9001-9078

Capital Assets

Land and improvements Construction in progress Infrastructure Buildings and improvements Equipment Total Less accumulated depreciation Total

Governmental Business-type Activities Activities 6,249,613$ 5,403,338$ 2,502,952 -45,224,218 -17,513,934 -16,873,644 2,413,628 88,364,361 7,816,966 (23,683,950) (6,161,963) $64,680,411 1,655,003$

2010 $ 11,652,951 $ 2,502,952 45,224,218 17,513,934 19,287,272 96,181,327 (29,845,913) 66,335,414 Totals

2009 9,709,340 8,699,991 37,322,851 16,670,236 18,780,140 91,182,558 27,192,797) 63,989,762

DEBT MANAGEMENT

Government Activities Debt

REQUIRED SUPPLEMENTARY INFORMATION

General Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 59

Road and Bridge Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 60

SUWANNEE COUNTY, FLORIDA

ANNUAL FINANCIAL REPORTFor the Fiscal Year Ended September 30, 2010T A B L E O F C O N T E N T S -continued

PAGE NO.

Fine and Forfeiture Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 61

Library Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 62

Recreation Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 63

Clerk of the Circuit Court Operating Fund - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 64

Sheriff Operating Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 65 - 66

Reserve Capital Infrastructure Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 67

Road and Bridge Construction Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 68

COMBINING STATEMENTS

Nonmajor Governmental Funds - Combining Balance Sheet 70 - 71

Nonmajor Governmental Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 72 - 73

SINGLE AUDIT AND COMPLIANCE SECTION

Independent Auditor's Report on Internal Control Over Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 75 - 76

Independent Auditor’s Report on Compliance and Internal Control over Compliance Applicable to Each Major Federal Awards Program and State Financial Assistance Report 77 - 78

Schedule of Expenditures of Federal Awards and State Financial Assistance 79 - 81

SUWANNEE COUNTY, FLORIDA
ANNUAL FINANCI AL REPORT
For the Fiscal Year Ended September 30, 2010
T A B L E	O F	C O N T E N T S – continued
PAGE NO.
Notes to Schedule of Expenditures of Federal Awards and
State Financial Assistance			82
Schedule of Findings			83 - 84
Management Letter			85 - 88

INTRODUCTORY SECTION

SUWANNEE COUNTY, FLORIDA

LIST OF PRINCIPAL OFFICIALS
September 30, 2010

Title	Name__________
Board of County Commissioners
District I	Jesse Caruthers
District II	Douglas M. Udell
District III	Ivie Fowler
District IV	Billy C. Maxwell
District V	Wesley Wainwright
Clerk of the Circuit Court	Barry A. Baker
Property Appraiser	Lamar Jenkins
Sheriff	Tony Cameron
Supervisor of Elections	Glenda B. Williams
Tax Collector	Sharon W. Jordan

COUNTY-WIDE FINANCIAL REPORT

Honorable Board of County Commissioners and Constitutional Officers Suwannee County, Florida

We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of Suwannee County, Florida (the County), as of and for the year ended September 30, 2010, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County’s management. 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 standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of Suwannee County, Florida, as of September 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof, for the year then ended in conformity with accounting principles generall y accepted in the United States of America.

In accordance with Government Auditing Standards , we have also issued a report dated April 13, 2011, on our consideration of the County’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The budgetary comparison information presented for the general fund and the other major governmental funds is not a required part of the basic financial statements of the County, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

The Management’s Discussion and Analysis on pages 10 through 17 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information identified in the table of contents as combining statements is presente d for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance is also presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations , and Chapter 10.650, Rules of the Auditor General, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

POWELL & JONES

Certified Public Accountants April 13, 2011

SUWANNEE COUNTY, FLORIDA

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2010

The County management’s discussion and analysis presents an overview of the County’s financial activities for the fiscal year ended September 30, 2010. The analysis provides summary financial information for the County and should be read in conjunction with the County’s financial statements.

The County has implemented Governmental Accounting Standards Board (GASB) Statement 34,

Basic Financial Statements -and Management’s Discussion and Analysis -for State and Local Governments . This statement requires governmental entities to report finances in accordance with specific guidelines. Among those guidelines are the components of this section dealing with management’s discussion and analysis.

Its intent is to provide a brief, objective, and easily readable analysis of the County’s financial performance for the year and its financial position at fiscal year ended September 30, 2010.

One of the key changes in financial presentation is the requirement to capitalize infrastructure assets and record depreciation. Consequently, significant changes have resulted in the reporting of fixed assets, long term liabilities, and fund balances.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The County’s basic financial statements consist of : 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The Government -wide financial statements present an overall picture of the County’s financial position and results of operations. The Fund financial statements present financial information for the County’s major funds. The Notes to the financial statements provide additional information concerning the County’s finances that are not disclosed in the government -wide or fund financial statements.

Governm ent-wide financial statements

The government -wide financial statements consist of the statement of net assets and the statement of activities , and are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private-sector business. Emphasis is placed on the net assets of governmental activities and business -type activities and the change in net assets. Governmental activities are primarily supported by property taxes, sales and use taxes, federal and state grants, and state shared revenues. Business -type activities are supported by charges to the users of those activities.

The statement of net assets presents information on all assets and liabilities of the County, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. Net assets are reported in three categories: 1) invested in capital assets, net of related debt, 2) restricted, and 3) unrestricted. Assets, liabilities, and net assets are reported for all Governmental Activities separate from those of business -type activities.

The statement of activities presents information on all revenues and expenses of the County and the change in net assets. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the County. To assist in understanding the County’s operations, expenses have been reported as governmental activities or business -type activities. Governmental activities financed by the County include public safety, physical environment, transportation, economic environment, human services, culture and recreation, and general government services. Business -type activities financed by user charges include the solid waste collection and disposal operations.

Fund financial statements

A fund is a separate accounting entity with a self-balancing set of accounts, and is used to maintain control over resources that have been segregated for specific activities or objectives in accordance with special regulations, restrictions, or limitations. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

Proprietary fund financial statements provide information on all assets and liabilities of the fund, changes in the economic resources (revenues and expenses), and total economic resources.

Fund financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances -budget and actual , is provided for the County’s general fund and major special revenue, capital projects, and debt service funds. For the proprietary funds, which includes business -type activities, a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows are presented. A combining statement of fiduciary net assets is presented for the County’s agency funds.

Fund financial statements provide more detailed information about the County’s activities. Individual funds are established by the County to track revenues that are restricted to certain uses, comply with legal requirements, or account for the use of state and federal grants.

The government -wide financial statements and the fund financial statements provide different pictures of the County. The government -wide financial statements provide an overall picture of the County’s financial standing, split between governmental activities and business -type activities. These statements are comparable to private-sector companies and give a good understanding of the County’s overall financial health and how the County paid for the various activities, or functions, provided by the County. All assets of the County, including buildings, land, roads, and bridges and reported in the statement of net assets . All liabilities, including principal outstanding on bonds, landfill closure liabilities, and future employee benefits obligated but not paid by the County, are included. The statement of activities includes depreciation on all long lived assets of the County, but transact ions between the different functions of the County have been eliminated in order to avoid “doubling up” the revenues and expenses.

The fund financial statements provide a picture of the major funds of the County and a column for all non-major funds. In the case of governmental activities, outlays for long lived assets are reported as expenditures, and long-term liabilities are not included in the fund financial statements. To provide a link from the fund financial statements to the government -wide financial statements , a reconciliation is provided from the fund financial statements to the government wide financial statements .

Notes to the financial statements

The notes to the financial statements provide additional detail concerning the financial activities and financial balances of the County. Additional information about the accounting practices of the County, investments of the County, long-term debt, and pension plan are some of the items included in the notes to the financial statements.

FINANCIA L HIGHLIGHTS

Total assets of the County exceeded total liabilities by $89,542,231 (net assets). Unrestricted net assets for governmental activities were $15,993,841 , and for business -type activities were $(1,961,187). Governmental Activities restricted net assets were $8,319,331, and were $1,543,972 for Business -type Activities.

Total net assets increased by $4,726,477 . Of that amount, $4,198,608 is attributable to Governmental Activities and $527,869 , is attributable to Business -type Activities.

Governmental Activities revenues decreased $4,717,231 to $37,186,964 . This 11.3% decrease in revenue was due primarily to decreased capital grants received during the year. Governmental expenses increased by $150,567 to $32,988,356 . This increase in expense of less than 1% was primarily due to general inflationary increases.

Business -type activities revenues decreased 11% to $3,015,206 , while business -type expenses decreased 3% to $2,487,337 . This was primarily attributable to decreases in recognition of closure and postclosure costs.

FINANCIAL ANALYSIS OF THE COUNTY

As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. At September 30, 2010, the assets of the County exceed liabilities by $89,542,231 .

The following schedule provides a summary of the assets, liabilities, and net assets of the county.

Governmental Business-type Total Government Activities Activities 2010 2009

Assets

Current assets $ 28,657,393 $ 2,023,518 $ 30,680,911 $ 30,124,051

Restricted assets	-	1,543,972	1,543,972	1,521,138
Non-current assets	64,680,411	1,655,003	66,335,414	63,989,762
Total assets	93,337,804	5,222,493	98,560,297	95,634,951
Liabilities Current liabilities (payable from current assets) Current liabilities (payable from restricted assets) Non-current liabilities Total liabilities	2,715,112 -2,318,249 5,033,361	190,097 235,540 3,559,068 3,984,705	2,905,209 235,540 5,877,317 9,018,066	3,696,270 347,115 10,821,132 14,864,517
Net Assets
Net assets, invested in capital assets, net of related debt Net assets - restricted Net assets - unrestricted	63,991,271 8,319,331 15,993,841	1,655,003 1,543,972 (1,961,187)	65,646,274 9,863,303 14,032,654	62,386,369 21,424,540 (3,040,475)

Total Net Assets $ 88,304,443 $ 1,237,788 $ 89,542,231 $ 80,770,434

73% of the County’s net assets reflect its investment in capital assets (land, buildings, infrastructure, and equipment), less any related outstanding debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional 11% of the County’s net assets represent resources that are dedicated or subject to restrictions on how they may be used. Certain of these assets have only been restricted by action of the Board of County Commissioners and are subject to reclassification to unrestricted net assets as required. The remaining balance of unrestricted net assets $14,032,654 may be used to meet the government’s ongoing obligations to citizens and creditors.

The following schedule provides a summary of the changes in net assets. The increase in Governmental Activities net assets is due primarily to the Small County Road Assistance and County Incentive Grant Programs received from FDOT for road projects which have been capitalized. The Business -type Activities net assets basically stayed the same for the year.

Changes in Net Assets

Governmental		Business-type	Total Government
Activities		Activities	2010 2009
Revenues:
Program Revenues
Charges for services	$6,248,430	$2,910,642	9,159,072$ $ 8,772,042
Operating grants/
contributions	2,601,313	78,787	2,680,100 2,801,079
Capital grants/
contributions	1,775,684	-	1,775,684 8,505,692
General Revenues
Property taxes	11,845,379	-	11,845,379 12,261,466
Sales and use taxes	4,950,312	-	4,950,312 5,075,002
Communications surtax	274,887	-	274,887 397,119
State shared revenues	7,378,430	-	7,378,430 5,524,224
Interest	146,028	25,777	171,805 283,823
Other	1,966,501	-	1,966,501 1,665,827
Total Revenues	37,186,964	3,015,206	40,202,170$ 45,286,274
Expenses:
General government	6,785,354	-	6,785,354 7,814,352
Public safety	11,390,808	-	11,390,808 10,511,541
Physical environment	494,193	2,487,337	2,981,530 3,120,495
Transportation	7,024,619	-	7,024,619 6,681,373
Economic environment	501,982	-	501,982 401,583
Human services	1,233,159	-	1,233,159 1,286,850
Culture/recreation	3,769,672	-	3,769,672 3,767,634
Court related	1,747,050	-	1,747,050 1,745,713
Interest on long-term debt	41,519	-	41,519 72,524
Total Expenses	32,988,356	2,487,337	35,475,693 35,402,065
Increase in
net assets	$4,198,608	527,869$	4,726,477$ $9,884,209

Property taxes provide 29% of the revenues for Governmental Activities, while sales taxes provide 12%. Most of the Governmental Activities resources are spent for Public Safety (32%), General Government (19%), Transportation (20%), and Culture/Recreation (11%).

FUND FINANCIAL INFORMATION

Governmental Funds

General Fund

The County’s General Fund is the main operating fund of the County. It is used to account for all financial resources that are not restricted by State or Federal laws, County Ordinances or other externally imposed requirements. As of September 30, 2010, total assets were $13,681,631 and total liabilities were $743,628 . The ending fund balance was $12,938,003 , $4,618,672 of which is undesignated and unreserved. Fund balance decreased by $(846,717) during the year.

In the year ended September 30, 2010, total revenue, $11,797,512 , exceeded total expenditures, $7,623,140, by $4,174,372. A net of $5,021,089 was also transferred to other funds for operational and capital related purposes. The net increase in the fund balance in the General Fund was therefore, $(846,717).

During the fiscal year, the County amended the General Fund budget by $1,318,545 , to adjust for normal revenue and expenditure fluctuations during the course of the year in variance with the original approved budget. The County budgeted ad valorem taxes at 95% of the total tax levy, as allowed by State law; actual collections were 96%. Other revenues were approximately the same as the prior year.

Other Governmental Funds

The Road and Bridge (Transportation) Fund accounts for motor fuel taxes designated for the annual maintenance of roads, bridges, right-of-way, drainage systems, etc. The County has the legal authority to levy ad valorem taxes for the Transportation Fund, but has elected not to do so. As of September 30, 2010, expenditures and transfers were exceeded by revenues in the amount of $(63,225) . The ending fund balance was $1,259,652 .

The Fine and Forfeiture Fund accounts for expenditures relating to the judicial system and the funding of the operations of the Sheriff, a separate Constitutional Officer. Financing is provided by ad valorem and local option sales taxes, state shared revenues, and current related fines and fees. For the fiscal year ended September 30, 2010, expenditures and transfers were exceeded by revenues by $411,486 , increasing the fund balance to $923,583 .

The Library Fund accounts for expenditures relating to the operation of the Suwannee River Regional Library System, which includes the County library services. Financing is provided by state and local governmen t grants and library related fees. For the fiscal year ended September 30, 2010, revenues exceeded expenditures by $256,861.

The Clerk Court Related Fund is the general operating fund of the Clerk of the Circuit Court, a Constitutional Officer. The primary source of funds are various court related fees and service charges. Expenditures for the year were $938,117 , all of which were funded by operating revenues.

The Sheriff General Fund is the operating fund of the Sheriff, a Constitutional Officer. The primary source of funds are transfers from the Board of County Commissioners Fine and Forfeiture Fund. Expenditures totaled $7,496,108 for the year and by law this fund has no ending fund balance.

The Reserve Capital Infrastructure Fund is a capital projects fund established by the County to fund future infrastructure improvements. It was funded by an equity transfer from the former Hospital Investment Fund. Its only outlay for the year was a transfer of $130,000 to the General Fund, leaving an ending fund balance of $4,478,038 .

The Road and Bridge Construction Fund is a capital projects fund established by the County to fund road improvement projects throughout the County. It is funded by County-levied fuel taxes and had an ending fund balance of $2,902,729 .

The Recreation Fund accounts for the County’s various recreation programs. It is funded by service charges and transfers from other funds and governments. It had an ending fund balance of $264,723 at year end.

Proprietary Funds

The Solid Waste Collection Fund accounts for the revenues, expenses, assets, and liabilities associated with the County-operated solid waste collection service provided to residential and commercial customers within the County. This is operated like a business where the rates established by the County generate sufficient funds to pay the costs of current operations and provide for the accumulation of funding for capital asset acquisitions. Total assets as of September 30, 2010, were $2,602,685, total liabilities were $94,062, and net assets were $2,508,623 . Total income was $1,284,401. The net income for the year was $181,632 .

The Solid Waste Disposal Fund accounts for the revenues, expenses, assets, and liabilities associated with the County operated solid waste disposal services. This fund is substantially financed by tippage fees and special assessments charged to users of the services. Total assets as of September 30, 2010, were $2,619,808, total liabilities were $3,890,643, and net assets were a deficit of $1,270,835. Total income was $1,730,805.

CAPITAL ASSETS ACTIVITY

The County’s capital assets for its governmental and business -type activities as of September 30, 2010, is $66,335,414 (net of accumulated depreciation). This investment in capital assets includes land, buildings, equipment, infrastructure, and construction in progress, net of depreciation. In previous years, general fixed assets were recorded at cost or fair market value at the time of acquisition. Depreciation was not recognized for governmental activities.

The most significant change in capital assets during the fiscal year was the completion of various road and other capital projects.

The following schedule provides a summary of the County’s capital assets activity for the year ended September 30, 2010: A total of $914,253 in principal reductions were made of on governmental activities debt, leaving the following balances at September 30, 2010:

2010 2009 Revenue notes $ 609,140 $ 1,513,393 Bank notes 80,000 90,000 $ 689,140 $ 1,603,393

OTHER FINANCIAL INFORMATION

Economic Factors and Next Year’s Budget

The current unemployment rate for the County, was 9.8%. This was a decrease from the prior fiscal year.

The official estimated population for the County in 2010 was 41,550, and is estimated to be 45,000 by the end of 2015.

The ad valorem tax millage rate for the County was 8.0 mills in 2010, which was the same as the prior year.

