Financial Statements - Florida Auditor General rpts/2015...Calhoun County, Florida Table of Contents...

Calhoun County, Florida

Financial Statements

September 30, 2015

CALHOUN COUNTY, FLORIDA FINANCIAL STATEMENTS September 30, 2015 BOARD OF COUNTY COMMISSIONERS Marion L. Brown - District 1 Darrell McDougald - District 2 Lee Shelton - District 3 Dennis Jones - District 4 Thomas G. Flowers - District 5 CLERK OF THE CIRCUIT COURT AND COUNTY COMPTROLLER Carla A. Hand SHERIFF TAX COLLECTOR Glenn Kimbrel Becky Trickey-Smith PROPERTY APPRAISER SUPERVISOR OF ELECTIONS Terrell L. Stone Margie C. Laramore COUNTY ATTORNEY AUDITOR H. Matthew Fuqua Carr, Riggs & Ingram, LLC

Calhoun County, Florida Table of Contents

September 30, 2015

REPORTIndependent Auditors’ Report 1

MANAGEMENT'S DISCUSSION AND ANALYSISManagement’s Discussion and Analysis 4

BASIC FINANCIAL STATEMENTSGovernment-wide Financial StatementsStatement of Net Position 5

Statement of Activities 6

Fund Financial StatementsBalance Sheet - Governmental Funds 7

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 8

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 9

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 10

Statement of Revenues, Expenditures, and Changes in Fund Balance - General Fund - Budget and Actual 11

Statement of Revenues, Expenditures, and Changes in Fund Balance - County Transportation Trust Fund I - Budget and Actual 12

Statement of Revenues, Expenditures, and Changes in Fund Balance - County Transportation Trust Fund II - Budget and Actual 13

Statement of Fiduciary Net Position - Agency Funds 14

Notes to Financial Statements 15

COMBINING STATEMENTSCombining Balance Sheet - Nonmajor Governmental Funds 40

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 43

Combining Statement of Fiduciary Net Position - Agency Funds 46

Calhoun County, Florida Table of Contents

September 30, 2015

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Proportional Share of Net Pension Liability Florida Retirement System (Last 3 Fiscal Years) 48

Schedule of Contributions Florida Retirement System (Last 3 Fiscal Years) 49

Schedule of Proportional Share of Net Pension Liability Health Insurance Subsidy (Last 3 Fiscal Years) 50

Schedule of Contributions Health Insurance Subsidy (Last 3 fiscal years) 51

SUPPLEMENTARY INFORMATION

Independent Auditors’ Report 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 52

Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and on Internal Control Over Compliance Required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General 54

Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 56

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 60

Schedule of Findings and Questioned Costs 61

Summary Schedule of Prior Audit Findings 63

Independent Auditors’ Management Letter 64

Independent Accountant's Report on Compliance with Section 218.415, 67Florida Statutes, Local Government Investment Policies

Management’s Response 68

Special-Purpose Financial Statements

Clerk of the Circuit Court

Property Appraiser

Sheriff

Supervisor of Elections

Tax Collector

REPORT

INDEPENDENT AUDITORS' REPORT To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information and fiduciary fund type of Calhoun County, Florida, as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements and are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of 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, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County, Florida Blountstown, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, the aggregate remaining fund information, and fiduciary fund type of Calhoun County, Florida as of September 30, 2015, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund and the Major Special Revenue Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplemental Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4.1 to 4.7 and other required supplementary information as listed in the table of contents be presented to supplement the basic statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the 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 supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Calhoun County, Florida’s basic financial statements. The combining and individual non-major fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards and State Financial Assistance Projects is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and Chapter 10.550 of the Rules of the Auditor General State of Florida and is not a required part of the basic financial statements. The combining and individual non-major fund financial statements and the Schedule of Expenditures of Federal Awards and State Financial Assistance Projects are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied to the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects to the basic financial statements as a whole.

To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County, Florida Blountstown, Florida Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 23, 2016, on our consideration of Calhoun County, Florida’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Change in Accounting Principle As discussed in Note 19 to the financial statements, effective October 1, 2014, the County adopted the provisions of Governmental Accounting Standards Board (“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 Measurement Date – an amendment of GASB Statement No. 68. Our opinion is not modified with respect to this matter.

June 23, 2016

MANAGEMENT'S DISCUSSION AND ANALYSIS

Calhoun Board of County Commissioners

MANAGEMENT’S DISCUSSION AND ANALYSIS

Page 4 (1 of 7)

The Management of the Board of County Commissioners of Calhoun County (the “County”) prepared the

following discussion and analysis to (a) assist the reader in focusing on significant financial issues, (b)

provide an overview and analysis of the County’s financial activities, (c) identify changes in the County’s

financial position, (d) identify material deviations from the financial plan (approved budget), and (e)

highlight significant issues in individual funds. Because the information contained in the Management’s

Discussion and Analysis (MD&A) is intended to highlight significant transactions, events and conditions, it

should be considered in conjunction with the County’s financial statements.

FINANCIAL/COUNTY HIGHLIGHTS

The assets of the County exceeded its liabilities at September 30, 2015 by $53,985,357 (net

position). Of this amount, $1,082,066 represents unrestricted net position that may be used to

meet the County’s ongoing obligations to citizens and creditors.

Total net position of $53.99 million is comprised of the following:

o $50.97 million of capital assets, net of related debt, includes property and equipment, net

of accumulated depreciation, reduced for outstanding debt related to the construction of

those capital assets.

o $1.94 million of net position is restricted by constraints imposed from outside the County

such as grantors, laws, or regulations.

o $1.08 million of unrestricted governmental net position represents the portion available to

maintain the County’s continuing obligation to citizens and creditors.

As of September 30, 2015, the County’s governmental funds reported combined ending fund

balances of $6,971,889, an increase of $1,302,356 in comparison with the prior year.

The County’s total governmental net position increased by $1.95 million during fiscal year ended

September 30, 2015.

During the current year, the County managed $6.61 million in federal and state grant funded

programs.

The County expended approximately $1.19 million in State grant funds from the Executive Office

of the Governor for the Hurricane Shelter Retrofit Project at Blountstown High School.

The County expended approximately $3.24 million of grant funds (federal & state funds) from

Florida Department of Transportation (FDOT), the United States Department of Transportation,

and the United States Department of Transportation - Federal Aviation Administration (FAA) for

road, sidewalk, and airport improvement projects.

The County expended approximately $2.18 million in additional grants (federal & state funds) to

aid the County. Details are available in the Schedule of Expenditures of Federal Award Programs

and State Financial Assistance Projects.

In the Spring of 2014, Calhoun County sustained damage as a result of the North Florida Severe

Storms and Flooding event. The County was included in the major disaster declaration (DR-4177)

and is eligible for assistance from the Federal Emergency Management Agency (FEMA) for road

project repairs/expenditures. Damage assessments by the State of Florida for Calhoun County are

approximately $20.8 million. These approved projects will be funded by Federal grants at 75% of

eligible costs and State funding at 25% of eligible costs. The County received a waiver of the

Local match requirement of 12.5% from the State.



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OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the County’s basic financial

statements. The County’s basic financial statements consist of:

1. Government-wide financial statements

2. Fund financial statements

3. Notes to the financial statements

In addition, this report presents certain required supplementary information.

Government-wide Financial Statements

The government-wide financial statements provide both short-term and long-term information about the

County’s overall financial condition in a manner similar to those of a private-sector business. This

statement combines and consolidates governmental fund’s current financial resources (short-term

expendable resources) with capital assets and long-term obligations. The statements include a statement of

net position and a statement of activities that are designed to provide consolidated financial information

about the governmental activities of the County presented on the accrual basis of accounting.

The statement of net position presents information on all assets and liabilities of the County, with the

difference between the two reported as net position. Increases or decreases in net position over time

may serve as a useful indicator of whether the financial position of the County is strengthening of

weakening.

The statement of activities presents information showing how the County’s net position changed

during the 2015 fiscal year. All changes in net position are reported as soon as the underlying event

giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and

expenses are reported in this statement for some items that will only result in cash flows in future fiscal

periods (e.g., earned but unused vacation leave.)

Both of these financial statements present the functions of the County that are principally supported by

taxes and intergovernmental revenues (governmental activities). The governmental activities of the County

include general government, public health and safety, physical environment, transportation, economic

environment, human services, culture and recreation, and court related.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been

segregated for specific activities or objectives. Like other state and local governments, Calhoun County

uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of

the County’s funds may be classified in the broad category of Governmental Funds and Fiduciary (Agency)

Funds as discussed below.

Governmental Funds - these funds are used to account for essentially the same functions reported as

governmental activities in the government-wide financial statements. However, the governmental

funds utilize a spendable financial resources measurement focus rather than the economic resources

measurement focus found in the government-wide financial statements. This financial resources

measurement focus allows the governmental fund statements to provide information on near-term

inflows and outflows of spendable resources as well as balances of spendable resources available at the

end of the fiscal year. Consequently, the governmental fund statements provide a detailed short-term

view that may be used to evaluate the County’s near-term financing requirements. This short-term

view is useful when compared to the long-term view presented as governmental activities in the

government-wide financial statements. To facilitate this comparison, both the governmental balance

sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances

provide a reconciliation of governmental funds to governmental activities.



Page 4 (3 of 7)

Fiduciary (Agency) Funds – Fiduciary funds are used to report assets held in a trustee or fiduciary

capacity for the benefit of parties outside the government. Fiduciary funds are not reflected in the

government-wide statements because the resources are not available to support the County’s own

programs. In its fiduciary capacity, the County is responsible for ensuring that the assets reported in

these funds are used only for their intended purposes.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Statement of Net Position

Net position may serve over time as a useful indicator of a government’s financial position. In the case of

the County, assets and deferred outflow of resources exceeded liabilities and deferred inflows of resources

by approximately $53.99 million at the close of the fiscal year ended September 30, 2015.

This was an increase of approximately $1.95 million over prior year net position. In addition, in

comparison with FY 2014, capital assets increased by $352,474.

Governmental Governmental

Activities Activities

FY 2015 FY 2014

Total Assets are comprised of the following elements:

Current and Other Assets $ 9,399,917 7,472,132

Capital Assets, Net 51,153,722 50,801,248

Total Assets $ 60,553,639 58,273,380

Deferred Outflows of Resources

Pensions 2,230,073 885,303

Total Deferred Outflows of Resources 2,230,073 885,303

Total Liabilities are comprised of the following elements:

Current and Other Liabilities 2,684,974 2,050,960

Long-term Liabilities 4,280,284 2,863,952

Total Liabilities $ 6,965,258 4,914,912

Deferred Inflows of Resources

Pensions 1,833,097 2,211,433

Total Deferred Inflows of Resources 1,833,097 2,211,433

Total Net Position is comprised of the following elements:

Net Position:

Invested in Capital Assets, Net of Related Debt 50,966,184 50,426,210

Restricted 1,937,107 1,841,848

Unrestricted 1,082,066 (235,720)

Total Net Position $ 53,985,357 52,032,338

At September 30, 2015, the largest portion of the County’s net position reflected investment in capital

assets. (e.g. land, buildings, infrastructure, equipment, and intangibles), less any related outstanding debt

used to acquire those assets. The County uses these capital assets to provide services to citizens;

consequently, these assets are not available for future spending.

An additional portion of the County’s net position represent resources that are subject to restrictions on

how they may be used. The remaining balance of unrestricted net position may be used to meet the

government’s ongoing obligations to citizens and creditors.



Page 4 (4 of 7)

Statement of Activities

The following schedule summarizes revenues and expenses for the current and prior years:

Governmental Governmental

Activities Activities

FY 2015 FY 2014

REVENUES

Program Revenues

Charges for Services $ 656,969 1,054,452

Operating Grants and Contributions 2,054,738 1,742,886

Capital Grants and Contributions 4,559,406 1,844,962

General Revenues:

Property Taxes 3,763,003 3,733,869

Local Option Taxes 977,964 932,033

Other Taxes and Shared Revenues 3,428,775 3,417,587

Investment Earnings 6,484 3,076

Other 1,361,335 1,151,039

Total Revenues 16,808,674 13,879,904

EXPENSES

Program Activities

General Government 2,814,102 2,742,174

Public Health and Safety 4,610,273 3,473,935

Physical Environment 1,500,806 219,094

Transportation 3,712,247 3,786,186

Economic Environment 497,872 508,513

Human Services 335,715 370,583

Culture and Recreation 757,660 691,204

Court Related 611,988 619,372

Interest on long-term debt 14,796 22,960

Total Expense 14,855,459 12,434,021

NET INCREASE 1,953,215 1,445,883

Net Position - Beginning, as previously stated 52,032,338 54,244,421

Change in accounting principle - (3,657,966)

Net Position - Beginning 52,032,338 50,586,455

Net Position - Ending $ 53,985,553 52,032,338



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Governmental activities revenue increased $2,928,770, or 21.1%, from the prior fiscal year. This was

primarily due to an increase in grant activity.

Governmental Funds

The primary purpose of the County’s governmental funds is to provide information on near-term inflows,

outflows, and balances of spendable resources. Such information is useful in assessing the County’s

financing requirements. In particular, unassigned fund balance may serve as a useful measure of a

government’s net resources, available for spending, at the end of the fiscal year.

As of the end of fiscal year 2015, the County’s governmental funds reported combined ending fund

balances of $6,971,889, a $1,302,356 increase over the prior year. The unassigned General Fund balance

of $4,861,238 is available for spending at the County’s discretion. The Special Revenue Fund balances of

$2,021,968 are for specified purposes.



Page 4 (6 of 7)

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS

This section provides an analysis of the balances and transactions of individual funds. The County uses

fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

MAJOR FUNDS

Governmental Funds

The General Fund, County Transportation Trust, and County Transportation Trust II are reported as major

governmental funds.

The General Fund is the general operating fund of the County. All general tax revenues and other

receipts that are not required either legally or by generally accepted accounting principles to be

accounted for in other funds are accounted for in the General Fund.

General operating funds of the Clerk of the Circuit Court, Property Appraiser, Sheriff, Tax

Collector, and Supervisor of Elections represent subfunds of the County’s General Fund that are

held and accounted for individually, but presented with the balance of the Board of County

Commissioners’ operating funds.

As of September 30, 2015, the County’s general fund reported an ending fund balance of

$4.949,921, an increase of $1,193,643 in comparison with the prior year

County Transportation Trust accounts for the various gas tax revenues and certain transportation

related grants used to finance road and bridge construction and maintenance. The use of these

funds is restricted by state statute for such purposes. Fund balance at September 30, 2015 totaled

$908,064, an increase of $2,008 during the fiscal year.

County Transportation Trust II accounts for the local option gas tax revenue and specific road

paving, resurfacing and improvement projects designated by management. Local option gas taxes

are restricted in their use by an ordinance to be used exclusively for transportation expenditures as

defined in F.S. 336.025(7). The fund balance increase by $59,063 during fiscal year 2015.

Current year grant activity included Department of Transportation federal and state funding of

$2,907,522.

GENERAL FUND BUDGETARY HIGHLIGHTS

The original general fund budget was amended to reflect an increase in revenues, expenditures and other

financing uses in the amount of $351,350. This increase was primarily the result of additional grant

proceeds.

Public health and safety, and capital outlay expenditures were less than the final budget due to the timing of

various projects.

CAPITAL ASSETS AND LONG-TERM DEBT

The County’s investment in capital assets for its governmental activities as of September 30, 2015

amounted to $51,153,722 (net of accumulated depreciation). This investment in capital assets includes

land, buildings, equipment, intangibles, infrastructure (effective 10/1/03) and construction in progress, net

of accumulated depreciation. More detailed information about the County’s capital assets is presented in

the notes to financial statements.



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Major additions to capital assets during fiscal year 2015 were as follows:

Commercial airplane hangars

Road paving and drainage projects

Governmental Funds Outstanding Debt:

As of September 30, 2015, the County’s long-term debt consisted of the following:

Notes payable $ 187,538

Compensated absences 277,632

Other post-employment benefit obligation 191,000

The note payable listed above includes the amount due on long term financing for Hazard Mitigation grant

match requirements and additional infrastructure project expense. Additional information on the County’s

long-term debt can be found in the Notes to the Financial Statements in this report.

SIGNIFICANT ECONOMIC FACTORS

The unemployment rate for the County at fiscal year-end was 6.0%, a decrease from the prior year

rate of 6.2%.

The ad valorem tax millage rate was 9.9 mills.

REQUESTS FOR INFORMATION

This report is designed to provide citizens, taxpayers, investors, and creditors with a general overview of

the County’s finances and to demonstrate compliance and accountability for its resources. Questions

concerning any of the information provided in this report or requests for additional financial information

should be addressed to Carla A. Hand, Clerk of Circuit Court and County Comptroller of Calhoun County,

20859 Central Avenue, Room 130, Blountstown, Florida 32424. You may also visit our website,

www.calhounclerk.com, for further financial information.

http://www.calhounclerk.com/

FINANCIAL STATEMENTS

Calhoun County, Florida Statement of Net Position

See accompanying notes to financial statements

- 5 -

September 30, 2015Primary

GovernmentGovernmental

ActivitiesAssets Cash and cash equivalents 6,625,738$ Investments 26,490 Accounts receivable 66,024 Due from other funds 42,483 Due from other governmental units 2,543,440 Notes receivable 24,124 Prepaid expenses 70,392 Capital Assets Land 2,762,119 Buildings and improvements 13,946,461 Machinery and equipment 7,939,700 Infrastructure 48,474,524 Intangible assets 102,631 Construction in progress 2,122,767 Less allowance for depreciation (24,194,480)

Total assets 60,552,413

Deferred outflows of resources Pension 2,230,073 Total deferred outlows of resources 2,230,073

Liabilities Accounts payable and accrued expenses 1,413,101$ Due to other governmental units 541,042 Deferred revenue 473,885 Long-term liabilities Portion due or payable within one year Notes payable 187,538 Compensated absences 69,408 Portion due or payable after one year Compensated absences 208,224 Other post-employment benefit obligation 191,000 Net pension liability 3,881,060

Total liabilities 6,965,258

Deferred inflows of resources Pension 1,833,097 Total deferred inlows of resources 1,833,097

Net position Invested in capital assets, net of related debt 50,966,184 Restricted for General government 20,080 Public Safety 249,685 Physical environment 95,060 Transportation 1,166,158 Culture and recreation 249,896 Court related 156,228 Unrestricted 1,080,840

Total net position 53,984,131$

Calhoun County, Florida Statement of Activities

See accompanying notes to financial statements

- 6 -

CHARGES OPERATING CAPITALFOR GRANTS & GRANTS & GOVERNMENTAL

FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES Total

Primary GovernmentGovernmental activities

General government 2,814,102$ 258,287$ 365,847$ 1,192,671$ (997,297)$ (997,297)$ Public health and safety 4,610,273 94,430 30,164 57,152 (4,428,527) (4,428,527) Physical environment 1,500,806 - 90,909 - (1,409,897) (1,409,897) Transportation 3,712,247 105,573 965,212 3,304,139 662,677 662,677 Economic environment 497,872 - 316,852 - (181,020) (181,020) Human services 335,715 - - - (335,715) (335,715) Culture and recreation 757,660 6,124 217,812 5,444 (528,280) (528,280) Court related 611,988 192,555 67,942 - (351,491) (351,491) Interest on long-term debt 14,796 - - - (14,796) (14,796)

Total primary government 14,855,459$ 656,969$ 2,054,738$ 4,559,406$ (7,584,346) (7,584,346)

General revenuesTaxes:

Property taxes 3,763,003 3,763,003 Local option taxes 977,964 977,964

Sales tax and other taxes 3,428,775 3,428,775 Investment earnings 6,484 6,484 Intergovernmental 751,337 751,337 Miscellaneous 322,687 322,687 Fines and forfeitures 70,907 70,907 Transfers from the State of Florida 216,404 216,404

Total general revenues 9,537,561 9,537,561

Change in net position 1,953,215 1,953,215

Net position - beginning, as previously stated 55,690,304 55,690,304

Change in accounting principle, pensions - Note 19 (3,657,966) (3,657,966)

Net position - beginning, as restated 52,032,338 52,032,338

Net position, ending 53,985,553$ 53,985,553$

CHANGES IN NET ASSETSPROGRAM REVENUES PRIMARY GOVERNMENT

NET (EXPENSE) REVENUE ANDFor the year ended September 30, 2015

Calhoun County, Florida Balance Sheet

Governmental Funds

See accompanying notes to financial statements - 7 -

County County Other TotalGeneral Transportation Transportation Governmental Governmental Funds Trust I Trust II Funds Funds

AssetsCash and cash equivalents 3,663,302$ 1,799,739$ -$ 1,162,697$ 6,625,738$ Investments - - - 26,490 26,490 Accounts receivable 33,202 93 - 56,853 90,148 Due from other funds 323,818 - - 24,972 348,790 Due from other governmental units 1,149,772 184,420 854,786 355,688 2,544,666 Prepaid expenses 56,287 14,105 - - 70,392

Total assets 5,226,381$ 1,998,357$ 854,786$ 1,626,700$ 9,706,224$

LiabilitiesAccounts payable and accrued expenses 271,441$ 493,834$ 521,245$ 126,579$ 1,413,099$ Due to other funds - - 172,827 133,480 306,307 Due to other governmental units - 470,502 - 70,540 541,042 Deferred revenue 5,019 125,957 - 342,911 473,887

Total liabilities 276,460 1,090,293 694,072 673,510 2,734,335

Fund balances

Nonspendable 56,287 14,105 - - 70,392 Restricted - 893,959 160,714 882,434 1,937,107 Committed 32,396 - - 70,756 103,152 Unassigned 4,861,238 - - - 4,861,238

Total fund balances 4,949,921 908,064 160,714 953,190 6,971,889

Total liabilities and fund balances 5,226,381$ 1,998,357$ 854,786$ 1,626,700$ 9,706,224$

September 30, 2015

Calhoun County, Florida Reconciliation of the Balance sheet of Governmental

Funds to the Statement of Net Position


September 30, 2015

Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances – governmental funds 6,971,889$

Capital assets used in governmental activities are not financial resources, and, therefore, are not reported in the governmental funds. 51,153,722

Long-term liabilities are not due and payable in the current period, and, therefore, are not reported in the governmental funds. Total long-term liabilities - see note 7 (4,537,230)

Deferred outflows and inflows of resources related to pensions are applicable to futureperiods and, therefor, are not reported in the funds. Deferred outflows of resources - pensions 2,230,073 Deferred inflows of resources - pensions (1,833,097)

Net position of governmental activities 53,985,357$

Calhoun County, Florida Statement of Revenues, Expenditures and Changes in Fund Balance

Governmental Funds


County County Other TotalGeneral Transportation Transportation Governmental Governmental Funds Trust I Trust II Funds Funds

RevenuesTaxes 4,529,936$ 22,459$ 261,357$ -$ 4,813,752$ Permits, fees and special assessment 34,443 - - 4,588 39,031 Intergovernmental 2,938,253 866,803 - 302,271 4,107,327 Charges for services 258,287 2,771 - 361,468 622,526 Fines and forfeitures - - - 70,907 70,907 Grants 1,558,518 1,025,450 2,907,522 1,122,654 6,614,144 Investment earnings 4,090 - - 2,394 6,484 Contributions and donations - - - 5,349 5,349 Other fees and miscellaneous 83,894 - - 187,927 271,821

Total revenues 9,407,421 1,917,483 3,168,879 2,057,558 16,551,341 ExpendituresCurrent:

General Government 2,674,093 - - 49 2,674,142 Public health and safety 3,977,528 - - 371,287 4,348,815 Physical environment 80,926 23,386 - 69,335 173,647 Transportation 26,344 1,730,218 21,954 189,367 1,967,883 Economic environment 81,805 - - 378,980 460,785 Human services 305,928 - - - 305,928 Culture and recreation 54,893 - - 618,847 673,740 Court related 120,505 - - 463,715 584,220

Capital outlay 461,411 161,871 2,885,566 565,085 4,073,933 Debt Service

Principal - - 187,500 - 187,500 Interest and other charges - - 14,796 - 14,796

Total expenditures 7,783,433 1,915,475 3,109,816 2,656,665 15,465,389 Excess of revenues over (under) expenditures 1,623,988 2,008 59,063 (599,107) 1,085,952

Other financing sources (uses)Operating transfers in - - - 456,449 456,449 Operating transfers out (430,345) - - (26,104) (456,449) Transfers from State of Florida - - - 252,448 252,448 Transfers to State of Florida - - - (36,044) (36,044)

Net other financing sources (uses) (430,345) - - 646,749 216,404 Net change in fund balances 1,193,643 2,008 59,063 47,642 1,302,356 Fund balances - beginning 3,756,278 906,056 101,651 905,548 5,669,533

Fund balances - ending 4,949,921$ 908,064$ 160,714$ 953,190$ 6,971,889$

For the year ended September 30, 2015

Calhoun County, Florida Reconciliation of the Statement of Revenues, Expenditures and Changes in

Fund Balances of Governmental Funds to the Statement of Activities



Amounts reported for governmental activities in the statement of activities aredifferent because:

Net change in fund balances - total governmental funds 1,302,356$

Capital outlay, reported as expenditures in governmental funds, are shown as capital assets in the statement of activities. 4,073,933

Depreciation expense on governmental capital assets included in the governmental activities in the statement of activities. (3,315,648)

The effect of capital asset donations included in the governmental activities in the statement of activities. 40,930

Repayment of long-term debt is reported as an expenditure in governmental funds but as a reduction of long-term liabilities in the 187,500 statement of net position.

