PLANTATIONACRES
IMPROVEMENTDISTRICT
BASICFINANCIALSTATEMENTS
September30,2014
PLANTATIONACRESIMPROVEMENTDISTRICT
BASICFINANCIALSTATEMENTS
September30,2014
TABLEOFCONTENTS
PAGES
BASICFINANCIALSTATEMENTS
IndependentAuditor’sReport
Management'sDiscussionandAnalysis(NotCoveredby
IndependentAuditor'sReport)
BasicFinancialStatements:
GovernmentͲwideFinancialStatements:
StatementofNetPosition
StatementofActivities
FundFinancialStatements:
BalanceSheetͲGovernmentalFund
ReconciliationoftheBalanceSheetofGovernmentalFundto
theStatementofNetPosition
StatementofRevenues,ExpendituresandChangein
FundBalanceͲGovernmentalFund
ReconciliationoftheStatementofRevenues,Expendituresand
ChangeinFundBalanceofGovernmentalFundtothe
StatementofActivities
StatementofRevenues,ExpendituresandChangein
FundBalanceͲBudgetandActualͲGeneralFund
StatementofFiduciaryNetPositionͲAgencyTrustFund
NotestoBasicFinancialStatements
OTHERREPORTSOFINDEPENDENTAUDITORS
IndependentAuditor’sReportonInternalControloverFinancial
ReportingandonComplianceandOtherMattersBasedonan
AuditofFinancialStatementsPerformedinAccordancewith
GovernmentAuditingStandards
IndependentAuditor’sReporttoDistrictManagement
1Ͳ2
3Ͳ6
7
8
9
10
11
12
13
14
15Ͳ22
23Ͳ24
25Ͳ26
INDEPENDENTAUDITOR’SREPORT
TotheBoardofCommissioners
PlantationAcresImprovementDistrict
Plantation,Florida
Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivitiesandmajor
fundofPlantationAcresImprovementDistrict(the“District”)asofandfortheyearendedSeptember
30,2014,andtherelatednotestothefinancialstatements,whichcollectivelycomprisetheDistrict’s
basicfinancialstatementsaslistedinthetableofcontents.
Management’sResponsibilityfortheFinancialStatements
Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatements
in accordance with accounting principles generally accepted in the United States of America; this
includesthedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparation
andfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherdueto
fraudorerror.
Auditor’sResponsibilityfortheFinancialStatements
Our responsibility is to express opinions on these financial statements based on our audit. We
conductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesof
AmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards,
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 financial statements are free
frommaterialmisstatement.
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
duetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevant
to the entity’s preparation and fair presentation of the financial statements in order to design audit
proceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinion
ontheeffectivenessoftheentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anaudit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentation
ofthefinancialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basisforourauditopinions.
KMCcpa.com | 6550 N Federal Hwy, 4th Floor Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353
1
PlantationAcresImprovementDistrict,Florida
Opinions
In our opinion, the financial statements referred to on the previous page present fairly, in all
material respects, the respective financial position of the governmental activities, the major fund of
theDistrict,asofSeptember30,2014,andtherespectivechangesinfinancialposition,andbudgetary
comparison for the General Fund for the year then ended in accordance with accounting principles
generallyacceptedintheUnitedStatesofAmerica.
OtherMatters
RequiredSupplementaryInformation
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis be presented to supplement the basic financial 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 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
informationinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,
which consisted of inquiries of management about the methods of preparing the information 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.Wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethe
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
OtherReportingRequiredbyGovernmentAuditingStandards
InaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedMarch
11,2015,onourconsiderationoftheDistrict’sinternalcontroloverfinancialreportingandonourtests
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
overfinancialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopinion
oninternalcontroloverfinancialreportingoroncompliance.Thatreportisanintegralpartofanaudit
performed in accordance with Government Auditing Standards in considering the District’s internal
controloverfinancialreportingandcompliance.
KEEFEMcCULLOUGH
FortLauderdale,Florida
March11,2015
2
MANAGEMENT’SDISCUSSION
ANDANALYSIS
(NOTCOVEREDBYINDEPENDENTAUDITOR’SREPORT)
PLANTATIONACRESIMPROVEMENTDISTRICT
MANAGEMENT'SDISCUSSIONANDANALYSIS
September30,2014and2013
Our discussion and analysis of Plantation Acres Improvement District’s (the “District”)
financialperformanceprovidesanoverviewoftheDistrict’sfinancialactivitiesfortheyearsended
September 30, 2014 and 2013. Please read it in conjunction with the District’s financial
statements,whichimmediatelyfollowthisdiscussion.
FINANCIALHIGHLIGHTS
ThefollowingarethehighlightsoffinancialactivityfortheyearendedSeptember30,2014:
•
•
The District’s total assets exceeded its liabilities at September 30, 2014 by
$802,852(netposition).
The District’s total revenues were $790,492, $702,735 from nonͲad valorem
assessments, $ 1,949 from interest income and $85,808 from other revenues.
TheDistrict’sexpensesfortheyearwere$969,184.
OVERVIEWOFTHEFINANCIALSTATEMENTS
This discussion and analysis is intended to serve as an introduction to the District’s basic
financial statements. The basic financial statements are comprised of three components:
1)governmentͲwide financial statements, 2) fund financial statements, and 3) notes to basic
financialstatements.
GovernmentͲWideFinancialStatements
ThegovernmentͲwidefinancialstatements,whichconsistofthefollowingtwostatements,
are designed to provide readers with a broad overview of the District’s finances, in a manner
similartoaprivatesectorbusiness.
