FY2011MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Financial Statements
For the Year Ended
September 30, 2011
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Table of Contents
Independent Auditors' Report ---------------••--------...........---....................----•-...
Management's Discussion and Analysis ....................................................
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Assets
----------•----•-------------•--......----------------•-••-•-•---------.
Statement of Activities
Fund Financial Statements
Balance Sheet - General Fund
..............................................................
Statement of Revenues, Expenditures and Changes in
Fund Balance - General Fund
Notes to Financial Statements
...............................................................
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - General Fund (Budgetary Basis)_
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' 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 Auditors' Management Letter
Page
2-3
4-7
23-24
25 — 26
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INDEPENDENT AUDITORS' REPORT
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida:
We have audited the accompanying financial statements of the governmental activities and the
major fund of Monroe County Comprehensive Plan Land Authority (the "Authority"), a
component unit of Monroe County, Florida, as of and for the year ended September 30, 2011,
which collectively comprise the Authority's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the Authority's management. 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 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 opinions.
In our opinion, based on our audit, 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, 2011, and the respective changes in financial
position 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 our report dated
February 2, 2012 on our consideration of the Authority's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and 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.
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The management's discussion and analysis and required supplementary information listed in
the foregoing table of contents are not a required part of the basic financial statements but are
supplementary information required by the Governmental Accounting Standards Board. 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.
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Orlando, Florida
February 2, 2012
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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, 2011.
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. In addition to basic financial statements, this report also contains
supplementary information addressing budget, internal control, and compliance issues.
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 Assets presents information on all of the Authority's assets and liabilities,
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 Authority is
improving or deteriorating.
The Statement of Activities presents information showing how the Authority's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. In this format capital assets are capitalized and depreciated, whereas in the fund -level
format described below the related purchases are treated as expenses.
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 Balances 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.
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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.
Government -wide Financial Analysis
Statement of Net Assets. In the Statement of Net Assets presented on page 8, the Authority's
assets total $38,515,780 and include cash and cash equivalents, amounts due from other
governments for tourist impact tax and park surcharge fees, mortgages receivable, office
equipment, and capital assets in the form of acquired land. The cash and cash equivalents
include funds invested in the Local Government Surplus Trust Funds Investment Pool Fund B,
which are subject to withdrawal restrictions and an unrealized loss described in Note 2. The
mortgage receivables consist of eight long-term balloon loans issued for the acquisition of
affordable housing sites as described in Note 3.
Cash and cash equivalents 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 cash equivalents
total $12,263,786. This amount compares with $9,951,757 at the end of the previous fiscal
year, an increase of $2,312,029. Approximately 45% of the Authority's assets consist of land
acquired for specific public purposes, approximately 22% consist of mortgages, and
approximately 32% are categorized as cash and cash equivalents.
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. Total liabilities are $91,850.
The Authority's resulting net assets are categorized as those invested in capital assets, those
restricted specifically for the acquisition of land (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 assets are $38,423,930, an increase of $3,071,064 over the prior year.
Of this total, $17,505,588 is invested in capital assets, $5,284,771 is restricted for the
acquisition of property, and $15,633,571 is unrestricted.
The following table provides a condensed comparison of the Authority's Statement of Net
Assets at year end for 2011 and 2010:
Cash and cash equivalents
Capital and other assets
Total assets
Accounts payable and other liabilities
Long-term liabilities
Total liabilities
Net assets
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
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2011
$ 12,263,786
26,251,994
38,515,780
13,371
78,479
2010
$ 9,951,757
25,494,953
35,446,710
14,734
79,110
91,850 93,844
17,505,588
5,284,771
15,633,571
$ 38,423,930
16,816,564
2,859,459
15,676,843
$ 35,352,866
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Statement of Activities. In the Statement of Activities presented on page 9, the Authority's
revenues total $3,367,152 and include intergovernmental revenue consisting of tourist impact
tax and park surcharge fees, investment income consisting of interest on cash and investment
accounts, and miscellaneous income from a grant, and conservation land donated to the
Authority by private parties. The investment income shown is the total of interest on cash and
investment accounts plus the current year portion of the unrealized gain on funds invested, in
Local Government Surplus Trust Funds Investment Pool Fund B described in Note 2. The
Authority's overall revenues decreased by $56,946 compared to the prior year. This decrease
was the net result of increases in tourist impact tax, grant, and land contribution revenues
together with a decrease in revenue from the sale of land.