Accrued other post-employment benefits do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. (29,000)

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. These expenses include:

Compensated absences (34,194) Donation of capital asset (446,544) Pension contributions 539,962 Pension expenses (366,276)

Change in net position of governmental activities 1,953,019$

Calhoun County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balance

General Fund Budget to Actual


Variance with Final Budget

Original Final FavorableBudget Budget Actual (Unfavorable)

RevenuesTaxes 4,676,681$ 4,676,681$ 4,529,936$ (146,745)$ Permits, fees and special assessment 27,300 27,300 34,443 7,143 Intergovernmental 2,882,752 2,882,752 2,938,253 55,501 Charges for services 208,000 216,945 258,287 41,342 Grants 1,583,186 1,926,141 1,558,518 (367,623) Investment earnings 1,200 1,200 4,090 2,890 Contributions and donations - - - - Other fees and miscellaneous 1,200 30,650 83,894 53,244 Less 5% of estimated revenues (370,182) (370,182) - 370,182

Total revenues 9,010,137 9,391,487 9,407,421 15,934

ExpendituresCurrent:

General government 2,803,496 2,846,629 2,674,093 172,536 Public health and safety 2,897,582 4,402,535 3,977,528 425,007 Physical environment 81,589 81,589 80,926 663 Transportation 26,000 26,000 26,344 (344) Economic environment 49,949 82,803 81,805 998 Human services 397,507 386,752 305,928 80,824 Culture and recreation 95,481 84,741 54,893 29,848 Court related 134,236 133,038 120,505 12,533

Capital outlay 1,850,404 666,218 461,411 204,807 Reserve for contingencies 542,733 542,733 - 542,733

Total expenditures 8,878,977 9,253,038 7,783,433 1,469,605

Excess of revenues over (under) expenditures 131,160 138,449 1,623,988 1,485,539

Other financing sources (uses)Operating transfers - net (722,124) (729,413) (430,345) 299,068

Net other financing sources (uses) (722,124) (729,413) (430,345) 299,068

Net change in fund balance (590,964) (590,964) 1,193,643 1,784,607

Fund balances - beginning 2,315,248 2,315,248 3,756,278 1,441,030

Fund balances - ending 1,724,284$ 1,724,284$ 4,949,921$ 3,225,637$



County Transportation Fund I Budget to Actual


Variance withFinal Budget


RevenuesTaxes 23,601$ 23,601$ 22,459$ (1,142)$ Intergovernmental 839,601 839,601 866,803 27,202 Charges for services - - 2,771 2,771 Grants 698,027 1,598,027 1,025,450 (572,577) Other fees and miscellaneous - - - - Less 5% of estimated revenues (43,160) (43,160) - 43,160

Total revenues 1,518,069 2,418,069 1,917,483 (500,586)


Physical environment - - 23,386 (23,386) Transportation 1,124,352 1,984,352 1,730,218 254,134

Capital outlay 787,544 827,544 161,871 665,673

Total expenditures 1,911,896 2,811,896 1,915,475 896,421

Excess of revenues over (under) expenditures (393,827) (393,827) 2,008 395,835

Other financing sources (uses)Operating transfers in 304,310 304,310 - (304,310)

Total other financing sources (uses) 304,310 304,310 - (304,310)

Net change in fund balance (89,517) (89,517) 2,008 91,525

Fund balances - beginning 89,517 906,056 906,056 -

Fund balances - ending -$ 816,539$ 908,064$ 91,525$



County Transportation Trust II Budget to Actual


Variance withFinal Budget


RevenuesTaxes 262,469$ 262,469$ 261,357$ (1,112)$ Grants 715,755 4,855,202 2,907,522 (1,947,680) Other fees and miscellaneous - - Less 5% of estimated revenues (13,123) (13,123) - 13,123

Total revenues 965,101 5,104,548 3,168,879 (1,935,669)


Transportation 134,435 134,435 21,954 112,481 Capital outlay 715,755 4,855,202 2,885,566 1,969,636 Debt service

Principal 187,500 187,500 187,500 - Interest and other charges 14,411 14,411 14,796 (385)

Total expenditures 1,052,101 5,191,548 3,109,816 2,081,732

Excess of revenues over (under) expenditures (87,000) (87,000) 59,063 146,063


Fund balances - beginning 87,000 101,651 101,651 -

Fund balances - ending -$ 14,651$ 160,714$ 146,063$


Calhoun County, Florida Statement of Fiduciary Net Position

Agency Funds


September 30, 2015

AgencyFunds

Assets Cash and cash equivalents 343,582$ Due from other funds 198 Due from individuals 477

Total assets 344,257$

Liabilities Accounts payable 3,913$ Due to other funds 22,549 Due to Board of County Commissioners 20,132 Due to other governmental units 252,589 Due to individuals 45,074

Total liabilities 344,257$

Calhoun County, Florida Notes to Financial Statements

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Calhoun County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units in accordance with the Governmental Accounting Standards Board (GASB). The GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following notes to the financial statements are an integral part of the County’s Basic Financial Statements. The accounting and reporting framework and the more significant accounting principles and practices are discussed in subsequent sections of this Note. The remainder of the notes is organized to provide explanations, including required disclosures, of the County’s financial activities for the fiscal year ended September 30, 2015. Reporting Entity Calhoun County, Florida (the “County”) located in Northwest Florida, is a political subdivision of the State of Florida and provides services to approximately 14,000 residents in many areas including general government, public safety, physical environment, transportation, economic environment, human services, and culture and recreation. It was created by an act of the Florida Legislative Council on January 26, 1838. It is governed by a five-member elected Board of County Commissioners (the “Board”), which derives its authority by Florida Statutes and regulations. In addition to the members of the Board, there are five elected constitutional officers: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser and Supervisor of Elections. The elected offices of the Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections are operated as separate County agencies in accordance with applicable provisions of Florida Statutes. These constitutional officers operate on a budget system whereby County-appropriated funds are received from the Board with unexpended funds returned to the Board except for excess federal financial participation payments and support incentive payments from the State Title IV-D agency. The Clerk of the Circuit Court also operates as a fee officer by retaining various fees collected by this office and receives appropriated funds from the State of Florida to fund court-related activities. Separate accounting records and budgets are maintained by each individual office. As outlined in Governmental Accounting Standards Board (GASB) Statement No. 14, The Reporting Entity, the financial reporting entity consists of the primary government, and its component units, for which the primary government is considered to be financially accountable. Also included are other entities whose exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Each potential component unit is individually evaluated using specific criteria outlined in GASB Statement No. 14 to determine whether the entity is: a) part of the primary government; b) a component unit which should be included in the reporting entity (blended or discretely presented); or c) an organization which should be excluded from the reporting entity entirely. The principal criteria for classifying a potential component unit include the legal separateness of the organization, the financial accountability of the primary government for the potential component unit resulting from either the primary government’s ability to impose its will on the potential component unit, or the potential component unit's fiscal dependency on the primary government. The dependent special district, Industrial Development Authority, is considered a component unit, and is blended in the financial statements of the County as part of the special revenue funds. There were no other entities for which there were positive responses to specific criteria used for establishing


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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) oversight responsibility that were excluded from the County’s financial statements. Government-wide and Fund Financial Statements The basic financial statements consist of the government-wide financial statements and fund financial statements. The government-wide financial statements include the statement of net position and the statement of activities. These statements report financial information for the Calhoun County, Florida, as a whole excluding fiduciary activities. For the most part, the effect of inter-fund activity has been removed from these statements. Individual funds are not displayed but the statement distinguishes governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues are classified into three categories: charges for services, operating grants and contributions, and capital grants and contributions. Charges for services refer to direct recovery from customers for services rendered. Grants and contributions refer to revenues restricted for specific programs whose use may be restricted further to operational or capital items. The general revenues section displays revenue collected that helps support all functions of government and contributes to the change in the net position for the fiscal year. The fund financial statements follow and report additional and detailed information about operations for major funds individually and nonmajor funds in the aggregate for governmental funds. Reconciliation is provided that converts the results of governmental fund accounting to the government-wide presentations. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period, considered to be sixty days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due.


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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major revenue sources susceptible to accrual include: sales and use taxes, various motor fuel taxes, property taxes, intergovernmental revenues, and investment income. In general, other revenues are recognized when cash is received. The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, then unrestricted resources as needed. When expenditures are incurred for which committed, assigned or unassigned amounts could be used, it is the County’s policy to use them in that order. The County reports three major governmental funds: General Fund - The general fund is the County’s primary operating fund. It accounts for all resources traditionally associated with governments except those required to be accounted for in another fund. County Transportation Trust I - This fund accounts for motor fuel taxes and various grants earmarked for County road construction and maintenance. County Transportation Trust II – This fund accounts for the County’s local option gas tax revenue and grants for various road paving, resurfacing and improvement projects. The County reports one type of fiduciary fund, agency funds which are used to account for the collection and disbursement of monies by the County on behalf of other governments and individuals.

Budgets and Budgetary Accounting General governmental revenue and expenditures accounted for in budgetary funds are controlled by a budgetary accounting system in accordance with various legal requirements which govern the County’s operations. Budgets are monitored at varying levels of classification detail; however, expenditures cannot legally exceed total appropriations at the individual fund level. All budget changes that affect the total of a fund’s budget must be approved by the Board. The budgetary information presented for the general fund and any major special revenue funds is prepared on the modified accrual basis. Encumbrances are not recorded. Unexpended items at year-end must be reappropriated in the subsequent year.


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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash and Cash Equivalents Cash and Cash Equivalents include amounts in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the government. Short-term investments also include amounts placed with the State Board of Administration for participation in the Local Government Surplus Funds Trust Fund investment pools created by Sections 218.405 and 218.417, Florida Statutes. Investments Investments consist of those deposits made locally in commercial banks with a maturity date greater than three months of the date acquired by the government. The County follows GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, in reporting on investments owned. Generally, this statement requires various investments be reported at fair value, including debt securities and open-ended mutual funds. Receivables Receivables are shown at their net realizable value. The County estimates there are no material uncollectible accounts. Therefore, the County is of the opinion an allowance for doubtful accounts is not necessary. Due from (to) Other Funds Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds.” Inventories Inventory items of materials and supplies, which are not significant in amount, are considered expenditures when purchased in the governmental funds. No physical inventory was taken at year end; therefore, no inventory has been recorded on the combined balance sheet. The amount is estimated to be immaterial. Prepaid Expenses General fund expenditures for insurance and similar services extending over more than one accounting period are accounted for as expenditures in the period of acquisition.

Capital Assets Capital assets, which include property, plant, equipment, intangible and infrastructure (e.g., roads, right of ways, stormwater system, sidewalks, and similar items) assets, are reported in the governmental column in the government-wide financial statements. Property and equipment with initial, individual costs that exceed $1,000 and an estimated useful life in excess of one year are recorded as capital assets. Buildings, roads, bridges, and sidewalks are capitalized when their initial costs exceed $25,000 and possess estimated useful lives of more than one year. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are expensed as incurred.


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In accordance with the provisions of GASB Statement No. 34, the County has elected not to retroactively report major infrastructure constructed prior to October 1, 2003. Buildings, infrastructure, and machinery and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 50 Machinery and equipment 3-15 Infrastructure 15-25 Major outlays for capital assets and improvements are capitalized as projects are constructed. For assets constructed with governmental fund resources, interest during construction is not capitalized. Deferred Revenues Deferred revenues reported in the government-wide financial statements represent unearned revenues. The deferred revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting. Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available, and in accordance with the modified accrual basis of accounting, are reported as deferred revenues. Compensated Absences The County maintains a policy that permits employees to accumulate earned but unused paid time off (PTO) that will be paid to employees upon separation from County service. These benefits, plus their related tax and retirement costs are classified as compensated absences. Employees may be paid for PTO hours accrued up to a maximum amount. Both the current and long-term portion of compensated absences are accrued and reported in the government-wide financial statements. No expenditure is reported in the government fund level statements for these amounts until payment is due. Compensated absences liability is based on current rates of pay. This is accounted for pursuant to GASB Statement No. 16, Accounting for Compensated Absences.

Governmental Fund Balances The County follows GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions which clarifies governmental fund balance classifications and fund-type definitions. Fund balances are classified either as non-spendable or spendable. See Note 13.


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Net Position For the year ending September 30, 2015, the County reports net position as restricted or unrestricted. Restricted net positions have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Unrestricted net positions are comprised of all other balances, including committed, assigned and unassigned. Long-term Debt In the government-wide financial statements, outstanding debt is reported as liabilities. The governmental fund financial statements recognize the proceeds of debt as other financial sources of the current period. Issuance costs are reported as expenditures. Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. Encumbrances Encumbrances represent commitments in the form of purchase orders which are chargeable to an appropriation and for which a part of the appropriation is reserved. Encumbrances do not represent expenditures or liabilities. The County does not record encumbrances outstanding at year end. Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors’ Report which is the date the financial statements were available to be issued.

NOTE 2 - PROPERTY TAXES

Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the Property Appraiser and Tax Collector. The laws of the state regulating tax assessment are also designed to assure a consistent property valuation method statewide. Florida Statutes permit counties to levy property taxes at a rate of up to 10 mills for general operations. The 2015 millage rate assessed by the County was 9.9 mills.

The tax levy of the County is established by the Board prior to October 1, of each year and the Property Appraiser incorporates the County millage into the total tax levy, which includes the various municipalities, the county school board, and other taxing authorities. All property is assessed according to its fair market value January 1, of each year. Each assessment roll is submitted to the Executive Director of the Florida Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of Florida Statutes.


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NOTE 2 - PROPERTY TAXES (CONTINUED) All taxes become payable on November 1, of each year, or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. Taxes paid in March are without discount.

On or prior to June 1, following the tax year, tax certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold tax certificates are held by the County.

NOTE 3 - DUE FROM OTHER GOVERNMENTS Due from other governments consists of funds earned as of September 30, 2015, but not yet received by the County. The majority of these amounts were received in October and November 2015.

NOTE 4 - DEPOSITS AND INVESTMENTS

At year end, the carrying amount of the County's deposits was $6,995,810 and the bank balance was $7,210,609. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis.

Florida Statutes authorize the County to invest in certificates of deposit, repurchase agreements and the State Treasurer's Investment Pool. In addition, the statutes allow the County to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies.

The County invested funds in the Florida State Board of Administration Local Governments Surplus Funds Investment Pool. At September 30, 2015, the market value and the carrying value of these funds was $98,020. The funds are carried as a cash equivalent on the balance sheet at September 30, 2015 (See Note 1 for definition of cash equivalents) and are included in carrying value and bank balance in the first paragraph of this note.


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NOTE 4 - DEPOSITS AND INVESTMENTS (CONTINUED) As a Florida PRIME participant, the County invests in a pool of investments whereby the County owns a share of the respective pool, not the underlying securities. The State Board of Administration’s interpretation of GASB 31 is that the Florida PRIME is currently considered a Securities and Exchange Commission Rule 2a7-like fund, as of September 30, 2015. These investments are reported at fair value, which is amortized cost. Additional information and investment policies regarding the Local Government Surplus Funds Trust Fund may be obtained from the State Board of Administration at www.sbafla.com/prime. The County invested funds in Certificate of Deposits with maturity dates greater than three months. At September 30, 2015, the market value and the carrying value of these funds was $26,490. These funds are carried as an investment on the balance sheet at September 30, 2015 and are included in carrying value and bank balance in the first paragraph of this note.

CREDIT RISK The credit risk of certain investments, such as investment pools managed by other governments, cannot be categorized as to credit risk because the County investments are not evidenced by specific, identifiable investment securities. As of September 30, 2015, the County’s investment in the Florida PRIME is rated by Standard and Poors and the current rating is AAAm. INTEREST RATE RISK The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2015, is 29 days. Next interest rate reset for floating rate securities are used in the calculation of the WAM. CUSTODIAL CREDIT RISK At September 30, 2015, the County did not hold any deposits or investments that were considered to have a custodial credit risk. CONCENTRATION OF CREDIT RISK At September 30, 2015, the County did not hold any investments that were considered to have a concentration of credit risk.


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NOTE 5 - INTERFUND BALANCES Interfund balances at September 30, 2015, consisted of the following: Receivable Fund Payable FundGeneral fund County Transportation Trust II 172,827$

Nonmajor governmental funds Other special revenue funds:Neighborhood Revitalization 100 IDA 84,748 Affordable Housing (SHIP) 10,468 Inmate Welfare 12,000 Investigative Resources 6,380 Clerk's Modernization Trust 14,173 Agency 20,132 Other special revenue funds 2,990

Nonmajor governmental fundsOther special revenue funds 2,423 Agency Funds 22,549

Total 348,790$

The general fund has amounts due to and from constitutional officers, which represent the return of excess monies due at the end of the fiscal year, from either budget officers or fee officers. All remaining balances resulted from the time lag between the dates that (a) interfund goods and services are provided or reimbursable expenditures occur, (b) transactions are recorded in the accounting system, and (c) payments between funds are made.

Interfund transfers for the year ended September 30, 2015, consisted of the following:

TRANSFERS TRANSFERS

IN OUT

General fund -$ 430,345$ Special Revenue Funds: Library 291,998 - Waste Management - 26,104 Sheriff's special revenue funds 164,451 -

Total 456,449$ 456,449$

Transfers from unrestricted general fund revenues finance library and public safety activities that are accounted for in other funds.


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NOTE 6 - CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2015, was as follows: BEGINNING ENDING

BALANCE INCREASES DECREASES BALANCEGovernmental activities:Capital assets, not being depreciated:Land and improvements 2,762,119$ -$ -$ 2,762,119$ Historical buildings 660,423 - - 660,423 Construction in progress 1,731,428 3,850,649 3,459,310 2,122,767

Total capital assets, not being depreciated 5,153,970 3,850,649 3,459,310 5,545,309

Capital assets, being depreciated:Buildings and improvements 12,531,398 754,640 - 13,286,038 Machinery and equipment 6,634,302 164,516 188,558 6,610,260 Machinery and equipment - Sheriff 1,355,025 114,697 140,282 1,329,440 Intangibles 92,631 10,000 - 102,631 Infrastructure 46,203,112 2,271,412 - 48,474,524

Total capital assets, being depreciated 66,816,468 3,315,265 328,840 69,802,893

Less: Total accumulated depreciation 21,169,190 3,315,648 290,358 24,194,480

Total capital assets, being depreciated, net 45,647,278 (383) 38,482 45,608,413

Governmental activities capital assets, net 50,801,248$ 3,850,266$ 3,497,792$ 51,153,722$

Depreciation expense was charged to governmental activities functions/programs of the primary government as follows: Governmental activitiesGeneral government 171,368$ Public safety 311,372 Physical Environment 879,180 Transportation 1,757,354 Economic environment 37,861 Human services 29,787 Culture and recreation 86,606 Court related 42,120

Total depreciation expense-governmental activities 3,315,648$


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NOTE 7 - LONG-TERM LIABILITIES Notes Payable

Board - Centennial Bank - Note Payable to fund paving projects,payable in four annual principal payments of $187,500, beginningApril 2013, and interest at 4.55% payable quarterly 187,538$

Total notes payable 187,538$

Debt service requirements on long-term debt at September 30, 2015 are as follows:

FISCAL YEAR ENDINGSEPTEMBER 30, PRINCIPAL INTEREST

2016 187,538$ 5,783$

Total 187,538$ 5,783$

NOTES PAYABLE

Long-term debt activity for the year ended September 30, 2015, was as follows:

DUEBEGINNING ENDING WITHIN

BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEARGovernmental activities:Notes payable 375,038$ -$ 187,500$ 187,538$ 187,538$ Other post-employment benefits 162,000 29,000 - 191,000 - Compensated absences 243,438 34,194 - 277,632 69,408

Total 780,476$ 63,194$ 187,500$ 656,170$ 256,946$

Compensated absences - Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net change in compensated absences payable is shown.