The statement of net position presents information on all of the District’s assets and
liabilities,withthedifferencebetweenthetworeportedasnetposition.Overtime,increasesor
decreases in net assets may serve as a useful indicator of whether the financial position of the
Districtisimprovingordeteriorating.
The statement of activities presents information showing how the District’s net position
changedduringtheyear.Allchangesinnetpositionarereportedassoonastheunderlyingevent
givingrisetothechangeoccurs,regardlessofthetimingofrelatedcashflows.Thus,revenuesand
expensesarereportedinthisstatementforsomeitemsthatwillonlyresultincashflowsinfuture
fiscalperiods.
ThegovernmentͲwidefinancialstatementscanbefoundonPages7and8ofthisreport.
FundFinancialStatements
Afundisagroupingofrelatedaccountsthatisusedtomaintaincontroloverresourcesthat
havebeensegregatedforspecificactivitiesorobjectives.TheDistricthasthefollowingfundtypes:
thegovernmentalfundandanagencyfund.
3
PLANTATIONACRESIMPROVEMENTDISTRICT
MANAGEMENT'SDISCUSSIONANDANALYSIS
September30,2014and2013
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the governmentͲwide financial statements. However, unlike the
governmentͲwidefinancialstatements,governmentalfundfinancialstatementsfocusonnearͲterm
inflowsandoutflowsofspendableresources,aswellasbalancesofspendableresourcesavailable
at the end of the year. Such information may be useful in evaluating a government’s nearͲterm
financingrequirements.
Because the focus of governmental funds is narrower than that of the governmentͲwide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the governmentͲwide financial
statements. By doing so, readers may better understand the longͲterm impact of the District’s
nearͲterm financing decisions. Both the governmental fund balance sheet and the statement of
revenues, expenditures, and change in fund balance provide reconciliations to facilitate this
comparisonbetweengovernmentalfundsandgovernmentalactivities.
The governmental fund financial statements can be found on pages 9 through 13 of this
report.
AgencyfundsareusedtoaccountforassetsheldbytheDistrictasanagentforotherfunds
orentities.AgencyfundsarenotreflectedinthegovernmentͲwidefinancialstatementsbecause
theresourcesofthisfundarenotavailabletodirectlysupporttheDistrict’sprograms.
Theagencyfundfinancialstatementcanbefoundonpage14ofthisreport.
NotestoBasicFinancialStatements
The notes provide additional information that is essential for a full understanding of the
dataprovidedinthegovernmentͲwideandfundfinancialstatements.Thenotestobasicfinancial
statementscanbefoundonpages15through22ofthisreport.
GOVERNMENTͲWIDEFINANCIALANALYSIS
As noted earlier, statement of net position may serve over time as a useful indicator of
financialposition.ThefollowingtablereflectsthecondensedgovernmentͲwidestatementsofnet
positionasofSeptember30,2014and2013:
PlantationAcresImprovementDistrict
StatementsofNetPosition
2014
Currentandotherassets
Capitalassets
$
Totalassets
Totalliabilities
Netposition:
Netinvestmentin
capitalassets
Unrestricted
Totalnetposition
$
4
249,879
572,450
2013
$
396,911
612,158
822,329
1,009,069
19,477
27,525
572,450
230,402
612,158
369,386
802,852
$
981,544
PLANTATIONACRESIMPROVEMENTDISTRICT
MANAGEMENT'SDISCUSSIONANDANALYSIS
September30,2014and2013
GovernmentalActivities
Governmental activities for the year ended September 30, 2014, decreased the District’s
netpositionby$178,692,asreflectedinthetablebelow:
PlantationAcresImprovementDistrict
StatementsofActivities
2014
REVENUES:
Programrevenues:
NonͲadvaloremassessments
Platandpermitfees
Licensesandfees
Generalrevenue:
Miscellaneousincome
Interestincome
Gainondisposalofcapitalassets
$
Totalrevenues
EXPENSES:
Physicalenvironment
Generalgovernment
Totalexpenses
Changeinnetposition
NETPOSITION,October1
NETPOSITION,September30
$
ANALYSISOFTHEGOVERNMENTALFUNDS
702,735
78,646
7,162
2013
$
681,548
36,287
7,058
Ͳ
1,949
Ͳ
12,675
1,748
3,705
790,492
743,021
690,717
278,467
410,247
250,672
969,184
660,919
(178,692)
82,102
981,544
899,442
802,852
$
981,544
Asnotedearlier,theDistrictusesfundaccountingtoensureanddemonstratecompliance
with financeͲrelated legal requirements. The focus of the District’s governmental funds is to
provide information on nearͲterm inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the District’s financing requirements. In particular, unreserved
fundbalancemayserveasausefulmeasureofaDistrict’snetresourcesavailableforspendingat
theendofthefiscalyear.TheGeneralFundcomprisesthetotalgovernmentalfunds.
TheDistrict’sgovernmentalfundreportedendingfundbalanceof$230,402,adecreaseof
$138,984ascomparedtothetotalbalanceonSeptember30,2013.
5
PLANTATIONACRESIMPROVEMENTDISTRICT
MANAGEMENT'SDISCUSSIONANDANALYSIS
September30,2014and2013
CAPITALASSETSANDDEBTADMINISTRATION
The District’s investment in capital assets, less accumulated depreciation, for its
governmental activities as of September 30, 2014, amounts to $572,450 and consists of land, a
buildingandmachineryandequipment.
