Fiscal Year 2008 MONROE COUNTY, FLORIDA
TAX COLLECTOR
Financial Statements
For the Year Ended
September 30, 2008
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Contents
Page
Independent Auditors' Report _____________ _____.___..______._ 2 - 3
BASIC FINANCIAL STATEMENTS
Balance Sheet- General Fund 4
Statement of Revenues, Expenditures and Changes in
Fund Balance •- General Fund 5
Statement of Fiduciary Assets and Liabilities -Agency Funds,---------------------------- 6
Notes to Financial Statements 7 -- 12
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual -
General Fund 13
OTHER SUPPLEMENTARY INFORMATION
Agency Fund Descriptions___________
Combining Statement of Changes in Assets and
Liabilities -All Agency Funds,_____ ____ 15
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards---------------------------------------------- ---------------------------- 16 — 17
Independent Auditors' Management Letter.............................................................. 18 - 19
1
i
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, 2008, 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 financial position of the major fund and the aggregate remaining fund
information of the Tax Collector as of September 30, 2008, 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 Govemment Auditing Standards, we have also issued our report
dated February 2, 2099 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 13 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 of 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 2, 2909
3
BASK FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Balance Sheet- General Fund
September 30, 2008
Assets
Cash and cash equivalents $ 3,661,419
Prepaid expenses 4,798
Due from others 662
Due from other governments 11,021
Total assets $ 3,677,900
Liabilities and Fund Balance
Liabilities
Accounts payable $ 16,186
Accrued wages and benefits payable 125,787
Due to Board of County Commissioners 3,130,154
Due to other governmental units 405,773
Total liabilities 3,677,900
Fund Balance -
Total liabilities and Fund Balance $ 3,677,900
The notes to the financial statements
are an integral part of this statement. 4
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2008
Revenues
Charges for services $ 2,512,731
Expenditures
Current
General government
Personnel services 2,850,405
Operating expenditures 613,404
Capital outlay 25,652
Debt Service - Principal 7,482
Total expenditures 3,496,943
Excess of expenditures over revenues (984,212)
Other financing sources (uses)
Transfer from Board of County Commissioners 4,520,139
Transfer to Board of County Commissioners (3,130,154)
Transfer to other governmental units (405,773)
Total other financing sources 984,212
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. 5
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2008
Assets
Cash and cash equivalents $ 4,748,071
Due from individuals 4,648
Total assets $ 4,752,719
Liabilities
Undistributed collections $ 4,743,449
Due to individuals 9,270
Total liabilities $ 4,752,719
The notes to the financial statements
are an integral part of this statement. 6
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2008
Note 'I - 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 governmental 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.
7
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2008
Note 1 - 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 $130,131 at September 30, 2008, 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, 2008, the Tax Collector has demand deposits with a carrying
amount of$8,399,765 and a bank balance of$8,569,796.
Demand and time deposits are fully insured by the Federal Deposit Insurance
Corporation 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.
8
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2008
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 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.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2008
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, 2639 North Monroe Street,
Building C, Tallahassee, Florida 32299-1560 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, 2008 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, 2008, the Tax Collector contributed to the
Plan an amount equal to 10.26% of covered payroll. Tax Collector contributions to the
FRS for the fiscal years ended September 30, 2006 through 2008 were $210,142,
$253,904 and $248,597 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.
Note 4—Other Postemployment Benefits (OPEB)
The Monroe County Board of County Commissioners (BOCC) administers a single-
employer defined benefit healthcare plan (the "Plan"). In accordance with Section
112.0801 of the Florida Statutes, the BOCC is required to provide retirees with the
opportunity to participate in this Plan because Monroe County provides a medical plan
to active County employees. The Plan provides health care benefits including medical
coverage, prescription drug benefits, dental benefits and life insurance coverage to both
active and eligible retired employees. The Plan does not issue a publicly available
financial report.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2008
Note 4— Other Postemployment Benefits (OPEB) (continued)
The BOCC may amend the plan design, with changes to the benefits, premiums and/or
levels of participant contribution at any time. The BOCC approves the rates for the
coming calendar year for the retiree and County contributions at an open session prior
to the annual enrollment process.
Eligibility for post employment participation in the Plan is limited to full time employees
of the Board, the Constitutional Officers, the Land Authority, and retirees. Retirees hired
after October 1, 2001 must contribute the premium determined by the BOCC for all
participants prior to the annual enrollment process. Retirees hired before October 1,
2001, who retire from the County with 10 years of full-time service and are covered by
the Florida Retirement System, must contribute $50 from each Florida Health Insurance
Subsidy payment from the Florida Retirement System. Other conditions apply to
employees hired before October 1, 2001 who have retired before the normal retirement
date, have not reached age 60, and whose age and years of service to the County do
not equal 70.
In conjunction with the implementation of GASB Statement 45 during fiscal year 2008,
the BOCC engaged an actuarial firm to determine the County's actuarially determined
annual required contribution and unfunded obligation. The Tax Collector 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 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
Worker's Compensation, Group Insurance, and Risk Management Internal Service
Funds. Under these programs, Worker's 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 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 Worker's Compensation, Group Insurance and Risk Management
Funds based on estimates of the amounts needed to pay prior and current year claims.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Financial Statements
Year Ended September 30, 2008
Note 6—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. However, the note payable balance was paid in full on
September 15, 2008, which is the date this vehicle was traded in for the purchase of a
new vehicle. The new vehicle was paid in full upon purchase. Therefore, at September
30, 2008, there are no notes payable.
Operating Leases — The Tax Collector leases office space and equipment under
operating lease agreements. Total lease payments made in 2008 were $84,920.