The program expenses listed in the Statement of Activities consist of $296,088 of general
government expenses, which include the Authority's personnel and operating expenses plus the
amount by which compensated absences increased during the current year. Total program
expenses for fiscal year 2011 decreased by $1,334,558 compared to the prior year, largely
because the Authority did not donate or sell any property.
The following table provides a condensed comparison of the Authority's governmental activities
at year end for 2011 and 2010:
General revenues:
Intergovernmental
Investment income
Miscellaneous income
Land contributions
Total general revenues
Program expenses:
Land contribution conveyances
Cost of land sale
General government
Total program expenses
Increase in net assets
Financial Analysis of the General Fund
2011
$ 3,247,727
51,100
45,908
22,417
3,367,152
296,088
296,088
2010
$ 2,874,078
99,420
450,600
3,424,098
339,767
987,202
303,677
1,630,646
$ 3,071,064 $ 1,793,452
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.
Balance Sheet. The General Fund Balance Sheet presented on page 10 lists the Authority's
assets and liabilities in a manner similar to the government -wide Statement of Net Assets.
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) and the
liability section excludes compensated absences that the Authority will pay in the future.
Presented in this manner, the Authority's assets are $21,010,192 and its liabilities are $13,371.
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This statement identifies $20,996,821 of total fund balance. Of this total, $8,376,579 is
attributable to funds the Authority will receive in the future from the repayment of mortgage
loans, and is therefore classified as nonspendable; $5,284,771 is attributable to funds restricted
for land acquisition and is therefore classified as restricted; and $7,335,471 is attributable to
funds which may be used for all purposes authorized by the Authority's enabling legislation and
is therefore classified as unassigned. Compared to the prior year, the amount of fund balance
reserved for mortgage loans did not change, the amount restricted for land acquisition
increased by $2,425,312, the remaining fund balance decreased by $43,903, and total fund
balance increased by $2,381,409.
Statement of Revenues, Expenditures and Changes in Fund Balance. The General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance presented on page 11
lists the Authority's revenues and expenditures in a manner similar to the government -wide
Statement of Activities. However, in this format the revenues exclude land contributions, while
the expenditures include land purchases (as capital outlay) and exclude land donations to other
entities (land contribution conveyances). Presented in this manner, the Authority's revenues are
$3,344,735 and its expenditures are $963,326.
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. To account
for unanticipated grant revenue, there was one supplemental appropriation to amounts
originally budgeted for fiscal year 2011.
As shown in the Budget and Actual schedule on page 22, the Authority operated well within the
limits established by its adopted budget. Actual revenues exceed the budgeted amount by
$968,827, while actual expenditures are $9,448,101 less than budget. Most of the revenue
surplus consists of tourist impact tax revenue. The investment income of $51,100 consists of
$25,408 of interest together with the $25,692 current year portion of the unrealized 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 17, the Authority's investment in capital assets amounts to
$17,505,588, an increase of $689,024 compared to the prior year. The increase was the net
result of $689,482 of land acquired less $458 in equipment depreciation.
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 Mark Rosch, Executive Director, at 1200 Truman Avenue,
Suite 207, Key West, FL 33040.
