FY2015MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND
AUTHORITY
(A Component Unit of Monroe
County, Florida)
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
As of and for the Year Ended September 30, 2015
And Reports of Independent Auditor
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITOR
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
_1-2
3-6
Statement of Net Position -------------------------------------------------------------------------------------------------------------------------
7
Statement of Activities
8
Fund Financial Statements
Balance Sheet - General Fund
9
Statement of Revenues, Expenditures and Changes in
Fund Balance - General Fund
10
Notes to Financial Statements
11-25
REQUIRED SUPPLEMENTARY INFORMATION
Florida Retirement System Pension Plan — Schedule of the Authority's Proportionate
Share of Net Pension Plan Liability--------------------------------------------------------------------------------------------------26
Health Insurance Subsidy Plan — Schedule of the Authority's Proportionate Share
of Net Pension Plan Liability ............................................................................................................. 27
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - General Fund (Budgetary Basis) .......................................................... 28
SUPPLEMENTARY INDEPENDENT AUDITOR'S REPORTS
Report of Independent Auditor 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------------------------------------------------------------------------------------------------- 29-30
Independent Auditor's Management Letter ______________________________________________________________________________________ 31-32
Report of Independent Accountant on Compliance with Local Government Investment Policies................33
�� Cherry Bekaert"`
CPAs & Advisors
Report of Independent Auditor
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the major fund of the
Monroe County Comprehensive Land Authority (the "Authority"), a component unit of Monroe County, Florida,
as of and for the year ended September 30, 2015, and the related notes to the financial statements, as listed in
the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Authority's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and the major fund of the Authority as of September 30, 2015,
and the respective changes in financial position thereof for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 11 to the basic financial statements, the Authority adopted Governmental Accounting
Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions — an Amendment of
GASB Statement No. 27, and Statement No. 71, Pension Transition for Contributions made subsequent to the
Measurement Date — an Amendment of GASB Statement No. 68. Our opinions are not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Required Supplementary Information as listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the financial statements, and other knowledge we
obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 24, 2016 on our
consideration of the Authority'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 in considering the Authority's internal control over financial reporting and compliance.
Orlando, Florida
May 24, 2016
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Monroe County Comprehensive Plan Land Authority (the "Authority"), we offer readers of
the Authority's financial statements this narrative overview and analysis of the Authority's financial activities for
the fiscal year ended September 30, 2015.
Overview of the Financial Statements
This discussion and analysis serves as an introduction and guide to the Authority's basic financial statements.
The Authority's basic financial statements consist of three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. Following the notes is the
required supplementary information. This section contains funding information about the Authority's pension
plans.
Government -wide Financial Statements. The government -wide financial statements are designed to provide
readers with a broad overview of the Authority's finances, in a manner similar to a private -sector business.
The Statement of Net Position presents information on all of the Authority's assets, deferred outflows of
resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of the
Authority is improving or deteriorating.
The Statement of Activities presents information showing how the Authority's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of related cash flows. Compensated absences and pension related
items do not use current financial resources and therefore are not reported as expenditures in the General fund.
Fund Financial Statements. The General Fund is used to account for essentially the same functions reported
as governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, the General Fund financial statements focus on near -term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This
information is useful in evaluating the Authority's ability to fund new acquisitions in the near -term.
Since the focus of the General Fund is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for the General Fund with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near -term financing decisions. Both the General Fund
Balance Sheet and the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance
provide a reconciliation to facilitate this comparison between fund level and government -wide activities.
The Authority adopts an annual appropriated budget. A budgetary comparison statement has been provided to
demonstrate compliance with this budget.
Notes to the Financial Statements. The notes contained in this report provide additional information that is
essential to a full understanding of the data provided. The notes are an integral part of the basic financial
statements.
Other Information. In addition to financial statements and accompanying notes, this report also presents
supplementary information in the form of independent opinions on internal control and compliance issues.
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Authority adopted GASB Statements 68 and 71 for fiscal year 2015 concerning the reporting of pensions as
described in Note 11. Accordingly, the financial statements and notes now include a number of pension -related
entries and schedules attributable to the Authority's participation in the Florida Retirement System, including a
$129,526 restatement of beginning net position addressed in Note 12.
Government -wide Financial Analysis
Statement of Net Position. In the Statement of Net Position presented on page 7, the Authority's assets total
$53,755,716 and include cash and investments, amounts due from other governments for tourist impact tax and
park surcharge fees, mortgages receivable, and capital assets in the form of acquired land. The mortgage
receivables consist of ten long-term balloon loans issued for the acquisition of affordable housing sites as
described in Note 3, two of which are forgivable.
Cash and investments are the assets typically of most importance to the Authority's Board of Directors and to
the public, as these assets are the resources most readily available to meet current and future needs for
property acquisition. The Authority's cash and investments total $18,781,964. This amount compares with
$16,011,764 at the end of the previous fiscal year, an increase of $2,770,200. Approximately 47% of the
Authority's assets consist of land acquired for specific public purposes, approximately 17% consist of
mortgages, and approximately 35% are categorized as cash and investments.
The Authority's current liabilities consist of accounts payable, accrued wages, and compensated absences
(annual leave and sick leave) forecasted to be used during the upcoming year. The Authority's non -current
liabilities consist of compensated absences that are forecasted not to be used during the upcoming year as well
as net pension liability. Total liabilities are $214,952.
The assets in the Authority's resulting net position are categorized as those invested in capital assets, those
restricted specifically for the acquisition of land or the activities described in Section 380.0666, Florida Statutes,
(listed as "restricted"), and those which may be used for all purposes authorized by the Authority's enabling
legislation (listed as "unrestricted"). The Authority's total net position is $53,537,879, an increase of $4,539,423
over the prior year. Of this total, $25,228,946 is invested in capital assets, $12,062,441 is restricted, and
$16,246,492 is unrestricted.