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NOTE 8 – STATE RETIREMENT PROGRAM AND NET PENSION LIABILITY All regular employees of the County are covered by the Florida Retirement System (FRS) Pension Plan and Retiree Health Insurance Subsidy (HIS) Program, two defined benefit plans administered by the Florida Department of Management Services, Division of Retirement. The Florida legislature has the authority to establish and amend retirement legislation and related bills of significance to members of the FRS and HIS plans (including benefit terms and contribution rates). Passed bills are presented to the Governor of Florida and approved before they may be enacted into law. Plan Descriptions and Contribution Requirements Florida Retirement System Pension Plan (FRS) The FRS is a cost-sharing, multiple-employer qualified defined benefit pension plan with a Deferred Retirement Option Program (DROP) available for eligible employees. The FRS was established and is administered in accordance with Chapters 121, Florida Statutes. FRS membership is compulsory for employers filing regularly established positions in a state agency, country agency, state university, state community college, or County school board, unless restricted from FRS membership under sections 121.053 and 121.122, Florida Statutes, or allowed to participate in a defined contribution plan in lieu of FRS membership. Participation by cities, municipalities, special District’s, charter schools and metropolitan planning organizations is optional. The FRS has several classes of membership applicable to the County, including regular class, senior management, elected County official class, and DROP. Retirees receive a lifetime pension benefit with joint and survivor payment options. The FRS provides retirement, disability, and death benefits and annual cost-of-living adjustments. Benefits vest at six years, or number of years of service. The FRS also includes an early retirement provision, but imposes a penalty for each year a member retires before the specified retirement age. Benefits are computed on the basis of age, average final compensation and service credit. DROP was established effective July 1, 1998, subject to provisions of Section 121.091, Florida Statutes. It permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payment while continuing employment with a Florida Retirement system employer. An employee may participate in the DROP for a period not to exceed 60 months after electing to participate. During the period of DROP participation, deferred monthly benefits are held in the Florida Retirement System Trust Fund and accrue interest.


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NOTE 8 - STATE RETIREMENT PROGRAM AND NET PENSION LIABILITY (Continued) Retiree Health Insurance Subsidy Program (HIS) The HIS is a cost-sharing, multiple-employer defined benefit pension plan established and administered in accordance with section 122.363, Florida Statutes. The benefit is a monthly payment to assist retirees of the state-administered retirement systems in paying their health insurance costs. For the fiscal year end June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of service credited at retirement multiplied by $5. The minimum payment is $30 and the maximum payment is $160 per month, pursuant to section 122.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under one of the state-administered retirement systems must provide proof of eligible health insurance coverage, which can include Medicare. The FRS and HIS financial information is included in the Florida Retirement System (System) Pension Plan and Other State-Administered Systems’ Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. The System CAFR, including audited financial information to support the Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, are available online at: http://dms.myflorida.com/workforce_operations/retirement/publications. The System CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at:

Department of Management Services Division of Retirement Bureau of Research and Member Contributions P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll-free 877-377-1737

Contribution Requirements The contribution rates for FRS and HIS members are established, and may be amended, by the State of Florida. The County is required to contribute at an actuarially determined rate. These rates are percentages of annual covered payroll. The FRS and HIS contribution rates were as follows:

Class or Plan 2015 2014 2013

Florida Retirement System:Regular 7.37% 6.95% 5.18%County Elected Officers 43.24% 33.03% 10.23%Senior Management Service Class 21.14% 18.31% 6.30%Special Risk 19.82% 19.06% 14.90%DROP 12.28% 12.84% 5.44%

Year ended September 30,

Rates include 1.66% for HIS, and 0.04% for Administrative fee for 2015; 1.26% for HIS and .04% for Administrative fee for 2014.

http://dms.myflorida.com/workforce_operations/retirement/publications


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NOTE 8 - STATE RETIREMENT PROGRAM AND NET PENSION LIABILITY (Continued) Employees contribute 3% of their salary, except for members of DROP. The County’s contributions recognized during the fiscal year ended June 30, 2015 by the FRS and HIS were $489,498 and $48,271 respectively. FRS and HIS Collective Net Pension Liability Basis for Accounting Information about the FRS and HIS assets, deferred outflows of resources, liabilities, deferred inflows of resources and fiduciary net position can be found in the System CAFR. The System CAFR is available online or can be obtained as mentioned previously. The FRS and HIS fiduciary net position and additions to/deductions from the fiduciary net position have been determined based on the System’s records, which utilize the flow of economic resources measurement focus and accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable. Investments are reported at fair value. Contributions are recognized as revenue when due, pursuant to statutory and contractual requirements. There have been no significant changes since the publication of the System CAFR. Actuarial Methods and Assumptions Actuarial assumptions for both the FRS and HIS are reviewed annually by the Florida Retirement System Actuarial Assumptions Conference. The FRS has a valuation performed annually and the HIS has a valuation performed biennially that is updated for GASB reporting in the year a valuation is not performed. The most recent experience study for the FRS was completed in 2014 for the period July 1, 2008 through June 30, 2013. Because the HIS is funded on a pay-as-you-go basis, no experience study has been completed. The total pension liability for the FRS and HIS was determined by an actuarial valuation as of July 1, 2015 using the entry age normal actuarial cost method. Inflation increases for both plans is assumed at 2.60%. Payroll growth for both plans is assumed at 3.25%. Mortality assumptions for both plans were based on the Generational RP-2000 with Projection Scale BB tables. Both the discount rate and long-term expected rate of return used for FRS investments is 7.65%. The FRS fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Because the HIS program uses a pay-as-you-go funding structure, a municipal bond rate of 3.80% was used to determine its total pension liability. In September 2014, the Actuarial Assumptions Conference adopted the Bond Buyer General Obligation 20-Bond Municipal Bond Index as the applicable municipal bond index. As of June 30, 2015, the FRS long-term rate of return remained unchanged at 7.65% and the municipal rate used by HIS decreased from 4.29% to 3.80%. The inflation rate assumption was unchanged at 2.60%, the real payroll growth assumption was decreased from 1.00% to 0.65%, and the overall payroll growth rate assumption was decreased from 4.00% to 3.25%.


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NOTE 8 - STATE RETIREMENT PROGRAM AND NET PENSION LIABILITY (Continued) Long-term Rate of Return To develop and analytical basis for the selection of the long-term expected rate of return assumption, in October 2015 the FRS Actuarial Assumption Conference reviewed assumptions by Milliman’s capital markets assumption team and by a capital market assumptions team from Aon Hewitt Investment Consulting. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Annual Target Arithmetic

Asset Class Allocation ReturnCash 1.00% 3.20%Fixed Income 18.00% 4.80%Global Equity 53.00% 8.50%Real Estate (Property) 10.00% 6.80%Private Equity 6.00% 11.90%Strategic Investments 12.00% 6.70%

Total 100.00%

County’s Share of Net Pension Liability Employers participating in the FRS and HIS were provided pension allocation schedules for use in recording their proportionate share of the FRS and HIS net pension liability in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27. The underlying financial information used to prepare the pension allocation schedules is based on the same basis as mentioned previously. At September 30, 2015, the County reported a net pension liability of $3,881,060 for its proportionate share of the collective net pension liability of the FRS and HIS. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by actuarial valuations dated July 1, 2015. The County’s proportionate share was calculated using accrued retirement contributions for employees that were members of the FRS and HIS during fiscal years 2013-14 and 2014-15. The aggregate employer contribution amounts for the year ended June 30, 2014 agree to the employer contribution amounts reported in the State of Florida CAFR. The aggregate employer contribution amounts for the fiscal year ended June 30, 2015 agree to the employer contribution amounts reported in the System CAFR.


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NOTE 8 - STATE RETIREMENT PROGRAM AND NET PENSION LIABILITY (Continued) The County’s proportionate share was applied to the collective net pension liability of FRS and HIS and other pension amounts applicable to the fiscal year to calculate the County’s proportionate share of the net pension liability, deferred outflows of resources, deferred inflows of resources and pension expense. The following table presents information on the County’s proportionate share of the FRS and HIS.

FRS HIS County TotalProportionate Share of Net Pension Liability at June 30, 2015 2,593,231$ 1,287,829$ 3,881,060$ County's proportion at June 30, 2015 0.0002010 0.0001260 0.0003270County's proportion at June 30, 2014 0.0001860 0.0001280 0.0003140Change in proportion during current year 0.0000150 -0.0000020 0.0000130 For the year ended September 30, 2015, the County recognized pension expense of $366,277. At September 30, 2015, the County reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

County TotalDeferred Outflow/

Description FRS HIS (Deferred Inflow)Differences between expected and actual experience 212,264$ -$ 212,264$ Change of assumption 172,121 101,320 273,441 Net difference between projected and actual investment earnings (619,220) 697 (618,523) Changes in proportion 455,839 (67,838) 388,001 County contributions subsequent to the measurement date 124,771 17,022 141,793

Total 345,775$ 51,201$ 396,976$


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NOTE 8 - STATE RETIREMENT PROGRAM AND NET PENSION LIABILITY (Continued) Deferred outflows of resources of $50,120 are reported by the County for employer contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

County TotalDeferred Outflow/

Fiscal Year Ending June 30, FRS HIS (Deferred Inflow)2016 3,728$ 5,575$ 9,303$ 2017 3,728 5,575 9,303 2018 3,728 5,575 9,303 2019 3,728 5,575 9,303 2020 158,533 5,402 163,935

Thereafter 47,560 6,475 54,035

Total 221,005$ 34,177$ 255,182$

Discount Rate Sensitivity Analysis The following tables demonstrate the sensitivity of the County’s proportionate share of the net pension liability to changes in the discount rate. The sensitivity shows the impact if the discount rate was 1.0% higher or 1.0% lower than the current discount rate at June 30, 2015.

FRS Net Pension Liability HIS Net Pension Liability Current Current

1% Decrease Discount Rate 1% Increase 1% Decrease Discount Rate 1% Increase6.65% 7.65% 8.65% 2.80% 3.80% 4.80%6,719,648$ 2,593,231$ (840,626)$ 1,467,421$ 1,287,829$ 1,138,076$

NOTE 9 - OTHER DISCLOSURES Local Ordinance 2009-2, adopted on June 16, 2009 and expiring on January 1, 2020, extended the six-cents per gallon motor fuel and special fuel gas tax. The tax has been in existence since 1990 and renews at ten year intervals. Local Ordinance 2008-2, adopted on April 15, 2008 and in effect until repealed by an extraordinary vote of the Board of County Commissioners, extended the 1% discretionary sales surtax to be used for general operating purposes. The tax generates approximately $690,000 in annual revenue. The tax has been in existence since 1993.


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NOTE 10 - GRANTS The County participates in several state and federal grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the year ended September 30, 2015, have not yet been accepted/approved by the grantors. Accordingly, the final determination of the County's compliance with applicable grant requirements will be established at a future date. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined, although the County expects such amounts, if any, to be immaterial. NOTE 11 - EMERGENCY MEDICAL AND AMBULANCE SERVICES The County contracted with Calhoun-Liberty Hospital Association, Inc. (Hospital) to provide EMS services through September 2015 at a cost of $240,000 per year. NOTE 12 - RISK MANAGEMENT The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The County is a member of the Florida Association of Counties Trust (the Trust) for its general liability insurance coverage. The County pays an annual premium to the Trust. The Trust is to be self-sustaining through member premiums and will reinsure through commercial companies for certain claims. The County continues to purchase commercial insurance to cover its other risks of loss. Insurance against losses are provided for the following types of risk: Workers' compensation and employer's liability General and automobile liability Real and personal property damage Public officials' liability Accidental death and dismemberment Inmate major medical The County's coverage for workers' compensation is under a retrospectively rated policy. Premiums are accrued based on the ultimate cost to-date of the County's experience for this type of risk. The Sheriff participates in the Florida Sheriff's Self-Insurance Fund Program, which is a public entity risk pool that permits the Sheriff to cover risk relating to professional liability, public officials' liability, public employees' blanket bond, and money and securities coverage. The Sheriff purchases commercial insurance to cover other risks and losses for use of a helicopter.

The funding agreements provide that the self-insurance fund will be self-sustaining through member premiums and that the Sheriff's liability fund will reinsure through commercial companies.


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NOTE 13 - FUND BALANCE Fund balances are classified based upon a hierarchy of the County’s ability to control spending of these fund balances and can be classified in the following categories: Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The County had $70,392 in non-spendable net assets which represents prepaid balance at September 30, 2015. Spendable fund balances are classified based on a hierarchy of the County’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2015, the County reports net position as restricted, committed, assigned and unassigned. Restricted net position has externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed net position has amounts constrained by a specific purpose by the Board of County Commissioners. Assigned net position has constraints placed on the use of resources by the County’s intent to use the resources for specific purposes. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund.


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NOTE 13 - FUND BALANCE (CONTINUED) At September 30, 2015, fund balance is comprised of the following:

Funds PurposeSpecial Revenue Fund

County Transportation I 893,959$ County Transportation II 160,714 Nonmajor governmental funds: Domestic Violence 16,614 Boating improvement program 31,489 Police Education 1,485 Radio Communications 4,965 Library 218,407 Waste management 95,060 Crime prevention 30,813 Industrial development authority 111,485 Courthouse facilities 122,901 Teen court 17,337 Voter education 2,825 Modernization of public records 17,255 Court-related technology 15,990 Emergency 911 operations 46,726 Drug enforcement 106,434 Inmate welfare 42,648 Total nonmajor governmental funds 882,434

Total restricted fund balance 1,937,107$

Restricted Fund Balance:

Committed Fund Balance:Funds PurposeGeneral Fund Law enforcement 32,396$ Special Revenue Fund Old Courthouse Restoration 70,756

Total committed fund balance 103,152$


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NOTE 13 - FUND BALANCE (CONTINUED) Non-spendable Fund Balance:Funds Purpose

Funding for:General Fund Prepaid expenses 56,287$ County Transportation Trust I Prepaid expenses 14,105

Total non-spendable fund balance 70,392$

NOTE 14 - AGRI-PARK FACILITIES The County owns a 314 acre agri-park located on Highway 71, north of Blountstown. Situated thereon are hangar facilities, a 3100 foot paved aircraft runway, a commercial building, and a water tank. NOTE 15 - LITIGATION AND CONTINGENT LIABILITIES The County is involved in various litigation arising from the ordinary course of business. In the opinion of management, after consultation with legal counsel, these matters will be resolved without a material adverse effect on the County's financial position. NOTE 16 - COOPERATIVE AGREEMENT The Clerk has a Cooperative Agreement with the Florida Department of Revenue. This agreement encompasses all the Clerk’s child support functions. It allows for indirect cost reimbursement. The Clerk uses an established indirect cost rate to invoice the Department of Revenue each month. These amounts are federal funds received under CFDA #93.563. The net amount received was $114,433.


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NOTE 17 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION Plan Description – The County has implemented Governmental Accounting Standards Board Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions for retiree health insurance. The Calhoun County Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan which provides Other Postemployment Benefits (OPEB) to eligible retirees and their eligible dependents. Pursuant to the provisions of Section 112.0801, the Florida Statutes, employees who retire from the County and eligible dependents, may continue to participate in the group health insurance plan. Retirees and their eligible dependents shall be offered the same health insurance coverage as is offered to active employees at a premium cost of no more than the premium cost applicable to active employees. The Plan does not issue a publicly available financial report. Eligibility for participation in the Plan is limited to full-time employees of the County, if the criteria have been met to qualify for retirement benefits. See Note 8. Benefits Provided – The County provides post-employment healthcare to its retirees. Health benefits are provided through the County’s healthcare provider, Capital Health Plan (CHP).The benefit levels are the same as those afforded to active employees. Health benefits include inpatient and outpatient medical services and prescriptions. Membership – At September 30, 2015, there were no terminated employees entitled to benefits but not yet receiving them. The membership of the Plan consisted of: Active employees 84Retirees and beneficiaries currently receiving benefits 2Total membership 86

Participating employers 1

Active employeeRetirees and ben Total membersh

Participating em

Funding Policy – A qualifying trust or agency fund has not been authorized by the County. The County negotiates the premium rates with CHP. The required contribution is based on pay-as-you-go financing requirements. Retirees and employees with dependent coverage are required to contribute 100% of their current premium costs. The annual premium for retirees or dependent coverage is $5,795. The chart below shows the cost of the monthly retiree premiums at September 30, 2015.

CHP Coverage CHP (SHERIFF)

Retiree $ 482.92 $ 461.59

Retiree & Dependent $ 820.96 $ 923.18


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NOTE 17 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Annual OPEB and Net OPEB Obligation – The County’s annual other post employment benefit (OPEB) cost (expenses) is calculated based on the annual required contribution of the employer (the “ARC”) 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 cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a 10 year open period. The following shows the components of the County’s net OPEB obligation: September 30, 2015Annual required contribution $ 38,000 Interest on prior year net OPEB obligation 7,000 Adjustments to annual required contribution (20,000)

Annual OPEB costs 25,000 Estimated employer contribution made (1,000)

Increase (decrease) in net OPEB obligation 24,000 Net OPEB obligation, beginning of year 167,000

Estimated net OPEB obligation, end of year $ 191,000

The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net OPEB obligation for 2015 and the prior two (2) years were as follows:

Fiscal Year Annual Percentage of OPEB Net OPEB

Ended OPEB Costs Cost Contributed Obligation

9/30/2013 37,000$ 24% 134,000$ 9/30/2014 38,000$ 13% 167,000$ 9/30/2015 25,000$ 4% 191,000$

Funded Status and Funding Progress – As of September 30, 2015, the actuarial accrued liability of $191,000 was unfunded. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence 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 ARC’s of employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.


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NOTE 17 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Schedule of Funding Progress –

Unfunded UAAL as aActuarial Actuarial Actuarial Actuarial PercentageValuation Value of Liabilities Liabilities Funded Covered Of Covered

Date Assets (AAL) (UAAL) Ratio Payroll Payroll

10/1/2010 -$ 187,000$ 187,000$ 0.00% 2,664,000$ 7.0%10/1/2012 -$ 177,000$ 177,000$ 0.00% 2,745,000$ 6.4%10/1/2015 -$ 174,000$ 174,000$ 0.00% 3,165,000$ 5.5%

Actuarial Method and Assumptions – The valuation dated March 22, 2016, for the fiscal date of October 1, 2013 to September 30, 2017, was prepared using generally accepted accrual principles and practices, and relied on unaudited census data and medical claims data reported by the County. Projections of benefits for financial reporting purposes are based on the substantive plan (the Plan as understood by the employer and the Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used included techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The initial OPEB actuarial valuation method used for the County was the projected unit credit cost method. This method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. Because the OPEB liability is currently unfunded, the actuarial assumption included a 4.00% investment rate of return on investments for the County. The actuarial assumption also includes inflation at 2.75% per annum. Medical and drug cost trend rate is 8.00% for the fiscal year ended September 30, 2015, gradually decreasing to future rate of 5.0% for the fiscal year ended September 30, 2021. The Unfunded Actuarial Accrued Liability (UAAL) is being amortized over a 10-year open period.


