Fiscal Year 1996 & 1997 EINANUAL-SIAIEMENT-S
KEMP & GREEN, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors® Report 1-2
Financial Statement's:
Balance Sheets 3-4
Statements of Revenues, Eipenses and
Changes in Fund Equity 5
Statements of Cash Flows 5-7
Notes to Financial Statements 8- .
Other Reports:'
Report on the Internal Control Structure21-22
Report on Compl i c Lars and Regulations 2
Report Bond Compliance 24
Supplemental Schedule:
Schedule f Expendi,tures d Budgetand Actual -25
KEMP & GREEN, P.A.
crtifted Public Accountants
1438 KENNEDY DRIVE
Pe 0. BOX 1529
b WEST, FLORID 041-1529 - MEMBER OF AMERICAN INSTITUTE
WMA. o. KEMAP, C.P.A. ( 5) 2942581 AND FLORIDA INSTITUTE OF
RVA E. GREEN, CYA FAX (305) 294.4.778 CERTIFIED PUBLIC ACCOUNTANTS
IMEMDERLAUQUORSLREPORI
Clerk Ex Gfficio
Boardof County Commissioners
Monroe County, Florida
We have audited the financial statements of the Monroe County, Florida
Municipal Service District (®' ") as of September 30, 1996 19 , and for
the years then nded, listed in the accompanying table of contents. These
financial statements are the responisibility of the County's management Our
responsibility is to express an opinion on these financial statements based on
our audit.
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 andperform the
audit to obtain reasonable assurance about, whether the financial statements
re free of material misstatement.. An audit includes examining, n a test
basis, evidence supporting e amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant 'estimates made by management, as well as.. evaluating the
overall financial statement presentation• We believethat,our audit provides
reasonable si for our opini
s discussed in Note 1. the financial statements present only the Monroe
County Municipal ervi District and are not intended to present fairly the
financial position of Monroe County, Florida and the results of its operations
and its cash flows in conformity i generally accepted accounting
principles.
In our ®pinion® the financial statements referred to above present fairly, ih,.
" all material respects, the financial position the Monroe County, Florida
Municipal ,Service District as of September 30, 1996 and 1995, and the results
o its operations its cash flows forte years then ended in conformity
with generally accepted accounting ri ci es.
m1®
'Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole' The schedule listed in the foregoing table of
contents® which is also the responsibility of the management of the County., is
presented for purposes of additional analysis and is not a required part of
the financial statements of the County. Such additional information has been
subjected to the auditing procedures applied in the audit of the financial
statements and, in our opinion, is fairl stated 'in all material respects when
considered in relation,to the financial statements taken as a whole.
In accordance with we have also issued a report
dated February 7® 1997 on our consideration of MSD"s internal control,
structure and a report dated February 7, 1997 on its compliance with laws and
regulations.
Ok
Kemp & Green. P.A.,
Certified Public Accountants
February 7, 1997
-2-
ROE COU
BALAN
'EIff T
5UJEffiER-3a,-1q9kJfiUJ3.95.
- ,.
Current Assets:
Cash and Cash Equivalents $ 5,,111.R930 $ 4,087®742
Investments east r AmortizedCost 5,384,927
Accounts ReceivableAllowances for
Uncollectible Accounts of $849,693 and
$999..559 for 1996 and 1995 respectively 419,013 379,458
Due From Other Governments 126,250
ti
Interest Receivable ._....
Total, Current Assets _. 5 --m-13fi-271
Restricted Assets®
Cash and Cash Equivalents 5
Investments at Cost or Amortized Cost
Total Restricted Assets _—a, .,.....
Plant® Property and Equipment.;
Land 4,983,016 ® 1
Buildings and Other Improvements 1,37 ,271. 1�205,194
Equipment 14,789,004 ,1
Construction in Progress .
21,149,291 20,831,252
Less'Accumulated Depreciation e letion --1
Net Plant, Property and Equipment ....... .......
Deferred Charges m Unamortized Det
Expense, Net --262, ,M
Total Assets LUJULM
The accompanying notes are an integral part
of these financial statements.
.3®
MORGE-SWU
WMA
pp®�� E
Current Liabilities;
Accounts Payable 'J., 0 ,117 1,3 ,502
Accrued,Wages andBenefits Payable 62.701 55.540
Accrued Compensated Absences 12,384 1.531
Due to Other Funds 5.951 146;080
Due to Customers 244,301 256.514
Due to Other Governments �1®672 2,229
Capital Leases Payable 146.448 137„941,
Deposits ...._„ _90 � �.