REQUEST FOR INFORMATION

This financial report is designed to present users with a general overview of the County’s finances and to demonstrate the County’s accountability. Questions concerning this report or requests for additional information should be addressed to the Clerk of the Circuit Court, 200 S. Ohio Ave., Live Oak, Florida 32064, or by calling (386) 362-0508.

BASIC FINANCIAL STATEMENTS

SUWANNEE COUNTY, FLORIDA

STATEMENT OF NET ASSETS September 30, 2010

Governmental Business - type Activities Activities Total ASSETS

Current assets: Cash and cash equivalents $ 20,328,389 $ 1,897,630 $ 22,226,019 Accounts receivable - net 194,021 63,755 257,776 Due from other funds 21,526 6,734 28,260 Due from other governmental units 1,210,382 55,399 1,265,781 Prepaid expenses 3,638 -3,638 Investments 6,899,437 -6,899,437

Total current assets 28,657,393 2,023,518 30,680,911

Restricted assets: Investments -1,543,972 1,543,972 Total restricted assets -1,543,972 1,543,972

Noncurrent assets: Capital assets - net 64,680,411 1,655,003 66,335,414 Total assets $ 93,337,804 $ 5,222,493 $ 98,560,297

LIABILITIES

Current liabilities (payable from current assets): Accounts payable $ 896,963 $ 71,432 $ 968,395 Accrued salaries 275,217 16,800 292,017 Accrued liabilities 211,443 -211,443 Accrued interest payable 8,681 -8,681 Due to other funds 203 6,734 6,937 Due to other governmental units 271,532 -271,532 Deferred revenues 164,125 -164,125 Deposits -91,770 91,770 Accrued compensated absences 195,500 3,361 198,861 Current portion notes payable 480,590 -480,590 Current portion revenue notes payable 138,550 -138,550 Other current liabilities 72,308 -72,308

Total current liabilities (payable from current assets) 2,715,112 190,097 2,905,209

Current liabilities (payable from restricted assets) Landfill postclosure costs -235,540 235,540

Total current liabilities ( payable from restricted assets) -235,540 235,540

Noncurrent liabilities Accrued compensated absences 2,248,249 44,654 2,292,903 Landfill post-closure costs -3,514,414 3,514,414 Notes payable 70,000 -70,000

Total long-term liabilities 2,318,249 3,559,068 5,877,317 Total liabilities 5,033,361 3,984,705 9,018,066 (Continued) See notes to financial statements.

See notes to financial statements.

SUWANNEE COUNTY, FLORIDA

STATEMENT OF NET ASSETS September 30, 2010

Governmental Business - type Activities Activities Total

NET ASSETS Invested in capital assets, net of related debt $ 63,991,271 $ 1,655,003 $ 65,646,274

Restricted for: Road projects 2,902,729 -2,902,729 Capital projects 4,800,000 -4,800,000 Other purposes 616,602 -616,602 Landfill closure -1,543,972 1,543,972

Unrestricted 15,993,841 (1,961,187) 14,032,654 Total net assets (deficit) $ 88,304,443 $ 1,237,788 $ 89,542,231

See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended September 30, 2010
Net (Expenses) Revenues and
Program Services Changes in Net Assets
Operating Capital Business
Charges for Grants and Grants and Governmental Type
Expenses			Services Contributions Contributions Activities Activities	Total
Functions/Programs
Governmental Activities
General Government	$	6,785,354	1,286,800$ 9,961$ -$ (5,488,593)$ -$ $	(5,488,593)
Public Safety		11,390,808	1,807,226 995,264 87,237 (8,501,081) -	(8,501,081)
Physical Environment		494,193	73,772 32,213 -(388,208) -	(388,208)
Transportation		7,024,619	588,282 -1,688,447 (4,747,890) -	(4,747,890)
Economic Environment		501,982	2,400 350,000 -(149,582) -	(149,582)
Human Services		1,233,159	---(1,233,159) -	(1,233,159)
Culture/recreation		3,769,672	2,102,101 1,069,867 -(597,704) -	(597,704)
Court related		1,747,050	387,849 144,008 -(1,215,193) -	(1,215,193)
Interest on long-term debt		41,519	---(41,519) -	(41,519)
Total governmental activities		32,988,356	6,248,430 2,601,313 1,775,684 (22,362,929) -	(22,362,929)
Business - type activities
Physical Environment
Landfill		2,487,337	2,910,642 78,787 --502,092	502,092
Total government		35,475,693	9,159,072 2,680,100 1,775,684 (22,362,929) 502,092	(21,860,837)
			General revenues
			Ad valorem taxes 11,845,379 -	11,845,379
			Sales and use taxes 4,950,312 -	4,950,312
			Communications service tax 274,887 -	274,887
			State shared revenue 7,378,430 -	7,378,430
			State payments in lieu of taxes 798 -	798
			Interest 146,028 25,777	171,805
			Gain on disposition of fixed assets 245,000 -	245,000
			Miscellaneous 1,720,703 -	1,720,703
			Total general revenue 26,561,537 25,777	26,587,314
			Change in net assets 4,198,608 527,869	4,726,477
			Net assets - beginning 84,105,835 (3,335,406)	80,770,429
			Prior period adjustment -4,045,325	4,045,325
			Net assets - ending 88,304,443$ 1,237,788$ $	89,542,231
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
GOVERNMENTAL FUNDS
BALANCE SHEET
September 30, 2010
Special Revenue Funds Capital Projects Funds
Clerk of
Circuit Court Reserve Road and							Other	Total
General			Road and		Fine and	Court Sheriff Capital Bridge	Governmental	Governmental
Fund			Bridge		Forfeiture	Library Recreation Related Operating Infrastructure Construction	Funds	Funds
ASSETS
Current assets
Cash $	10,022,799	$	1,130,434	$	730,580	394,433$ 282,237$ 317,685$ 318,723$ 247,674$ 2,816,255$	4,067,569$	20,328,389$
Accounts receivable	189,748		-		-	3 793 2,013 ---	1,464	194,021
Due from other funds	285,854		-		253,382	--2,832 10,383 --	71,729	624,180
Due from other
governmental units	514,157		249,448		37,987	-16,762 9,712 141,442 -86,474	154,400	1,210,382
Prepaid insurance	-		-		-	------	3,638	3,638
Investments	2,669,073		-		-	----4,230,364 -	-	6,899,437
Total assets $	13,681,631	$	1,379,882	$	1,021,949	394,436$ 299,792$ 332,242$ 470,548$ 4,478,038$ 2,902,729$	4,298,800$	29,260,047$
LIABILITIES AND FUND
BALANCES
LIABILITIES
Accounts payable $	420,905	$	57,692	$	60,541	21,782$ 24,204$ 2,516$ 188,395$ -$ -$	120,928$	896,963$
Accrued wages	65,797		62,538		-	37,117 10,865 19,384 ---	79,516	275,217
Other accrued liabilities	210,180		-		-	------	1,263	211,443
Due to other funds	15,841		-		325	--24,745 245,585 --	316,361	602,857
Due to other governmental
units	26,989		-		-	--220,518 ---	24,025	271,532
Revenues collected in
advance	-		-		37,500	---36,568 --	90,057	164,125
Other current liabilities	3,916		-		-	--65,079 ---	3,313	72,308
Total liabilities	743,628		120,230		98,366	58,899 35,069 332,242 470,548 --	635,463	2,494,445
FUND BALANCES
Unreserved fund balance	4,618,672		-		923,583	335,537 216,402 ----	268,797	6,362,991
Reserved fund balance	8,319,331		1,259,652		-	-48,321 --4,478,038 2,902,729	3,394,540	20,402,611
Total fund balances	12,938,003		1,259,652		923,583	335,537 264,723 --4,478,038 2,902,729	3,663,337	26,765,602
Total liabilities and fund
balances $	13,681,631	$	1,379,882	$	1,021,949	394,436$ 299,792$ 332,242$ 470,548$ 4,478,038$ 2,902,729$	4,298,800$
						Amounts reported for governmental activities in the statement of
						net assets are different because:
						Capital assets used in governmental activities are not financial
						resources and, therefore, are not reported in the funds.		64,680,411
						Long-term liabilities, including notes payable of ($689,140)
						compensated absences of ($2,443,749) and accrued interest
						($8,681), are not due and payable in the current period and
						and therefore are not reported in the funds.		(3,141,570)
						reported in the funds.
See notes to financial statements.						Net assets of governmental activities		88,304,443$

SUWANNEE COUNTY, FLORIDA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
For the Fiscal Year Ended September 30, 2010
Special Revenue Funds Capital Projects Funds
Clerk of
Circuit Court Reserve Road and				Other	Total
General			Road and Fine and Court Sheriff Capital Bridge	Governmental	Governmental
Fund			Bridge Forfeiture Library Recreation Related Operating Infrastructure Construction	Funds	Finds
REVENUES
Taxes	$	6,804,346	1,643,657$ 7,542,114$ -$ -$ -$ -$ -$ 980,824$	99,638$	17,070,579$
Licenses and permits		29,149	3,930 -------	177,568	210,647
Intergovernmental		3,590,025	2,754,550 425,250 1,894,896 396,460 1,213,743 538,865 --	1,977,107	12,790,896
Charges for services		485,376	327,021 150,454 90,000 258,947 82,147 7,428 --	1,507,878	2,909,251
Fines and forfeitures		18,014	-108,639 27,182 -----	45,285	199,120
Miscellaneous		827,840	803 47,133 33,554 31,170 1,203 11,479 -147,034	995,683	2,095,899
Interest		42,762	2,581 60 --1,219 5,659 67,577 4,105	22,065	146,028
Total revenues		11,797,512	4,732,542 8,273,650 2,045,632 686,577 1,298,312 563,431 67,577 1,131,963	4,825,224	35,422,420
EXPENDITURES
Current expenditures
General government		3,426,956	--------	3,192,438	6,619,394
Public safety		1,443,715	-417,330 ---7,001,657 --	2,012,703	10,875,405
Physical environment		477,308	--------	-	477,308
Transportation		194,026	4,404,691 ------305	-	4,599,022
Economic environment		199,947	--------	301,831	501,778
Human services		1,233,159	--------	-	1,233,159
Culture / recreation		105,978	--2,693,251 941,728 ----	-	3,740,957
Court related		-	-294,841 --938,117 ---	514,092	1,747,050
Capital outlay
General government		331,432	--------	559,938	891,370
Public safety		141,892	-----494,451 --	668,656	1,304,999
Physical environment		4,042	--------	-	4,042
Transportation		64,685	1,549,123 ------341,390	-	1,955,198
Culture / recreation		-	--21,118 62,762 ----	9,517	93,397
Court related		-	-18,121 ------	10,701	28,822
Debt service
Principal		-	---10,000 ----	904,253	914,253
Interest		-	--------	54,144	54,144
Total expenditures		7,623,140	5,953,814 730,292 2,714,369 1,014,490 938,117 7,496,108 -341,695	8,228,273	35,040,298
Excess of revenues over
expenditures		4,174,372	(1,221,272) 7,543,358 (668,737) (327,913) 360,195 (6,932,677) 67,577 790,268	(3,403,049)	382,122
OTHER FINANCING
SOURCES (USES)
Sale of fixed assets		-	245,000 -------	-	245,000
Interfund transfers in		262,153	913,047 -925,598 531,867 -6,932,677 --	3,506,424	13,071,766
Interfund transfers out		(5,283,242)	-(7,131,872) --(360,195) -(130,000) -	(166,457)	(13,071,766)
Total other financing
sources (uses)		(5,021,089)	1,158,047 (7,131,872) 925,598 531,867 (360,195) 6,932,677 (130,000) -	3,339,967	245,000
Net change in fund
balances		(846,717)	(63,225) 411,486 256,861 203,954 --(62,423) 790,268	(63,082)	627,122
Fund balances at beginning
of year		13,784,720	1,322,877 512,097 78,676 60,769 --4,540,461 2,112,461	3,726,419	26,138,480
Fund balances at end of
year	$	12,938,003	1,259,652$ 923,583$ 335,537$ 264,723$ -$ -$ 4,478,038$ 2,902,729$	3,663,337$	26,765,602$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2010 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. Expenditures for capital assets 4,299,895$ Donation of fixed assets 1,497,477 Less current year depreciation (3,176,278)		$	627,122 2,621,094
Repayments of loan principal and capital lease payments are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets Revenue notes principal payments Notes payable principal payments Some expenses reported in the statement of activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds. Net change in compensated absences Net change in accrued interest	904,253 10,000 23,514 12,625		914,253 36,139
		$	4,198,608

See notes to financial statements. See notes to financial statements.

SUWANNEE COUNTY FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUND TYPES
September 30, 2010
ASSETS Current assets Cash Accounts receivable Allowance for doubtful accounts Due from other funds Due from other governmental units Total current assets		Solid Waste Solid Waste Collection Disposal 1,182,601$ 715,029$ 12,170 63,613 (5,923) (6,105) -6,734 45,078 10,321 1,233,926 789,592 Business Type Activities Enterprise Funds					$	Total 1,897,630 75,783 (12,028) 6,734 55,399 2,023,518
Restricted assets Investments	-				1,543,972			1,543,972
Noncurrent assets Land Buildings and improvements Equipment Allowance for depreciation Total noncurrent assets Total assets			93,575 193,215 1,452,403 3,664,145 1,976,176 437,452 (2,153,395) (4,008,568) 1,368,759 286,244 2,602,685$ 2,619,808$				$	286,790 5,116,548 2,413,628 (6,161,963) 1,655,003 5,222,493
LIABILITIES AND NET ASSETS LIABILITIES Current liabilities (payable from current assets) Accounts payable Wages payable Due to other funds Deposits Accrued compensated absences Total current liabilities (payable from current assets)			33,656$ 37,776$ 12,347 4,453 6,734 -19,976 71,794 1,494 1,867 74,207 115,890				$	71,432 16,800 6,734 91,770 3,361 190,097
Current liabilities (payable from restricted assets) Landfill postclosure costs Total current liabilities ( payable from restricted assets)				--		235,540 235,540		235,540 235,540
(continued)

SUWANNEE COUNTY FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUND TYPES
September 30, 2010
Business Type Activities Enterprise Funds Solid Waste Collection					Solid Waste Disposal		Total
Noncurrent liabilities Accrued compensated absences Estimated liability for landfill closure Total liabilities		19,855$ 24,799$ -3,514,414 19,855 3,539,213 94,062 3,890,643				$	44,654 3,514,414 3,559,068 3,984,705
NET ASSETS (DEFICIT) Invested in capital assets, net of related debt Restricted for reserved for closure liability Unrestricted (deficit) Total net assets (deficit)			1,368,759 -1,139,864 2,508,623	286,244 1,543,972 (3,101,051) (1,270,835)			1,655,003 1,543,972 (1,961,187) 1,237,788
Total liabilities and net assets	2,602,685$ 2,619,808$					$	5,222,493

SUWANNEE COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN NET ASSETS
PROPRIETARY FUND TYPES
For the Fiscal Year Ended September 30, 2010
Business Type Activities
Enterprise Funds
Solid Waste Solid Waste
Collection Disposal		Total
OPERATING REVENUES
Physical environment
State grant 44,874$ 33,913$	$	78,787
Charges for services 86,649 911,606		998,255
Container rental 11,139 -		11,139
Miscellaneous 18,904 80,603		99,507
Total operating revenues 161,566 1,026,122		1,187,688
OPERATING EXPENSES
Garbage and solid waste services
Personal services
Salaries 382,014 77,110		459,124
Employee benefits 157,774 30,923		188,697
Total personal services 539,788 108,033		647,821
Operating expenses
Professional and contractual services 35,700 1,147,143		1,182,843
Communications 9,429 -		9,429
Utility services 15,877 432		16,309
Rental and leases 3,268 -		3,268
Insurance 80,130 8,625		88,755
Repairs and maintenance 103,213 11,022		114,235
Printing 768 -		768
Supplies 100,614 17,435		118,049
Miscellaneous 1,378 1,085		2,463
Depreciation 187,604 90,793		278,397
Total operating expenses 537,981 1,276,535		1,814,516
Total garbage and solid waste
services 1,077,769 1,384,568		2,462,337
Operating loss (916,203) (358,446)		(1,274,649)
NONOPERATING REVENUES (EXPENSES)
Interest 1,576 24,201		25,777
Special assessments 1,121,259 680,482		1,801,741
Tax Collector fees (25,000) -		(25,000)
Total nonoperating revenues (expenses) 1,097,835 704,683		1,802,518
Net income 181,632 346,237		527,869
Net assets beginning of year 2,326,991 (5,662,397)		(3,335,406)
Prior period adjustment -4,045,325		4,045,325
Net assets end of year 2,508,623$ (1,270,835)$	$	1,237,788

SUWANNEE COUNTY, FLORIDA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS

For the Fiscal Year Ended September 30, 2010

Business Type ActivitiesEnterprise FundsSolid SolidWaste Waste

Collection Disposal Fund Fund Totals

CASH FLOWS FROM OPERATING ACTIVITIES Cash received from State grants $ 44,874 $ 33,913 $ 78,787 Cash received from customers and users 313,817 976,199 1,290,016 Cash payments to employees and benefits (540,348) (106,806) (647,154) Cash payments for operating expenses (323,498) (1,413,141) (1,736,639)

Net cash used for operating activities (505,155) (509,835) (1,014,990)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash received from special and service

assessments net of collection fees 1,096,259 680,482 1,776,741 Net cash provided by noncapital financing activities 1,096,259 680,482 1,776,741

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of plant, property and equipment (2,955) -(2,955) Net cash used for capital and related financing activities (2,955) -(2,955)

CASH FLOWS FROM INVESTING ACTIVITIES Interest revenue 1,576 24,201 25,777 Purchase of investments -(22,834) (22,834)

Net cash provided by investing activities 1,576 1,367 2,943 Net increase (decrease)in cash and cash equivalents 589,725 172,014 761,739

Cash and cash equivalents - beginning of year 592,876 543,015 1,135,891 Cash and cash equivalents - end of year $ 1,182,601 $ 715,029 $ 1,897,630

(continued)

SUWANNEE COUNTY, FLORIDA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS

For the Fiscal Year Ended Septembe r 30, 2010

RECONCILIATION OF OPERATING LOSS TO NET CASH USED FOR OPERATING ACTIVITIES

Operating (loss) (916,203) (358,446) (1,274,649)

Adjustments to reconcile operating loss to net cash used for operating activities: Depreciation 187,604 90,793 278,397 Changes in assets and liabilities

Decrease (increase) in: Accounts receivable (1,274) 928 (346) Due from other funds 357 (6,617) (6,260) Due from other governmental units 196,359 (10,321) 186,038

Increase (decrease) in : Accounts payable 20,145 (24,452) (4,307) Wages payable (288) 1,418 1,130 Due to other funds 6,734 (179) 6,555 Deposits 1,683 -1,683 Accrued compensated absences (272) (191) (463) Estimated liability in landfill closure -(202,768) (202,768)

Total adjustments 411,048 (151,389) 259,659

Net cash used for operating activities $ (505,155) $ (509,835) $ (1,014,990)

See notes to financial statements.