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NOTE 18 - COMMITMENTS AND SUBSEQUENT EVENTS Calhoun County’s general fund construction contractual obligations at September 30, 2015 were approximately $5.7 million. The construction commitments include general fund, airport and road improvement projects funded by federal, state and local grant funding. In the Spring of 2014, Calhoun County, Florida sustained damage as a result of the North Florida Severe Storms and Flooding event. Calhoun County was included in the major disaster declaration (DR-4177) and is eligible for assistance from the Federal Emergency Management Agency (FEMA) for project repairs/expenditures. Damage assessments by the State of Florida for Calhoun County are approximately $20.8 million. These approved projects will be funded by Federal grants at 75% of eligible costs, State funding at 12.5% of eligible costs and Local match at 12.5%. The County was granted a waiver from the State of the local match requirement. NOTE 19 - CHANGE IN ACCOUNTING PRINCIPLE In 2015, the County implemented GASB Statement 68, Accounting and Financial Reporting for Pensions an Amendment of GASB Statement No. 27 and also GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement 68. Upon adoption of these statements, the County’s proportionate share of the collective net pension liability and deferred outflows for contributions were recorded, resulting in a restatement of beginning net position for governmental activities as shown in the table below:

Governmental ActivitiesNet position, September 30, 2014 as previously reported 55,690,304$ GASB 68 Restatement - Florida Retirement System (3,657,966) Net position, September 30, 2014 as restated 52,032,338$

COMBINING FINANCIAL STATEMENTS

of 3

Calhoun County, Florida Combining Balance Sheet

Nonmajor Governmental Funds

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Sheriff'sIndustrial Waste Affordable Special

Development Management Housing RevenueAuthority Grants (SHIP) Weatherization Funds

AssetsCash and cash equivalents 54,564$ 38,934$ 103,833$ 491$ 175,227$ Investments - - - - - Accounts receivable 27,753 - 24,124 - 4,940 Due from other funds - - - - 5,586 Due from other governmental units 203,347 57,944 8,750 - 37,518

Total assets 285,664$ 96,878$ 136,707$ 491$ 223,271$

LiabilitiesAccounts payable and accrued expenses 79,975$ 1,818$ -$ 491$ 3,872$ Due to other funds 84,748 - 10,468 - 23,591 Due to other governmental units - - - - - Deferred revenue 9,456 - 126,239 - -

Total liabilities 174,179 1,818 136,707 491 27,463

Fund balances

Restricted 111,485 95,060 - - 195,808 Committed - - - - -

Total fund balances 111,485 95,060 - - 195,808

Total liabilities and fund balances 285,664$ 96,878$ 136,707$ 491$ 223,271$

September 30, 2015

of 3



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Boating Old SupervisorArticle V Improvement Courthouse of Elections' Domestic

Grant Fund Library Program Restoration Grants Fund Violence

AssetsCash and cash equivalents 57,358$ 235,691$ 31,162$ 22,954$ 9,798$ 16,499$ Investments - 26,490 - - - - Accounts receivable - 36 - - - - Due from other funds - - - - - 115 Due from other governmental units - - 327 47,802 - -

Total assets 57,358$ 262,217$ 31,489$ 70,756$ 9,798$ 16,614$

LiabilitiesAccounts payable and accrued expenses 489$ 26,982$ -$ -$ -$ -$ Due to other funds - - - - - - Due to other governmental units - - - - - - Deferred revenue 56,869 16,828 - - 6,973 -

Total liabilities 57,358 43,810 - - 6,973 -

Fund balances

Restricted - 218,407 31,489 - 2,825 16,614 Committed - - - 70,756 - -

Total fund balances - 218,407 31,489 70,756 2,825 16,614

Total liabilities and fund balances 57,358$ 262,217$ 31,489$ 70,756$ 9,798$ 16,614$

September 30, 2015

of 3



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TotalClerk's Clerk's Other Nonmajor

Article V Modernization Courthouse Special Governmental Fund Trust Fund Facilities Revenue Funds

AssetsCash and cash equivalents 67,512$ 45,058$ 121,842$ 181,774$ 1,162,697$ Investments - - - - 26,490 Accounts receivable - - - - 56,853 Due from other funds 15,037 2,560 1,059 615 24,972 Due from other governmental units - - - - 355,688

Total assets 82,549$ 47,618$ 122,901$ 182,389$ 1,626,700$

LiabilitiesAccounts payable and accrued expenses 12,026$ 200$ -$ 726$ 126,579$ Due to other funds - 14,173 - 500 133,480 Due to other governmental units 70,523 - - 17 70,540 Deferred revenue - - - 126,546 342,911

Total liabilities 82,549 14,373 - 127,789 673,510

Fund balances

Restricted - 33,245 122,901 54,600 882,434 Committed - - - - 70,756

Total fund balances - 33,245 122,901 54,600 953,190

Total liabilities and fund balances 82,549$ 47,618$ 122,901$ 182,389$ 1,626,700$

September 30, 2015

of 3

Calhoun County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances


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Sheriff'sIndustrial Waste Affordable Special

Development Management Housing RevenueAuthority Grants (SHIP) Weatherization Funds

RevenuesPermits, fees and special assessment -$ -$ -$ -$ -$ Intergovernmental 174,564 - - - 88,707 Charges for services 102,802 - - - 58,603 Fines and forfeitures - - - - - Grants 336,379 90,909 266,176 50,676 87,316 Investment earnings 26 - 149 - 14 Contributions and donations - - - 1,198 4,151 Other fees and miscellaneous 133,460 26,385 837 - 16,236

Total revenue 747,231 117,294 267,162 51,874 255,027


General government - - - - - Public health and safety - - - - 356,459 Physical environment - 69,335 - - - Transportation 189,367 - - - - Economic environment 62,253 - 267,162 49,565 - Human services - - - - - Culture and recreation - - - - - Court related - - - - -

Capital outlay 502,165 46,084 - 2,309 14,527

Total expenditures 753,785 115,419 267,162 51,874 370,986

Excess of revenues over (under) expenditures (6,554) 1,875 - - (115,959)

Other financing sources (uses)Operating transfers in - - - - 164,451 Operating transfers out - (26,104) - - - Transfers from State of Florida - - - - - Transfers to State of Florida - - - - -

Net other financing sources (uses) - (26,104) - - 164,451

Net change in fund balances (6,554) (24,229) - - 48,492

Fund balances - beginning 118,039 119,289 - - 147,316

Fund balances - ending 111,485$ 95,060$ -$ -$ 195,808$


of 3



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Boating Old Supervisor Article V Improvement Courthouse of Elections' Domestic

Grant Fund Library Program Restoration Grant Fund Violence

RevenuesPermits, fees and special assessment -$ -$ 4,588$ -$ -$ -$ Intergovernmental - 39,000 - - - - Charges for services - 6,124 - - - 1,384 Fines and forfeitures - 1,647 - - - - Grants 20,140 223,256 - 47,802 - - Investment earnings 34 179 - - 4 - Contributions and donations - - - - - - Other fees and miscellaneous - 10,697 - - 312 -

Total revenue 20,174 280,903 4,588 47,802 316 1,384


General government - - - - - - Public health and safety - - - - - - Physical environment - - - - - - Transportation - - - - - - Economic environment - - - - - - Culture and recreation - 570,393 - 48,454 - - Court related 20,174 - - - - -

Capital outlay - - - - - -

Total expenditures 20,174 570,393 - 48,454 - -

Excess of revenues over (under) expenditures - (289,490) 4,588 (652) 316 1,384

Other financing sources (uses)Operating transfers in - 291,998 - - - - Transfers from State of Florida - - - - - - Transfers to State of Florida - - - - - -

Net other financing sources (uses) - 291,998 - - - -

Net change in fund balances - 2,508 4,588 (652) 316 1,384

Fund balances - beginning - 215,899 26,901 71,408 2,509 15,230

Fund balances - ending -$ 218,407$ 31,489$ 70,756$ 2,825$ 16,614$


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TotalClerk's Clerk's Other Nonmajor

Article V Modernization Courthouse Special Governmental Fund Trust Fund Facilities Revenue Funds

RevenuesPermits, fees and special assessment -$ -$ -$ -$ 4,588$ Intergovernmental - - - - 302,271 Charges for services 148,160 15,162 19,615 9,618 361,468 Fines and forfeitures 52,308 11,571 - 5,381 70,907 Grants - - - - 1,122,654 Investment earnings 1,972 16 - - 2,394 Contributions and donations - - - - 5,349 Other fees and miscellaneous - - - - 187,927

Total revenue 202,440 26,749 19,615 14,999 2,057,558


General government - 49 - - 49 Public health and safety - - - 14,828 371,287 Physical environment - - - - 69,335 Transportation - - - - 189,367 Economic environment - - - - 378,980 Culture and recreation - - - - 618,847 Court related 418,844 19,531 1,407 3,759 463,715

Capital outlay - - - - 565,085

Total expenditures 418,844 19,580 1,407 18,587 2,656,665

Excess of revenues over (under) expenditures (216,404) 7,169 18,208 (3,588) (599,107)

Other financing sources (uses)Operating transfers in - - - - 456,449 Operating transfers out - - - - (26,104) Transfers from State of Florida 252,448 - - - 252,448 Transfers to State of Florida (36,044) - - - (36,044)

Net other financing sources (uses) 216,404 - - - 646,749

Net change in fund balances - 7,169 18,208 (3,588) 47,642

Fund balances - beginning - 26,076 104,693 58,188 905,548

Fund balances - ending -$ 33,245$ 122,901$ 54,600$ 953,190$


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Calhoun County, Florida Combining Statement of Fiduciary Net Position

Agency Funds

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General Child Jury andTrust Support Witness

AssetsCash and cash equivalents 93,300$ 1,150$ 4,025$ Due from other funds 108 72 15 Due from other governments - - - Due from individuals 30 - -

Total assets 93,438$ 1,222$ 4,040$

LiabilitiesAccounts payable -$ -$ -$ Due to other funds 22,063 108 - Due to Board of County Commissioners 10,484 1,042 1,050 Due to other governmental units 19,742 72 2,990 Due to individuals 41,149 - -

Total liabilities 93,438$ 1,222$ 4,040$

ClerkSeptember 30, 2015

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Calhoun County, Florida Combining Statement of Fiduciary Net Position

Agency Funds

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SheriffInmateTrust Tax Tag Totals

AssetsCash and cash equivalents 8,213$ 203,235$ 33,659$ 343,582$ Due from other funds - - 3 198 Due from other governments - - - - Due from individuals - - 447 477

Total assets 8,213$ 203,235$ 34,109$ 344,257$

LiabilitiesAccounts payable 3,913$ -$ -$ 3,913$ Due to other funds 375 3 - 22,549 Due to Board of County Commissioners - 138 7,418 20,132 Due to other governmental units - 203,094 26,691 252,589 Due to individuals 3,925 - - 45,074

Total liabilities 8,213$ 203,235$ 34,109$ 344,257$

Tax CollectorSeptember 30, 2015

REQUIRED SUPPLEMENTARY INFORMATION

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Calhoun County, Florida Schedule of Proportional Share of Net Pension Liability

Florida Retirement System (Last 3 fiscal years)

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2015 2014 2013

County's proportion of the net pension liability (asset) 0.020100000% 0.018600000% 0.016400000%

County's proportionate share of the net pension liability (asset) 2,593,231$ 1,135,718$ 1,459,788$

County's covered - employee payroll 4,000,025$ 3,608,919$ 3,935,661$

County's proportionate share of the net pension liability (asset) as a percentage of its own covered - employee payroll 64.83% 31.47% 37.09%

FRS Plan fiduciary net position as a percentage of the total pension liability 92.00% 96.09% N/A

Note: Data was unavailable prior to 2013

Calhoun County, Florida Schedule of Contributions

Florida Retirement System (Last 3 fiscal years)

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2015 2014 2013

Contractually required contributions 489,498$ 407,722$ 220,273$

Contributions in relation to the contractually required contribution (489,498) (407,722) (220,273)

Contribution deficiency (excess) -$ -$ -$

County's covered-employee payroll 4,000,025$ 3,608,819$ 3,935,661$

Contributions as a percentage of covered-employee payroll 12.24% 11.30% 5.60%

Calhoun County, Florida Schedule Proportional Share of Net Pension Liability

Health Insurance Subsidy (Last 3 fiscal years)

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2015 2014 2013

County's proportion of the net pension liability (asset) 0.012600000% 0.012800000% 0.013700000%

County's proportionate share of the net pension liability (asset) 1,287,829$ 1,196,118$ 1,189,980$

County's covered - employee payroll 4,000,025$ 3,608,819$ 3,935,661$

County's proportionate share of the net pension liability (asset) as a percentage of its own covered - employee payroll 32.20% 33.14% 30.24%

HIS Plan fiduciary net position as a percentage of the total pension liability 0.50% 0.99% N/A

Note: Data was unavailable prior to 2013

Calhoun County, Florida Schedule of Contributions

Health Insurance Subsidy (Last 3 fiscal years)

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2015 2014 2013

Contractually required contributions 48,271$ 43,822$ 44,774$

Contributions in relation to the contractually required contribution (48,271) (43,822) (44,774)

Contribution deficiency (excess) -$ -$ -$

County's covered-employee payroll 4,000,025$ 3,608,819$ 3,935,661$

Contributions as a percentage of covered-employee payroll 1.21% 1.21% 1.14%

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INDEPENDENT AUDITORS’ REPORT 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 To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Calhoun County, Florida (the “County”) as of and for the year ended September 30, 2015, which collectively comprise Calhoun County, Florida’s basic financial statements and have issued our report thereon dated June 23, 2016. Internal Control Over Financial Reporting

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

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the County’s financial 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 a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses and significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompany schedule of findings and questioned costs as items 04-01 and 04-02 that we consider to be significant deficiencies.

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To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the Calhoun County, Florida’s financial statements are free of 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 with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that is required to be reported under Government Auditing Standards. Calhoun County’s Response to Findings Calhoun County, Florida’s response to the findings identified in our audit is described in the accompanying letter. We did not audit Calhoun County, Florida’s response and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on 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 is not suitable for any other purpose.

June 23, 2016

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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND

ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL

To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida

Report on Compliance for Each Major Federal Program and State Project

We have audited Calhoun County, Florida’s (the “County”) compliance with the types of compliance requirements described in the U. S. Office of Management and Budget OMB Circular A-133 Compliance Supplement) and the requirements described in the Department of Financial Services’ State Projects Compliance Supplement, that could have a direct and material effect on each of the County’s major federal programs and state projects for the year ended September 30, 2015. The County’s major federal programs and major state projects are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

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

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and major state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance 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 Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or major state project occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and major state project. However, our audit does not provide a legal determination of the County’s compliance.

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To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County Blountstown, Florida

Opinion on Each Major Federal Program and State Project

In our opinion, the County, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs or major state projects for the year ended September 30, 2015.

Report on Internal Control Over Compliance

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

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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

June 23, 2016

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Calhoun County, Florida Schedule of Expenditures of Federal Awards and

State Financial Assistance

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Federal Agency Contract/Pass through entity CFDA GrantFederal Award Programs Number Number Expenditures

United States Department of Homeland SecurityPass through Florida Department Of Emergency Management

Hazard Mitigation Grant Program:Chipola Road Stormwater Drainage 97.039 14HM-2Z-02-17-01-330 85,830$

Pass through Florida Department of Economic OpportunityDisaster #4177 97.036 15-SP-8Z-02-17-02-503 662,714

Emergency Management Performance Grant 97.042 16-FG-1M-02-17-01-074 1,255Emergency Management Performance Grant 97.042 15-FG-1M-02-17-01-074 27,600Total Emergency Management Performance Grants 28,855

National Directorate FY 2015 State Homeland Security Grant Program 97.067 15-DS-L5-02-17-01-194 14,200 Total United States Department of Homeland Security 791,599

United States Department of TransportationFederal Aviation Administration

Airport Improvement Programs 20.106 3-12-0158-005-2015 17,159

Pass through Florida Department of TransportationLocal Agency Program Agreement - CR274 Sidewalk Project 20.205 4333566-1-38-1(ARB70) 21,956

Total United States Department of Transportation 39,115

United States Department of Health and Human ServicesAgency for Children and FamiliesPass through Department of Revenue

Child Support Enforcement Child Support Enforcement - Title IVD 93.563 COC07 114,433 Child Support Enforcement - Title IVD 93.563 CST07 964 Total Child Support Enforcement 115,397

Pass Through Florida Department of Economic OpportunityLow-Income Home Energy Assistance Program 93.568 15WX-0G-02-17-01-006 3,920 Low-Income Home Energy Assistance Program 93.568 14WX-0G-02-17-01-006 46,756 Total Low-Income Home Energy Assistance Program 50,676

Total United States Department of Health and Human Services 166,073

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United States Department of Justice

Pass through Florida Department of Law Enforcement:Edward Byrne Memorial Justice Assistance Grant

JAGC Grant - All Terrain Vehicle 16.738 2015-JAGC-CALH-2-D7-255 17,000 JAGC Grant - Drug Enforcement 16.738 2015-JAGC-CALH-1-R3-077 39,152 JAGD Grant - Mobile Radio 16.738 2015-JAGD-CALH-1-R1-088 1,000Total Edward Byrne Memoria Justice Assistance Grant 57,152

Crime Victim AssistanceVictims of Crime Act (VOCA) 16.575 V032-14341 40,214

Total United States Department of Justice 97,366

United States Department of AgricultureEmergency Watershed Protection Program

Natural Resources Conservation Service 10.923 68-4209-15-157 38,246 Total United States Department of Agriculture 38,246

Total expenditures of Federal Awards 1,132,399$

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State Agency State Grant/Pass-Through Entity CSFA ContractState Financial Assistance Projects Number Number ExpendituresFlorida Department of Transportation

Transportation Systems OperationsSmall County Outreach Program (SCOP) - Cain Road 55.009 433465015801 30,063$ Small County Outreach Program (SCOP) - CR287 55.009 40879025401 111,221 Small County Outreach Program (SCOP) - CR392 55.009 431279-1-58-01 712,280 Total Small County Outreach Program 853,564 Small County Road Assistance Program (SCRAP) - CR 69S 55.016 40722215801 1,486,179 Small County Road Assistance Program (SCRAP) - Silas Green 55.016 435196-1-58-01 93,010 Total Small County Road Assistance Program (SCRAP) 1,579,189 County Incentive Grant Program (CIGP) - CR69 55.008 407222-2-58-01 452,813 Total Transportation Systems Operations 2,885,566

Aviation Development GrantsAviation Development Grants 55.004 AO780 3,636 Aviation Development Grants 55.004 ARA47 99,750 Aviation Development Grants 55.004 ARR68 4,409 Aviation Development Grants 55.004 ARA959 88,997 Aviation Development Grants 55.004 AQS90 48,109 Aviation Development Grants 55.004 AQS91 71,547 Aviation Development Grants 55.004 AQS92 2,772 Total Aviation Development Grants 319,220

Total Florida Department of Transportation 3,204,786

Florida Housing Finance CorporationState Housing Initiatives Partnership Program

State Housing Initiatives Partnership Program 52.901 13/14 27,267State Housing Initiatives Partnership Program 52.901 14/15 230,159State Housing Initiatives Partnership Program 52.901 15/16 8,750

Total Florida Housing Finance Corporation 266,176

Florida Department of Economic OpportunityDivision of Community Development

Growth Management Implementation - Technical Assistance 40.024 #P0082 30,000 Division of Emergency Management

Disaster #4177 31.XXX 15-SP-8Z-02-17-02-503 239,878 Total Florida Department of Economic Opportunity 269,878

Florida Executive Office of the GovernorEmergency Management Programs

Emergency Management Assistance 31.063 16-BG-83-02-17-01-007 22,635Emergency Management Assistance 31.063 15-BG-83-02-17-01-007 68,021Total Emergency Management Assistance 90,656Hurricane Shelter Retrofit Project 31.068 15-SR-94-02-17-01-142 1,192,671Residential Construction Mitigation Program 31.006 14-RC-6V-02-17-01-206 22,863

Total Florida Office of the Governor 1,306,190

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Florida Department of StateDivision of Library and Information Services:

Library Resources 45.030 15-ST-67 223,256 Division of Historical Resources:

Historic Preservation Small-Matching Grant 45.031 S1541 47,802 Total Florida Department of State 271,058

Florida Department of Environmental ProtectionSmall County Grants 37.012 503SC 90,909 Florida Recreation Development Assistance Program 37.017 A4247 5,444

Total Florida Department of Environmental Protection 96,353

Florida Department of Management ServicesE911 State Grant Program

E911 Rural County Grant Program - Fall Award 72.002 14-10-3 12,703 E911 Rural County Grant Program - Fall Award 72.002 15-4-4 23,430 E911 State Grant Program 72.002 S7-14-12-3 11,031 Total E911 State Grant Program 47,164

Total Florida Department of Management Services 47,164

Florida State Court SystemCounty Article V Trust Fund

Small County Courthouse Facilities 22.004 n/a 20,140 Total Florida State Court System 20,140

Total State Financial Assistance 5,481,745

Total Federal Awards and State Financial Assistance 6,614,144$

Calhoun County, Florida Notes to Schedule of Expenditures of Federal Awards

And State Financial Assistance For the year ended September 30, 2015

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NOTE 1 - BASIS OF ACCOUNTING The supplementary schedule of expenditures of federal award programs and state financial assistance projects includes the grant activity of Calhoun County, Florida (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement of OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations” and Chapter 10.550, Rules of the Auditor General. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2 - REPORTING ENTITY The County for purposes of the supplementary schedule of expenditures of federal award programs and state financial assistance projects includes all the funds of the primary government as defined by GASB 14, The Financial Reporting Entity. NOTE 3 - PASS-THROUGH AWARDS The County receives certain federal awards from pass-through awards of the State. The total amount of such pass-through awards is included on the supplementary schedule of expenditures of federal awards and state financial assistance.

Calhoun County, Florida Schedule of Findings and Questioned Costs


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A. SUMMARY OF AUDIT RESULTS

1. The Independent Auditors' Report expresses an unmodified opinion on the financial statements

of Calhoun County, Florida. 2. Significant deficiencies disclosed during the audit of the financial statements are reported in the

"Report 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." These significant deficiencies are not considered material weaknesses.

3. No instances of noncompliance material to the financial statements of Calhoun County, Florida

were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs and state

financial assistance projects are reported in the Independent Auditors’ Report on Compliance For Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General.

5. The Independent Auditors’ Report on Compliance For Each Major Federal Program and State

Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General for Calhoun County, Florida expresses an unmodified opinion.

6. No audit findings relative to the major federal award programs and state financial assistance

projects for Calhoun County, Florida are reported in this schedule. 7. The programs/projects tested as major programs/projects included the following:

Federal Programs CFDA No. U.S. Department of Homeland Security, Disaster #4177

97.036

State Projects CSFA No. Florida Department of Transportation, Aviation Development Grants

55.004

Florida Department of Transportation County Incentive Grant Program 55.008 Florida Department of Transportation Small County Outreach Program Florida Department of Transportation Small County Road Assistance Program Florida Executive Office of the Governor Hurricane Shelter Retrofit Project

55.009

55.016

31.068

Calhoun County, Florida Schedule of Findings and Questioned Costs


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A. SUMMARY OF AUDIT RESULTS (CONTINUED)

8. The threshold for distinguishing Type A and Type B programs/projects was $300,000 for major federal award programs and $300,000 for major state financial assistance projects.

9. Calhoun County, Florida did qualify as a low-risk auditee pursuant to OMB Circular A-133.

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

There were no current year audit findings.

C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS

There were no current year audit findings. D. FINDINGS AND QUESTIONED COSTS - MAJOR STATE FINANCIAL ASSISTANCE PROJECTS

There were no current year audit findings. E. OTHER ISSUES

1. No Corrective Action Plan is required because there were no findings required to be reported under the federal or Florida Single Audit Acts.

Calhoun County, Florida Summary Schedule of Prior Audit Findings


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PRIOR-YEAR AUDIT FINDINGS AND QUESTIONED COSTS

SUPERVISOR OF ELECTIONS AND PROPERTY APPRAISER

NEED FOR SEGREGATION OF DUTIES, FINDING 04-01, NOT RESOLVED

COMMENT: Separation of certain accounting and administrative duties among employees, which is recommended as an effective internal control procedure, was not considered feasible because of size and limited number of employees. RECOMMENDATION: While we recognize the small size of these offices make it impractical to provide total separation of incompatible duties, we do feel it is important that these offices are aware of this condition. STATUS: This item continues to exist. SHERIFF AND TAX COLLECTOR NEED FOR SEGREGATION OF DUTIES, FINDING 04-02, NOT RESOLVED COMMENT: Separation of certain accounting and administrative duties among employees, which is recommended as an effective internal control procedure, was not adequate. RECOMMENDATION: This is due to the limited number of employees, and certain incompatible duties being performed by the same employee. These offices recognize that the cost of its internal control structure should not exceed the benefits expected to be derived and the inherent limitations of any internal control structure. Mistakes and irregularities may occur in any event with or without an adequate internal control structure. Furthermore, adequate segregation of duties can be circumvented by collusion among persons. Nevertheless, internal control is strengthened when incompatible duties are separated and review procedures are established and adhered to.

