FY2020 MONROE COUNTY., FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County,, Florida)
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
As of and for the Year Ended September 30, 2020
And Reports of Independent Auditor
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MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITOR..................................................................................................1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS ..............................................................................3-6
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statementof Net Position.................................................................................................................................7
Statementof Activities ......................................................................................................................................8
Fund Financial Statements:
Balance Sheet—General Fund ........................................................................................................................9
Statement of Revenues, Expenditures and Changes in Fund Balance—General Fund 10
Notes to the Financial Statements............................................................................................................ 11-28
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Authority's Total OPEB Liability and Related Ratios............................................29
Florida Retirement System Pension Plan
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability ................................................
Schedule of the Authority's Contributions to the Florida Retirement System Pension Plan ..........................30
Health Insurance Subsidy Plan
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability.............................................31
Schedule of the Authority's Contributions to the Health Insurance Subsidy Plan..........................................31
Schedule of Revenues, Expenditures, and Changes in Fund Balance— Budget and Actual—
General Fund (Budgetary Basis)....................................................................................................................32
SUPPLEMENTARY INDEPENDENT AUDITOR'S 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.............................................................................................................. 33-34
Independent Auditor's Management Letter.................................................................................................. 35-37
Report of Independent Accountant on Compliance with Local Government Investment Policies ....................38
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Report of Independent Auditor
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the major fund of the
Monroe County Comprehensive Plan Land Authority (the "Authority"), a component unit of Monroe County,
Florida, as of and for the fiscal 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 opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
An audit 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
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and the major fund of the Authority as of September 30, 2020,
and the respective changes in financial position for the year then ended, in accordance with accounting
principles generally accepted in the United States of America.
1
Emphasis of Matter
As discussed in Note 10 to the financial statements, in March 2020, the World Health Organization declared
COVID-19 a global pandemic. Given the uncertainly of the situation and the duration of any business disruption,
the related financial impact cannot be reasonably estimated at this time.
Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Required Supplementary Information as listed in the table of contents be
presented to supplement the basic 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 March 12, 2021 on
our consideration of the Authority'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 effectiveness of the Authority'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 Authority's internal control over financial reporting and
compliance.
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Tampa, Florida
March 12, 2021
2
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Comprehensive Unit of Monroe County, Florida)
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Monroe County Comprehensive Plan Land Authority (the "Authority"), we offer readers of
the Authority's financial statements this narrative overview and analysis of the Authority's financial activities for
the fiscal year ended September 30, 2020.
Overview of the Financial Statements
This discussion and analysis serves as an introduction and guide to the Authority's basic financial statements.
The Authority's basic financial statements consist of three components: 1)government-wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. Following the notes is the required
supplementary information. This section contains funding information about the Authority's pension plans.
Government-Wide Financial Statements. The government-wide financial statements are designed to provide
readers with a broad overview of the Authority's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the Authority's assets,deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Authority is
improving or deteriorating.
The Statement of Activities presents information showing how the Authority's net position changed during the
most recent fiscal year.All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Compensated absences and pension related items
do not use current financial resources and, therefore, are not reported as expenditures in the General fund.
Fund Financial Statements.The General Fund is used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements,the General Fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. This information
is useful in evaluating the Authority's ability to fund new acquisitions in the near-term.
Since the focus of the General Fund is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for the General Fund with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term
impact of the government's near-term financing decisions. Both the General Fund Balance Sheet and the General
Fund Statement of Revenues, Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate
this comparison between fund level and government-wide activities.
The Authority adopts an annual appropriated budget. A budgetary comparison statement has been provided to
demonstrate compliance with this budget.
Notes to the Financial Statements. The notes contained in this report provide additional information that is
essential to a full understanding of the data provided. The notes are an integral part of the basic financial
statements.
Other Information. In addition to financial statements and accompanying notes, this report also presents
supplementary information required by the Governmental Accounting Standards Board.
3
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Comprehensive Unit of Monroe County, Florida)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Government-Wide Financial Analysis
Statement of Net Position. In the Statement of Net Position presented on page 7, the Authority's assets total
$74,086,053 and include cash and investments, amounts due from other governments for tourist impact tax and
park surcharge fees, mortgages receivable, deposits, capital assets in the form of acquired land, equipment and
intangible assets in the form of affordable housing restrictions. The mortgage receivables consist of nine long-term
balloon loans issued for the acquisition of affordable housing sites as described in Note 3,two of which are forgivable.
Cash and investments are the assets typically of most importance to the Authority's Board of Directors and to the
public, as these assets are the resources most readily available to meet current and future needs for property
acquisition. The Authority's cash and investments total $14,628,392. This amount compares with $15,224,070 at
the end of the previous fiscal year, a decrease of$595,678. Approximately 67% of the Authority's assets consist
of land and intangible assets acquired for specific public purposes, approximately 12% consist of mortgages, and
approximately 20% are categorized as cash and investments.
The Authority's current liabilities consist of accounts payable, accrued wages, and compensated absences
(annual leave and sick leave)forecasted to be used during the upcoming year.The Authority's noncurrent liabilities
consist of compensated absences that are forecasted not to be used during the upcoming year, as well as net
pension and net other postemployment benefits liabilities. Total liabilities are $611,411.
The Authority's resulting net position is categorized as invested in capital assets, restricted specifically for the
acquisition of land or the activities described in Section 380.0666, Florida Statutes, (listed as "restricted"), and
amounts which may be used for all purposes authorized by the Authority's enabling legislation (listed as
"unrestricted"). The Authority's total net position is$73,597,558, an increase of$1,386,707 from prior year. Of this
total, $49,807,671 is invested in capital assets, $7,432,691 is restricted, and $16,357,196 is unrestricted.
The following table provides a condensed comparison of the Authority's Statement of Net Position at year-end for
2020 and 2019:
2020 2019
Cash and investments $ 14,628,392 $ 15,224,070
Capital and other assets 59,457,661 57,397,962
Total Assets 74,086,053 72,622,032
Deferred Outflows of Resources 185,025 169,678
Total Liabilities 611,411 554,352
Deferred Inflows of Resources 62,109 26,507
Net Position:
Investment in capital assets 49,807,671 47,751,384
Restricted 7,432,691 8,076,982
Unrestricted 16,357,196 16,382,485
Total Net Position $ 73,597,558 $ 72,210,851
4
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Comprehensive Unit of Monroe County, Florida)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Statement of Activities. In the Statement of Activities presented on page 8, the Authority's revenues total
$4,677,214 and include intergovernmental revenue consisting of tourist impact tax and park surcharge fees and
investment income consisting of interest on cash and investment accounts. The Authority's general revenues
decreased by $1,261,373 compared to the prior year. This decrease was largely due to the negative economic
impact brought on by the COVID-19 pandemic on the tourism industry.