SUWANNEE COUNTY, FLORIDA

STATEMENT OF FIDUCIARY NET ASSETS

AGENCY FUNDS September 30, 2010

Board of County Commis-sioners

Clerk of the Circuit Court

Sheriff

Supervisor of Elections

Tax Collector

ASSETS Cash Accounts receivable Due from other funds Due from other governmental units Total assets

$ $

State Attorney 78,545 --50,376 128,921

Domestic Relations -$ 1,735 30 -1,765$

Registry Tax Witness Bond Civil of Court Deed and Jury and Fine Depositors 528,643$ 134,145$ 6,666$ 51,662$ 5,609$ -----70 15 --------528,713$ 134,160$ 6,666$ 51,662$ 5,609$

$ $

Inmate Welfare 79,769 48,266 --128,035

Agency 2,629$ ---2,629$

Ad Valorem Tag Tax Agency 433,507$ 60,800$ 32,627 1,296 28 375 -447 466,162$ 62,918$

$ $

Totals 1,381,975 83,924 518 50,823 1,517,240

LIABILITIES Accounts payable Cash bond liability Due to individuals Deposits held in escrow Due to other funds Due to other governmental units Installments payable Other current liabilities Total liabilities NET ASSETS

$ $

841 ----128,080 --128,921 -

129$ --1,607 29 ---1,765 -$

$ $

--85,920 442,793 ----528,713 -

-$ 100$ ----134,160 ----6,566 ----134,160 6,666 -$ -$

$ $

-51,662 ------51,662 -

$ $

----4,513 --1,096 5,609 -

$ $

--8,472 -10,383 --109,180 128,035 -

-$ ------2,629 2,629 -$

2,132$ 405$ --104,121 1,506 --2,482 4,434 30,209 56,573 327,218 ---466,162 62,918 -$ -$

$ $

3,607 51,662 200,019 578,560 21,841 221,428 327,218 112,905 1,517,240 -

See notes to financial statements.

SUWANNEE COUNTY, FLORIDA

NOTES TO FINANCIAL STATEMENTS

September 30, 2010

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Suwannee County, Florida, (the “County”) is a political subdivision of the State pursuant to Article VIII, Section 1(a) of the Constitution of the State of Florida. The County is governed by the Board of County Commissioners and five elected constitutional officers (Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector) in accordance with state statutes and regulations. The constitutional officers maintain separate accounting records and budgets from the Board of County Commissioners. The Constitution of the State of Florida, Article VIII, Section 1(d) created the constitutional officers and Article VIII, Section 1(e), created the Board of County Commissioners.

The financial statements of the County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the standard -setting body for governmental accounting and financial reporting principles. Pronouncements of the Financial Accounting Standards Board (FASB) issued after November 30, 1989, are not applied in the preparation of the financial statements of the proprietary fund types in accordance with GASB Statement 20. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitut es GAAP for governmental units.

In June, 1999, the Governmental Accounting Standards Board (GASB) unanimously approved Statement 34-Basic Financial Statement and Management ’s Discussion and Analysis -for State and Local Governments. This Statement provided for the most significant change in financial reporting in over twenty years and scheduled a phased implementation (based on the size of government) starting with the fiscal year ending 2002. As part of this statement, there is a new reporting requirem ent regarding the local government ’s infrastructure (roads, bridges, traffic signals, etc.). This requirement permits an optional four-year further delay for implementation of the infrastructure related portion to the fiscal year ending in 2007. The County implemented the basic model in the FY 2002-2003, and implemented the infrastructure related portion in 2007 .

A. Reporting Entity

The concept underlying the definition of the reporting entity is that elected officials are accountable to their constituents for their actions. The reporting entity’s financial statements should allow users to distinguish between the primary government (the Board) and its component units. However, some component units, because of the closeness of their relationships with the Board, should be blended as though they are part of the Board. Otherwise, most component units should be discretely presented. As required by generally accepted accounting principles, the financial reporting entity consists of (1) the primary government (the Board), (2) organizations for which the Board is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the Board are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The Board is financially accountable if it appoints a voting majority of the organization ’s governing body and (a) it is able to impose its will on that organization or (b) there is a potential for the organizati on to provide specific financial benefits to, or impose specific financial burdens on, the Board. The Board may be financially accountable if an organization is fiscally dependent on the Board regardless of whether the organization has (a) separately elected governing board, (b) a governing board appointed by a higher level of government, or (c) a jointly appointed board. Based on these criteria, County management examined all organizations which are legally separate in order to determine which organizations, if any, should be included in the County’s financial statements. Management determined that there are no organizations that should be included in the County’s financial statements as component units.

B. Measurement Focus and Basis of Accounting

The basic financial statements of the County are comprised of the following:

Government -wide financial statements Fund financial statements Notes to the financial statements Required supplementary information

1. Government -wide Financial Statements

Governmen t-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (includin g its blended component units), as well as its discreetly presented component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergover nmental revenues, are reported separately from business -type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable.

Government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and agency fund financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulti ng from nonexchange transactions are recognized in accordance with the requirements of GASB Statement 33 -Accounting and Financial Reporting for Nonexchange Transactions.

Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government ’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government -wide financial statements, rather than as another financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. As applicable, the County also chooses to eliminate the indirect costs between governmental activities to avoid ”doubling up” effect.

2. Fund Financial Statements

The underlying accounting system of the County is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government ’s governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds and individually and nonmajor funds in the aggregate for governmental and enterprise funds. The fiduciary statement includes financial information for the agency fund. The agency funds of the County primarily represent assets held by the County in a custodial capacity for other individuals or governments.

Governmental Funds

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurab le and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Franchise fees, licenses, sales taxes, gas taxes, operating and capital grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable only when cash is received by the County.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be measure of “available spendable resources.” Governmental funds operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Any non-current portions of long-term receivables (special assessments) due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Non-current portions of other long-term receivables are offset by fund balance reserve accounts.

Because of their spending measurement focus, expenditure recognition for governmental fund types exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as another financing source rather than as a fund liability. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Proprietary Funds

The County’s enterprise funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods and services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. The County applies all GASB pronouncements as well as all FASB Statements and Interpretations, APB Opinions and Accounting Research Bulletins, issued on or before November 30, 1989, which do not conflict with or contradict GASB pronouncements.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies, taxes, and investment earnings, result from nonexchange transactions or ancillary activities.

Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than as an expense.

C. Basis of Presentation

GASB Statement 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category and the governmental and enterprise combined) for the determination of major funds. The County has used GASB 34 minimum criteria for major fund determination and has also electively disclosed funds which either had debt outstanding or specific community focus as major funds. The non-major funds are combined in a column in the fund financial statements and detailed in the combining section.

1. Governmental Major Funds:

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

Road and Bridge Fund -The Road and Bridge Fund accounts for expenditures incurred for the maintenance and repairs of County roads. Financing is provided by local option fuel taxes and distributions of state shared fuel taxes.

Fine and Forfeiture Fund -The Fine and Forfeiture Fund accounts for expenditures relating to the judicial system and the funding of the operations of the Sheriff, a separate Constitutional Officer. Financing is provided by ad valorem and local option sales taxes, state share revenues, and current related fines and fees.

Library Fund -The Library Fund accounts for expenditures relating to the operation of the Suwannee River Regional Library System, which includes the County library services. Financing is provided by state and local government grants and library related fees.

Recreation Fund -The Recreation Fund accounts for revenues and expenditures associated with the County’s various recreation programs.

Clerk of Circuit Court Related Fund -The Clerk of Circuit Court Related Fund is the general operating fund of the Clerk of the Circuit Court, a Constitutional Officer. It is used to account for all financial resources and expenditures of the Clerk, except those required to be accounted for in another fund.

Sheriff Operating Fund -The Sheriff Operating Fund is the general operating fund of the Sheriff, a Constitutional Officer. It is used to account for all financial resources and expenditures of the Sheriff, except those required to be accounted for in another fund.

Reserve Capital Infrastructure Fund -The Reserve Capital Infrastructure Fund is a capital projects reserve fund established by the Board to fund future infrastructure improvements. It was funded by an equity transfer from the former Hospital Investment Fund.

Road and Bridge Construction Fund -The Road and Bridge Construction Fund is a capital projects fund established by the Board to fund road and bridge construction and improvements.

2. Proprietary Funds:

Solid Waste Collection Fund -The Solid Waste Collection Fund accounts for the revenues, expenses, assets, and liabilities associated with the County-operated solid waste collection service provided to residential and commercial customers with the County.

Solid Waste Disposal Fund -The Solid Waste Disposal Fund accounts for the revenues, expenses, assets, and liabilities associated with the County operated solid waste disposal services.

3. Non-current Governmental Assets/Liabilities:

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds and capital leases, be reported in the governmental activities column in the government -wide statement of net assets.

D. Assets, Liabilities and Net Assets or Equity

1. Cash and Cash Equivalents

The County maintains a cash pool that is available for use by all funds. Earnings from the pooled cash are allocated to the respective funds based on applicable cash participation by each fund. The cash pool is managed such that all participating funds have the ability to deposit and withdraw cash as if they were demand deposit accounts. Therefore, all balances representing participants ’ equity in the cash pools are classified as cash and cash equivalents for financial statement purposes. In addition, longer-term investments are held by certain of the County’s funds and are reported as investments on these statements.

2. Investments

Investments include bank certificates of deposit, which are fully insured by depository insurance and pledged collateral.

3. Allowance for Doubtful Accounts

The County provides an allowance for Solid Waste Collection and Solid Waste Disposal accounts receivable that may become uncollectible. At September 30, 2010, this allowance was $5,923 for the Solid Waste Collection Fund and $6,105 for the Solid Waste Disposal Fund. No other allowances for doubtful accounts are maintained since other fund accounts receivable are considered collectable as reported at September 30, 2010.

4. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as “internal balances. ”

All receivables are shown net of an allowance for doubtful accounts. Any receivables in excess of 180 days would comprise the trade accounts receivable allowance for doubtful accounts.

5. Inventories

Inventories are valued at cost, which approximates market, using the “first-in, first-out” method of accounting. Supplies inventories of certain governmental funds are recorded as expenditures when consumed rather than when purchased.

6. Restricted Assets

Certain net assets of the County are classified as restricted assets on the statement of net assets because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors, grantors, contributions, or laws or regulations of other governments. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net assets and then from unrestricted net assets.

7. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, right-of-ways, and similar items), are reported in the applicable governmental or business -type activities column in the government -wide financial statements. Capital assets are defined by the Board as assets with an initial, individual cost of $300 or more and an estimated useful life in excess of one year. Except for roads and bridges constructed prior to October 1, 1981, assets are recorded at historical cost. Roads and bridges constructed prior to October 1, 1981 are reported at estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed.

The Board of County Commissioners holds legal title to the capital assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, as is accountable for them under Florida Law.

The Sheriff is accountable for and thus maintains capital asset records pertaining only to equipment used in his operations.

Property, plant, and equipment of the County, as well as component units, are depreciated using the straight -line method over the following estimated useful lives:

Assets Years

Building and improvements 7 - 40 Machinery and equipment 5 - 20 Road and bridge infrastructure 40 - 50

8. Capitalization of Interest

Interest costs related to enterprise fund bond issues are capitalized during the construction period. These costs are netted against applicable interest earnings on construction fund investments. During the current period, the County did not have any such capitalized interest.

9. Deferred Revenues

Deferred revenues reported in government -wide financial statements represent unearned revenues. The deferred revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting. Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting, are reported as deferred revenues.

10. Accrued Compensated Absences

The County accrues accumulated unpaid vacation and sick leave when earned by the employee. The current portion is the amount estimated to be used in the following year. The non-current portion is the amount estimated to be used in subsequent fiscal years. Both the current and noncurrent estimated accrued compensated absences amounts for governmental funds are maintained separately and represent a reconciling item between the fund and government -wide presentation.

11. Obligation for Bond Arbitrage Rebate

Pursuant to Section 148(f) of the U.S. Internal Revenue Code, the County must rebate to the United States Government the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. The County uses the “revenue reduction ” approach in accounting to rebatable arbitrage. This approach treats excess earnings as a reduction of revenue. Management believes the County has no arbitrage liability outstanding as of September 30, 2010.

12. Landfill Closure Costs

Under the terms of current state and federal regulations, the County was required to place a final cover on closed landfill areas, and to perform certain monitoring and maintenance functions for a period of thirty years after closure. The County recognizes these costs of post-closure maintenance annually. Required obligations for closure and post-closure costs are recognized in the Solid Waste Disposal Fund.

NOTE 2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets.

“Total fund balances ” of the County ’s governmental funds ($26,765,602) differs from “net assets” of governmental activities ($88,304,443 ) reported in the statement of net assets. This difference primarily results from the long-term economical focus of the statement of net assets versus the current financial resources focus of the governmental fund balance sheet.

Capital related items

When capital assets (property, plant, equipment) that are to be used in governmental activities are purchased or constructed, the cost of these assets are reported as expenditures in governmental funds. However, the statement of net assets included those capital assets among the assets of the County as a whole.

Cost of capital assets	$ 88,364,361
Accumulated depreciation	(23,683,950)
Total	$ 64,680,411

Long-term debt transactions

Long-term liabilities applicable to the County ’s governmental activities are not due and payable in the current period and accordingl y are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the statement of net assets. Balances at September 30, 2010, were:

Revenue Notes Payable $ 609,140 Notes payable 80,000 Compensated absences 2,443,749 Total $ 3,132,889

Accrued interest Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds due to accrued interest on the long-term debt.

Accrued interest $ 8,681

Elimination of interfund receivables/payable

Interfund receivables and payables in the amount of $602,654 between governmental funds must be eliminated for the statement of net assets.

SUWANNEE COUNTY, FLORIDA

NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Assets

Total Capital Long-Term Reclassifications Statement

Governmental Related Debt and of Funds Items Transactions Eliminations Net Assets

ASSETS Cash and cash equivalents $ 20,328,389 $ -$ -$ -$ 20,328,389 Accounts receivable - net 194,021 ---194,021 Due from other funds 624,180 --(602,654) 21,526 Due from other governmental units 1,210,382 ---1,210,382 Investments 6,899,437 ---6,899,437 Prepaid expenses 3,638 ---3,638 Capital assets - net -64,680,411 --64,680,411

Total assets $ 29,260,047 $ 64,680,411 $ -$ (602,654) $ 93,337,804

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable $ 896,963 $ -$ -$ -$ 896,963 Accrued wages 275,217 ---275,217 Accrued liabilities 211,443 ---211,443 Accrued interest payable --8,681 -8,681 Due to other funds 602,857 --(602,654) 203 Due to other governmental units 271,532 ---271,532 Deferred revenues 164,125 ---164,125 Other current liabilities 72,308 ---72,308 Accrued compensated absences --2,443,749 -2,443,749 Notes payable --80,000 -80,000 Revenue notes payable --609,140 -609,140

Total liabilities 2,494,445 -3,141,570 (602,654) 5,033,361

Fund balances/net assets 26,765,602 64,680,411 (3,141,570) -88,304,443

Total liabilities and fund balance/net assets $ 29,260,047 $ 64,680,411 $ -$ (602,654) $ 93,337,804

B. Explanation of Differences Between Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances ” for governmental funds $627,122 differs from the “change in net assets” for governmental activities $4,198,608 reported in the statement of activities. The differences arise primarily from the long-term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

Capital related items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net assets decrease by the amount of depreciation expense charged for the year.

Capital outlay	$	1,497,477
Donation of fixed assets		4,299,895
Depreciation expense		(3,176,278)
Difference	$	2,621,094

Repayments of debt principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used. However, the principal payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities.

Debt principal payments made $ 914,253

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

Net change in compensated absences $ 23,514

Net change in accrued interest $ 12,625

Reclassification and Eliminations

Transfers in and transfers out in the amount of $13,071,766 between governmental funds should be eliminated.

