Fiscal Year 1996 FLORID
EIN C� IAL SIAIEMEHTS
KPIEMBER-30-019920
EW & GREEN, P a A
CERTIFIED PUBLIC ACC UNT ' T
Rim
Independent Auditors' Report 1
Financial Statements:
1 ance Streets 2
Statements of Revenues, Expenditures and
Changes in. Fund al anc
Statements of Rew,enue ® F p nditares, and Changes i
Fund Balance - Budget and Actual 4m 1
Notes to Financial Statements 11-19
Other Reports®
Report. on the Internal Control Structure -2
Report on Compliance i Laws and Regulations
Po
.I & GREEN, P.A.
Certified Public Accountants
1438 KENNEDY DRIVE
P. o, BOX 1529
KEY WEST, FLORIDA 33041.1529 MEMBER OF AMERICAN INSTITUTE
. KEMP, Ca .A. ( 5) 294-2581 AND FLORIDA INSTITUTE of
MA VA E. GREEN, C.P.A. FAX (305) 294.4778 CERTIFIED PUBLIC ,,. 'OUNTANTS
1WHINMEAUDITURSLARMI
Clerk E x Dfficio
Board County ,Commissioners
Monroe County, Florida
We have audited time financial statements of the Monroe County, Florida Tourist
Development Trust Funds (tl"TDTF") as of September 30, 1996 and , for the year
then ended i,st d in the tablecontents. These filnanici l statements
are the responsibility of the County'County's management. Our responsibility is to
express an opinion on these financial statements based on .our audit.
We conducted our audit in accordance with generally accepted auditing
standards and issued by e Comptroller General
eft United States. These standards require than we plan and per-form the
audit o obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting s
.a significant estimates made by management s well as evaluating the
overall financial statement presentation. We believe that our audit provides
reasonable basis, for, ouropinion.
s discussed in Note 1, the financial statements present only the Monroe
County Tourist Development Trust Funds and afire of intended o present fairly
the financial position of Monroe County, Floridaresults of its
operatics in conformity with generally accepted accounting principles.
In our opinionj the financial statements referred to above present fairly, in
all material respects financial position of the Monroe County, Florida
Tourist Development Trust Funds as of September 30, 1996, and the results of
its operations for the year then ended in conformity with generally accepted
accounting princi
In accordance, with vernment Auditing Stand have also issued a report
dated February 7, 1997 on our consideration of the , TDTF's internal control
structure and a report dated February 7, 1997 on its compliance with laws and
regulations.
�
Kemp & Green, P.A..
-Certified Public Accountants
February 7, 1997
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I . . ' � NI—SPECIAL-REVENUEIAD
SIAIEMENIJOE-REUAKS,. MMIIURESLW
Variance
Favorable
Revenues-
Taxes 1®609„272 1,916,349 07.077
Charges for Services 20D698 20,698
Investment Income � _.:_:��.. � ... .
Total Revenues . UM,ZZ2, ......
Expenditures:
Current:
Economic Environment
Administration 990.603 826.690 163,913
Cultural Umbrella 347.000 279,037 67,963
Fishing Umbrella 446,000 410.827 35,173
Diving Umbrella 0 _.........
Total Expenditures
Excess of Revenues Over/(Under)
Expenditures (274,331) 398,125 672,456
Other Financing Sources/(Uses)-
Reserve for Contingencies
Excess of Revenues and Other
SourcesOver/(Under) Expenditures
and Other Uses (437,081) 8®125 835.206
Fund Balance, 1995
Fund lance" 19961.676.630 35.206
e accompany ing notes are an integral)
part of these financial statements.
w,4w
FOR TW j� R: F W , , ER
Variance
Favorable
Revenues;
Taxes $ 3,334,728 S 3®971,052 $ 636.324
Charges far Services 42,890 42,890
Investment Income 89,039 89.039
Miscellaneous Revenue N ...
Total Revenues .......,
Expenditures:
Current:
Economic Environment:
Advertising a 'P Promotion 3, 3® 3,455,891 2,147
Administrative Services _ ...,
Total Expenditures ,.
