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Highlands County Sheriff's Office 349 8 0.88% *** *** *** the Palms of Sebring 257 9 0.64% *** *** *** Alan Jay Automotive 250 10 0.63% *** *** *** HIGHLANDS COUNTY FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2012 The theme for Highlands County’s 2012 Annual Financial Report is a celebration of 60 years of racing history at the Sebring International Raceway. We hope you enjoy the pictures that are featured throughout this publication and sincerely appreciate the assistance that was provided by the Sebring International Raceway. The Sebring International Raceway is home to America’s oldest and most prestigious road racing track. Located adjacent to the Sebring Regional Airport and Commerce Park and nestled among orange groves and cattle ranches, the raceway is the oldest permanent road racing track in North America. The legendary 3.74-mile circuit evolved from Hendricks Field, a World War II airbase. Sebring’s racing heritage was born on Dec. 31, 1950, when aviation and racing enthusiast Alec Ulmann promoted a six-hour race on the airbase. The race, known as the Sam Collier 6 Hour Memorial race, was the first sports car endurance race held in the United States. On March 15, 1952, the first 12 Hours of Sebring was held, beginning one of the greatest traditions in motorsports. The following year, Sebring became part of the sports car world championship, and under the supervision of Alec Ulmann the race became second only to Le Mans in international prestige. Legendary drivers such as Dan Gurney, Mario Andretti, A.J. Foyt, Phil Hill and Stirling Moss have won at Sebring. Porsche, Ferrari, Ford, Nissan and Audi are among the manufacturers that have won the tough once-around-the-clock classic. Sebring is also famous for celebrity participation. Steve McQueen nearly won the race back in 1970, while Dick Smothers, James Brolin, Gene Hackman and even Walter Cronkite competed in the race. HIGHLANDS COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2012 PREPARED BY THE OFFICE OF ROBERT W. GERMAINE CLERK OF COURTS TASHA L. MORGAN PATTI W. HOWERTON DIRECTOR OF ACCOUNTING ACCOUNTING MANAGER HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS YEAR ENDED SEPTEMBER 30, 2012 INTRODUCTORY SECTION Principal Officials 1 Letter of Transmittal 2 Certificate of Achievement for Excellence in Financial Reporting 7 Organizational Chart 8 FINANCIAL SECTION Independent Auditors’ Report 9 Management’s Discussion and Analysis 11 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Assets 25 Statement of Activities 26 Fund Financial Statements: Balance Sheet – Governmental Funds 28 Reconciliation of Fund Balances for Governmental Funds to Net Assets of Governmental Activities – Governmental Funds 29 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 31 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 32 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – County Transportation Trust Fund 33 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Local Government Infrastructure Surtax Fund 34 Statement of Net Assets – Proprietary Funds 36 Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary Funds 38 Statement of Cash Flows – Proprietary Funds 39 Statement of Fiduciary Net Assets – Agency Funds 41 Notes to the Financial Statements 42 i HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2012 FINANCIAL SECTION (CONTINUED) Required Supplementary Information Modified Approach for Infrastructure Assets 88 Postemployment Benefits Other than Pension 89 Combining and Individual Fund Statements and Schedules Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 90 Nonmajor Governmental Funds Descriptions 93 Combining Balance Sheet – Nonmajor Governmental Funds 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 113 Budgetary Comparison Schedules: Lake Placid Sun-N-Lake Estates Fire District Fund 127 DeSoto City Special Benefit Fire District Fund 128 Orange Villa Special Benefit District Fund 129 Hickory Hills Special Benefit District Fund 130 Placid Lakes Special Benefit District Fund 131 Sebring Country Estates Special Benefit District Fund 132 Istokpoga Marsh Watershed Improvement District Fund 133 Avon Park Estates Special Benefit District Fund 134 Highlands Lakes Special Tax District Fund 135 Highlands Park Special Benefit Fire District Fund 136 Highlands Park Estates Improvement Trust Fund 137 Leisure Lakes Special