The program expenses in the Statement of Activities total $3,290,507 and consist of amounts paid as a result of
general government expenses, due diligence land costs, and conveyances. The$553,689 in general government
expenses includes the Authority's personnel and operating expenses plus the amount by which compensated
absences increased during the current year.Total program expenses for fiscal year 2020 increased by$2,367,164
compared to the prior year, largely due to land and affordable housing construction funding conveyances in the
current year.
The following table provides a condensed comparison of the Authority's governmental activities at year-end for
2020 and 2019:
2020 2019
General Revenues:
Intergovernmental $ 4,470,840 $ 5,597,686
Investment income 159,924 340,901
Land contributions 46,450 -
Total General Revenues 4,677,214 5,938,587
Program Expenses:
General Government 553,689 563,473
Due diligence land costs 361,400 -
Judgements and claims - 359,870
Conveyances 2,375,418 -
Total Program Expenses 3,290,507 923,343
Increase in net position 1,386,707 5,015,244
Net position, beginning of year 72,210,851 67,195,607
Net position, end of year $ 73,597,558 $ 72,210,851
Financial Analysis of the General Fund
As noted above, the Authority uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
The Authority's General Fund financial statements provide information on near-term inflows, outflows, and
balances of spendable resources. This information can be useful in assessing the Authority's ability to fund new
acquisitions in the near-term.
5
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Comprehensive Unit of Monroe County, Florida)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balance Sheet. The General Fund Balance Sheet presented on page 9 lists the Authority's assets and liabilities
in a manner similar to the government-wide Statement of Net Position. However, since the General Fund Balance
Sheet is a fund-level presentation providing a near-term perspective, the assets section excludes the Authority's
capital assets, the liability section excludes compensated absences and net pension and other postemployment
benefits ("OPEB") liabilities, and deferred outflows and inflows related to pensions and OPEB are excluded.
Presented in this manner, the Authority's assets are $24,278,382 and its liabilities are $21,464.
This statement identifies $24,256,918 of total fund balance. Of this total, $8,769,025 is attributable to funds the
Authority may receive in the future from the repayment of mortgage loans and is, therefore, classified as
nonspendable; $7,432,691 is attributable to funds restricted for land acquisition and is, therefore, classified as
restricted; $4,293,248 is attributable to funds assigned for reserves; and $3,761,954 is attributable to funds which
may be used for all purposes authorized by the Authority's enabling legislation and is therefore classified as
unassigned.
Statement of Revenues, Expenditures, and Changes in Fund Balance. The General Fund Statement of
Revenues, Expenditures, and Changes in Fund Balance presented on page 10 lists the Authority's revenues and
expenditures in a manner similar to the government-wide Statement of Activities. However, in this format the
expenditures include land purchases (as capital outlay), pension related items, and compensated absences.
Presented in this manner, the Authority's revenues are $4,630,764 and its expenditures are $5,230,226.
General Fund Budgetary Highlights. The Authority budgets its revenues and expenditures on the same basis
of accounting as presented in the basic financial statements of the General Fund, except that mortgage assistance
cash outlays and receipts are budgeted as operating activities and compensated absences are not budgeted in
personnel expenditures.There were no supplemental appropriations to amounts originally budgeted for fiscal year
2020.
As shown in the Budget and Actual schedule on page 32, the Authority operated within the limits established by
its adopted budget. Actual revenues were less than the budgeted amount by$239,236, while actual expenditures
are $13,505,150 less than budget. Most of the revenue deficit consists of a decrease in intergovernmental
revenue. The investment income of$159,924 consists of interest. The schedule's positive expenditure variance
includes budgeted reserves held for specific acquisition projects.
Capital Asset Administration
As shown in Note 4 on page 15,the Authority's investment in capital assets amounts to $49,807,671, an increase
of$2,056,287, compared to the prior year.The increase was the net result of land and intangible asset acquisitions
less depreciation, conveyances, contributions, and write offs.
Long-Term Debt. The Authority's long-term debt consists of compensated absences, pension, and OPEB
liabilities. During the year,the Authority's long-term debt increased by$49,863, primarily due to an increase in the
pension liability.
Requests for Information
This financial report is designed to provide a general overview of the Authority's finances for all those with an
interest in the government's finances. Questions concerning any of the information should be addressed to the
Authority's Executive Director, at 1200 Truman Avenue, Suite 207, Key West, FL 33040.
6
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets:
Cash and investments $ 14,628,392
Due from BOCC 678,944
Due from state of Florida 22,521
Mortgages receivable 8,769,025
Deposits 179,500
Equipment, net of accumulated depreciation 1,468
Capital assets- land 34,109,397
Intangible assets 15,696,806
Total Assets 74,086,053
Deferred Outflows of Resources:
Pension 169,073
Other postemployment benefits 15,952
Total Deferred Outflows 185,025
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,AND NET POSITION
Current Liabilities:
Accounts payable 3,976
Accrued wages 17,488
Compensated absences 24,323
Total Current Liabilities 45,787
Noncurrent Liabilities:
Compensated absences 64,885
Net pension liability 451,209
Other postemployment benefits liability 49,530
Total Noncurrent Liabilities 565,624
Total Liabilities 611,411
Deferred Inflows of Resources:
Pension 6,922
Other postemployment benefits 55,187
Total Deferred Inflows 62,109
Net Position:
Investment in capital assets 49,807,671
Restricted 7,432,691
Unrestricted 16,357,196
Total Net Position $ 73,597,558
The accompanying notes to the financial statements are an integral part of this statement.
7
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2020
General Revenues:
Intergovernmental $ 4,470,840
Investment income 159,924
Land contributions 46,450
Total General Revenues 4,677,214
Program Expenses:
General government 553,689
Due diligence land costs 361,400
Land conveyances 2,375,418
Total Program Expenses 3,290,507
Increase in net position 1,386,707
Net position, beginning of year 72,210,851
Net position, end of year $ 73,597,558
The accompanying notes to the financial statements are an integral part of this statement.
