DISTRICT WATER CONSERVATION SOIL JACKSON REPORT … rpts... · 2019. 11. 3. · Jackson Soil and...

JACKSON SOIL & WATER CONSERVATION DISTRICT

ANNUAL FINANCIAL REPORT

SEPTEMBER 30,2017

Jackson Soil and Water Conservation District

2741 Pennsylvania Avenue – Suite 3

Marianna, Florida 32448

Office: 850-372-4793 | FAX: 850-482-7952

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JACKSON SOIL AND WATER CONSERVATION DISTRICT MANAGEMENT DISCUSSION AND ANALYSIS

This discussion and analysis of the financial statements of the Jackson Soil and Water an analytical overview of the District’s financial activities for the fiscal year ended on September 30, 2017. The basic financial statements are comprised of the government-wide financial statements, governmental fund financial statements, and notes. This will assist readers in identifying significant financial issues and changes in the District’s financial position. The Florida Department of Agriculture and Consumer Services (FDACS) administers programs assigned to it by the Florida Legislature under the Soil and Water Conservation Law, Chapter 582 Florida Statutes. The Jackson Soil and Water Conservation District coordinates FDACS Best Management Plan implementation, cost share programs, mobile irrigation labs, and public land management. The Jackson Soil and Water Conservation District was established on July 20, 1987 as an Independent Special District in accordance with the provisions of the Soil and Water Conservation Law, Chapter 582, Florida Statutes, enacted by the Florida Legislature in 1937. The District’s purpose is to aid private landowners, as well as local, state, and federal agencies to solve problems related to soil and water resources. The District is governed by a five-seat Board of Supervisors who are elected in the general elections of Jackson County.

“It is the policy of the Legislature to provide for control and prevention of soil erosion, and for the prevention of floodwater and sediment damages, and for furthering the conservation, development and utilization of soil and water resources, and the disposal of water, and thereby to preserve natural resources, control floods, prevent impairment of dams and reservoirs, assist in maintaining the navigability of rivers and harbors preserve wildlife, protect the tax base, protect public lands, and protect and promote the health, safety and general welfare of the people of this state.”




Office: 850-372-4793 | FAX: 850-482-7952

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The Jackson Soil and Water Conservation District currently administers three (3) FDACS contracts. Agricultural Water Quality and Quantity Best Management Practices and Projects Cost-Share Program: • The objective of the cost-share program is to help improve and protect water resources in

Florida by providing cost-share reimbursement to eligible agricultural producers for the implementation of water quality and quantity BMPs and projects.

• To achieve this objective, FDACS has contracted with the Jackson Soil and Water Conservation

District to administer a cost-share program that will assist any special district, municipality, county, water management district, agency (governmental or otherwise) or owner or occupier of lands with the engineering, design, and conservation planning services, irrigation management, nutrient management, and water resource protection.

Conservation Technician / Best Management Practices Implementation Assistance: • The objective in providing a technician for Jackson County increases Best Management Practices

Implementation assistance within the Northwest Florida Management District area. • To achieve this objective, FDACS has contracted with the Jackson Soil and Water Conservation

District to employ and administer a technician who will work with producers on a regular basis through site visits, demonstrations, workshops, field days, and other education and technical assistance activities, to assist them in understanding and installing BMPs appropriately and in exploring new and evolving technologies.

Agricultural Mobile Irrigation Lab: • The objective of the Agricultural Mobile Irrigation Lab is to increase BMPs for water conservation

and water quality improvement. • To achieve this objective, FDACS has contracted with the Jackson Soil and Water Conservation

District to provide Mobile Irrigation Lab (MIL) technicians and services for irrigation water management of irrigation systems and to conduct evaluations and follow-up evaluations on irrigation systems to determine estimations of potential and actual water savings within Jackson County and surrounding counties.




Office: 850-372-4793 | FAX: 850-482-7952

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Jackson Soil and Water Conservation District Highlights • At the close of Fiscal Year 2017, the Jackson Soil and Water Conservation District’s assets and

deferred outflows of resources exceeded its liabilities and deferred inflows of resources, resulting in a net position of $111,094.00

• The Jackson Soil and Water Conservation District’s total net position increased $22,332.00 in

comparison to the previous year • The Jackson Soil and Water Conservation District had ($111,094) of unrestricted net position • Total operating revenues ($700,308) in comparison to the previous year ($774,024). • Total operating expenditures ($677,976) in comparison to the previous year ($740,727). Government - wide 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 Jackson Soil and Water Conservation District excluding fiduciary activities. Individual funds are not displayed but the statements distinguish governmental activities, generally supported by taxes and general revenues, from business-type activities, generally financed in whole or in part with fees charged to external customers. The statement of activities reports the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. Program revenues include operating grants and contributions, which finance annual operating activities including restricted investment income. These revenues are subject to externally imposed restrictions to those program uses. Taxes and other revenue sources not properly included with program revenues are reported as general revenues. These revenues are subject to externally imposed restrictions to those program uses. Taxes and other revenue sources not properly included with program revenues are reported as general revenues. Fund Financial Statements The Jackson Soil and Water Conservation District accounts for its services in general governmental funds. A fund is a grouping of related accounts being used to maintain control over resources that have been segregated for specific activities or objectives. Governmental funds are used to account for the sources, uses, and balances of a government’s expendable general government financial resources (and the current liabilities). The focus is on how money flows into and out of the general fund and the balances left at year-end that are available for spending. The Jackson Soil and Water Conservation District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.