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BASIC FINANCIAL STATEMENTS
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Statement of Net Assets
September 30, 2011
Assets
Cash and cash equivalents
$ 12,263,786
Due from BOCC
347,909
Due from State of Florida
21,918
Mortgages receivable
8,376,579
Equipment, net of accumulated depreciation
1,450
Capital assets -land
17,504,138
Total assets 38,515,780
Liabilities and Net Assets
Current liabilities:
Accounts payable
3,231
Accrued wages
10,140
Compensated absences
22,640
Total current liabilities
36,011
Noncurrent liabilities:
Compensated absences 55,839
Total noncurrent liabilities 55,839
Total liabilities 91,850
Net assets
Invested in capital assets 17,505,588
Restricted 5,284,771
Unrestricted 15,633,571
Total net assets $ 38,423,930
The notes to the financial statements
are an integral part of this statement. 8
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Statement of Activities
Year Ended September 30, 2011
General revenues
Intergovernmental
Investment income
Miscellaneous income
Land contributions
Total general revenues
Program expenses
General government
Total program expenses
Increase in net assets
Net assets - beginning of year
Net assets - end of year
The notes to the financial statements
are an integral part of this statement. 9
$ 3,247,727
51,100
45,908
22,417
3,367,152
296,088
296,088
3,071,064
35, 352, 866
$ 38,423,930
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Balance Sheet
General Fund
September 30, 2011
Assets
Cash and cash equivalents
Due from BOCC
Due from State of Florida
Mortgages receivable
Liabilities and Fund Equity
Liabilities
Accounts payable
Accrued wages
Total liabilities
Fund balance
Nonspendable: mortgage loans
Restricted: land acquisition
Unassigned: fund balance
Total fund balance
Total liabilities and fund balance
Amounts reported in the statement of net assets differ
from amounts reported above as follows:
Fund balance - total governmental funds
Capital assets used in governmental activities are not financial
resources and therefore are not reported above.
Compensated absences are not due and payable in the current
period and, therefore, are not reported in the governmental funds.
Net assets of governmental activities
The notes to the financial statements
are an integral part of this statement. 10
$ 12,263,786
347,909
21,918
8,376,579
$ 21,010,192
$ 3,231
10.140
13,371
8,376,579
5,284,771
7,335,471
20, 996, 821
$ 21, 010,192
$ 20, 996, 821
17, 505, 588
(78,479)
$ 38,423,930
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2011
Revenues
Intergovernmental
Miscellaneous income
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 $458.
Land contribution conveyances are not reported on government
funds; this is the amount of land conveyances and
land contributions during fiscal year 2011.
Compensated absences do not use current financial
resources and are not reported on the Governmental Funds but
are included in the Statement of Activities.
Change in net assets of governmental activities
The notes to the financial statements
are an integral part of this statement. 11
$ 3,247,727 ,
45,908
51,100 ✓
3,344,735
218,109
78,152
667,065
963,326
2,381,409
18,615,412
$ 20,996,821
$ 2,381,409
666,607
22,417
631
$ 3,071,064
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 1 - Summaryof 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 and is
able to impose its will. Therefore, the Authority, for financial reporting purposes, is considered a
blended component unit of Monroe County, Florida. The financial statements of the Authority
are included as a special revenue fund 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.
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Budget — Prior to, or on September 30, the Authority's budget is legally enacted through
passage of a resolution. There was one supplemental appropriation during the year. 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 2011, the following adjustments were necessary to present the actual data on a
budgetary basis for the General Fund:
GAAP basis $ 2,381,409
Compensation accrual difference 599
Non-GAAP budgetary basis
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$ 2,382,008
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COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 1 — Summary of significant accounting policies (continued)
The prior year Non-GAAP budgetary basis fund balance was overstated by $1,636,000. This is
due to mortgage cash outlays being reported in the reconciliation of budgetary to full accrual
basis rather than in expenditures. This had no effect on the budget in the prior year. All
appropriations lapse at year-end.
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 is 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.
Net Assets/Fund Balances — In fiscal year ended September 30, 2011, Monroe County
Comprehensive Plan Land Authority implemented GASB 54, "Fund Balance, Reporting and
Governmental Fund Type Definitions", for its governmental funds. Under GASB 54, fund
balances are required to be reported according to the following classifications:
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
r 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.
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 1 — Summary of significant accounting policies (continued)
Cash and Cash Equivalents and Investments — The Authority's cash and cash equivalents
consist of demand deposits and highly liquid investments with maturities of 90 days or less
when purchased. All investments are reported at fair value.
