Fiscal Year 2007 MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Financial Statements
For the Year Ended
September 30, 2007
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Table of Contents
Paae
Independent Auditors' Report................ 2- 3
BASIC FINANCIAL STATEMENTS
Balance Sheet—General Fund
----------------••--------•....--•-----•------•--•-----................._................ 4
Statement of Revenues, Expenditures and Changes in
Fund Balances- General Fund
Notes to Financial Statements
.............................................
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures- Budget and Actual-
General Fund
............................................................................................................... 11
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 Govemment Auditing Standards .. 12 - 13
Independent Auditors' Management Letter 14 - 15
ACCOUNTANTS&
INDEPENDENT AUDITORS' REPORT
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the accompanying financial statements of the major fund of the Monroe
County, Florida Property Appraiser (the "Property Appraiser"), as of and for the year ended
September 30, 2007, which comprise the Property Appraiser's basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the Property
Appraiser's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
States of America and the standards applicable to financial audits
We conducted our audit in accordance with auditing standards generally accepted in the United
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
basis, evidence supporting the amounts and disclosures in the financial statements. An a test
udit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe th
our audit provides a reasonable basis for our opinion. at
As discussed in Note 1, the accompanying financial statements were prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, and are not intended to be a complete presentation
of the financial position of Monroe County, Florida, and the results of its operations and the cash
flows of its proprietary funds in conformity with accounting principles generally accepted in the
United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the major fund of the Property Appraiser as of September 30, 2007, and
the changes in its financial position thereof 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
January 17, 2008 on our consideration of the Property Appraiser'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 of 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.
2
The budgetary comparison schedule on page 11 is not a required part of the basic financial
statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted primarily of
inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and we express
no opinion on it.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
Orlando, Florida
January 17, 2008
3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Balance Sheet
General Fund
September 30, 2007
Assets
Cash and cash equivalents
$ 396,860
Total assets
$ 396,860
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 26,626
Accrued wages and benefits payable 47,842
Due to Board of County Commissioners 271,937
Due to other governmental units
50,455
Total liabilities
396,860
Fund balance
Total liabilities and fund balance $ 396,860
The notes to the financial statements
are an integral part of this statement. 4
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund
Year Ended September 30, 2007
Revenues:
Charges for services
Board of County Commissioners $ 3,018,214
Other taxing districts 814,500
Investment income
Miscellaneous 23,440
3,830
Total revenues
3,859,984
Expenditures:
Current:
Personnel services
Operating expenditures 2,751,086
Capital outlay 642,873
143,633
Total expenditures 3,537,592
Other financing uses:
Transfers to Board of County Commissioners (271,937)
Transfers to other governmental units 50,455
Total other financing uses _ (322,392)
Excess of revenues over expenditures
Fund balance, beginning of year
Fund balance, end of year $
The notes to the financial statements
are an integral part of this statement. 5
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2007
Note I —Summary of significant accounting policies
Reporting Entity— The Monroe County, Florida Property Appraiser (the "Property Appraiser")
is a separately elected county official established pursuant to the Constitution of the State of
Florida. The Property Appraiser's financial statements do not purport to reflect the financial
position or the results of operations of Monroe County, Florida (the"County") taken as a whole.
Entity status for financial reporting purposes is governed by Statements No. 14 and No. 39 of
the Governmental Accounting Standards Board (GASB). Although the Property Appraiser's
Office is operationally autonomous, it does not hold sufficient corporate powers of its own to be
considered a legally separate entity for financial reporting purposes. Therefore, the Property
Appraiser is reported as a part of the primary government of the County.
Measurement focus, basis of accounting, and financial statement presentation - The
Property Appraiser's financial statements are prepared in accordance with Chapter 10.550,
Rules of the Auditor General, which requires the Property Appraiser to only present fund
financial statements. Accordingly, due to the omission of government-wide financial statements,
related disclosures and management's discussion and analysis, these financial statements do
not present a complete presentation of the financial position of the Property Appraiser as of
September 30, 2007 and the changes in its financial position for the year then ended, as
contemplated by Statement No. 34 of the Governmental Accounting Standards Board, Basic
Financial Statements — and Management's Discussion and Analysis — for State and Local
Governments.
The General Fund is used to account for all revenues and expenditures applicable to the
general operations of the Property Appraiser. This fund is presented as a major governmental
fund and uses the current financial resources measurement focus and the modified accrual
basis of accounting. Revenues are recognized when measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Property Appraiser
considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, expenditures related to compensated absences and claims and
judgments are recorded only when payment is due.
The extent to which General Fund revenues exceed expenditures is reflected as transfers out
and as liabilities to the Monroe County Board of County Commissioners (the "Board") and other
governmental agencies in the same proportion as fees paid by each governmental unit to total
fees earned by the Property Appraiser.
Budgetary Requirements — Expenditures are controlled by budget appropriations in
accordance with the requirements set forth in the Florida Statutes. The budget is prepared on a
basis consistent with accounting principles generally accepted in the United States of America.