Total Current liabilities
Current Liabilities Payable from
Restricted Assets:
Current Portion of Long-term Debt 335,000 K5,000
Accrued Interest 278.081 287.058
Landfill Closure and Post Closure Costs
Total Accounts Payable from
Restricted Assets �1 ..
Long-term Debts
Revenue Bonds Net of Current Portion 8e155 000 8e490,000
Accrued Compensated Absences 166,03B 1.041'507
Capital Leases Payable, Net of Current Portion
Total Long-term ebt
Total 'Liabilities _ - , ...1MU
Fund Equity:
Contributed Capital 3,311.886 3,304.568
Retained Earnings-.
Unreserved 5,325,928 ,9 1.9
Reserved for Revenue Bond Retirement _ � _.........
Total Fund Equity ._aj2L.922
Total piailltis and Fund Equity 23.362.420 BB7
The accompanying notes are an integral part
of these ,financial statements.
MQNRQE-02L7[)L-B.0ffi.DA
R R.UCE
SIAIEMEN-TS-DF—RLVENUEI.-EXff.NSESJ.W.
(° N kl U-
Operating Revenues
Change for Service $ ,10,575,409 9.9 5,977
Franchise Fees 3.252,1 4 2.959.859
Miscellaneous ., 5 . ....... b7
Total Operating Revenues __ Z
Operating Expenses
Professional Services 10,423.143 10m253.972
Personal Services 1.765,244 l.a669.226
Depreciation and Amortization 1.018,203 10,038.183
Operations 489,585 219,66
Landfill Closure and Post Closure 292,698 225,28
Repairs and Maintenance
Total Operating Expenses 7 ......... 3.
Operating Income (Lo,ss) _._
Non-Operating Revenues (Expenses):
Operating Grants 238,214 2 �01
Interest Income 763,704 709,149
Interest Expense and Fiscal Charges (679.481) (703„059)
Lass on Disposition of Assets
Total Non-Operating Revenues
Income (Lass) Before Operating Transfers
Operating Transfers;,
Transfers from Other Funds 1,421,671 1.,9 1.616
Transfers to .�.r Funds _ �) )
Total Operating'Transfers
Net Income 422,701 432.150
Fund Equity, Beginning of Year 9,728,899m 030
Contributed Capital ., :
Fund Equity.. End of Year S 10.15 a91 099
The accompanying notes are an integral part
of these financial statements.
T A
Cash Flows from Operating Activities
Cash Received for Services 13,798,550 13,038.486
Cash Payments to Suppliers for Goods
and Services (11„ 05,408) (11,893.779)
Cash Payments to Employees for Services (1.745,699) (L677.614)
Other Operating Revenue _,,........... �,.
Net Cash Provided (Used) by Operating
Activities .,, ..e ,, )
Cash Flows from capital Financing
Activities:
Operating Grants Received 306.037 267,869
Operating Transfers from Other Funds 1.421.671 1,931. 18
Operating Transfers to Other Funds -- ) .A, - m )
Net Cash Provided'by Noncapital
Financing Activities �k
Cash Flows from Capital and Related Financing
Activities:
Acquisition and Construction of Capital Assets (389,394) ( R6a717)
Principal Paid can onq Term Debt (452,942) ( 72.426)
.Interest Paid on Lang Term Debt
Net Cash (Used) by Capital an
Related Financing Activities ) -ALVLADD
Cash Flows from Investing ActWtties:
Purchases of investments (11.321,,,135) (5,684,412)
,Proceeds from Sale and Maturities of
Investment Securities 14.324.000 4,895,406
Interest on Investments _....-„
Net Cash Provided (Used) by Investing
Activities ...
Net Increase (Decrease) in Cash And
Cash Equivalents 3.7 4.503 (1a616P078)
Cash and Cash Equivalents,,, Beginning of Year , ......_ -09= — . -
Cash and Cash Equivalents, End of Year _ �65gtlR7
The accompanying notes are an integral part
of these financial statements.
