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Fiscal Year 2020 MONROE COUNTY, FLORIDA PROPERTY APPRAISER FINANCIAL STATEMENTS, REQUIRED SUPPLEMENTARY INFORMATION, AND SUPPLEMENTARY REPORTS MONROE COUNTY, FLORIDA PROPERTY APPRAISER TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR ................................................................................................ 1-2 FINANCIAL STATEMENTS Balance Sheet—General Fund............................................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances—General Fund..................................4 Notes to the Financial Statements................................................................................................................. 5-10 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures - Budget and Actual—General Fund...............................................11 SUPPLEMENTARY REPORTS Report of Independent Auditor 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............................................................................... 12-13 Independent Auditor's Management Letter.................................................................................................. 14-15 Report of Independent Accountant on Compliance with Local Government Investment Policies.....................16 Cherry rl- Report of Independent Auditor To the Honorable Scott Russell Property Appraiser of Monroe County, Florida Report on Financial Statements We have audited the accompanying financial statements of the major fund of the Monroe County, Florida Property Appraiser (the "Property Appraiser"), as of and for the year ended September 30, 2020, and the related notes to the financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the major fund of the Property Appraiser as of September 30, 2020, and the respective changes in financial position thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the state of Florida. In accordance with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of the general fund of Monroe County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Required Supplementary Information Accounting principles generally accepted in the United States of America require that required supplementary information as listed in the table of contents be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 23, 2021 on our consideration of the Property Appraiser's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control over financial reporting and compliance. Chtrr -5elccuk L-LP Tampa, Florida February 23, 2021 2 FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA PROPERTY APPRAISER BALANCE SHEET- GENERAL FUND SEPTEMBER 30, 2020 ASSETS Cash $ 1,194,413 Prepaid expenses 748 Total Assets $ 1,195,161 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 72,800 Accrued wages and benefits payable 71,599 Due to Board of County Commissioners 952,343 Due to other governmental units 98,419 Total Liabilities 1,195,161 Fund Balance: Nonspendable 748 Unassigned (748) Total Fund Balance - Total Liabilities and Fund Balance $ 1,195,161 The accompanying notes to the financial statements are an integral part of this statement. 3 MONROE COUNTY, FLORIDA PROPERTY APPRAISER STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND YEAR ENDED SEPTEMBER 30, 2020 Revenues: Intergovernmental: Board of County Commissioners $ 4,184,080 Charges for Services: Other taxing districts 432,397 Investment income 1,970 Miscellaneous 196 Total Revenues 4,618,643 Expenditures: Current: Personnel services 2,510,277 Operating expenditures 1,029,275 Capital outlay 28,329 Total Expenditures 3,567,881 Excess of revenues over expenditures 1,050,762 Other Financing Uses: Transfers to Board of County Commissioners (952,343) Transfers to other governmental units (98,419) Total Other Financing Uses (1,050,762) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - The accompanying notes to the financial statements are an integral part of this statement. 4 MONROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 1—Nature of entity and summary of significant accounting policies Reporting Entity — The Monroe County, Florida Property Appraiser (the "Property Appraiser") is a separately elected county official established pursuant to the Constitution of the state of Florida. These financial statements present only the Property Appraiser's Office and do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the "County") taken as a whole. The financial statements of the Property Appraiser have been prepared in accordance with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board ("GASB"). Entity status for financial reporting purposes is governed by GASB Statement 14, as amended. Although the Property Appraiser's office is operationally autonomous, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, under GASB guidelines, the Property Appraiser is reported as a part of the primary government of Monroe County, Florida. Measurement Focus, Basis of Accounting, and Financial Statement Presentation — The Property Appraiser's financial statements are prepared for the purpose of complying with Florida Statute 218.39(2), and Chapter 10.550, Rules of the Auditor General (the "Rules"), which require the Property Appraiser 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 Property Appraiser that are not legally required or by accounting principles generally accepted in the United States of America ("U.S. GAAP")to be accounted for in another fund. The General Fund is presented as a major governmental fund and uses the current financial resources, measurement focus, and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences and claims and judgments are recorded only when payment is due. The extent to which General Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the County Board of County Commissioners (the "Board") and other governmental agencies in the same proportion as fees paid by each governmental unit to total fees earned by the Property Appraiser. Budgetary Requirements — General Fund expenditures are controlled by budget appropriations in accordance with the requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent with U.S. GAAP. Cash and Cash Equivalents—The Property Appraiser's cash consists of demand deposits.All cash is insured by the Federal Deposit Insurance Corporation or covered by the state of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. 