LEE SOIL AND WATER CONSERVATION DISTRICT LEE COUNTY. FLORIDA FINANCIAL STATEMENTS

WITH INDEPENDENT AUDITOR'S REPORT THEREON SEPTEMBER 30. 2011

LEE SOIL AND WATER CONSERVATION DISTRICT TABLE OF CONTENTS

INDEPENDENT AUDITOR'S

..."""'1

REPORT

GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet

- A11 Fund Types'

"" "2

Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General

Fund'

Notes to Financial

Statements

'

""""'3

"''"'4-6

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASE,D ON AN AUDIT OF GENE,RAL PURPOSE FINANCIAL STATEME,NTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

MANAGEMENT

LETTER.

........9-10

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

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

8140 COLLEGE PARKWAY, STE 104 FORT MYERS, FLORIDA 33919 TELEPHONE (239) 337 -27 7 7

Board of Supervisors Lee Soil and Water Conservation District Lee County, Florida groups of Lee Soil We have audited the accompanying balance sheet - all fund types and account related statement of revenues, and Water Conservation Olstrici, as of September 30,2011, and the in fund balance - budget and actual - general fund for the year then expenditures and changes "purpor" financial statements are the responsibility of Lee Soil and Water ended. These general an opinion on these general Conservation District'.iurrug.*ent. Our responsibility is to express purpose financial statements based on our audit'

in the Unjted We conducted our audit in accordance with auditing standards generally accepted of the General Comptroller States of America and Government Auditing Standards, issued by the to obtain reasonable United States. Those standards require that we plan and perform the audit free of material are assurance about whether the general pr.pot" financial statements supporting the amounts and misstatement. An audit includes examining, on a test basis, evidence includes assessing the disclosures in the gen"ral purpose financial statements. An audit also as well as evaluating accounting principlfs urea La significant estimates made by management, that our audit provides a the overaf g".r"rui purpose financial statement presentation. We believe reasonable basis for our oPinion. fairly, in all In our opinion, the general purpose financial statements referred to above present District as of material respects, the financial position of Lee Soil and Water Conservation year then ended in conformity with September 30, 2011, and the results of its operations for the accounting principles generally accepted in the United States of America'

issued our report dated accordance with Government Auditing Standards, we have also District's internal December lg,20l2,on our consideration"of Lee Soil and Water Conservation of laws, provisions certain with control over financial reporting and our tests of its compliance

In

December 18,2012

-1-

LEE SOIL AND WATER CONSERVATION DISTRICT BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30,2011 Governmental Fund Types General Fund

Account Groups General Long - Term Debt

Totals (Memorandum OnlY)

ASSETS $4,020

Cash

s0

$4,020

$4,020

Total Assets

$4,020

LIABILITIES AND FUND BALANCE

LIABILITIES Accounts Payable

3,000

3,000

Total Liabilities

3,000

3,000

FI-JND BALANCE Unrestricted

1,020

1,020

Total Liabilities and Fund Balance

$4,020

Read Independent Auditor's Report. The accompanying notes are an integral part of the financial statements. .)

$0

$4,020

LEESOILANDWATERCONSERVATIONDISTRICT

IN FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

BALANCE.BUDGETANDACTUAL.GENERALFUND FOR THE YEAR ENDED SEPTEMBER 30,2011 Variance Favorable (Unfavorable)

Actual

Budget REVENUES Interest

Total Revenues

2,000 2,000

74

(1,926)

74

(t,926)

3,000 25,000

3,000 79,160

100

r28

EXPENDITURES Operating: Accounting & Auditing Distributions to ProPertY Owners Fees & Licenses Office Expenses

23,859

28,100

Total Operating ExPenditures Total Expenditures

x)oo

Excess of ExPenditures over Revenues

(26,100)

FUND BALANCE - October 1,2010 FUND BALANCE - SePtember 30,2011

($26,100)

(54,160) (28) (23,859)

106,147

(78'047)

rce

(tg,o+t)

)+t

(106,073)

76,121

107,093

r107.093)

$1,020

($25,080)

Read lndependent Auditor's Report. The accompanying notes are an integral part of the financial statements. a -J-

0

LEESOILANDWATERCONSERVATIONDISTRICT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2011