SUWANNEE COUNTY, FLORIDA
NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
B. Explanation of Differences Between Government Fund Operating Statements and the Statement of Activities
Total Capital Long-term			Reclassifications		Statement
Governmental Related Debt Compensated		Accrued	and		of
Funds Items Transactions Absences		Interest	Eliminations		Activities
REVENUES
Taxes 17,070,579$ -$ -$ -$	$	-	-$	$	17,070,579
Licenses and permits 210,647 ---		-	-		210,647
Intergovernmental 12,790,896 ---		-	-		12,790,896
Charges for services 2,909,251 ---		-	-		2,909,251
Fines and forfeitures 199,120 ---		-	-		199,120
Miscellaneous 2,095,899 ---		-	-		2,095,899
Interest 146,028 ---		-	-		146,028
Donated fixed assets -1,519,544 --		-	-		1,519,544
Total revenues 35,422,420 1,519,544 --		-	-		36,941,964
EXPENDITURES
Current Expenditures
General government 6,619,394 198,827 -(32,867)		-	-		6,785,354
Public safety 10,875,405 479,707 -35,696		-	-		11,390,808
Physical environment 477,308 --16,885		-	-		494,193
Transportation 4,599,022 2,443,667 -(18,070)		-	-		7,024,619
Economic environment 501,778 --204		-	-		501,982
Human services 1,233,159 ---		-	-		1,233,159
Culture/recreation 3,740,957 54,077 -(25,362)		-	-		3,769,672
Court related 1,747,050 ---		-	-		1,747,050
Capital outlay
General government 891,370 (891,370) --		-	-		-
Public safety 1,304,999 (1,304,999) --		-	-		-
Physical environment 4,042 (4,042) --		-	-		-
Transportation 1,955,198 (1,955,198) --		-	-		-
Culture/recreation 93,397 (93,397) --		-	-		-
Court related 28,822 (28,822) --		-	-		-
Debt Service		-	-		-
Principal 914,253 -(914,253) -		-	-		-
Interest 54,144 ---		(12,625)	-		41,519
Total expenditures 35,040,298 (1,101,550) (914,253) (23,514)		(12,625)	-		32,988,356
Excess of revenues over
(under) expenditures 382,122 2,621,094 914,253 23,514		12,625	-		3,953,608
OTHER FINANCING SOURCES (USES)
Debt proceeds
Sale of fixed assets 245,000 ---		-	-		245,000
Transfers in 13,071,766 ---		-	(13,071,766)		-
Transfers out (13,071,766) ---		-	13,071,766		-
Total other financing sources (uses) 245,000 ---		-	-		245,000
Net change in fund balance 627,122 2,621,094 914,253 23,514		12,625	-		4,198,608
Fund balances at beginning of year 26,138,480 62,059,317 (1,603,393) (2,467,263)		(21,306)	-		84,105,835
Fund balances at end of year 26,765,602$ 64,680,411$ (689,140)$ (2,443,749)$	$	(8,681)	-$	$	88,304,443

NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Budgets and Budgetary Accounting

The Board uses the following procedures in establishing the budgeta ry data reflected in the financial statements.

1 Prior to July 15, the Clerk of the Circuit Court serving as Budget Officer submits to the Board of County Commissioners a tentative budget for the fiscal year commencing October 1.

2 Public hearings are conducted by the Board of County Commissioners to obtain taxpayer comments.

3 Prior to September 30, the budget is legally enacted through passage of a resolution by the Board of County Commissioners.

4 The Constitutional Officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them, as set forth in Chapter 129 of the Florida Statutes .

5 The Department of Revenue, State of Florida, has the final authority on the operating budgets for the Tax Collector and the Property Appraiser, which are classified as separate special revenue funds.

6 The Board of County Commissioners is authorized to amend fixed appropriations by motion to the extent that appropriations do not exceed the total approved budget of the fund; or appropriate for the special purpose intended, reserves or unanticipated receipts. Appropriations lapse at year end. No supplemental appropriations were necessary during the year. Various such amendments were made during the year.

7 Formal budgetary integration is employed as a management control device in all governmental funds.

8 Governmental fund budgets are initially adopted on the modified accrual basis. The legally amended budgetary data presented in the accompanying financial statements for the fiscal year ending September 30, 2010, are shown on this basis of accounting. Therefore, the actual and budgetary data are on a comparable basis. The Enterprise Fund budgets are adopted on the accrual basis.

9 Legal control of the budget is exercised pursuant to applicable provisions of Florida Statutes .

10 Appropriations for the County lapse at the close of the fiscal year.

11 The following is a comparison of the appropriations to total expenses for the proprietary funds for the fiscal year ended September 30, 2010.

Variance
Positive
Appropriations			Expenses	(Negative)
Primary Government
Enterprise Funds:
Solid Waste Collection	$	943,837	$ 1,102,769	$	(158,932)
Solid Waste Disposal		1,495,608	1,384,568		111,040
	$ 2,439,445		$ 2,487,337	$	(47,892)

Expenses included $278,397 in depreciation.

NOTE 4. CASH AND CASH EQUIVALENTS

The Board maintains a cash pool that is available for use by all Board funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. Constitutional Officers maintain separate cash accounts.

1. Deposits

At September 30, 2010, the carrying amount of the County’s deposits was $22,226,019 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Chief Financial Officer pursuant to the Public Depository Security Act of the State of Florida. The Act established a Trust Fund, maintained by the State Chief Financial Officer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails.

2. Investments

Florida Statutes , and various bond covenants authorize investments in certificates of deposit, money market accounts, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund, obligations by the Florida State Board of Administration, Florida Local Government Investment Trust Fund, obligations of the U.S. Government, obligations of government agencies unconditionally guaranteed by the U.S. Government, obligations of the Federal Farm Credit Banks, obligations of the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation participation certificates, obligations of the Federal Home Loan Bank, obligations of the Government National Mortgage Association, obligations of the Federal National Mortgage Associatio n and securities of any management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss.80a-1 et seq., provided the portfolio is limited to U.S. Government obligations and to repurchase agreements fully collateralized by U.S. Government obligations. The County invested in only these types of instruments during the fiscal year.

In accordance with generally accepted accounting principles, the County’s investments are categorized in the following schedule to give an indication of the level of custodial credit risk assumed at year end. Category 1 includes investments that are insured or registered, or for which the securities are held by the County or its agent in the County’s name. Investments in the Local Government Surplus Funds Trust Fund, the Florida Local Government Investment Trust Fund, money market accounts and guaranteed investment contracts are not categorized since the investments are not evidenced by securities that exist in physical or book entry form.

Schedule of Investments at September 30, 2010

Investment Maturities Fair Value Category

Certificates of Deposit Less than 1 year $ 8,443,409 1

Interest Rate Risk

• Section 218.415(17), Florida Statutes, limits investment maturities to provide sufficient liquidity to pay obligations as they come due.

Credit Risk

• The County’s investments in Certificates of Deposit are in qualified public depositories

Custodial Credit Risk

• Section 218.415(18), Florida Statutes, requires the County to earmark all investments and 1) if registered with the issuer or its agents, the investment must be immediately placed for safekeeping in a location that protects the governing body’s interest in the security ; 2) if in book entry form, the investment must be held for the credit of the governing body by a depository chartered by the Federal Government, the State, or any other state or territory of the United States which has a branch or principal place of business in this State, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in this State, and must be kept by the depository in an account separate and apart from the assets of the financial institution; or 3) if physically issued to the holder but not registered with the issuer or its agents, must be immediately placed for safekeeping in a secured vault. All County investments complied with this provision of law.

There were no legal or contractual provisions regarding deposits and investments at year end.

NOTE 5. PROPERTY TAX REVENUES

Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal year starting October 1. Property tax revenues recognized for the 2009-2010 fiscal year were levied in October 2009. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at fiscal year end.

NOTE 6. CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2010, was as follows:

Prior

Beginning Other Capital Reclassifications/ Period Ending

Balance Additions Outlay Deletions Adjustments Balance

Governmental activities :

Capital assets:

Land and improvements $ 5,758,405 $ -$ 491,208 $ -$ -$ 6,249,613

Construction in progress 8,699,991 -2,502,952 (8,699,991) -2,502,952

Infrastructure 37,322,851 --7,901,367 -45,224,218

Buildings and improvements 15,217,833 1,497,477 -798,624 -17,513,934

Equipment 16,369,468 -1,305,734 (801,558) -16,873,644

Total capital assets 83,368,548 1,497,477 4,299,894 (801,558) -88,364,361

Less accumulated depreciation (21,309,231) -(3,176,277) 801,558 -(23,683,950)

Governmental activities

capital assets, net $62,059,317 $ 1,497,477 $ 1,123,617 $ -$ -$64,680,411

Beginning Prior Period Ending

Balance Additions Deletions Adjustments Balance

Business-type activities :

Land $ 286,790 $ -$ -$ -$ 286,790

Equipment 2,410,673 --2,955 2,413,628

Collection sites 1,452,403 ---1,452,403

Landfill 3,664,145 ---3,664,145

Total capital assets 7,814,011 --2,955 7,816,966

Less accumulated

depreciation (5,883,566) (278,397) --(6,161,963)

Business-type activities

capital assets, net $ 1,930,445 $ (278,397) $ -$ 2,955 $ 1,655,003

Depreciation expense was charged to functions/programs of the County as follows:

Governmental activities: General Government $ 198,827 Public Safety 479,707 Transportation 2,443,666

Culture/Recreation 54,077 Total depreciation expense - governmental activities $ 3,176,277

Business-type activities:
Solid waste collection	$	187,604
Solid waste disposal		90,793
Total depreciation expense - business-type activities	$	278,397

NOTE 7. INTERFUND RECEIVABLES/PAYABLES

Balances at September 30, 2010, were:

Receivable Payable General Fund $ 285,854 $ 15,841

Special Revenue Funds: Clerk of the Circuit Court Court Related 2,832 24,745 Clerk of the Circuit Court Noncourt Related 24,919 88,417 Fine and Forfeiture 253,382 325 Fire Protection 15,840 Property Appraiser Operating -68,087 Public Records Modernization Trust 36 3,284 Sheriff Operating 10,383 245,585 Supervisor of Elections Operating -24,304 Tax Collector Operating 6,630 132,269 Voting Equipment 24,304

Agency Funds: Child Support Domestic Relations 30 29 Civil Depositors -4,513 Registry of the Court 70 Tag 375 4,434 Tax 28 2,482 Tax Deed 15 Inmate Welfare -10,383 Proprietary Funds: Solid Waste Collection -6,734 Solid Waste Disposal 6,734

$ 631,432 $ 631,432

NOTE 8. INTERFUND TRANSFERS

Interfund transfers for the year ended September 30, 2010, consisted of the following:

Transfer from General Fund to:

Special Revenue Funds $ 5,283,242 Transfer from Tourist Development Fund to:

Recreation Fund 10,000 Transfer from Clerk of Circuit Court, Court Related Fund to:

Clerk of Circuit Court Noncourt Related Fund 360,195 Transfer from Fine and Forfeiture Fund to:

Clerk of Circuit Court Public Records Modernization Trust Fund 199,195

Sheriff Operating Fund 6,932,677

Transfer from Tax Collector Operating Fund to: General Fund 132,153 Transfer from Reserve Capital Infrastructure to: General Fund 130,000 Transfer from Supervisor of Elections to: Voting Equipment Fund 24,304 13,071,766

Transfers are used to 1) move revenues from the fund that state law requires to collect them to the fund that state law requires to expend them, 2) provide matching funds for grants, and 3) use unrestricted general fund revenues to finance transportation activities which must be accounted for in another fund.

NOTE 9. RECEIVABLE AND PAYABLE BALANCES

Receivables

Receivables at September 30, 2010, were as follows:

Due from

	Other		Total
	Accounts	Governments	Receivables
Governmental Activities:

General $ 189,748 $ 514,157 $ 703,905 Road and Bridge -249,448 249,448 Fine and forfeiture -37,987 37,987 Library 3 -3 Recreation 793 16,762 17,555 Clerk Operating 2,013 9,712 11,725 Sheriff Operating -141,442 141,442 Road and Bridge Construction -86,474 86,474 Other governmental 1,464 154,400 155,864 Total governmental activities $ 194,021 $ 1,210,382 $ 1,404,403

Business-type activities: Solid Waste Collection $ 6,247 $ 45,078 $ 51,325 Solid Waste Disposal 57,508 10,321 67,829

Total business-type activities $ 63,755 $ 55,399 $ 119,154

Payables

Payables at September 30, 2010, were as follows:

Salaries
and				Other	Total
Vendors		Benefits		Liabilities	Payables
Governmental Activities:
General	$ 420,905	$	65,797	$ 241,085	$	727,787
Road and Bridge	57,692		62,538	-		120,230
Fine and Forfeiture	60,541		-	37,500		98,041
Library	21,782		37,117	-		58,899
Recreation	24,204		10,865	-		35,069
Clerk Operating	2,516		19,384	285,597		307,497
Sheriff Operating	188,395		-	36,568		224,963
Other governmental	120,928		79,516	118,658		319,102
Total governmental activities	$ 896,963	$ 275,217		$ 719,408	$1,891,588
Business-type activities:
Solid Waste Collection	33,656$	13,841$		19,976$	67,473$
Solid Waste Disposal	37,776	6,320		71,794	115,890
Total business-type activities	71,432$	20,161$		91,770$	183,363$

NOTE 10. LONG-TERM LIABILITIES

A. Governmental Activities

Revenue Notes Payable

1. SunTrust Revenue Note, Series 1998

On November 17, 1998, the Board of County Commissioners (the Board) issued Revenue Note, Series 1998 to Sun Trust Bank, Central Florida, N.A. in the amount of $6,930,000. This note is payable in semi-annual payments averaging $372,690 over 12 years, including interest at 4.01%. The loan is secured by a pledge of the State of Florida distributions of half-cent sales tax to the County with a secondary pledge of the County’s guaranteed entitlement portion of state revenue sharing.

The proceeds of this loan were utilized to pay off the prior Barnett Bank Notes A & B, and provided approximately $1,500,000 in additional funds for County buildings and improvements.

Debt service requirements to maturity are as follows:

Year Ending September 30 Principal Interest Total

2011 $ 470,590 $ 18,871 $ 489,461

Total $ 470,590 $ 18,871 $ 489,461

2. Mercantile Bank Revenue Note, Series 2006

On March 7, 2006 the Board of County Commissioners (the Board) issued Revenue Note, Series 2006 to Mercantile Bank in the amount of $692,750. This note is payable in five annual payments of $138,550 beginning March 7, 2007, including interest at 3.45%. The loan is secured by a pledge of all revenues received from the special fire assessments levied by the County.

The proceeds of this loan were utilized to purchase five (5) fire brush trucks and two (2) emergency one tankers.

Debt service requirements to maturity are as follows:

Year Ending September 30 Principal Interest Total

2011 $ 138,550 $ 4,780 $ 143,330

Total $ 138,550 $ 4,780 $ 143,330

Notes Payable

1. First Federal Savings Bank of Florida Note Payable

In April, 2003, the Board entered into a note payable with First Federal Savings Bank of Florida (First Federal) in the amount of $150,000, in exchange for naming rights (advertising) granted to First Federal Savings Bank of Florida on the County Recreation Sports Complex (First Federal Sportsplex ) for a period of fifteen years. Principal payments of $10,000 with accrued interest at 12% shall be forgiven by First Federal in exchange for these rights on an annual basis on the first day of May over the fifteen year period as long as the County complies with the terms of the agreement.

The following is a schedule of the future minimum principal and interest payments under this note payable, and the present value of the net minimum note payments at September 30, 2010:

Year Ending

September 30		Total
2011	$	19,600
2012		18,400
2013		17,200
2014		16,000
2015		14,800
2016		13,600
2017		12,400
2018		11,200
		123,200
Less amount representing interest		(43,200)
Present value of future minimum note payments	$	80,000
B. Changes in Long-term Liabilities

Long-term liability activity for the year ended September 30, 2010, was as follows:

Balance at Adjustments/ Balance at Due Within

10/01/09 Additions Deletions 09/30/10 One Year

Governmental activities:

Revenue notes payable:

SunTrust Revenue Note,

Series 1998 $ 1,236,293 $ -$ (765,703) $ 470,590 $ 470,590

Mercantile Revenue

Note Series 2006 277,100 -(138,550) 138,550 138,550

First Federal Savings

Bank, note payable 90,000 -(10,000) 80,000 10,000

1,603,393 -(914,253) 689,140 619,140

Other liabilities -Compensated absences payable 2,467,263 -(23,514) 2,443,749 195,500 $ 4,070,656 $ -$ (937,767) $ 3,132,889 $ 814,640

Business Activities: Other liabilities -Compensated absences payable $ 47,797 $ 218 $ -$ 48,015 $ 3,361 Estimated liability for landfill closure 7,998,047 -(4,248,094) 3,749,953 235,540 $ 8,045,844 $ 218 $ (4,248,094) $ 3,797,968 $ 238,901

NOTE 11. LETTER OF CREDIT

On June 23, 2000, the County secured an irrevocable letter of credit from First Federal Savings Bank of Florida in the amount of $100,000. The letter of credit was issued to the Florida Department of Environmental Protection as a condition for the County’s application for funding from that agency. If ever drawn upon, these funds would be repaid by the Board, including interest at 9.5%. The Board does not anticipate funds being issued under this letter of credit.

NOTE 12. LANDFILL CLOSURE AND POSTCLOSURE COST – PRIOR PERIOD ADJUSTMENT

State and federal laws and regulations require the County to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure.

Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date.