The following table provides a condensed comparison of the Authority's Statement of Net Position at year end
for 2015 and 2014:
Cash and investments
Capital and other assets
Total assets
Deferred Outflows of Resources
Total liabilities
Deferred Inflows of Resources
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
2015 2014
$ 18,781,964 $ 16,011,764
34,973,752 33,086,008
53,755,716 49,097,772
19,362 -
214,952
99,316
22,247
-
25,228,946
23,434,164
12,062,441
9,254,104
16,246,492
16,310,188
$ 53,537,879 $ 48,998,456
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
Statement of Activities. In the Statement of Activities presented on page 8, the Authority's revenues total
$5,007,620 and include intergovernmental revenue consisting of tourist impact tax and park surcharge fees and
investment income consisting of interest on cash and investment accounts. The investment income shown is the
total of interest on cash and investment accounts plus the realized gain on funds that were invested in Local
Government Surplus Trust Funds Investment Pool Fund B, described in Note 2. The Authority's overall
revenues increased by $624,400 compared to the prior year. This increase was primarily due to an increase in
tourist impact tax revenue.
The program expenses in the Statement of Activities total $338,671 and consist of land contribution
conveyances and general government expenses. The referenced land contribution conveyance reflects the
$19,630 reduction in the Authority's land inventory to account for a donation of conservation land on Grassy Key
to the City of Marathon. The $319,041 in general government expenses includes the Authority's personnel and
operating expenses plus the amount by which compensated absences decreased during the current year. Total
program expenses for fiscal year 2015 decreased by $29,978 compared to the prior year, largely due to a
decrease in the amount of land the Authority donated.
The following table provides a condensed comparison of the Authority's governmental activities at year end for
2015 and 2014:
General revenues:
Intergovernmental
Investment income
Land contributions
Total general revenues
Program expenses:
Land contribution conveyances
General government
Total program expenses
Increase in net position
Net position, beginning of year, previously reported
Restatement
Net position, beginning of year, restated
Net position, end of year
Financial Analysis of the General Fund
2015 2014
$ 4,957,129 $ 4,378,316
50,491 4,654
- 250
5,007,620 4,383,220
19,630
54,321
319,041
314,328
338,671
368,649
4,668,949
4,014,571
48,998,456
44,983,885
(129,526) -
48,868,930 -
$ 53,537,879 $ 48,998,456
As noted above, the Authority uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
The Authority's General Fund financial statements provide information on near -term inflows, outflows, and
balances of spendable resources. This information can be useful in assessing the Authority's ability to fund new
acquisitions in the near -term.
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balance Sheet. The General Fund Balance Sheet presented on page 9 lists the Authority's assets and liabilities
in a manner similar to the government -wide Statement of Net Position. However, since the General Fund
Balance Sheet is a fund -level presentation providing a near -term perspective, the assets section excludes the
Authority's capital assets (land), the liability section excludes compensated absences that the Authority will pay
in the future, net pension liability, other exclusions related to deferred outflows and inflows related to pensions.
Presented in this manner, the Authority's assets are $28,526,770 and its liabilities are $15,552.
This statement identifies $26,511,218 of total fund balance. Of this total, $9,151,579 is attributable to funds the
Authority may receive in the future from the repayment of mortgage loans and is therefore classified as
nonspendable; $12,062,441 is attributable to funds restricted for land acquisition and is therefore classified as
restricted; $4,406,373 is attributable to funds assigned for reserves; and $2,890,825 is attributable to funds
which may be used for all purposes authorized by the Authority's enabling legislation and is therefore classified
as unassigned.
Statement of Revenues, Expenditures and Changes in Fund Balance. The General Fund Statement of
Revenues, Expenditures and Changes in Fund Balance presented on page 10 lists the Authority's revenues and
expenditures in a manner similar to the government -wide Statement of Activities. However, in this format the
expenditures include land purchases (as capital outlay), pension related items, compensated absences, and
exclude land donations to other entities (land contribution conveyances). Presented in this manner, the
Authority's revenues are $5,007,620 and its expenditures are $2,146,661.
General Fund Budgetary Highlights. The Authority budgets its revenues and expenditures on the same basis
of accounting as presented in the basic financial statements of the General Fund, except that mortgage
assistance cash outlays and receipts are budgeted as operating activities and compensated absences are not
budgeted in personnel expenditures. Although there were no supplemental appropriations to amounts originally
budgeted for fiscal year 2015, $20,000 was transferred from contingency to personnel and operating expenses.
As shown in the Budget and Actual schedule on page 28, the Authority operated within the limits established by
its adopted budget. Actual revenues exceed the budgeted amount by $1,787,620, while actual expenditures are
$15,087,429 less than budget. Most of the revenue surplus consists of tourist impact tax revenue. The
investment income of $50,491 consists of $32,931 of interest plus a $17,560 realized gain on funds invested in
Local Government Surplus Trust Funds Investment Pool Fund B described in Note 2. The schedule's positive
expenditure variance includes budgeted reserves held for specific acquisition projects.
Capital Asset Administration
As shown in Note 4 on page 15, the Authority's investment in capital assets amounts to $25,228,946, an
increase of $1,794,782 compared to the prior year. The increase was the net result of $1,814,447 of land
acquired less $35 of equipment depreciation and less $19,630 of land donated for conservation.
Requests for Information
This financial report is designed to provide a general overview of the Authority's finances for all those with an
interest in the government's finances. Questions concerning any of the information should be addressed to the
Authority's Executive Director, at 1200 Truman Avenue, Suite 207, Key West, FL 33040.
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
ASSETS
Cash and investments
$ 18,781,964
Due from BOCC
562,770
Due from State of Florida
30,457
Mortgages receivable
9,151,579
Capital assets -land
25,228,946
Total assets 53,755,716
Deferred Outflows of Resources 19,362
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Current liabilities:
Accounts payable 1,500
Accrued wages 14,052
Compensated absences 14,737
Total current liabilities 30,289
Noncurrent liabilities:
Compensated absences 64,795
Net pension liability 119,868
Total noncurrent liabilities 184,663
Total liabilities 214,952
Deferred Inflows of Resources 22,247
Net position:
Net investment in capital assets 25,228,946
Restricted 12,062,441
Unrestricted 16,246,492
Total net position $ 53,537,879
The accompanying notes to the financial statements are an integral part of this statement.