NOTE

1

- DESCRIPTION

was established July 10, 1941, The Lee Soil and Water Conservation District (the "District") and water conservation problems' under the Florida Statutes, Chapter 582, to assist in solving soil Law of Florida, as a The District was organized pursuant to the Soil Conservation Districts with soil governmental subdivision of the State, to exercise public powers in connection Mobil county Lee the 1995, conservation and erosion control within its boundaries. In october site evaluations, Irrigation Laboratory was started to provide technical assistance through on irrigation water an of development and identification and explanation of areas for improvement, management Plan.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES accounting principles for The accompanying financial statements conform to generally accepted Board ("GASB") governmental units as prescribed by the Govemmental Accounting Standards accounting policies are described and other recognized authoritative sources. The more significant below. Reporting Entit), 14, The Financial Reporting The District follows standards promulgated by GASB Statement No. and account groups of Entity, to define the reporting entity. Statement No. 14 requires funds on' the District to be agencies, boards, and authorities that are controlled by, or are dependent to be included in included in its Audit Report. In determining the ug"n"i"r, boards, or authorities oversight responsibility, the annual financial ,"po.t, the District cons=idered the following criteria: of management' including financial interdependency, selection of governing authority, designation scope of public ability to significantly influence operations, accountability for fiscal matters, on, the District has been services, and special financing relationships. Control by, or dependence District's Audit Report since the determined and, as a result, no other ug*n.i., are included in the for the benefit of the District exercises no manifestations oftversight, nor is any agency's activity

District. Basis of Presentation

-

Fund Accounting

funds and account groups' A The accounting records of the District are organized on the basis of set of accounts' Fund fund is an independent fiscal and accountin[ entity with a self-balancing purpose and is used. to aid management in accounting segregates funds according to their intended provisions. The minimum demonstrating compliance with flnanie-related legal and contractual requirements. Account number of funds is maintained consistent with legal and managerial of the governmental funds groups are a reporting device to account for certain assets and liabilities is as follows: not recorded directly in those funds. The fund utilized by the District focus is upon determination of Governmental Fund Types- The governmental fund measurement balances of financial financial position and changes in f,rnancial position (sources, uses, and ,.ro.t ..rjrather than upon net income determination' -4-

LEE SOIL AND WATER CONSERVATION DISTRICT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2011

General fund - The general firnd is the principal fund used to account for general governmental activities of the District. A11 financial transactions not required to be accounted for in other funds are accounted for in the general fund. Basis of Accounting

The basis of accounting for the District reflected within these statements is the modified accrual basis. A description of this basis follows: Under the modified accrual basis, revenues are recorded as received except for revenues susceptible to accrual, and revenues of a material amount that have not been received at the normal time of receipt. Revenues considered susceptible to accrual include interest, and certain miscellaneous revenues. Revenues

-

Under the modified accrual basis of accounting, expenditures are generally recorded when obligations are incurred or when benefits are received, except for interest on general and special obligation bonds, which is recorded in the accounting period in which payment becomes due.

Expenditurrzs

-

Encumbrqnces - The District does not utilize an encumbrance system expenditures in its budgetary fund.

in accounting for

Cash

At September 30, 20ll,cash consisted of demand deposit accounts which are

stated at

cost. Cost

approximates market value.

by the State Treasurer as qualified public depositories. As September 30, 2011, these accounts were fully insured under Chapter 280 of the Florida

A11 depositories are banks designated

of

Statutes.

Budgetary Process and RePorting

on a Budgets have been adopted by the District for all govemmental funds. Budgets are adopted balance fund beginning basis consistent with generally accepted accounting principles. Estimated is considered in the budgetary process, but is not included in the financial statements as budgeted revenue. Differences between estimated beginning fund balance and actual fund balance, if material, are submitted to the Supervisors as budget amendments.

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

-5-

LEE SOIL AND WATER CONSERVATION DISTRICT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30' 2011

amendments, which change the exceed the amount budgeted in each fund's budget. A1l budget legally adopted total appiopriation for a fund, are approved by the Supervisors.

If, during the fiscal year, additional revenues become available for appropriation in excess of those appropriations for the estimated in the Uujg"t, the District by resolution may make supplemental year up to the amount of such excess.

-6-

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

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

8140 COLLEGE PARKWAY, STE 104 FORT MYERS, FLOzuDA 33919 TELEPHONE (239) 337 -2777

AND ON INTERNAL INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE OF GENERAL AUDIT CONTROL OVER FINANCIAL REPORTING BASED ON AN ACCORDANCE WITH PURPOSE FINANCIAL STATEMENTS PERFORMED IN GOWKNMENT AUDITING STANDARDS

Board of SuPervisors Lee Soil and Water Conservation District Lee County. Florida purpose financial statements of Lee Soil and water conservation issued our report thereon dut:d District as of and lbr tlie year ended September 30,2011, and have with auditing standards generally December lg, 2012. we conducted our audit in accordance applicable tofinancial audits contained accepted in the united States of America and the standards of the United States' in Government Auditing Standards, issued by the Comptroller General

we have audited the general

Compliance

Water Conservation As part of obtaining reasonable assurance about whether Lee Soil and misstatements, we performed District,s general purpose financial statements are free of material contracts and grants' tests of its compliance with certain provisions of laws, regulations, of with which could have a direct and material effect on the determination noncompliance on compliance with those provisions financial statement amounts. However, providing an opinion not express such an opinion' was not an objective of our audit and, accordingly, we do