STATUS: This item continues to exist.

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INDEPENDENT AUDITORS’ MANAGEMENT LETTER

To the Honorable Board of County Commissioners of Calhoun County, Florida Blountstown, Florida We have audited the financial statements of Calhoun County, Florida (the “County”) as of and for the fiscal year ended September 30, 2015, and have issued our report thereon dated June 23, 2016. Auditors’ Responsibility 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 Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedules We have issued our Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance For Each Major Federal Program and State Project and on Internal Control over Compliance Required By OMB A-133 and Chapter 10.550 Rules of the Florida Auditor General; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated June 23, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report except as noted in the “Summary Schedule of Prior Audit Findings.”

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To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County, Florida Blountstown, Florida Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to the financial statements. Financial Condition Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described 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 condition assessment procedures. It is management’s responsibility to monitor the County’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report

Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine whether the annual financial report for Calhoun County, Florida for the fiscal year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015. In connection with our audit, we determined that these two reports were in agreement. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations.

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To the Honorable Board of County Commissioners and Constitutional Officers of Calhoun County, Florida Blountstown, Florida

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but, which warrants the attention of those charges with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

June 23, 2016

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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT

INVESTMENT POLICIES

To the Honorable Board of County Commissioners of Calhoun County, Florida Blountstown, Florida

We have examined Calhoun County, Florida’s compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2015. Management is responsible for the Calhoun County, Florida’s compliance with those requirements. Our responsibility is to express an opinion on the Calhoun County, Florida’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Calhoun County, Florida’s compliance with those requirements and performing such other procedures as we considered necessary 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 Calhoun County, Florida’s compliance with specified requirements.

In our opinion, the Calhoun County, Florida complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.

This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.

June 23, 2016

Calhoun County, Florida Management’s Response

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SPECIAL-PURPOSE FINANCIAL STATEMENTS

Calhoun County, Florida Clerk of the Circuit Court


September 30, 2015


Clerk of the Circuit Court Table of Contents

September 30, 2015 REPORT

Independent Auditors’ Report 1


Special-Purpose Balance Sheet - Governmental Funds 3

Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 4

Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 5

Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Court Article V Fund 6

Special-Purpose Statement of Fiduciary Net Position - Agency Funds 7

Notes to Special-Purpose Financial Statements 8


Combining Special-Purpose Statement of Fiduciary Net Position - Agency Funds 18

Independent Auditors’ Report 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 19

Independent Accountants' Report on Compliance with Section 218.415,Florida Statutes, Local Government Investment Policies 21

Independent Accountants' Report on Compliance with Section 28.35,Florida Statutes, Florida Clerks of Court Operations Corporation , and Section 28.36,Florida Statutes, Budget Procedure 22

Independent Accountants' Report on Compliance with Section 61.181, Florida Statutes, Depository for Alimony Transactions, Support, Maintenanceand Support Payments; Fees 23


REPORT

INDEPENDENT AUDITORS' REPORT

To the Honorable Carla A. Hand Clerk of Circuit Court of Calhoun County, Florida Blountstown, Florida

Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Clerk of the Circuit Court (the “Clerk”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements

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


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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the special-purpose 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 Clerk’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the special-purpose financial statements.

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

To the Honorable Carla A. Hand Clerk of the Circuit Court of Calhoun County, Florida Blountstown, Florida

As discussed in Note 1 to the financial statements, the Clerk’s financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Clerk. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Clerk.

Opinion

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and fiduciary fund type of the Clerk as of September 30, 2015, and the respective changes in financial position and the respective budgetary comparison for the General Fund and the Major Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Clerk’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2016 on our consideration of the Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk’s internal control over financial reporting and compliance.

June 14, 2016


Clerk of the Circuit Court Special-Purpose Balance Sheet

Governmental Funds

See accompanying notes to financial statements -3-

Non-major Fund

TotalGeneral Court Modernization Governmental

Fund Article V Trust Fund FundsAssets

Cash and cash equivalents 113,518$ 67,512$ 45,058$ 226,088$ Due from other funds 18,553 15,124 2,560 36,237 Due from other governmental units 19,575 - - 19,575

Total assets 151,646$ 82,636$ 47,618$ 281,900$

LiabilitiesAccounts payable and accrued expenses 10,514$ 12,026$ 200$ 22,740$ Due to other funds - 87 14,173 14,260 Due to Board of County Commissioners 44,335 - - 44,335 Due to other governmental units - 70,523 - 70,523 Deferred revenue 1,275 - - 1,275

Total liabilities 56,124 82,636 14,373 153,133

Fund balancesRestricted - - 33,245 33,245 Unassigned 95,522 - - 95,522

Total fund balances 95,522 - 33,245 128,767

Total liabilities and fund balances 151,646$ 82,636$ 47,618$ 281,900$

September 30, 2015Major Funds


Clerk of the Circuit Court Special-Purpose Statement of Revenues, Expenditures, and

Changes in Fund Balances Governmental Funds



Non-major FundTotal

General Court Modernization GovernmentalFund Article V Trust Fund Funds

RevenuesCharges for services 38,374$ 148,160$ 15,162$ 201,696$ Fines and forfeitures - 52,310 11,571 63,881 Grants 114,433 - - 114,433 Investment earnings 4,067 1,972 16 6,055 Other fees and miscellaneous 2,872 - - 2,872

Total revenues 159,746 202,442 26,749 388,937


General government:Personal services 287,549 - - 287,549 Operating expenses 48,557 - 49 48,606

Court-related:Personal services 20,877 389,057 - 409,934 Operating expenses 1,502 29,789 19,531 50,822

Total expenditures 358,485 418,846 19,580 796,911

Excess of revenues over (under) expenditures (198,739) (216,404) 7,169 (407,974)

Other financing sources (uses)Appropriations from Board of County Commissioners 279,970 - - 279,970 Reversion to Board of County Commissioners (44,957) - - (44,957) Transfer from State of Florida - 252,448 - 252,448 Transfer to State of Florida - (36,044) - (36,044)

Net other financing sources (uses) 235,013 216,404 - 451,417

Net change in fund balances 36,274 - 7,169 43,443

Fund balances - beginning 59,248 - 26,076 85,324

Fund balances - ending 95,522$ -$ 33,245$ 128,767$

Major Funds



Changes in Fund Balance – Budget and Actual General Fund



Original Final Actual FavorableBudget Budget Amounts (Unfavorable)

RevenuesCharges for services 34,000$ 34,000$ 38,374$ 4,374$ Grants 85,000 85,000 114,433 29,433 Investment earnings 1,200 1,200 4,067 2,867 Other fees and miscellaneous - - 2,872 2,872

Total revenues 120,200 120,200 159,746 39,546


General government:Personal services 302,784 302,784 287,549 15,235 Operating expenses 55,000 55,000 48,557 6,443

Court-related:Personal services 22,905 21,373 20,877 496 Operating expenses - 1,532 1,502 30

Capital outlayGeneral government 35,996 35,996 - 35,996

Reserve for Contingency 42,733 42,733 - 42,733


Excess of revenues over (under) expenditures (339,218) (339,218) (198,739) 140,479

Other financing sources (uses)Appropriations from Board of County Commissioners 279,970 279,970 279,970 - Reversion to Board of County Commissioners - - (44,957) (44,957)

Net other financing sources (uses) 279,970 279,970 235,013 (44,957)


Fund balance - beginning 59,248 59,248 59,248 -

Fund balance - ending -$ -$ 95,522$ 95,522$




Changes in Fund Balance – Budget and Actual Court Article V Fund




RevenuesCharges for services 116,300$ 116,300$ 148,160$ 31,860$ Fines and forfeitures 66,600 61,165 52,310 (8,855) Investment earnings 30 30 1,972 1,942

Total revenues 182,930 177,495 202,442 24,947


Court-related:Personal services 411,649 394,779 389,057 5,722 Operating expenses 41,140 35,165 29,789 5,376


Excess of revenues over (under) expenditures (269,859) (252,449) (216,404) 36,045

Other financing sources (uses)Transfers from State of Florida 269,859 252,449 252,448 (1) Transfers to State of Florida - - (36,044) (36,044)


Net change in fund balance - - - -

Fund balance - beginning - - - -

Fund balance - ending -$ -$ -$ -$



Clerk of the Circuit Court Special-Purpose Statement of Fiduciary Net Position

Agency Funds


AgencyFunds

AssetsCash and investments 98,475$ Due from other funds 195 Due from individuals 30


LiabilitiesDue to other funds 22,171$ Due to Board of County Commissioners 12,576 Due to other governmental units 22,804 Due to individuals 41,149


September 30, 2015


Clerk of the Circuit Court Notes to Special-Purpose Financial Statements

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Calhoun County, Florida, Clerk of the Circuit Court (the “Clerk”) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these special-purpose financial statements.

Reporting Entity The Calhoun County Clerk of Circuit Court (Clerk) is an integral part of Calhoun County, Florida and is an elected Constitutional Officer who is governed by state statutes and regulations. The financial statements of the Clerk are included in Calhoun County, Florida’s basic financial statements. The Clerk operates on a fee and budgetary system. Under the fee system, the officer retains fees, commissions, and other revenue to pay all operating expenditures, including statutory compensation. Under the budgetary system, appropriated funds are received from the Board of County Commissioners and any unexpended appropriations are remitted to the Board of County Commissioners after the end of the fiscal year. The Clerk receives appropriated funds from the State of Florida to fund court-related activities. The receipts from the State are recorded as other financing sources on the Clerk’s financial statements. The Clerk’s special-purpose financial statements do not purport to reflect the financial position or the results of operations of Calhoun County, Florida taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Clerk’s office is operationally autonomous from the Board of County Commissioners (the “Board”), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Clerk is reported as part of the primary government of Calhoun County, Florida. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Clerk. Under the budgetary system, a portion of the operations of the Clerk are funded by the Board. The receipts from the Board are recorded as other financing sources on the Clerk’s financial statements and as other financing uses on the Board’s financial statements. Any excess of revenue and other financial sources received over expenditures are remitted to the Board at year-end except for excess federal financial participation payments and support incentive payments from the State’s Title IV-D agency.



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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Clerk, were prepared in conformity with generally accepted accounting principles in the United States of America.

In preparing these financial statements the following are reported as major governmental funds:

General Fund - The general fund is the general operating fund of the Clerk. It is used to account for all financial resources, except for those required to be accounted for in another fund. Court Article V Fund - Special Revenue Fund that accounts for all court related functions in accordance with Florida Statutes Section 28.

In addition, the Clerk has reported the following non-major governmental fund:

Modernization Trust Fund - The modernization trust fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

The Clerk also reported the following fund type:

Agency Funds - Agency funds are custodial in nature and account for assets held in a trust capacity or as agent for individuals, other governmental units and/or other funds. Agency funds only report assets and liabilities and do not measure results of operations. The Clerk reports the General Trust, Child Support and Jury and Witness as Agency Funds.

Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the special-purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) and (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until due. Charges for services and investment revenue are recorded as earned.



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The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting.

When both restricted and unrestricted resources are available for use, it is the Clerk’s policy to use restricted resources first, then unrestricted resources as needed.

Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period. Budgetary Requirements Government fund revenues and expenditures accounted for in budgetary funds are controlled by a formal integrated budgetary accounting system in accordance with the Florida Statutes. An annual budget is adopted for the general fund. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are prepared on the modified accrual basis of accounting. The Clerk of the Circuit Court, functioning in the capacity as the Clerk of the Circuit and County Courts and as the Clerk of the Board of County Commissioners, prepares a budget in two parts:

The budget for funds necessary to perform court-related functions as provided in Florida Statutes 28.36 is filed with the Florida Clerks of Court Operations Corporation; and

The budget for funds necessary to perform those duties of Clerk of the Board of County Commissioners, County Auditor, and Custodian of all county funds and other county-related duties.

The Departments within the Clerk’s office that deal primarily or exclusively with the County are budgeted with appropriations from the Board. The fees generated by the various non-court activities of the Clerk are used to pay operating expenditures of that department. The Clerk’s annual budget is monitored at varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot legally exceed the total annual budget appropriations at the individual fund level.



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Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Investments consist of amounts placed with the State Board of Administration for participation in the Local Government Surplus Funds Trust Fund investment pools created by Sections 218.405 and 218.417, Florida Statutes.

Capital Assets Tangible personal property is recorded as expenditures in the governmental fund types at the time an asset is acquired. Assets acquired by the Clerk are capitalized at cost in the capital asset accounts of the County. The Clerk’s assets are reported in the statement of net position in the County’s financial statements. The Clerk maintains custodial responsibility for the capital assets used by her office. Estimated useful lives, in years, for depreciable assets are as follows: Furniture, machinery, and equipment 3-15 years Deferred Revenues Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available, and in accordance with the modified accrual basis of accounting, are reported as deferred revenues. Accumulated Compensated Absences Permanent full-time employees of the Clerk are entitled to accrue sick leave hours based on pay periods worked, with a limit on total hours accrued being 280 hours at calendar year end. Vacation time is earned depending on the length of employment. Upon separation from employment, employees can be paid for unused annual leave in accordance with personnel policy. The Clerk’s accumulated compensated absences are reported in the statement of net position in the County’s financial statements. Fund Balance Reporting and Governmental Fund-Type Definitions The Clerk follows GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions which clarifies governmental fund balance classifications and fund-type definitions. Fund balances are classified either as non-spendable or spendable. See Note 10. Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates.



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Risk Management The Clerk is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and the public; or damage to property of others. The Clerk participates in the risk management program through the Calhoun County Board of County Commissioners, which uses commercial insurance to cover certain risks from loss.

The Board obtained commercial insurance against losses for the following types of risk: Real and Personal Property Damage Public Employees' Bond Workers' Compensation General and Automobile Liability Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors’ Report, which is the date the financial statements were available to be issued.

NOTE 2 - DEPOSITS AND INVESTMENTS At year end, the carrying amount of the Clerk’s deposits was $324,563 and the bank balance was $332,558. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis. The Clerk’s investment practices are governed by Chapter 218.415 of the Florida Statutes. The Clerk is authorized to invest in certificates of deposit, money market certificates, obligations of the US Treasury, mutual funds and repurchase agreements collateralized by U.S. Government securities, and the Local Government Surplus Trust Fund.



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NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) The Clerk’s invested funds in the Florida State Board of Administration Local Governments Surplus Funds Investment Pool. At September 30, 2015, the market value and carrying value of these funds $45,201. The funds are carried as a cash equivalent on the balance sheet at September 30, 2015 (See Note 1, for definition of cash equivalents) and are included in the carrying value and bank balance in the first paragraph of this note.

As a Florida PRIME participant, the Clerk invests in a pool of investments whereby the Clerk owns a share of the respective pool, not the underlying securities. The State Board of Administration’s interpretation of GASB 31 is that the Florida PRIME is currently considered a Securities and Exchange Commission Rule 2a7-like fund, as of September 30, 2015. These investments are reported at fair value, which is amortized cost. Additional information and investment policies regarding the Local Government Surplus Fund Trust Fund may be obtained from the State Board of Administration at www.sbafla.com/prime. CREDIT RISK The credit risk of certain investments, such as investment pools managed by other governments, cannot be categorized as to credit risk because the Clerk’s investments are not evidenced by specific, identifiable investment securities.

As of September 30, 2015, the Clerk’s investment in the Florida PRIME is rated by Standard and Poors and the current rating is AAAm.

INTEREST RATE RISK The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2015, is 29 days. Next interest rate reset for floating rate securities are used in the calculation of the WAM.

CUSTODIAL CREDIT RISK At September 30, 2015, the Clerk did not hold any deposits or investments that were considered to have custodial risk.

CONCENTRATION OF CREDIT RISK At September 30, 2015, the Clerk did not hold any investments that were considered to have concentration of credit risk.



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NOTE 3 - INTERFUND RECEIVABLES AND PAYABLES

Interfund receivables and payables at September 30, 2015, are as follows: Due to/from Other Funds:

Receivable Fund Payable FundGeneral Fund Court Article V Fund $ 14,173 General Fund Agency Fund $ 4,380 Court Article V Fund Agency $ 15,124 Modernization Trust Fund Agency Fund $ 2,560 General Trust - Agency Child Support - Agency $ 108 Child Support - Agency Court Article V Fund $ 72 Jury and Witness - Agency Court Article V Fund $ 15

The balances resulted from the time lag between the dates that (a) interfund goods and services are provided or reimbursable expenditures occur, (b) transactions are recorded in the accounting system, and (c) payments between funds are made. Amounts are generally repaid during the next fiscal year. NOTE 4 - LONG-TERM LIABILITIES The Clerk’s long-term liabilities are reported in the statement of net position in the County’s financial statements. Long-term liability activity for the year ended September 30, 2015, was as follows:

BEGINNING

BALANCE

ADDITIONS

REDUCTIONS

ENDING

BALANCE

DUE WITHIN

ONE YEAR

Governmental activities:

Compensated absences

$ 22,056

$ 8,448

$ -

$ 30,504

$ 7,626

Accrued compensated absences represent the vested portion of accrued vacation and sick leave. See Note 1 for a summary of the Clerk’s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented.



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NOTE 5 - EMPLOYEE PENSION PLAN The Clerk participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. Chapter 121, Florida Statutes, establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual.

For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- of-living adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding method and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows:

10/01/14 07/01/15 Through Through 06/30/15 09/30/15 Regular employees 7.37% 7.26% Senior management 21.14% 21.43% Elected county officials’ class

43.24% 42.27%

Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 1, 2014 through September 30, 2015, the total payroll for all covered employees was $511,975. The retirement contributions for all employees’ covered by the System for the years ended September 30, 2015, 2014 and 2013 were $80,386, $69,347 and $40,934 which were the required contributions. For the year ended September 30, 2015 retirement contributions represent 15.70% of covered payroll.



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NOTE 5 - EMPLOYEE PENSION PLAN (CONTINUED) GASB Statement No. 68 establishes standards of accounting and financial reporting, but not funding or budgetary standards, for defined benefit pensions and defined contribution pensions provided to the employees of state and local governmental employers through pension plans that are administered through trusts or equivalent arrangements. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans within the scope of the Statement. The requirements of Statement No. 68 apply to the financial statements of all state and local governmental employers whose employees (or volunteers that provide services to state and local governments) are provided with pensions through pension plans that are administered through trusts or equivalent arrangements, and to the financial statements of state and local governmental nonemployer contributing entities that have a legal obligation to make contributions directly to such pension plans. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures related to pensions. Note disclosure and RSI requirements about pensions also are addressed. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. The adoption of Statement No. 68 has no impact on the Calhoun County, Florida Clerk’s governmental fund financial statements, which continue to report expenditures in the amount of the actuarially determined contributions, as required by State law. The calculation of pension contributions is unaffected by the change. However, the adoption has resulted in the restatement of the Calhoun County, Florida’s Fiscal Year 2014 government-wide financial statements to reflect the reporting of net pension liabilities and deferred inflows of resources and deferred outflows of resources for each of its qualified pension plans and the recognition of pension expense in accordance with the provisions of the Statement. There was no impact on the Calhoun County, Florida Clerk’s financial statements as a result of the implementation of Statement No. 68. NOTE 6 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION In addition to the retirement plan in Note 5, the County, in accordance with Section 112.0801, Florida Statutes, provides post-retirement health care benefits to all retired employees who participated in the group health plan while employed. Employees of the Clerk are covered under the County’s plan. The County is required to measure and recognize the annual cost of the future benefits and calculate the annual employer funding requirements and, to the extent funding is not made by the County recognize another post-employment benefit (OPEB) liability on the balance sheet of the County. These amounts, if any, are recorded in the County’s government-wide financial statements.



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NOTE 7 - COOPERATIVE AGREEMENT The Clerk has a Cooperative Agreement with the Florida Department of Revenue. This agreement encompasses all the Clerk’s child support functions. It allows for indirect cost reimbursement. The Clerk uses an established indirect cost rate to invoice the Department of Revenue each month. These amounts are federal funds received under CFDA #93.563. The net amount received was $114,433. NOTE 8 - EXCESS FEES Pursuant to Section 218.36(2), Florida Statutes, each County Officer shall pay into the county general fund all money in excess of the sum to which he or she is entitled under the provisions of Chapter 145. The Clerk’s general fund ended this year with excess fees of $44,957. NOTE 9 – COURT RELATED FEES Based on the legal opinion provided by the Clerks of Court Operations Corporation general counsel of the provisions of Section 28.37(3), F.S., which was adopted as policy by the CCOC Finance and Budget Committee, all excess court-related funds have been included in a fund liability, Due to Other Governmental Units. As of September 30, 2015, excess court-related funds were $70,523. NOTE 10 - FUND EQUITY Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Clerk had no non-spendable net assets at September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2015, the Clerk reports fund balance as restricted and unassigned. Restricted fund balances have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. Restricted fund balance shows amounts that are legally restricted for specific uses. The purpose for each is indicated as follows:

Funds Purpose Special Revenue Fund Funding for: Modernization of Public Records $ 17,255 Court-related technology 15,990 Court-related operational needs and program enhancements - Total restricted fund balance $ 33,245


Clerk of the Circuit Court Combining Special-Purpose Statement of Fiduciary Net Position

Agency Funds

See Independent Auditors’ Report -18-

General Child Jury and Trust Support Witness Total

AssetsCash 93,300$ 1,150$ 4,025$ 98,475$ Due from other funds 108 72 15 195 Due from individuals 30 - - 30

Total assets 93,438$ 1,222$ 4,040$ 98,700$

LiabilitiesDue to other funds 22,063$ 108$ -$ 22,171$ Due to Board of County Commissioners 10,484 1,042 1,050 12,576 Due to other governmental units 19,742 72 2,990 22,804 Due to individuals 41,149 - - 41,149

Total liabilities 93,438$ 1,222$ 4,040$ 98,700$

September 30, 2015

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INDEPENDENT AUDITORS' REPORT 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 To the Honorable Carla A. Hand Clerk of the Circuit Court of Calhoun County, Florida Blountstown, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the special-purpose financial statements of the Calhoun County, Florida Clerk of the Circuit Court (the “Clerk”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements and have issued our report thereon dated June 14, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly, we do not express an 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 management or 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 a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Clerk’s financial 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 a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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The Honorable Carla A. Hand Clerk of Circuit Court of Calhoun County, Florida Blountstown, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free of 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 with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk’s internal control or on 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 is not suitable for any other purpose.