Office: 850-372-4793 | FAX: 850-482-7952

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Notes to the Financial Statements The notes to the financial statements give a detailed explanation of the data contained in the preceding statements. These notes are essential to a full understanding of the data provided in the government-wide and fund financial statements. Government - wide Financial Analysis The government-wide financial statements are designed so that the user can determine if the District is in a better financial condition or a declined financial condition from the previous year. The following is a condensed summary of net position for the Jackson Soil and Water Conservation District for fiscal years 2016 and 2017.

Summary of Net Position

2016 2017

ASSETS:

Cash 85,053 197,114 Restricted Assets: Cash 23,909 58,835

Accounts Receivable 42,226 49,248

Total Assets 151,188 305,197

LIABILITIES:

Accounts Payable 42,794 17,633

Total Liabilities 42,794 17,633

DEFERRED INFLOWS OF RESOURCES:

Unavailable Revenue 19,632 176,470

NET POSITION

Unrestricted 88,762 111,094

Total Net Position 88,762 111,094

The following schedule compares the revenues and expenses for the Jackson Soil and Water Conservation District for the current year:




Office: 850-372-4793 | FAX: 850-482-7952

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Statement of Activities for the Fiscal Year Ended September 30, 2017

2016 2017

REVENUES

Program Revenues - -

Operating Grants & Contributions 773,107 700,258

Total Program Revenues 773,107 700,258

General Revenues

Miscellaneous 917 50

Total General Revenues 917 50

Total Revenues 774,024 700,308

EXPENDITURES

Governmental Activities

General Government 740,902 677,976

Total Expenses 740,902 677,976

Change In Net Position 33,122 22,332

Net Position Beginning 55,640 88,762

Net Position Ending 88,762 111,094




Office: 850-372-4793 | FAX: 850-482-7952

6

Capital Assets The Jackson Soil and Water Conservation District does not own land or buildings for its operations. The office space is provided by the Jackson County Board of County Commissioners (Extension Office) at no cost. Capital assets consist of equipment which is depreciated using the estimated useful life of the asset (generally 5 to 10 years). Capital asset activity for the year ending September 30, 2017 was as follows:

Beginning

Balance Increases Decreases Ending

Balances

Equipment 1,259 - - 1,259

Less Accumulated Depreciation: Equipment (1,259) - - (1,259)

Total Capital Assets - - - -

Economic Factors and Next Year’s Budget The Jackson Soil and Water Conservation District received 100% of its funding from the Jackson County Board of County Commissioners and the Florida Department of Agriculture and Consumer Services. The District is dependent on the receipt of revenue from other agencies to carry out common goals. Loss of these funds and/or a large decrease in this type of funding would have a material effect on the District and a negative impact on overall operations. This financial report is designed to provide a general overview of the Jackson Soil and Water Conservation District’s finances. Any questions concerning any of the information provided in this report should be directed to: Jackson Soil and Water Conservation District 2741 Pennsylvania Avenue Suite #3 Marianna, FL 32448

Jackson Soil & Water Conseruation DistrictBoard of Supervisors

Mack GlassGreg Hall

Tom StadsklevSteve BasfordB.E. Davis, Jr.

TABLE OF CONTENTS

TABLE OF CONTENTS

I NDEP ENDENT AUDITOR'S REPORT

FINANC¡AL STATEMENTS

STATEMENT OF NET POSITION

STATEMENTOF ACTIVITES

BALANCE SHEET - GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, E)(PENDITURES, AND CHANGES INFUND BALANCE - GOVERNMENTAL FUNDS

NOTES TO THE FINANCIAL STATEMENTS

INDEPENDENT AGCOUNTANTS' REPORT ON COMPLIANCE WITH SECTION218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES

INDEPENDENT AUDITOR'S REPORT REQUIRED BYG OV E RN M E NTA L A U DITING S TA A'DA RDS

INDEPENDENTAUDITOR'S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTNG AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH G OV E RN ME NT A U DI T I N G S TANDARDS

SCHEDULE OF F¡NDINGS

INDEPENDENT AUDITORS REPORT TO MANAGEMENT REQUIRED

BY THE STATE OF FLORIDA

RESPONSE TO AUDIT FINDINGS

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5

3

4

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INDEPENDENT AUDITOR'S REPORT

GnrnnsrEv, C^rvnq & CoitæANy, P.A.Ce nrrrrro PueLrc AccoururRrurs

OWEN W. GRIMsLEY, C.P.A.