AD-199-5
Operating Income (Loss) _ )
Adjustments to Reconcile Operating
Income to Net Cash Provided (Used)
y Operating Activities:
Depreciation and Amortizatiow 1.018m2 3 1„03 e183
Change in Assets and Liabilities:
Decrease ,(Increase) in:
Accounts Receivable (39n555) 161.052
e From Other Governments 62 2.29
(Decrease) Increase in:
Accounts Payable 124,61 (906,834)
Accrued Wages' and Benefits Payable 7,16 (9,919)
Due to Other Funds (139,12 ) 138,123
Due to Other Governments (557), 9
Deposits 10,500 (700)
Landfill Closure and Post Closure Costs 111.672 (337,112)
Accrued Compensated Absences 12,304 1,531
Due to Customers
'Total Adjustments .. —
Net Cash,Providled (Used) by Operating
Activities
Contributed Fixed Assets 7,31 s 490°719
Loss on Disposition of Fixed Assets r � _126.169
The accompanying notes are an integral part
of these financial statements,
®° ,
. MO F„ F �ORIDA
WILS-10—ElIMUALSM-HENIS
30, 1
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
T Monroe County, Flori-da Municipal Service District
("MSD") is a enterprise fund of Monroe C ray (the "County") authorized t
n an operate solid waste collection., "facilities of County. MSD is
considered a part of the County®s primary government - its management is
accountable to the Board of County Commissioners, and it is neither legally
separate or fiscally independent,
MSD applies Financial Accounting Standards Boars (FASB) pronouncements and
Accounting, PrincipBoard (APB) opinions issued on or before November 30,
1989, less those pronouncements conflict with or contradict GASB
pronouncements@ in whichcase, GASB prevails.
BLUI-QLAComating The accounting nand 1 reporting treatment applied
to a fund is determined by its measurement focus. MSD uses a flow of economic
resources measurement focus® With this measurement focus, all assets and all
"'liabilities associated withoperations are included on the balance sheet
Fund equity (i .e. , net total assets)., is segregated into contributed cap�i t 1
and retained earnings components. Operating statements present increases"
(e.g. , revenue) and decreases (e.g. , expenses) in net total assets.
Basis 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.
MSD uses the accrual basi s of account' . ,, Revenues are recogni zed in the
period in which they are earned: and expenses 'are recognized in the period
incurred.
Bud et nd. Gudoetary DThe followingstatutory procedures
followed by the Board of County Commissioners in establishing e budget for .
1 , Within fifteen days after certification of the ad valoremtax role
by Mthe Property Appraiser, the County Budget Officer submits o
the oar proposed budget for fiscalyear, commencing e
. RID
MUNIMALLERUCUMMM
JA MEME NIS
NOTE 1 SUMMARY SIGNIFICANT ACCOUNTING POLICIES (Continued)
following October 1. The budget includes proposed expenditures
and the means of financing them.
) By Board resolution, a tentative budget is submitted to the
public. Public hearings are held to obtain taxpayer comments.
) Fifteen days after adoption of thetentative budget a final
budget is submitted for review n adoption at a final ' u ic
hearing.
Prior to, or on September 30,, MSD's budget is l l-ly enacted
through passage of a resolution. Acordingly°d MSD has an adopted
budget as required y Florida- Statute 129.03.
)° During the year, the Office of Management and Budget acts on
intradepartmental budget changes that do not alter the total
revenue or expenditures budgeted to a cost center. A cost center
represents a particular area of County operations or a department.
All other budget changes (whether they are transfers between cast
centers or alterations of total revenues and expenditures in.,
Fund) are approved by the Board. Supplemental appropriations were
necessary and the budgetary data presented herein was amended by
e Board during the year in a legally permissible manner. ,
Florida Statute 129,, Section 7., as amended in 1978, provides that
only expenditures in excess of total, fund budgets are unlawful .
However, because the Board acts on 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 duringyear.
Budgets are adopted on a basis consistent with generally accepted
accounting principles ( P) a except for expenditures relative to
debt, capital outlay, and 1 andfi closure and post closure costs.
All appropriations lapse at year
W
O C _, TATEM KU'
NOTE I SUMMARY OF SIOMIFIC T ACCOUNTING POLICIES (Continued)
Inyeatmenta - Investments are stated at cost whicil approximates market. e
Monroe County Board of County Commissioners pools cash and investments of the
County® excluding those requiring or benefiting by separate investment. This
gives the County the abilitymaximize its yield on the short-term
investment of cash, increasing its income accordingly,
Interest earned on pooledinvestments -is allocated to the participating funds
based on their average daily balance. Individual fund deficits are ignored i
the allocation of interest.