Excess of Revenues Over/(Under)
Expenditures (568,469) 394.747 963,216
Other Financing 5oUrc s/(Uses)
Reserve for Contingencies - . ° ) . „--.,,. u....n. n_
Excess of Revenues and Other
Sources Over/(U ee), Expenditures
and Other Uses (905�719) 394.747 1.300.466
Fund Balance, 19 1,
Find Balance., 1996 L—MIM L-zj2LML—LJIAW
The accompanying notes are an integral
part of these financial statements.
�W
MONROE-CQUNLt.1LQR1M
IQURL5IJYSELQPMEMLIRU5LEM
TAREE-CENL—DI51RILI-M
E � Eli ' �L,ANE � UDE�' AND r4
EURJAE—YEALEM—SEPIEMBER-2Q.1ft
Variance ,
Favorable
A ordthe)
Revenne,s
Taxes $ 1,359,600 $ 1,611,444 $ 251.844
Charges for Services - 16,115 16,11
Investment Income
Total Revenues ��. � --Lffi..289 ...
Expenditures:
Current:
Economic Envirorunent-
TDC
Administrative 38,630 26,582 12,08
Tourist.Information Services 219,000 209,303 9,697
Bricks and Mortar 228,811 193,597 5m21
Special Events 251,366 160,749 9 „617
Promotion and Advertising 601® 20 574,937 26.283
Reaches
Total Expenditures __.L-UL.0 .._.....
Excess of Revenues Over/(Under)
Expenditures (162,341) 5013,192 665,533
Other Financing Sour es/(Uses)a
Reserve for Contingencies
'Excess of Revenues and Other
Sources Over/((Jnder) Expenditures
and Other Uses (298.301) 503,192 601,493
Fund Balance, 1995 .
Fund Balance„ 1996
The accompanying notes are an integral
part of these financial statements®
'EME L ff 'NE. a ffSU IUR ANC
Variance
Favorable
Revenues
Taxes $ 148„320 $ 159,926 $ 1,1.606
Charges for Services - �. I#749
Investment Income
Total Revenues .....
Expenditures:
Current t
Economic Environment:
TDC Administrative 4,310 4,310
Tourist Information Services 520305 51,296 1,009
Bricks and Mortar 23.683 0„ 2,834
Special Events 1,1770 1,000 77
Promotion and Advertising
Total Expenditures W --AL30
.
Excess of Revenues O rAUnderl
Expenditure's 6.850 60,571 53321
Other Financing Sources/(Uses):
Reserve for Contingencies
Excess of Revenues and Other
Sources Over/(Under) Expenditures
and Other Uses (7,983) 60,571 68.554
Fund Balance, 19 ,.
Fund Balance. 1996 1 :179 68.554
The accompanying notes are an integral
part of these financial statements.
7
M®NRCIE OU.N _ FLORID
TQU05 D V PMEN TRUST FUNDS
THREE_ CENT._ pISRICTJI,REE
Variance
Favra4le
... �. r�favo Ia )
Revenues:,
'Taxes 271.920 352,727 80�807
Charges for Services 4,852 4, 452
Investment Income ...� ,,
Total Revenues
Expenditures.
Current:
Economic Environment.-
TDC
Administrative 7,726 5,244 2,482
Tourist Informration Services 80,600 78.148 2,452
Bricks and Mortar 35,483 30,050 5.433
Special Events 1,678 1,678
Promotion and Advertising
Total Expenditures :-10 ,,
Excess of Revenues fiver/(Under)
Expenditures 14n388 , 127.'611 113.423
Other Financing, Sources/(Uses):
Reserve for Contingencies __42LW ..: . .,;.,
Excess of Revenues and Other
Sources Over/( Under) Expenditures
and Other Uses (12,804) 127,811 140,61
Fund Balance. 19 ..