$3,749,954 reported as landfill closure and postclosure care liability at September 30, 2010, represents the cumulative amount reported to date based on the two closed landfills and 27 and 8 years, respectively, remaining for postclosure care of the landfill. These amounts are based on what it would cost to perform all annual postclosure care for the required years. Actual cost may be higher because of inflation, changes in technology, or changes in regulations.

The County is required by state and federal laws and regulations to make annual contributions to an escrow account to finance closure. The County is in compliance with these requirements, and at September 30, 2010, restricted cash of $1,543,972 was held for its purpose. The County expects future inflation costs to be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional postclosure care requirements are determined (because of changes in technology or applicable laws and regulations, for example), these costs may need to be covered by charges to future landfill users or from other future revenues of the County.

Prior Period Adjustment

During the current year, the County’s consulting engineer substantially reduced the estimated cost of postclosure care from the prior years. The resultant decrease in postclosure care liability of $5,662,397 resulted in an increase in net assets of this amount in the Solid Waste Disposal Fund and a corresponding decrease in the estimated liability for landfill closure liability account. This fund is classified as a “business type” activity.

NOTE 13. DEFINED BENEFIT PENSION PLAN

A. Florida Retirement System

Plan Description -The County employees participate in the Florida Retirement System (FRS), a cost-sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service.

Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensati on, and years-of-service credit where average compensation is computed as the average of an individual ’s five highest years of earnings.

Florida Statutes Chapter 121, as may be amended from time to time by the State Legislature, determines contribution rates for the various membership classes of the FRS. The FRS issues a publicly available financial report that includes financial statements, ten-year historical trend information and other required supplementary information. That report may be obtained by writing to the Department of Administration, Division of Retirement, Cedars Executive Center, Building C, 2639 North Monroe Street, Tallahassee, Florida 32399-1560.

Funding Policy -The FRS has the following classes of membership applicable to the Board with descriptions and contribution rates in effect during the period ended September 30, 2010, as follows (contribution rates are in agreement with the actuarially determined rates):

7/1/2010
6/30/2011
Regular Class	-
Members not qualifying for other classes.		10.77%

Senior Management Service Class -
Members of senior management who do not elect
the optional annuity management program. 14.57%

Special Risk Class -
Members employed as law enforcement officers,
firefighters, or correctional officers and meet the
criteria set to qualify for this class. 23.25%

Elected County Officer's Class -
Certain elected county officials. 18.64%

Deferred Retirement Option Program -
Members who are eligible for normal retirement
that have elected to participate in the deferred
retirement option program. 12.25%

Contributions to the FRS for the fiscal year ended September 30, 2010, were equal to 14.92% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2010, 2009, and 2008, were $1,841,880, $1,792,801,and $1,815,954, respectively, which are equal to 100% of the required contribution for each year.

NOTE 14. OPERATING LEASES

The Board has several operating lease agreements for equipment, buildings and office space with noncancellable terms. These leases are considered, for accounting purposes, to be operating leases. Lease expenditures for the fiscal year totaled $216,692 . The future minimum lease payments at September 30, 2010, are as follows:

Year Ending

September 30 Minimum Lease Payment 2011 $28,871 2012 21,362 2013 10,357 2014 5,372 Total $65,962

The Board also has an operating lease agreement with Hatch Enterprises, Inc. for limerock for the Road Department. The lease calls for 240 monthly payments of $7,650. Future minimum lease payments at September 30, 2010 are as follows:

Year Ending
September 30	Minimum Lease Payments
2011	$	91,800
2012		91,800
2013		91,800
2014		91,800
2015		91,800
2016-2020		459,000
2021-2025		459,000
2026-2029		313,650
	$	1,690,650

The Clerk of the Circuit Court has various leases for equipment, building and office space. These leases are considered, for accounting purposes, to be operating leases. Lease expenditu res for the fiscal year totaled $89,396. The future minimum lease payments for these leases are as follows:

Year Ending September 30 Minimum Lease Payments

2011 $28,691

2012 22,685

2013 15,964

2014 9,002

Total $76,342

The Property Appraiser has an operating lease agreement for postage equipment with Pitney Bowes Credit Corporation for 48 months beginning July 7, 2010. Under the terms of this lease, the Property Appraiser is obligated to pay 16 quarterly payments of $308. The future minimum lease payments at September 30, 2010, are as follows:

Year Ending September 30 Minimum Lease Payment

2011 $ 1,233

2012 1,233

2013 1,233

2014 616

$ 4,315

The Property Appraiser also has an operating lease with Great American Leasing Corporation for a digital copier which began on May 31, 2009. The lease calls for 36 monthly payments of $83. Future minimum lease payments at September 30, 2010 are as follows:

Year Ending September 30 Minimum Lease Payment

2011 $ 994

2012 664

$ 1,658 The Sheriff has several operating lease agreements for equipment with noncancellable terms. These leases are considered for accounting purposes, to be operating leases. Lease expenditures for the fiscal year totaled $7,184. The future minimum payments under these leases at September 30, 2010, are as follows:

Year Ending September 30 Minimum Lease Payment

2011 $ 6,529

2012 3,191

2013 2,670

2014 1,668

$14,058

The Supervisor has an operating lease agreement for a digital copier with Great American Leasing Corporation. Under the terms of this lease, the Supervisor is obligated to pay 48 monthly payments of $92. The future minimum lease payments at September 30, 2010, are as follows:

Year Ending September 30 Minimum Lease Payment

2011 $ 1,110

2012 1,110

2013 1,110

2014 462

$ 3,792

The Supervisor has an operating lease agreement for a mailing system with Pitney Bowes. Under the terms of this lease, the Supervisor is obligated to pay 48 monthly payments of $105. The future minimum lease payments at September 30, 2010, are as follows:

Year Ending
September 30	Minimum Lease Payment
2011	$	1,266
2012		1,266
2013		1,055
	$	3,587

The County has entered into various other leases that are properly classified as being operating leases. These leases are dependent upon future funding and require annual re-approval. Therefore, the future minimum rental payments required under these leases is $0.

NOTE 15. FUND EQUITY

Reserved Fund Balances

The Board has established certain reserves within the fund equity section of the governmental funds. Reserved fund balances at September 30, 2010, consist of the following:

General Fund
*Equipment replacement	$	2,500,000
*Capital improvements		4,800,000
Economic development		87,715
Florida boating revenue		73,880
Compensated absences		857,736
Renovation Construction Fund
Building improvements		1,817,855
Recreation Fund
First Federal Sportsplex		48,321
Road and Bridge Fund
Road projects		1,259,652
Renovation Debt Service
Debt Service		237,973
Road and Bridge Construction Fund
Road projects		2,902,729
Local Housing Assistance Fund
Local housing projects		209,418
Fire Protection Fund
Fire services		124,831
911 Addressing Fund
911 Addressing services		512,034
Reserve Capital Infrastructure Fund
Capital projects		4,478,038
Tourist Development Fund
Tourist Development		50,449
Law Education Fund
Law education		54,490
Law Enforcement Trust Fund
Law enforcement		120,226
Emergency Management Fund
Emergency management services		135,513
EMS State Grant Fund
EMS projects		1,449
Voting Equipment Fund		130,302
	$	20,402,611

The County has established certain reserves within the fund equity section of the Proprietary Funds. Reserved fund balances at September 30, 2010, consist of the following:

Solid Waste Disposal Fund Landfill Closure/Postclosure $ 1,543,972

*These reserves are designated reserves by the Board of County Commissioners that are subject to change based upon financial needs of the County.

NOTE 16. CONTINGENT LIABILITIES

Grants -Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the state and federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Board expects such amounts, if any, to be material.

Litigation -The County is defendant in various pending or threatened litigation. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County Attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the County.

NOTE 17. RISK MANAGEMENT

The County participates in various public entity risk pools for certain of its insurance coverages. Under these insurance risk pools, the Board's entity risk pool pays annual premiums to the pools for its insurance coverages. The agreements for formation of the pools provide that the pools will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specific amounts.

The County continues to carry commercial insurance for other risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

The pooling agreements allow for the pools to make additional assessments to make the pools self-sustaining. It is not possible to estimate the amount of such additional assessments, which might have to be paid by the County.

The pooling agreements require the pool to be self-sustaining. It is not possible to estimate the amount of losses, which might have to be borne by the County.

NOTE 18. CONSTRUCTION COMMITMENTS

During the year, the County had in progress several construction projects including road improvements and facilities renovations. At year end, the significant portion of these related construction commitments were completed and existing funds had been earmarked for any incomplete projects.

NOTE 19. OTHER POST-EMPLOYMENT BENEFITS PLAN (OPEB)

The County is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees, whether the premiums are paid by the County or the retiree. Participating retirees are considered to receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the retirees are receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the county younger and statistically healthier active employees. GASB Statement 45 requires governments to report this cost and related liability in its financial statements.

Due to the fact that only a few retirees participated in the plan during the year, management determined that its OPEB obligation at year end would be of a de minimis amount. Management will monitor this situation in the future and take appropriate steps to properly comply with this GASB Statement.

REQUIRED SUPPLEMENTARY INFORMATION

SUWANNEE COUNTY, FLORIDA

GENERAL FUNDSTATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCE – BUDGET AND ACTUALFor the Fiscal Year Ended September 30, 2010

Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 5,999,030 $ 5,999,030 $ 6,804,346 $ 805,316

Licenses and permits	30,012	30,012	29,149	(863)
Intergovernmental	2,234,416	3,333,754	3,590,025	256,271
Charges for services	470,700	470,700	485,376	14,676
Fines and forfeitures	18,000	18,000	18,014	14
Miscellaneous	728,969	728,969	827,840	98,871
Interest	36,040	36,040	42,762	6,722
Total revenues	9,517,167	10,616,505	11,797,512	1,181,007
EXPENDITURES
Current expenditures
General government	4,704,456	6,040,723	3,426,956	2,613,767
Public safety	1,485,602	1,443,716	1,443,715	1
Physical environment	515,753	477,309	477,308	1
Transportation	232,122	194,027	194,026	1
Economic environment	181,794	199,947	199,947	-
Human services	1,578,697	1,233,496	1,233,159	337
Culture / recreation	105,978	105,978	105,978	-
Capital outlay
General government	2,500	331,432	331,432	-
Public safety	85,500	141,892	141,892	-
Physical environment	150	4,042	4,042	-
Transportation	20,000	64,685	64,685	-
Culture / recreation	6,150	-	-	-
Total expenditures	8,918,702	10,237,247	7,623,140	2,614,107
Excess of revenues over
expenditures	598,465	379,258	4,174,372	3,795,114
OTHER FINANCING
SOURCES (USES)
Interfund transfers in	130,001	130,001	262,153	132,152
Interfund transfers out	(5,170,280)	(5,295,188)	(5,283,242)	11,946
Total other financing
sources (uses)	(5,040,279)	(5,165,187)	(5,021,089)	144,098
Net change in fund
balance	(4,441,814)	(4,785,929)	(846,717)	3,939,212
Fund balance at beginning
of year	13,784,720	13,784,720	13,784,720	-
Fund balance at end of

year $ 9,342,906 $ 8,998,791 $ 12,938,003 $ 3,939,212 See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
ROAD AND BRIDGE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
REVENUES
Taxes 1,713,336$ 1,713,336$ 1,643,657$	(69,679)$
Licenses and permits 3,000 3,000 3,930	930
Intergovernmental 1,882,555 2,115,724 2,754,550	638,826
Charges for services 373,125 373,125 327,021	(46,104)
Fines and forfeitures ---	-
Miscellaneous 355,000 355,000 803	(354,197)
Interest 8,000 8,000 2,581	(5,419)
Total revenues 4,335,016 4,568,185 4,732,542	164,357
EXPENDITURES
Current expenditures
Transportation 4,698,443 4,404,692 4,404,691	1
Capital outlay
Transportation 1,125,000 1,651,920 1,549,123	102,797
Total expenditures 5,823,443 6,056,612 5,953,814	102,798
Excess of revenues over
expenditures (1,488,427) (1,488,427) (1,221,272)	267,155
OTHER FINANCING
SOURCES (USES)
Sale of fixed assets --245,000	245,000
Interfund transfers in 913,048 913,048 913,047	(1)
Total other financing
sources (uses) 913,048 913,048 1,158,047	244,999
Net change in fund
balance (575,379) (575,379) (63,225)	512,154
Fund balance at beginning
of year 1,322,877 1,322,877 1,322,877	-
Fund balance at end of
year 747,498$ 747,498$ 1,259,652$	512,154$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
FINE AND FORFEITUR E FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
REVENUES
Taxes 7,640,204$ 7,640,204$ 7,542,114$	(98,090)$
Licenses and permits ---	-
Intergovernmental 425,250 425,250 425,250	-
Charges for services 112,800 112,800 150,454	37,654
Fines and forfeitures 116,200 116,200 108,639	(7,561)
Miscellaneous 46,400 46,400 47,133	733
Interest --60	60
Total revenues 8,340,854 8,340,854 8,273,650	(67,204)
EXPENDITURES
Current expenditures
Public safety 502,575 620,370 417,330	203,040
Court related 921,011 773,041 294,841	478,200
Capital outlay
Court related 15,000 18,122 18,121	1
Total expenditures 1,438,586 1,411,533 730,292	681,241
Excess of revenues over
expenditures 6,902,268 6,929,321 7,543,358	614,037
OTHER FINANCING
SOURCES (USES)
Interfund transfers in ---	-
Interfund transfers out (7,377,457) (7,404,510) (7,131,872)	272,638
Total other financing
sources (uses) (7,377,457) (7,404,510) (7,131,872)	272,638
Net change in fund
balance (475,189) (475,189) 411,486	886,675
Fund balance at beginning
of year 512,097 512,097 512,097	-
Fund balance at end of
year 36,908$ 36,908$ 923,583$	886,675$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
LIBRARY FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
REVENUES
Intergovernmental 1,654,022$ 1,912,852$ 1,894,896$	(17,956)$
Charges for services 90,000 90,000 90,000	-
Fines and forfeitures 27,950 27,950 27,182	(768)
Miscellaneous 24,325 24,325 33,554	9,229
Total revenues 1,796,297 2,055,127 2,045,632	(9,495)
EXPENDITURES
Current expenditures
Culture / recreation 2,830,405 3,126,165 2,693,251	432,914
Capital outlay
Culture / recreation 35,450 21,118 21,118	-
Total expenditures 2,865,855 3,147,283 2,714,369	432,914
Excess of revenues over
expenditures (1,069,558) (1,092,156) (668,737)	423,419
OTHER FINANCING
SOURCES (USES)
Interfund transfers in 903,000 925,598 925,598	-
Total other financing
sources (uses) 903,000 925,598 925,598	-
Net change in fund
balance (166,558) (166,558) 256,861	423,419
Fund balance at beginning
of year 78,676 78,676 78,676	-
Fund balance at end of
year (87,882)$ (87,882)$ 335,537$	423,419$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
RECREATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
REVENUES
Intergovernmental 981,371$ 981,371$ 396,460$	(584,911)$
Charges for services 236,110 236,110 258,947	22,837
Miscellaneous 13,300 13,300 31,170	17,870
Total revenues 1,230,781 1,230,781 686,577	(544,204)
EXPENDITURES
Current expenditures
Culture / recreation 972,037 941,731 941,728	3
Capital outlay
Culture / recreation 820,611 548,303 62,762	485,541
Debt service
Principal --10,000	(10,000)
Total expenditures 1,792,648 1,490,034 1,014,490	475,544
Excess of revenues over
expenditures (561,867) (259,253) (327,913)	(68,660)
OTHER FINANCING
SOURCES (USES)
Interfund transfers in 531,867 531,867 531,867	-
Total other financing
sources (uses) 531,867 531,867 531,867	-
Net change in fund
balance (30,000) 272,614 203,954	(68,660)
Fund balance at beginning
of year 60,769 60,769 60,769	-
Fund balance at end of
year 30,769$ 333,383$ 264,723$	(68,660)$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
OPERATING FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
ActualBudgeted Amounts	Positive
Original Final Amounts	(Negative)
REVENUES
Intergovernmental
Federal grants
Economic environment
Other economic environment 214,266$ 214,266$ 144,008$	(70,258)$
State grants
State court reimbursement 1,267,565 1,267,565 1,069,735	(197,830)
Total intergovernmental 1,481,831 1,481,831 1,213,743	(268,088)
Charges for services
Court related --82,146	82,146
Total charges for services --82,146	82,146
Miscellaneous
Interest --1,220	1,220
Other miscellaneous --1,203	1,203
Total miscellaneous --2,423	2,423
Total revenues 1,481,831 1,481,831 1,298,313	(183,519)
EXPENDITURES
Court related
Personal services 846,894 899,071 776,232	122,839
Operating expenses 110,062 142,183 161,885	(19,702)
Total expenditures 956,956 1,041,254 938,117	103,137
Excess of revenues over (under)
expenditures 524,875 440,577 360,195	(80,382)
OTHER FINANCING SOURCES
(USES)
Operating transfers out (524,875) (440,577) (360,195)	80,382
Net change in fund balance ---	-
Fund balance at beginning of year ---	-
Fund balance at end of year -$ -$ -$	-$