8
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
BALANCE SHEET— GENERAL FUND
SEPTEMBER 30, 2020
ASSETS
Cash and investments $ 14,628,392
Due from BOCC 678,944
Due from state of Florida 22,521
Mortgages receivable 8,769,025
Deposits 179,500
Total Assets $ 24,278,382
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 3,976
Accrued wages 17,488
Total Liabilities 21,464
Fund balance:
Nonspendable, mortgage loans 8,769,025
Restricted, land acquisition 7,432,691
Assigned, reserves 4,293,248
Unassigned, fund balance 3,761,954
Total Fund Balance 24,256,918
Total Liabilities and Fund Balance $ 24,278,382
Amounts reported in the statement of net position differ from amounts
reported above as follows:
Fund balance-total governmental funds $ 24,256,918
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported above 49,807,671
Deferred outflows of resources related to pensions 169,073
Deferred outflows of resources related to other postemployment benefits 15,952
Compensated absences are not due and payable in the current period and,
therefore, are not reported in the governmental funds (89,208)
Net pension liability (451,209)
Other postemployment benefits liability (49,530)
Deferred inflows of resources related to pensions (6,922)
Deferred inflows of resources related to other postemployment benefits (55,187)
Net Position of Governmental Activities $ 73,597,558
The accompanying notes to the financial statements are an integral part of this statement.
9
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE —
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues:
Intergovernmental $ 4,470,840
Investment income 159,924
Total revenues 4,630,764
Expenditures:
Current:
Personnel 393,875
Operating 89,040
Capital outlay 4,747,311
Total expenditures 5,230,226
Deficiency of revenues over expenditures (599,462)
Fund balance, beginning of year 24,856,380
Fund balance, end of year $ 24,256,918
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balance-total governmental fund $ (599,462)
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those assets
is capitalized net of depreciation of$656 4,746,655
Other miscellaneous capital asset transactions which reduce net position (361,400)
Land contributions and conveyances are not reported on government
funds; this is the amount of land conveyances, net of land
contributions during the fiscal year 2020 (2,328,968)
Some expenses do not use current financial resources and, therefore,
are not reported as expenditures in government tunds
Change in pension accounts (60,967)
Compensated absences (12,211)
Change in other postemployment benefits accounts 3,060
Change in net position of governmental activities $ 1,386,707
The accompanying notes to the financial statements are an integral part of this statement.
10
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 1—Nature of operations and summary of significant accounting policies
Reporting Entity—The Monroe County, Florida Comprehensive Plan Land Authority (the "Authority") is a legally
separate entity from Monroe County, Florida. However, the Monroe County Board of County Commissioners
serves as the governing board of the Authority, therefore, for financial reporting purposes, the Authority is
considered a component unit of Monroe County, Florida. The financial statements of the Authority are included
as a discretely presented component unit in the Monroe County, Florida Comprehensive Annual Financial
Report.
The Authority was established under Monroe County, Florida Ordinance 031-1986 pursuant to Florida
Statute 380. Its purpose is to operate a land acquisition program in Monroe County, to implement the Monroe
County Comprehensive Plan and address issues created by it.
Basis of Accounting— Government fund financial statements are organized for reporting purposes on the basis
of a General Fund, the Authority's major fund, which accounts for all activities of the Authority and is accounted
for using the modified accrual basis of accounting. Revenues are recognized when they become measurable
and available as net current assets. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to pay liabilities of the current
period. The Authority considers all revenues available if collected within 60 days after year-end. Expenditures
are recognized when the related fund liability is incurred.
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows.
Budget — Prior to, or on September 30, the Authority's budget is legally enacted through passage of a
resolution. Budgeted to Actual Expenditure reports are employed as a management control device during the
year for the fund. The budget is adopted on a basis consistent with accounting principles generally accepted in
the United States of America, except that mortgage assistance cash outlays and receipts are budgeted as
operating activities and compensation accruals are not budgeted. For the fiscal year 2020, the following
adjustments were necessary to present the actual data on a budgetary basis for the General Fund excess of
revenues over expenditures:
U.S. GAAP basis $ (599,462)
Compensation accrual difference 3,220
Non-U.S. GAAP budgetary basis $ (596,242)
Capital Assets — Capital assets are defined by the Authority as land and those assets with an initial, individual
cost of $1,000 or more and an estimated useful life in excess of two years. Such assets consist of land and
equipment which, when purchased, are recorded at the Authority's cost. Where land was acquired by donation
on or prior to September 30, 2010, the asset was recorded at the Authority's transaction cost plus the higher of
the tax assessed value at the time of donation or 115% of the 1986 tax assessed value. Where land was
acquired by donation after September 30, 2010, the asset is recorded at estimated acquisition cost, derived
from the Authority's transaction cost plus the tax assessed value at the time of donation. Land is not depreciated
since it does not have a determinable useful life. Equipment is depreciated using the straight-line method over
the useful life of the equipment.
11
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 1—Nature of operations and summary of significant accounting policies (continued)
Deferred Outflows and Inflows of Resources — In addition to assets, the statement of financial position will
sometimes report a separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a future period and so will
not be recognized as an expense or expenditure until then. The Authority has several items that meet this criterion
- pension and other postemployment benefits ("OPEB") related deferrals and contributions made to the plans
subsequent to the measurement date. The statement of financial position also reports a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents
an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The
Authority has several items that meet this criterion—pension and OPEB related deferrals.
Long-Term Obligations — In the government-wide financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable governmental activities.
Compensated Absences — The Authority's policy grants employees annual leave and sick leave in varying
amounts. Upon termination of employment, employees with six months or more of credited service can receive
payment for accumulated annual leave. In general, sick leave payments are granted upon termination of
employment to employees with five years or more of credited service. The maximum payment is subject to
percentage and maximum hour limitations. The amount of vested accumulated compensated absences payable
based on the Authority's annual and sick leave policies, is reported as a liability in the government-wide financial
statements. That liability includes earned but unused vacation and sick leave. Vacation leave is accrued based
on length of employment. Sick time is paid out based on length of employment up to one half of all accrued sick
leave, with a maximum of 120 days with 15 or more years of service.
Net Position — Net position in the government-wide fund financial statements is classified as net investment in
capital assets; restricted; and unrestricted. Restricted net position represent constraints on resources that are
either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments
imposed by law through state statute.
Fund Balances— In the governmental fund financial statements, fund balance is composed of five classifications
designated to disclose the hierarchy of constraints placed on how fund balance can be spent. The government
fund types classify fund balances as follows:
Nonspendable— Include amounts that cannot be spent because they are either not in spendable form, or for
legal or contractual reasons, must be kept intact. This classification includes inventories, prepaid amounts,
assets held for sale, and long-term receivables.
Restricted — Constraints placed on the use of these resources are either externally imposed by creditors
(such as through debt covenants), grantors, contributors or other governments; or are imposed by law
(through constitutional provisions or enabling legislation).
Committed — Amounts that can only be used for specific purposes because of formal action (resolution or
ordinance) by the government's highest level of decision-making authority.
Assigned —Amounts that are constrained by the Authority's intent to be used for specific purposes, but that
do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing
body, another body (such as a Finance Committee), or by the Executive Director to whom that authority has
been given. With the exception of the General Fund, this is the residual fund balance classification for all
governmental funds with positive balances.