7
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2015
General revenues
Intergovernmental $ 4,957,129
Investment income 50,491
Total general revenues 5,007,620
Program expenses
Land contribution conveyances 19,630
General government 319,041
Total program expenses 338,671
Increase in net position 4,668,949
Net position, beginning of year, previously reported 48,998,456
Restatement (129,526)
Net position, beginning of year, restated 48,868,930
Net position, end of year $ 53,537,879
The accompanying notes to the financial statements are an integral part of this statement.
8
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
BALANCE SHEET
GENERAL FUND
SEPTEMBER 30, 2015
ASSETS
Cash and investments $ 18,781,964
Due from BOCC 562,770
Due from State of Florida 30,457
Mortgages receivable 9,151,579
$ 28,526,770
LIABILITIES AND FUND EQUITY
Liabilities
Accounts payable $ 1,500
Accrued wages 14,052
Total liabilities 15,552
Fund balance
Nonspendable: mortgage loans 9,151,579
Restricted: land acquisition 12,062,441
Assigned: reserves 4,406,373
Unassigned 2,890,825
Total fund balances 28,511,218
Total liabilities and fund balance $ 28,526,770
Amounts reported in the statement of net position differ
from amounts reported above as follows:
Fund balance - total governmental funds $ 28,511,218
Capital assets used in governmental activities are not financial
resources and therefore are not reported above. 25,228,946
Deferred outflows of resources related to pensions 19,362
Compensated absences are not due and payable in the current
period and, therefore, are not reported in the governmental funds. (79,532)
Net pension liability (119,868)
Deferred inflows of resources related to pensions (22,247)
Net position of governmental activities $ 53,537,879
The accompanying notes to the financial statements are an integral part of this statement.
9
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2015
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current
Personnel
Operating
Capital outlay
Total expenditures
Excess of revenues over expenditures
Fund balance, beginning of year
Fund balance, end of year
Amounts reported for governmental activities in the statement
of activities are different because:
Net change in fund balances -total governmental fund
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those
assets is capitalized net of accumulated depreciation of $35
Contributions to the pension plan in the current fiscal year are not
included in the Statement of Activities
Land contribution conveyances are not reported on government
funds; this is the amount of land conveyances and
land contributions during the fiscal year 2015
Some expenses do not use current financial resources and,
therefore, are not reported as expenditures in governmental funds
Pension expense
Compensated absences
Change in net position of governmental activities
$ 4,957,129
50,491
5,007,620
248,654
83,560
1,814,447
2,146,661
2,860,959
25,650,259
$ 28,511,218
$ 2,860,959
1,814,412
3,773
(19,630)
3,000
6,435
$ 4,668,949
The accompanying notes to the financial statements are an integral part of this statement.
10
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 1—Summary of significant accounting policies
Reporting Entity — The Monroe County, Florida Comprehensive Plan Land Authority (the "Authority") is a legally
separate entity from Monroe County, Florida. However, the Monroe County Board of County Commissioners
serves as the governing board of the Authority, therefore, for financial reporting purposes, the Authority is
considered a component unit of Monroe County, Florida. The financial statements of the Authority are included
as a discretely presented component unit in the Monroe County, Florida Comprehensive Annual Financial
Report.
The Authority was established under Monroe County, Florida Ordinance 031-1986 pursuant to Florida Statute
380. Its purpose is to operate a land acquisition program in Monroe County, to implement the Monroe County
Comprehensive Plan and address issues created by it.
Basis of Accounting — Government fund financial statements are organized for reporting purposes on the basis
of a General Fund, the Authority's major fund, which accounts for all activities of the Authority and is accounted
for using the modified accrual basis of accounting. Revenues are recognized when they become measurable
and available as net current assets. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to pay liabilities of the current
period. The Authority considers all revenues available if collected within 60 days after year-end. Expenditures
are recognized when the related fund liability is incurred.
The government -wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows.
Budget — Prior to, or on September 30, the Authority's budget is legally enacted through passage of a
resolution. Budgeted to Actual Expenditure reports are employed as a management control device during the
year for the fund. The budget is adopted on a basis consistent with accounting principles generally accepted in
the United States of America, except that mortgage assistance cash outlays and receipts are budgeted as
operating activities and compensation accruals are not budgeted. For the fiscal year 2015, the following
adjustments were necessary to present the actual data on a budgetary basis for the General Fund excess of
revenues over expenditures:
GAAP basis $ 2,860,959
Compensation accrual difference 714
Non-GAAP budgetary basis $ 2,861,673
Capital Assets — Capital assets are defined by the Authority as land and those assets with an initial, individual
cost of $1,000 or more and an estimated useful life in excess of two years. Such assets consist of land and
equipment and, when purchased, are recorded at the Authority's cost. Where land was acquired by donation on
or prior to September 30, 2010, the asset was recorded at the Authority's transaction cost plus the higher of the
tax assessed value at the time of donation or 115% of the 1986 tax assessed value. Where land was acquired
by donation after September 30, 2010, the asset is recorded at the Authority's transaction cost plus the tax
assessed value at the time of donation. Land is not depreciated since it does not have a determinable useful
life. Equipment is depreciated using the straight line method over the useful life of the equipment.
11
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 1—Summary of significant accounting policies (continued)
Compensated Absences — The Authority's policy grants employees annual leave and sick leave in varying
amounts. Upon termination of employment, employees with six months or more of credited service can receive
payment for accumulated annual leave. In general, sick leave payments are granted upon termination of
employment to employees with five years or more of credited service. The maximum payment is subject to
percentage and maximum hour limitations. The amount of vested accumulated compensated absences payable
based on the Authority's annual and sick leave policies, is reported as a liability in the government -wide financial
statements. That liability includes earned but unused vacation and sick leave. Vacation leave is accrued based
on length of employment. Sick time is paid out based on length of employment up to one half of all accrued sick
leave, with a maximum of 120 days with 15 or more years of service.
Net Position — Net position in the government -wide fund financial statements is classified as net investment in
capital assets; restricted; and unrestricted. Restricted net position represent constraints on resources that are
either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments
imposed by law through state statute.