June 14, 2016

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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES


We have examined Calhoun County, Florida, Clerk of the Circuit Court’s (the “Clerk”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2015. 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 Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk’s compliance with those requirements and performing such other procedures as we considered necessary 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 Clerk’s compliance with specified requirements.

In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.


June 14, 2016

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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH SECTION 28.35, FLORIDA STATUTES, FLORIDA CLERKS OF COURT OPERATIONS

CORPORATION, AND SECTION 28.36, FLORIDA STATUTES, BUDGET PROCEDURE


We have examined the office of the Calhoun County, Florida, Clerk of Circuit Court’s (the “Clerk”) compliance with the requirements of Section 28.35, Florida Statutes, Florida Clerks of Court Operations Corporation, and Section 28.36, Florida Statutes, Budget Procedure, during the year ended September 30, 2014. 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.




June 14, 2016

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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH SECTION 61.181, FLORIDA STATUTES, DEPOSITORY FOR ALIMONY TRANSACTIONS,

SUPPORT, MAINTENANCE AND SUPPORT PAYMENTS; FEES


We have examined the office of the Calhoun County, Florida Clerk of Circuit Court’s (the “Clerk”) compliance with the requirements of Section 61.181, Florida Statutes, Depository for Alimony Transactions, Support, Maintenance and Support Payments; Fees during the year ended September 30, 2015. 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.




June 14, 2016

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INDEPENDENT AUDITORS’ MANAGEMENT LETTER To the Honorable Carla A. Hand Clerk of the Circuit Court of Calhoun County, Florida Blountstown, Florida

Report on the Financial Statements We have audited the accompanying financial statements of the Calhoun County, Florida, Clerk of the Circuit Court (the “Clerk”), as of and for the year ended September 30, 2015, and have issued our report thereon dated June 14, 2016. Auditor’s Responsibility

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 Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. No significant findings and recommendations were made in the preceding annual financial audit report.

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To the Honorable Carla A. Hand Clerk of the Circuit Court of Calhoun County, Florida Blountstown, Florida Official Title and Legal Authority Section 10.554(1)(i)4, Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Calhoun County, Florida, Clerk of the Circuit Court was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Calhoun County, Florida, Clerk of the Circuit Court. Other Matters Section 10.554(1)(i)2, Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Calhoun County, Florida, Clerk and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

June 14, 2016

Calhoun County, Florida Property Appraiser


September 30, 2015


Property Appraiser Table of Contents

September 30, 2015 REPORT




Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 4

Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 5







REPORT

INDEPENDENT AUDITORS' REPORT To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Property Appraiser (the “Property Appraiser”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements




An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the special-purpose 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 Property Appraiser’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the special-purpose financial statements.


To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida As discussed in Note 1 to the financial statements, the Property Appraiser’s financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Property Appraiser. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Property Appraiser.

Opinion

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the Property Appraiser as of September 30, 2015, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2016 on our consideration of the Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance.

June 14, 2016


Property Appraiser Special-Purpose Balance Sheet

Governmental Funds


GeneralFund

AssetsCash and cash equivalents 32,617$


LiabilitiesAccounts payable and accrued expenses 4,307$ Due to Board of County Commissioners 13,310

Total liabilities 17,617

Fund balance - Restricted 15,000

Total liabilities and fund balance 32,617$

September 30, 2015


Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance

Governmental Funds


General Fund

RevenuesCharge for services 1,300$ Miscellaneous revenue 3

Total revenues 1,303


General government:Personal services 351,073 Operating expenses 81,568

Total expenditures 432,641

Excess (deficiency) of revenues over (under) expenditures (431,338)

Other financing sources (uses)Appropriations from Board of County Commissioners 459,648 Reversion to Board of County Commissioners (13,310)

Net other financing sources (uses) 446,338

Net change in fund balance 15,000

Fund balance, beginning -

Fund balance, ending 15,000$



Property Appraiser Special-Purpose Statement of Revenues, Expenditures, and



Variance with Final Budget -

Original Final Actual Favorable Budget Budget Amounts (Unfavorable)

RevenuesCharge for services -$ -$ 1,300$ 1,300$ Miscellaneous revenue - - 3 3

Total revenues - - 1,303 1,303



Reserve for Contingency 6,819 3,841 - 3,841


Excess (deficiency) of revenues over (under) expenditures (462,525) (462,525) (431,338) 31,187

Other financing sources (uses)Appropriations from Board of County Commissioners 462,525 462,525 459,648 (2,877) Reversion to Board of County Commissioners - - (13,310) (13,310)


Net change in fund balance - - 15,000 15,000

Fund balance, beginning - - - -

Fund balance, ending -$ -$ 15,000$ 15,000$



Notes to Special-Purpose Financial Statements

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Calhoun County, Florida, Property Appraiser (the “Property Appraiser”) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant principles and policies used in the preparation of these special-purpose financial statements.

Reporting Entity The Calhoun County, Florida, Property Appraiser (the “Property Appraiser”) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Property Appraiser’s special-purpose financial statements do not purport to reflect the financial position or the results of operations of Calhoun County, Florida taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Property Appraiser’s office is operationally autonomous from the Board of County Commissioners (“the Board”), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Property Appraiser is reported as part of the primary government of Calhoun County, Florida.

These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Property Appraiser. The operations of the Property Appraiser are funded by the Board. The receipts from the Board are recorded as other financing sources on the Property Appraiser's financial statements and as other financing uses on the Board's financial statements. Any excess of revenues and other financing sources received over expenditures are remitted to the Board at year-end.

Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Property Appraiser, were prepared in conformity with generally accepted accounting principles in the United States of America.



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In preparing these financial statements, the following is reported as a major governmental fund:

General Fund - The general fund is the general operating fund of the Property Appraiser. It is used to account for all financial resources, except those required to be accounted for in another fund.

Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. The general fund is accounted for on a spending or “financial flow” measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. General fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period. Basis of Accounting Basis of accounting refers to the point at which revenues and expenditures are recognized in the accounts and reported in the general fund financial statements and refers to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. When both restricted and unrestricted resources are available for use, it is the Property Appraiser’s policy to use restricted resources first, then unrestricted resources as needed.

Budgetary Requirements Expenditures are controlled by appropriations in accordance with the budget requirements set forth in Florida Statutes Chapter 195.087. The budgeted revenues and expenditures in the accompanying financial statements reflect all amendments, approved by the Florida Department of Revenue and Board of County Commissioners. On or before June 1 of each year, the Property Appraiser shall submit to the Department of Revenue a budget for the operation of his office for the ensuing fiscal year. The Department of Revenue and Board of County Commissioners must approve the final budget.



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Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government

Capital Assets Tangible personal property is recorded as expenditures in the general fund at the time an asset is acquired. Assets acquired by the Property Appraiser are capitalized at cost in the capital asset accounts of the County. The Property Appraiser’s assets are reported in the statement of net position in the County’s financial statements. The Property Appraiser maintains custodial responsibility for the capital assets used by his office.

Estimated useful lives, in years, for depreciable assets are as follows:

Furniture, machinery, and equipment 3-15 years

Accumulated Compensated Absences Permanent full-time employees of the Property Appraiser are entitled to earn sick leave and vacation time related to the length of employment with the Property Appraiser’s office. The vacation time must be taken during the calendar year earned and employees with greater than ten years of service receive 25% of accrued sick leave pay upon termination. The Property Appraiser’s accumulated compensated absences are reported in the statement of net position in the County’s financial statements. Risk Management The Property Appraiser is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The Property Appraiser participates in the risk management program through the Board of County Commissioners, which uses commercial insurance to cover certain risks from loss.

The Board obtained commercial insurance against losses for the following types of risk:

Real and Personal Property Damage Public Employees' Bond Workers' Compensation General and Automobile Liability



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Management Estimates and Assumptions The preparation of financial statements in conformity with general accepted accounting principles requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates. Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors’ Report, which is the date the financial statements were available to be issued.

NOTE 2 - DEPOSITS AND INVESTMENTS At September 30, 2015, the carrying amount of the Property Appraiser's cash and cash equivalents and restricted cash was $32,617 and the bank balance was $57,711. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis.

Florida Statutes authorize the Property Appraiser to invest in certificates of deposit, repurchase agreements and the State Treasurer’s Investment Pool. In addition, the statutes allow the Property Appraiser to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies.

CREDIT RISK At September 30, 2015, the Property Appraiser did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2015, the Property Appraiser did not hold any investments.



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NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED)

CUSTODIAL CREDIT RISK At September 30, 2015, the Property Appraiser did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2015, the Property Appraiser did not hold any investments.

NOTE 3 - LONG-TERM DEBT The following is a summary of the changes in long-term obligations of the Property Appraiser for the year ended September 30, 2015:

BEGINNING

BALANCE

ADDITIONS

REDUCTIONS

ENDING

BALANCE

DUE WITHIN

ONE YEAR



$ 15,308

$ 141

$ -

$ 15,449

$ -

Accrued compensated absences represent the vested portion of accrued vacation and sick leave. See Note 1 for a summary of the Property Appraiser’s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented.



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NOTE 4 - EMPLOYEE PENSION PLAN The Property Appraiser participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. Chapter 121, Florida Statutes, establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual. For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- of-living adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows:

10/01/14 Through 6/30/15

07/01/15 Through 09/30/15

Regular class 7.37% 7.26% DROP Elected county officials’ class

12.28% 43.24%

12.88% 42.27%

Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 1, 2014 through September 30, 2015, the total payroll for all covered employees was $265,349. The retirement contributions for all employees’ covered by the System for the years ended September 30, 2015, 2014 and 2013 were $25,946, $24,801, and $17,458 which were the required contributions. For the year ended September 30, 2015 retirement contributions represent 9.78% of covered payroll.



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NOTE 4 - EMPLOYEE PENSION PLAN (CONTINUED) GASB Statement No. 68 establishes standards of accounting and financial reporting, but not funding or budgetary standards, for defined benefit pensions and defined contribution pensions provided to the employees of state and local governmental employers through pension plans that are administered through trusts or equivalent arrangements. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans within the scope of the Statement. The requirements of Statement No. 68 apply to the financial statements of all state and local governmental employers whose employees (or volunteers that provide services to state and local governments) are provided with pensions through pension plans that are administered through trusts or equivalent arrangements, and to the financial statements of state and local governmental nonemployer contributing entities that have a legal obligation to make contributions directly to such pension plans. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures related to pensions. Note disclosure and RSI requirements about pensions also are addressed. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. The adoption of Statement No. 68 has no impact on the Calhoun County, Florida Property Appraiser’s governmental fund financial statements, which continue to report expenditures in the amount of the actuarially determined contributions, as required by State law. The calculation of pension contributions is unaffected by the change. However, the adoption has resulted in the restatement of the Calhoun County, Florida’s Fiscal Year 2014 government-wide financial statements to reflect the reporting of net pension liabilities and deferred inflows of resources and deferred outflows of resources for each of its qualified pension plans and the recognition of pension expense in accordance with the provisions of the Statement. There was no impact on the Calhoun County, Florida Property Appraiser’s financial statements as a result of the implementation of Statement No. 68.


Property Appraiser Notes to Special-Purpose Financial Statements

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NOTE 5 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION In addition to the retirement plan in Note 4, the County, in accordance with Section 112.0801, Florida Statutes, provides post-retirement health care benefits to all retired employees who participated in the group health plan while employed. Employees of the Property Appraiser are covered under the County’s plan. The County is required to measure and recognize the annual cost of the future benefits and calculate the annual employer funding requirements and, to the extent funding is not made by the County recognize another post-employment benefit (OPEB) liability on the balance sheet of the County. These amounts, if any, are recorded in the County’s government-wide financial statements. NOTE 6 - EXCESS REVENUE

Pursuant to Section 218.36(2), Florida Statutes, each County Officer shall pay into the County general fund all money in excess of the sum to which he or she is entitled under the provisions of Chapter 145. Excess revenues over expenditures of $13,310 are accrued and reported as a reversion to the Board of County Commissioners. NOTE 7 - FUND EQUITY Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Property Appraiser had no non-spendable net assets at September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Property Appraiser’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2015, the Property Appraiser reports fund balance as restricted and unassigned. Restricted fund balances have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. The general fund has restricted net assets in the amount of $15,000 which was approved by the Board to complete the purchase of a mapping program.

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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the special-purpose financial statements of the Calhoun County, Florida, Property Appraiser (the “Property Appraiser”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s basic financial statements and have issued our report thereon dated June 14, 2016.


In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for 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.

A deficiency in internal control exists when the design or operation of a control does not allow management or 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 a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial 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 a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control described below that we consider to be significant deficiency.

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To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida PRIOR YEAR FINDING AND RECOMMENDATION: Need for Segregation of Duties

COMMENT: There is a lack of segregation of duties between employees who have recordkeeping responsibility and employees in custody of Property Appraiser’s assets.

RECOMMENDATION: We realize that due to the size of the Property Appraiser’s administrative staff, it is difficult to achieve ideal separation of duties. However, the Property Appraiser should remain very active and involved in the day-to-day operations. Controls should be implemented to help compensate for these weakness and to provide check and balances.

STATUS: This condition continues to exist.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Calhoun County, Florida, Property Appraiser’s financial statements are free of 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 with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Property Appraiser’s Response to Findings The Property Appraiser’s response to the findings identified in our audit is described in the accompanying letter. The Property Appraiser’s response was not subjected to the auditing procedures applied in the audit and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser’s internal control or on 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 is not suitable for any other purpose.

June 14, 2016

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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH SECTION

218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES

To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida

We have examined Calhoun County, Florida Property Appraiser (the “Property Appraiser”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2015. Management is responsible for the Property Appraiser’s compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Property Appraiser’s compliance with those requirements and performing such other procedures as we considered necessary 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 Property Appraiser’s compliance with specified requirements.

In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.


June 14, 2016

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INDEPENDENT AUDITORS’ MANAGEMENT LETTER To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements We have audited the accompanying financial statements of the Calhoun County, Florida, Property Appraiser (the “Property Appraiser”), as of and for the year ended September 30, 2015, and have issued our report thereon dated June 14, 2016. Auditor’s Responsibility 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 Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Corrective actions have not been taken to address findings and recommendations made in the preceding annual financial audit report.

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To the Honorable Terrell Stone Property Appraiser of Calhoun County, Florida Blountstown, Florida Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the 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 Calhoun County, Florida, Property Appraiser was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Calhoun County, Florida, Property Appraiser.

Other Matters

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Calhoun County, Florida Property Appraiser and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

June 14, 2016


Management’s Response

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Calhoun County, Florida Sheriff

Special-Purpose Financial Statements September 30, 2015


Sheriff Table of Contents

September 30, 2015

REPORT




Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 4

Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund 5

Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Emergency 911 6

Special-Purpose Statement of Fiduciary Net Position 7



Combining Special-Purpose Balance Sheet – Nonmajor Governmental Funds 17

Combining Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 18



Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes, Local Government Investment Policies 22

Independent Accountant's Report on Compliance with Sections 365.172(10) and365.173(2)(d), Florida Statutes 23



REPORT

INDEPENDENT AUDITORS' REPORT To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida

Report on the Financial Statements

We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Sheriff (the “Sheriff”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements




An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the special-purpose 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 Sheriff’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the special-purpose financial statements.


To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida

As discussed in Note 1 to the financial statements, the Sheriff’s financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Sheriff. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Sheriff.

Opinion

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and fiduciary fund type of the Sheriff as of September 30, 2015, and the respective changes in financial position and the respective budgetary comparison for the General Fund and Emergency 911 Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Sheriff’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 23, 2016, on our consideration of the Sheriff's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance.

June 23, 2016


Sheriff Special-Purpose Balance Sheet

Governmental Funds


Inmate Other TotalGeneral Emergency Investigative Welfare Governmental Governmental

Fund 911 Resource Fund Funds FundsAssets

Cash and cash equivalents 30,816$ 21,508$ 102,817$ 50,251$ 651$ 206,043$ Accounts receivable 802 - - 4,940 - 5,742 Due from other funds 18,380 - 5,211 375 - 23,966 Due from Board of County Commissioners 1,226 - - - - 1,226 Due from other governmental units 7,249 28,171 4,145 - 5,202 44,767

Total assets 58,473$ 49,679$ 112,173$ 55,566$ 5,853$ 281,744$

LiabilitiesAccounts payable and accrued expenses 58,473$ 2,954$ -$ 918$ -$ 62,345$ Due to other funds - - 6,380 12,000 5,211 23,591

Total liabilities 58,473 2,954 6,380 12,918 5,211 85,936

Fund balancesRestricted - 46,725 105,793 42,648 642 195,808

Total fund balances - 46,725 105,793 42,648 642 195,808

Total liabilities and fund balances 58,473$ 49,679$ 112,173$ 55,566$ 5,853$ 281,744$

September 30, 2015


Sheriff Special-Purpose Statement of Revenues, Expenditures, and



Inmate Other Total General Emergency Investigative Welfare Governmental Governmental

Fund 911 Resource Fund Funds FundsRevenuesIntergovernmental 85,069$ 88,707$ -$ -$ -$ 173,776$ Charges for services 21,368 - 27,116 31,487 - 79,971 Fines and forfeitures - - - - Grants 57,214 47,164 - - 40,152 144,530 Investment earnings - 14 - - - 14 Contributions and donations - - - - 4,151 4,151 Other fees and miscellaneous 29,450 - 16,236 - - 45,686

Total revenues 193,101 135,885 43,352 31,487 44,303 448,128


Public health and safety:Law enforcement

Personal services 1,079,800 - - - 39,152 1,118,952 Operating expenses 337,839 - 20,568 - 1,000 359,407

Corrections and detentionPersonal services 291,947 - - 12,000 - 303,947 Operating expenses 100,960 - - 12,306 - 113,266

Other public health and safetyPersonal services - 188,140 - - - 188,140 Operating expenses - 79,784 - - 3,509 83,293

Capital OutlayLaw enforcement 72,732 - 2,000 - - 74,732 Other public health and safety - 11,031 1,496 - 12,527

Total expenditures 1,883,278 278,955 22,568 25,802 43,661 2,254,264

Excess (deficiency) of revenues over (under) expenditures (1,690,177) (143,070) 20,784 5,685 642 (1,806,136)

Other financing sources (uses)Appropriations from Board of County Commissioners 1,690,177 164,451 - - - 1,854,628

Net other financing sources (uses) 1,690,177 164,451 - - - 1,854,628

Net change in fund balances - 21,381 20,784 5,685 642 48,492

Fund balances - beginning - 25,344 85,009 36,963 - 147,316

Fund balances - ending -$ 46,725$ 105,793$ 42,648$ 642$ 195,808$








RevenuesIntergovernmental 85,069$ 85,069$ 85,069$ -$ Charges for services 14,000 22,945 21,368 (1,577) Other fees and miscellaneous - 29,450 29,450 - Grant revenue 45,192 62,192 57,214 (4,978)

Total revenues 144,261 199,656 193,101 (6,555)


Public health and safety:Law enforcement

Personal services 1,034,318 1,079,800 1,079,800 - Operating expenses 289,808 344,394 337,839 6,555

Corrections and detention Personal services 387,629 291,947 291,947 - Operating expenses 97,683 100,960 100,960 -

Capital OutlayLaw enforcement 25,000 72,732 72,732 -

Total expenditures 1,834,438 1,889,833 1,883,278 6,555

Excess (deficiency) of revenues over (under) expenditures (1,690,177) (1,690,177) (1,690,177) -

Other financing sources (uses)Appropriations from Board of County Commissioners 1,690,177 1,690,177 1,690,177 -

Total other financing sources (uses) 1,690,177 1,690,177 1,690,177 -

Net change in fund balance -$ -$ -$ -$




Changes in Fund Balance – Budget and Actual Emergency 911




RevenuesIntergovernmental 94,000$ 94,000$ 88,707$ (5,293)$ Investment earnings - - 14 14 Grant revenue 36,500 36,500 47,164 10,664

Total revenues 130,500 130,500 135,885 5,385


Public health and safety:Other public health and safety

Personal services 198,951 198,934 188,140 10,794 Operating expenses 84,135 84,152 79,784 4,368

Capital OutlayOther public health and safety 11,865 11,865 11,031 834



Other financing sources (uses)Appropriations from Board of County Commissioners 164,451 164,451 164,451 -

Total other financing sources (uses) 164,451 164,451 164,451 -

Net change in fund balance -$ -$ 21,381$ 21,381$



Sheriff Special-Purpose Statement Fiduciary Net Position

Agency Fund


Inmate Trust


Total assets 8,213$

LiabilitiesAccounts payable 3,913$ Due to other funds 375 Due to individuals 3,925


September 30, 2015


Sheriff Notes to Special-Purpose Financial Statements

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Calhoun County, Florida, Sheriff (the “Sheriff”) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these special-purpose financial statements.

Reporting Entity The Calhoun County, Florida, Sheriff (the “Sheriff”) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Sheriff’s special-purpose financial statements do not purport to reflect the financial position or the results of operations of Calhoun County, Florida taken as a whole. Entity status for financial reporting is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Sheriff’s office is operationally autonomous from the Board of County Commissioners (“the Board”), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Sheriff is reported as part of the primary government of Calhoun County, Florida. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Sheriff. The operations of the Sheriff are primarily funded by the Board. The receipts from the Board are recorded as other financing sources on the Sheriff’s financial statements and as other financing uses on the Board’s financial statements. Any excess of revenues and other financing sources received over expenditures are remitted to the Board at year-end. Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Sheriff, were prepared in conformity with GAAP. In preparing these financial statements the following are reported as major governmental funds:

General Fund - The General Fund is used to account for all revenue and expenditures applicable to the general operations of the Sheriff that are not required either legally or by generally accepted accounting principles to be accounted for in another fund.