Dnlr L. Cnvtru, C.P.A.

MEMBERS

FtoRrDA INST|TUTEAND

Avenrca¡¡ lNslrurE oF

CERT|FTED PuBLtc AccouNTANTS

I NDEPENDENT AUDITOR'S REPORT

Board of DírectorsJackson Soil and Water Conservation DistrictMarianna, Florida

Report on Financial Statements

We have audited the accompanying financial statements of the governmental activities and majorfund of Jackson Soil and Water Conservation District as of and for the year ended September 30,2017, and the related notes to the financíal statements, which collectively comprise the JacksonSoil and Water Conservation District's basic financial statements as listed in the table of contents.

M a n a g e m e nt' s Responsrb i I ity fo r th e F i n a n c i a I State me nts

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

Au ditor's Respons i bi I ity

Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures ín the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internalcontrol relevant to the entity's preparation and fair presentation of the financial statements in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internalcontrol. Accordingly, we expressno such opinion. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of significant accounting estimates made by management, as wellas evaluating the overall presentation of the financial statements.

Post Office Box 220 o 4243 Lafayette Street . Marianna, Florida 32447 -0220 t 850-526-39 I 0 o FAX 850-482-60 19

Jackson Soil and Water Conservation DistrictPage 2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinions

ln our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities and major fund of Jackson Soil andWater Conservation District as of September 30, 2017, and the respective changes in financialposition for the year then ended in accordance with accounting principles generally accepted inthe United States of America.

Other Matters

Requ ired Su pplementary I nformation

Management has omitted the Management Discussion and Analysis and budgetary comparisoninformation that accounting principles generally accepted in the United States of America requireto be presented to supplement the basic financial statements. Such missing information, althoughnot a part of the basic financial statements, is required by the Governmental AccountingStandards board who considers it to be an essential part of financial reporting for placing the basicfinancial statements in an appropriate operational, economic, or historical context. Our opinionon the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards

ln accordance with Government Auditing Standards, we have also issued our report dated June12, 2018 on our consideration of the Jackson Soil and Water Conservation District's internalcontrol 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 todescribe the scope of our testing of internal control over financial reporting and compliance andthe results of that testing, and not to provide an opinion on internal control over financial reportingor on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering Jackson Soil and Water Conservation District'sinternal control over financial reporting and compliance.

Çrirræf"1, Cøvin {¡ CornpawJ

Marianna, FloridaJune 12,2018

Grimsley, Cavin & Company, P.ACertified Publíc Accountants

2

FINANCIAL STATEMENTS

Jackson Soil & Water Conservation DistrictStatement of Net Position

September 30,2017

ASSETSCashRestricted Assets - CashAccounts Receivable

TotalAssets

LIABILITIESAccounts Payable

Total Liabilities

DEFERRED INFLOWS OF RESOURCES

Unavailble Revenue

NET POSITION

UnrestrictedTotal Net Position

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

3

GovernmentalActivities

$ 197,11458,B3549,248

305 197

17,63317,633

176,470

111,094$ 111,094

Jackson Soil & Water Conservation DistrictStatement of Activities

For the Year Ending September 30,2017

Proqram RevenuesOperating

Charges for Grants and

Expenses Services Contributions

Net (Expense)Revenue andChanges inNet Position

GovernmentalActivities

Functions/ProqramsGove mmental Activiti esGeneral Government $ 677,976 $

Total governmental activities $__OZZ€ZO $

General Revenues:Miscellaneous

TotalGeneral RevenuesChanges in Net Position

Net Position - beginningNet Position - ending

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

4

$ 700,258 $ 22,282

$_re!258 22,282

50

5022,33288,762

$---Íit-Qgl

Jackson Soil & Water Conservation DistrictBalance Sheet

Governmental FundsSeptember 30,2017

ASSETSCashRestricted Assets:

Cash

Accounts Receivable

TotalAssets

$ 197,114 $ 197,114

General

Fund

TotalGovernmental

Funds

58,835

49,248

58,835

49,248

$ 305.197 $ 305.197

LIABILITIESAccounts Payable

Total Liabilities$ 17,633 $ 17.633

633 17,633

DEFERRED INFLOWS OF RESOURGES

Unavailble Revenue 176,470 176,470

FUND BALANCESUnassignedTotalFund Balances

111 094 111,094111 094 111,094

TotalLiabilities & Fund Balances $ 305.197 $ 305.197

Note: There are no reconciling items between the Balance Sheet and the Statement of Net Position

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

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Jackson Soil and Water Conservation DistrictStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental FundsFor the year Ended September 30, 2017

REVENUESlnterg ove rnme nta I RevenuesContributions and DonationsMiscellaneous

Total Revenues

EXPENDITURESCunent:General Government

Total Expenditures

Excess (deficiency) ofrevenue over expend itures

Net Change in

Fund BalancesFund Balances - beginning

Fund Balances - ending

GeneralFund

$ 672,853 $27,405

50

TotalGovernmental

Funds

672,85327,405

50

700,308 700,308

677,976 677,976677,976 677,976

22,332 22,332

22,33288,762

22,33288,762

$ 111,094 $ 111,094

Note: There are no reconciling items between the Statement of Revenues, Expenditures and Changes in the FundBalance and the Statement of Activities.

