Fiscal Year 2010 MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Special-Purpose Financial Statements
for the Year Ended
September 30, 2010
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Special-Purpose Financial Statements, Required Supplementary Information and
Independent Auditors' Reports
Year Ended September 30, 2010
Table of Contents
Page
Independent Auditors' Report--------------------------------------------------------------------------------------------- 2 - 3
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Special-Purpose Balance Sheet— General Fund......................................................... 4
Special-Purpose Statement of Revenues, Expenditures and Changes in
Fund Balances - General Fund 5
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Notes to Special-Purpose Financial Statements---------------------------------------------------------- 6 — 11
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual -
GeneralFund,.......................................................................................................... 12
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Special-Purpose Financial Statements Performed
in Accordance with Government Auditing Standards............................................. 13 - 14
Independent Auditors' Management Letter,------------------------------------------------------------------ 15 - 16
INDEPENDENT AUDITORS' REPORT
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the accompanying special-purpose 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, 2010, which collectively comprise the Property Appraiser's special-
purpose financial statements as listed in the table of contents. These special-purpose financial
statements are the responsibility of the Property Appraiser's management. Our responsibility is
to express an opinion on these special-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
special-purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the special-
purpose financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall special-
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
As discussed in Note 1, the accompanying special-purpose 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 and changes in financial position of the Property
Appraiser. Additionally the special-purpose financial statements present only the Property
Appraiser and are not intended to present fairly the financial position and changes in financial
position of Monroe County, Florida, taken as a whole.
In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of the major fund of the Monroe County,
Florida Property Appraiser as of September 30, 2010, 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.
2
In accordance with Government Auditing Standards, we have also issued our report dated
February 1, 2011 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 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.
The budgetary comparison schedule on page 12 is not a required part of the special-purpose
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 the Property Appraiser's
management and the Florida Auditor General and is not intended to be and should not be used
by anyone other than those specified parties.
CHERRY, BEKAERT& HOLLAND, L.L.P.
• " "\A
Orlando, Florida
February 1, 2011
3
SPECIAL-PURPOSE FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Special-Purpose Balance Sheet
General Fund
September 30, 2010
Assets
Cash and cash equivalents $ 268,730
Total assets $ 268,730
Liabilities and Fund Balance
Liabilities and credits:
Accounts payable $ 27,881
Accrued wages and benefits payable 67,970
Due to Board of County Commissioners 139,677
Due to other governmental units 33,202
Total liabilities 268,730
Fund balance -
Total liabilities and fund balance $ 268,730
See notes to special-purpose financial statements. 4
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Special-Purpose Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund
Year Ended September 30, 2010
Revenues:
Charges for services
Other taxing districts $ 688,123
Investment income 1,029
Miscellaneous 1,309
Total revenues 690,461
Expenditures:
Current:
Personnel services 2,733,488
Operating expenditures 614,322
Capital outlay 64,617
Total expenditures 3,412,427
Excess of expenditures over revenues (2,721,966)
Other financing sources (uses):
Transfers from Board of County Commissioners 2,894,845
Transfers to Board of County Commissioners (139,677)
Transfers to other governmental units (33,202)
Total other financing sources (uses) 2,721,966
Net change in fund balance -
Fund balance, beginning of year -
Fund balance, end of year $ -
See notes to special-purpose financial statements. 5
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 1 —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. These special-purpose financial statements present only the Property Appraiser's Office
and 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, as amended by
Statement 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 Monroe
County, Florida.
Measurement focus, basis of accounting, and financial statement presentation - The
Property Appraiser's special-purpose financial statements are prepared for the purpose of
complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General (the "Rules"), which require the Property Appraiser to only present fund financial
statements. In conformity with the Rules, the Property Appraiser has not presented the
government-wide financial statements, related disclosures or management's discussion and
analysis, which are required to present a complete presentation of its financial position and
changes in financial position.
The General Fund is used to account for all revenues and expenditures applicable to the
general operations of the Property Appraiser that are not legally required or by accounting
principles generally accepted in the United State of America to be accounted for in another fund.
The General 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 — General Fund 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 — The Property Appraiser's cash and cash equivalents consist of
cash on hand and demand deposits.
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MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 1 —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. The Property Appraiser is not legally required to and
does not accumulate expendable available financial resources to liquidate this obligation. The
obligation for compensated absences is accrued in the government-wide financial statements of
the County. A summary of activity for the Property Appraiser's compensated absences
obligation is as follows:
Balance, October 1, 2009 $158,363
Additions 294,623
Deletions 32( 3,368)
Balance, September 30, 2010 $129,618
Use of Estimates - The preparation of special-purpose financial statements requires
management to make use of estimates that affect reported amounts. Actual results could differ
from estimates.
Note 2— Deposits and Investments
At September 30, 2010, cash and cash equivalents included demand deposits with a carrying
amount of$268,730 and a bank balance of$290,775.