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.
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.
Note 2 — Deposits and investments
As of September 30, 2011, the Authority has the following deposits and investments:
Demand deposits $ 12,109,069
Local Government Surplus Trust Florida PRIME 9
Local Government Surplus Trust Fund B 204,414
Unrealized Loss in Fund B (49,706)
Total cash and cash equivalents $ 12,263,786
The Authority places its cash and cash equivalents 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, 2011, the
cash and cash equivalents have a bank balance of $12,318,274.
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, 2011, the Authority had $154,717 invested in the Local Government
Surplus Trust Fund, which was 1% of the Authority's total cash and cash equivalents. Of the
$154,717 invested, the Authority had $154,708 or 99.99% invested in Fund B and $9 or .01 %
invested in Florida PRIME.
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 2 — Deposits and investments (continued)
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, 2011, the SBA had returned 84% 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, 2011, the SBA had returned $1,082,620 of this amount to the
Authority, leaving a balance of $204,414. Due to the poor quality of Fund B's underlying assets,
the net asset value of the Authority's account balance on September 30, 2011 was $154,708,
yielding an unrealized loss of $49,706. Since $75,398 of the unrealized loss was already
included in the Authority's financial statements through 2010, the current year portion was an
unrealized gain of $25,692.
The Florida PRIME is rated by Standard and Poors. The current rating is AAAm. The Fund B is
not rated by any nationally recognized rating agency.
The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2011 is
38 days. Next interest rate reset days for floating rate securities are used in the calculation of
the WAM.
The weighted average life (WAL) (based on expected future cash flows) of Fund B at
September 30, 2011 is estimated at 4.82 years. However, because Fund B consists of
restructured or defaulted securities there is a considerable uncertainty regarding the weighted
average life.
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 3 — Mortgages receivable
Mortgages receivable as of September 30, 2011 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
lard, 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, collaterized by land,
payable in full July 2040, interest free (OR 2475-1762)
836,000
Third mortgage due from governmental agency, collaterized by land,
forgivable July 2040, interest free (OR 2475-1767) 800,000
Total mortgages receivable $ 8,376,579
The mortgages receivable are equally offset by a fund balance reserve which indicates that
they do not constitute "available spendable resources," even though they are a component of
total assets.
16
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 4 — Capital assets
A summary of changes in capital assets is as follows:
Capital assets, not depreciated:
Land
Total capital assets, not depreciated
Capital assets, depreciated:
Equipment
Total capital assets, depreciated
Less accumulated depreciation
Total capital assets, depreciated, net
Total capital assets, net
Balance Balance
10/1/2010 Additions Deductions 9/30/2011
$ 16,814,656 $ 689,482 $ - $ 17,504,138
16,814,656 689,482 - 17,504,138
2,290 - - 2,290
2,290 - - 2,290
(382) (458) - (840)
1,908 (458) - 1,450
$ 16,816,564 $ 689,024 $ - $ 17,505,588
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 — Accumulated compensated absences
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 a maximum of one half of 120 days with 15 or more years of service.
The change in accumulated compensated absences during the year is as follows:
Balance Balance Current
10/1/2010 Additions Deletions 9/30/2011 Portion
Compensated absences $ 79,110 $ 22,009 $ 22,640 $ 78,479 $ 22,640
17
I�
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 6 — Retirement system
Plan Description — The Land Authority's employees participate in the Florida Retirement
System ("FRS"), administered by the Florida Department of Management Services. Employees
elect to participate in either the defined benefit plan ("Pension Plan"), a cost sharing, multiple -
employer, defined benefit retirement plan, or the defined contribution plan ("Investment Plan")
under the FRS. FRS provides retirement and disability benefits, annual cost -of -living
adjustments, and death benefits to Pension Plan members and beneficiaries of various
governmental units within the State of Florida. 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 Legislature.