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

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NOTES TO FINANCIAL STATEMENTS

Jackson Soil and Water Conservation DistrictNotes to Financial Statements

September 30,2017

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

lntroduction

The basic financial statements of the Jackson Soil and Water Conservation District (the"District") are prepared in accordance with generally accepted accounting principles(GAAP). The District's reporting entity applies all relevant Governmental AccountingStandards Board (GASB) pronouncements.

The accounting and repqrting framework and the more significant accounting principles andpractices are discussed in subsequent sections of this Note. The remainder of the Notesare organized to provide explanations, including required disclosures, of the District'sfinancial activities for the fiscal year ended September 30, 2017.

Reportinq Entitv

The Jackson Soil and Water Conservation District was established July 20, 1987 as anindependent special district in accordance with the provisions of the Soil and WaterConservation Law, Chapter 582, Florida Statutes, enacted by the Florida Legislature in1937. The District's purpose is to provide assistance to private landowners, as well as local,state and federal agencies to solve problems related to soil and water resources. TheDistrict is governed by a five-seat board of supervisors who are elected in the generalelections of Jackson County.

Government-wide Financial Statements

The government-wide financial statements include the statement of net position and thestatement of activities. These statements report financial information for the Jackson Soiland Water Conservation District as a whole excluding fiduciary activities. Individual fundsare not displayed but the statements distinguish governmental activities, generallysupported by taxes and general revenues, from business-type activities, generally financedin whole or in part with fees charged to external customers.

The statement of activities reports the expenses of a given function offset by programrevenues directly connected with the functional program. A function is an assembly ofsimilar activities and may include portions of a fund or summarize more than one fund tocapture the expenses and program revenues associated with a distinct functional activity.Program revenues include operating grants and contributions, which finance annualoperating activities including restricted investment income. These revenues are subject toexternally imposed restrictions to those program uses. Taxes and other revenue sourcesnot properly included with program revenues are reported as general revenues. Theserevenues are subject to externally imposed restrictions to those program uses. Taxes andother revenue sources not properly included with program revenues are reported as generalrevenues.

7


September 30,2O17

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

Fund Financial Statements

Fund financial statements are provided for the governmental funds. Major individualgovernmentalfunds are reported in separate columns in the fund financial statements.

Basis of Accountinq

The government-wide statements report using the economic resources measurement focusand the accrual basis of accounting generally including the reclassification or elimination ofinternal activity (between or within funds). Revenues are recorded when earned andexpenses are recorded when a liability is incurred, regardless of the timing of related cashflows. Grants and similar items are recognized as revenue as soon as all eligibilityrequirements imposed by the provider have been met.

Governmental fund financial statements report using the current financial resourcesmeasurementfocus and the modified accrualbasis of accounting. Revenues are recognizedwhen they are both measurable and available. Available means collectible within the currentperiod or as soon enough thereafter to pay current liabilities. Jackson Soil and WaterConservation Ðistrict considers revenues to be available if they are collected within 60 daysof the end of the fiscal year. Expenditures are recorded when the related fund liabilities areincurred, as under accrual accounting.

Grants and interest associated with the current fiscal period are all considered susceptibleto accrual and so have been recognized as revenues of the current fiscal period. All otherrevenue items are considered measurable and available only when Jackson Soil and WaterConservation District receives cash.

When both restricted and unrestricted resources are available for use, it is the District'spolicy to use restricted resources first, and then unrestricted resources as needed.

The District uses funds to maintain its financial records during the year. A fund is definedas a fiscal and accounting entity with a self-balancing set of accounts. The District only usesgovernmental funds.

Governmental Funds

Governmental funds are those through which most governmental functions typically arefinanced. Governmental funds reporting focuses on the sources, uses and balances ofcurrent financial resources. Expendable assets are assigned to the various governmentalfunds according to the purpose for which they may or must be used. Current liabilities areassigned to the fund from which they will be paid. The difference between governmentalfund assets and liabilities is reported as fund balance.

B


September 30,2O17


The Jackson Soil and Water Conservation District reports the following major governmentalfund:

General Fund - The General Fund is used to account for all financíal resources ofthe District except those required to be accounted for in another fund.

Cash and lnvestments

Amounts shown as cash include cash in checking accounts, cash on hand and cash insaving accounts.

Capital Assets and Depreciation

Capital assets generally result from expenditures in the governmental funds. These assetsare reported on the government-wide statement of net assets but are not reported in thefund financial statements.