GENERALFUNDBUDGETARYHIGHLIGHTS
TheGeneralFundbudgetwasamendedduringtheyear.Bothrevenuesandexpenditures
were over the budget for the year due to additional expenditures for the Main 2C and 6C canal
improvementprojectandnonͲbudgetedrevenuescollectedforplatandpermitfees.
ECONOMICFACTORSANDNEXTYEAR’SBUDGET
Expenditures for the fiscal year 2015 adopted budget for the General Fund total
approximately $784,100. The change is due to a decrease in costs associated with the District’s
canalimprovementsduetotheMain2Cand6Ccanalimprovementprojectwhichwasbudgeted
forin2013Ͳ2104.
REQUESTSFORINFORMATION
This financial report is designed to provide a general overview of Plantation Acres
Improvement District’s finances for all those with an interest. Questions concerning any of the
informationprovidedinthisreportorrequestsforadditionalinformationshouldbeaddressedto
the Plantation Acres Improvement District; 12773 West Forest Hill Boulevard, Suite 105;
Wellington,Florida33414.
6
PLANTATIONACRESIMPROVEMENTDISTRICT
STATEMENTOFNETPOSITION
September30,2014
Governmental
Activities
ASSETS:
Cashandcashequivalents
Receivables
Prepaids
Capitalassets:
NonͲdepreciable
Depreciable,net
$
207,391
13,465
29,023
70,000
502,450
Totalassets
822,329
LIABILITIES:
Accountspayable
Accruedexpenses
11,512
7,965
Totalliabilities
19,477
NETPOSITION:
Netinvestmentincapitalassets
Unrestricted
Totalnetposition
572,450
230,402
$
802,852
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
7
PLANTATIONACRESIMPROVEMENTDISTRICT
STATEMENTOFACTIVITIES
FortheYearEndedSeptember30,2014
Governmental
Charges
for
Services
Expenses
FUNCTIONS/PROGRAMS:
Primarygovernment:
Governmentalactivities:
Physicalenvironment
Generalgovernment
Totalgovernmental
activities
$
$
690,717
278,467
$
969,184
$
Activities
NetRevenues
(Expenses)and
Changein
NetPosition
ProgramRevenues
Operating
Capital
Grantsand
Grantsand
Contributions Contributions
583,746
204,797
$ Ͳ
$ Ͳ
Ͳ
Ͳ
(106,971)
(73,670)
788,543
$ Ͳ
$ Ͳ
(180,641)
$
Generalrevenues:
Interestincome
1,949
Totalgeneralrevenues
1,949
Changeinnetposition
(178,692)
Netposition,October1,2013
Netposition,September30,2014
981,544
$
802,852
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
8
BASIC
FINANCIALSTATEMENTS
PLANTATIONACRESIMPROVEMENTDISTRICT
BALANCESHEET
GOVERNMENTALFUND
September30,2014
ASSETS
General
Fund
ASSETS:
Cashandcashequivalents
Receivables
Prepaids
Totalassets
$
207,391
13,465
29,023
$
249,879
$
11,512
7,965
LIABILITIESANDFUNDBALANCE
LIABILITIES:
Accountspayable
Accruedliabilities
Totalliabilities
19,477
FUNDBALANCE:
Nonspendableforprepaids
Assignedtosubsequentyear'sbudget
Unassigned
29,023
75,000
126,379
Totalfundbalance
Totalliabilitiesandfundbalance
230,402
$
249,879
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
9
PLANTATIONACRESIMPROVEMENTDISTRICT
RECONCILIATIONOFTHEBALANCESHEETOFGOVERNMENTALFUND
TOTHESTATEMENTOFNETPOSITION
September30,2014
AMOUNTSREPORTEDFORGOVERNMENTALACTIVITIESINTHE
STATEMENTOFNETPOSITIONAREDIFFERENTBECAUSE:
Totalfundbalanceofgovernmentalfundinthebalancesheet
$
230,402
Capitalassetsusedingovernmentalactivitiesarenotfinancialresources
and,therefore,arenotreportedinthegovernmentalfund:
Governmentalcapitalassets
Lessaccumulateddepreciation
NETPOSITIONOFGOVERNMENTALACTIVITIES
1,132,355
(559,905)
$
802,852
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
10
PLANTATIONACRESIMPROVEMENTDISTRICT
STATEMENTOFREVENUES,EXPENDITURESAND
CHANGEINFUNDBALANCEͲGOVERNMENTALFUND
FortheYearEndedSeptember30,2014
General
Fund
REVENUES:
Maintenancetaxassessments
Platandpermitfees
Licensesandfees
Interestincome
$
Totalrevenues
790,492
EXPENDITURES:
Currentoperating:
Physicalenvironment
Generalgovernment
Capitaloutlay
642,921
271,729
14,826
Totalexpenditures
929,476
Changeinfundbalance
(138,984)
FUNDBALANCE,October1,2013
FUNDBALANCE,September30,2014
702,735
78,646
7,162
1,949
369,386
$
230,402
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
11
PLANTATIONACRESIMPROVEMENTDISTRICT
RECONCILIATIONOFTHESTATEMENTOFREVENUES,
EXPENDITURESANDCHANGEINFUNDBALANCE
OFGOVERNMENTALFUNDTOTHESTATEMENTOFACTIVITIES
FortheYearEndedSeptember30,2014
NETCHANGEINFUNDBALANCEͲTOTAL
GOVERNMENTALFUND
$
(138,984)
Amountsreportedforgovernmentalactivitiesinthestatementof
activitiesaredifferencebecause:
Thegovernmentalfundreportscapitaloutlaysasexpenditures
However,inthestatementofactivities,thecostofthose
assetsisdepreciatedovertheirestimatedusefullives.
