Fiscal Year 2007 MONROE COUNTY, FLORIDA
TAX COLLECTOR
Financial Statements
For the Year Ended
September 30, 2007
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Table of Contents
Page
Independent Auditors' Report.............. 1 - 2
BASIC FINANCIAL STATEMENTS
Balance Sheet - General Fund
Statement of Revenues, Expenditures and Changes in
Fund Balance - General Fund
................................................................................ 4
Statement of Fiduciary Assets and Liabilities -Agency Funds.....
Notes to Financial Statements ... 6 — 11
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures- Budget and Actual -
General Fund.....................
OTHER SUPPLEMENTARY INFORMATION
Agency Fund Descriptions..___.
Combining Statement of Changes in Assets and
Liabilities -All Agency Funds................
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 15 16
Independent Auditors' Management Letter 17 18
y r
INDEPENDENT AUDITORS` REPORT
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the accompanying financial statements of the major fund and the
aggregate remaining fund information of the Monroe County, Florida Tax Collector (the
"Tax Collector) as of and for the year ended September 30, 2007. which collectively
comprise the Tax Collector's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the Tax Collector'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.
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 Government 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 respective financial position of the major fund and the aggregate
remaining fund information of the Tax Collector as of September 30, 2007, 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.
1
In accordance with Govemment Auditing Standards, we have also issued our report
dated February 14, 2008 on our consideration of the Tax Collector'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 Govemment 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 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.
Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the Tax Collector's basic financial statements.
The accompanying combining statement of changes in assets and liabilities — all
agency funds is presented for purposes of additional analysis and is not a required part
of the basic financial statements. This combining statement has been subjected to the
auditing procedures applied by us in the audit of the basic financial statements and, in
our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
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.
CHERRY, BEKAERT& HOLLAND, L.L.P.
Orlando, Florida
February 14, 2008
2
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Balance Sheet- General Fund
September 30, 2007
Assets
Cash and cash equivalents $ 3,538,927
Due from others 1,950
Due from other governments 12,463
Total assets $ 3,553,340
Liabilities and Fund Balance
Liabilities
Accounts payable $ 18,612
Accrued wages and benefits payable 102,529
Due to Board of County Commissioners 2,997,742
Due to other governmental units 434,457
Total liabilities 3,553,340
Fund balance
Total liabilities and fund balance $ 3,553,340
The notes to the financial statements
are an integral part of this statement. 3
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2007
Revenues
Charges for services $ 7,095,071
Total revenues 7,095,071
Expenditures
Current
General government
Personnel services 2,869,495
Operating expenditures 748,404
Capital outlay 38,987
Debt service - principal 5,986
Total expenditures 3,662,872
Excess of revenues over expenditures 3,432,199
Other financing sources (uses)
Transfer to Board of County Commissioners (2,997,742
Transfer to other governmental units (434,457_)
Total other financing uses (3,432,199)
Excess of revenues over expenditures and other
financing uses
Fund balance at beginning of year _
Fund balance at end of year $ _
The notes to the financial statements
are an integral part of this statement. 4
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2007
Assets
Cash and cash equivalents $ 4,449,324
Due from individuals 20,216
Total assets $ 4,469,540
Liabilities
Undistributed collections $ 4,460,228
Due to individuals _ 9,312
Total liabilities $ 4,469,540
The notes to the financial statements
are an integral part of this statement. 5
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2007
Note 1 -Summary of significant accounting policies
Reporting Entity— The Monroe County, Florida Tax Collector (the "Tax Collector") is a
separately elected county official established pursuant to the Constitution of the State
of Florida. The Tax Collector'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 39
of the Governmental Accounting Standards Board (GASB). Although the Tax Collector'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 Tax Collector is reported as a part of the primary government of the
County.
Description of Funds - The accounting records are organized for reporting purposes
on the basis of a governmental fund and fiduciary funds.
General Fund — The General Fund is used to account for all revenues and
expenditures applicable to the general operations of the Tax Collector and not
required legally or by accounting standards generally accepted in the United
States of-America to be reported elsewhere.
Fiduciary Funds— Fiduciary funds of the Tax Collector are Agency Funds, which
are used to account for assets held by the Tax Collector as an agent.