All capital assets are capitalized at cost (or estimated historical cost) and updated foradditions and retirements during the year. Jackson Soil and Water Conservation Districtmaintains a capitalization threshold of $1,000. lmprovements are capitalized; the cost ofnormal maintenance and repairs that do not add to the value of the asset or materially extendthe asset's life are not. Capital assets are depreciated using the straight-line method.Estimated useful lives, in year, for depreciable assets for the furniture, machinery andequipment is 3-30 years.

Net Position

Net position presents the difference between assets and liabilities in the statement of netposition. Net position invested in capital assets are reduced by the outstanding balances ofany borrowing used for the acquisition, construction or improvement of those assets.

Budoet Process

Florida Statutes govern the preparation, adoption, and administration of the budget for theDistrict. lndependent Special Districts must file its proposed budget with the County Clerkin which it is located by September 1"t each year. The District did not prepare a budget forthe fiscal year ended September 30, 2017.

Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect certainreported amounts and disclosures. Accordingly, actual results could differ from thoseestimates.

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September 30,2017


Risk Manaqement and lnsurance

The District purchased liability insurance to coverthe Mobile lrrigation Lab Technicians. TheDistrict did not deem any other insurance necessary for the fiscal year ended September30,2017.

Fund Equitv

The following fund balance classifications describe the relative strength of the spendingconstraints placed on the purposes for which resources can be used:

Nonspendable fund balance - amounts that are not in spendable form (such asinventory) or are required to be maintained intact;Restricted fund balance - amounts constrained to specific purposes by theirproviders (such as grantors, bondholders, and higher levels of government), throughconstitutional provisions, or be enabling legislation,Committed fund balance amounts constrained to specific purposes by agovernment itself, using its highest level of decision-making authority; to be reportedas committed, amounts cannot be used for any other purpose unless the governmenttakes the same highest level action to remove or change the constraint;Assigned fund balance - amounts the government intends to use for a specificpurpose; intent can be expressed by the governing body or by an official or body towhich the governing body delegates the authority;Unassigned fund balance - amounts that are available for any purpose; positiveamounts are reported only in the generalfund.

At September 30, 2017, Jackson Soil and Water Conservation District had no nonspendable,restricted, committed, or assigned fund balances. Jackson Soil and Water ConservationDistrict does not have a formal policy for minimum fund balances. The District uses the mostrestrictive funds first in the following order: restricted, committed, assigned, and unassigned.

NOTE 2 _ CASH

Jackson Soil & Water Conservation District, in accordance with state and local regulations,deposits its cash funds in approved financial institutions. The financial institutions arerequired to pledge U.S. Government Securities as collateralfor such funds. Custodial creditrisk is the risk that in the event of a bank failure, the District's deposits may not be returnedto it. The District does not have a deposit policy for custodial credit risk or interest rate risk.The District has not formally adopted deposit and investment policies that limit the District'sallowable deposits or investment and address the specific types of risk to which the Districtmight be exposed. The District maintains cash balances at one bank in Marianna, Florida.At September 30, 2A17, the carrying amount of the district's deposits was $255,949 and thebank balance was $255,979. $250,000 was covered by federal depository insurance,$5,979 was subject to Custodial Risk (risk of loss due to bank failure) but collateralized withsecurities pledged by the financial institution and held in trust, but not in the District's name.

a

a

a

a

a

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September 30,2017

NOTE3_CAPITALASSETS

Capital asset activity for the year ending September 30, 2017 was as follows:

BeginningBalance lncreases

EndingDecreases Balances

Equipment $ 1,259 $ $ $ 1,259

Less Accumulated Depreciation:Equipment (1,259) (1,259)

Total CapitalAssets $

NOTE 4 - GRANTS

The Jackson Soil and Water Conservation District has the following agreements with theFlorida Department of Agriculture and Consumer Services, the Flint River Soil and WaterConservation District and The Nature Conservancy.

Agreement # CSFA # Grant RevenueFlorida Department of Agriculture andConsumer ServicesFlorida Department of Agriculture andConsumer ServicesFlorida Department of Agriculture andConsumer ServicesFlorida Department of Agriculture andConsumer ServicesFlorida Department of Agriculture andConsumer ServicesFlint River Soil& Water Conservation District

023915 42.017 $

023425 42.017

024318 42.017

$ 665,553

The grants and contributions includes contributions from the Jackson County Board ofCounty Commissioners in the amount of $27,405 for in-kind services related to salaries andbenefits paid on behalf of the Organization and $7,300 in direct contributions.

$$$

024351N/A

42.O17N/A

503,661

36,093

13,525

72,834

35,7233 717

024087 42.017

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INDEPENDENT ACCOUNTANT'S EXAMINATION REPORT

Gnnvrsr,ny, Crvnv & CottærNy, P.A.Crnrrrreo PueLrc AccoururRrurs

Owrrv W. GRTMSLEY, C.P.A.

DALE L. CAVIN, C.P.A.