Expendituresforcapitalassets
Lesscurrentyearprovisionfordepreciation
CHANGEINNETPOSITIONOFGOVERNMENTALACTIVITIES
14,826
(54,534)
$
(178,692)
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
12
PLANTATIONACRESIMPROVEMENTDISTRICT
STATEMENTOFREVENUES,EXPENDITURESANDCHANGEINFUND
BALANCEͲBUDGETANDACTUALͲGENERALFUND
FortheYearEndedSeptember30,2014
Original
Budget
REVENUES:
Maintenancetaxassessments
Platandpermitfees
Licensesandfees
Interestincome
Prioryearsurplus
Final
Budget
Actual
Variance
$ 700,763
Ͳ
7,162
500
68,000
$ 701,163
Ͳ
7,162
375
187,780
$ 702,735
78,646
7,162
1,949
Ͳ
$ 1,572
78,646
Ͳ
1,574
(187,780)
776,425
896,480
790,492
(105,988)
EXPENDITURES:
Current:
Physicalenvironment
Generalgovernment:
Capitaloutlay/reserves
511,275
201,650
63,500
668,105
213,375
15,000
642,921
271,729
14,826
25,184
(58,354)
174
Totalexpenditures
776,425
896,480
929,476
(32,996)
Totalrevenues
Changeinfund
balance
$ Ͳ
$ Ͳ
(138,984)
FUNDBALANCE,
October1,2013
FUNDBALANCE,
September30,2014
$
(138,984)
369,386
$
230,402
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
13
PLANTATIONACRESIMPROVEMENTDISTRICT
STATEMENTOFFIDUCIARYNETPOSITION
AGENCYTRUSTFUND
September30,2014
ASSETS:
Cashandcashequivalents
$
272,269
Totalassets
272,269
LIABILITIES:
Escrowdepositspayable
272,269
Totalliabilities
NETPOSITIONHELDINTRUST
272,269
$
Ͳ
Theaccompanyingnotestobasicfinancialstatementsareanintegralpartofthesestatements.
14
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE1ͲORGANIZATIONANDOPERATIONS
Plantation Acres Improvement District (the “District”) was formerly known as the Dixie
DrainageDistrict,whichwasoriginallycreatedin1963.TheDistrictwasformedin1982byHouse
Bill 1982Ͳ967 and codified by 2002Ͳ367. The District has the authority to administer road
improvement and drainage projects within the boundaries of the District and to promote and
createfavorableconditionsforthedevelopmentofthelandwithintheDistrict.
The District is located within the City of Plantation in Broward County, Florida with
boundariesofN.W.28thCourttothenorth,theCͲ42canaljusteastofHiatusRoadtotheeast,the
NorthNewRiverCanaltothesouth,andFlamingoRoadtothewest.TheDistricthastheauthority
to manage services for this community and to levy and assess nonͲad valorem taxes and
assessmentsforthefinancingandmaintenanceofimprovements.
The District is governed by a Board of Commissioners. The Board of Commissioners
exercisesallpowersgrantedtotheDistrictandisresponsiblefor:
Assessingandlevyingmaintenancetaxesandspecialassessments
Approvingbudgets
Exercisingcontroloverfacilitiesandproperties
ControllingtheuseoffundsgeneratedbytheDistrict
Approvingthehiringandterminationofkeypersonnel
Financingimprovements
NOTE2ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
The basic financial statements of the District have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental units. The District's
moresignificantaccountingpoliciesaredescribedbelow:
Thefinancialreportingentity:
Thecriteriausedforincludingcomponentunitsconsistofidentificationoflegallyseparate
organizationsforwhichtheBoardofCommissionersoftheDistrictarefinanciallyaccountable.This
criteriaalsoincludesidentificationoforganizationsforwhichthenatureandsignificanceoftheir
relationshipwiththeprimarygovernmentaresuchthattheirexclusionwouldcausethereporting
entity'sbasicfinancialstatementstobemisleadingorincomplete.Baseduponthisreview,there
werenopotentialcomponentunitsorrelatedorganizationsoftheDistrict.
Basisofpresentation:
FINANICALSTATEMENTS–GOVERNMENTͲWIDESTATEMENTS
The District’s basic financial statements include both governmentͲwide (reporting the
Districtasawhole)andfundfinancialstatements(reportingtheDistrict’smajorfund).Both the
governmentͲwide and fund financial statements categorize primary activities as either
governmental or businessͲtype. All of the District’s activities are classified as governmental
activities.
In the governmentͲwide statement of net position, the governmental activities column is
presented on a consolidated basis, if applicable, and is reported on a fullͲaccrual, economical
resource basis, which recognizes all noncurrent assets and receivables as well as all noncurrent
debtandobligations,whenandifapplicable.
15
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE2ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)
ThegovernmentͲwidestatementofactivitiesreportsboththegrossandnetcostofeachof
theDistrict’sfunctions.Thenetcosts,byfunction,arealsosupportedbygeneralrevenues,other
revenue, etc. The statement of activities reduces gross expenses by related program revenues,
operating and capital grants. Program revenues must be directly associated with the function.
Operating grants include operatingͲspecific and discretionary (either operating or capital) grants
whilethecapitalgrantscolumnreflectcapitalͲspecificgrants.FortheyearendedSeptember30,
2014,theDistricthadprogramrevenuesof$788,543.
