PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

ANNUAL FINANCIAL REPORT FOR THE FISCAL

YEAR ENDED SEPTEMBER 30, 2014

Davidson, Jamieson & Cristini, P.L. Certified Public Accou11ta11ts

ANNUAL FINANCIAL REPORT

PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

FOR THE

FISCAL YEAR ENDED SEPTEMBER 30, 2014

PREPARED BY THE

OFFICE MANAGER

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PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

BOARD OF FIRE COMMISSIONERS

Julie A. Peluso, Chairman

Norman G. Atherton, Vice Chairman

Debra Buschman, Fire Commissioner

Fire Chief

Craig M. Maciuba

James Nelson, Secretary - Treasurer

Joseph Petrillo, Fire Commissioner

Office Manager/Accountant

Eileen M. Brown

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INTRODUCTORY SECTION

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PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014

TABLE OF CONTENTS

INTRODUCTORY SECTION

Page

Table of Contents ..................................................................... i

Palm Harbor Special Fire Control and Rescue District Organization ............................ iii

Listing of District Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

FINANCIAL SECTION

Independent Auditor's Report ......................................................... 1

Management's Discussion and Analysis ................................................. 4

Basic Financial Statements

Govermnent-Wide Financial Statements:

Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Fund Financial Statements:

Balance Sheet - Govermnental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Reconciliation of the Balance Sheet to the Statement of

Net Position - Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Statement of Revenues, Expenditures, and Changes in Fund Balances -

Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Reconciliation of the Statement of Revenues, Expenditures and Changes

in Fund Balance of the Governmental Funds to the Statement of Activities . . . . . . . . . 19

PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30. 2014

TABLE OF CONTENTS

FINANCIAL SECTION (CONTINUED)

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

Budget and Actual:

Page

General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Statement of Fiduciary Net Position - Fiduciary Fund ............................... 22

Statement of Changes in Fiduciary Net Position - Fiduciary Fund . . . . . . . . . . . . . . . . . . . . . 23

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Other Reports:

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 . . . . . . . . . . . . . . . . . . . 70

Management Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Attestation Letter ........................................................... 75

Memorandum on Review of Internal Control Structure .......................... 76

Management's Response ............................................... 81

II

PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

ORGANIZATIONAL CHART

Seotember 30. 20 I 4

Board of Fire Commissioners

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Fire Chief Department Attorney

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11 Office Manager 11 Deputy Fire Chief Deputy Fire Chief Public Education/ Operations rl Administrative Assistant I I Administrative Assistant ~ Support Services ,._ Information ()fficcrs

I Administrative Assistant I I I A Shift B Shift C Shift I

District Chief District Chief District Chief

I I I Training EMS Officer/Safety Fire Marshal Lieutenants ( 4) Lieutenants (4) Lieutenants ( 4) I

Firefighters (13) Firefighters ( 13) Firefighters (13)

I Fire Prevention Officer I EMTs/Paramedics EMT sf Paramedics EMTs/Paramedics

iii

PALM HARBOR SPECIAL FIRE CONTROL AND RESCUE DISTRICT

LISTING OF DISTRICT OFFICIALS

Commissioner

Commissioner

Commissioner

Commissioner

Commissioner

Fire Chief

Attorney

ELECTED OFFICIALS

APPOINTED OFFICIALS

DISTRICT OFFICERS

Julie A. Peluso

Norman G. Atherton

James P. Nelson

Joseph Petrillo

Debra Buschman

Craig M. Maciuba

Andrew J. Salzman

Chad Pittman, Deputy Fire Chief Operations

Timothy Pilson, Training Chief

Robert Mark ford, Deputy Fire Chief Support Services

Frank Lowman, Acting Fire Marshall

Thomas Fritz, District Chief

Scott Sanford, District Chief

Daniel Zinge, District Chief

IV

FINANCIAL SECTION

This section contains the following subsections:

Independent Auditor's Report

Management's Discussion and Analysis

Basic Financial Statements

Notes to Financial Statements

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INDEPENDENT AUDITOR'S REPORT

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Davidson, Jamieson & Cristini, P.L.

Members of the Finn John N. Davidson, CPA, CV A

Harry B. Jamieson, CPA Richard A. Cristini, CPA, CPPT, CGFM

Jeanine L. Bittinger, CPA, CPPT

Board of Fire Commissioners

Certified Public Accountants 1956 Bayshore Boulevard

Dunedin, Florida 34698-2503 (727)734-5437 or 736-0771

FAX (727) 733-3487

Palm Harbor Special Fire Control and Rescue District Palm Harbor, Florida

Member American Institute of

Certified Public Accountants Florida Institute of

Certified Public Accountants

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying financial statements of the governmental activities, each major fund, the budgetary comparisons for the general fund, and the aggregate remaining fund information of Palm Harbor Special Fire Control and Rescue District as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the AICP A Professional Standards, at Sections 601.55 and 601.56. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

Board of Fire Commissioners Palm Harbor Special Fire Control and Rescue District

Palm Harbor, Florida

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Palm Harbor Special