June 12,2018Marianna, Florida

MEMBERS

FLoRTDA lN5ïTUTE AND

AMERTcAN lNSÍTUTE oF

CERTTFTED PuBLrc AccouNTANTs

INDEPENDENT ACCOUNTANT'S EXAMINATION REPORT

Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida 32448

We have examined the compliance of Jackson Soil and Water Conservation District with Section218.415, Florida Statutes for the year ended September 30, 2017. Management is responsiblefor the District's compliance with those requirements. Our responsibility is to express an opinionon the District's compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by theAmerican lnstitute of Certified Public Accountants. Those standards require that we plan andperform the examination to obtain reasonable assurance about whether the District complied withSection 218.415, Florida Statutes in all material respects. An examination involves performingprocedures to obtain evidence about whether the District complied with the specifiedrequirements. The nature, timing, and extent of the procedures selected depend on ourjudgement, including an assessment of the risks of material noncompliance, whether due to fraudor error. We believe that the evidence we obtained is sufficient and appropriate to provide areasonable basis for our opinion.

Our examination does not provide a legal determination on the District's compliance with specifiedrequirements.

ln our opinion, Jackson Soil and Water Conservation District, complied, in all material respects,with the requirements of Section 218.415, Florida Statutes for the year ended September 30,2017 '

girnsîE, cøvin fi conpa*y

Grimsley, Cavin & Company, P.ACertified Public Accountants

Post Office Box 220 o 4243 Lafayette Street . Marianna, Florida 32447 -0220 o 850-526-39 l0 o FAX 850-482-6019

12

INDEPENDENT AUDITOR'S REPORTREQUIRED BY GOVERNMENT AUDITING SIANDARDS

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNM ENT AU DITI NG SIANDARDS

Gnnvrsr,nv, Cavnq & ConærNy, P.A.CeRrrne o PueLrc AccoururRrurs

OWEN W. GRIMSLEY, C.P.A.

DALE L. CAVIN, C.P.A.

MEMBERS

Ft-oR¡o¡ ltt¡st¡tutt ¡ruo

AMERTcAN lNSïTUTE oF

C¡nïneo Pueuc AccouNTANTs

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOV ERN M ENT AU D ITI N G STAN DARDS

Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida

We have audited, in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States, the financial statements of thegovernmental activities and majorfund of Jackson Soil and Water Conservation District, as of andfor the year ended September 30, 2017, and the related notes to the financial statements, whichcollectively comprise Jackson Soil and Water Conservation District's basic financial statementsand have issued our report thereon dated June 12,2018.

lnternal Control over Financial Reporting

ln planning and performing our audit of the financial statements, we considered Jackson Soil andWater Conservation District's internal control over financial reporting (internal control) todetermine the audit procedures that are appropriate in the circumstances for the purpose ofexpressing our opinions on the financial statements, but not for the purpose of expressing anopinion on the effectiveness of Jackson Soil and Water Conservation District's internal control.Accordingly, we do not express an opinion on the effectiveness of Jackson Soil and WaterConservation District's internal control.

Our consideration of internal control was for the limited purpose described in the precedingparagraph and was not designed to identify all deficiencies in internal control that might bematerial weaknesses or significant deficiencies and therefore, materialweaknesses or significantdeficiencies may exist that were not identified. However, as described in the accompanyingschedule of findings, we identified certain deficiencies in internal control that we consider to bematerial weaknesses and significant deficiencies.

A deficiency in internal controlexists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, misstatements on a timely basis. A material weakness is adeficiency, or a combination of deficiencies, in internal control such that there is a reasonable

Post Office Box 220 o 4243 Lafayette Street . Marianna, Florida 32441-0220 o 850-526-3910 o FAX 850-482-6019

13

Board of DirectorsJackson Soil and Water Conservation DistrictPage 2

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 described in theaccompanying schedule of findings as item 07-001 to be a material weakness.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that isless severe than a material weakness, yet important enough to merit attention by those chargedwith governance. We consider the deficiencies described in the accompanying schedule offindings as item 06-001 to be a significant deficiency.

Gompliance and Other Matters

As part of obtaining reasonable assurance about whether Jackson Soil and Water ConservationDistrict's financial statements are free from material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements,noncompliance with which could have a direct and materialeffect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisions was notan objective of our audit, and accordingly, we do not express such an opinion. The results of ourtests disclosed instances of noncompliance or other matters that are required to be reported underGovernment Audíting Standards and which are described in the accompanying schedule offindings as item 06-002.

Jackson Soil and Water Gonservation District

Jackson Soil and Water Conservation District's response to the findings identified in our audit isdescribed in the section of this report titled Response to Audit Findings. Jackson Soil and WaterConservation District's response was no subjected to the auditing procedures applied in the auditof 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 andcompliance and the results of that testing, and not to provide an opinion on the effectiveness ofthe entity's internal control or on compliance. This report is an integral part of an audit performedin accordance with Government Auditing Standards in considering the entity's internal control andcompliance. Accordingly, this communication is not suitable for any other purpose.