5 MONROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 1—Nature of entity and summary of significant accounting policies (continued) Capital Assets — Tangible personal property used in the Property Appraiser's operations is recorded as expenditures in the General Fund at the time assets are received and a liability is incurred. Purchased assets are capitalized at historical cost in the government-wide financial statements of the County. In addition, the Board provides office space used by the Property Appraiser at no charge. Compensated Absences—The Property Appraiser permits employees to accumulate earned but unused vacation and sick pay benefits. The Property Appraiser is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued in the government-wide financial statements of the County. A summary of activity for the Property Appraiser's compensated absences obligation is as follows: Balance, October 1, 2019 $ 157,996 Additions 221,964 Deletions (165,915) Balance, September 30, 2020 $ 214,045 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 The Property Appraiser follows Florida Statutes for its investment policy, which authorizes investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, and obligations of the U.S. government and governmental agencies unconditionally guaranteed by the U.S. government. At September 30,2020, cash included demand deposits with a carrying amount of$1,194,413 and a bank balance of$1,208,672. Note 3—Retirement system Plan Description—The Property Appraiser's employees participate in the Florida Retirement System ("FRS"). As provided by Chapters 121 and 112, Florida Statutes,the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternative to the FRS Pension Plan, which is administered by the State Board of Administration. 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. 6 MONROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 3—Retirement system (continued) Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service, or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.60% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.00%of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.00% (3.33% for judges and justices) of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011, affecting new members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years of credited service and increasing normal retirement to age 65 or 33 years of service regardless of age. Also, the final average compensation for these members is based on the eight highest years of salary. The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and beneficiaries receive a monthly health insurance subsidy payment of$5 for each year of creditable service, with a minimum payment of$30 and a maximum payment of $150 per month. The HIS Plan is funded by required contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of gross compensation for all active FRS members. In addition to the above benefits, the FRS administers a Deferred Retirement Option Program ("DROP"). This program allows eligible members 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.There are no required contributions by DROP participants. For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occurs at one year of service. These participants receive a contribution for self-direction in an investment product with a third party administrator selected by the State Board of Administration. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. 7 MONROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 3—Retirement system (continued) The Property Appraiser recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan,the defined contribution plan, and the HIS Plan amounting to $184,868, $83,692, and $34,023, respectively, for the fiscal year ended September 30, 2020. The Property Appraiser's payments for the Pension Plan and the HIS Plan after June 30, 2020, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS Plan amounted to $70,507 and $8,941, respectively. The Property Appraiser is not legally required to and does not accumulate expendable available resources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government-wide financial statements of the County,following requirements of GASB Statement 68, Accounting and Financial Reporting for Pensions— an amendment of GASB Statement 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement 68, effective October 1, 2014. Funding Policy—All enrolled members of the FRS Pension Plan are required to contribute 3.00% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2019 through June 30, 2020 and July 1, 2020 through September 30, 2020, respectively, were as follows: regular — 8.47% and 10.00%; county elected officers — 48.82% and 49.18%; senior management — 25.41% and 27.29%; and DROP participants— 14.60% and 16.98%. During the fiscal year ended September 30, 2019, the Property Appraiser contributed to the plan an amount equal to 14.76% of covered payroll. The state of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the state of Florida Division of Retirement, Department of Management Services, P.O. Box 9000,Tallahassee, Florida 32315-9000. That report may be viewed on the Florida Department of Management Services website located at www.dms.myflorida.com/workforce_operations/retirement/publications. Note 4—Other post-employment benefit plan (the "OPEB Plan") In addition to the pension benefits described in Note 3, the Property Appraiser offers to its employees a single- employer defined benefit healthcare plan, which is administered by the Board. Florida Statute 112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in the OPEB Plan if the County provides health insurance to its active employees and their eligible dependents. The OPEB Plan provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The OPEB Plan does not issue a publicly available financial report. No assets are accumulated in a trust that meets the criteria as set forth in GASB Statement 75, Accounting and Financial Reporting for Post-employment Benefit Plans Other Than Pensions. The Board may amend the OPEB Plan design,with changes to the benefits, premiums and/or levels of participant contribution at any time. On at least an annual basis, in an open session, and prior to the annual enrollment process, the Board approves the rates for the coming calendar year for the retiree and County contributions 8 MONROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 4—Other post-employment benefit plan (the "OPEB Plan") (continued) Eligibility for post-employment participation in the OPEB Plan is limited to full-time employees of the County, and the Constitutional Officers. An employee who retires as an active participant in the OPEB Plan and was hired on or after October 1,2001 may continue to participate in the OPEB Plan by paying the monthly premium established annually by the Board.An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least 10 years of full-time service with the County, and meets the retirement criteria of the FRS but is not eligible for Medicare, may maintain group health insurance benefits with the County following retirement, provided the retiring employee contributes the amounts shown in the table below. Contribution as Percentage of Annual Actuarial'RateM Plan Years of Service with Monroe County Year 25+ 20-24 10-19 2018 HIS(2) 17% 18% 2019 HIS 18% 26% 2020 HIS 20% 34% 2021 HIS 22% 42% 2022 &Thereafter HIS 25% 50% The new retiree contributions began a five-year phased-in approach beginning January 1,2018. (2) Participation in the Plan is at a cost equal to the FRS Health Insurance Subsidy (HIS) for 10 years of service (currently $5 per month for each year of service credit at retirement with a minimum HIS payment of$30 and a maximum HIS payment of$150 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 based on the preceding table. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least 10 years of full-time service with the County, and meets the retirement criteria of the FRS and is eligible for Medicare at the time of retirement or becomes eligible for Medicare following retirement, may maintain group health insurance benefits with the County following retirement, provided the retiring employee contributes the Actuarial Rate for Medicare retirees as determined by the actuarial firm engaged by the County, less a$250 per month County subsidy.Alternatively, retirees meeting these criteria may elect to leave the County health plan and receive a $250 per month payment from the County, payable for the lifetime of the retiree. The Board engages an actuarial firm on a biannual basis to determine the County's accrued net OPEB liability. The Property Appraiser has no responsibility to the OPEB Plan other than to make the periodic payments determined by the Board, which are presented as expenditures when made and amounted to $131,976 for the year ended September 30, 2020. Further information about the OPEB Plan is available in the County's Comprehensive Annual Financial Report which is published on the Property Appraiser's website at www.clerk-of-the-court.com. 9 MONROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 5—Risk management The Property Appraiser is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Property Appraiser participates in the coverage provided by the Board for Workers'Compensation,Group Insurance, and Risk Management internal service funds. Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees. Workers' Compensation claims in excess of the self-insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention, and building property damage is covered for the actual value of the buildings with a deductible of$50,000. 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 Property Appraiser makes payments to the Workers' Compensation, Group Insurance, and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 6—Commitments Operating Leases—The Property Appraiser leases office equipment under various operating lease agreements. Total lease expenditures amounted to $29,530 during the year ended September 30, 2020. The following is a schedule by years of minimum future obligations under noncancelable operating leases as of September 30: Years Ending September 30, 2021 $ 21,533 2022 16,660 2023 1,360 $ 39,553 Note 7—Economic contingencies During 2020 an outbreak of a novel strain of coronavirus ("COVID-19") emerged globally.As a result of the spread of COVID-19, economic uncertainties have arisen that could negatively impact the revenue and operations for an indeterminable period of time. Other financial impacts could occur that are unknown at this time. Note 8—Litigation The Property Appraiser is a party from time to time in various lawsuits and other claims incidental to the ordinary course of its operation, some of which are covered by the Board's self-insurance program. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Property Appraiser's financial position. 10 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA PROPERTY APPRAISER SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL- GENERAL FUND YEAR ENDED SEPTEMBER 30, 2020 General Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental: Board of County Commissioners $ 4,048,394 $ 4,184,080 $ 4,184,080 $ - Charges for Services: Other taxing districts 432,397 432,397 432,397 - Investment income - - 1,970 1,970 Miscellaneous - - 196 196 Total Revenues 4,480,791 4,616,477 4,618,643 2,166 Expenditures: Current: Personnel services 3,379,969 3,379,246 2,510,277 868,969 Operating expenditures 1,000,822 1,092,222 1,029,275 62,947 Capital outlay 100,000 145,009 28,329 116,680 Total Expenditures 4,480,791 4,616,477 3,567,881 1,048,596 Excess of revenues over(under)expenditures - - 1,050,762 (1,050,762) Other Financing Uses: Transfers to Board of County Commissioners - - (952,343) (952,343) Transfers to other governmental units - - (98,419) (98,419) Total Other Financing Uses - - (1,050,762) (1,050,762) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year $ - $ - $ - $ - 11 SUPPLEMENTARY REPORTS Cherry rl- Report of Independent Auditor 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 Scott Russell Property Appraiser of Monroe County, Florida We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Go vernment Auditing Standards issued by the Comptroller General of the United States, the financial statements of the major fund of the Monroe County, Florida Property Appraiser (the "Property Appraiser") as of and for the year ended September 30, 2020, and the related notes to financial statements, and have issued our report thereon dated February 23, 2021 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. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser's internal control over financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control. 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 Property Appraiser's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free from 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 financial statements. 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the Property Appraiser's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Ghcn-4 -5aa rk t —+ Tampa, Florida February 23, 2021 13 Cherry rl- Independent Auditor's Management Letter To the Honorable Scott Russell Property Appraiser of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Property Appraiser (the "Property Appraiser"), as of and for the year ended September 30, 2020, and we have issued our report thereon dated February 23, 2021. Auditor's Responsibility 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 Auditor General. Other Reporting Requirements We have issued our Report of Independent Auditor 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, and Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 23, 2021, should be considered in conjunction with this management letter. Prior Audit Findings 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 audit report. There were no recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., 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 Property Appraiser is a separately elected county official established pursuant to the Constitution of the state of Florida. There are no component units related to the Property Appraiser. Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires that we communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Ghcrr -5da rk LI-P Tampa, Florida February 23, 2021 15 Cherry rl- Report of Independent Accountant on Compliance with Local Government Investment Policies To the Honorable Scott Russell Property Appraiser of Monroe County, Florida We have examined the Monroe County, Florida Property Appraiser's (the "Property Appraiser") compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2020. Management of the Property Appraiser is responsible for the Property Appraiser's compliance with the specified requirements. Our responsibility is to express an opinion on Property Appraiser's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser's compliance with the specific requirements. In our opinion, the Property Appraiser complied, in all material respects, with the local investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2020. The purpose of this report is to comply with the audit requirements of Section 218.415, Florida Statutes, and Rules of the Auditor General. Ghcn -5aa rk t —+ Tampa, Florida February 23, 2021