Intemal Control Over Financial Reporting Water Conservation District's In planning and performing our audit, we considered Lee Soil and our auditing procedures for the internal control over financial reporting in order to determine and not to provide assurance on the purpose of expressing our opinion on the financial statements of the internal control over financial internal control over financial reporting- our consideration internal control that might be material reporting would not necessarity discloJe all matters in the the design or operation of one or more weaknesses. A material weakness is a condition in which low level the risk that of the intemal control components does not reduce to a relativelyfinancial statements being in reration to the misstatements in amounts that would be material period by employe,es jn the normal course audited may occur and not be detected within a timely involving the internal control over of performing their assigned functions. We noted no matters be material weaknesses' financial r"porting and iis operations that we consider to -7-

the Board of This report is intended solely for the information and use of the management, this report is a matter of public Directors, and federal and state awarding agencies. However, record and its disfiibution is not limited.

%/a Walter T. La Piedra CPA" PA December 18,2012

-8-

WALTER T. LA PIEDRA, C.P.A., P.A. CERTIFIED PUBLIC ACCOI]NTANT 8140 COLLEGE PARKWAY, STE 104 FORT MYERS, FLORIDA 33919 TELEPHONE (239) 331 -2777

ME,MBER: AMEzuCAN INSTITUTE of C.P.A''s FLORIDA INSTITUTE of C.P.A.'s

MANAGEMENT LETTER

Board of SuPervisors Lee Soil and Water Conservation District Lee County, Florida

of Lee Soil and In planning and performing our audit of the general purpose financial statements on which we have Water Conservation DistriJt, as of and for the year ended September 30,2011, control structure in order to issued a report dated December 18,2012, we considered its intemal on the general purpose determine our auditing procedur., fo, the purpose of expressing an opinion In connection structure' financial statements uira not to provide urr.rr*"" on the internal control control over financial therewith, we have issued our report on compliance and on internal reporting dated December 18,2012.

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

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

and are

presented under the following main captions:

-

Status of Prior Year Comments Status of Current Year Comments State RePorting Requirements

STATUS OF PzuOR YEAR COMMENTS

A prior year audit was not performed nor requested. The last audit previously conducted was for the fiscal year ended September 30,2006'

STATUS OF CURRENT YEAR COMMENTS 12 months Finding: The District did not have an annual financial audit completed within in accordance with after the end of it's fiscal year by an independent public accountant

Florida statute 218.39. annual financial Recommendation: There will be no recommendation to have any future *"J"rity of the Board of Directors voted to move the District in a different "r " The budget was cut to virtually zero. The District began reducing the available ""dtt direction. owners who have a direct funds by distributin-g checks in the amount of $10.00 to property opportunity and incentive to conserve their own soil and water.

no need to arrange for a Management's Response: Management agreed that they had would be ceased' future annual audit il-dater disbuising the final funds that operations

STATE REPORTING REQUIREMENTS

with the Auditor The rules of the Auditor General, State of Florida, require that this report be filed General together with the audited financial statements.

In connection with our audit of the general purpose financial statements of [,ee Soil and Water State of Conservation District, pursuant to Chapter 10.550, the Rules of the Auditor General, Florida-Local Government Entity Audits, we report the following: cause us to believe that Lee Soil and Water state of Conservation District is, or during the year ended September 30,2011, was in a financial emergency (as defrned) due to the occulrence of any of the conditions described in Section 218.503(1), Florida Statutes'

to

-

Nothing came to our attention

-

The financial report of Lee Soil and Water Conservation District frled with the Department of Financial Services, State of Florida pursuant to Section 218.32, Florida year Statutes, is in agreement with the general pu{pose financial statements for the ended SePtember 30, 201I.

-

The Lee Soil and Water Conservation District is a local govemmental unit created by Soil Conservation Districts Laws of Florida, dated July 10, 1947,to assist in solving soil and water conservation problems in Lee County, Florida.

-

The Lee Soil and Water Conservation District complied with Section2l8.4l5, Florida Statute, regarding the investment of public funds'

-

The scope of the audit of the Lee Soil and Water Conservation District inciuded the use of financial condition assessment procedures to detect deteriorating financial conditions pursuant to Section 218.503(1), Florida statutes.

and the This report is intended solely for the information of the management, the Auditor General, is not Comptroller of Florida- However, this report is a matter of public record and its distribution

limited.

/b,4,7fr2

t

Walter T. La Piedra, CPA, PA December 18,2012

-10-