Fund Balance, 1996x 140^ 15
The accompanying notes are an` tnte ral
part of these financial statements.
m -
N N , L E - ACTS&
Variance
Favorable
Revenues»
Taxes $ 296.646. $ 354,410 S 57.770
Charges for Services 4.184 41,104
Investment Income � „ _ _ -11.225
Total Revenues � 2
Expenditures:
Current;
Economic nvi.ronmentw
TDC Administrative, 8.428 5.734 2,694
Tourist Information ,Services 80.000 60.175 11®025
Bricks and Mortar 19,638 1O,270 1.368
Special Events 29®8 A 2,333 27.532
Promotion and Advertising ......... fh J.L C
total Expenditures
Excess of Revenues OverAUnder)
Expenditures 15,�:696 136,536 120,840
Other Financing Sources/(Uses): '
Reserve for Contingencies
Excess of Revenues and Other
Surces' er/(Under) Expenditures
and Other Uses (13,968) 136,536 150,504
Fund Balance. 1995 ........—__,- 452 9
Fend Balance, 1996 19 _404
The accompanying notes are an integral
art of these financial statements.
MT , 0MA
TOURIST_DEK OR
TATEM T QE RL:YENU QIT AMA
F A . T M Et) �A MOE -- -BUD2J-MQ—ACIUAL
Variance
Favorable
Revenues:
Taxes $ 395,520 $ 465,194 $ 69,674
Charges for Services v 95 4,895
U
Investment Income
Total Revenues °
Expenditures:
Current-
Economic Environment:
TDC Administrative 11.237 7.652 1a505
Tourist Information services 87,649 BM93 5„55
Bricks and Mortar 38,281 22,225 16,056
Special Events 8a717 8,717
Promotion and Advertising
Total Expenditures
Excess of Revenues Over/(Under)
Expenditures 20.929 143,700 122.771
Other Financing Sourcest(Uses)® _
Reserve for Contingencies
Excess of Revenues and Other
Sources Over/(Under) Expenditures
and Other Uses (18,624) 143,700 162.324
Fund Balance. 1995
Fund Balanced 1996 aO29 1 324„
The accompanying notes are an integral �
part of these financial statements,
-10-
MO OE COUl�T '
ROTESJOL-EINANU&,,,STATEME S
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUM1'"IMC POLICIES
ftporUjig-JaUly - The Monroe County, Florida Tourist Development Trust Funds
(TOTF) are special revenue funds of Monroe County., Florida, administered by
e Monroe County Tourist Development Council. The TOTF °ds considered a part
of the primary ' government of Monroe County as the funds' management i
accountable to the Board of County Commissioners and it is neither legally,
separate ,or fiscally independent of the County® The sole purpose of the TOTF
is to promote .tourism in Monroe County. The TOTF receives its principal
funding from e local option tourist development tam
Aasjs__oj_AccQuntjW - The accounting and financial reporting treatment applied
to a fund " is determined by its measurement focus, The TOTF Special Revenue
Funds are accounted for using current financial resources measurement focus.
With this measurement focus only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these
funds present increases (i .e. , revenues and other financing sources) and
decreases (I .e., expenditures and other financing uses) in net current assets„
asis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurements made regardless of the
measurement focus applied.
The modified accrual basis of accounting is followed in the TOTF Special
Revenue Funds Under the modifiedaccrual basis of acobntin B revenues are
recognized in the accounting oeriod in whichthey become susceptible t
accrual , that is when they become both measurable and available to finance
expenditures of the current period® Available means collectible within the
current period or soon enough thereafter to be used to pay liabilities of the
current period. Primary revenues which include taxes charges for services,
and interest are treated as susceptible t accrual under the modified accrual
basis. Receivables related to these revenues are not recognized unless they
,are collectible within days after the fiscal year end. Expenditures and
transfers out are recorded when the related fund liability is incurred.