For employees hired before July 1, 2011 and enrolled in the Pension Plan, the FRS provides for
vesting of benefits after 6 years of credited service. Normal Pension Plan retirement benefits
are available to employees who retire at or after age 62 with 6 or more years of service or after
30 years if under age 62. Benefits are also based on the 5 highest state fiscal years of
compensation earned during covered employment. For employees hired July 1, 2011 and
thereafter enrolled in the Pension Plan, the FRS provides for vesting benefits after 8 years of
credited service. Normal retirement benefits are available to employees who retire at or after
age 65 with 8 or more years of service or after 33 years if under age 65. Benefits are also
based on the 8 highest state fiscal years of compensation earned during covered employment.
Pension Plan retirement benefits for all employees are based on age, average compensation
and years -of -service credit. Early retirement is available after 6 years of service with a 5%
reduction in benefits for each year prior to the normal retirement age.
In addition to the above benefits, the FRS administers the Deferred Retirement Option Program
("DROP"). This program allows eligible employees 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.
For employees electing to participate in the Investment Plan rather than the Pension Plan,
vesting occurs at one year of service. These participants receive a contribution of self -direction
in an investment product with a third party administrator selected by the State Board of
Administration. Investment accounts may be withdrawn by an employee 90 days after
termination or retirement.
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 Florida Division of Retirement, 2639 Monroe Street, Building C,
Tallahassee, FL 32399-1560, or from the website www.frs.state.fl.us.
18
H
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
} Notes to Financial Statements
Year Ended September 30, 2011
Note 6 — Retirement system (continued)
Funding Policy — The FRS was noncontributory for Pension Plan and Investment Plan
members until June 30, 2011. As of July 1, 2011 all members, with the exception of Deferred
Retirement Option Program (DROP) members and re-employed retirees, contribute 3% of their
eligible wages. Participating employer contributions are based upon state-wide rates
established by the State of Florida on an annual basis effective each July 1. The rates applied
to employee salaries effective as of July 1, 2011 are as follows: regular employees, 4.91%,
special risk employees, 14.10%, special risk administrative support, 6.04%, elected officials,
11.14%, senior management, 6.27%, and DROP participants 4.42%. The Authority contributed
to the plan an amount equal to 9.42% of covered payroll during the fiscal year ended
September 30, 2011. The Authority's contributions made during the years ended September 30,
2011, 2010, and 2009 were $15,554, $16,677, and $16,268 respectively, which were equal to
the required contributions for each fiscal year.
The Authority has historically contributed amounts equal to required contributions and,
therefore, does not have a pension asset or liability as determined in accordance with GASB
Statement No. 27.
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 Statutes 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 and prescription drug benefits 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.
�i Eligibility for post employment participation in the Plan is limited to full time employees of the
County, 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 continue to participate in the Plan at a cost equal to the FRS Health Insurance
Subsidy for ten years of service (currently $5 per month for each year of service credit at
retirement or $50 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 equal to the FRS Health Insurance Subsidy.
19
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
Note 7 — Other Posternto ment Benefit OPEB Plan continued
Surviving spouses and dependents of participating retirees may continue in the plan if eligibility
criteria specific to those classes are met.
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.com.
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
Less:
Mortgage loans
Restricted for land acquisition
Remaining fund balance
H
h
20
$ 20,996,821
8,376,579
5,284,771
$ 7,335,471
r
t�
h
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2011
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 cost 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.
Note 10 — Commitments
The Authority had approximately $147,600 of commitments to acquire various properties,
$980,000 of commitments to issue mortgage loans, and a commitment to donate $247,357 of
conservation land to the State of Florida as of September 30, 2011.
