Members of the board of commissioners and administration staff were all smiles when Jeff Tuscan of Tuscan and Company of Fort Myers pronounced the Lehigh Acres Fire and Rescue Dept. in good financial shape.

He presented the draft audit that his firm had independently worked on over the past few months and presented it on March 19 at the fire board’s monthly meeting held at 4 p.m. at Veterans Park Community Center.

The board voted to adopt the audit and Tuscan & Company will finalize it and it will come before the board in final form for final acceptance.

Tuscany’s audit of the finances of the Lehigh Acres Fire Control and Rescue District was for the fiscal year ending Sept. 30., 2008.

Tuscany complimented the board and especially its administrative staff who he said worked with Ben Van Klingeren of Tuscan & Company in Fort Myers.

In the draft report, it read in part at the beginning:

“In fiscal 2008, Lehigh Acres experienced an economic downturn that did not happen overnight. It is a result of the plummeting housing market causing property values to decrease dragging down property tax receipts.

“Unemployment is rising with depressed retail sales and sales taxes affecting tax receipts being collected. In addition, the Florida legislature mandated a roll-back in property taxes and authorized a constitutional amendment expanding the Homestead Exemption, as well as putting caps on capital growth.

“Even with these challenges the District has continued to focus on providing the highest level of service while being fiscally responsible and exploring areas in which we can reduce expenditures.”

At the end of the fiscal year of 2008, the District’s assets exceeded its liabilities resulting in net assets of $22,821,303. According to the report the District’s total net assets increased $8,823,783 or by 63 percent.

The reported stated that the District had $10,959,900 of unreserved fund balance that can be used to meet the District’s ongoing obligations. Approximately 51.2 percent of the total, or $5,613,073, is undesignated.

In the audit, it was noted that the District generated cash flows of $1,635,813 from EMS transports and total governmental revenues increased $2,369,176 or 10 percent, in comparison to the prior year.

Overall, the total government expenditures increased $2,976,241 or 11.2 percent, in comparison to 2007.

According to the audit, as of Sept. 30, 2008 and 2007, the fire district had $950,175 and $8,467,056 of outstanding debt respectively, consisting of retirees’ insurance and compensated absences.

The District satisfied a note payable during the year ending September 30, 2008 that had an outstanding balance of $7,599,500 as of Sept. 30, 2007. The non-current liability reported as compensated absences increased by $34,944 or 4.2 percent. This liability represents the total amount the District has due at the termination of all employees’ employment.

It was noted that at least two factors were considered when next year’s budget (2008-09) was prepared.

They included property values decreased by $1,255,684 or 16.5 percent to $6,349,317,840. As a result of the decrease in property values over the past year, the millage rate was increased to maintain designated reserves.

Two new fire stations were constructed over the past year and an $8 million loan was obtained by the District in August of 2006 to fund the capital jobs for Stations 4 and 5. During the year ended, the District had repaid the balance owed of $7,599,500 on the $8 million note through a combination of cash from the General Fund and Impact Fee Fund.

Auditors also stated that a travel policy should be developed that adheres to Florida statutes and that an operating policies should be adopted. The District does not have a board-approved employee handbook.

“We recommend the Board formally review and adopt comprehensive operating, accounting and personnel policies for the District. These policies should include, at a minimum, travel , procurement (including bidding requirements), check signing authority, personnel, credit cards, deposits, inventory control, etc.

An employee handbook example created by another fire district was provided to management.

The audit also noted that the District did not adopt a board-approved operating procedures manual during the year. However, subsequent to the year ending Sept. 30, 2008, management has prepared an operating procedures manual in draft form that addresses the procedures issues and according to the audit, the District plan to have the board approve the manual during the coming fiscal year which ends Sept. 30, 2009.

There were other minor suggestions in the audit which can be viewed at the Fire Department 636 Thomas Sherwin Ave. S. The fire chief is Donald R. Adams Sr., who said that the comments and recommendations had been a great help in assisting administration in improving the fiscal management of the fire district.

Public Education and Information Officer Patrick Comer showed a video he has produced that will be aired on local TV stations beginning this month. He said he had talked to local television stations and asked if they would use such videos to help educate the public about safety and the fire department’s role in their lives. Comer also writes a blog on The Lehigh Acres Citizen’s website, lehighacrescitizen.com, which contains all the contents of the printed edition and more news each day.

During the meeting Commissioner Ralph Hemingway said he had checked with insurance companies to find a better price for “you people,” but he was rebuffed by Union Manager Mike Pernal of Union District 6 who came to the microphone and asked why the insurance subject was even being brought up.

The District has an Insurance Committee and it meets and makes recommendations to the chief and to the board.

Hemingway in his own defense, said he was only trying to save “you people” money. That brought a quick reaction from Commissioner Joel Guzman who asked Hemingway who “you people” were. Hemingway pointed to the audience where there were several District employees, firefighters and EMTs sitting.

“Oh, okay, I was wondering what you meant by ‘you people,'” Guzman said.