ThisgovernmentͲwidefocusismoreontheabilitytosustaintheDistrictasanentityandthe
changeintheDistrict’snetpositionresultingfromthecurrentyear’sactivities.
FINANCIALSTATEMENTS–FUNDFINANCIALSTATEMENTS
TheaccountsoftheDistrictareorganizedonthefundbasis.Theoperationsofthefunds
areaccountedforwithseparateselfͲbalancingaccountsthatcomprisetheirassets,liabilities,fund
equity,revenuesandexpenditures.
TheDistrictreportsthefollowingmajorgovernmentalfund:
GeneralFundͲThisfundisusedtoaccountforalloperatingactivitiesoftheDistrict.Atthis
time,revenuesarederivedprincipallyfromnonͲadvaloremtaxassessments.
The District also reports an agency fund which is used to account for assets held by the
Districtasanagentforotherentities.AgencyFundsarecustodialinnatureanddonotmeasure
resultsofoperations.
Measurementfocus,basisofaccountingandfinancialstatementpresentation:
Basis of accounting refers to the point at which revenues or expenditures/expenses are
recognizedintheaccountsandreportedinthebasicfinancialstatements.Itrelatestothetiming
of the measurements made regardless of the measurement focus applied. Governmental funds
usethecurrentfinancialresourcesmeasurementfocusandthegovernmentͲwidestatementsuse
theeconomicresourcesmeasurementfocus.
Governmental activity in the governmentͲwide financial statements is presented on the
accrualbasisofaccounting.Revenuesarerecognizedwhenearnedandexpensesarerecognized
whenincurred.
Thegovernmentalfundfinancialstatementsarepresentedonthemodifiedaccrualbasisof
accounting under which revenue is recognized in the accounting period in which it becomes
susceptibletoaccrual(i.e.,whenitbecomesbothmeasurableandavailable).“Measurable”means
the amount of the transaction can be determined and “available” means collectible within the
currentperiodorsoonenoughthereaftertobeusedtopayliabilitiesofthecurrentperiod.Forthis
purpose,theDistrictconsidersrevenuestobeavailableiftheyarecollectedwithinsixtydaysofthe
endofthecurrentyear.
16
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE2ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)
Budget:
AbudgetisadoptedfortheGeneralFundonanannualbasis.AppropriationslapseatfiscalyearͲ
end.ChangesoramendmentstothetotalbudgetedexpendituresoftheDistrictmustbeapproved
bytheDistrictBoardofCommissioners.
The District follows these procedures in establishing the budgetary data reflected in the
financialstatements:
a.
EachyeartheDistrictAccountantsubmitstotheDistrictBoardofCommissionersa
proposedoperatingbudgetforthefiscalyearcommencingthefollowingOctober1.
b.
Publichearingsareconductedtoobtaintaxpayercomments.
c.
Prior to October 1, the budget is legally adopted by the District Board of
Commissioners.
d.
Thebudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccounting
principles.
Cashandcashequivalents:
Cash and cash equivalents are defined as demand deposits, money market accounts, and
shortͲterm investments with original maturities of three months or less from the date of
acquisition.
Prepaidexpenses/expenditures:
Certainpaymentsreflectcostsapplicabletoafutureaccountingperiodandarerecordedas
prepaiditemsinboththegovernmentͲwideandfundfinancialstatements.
Capitalassets:
Capitalassets,whichincludeland,abuildingandmachineryandequipment,arereportedin
theapplicablegovernmentalactivitiescolumninthegovernmentͲwidefinancialstatements.The
District defines capital assets as assets with an initial, individual cost of more than $250 and an
estimatedusefullifeinexcessofoneyear.Suchassetsarerecordedathistoricalcostorestimated
historicalcostifpurchasedorconstructed.Donatedcapitalassetsarerecordedatestimatedfair
marketvalueatthedateofdonation.Depreciationonallcapitalassetsischargedtooperations
usingthestraightͲlinemethodovertheassets’estimatedservicelives,rangingfrom5to50years.
Thecostsofnormalmaintenanceandrepairsthatdonotaddtothevalueoftheassetor
materiallyextendassetlivesarenotcapitalized.
Deferredoutflows/inflowsofresources:
Inadditiontoassets,thestatementoffinancialpositionwillsometimesreportaseparate
section for deferred outflows of resources. This separate financial element, deferred outflows of
resources,representsaconsumptionofnetpositionthatappliestoafutureperiod(s)andsowill
notberecognizedasanoutflowofresources(expense/expenditure)untilthen.TheDistrictdoes
nothaveanyitemsthatqualifyforreportinginthiscategory.
17
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE2ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)
Inadditiontoliabilities,thestatementoffinancialpositionwillsometimesreportaseparate
section for deferred inflows of resources. This separate financial element, deferred inflows of
resources,representsanacquisitionofnetpositionthatappliestoafutureperiod(s)andsowillnot
berecognizedasaninflowofresources(revenue)untilthattime.TheDistrictdoesnothaveany
itemsthatqualifyforreportinginthiscategory.
Unearnedrevenue:
Unearned revenue arises only when the District receives resources before it has a legal
claimtothem.