Exceptions i general rule include: (1) accumulated sic ay® vacation
pay. and compensatory time, which areof recorded as expenditures® ( ) prepaid
�1
O fin.., "` Y& LF6M
NOTUJklINANUALMERENIS
. —19 ,
NOTE 1 - 'SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i tems., whichare reported only on the BalanceSheet and Ao not affect
expenditures n (3) principal and interest on long-term debt which are
recognized when duew Budgets for the TDTF Special Revenue Funds are also
prepared on the modified accrual basis®
Charges for services, and i llaneous revenues (except investment. arnings)
recorded revenues n received in cash, because they are generally not
measurable until actually received. Investment earnings are recorded
earned since they are measurable available.
k ut .i l - Accounts receivable r recorded at their collectible
amount.
The following r statutory procedures
followed by the Board of County Commissioners in establishing the budget for
TDTF.
(1) Within fifteen .days after certification of the ad valorem tax roll by
the Property Appraiser, the County Budget Officer submits to t e Monroe
Cojunty Board of Commissioners a proposed budget for the fiscal year
commencing the following October 1.. e budget includes proposed
expenditures and the means of financing them.
( ) By Board resolution, tentative bu,dget is submitted to t e u lik .
Public hearings are held to obtain taxpayer comments,
(3) Fifteen days after adopi.ion o the tentative budget, a final budget is
su mitted for reviewan adoption final public hearing.
( ) Prior to, or on September 30, the TDTF"s budgets are legally enacted
through passage of a resolution..
(5) During the year, the Office of Management and Budget acts on
intradepartmental budget changes that do , not alter the -total revenue or
. Ih ..
��T � ANENT TUT FU
KnELn_E1NAWJAL5IAIKKS
NOTE'l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
expenditures budgets to a cost center. All other budget changes
(whether they are transfers between departments or alterations of total
revenues or expenditures in a fund) are approved by the Boa�rd, of County
Commissioners. Supplemental appropriations, r necessary and the
budgetary data presented herein was amended by the Board of County
Commissioners during h ar in a legally permisibll manner.
(6) Florida Statute 129, Sect-ion 7, as amended in 197 , provides that only
expenditures in excess of totalfend budgets are unlawful . However.
because the Boardacts n all budget changes between cost centers, this
becomes the level of control .
(7) Budgeted to Actual Expenditure reports are employed as a management
control device during the year.
( ) Budgets r all funds are adopted on a basis consistent with generally
accepted accounting principles ( ) ,
(9) All appropriations lapse at year
is Investments are stated at ,cost, which approximates market. The
Monroe County Board of County Commissioners.-pools cash and investments of the
County, excluding those requiring benefiting separate investment. This
gives the County the ability to. maximize its yield on theshort-term
investment of cash, increasing its income accordin ;,
Interest earned on pooled investments is allocated to 'the participating funds
based on their average daily balance.' In ividual fund deficits are ignored in
the allocation of interests
r°a r Encumbrance accounting, under which purchase orders are
recorded to reserve that portion of the applicable appropriation, is employed
in the Tourist Development Trust Funds. Encumbrances are not the equivalent
IUR,I T DEVELOPMENT RUST EUN
NQ 1 S MEN7
S PT-'M R_M. G
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
of expenditures; therefore® the encumbrances are reported as reservations o
fund balances at ,year end.
County policy grants employees annual leave and sick
leave in varying amQunts. Upon termination of employment, employees with six
months or more of credited servicecan receive payment for accumulated annual'
leave. In general ® sick leave payments are granted upon , termination o
employment to employees with five, years of more of credited service. The
maximum payment is subject to percentage and maximum hour limitations.
Accumulated annual leave, sick leave.® and related benefits are accrued in the
TDTF to extent that such amounts would normally liquidated i
expendable available financial resources, The remaining liability is
reflected in the County's Genera Long-Term Debt Account Group.
T t of umns o, t Total columns on the statements are
captioned "Memorandum Only" to indicate that they are presented only to
facilitate financial analysis. Data in these ., col umns do not present
financial position or results of operation in conformity with generally
accepted accounting principles, such data 'is- of comparable to
consolidation. Interfund eliminations have not been made in the aggregation o
this data.
NOTE 2 ,- CASH, CASH EQUIVALENTS AND INVESTMENTS
Cash and Investments consist of the following:
Demand Deposits
,Local Government Surplus Funds
Trust Fund Investments
m14
Y '.