ç/hßb, Cavin &Companl


Grimsley, Cavin & Company, P.ACertified Public Accountants

14

SCHEDULE OF FINDINGS

Jackson Soil & Water Conservation DistrictSchedule of FindingsSeptember 30,2017

06-001

Criteria - Custody of assets, record keeping and recording of assets should have adequateseparation.

Condition - Due to the size of the organization, proper separation of duties may not befeasible.

Effect - Controls should be implemented to help compensate for the weaknesses.

Cause - This is a small one-person bookkeeping system

Recommendation - Management should remain very active and involved in the day-to-dayoperations. lt is essential that records be maintained current and up-to-date. Controlsshould be established to provide checks and balances.

06-002

Criteria - Per Florida Statute Chapter 189.016, the Jackson Soil and WaterConservationDistrict is required to adopt a balanced budget by resolution and post the budget on theDistrict's or County's website.

Condition - The Conservation District did not adopt a balanced budget by resolution.

Effect - The Conservation District is in violation of Florida Statutes, Chapter 189.016

Cause - Due to the fact that the Conservation District does not know what state funding theywill receive, they find it difficult to prepare a budget.

Recommendation - The Conservation District should prepare a budget in order to be incompliance with Florida Statute 189.016 and make necessary amendments as the yearprogresses.

15

Jackson Soil & Water Conservation DistrictSchedule of FindingsSeptember 30,2O17

07-001

Criteria - An entity's system of internal control over financial reporting should includecontrols over the prevention, detection and correction of misstatements in the auditedfinancial statements.

Condition - The District relies on the external auditor to assist with preparing and explainingfinancial statements in conformity with generally accepted accounting principles.

Effect - Since the auditor cannot be a part of an entity's system of internal accountingcontrol, the District's system of internal accounting control over the financial reporting is notsufficient, by itself, to prevent, detect or correct misstatements in the audited financialstatements.

Cause - The District has a small accounting staff necessitated by the overall small size ofthe entity. They do not consider it cost effective to develop and maintain a system of internalaccounting control sufficient by itself to allow the preparation of financial statements inaccordance with generally accepted accounting principles, nor to maintain internal staff withsufficient knowledge to develop and maintain controls to prevent, detect or correctmisstatements in audited financial statements.

Recommendation - The District should continue to consider the effects of the cost ofdeveloping and benefits of implementing such a system as compared with understandingthat due to the size of their accounting department, they will continue to need externalassistance with the preparation and understanding of financial statements in accordancewith generally accepted accounting principles.

16

INDEPENDENT AUDITOR'S REPORT TO MANAGEMENTREQUIRED BY THE STATE OF FLORIDA

Gnnvrsrnv, Cavnv & Cottpr¡ty, Pá..C¡Rrrn Eo PueLrc Accou rurnrrrrs

OwEru W. GRIMSLEY, C.P.A.

DALE L. Cnvr¡r, C.P.A.

MEMBERS

Fronroa l¡¡srrrure ¡ruo

AMERtcAN INS1TUTE oF

CERTTFtED PuBuc AccouNTANTS

Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida

Report on the Financial Statements

We have audited the financial statements of the Jackson Soil and Water Conservation District, asof and for the fiscal year ended September 30, 2017, and have issued our report thereon datedJune 12,2018.

Auditor's Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules ofthe Auditor General.

Other Reporting Requirements

We have issued our lndependent Auditor's Report on lnternal Control over Financial Reportingand Compliance and Other Matters Based on an Audit of the Financial Statements Performed inAccordance with Government Auditing Standardç; Schedule of Findings; and IndependentAccountant's Report on an examination conducted in accordance with AICPA ProfessionalStandards, AT-C Section 315, regarding compliance requirements in accordance withChapter10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are datedJune 12,2018, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1XiX., Rules of the Auditor General, requires that we determine whether or notcorrective actions have been taken to address findings and recommendations made in thepreceding annual financial audit report. Corrective actions have been taken to address findingsand recommendations made in the preceding annualfinancialaudit report except as noted belowunder the heading Prior Year Findings and Recommendations.

Post Office Box 220 o 4243 Lafayette Street . Marianna, Florida 32447-0220 o 850-526-3910 o FAX 850-482-6019

17


The management letter items are as follows:

The Schedule of Findings items are as follows:

Tabulation of Unconected Audit FindingsCurrent

YearFinding #

2015-16 FYFindins #

2014-15 FYFindins #

06-001 06-001 06-00106-002 06-002 06-00207-001 07-001 07-001

Official Title and Legal Authority

Section 10.554(1Xi)4., Rules of the Auditor General, requires that the name or official titleand legal authority for the primary government and each component unit of the reportingentity be disclosed in the management letter, unless disclosed in the notes to the financialstatements. This information is disclosed in the notes to the financial statements.

