Fiscal Year 2010 MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special-Purpose Financial Statements
For the Year Ended
September 30, 2010
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special-Purpose Financial Statements, Required Supplementary Information,
Other Financial Information, and Independent Auditors' Report
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 Balance - General Fund 5
..............................................................................
Special-Purpose Statement of Fiduciary Assets and Liabilities -
AgencyFunds .......................................................................................................... 6
Notes to Special-Purpose Financial Statements __________________________________________________ 7 - 13
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual -
GeneralFund .......................................................................................................... 14
OTHER SUPPLEMENTARY INFORMATION
Agency Fund Descriptions ....................................................................................... 15
Special-Purpose Combining Statement of Changes in Assets and
Liabilities -All Agency Funds ................................................................................ 16
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of the Special-Purpose Financial Statements Performed
in Accordance with Government Auditing Standards....................................... 17 - 18
Independent Auditors' Management Letter........................................................... 19 - 20
INDEPENDENT AUDITORS' REPORT
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the special-purpose 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, 2010, which collectively
comprise the Tax Collector's basic financial statements as listed in the table of contents.
These special-purpose financial statements are the responsibility of the Tax Collector's
management. Our responsibility is to express opinions 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
opinions.
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 Government Entity Audits, and are
not intended to be a complete presentation of the financial position and changes in
financial position of the Tax Collector. Additionally, the special-purpose financial
statements present only the Tax Collector and are not intended to present 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 financial position of the major fund and the aggregate
remaining fund information of the Monroe County, Florida Tax Collector 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 2, 2011, 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 Government Auditing Standards and should
be considered in assessing the results of our audit.
The budgetary comparison schedule on page 14 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 principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and we express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the special-purpose
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 special-purpose financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the special-purpose financial
statements and, in our opinion, is fairly stated, in all material respects, in relation to the
special-purpose financial statements taken as a whole.
This report is intended solely for the information and use of the Tax Collector'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.
"\► JuA.
Orlando, Florida
February 2, 2011
3
SPECIAL-PURPOSE
FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special-Purpose Balance Sheet
General Fund
September 30, 2010
Assets
Cash and cash equivalents $ 3,645,129
Accounts receivable 637
Due from Board of County Commissioners 9,119
Due from other governments 4,754
Total Assets $ 3,659,639
Liabilities and Fund Balance
Liabilities
Accounts payable $ 14,372
Accrued wages and benefits payable 141,832
Due to Board of County Commissioners 3,168,844
Due to other governmental units 334,591
Total Liabilities 3,659,639
Fund Balance -
Total Liabilities and Fund Balance $ 3,659,639
See notes to the special-purpose
financial statements. 4
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special-Purpose Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2010
Revenues
Charges for services $ 2,466,182
Expenditures
General government
Personnel services 2,858,775
Operating expenditures 621,274
Total expenditures 3,480,049
Excess of expenditures over revenues (1,013,867)
Other financing sources (uses)
Transfers from Board of County Commissioners 4,517,302
Transfers to Board of County Commissioners (3,168,844)
Transfers to other governmental units (334,591)
Total other financing sources 1,013,867
Excess of revenues over expenditures and other -
financing uses
Fund balance at beginning of year -
Fund balance at end of year $ -
See notes to the special-purpose
financial statements. 5
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special-Purpose Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2010
Assets
Cash and cash equivalents $ 5,494,562
Due from individuals 2,374
Total assets $ 5,496,936
Liabilities
Undistributed collections $ 5,474,940
Due to individuals 21,996
Total liabilities $ 5,496,936
See notes to the special-purpose
financial statements. 6
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
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, as
amended by Statement No 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 that are
not required legally or by accounting principles generally accepted in the United
States of America to be accounted for in another fund.
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 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 for Local Governmental Entity Audits (the "Rules"), which requires the
Tax Collector to only present fund financial statements. In conformity with the Rules, the
Tax Collector 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.
7
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 1 - Summary of significant accounting policies (continued)
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.
The extent to which General Fund revenues exceed General Fund 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.
The Tax Collector reports the General Fund as a major governmental fund and agency
funds as a fiduciary fund type. Agency funds are custodial in nature and do not involve
measurement of results of operations.
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.
8
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 1 - Summary of significant accounting policies (continued)
Compensated Absences — The Tax Collector permits employees to accumulate
earned but unused vacation and sick pay benefits. A summary of activity for the
Property Appraiser's compensated absences obligation is as follows:
Balance, October 1, 2009 $141,177
Additions 200,789
Deletions 210,692
Balance, September 30, 2010 131 274
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, 2010, the Tax Collector has demand deposits with a carrying
amount of$9,129,965, a bank balance of$9,236,308, and petty cash funds of$9,725.
The Tax Collector 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 Tax Collector 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 institution
pool with the ability to assess its members for collateral if a member institution fails.
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.
9
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
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.