12
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 1—Nature of operations and summary of significant accounting policies (continued)
Unassigned — This is the residual classification of the General Fund. Only the General Fund reports a
positive unassigned fund balance. Other governmental funds might report a negative balance in this
classification, as the result of overspending for specific purposes for which amounts had been restricted,
committed, or assigned.
Cash and Investments — The Authority's cash and investments consist of demand deposits and highly liquid
investments with maturities of 90 days or less when purchased.
Use of Estimates— The preparation of the financial statements requires management to make use of estimates
that affect reported amounts. Actual results could differ from those estimates.
Note 2—Deposits and investments
As of September 30, 2020, the Authority has the following deposits and investments:
Demand deposits $ 580,195
Local Governmental Surplus Trust Florida PRIME 14,048,197
Total deposits and investments $ 14,628,392
The Authority places its cash and investments on deposit with financial institutions in the United States. The
Federal Deposit Insurance Corporation (FDIC) covers $250,000 for substantially all depository accounts. The
Authority 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 financial institution pool with the
ability to assess its members for collateral shortfalls if a member institution fails. As of September 30, 2020, the
demand deposits have a bank balance of$863,036.
The Authority's investment policy is in accordance with Florida Statute 218.415. This policy authorizes investments
in demand deposits, the Local Government Surplus Trust Fund, money market funds with the highest credit quality
rating from a nationally recognized agency, or direct obligations of the United States Treasury.
As of September 30, 2020, the Authority had $14,048,197 invested in the Local Government Surplus Trust
Fund, all of which is invested in Florida PRIME. Florida PRIME is a qualifying external investment pool
presented at amortized cost, which approximates fair value. There are no restrictions or limitations on
withdrawals; however, Florida PRIME may, on the occurrence of an event that has a material impact on liquidity
or operations, impose restrictions on withdrawals for up to 48 hours.
The Florida PRIME is rated by Standard and Poors. The current rating is AAAm. The weighted average days to
maturity ("WAM") of the Florida PRIME at September 30, 2020 is 48 days. Next interest rate reset days for
floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida
PRIME at September 30, 2020 is 63 days. The Florida PRIME was not exposed to any foreign currency risk
during the period from October 1, 2019 through September 30, 2020. The Florida PRIME did not participate in
any securities lending program in the period October 1, 2019 through September 30, 2020.
13
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 3—Mortgages receivable
Mortgages receivable as of September 30, 2020 are as follows:
Second mortgage due from governmental agency, collateralized by land, payable in full
November 2034, interest free (OR 1697-2076)and (as amended at OR 2442-1497) $ 1,500,000
Second mortgage due from governmental agency, collateralized by land, payable in full
January 2034, interest free (OR 1965-1039) 2,210,000
First mortgage due from governmental agency, collateralized by land, payable in full
September 2045, interest free (OR 1395-1409) 59,025
Third mortgage due from private company, collateralized by land, payable in full May 2050,
interest free (OR 1749-2340) 1,089,000
Third mortgage due from private company, collateralized by land, payable in full September
2053, interest free (OR 1939-405) 1,500,000
Second mortgage due from governmental agency, collateralized by land, payable in full July
2040, interest free (OR 2475-1762) 836,000
Third mortgage due from governmental agency, collateralized by land, forgivable July 2040,
interest free (OR 2475-1767) 800,000
Second mortgage due from governmental agency, collateralized by land, payable in full
November 2041, interest free (OR 2541-877/884) 225,000
Third mortgage due from governmental agency, collateralized by land, forgivable November
2041, interest free (OR 2541-885/895) 550,000
Total mortgages receivable $ 8,769,025
The mortgages receivable are presented as nonspendable fund balance, which indicates that they do not
constitute "available spendable resources," even though they are a component of total assets.
14
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 4—Capital assets
A summary of changes in capital assets is as follows:
Balance Balance
September 30, September 30,
2019 Additions Deductions 2020
Capital assets, not depreciated:
Land $ 33,726,761 $ 3,119,454 $ (2,736,818) $ 34,109,397
Intangible assets 14,024,127 1,672,679 - 15,696,806
Total capital assets, not depreciated 47,750,888 4,792,133 (2,736,818) 49,806,203
Capital assets, depreciated:
Equipment 2,744 1,628 - 4,372
Total capital assets, depreciated 2,744 1,628 - 4,372
Less accumulated depreciation (2,248) (656) - (2,904)
Total capital assets, depreciated, net 496 972 - 1,468
Total capital assets, net $ 47,751,384 $ 4,793,105 $ (2,736,818) $ 49,807,671
The accompanying notes to the financial statements are an integral part of these statements. City of Key West
leases one property with a cost of $101,606 from the Authority. This property, which is included in capital
assets, is used to provide city recreational facilities. The term of the lease provides for rental of$1 per year for
30 years, expiring in the year 2022. Monroe County provides the Authority's office space at no cost. The
intangible assets referenced in the above table consist of affordable housing restrictions that run in favor of the
Authority.
Note 5—Long-term debt
The following is a summary of changes in the Authority's long-term obligations for the fiscal year ended
September 30, 2020:
Current
Balance Portion
10/1/2019 Increases Decreases 9/30/2020 of Balance
Compensated absences $ 76,997 $ 36,534 $ 24,323 $ 89,208 $ 24,323
Net pension liability 364,161 87,048 - 451,209 -
OPEB Liability 98,926 16,562 65,958 49,530 -
Total $ 540,084 $ 140,144 $ 90,281 $ 589,947 $ 24,323
15
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 6—Other Postemployment Benefits (OPEB) Plan
General Information about the Other Postemployment Benefits:
Plan Description — The Land Authority participates in the single-employer defined benefits healthcare plan
(the "Plan") administered by Monroe County, Florida, (the "County"). Section 112.0801, Florida Statutes,
requires the Authority to provide retirees and their eligible dependents with the option to participate in the Plan if
the Authority provides health insurance to its active employees and their eligible dependents. The Plan provides
medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees.
The 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 No. 75.
The County 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 County approves the rates for the coming calendar year for the retiree and Authority contributions.
The Authority is responsible for funding all obligations and the following disclosures are based on the Authority's
net OPEB obligation.
Benefits Provided — Employees who retire as active participants 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 County. Employees who retire as active participants in the Plan, were hired before October 1, 2001, have at
least ten years of full-time service with the Land Authority and meet the retirement criteria of the Florida
Retirement System ("FRS") but are not eligible for Medicare, may maintain group insurance benefits with the
Authority following retirement, provided that the retiring employee contributes the amounts as shown in the
following table.