Fund Balances — In the governmental fund financial statements, fund balance is composed of five classifications
designated to disclose the hierarchy of constraints placed on how fund balance can be spent. The government
fund types classify fund balances as follows:
Nonspendable — Include amounts that cannot be spent because they are either not in spendable form,
or for legal or contractual reasons, must be kept intact. This classification includes inventories, prepaid
amounts, assets held for sale, and long-term receivables.
Restricted — Constraints placed on the use of these resources are either externally imposed by creditors
(such as through debt covenants), grantors, contributors or other governments; or are imposed by law
(through constitutional provisions or enabling legislation).
Committed — Amounts that can only be used for specific purposes because of formal action (resolution
or ordinance) by the government's highest level of decision -making authority.
Assigned — Amounts that are constrained by the Authority's intent to be used for specific purposes, but
that do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the
governing body, another body (such as a Finance Committee), or by an official whom that authority has
been given. With the exception of the General Fund, this is the residual fund balance classification for
all governmental funds with positive balances.
Unassigned — This is the residual classification of the General Fund. Only the General Fund reports a
positive unassigned fund balance. Other governmental funds might report a negative balance in this
classification, as the result of overspending for specific purposes for which amounts had been
restricted, committed, or assigned.
Cash and Investments — The Authority's cash and investments consist of demand deposits and highly liquid
investments with maturities of 90 days or less when purchased. All investments are reported at fair value.
Use of Estimates - The preparation of the financial statements requires management to make use of estimates
that affect reported amounts. Actual results could differ from those estimates.
12
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 2—Deposits and investments
As of September 30, 2015, the Authority has the following deposits and investments:
Demand deposits $ 617,230
Local Governmental Surplus Trust Florida PRIME 18,164,734
Total deposits and investments $ 18,781,964
The Authority places its cash and investments on deposit with financial institutions in the United States. The
Federal Deposit Insurance Corporation (FDIC) covers $250,000 for substantially all depository accounts. The
Authority from time to time may have amounts on deposit in excess of the insured limits and the remaining
balances are insured 100% by the State of Florida collateral pool, a multiple financial institution pool with the
ability to assess its members for collateral shortfalls if a member institution fails. As of September 30, 2015, the
cash and investments have a bank balance of $622,741.
The Authority's investment policy is in accordance with Florida Statute 218.415. This policy authorizes
investments in demand deposits, the Local Government Surplus Trust Fund, money market funds with the
highest credit quality rating from a nationally recognized agency, or direct obligations of the United States
Treasury.
As of September 30, 2015, the Authority had $18,164,734 invested in the Local Government Surplus Trust
Fund, all of which is invested in Florida PRIME.
The Local Government Surplus Trust Fund has been in existence for over 25 years and is administered by the
Governor, Chief Financial Officer, and Attorney General of the State of Florida sitting as the State Board of
Administration. On November 29, 2007, the SBA suspended withdrawals from the Fund due to concerns of
insufficient liquidity. On December 4, 2007 the SBA divided the Fund into two pools, Fund A and Fund B, based
on security quality.
Fund A re -opened for limited withdrawals on December 5, 2007 and has since resumed normal operations
under the name Florida PRIME. Fund B remains closed to withdrawals and new investors. Participants receive
periodic distributions of their Fund B principal in the form of transfers to their Fund A accounts. As of September
30, 2014, the SBA had returned 100% of Fund B's original balance to investors in this manner.
When the SBA created Fund B on December 4, 2007, the Authority had an account balance of $1,287,034. As
of September 30, 2014, the SBA had returned the full amount to the Authority, leaving a balance of $0. The net
asset value of the Authority's account balance on September 30, 2014 was $0. On July 13, 2015 the State
Board of Administration made a Fund B distribution per Section 218.4121(2)(E), F.S. and the Authority received
and recorded a current year realized gain of $17,570.
The Florida PRIME is rated by Standard and Poors. The current rating is AAAm. The weighted average days to
maturity (WAM) of the Florida PRIME at September 30, 2015 is 29 days. Next interest rate reset days for
floating rate securities are used in the calculation of the WAM. The Florida PRIME was not exposed to any
foreign currency risk during the period from October 1, 2014 through September 30, 2015. The Florida PRIME
did not participate in any securities lending program in the period October 1, 2014 through September 30, 2015.
13
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 3—Mortgages receivable
Mortgages receivable as of September 30, 2015 are as follows:
First mortgage due from governmental agency, collateralized by land, payable in full April
2028, interest free (OR 1514-594) $ 382,554
Second mortgage due from governmental agency, collateralized by land, payable in full
November 2034, interest free (OR 1697-2076) and (as amended at OR 2442-1497) 1,500,000
Second mortgage due from governmental agency, collateralized by land, payable in full
January 2034, interest free (OR 1965-1039) 2,210,000
First mortgage due from governmental agency, collateralized by land, payable in full
September 2045, interest free (OR 1395-1409) 59,025
Third mortgage due from private company, collateralized by land, payable in full May 2050,
interest free (OR 1749-2340) 1,089,000
Third mortgage due from private company, collateralized by land, payable in full September
2053, interest free (OR 1939-405) 1,500,000
Second mortgage due from governmental agency, collateralized by land, payable in full July
2040, interest free (OR 2475-1762) 836,000
Third mortgage due from governmental agency, collateralized by land, forgivable July 2040,
interest free (OR 2475-1767) 800,000
Second mortgage due from governmental agency, collateralized by land, payable in full
November 2041, interest free (OR 2541-877/884) 225,000
Third mortgage due from governmental agency, collateralized by land, forgivable November
2041, interest free (OR 2541-885/895) 550,000
Total mortgages receivable $ 9,151,579
The mortgages receivable are presented as nonspendable fund balance, which indicates that they do not
constitute "available spendable resources," even though they are a component of total assets.
14
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 4—Capital assets
A summary of changes in capital assets is as follows:
Balance Balance
09/30/14 Additions Deductions 09/30/15
Capital assets, not depreciated:
Land $ 23,434,129 $ 1,814,447 $ (19,630) $ 25,228,946
Total capital assets, not depreciated 23,434,129 1,814,447 (19,630) 25,228,946
Capital assets, depreciated:
Equipment 1,093 - - 1,093
Total capital assets, depreciated 1,093 - - 1,093
Less accumulated depreciation (1,058) (35) - (1,093)
Total capital assets, depreciated, net 35 (35) - -
Total capital assets, net $ 23,434,164 $ 1,814,412 $ (19,630) $ 25,228,946
The City of Key West leases one property with a cost of $101,606 from the Authority. This property, which is
included in capital assets, is used to provide city recreational facilities. The term of the lease provides for rental
of $1 per year for 30 years, expiring in the year 2022. Monroe County provides the Authority's office space at no
cost.