Maintenancetaxassessments:
MaintenancetaxassessmentsaredeterminedbytheBoardofCommissioners.Ownersof
realpropertyareassessedonacountyͲwidebasisbytheBrowardCountyPropertyAppraiserasof
January1eachyear.TheDistrictleviesamaintenancetaxperacrewhichwillprovideresources
requiredforthefiscalyearbeginningOctober1.MaintenancetaxesleviedbytheDistrict,andall
other taxing authorities within the County, are centrally billed and collected by Broward County,
withamonthlyremittancetotheDistrictoftheirproportionateshareofcollectedtaxes.Taxesfor
thefiscalyearbeginningOctober1arebilledinthemonthofNovember,subjecttoa1%permonth
discountfortheperiodNovemberthroughFebruary,andareduenolaterthanMarch31.OnApril
1,unpaidamountsbecomedelinquentwithinterestandpenaltiesaddedthereafter.BeginningJuly
1,taxcertificatesrepresentingdelinquentamountsaresoldbyBrowardCounty,witharemittance
totheDistrictforitsshareofthosereceipts.
Themaintenanceassessmenttaxratetofinancegeneralgovernmentaloperationsforthe
yearendedSeptember30,2014was$428anacreonapproximately1,720taxableacres.
Equityclassifications:
GovernmentͲwidefinancialstatements
Equityisclassifiedasnetpositionanddisplayedinthreecomponents:
a.
Net investment in capital assets Ͳ consists of capital assets including restricted
capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds or other borrowings, if any, that are attributable to the
acquisition,constructionorimprovementofthoseassets.
b.
Restricted net position Ͳ consists of net assets with constraints placed on the use
either by 1) external groups such as creditors, grantors, contributors, or laws or
regulations of other governments, or 2) law through constitutional provisions or
enablinglegislation.
c.
UnrestrictednetpositionͲallothernetpositionthatdonotmeetthedefinitionof
“restricted”or“netinvestmentincapitalassets.”
18
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE2ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)
Fundfinancialstatements
The District follows GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions. This statement requires that governmental fund financial statements
presentfundbalancesbasedonclassificationsthatcompriseahierarchythatisbasedprimarilyon
theextenttowhichtheDistrictisboundtohonorconstraintsonthespecificpurposesforwhich
amounts in the respective governmental funds can be spent. The classifications used in the
governmentalfundfinancialstatementsareasfollows:
Nonspendable: This classification includes amounts that cannot be spent
because they are either (a) not in spendable form or (b) are legally or
contractually required to be maintained intact. The District classifies prepaid
itemsanddepositsasnonspendablesincetheyarenotexpectedtobeconverted
tocashorarenotexpectedtobeconvertedtocashwithinthenextyear.
Restricted:Thisclassificationincludesamountsforwhichconstraintshavebeen
placed on the use of the resources either (a) externally imposed by creditors
(suchasthroughadebtcovenant),grantors,contributors,orlawsorregulations
ofothergovernments,or(b)imposedbylawthroughconstitutionalprovisionsor
enablinglegislation.
Committed: This classification includes amounts that can be used only for
specific purposes pursuant to constraints imposed by formal action of the
DistrictBoardofCommissioners(the“Board”).Theseamountscannotbeused
foranyotherpurposeunlesstheBoardremovesorchangesthespecifieduseby
taking the same type of action (ordinance or resolution) that was employed
when the funds were initially committed. This classification also includes
contractual obligations to the extent that existing resources have been
specificallycommittedforuseinsatisfyingthosecontractualrequirements.
Assigned: This classification includes amounts that are constrained by the
District’sintenttobeusedforaspecificpurposebutareneitherrestrictednor
committed. This intent can be expressed by the Board or through the Board
delegating this responsibility to the District manager through the budgetary
process.Thisclassificationalsoincludestheremainingpositivefundbalancefor
all governmental funds except for the General Fund. The District classifies
existingfundbalancetobeusedinthesubsequentyear’sbudgetforelimination
ofadeficitasassigned.
Unassigned:ThisclassificationincludestheresidualfundbalancefortheGeneral
Fund.
TheDistrictwouldtypicallyuserestrictedfundbalancesfirst,followedbycommittedfund
balances,andthenassignedfundbalances.
Dateofmanagementreview:
Subsequent events have been evaluated through March 11, 2015, which is the date the
financialstatementswereavailabletobeissued.
19
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE3ͲDEPOSITS
TheDistrict’sdepositsmustbeplacedwithbanksandsavingsandloanswhicharequalified
aspublicdepositoriespriortoreceiptofpublicmoniesunderChapter280,FloridaStatutes.Asof
September 30, 2014, all deposits are insured by the FDIC up to $ 250,000. Monies deposited in
amounts greater than the insurance coverage are secured by the banks’ pledging securities with
the State Treasurer in the collateral pool. At year end, the carrying amount of the District’s
deposits, including those held in the Agency Fund, was $479,660 and the bank balance was
$482,989.