21
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u,
REQUIRED SUPPLEMENTARY INFORMATION
I
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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, 2011
Revenues
Intergovernmental
Miscellaneous income
Investment income
Mortgage proceeds
Total revenues
Expenditures
Current
Personnel
Operating
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balance, beginning of year
Fund balance, end of year
Reconciliation of budgetary
to modified accrual basis
Reconciling items
Mortgage receivable
Compensation accrual
Fund balance, end of year (modified accrual)
Variance
with Final
Budget
Positive
Budget Actual (Negative)
Original Final
$ 2,290,000 $ 2,290,000 $ 3,247,727 $ 957,727
- 45,908 45,908 -
40,000 40,000 51,100 11,100
2,330,000 2,375,908 3,344,735 968,827
236,000
236,000
217,510
18,490
121,500
121,500
78,152
43,348
10,007,420
10,053,328
667,065
9,386,263
10,364,920
10,410,828
962,727
9,448,101
(8,034,920)
(8,034,920)
2,382,008
10,416,928
10,248,374
10,248,374
10,248,374
-
$ 2,213,454
$ 2,213,454
12,630,382
$ 10,416,928
22
8,376,579
(10,140)
$ 20,996,821
D
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SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
L-1
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INDEPENDENT AUDITORS' 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
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida:
We have audited the financial statements of the governmental activities and the major fund of
Monroe County Comprehensive Plan Land Authority (the "Authority"), a component unit of
Monroe County, Florida, as of and for the year ended September 30, 2011, which collectively
comprise the Authority's basic financial statements, and have issued our report thereon dated
February 2, 2012 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. 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
Management of the Authority is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the
Authority's internal control over financial reporting as a basis for designing our auditing
procedures 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 over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Authority'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 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.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily 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.
23
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements
are free of 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.
This report is intended solely for the information and use of the Authority and management, and
the Florida Auditor General, and is not intended to be and should not be used by anyone other
than these specified parties.
Orlando, Florida
February 2, 2012
24
H
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INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida:
We have audited the financial statements of the governmental activities and the major fund of
the Monroe County Comprehensive Plan Land Authority (the "Authority"), a component unit of
Monroe County, Florida, as of and for the year ended September 30, 2011, which collectively
comprise the Authority's basic financial statements, and have issued our report thereon dated
February 2, 2012.
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 Auditors' 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. Disclosures in that report, dated February 2, 2012 should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550,
Rules of the Auditor General -Local Government Entity Audits, which governs the conduct of
local governmental entity audits performed in the State of Florida. This letter includes the
following information, which is not included in the aforementioned auditors' report.
Section 10.554(1)(i)l, Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address significant findings and recommendations made
in the preceding annual financial report. There were no recommendations made in the
preceding year's annual financial report.
Section 10.554(1)(i)2, Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit of the financial statements of the Authority, nothing came to our
attention that could cause us to believe that the Authority was in noncompliance with Section
218.415 regarding the investment of public funds.
Section 10.554(1)(i)3, 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)4, Rules of the Auditor General, requires that we address violations of
provisions of contracts and grant agreements, or abuse, that have an effect on the financial
statements that is less than material but more than inconsequential. In connection with our
audit, we did not have any such findings.
25
Section 10.554(1)(i)5, Rules of the Auditor General, provides that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on the
financial statements, considering both quantitative and qualitative factors: (1) violations of
provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) control
deficiencies that are not significant deficiencies. In connection with our audit, we did not have
any such findings.
Section 10.554(1)(i)6, 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 under Monroe County, Florida Ordinance 031-1986 pursuant to
Florida Statute 380. There are no component units related to the Authority.
Section 10.554(1)(i)7.a, Rules of the Auditor General, requires that a statement be included as
to whether or not the local governmental entity has met one or more 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.
Section 10.554(1)(i)7.b, Rules of the Auditor General, requires that we determine whether the
annual financial report for the Authority for the fiscal year ended September 30, 2011, 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,
2011. The Authority, as a blended component unit of Monroe County, Florida, includes its
financial information in the annual report filed on a consolidated basis by the County. In
connection with our audit, we determined that these two reports were in agreement.
Section 10.554(1)(i)7.c and 10.556(7), Rules of the Auditor General, requires that we apply
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. The results of our financial condition assessment procedures disclosed no deteriorating
financial conditions.
This letter is intended solely for the information and use of management and the Florida Auditor
General, and is not intended to be and should not be used by anyone other than these specified
parties.
Orlando, Florida
February 2, 2012
26