Measurement focus, basis of accounting, and financial statement presentation —
The Tax Collector's financial statements are prepared in accordance with Chapter
10.550, Rules of the Auditor General, which requires the Tax Collector to only present
fund financial statements.
The General Fund is used to account for all revenues and expenditures applicable to
the general operations of the Tax Collector. 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 Tax Collector 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.
6
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2007
Note t -Summary of significant accounting policies (continued)
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 Tax Collector.
Budgetary Requirements - Expenditures are controlled by budget appropriations in
accordance with the budget 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 Tax Collector'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.
Capital Assets— Tangible personal property used in the Tax Collector'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
administrative office space used by the Tax Collector at no charge.
Compensated Absences — The Tax Collector permits employees to accumulate
earned but unused vacation and sick pay benefits. Related long-term obligations,
amounting to $132,145 at September 30, 2007, are included in the government-wide
financial statements of the County.
Use of Estimates - 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 Tax Collector has bank balances of$7,798,251.
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.
7
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2007
Note 2—Deposits and Investments (continued)
Florida Statutes and the Tax Collector's investment policy authorize investments in
certificates of deposit, savings accounts, repurchase agreements, 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 Tax Collector'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 under the Pension Plan 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.
8
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2007
Note 3--Retirement system (continued)
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, P.O. Box 9000, Tallahassee, Florida
32315-9000 or accessing their internet site at www.frs.state.fl.us.
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 Tax Collector contributed to the Plan an
amount equal to 10.42% of covered payroll. Tax Collector contributions to the FRS for
the fiscal years ended September 30, 2005 through 2007 were $169,139, $210,142
and $253,904 respectively, which were equal to the required contributions for each
fiscal year. The Tax Collector 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.
9
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2007
Note 4— Risk management
The Tax Collector 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 Tax Collector 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. 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 $100,000 self-
insured retention, and building property damage -is covered for the actual value of the
buildings with a deductible between $100,000 and $250,000. Deductibles for windstorm
and flood vary by location. The 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 Tax
Collector 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
Note Payable -- The Tax Collector borrowed $29,929 for a vehicle purchase during
fiscal 2004 under a non-interest bearing note payable, due in monthly installments of
$499 through October 2008. The note payable balance of $7,482 at September 30,
2007 is included as a long-term obligation in the government wide financial statements
of the County.
Operating Leases -- The Tax Collector leases office space under operating lease
agreements. Total lease payments made in 2007 were $65,032.
The following is a schedule by years of loan payments and future minimum rentals
under non-cancelable operating leases as of September 30, 2007:
2008 $ 57,944 $ 5,986
2009 52,623 1,496
2010 54,122 -
201.1 30,040 _
2012 28,061 -
Total $ 222,790 $ 7 482
10
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2007
Note S— Litigation
The Tax Collector 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 Tax Collector's financial position.
�1
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY,FLORIDA
TAX COLLECTOR
Schedule of Revenues and Expenditures-
Budget and Actual-General Fund
Year Ended September 30,2007
General Fund
Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Charges for services $ 5,847,640 $ 5,847,640 $ 7,095,071 $ 1,24T,431
Total revenues 5,847,640 6,847,640 7,096,071 1,2447,431
Expenditures
Current
General government
Personnel services 3,159.822 3,145,874 2,869,495 276,379
Operating expenditures 586,869 767,742 748,404 9,338
Capital outlay - 43,267 38,987 4,280
Debt service-principal 5,986- 5,986 _ 5,986
Total expenditures 3,752,677 3,952,869 3,662,872 289,997
Excess of revenues over expenditures 2,094,963 1,894,771 3,432.199 1,537,428
Other financing sources(uses)
Transfer to Board of County Commissioners (2,094,963) (1,894,771) (2,997,742) (1,102,971)
Transfer to other governmental units - - (434,457) _(434,457)
Total other financing sources(uses) 2,094,963 (1,894,771) (3,432,199) 1,537,428
Excess of revenues over expenditures
and other financing sources(uses) $ _ $ _ $ _ $ -
12
OTHER SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Agency Fund Descriptions
The Combining Statement of Changes in Assets and Liabilities—All Agency Funds is
presented on the following page. The purpose of each fund shown on this statement is
described below.
Property Tax Agency Fund-- To account for the collection and distribution of local
property tax funds.
Licenses Agency Fund — To account for the collection and distribution of funds
generated from the sale of miscellaneous state licenses.