Cash and Cash Equivalents and Investments— Cash and cash equivalents consist of cash
on hand and demand deposits.
6
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2007
Note 4 —Summary of significant accounting policies(continued)
Capital Assets — Tangible personal property used in the Property Appraiser's operations are
recorded as expenditures in the General Fund at the time assets are received and a liability is
incurred. Purchased assets are capitalized at historical cost in the government-wide financial
statements of the County. In addition, the Board provides office space used by the Property
Appraiser at no charge.
Compensated Absences— The Property Appraiser permits employees to accumulate earned
but unused vacation and sick pay benefits. Related long-term obligations amounting to
$159,834 at September 30, 2007, are included in the government-wide financial statements of
the County.
Use of F_stlmates - The preparation of financial statements requires management to make use
of estimates that affect reported amounts. Actual results could differ from estimates.
Note 2—Deposits and investments
As of September 30, 2007, the Property Appraiser has demand deposits of$396,860.
Demand and time deposits are fully insured by the Federal Deposit Insurance Corporation up to
$100,000 at each institution or are covered by the State of Florida collateral pool, a multiple
institution pool with the ability to assess its members for collateral if a member institution fails.
Florida Statutes and the Property Appraiser's investment policy authorize investments in
certificates of deposit, savings accounts, repurchase agreements, the Local Government
Surplus Funds Trust Fund administered by the Florida State Board of Administration, money
market funds, direct obligations of the U.S. Treasury and federal agencies and instrumentalities.
Note 3—Retirement system
Plan Description — The Property Appraiser's employees participate in the Florida Retirement
System ("FRS"), administered by the Florida Department of Administration. 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. 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 Legislature.
7
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2007
Note 3—Retirement system (continued)
Benefits are computed on the basis of age, average final compensation, and service credit.
Regular class employees who retire at or after age 62 with 6 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 for each year of credited service. Vested
employees with less than 30 years of service may retire before age 62 and receive reduced
retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters,
and correctional officers) who retire at or after age 55 with 6 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 for each year.of credited service. Senior
Management Service class employees who retire at or after age 62 with at least 6 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 for each year of
credited service. Elected Officers' class employees who retire at or after age 62 with at least 6
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 for each year of credited service. A post-employment health insurance
subsidy is also provided to eligible retired employees through the FRS in accordance with
Florida Statutes.
In addition to the above benefits, the FRS administers a 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.
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, 2639 North Monroe Street, Building C, Tallahassee, Florida 32299-1560
or accessing their internet site at www.frs.state.fl.us.
8
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2007
Note 3—Retirement system (continued)
Funding Policy — The FRS is noncontributory for members. Governmental employers are
required to make contributions to the FRS based on statewide contribution rates. The
contribution rates by job class at September 30, 2007 were as follows: regular, 9.85%; special
risk, 20.92%; special risk administrative support, 12.55%; county elected officers, 16.53%;
senior management, 13.12%; and DROP participants, 10.91%. During the fiscal year ended
September 30, 2007, the Property Appraiser contributed to the Plan an amount equal to 10.22%
of covered payroll. Property Appraiser contributions to the FRS for the fiscal years ended
September 30, 2005 through 2007 were $152,603, $182,655 and $238,712, respectively, which
were equal to the required contributions for each fiscal year. The Property Appraiser 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 4—Risk management
The Property Appraiser 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 Property Appraiser 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 $1,000,000 coverage per claim for regular
employees. Risk Management has a $5,000,000 excess insurance policy for general liability
claims with a $100,000 self insured retention, and building property damage is covered for the
actual cost of the buildings with a deductible between $100,000 and $250,000. 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 Property
Appraiser 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 5-Commitments
Operating Leases — The Property Appraiser has entered into noncancelable lease
commitments for office equipment. Total lease expenditures amounted to $12,616 during the
year ended September 30, 2007. The following is a schedule by years of minimum future
obligations under the leases:
2008 $ 17,520
2009 14,460
2010 11,400
2011 11,400
2012 g,5p0
Total $ 64,280
9
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2007
Note 6—Litigation
The Property Appraiser is a party from time to time in various lawsuits and other claims
incidental to the ordinary course of its operation, some of which are covered by the Board's self-
insurance program. While the results of litigation cannot be predicted with certainty,
management believes the final outcome of such litigation will not have a material adverse effect
on the Property Appraiser's financial position.