The following is a schedule by years of future minimum rentals under non-cancelable
operating leases as of September 30, 2008:
Year Ending Lease
September 30, Payments
2009 $ 67,790
2010 56,208
2011 30,909
2012 28,061
2013 -
Total $ 182,968
Note 7 — Reclassification
The funding received from the Board of County Commissioners ("the BOCC") is
reported in these financial statements as an "other financing source" transfer pursuant
to changes in the Florida Uniform Accounting System. In prior years, the BOCC funding
was reported as revenue from charges for services.
Note 8-- 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.
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REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY,FLORIDA
TAX COLLECTOR
Schedule of Revenues and Expenditures-
Budget and Actual-General Fund
Year Ended September 30,2008
General Fund
Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Charges for services __$ _ 2,149,345_ $ 2,149.345 $ 2,512,731 $ (363,386)
Expenditures
Current
General government
Personnel services 3,089,255 3,066,930 2,850.405 216,525
Operating expenditures 641,498 635,991 613,404 22,587
Capital outlay - 27,832 25,652 2,180
Debt service-Principal 5,986 5,986 7,482 (1,496)
Total expenditures 3,736,739 3,736,739 3,496,943 239,796
Excess of expenditures over revenues (1,587,394) (1,587,394) (984,212) 603.182
Otherfinancing sources(uses)
Transfer from Board of County Commissioners 3,808,32{1 3,808,320 4,520,139 711,819
Transfer to Board of County Commissioners (2,220,926) (2,220,926) (3,130.154) (909,228)
Transfer to other governmental units - - (405,773) (405,773)
Total other financing sources(uses) 1,587,394 1.587,394 984,212 (603,182)
Excess of revenues over expenditures $ - $ - $ - $ -
13
OTHER SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Agency Fund Descriptions
The Combining Statement of Changes in Assets and Liabilities—Ail 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.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
Year Ended September 30, 2008
Balance Balance
September 30, September 30,
2007 Additions Deletions 2008
Property Tax Agency
Assets
Cash and cash equivalents $ 4,299,957 $ 263,157,294 $ 262,875,246 $ 4,582,005
Due from individuals 19,449 - 16,519 2,930
$ 4,319,406 $ 263,157,294 $ 262,891,765 $ 4,584,935
Liabilities
Undistributed collections $ 4,312,002 $ 252,574,810 $ 252,309,580 $ 4,577,232
❑ue to individuals 7,404 10,582,484 10,582,185 7,703
$ 4,319,406 $ 263,157,294 $ 262,891,765 $ 4,584,935
Licenses Agency Fund
Assets
Cash and cash equivalents $ 149,367 $ 10,126,465 $ 10,109,766 $ 166,066
Due from individuals 767 951 - 1,718
$ 150,134 $ 10,127,416 $ 10,109,766 $ 167,784
Liabilities
Undistributed collections $ 148,226 $ 10,102,333 $ 10,084,342 $ 166,217
Due to individuals 1,908 25,083 25,424 1,567
$ 150,134 $ 10,127,416 $ 10,109.766 $ 167,784
Total -All Agency Funds
Assets
Cash and cash equivalents $ 4,449,324 $ 273,283,759 $ 272,985,012 $ 4,748,071
Due from individuals 20,216 951 16,519 4,648
$ 4,469,540 $ 273,284,710 $ 273,001,531 $ 4,752,719
Liabilities
Undistributed collections $ 4,460,228 $ 262,677,143 $ 262,393,922 $ 4,743,449
Due to individuals 9,312 10,607,567 10,607,609 9,270
$ 4,469,540 $ 273,284,710 $ 273,001,531 $ 4,752,719
15
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
. 1
F
•
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 of the Monroe County,
Florida Tax Collector (the "Tax Collector") as of and for the year ended September 30,
2008, which collectively comprise the Tax Collector's basic financial statements, and
have issued our report thereon dated February 2, 2009 for the purpose of compliance
with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Govemmental 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 opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Tax Collector's internal control
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.
16
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 reasonable 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 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.
CHERRY, BEKAERT & HOLLAND, L.L.P.
Orlando, Florida
February 2, 2009
17
• W11 Ilk
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, 2008, which collectively comprise the Tax Collector's basic financial
statements, and have issued our report thereon dated February 2, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. 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. Disclosures in that report, dated February 2,
2009 should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550,
Rules of the Auditor General, which govern the conduct of local government entity audits
performed in the State of Florida. This letter includes the following information, which is not
included in the aforementioned auditors' report.
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address significant findings and recommendations made
in the preceding annual financial report. There were no recommendations made in the
preceding year's annual financial report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.145, Florida Statutes, regarding the investment of public funds. In
connection with our audit, nothing came to our attention that could cause us to believe that the
Tax Collector was in noncompliance with Section 218.415, Florida Statutes, regarding the
investment of public funds.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In connection with
our audit, we did not have any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of
provisions of contracts and grant agreements or abuse that have an effect on the financial
statements that is less than material but more than inconsequential. In connection with our
audit, we did not have any such findings.
18
Section 10.554(1)(i)5., Rules of the Auditor General, requires, based on professional judgment,
the reporting of the following matters that are inconsequential to the financial statements,
considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts
or grant agreements, or abuse that have occurred, or are likely to have occurred, and (2) control
deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or
inadequate accounting procedures (e.g., the omission of required disclosures from the financial
statements); (b) failures to properly record financial transactions; and (c) inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of
the auditor. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements.
The 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 of the Tax Collector and
management, and 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.
CHERRY, BEKAERT & HOLLAND, L.L.P.
(Z-�"�"� , '� , ,
4�_
Orlando, Florida
February 2, 2009
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