13
MONROE COUNTY,FLORIDA
TAX COLLECTOR
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
Year Ended September 30,2007
Balance Balance
September 30, September 30,
2006 Additions Deletions 2007
Property Tax Agency
Assets
Cash and cash equivalents $ 4,076,462 $ 262,797,173 $ 262,573,678 $ 4,299,957
Due from individuals 140 19,309 - 19,449
$ 4,076,602 $ 262,816,482 $ 262,573,678 $ 4,319,406
Liabilities
Undistributed collections $ 4,058,169 $ 256,785,912 $ 255,532,079 $ 4,312,002
Due to individuals 18,433 7,030,570 7,041,599 7,404
$ 4,076,602 $ 262,816,482 $ 262,573,678 $ 4,319,406
Licenses Agency Fund
Assets
Cash and cash equivalents $ 177,593 $ 10,529,652 $ 10,557,878 $ 149,367
Due from individuals 2,032 - 1,265 767
$ 179,625 $ 10,529.652 $ 10,559,143 $ 150,134
Liabilities
Undistributed collections $ 177,529 $ 10,506,508 $ 10,535,811 $ 148,226
Due to individuals _ 2,096� 23,144 23,332 1,908
$ 179,625 $ 10,529,652 $ 10,559,143 $ 150,134
Total-All Agency Funds
Assets
Cash and cash equivalents $ 4,254,055 $ 273,326,825 $ 273,131,556 $ 4,449,324
Due from individuals _ 2,172 19,309 1,265 20,216
$ 4,256,227 $ 273,346,134 $ 273,132,821 $ 4,469,540
Liabilities
Undistributed collections $ 4,235,698 $ 266,292,420 $ 266,067,890 $ 4,460,228
Due to individuals 20,529 __ 7,053,714 7,064 931 9,312
$ 4,256,227 $ 273,346,134 $ 273,132,821 $ 4,469,540
14
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
ITANTS
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 Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the financial statements of the major fund and the aggregate
remaining fund information of the Monroe County, Florida Tax Collector (the "Tax
Collector") as of and for the year ended September 30, 2007, which collectively
comprise the Tax Collector's basic financial statements, and have issued our report
thereon dated February 14, 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Tax Collector'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 Tax Collector's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of
the Tax Collector'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
Tax Collector'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 Tax Collector's financial
statements that is more than inconsequential will not be prevented or detected by the
Tax Collector's internal control.
15
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 Tax Collector's
internal control.
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 Tax Collector'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 Govemmenf 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.
CHERRY, BEKAERT& HOLLAND, L.L.P.
At
Orlando, Florida
February 14, 2008
16
Niue MIN
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the financial statements of the major fund and the aggregate remaining fund
information of the Monroe County, Florida Tax Collector (the "Tax Collector"), as of and for the
year ended September 30, 2007, which collectively comprise the Tax Collector's basic financial
statements, and have issued our report thereon dated February 14, 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 February 14, 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)1) 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.
No recommendations were made in the preceding 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 Tax Collector complied with Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit of the financial
statements of the Tax Collector, the results of our tests did not indicate that the Tax Collector
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 Tax Collector's financial management, accounting
procedures, and internal controls. There were no recommendations in connection with the fiscal
2007 financial statement audit.
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.
17
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 illegal
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 Tax Collector is a separately elected county official established pursuant to the
Constitution of the State of Florida. There are no component units related to the Tax Collector.
This management letter 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 specked parties.
CHERRY, BEKAERT&HOLLAWD, L.L.P.
Orlando, Florida
February 14, 2008
18
Ra .: .T 4�
MONROE COUNTY TAX COLLECTOR
1200 Truman Ave., Key West, FL 33040
Phone: (305)295-5000 Fax: (305)295-5020
March 20,2008
Hon. Robert Milligan
Comptroller
Department of Banking&Finance
Bureau of Local Government Finance
Room 1001 Capitol Building
Tallahassee, FL. 32399-0350
Dear Sir:
This office is in receipt of the audit report for the fiscal year ending September 30,2007.
The report indicates no recommendations to improve the Tax Collectors Management, account
procedures or internal controls.
Respectful) ,
Danise D. Henriquez,iCFC
Tax Collector
Monroe County
Cc: County Finance Office