Contribution as Percentage of Annual Actuarial Rate(')
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%
(1) 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 ten
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.
16
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 6—Other Postemployment Benefits (OPEB) Plan (continued)
An employee who retires as an active participant in the Plan, was hired prior to October 1, 2001, has at least ten
years of full-time service with the Authority, 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 Authority 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 Authority subsidy. Alternatively, retirees meeting these criteria may elect to leave the Authority health
plan and receive a $250 per month payment from the Authority, payable for the lifetime of the retiree.
Employees Covered by Benefit Terms — Eligibility for postemployment participation in the Plan is limited to
full-time employees of the Authority. At September 30, 2020, there were no terminated employees entitled to
deferred benefits. The membership of the Board's medical plan consisted of:
Active employees 3
Retirees and beneficiaries currently receiving benefit 0
Total memberships 3
Contributions— The County establishes, and may amend, the contribution requirements of Plan members. The
required contribution is based on pay-as-you-go financing requirements, net of member contributions.
Total OPEB Liability:
The Authority's total OPEB liability of $49,530 was measured as of September 30, 2020, and was determined
by an actuarial valuation as of December 21, 2020.
Actuarial Methods and Assumptions— The valuation dated December 21, 2020 as of September 30, 2020, was
prepared using generally accepted actuarial principles and practices, and relied on unaudited census data and
medical claims data reported by the Board.
The total OPEB liability for the Authority in the September 30, 2020 actuarial valuation was determined using
the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Actuarial Cost Method Entry Age Normal based on level of percentage of projected salary.
Inflation Rate 2.5% per annum
Salary Increase Rate 3.5% per annum
Discount Rate 2.66% per annum (Beginning of Year)
2.21% per annum (End of Year)
Source Bond Buyer 20-Bond GO index
Marriage Rate The assumed number of eligible dependents was based on the
current proportions of single and family contracts in the census
provided.
17
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 6—Other Postemployment Benefits (OPEB) Plan (continued)
Total OPEB Liability (continued):
Spouse Age Spouse dates of birth were provided by the Authority. Where this
information was missing, male spouses were assumed to be three
years older than female spouses.
Medicare Eligibility All current and future retirees were assumed to be eligible for
Medicare at age 65.
Amortization Method Experience/Assumptions gains and losses were amortized over a
closed period of 11.3 years starting on October 1, 2019, equal to
the average remaining service of active and inactive plan members
(who have no future service).
Plan Participation Percentage The assumptions for participation of eligible retirees in the
Authority's postemployment benefit plan are:
Retirees with 25+Years of Service: 100%
Retirees with 20-24 Years of Service: 20%
Retirees with <20 Years of Service: 25%
The actuarial assumptions include an annual health care cost trend rate of 6.0% initially, reduced by
decrements of 0.5% to an ultimate rate of 4.5%. The assumptions included a discount rate tied to the return
expected on the funds used to pay the benefits, and assumes for an unfunded plan, that the benefits continue to
be funded on a pay-as-you-go basis.
Mortality rates were based on the RP-2010 headcount weighted mortality table using the generational scale MP-1.
Expected retiree claim costs were developed using 24 months historical claim experience through May 2020.
Changes in the Total OPEB Liability:
Total OPEB
Liability
Balance at the beginning of the year $ 98,926
Changes for the year:
Service cost 4,845
Interest cost 2,759
Changes in assumptions or other inputs (56,875)
Benefit payment (125)
Net change in total OPEB liability (49,396)
Balance at the end of the year $ 49,530
18
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 6—Other Postemployment Benefits (OPEB) Plan (continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate—The following presents the total OPEB
liability of the Authority, as well as what the Authority's total OPEB liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (1.66%) or 1-percentage-point higher (3.66%) than the current
discount rate:
Current
1%Decrease Discount Rate 1% Increase
1.66% 2.66% 3.66%
Total OPEB Liability $ 45,000 $ 49,530 $ 58,000
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates—The following presents
the total OPEB liability of the Authority, as well as what the Authority's total OPEB liability would be if it were
calculated using a healthcare cost trend rates that are 1-percentage-point lower (5.5% decreasing to 3.5%) or
1-percentage-point higher (7.5%decreasing to 5.5%)than the current healthcare cost trend rates:
1%Decrease Current Trend 1% Increase
(5.5%decreasing (6.5%decreasing (7.5%decreasing
to 3.5%) to 4.5%) to 5.5%)
Total OPEB Liability $ 43,250 $ 49,530 $ 59,100
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2020, the Authority recognized OPEB expense of ($1,060). At
September 30, 2020, the Authority reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ - $ (52,766)
Changes of assumptions or other inputs 15,952 (2,421)
Net difference between projected and actual investments - -
Total $ 15,952 $ (55,187)
19
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 6—Other Postemployment Benefits (OPEB) Plan (continued)
The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized in OPEB expense as follows:
Years Ending June 30, OPEB Amount
2021 $ (10,538)
2022 (10,538)
2023 (10,538)
2024 (10,538)
2025 837
Thereafter 2,080
Total $ (39,235)
Note 7—Florida Retirement System Retirement Plans
Florida Retirement System:
General Information—All of the Authority's employees participate in the FRS. As provided by Chapters 121 and
112, Florida Statute, 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 ("SBA"). 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 Statute, and Chapter 60S, Florida Administrative
Code.Amendments to the law can be made only by an act of the Florida State Legislature.
The state of Florida annually issues a publicly available financial report that includes financial statements and
required supplementary information for the FRS. The latest available report may be obtained by writing to the State
of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida
32315-9000, or from the Web site: www.dms.mvflorida.com/workforce operations/retirement/publications.
20
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
Pension Plan:
Plan Description — The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a
Deferred Retirement Option Program ("DROP") for eligible employees.
Benefits Provided — 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 1.6%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.
Special Risk Administrative Support class members who retire at or after age 55 with at least six years of
credited service or 25 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 based on the five highest years of salary, for each year of
credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional
officers) who retire at or after age 55 with at least six 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 based on the five highest years of salary for each year of credited service.
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 2.0% 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 3.0%
(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.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of
credited service for all these members and increasing normal retirement to age 65 or 33 years of service
regardless of age for Regular, Senior Management Service, and Elected Officers' class members, and to age
60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class
members. Also, the final average compensation for all these members will be based on the eight highest years
of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan
before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living
adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on
or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living
adjustment is a proportion of 3% determined by dividing the sum of the pre-July 2011 service credit by the
total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1, 2011, will
not have a cost-of-living adjustment after retirement.
21
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
In addition to the above benefits, the DROP 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.