tv and prgciation - Property additions are recorded at cost,
Expenditures for maintenance® repair's and minor renewals and betterments are
expensed as incurred., Major renewals betterments are treated .as property
acquisitions® Depreciation and depletion expense i provided sing h
straight-tin � m�e hod over estimated useful lives of the assets as foll
Sanitary Landfill Sites 1 - 10
Buildings and Other Improvements 10 40
-
Machinery and Equipment 3 1
Depreci.atio recognized assets acquired or constructed through grants
externally restricted for , capital acquisitions is recorded as an operating
expensed
Depreciation recognized assets
acquired or constructed through grants externally restricted for capital.
acquisitions is recorded as an operating expense in the related proprietary
funds®
- 'Capitalized lease obligations re- stated at the
riginal fair market value of leased assets capi talized, less payments since
the inception of the lease discounted at the implici t rate f interest in the
1
10®
m
NO"�'ES T°O F �. STATEEN
SEPT MBER 1-1 - A
NOTE 1 , SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
rd rh ryes - The unamorti .ed issuance costs 'on Revenue Bonds Payable are
amortized sin straight-line method over e maturity of the bonds.
beano - County, licy grants employees annual 1 eave andsick
leave i varying amounts Upon, termination employment. employees' with six
months 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 percentages and maximum hour limitations. The
Accumulated compensated absences are accrued when incurred® with the portion
to be liquidated with expendable available resources recorded as a current
liability in accordance with GASB 16.
Equivalents - For purposes of the statement of cash flows, MSD
considers all highly liquid investments (including restricted assets) with a
maturity of three months or less when pur, hased` to be cash equivalents®
NOTE 2 CASH® CASH EQUIVALENTS AND INVESTMENTS
Cash, cash equivalents and investments consist f the followingSeptember
® 199 :
dnres�ri Restricted
Cash - Demand Deposits
Investments:
PooledCash Program 5.100,963
U.S. Government Securities
Total Investments
Total Cash and Investments 1m39 2n410
Florida Statute 12531 authorizes ,MSD as a County fund to invest surplus funds
in the following:
M M�
MI° C F, AI ��"A. TEMEM�'S
NOTE 2 CASH, CASH EQUIVALENTS INVESTMENTS (Continued)
a) the Local Government Surplus Funds Trust Find under the management
of the State of FloridaBoard of Administration
) the FloridaCounties Investment Trust Fund under the sponsorship
of the Florida Association of Counties and the FloridaAssociation
of Court Clerks Comptrollers
c) negotiable direct obligations of, or obligations of which
'principal and interest are unconditiona ly guaranteed by S.
Government
interest bearing time deposits or savings accounts in banks and
savings loans organized under state laws or doingbusiness iri
and situated in the state, provided collateral regui.r ments re'
met.
obligations Federal Home Loan Mortgage Corporation
f) obligations o Federal.-, National Mortgage Association
) commercial paper of the U.S. corporations i rating of a
least two of the following three ratings: -, @ P-1 andF-1, as.'
rated by, Standards & Foors® Moody Fitch Investors Service
rating services
) Banker's acceptances that areeligible for purchase by the Federal
Reserve Banks and have letter of credit rating of AA or better
i) Tax-exempt obligations of the State of Florida its various
local governments, including Monroe County® Tax exempt
obligations with a rating of, A or less, must be an insured issue
through MBIA or an equivalent company.. Issues rated At, or higher,
may,or may not carry an insurance backi
Demand and time deposits are fully insured by Federal Depository
Insurance and the multiplefinancial institution collateral pool .required y.
Sections 280.07 and 280.08, Florida Statutes.
12
U IPA S VI ,�E.® STPIC�'
N.QIE5_Jkf1WQ,&__5IA1EMEbn
PTEMBER 30. 1996 AND .
NOTE 2 CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
Investments at year end are shown as fol 1 s. The U.S. Treasury
obligations are heldCounty'County's agent in the County's name.
Carrying Market
Pooled Cash Program 5,100,963 $ 9,100,963
U.S. Government Securities ff
6
NOTE 3 w LONG-TERM DEBT
Long-term debt consists Pf the following:
Refunding Improvement ends® secured by
revenues of MSD whichr igati solely of
payable in installments of various amounts,
fromi October 1. 1996 through October1, 2011,
bearing interest 805,000
Capital Leases Payable i,945,583 2,083,525
Accrued compensated absences ...�
Total long-term debt 10,614,0105 11,054,563
Less current portion �...