RIDA
TOURIST D T T ANDS
T S_IQ_E .H IAL .T TE NS
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
l o6da Statute 125.31 authorizes the County to invest surplus funds in
following:
) the State 4of FloridaLocal Government Surplus Finds Trust Fund l under the
management of the State Board of Administration
} the FloridaCounties 'Investment Trust Fund under the sponsorship oft e
Florida Association Counties and the FloridaAssociation of Court
Clerks Comptrollers
negotiable irect obligations of, or obligations of which the principal
and interest are unconditionally guaranteed by, the U.S. Government
} fnterest bearing i depos:its or savings accounts in banks and savings
and loans organized under state laws or doing business and situated in
the state, provided collateral requirements are met.
e) obligations of the Federal Home Loan Mortgage Corporation
obligationsof the Federal National, Mortgage Association
commercial paper of U.S,,, corporations having a rating,of at least two of
e following three ratings: , - ., p-1, and F-1® rated y Standard
oors,, Moody®s a Fi nvestors Service rating services
) Bankers' acceptances that are eligiblefor pure asd by the Federal
Reserve Banks and have a letter of credit rating of AA or better
il Tax-exempt obligations of the State of Florida and its various local
governments, including Monroe County. Tax exempt obligations with
rating of A or less, must be an Ensured issue -through MBIA or an
equivalent company. Issues1rated r higher may or may not carry an
insurance backing.
-1
SEFTN�E
NOTE 2 CASH.- CASH EQUIVALENTS AND INVESTMENTS (Continued)
- Demand, and time deposits are fully insured by Federal Depository
Insurance and the multiplefinancial institution collateral pool reuiired Y
Sections Florida Statutes.
Investments - Investments at year end areshown as.follows. T U.S. Treasury
obligations and other hands are held by the County®s agent in t. he County°s
name..
Carrying Market
Local Government Surplus Funds Trust Fund n4Sg IS
NOTE S - LEASE OBLIGATIONS
Rental expense under cancelable operating leases for the current year amounted
to $3,400.
T -,� RETIREMENT N
Substantially all full -time.
. County employees are parti ipants in the Florida.
Retirement System® (the "System")., a multiple-employer, cost-sharing 1,1c
retirement system. The System, is is controlled y the State 'Legislature
and administered by the State of Florida,, Department of Administration,
Division of Retirement® covers approximately 587,000 full-ti loyee o
various,,governmental units within the State of Florida.
The System provides for vesting of benefits' after 10 years of creditable
service. Normal retirement benefits are available to employees who r6ttre at
r after age, 62 withr more years o - service. , Early retirement is
-16-
U ULD
ROTE 4 - RETIREMENT PLAN (Continued)
available after 10 ears of service wti th reducti on of benefi is for each
year prior to the normal retirement age. Retirement benefits are based upon
age, average compensation years-of-service credit where average
compensation is computed as the average of an individual'individual 's five highest years
of earnings.
The County has no responsibility o the System other than to make the periodic
payments required y state statutes, Ten-year historical trend information
showing e System®s progress in accumulating sufficient assets to pay
benefits when due is presented in the System's June 30, 1995 Comprehensive
Annual Financial Report.,
e amount reported below as "pension benefit obligation" is a standardized
disclosure measure of the present value of pension benefits, adjusts for
,the effects of projected salary increases estimated to be payable in the
future as a result of employee service to datum The measure is the actuarial
present value of credited projected benefits and is intended to assist users
in assessing the plan's funding status on` a going-concern basis, assess
progress made in accumulating sufficient assets to pay benefits when due, and
make comparisons among government pension plans layers. The System
does not conduct separate measurements of assets and pension benefit
obligations for individual employers. The pension benefits obligation at June
30, 1996 for the System whole.' determined through an estimated actuarial
valuation performed as of that date was $51.4 billion. The System®s net
assets available for benefits on that date (valued at amortized cost) were
i lion® resulting in an unfunded pension benefit obligation of $7.0
billion.