Contributions — Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are
required to contribute 3% 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 established by
the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by
job class for the periods from October 1, 2019 through June 30, 2020 and from July 1, 2020 through
September 30, 2020, respectively, were as follows: Regular-8.47% and 10.00%; Special Risk Administrative
Support-38.59% and 35.84%; Special Risk-25.48% and 25.45%; Senior Management Service-25.41% and
27.29%; Elected Officers'-48.82% and 49.18%; and DROP participants-14.60% and 16.98%. These
employer contribution rates include 1.66% and 1.66% HIS Plan subsidy for the periods October 1, 2019 through
June 30, 2020 and from July 1, 2020 through September 30, 2020, respectively.
The Authority's contributions to the Pension Plan totaled $28,221 for the fiscal year ended September 30, 2020.
Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions—At September 30, 2020, the Authority reported a liability of$345,140 for its proportionate
share of the Pension Plan's net pension liability. The net pension liability was measured as of June 30, 2020,
and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of July 1, 2020. The Authority's proportionate share of the net pension liability was based on the Authority's
fiscal year 2020 contributions relative to the fiscal year 2020 contributions of all participating members. At
June 30, 2020, the Authority's proportionate share was .000796%, which was an increase of .000023% from
its proportionate share measured as of June 30, 2019.
For the fiscal year ended September 30, 2020, the Authority recognized pension expense of $81,864. In
addition, the Authority reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 13,209 $ -
Changes of assumptions 62,481 Net difference between projected and actual earnings on
Pension Plan investments 20,550 -
Changes in proportion and differences between Authority Pension
Plan contributions and proportionate share of contributions 35,679 12
Authority Pension Plan contributions subsequent to the
measurement date 8,696 -
Total $ 140,615 $ 12
22
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
The deferred outflows of resources related to the Pension Plan, totaling $8,696, resulting from Authority
contributions to the Plan subsequent to the measurement date,will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2020. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows:
Years Ending June 30,
2021 $ 27,183
2022 42,336
2023 35,985
2024 21,512
Thereafter 4,891
Total $ 131,907
Actuarial Assumptions — The total pension liability in the June 30, 2020 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.40%
Salary Increases 3.25%, average, including inflation
Investment Rate of Return 6.80%, net of Pension Plan investment expense, including inflation
Mortality rates were based on the PUB2010, base table varies by member category and sex, projected
generationally with Scale MP-2018 details in the valuation report. The actuarial assumptions used in the July 1,
2020, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through
June 30, 2018.
The long-term expected rate of return on Pension Plan investments was not based on historical returns, but
instead is based on a forward-looking capital market economic model. The allocation policy's description of
each asset class was used to map the target allocation to the asset classes shown below. Each asset class
assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation
assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each
major asset class are summarized in the following table:
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation Return Return Deviation
Cash 1.0% 2.2% 2.2% 1.2%
Fixed Income 19.0% 3.0% 2.9% 3.5%
Global Equity 54.2% 8.0% 6.7% 17.1%
Real Estate (Property) 10.3% 6.4% 5.8% 11.7%
Private Equity 11.1% 10.8% 8.1% 25.7%
Strategic Investments 4.4% 5.5% 5.3% 6.9%
Total 100%
23
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
Discount Rate — The discount rate used to measure the total pension liability was 6.80%. The Pension Plan's
fiduciary net position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the discount rate for calculation of the total pension liability is equal to
the long-term expected rate of return.
Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount Rate —
The following represents the Authority's proportionate share of the net pension liability calculated using the
discount rate of 6.80%, as well as what the Authority's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is one percentage point lower (5.80%) or one percentage point
higher (7.80%)than the current rate:
Current
1% Decrease Discount Rate 1% Increase
5.80% 6.80% 7.80%
$551,130 $345,140 $173,096
Pension Plan Fiduciary Net Position— Detailed information regarding the Pension Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive
Annual Financial Report.
HIS Plan:
Plan Description — The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established
under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The
benefit is a monthly payment to assist retirees of state-administered retirement systems in paying their health
insurance costs and is administered by the Florida Department of Management Services, Division of
Retirement.
Benefits Provided— For the fiscal year ended September 30, 2020, eligible retirees and beneficiaries received a
monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a
minimum HIS payment of$30 and a maximum HIS payment of$150 per month. To be eligible to receive these
benefits, a retiree under a state-administered retirement system must provide proof of health insurance
coverage, which may include Medicare.
Contributions—The HIS Plan is funded by required contributions from FRS participating employers as set by the
Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS
members. For the fiscal year ended September 30, 2020, the HIS contribution for the period October 1, 2019
through September 30, 2020 was 1.66%. The Authority contributed 100% of its statutorily required contributions
for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from
which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative
appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all
participants, benefits may be reduced or cancelled.
The Authority's contributions to the HIS Plan totaled $5,058 for the fiscal year ended September 30, 2020.
24
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions—At September 30, 2020, the Authority reported a liability of$106,069 for its proportionate
share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2020, and
the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as
of July 1, 2020. The Authority's proportionate share of the net pension liability was based on the Authority's
2020 fiscal year contributions relative to the 2020 fiscal year contributions of all participating members. At
June 30, 2020, the Authority's proportionate share was .000869%, which was a decrease of .000006% from
its proportionate share measured as of June 30, 2019.
For the fiscal year ended September 30, 2020, the Authority recognized pension expense of $12,390. In
addition, the Authority reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 4,339 $ 82
Changes of assumptions 11,405 6,167
Net difference between projected and actual earnings on
Pension Plan investments 85 -
Changes in proportion and differences between Authority Pension
Plan contributions and proportionate share of contributions 11,265 661
Authority Pension Plan contributions subsequent to the
measurement date 1,364 -
Total $ 28,458 $ 6,910
The deferred outflows of resources related to the HIS Plan, totaling $1,364, resulting from Authority
contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net
pension liability in the fiscal year ended September 30, 2020. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as
follows:
Years Ending June 30,
2021 $ 5,586
2022 4,143
2023 1,132
2024 2,629
2025 3,580
Thereafter 3,114
Total $ 20,184
25
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
Actuarial Assumptions—The total pension liability in the July 1, 2020, actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.60%
Salary Increases 3.25%, average, including inflation
Municipal Bond Rate 3.50%
Mortality rates were based on the Generational RP-2010 with Projection Scale MP-2018 tables.
The actuarial assumptions used in the July 1, 2020 valuation were based on the results of an actuarial
experience study for the period July 1, 2013 through June 30, 2018. The municipal rate used to determine total
pension liability decreased from 3.50%to 2.21%.
Discount Rate — The discount rate used to measure the total pension liability was 2.21%. In general, the
discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the
long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS
benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and
the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The
Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond
index.
Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount Rate —
The following represents the Authority's proportionate share of the net pension liability calculated using the
discount rate of 2.21%, as well as what the Authority's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is one percentage point lower (1.21%) or one percentage point
higher (3.21%)than the current rate:
Current
1% Decrease Discount Rate 1% Increase
1.21% 2.21% 3.21%
$122,611 $106,069 $92,529
HIS Plan Fiduciary Net Position — Detailed information regarding the HIS Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive
Annual Financial Report.
Investment Plan:
The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan
is reported in the SBA's annual financial statements and in the state of Florida Comprehensive Annual Financial
Report.
26
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 7—Florida Retirement System Retirement Plans (continued)
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment
Plan in lieu of the FRS defined benefit plan. Authority employees participating in DROP are not eligible to
participate in the Investment Plan. 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 Authority Officers, etc.),
as the Pension 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
the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution
of 0.0%4 and 0.06% of payroll and by forfeited benefits of plan members for the periods October 1, 2019 through
June 30, 2020 and from July 1, 2020 through September 30, 2020, respectively. Allocations to the investment
member's accounts during the 2019 fiscal year, as established by Section 121.72, Florida Statutes, are based on a
percentage of gross compensation, by class, as follows: Regular class 6.30%, Special Risk Administrative Support
class 7.95%, Special Risk class 14.00%, Senior Management Service class 7.67%, and Authority Elected Officers
class 11.34%.
For all membership classes, employees are immediately vested in their own contributions and are vested
after one year of service for employer contributions and investment earnings. If an accumulated benefit
obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the
member must have the years of service required for Pension Plan vesting (including the service credit
represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested
employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-
covered employment within the five-year period, the employee will regain control over their account. If the
employee does not return within the five-year period, the employee will forfeit the accumulated account
balance. For the fiscal year ended September 30, 2020, the information for the amount of forfeitures was
unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to
the Authority.
After termination and applying to receive benefits, the member may rollover vested funds to another
qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave
the funds invested for future distribution, or any combination of these options. Disability coverage is
provided; the member may either transfer the account balance to the Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the
Investment Plan and rely upon that account balance for retirement income.
The Authority's Investment Plan pension expense totaled $-0-for the fiscal year ended September 30, 2020.
Note 8—Fund balance
As a general rule, the Executive Director will select the most restricted resource permissible and available to
fund a given activity. This practice will generally track the following hierarchy: miscellaneous funds consisting of
grants restricted for specific purposes, State Park and Tourist Impact Tax funds, and lastly unrestricted sources
such as interest income and unrestricted miscellaneous funds. In terms of fund balance classification,
expenditures are generally to be spent from restricted fund balance first, followed in order by committed fund
balance, assigned fund balance, and lastly unassigned fund balance as applicable. The Executive Director has
the authority to deviate from this practice if it is in the best interest of the Authority.
27
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
Note 8—Fund balance (continued)
The following schedule provides management and citizens with information on the position of the General Fund
balance that is available for appropriation.
Total fund balance- General Fund $ 24,256,918
Less:
Mortgage loans 8,769,025
Restricted for land acquisition 7,432,691
Assigned for reserves 4,293,248
Unassigned fund balance $ 3,761,954
Note 9—Risk management
The Authority 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 Authority 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. 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 Authority 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 10—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 11—Commitments
The Authority had approximately $125,597 of commitments to acquire various properties as of September 30,
2020.
28
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
SCHEDULE OF CHANGES IN THE AUTHORITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS*
2020 2019 2018
Total OPEB liability:
Service cost $ 4,845 $ 3,658 $ 3,511
Interest 2,759 3,577 6,887
Changes of benefit terms (65,958) - (84,685)
Changes in assumptions or other inputs 9,083 11,167 (3,632)
Benefit payments (125) (2,802)Net change in total OPEB liability $ (49,396) $ 15,600 $ (77,919)
Total OPEB liability- beginning of year $ 98,926 $ 83,326 $ 161,245
Total OPEB liability- end of year $ 49,530 $ 98,926 $ 83,326
Covered-employee payroll $ 307,470 $ 296,600 $ 284,720
Total OPEB liability as a percentage of
covered-employee payroll 16% 33% 29%
Notes to Schedule:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
Effective January 1, 2018, the Authority implemented cost-saving benefit changes for its other postemployment
benefit plan. These included premium rates that are calculated based on expected retiree costs for Medicare
retirees and lower premium subsidies for eligible retirees.
Changes include updating the mortality to be a generational table with updated projection scales as published
by the Society of Actuaries, an interest rate using 20-year bond rates, and a change in Actuarial Cost
methodology to the Entry Age Normal method.
*This schedule should present information for the last 10 years. However, until a full 10 years of information can
be compiled, information will be presented for as many years as possible.
29
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
LAST TEN FISCAL YEARS*
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability
Florida Retirement System Pension Plan
Year Ended June 30
2020 2019 2018 2017 2016 2015 2014 2013
Authority's proportion of the net pension liability 0.000796% 0.000773% 0.000620% 0.000609% 0.000473% 0.000454% 0.000455% 0.000507
Authority's proportionate share of the net pension liability $ 345,140 $ 266,279 $ 186,597 $ 180,069 $ 119,467 $ 58,605 $ 27,783 $ 87,364
Authority's covered payroll $ 307,470 $ 296,600 $ 284,720 $ 273,194 $ 207,490 $ 186,661 $ 180,758 $ 174,421
Authority's proportionate share of the net pension
liability as a percentage of its covered payroll 112.25% 89.78% 65.54% 65.91% 57.58% 31.41% 15.23% 48.37
Plan fiduciary net position as a percentage of the
total pension liability 78.85% 82.61% 84.26% 83.89% 84.88% 92.00% 96.09% N/A
`Data was unavailable prior to 2013.
Schedule of the Authority's Contributions to the Florida Retirement System Pension Plan
Year Ended September 30
2020 2019 2018 2017 2016 2015 2014
Contractually required contribution $ 28,221 $ 25,151 $ 18,759 $ 16,323 $ 12,914 $ 11,462 $ 9,002
Contributions in relation to the contractually
required contribution 28,221 25,151 18,759 16,323 12,914 11,462 9,002
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ -
Authority's covered payroll $ 307,470 $ 296,600 $ 284,720 $ 276,221 $ 227,265 $ 193,209 $ 182,750
Contributions as a percentage of covered payroll 9.18% 8.48% 6.59% 5.90% 5.68% 5.93% 4.93
Data was unavailable prior to 2014.