10
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY,FLORIDA
PROPERTY APPRAISER
Schedule of Revenues and Expenditures
Budget and Actual-General Fund
Year Ended September 30,2007
General Fund
Variants with
Final Budget
Original Final Poste
Budget Budget Actual (Negatfve�
Revenues:
Board of County Commissioners $ 3,013,642 $ 3,018,214 $ 3,018,214 $
Other taxing districts 814,500 814,500 814,500 -
Investment income - - 23,440 23,440
Miscellaneous - _ _ 3,830 3.830
Total revenues 3,828,142 3,832,714 3,859,984 27,270
Expenditures:
Current:
Personnel services 2,916,372 2,920,944 2,751,086 169,868
Operating expenditures 696,717 696,717 642,873 53,844
Capital outlay —- - 215,053 215,053 _ 143,633 71,420
Total expenditures 3,828,142 3,832,714 3,537,592 296,122
Other financing uses:
Transfers to Board of County Commissioners - - (271,937) (271,937)
Transfers to other governmental units - _ (50 455) (50,455)
Total other financing uses - - 322,392 _ (322,392)
Excess of revenues aver expenditures
Fund balance,beginning of year
Fund balance,end of year $ _ $ _ $ $ _
11
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
C
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 GOVERNMENTAUDMNG STANDARDS
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the financial statements of the major fund of the Monroe County, Florida
Property Appraiser (the"Property Appraiser') as of and for the year ended September 30, 2007,
which comprise the Property Appraiser's basic financial statements, and have issued our report
thereon dated January 17, 2008 for the purpose of compliance with Section 218.39(2), Florida
Statutes, and Chapter 10.660, 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
In planning and performing our audit, we considered the Property Appraiser's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Property Appraiser's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's
internal control over financial reporting.
A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control deficiencies, that adversely affects the Property Appraiser's
ability to initiate, authorize, record, process, or report financial data reliably in accordance with
generally accepted accounting principles such that there is more than a remote likelihood that a
misstatement of the Property Appraiser's financial statements that is more than inconsequential
will not be prevented or detected by the Property Appraiser's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the Property Appraiser's internal control.
12
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 that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining assurance about whether the Property Appraiser'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 management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
Orlando, Florida
January 17, 2008
13
CERTIFTFD PUBLIC
ACCOUNTANTS&:
CONSULTANTS
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the financial statements of the Monroe County, Florida Property Appraiser (the
"Property Appraiser'), as of and for the year ended September 30, 2007, which comprise the
Property Appraiser's basic financial statements, and have issued our report thereon dated
January 17, 2008 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. We have issued
our 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, dated January 17, 2008, and it should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General. Those rules (Section 10.554(1)(i)l) require that we address in the management letter,
if not already addressed in the auditors' report on internal control over financial reporting,
compliance and other matters, whether or not corrective actions have been taken to address
significant findings and recommendations made in the preceding annual financial audit report.
There were no recommendations in the preceding year's annual financial audit report.
The Rules of the Auditor General (Section 10.554(1)(i)2) state that a management letter shall
have a statement as to whether or not the Property Appraiser complied with Section 218.415,
Florida Statutes, regarding the investment of public funds. In connection with our audit of the
financial statements of the Property Appraiser, the results of our tests did not indicate that the
Property Appraiser was in noncompliance with Section 218.415 regarding the investment of
public funds.
The Rules of the Auditor General (Section 10.554(1)(i)3) require disclosure in the management
letter of any recommendations to improve the Property Appraiser's financial management,
accounting procedures and internal controls. There were no recommendations in connection
with the fiscal 2007 financial statement audit.
14
The Rules of the Auditor General (Section 10.554(1)(i)4) require disclosure in the management
letter of any 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. There
were no such matters noted.
The Rules of the Auditor.General (Section 10.554(1)(i)5) allow for the following matters that are
inconsequential to the financial statements, considering both quantitative and qualitative factors,
to be reported based on professional judgment: a. immaterial violations of laws, rules,
regulations and contractual provisions or abuse; b. immaterial improper expenditures or legal
acts; and c. control deficiencies that are not significant deficiencies. There are no such matters
reported.
The Rules of the Auditor General (Section 10.554(1)(i)6) also require that the name or official
title and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The Property Appraiser is a separately elected county official established pursuant
to the Constitution of the State of Florida. There are no component units related to the Property
Appraiser_
This report is intended solely for the information and use of management, the State of Florida
Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
C�.
L'�.A
Orlando, Florida
January 17, 2008
15
G�pFtIDq
�OM�t�SHE•T,�A�
v J�
W MONROE COUNTY PROPERTY APPRAISER
Vu•�h y� COUNTY COURTHOUSE P.O. BOX 1176
a0 P W5 KEY WEST, FLORIDA 33041
(TA PHONE (305) 292-3420
ERVIN A. HIGGS, C.F.A.-CRA
February 1, 2008
Department of Financial Services
Bureau of Local Government Finance
Room 1001 Capitol Building
Tallahassee, Florida 32399-0350
RE: Management Audit Response
Dear Sir:
In response to the Auditors Report on internal control for fiscal year 2006-2007,please
find the following:
There were no findings for the fiscal year 2006-2007
If you require any further information,please feel free to contact our office.
Sincerely,
r
ERVIN A. HIGGS, C.F.A.-CRA
MONROE COUNTY PROPERTY APPRAISER
EAWjlk
MEMBER
PROFESSIONAL APPRAISERS ASSOCIATION OF FLORIDA
FLORIDA ASSOCIATION OF PROPERTY APPRAISERS—INTERNATIONAL ASSOCIATION OF ASSESSING OFFICERS
NATIONAL ASSOCIATION OF REVIEW APPRAISERS