Net long-term debt
UMT E`LOR1 ,
HURLUPALSMICL
NOTE 3 LONG TERM DEBT (Continued),
The total- annual debt service funding requirements for all bonds outstanding
at September 30, 1996, consisting of interest payments of $4,875,300 and
-principal payments of $8,155A00 are as follows:
Revenue
1997 891,732 ,
1998 890,788
1999 898,288
001
202-200 4,P -9 595
20076 ,O11
13. 30.30;
The
1991 Municipal Service i t isRefunding Improvement bonds are payabl
solely from andcoliateralized by a prior lien upon and pledge of 0.1charges
for service levied annually against residential property within the Monroe
County Municipal Service District ( "Districts) , Monroe County, Florida for
the availability and furnishing o certain solid rusts disposal services, (ii)
payments received from franchi'se solidwaste collectorsi respect t
commercial property within the Distric , iii all other non ad valorem farads
received y the District with respect to furnishing services of the solid
wash facilIties to the residents of the Disirict excluding any state or
federal funds received from time to time by the District- and i v) certain
investment income received by the District. Under the terms of the enterprise
revenue bonds is Municipal Service District i required, among other
things, to establi sh rates n o collect fees n charges is will
sufficient t at all o pay 110 the Maximum Debt Service Requirement on
the Series1991 Bonds and on all outstanding Parity Bonds, plus 100 ' of all
reserve or other payments including the cost of Operation and Maintenance and
deposits:. for Renewal and Replacements o Facilities. The Municipal
CDUNlY.B.DRIM
I . DICE DISTR.
NUES-M-EMKIALSIATERENU
SEEENREUL-1226-A"915
NOTE 3mLONG TERM DEBT (Continued)
Service District was in compliance i those covenants, for the year, ended.
September 30, 1996. The Bands and the interest payable thereon will not,
constitute a general obligation of the District, Monroe County'. or the State
of Florida, or a pledge of the faithand credit of the District, Monroe
County, the Statd of Floridaor any politicalsubdivision thereof. Neither
the Bonds, nor any interest or premium thereon, shall be payable from e ad
valorem x revenues of the District. Monroe County, �or the State of Florida.
MOTE 4 PRIOR YEAR DEFEASANCE OF DEBT
On December 6. 1985 the County, defeased the $8,000,000 MunicipalService
District Improvement Bonds, Series 198 i proceeds from the $9,211,774
Municipal Service District Refunding Improvement Bonds, Series 1985a On April
1, 191 'the County defeased the Municipal Service istrict Refunding
Improvement Bands, Series 1985 by usingproceeds from Municipal ,Service
District Refunding Improvement Bonds, Series 1991.
The following schedule reflects the outstanding principal on refunded
Municipal Service istrict Bonds, by issue as of September 30, 1
,000,000 Municipal Service District Improvement
Bands, Series 1980 $ 6.755,000
$9,211,774 Municipal Servic District Refunding
Improvement Bonds, Series 1985 194�483
1.2. 49 m 403
NOTE 5 - LEASE OBLIGATIONS
Capitalized lease obligations consist of the lease purchase of building
improvements capitalized at $774,310 and equipment capitalized at $1,561,520.
The future minimum payments under the capitalized lease are as follows:
ml
ft N E GOCJNT
MMIURAL-SEREULDISIRM
NQIEUUEIRMJALSTATEMENTS
. 0 m 199
NOTE 5 LEASE OBLIGATIONS (Continued)
1997 $ 259,200
1998 259,200
1999 251,200
2000 259,200
2001 259,20
Thereafter u
Total Payments 2,591,997
Amount Representing Interest ___ 1
Present Value of Net Minimum Lease Payments 4 .5M
Rental expense under cancelable operating leases as $28,061 and $16,544f
1996 and 1995 respectively.
NOTE , RISK MANAGEMENT
MSD is exposed to °var�ious risks of loss related to tort; theft of, damage to
and destruction of assets; error's and omissions: injuries to employees, and
natural disasters. During fiscal years ended 1976., 1984 and 1988, the
County established the Worker's Compensation, GroupInsurance, and Risk
Management Funds, respectively, as internal service funds to account for and
finance its uninsured risks of l oss,,. Under these programs, the, Worker"s
$Compensation provides 50, coverage per claim for regular employees and
500,000 coverage per claim lic firemen, h Group Insurance Fund
provides coverage asp o $7 for each medical claim. Risk Management
provides $100,,000 for each general liability claim , 0 for most
property damage claims. Windstorm, Flood andProperty Damage insurance excess
coverage varies 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 have not exceeded this commercial
coverage in any of the past three years.