10
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
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. Effective July 1, 1998, the
Legislature established a Deferred Retirement Option Program ("DROP"). Under DROP,
employees may retire and have their benefits accumulate in the FRS Trust Fund,
earning interest, while continuing to work for an FRS employer. Participation in DROP
does not change conditions of employment. When the DROP period, which may be for
a maximum of sixty months, ends employment must be terminated. At the time of
termination employees will receive payment of their accumulated DROP benefits, and
will begin receiving their monthly retirement benefits in the same amount determined at
retirement, plus annual cost-of-living increases.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 intereet 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, 2010 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%. These rates became effective on July 1, 2010. During the fiscal year ended
September 30, 2010, the Tax Collector contributed to the Plan an amount equal to
10.53% of covered payroll. Tax Collector contributions to the FRS for the fiscal years
ended September 30, 2008 through 2010 were $248,597, $249,060 and $255,448,
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.
11
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
Note 4 — Other Postemployment Benefits (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.
The BOCC engages an actuarial firm on a biannual basis 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.
12
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special-Purpose Financial Statements
Year Ended September 30, 2010
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.
Note 6 — Commitments
Operating Leases — The Tax Collector leases office space and equipment under
operating lease agreements. Total lease payments made in 2010 were $86,424.
The following is a schedule by years of future minimum rentals under noncancelable
operating leases as of September 30, 2010:
Year Ending Lease
September 30 Payments
2011 $ 717173
2012 697335
2013 417809
2014 347413
2015 35.296
Total $ 252,026
Note 7 — 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.
13
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY,FLORIDA
TAX COLLECTOR
Schedule of Revenues and Expenditures
Budget and Actual-General Fund
Year Ended September 30,2010
General Fund
Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Charges for services $ 2,121,351 $ 2,121,351 $ 2,466,182 $ 344,831
Expenditures
General government
Personnel services 2,997,639 2,997,639 2,858,775 138,864
Operating expenditures 659,084 659,084 621,274 37,810
Total expenditures 3,656,723 3,656,723 3,480,049 176,674
Excess of expenditures over revenues (1,535,372) (1,535,372) (1,013,867) 521,505
Other financing sources(uses)
Transfer from Board of County Commissioners 3,810,190 3,810,190 4,517,302 707,112
Transfer to Board of County Commissioners (2,274,818) (2,274,818) (3,168,844) (894,026)
Transfer to other governmental units - - (334,591) (334,591)
Total other financing sources(uses) 1,535,372 1,535,372 1,013,867 (521,505)
Excess of revenues over expenditures and other
financing sources(uses) $ - $ - $ - $
14
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.
15
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special-Purpose Combining Statement of Changes in Assets and Liabilities
All Agency Funds
Year Ended September 30, 2010
Balance Balance
September 30, September 30,
2009 Additions Deletions 2010
Property Tax Agency
Assets
Cash and cash equivalents $ 5,340,105 $ 281,499,383 $ 281,500,654 $ 5,338,834
Due from individuals 55 1,545 1,540 60
$ 5,340,160 $ 281,500,928 $ 281,502,194 $ 5,338,894
Liabilities
Undistributed collections $ 5,232,196 $ 262,096,330 $ 262,009,965 $ 5,318,561
Due to individuals 107,964 19,404,598 19,492,229 20,333
$ 5,340,160 $ 281,500,928 $ 281,502,194 $ 5,338,894
Licenses Agency Fund
Assets
Cash and cash equivalents $ 151,977 $ 13,444,953 $ 13,441,202 $ 155,728
Due from individuals 3,465 - 1,151 2,314
$ 155,442 $ 13,444,953 $ 13,442,353 $ 158,042
Liabilities
Undistributed collections $ 154,746 $ 13,418,582 $ 13,416,949 $ 156,379
Due to individuals 696 26,371 25,404 1,663
$ 155,442 $ 13,444,953 $ 13,442,353 $ 158,042
Total -All Agency Funds
Assets
Cash and cash equivalents $ 5,492,082 $ 294,944,336 $ 294,941,856 $ 5,494,562
Due from individuals 3,520 1,545 2,691 2,374
$ 5,495,602 $ 294,945,881 $ 294,944,547 $ 5,496,936
Liabilities
Undistributed collections $ 5,386,942 $ 275,514,912 $ 275,426,914 $ 5,474,940
Due to individuals 108,660 19,430,969 19,517,633 21,996
$ 5,495,602 $ 294,945,881 $ 294,944,547 $ 5,496,936
16
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF THE SPECIAL-PURPOSE 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 special-purpose 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, 2010, which collectively
comprise the Tax Collector's special-purpose financial statements, and have issued our
report thereon dated February 2, 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 Tax Collector's internal control
over financial reporting as a basis for designing our audit 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 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 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 entity's financial
statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to 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.
17
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector'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 Tax Collector'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.
"\► JuA.
Orlando, Florida
February 2, 2011
18
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the special-purpose 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, 2010, and have issued our
report thereon dated February 2, 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 Report of Independent Certified Public Accountants 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 2, 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
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 findings and
recommendations made in the preceding annual financial 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 218.145, Florida Statutes, regarding the investment
of public funds. In connection with our audit of the special-purpose financial statements
of the Tax Collector, nothing came to our attention that could cause us to believe that
the Tax Collector was in noncompliance with Section 218.415 regarding the investment
of public funds.
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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 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.
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 this management letter, unless disclosed in the notes to
the special-purpose 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.
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 Tax Collector'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.
C3 • `� L
Orlando, Florida
February 2, 2011
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