Note 5—Long-Term Obligations — Compensated Absences and Pension Liabilities
The following is a summary of changes in the Authority's long-term obligations for the fiscal year ended
September 30, 2015:
Balance Balance Current
09/30/14 Additions Deductions 09/30/15 Portion
Compensated absences $ 85,967 $ 25,935 $ (32,370) $ 79,532 $ 14,737
Net pension liability 84,580 35,288 - 119,868 -
$ 170,547 $ 61,223 $ (32,370) $ 199,400 $ 14,737
15
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6—Florida Retirement System Retirement Plans
Florida Retirement Svstem
General Information - All of the Authority's employees participate in the Florida Retirement System (FRS). As
provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer
defined benefit plans administered by the Florida Department of Management Services, Division of Retirement,
including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under
Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan")
alternative to the FRS Pension Plan, which is administered by the State Board of Administration ("SBA"). As a
general rule, membership in the FRS is compulsory for all employees working in a regularly established position
for a state agency, county government, district school board, state university, community college, or a
participating city or special district within the State of Florida. The FRS provides retirement and disability
benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefits are
established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to
the law can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes financial statements and
required supplementary information for the FRS. The latest available report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee,
Florida 32315-9000, or from the Web site:
www.dms.mvflorida.com/workforce operations/retirement/publications.
Pension Plan
Plan Description — The Pension Plan is a cost -sharing multiple -employer defined benefit pension plan, with a
Deferred Retirement Option Program ("DROP") for eligible employees.
Benefits Provided - Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class
members who retire at or after age 62 with at least six years of credited service or 30 years of service
regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average
compensation based on the five highest years of salary, for each year of credited service. Vested members
with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special
Risk Administrative Support class members who retire at or after age 55 with at least six years of credited
service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life,
equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of
credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional
officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service
regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final
average compensation based on the five highest years of salary for each year of credited service. Senior
Management Service class members who retire at or after age 62 with at least six years of credited service or
30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0%
of their final average compensation based on the five highest years of salary for each year of credited service.
Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30
years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0%
(3.33% for judges and justices) of their final average compensation based on the five highest years of salary for
each year of credited service.
it.
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6-Florida Retirement System Retirement Plans (continued)
For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of
credited service for all these members and increasing normal retirement to age 65 or 33 years of service
regardless of age for Regular, Senior Management Service, and Elected Officers' class members, and to age
60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class
members. Also, the final average compensation for all these members will be based on the eight highest years
of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan
before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living
adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service
credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -
of -living adjustment is a proportion of three percent determined by dividing the sum of the pre -July 2011
service credit by the total service credit at retirement multiplied by three percent. Plan members initially
enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly
retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60
months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue
interest. There are no required contributions by DROP participants.
Contributions - Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are
required to contribute three percent of their salary to the FRS. In addition to member contributions,
governmental employers are required to make contributions to the FRS based on state-wide contribution rates
established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer
contribution rates by job class for the periods from October 1, 2014 through June 30, 2015 and from July 1,
2015 through September 30, 2015, respectively, were as follows: Regular-7.37% and 7.26%; Special Risk
Administrative Support-42.07% and 32.95%; Special Risk-19.82% and 22.04%; Senior Management
Service-21.14% and 21.43%; Elected Officers'-43.24% and 42.27%; and DROP participants-12.28% and
12.88%. These employer contribution rates include 1.20% and 1.26% HIS Plan subsidy for the periods October
1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively.
The Authority's contributions, including employee contributions, to the Pension Plan totaled $19,978 for the
fiscal year ended September 30, 2015.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions - At September 30, 2015, the Authority reported a liability of $58,606 for its proportionate
share of the Pension Plan's net pension liability. The net pension liability was measured as of June 30, 2015,
and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of July 1, 2015. The Authority's proportionate share of the net pension liability was based on the Authority's
2014-15 fiscal year contributions relative to the 2013-14 fiscal year contributions of all participating members.
At June 30, 2015, the Authority's proportionate share was .000454 percent, which was a decrease of .000002
percent from its proportionate share measured as of June 30, 2014.
17
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6—Florida Retirement System Retirement Plans (continued)
For the fiscal year ended September 30, 2015, the Authority recognized pension expense of $2,725. In addition
the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Description
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between Authority pension
plan contributions and proportionate share of contributions
Authority pension plan contributions subsequent to the measurement
date
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 6,187 $ 1,390
3,890 -
- 13,994
- 6,341
2,905 -
$ 12,982 $ 21,725
The deferred outflows of resources related to the Pension Plan, totaling $2,905 resulting from Authority
contributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the net
pension liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense
as follows:
Year ended June 30
2016
2017
2018
2019
2020
Thereafter
Total
$ 10,175
10,175
10,175
(15,165)
(2,945)
(767)
$ 11,648
Actuarial Assumptions — The total pension liability in the June 30, 2015 actuarial valuation was determined
using the following actuarial assumptions, applied to all period included in the measurement:
Inflation 2.60%
Salary increases 3.25%, average, including inflation
Investment rate of return 7.65%, net of pension plan investment
expense, including inflation
Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables.
The actuarial assumptions used in the July 1, 2015, valuation were based on the results of an actuarial
experience study for the period July 1, 2008 through June 30, 2013.