NOTE4ͲCAPITALASSETS
CapitalassetactivityfortheyearendedSeptember30,2014wasasfollows:
Balance,
October1,
2013
GovernmentalActivities:
Capitalassets,notbeing
depreciated:
Land
$
Totalcapitalassets,not
beingdepreciated
70,000
Additions
$
70,000
Capitalassets,beingdepreciated:
Machineryandequipment
Buildings
Totalcapitalassets,being
depreciated
Totalcapitalassets
$
Ͳ
Balance,
September30
2014
Deletions
$
Ͳ
$
70,000
Ͳ
Ͳ
70,000
742,266
305,263
14,826
Ͳ
Ͳ
Ͳ
757,092
305,263
1,047,529
14,826
Ͳ
1,062,355
1,117,529
$
14,826
$
Ͳ
$
1,132,355
Balance,
October1,
2013
Lessaccumulateddepreciationfor:
Machineryandequipment
Buildings
$
Additions
$
458,889
46,482
48,429
6,105
Balance,
September30
2014
Deletions
$
Ͳ
Ͳ
$
507,318
52,587
Totalaccumulateddepreciation
505,371
54,534
Ͳ
559,905
Totalcapitalassets,being
depreciated,net
542,158
(39,708)
Ͳ
502,450
Governmentalactivities
capitalassets,net
$
$
612,158
20
(39,708)
$
Ͳ
$
572,450
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE4ͲCAPITALASSETS(continued)
Provisionfordepreciationwaschargedtofunctionsasfollows:
Governmentalactivities:
Physicalenvironment
Generalgovernment
$
47,796
6,738
$
54,534
NOTE5ͲRETIREMENTPLAN
The District participates in the Florida Retirement System (FRS), a statewide costͲsharing
multipleͲemployer public employee retirement system (PERS), available to governmental units
within the state and administeredby the State of Florida, Division of Retirement, Department of
Administration.TheemployeesoftheDistrictareabletoparticipateintheFRSfromthedaythey
begin employment. All rates, benefits, and amendments are established by the State of Florida
throughitslegislativebody.
FRS members with six years of service are entitled to a retirement benefit. Such benefit,
payablemonthlyforlife,isbasedonthepercentageshownbelow,timesthenumberofyearsof
creditedservice,timestheaverageofthemember’sfivehighestyearsofearnings.
SpecialRiskClass
Servicefrom12/1/70through9/30/74
2.00%
Serviceonandafter10/1/74
3.00%
Pastservicewithcityorspecialdistrict
2.00%
purchasedasspecialriskservice SeniorManagementServiceClass 2.00%
RegularClass,ifinitiallyenrolledbeforeJuly1,2011
Retirementatage62or30yearsofservice 1.60%
Retirementatage63or31yearsofservice 1.63%
1.65%
Retirementatage64or32yearsofservice Retirementatage65or33ormoreyearsofservice
1.68%
RegularClass,ifinitiallyenrolledonorafterJuly1,2011
Retirementatage65or33yearsofservice 1.60%
Retirementatage66or34yearsofservice 1.63%
1.65%
Retirementatage67or35yearsofservice Retirementatage68or36ormoreyearsofservice
1.68%
Normalretirementageintheregularandseniormanagementserviceclassesis62ifinitially
enrolledbeforeJuly1,2011and65ifenrolledonorafterJuly1,2011.Inthespecialriskservice
class,normalretirementageis55ifinitiallyenrolledbeforeJuly1,2011and60ifenrolledonor
after July 1, 2011. If a member is vested, but has not reached normal retirement age, early
retirement can be taken. The amount of the benefit will be reduced 5% for each year the
retirementdateprecedesnormalretirementage.
21
PLANTATIONACRESIMPROVEMENTDISTRICT
NOTESTOBASICFINANCIALSTATEMENTS
September30,2014
NOTE5ͲRETIREMENTPLAN(continued)
ContributionstotheFRSaremadebytheDistrictasapercentageofcoveredpayroll.The
required contribution rate in effect for the year ended September 30, 2014 was 7.98%. For the
year ended September 30, 2014, employees were required to contribute 3% of their earnings to
theFRS.AtSeptember30,2014,theDistricthadsixemployeesparticipatingintheFRS.
Thecontributionrequirements,coveredpayrollandactualcontributionsmadeforthelast
threeyearswereasfollows:
FY2014
Contributionrequirement
29,012
$
8,825
FY2012
$
9,645
Contributionsmade(100%)
29,012
8,825
9,645
Totalcoveredpayroll
363,448
157,800
193,952
7.98%
5.59%
4.97%
Percentofcontributionsto
totalcoveredpayroll
$
FY2013
TheFRSissuesanannualreportincludingstatementsoffinancialcondition,historicaland
statisticalinformation,andanactuarialreport.AcopycanbeobtainedfromtheStateofFlorida;
Division of Retirement, Research, Education and Policy Section; 2639ͲC North Monroe Street;
Tallahassee,Florida32399Ͳ1560.
NOTE6ͲRISKMANAGEMENT
The Districtis exposed to various risks of losses related to torts, theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
District places all insurance risk, less nominal deductibles, in the hands of commercial carriers.
Certainclaimsresultingfromtheseriskshavebeensettledforamountsinexcessoftheinsurance
deductiblesorcoverageamountsinthepast.
NOTE7–EXCESSOFEXPENDITURESOVERAPPROPRIATIONS
For the fiscal year ended September 30, 2014, expenditures exceed appropriations in the
GeneralFundbyapproximately$33,000duemainlytoadditionalengineeringfeeexpenditures.
22
OTHERREPORTSOF
INDEPENDENTAUDITORS
INDEPENDENTAUDITOR’SREPORTONINTERNALCONTROLOVER
FINANCIALREPORTINGANDCOMPLIANCEANDOTHERMATTERS
ONANAUDITOFFINANCIALSTATEMENTSPERFORMED
INACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
HonorableBoardofCommissioners
PlantationAcresImprovementDistrict
Plantation,Florida
Wehaveaudited,inaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesof
Americaandthestandardsapplicabletofinancialauditscontainedin GovernmentAuditingStandards
issuedbytheComptrollerGeneraloftheUnitedStates,thefinancialstatementsofthegovernmental
activitiesandeachmajorfundofPlantationAcresImprovementDistrict(the“District”)asofandfor
the year ended September 30, 2014, and the related notes to the financial statements, which
collectivelycomprisetheDistrict’sbasicfinancialstatementsandhaveissuedourreportthereondated
March11,2015.