Participating employer contributions are based upon state-wide rates
established by the State of Florida. These rates are applied , o employee
salaries s follows: regular employees, 1 . special risk employees,
6.5 , and elected officials, 27.54% There are no employee contributions to
the plan. The TDTFI's contributions of approximately $12,000 made during the
year ended September 30, 196 were madein accordance with contribution
requirements determined y the actuarial valuation of the System as of June
30, 1995. These contributions represented approximately 0.01004% of total'
. 17-
,CEP"�E�1RER �m 1,
NOTE - RETIREMENT PLAN (Continued)
contributions required of all participating employers during the fiscal year
of the System ended June 30, 1996.
Total payroll for TDTE employees during the fiscal- year ended September 30,
199 s approximately $72,300, with the portion attributed to employees
covered by the Systembeing $71,200.. The contribution, to the System for the
year appro imately 16.8% of total' covered payroll .
There were no changes in actuarial assumptions,, benefit provisions, actuarial
funding methods or any other significant factors that affected the County's
contribution duringthe fiscal year ended September 30, 1 W
NOTE 5 . DEFERRED COMPENSATION PLAN
The County offers its employees deferred compensation plan created i
accordance it ° 'Internal Revenue Code Section 457. The plan, available to
all employees, permits there to defer a portion of their salary until future
years. The deferred compen'sation is not, available o employees until
termination, retirement® death, or unforeseeable emergency...
All amounts, of compensation deferred ender the plan, all property and H ghts
purchased with those amounts, and all income attributable o those amounts,
property, or.. rihts are (until e r made av it e' to the employee or other
beneficiary) solely the property and rights of the County (without
, being restricted the provisions of benefits under the plan) . subject only
o the claims of the County°sr general creditors. Participants, ights under
the plan are equal to those of general creditors of the County in an amount
equal to the fair market val'ue of the deferred account for each participant..
The County has no liability for losses under the plandoes have the duty
.
of due care that would required an ordinary, prudent investor. The
County, believes that it is unlikely that it will use the assets to satisfy the
claim's of general creditors in the future.
J-0—EINAKIALSIAIEMPIS
5EPITEMBER-M-19-9-6
NOTE 5a DEFERRED COMPENSATION PLAN (Continued)
In August,, 1996, Internal Revenue Service code Section 457 was amended to
require that amounts deferred under a deferred compensation plan maintained by
state or local government mustbe held in trust for the exclusivebenefit of
plan participants their beneficiaries. Amounts deferred under existing
plans need not comply with the new trust requirements until January 1, 1999.
NOTE 6 RISK MANAGEMENT
TDTF is exposed to various risks of loss related to tort® theft of, damage to
and destruction of assets; errors and omissions; injuries toemployees;
natural disasters. During the fiscal years ended 1976, 1984 and 1988, the
County established the Worker's Compensation. Group Insurance, and Risk
Management Funds, respectively, as internal service funds, to account for and
finance its uninsured risks of loss., Under these programs the Worker's
Compensation provides $450,000 coverage per claim for regular employees and
$500,000 coverage per claim police firemen. The Group Insurance Fund
provides coverage up to $75,000 for each medical claim. i sk Management
provides $100,000 for each general liability clai and' for most
property damage claims Windstorm,, and Property Damage insurance excess
coverage varies by individual property. The County purchases commercial
insurance for claims in excess of coverage provided by the funds and for all.
other risks of loss. Settled claims not exceeded this commercial
coverage in any of the past three years.
TDTF participates in the programs and make payments to 'the Worker's
Compensation, Group Insurance and Risk 'Management Funds based on estimates of
the amounts needed to pay prior and current year clai
GREENP.A.
Certified Public Ac c'ouutants
11438 KENNEDY DRIVE
m 0. BOX 1529
KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE
WM1. o. KEMP, C.P.A. (305) 294-2581 AND FLORIDA 04STITUTE OF
MARVA E. GREEN, C.P.A. FAX # (305) 294-4778 CCRTIFiED PUBLIC ACCOUNTANTS
Clerk 'Exicio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of the Monroe County, Florida Tourist
Development Trust Funds (the "'TDTF") for the year evaded September 30, 1996,
and have issued our report thereon dated February 7, 1997.
e ,conducted our, audit in accordance with generally accepted auditing
standards and 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.