The Property Appraiser 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 Property Appraiser 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.
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.
7
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
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.
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 Florida Retirement System employer for a period
not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the
Florida Retirement System 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, P.O. Box 9000, Tallahassee, Florida 32315-9000 or accessing their
internet site at www.frs.state.fl.us.
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MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
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 through June 30, 2010 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%. Effective July 1, 2010 the contribution
rates by job class were as follows: regular, 10.77%; special risk, 23.25%; special risk
administrative support, 13.24%; county elected officers, 18.64%; senior management, 14.57%;
and DROP participants, 12.25%. During the fiscal year ended September 30, 2010, the
Property Appraiser contributed to the FRS an amount equal to 10.51% of covered payroll.
Property Appraiser contributions to the FRS for the fiscal years ended September 30, 2008
through 2010 were $238,915, $239,561 and $243,743, 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—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.
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.
Surviving spouses and dependents of participating retirees may continue in the plan if eligibility
criteria specific to those classes are met.
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MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 4—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 Property Appraiser 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 5— 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 6 - Commitments
Operating Leases — The Property Appraiser leases office equipment under various operating
lease agreements. Total lease expenditures amounted to $19,746 during the year ended
September 30, 2010.
The following is a schedule by years of minimum future obligations under noncancelable
operating leases as of September 30, 2010:
Year Ending
4PntPmhPr 3C Amni int
2011 $ 17,317
2012 12,952
Total $ 30.269
10
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 7— 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.
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REQUIRED SUPPLEMENTARY INFORMATION
NORTH CAROLINA EDUCATION LOTTERY
Statements of Net Assets(in thousands)
June 30,2010 and 2009
Restated
2010 2009
ASSETS
Current Assets:
Cash and Cash Equivalents:
Cash $ 96 $ 119
Pooled Cash 38,664 33,124
Receivables:
Accounts Receivable 6,648 4,919
Interest Receivable 110 138
Investment in Annuity Contracts 2,150 1,100
Inventory 209 293
Prepaid Items and Deferred Charges 198 -
State Treasurer's Security Lending Collateral 7,806 22,375
Total Current Assets 55,881 62,068
Noncurrent Assets:
Investment in Annuity Contracts 25,007 12,418
Capital Assets, Depreciable(Net):
Furniture and Equipment 2,749 2,702
Accumulated Depreciation (1,510) (1,392)
Total Capital Assets, Depreciable(Net) 1,239 1,310
Total Assets 82,127 75,796
LIABILITIES
Current Liabilities:
Accounts Payable 26,161 29,406
Accrued Payroll 379 332
Other Payables 1,321 2,266
Annuity Prize Award Payable 2,150 1,100
Accrued Paid Time Off-Current 65 43
Due to Other Funds 18,127 6,625
Obligations Under State Treasurer's Security Lending Agreements 7,889 22,375
Total Current Liabilities 56,092 62,147
Noncurrent Liabilities:
Annuity Prize Award Payable 25,007 12,418
Accrued Paid Time Off 1,028 1,231
Total Liabilities 82,127 75,796
NET ASSETS
Invested in Capital Assets 1,239 1,310
Unrestricted Net Assets (1,239) (1,310)
Total Net Assets $ $
See Notes to the Financial Statements.
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SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF SPECIAL-PURPOSE FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the special-purpose 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, 2010, which comprise the Property Appraiser's special-purpose financial
statements, and have issued our report thereon dated February 1, 2011 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
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 special-purpose 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 deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the Property Appraiser's special-purpose 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.
13
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's special-
purpose 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
special-purpose 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 Property Appraiser's
management and the Florida Auditor General, and is not intended to be and should not be used
by anyone other than these specified parties.
CHERRY, BEKAERT& HOLLAND, L.L.P.
• " `\A
Orlando, Florida
February 1, 2011
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INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the special-purpose 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, 2010, and have issued our report thereon dated February 1, 2011.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. We have issued
our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements
Performed in Accordance with Government Auditing Standards. Disclosures in this report, which
is dated February 1, 2011, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, which govern 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' reports.
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 findings and recommendations made in the
preceding annual financial audit report. No recommendations were made in the preceding
annual financial audit 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 special-purpose financial statements of the Property Appraiser,
nothing came to our attention that would cause us to believe that the Property Appraiser 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 or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the special-purpose financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such
findings.
15
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
financial statements, considering both quantitative and qualitative factors: (1) violations of
provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in
internal control 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 the management letter, unless disclosed in the notes to the special-purpose
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.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
requires us to indicate that this letter is intended solely for the information and use of the
Property Appraisers' management and the Florida Auditor General, and is not intended to be
and should not be used by anyone other than these specified parties.
CHERRY, BEKAERT& HOLLAND, L.L.P.
• " `\A
Orlando, Florida
February 1, 2011
16