18
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6-Florida Retirement System Retirement Plans (continued)
The long-term expected rate of return on Pension Plan investments was not based on historical returns, but
instead is based on a forward -looking capital market economic model. The allocation policy's description of
each asset class was used to map the target allocation to the asset classes shown below. Each asset class
assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation
assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each
major asset class are summarized in the following table:
Asset Class
Target
Allocation (1)
Compound
Annual Annual
Arithmetic (Geometric) Standard
Return Return Deviation
Cash
1.00%
3.11 %
3.10%
1.65%
Intermediate - Term Bonds
18.00%
4.18%
4.05%
5.15%
High Yield Bonds
3.00%
6.79%
6.25%
10.95%
Broad US Equities
26.50%
8.51%
6.95%
18.90%
Developed Foreign Entities
21.20%
8.66%
6.85%
20.40%
Emerging Market Equities
5.30%
11.58%
7.60%
31.15%
Private Equity
6.00%
11.80%
8.11 %
30.00%
Hedge Funds/Absolute Return
7.00%
5.81 %
5.35%
10.00%
Real Estate (Property)
12.00%
7.11 %
6.35%
13.00%
Total 100.00%
Assumed Inflation - Mean 2.60% 2.00%
(1) As outlined in the Pension Plan's investment policy
Discount Rate - The discount rate used to measure the total pension liability was 7.65%. The Pension Plan's
fiduciary net position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the discount rate for calculation of the total pension liability is equal to
the long-term expected rate of return.
Sensitivitv of the Authoritv's Proportionate Share of the Net Position Liabilitv to Chanaes in the Discount Rate -
The following represents the Authority's proportionate share of the net pension liability calculated using the
discount rate of 7.65%, as well as what the Authority's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is one percentage point lower (6.65%) or one percentage point
higher (8.65%) than the current rate:
Current Discount
1% Decrease Rate 1% Increase
6.65% 7.65% 8.65%
$ 151,859 $ 58,605 $ (18,998)
19
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6—Florida Retirement System Retirement Plans (continued)
Pension Plan Fiduciary Net Position — Detailed information regarding the Pension Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State -Administered Systems Comprehensive
Annual Financial Report.
HIS Plan
Plan Description — The HIS Plan is a cost -sharing multiple -employer defined benefit pension plan established
under Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The
benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health
insurance costs and is administered by the Florida Department of Management Services, Division of
Retirement.
Benefits Provided — For the fiscal year ended September 30, 2015, eligible retirees and beneficiaries received a
monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a
minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these
benefits, a retiree under a State -administered retirement system must provide proof of health insurance
coverage, which may include Medicare.
Contributions — The HIS Plan is funded by required contributions from FRS participating employers as set by the
Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS
members. For the fiscal year ended September 30, 2015, the HIS contribution for the period October 1, 2014
through June 30, 2015 and from July 1, 2015 through September 30, 2015 was 1.20% and 1.26%, respectively.
The Authority contributed 100% of its statutorily required contributions for the current and preceding three years.
HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan
benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative
appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced
or cancelled.
The Authority's contributions to the HIS Plan totaled $2,643 for the fiscal year ended September 30, 2015.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions — At September 30, 2015, the Authority reported a liability of $61,262 for its proportionate
share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2015, and
the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as
of July 1, 2015. The Authority's proportionate share of the net pension liability was based on the Authority's
2014-15 fiscal year contributions relative to the 2013-14 fiscal year contributions of all participating members.
At June 30, 2015, the Authority's proportionate share was .000601 percent, which was a decrease of .000007
percent from its proportionate share measured as of June 30, 2014.
20
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6—Florida Retirement System Retirement Plans (continued)
For the fiscal year ended September 30, 2015, the Authority recognized pension expense of $4,607. In addition
the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Changes of assumptions
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between Authority pension
plan contributions and proportionate share of contributions
Authority pension plan contributions subsequent to the measurement
date
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 4,820 $ -
33 -
660 522
867 -
$ 6,380 $ 522
The deferred outflows of resources related to the HIS Plan, totaling $867 resulting from Authority contributions
to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as follows:
Year ended June 30
2016
2017
2018
2019
2020
Thereafter
Total
$ 863
863
863
856
853
693
$ 4,991
Actuarial Assumptions — The total pension liability in the July 1, 2015, actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Inflation
Salary increases
Municipal bond rate
2.60%
3.25%, average, including inflation
4.29%
Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables.
The actuarial assumptions used in the July 1, 2015, valuation were based on the results of an actuarial
experience study for the period July 1, 2008 through June 30, 2013.
21
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6—Florida Retirement System Retirement Plans (continued)
Discount Rate — The discount rate used to measure the total pension liability was 4.29%. In general, the
discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the
long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS
benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and
the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The
Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond
index.
Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount Rate -
The following represents the Authority's proportionate share of the net pension liability calculated using the
discount rate of 4.29%, as well as what the Authority's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is one percentage point lower (3.29%) or one percentage point
higher (5.29%) than the current rate:
Current Discount
1% Decrease Rate 1% Increase
3.29% 4.29% 5.29%
69,805 $ 61,262 $ 54,138
Pension Plan Fiduciary Net Position — Detailed information regarding the HIS Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State -Administered Systems Comprehensive
Annual Financial Report.
Investment Plan
The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan
is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial
Report.
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the
Investment Plan in lieu of the FRS defined benefit plan. Authority employees participating in DROP are
not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts
contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on
the performance of investment funds. Benefit terms, including contribution requirements, for the Investment
Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with
the same employer and employee contribution rates that are based on salary and membership class (Regular
Class, Elected Authority Officers, etc.), as the Pension Plan. Contributions are directed to individual member
accounts, and the individual members allocate contributions and account balances among various approved
investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance
Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of
plan members. Allocations to the investment member's accounts during the 2014-15 fiscal year, as
established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as
follows: Regular class 6.30%, Special Risk Administrative Support class 7.95%, Special Risk class 14.00%,
Senior Management Service class 7.67% and Authority Elected Officers class 11.34%.
22
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 6—Florida Retirement System Retirement Plans (continued)
For all membership classes, employees are immediately vested in their own contributions and are vested
after one year of service for employer contributions and investment earnings. If an accumulated benefit
obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the
member must have the years of service required for Pension Plan vesting (including the service credit
represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested
employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS -
covered employment within the five-year period, the employee will regain control over their account. If the
employee does not return within the five-year period, the employee will forfeit the accumulated account
balance. For the fiscal year ended September 30, 2015, the information for the amount of forfeitures was
unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to
the Authority.