InternalControloverFinancialReporting
In planning and performing our audit of the financial statements, we considered the District's
internalcontroloverfinancialreporting(internalcontrol)todeterminetheauditproceduresthatare
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 District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internalcontrol.
A deficiency in internal control exists when the design or operation of a control does not allow
managementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,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 District’s financial statements will not be prevented, or detected and
correctedonatimelybasis.A significantdeficiencyisadeficiency,oracombinationofdeficiencies,in
internalcontrolthatislessseverethanamaterialweakness,yetimportantenoughtomeritattention
bythosechargedwithgovernance.
Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphof
thissectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolthatmightbematerial
weaknessesorsignificantdeficiencies.Giventheselimitations,duringourauditwedidnotidentifyany
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknessesmayexistthathavenotbeenidentified.
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23
PlantationAcresImprovementDistrict
ComplianceandOtherMatters
AspartofobtainingreasonableassuranceaboutwhethertheDistrict’sbasicfinancialstatements
are free of material misstatement, we performed tests of its compliance with certain provisions of
laws,regulations,contractsandgrantagreements,noncompliancewithwhichcouldhaveadirectand
material effect on the determination of basic financial statement amounts. However, providing an
opiniononcompliancewiththoseprovisionswasnotanobjectiveofouraudit,andaccordingly,wedo
notexpresssuchanopinion.Theresultsofourtestsdisclosednoinstancesofnoncomplianceorother
mattersthatarerequiredtobereportedunderGovernmentAuditingStandards.
PurposeofthisReport
The purpose of this report is solely to describe the scope of our testing of internal control and
complianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessofthe
District’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 District’s internal control and
compliance.Accordingly,thiscommunicationisnotsuitableforanyotherpurpose.
KEEFEMcCULLOUGH
FortLauderdale,Florida
March11,2015
24
MANAGEMENTLETTERINACCORDANCEWITH
THERULESOFTHEAUDITORGENERALOFTHESTATEOFFLORIDA
HonorableBoardofCommissioners
PlantationAcresImprovementDistrict
Plantation,Florida
ReportontheFinancialStatements
WehaveauditedthefinancialstatementsofPlantationAcresImprovementDistrict(the"District"),
as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated
March11,2015.
Auditor’sResponsibility
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,issuedbytheComptrollerGeneraloftheUnitedStates;andChapter10.550,Rulesofthe
AuditorGeneral.
OtherReportsandSchedule
WehaveissuedourIndependentAuditor’sReportonInternalControloverFinancialReportingand
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards. Disclosures in that report, which is dated March 11, 2015,
shouldbeconsideredinconjunctionwiththismanagementletter.
PriorAuditFindings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
correctiveactionshavebeentakentoaddressfindingsandrecommendationsmadeinthepreceding
annual financial audit report. There were no findings and recommendations made in the preceding
annualfinancialauditreport.
OfficialTitleandLegalAuthority
Section10.554(1)(i)4.,RulesoftheAuditorGeneral,requiresthatthenameorofficialtitleandlegal
authorityfortheprimarygovernmentandeachcomponentunitofthereportingentitybedisclosedin
thismanagementletter,unlessdisclosedinthenotestothefinancialstatements.Thenameorofficial
titleandlegalauthorityoftheDistrictisdisclosedinthenotestothefinancialstatements.TheDistrict
hasnocomponentunits.
FinancialCondition
Section 10.554(1)(i)5.a, Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the District has met one or more of the conditions described in
Section218.503(1),FloridaStatutes,andidentificationofthespecificcondition(s)met.Inconnection
withouraudit,wedeterminedthattheDistrictdidnotmeetanyoftheconditionsdescribedinSection
218.503(1),FloridaStatutes.
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25
PlantationAcresImprovementDistrict
PursuanttoSections10.554(1)(i)(5).c.and10.556(8),RulesoftheAuditorGeneral,weappliedfinancial
condition assessment procedures. It is management's responsibility to monitor the District’s financial
condition, and our financial condition assessment was based in part on representations made by
managementandthereviewoffinancialinformationprovidedbysame.
AnnualFinancialReport
Section 10.554(1)(i)5.b, Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the District for the fiscal year ended
September 30, 2014, 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
endedSeptember30,2014.Inconnectionwithouraudit,wedeterminedthatthesetworeportswerein
agreement.
OtherMatters
Section10.554(1)(i)2.,RulesoftheAuditorGeneral,requiresthatweaddressinthemanagementletter
any recommendations to improve financial management. In connection with our audit, we did not have
anysuchrecommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisionsofcontractorgrantagreements,orabuse,thathaveoccurred,orarelikelytohaveoccurred,
thathaveaneffectonthefinancialstatementsthatislessthanmaterialbutwhichwarrantstheattention
ofthosechargedwithgovernance.Inconnectionwithouraudit,wedidnothaveanysuchfindings.
PurposeofthisLetter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee,membersoftheFloridaSenateandtheFloridaHouseofRepresentatives,theFloridaAuditor
General,Federalandothergrantingagencies,andapplicablemanagement,andisnotintendedtobeand
shouldnotbeusedbyanyoneotherthanthesespecifiedparties.
KEEFEMcCULLOUGH
FortLauderdale,Florida
March11,2015
26