Benefit Fire District Fund 138 Sebring Hills Special Benefit District Fund 139 Red Hill Farms Improvement District Fund 140 E911 Emergency Operations Fund 141 Hospital District Fund 142 Orange Blossom Estates Special Benefit District Fund 143 Sun-N-Lake Lake Placid Recreation District Fund 144 Conservation Trust Fund 145 Intergovernmental Radio Communications Fund 146 Sebring Acres Special Benefit District Fund 147 Orange Blossom (Unit 12) Special Benefit District Fund 148 ii HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2012 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Statements and Schedules (Continued) Budgetary Comparison Schedules (Continued): Lake Haven Estates Special Benefit District Fund 149 Lorida Special Benefit Fire District Fund 150 Lake Placid Special Benefit Fire District Fund 151 Law Enforcement Education Fund 152 Building Code Enforcement 153 Florida Boating Improvement Fund 154 Special Law Enforcement Trust Fund 155 Highway Park Special Benefit District Fund 156 Community Development Block Grant Fund 157 Affordable Housing Assistance Trust Fund 158 Sun n Lake 1-20 Improvement Trust 159 Highlands Park Estates Special Benefit District Fund 160 Development Transportation Improvement Fund 161 West Sebring Special Benefit Fire District Fund 162 Driver Education Safety Trust Fund 163 Tourist Development Trust Fund 164 Domestic Violence Training Fund 165 Fire Inspection and Safety Fund 166 Venus Special Benefit Fire District Fund 167 Sebring Parkway Maintenance Fund 168 State Court Facilities Trust Fund 169 Innovations and Supplemental Courts Funding Trust Fund 170 Crime Prevention Fund 171 Court Tech 28.24(12)(E)1 Fund 172 Hurricane Housing Trust Fund 173 Home Initiatives Partnership Fund 174 Placid Lakes Fire District Fund 175 Court Services Fund (120) 176 Court Services Fund (121) 177 iii HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2012 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Statements and Schedules (Continued) Budgetary Comparison Schedules (Continued): Affordable and Workforce Trust 178 Impact Fee – Transportation – Avon Park 179 Impact Fee – Transportation – Lake Placid 180 Impact Fee – Transportation – Sebring 181 Impact Fee – Parks and Recreation – Avon Park 182 Impact Fee – Parks and Recreation – Lake Placid 183 Impact Fee – Parks and Recreation – Sebring 184 Impact Fee – Correctional Facilities 185 Impact Fee – Fire 186 Impact Fee – Libraries 187 Impact Fee – Law Enforcement 188 Impact Fee – Emergency Medical Services 189 Thunderbird Hill Waste Water 190 HCISSRB Construction 191 Nonmajor Enterprise Funds Descriptions 192 Combining Statement of Net Assets – Nonmajor Enterprise Funds 193 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets – Nonmajor Enterprise Funds 194 Combining Statement of Cash Flows – Nonmajor Enterprise Funds 195 Internal Service Funds Descriptions 197 Combining Statement of Net Assets – Internal Service Funds 198 Combining Statement of Revenues, Expenses and Changes in Net Assets – Internal Service Funds 199 Combining Statement of Cash Flows – Internal Service Funds 200 Trust and Agency Funds Descriptions 202 Combining Statement of Fiduciary Net Assets – Agency Funds 204 Schedule of Changes in Assets and Liabilities – Agency Funds 206 iv HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2012 STATISTICAL SECTION Statistical Section 211 Net Assets by Components 212 Changes in Net Assets 213 Fund Balances, Governmental Funds 217 Change in Fund Balances, Governmental Funds 218 Taxable Value and Actual Value of Property 220 Direct and Overlapping Property Tax Rates 221 Principal Property Tax Payers 222 Property Tax Levies and Collections 223 Ratios of Outstanding Debt by Type 224 Ratios of General Bonded Debt Outstanding 226 Overlapping Governmental Activities Debt 227 Pledged-Revenue Coverage 228 Demographic and Economic Statistics 229 Principal Employers 230 Full-Time Equivalent County Government Employees by Function 231 Operating Indicators by Function 232 Capital Assets Statistics by Function 235 COMPLIANCE SECTION Schedule of Expenditures of Federal Awards and State Financial Assistance 236 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 240 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 241 Independent Auditors’ Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General 243 Schedule of Findings and Questioned
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