Loading...
Fiscal Year 2012 y44SStttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttt MMygygy}} f. /yy fffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffl MONROE COUNTY, FLORIDA TAX COLLECTOR SPECIAL-PURPOSE FINANCIAL STATEMENTS As of and for the Year Ended September 30, 2012 And Independent Auditors'Report i' i t f/sir Cherry B r ''" MONROE COUNTY, FLORIDA TAX COLLECTOR Special-Purpose Financial Statements, Required Supplementary Information, Other Supplementary Information, and Independent Auditors' Reports For the Year Ended September 30, 2012 Table of Contents Paqe 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 Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards....................................... 17 - 18 Independent Auditors' Management Letter___________________________________________________________ 19 - 20 III,° IBekaer AP �JJJMNIJ�l Independent Auditors' Report To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida We have audited the accompanying 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, 2012, 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 Governmental 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 fairly the financial position and changes in financial position of Monroe County, Florida, taken as a whole. In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the major fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2012, 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. In accordance with Government Auditing Standards, we have also issued our report dated February 6, 2013 on our consideration of the Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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. 2 Accounting principles generally accepted in the United States of America require that the Required Supplementary Information as listed in the table of contents be presented to supplement the special- purpose financial statements. Such information, although not a part of the special-purpose financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the special-purpose financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the special-purpose financial statements, and other knowledge we obtained during our audit of the special-purpose financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the special-purpose financial statements of the Tax Collector taken as a whole. The accompanying other supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the special-purpose financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the special-purpose financial statements. The information has been subjected to the auditing procedures applied in the audit of the special-purpose financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the special-purpose financial statements or to the special-purpose financial statements themselves, and other additional procedures in accordance with accounting standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the special-purpose financial statements 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. Orlando, Florida February 6, 2013 3 SPECIAL-PURPOSE FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA TAX COLLECTOR Special-Purpose Balance Sheet General Fund September 30, 2012 Assets Cash and cash equivalents $ 2,956,467 Due from Board of County Commissioners 3,995 Due from other governments 4,998 Total Assets $ 2,965,460 Liabilities and Fund Balance Liabilities Accounts payable $ 16,654 Accrued wages and benefits payable 51,368 Due to Board of County Commissioners 2,654,503 Due to other governmental units 242,935 Total Liabilities 2,965,460 Fund Balance - Total Liabilities and Fund Balance $ 2,965,460 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, 2012 Revenues Charges for services $ 2,211,591 Intergovernmental - Board of County Commissioners 4,142,437 Total revenue 6,354,028 Expenditures General government Personnel services 2,749,478 Operating expenditures 663,897 Capital outlay 43,215 Total expenditures 3,456,590 Excess of revenues over expenditures 2,897,438 Other financing sources (uses) Transfers to Board of County Commissioners (2,654,503) Transfers to other governmental units (242,935) Total other financing sources (uses) (2,897,438) 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, 2012 Assets Cash and cash equivalents $ 5,496,238 Due from individuals 2,381 Total assets $ 5,498,619 Liabilities Undistributed collections $ 5,485,699 Due to individuals 12,920 Total liabilities $ 5,498,619 See notes to the special-purpose financial statements. 6 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Special-Purpose Financial Statements Year Ended September 30, 2012 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 Statement 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, 2012 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, 2012 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 Tax Collector's compensated absences obligation is as follows: Balance, October 1, 2011 $129,639 Additions 202,128 Deletions 19( 9,442) Balance, September 30, 2012 jja2 325 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, 2012, the Tax Collector has demand deposits with a carrying amount of$8,442,880, a bank balance of$8,424,507, and petty cash funds of$9,825. 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, 2012 Note 3 — Retirement System Plan description — Substantially all full-time Tax Collector employees participate in the Florida Retirement System ("FRS"), administered by the Florida Department of Management Services. Employees elect to participate in either the defined benefit plan ("Pension Plan"), a multiple-employer, cost sharing public employee defined benefit retirement plan, or the defined contribution plan ("Investment Plan") under the FRS. FRS provides retirement benefit, disability benefits, annual cost-of-living adjustments, and death benefits to Pension Plan members and beneficiaries of various governmental units within the State of Florida. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by Act of the Florida legislature. For employees hired before July 1, 2011 and enrolled in the Pension Plan, the FRS provides for vesting of benefits after 6 years of credited service. Normal Pension Plan retirement benefits are available to employees who retire at or after age 62 with 6 or more years of service or after 30 years if under age 62. Benefits are also based on the 5 highest state fiscal years of compensation earned during covered employment. For employees hired July 1, 2011 and thereafter enrolled in the Pension Plan, the FRS provides for vesting of benefits after 8 years of credited service. Normal retirement benefits are available to employees who retire at or after age 65 with 8 or more years of service or after 33 years if under age 65. Benefits are also based on the 8 highest state fiscal years of compensation earned during covered employment. Pension Plan retirement benefits for all employees are based on age, average compensation and years-of-service credit. Early retirement is available after 6 years of service with a 5% reduction in benefits for each year prior to the normal retirement age. 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. Investment accounts may be withdrawn by the employee 90 days after termination or retirement. The Florida Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, PO Box 9000, Tallahassee, FL 32315-9000, or from the website www.dms.myflorida.com/retirement. 