After termination and applying to receive benefits, the member may rollover vested funds to another
qualified plan, structure a periodic payment under the Investment Plan, receive a lump sum distribution, leave
the funds invested for future distribution, or any combination of these options. Disability coverage is
provided; the member may either transfer the account balance to the Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the
Investment Plan and rely upon that account balance for retirement income.
The Authority's Investment Plan pension expense totaled $0 for the fiscal year ended September 30, 2015.
Note 7—Other Postemployment Benefit (OPEB) Plan
The Monroe County Board of County Commissioners (BOCC) administers a single -employer defined benefits
healthcare plan (the "Plan"). Florida Statute 112.0801 requires the County to provide retirees and their eligible
dependents with the option to participate in the Plan if the County provides health insurance to its active
employees and their eligible dependents. The Plan provides medical coverage, prescription drug benefits, and
life insurance to both active and eligible retired employees. The Plan does not issue a publicly available financial
report.
The BOCC may amend the plan design, with changes to the benefits, premiums and/or levels of participant
contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment
process, the BOCC approves the rates for the coming calendar year for the retiree and County contributions.
Eligibility for postemployment participation in the Plan is limited to full time employees of the County, the
Authority, and the Constitutional Officers. Employees who retire as an active participant in the Plan and were
hired on or after October 1, 2001 may continue to participate in the Plan by paying the monthly premium
established annually by the BOCC. Employees who retire as an active participant in the plan, were hired before
October 1, 2001, have at least ten years of full time service with the County, and meet the retirement criteria of
the Florida Retirement System (FRS) may maintain their group health insurance benefits with Monroe County
following their retirement provided they contribute a premium of $5 per month for each year of creditable service
with the FRS at the time of retirement with Monroe County and will pay at a minimum $50 per month up to the
maximum of $150 per month. Retirees who have met the requirements for early retirement, have not achieved
age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly
premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be a
premium of $5 per month for each year of creditable service with the FRS at the time of retirement with Monroe
County and will pay at a minimum $50 per month up to the maximum of $150 per month. Surviving spouses and
dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are
met.
23
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 7—Other Postemployment Benefit (OPEB) Plan (continued)
The BOCC engages an actuarial firm on a biannual basis to determine the County's actuarially determined
annual required contribution and unfunded obligation. The Authority has no responsibility to the Plan other than
to make the periodic payments determined by the BOCC. Further information about the Plan is available in the
County's Comprehensive Annual Financial Report which is published on the Clerk's website at www.clerk-of-
the-court cnm
Note 8—Fund balance
As a general rule, the Executive Director will select the most restricted resource permissible and available to
fund a given activity. This practice will generally track the following hierarchy: miscellaneous funds consisting of
grants restricted for specific purposes, State Park and Tourist Impact Tax funds, and lastly unrestricted sources
such as interest income and unrestricted miscellaneous funds. In terms of fund balance classification,
expenditures are generally to be spent from restricted fund balance first, followed in order by committed fund
balance, assigned fund balance, and lastly unassigned fund balance as applicable. The Executive Director has
the authority to deviate from this practice if it is in the best interest of the Authority.
The following schedule provides management and citizens with information on the position of General Fund
balance that is available for appropriation.
Total fund balance - General fund $ 28,511,218
Less:
Mortgage loans 9,151,579
Restricted for land acquisition 12,062,441
Assigned for reserves 4,406,373
Unassigned fund balance $ 2,890,825
Note 9—Risk management
The Authority is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The Authority participates in the coverage
provided by the Board for Workers' Compensation, Group Insurance, and Risk Management internal service
funds. Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular
employees. Workers' Compensation claims in excess of the self -insured coverage are covered by an excess
insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a
$200,000 self insured retention, and building property damage is covered for the actual value of the buildings
with a deductible of $50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases
commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss.
Settled claims have not exceeded this commercial coverage in any of the past three years. The Authority makes
payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of
the amounts needed to pay prior and current year claims.
24
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 10—Commitments
The Authority had approximately $493,731 of commitments to acquire various properties as of September 30,
2015.
Note 11—Change in accounting principles
In June 2012, the GASB issued Statement 68, Accounting and Financial Reporting for Pensions —an
amendment of GASB Statement 27. GASB 68 improves accounting and financial reporting by state and local
governments for pensions. It also improves information provided by state and local governmental employers
about financial support for pensions that is provided by other entities. This Statement results from a
comprehensive review of the effectiveness of existing standards of accounting and financial reporting for
pensions with regard to providing decision -useful information, supporting assessments of accountability and
inter -period equity, and creating additional transparency. This Statement is effective for fiscal years beginning
after June 15, 2014. The Authority adopted this Statement effective October 1, 2014. The implementation of
Statement No. 68 resulted in a restatement of beginning net position, as well as related deferred outflows of
resources and deferred inflows of resources due to recording of the Authority's net pension liability on the
statement of net position.
In November 2013, the GASB issued Statement 71, Pension Transition for Contributions Made Subsequent to
the Measurement Date — an amendment of GASB Statement 68. The objective of this Statement is to address
an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial
Reporting for Pensions. This Statement amends paragraph 137 of Statement 68 to require that, at transition, a
government recognize a beginning deferred outflow of resources for its pension contributions, if any, made
subsequent to the measurement date of the beginning net pension liability. This Statement is effective for fiscal
years beginning June 15, 2014. The Authority adopted this Statement effective October 1, 2014. The
implementation of Statement No. 68 and 71 resulted in the reporting of the Authority's net pension liability, as
well as related deferred outflows of resources and deferred inflows of resources for its pension contributions
made subsequent to the measurement date of the beginning net pension liability.
