ASSETSCash -$ 35,440$ 35,440$ -$

Total Assets -$ 35,440$ 35,440$ -$

LIABILITIESDue to other governments - 34,462$ 34,462$ - Due to individuals - - Due to other funds - 978 978 -


VI-20



Page 4 of 6


2015 Additions Deletions 2016WASTE COLLECTION

ASSETSCash 36,832$ 86,236$ 87,127$ 35,941$

Total Assets 36,832$ 86,236$ 87,127$ 35,941$

LIABILITIESDue to Board of County Commissioners 36,832$ 81,553$ 82,444$ 35,941$


TAX REDEMPTION

ASSETSCash 27,868$ 4,771,348$ 4,691,244$ 107,972$

Total Assets 27,868$ 4,771,348$ 4,691,244$ 107,972$

LIABILITIESDue to Board of County Commissioners 503$ 4,685,397$ 4,685,510$ 390$ Due to individuals 27,365 536,786 456,569 107,582




VI-21

Page 5 of 6


2015 Additions Deletions 2016SUNSHINE FUND

ASSETSCash 307$ 838$ 732$ 413$

Total Assets 307$ 838$ 732$ 413$

LIABILITIESDue to individuals 307$ 838$ 732$ 413$

Total Assets 307$ 838$ 732$ 413$

CHRISTMAS CLUB

ASSETSCash 3,420$ 11,700$ 15,120$ -$

Total Assets 3,420$ 11,700$ 15,120$ -$

LIABILITIESDue to individuals 3,420$ 11,700$ 15,120$ -$

Total Assets 3,420$ 11,700$ 15,120$ -$

VI-22



Page 6 of 6


2015 Additions Deletions 2016TOTAL - ALL AGENCY FUNDS

ASSETSCash 578,800$ 59,737,753$ 59,662,433$ 654,120$

Total Assets 578,800$ 59,737,753$ 59,662,433$ 654,120$

LIABILITIESDue to Board of County Commissioners 37,335$ 4,788,827$ 4,789,831$ 36,331$ Due to other governments 165 6,423,504 6,423,605 64 Due to individuals 58,338 732,711 667,221 123,828 Due to other funds - 8,942 8,942 - Deposits 482,962 48,795,592 48,784,657 493,897


VI-23





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, 2016, and the related notes to the financial statements, and have issued ourreport thereon dated May 15, 2017, 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.


VI-24





VI-25

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 audited the financial statements of the Hendry County, Florida, Tax Collector, as of and for the fiscalyear ended September 30, 2016, and have issued our report thereon dated June 1, 2017.


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 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 1, 2017, shouldbe 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.



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Other Matters




The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General. Accordingly this management letter is not suitable for any other purpose.


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, 2016. 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, 2016.

Local Government Investment Policies

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