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Emergency 911 - Accounts for the operation of the emergency 911 system of Calhoun County.

Investigative Resource Fund - Accounts for revenues and expenditures relating to various forfeitures, investigative fees and restitution. Inmate Welfare Fund - Accounts for the activities related to operation of the inmate commissary.

In addition, the Sheriff reported the following non-major governmental funds: Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. The Sheriff reports the following special revenue funds in the financial statements under the title “Other Governmental Funds.” Drug Enforcement Fund - Accounts for revenues and expenses of the Calhoun County Sheriff’s

office drug enforcement program.

Contribution Fund - Accounts for revenues and expenditures relating to public donations to assist the less fortunate.

The Sheriff also reported the following fund type:

Agency Funds - The agency funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature and do not involve measurement of changes in financial position.

Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. The governmental fund is accounted for on a spending or “financial flow” measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period.



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Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting refers to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the Sheriff’s policy to use restricted resources first, then unrestricted resources as needed.

Budgetary Requirements Florida Statutes, Chapter 30.49 and 129.03(2), details the preparation, adoption and administration of the Sheriff’s annual budget. The Sheriff establishes an annual balanced budget for his office which displays the revenues available to the office and the functions for which the money is to be expended. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are prepared on the modified accrual basis of accounting.

The Sheriff's annual budgets are monitored at varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot legally exceed the total annual budget appropriations at the individual fund level. All appropriations lapse at year end.

Cash and Cash Equivalents Cash and cash equivalents includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Capital Assets Tangible personal property is recorded as expenditures in the governmental fund types at the time an asset is acquired. Assets acquired by the Sheriff are capitalized at cost in the capital asset accounts of the County. The Sheriff’s assets are reported in the statement of net assets in the County’s financial statements. The Sheriff maintains custodial responsibility for the capital assets used by his office.



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Fund Balance Reporting and Governmental Fund-Type Definitions The Sheriff adopted GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions (GASB Statement No. 54) effective October 1, 2010. This GASB Statement clarifies governmental fund balance classifications and fund-type definitions. Fund balances are classified either as non-spendable or spendable. See Note 11. Accumulated Compensated Absences Permanent full-time employees of the Sheriff are entitled to accrue up to 920 hours of sick leave and up to 500 hours of vacation time depending on the length of employment. Upon separation of employment, employees can be paid their vacation time and up to 50% of unused sick time, with the payment of unused sick time being subject to various criteria.

The Sheriff’s accumulated compensated absences are reported in the statement of net position in the County’s financial statements.

Due to Others This account is used to account for assets held by the Sheriff in a trustee capacity for other governmental agencies or individuals.

Risk Management and Insurance The Sheriff participates in the Florida Sheriff Self-Insurance Fund, which is considered a public entity risk pool which purchases insurance policies on behalf of its members. The pool’s members are not obligated for risk associated with such coverage. Coverage under these programs includes: General Liability Public Employees Blanket Bond Automobiles Money and Securities Coverage

The Sheriff provides for workers’ compensation coverage through the Board. A separate insurance policy is carried for aircraft. In addition, the Sheriff participates in the Florida Self-Insurance Fund for risks related to professional liability and public officials' coverage. The funding agreement provides that the liability fund will be self-sustaining through member premiums and that it will reinsure through commercial companies. Aggregate coverage provided by the liability fund is $3,500,000 for professional liability and $3,500,000 for public officials' coverage. Management Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates.



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Subsequent Events Subsequent events have been evaluated through the date of the Independent Auditors’ Report, which is the date the financial statements were available to be issued.

NOTE 2 - DEPOSITS AND INVESTMENTS

At year-end, the carrying amount of the Sheriff’s cash and cash equivalents and restricted cash was $214,256 and the bank balance was $229,969. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis.

Florida Statutes authorize the Sheriff to invest in certificates of deposit, repurchase agreements and the State Treasurer’s Investment Pool. In addition, the statutes allow the Sheriff to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies.

CREDIT RISK At September 30, 2015, the Sheriff did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2015, the Sheriff did not hold any investments that were considered to have interest rate risk. CUSTODIAL CREDIT RISK At September 30, 2015, the Sheriff did not hold any deposits or investments that were considered to have custodial credit risk. CONCENTRATION OF CREDIT RISK At September 30, 2015, the Sheriff did not hold any investments that were considered to have concentration of credit risk.



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NOTE 3 - DUE FROM OTHER GOVERNMENTS

Due from other governments at September 30, 2015 consisted of the following:

Wireless Emergency Telephone System Trust Fund $ 28,171 Florida Department of Law Enforcement Drug Enforcement Agency

5,202 4,145

Northwest Florida Water Management District 576 State of Florida Office of the Attorney General – VOCA 6,673 Total $ 44,767

NOTE 4 - LONG-TERM LIABILITIES

The Sheriff’s long-term liabilities activity is reported in the statement of net position in the County’s financial statements. The following is a summary of the changes in long-term obligations of the Sheriff for the year ended September 30, 2015:

BEGINNING BALANCE

ADDITIONS

REDUCTIONS

ENDING BALANCE

DUE WITHIN

ONE YEAR

Governmental

activities:


$ 62,579

$ 17,355

$ -

$ 79,934

$ -

Total $ 62,579 $ 17,355 $ - $ 79,934 $ -

Accrued compensated absences represent the vested portion of accrued vacation, sick leave, and compensatory time. See Note 1 for a summary of the Sheriff’s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented.

NOTE 5 - EMPLOYEE PENSION PLAN

The Sheriff participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual.



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NOTE 5 - EMPLOYEE PENSION PLAN (CONTINUED)

For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- of-living adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows:

10/01/14 07/01/15 Through Through 06/30/15 9/30/15 Regular employees 7.37% 7.26% Senior management 21.14% 21.43% Elected county officials 43.24% 42.27% Special risk employees DROP participants

19.82% 12.28%

22.04% 12.88%

Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 1, 2014 through September 30, 2015, the total payroll for all covered employees was $1,211,851. The retirement contributions for all employees covered by the System for the years ended September 30, 2015, 2014, 2013 were $185,169, $172,574, and $129,603 which were the required contributions. For the year ended September 30, 2015, retirement contributions represented 15.28% of covered payroll.

GASB Statement No. 68 establishes standards of accounting and financial reporting, but not funding or budgetary standards, for defined benefit pensions and defined contribution pensions provided to the employees of state and local governmental employers through pension plans that are administered through trusts or equivalent arrangements. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans within the scope of the Statement.



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NOTE 5 - EMPLOYEE PENSION PLAN (CONTINUED) The requirements of Statement No. 68 apply to the financial statements of all state and local governmental employers whose employees (or volunteers that provide services to state and local governments) are provided with pensions through pension plans that are administered through trusts or equivalent arrangements, and to the financial statements of state and local governmental nonemployer contributing entities that have a legal obligation to make contributions directly to such pension plans. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures related to pensions. Note disclosure and RSI requirements about pensions also are addressed. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. The adoption of Statement No. 68 has no impact on the Calhoun County, Florida Sheriff’s governmental fund financial statements, which continue to report expenditures in the amount of the actuarially determined contributions, as required by State law. The calculation of pension contributions is unaffected by the change. However, the adoption has resulted in the restatement of the Calhoun County, Florida’s Fiscal Year 2014 government-wide financial statements to reflect the reporting of net pension liabilities and deferred inflows of resources and deferred outflows of resources for each of its qualified pension plans and the recognition of pension expense in accordance with the provisions of the Statement. There was no impact on the Calhoun County, Florida Sheriff’s financial statements as a result of the implementation of Statement No. 68. NOTE 6 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION

In addition to the retirement plan in Note 5, the County, in accordance with Section 112.0801, Florida Statutes, provides post-retirement health care benefits to all retired employees who participated in the group health plan while employed. Employees of the Sheriff are covered under the County’s plan. The County is required to measure and recognize the annual cost of the future benefits and calculate the annual employer funding requirements and, to the extent funding is not made by the County recognize another post-employment benefit (OPEB) liability on the balance sheet of the County. These amounts, if any, are recorded in the County’s government-wide financial statements. NOTE 7 - EXCESS REVENUE

Pursuant to Section 218.36(2), Florida Statutes, any excess revenues over expenditures determined as of the fiscal year end, “…is returned to each governmental unit in the same proportion as fees paid by the governmental unit bear to the total fee income of the Sheriff.” Excess revenues over expenditures returned to the Board of County Commissioners as required by Florida Statutes are accrued and reported as a reversion to Board of County Commissioners. The Sheriff’s general fund ended this year with no excess fees.



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NOTE 8 - GRANTS

The Sheriff participates in several state and federal grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the year ended September 30, 2015, have not yet been accepted/approved by the grantors. Accordingly, the final determination of the Sheriff’s compliance with applicable grant requirements will be established at a future date. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined, although the Sheriff expects such amounts, if any, to be immaterial.

NOTE 9 - COMMON EXPENDITURES

The Calhoun County Board of County Commissioners expended approximately $237,697 in housing for inmates incarcerated in other counties’ jail facilities and healthcare costs. Housing expenditures resulted from lack of adequate inmate housing facilities at the local jail. These costs are not included in the Sheriff’s accompanying statement of revenues, expenditures and changes in fund balance as they were Board expenditures.

NOTE 10 - LITIGATION AND CONTINGENT LIABILITIES

The Sheriff is involved in various litigations arising from the ordinary course of business. In the opinion of management, after consultation with legal counsel, these matters will be resolved without a material adverse effect on the Sheriff’s financial position.

NOTE 11 - FUND EQUITY

Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff had no non-spendable net assets at September 30, 2015.

Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ended September 30, 2015, the Sheriff reports fund balance as restricted. Restricted fund balance have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Assigned fund balance has constraints placed on the use of resources by the Sheriff’s intent to use the resources for specific purposes. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund.

NOTE 12 - BUDGET Budgets were not prepared for the following special revenue funds: Investigative Resource Fund and Inmate Welfare Fund


Sheriff Combining Special-Purpose Balance Sheet

Non-major Governmental Funds


Total Drug Nonmajor

Enforcement Contribution GovernmentalFund Fund Funds

AssetsCash and cash equivalents 9$ 642$ 651$ Due from other governmental units 5,202 - 5,202

Total assets 5,211$ 642$ 5,853$

LiabilitiesDue to other funds 5,211$ -$ 5,211$

Total liabilities 5,211 - 5,211

Fund balances - restricted - 642 642

Total liabilities and fund balances 5,211$ 642$ 5,853$

September 30, 2015


Sheriff Combining Special-Purpose Statement of Revenues, Expenditures, and

Changes in Fund Balances - Non-major Governmental Funds


Total Drug Nonmajor

Enforcement Contribution GovernmentalFund Fund Funds

RevenuesGrants 40,152$ -$ 40,152$ Contributions and donations - 4,151 4,151

Total revenues 40,152 4,151 44,303

Expenditures Current:

Public health and safety: Law enforcement

Personal services 39,152 - 39,152 Operating expenses 1,000 - 1,000

Other public heath and safetyOperating expenses - 3,509 3,509

Total expenditures 40,152 3,509 43,661

Excess of revenues (under) expenditures - 642 642

Net change in fund balances - 642 642

Fund balances - beginning - - -

Fund balances - ending -$ 642$ 642$



Sheriff Combining Special-Purpose Statement of Fiduciary Net Position

Agency Funds


Inmate Trust TotalAssets

Cash and cash equivalents 8,213$ 8,213$

Total assets 8,213$ 8,213$

LiabilitiesAccounts payable 3,913$ 3,913$ Due to other funds 375 375 Due to individuals 3,925 3,925

Total liabilities 8,213$ 8,213$

September 30, 2015

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INDEPENDENT AUDITORS' REPORT 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

To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the special-purpose financial statements of the Calhoun County, Florida, Sheriff (the “Sheriff”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements and have issued our report thereon dated June 23, 2016. Internal Control Over Financial Reporting

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

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described below, we identified a certain deficiency in internal control that we consider to be a material weakness.

A deficiency in internal control exists when the design or operation of a control does not allow management or 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 a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency 04-02 described below to be a material weakness.

A significant deficiency is a deficiency, 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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To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida PRIOR YEAR FINDINGS AND RECOMMENDATIONS: NEED FOR SEGREGATION OF DUTIES 04-02

COMMENT: Separation of certain accounting and administrative duties among employees, which is recommended as an effective internal control procedure, was not adequate.

RECOMMENDATION: We realize that due to the limited number of employees and certain incompatible duties being performed by the same employee, it is difficult to achieve ideal separation of duties. Nevertheless, internal control is strengthened when incompatible duties are separated and review procedures are established and adhered to. We also recommend the Sheriff receive and review the unopened bank statements each month. STATUS: This condition continues to exist. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Calhoun County, Florida, Sheriff’s financial statements are free of 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 with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Sheriff’s Response to Findings

The Sheriff’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Sheriff’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

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

June 23, 2016

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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES

To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida

We have examined Calhoun County, Florida Sheriff (the “Sheriff”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2015. Management is responsible for the Sheriff’s compliance with those requirements. Our responsibility 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 Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriff’s compliance with those requirements and performing such other procedures as we considered necessary 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 Sheriff’s compliance with specified requirements.

In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.


June 23, 2016

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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTIONS 365.172(10) AND 365.173(2)(d), FLORIDA STATUTES

To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida We have examined Calhoun County, Florida’s (the County) compliance with the requirements of Section 365.172(10), Florida Statutes, Authorized Expenditures of E911 Fee, and Section 365.173(2)(d), Florida Statutes, Distribution and Use of (E911) Funds, during the year ended September 30, 2015. Management is responsible for the County’s compliance with those requirements. Our responsibility is to express an opinion on the County’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary 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 County’s compliance with specified requirements.

In our opinion, the County complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.


June 23, 2016

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INDEPENDENT AUDITORS’ MANAGEMENT LETTER

To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements We have audited the accompanying financial statements of the Calhoun County, Florida, Sheriff (the “Sheriff”), as of and for the year ended September 30, 2015, and have issued our report thereon dated June 23, 2016. Auditor’s Responsibility

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 Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 23, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report except as noted under the heading Prior Year Findings and Recommendations. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Calhoun County, Florida, Sheriff was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Calhoun County, Florida Sheriff.

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To the Honorable Glenn H. Kimbrel Sheriff of Calhoun County, Florida Blountstown, Florida Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Calhoun County, Florida Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

June 23, 2016


Sheriff Management’s Response

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Calhoun County, Florida Supervisor of Elections


September 30, 2015


Supervisor of Elections Table of Contents

September 30, 2015

REPORT





Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 5







REPORT

INDEPENDENT AUDITORS' REPORT

To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Supervisor of Elections (the “Supervisor of Elections”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Supervisor of Elections’ basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements




An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the special-purpose 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 Supervisor of Elections’ internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the special-purpose financial statements.

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

To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida As discussed in Note 1 to the financial statements, the Supervisor of Elections’ financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Supervisor of Elections. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Supervisor of Elections.

Opinion

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the Supervisor of Elections as of September 30, 2015, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 14, 2016 on our consideration of the Supervisor of Elections’ internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisor of Elections’ internal control over financial reporting and compliance.

June 14, 2016


Supervisor of Elections Special-Purpose Balance Sheet

Governmental Funds


TotalGrant Governmental

General Fund Funds

AssetsCash and cash equivalents 14,250$ 9,798$ 24,048$

Total assets 14,250$ 9,798$ 24,048$

LiabilitiesDue to Board of County Commissioners 14,250$ -$ 14,250$ Deferred revenue - 6,973 6,973

Total liabilities 14,250 6,973 21,223

Fund balance - restricted - 2,825 2,825

Total liabilities and fund balance 14,250$ 9,798$ 24,048$

September 30, 2015


Supervisor of Elections Special-Purpose Statement of Revenues, Expenditures, and



Total General Grant Governmental

Fund Fund FundsRevenuesInvestment earnings -$ 4$ 4$ Other fees and miscellaneous - 312 312

Total revenues - 316 316


General government:Personal services 201,316 - 201,316 Operating expenses 60,429 - 60,429

Capital outlay 4,390 - 4,390

Total expenditures 266,135 - 266,135

Excess (deficiency) of revenues over (under) expenditures (266,135) 316 (265,819)

Other financing sources (uses)Appropriations from Board of County Commissioners 280,362 - 280,362 Reversion to Board of County Commissioners (14,227) - (14,227)

Net other financing sources (uses) 266,135 - 266,135

Net change in fund balance - 316 316

Fund balance, beginning - 2,509 2,509 Fund balance, ending -$ 2,825$ 2,825$



Supervisor of Elections Special-Purpose Statement of Revenues, Expenditures, and



Variance withFund Budget


Revenues Investment earnings -$ -$ -$ -$

Total revenues - - - -



Capital outlay 11,000 5,000 4,390 610



Other financing sources (uses)Appropriations from Board of County Commissioners 287,651 280,362 280,362 - Reversion to Board of County Commissioners - - (14,227) (14,227)







Supervisor of Elections Notes to Special-Purpose Financial Statements

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Calhoun County, Florida, Supervisor of Elections (the “Supervisor of Elections”) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these special-purpose financial statements.

Reporting Entity The Calhoun County, Florida, Supervisor of Elections (the “Supervisor of Elections”) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Supervisor of Elections’ special-purpose financial statements do not purport to reflect the financial position or the results of operations of Calhoun County, Florida taken as a whole.

Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Supervisor of Elections’ office is operationally autonomous from the Board of County Commissioners (“the Board”), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Supervisor of Elections is reported as part of the primary government of Calhoun County, Florida. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Supervisor of Elections. The operations of the Supervisor of Elections are funded by the Board. The receipts from the Board are recorded as other financing sources on the Supervisor of Elections' financial statements and as other financing uses on the Board's financial statements. Any excess of revenues and other financing sources received over expenditures are remitted to the Board at year-end.

Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Supervisor of Elections, were prepared in conformity with generally accepted accounting principles in the United States of America.



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In preparing these financial statements, the following is reported as a major governmental fund:

General Fund - The general fund is the general operating fund of the Supervisor of Elections. It is used to account for all financial resources, except those required to be accounted for in another fund.

In preparing these financial statements, the following is reported as a non-major governmental fund:

Grant Fund - Accounts for the grant funds received to educate the voters of Calhoun County.

Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. The general fund is accounted for on a spending or “financial flow” measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. General fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the general fund financial statements and refers to the timing of the measurement made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. When both restricted and unrestricted resources are available for use, it is the Supervisor of Elections’ policy to use restricted resources first, then unrestricted resources as needed.



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Budgetary Requirements General governmental revenue and expenditures accounted for in budgetary funds are controlled by a formal integrated budgetary accounting system in accordance with the Florida Statutes. An annual budget is prepared by the Supervisor of Elections and adopted by the Board for the general fund. The Supervisor of Elections' annual budget is monitored at varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot legally exceed the total annual budget appropriations at the individual fund level. All appropriations lapse at year-end. Budget to actual comparisons are provided in the financial statements for the general fund. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are prepared on the modified accrual basis of accounting. Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Capital Assets Tangible personal property is recorded as expenditures in the general fund at the time an asset is acquired. Assets acquired by the Supervisor of Elections are capitalized at cost in the capital asset accounts of the County. The Supervisor of Elections’ assets are reported in the statement of net position in the County’s financial statements. The Supervisor of Elections maintains custodial responsibility for the capital assets used by her office. Accumulated Compensated Absences Permanent full-time employees of the Supervisor of Elections are entitled to accrue unlimited hours of sick leave based upon pay periods worked. Upon termination, employees with five years or more of service can be paid up to 30 days of unused sick time. Permanent full-time employees of the Supervisor of Elections are entitled to accrue up to a maximum of 30 days of vacation leave. Upon termination, employees can be paid up to 30 days of unused vacation time. The Supervisor of Elections’ accumulated compensated absences are reported in the statement of net position in the County’s financial statements.



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Risk Management The Supervisor of Elections is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The Supervisor of Elections participates in the risk management program through the Calhoun County Board of County Commissioners which uses commercial insurance to cover certain risks from loss.

The Board obtained commercial insurance against losses for the following types of risk:


Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates.




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NOTE 2 - DEPOSITS AND INVESTMENTS At September 30, 2015, the carrying amount of the Supervisor of Elections’ cash and cash equivalents and restricted cash was $24,048 and the bank balance was $35,829. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis.

Florida Statutes authorize the Supervisor of Elections to invest in certificates of deposit, repurchase agreements and the State Treasurer’s Investment Pool. In addition, the statutes allow the Supervisor of Elections to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies.

CREDIT RISK At September 30, 2015, the Supervisor of Elections did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2015, the Supervisor of Elections did not hold any investments.

CUSTODIAL CREDIT RISK At September 30, 2015, the Supervisor of Elections did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2015, the Supervisor of Elections did not hold any investments.



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NOTE 3 - LONG-TERM DEBT

The Supervisor of Elections’ long-term liabilities are reported in the statement of net assets in the County’s financial statements. The following is a summary of the changes in long-term obligations of the Supervisor of Elections for the year ended September 30, 2015:

BEGINNING BALANCE

ADDITIONS

REDUCTIONS

ENDING BALANCE

DUE WITHIN

ONE YEAR



$ 5,379

$ -

$ 1,604

$ 3,775

$ -

Accrued compensated absences represent the vested portion of accrued vacation and sick leave. See Note 1 for a summary of the Supervisor of Elections’ policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented. NOTE 4 - EMPLOYEE PENSION PLAN The Supervisor of Election participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual.

For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- of-living adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions.