Note 12—Restatement
The restatement resulted from the implementation of GASB Statement No. 68, Accounting and Financial
Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to
the Measurement Date, which required employers providing a defined benefit pension plan to report the net
pension liabilities of the plans. Beginning net position was restated as shown below for fiscal year 2015:
Governmental
Activities
Net position - beginning, previously reported $ 48,998,456
Adjustments:
Net pension liability and related costs (129,526)
Net position - beginning, restated $ 48,868,930
25
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2015
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability
Florida Retirement System Pension Plan
9/30/2015
9/30/2014
9/30/2013
Authority's proportion of the net pension liability
0.000454%
0.000455%
0.000507%
Authority's proportionate share of the net pension liability
$ 58,605 $
27,783 $
87,364
Authority's covered -employee payroll
$ 193,209 $
182,750 $
174,782
Authority's proportionate share of the net pension
liability as a percentage of its covered employee payroll
30.33%
15.20%
49.98%
Plan fiduciary net position as a percentage of the
total pension liability
92.00%
96.09%
N/A
Note: Data was unavailable prior to 2013
Schedule of the Authority's Contributions to the Florida Retirement System Pension Plan
2015 2014
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
Authority's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
Note: Data was unavailable prior to 2014.
$ 11,462 $ 9,002
11,462 9,002
$ - $ -
$ 193,209 $ 182,750
5.93% 4.93%
26
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2015
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability
Health Insurance Subsidy Plan
9/30/2015
9/30/2014
9/30/2013
Authority's proportion of the net pension liability
0.000600%
0.000607%
0.000597%
Authority's proportionate share of the net pension liability
$ 61,262
$ 56,796
$ 51,972
Authority's covered -employee payroll
$ 193,209
$ 182,750
$ 174,782
Authority's proportionate share of the net pension
liability as a percentage of its covered employee payroll
31.71 %
31.08%
29.74%
Plan fiduciary net position as a percentage of the
total pension liability
0.50%
0.99%
N/A
Note: Data was unavailable prior to 2013
Schedule of the Authority's Contributions to the Health Insurance Subsidy Plan
2015 2014
Contractually required contribution $ 2,643 $ 2,097
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
Authority's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
Note: Data was unavailable prior to 2014.
2,643 2,097
$ - $ -
$ 193,209 $ 182,750
1.37% 1.15%
27
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND (BUDGETARY BASIS)
YEAR ENDED SEPTEMBER 30, 2015
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Personnel and operating
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Variance
with Final
Budget
Positive
Budget Actual (Negative)
Original Final
$ 3,200,000 $ 3,200,000 $ 4,957,129 $ 1,757,129
20,000 20,000 50,491 30,491
3,220,000 3,220,000 5,007,620 1,787,620
371,200 391,200 331,500 59,700
16,842,176 16,842,176 1,814,447 15, 027,729
17,213,376 17,233,376 2,145,947 15,087,429
(13,993,376) (14,013,376) 2,861,673 16,875,049
Fund balance, beginning of year
16,512,018
16,512,018
16,512,018 -
Fund balance, end of year
$ 2,518,642
$ 2,498,642
19,373,691 $ 16,875,049
Reconciliation of budgetary
to full accrual basis
Reconciling items
Mortgages receivable 9,151,579
Compensation accrual (14,052)
Fund balance, end of year (full accrual) $ 28,511,218
28
SUPPLEMENTARY INDEPENDENT AUDITOR'S REPORTS
`� Cherry Bekaert"P
CPAs & Advisors
Report of Independent Auditor 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
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
We have audited, in accordance with the 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, the financial statements of the governmental activities and the major
fund of the Monroe County Comprehensive Plan Land Authority (the "Authority") as of and for the year ended
September 30, 2015, and the related notes to the financial statements, and have issued our report thereon
dated May 24, 2016 for the purpose of compliance with Section 218.39(2), Florida Statutes and Chapter 10.550,
Rules of the Auditor General -Local Governmental Entity Audits.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority's internal control
over financial reporting ("internal control") to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an
opinion on the effectiveness of the Authority's internal control.
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 a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Authority's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is
a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance 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.
29
Purpose of this Report
The purpose of this report is intended solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
Orlando, Florida
May 24, 2016
30
`� Cherry Bekaert"`
CPAs & Advisors
Independent Auditor's Management Letter
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
Report on the Financial Statements
We have audited the financial statements of the Monroe County Comprehensive Plan Land Authority (the
"Authority"), a component unit of Monroe County, Florida, as of and for the fiscal year ended September 30,
2015, and have issued our report thereon dated May 24, 2016.
Auditor's Responsibility
We conducted our audit 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; and Chapter 10.550, Rules of the Auditor General.
Other Reports
We have issued our Report of Independent Auditor 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 and Report of Independent Accountant on Compliance with Local Government
Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the
Auditor General Disclosures in those reports, which are dated May 24, 2016, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
report. There were no recommendations made in the preceding audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for
the primary government and each component unit of the reporting entity be disclosed in this management letter,
unless disclosed in the notes to the financial statements. The Authority was established by Monroe County,
Florida Ordinance 031-1986 pursuant to Florida Statute 380. There are no component units related to the
Authority.
Financial Condition
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the Authority has met one or more of the conditions described in Section
218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we
determined that the Authority did not meet any of the conditions described in Section 218.503(1), Florida
Statutes.
Pursuant to Section 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition
assessment procedures. It is management's responsibility to monitor the Authority's financial condition, and our
financial condition assessment was based in part on representations made by management and the review of
the financial information provided by same.
31
Annual Financial Report
Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the Authority for the fiscal year ended September 30,
2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes,
is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015. The
Authority, as a discretely presented component unit of Monroe County, Florida, includes its financial information
in the annual report filed by the County. In connection with our audit, we determined that these two reports were
in agreement.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. In connection with our audit, we did not have any such
recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of
contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect
on the financial statements that is less than material but which warrants the attention of those charged with
governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules
of the Auditor General. Accordingly, this management letter is not suitable for any other purpose.
Orlando, Florida
May 24, 2016
32
�� Cherry Bekaert"`
CPAs & Advisors
Report of Independent Accountant on Compliance
with Local Government Investment Policies
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
Report on Compliance
We have examined the Monroe County Florida Comprehensive Plan Land Authority's (the "Authority")
compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, for
the year ended September 30, 2015. Management is responsible for the Authority's compliance with those
requirements. Our responsibility is to express an opinion on the Authority's compliance based on our
examination.
Scope
Our examination was conducted in accordance with attestation standards established by the American Institute
of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the
Authority's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Authority's compliance with specified
requirements.
Opinion
In our opinion, the Authority complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2015.
Orlando, Florida
May 24, 2016
33