MQNRQESMM..1LOR1DA
1AL STaTEM
�N ANC 19
NOTE 6 RISK MANAGEMENT (Continued)
MSD participates 'in the programs and makes payments to the Worker's
Compensation, Croup Insurance and RiskManagement Funds based on estimates of
the amounts needed to pay prior andcurrent year claims.
NOTE 7 w RETIREMENT PLAN
Substantially all full-time MSD employees are participants in the Florida
Retirement System ("The System°)® a multi pl e®emplo r, cost-sharing public
retirement system. The System which is controlled State Legislature
and administered by the State of Florida, Department of Administration,
Division of Retirement, covers approximately 587,000 full -time employees 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 availablet employees who retire a
or after age 62 with10, or more years of service. r y retirement is
available after 10 years of service i 5 reduction of benefits for each
year prior to the normal retirement age. Retirement benefits are based upon
average compensation n years-of-service credit where average
compensation is computed as the average of an indivi u 's five h.ighest,years
of earnings.
MSD s no responsibility to the System other than to make the periodic
payments required by state statutes, e -y ar historical' trend 'information
showing the System's progress in accumulating sufficient assets to pay
benefits when due is presented in the System°s dune, 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® adjusted for the
effects of projected salary increases estimated to be payable -in the future as
a result of employee service to date. The measure is the actuarial present
value of credited., projected benefits and is intended o assist users i
assessing the plan's plan' funding status on a going-concern basis. assess progress
made 'in accumulating sufficient assets to pay benefits when due, and make
-17-
HONK S' ' T ICT
ANC. .�.._. TATMENTS
m,� n ANO 195.
NOTE 7 RETIREMENT P (Continued)
comparisons among government pension plans andemployers, 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
e System as a whole, determined through an estimated actuarial valuation'
performed as of that date„ was 151.4 Million. The System"s net assets
available for benefits on that date (valued at amortized cost) were
billion, resulting in an unfunded pension benefi :obli anon of $7.0 billion.
Participating employer contributions arebased upon , state-wide rates
established by the State f Florida., These rates are applied to employee
salaries as follows: regularg employees. 17.00%, special risk employees,
. elected officials, 27. . There are no employee contributions to
Plan.the 's contributions of approximately $210,000 and $211,000for the.
years ended September 3 i 16 and 1995 were made in accordance with
contribution requirements determined actuarial valuation -of the System
as of June 30, 1995. These contributions represented approximately 01 o
total contributions required of all participating employers during fiscal
years of the System ended June 30. 1,996 and 1995.
Total payroll for MSD employees during fiscal years ended September
1996 and 1995 was approximately respectively., which
s substantially- the sane as payroll covered by the Systemw The contribution
o the System for these years was approximately 17.4% and 17.5% of total
covered payroll for 1996 and1995 respectively.
There were no changes in actuarial assumptions, benefit provisions, actuarial
-funding methods or any other significant factors that affected "s
contribution during the fiscal year ended September 30, 1996.
NOTE 8 4 DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all
employees, permits them to defer a porn n of their salary until future years.
-18-
UNMEA SERVIC .... DIMU
OTES T FINr�,N TA ... I
NOTE 8 DEFERRED COMPENSATION PLAN (Continued)
The deferred compensation is not available to employees until termination,
retirement® death, or unforeseeable emergeny.
1 amounts of compensation deferred under the plan, all property and rights
purchased with those amounts, and all income attributable those amounts,
property, or rights are (until paid or made available loyee or other
eneficiary) solely the property and rights of the County (without being
restricted to the provisions benefits under the lam i subject only to t
claims of the County's general creditors® Participants' rights under the plan
are equal to those of general creditors of the County in an amountequal ' to
e fair market value of the deferred account for each participant.
The County has no liability for losses underthe plan but does havee duty
f due care that would be required of an ordinary prudent investor. The
County believes that it is unlikely that it will use the assets to satisfy the
claims of general creditors in the future.
In August, 1996, Internal Revenue Service code Section 467 was amended to
require that amounts deferred under, a deferred compensation plan maintainedy
state of 1 ),: government must be heldin trust for the exclusive benefit of
plan participants and their beneficiaries. Amounts deferred under existing
plans need not comply with the new trust requirements anti , January 1® 1999..
NOTE 9 RECOGNITION OF CLOSURE AND POST CLOSURE COST
State and federal laws require final cover and closure as well as post closure
care of the County's landfill s. Recognition of the liability for closure and
post closure costs is based on the landfill capacity used to date. The
landfill capacity of the County's previously operated landfills is 100 used
and s no remaining landfill life. Closure of the landfills was substantially
completed during the year ended September 30, 1994. The County has another
landfill site which has never been used. Accordingly, no future closure cost
is accruable except for post closure costs estimated to be incurred in the
coming year.