10 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Special-Purpose Financial Statements Year Ended September 30, 2012 Note 3 — Retirement System (continued) Funding policy - The FRS was noncontributory for Pension Plan and Investment Plan members until June 30, 2011. As of July 1, 2011 all members, with the exception of Deferred Retirement Option Program (DROP) members and re-employed retirees, contribute 3% of their eligible wages. Participating employer contributions are based upon state-wide rates established by the State of Florida on an annual basis effective each July 1. The rates applied to employee salaries effective as of July 1, 2012 are as follows: regular employees, 5.18%, special risk employees, 14.90%, special risk administrative support, 5.91%; elected officials, 10.23%, senior management 6.3%, and DROP participants 5.44%. The Tax Collector contributed to the plan an amount equal to 5.25% of covered payroll during the fiscal year ended September 30, 2012. The Tax Collector's contributions made during the years ended September 30, 20127 2011, and 2010 were $127,978, $221,225 and $255,448, respectively, equal to the required contributions for each 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) Plan The Monroe County Board of County Commissioners (BOCC) administers a single- employer defined benefit 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). 11 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Special-Purpose Financial Statements Year Ended September 30, 2012 Note 4 — Other Postemployment Benefits (OPEB) Plan (continued) 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. 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 Workers' Compensation, Group Insurance, and Risk Management internal service funds. Under these programs, the Workers' Compensation provides $500,000 coverage per claim for regular employees. Workers' Compensation claims in excess of the self- insured coverage of $500,000 are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention, and building property damage is covered for the actual cost of the buildings with a deductible of $50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Tax Collector participates in the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 6 — Commitments Operating Leases — The Tax Collector leases office space and equipment under operating lease agreements. Total lease payments made in 2012 were $82,447. 12 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Special-Purpose Financial Statements Year Ended September 30, 2012 Note 6 — Commitments (continued) The following is a schedule by years of future minimum rentals under noncancelable operating leases as of September 30, 2012: Year Ending Lease September 30 Payments 2013 $ 84,121 2014 77,349 2015 75,325 2016 30,349 Total $ 267,144 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. Note 8 — Subsequent events Management has evaluated subsequent events through February 6, 2013, in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. 13 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY,FLORIDA TAX COLLECTOR Schedule of Revenues and Expenditures Budget and Actual-General Fund Year Ended September 30,2012 General Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues Charges for services $ 2,178,518 $ 2,178,518 $ 2,211,591 $ 33,073 Intergovernmental-Board of County Commissioners 4,358,182 4,358,182 4,142,437 (215,745) Total revenue 6,536,700 6,536,700 6,354,028 (182,672) Expenditures General government Personnel services 2,876,479 2,872,634 2,749,478 123,156 Operating expenditures 652,551 671,838 663,897 7,941 Capital outlay - 43,216 43,215 1 Total expenditures 3,529,030 3,587,688 3,456,590 131,098 Excess of revenues over expenditures 3,007,670 2,949,012 2,897,438 (51,574) Other financing sources(uses) Transfer to Board of County Commissioners (7,365,852) (7,307,194) (2,654,503) 4,652,691 Transfer to other governmental units (242,935) (242,935) Total other financing sources(uses) (7,365,852) (7,307,194) (2,897,438) 4,409,756 Excess of revenues over expenditures and other financing sources(uses) $ (4,358,182) $ (4,358,182) $ - $ 4,358,182 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, 2012 Balance Balance September 30, September 30, 2011 Additions Deletions 2012 Property Tax Agency Fund Assets Cash and cash equivalents $ 5,584,605 $ 259,002,231 $ 259,277,746 $ 5,309,090 Due from individuals 30 - 30 - $ 5,584,635 $ 259,002,231 $ 259,277,776 $ 5,309,090 Liabilities Undistributed collections $ 5,564,970 $ 245,281,418 $ 245,548,995 $ 5,297,393 Due to individuals 19,665 13,720,813 13,728,781 11,697 $ 5,584,635 $ 259,002,231 $ 259,277,776 $ 5,309,090 Licenses Agency Fund Assets Cash and cash equivalents $ 170,457 $ 13,950,918 $ 13,934,227 $ 187,148 Due from individuals 3,819 - 1,438 2,381 $ 174,276 $ 13,950,918 $ 13,935,665 $ 189,529 Liabilities Undistributed collections $ 171,851 $ 13,929,944 $ 13,913,489 $ 188,306 Due to individuals 2,425 20,974 22,176 1,223 $ 174,276 $ 13,950,918 $ 13,935,665 $ 189,529 Total -All Agency Funds Assets Cash and cash equivalents $ 5,755,062 $ 272,953,149 $ 273,211,973 $ 5,496,238 Due from individuals 3,849 - 1,468 2,381 $ 5,758,911 $ 272,953,149 $ 273,213,441 $ 5,498,619 Liabilities Undistributed collections $ 5,736,821 $ 259,211,362 $ 259,462,484 $ 5,485,699 Due to individuals 22,090 13,741,787 13,750,957 12,920 $ 5,758,911 $ 272,953,149 $ 273,213,441 $ 5,498,619 16 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS % Cherry Ill3 ll ir�,����.� 1111julf, Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable 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, 2012, which collectively comprise the Tax Collector's special- purpose financial statements, and have issued our report thereon dated February 6, 2013 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 Management of the Tax Collector is responsible for establishing and maintaining effective 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 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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Tax Collector's special-purpose financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and 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 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. Orlando, Florida February 6, 2013 18 u��lloa AY Cherry Bekaert Ul,`) ".A),Mors 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, 2012, and have issued our report thereon dated February 6, 2013. 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, and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in this report, dated February 6, 2013, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits, which govern the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors' report. Section 10.554(1)(i)l, Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial report. No recommendations were made in the preceding annual financial audit report. Section 10.554(1)(i)2, Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit of the special-purpose financial statements of the 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. 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. 19 Section 10.554(1)(i)4, Rules of the Auditor General, requires that we address violations of provisions of contracts or grant agreements, fraud, illegal acts, 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. This letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and applicable management and is not intended to be and should not be used by anyone other than these specified parties. Orlando, Florida February 6, 2013 20