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NOTE 4 - EMPLOYEE PENSION PLAN (CONTINUED) The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that both the employer and employee pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows:

10/01/14 07/01/15Through Through06/30/15 09/30/15

Regular employees 7.37% 7.26%Senior management 21.14% 21.43%Elected county officials 43.24% 42.27% Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. For the period October 01, 2014 through September 30, 2015, the total payroll for all employees covered by the System was $140,272. The retirement contributions for all employees’ covered by the FRS for the years ended September 30, 2015, 2014 and 2013 were $30,863, $32,388 and $15,430 which were the required contributions. For the year ended September 30, 2015 retirement contributions represent 22.00% of covered payroll. GASB Statement No. 68 establishes standards of accounting and financial reporting, but not funding or budgetary standards, for defined benefit pensions and defined contribution pensions provided to the employees of state and local governmental employers through pension plans that are administered through trusts or equivalent arrangements. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans within the scope of the Statement. The requirements of Statement No. 68 apply to the financial statements of all state and local governmental employers whose employees (or volunteers that provide services to state and local governments) are provided with pensions through pension plans that are administered through trusts or equivalent arrangements, and to the financial statements of state and local governmental nonemployer contributing entities that have a legal obligation to make contributions directly to such pension plans. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures related to pensions. Note disclosure and RSI requirements about pensions also are addressed. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service.



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NOTE 4 - EMPLOYEE PENSION PLAN (CONTINUED) The adoption of Statement No. 68 has no impact on the Calhoun County, Florida Supervisor of Elections’ governmental fund financial statements, which continue to report expenditures in the amount of the actuarially determined contributions, as required by State law. The calculation of pension contributions is unaffected by the change. However, the adoption has resulted in the restatement of the Calhoun County, Florida’s Fiscal Year 2014 government-wide financial statements to reflect the reporting of net pension liabilities and deferred inflows of resources and deferred outflows of resources for each of its qualified pension plans and the recognition of pension expense in accordance with the provisions of the Statement. There was no impact on the Calhoun County, Florida Supervisor of Elections’ financial statements as a result of the implementation of Statement No. 68. NOTE 5 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION In addition to the retirement plan in Note 4, the County, in accordance with Section 112.0801, Florida Statutes, provides post-retirement health care benefits to all retired employees who participated in the group health plan while employed. Employees of the Supervisor of Election are covered under the County’s plan. The County is required to measure and recognize the annual cost of the future benefits and calculate the annual employer funding requirements and, to the extent funding is not made by the County recognize another post-employment benefit (OPEB) liability on the balance sheet of the County. These amounts, if any, are recorded in the County’s government-wide financial statements. NOTE 6 - EXCESS REVENUE Pursuant to Section 218.36(2), Florida Statutes, each County Officer shall pay into the County general fund all money in excess of the sum to which he or she is entitled under the provisions of Chapter 145. Excess revenues over expenditures of $14,227 are accrued and reported as a reversion to Board of County Commissioners. NOTE 7 - FUND EQUITY Non spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor of Elections had no non-spendable net assets at September 30, 2015.



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NOTE 7 - FUND EQUITY (CONTINUED) Spendable fund balances are classified based on a hierarchy of the Supervisor of Election’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. For the year ending September 30, 2015, the Supervisor of Election reports fund balances as restricted. Restricted fund balances have externally imposed constraints placed on the use of resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Assigned fund balances have constraints placed on the use of resources by the Supervisor of Election’s intent to use the resources for a specific purpose. Unassigned fund balances have not been restricted, committed or assigned to specific purposes within the general fund. The grant fund has restricted fund balance in the amount of $2,825 which is restricted for a voter education grant.

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INDEPENDENT AUDITORS' REPORT 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

To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the special-purpose financial statements of the Calhoun County, Florida, Supervisor of Elections (the “Supervisor of Elections”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Supervisor of Elections’ basic financial statements and have issued our report thereon dated June 14, 2016.


In planning and performing our audit of the financial statements, we considered the Supervisor of Elections’ internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor of Elections’ internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor of Election’s internal control.


Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control described below that we consider to be significant deficiency.

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To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida PRIOR YEAR FINDING AND RECOMMENDATION:

Need for Segregation of Duties COMMENT: There is a lack of segregation of duties between employees who have recordkeeping responsibility and employees in custody of Supervisor of Elections’ assets. RECOMMENDATION: We realize that due to the size of the Supervisor of Elections’ staff it is difficult to achieve ideal separation of duties. However, the Supervisor of Elections should remain very active and involved in the day-to-day operations. Controls should be implemented to help compensate for these weakness and to provide check and balances. STATUS: This condition continues to exist. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Calhoun County, Florida, Supervisor of Elections’ financial statements are free of 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 with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Supervisor of Elections’ Response to Findings The Supervisor of Elections’ response to the findings identified in our audit is described in the accompanying letter. The Supervisor of Elections’ response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Supervisor of Elections’ internal control or on 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 is not suitable for any other purpose.

June 14, 2016

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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES

To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida

We have examined Calhoun County, Florida, Supervisor of Elections’ (the “Supervisor of Elections”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2015. Management is responsible for the Supervisor of Elections’ compliance with those requirements. Our responsibility is to express an opinion on the Supervisor of Elections’ compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Supervisor of Elections’ compliance with those requirements and performing such other procedures as we considered necessary 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 Supervisor of Elections’ compliance with specified requirements.

In our opinion, the Supervisor of Elections complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.


June 14, 2016

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INDEPENDENT AUDITORS’ MANAGEMENT LETTER To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Supervisor of Elections (the “Supervisor of Elections”) as of and for the fiscal year ended September 30, 2015, and have issued our report thereon dated June 14, 2016. Auditor’s Responsibility 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 Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have not been taken to address findings and recommendations made in the preceding annual financial audit report.

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To the Honorable Margie Laramore Supervisor of Elections of Calhoun County, Florida Blountstown, Florida Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the 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 Calhoun County, Florida Supervisor of Elections was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Calhoun County, Florida Supervisor of Elections. Other Matters

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Calhoun County, Florida Supervisor of Elections and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

June 14, 2016


Supervisor of Elections Management’s Response

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Calhoun County, Florida Tax Collector


September 30, 2015


Tax Collector Table of Contents

September 30, 2015

REPORT





Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 5

Special-Purpose Statement of Fiduciary Net Position - Agency Funds 6





Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes, Local Government Investment Policies 18



REPORT

INDEPENDENT AUDITORS’ REPORT To the Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements

We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Tax Collector (the “Tax Collector”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements




An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the special-purpose 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 Tax Collector’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the special-purpose financial statements.


To the Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida

As discussed in Note 1 to the financial statements, the Tax Collector’s financial statements are special-purpose financial statements presenting only the financial position and results of operations of the Tax Collector. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida, taken as a whole. As permitted by Chapter 10.556(4), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in Governmental Accounting Standards Board Statement 34, and do not include presentations of government-wide financial statements of the Tax Collector.

Opinion

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and fiduciary fund type of the Tax Collector as of September 30, 2015, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Tax Collector’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2016 on our consideration of the Tax Collector’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance.

June 14, 2016


Tax Collector Special-Purpose Balance Sheet

Governmental Funds


GeneralFund



LiabilitiesAccounts payable 10,836$ Due to Board of County Commissioners 50,954

Total liabilities 61,790

Fund balance -

Total liabilities and fund balance 61,790$

September 30, 2015


Tax Collector Special-Purpose Statement of Revenues, Expenditures and

Changes in Fund Balance Governmental Funds



General Fund

RevenuesInvestment earnings -$

Total revenues -


General government:Personal services 323,907 Operating expenses 72,171

Total expenditures 396,078

Excess (deficiency) of revenues over (under) expenditures (396,078)

Other financing sources (uses)Appropriations from Board of County Commissioners 447,032 Reversion to Board of County Commissioners (50,954)

Net other financing sources (uses) 396,078

Net change in fund balance -

Fund balance - beginning -

Fund balance - ending -$


Tax Collector Special-Purpose Statement of Revenues, Expenditures and






RevenuesInvestment earnings -$ -$ -$ -$

Total revenues - - - -



Total expenditures 449,397 449,397 396,078 53,319 Excess (deficiency) of revenues over (under) expenditures (449,397) (449,397) (396,078) 53,319

Other financing sources (uses)Appropriations from Board of County Commissioners 449,397 449,397 447,032 (2,365) Reversion to Board of County Commissioners - - (50,954) (50,954)






Tax Collector Special-Purpose Statement of Fiduciary Net Position

Agency Funds


AgencyFunds

AssetsCash and cash equivalents 236,894$ Due from other funds 3 Accounts receivable 447


LiabilitiesDue to other funds 3$ Due to Board of County Commissioners 7,556 Due to other governmental units 229,785


September 30, 2015


Tax Collector Notes to Special-Purpose Financial Statements

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Calhoun County, Florida, Tax Collector (the “Tax Collector”) conform to generally accepted accounting principles (GAAP), as applicable to governments. The following is a summary of significant accounting principles and policies used in the preparation of these special-purpose financial statements.

Reporting Entity The Calhoun County, Florida Tax Collector (the “Tax Collector”) is a separately elected County official established pursuant to the Constitution of the State of Florida. The Tax Collector’s special-purpose financial statements do not purport to reflect the financial position or the results of operations of Calhoun County, Florida taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 of the Governmental Accounting Standards Board (GASB). Although the Tax Collector’s office is operationally autonomous from the Board of County Commissioners (the “Board”), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Tax Collector is reported as part of the primary government of Calhoun County, Florida. These special-purpose financial statements are not intended to be a complete presentation of the financial position and results of operations of Calhoun County, Florida taken as a whole. As permitted by Chapter 10.556(5), Rules of the Auditor General State of Florida, the special-purpose financial statements consist of only the fund level financial statements as defined in GASB No. 34, and do not include presentations of government-wide financial statements of the Tax Collector.

The operations of the Tax Collector are funded by the Board. The receipts from the Board are recorded as other financing sources on the Tax Collector’s financial statements and as other financing uses on the Board’s financial statements. Any excess of revenue and other financial sources received over expenditures are remitted to the Board at year-end. Basis of Presentation These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by Governmental Accounting Standards Board (GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial statements for the County as a whole, which includes the funds of the Tax Collector, were prepared in conformity with generally accepted accounting principles in the United States of America.

In preparing these financial statements the following is reported as a major governmental fund:

General Fund - The general fund is the general operating fund of the Tax Collector. It is used to account for all financial resources, except those required to be accounted for in another fund.



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The Tax Collector also reported the following fund type:

Agency Funds - The agency funds are used to account for assets held by the Tax Collector as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature and do not involve measurement of changes in financial position. The Tax Collector reports the Tag and Tax as Agency funds.

Measurement Focus The accounting and financial reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that generally, only current assets and current liabilities are included in the balance sheet. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting refers to the timing of the measurements made, regardless of the measurement focus applied. All governmental fund financial statements are reported using a current financial resources measurement focus on a modified accrual basis of accounting. The major modifications to the accrual basis are: (a) revenues are recorded in the accounting period in which they become available and measurable (available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, considered to be sixty days for all revenue) (b) expenditures are recorded in the accounting period in which the liability is incurred, except for accumulated sick and vacation pay, which are not recorded until paid. Charges for services and investment revenue are recorded as earned. The fiduciary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting. When both restricted and unrestricted resources are available for use, it is the Tax Collector’s policy to use restricted resources first, then unrestricted resources as needed. Budgetary Requirements Florida Statutes, Chapter 218.35 and 195.087, detail the preparation, adoption and administration of the Tax Collectors' annual budget. The Tax Collector establishes an annual balanced budget for her office which displays the revenues available to the office and the functions for which the money is to be expended. The budgeted revenues and expenditures in the accompanying financial statements reflect all amendments approved by the Department of Revenue and the Board of County Commissioners. The budget is prepared on a basis consistent with generally accepted accounting principles.



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Cash and Cash Equivalents Cash includes amounts in demand deposits as well as short term investments with a maturity date within three months of the date acquired by the government. Capital Assets Tangible personal property is recorded as expenditures in the general fund at the time an asset is acquired. Assets acquired by the Tax Collector are capitalized at cost in capital asset accounts of the County. The Tax Collector’s assets are reported in the statement of net position in the County’s financial statements. The Tax Collector maintains custodial responsibility for the capital assets used by her office.

Accumulated Compensated Absences Permanent full-time employees of the Tax Collector accrue sick leave hours based on pay periods worked with no limit on total hours accrued. Vacation time is earned depending on the length of employment and up to 120 hours may be carried forward to future years. Upon separation from employment, employees can be paid for unused sick leave and annual leave in accordance with personnel policy. The Tax Collector’s accumulated compensated absences are reported in the statement of net position in the County’s financial statements.

Risk Management The Tax Collector is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; injuries to employees and/or the public; or damage to property of others. The Tax Collector participates in the risk management program through the Calhoun County Board of County Commissioners, which uses commercial insurance to cover certain risks from loss. The Board obtained commercial insurance against losses for the following types of risk:


Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenditures during the reporting period. Actual results could differ from estimates.



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Property Tax Collections Chapter 197, Florida Statutes, governs property tax collections.

Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts of 4%, 3%, 2% and 1% are allowed for early payment in November through February, respectively.

Unpaid Taxes - Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and then sells tax certificates on all real property for unpaid taxes. Certificates not purchased are issued to the County. Any person owning real property upon which a tax certificate has been sold may reacquire the real property by paying the Tax Collector the face amount of the tax certificate plus interest and other costs.

Tax Deeds The owner of a tax certificate may, after two years when the taxes have been delinquent (after April 1), file an application for tax deed sale. The County, as a certificate owner, may exercise similar procedures two years after taxes have been delinquent (after April 1). Tax deeds are issued to the highest bidder for the property, which is sold at public auction. The Clerk of the Court administers these sales.


Due to Others This account is used to account for assets held by the Tax Collector in a trustee capacity for other governmental agencies or individuals.

NOTE 2 - DEPOSITS AND INVESTMENTS At September 30, 2015, the carrying amount of the Tax Collector's cash and cash equivalents was $298,684 and the bank balance was $353,798. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Public Deposit Act. Provisions of the Act require that public deposits may only be made at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of securities pledged by the defaulting depository are assessed against the other qualified public depositories of the same type as the depository in default. When other qualified public depositories are assessed additional amounts, they are assessed on a pro-rata basis.



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NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) Florida Statutes authorize the Tax Collector to invest in certificates of deposit, repurchase agreements and the State Treasurer’s Investment Pool. In addition, the statutes allow the Tax Collector to invest in bonds, notes or other obligations of the United States Government, certain bonds of any state or local government unit, and bonds issued by certain government agencies.

CREDIT RISK At September 30, 2015, the Tax Collector did not hold any deposits or investments that were considered to have credit risk. INTEREST RATE RISK At September 30, 2015, the Tax Collector did not hold any investments. CUSTODIAL CREDIT RISK At September 30, 2015, the Tax Collector did not hold any deposits or investments that were considered to have custodial risk. CONCENTRATION OF CREDIT RISK At September 30, 2015, the Tax Collector did not hold any investments.

NOTE 3 - LONG-TERM LIABILITIES The Tax Collector’s long-term liabilities are reported in the statement of net assets in the County’s financial statements. Long-term liability activity for the year ended September 30, 2015, was as follows:

BEGINNING

BALANCE

ADDITIONS

REDUCTIONS

ENDING BALANCE

DUE

WITHIN ONE YEAR



$ 13,242

$ 5,221

$ -

$ 18,463

$ -

Total $ 13,242 $ 5,221 $ - $ 18,463 $ -

Accrued compensated absences represent the vested portion of accrued vacation, sick leave, and compensatory time. See Note 1 for a summary of the Tax Collector’s policy regarding compensated absences. Records kept for compensated absences relate only to hours earned, used and available. Accordingly, only the net changes in compensated absences are presented.



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NOTE 4 - EMPLOYEE PENSION PLAN The Tax Collector participates in the Florida Retirement System (FRS), a cost-sharing, multiple employer defined benefit public retirement system administered by the State of Florida Department of Administration, Division of Retirement, to provide retirement and survivor benefits to participating public employees. FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the State of Florida Division of Retirement, Tallahassee, Florida, 32399-1560, or by accessing their internet site at www.frs.state.fl.us/frs/public/annual.

For those employees hired prior to July 1, 2011, FRS provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after six years of service and attaining age 62, or 30 years of service regardless of age. Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. For those employees hired on or after July 1, 2011, the System provides for vesting of benefits after eight years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight years of service with a 5% reduction of benefits for each year prior to normal retirement. FRS also provides death and disability benefits and cost- of-living adjustments. Generally, membership is compulsory for all full-time and part-time employees. Prior to July 1, 2011, retirement coverage was employee noncontributory. Effective July 1, 2011 the Florida Legislature mandated all employees contribute 3% to their retirement coverage with immediate vesting of their contributions. The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers and employees pay contributions at rates determined each year by the legislature. The employer rates, as a percentage of gross earnings, are as follows:

10/01/14 07/01/15 Through Through 06/30/15 09/30/15 Regular employees 7.37% 7.26% Senior management 21.14% 21.43% Elected county officials’ class 43.24% 42.27%

Chapter 121, Florida Statutes establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. Total payroll for the Tax Collector employees covered by the Florida Retirement System was $232,964 for the year ended September 30, 2015. The Tax Collector’s contribution to the plan for the year ended September 30, 2015, 2014, and 2013 totaled $51,599, $44,143 and $22,904. These contributions represented 22.15% of covered payroll for the year ended September 30, 2015.



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NOTE 4 - EMPLOYEE PENSION PLAN (CONTINUED) GASB Statement No. 68 establishes standards of accounting and financial reporting, but not funding or budgetary standards, for defined benefit pensions and defined contribution pensions provided to the employees of state and local governmental employers through pension plans that are administered through trusts or equivalent arrangements. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans within the scope of the Statement. The requirements of Statement No. 68 apply to the financial statements of all state and local governmental employers whose employees (or volunteers that provide services to state and local governments) are provided with pensions through pension plans that are administered through trusts or equivalent arrangements, and to the financial statements of state and local governmental nonemployer contributing entities that have a legal obligation to make contributions directly to such pension plans. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures related to pensions. Note disclosure and RSI requirements about pensions also are addressed. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. The adoption of Statement No. 68 has no impact on the Calhoun County, Florida Tax Collector’s governmental fund financial statements, which continue to report expenditures in the amount of the actuarially determined contributions, as required by State law. The calculation of pension contributions is unaffected by the change. However, the adoption has resulted in the restatement of the Calhoun County, Florida’s Fiscal Year 2014 government-wide financial statements to reflect the reporting of net pension liabilities and deferred inflows of resources and deferred outflows of resources for each of its qualified pension plans and the recognition of pension expense in accordance with the provisions of the Statement. There was no impact on the Calhoun County, Florida Tax Collector’s financial statements as a result of the implementation of Statement No. 68.



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NOTE 5 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION In addition to the retirement plan in Note 4, the County, in accordance with Section 112.0801, Florida Statutes, provides post-retirement health care benefits to all retired employees who participated in the group health plan while employed. Employees of the Tax Collector are covered under the County’s plan. The County is required to measure and recognize the annual cost of the future benefits and calculate the annual employer funding requirements and, to the extent funding is not made by the County recognize another post-employment benefit (OPEB) liability on the balance sheet of the County. These amounts, if any, are recorded in the County’s government-wide financial statements. NOTE 6 - EXCESS REVENUE Pursuant to Section 218.36(2), Florida Statutes, any excess revenues over expenditures determined as of the fiscal year end, “…is returned to each governmental unit in the same proportion as the fees paid by the governmental unit bear to the total fee income of the Tax Collector.” For the year ending September 30, 2015, excess revenues over expenditures of $50,954 are accrued and reported as a reversion to Board of County Commissioners.


Tax Collector Combining Special-Purpose Statement of Fiduciary Net Position

Agency Funds


Tag Tax Total

AssetsCash and cash equivalents 33,659$ 203,235$ 236,894$ Due from other funds 3 - 3 Accounts receivable 447 - 447

Total assets 34,109$ 203,235$ 237,344$

LiabilitiesDue to other funds -$ 3$ 3$ Due to Board of County Commissioners 7,418 138 7,556 Due to other governmental units 26,691 203,094 229,785

Total liabilities 34,109$ 203,235$ 237,344$

September 30, 2015

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INDEPENDENT AUDITORS’ REPORT 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 To the Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the special-purpose financial statements of the Calhoun County, Florida, Tax Collector (the “Tax Collector”) as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector’s basic financial statements and have issued our report thereon dated June 14, 2016.


In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control.


Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control described below that we consider to be a significant deficiency.

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To the Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida PRIOR YEAR FINDING AND RECOMMENDATION:

Need for Segregation of Duties COMMENT TC06-01: There is a lack of segregation of duties between employees who have recordkeeping responsibility and employees in custody of Tax Collector’s assets.

RECOMMENDATION: We realize that due to the size of the Tax Collector’s staff, it is difficult to achieve ideal separation of duties. However, the Tax Collector should remain very active and involved in the day-to-day operations. Controls should be implemented to help compensate for these weakness and to provide check and balances. STATUS: This condition continues to exist.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Calhoun County, Florida, Tax Collector’s financial statements are free of 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 with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Tax Collector’s Response to Findings The Tax Collector’s response to the findings identified in our audit is described in the accompanying letter. The Tax Collector’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tax Collector’s internal control or on 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 is not suitable for any other purpose.

June 14, 2016

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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES

The Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida

We have examined Calhoun County, Florida, Tax Collector’s (the “Tax Collector”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2015. 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 Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Tax Collector’s compliance with those requirements and performing such other procedures as we considered necessary 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 specified requirements.

In our opinion, the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015.


June 14, 2016

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INDEPENDENT AUDITORS’ MANAGEMENT LETTER The Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida Report on the Financial Statements We have audited the accompanying special-purpose financial statements of the Calhoun County, Florida, Tax Collector (the “Tax Collector”), as of and for the year ended September 30, 2015, and have issued our report thereon dated June 14, 2016. Auditor’s Responsibility

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 Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. Finding TC06-01 found in the Independent Auditor’s Report 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 has not been corrected.

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The Honorable Becky Trickey-Smith Tax Collector of Calhoun County, Florida Blountstown, Florida Official Title and Legal Authority Section 10.554(1)(i)4, Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Calhoun County, Florida, Tax Collector was established by the Constitution of the State of Florida, Article VIII, Section 1(d). There were no component units related to the Calhoun County, Florida, Tax Collector. Other Matters Section 10.554(1)(i)2, Rules of the Auditor General, requires that we address in the management letter any findings and recommendations that improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Calhoun County Tax Collector and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

June 14, 2016


Tax Collector Management’s Response

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Financial Statements - Florida Auditor General rpts/2015...Calhoun County, Florida Table of Contents...

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