30
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
LAST TEN FISCAL YEARS*
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability
Health Insurance Subsidy Plan
Year Ended June 30
2020 2019 2018 2017 2016 2015 2014 2013
Authority's proportion of the net pension liability 0.000869% 0.000875% 0.000872% 0.000857% 0.000672% 0.000600% 0.000607% 0.000597
Authority's proportionate share of the net pension liability $ 106,069 $ 97,882 $ 92,265 $ 91,644 $ 78,333 $ 61,262 $ 56,796 $ 51,972
Authority's covered payroll $ 307,470 $ 296,600 $ 284,720 $ 273,194 $ 207,490 $ 186,661 $ 180,758 $ 174,421
Authority's proportionate share of the net pension
liability as a percentage of its covered payroll 34.50% 33.00% 32.41% 33.55% 37.75% 32.82% 31.42% 29.80
Plan fiduciary net position as a percentage of the
total pension liability 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% N/A
Data was unavailable prior to 2013.
Schedule of the Authority's Contributions to the Health Insurance Subsidy Plan
Year Ended September 30
2020 2019 2018 2017 2016 2015 2014
Contractually required contribution $ 5,058 $ 4,885 $ 4,766 $ 4,586 $ 3,774 $ 2,643 $ 2,097
Contributions in relation to the contractually
required contribution 5,058 4,885 4,766 4,586 3,774 2,643 2,097
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ -
Authority's covered payroll $ 307,470 $ 296,600 $ 284,720 $ 276,221 $ 227,265 $ 193,209 $ 182,750
Contributions as a percentage of covered payroll 1.65% 1.65% 1.67% 1.66% 1.66% 1.37% 1.15
Data was unavailable prior to 2014.
31
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND (BUDGETARY BASIS)
YEAR ENDED SEPTEMBER 30, 2020
Variance
with Final
Budget
Positive
Budget Actual (Negative)
Original Final
Revenues:
Intergovernmental $ 4,770,000 $ 4,770,000 $ 4,470,840 $ (299,160)
Investment income 100,000 100,000 159,924 59,924
Total Revenues 4,870,000 4,870,000 4,630,764 (239,236)
Expenditures:
Personnel and operating 594,556 594,556 479,695 114,861
Capital outlay 18,137,600 18,137,600 4,747,311 13,390,289
Total Expenditures 18,732,156 18,732,156 5,227,006 13,505,150
Excess (deficiency)of revenues
over(under)expenditures (13,862,156) (13,862,156) (596,242) 13,265,914
Fund balance, beginning of year 16,101,623 16,101,623 16,101,623 -
Fund balance, end of year $ 2,239,467 $ 2,239,467 15,505,381 $ 13,265,914
Reconciliation of budgetary to full accrual basis:
Reconciling items:
Mortgages receivable 8,769,025
Compensation accrual (17,488)
Fund balance, end of year(full accrual) $ 24,256,918
32
SUPPLEMENTARY INDEPENDENT AUDITOR'S REPORTS
Cherry Bekaerl-
�.F'.. '_.,.isr,o,
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 Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
We have audited, in accordance with the 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, the financial statements of the governmental activities and the major
fund of the Monroe County Comprehensive Plan Land Authority (the "Authority") as of and for the fiscal year
ended September 30, 2020, and the related notes to the financial statements, and have issued our report
thereon dated March 12, 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 Authority's internal control
over financial reporting ("internal control") as a basis for determining the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Authority'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 Authority'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 Authority'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.
33
Purpose of this Report
The purpose of this report is intended 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 Authority'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 Authority's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
C,Nn 5elcLut LLB
Tampa, Florida
March 12, 2021
34
�trtt<«trt,
%01% Cherry k r -
t(' . R,
Independent Auditor's Management Letter
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
Report on the Financial Statements
We have audited the financial statements of the Monroe County Comprehensive Plan Land Authority
(the "Authority"), a component unit of Monroe County, Florida, as of and for the fiscal year ended September 30,
2020, and have issued our report thereon dated March 12, 2021.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States; 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 March 12, 2021, should be considered in conjunction
with this management letter.
Prior Audit Findings
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.
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 Authority was established by Monroe County,
Florida Ordinance 031-1986 pursuant to Florida Statute 380. There are no component units related to the
Authority.
Financial Condition and Management
Sections 10.554(1)(i)5.a and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the Authority has met one or
more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s)
met. In connection with our audit, we determined that the Authority did not meet any of the conditions described
in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b and 10.556(8), Rules of the Auditor General, we applied financial condition
assessment procedures. It is management's responsibility to monitor the Authority's financial condition, and our
financial condition assessment was based in part on representations made by management and the review of
the financial information provided by same.
35
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. Our recommendation can be found in Appendix A of this
report. We did not audit the Authority's response to the recommendation, which is also provided in Appendix A
and, accordingly, we express no opinion on it.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address 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.
L�Nrri 5elcLut L14'-
Tampa, Florida
March 12, 2021
36
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
APPENDIX A — MANAGEMENT LETTER COMMENT
YEAR ENDED SEPTEMBER 30, 2020
Observation 2020-001: In the normal course of business, the Authority incurs due diligence costs in advance
of acquiring land and includes these costs in the capital assets land account at the time the cost is incurred. For
instances where the associated property has not yet been acquired, it has been the Authority's policy to include
these costs in the capital assets land account for as long as the property remains a candidate for acquisition.
This year, the Authority implemented a revised policy to better reflect the useful life of due diligence products.
Under the new policy, any due diligence costs older than three years are removed from the account unless the
Authority has either acquired or has a contract to purchase the associated property. Implementing this policy in
fiscal year 2020 resulted in the expense of 1% ($361,400) of the Authority's capital asset costs. Additionally, a
property conveyed to another entity in fiscal year 2019 was inadvertently not included in the conveyances
reported that year and was, therefore, reported in fiscal year 2020. The Authority discovered and promptly
notified the auditor of this omission.
Recommendation: The Authority should review the due diligence costs on the capital assets land account
annually for compliance with the Authority's new policy and review all noncash transactions annually to ensure
all conveyances are properly recorded.
Management's Response: Management concurs.
37
rt LLP
Cherry Bekae
Report of Independent Accountant on Compliance
with Local Government Investment Policies
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida
We have examined the Monroe County Florida Comprehensive Plan Land Authority's (the "Authority"), a
component unit of Monroe County, Florida, compliance with the local government investment policy
requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2020. Management is
responsible for the Authority's compliance with those specified requirements. Our responsibility is to express an
opinion on the Authority'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 Authority complied, in all material respects, with the specified
requirements referenced above. An examination involves performing procedures to obtain evidence about
whether the Authority 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 Authority's compliance with the specified
requirements.
In our opinion, the Authority 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.
C�Nn 5elcLut LLB
Tampa, Florida
March 12, 2021
38