Financial Condition and Management

Section 10.554(1)(i)s.a. and 10.556(7), Rules of the Auditor General, require us to applyappropriate procedures and communicate the results of our determination as to whether ornot the Jackson Soil and Water Conservation District has met one or more of the conditionsdescribed in Section 218.503(1), Florida Statutes, and to identify the specific condition(s)met . ln connection with our audit, we determíned that the Jackson Soil and WaterConservation District did not meet any of the conditions described in Section 218.503(1),Florida Statutes.

Pursuant to Section 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we appliedfinancial condition assessment procedures for the Jackson Soil and Water ConservatíonDistrict lt is management's responsibility to monitor the Jackson Soil and WaterConservation District's financial condition, and our financial condition assessment wasbased in part on representations made by management and the review of financialinformation provided by same.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate anyrecommendations to improve financial management. See items below under Prior YearFindings for our recommendations.

Tabulation of Uncorrected Audit FindingsCurrent Year

Findino #2015-16 FY

Findinq #2014-15 FY

Finding #14-001 14-001 14-OO1

1B


Annual Financial Report

Section 10.554(1 Xi)5.b. and 10.556(7), Rules of the Auditor General, require us to applyappropriate procedures and communicate the results of our determination as to whetherthe annual financial report for the Jackson Soil and Water Conservation District for thefiscal year ended September 30, 2017, filed with the Florida Department of FinancialServices pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with theannual financial audit report for the fiscal year ended September 30, 2017. In connectionwith our audit, we determined that these two reports were in agreement.

Additional Matters

Section 10.554(1Xi)3., Rules of the Auditor General, require us to communicatenoncompliance with provisions of contracts or grant agreements, or abuse, that haveoccurred, or are likely to have occurred, that have an effect on the financial statementsthat is less than material warrants the attention of those charged with governance. lnconnection 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 LegislativeAuditing committee, members of the Florida Senate and the Florida House ofRepresentatives, the Florida Auditor General, Federal and other granting agencies, theCity Council, and applicable management, and is not intended to be and should not beused by anyone other than these specified parties.

Prior Year Findinqs

14-001: lt was noted during the audit that a board member does not approve invoicesprior to payment. lt is recommended that a member of the board of directors review andapprove invoices prior to their payment to insure proper internal controls are in place. Thisitem remains.

Current Year Findinqs

None.

Çrfuub, Cavin &Conparcy


Grimsley, Cavin & Company, P.A.Certified Public Accountant

19

RESPONSE TO AUDIT FINDINGS

Jackson Soil & Water Consenration District>74t Penn. Avenue5uite 7Marianna, FLZ>++BPh (B5o) 37>-+793Fax (B5o) +8>-795>

June t>., zotB

6rimsley, Cavin & Company, P.A.

P.O. Box >zoMarianna, FLZ>++l

Re: Audit for Fiscal Year Ended September 3ot zo17

To Whom lt May (oncern

This letter is in response to the audit findings for the above referenced period for theJacl<son Soil and Water (onservation District. We have listed beloW our responses tothe findings noted by your Company.

r) Regarding S<hedule of Findings, ltem oó-oo'r: The District will continue to malceevery effort to separàte the record lceeping duties from the custody of assets as

much as possible with our small administrative staff The board will maintain ana<t¡ve role in the day-to-day operations.

z) Regarding Schedule of Findings, ltem oó-ooz: The District did adopt a budgetand shall remember to amend the budget as additional funding is received. Wewill subsequently file it with the Jackson (ounty Clerl< of (ourts in a timelymanner for the upcoming fiscal year.

3) Regarding Schedule of Findings, ltem o7-oo1: The District considers the cost ofmaintaining ð system of internal control to be prohibitive. The small size of theentity, as well às the minimal number of staff, precludes the establishment ofsuch a system.

Sincerely,

þ ¿N;,,#B.E. Davis, Jr.(hairmanJacl<son Soil and Water Conservation District

BD/la

20

Mack Glass – Group 1 * Greg Hall – Group 2 * Tom Stadsklev – Group 3 * Steve Basford – Group 4 * B. E. Davis, Jr. – Group 5




Office: 850-372-4793 | FAX: 850-482-7952

September 20, 2018

Auditor General

State of Florida

401 Claude Pepper Building

111 West Madison Street

Tallahassee, Florida 32399-1450

Re: Audit for Fiscal Year 2016 – 2017

This letter is in response to the audit finding for the above referenced period for the Jackson Soil

and Water Conservation District. We have listed below, our response to the finding noted by your

Agency:

1) Regarding Schedule of finding, Item 14-001 (page 19 of audit report) – In a Board

Meeting, and in the official minutes of that Board meeting, the Jackson Soil and Water

Conservation District Board members unanimously approved a motion directing the

District Coordinator to pay all invoices for dues / fees / reports / expenses as they are

received. All payments are required to have two (2) Board Member signatures on the

checks written for said payments. The District Coordinator keeps the Board informed

of any, and all expenditures. The Jackson Soil and Water Conservation District Board

maintains an active role in the day to day operations and will continue to do so.

Should you require anything further, please advise.

Respectfully,

B.E. Davis, Jr. - Chairman


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