The management of the TDTF is responsible for establishing and maintaining an
internal control structure. In fulfilling thisresponsibility, estimates and
judgments by management °are required o assess the expected benefits and
elated costs of internal control structure policies and prgcedures�, The
objectives of an internal control structure are to provide management with
reasonable but notsolute, assurance that assets are safeguarded against
loss from unauthorized or disposition, and that transaction are executed
i accordance i management's authorization an recorded properly to permit
e preparation 'of financial statements in accordance with generally accepted
accounting principles. Because of inherent limitations in any internal control
structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluationof the structure to future
periods "is subject tote risk that procedures may become inadequate because
of changes in.co d,itions or that ,e effectiveness of the design and operation
f policies and-procedures may deteriorate.
In planning and performing our audit of the financial statements,,of the TDTF
for the year ended September 30� 1996, we obtained an understanding of the
internal control structure, With respect to the internal control structure,
we obt ,i ne up'derstandi n o the sin of relevant policies an procedures
n whether they v been placed in operation, and we assessed control risk
in order to determine our auditing procedures for the purpose of e. pressin
-20-
our opinion ® the financial statements and not to provide assurance on the
internal control structure. Accordingly, we do not express such an opinion,
Our 'consideration of the i'nternal control structure would not necessarily
disclose all , matters in the internal control structure that might be
reportable conditions, and accordingly, would not necessarily disclose all
reportable conditions that are also considered to be material weaknesses. A.
material weaknessAs a reportable condition in which the design or,operation
of one or more of the specific internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in
the normal coursw performing their assigned functions. We noted no matters
involving the internal control structure and its operation that we consider to
be material weaknesses as defined above..
We also noted other matters involving the "internal control structure and its
oper'at16n that we. have reported to the management of the County in a separate
letter dated Febrp6ry 7, 1997'.
This report is in-tended for the information of the Board of County
Commissioners, management, and others within the County, and officials of
applicable federal and state agencies. However,, this report is a matter, of
public record, and its distribution is not limited.
Kemp & Green, P.A.
Certified Public Accountants
February 7, 1997
-21-
KE GIBP.A.
Certified Public Accountants
1438 KENNEDY DRIVE
Pm 0. BOX 1529
KEG WEST, FLORID 33041-1529 MEMBER OF AMERICAN INSTITUTE
. oa KEMP, C.P>Aa ( 5) 294-2581 AND FLORIDA INSTITUTE Of
MARVA E. GREEN, C.P.A. FAX (305) 294-4778, CERTIFIED PUBLIC AOCOUNTANTS
T AUDITD ." JAI WT H . WS �FGU, ,
Clerk x Officio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of the Monroe County, Florida Tourist,
Development Tryst Funds (the' "TDTF") as of and for the year ended September
30, 1996, and have issued our report thereon dated February 7, 1997.
e conducted ' our audit in accordance with generally accepted au iti
standards and t Auditino St d issued by the Comptroller General
of the United States. Those standards require that we plan and perform
audit to obtain reasonable assurance about whether the financial, statements
are free of material misstatement.
Compliance with laws® regulations, contracts, and grants applicable to the
TDTF is the responsibility of the TDTF's management. As part of obtaining
reasonable assurance about whether the financial statements are free o
material isstatement, we performed tests of the TDTF' compliancewith
certain, provisions of laws, regulations, contracts, and grants. However, the
objective of our audit of the financialstatements was not to provide
opinion on overall compliance with such provisions. Accordingly, we do not
express such an opinion.
The results 'of our testy disclosed instances of noncompliance that are
required o be reported herein under i s
This report is intended for the information of the Board of County
Commissioners, management and others within theCounty, and officials of
applicable federal and state agencies, However, this report is a Matter o
obis record and its distribution is not limited.
Kemp & Green, P.A.
Certified Public Accountants
February 7, 1997
72