61
COUNTY. F.
N { " UAL . '
S: T. 1. 95 ANC
—1225
NOTE. 9 RECOGNITION OF C1 OSURE AND POST CLOSURE COST (Continued)
The Florida department of Environmental Protection approved a post closure
operating i permits the County to fund ,closure and post closure costs
as an operating expense using annual appropriations. The landfill is required
y state and federal laws 'and regul ati ons to make annual contribut-ions to
cash escrow account ,to meet financial- assurance requirements.. The landfill is
in compliance with these requirements at September 30, 1995 with cash and
investments of $1,563,225 held or these purposes. In the event closure
escrows and interest earnings prove inadequate due to inflation, changes in
technology or additional post closure` e require entsm 'these costs may need
o be covered by charges to service users.
NOTE 10 COMMITMENTS CONTINGENCIES
MSD participates in grant programs. These programs are
subject to financial, and. compliance audits by the grantors their
representatives. As of February .- 17 there were no material questioned or
disallowed costs as a result of grant audits in process 'completed®
w
9
Certified Public Accountants
1A38 KENNEDY DRIVE
P. 0. BOX 1529
V WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE
KEMP, c,P.A. ( 5) 29A,25 1 AND FLORIDA INSTITUTE OF
MARVA E. GREEN, C.P.A. FAX ( 0 ) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
L-MUCT-URE
Clerk Ex Officio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of the Monroe County. Florida
Municipal Service istrict °®M U" ) as of and for the year ended September 30,
1996,, and have issued our report thereon dated February 7, 1997
We conducted our audit in accordance with generally accepted auditing
standards and Gg-yernment-Audll*=-51andar-ds. -issued by the Comptroller General
f the United States. Whose 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 MSD is responsible for establishing and maintaining an
internal control structure.' In fulfillingthis responsibility, estimates and
judgments by management are required- o assess the expected benefits and
related costs of internal control structure policies and procedures, The
objectives of an internal control structure are to provide management with
reasonable, u absolute, assurance a assets are safeguarded against
loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit
the preparation of financial statements in accordance with generally accepted
accounting principles. Because of inherent limitations in any internal control
structure® errors or irregularities y nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future
periods is subject to the risk that procedures may become inadequate because
of changes in conditions or that the effectiveness of the design and operation
of policies and procedures may deteriorates
In planningperforming r audit of the financial statements of MSD for
the year ended September 30, 1996® we obtained n understanding of the
internal control structure. With respect to the internal control, structure,
we obtained n understanding of the design of relevant policies and procedures
and whether they have been placed in operation, and we assessed control risk
in order to determine our auditing procedures forte purpose of expressing
W
our opinion on the financial statements and not to provide an' ,opinion on the
internal control, structure, Accordingly, we do note press such an opinion.
Our consideration of the internal 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 weakness is a reportable condition in is the design or operation
of one or more- of the speci fi c internal control structure el ements 'does ' t no
reduce to a relatively low level the risk that errors and 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 ih
the normal course of performing their assigned functions, We noted ,n6 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
operation that we have reported to the management of the County in a separate
letter dated February 7. 1997.
This report is intended 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.
VA7
Kemp 6 Green, P.A.
Certified Public Accountants
February 7, 1997
-22-
KEMP b GTE
Certified Public Accountants
1438 KENNEDY DRIVE
P. 0. BOX 129
KEY WEST, FLORIDA 041-15 9 MEMBER OF AMERICAN INSTITUTE
KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF
A VA E. GREEN, C.P.A. FAX (3 5) 294-4718 CERTIFIED PUBLIC ACCOUNTANTS
IMFPF�C�F ��T"OP H��TICS
Clerk x Officio
Board of County Commissioners
Monroe County, Florida ,
We have audited financial statements of Monroe County, Florida Municipal
Service istrict (" ") of and for the year ended September 30., 1996, n
have issued our report thereon dated February 7a 1997.
e conducted our audit in accordance with generally accepted auditing
standards and G .YeC Auditing ,,a d ® issued by the Comptroller General
of e United States. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the , financial statements
are free of material misstatement.