SUWANNEE COUNTY, FLORIDA
SHERIFF
OPERATING FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance
With Final
Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
REVENUES
Intergovernmental
Federal and State grants
VOCA -$ -$ 29,749$	29,749$
INVEST --35,877	35,877
SCAAP --3,415	3,415
Byrne Memorial --89,287	89,287
Bullet Proof Vest --5,453	5,453
Security and Safety Enhancement --331,854	331,854
Recovery Act Task Force --27,360	27,360
Electronic Evidence --15,869	15,869
Total federal grants --538,864	538,864
Charges for services
Public safety
Police services --7,428	7,428
Miscellaneous
Interest --5,659	5,659
Other --11,479	11,479
Total miscellaneous --17,138	17,138
Total revenues --563,430	563,430
EXPENDITURES
Public safety
Law enforcement
Personal services 3,242,271 3,242,271 3,169,388	72,883
Operating expenses 651,125 651,125 575,568	75,557
Capital outlay 180,000 180,000 190,956	(10,956)
Total law enforcement 4,073,396 4,073,396 3,935,912	137,484
Court services
Personal services 135,098 135,098 124,277	10,821
Operating expenses 12,300 12,300 15,677	(3,377)
Capital outlay 500 500 -	500
Total court services 147,898 147,898 139,954	7,944
Corrections
Personal services 1,742,097 1,742,097 1,640,169	101,928
Operating expenses 639,750 639,750 592,899	46,851
Capital outlay 3,000 3,000 25,641	(22,641)
Total corrections 2,384,847 2,384,847 2,258,709	126,138
(Continued)

SUWANNEE COUNTY, FLORIDA
SHERIFF
OPERATING FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance
With Final
Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
Animal control
Personal services 79,279$ 79,279$ 70,553$	8,726$
Operating expenses 22,350 22,350 11,950	10,400
Capital outlay 1,500 1,500 -	1,500
Total animal control 103,129 103,129 82,503	20,626
Dispatch
Personal services 428,187 428,187 417,190	10,997
Operating expenses 39,800 39,800 50,892	(11,092)
Capital outlay 1,000 1,000 -	1,000
Total dispatch 468,987 468,987 468,082	905
INVEST grant
Personal services --16,729	(16,729)
Operating expenses --19,148	(19,148)
Total INVEST grant --35,877	(35,877)
VOCA grant
Personal services --34,776	(34,776)
Operating expenses --1,648	(1,648)
Total VOCA grant --36,424	(36,424)
Drug Task Force
Personal services --16,420	(16,420)
Operating expenses --34,171	(34,171)
Capital outlay --35,730	(35,730)
Total Drug Task Force --86,321	(86,321)
SCAAP grant
Operating expenses --3,416	(3,416)
Capital outlay --52,589	(52,589)
Total SCAAP grant --56,005	(56,005)
Recovery Act Task Force
Personal services --13,530	(13,530)
Operating expenses --13,711	(13,711)
Total Recovery Act Task Force --27,241	(27,241)
Electronic Evidence grant
Operating expenses --7,008	(7,008)
Capital outlay --9,072	(9,072)
Total Electronic Evidence grant --16,080	(16,080)
Security and Safety
Personal services --43,744	(43,744)
Operating expenses --107,687	(107,687)
Capital outlay --180,464	(180,464)
Total Security and Safety --331,895	(331,895)
Total expenditures 7,178,257 7,178,257 7,475,002	(296,745)
Excess of revenues over (under)
expenditures (7,178,257) (7,178,257) (6,911,573)	266,684
OTHER FINANCING SOURCES
Transfers from Board of County
Commissioners 7,178,257 7,178,257 6,932,678	(245,579)
Total other financing sources 7,178,257 7,178,257 6,932,678	(245,579)
Net change in fund balance --21,105	-
Fund balance at beginning of year ---	-
Fund balance at end of year -$ -$ -$	-$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
RESERVE CAPITAL INFRASTRUCTURE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual	Positive
Original Final Amounts	(Negative)
REVENUES
Interest 50,000$ 50,000$ 67,577$	17,577$
Total revenues 50,000 50,000 67,577	17,577
EXPENDITURES
Current expenditures
General government -65 -	65
Total expenditures -65 -	65
Excess of revenues over
expenditures 50,000 49,935 67,577	17,642
OTHER FINANCING
SOURCES (USES)
Interfund transfers out (364,509) (364,444) (130,000)	234,444
Total other financing
sources (uses) (364,509) (364,444) (130,000)	234,444
Net change in fund
balance (314,509) (314,509) (62,423)	252,086
Fund balance at beginning
of year 4,540,461 4,540,461 4,540,461	-
Fund balance at end of year 4,225,952$ 4,225,952$ 4,478,038$	252,086$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
ROAD AND BRIDGE CONSTRUCTION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL For the Fiscal Year Ended September 30, 2010
REVENUES Taxes Miscellaneous Interest Total revenues	Budgeted Amounts Actual Original Final Amounts 964,294$ 964,294$ 980,824$ 894,132 615,108 147,034 18,000 4,000 4,105 1,876,426 1,583,402 1,131,963		Variance with Final Budget Positive (Negative) 16,530$ (468,074) 105 (451,439)
EXPENDITURES Current expenditures Transportation Capital outlay Transportation Total expenditures Net change in fund balance Fund balance at beginning of year Fund balance at end of year		--305 3,061,954 2,468,915 341,390 3,061,954 2,468,915 341,695 (1,185,528) (885,513) 790,268 2,112,461 2,112,461 2,112,461 926,933$ 1,226,948$ 2,902,729$	$	(305) 2,127,525 2,127,220 1,675,781 --
See notes to financial statements.

COMBINING STATEMENTS

SUWANNEE COUNTY, FLORIDA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
September 30, 2010

Special Revenue Funds

Property																Supervisor of		Tax
Clerk of the Circuit Court					Appraiser					Sheriff						Elections		Collector
Public
Noncourt Records
Related Moderniza-			Teen				Animal	Drug		Federal		Meth			What Not
Operating tion trust			Court		Operating		Control	Task Force		Seizure		Grant			Grant	Operating		Operating
ASSETS
Current Assets
Cash	$	117,495 123,406$ $	18,802	$	72,077	$	1,280	61,430$	$	71,507	$		-	$	23,430	27,854$	$	142,975
Accounts receivable		400 79	-		-		-	-		-			-		-	-		-
Due from other funds		24,919 36	-		-		-	-		-			-		-	-		6,630
Due from other governmental units		--	-		-		-	-		-			-		-	-		-
Prepaid expenses		--	-		-		-	-		-			-		-	-		3,638
Total assets	$	142,814 123,521$ $	18,802	$	72,077	$	1,280	61,430$	$	71,507	$		-	$	23,430	27,854$	$	153,243
LIABILITIES AND FUND BALANCES
LIABILITIES
Current Liabilities
Accounts payable	$	3,880 485$ $	98	$	2,223	$	-	-$	$	-	$		-	$	-	630$	$	1,011
Accued liabilities		1,263 -	-		-		-	-		-			-		-	-		-
Accrued wages		29,496 4,995	-		-		-	-		-			-		-	-		14,897
Due to other funds		88,417 3,284	-		68,087		-	-		-			-		-	24,304		132,269
Due to other governmental units		19,758 164	-		1,767		-	-		-			-		-	-		1,753
Revenues collected in advance		--	-		-		-	-		-			-		23,430	2,920		-
Other current liabilities		--	-		-		-	-		-			-		-	-		3,313
Total liabilities		142,814 8,928	98		72,077		-	-		-			-		23,430	27,854		153,243
FUND BALANCES
Reserved		--	-		-		-	-		-			-		-	-		-
Unreserved		-114,593	18,704		-		1,280	61,430		71,507			-		-	-		-
Total fund balances		-114,593	18,704		-		1,280	61,430		71,507			-		-	-		-
Total liabilities and fund balances	$	142,814 123,521$ $	18,802	$	72,077	$	1,280	61,430$	$	71,507	$		-	$	23,430	27,854$	$	153,243
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
September 30, 2010
Debt		Capital
Service		Projects
Special Revenue Funds	Fund	Fund

Board of County Commissioners

Local

Tourist

Renovation

Total

911

Emergency

EMS

Fire

Law

Housing

Municipal

Development

Voting

Debt

Renovation

Nonmajor

Addressing

Management

State Grant

Protection

Education

Enforcement

Assistance

Services

Trust

Equipment

Service

Construction

Funds

ASSETS

Current Assets

Cash

500,591$

73,020$

22,045

140,504$

54,490$ 120,226$

284,625$

42,537$

105,998$

237,973$

1,825,304$

4,067,569

Accounts receivable

985

1,464

Due from other funds

15,840

24,304

71,729

Due from other governmental units

16,482

72,618

150

7,912

57,238

154,400

Prepaid expenses

3,638

Total assets

517,073

145,638

22,045

156,494

54,490

120,226

284,625

985

50,449

130,302

237,973

1,882,542

4,298,800

LIABILITIES AND FUND BALANCES LIABILITIES Current Liabilities Accounts payable Accrued liabilities Accrued wages Due to other funds Due to other governmental units Revenues collected in advance Other current liabilities

2,390 -2,649 ----

7,511 -2,614 ----

----194 --

10,625 -21,038 ----

-------

11,500 ----63,707 -

15,888 -3,827 -389 --

-------

64,687 ------

120,928 1,263 79,516 316,361 24,025 90,057 3,313

Total liabilities 5,039 10,125 194 31,663 --75,207 20,104 ---64,687 635,463

FUND BALANCES

Reserved

512,034

135,513

1,449

124,831

54,490

120,226

209,418

50,449

130,302

237,973

1,817,855

3,394,540

Unreserved

20,402

(19,119)

268,797

Total fund balances 512,034 135,513 21,851 124,831 54,490 120,226 209,418 (19,119) 50,449 130,302 237,973 1,817,855 3,663,337

Total liabilities and fund balances $ 517,073 $ 145,638 $ 22,045 $ 156,494 $ 54,490 $ 120,226 $ 284,625 $ 985 $ 50,449 $ 130,302 $ 237,973 $ 1,882,542 $ 4,298,800 See notes to financial statements.

SUWANNEE COUNTY, FLORIDANONMAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFor the Fiscal Year Ended September 30, 2010

Special Revenue Funds

Property														Supervisor of		Tax
Clerk of the Circuit Court					Appraiser				Sheriff					Elections		Collector
Public
Noncourt Records
Related Modernization			Teen			Animal	Drug		Federal		Meth		What Not
Operating Trust			Court		Operating	Control	Task Force		Seizure		Grant		Grant	Operating		Operating
REVENUES
Taxes	$	--$ $	-	$	-	-$	-$	$	-	$	-	$	-	-$	$	-
Licenses and permits		--	-		-	-	-		-		-		-	-		-
Intergovernmental		-13,384	-		-	-	-		-		12,480		6,831	12,196		-
Charges for services		160,310 48,618	13,029		21,842	-	1,755		-		-		-	-		1,038,078
Fines and forfeitures		-43,075	-		-	-	2,210		-		-		-	-		-
Miscellaneous		771 -	-		-	438	18,424		-		-		-	326		3,404
Interest		203 -	-		19	9	47		36		42		-	10		219
Total revenues		161,284 105,077	13,029		21,861	447	22,436		36		12,522		6,831	12,532		1,041,701
EXPENDITURES
Current Expenditures
General government		1,177,239 -	-		779,054	-	-		-		-		-	329,228		906,576
Public safety		--	-		-	695	14,599		-		17,542		6,831	-		-
Economic environment		--	-		-	-	-		-		-		-	-		-
Court related		225,926 256,302	31,864		-	-	-		-		-		-	-		-
Capital outlay
General government		5,000 -	-		1,645	-	-		-		-		-	5,004		2,972
Public safety		--	-		-	-	31,609		-		-		-	-		-
Culture recreation		--	-		-	-	-		-		-		-	-		-
Court related		-10,701	-		-	-	-		-		-		-	-		-
Debt service
Principal		--	-		-	-	-		-		-		-	-		-
Interest		--	-		-	-	-		-		-		-	-		-
Total expenditures		1,408,165 267,003	31,864		780,699	695	46,208		-		17,542		6,831	334,232		909,548
Excess of revenues over (under
expenditures		(1,246,881) (161,926)	(18,835)		(758,838)	(248)	(23,772)		36		(5,020)		-	(321,700)		132,153
OTHER FINANCING SOURCES (USES)
Sale of fixed assets		--	-		-	-	-		-		-		-	-		-
Interfund transfers in		1,246,881 199,195	-		758,838	-	-		-		-		-	346,004		-
Interfund transfers out		--	-		-	-	-		-		-		-	(24,304)		(132,153)
Total other financing sources (uses)		1,246,881 199,195	-		758,838	-	-		-		-		-	321,700		(132,153)
Net changes in fund balances		-37,269	(18,835)		-	(248)	(23,772)		36		(5,020)		-	-		-
Fund balances at beginning of year		-77,324	37,539		-	1,528	85,202		71,471		5,020		-	-		-
Fund balances at end of year	$	-114,593$ $	18,704	$	-	1,280$	61,430$	$	71,507	$	-	$	-	-$	$	-
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
For the Fiscal Year Ended September 30, 2010
Debt				Capital
Service				Projects
Special Revenue Funds			Fund	Fund
Local Tourist			Renovation			Total
911 Emergency EMS Fire Law Law Housing Municipal Development Voting			Debt	Renovation		Nonmajor
Addressing Management State Grant Protection Education Enforcement Assistance Services Trust Equipment			Service	Construction		Funds
REVENUES
Taxes	$	--$ -$ -$ -$ -$ -$ -$ 99,638$ -$	-$	-$	$	99,638
Licenses and permits		-------177,568 --	-	-		177,568
Intergovernmental		59,377 172,002 20,402 600 --350,000 ---	678,233	651,602		1,977,107
Charges for services		211,942 --6,635 5,669 -----	-	-		1,507,878
Fines and forfeitures		----------	-	-		45,285
Miscellaneous		5,910 1,777 -931,075 ---277 -33,281	-	-		995,683
Interest		1,964 167 -514 -208 14,584 -72 135	266	3,570		22,065
Total revenues		279,193 173,946 20,402 938,824 5,669 208 364,584 177,845 99,710 33,416	678,499	655,172		4,825,224
EXPENDITURES
Current Expenditures
General government		----------	341	-		3,192,438
Public safety		151,590 166,739 -1,456,301 18,216 --180,190 --	-	-		2,012,703
Economic environment		------213,276 -88,555 -	-	-		301,831
Court related		----------	-	-		514,092
Capital outlay
General government		----------	-	545,317		559,938
Public safety		60,890 2,635 -234,874 ------	-	338,648		668,656
Culture recreation		----------	-	9,517		9,517
Court related		----------	-	-		10,701
Debt service
Principal		---138,550 ------	765,703	-		904,253
Interest		---9,666 ------	44,478	-		54,144
Total expenditures		212,480 169,374 -1,839,391 18,216 -213,276 180,190 88,555 -	810,522	893,482		8,228,273
Excess of revenues over (under
expenditures		66,713 4,572 20,402 (900,567) (12,547) 208 151,308 (2,345) 11,155 33,416	(132,023)	(238,310)		(3,403,049)
OTHER FINANCING SOURCES (USES)
Sale of fixed assets		----------	-	-		-
Interfund transfers in		-22,413 -890,594 ---18,195 -24,304	-	-		3,506,424
Interfund transfers out		--------(10,000) -	-	-		(166,457)
Total other financing sources (uses)		-22,413 -890,594 ---18,195 (10,000) 24,304	-	-		3,339,967
Net changes in fund balances		66,713 26,985 20,402 (9,973) (12,547) 208 151,308 15,850 1,155 57,720	(132,023)	(238,310)		(63,082)
Fund balances at beginning of year		445,321 108,528 1,449 134,804 67,037 120,018 58,110 (34,969) 49,294 72,582	369,996	2,056,165		3,726,419
Fund balances at end of year	$	512,034 135,513$ 21,851$ 124,831$ 54,490$ 120,226$ 209,418$ (19,119)$ 50,449$ 130,302$	237,973$	1,817,855$	$	3,663,337
See notes to financial statements.

SINGLE AUDIT AND COMPLIANCE SECTION

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERSBASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of County Commissioners and Constitutional Officers Suwannee County, Florida

We have audited the basic financial statements of Suwannee County, Florida (the County), as of and for the year ended September 30, 2010, and have issued our report thereon dated April 13, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting -In planning and performing our audit, we considered Suwannee County, Florida’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Suwannee County, Florida’s, internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.

Compliance and Other Matters -As part of obtaining reasonable assurance about whether Suwannee County, Florida’s financial statements are free of material misstatement, we perform ed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on complianc e with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

However, we noted certain matters that we reported to management of the County in a separate letter dated April 13, 2011 on pages 85 – 88.

This report is intended solely for the information and use of management, the Suwannee County Board of County Commissioners and Constitutional Officers, federal and state awarding agencies and pass-through entities, and the Auditor General of Florida, and is not intended to be and should not be used by anyone other than these specified parties.

POWELL & JONES

Certified Public Accountants April 13, 2011

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND INTERNAL
CONTROL OVER COMPLIANCE APPLICABLE TO EACH MAJOR
FEDERAL AWARDS PROGRAM AND STATE FINANCIAL ASSISTANCE PROJECT

Honorable Board of County Commissione rs and Constitutional Officers Suwannee County, Florida

Compliance

We have audited the compliance of Suwannee County, Florida with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement, and the requirements described in the Executive Office of the Governor’s State Projects Compliance Supplement, that are applicable to each of its major federal awards programs and state financial assistance projects for the year ended September 30, 2010. Suwannee County, Florida’s major federal awards programs and state financial assistance projects are identified in the summary of auditor’s results section of the accompanying Schedule of Findings. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal awards programs and state financial assistance projects is the responsibility of Suwannee County, Florida’s management. Our responsibility is to express an opinion on Suwannee County, Florida’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States: OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General , require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal awards program or state financial assistance project occurred. An audit includes examining, on a test basis, evidence about Suwannee County, Florida’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Suwannee County, Florida’s compliance with those requirements.