Compliance i laws, regulations, contracts® and grants applicable to MSD i
the responsibility of management® As part of obtaining reasonable
assurance about whether the financial statements are free of material
misstatement, we performed tests o ®s compliance, with certain provisions
of laws, regulations, contracts, and grants,., However, objective f our
u it° of the financial statements was not to provide an opinion on overall
compliance with such provisions. Accordingly, we do not express such
opinion.
The results of our tests disclose no instances of noncompliance that are
required to be reported herein under e _, u a e i ng_Stada „,
This report is intended for the information of the Board of County
Commissioners, management and others within the County, and applicablefederal
and state agencies. However, this report is a matter of public record and its
distribution is. not limited.
9emp & Green, PA
Certified Public Accountants
February 7® 1997
-23
TEEP.A.
ert "t - Faulk Accountants
1438 KENNEDY DRIVE
Pe 0. BOX 1529
KEY WEST, RORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE
a-KEMP, C P.A. (2 5) 2 4-25 1 AND FLORIDA INSTITUTE OF
AR E. GREEN® C.P.A. FAX (305) 294`w4778 CERTIFIED PUBLIC ACCOUNTANTS
v CEO
Clerk Ex Officio
Board of County Commissioners
Monroe County, Florida
e have audited the financial statements .of (Monroe County, londay Municipal,
Service Di strict - as ,of September, 30, 19916 and1995, and for years then
ended',, listed i t accompanying table contents. These financial'
statements are the responsibility �-of the County s management Our
responsibility is to express an opinion on these fipanicial statements based on
our ,audit.
We conducted our audit in accorda' e° with general ,y accepted auditin
standards and 6aVgrn=tAudjtjng,-SjAndu-ds. issued by the Comptroller General
of the UnitedStates. Those standards require 'that we plann perform the
audit -obtainto reasonable assurance about whether e financial statements
r free o,f material misstatement. An audi't- includles .e amining, on a test
basi S,, e i dern e supporti-n the amounts and di scl osur s i n the fi na�nci al
statements audit also includes, assessing accounting rincipl used
and ,significant estimates made by, management,a s well s evaluating e
overall financial statement presentation. We believe that, our audit prOvi'des
reasonable basis for our opinion®
In connection it out audi .,, .nothing came to our attention that caused us to
beli eve' that the Monroe, County, Florida Municipal Service District was not in
Compliance.'with any of the terms® covenants, prowisi nsm or conditions of
Article 5 of Resolution No. 061 whichs adopted by oard of County
Co i ssi oners March 1 ,,m 3. as amended supplemented. it
should be noted that our audit was not directed primarily toward obtaining
' knowledge of such noncgiIipl i ance m
mow: o
'Kemp & Green, P.A.
Certified Public Accountants
'February 7, 1997
I Cp �IT �LdR� �
Variance
Favorable
Operating Expenditures:
Administration 301.410 S 357.298 24,112
Hazardous Waste 220a356 168,055 52,331
Recycling 452n762 359.061 93.701
Franchise Operators 4,437,666 e431a1.20 6,546
Indirect Costs 100,000 - 100,000
Cudjoe Key Transfer Station 1.730,444 11.615$7 0 54,646
u joe, Key Landfill 253®674 239,280 14,594
Cud3oe Key Post Closure 07.653 52„377 35,276
Long Key Transfer 5t.attion, 1,988,624 iM926,431 62.193
Long-Key Landfill 247,420 23.5,452 31,968
Long Key Post Closure 146,230 106,593 39„637
Key Largo Transfer Station 1,892.620 1o002.696 9.93
Key Largo Landfill 115.280 1152 0
Key Largo Post Closure 93,266 09,301 3,965
Pollution Control 4121,338 395,301 25.437
Recycling
Renewal and R lace t 9 4 818,2�062 ®330
Total O er ting Expenditures
Non-Operating Expenditures
Operating Grants:
Recycling Grant 32,229 32,229
DER Recycling Grant 7 „476 76047
Litter & N�arine Debris Prevention Brant 20,294 20,294
Debt Service
Principal Retirement 452.941 452 1
Interest Expenses an fl dal Charges 694,259 6 9k . 81 14,7;7
,1s629o4g7 389, ,i 2
capital Outlay,
Loss on Disposition,of Assets ._ .
Total Non-Operating,,
on p efatipg,' pen i.tures u ,
'Operating Transfers and. Reserves: 3
Transfer o Other' Funds - �
Reserve for Contingencies 1.73.�0�5Z 7 05
14,24,
"Total Operating-Transfers and Reserves 7 , _1,42.ixi
Dotal Expenditures LiMaLM L ULM