In our opinion , Suwannee County, Florida complie d, in all material respects, with the requirements referred to above that are applicable to each of its major federal awards programs and state financial assistance projects for the year ended September 30, 2010.

Internal Control Over Compliance

The management of Suwannee County, Florida is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal awards programs and state financial assistance projects. In planning and performing our audit, we considered Suwannee County, Florida’s internal control over compliance with requirements that could have a direct and material effect on a major federal awards program or state financial assistance project to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General.

Our consider ation of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal and control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal awards program or state financial assistance project being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.

Schedule of Expenditures of Federal Awards and State Financial Assistance

We have audited the basic financial statements of Suwannee County, Florida as of and for the year ended September 30, 2010, and have issued our report thereon dated April 13, 2011. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

This report is intended solely for the information and use of the Board of County Commission ers, Constitutional Officers, management, and federal and state awarding agencies, pass-through entities, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.

POWELL & JONES

Certified Public Accountants April 13, 2011

SUWANNEE COUNTY FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2010
Federal and State Grantor/Pass Through Grantor Program Title FEDERAL AWARDS	CFDA#	GRANT #		PROGRAM OR AWARD AMOUNT				REPORTED IN PRIOR YEARS			DEFERRED IN PRIOR YEARS			REVENUES RECOGNIZED	EXPENDITURES		DEFERRED REVENUES
MAJOR PROGRAMS
US Department of Justice passed through Florida Department of Law Enforcement Recovery Act JAG Grant-RATF Recovery Act Grant-Security and Safety Enhancement Byrne Memorial JAG-Drug Task Force Grant Byrne Memorial JAG-Electronic Evidence Collection Enhancement Byrne Memorial JAG-Cyber Crime Grant Total major programs	16.804 16.803 16.738 16.738 16.738		2009-SB-B9-2406 2010-ARRC-SUWA-2-W7-238 2010-JAGC-SUWA-1-4X-162 2009-DJ-BX-1420 2007-DJ-BX-1196			$	67,780 331,854 101,057 16,472 13,025 530,188 530,188	$		----8,598 8,598 8,598		$ ---4,427 4,427 4,427		$ 27,360 331,854 89,287 15,869 -464,370 464,370	$ 27,360 331,854 89,287 15,869 2,246 466,616 466,616	$	----2,181 2,181 2,181
NONMAJOR PROGRAMS
National Endowment for the Arts passes through Arts Midwest The Big Read Grant	45.024		2009-41		4,600				-				-	4,600	4,600		-
Bureau of Justice Assistance/Office of Criminal Justice Grants Bulletproof Vest Grant	16.607		FY2009		5,453				-				-	5,453	5,453		-
US Department of Justice passed through Florida Department of Law Enforcement Victims of Crime Act (VOCA) Grant	16.575		V8020		31,582				-				-	29,749	29,749		-
US Elections Assistance Commission Passed through Florida Department of State Division of Elections Help America Vote Act Voter Education Voter Education Military and Overseas Voter Empowerment U.S. Department of Health and Human Services EMS Computers	90.401 90.401 90.401 20.610		FY 2008/09 FY 2009/10 FY 2009/10 SNMS10		6,883 4,408 1,589 12,880 5,795				-----				6,883 --6,883 -	6,883 3,078 1,589 9,961 5,795	6,883 3,182 1,589 11,654 5,795		-2,920 -2,920 -
U.S. Department of Health and Human Services passed through Florida Department of Revenue Title IV-D Funds	93.563		FY 2009/10		144,008				-				-	144,008	144,008		-
passed through Florida Department of Children and Families INVEST Grant	16.588		LN958		71,000				5,810				4,590	51,200	35,877		19,913
US Department of Homeland Security passed through the Florida Department of Community Affairs Emergency Management Preparedness and Assistance Homeland Security Grant/Training/Exercise/Planning Grant Homeland Security Grant Homeland Security Grant	97.042 97.067 97.067 97.067		10-BG-25-03-71-01-071 09-DS-51-03-71-01-266 10-DS-39-03-71-01-341 08-C1-43-03-71-01-096		31,765 6,460 58,300 11,000 107,525				---8,943 8,943				-----	31,765 6,460 25,000 2,057 65,282	31,765 6,460 25,000 2,057 65,282		-----
Total nonmajor programs Total federal awards	382,843 14,753 11,473 $ 913,031 $ 23,351 $ 15,900													316,048 $ 780,418	302,418 $ 769,034	$	22,833 25,014
See notes to Schedule of Federal Awards and State Financial Assistance
	79

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2010 SUWANNEE COUNTY FLORIDA
Federal and State Grantor/Pass Through Grantor Program Title STATE FINANCIAL ASSISTANCE MAJOR PROGRAMS Department of State Division of Library Information Services State Aid to Libraries Operating/Equalization Grant-County State Aid to Libraries Operating/Equalization Grant-Regional	CSFA# 45.030 45.030	GRANT # 10-ST-83 10-ST-80	PROGRAM OR AWARD AMOUNT 515,267 350,000 865,267		REPORTED IN PRIOR YEARS ---		DEFERRED IN PRIOR YEARS ---		REVENUES RECOGNIZED 515,267 350,000 865,267	EXPENDITURES 515,267 350,000 865,267	DEFERRED REVENUES 9/30/2010	---
Florida Department of Transportation Trans-Regional Incentive Grant/Nobles Ferry Road	55.026	424092-1-58-01	7,000,000		3,966,702		-		1,324,888	1,324,888		-
Total major programs			7,865,267		3,966,702		-		2,190,155	2,190,155		-
NONMAJOR PROGRAMS:
Office of the Governor Office of Tourism, Trade and Economic Development Rural Infrastructure Grant Catalyst Feasibility I-10/US 90	31.030	OT-O9-119		75,024		-		-	75,024	75,024	-
Florida Department of Transportation Public Transportation Joint Participation Agreements Design/Construction T-Hangers Fuel Farm Generator Grant Small County Road Assistant Program/SCRAP/52nd Street County Incentive Grant/CR 417 Department of Environmental Protection FRDAP Grant FRDAP Grant Small County Solid Waste Grant Agreement	55.004 55.004 55.016 55.008 37.017 37.017 37.012	AOJ62 APC 81 424158-1-58-01 A8211 A9230 028SC		512,500 50,000 233,169 600,000 1,395,669 200,000 135,611 78,787 414,398		509,789 ---509,789 ----		---------	-49,374 233,169 8,150 290,693 200,000 -78,787 278,787	-49,374 233,169 8,150 290,693 200,000 -78,787 278,787	---------
Florida Fish & Wildlife Conservation Commission Dees Howard Boat Ramp Grant				149,800 149,800		--		--	--	--	--
Department of Community Affairs Emergency Management Planning Assistance Grant Hazardous Materials Grant	52.008 52.023	10-BG-25-03-71-01-071 10-CP-04-03-71-01-172		104,878 1,842 106,720		-		---	104,878 1,842 106,720	104,878 1,842 106,720	---
State Housing Initiatives Program SHIP Funds 2008 (FYE 06/30/09) SHIP Funds 2010 (FYE 06/30/10) See notes to Schedule of Federal Awards and State Financial Assistance	52.901 52.901	2008/2009 2009/2010		411,136 350,000 761,136		347,430 -347,430		63,706 208,422 272,128	63,706 149,570 213,276	63,706 149,570 213,276	-58,852 58,852

80 81

SUWANNEE COUNTY FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2010
County Awards Grant EMS Zoll E Series ACLS Defibulators Emergency Medical Services/Ambulance Grant	64.005 64.003 64.003	C9061 M9205 M9014	8,672 21,764 59,678 90,114		----	--69,900 69,900		-21,764 59,678 81,442		-21,764 59,678 81,442		8,672 -8,672
Department of Law Enforcement Violent Crime and Drug Control- Operation What Not Violent Crime and Drug Control- Slim Fast	71.005 71.005	OSI Case #LV-18-0091	40,000 100,000 140,000		9,739 87,520 97,259	30,261 12,480 42,741		---		6,831 12,480 19,311		23,430 -23,430
Department of Management Services/Wireless 911 Board Rural County Grant/Exacom Grant Rural County Grant/Micro-Data MTC Grant Rural County Grant/911 Maintenance Grant	72.002 72.002 72.002	09-10-25 09-10-26 10-03-14	5,600 17,999 35,778 59,377		----	----		5,600 17,998 35,778 59,376		5,600 17,998 35,778 59,376		----
Total nonmajor programs Total state financial assistance	2,431,102 $ 10,296,369			607,048 112,641 4,573,750$ 112,641$			$	892,042 3,082,197	$	911,353 3,101,508	$	32,102 32,102
See notes to Schedule of Federal Awards and State Financial Assistance

SUWANNEE COUNTY, FLORIDA

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

For the Fiscal Year Ended September 30, 2010

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and presentation of the Single Audit Report of Suwannee County, Florida, (the “County”) have been designed to conform to generally accepted accounting principles as applicable to governmental units, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Circular A-133.

A. Reporting Entity

The reporting entity consists of Suwannee County, the primary government, and each of its component units. The County includes a Schedule of Expenditures of Federal Awards and State Financial Assistance in the Compliance Section.

B. Basis of Accounting

Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus.

The modified accrual basis of accounting is followed in the Schedule of Expenditures of Federal Awards and State Financial Assistance. Under the modified accrual basis, revenues are recognized when they become measurable and available. Revenues are consider ed to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days after the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

SUWANNEE COUNTY, FLORIDASCHEDULE OF FINDINGSFor the Fiscal Year Ended September 30, 2010

Summary of Auditor's Results

Financial Statements

Type of auditor's report issued:	Unqualified
Internal control over financial reporting:
? Material weakness identified? ? Reportable condition identified not considered to be material weaknesses?	No None reported
Noncompliance material to financial statements noted?	No

Federal Awards

Internal control over major programs:

? Material weakness identified? No ? Reportable condition identified that are not considered to be material weaknesses? None reported

Type of auditor's report issued on compliance for major programs: Unqualified

Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? No

Identification of major programs:

CFDA Number Name of Federal Programs

16.803, 16.738, 16.804 U.S. Department of Justice Edward Byrne Memorial Justice Assistance Grant

Dollar threshold used to distinguish between Type A and Type B programs: $300,000

Auditee qualified as low-risk auditee? Yes

Financial Statement Findings

None

Federal Awards Findings and Questioned Costs

None

SUWANNEE COUNTY, FLORIDA
SCHEDULE OF FINDINGS
For the Fiscal Year Ended September 30, 2010
(continued)

State Financial Assistance

Internal control over major projects:

� * Material weaknesses identified? No

� * Reportable conditions identified that are not considered to be material weaknesses? None reported

Type of auditor's report issued on compliance for major projects: Unqualified

Any audit findings disclosed that are required to be reported in accordance with Rule 10.656, Rules of the Auditor General ? No

Identification of Major Programs:

CSFA/Number Name of State Programs

55.026 Department of Transportation: County Incentive Grant

45.030 Department of State: State Aid to Libraries

Dollar threshold used to distinguish between type A and type B programs $300,000

Financial Statement Findings

None

State Financial Assistance Findings and Questioned Costs

None

MANAGEMENT LETTER

Honorable Board of County Commissioners and Constitutional Officers Suwannee County, Florida

We have audited the financial statements of the Suwannee County, Florida, as of and for the year ended September 30, 2010, and have issued our report thereon dated April 13, 2011.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards , Independent Auditor's Report on Compliance and Internal Control over Compliance Applicable to each Major State Financial Assistance Project, and Schedule of Findings. Disclosures in those reports and schedule, which are dated April 13, 2011, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General , which govern the conduct of local governmental entity audits performed in the State of Florida and require that the following items be addressed in this letter.

BOARD OF COUNTY COMMISSIONERS

PRIOR YEAR FINDINGS

Grant Administration – From our audit of the various grant programs administered by Board departments, we found that in the prior and current years, generally it was difficult to document grant compliance and identify specific grant expenditures due to grant information being maintained in more than one location. This generally arises when grant administration and reporting is performed by the recipient department, but financial accountin g is maintained in the Clerk’s Finance Office. To improve overall grant administration and accountability, we again recommend that the Board evaluate the feasibility of designating an appropriate employee for centralized management of the Board’s grants. Such an employee would be responsible for grant applications, interim reporting and coordination between the Finance Office and the various recipient Board departments. During the current year we found continued improvement in this finding.

GASB 45 Other Postemployment Benefits (OPEB) – Statement 45 of the Governmental Accounting Standards Board requires governments to calculate the costs and liabilities associated with health benefits for retired employees. County retirees are charged the same rates as active employees on the County’s health insurance plan. Due to the fact that premiums are based on a blending of the experience among younger active employees and older retirees, GASB 45 classifies this as an “implicit rate subsidy” that must be calculat ed and disclosed.

Although the County has relatively few retirees on the health insurance plan, this pronouncement requires the County to have an actuarial study performed to properly disclose this OPEB obligation in its financial statements. We recommend that the County evaluate this new accounting requirement and take appropriate action for compliance.

CURRENT YEAR FINDINGS

Recreation Cash Receipts – From our review of controls relating to accountability over recreation related receipts, we found that there is no formal reconciliation performed between tickets sold for an event and funds actually deposited for the event. To increase internal control and accountability over such gate receipts, we recommend that all event tickets be pre-numbered and issued consecutively, and that total receipts issued be reconciled to the cash actually deposited for the event. Any discrepancies should be fully investigated.

CLERK OF THE CIRCUIT COURT PRIOR YEAR FINDINGS

There were no reportable findings in the prior year.

CURRENT YEAR FINDINGS

There were no reportable findings in the current year.

PROPERTY APPRAISER PRIOR YEAR FINDINGS

There were no reportable findings in the prior year.

CURRENT YEAR FINDINGS

There were no reportable findings in the current year.

SHERIFF PRIOR YEAR FINDINGS

All prior year findings were substantially corrected during the current year.

CURRENT YEAR FINDINGS

There were no reportable findings in the current year.

SUPERVISOR OF ELECTIONS

PRIOR YEAR FINDINGS

The prior year finding was substantially corrected in the current year.

CURRENT YEAR FINDINGS

Cash Receipts Documentation – From our review of selected cash receipts of the Office, we found instances where there was not adequate information on the cash receipts to fully document the amount received. To enhance the audit trail over cash receipts, we recommend that adequate descriptions be listed on cash receipts to fully document the amounts received.

TAX COLLECTOR

PRIOR YEAR FINDINGS

There were no reportable findings in the prior year.

CURRENT YEAR FINDINGS

There were no reportable findings in the current year.

AUDITOR GENERAL COMPLIANCE MATTERS

Annual Local Government Financial Report -The Financial Report filed with the Department of Financial Services pursuant to Section 218.32(l)(a), Florida Statutes , is in agreement with the accompanying financial statements of Suwannee County, Florida, for the year ended September 30, 2010.

Investment of Public Funds -The County complied with Section 218.415, Florida Statutes , regarding the investment of public funds during the fiscal year.

Financial Emergency Status -Nothing came to our attention that caused us to believe that the County had met any of conditions described in Section 218.503(1), Florida Statute s, that might result in a financial emergency.

Financial Condition Assessment -As required by the Rules of the Auditor General (Sections 10.554(g)(6)c. and 10.556), we applied financial condition assessment procedures. It is management's responsibility to monitor the entity's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information they provided.

Requirements of Section 28.35 Florida Statutes – For the fiscal year ended September 30, 2010, the Clerk of the Circuit Court complied with the following:

� a. The budget certified by the Florida Clerk of Courts Operations Corporation.

� b. The performance standards developed and certified to Section 28.35, Florida Statutes .

Our audit did not disclose any further items that would be required to be reported under the Rules of the Auditor General , Chapter 10.554(1)(f).

CONCLUSION -We have reviewed information regarding our audit with appropriate County officials and management and have provided them with appropriate documentation as requested. We very much enjoyed the challenges and experiences associated with this audit of the County. We look forward to a long and mutually beneficial relationship with the Board of County Commissioners and other County Officials and employees. We also appreciate the helpful assistance and courtesy afforded us by all County employees.

POWELL & JONES

Certified Public Accountants April 13, 2011

CLERK OF THE CIRCUIT COURT

SUWANNEE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT
SPECIAL PURPOSE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010 T A B L E O F C O N T E N T S
PAGE NO.
Independent Auditor's Report	92
COMBINED FINANCIAL STATEMENTS
Combined Balance Sheet - All Fund Types	94
Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types	95
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Special Revenue Funds	96
Notes to Financial Statements	97 - 101
COMBINING AND INDIVIDUAL FUND STATEMENTS
GENERAL FUND
Balance Sheet	104
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual	105
SPECIAL REVENUE FUNDS
Combining Balance Sheet	107
Combining Statement of Revenues, Expenditures and Changes in Fund Balance	108 - 110

SUWANNEE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT
SPECIAL PURPOSE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010 T A B L E O F C O N T E N T S
PAGE NO.
AGENCY FUNDS
Combining Balance Sheet	112
Combining Statement of Changes in Assets and Liabilities	113 - 114
COMPLIANCE SECTION
Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards	116
Management Letter	117 - 118

Honorable Clerk of the Circuit Court Suwannee County, Florida

We have audited the accompanying special purpose fund financial statements of the Suwannee County Clerk of the Circuit Court (the Clerk), as of and for the year ended September 30, 2010, as listed in the table of contents. These special purpose fund financial statements are the responsibility of the Clerk of the Circuit Court. Our responsibility is to express an opinion on these special purpose fund financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special purpose fund financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the special purpose fund financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

The accompanying financial statements were prepared for the purpose of complying with state reporting requirements, as described in Note 1, and are intended to present the financial position and results of operations of only that portion of the financial reporting entity of Suwannee County, Florida, that is attributable to the transactions of the Clerk of the Circuit Court.

In our opinion, the special purpose fund financial statements referred to above present fairly, in all material respects, the financial position of the Suwannee County Clerk of the Circuit Court, as of September 30, 2010, and the results of its operations and budgetary comparisons for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated April 8, 2011, on our consideration of the Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Our audit was made for the purpose of forming an opinion on the special purpose fund financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the special purpose fund financial statements of the Clerk of the Circuit Court. Such information has been subjected to the auditing procedures applied in the audit of the special purpose fund financial statements and, in our opinion, is fairly presented, in all material respects, in relation to the special purpose fund financial statements taken as a whole.

POWELL & JONES

April 8, 2011

COMBINED FINANCI AL STATEMENTS

SUWANNEE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
COMBINED BALANCE SHEET – ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2010

	Special General Revenue Fund Funds Governmental Fund Types	Fiduciary Fund Type Agency Funds	Totals (Memorandum Only)
ASSETS Current assets

Cash $ 317,685 $ 259,632 $ 669,454 $ 1,246,771 Accounts receivable 2,013 549 1,736 4,298 Due from other funds 2,832 24,636 109 27,577 Due from other governmental

units 9,712 372 7 10,091 Total assets $ 332,242 $ 285,189 $ 671,306 $ 1,288,737

LIABILITIES AND FUND BALANCE LIABILITIES

Current liabilities Accounts payable $ 2,516 $ 4,463 $ 129 $ 7,108 Due to individuals 500 -85,920 86,420 Accrued liabilities 19,557 35,754 -55,311 Due to other funds 24,745 2,803 29 27,577 Due to other governmental

units 220,518 108,873 6,666 336,057 Deposits 61,811 -578,562 640,373 Other current liabilities 2,595 --2,595

Total liabilities $ 332,242 $ 151,893 $ 671,306 $ 1,155,441

FUND BALANCES Undesignated -133,296 -133,296 Total liabilities and fund balance $ 332,242 $ 285,189 $ 671,306 $ 1,288,737

See notes to financial statements.

SUWANNEE COUNTY, FLORIDACLERK OF THE CIRCUIT COURTCOMBINED STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCESALL GOVERNMENTAL FUND TYPESFor the Fiscal Year Ended September 30, 2010

Totals

	General Fund			Special Revenue Funds	(Memorandum Only)
REVENUES Intergovernmental Charges for services Miscellaneous Total revenues	$		1,213,743 82,146 2,423 1,298,312	-$ 1,213,743$ 279,187 361,333 203 2,626 279,390 1,577,702
EXPENDITURES Current expenditures General government Court related Capital outlay General government Total expenditures		-938,117 -938,117		1,659,467 31,864 15,701 1,707,032		1,659,467 969,981 15,701 2,645,149
Excess of revenues over ( under) expenditures		360,195		(1,427,642)		(1,067,447)
OTHER FINANCING SOURCES (USES) Transfer from Board of County Commissioners Interfund transfers in Interfund transfers out Total other financing sources (uses)		--(360,195) (360,195)		1,085,881 360,195 --1,446,076		1,085,881 360,195 (360,195) 1,085,881
Net change in fund balances Fund balances at beginning of year Fund balances at end of year	---$			18,434 18,434 114,864 114,864 133,298$ 133,298$
See notes to financial statements.

SUWANNEE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS For the Fiscal Year Ended September 30, 2010
			General Fund															Special Revenue Funds
Budget			Actual						Variance Positive (Negative)						Budget			Actual						Variance Positive (Negative)
REVENUES Intergovernmental Charges for services Miscellaneous Total revenues	1,481,831$ 1,213,743$ -82,146 -2,423 1,481,831 1,298,312						$				(268,088) 82,146 2,423 (183,519)			$			-285,472 -285,472		$		-279,187 203 279,390	$			-(6,285) 203 (6,082)
EXPENDITURES Current expenditures General government Court related Capital outlay General government Total expenditures	-1,041,254 -1,041,254				-938,117 -938,117					-103,137 -103,137						1,672,425 -174,728 1,847,153				1,659,467 31,864 15,701 1,707,032			12,958 (31,864) 159,027 140,121
Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners Interfund transfers in Interfund transfers out Total other financing sources (uses)	440,577 --(440,577) (440,577)				360,195 --(360,195) (360,195)					(80,382) --80,382 80,382						(1,561,681) 972,301 589,380 -1,561,681				(1,427,642) 1,085,881 360,195 -1,446,076			134,039 113,580 (229,185) -(115,605)
Net change in fund balances Fund balance at beginning of year Fund balance at end of year	$	---		$		---		$				---	-18,434 18,434 -114,864 --$ 133,298$ 18,434$
See notes to financial statements

SUWANNEE COUNTY, FLORIDA

CLERK OF THE CIRCUIT COURT

NOTES TO FINANCIAL STATEMENTS

September 30, 2010

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the more significant accounting policies of the Suwannee County Clerk of the Circuit Court (Clerk).

A. Reporting Entity -The Governmental Accounting Standards Board (GASB) in its Statement No. 14, "The Financial Reporting Entity," establishes standards for defining the financial reporting entity. In developing these standards, the GASB assumed that all governmental organizations are responsible to elected officials at the federal, state, or local level. Financial reporting by a state or local government should report the elected officials' accountability for those organizations.

The Clerk of the Circuit Court, as established by Article VIII of the Constitution of the State of Florida, is an elected official of the County. Although the Clerk's Office is operationally autonomous from the Board of County Commissioners, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the Clerk is reported as a part of the primary government of Suwannee County, Florida. The Clerk's financial statements do not purport to reflect the financial position or the results of operations of Suwannee County, Florida, taken as a whole.

These special purpose financial statements of the Clerk are issued separately to comply with Section 10.557(4), Rules of the Auditor General for Local Governmental Entity Audits, pursuant to Section 11.45(3), Florida Statutes .

B. Fund Accounting -Accounts are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund entity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The funds utilized by the Clerk are as follows:

(i) Governmental Funds General Fund -The General Fund of the Clerk of the Circuit Court is used to account for all financial resources, which are generated from operations of the office or any other resources not required to be accounted for in another fund.

Special Revenue Funds -Special Revenue Funds are used to account for the proceeds of specific revenue sources which are legally restricted to expenditures for specified purposes. As of September 30, 2010, the Clerk maintained the following Special Revenue Funds:

Public Records Modernization Trust Fund Teen Court Fund Non-Court Related Operating Fund

(ii) Fiduciary Funds Agency Funds -Agency Funds are used to account for assets held by the Clerk of the Circuit Court as an agent for individuals, private organizations, other governments, and/or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The following Agency Funds are maintained by the Clerk of the Circuit Court.

Domestic Relations Fund
Tax Deed Fund
Registry of Court Fund
Witness and Jury Fund

C. Basis of Accounting -The "Basis of Accounting" refers to when revenues and expenditures and the related assets and liabilities are recognized in the accounting records and reported in the financial statements. The Clerk of the Circuit Court currently maintains the accounting records for all funds on the cash basis. However, for financial statement purposes appropriate adjustments are made to report governmental and fiduciary fund types using the modified accrual basis of accounting. Under the modified accrual basis, revenues are generally recognized when they become measurable and available as net current assets. Expenditures are reported when incurred with the exception of prepaid expenses and principal and interest on general long-term obligations.

D. Budget -Chapter 129, Florida Statutes , requires that budgets be adopted for all funds as may be required by law, sound financial practices, and generally accepted accounting principles and that budgets be adopted on a basis consisten t with generally accepted accounting principles (GAAP). Pursuant to this requirement, the County adopts an annual comprehensive appropriated budget, which includes appropriations to the General Fund of the Clerk of the Circuit Court.

In the budget comparisons included in these financial statements, both the amounts budgeted and the actual amounts reported are presented on the GAAP basis. Budgetary comparisons present the appropriated budget of the Clerk of the Circuit Court.

E. Cash and Investments -Deposits are carried at cost which approximates market value. The carrying amount of deposits is separately displayed on the balance sheet as "Cash." At September 30, 2010, the book balance of the Clerk's deposits was $1,243,558. This bank balance was covered by federal depository insurance and pledged collateral from various qualified public depositories. Chapter 280, Florida Statutes , defines the eligible collateral for these qualified public depositories.

The collateral for the Clerk's deposits is categorized to give an indication of the level of risk assumed by the Clerk at year end. Category 1 includes deposits that are insured or registered or for which the securities are held by the Clerk or his agent in the Clerk's name. Category 2 includes uninsured and unregistered deposits for which the securities are held by the counterparty's trust department or agent in the Clerk's name. Category 3 includes uninsured or unregistered deposits for which the securities are held by the counterparty's trust department or agent, but not in the Clerk's name. All of the collateral covering the Clerk's deposits was Category 1.

F. Inventories -It is the policy of the Clerk of the Circuit Court to record the acquisition of supplies as expenditures at the time of purchase. The amount of supplies on hand at any one time would be a nominal amount and considered to be immaterial.

G. Fixed Assets -Fixed assets used in governmental fund type operations are accounted for in the General Fixed Asset Group of Accounts, except for its infrastructure fixed assets which the County has elected not to report. All fixed assets acquired by purchase are recorded at historical cost. Donated assets are recorded at estimated fair market value at the date donated. No deprecia tion has been provided on the County's general fixed assets. Assets purchased by the Clerk of the Circuit Court are reported in the County's General Fixed Assets Accounts.

H. Compensated Absences -Compensated absences are absences for which employees will be paid, such as vacation and sick leave. A liability for compensated absences that are attributable to services already rendered and that are not contingent on a specific event that is outside the control of the government and its employees is accrued as employees earn the rights to the benefits. Compensated absences that relate to future services or that are contingent on a specific event that is outside the control of the government and its employees are accounted for in the period in which such services are rendered or such events take place.

In the governmental funds, compensated absences that are expected to be liquidated with expendable available financial resources are reported as an expenditure and fund liability in the fund of the Board of County Commissioners that will pay for them. The remainder of the compensated absences liability is reported in the General Long-Term Debt Accounts of the Board of County Commissioners.

I. Total Column on the Combined Statements -The total column on the combined statements is captioned "Memorandum Only" to indicate that it is presented only to facilitate financial analysis. Data in this column does not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

J. Estimates -The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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

NOTE 2. PENSION PLAN

Plan Description -The Clerk contributes to the Florida Retirement System (System), a cost-sharing multiple -employer defined benefit plan administered by the State of Florida, Department of Administration, Division of Retirement. The System provides retirement, disability or death benefits to retirees or their designated beneficiaries. Chapter 121, Florida Statutes , establishes the authority for benefit provisions. Changes to the law can only occur through an act of the Florida Legislature. The System issues a publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Florida Retirement System, 2639 North Monroe Street, Tallahassee, Florida, or by calling (850) 488-5706.

Funding Policy -The System is employee noncontributory. The Clerk is required to contribute at an actuarially determined rate. The rates at September 30, 2010, were as follows: Regular Employees 10.77%; Senior Management 14.57%; Elected Officials 18.64% and employees electing the DROP Program 12.25%. The contribution requirements of plan members and the Clerk are established and may be amended by the Florida Legislature. The Clerk's contributions to the System for the years ending September 30, 2010, 2009 and 2008 were $173,169, $174,580, and $156,972, respectively, equal to the required contributions for each year.

NOTE 3. INTERFUND RECEIVABLES AND PAYABLES

Balances at September 30, 2010, were:

Interfund Interfund

Receivables Payables

General Fund $ 2,832 $ 24,745

Public Records Modernization

Trust Fund 36

Domestic Relations Fund 29 29

Tax Deed Fund 10

Registry of Court Fund 70

Non-Court Related Operating Fund 24,600 2,803

$ 27,577 $ 27,577

NOTE 4. LEASE COMMITMENTS

The Clerk has various leases for equipment , building and office space. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the fiscal year totaled $89,396. Future minimum lease payments for these leases are as follows:

Year Ending
September 30	Minimum Lease Payments
2011	$	28,691
2012		22,685
2013		15,964
2014		9,002
Total	$	76,342

COMBINING AND INDIVIDUAL FUND STATEMENTS GENERAL FUND

SUWANNEE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
GENERAL FUND
BALANCE SHEET
September 30, 2010
ASSETS
Current assets
Cash	$	317,685
Accounts receivable		2,013
Due from other funds		2,832
Due from other governmental units		9,712
Total assets	$	332,242
LIABILITIES AND FUND BALANCE
LIABILITIES
Current liabilities
Accounts payable	$	2,516
Due to individuals		500
Accrued liabilities		19,557
Due to other funds		24,745
Due to other governmental units		220,518
Deposits		61,811
Other current liabilities		2,595
Total liabilities and fund balance	$	332,242

See notes to financial statements. \See notes to financial statements.

SUWANNEE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
GENERAL FUND
STATEMENT OF REVENUES, EXPENDIT URES AND
CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended September 30, 2010
Variance with
Final Budget
ActualBudgeted Amounts	Positive
Original Final Amounts	(Negative)
REVENUES
Intergovernmental
Federal grants
Economic environment
Other economic environment 214,266$ 214,266$ 144,008$	(70,258)$
State grants
State court reimbursement 1,267,565 1,267,565 1,069,735	(197,830)
Total intergovernmental 1,481,831 1,481,831 1,213,743	(268,088)
Charges for services
Court related --82,146	82,146
Total charges for services --82,146	82,146
Miscellaneous
Interest --1,220	1,220
Other miscellaneous --1,203	1,203
Total miscellaneous --2,423	2,423
Total revenues 1,481,831 1,481,831 1,298,313	(183,519)
EXPENDITURES
Court related
Personal services 846,894 899,071 776,232	122,839
Operating expenses 110,062 142,183 161,885	(19,702)
Total expenditures 956,956 1,041,254 938,117	103,137
Excess of revenues over (under)
expenditures 524,875 440,577 360,195	(80,382)
OTHER FINANCING SOURCES
(USES)
Operating transfers out (524,875) (440,577) (360,195)	80,382
Net change in fund balance ---	-
Fund balance at beginning of year ---	-
Fund balance at end of year -$ -$ -$	-$

SPECIAL REVENUE FUNDS

SUWANNEE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 2010

Noncourt Public Records Related Modernization Teen Operating Trust Court Totals

ASSETS
Current assets
Cash	$	117,495	$	123,406	$	18,732	$	259,633
Accounts receivable		400		79		70		549
Due from other funds		24,600		36		-		24,636
Due from other governmental
units		372		-		-		372
Total assets	$	142,867	$	123,521	$	18,802	$	285,190
LIABILITIES AND FUND BALANCE
LIABILITIES
Current liabilities
Accounts payable	$	3,880	$	485	$	98	$	4,463
Accrued liabilities		30,759		4,995		-		35,754
Due to other funds		2,802		-		-		2,802
Due to other governmental
units		105,426		3,448		-		108,874
Total liabilities		142,867		8,928		98		151,893
FUND BALANCES
Undesignated		-		114,593		18,704		133,297
Total liabilities and fund
balances	$	142,867	$	123,522	$	18,802	$	285,190

See notes to financial statements.

SUWANNEE COUNTY, FLORIDACLERK OF THE CIRCUIT COURTSPECIAL REVENUE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCESFor the Fiscal Year Ended September 30, 2010

Noncourt Public Records Related Modernization Teen

Operating Trust Court Totals

REVENUES

Charges for services County Officer fees Fees $ 771 $ -$ 13,029 $ 13,800 Recording 2,976 12,801 -15,777 Certified copies 107,549 --107,549 Passport 9,800 --9,800 Documentary stamps 3,483 --3,483 Intangible tax 632 --632 Marriage licenses 7,584 --7,584 Tax deed sales 24,458 --24,458 Sheriff information

technology -13,384 -13,384 Information technology -35,817 -35,817 Microfilming 1,188 --1,188 Other 2,640 43,075 -45,715

Total charges for services 161,081 105,077 13,029 279,187 Miscellaneous

Interest 203 --203 Total miscellaneous 203 --203 Total revenues 161,284 105,077 13,029 279,390

EXPENDITURES General government Clerk to Board Personal services 627,954 --627,954 Operating expenses 93,098 --93,098 Capital outlay 5,000 --5,000 Total Clerk to Board 726,052 --726,052

See notes to financial statements. See notes to financial statements. See notes to financial statements.

SUWANNEE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE S, EXPENDITURES AND CHANGES IN FUND BALANCES For the Fiscal Year Ended September 30, 2010
Noncourt Related Operating				Public Records Modernization Trust					Teen Court			Totals
Official records Personal services Operating expenses Total official records	$	263,694 192,493 456,187			$		---	-$ --			$	263,694 192,493 456,187
Teen court Operating expenses Total teen court			--			--				31,864 31,864		31,864 31,864
Records management Operating expenses Total records management			--			12,830 12,830				--		12,830 12,830
Information technology Personal expenses Operating expenses Total information technology			---			74,771 1,638 76,409				---		74,771 1,638 76,409
Noncourt related information technology Personal expenses Operating expenses Capital outlay Total noncourt related information technology			----			133,867 33,196 10,701 177,764				----		133,867 33,196 10,701 177,764

SUWANNEE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT