Fiscal Year 2001 & 2002 MORROE COUNT`, FLORIDA
MUNICIPAL SERVICE DISTRICT
FINANCIAL STATEMENTS
S
SEPTEMBER 30, 2002 AND 200
RVA OREEN P.A. , INC.
CERTIFIED PUBLIC ACCOUNTANTS
CONTENTS
P
Independent Auditors' Report 1-2
Financial Statements:
Statements of Net Assets 3-4
Statements of Revenues® Expenses and
Changes in Net Assets
Statements of Cash Flows -
tes to Financial Statements -1
Other Reports:
Report on Compliance and on Internal Control over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance with Government Audi t rng Standards20-21
Report on Bond Compliance
Supplemental Schedule:
Schedule Expenditures - Budget and Actual 23
t
MARVA GREEN, P.A.
Certified Public Accountant
Members insfitute and Florida Institute
of Certified Public Accountants
RO. Box 1529
3132 Northside Dr.,Suite 101 Tel. (305)294-2581
Key West, FL 33041-1529 Fax(305)294-4778
INDEPENDENT AUDITORS' REPORT
Clerk Ex Of ficio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of the Monroe County, Florida
Municipal Service District UMSD") as of September 30, 2002 and 2001,, and for
the years then ended. as listed in the accompanying table of contents, These
financial statements are the responsibility of the County's management. Our
responsibility is to express an opinion on these financialstatements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Governnient Auditing Standards, issued by the Comptrol,ler General
of the United States. Those standards require that we In and perform the
audit to 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 principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.,
As discussed in Note 1, the financial statements present only the Monroe
County Municipal Service District Fund 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 with U.S. generally accepted
accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Monroe County-, Florida
Municipal Service District as of September 30, 2002 and 2001. and the results
of its operations and Its cash flows for the years then ended in conformity
with generally accepted accounting principle ®
As described in Note 10, the County ' adopted the provisions of Governmental
Accounting Standards Board Statement No, 34, Basic Financial Statements
Management's Discussion and Analysis For State and Local Governments, as of
October 1, 2001.
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, is 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 fairly stated in all material respects when
considered in relation to the financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued our
report dated March 24. 2003 on our consideration of the MSD's internal control
over financial reporting and on our tests of compliance with certain
provisions of laws, regulations, contracts and grants. That report is an
integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering
the results of our audit®
Marva Green P.A. , Inc.
Certified Public Accountants
March 246 2003
-2-
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
STATEMENTS OF NET ASSETS
SEPTEMBER 30, 2002 AND 2001
ASSETS
2002� 20:1
Current Assets:
Cash and Cash Equivalents $ 9,643,011 8,558,164
Accounts Receivable w Net of Allowances for
Uncollectible Accounts of $602,005 and
$655,650 for 202 and 201 respectively 369,084 400,762
Due From Other Funds 5,213 1,406,767
Due From Other Governments 4257'7 491,224
Total Current Assets 10,4431,086 10.856,917
Restricted Assets:
Cash and Cash Equivalents 395,979 3,860,266
Noncurrent Assets®
Deferred Charges Net 150,537 7, '
Land and Other Nondepreciable Assets 3,629,6210 4,746,370
Capital Assets, Accumulated
Depreciation 540,452 987.6W
Total Noncurrent Assets 4,320,609 5,901,449
Total Assets, 18.689.67 1, 18,632
(Continued)
The accompanying notes are an integral part
of these financial statements.
MONROE COUNT", FLORIDA
MUNICIPAL SERVICE DISTRICT
STATEMENTS OF NET ASSETS (Continued)
SEPTEMBER 30, 2002 AND 2001
LIABILITIES
Current Liabilities:
Accounts Payable 943,371 1,254,007
Atcrued Compensated Absences Payable 16,034 3,618
Accrued Wages and Benefits Playable 35.099 26,616
Due to Other Funds 363,753 308,089
Due to Customers 216,589 216,589
Due to Other Governments 87,132 344
Capital Leases Payable 50,000 197.537
Deposits 1 , ,16
Other Current Liabilities 26. 6
Total Current Liabilities 1,86,5 2,11.4
Current Liabilities Payable from
Restricted Assets:
Current Portion of Long-Term Debt 480,000455.000
Accrued Interest 206,242 220,802
Landfill Closure and Post Closure Costs 358,039 352,478
Due to Other Funds
Total Current Liabilities Payable
from Restricted Assets 1,056„0!75 1,036,920
Noncurrent Liabilities:
Revenue Bonds, NetCurrent Portion 5,660,000 6,140,000
Accrued Compensated Absences 95.671 92,052
Capital Leases Payable, Net of Current Portion 1,017,270 1 „733
Total Noncurrent Liabilities T7L
,!ill 7,15 ,785
Total Liabilities 9 645,541 10,303 ,68
NET ASKS
Invested in Capital. Assets, Net of Related Debt (3,243,440) (2,199,043)
Restricted for Debt Service 2,00 ,766 1,959,513
Unrestricted 10,282„807 10,554, 2
Total Net Assets „v904re 3Il ®.
The accoiapanying notes are an integral part
of these financial statements
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
STATEMENTS OF REVENUES EXPENSES AND
.�. ..
CHANGES IN NET ASSETS
FOR THE YEARS ENDED SEPTEMIBER 30„ 2002 AND 2001
2002 � 00i1
Operating Revenues
Charges for Services 12J23,036 $ M604.642
Franchise Fees 183,853 156,284
isc6lla eons 358,241 30 A18.
Total Operating Revenues 13,265,130„ 1, ,791,342.
Operating Expenses:
Professional Services 10,632,360 10,095,063
Personal Services 696,133 571,476
Depreciation and Amortization 427,685 625,130
Operations 580, 9 424,003
Landfill Closure and Post Closure 806,046 825,161
Repairs and Maintenance 23 J30 1,3O.88
Total Operating Expenses 13,166,58 _ 12.671,716a
Operating Income 98,547 119,627
Non-Operating Revenues (Expenses):
Operating Grants 279,459 852,356
Interest Income 294,701 639,033
Other Non-operating Income 50,00
Grants and Aid (1, ,7 ) -
Interest Expense and Fiscal Charges ( , 2 ) (522,390)
(Loss) on Disposition of Assets C8O,288) (74 3 )
Total Non-Operating Revenues (Expenses) (993,003) _ 894,565
Income (Loss) Before Operating Transfers' (894,456) L01 .1 ! „
Operating Transfers:
Transfers from r Funds 1,725 1,070,466
Transfers to Other Funds (378,088) (1„38k,946)
Net Operating Transfers (376,3 3.), (315W479)
Change in Net Assets (1,270,819) 698,713
Net Assets, Beginning of Year 10,314,952 9 616,23
Net Assets,, End of Year
The accompanying notes are an integral part
of these financial statements,
NROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPT DER 30, 2002 AND 2001
2002 2001
Cash Flows from Operating Activities
Cash Received for Services $ 14,467,794 $ 10,978a937
Cash Received from Other Funds for Goods and Services 78,722 m
Cash Payments to Suppliers for Goods and Services (12,023,747) (11,704.217)
Cash Payments to Employees for Services (530,227) (572,935)
Cash Payments to Other Funds (319,855) (32 ,155)
Other Operating Revenue A ,24;1 30A
Net Cash Provided (Used) by Operating
Ac"tivities 2,030,928 (11591, 54)
Cash Flows from Noncapital Financing
Activities:
Operating Grants Received 134,862 3.058,029
Operating Transfers from Other Funds m 1,069,216
Operating Transfers to Other Funds _ (370. 1 ) (1,305,945)
Net Cash Provided (Used) by Noncapital
Financing Activities (243,2 :6) 2„741,300
Cash Flows from Capital and.Related Financing
Activities:
Acquisition and Construction of Capital Assets (42,153) (3,510)
Principal Paid on Long Term Debt (455,000) ( 11, 6 )
Interest Paid on Long Term e (434,685) ( 5,77 )
Proceeds r the Sale of Fixed Assets M 1
Net Cash (Used) by Capital and
Related Financing Activities (L3 1,043) (1,148.348)
Cash Flows from Investing Activities:
Interest on Investments 4,701 639,033
Net Increase in Cash and
Cash Equivalents 1,1 , 0 640,031
Cash and Cash Equivalents. Beginning of Year 12,41 ,4 77' , 9a
Cash and Cash Equivalents, End of Year
(Continued)
The accompanying notes are an integral part
of these financial statements.
-6-
NROE COUNTY, FLORIDA
MUNICIPAL. SERVICE DISTRICT
STATEMENTS OF CASE! FL (Continued)
FOR. THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
Reconciliation Of d e ,D Inoie "Io New Cash
Provided (Used) B 0 estir Activities
Operating Income 98.,547 119„627
Adjustments to Reconcile Operating Income to Net Cash
(Used) by Operating Activities:
Depreciation and Amortization 427,685 625,130
Change in Assets and Liabilities:
Decrease/(Increase) in:
Accounts Receivable 31,678 62,260
Due From er Funds 1m4 1m,554 (1d374w513)
Due From r Governments 210,043 (480,920)
(Decrease)/Increase in:
Accounts Payable (31 ® ) (304,729)
Accrued Wages and Benefits Payable 8,483 (5,078)
Due to,Other Funds 58,818 (252,552)
Due to Other Governments 86.788 (162)
Deposits (3a648) i1,1 4
Landfill Closure and Post Closure Costs 5,561 4®216
Accrued Compensated Absences 16,035 3R619
Other Current Liabilities 20
Total Adjustments 1.,93m38 (1,711�5813
Net Cash Provided (Used) by Operating
Activities
Sup e, ntal Schedule Of Non-Ca,,sh Financier_
Ca ital Arid Inv'estin 4cti ities ._
Contributed Fixed Assetsa7 :wwwrn
(Loss) on Disposition of Fixed Assets
The accompanying notes are an integral part
of these financial statements.
-7-
MONROE COUNTY, -FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTE BER 30, 2002 AND 2001
NOTE 1 SUMMARY SIGNIFICANT ACCOUNTING POLICIES
wportng Entity The Monroe County® Florida Municipal Service District
(""MSV) is an enterprise fund of Monroe County "County') authorized
own and operate solid waste collection facilities the County. MSD i
considered a part of the County's primary government as its management is
accountable Board of County Commissioners, and it is neither legally
separate nor fiscally independent.
MSD applies Financial Accounting Standards Boards FASB) pronouncements and
Accounting Principles Board (APB) opinions, issued on or before November 30,
1989, unless those pronouncements conflict with or contradict GASB
pronouncements, in which case, GASB prevails.
Measurement Focus and Basis of Accounting -MSD financial statements are
reported using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recognized in the period in which they are earned
and expenses are recogni in the period incurred® Operating revenues shown
generally result from, producing or providing garbage services Operating
expenses for these operations include all costs related to providing the
service. These costs include salaries, supplies, travel , contract services,
depreciation, administrative expenses or other expenses directly related to
costs of services. All other revenue and expenses not meeting these
definitions are reported as nonoperating revenues and expenses®
Budgets and Budgetary nntn - The followingare the statutory procedures
followed by the Board of County Commissioners in establishing budget for
Withinifteen days after certification of the ad valorem tax roll
y the Property Appraiser, the County Budget Officer submits
the Board a proposed budget for the fiscal year commencing the
following October The budget includes proposed expenditures
and the means of financing them®
Board resolution tentative budget is submitted to the
public. Public hearings are heldobtain taxpayer comments®
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO. FINANCIAO. STATEMENTS
SEPTEMBER, 30, 2002 AND 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3) Fifteen days after adoption of the tentative budget® a final
budget is submitted for review and adoption at a final public
hearing. 1
4) Prior to, or on September 30, MSD'-s budget is legally enacted
through passage of a resolution. Accordingly._ MSD has an adopted
budget as required by Florida Statute 129.03.
5) 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 cost
centers or alterations of total revenues and expenditures in a
fund) are approved by the Board. , Supplemental appropriations were
necessary and the budgetary data presented herein was amended by
the Board during the year in a legally permissible manner.
6) 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 controt'device during the year.
8) Budgets are adopted on ,basis consistent with generally accepted
accounting principles (GAAP), except for expenditures relative to
debt, capital outlay, and landfill closure and post closure costs.
9) All appropriations lapse at year end.
Capital Assets w Capital Assets include property, plant, equipment, and
infrastructure assets (e.g. roads, .,bridges, curbs and gutters® streets and
sidewalks, drainage systems and lighting systems)® Additions to capital assets
-9-
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
are recorded at cost at the time of purchase® Gifts or contributions are
recorded at fair market value at the time received.
In accordance with GASB Statement No. 34, an extended period of deferral until
September 30, 2006 fiscal year end is available before the County is required
to record and depreciate infrastructure assets acquired prior to October 1, -
® Therefore, the County, has elected to defer reporting of certain
infrastructure assets acquired prior to October 1. 2001. Infrastructure assets
acquired during the 2001-02 fiscal year are reported on the Statement of Net
Assetsi This asset category is likely to be a significant asset of the County.
The County maintains a $750 threshold for additions to equipment® Buildings
are capitalized when the value is $15,000 or greater® Public domain and system
infrastructure assets represent 'major expenditures for such items as roads,
water and sewer treatment plants and lines, landfill improvements, parks and
drainage systems. Additions and improvements for roads, water® sewer, landfill
and drainage infrastructure are capitalized when the cost amounts to $250,000
while park additions and improvements are capitalized at $25,000.
Capital assets activity for the year ended September 30, 2002 is as follows:
2001 Additions DaletionE_ 200,2
Capital assets not ,
depreciated:
Land S 4,746w370 $ ..1,116,750 $ 3,629a620
Capital assets depreciated:
Land 214,105 214,105
Buildings 1�221.663 1,221A3
Systems infrastructure 261,599 261-599
Equipment 1.3.490&20 847 422 11 687,2§
Total assets depreciated _15,_188.387 _____43.884m .....1,847,422 13,344m649
MONROE COUNTY® FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
S PTEMBER 30, 2002 AND 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Less accumulated
depreciation:
Land 214J05 - 214p105
Buildings 926,792 112,951 1.039,7 3
System infrastructure 170,656 5,793 176,449
Equipment 12,888n975 .m 21,058 ,u767„133 111413� 0
Total accumulated
depreciation 14,200,528 10.02 1 757 11 3 12,8444197
Total depreciable capital
assets, net 9 7 C35 n7 0�., 9 54045
'Total capital assets net _a '
Depreciation has been provided using the straight-line method. The estimated
useful lives of the various classes of depreciable fixed assets are as
follows:
Life - Years
Buildings 1 -
Equipment - 0
System Infrastructure 10-50
Public domain infrastructure 20- 0
Deferred Char es - The unamortized issuance costs on Revenue Rons Payable r
amortizedusingstraight-linemethodo maturity the bonds.,
Com ensated Absences, County 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 .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 SR 16,
1
MONE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
NOTE 1 - SUMMARY SIGNIFICANT ACCOUNTING POLICIES (Continued)
Cash and Cash Eivalents - For purposes of the statement of cash flows, MS
considers all highly liquid investments (including restricted assets) with
maturity three months or less when purchased to be cash equivalents.
NOTE 2 - CASH AND CASH EQUIVALENTS
Cash, Cash Equivalents Investments consist of the followingt September
, 2002 and 2001 respectful)
201
Unrestricted Restricted Unrestricted Rest °icted
Cash - Demand Deposits 173,574 $ 2,21i,009 $ 125,193 $ 2,180.315
Investmentst
Pooled Cash Program 9 69,437 �. 1,714,970 m 8,432 X1 1.,679.951
Total Cash and Investments
Investments - Florida Statute 218.415 authorizes Counties with no written
investment policies to invest surplus funds in thefollowing:
) The Local Government Surplus Funds Trust Fund , r any
intergovernmental investment pool authorized pursuant to the
Florida Interloca7 Cooperation Act as provided in s. 6 ,
Securities Exchange Commission registered money market funds
with the highest credit quality rating from a nationally
recognized rating agency,
c?- Interest-bearing time deposits or. vings accounts in ' qualified
public depositories as defined in s. 280.02.
Direct obligations of the United States Treasury.
Investments are stated at fair, value in accordance with GASB 31.
-1
MONROE COUNTY,' FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
NOTE 2 CASH AND CASH EQUIVALENTS (Continued)
The County invests funds throughout the year with the Local Government Surplus-
Funds Trust Fund (SBA) , an investment pool a'dministered by the State Board of
Administration, under the regulatory oversight of the State of FTorida.
Throughout the year and as of September 30, 2002, the SBA contained certain
floating and adjustable rate securities is were indexed based on the prime
rate and/or one and three month LIBOR rates. These investments represented
0.72% of the SBA's portfolio at September 30, 2002. The SBA met the criteria
to be "2A-7 Like" as defined in GASB 31 at September 30, 2002. There-fore® the
investment was valued at amortized cost and the fair value at September 30,
2002 was the account balance at that time.
Deposils - Demand and time deposits are fully insured by Federal Depository
Insurance and the multiple financial institution collateral pool required by
Sections 280.07 and 280.08, Florida Statutes.
NOTE 3 - LONG-TERM DEBT
2002 20.01
Long-term debt consists of the following:
Refunding Improvement Bonds, secured by
revenues of MSD which are obligations solely of
MSD, payable in installments of various amounts
from October 1, 2003 through October 1, 2011,
Bearing interest at 6.60% to 6.75% $ 6,140,000 $ 6,595,000
Capital Leases Payable 1,067,270 1° 7®
Accrued Compensated Absences 11,11,705 ........... g5.DLO
Total Long-term Debt 7,318,975 7,807,940
Less Current Portion §j6,,034 6,155
Net Long-term Debt 5.772 9
.13-
MO OE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,_ 2002 AND 200I
NOTE 3m LONG-TERM DEBT (Continued)
Debt Service Funding Requirements - The total annual debt service requirements
for all debts outstanding at September 30, 2002 are as follows:
Fiscal Year Principal Interest Total
2003 $ 510,000 $ 381,285 $ 891,285
2004 540,000 347,625 887,625
2005 580,000 311,175 891,175
2006 615,000 272,025 887,025
2007 650,000 230,512 880,512
2008-2011 2,765.000 464,400
Total .$-5.660_,_Q0 0 Q07 02? L 7A 667 02?
The 1991 Municipal Service District Refunding Improvement bonds are payable
solely from and collateralized by a prior lien upon and pledge of (i) charges
for service levied annually against residential property within the Monroe
County Municipal Service District (the "'District") , Monroe County, Florida for
the availability and furnishing of certain solid waste disposal services, (ii)
payments received from franchise solid waste collectors with respect to
commercial property within the District, (iii) all other non ad valorem funds
receive'd by the District with respect to furnishing services of the solid
waste facilities to the residents of' the District excluding any state or
federal funds received from time to time by the District and (iy) certain
investment income received by the District. Under the terms of the enterprise
revenue bonds issue, the Municipal Service District is required, among other
things, to establish rates and to collect fees and charges is will, be
sufficient at all times to pay 110% of the Maximum Debt Service Requirement on
the Series 1991 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 of the Facilities,. The Municipal
Service District was in compliance with those covenants for the year ended
September 30, 2002. The Bonds and the interest payable thereon will not
constitute a general obligation of the District, Monroe County, or the State
.14-
MONROE CQ N ` , FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002AND 2001
NOTE 3 - LONG-TERM DEBT (Continued)
of Florida, or a pledge of the faithcredit of the District, Monroe
County, the State of Florida or any political subdivision thereof. Neither
the Bonds, nor any interest or premium thereon, shall be payable from the ad
valorem revenues of the District, Monroe County, or the State of Flo
T - PRIOR YEAR DEFEASANCE OF DEBT
n December 6, 1985 the County defeased the $8,00 ,000 Municipal Service.
District Improvement Bonds Series, 1980 using proceeds from the $9, 1 ,174
Municipal Service District Refunding Improvement Bonds, Series 1985. On April
m 1991 the County defeased the Municipal Service District Refunding
Improvement Bonds, Series 1985 by using proceeds from the Municipal Service
District Refunding Improvement' Bonds, Series 1991.
The lowing schedule reflects the outstanding principal on refunded
Municipal Service District Bonds, by issue as of September 30, 2002®
$8,000,000 Municipal Service District Improvement
Bonds,, Series 1980 $ 5,370,000
$9,211,774 Municipal Service District Refunding
Improvement Bonds, Series 1985 ` 5,400,503
0a770 503
NOTE 5 - LEASE OBLIGATIONS
Capitalized lease obligations are stated at the originali market value of
leased assets capitalized, less payments since the inception of the lease
discounted implicit rate of interest in the lease-. future minimum
debt reductions under capitalized leases consist of the followingSeptember
2002
-15-
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES 'TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
NOTE - LEASE OBLIGATIONS (Continued)
Fiscal year ending September
003 $ 50,000 ,
2004 50,00
2005 50,000
2 00650,000
2007 50,000
2 -2612 250,000
0 3- 017 250,000
2018- 021 317,270
'total minimum payments 1,067,270
Amounts representing interest
Present value t minimum lease
payments _ 67 m 270
Leased property which has been capitalized of September 30, 2002 and 2001 ,
is as follows:
2002 2001
Equipment $ 2,335,830 2,335,830
Less Accumulated Depreciation 2,258,41,7 2`,180,96
w
L.
77 411 154..
Rental expense under cancelable operating leases was $3,262 and $3,204 for
202 and 2001 respectively.
NOTE 6 - RISC MANAGEMENT
MSD is exposed to various risks f loss related ort; theft of,. damage t
and destruction of assets, errors and omissions, injuries to employees, and
natural disasters. During the fiscal years ended 1976, 19841988, the
MONROE .COUNTY, -FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENT'S
SEPTEMBER 30, 2002 AND 2001
NOTE 6 RISK MANAGEMENT (Continued)
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 Fund provides $500,000 coverage per claim. The Group Insurance
Fund provides all coverage for each medical claim. The Risk Management Fund
provides $100,000 for each general liability. public official liability and
auto liability claim and $100,000 for most property damage claims. Windstorm,
Flood 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 have not exceeded this commercial coverage in any of- the past three
years®
MSD participates in the programs and makes payments to the Worker's
Compensation, Group Insurance and is Management Funds based on estimates, of
the amounts needed to pay prior and current year claims.
NOTE 7 ® RETIREMENT PLAN
Substantially all full -time MSD employees are participants in the Florida
Retirement System, "The System", a multiple-employer,, cost-sharing public,
retirement system. The System, which is controlled by the State Legislature
and administered by the State of Florida, Department of Administration,
Division of Retirement, covers approximately 612,400 full -time employees of
various governmental units within the State of Florida.
The System provides for ves ting of benefits after 6 years of creditable
service. Normal retirement benefits are available to employees who retire at
or after age 62 with 10 or more years of service. Early retirement is
available after 10 years of service with a 5% reduction of benefits for each
year prior to the normal retirement age® Retirement benefits are based upon
age, average compensation and years-of-service credit where average
compensation is computed as the average of an individual 's five highest years
of earnings. Employees are not required to contribute to this retirement
system.,
-17-
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
NOTE .7 RETIREMENT PLAN (Continued)
The MSD has no responsibility to the System other than to make the periodic
payments required by state statutes. The Florida Division of Retirement
issues a publicly available financial report that includes financial
statements and required supplementary information for the System. The report
may be obtained by writing to Florida Division of Retirement, 2639 Monroe
Street, Building C, Tallahassee, FL 32399-1560.
Participating employer contributions are based upon state-wide rates
established by the State of Florida. These rates are applied to employee
salaries as follows: .regul ar employees', 5.76%. special risk employees,
16.01%. and elected officials, 11.86%. The MSD's contributions made during
the years ended September 30, 2002, 2001 and 2000 were $32,000, $36,900 and
$56,400, respectively, equal to actuarially determined contribution
requirements for each year.
NOTE 8 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 landfills. 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 has no remaining landfill life. Closure of the landfills was substantially
completed during the year ended September 30, 1994. The County ha's 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.
The Florida Department of Environmental Protection approved a post closure
operating plan which permits the County to funds osure and post closure costs
as an operating expense using annual appropriations. The landfill is required
by state and federal laws and regulations to make annual contributions to a
cash escrow account to meet financial assurance requirements. The landfill is
in compliance with these requirements, at September 30, 2002 with cash and
investments of $1,714,970 held for these purposes® In the event closure
escrows and interest earnings prove inadequate due to inflation, changes in
_1 .
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
o- NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2061
NOTE 8 RECOGNITION OF CLOSURE AND POST CLOSURE COST (Continued)
technology or additional post closure care requirements, these costs may need
to be covered charges to service users;,
NOTE 9 - COMMITMENTS AND CONTINGENCIES
Grant Programs m MSD participates in grant programs® These programs are
subject to financial compliance i y the grantors or their
representatives® As of March 24, 2003 there were no material questioned or
disallowed costs as a result of grant audits in process or completed;
NOTE 10 m CHANGES IN ACCOUNTING PRINCIPLES
Effective October 1, 2001 the County implemented the provisions of GASB 3 F
"Basic inancia Statements and Management's Discussion and Analysis r State
and ,Local Governments". This statement significantly changes the financial
reporting model and reporting requirements for the government's
infrastructure.
NOT '1 -® SUBSEQUENT EVENTS
The ,1991 Municipal Service District Refunding Improvement Bonds in the amount
of $5,660,000 were refunded by the SolidWaste Disposal System Refunding
Revenue Note, Series 2002 'in the amount of $4,143,945on December 19, 2002.
-19-
MARVA GREEN, P.A.
Certified Public Accountant
Membam American Institute and Florida institute
of Certified Public Accountants
P.O.Box 1529
3132 Northside,Dr.,Suite '101 Tel.(305)294-2581
Key West, FIL 33041-1529 Fax(305)294-4778
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON
AN AUDIT OF—FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
Clerk Ex Officio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of Monroe County, Florida Municipal
Service District UMSD") as of and for the year ended September 30, 2002;' and
have issued our report thereon dated March 24, 2003. We conducted our audit
in accordance with U.S. generally accepted auditing standards and , the
standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Compliance
As part obtaining reasonable assurance about whether MSD's financial.
statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations... contracts and grants,
noncompliance with is could have a direct and material effect on the
,determination of financial statement amounts. However, providing an- opinion
on compliance with those provisions was not an objective of our audit and
accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards.
Internal Control Ove—r1inancial Reporting
In planning and performing our audit® we considered MSD's internal control
over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to
provide assurance on the internal control over financial reporting. Our
,consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a
condition in which the design or operati'on of one or more of the internal ,
control components does not reduce to a relatively' low level the risk that
.20-
misstatements in amounts that would be material in relation to the financial
statements being auditedoccur and not be detected within a -timely period
y employees in the normal course of performingit assigned functions: We
noted no matters involving the internal control over financial reporting n
its operation that we considered to,be material weaknesses.,
This report is- intended solely for the information and use of the Board
County Commissioners, management® and federal awarding agencies and pass
throughentities is o intended n soul not' used by anyone
other than these specified parties®
Marva Green Inca
Certified Public Accountants
March 24, 2003
-21-
MARVA GREEN, P.A.
Certified Public Accountant
Members Amerfean Ins0tute and Flodde tnsdtute
of Cerfified PubNc A=untsnts
P.O. Sox 1629
3132 Northside Dr.„Suite 101 Tel. ( )29 -2581
y West, FL 33 1-1529 Fax( )294-4778
INDEPENDENT AUDITORS" REPORT ON BOND COMPLIANCE
Clerk Ex Offi ci o
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of Monroe County® Florida Municipal
Service District as of September 30, 2002 and 2001, and for the years then
ended, These financial statements are the responsibility of the County'
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing
standards and 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 i sstatemment. 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 principles
and significant imates made by management, as well as evaluating
overall financial statement presentation. We believe that our audit provides
a reasonable basis for ouropinion. '
In connection with our audit, nothing came to our attention that caused us to
live that Monroe County, Florida Municipal Service District was not i
compliance i f the various terms. covenants provisions or conditions
which were adopted by the Board of County Commissioners relative"
following issues:
Municipal Service District Refunding Improvement Bonds, Series 1991
However, it shoul noted that our audit was not directed primarily toward
obtaining knowledge such noncompliance.
Marva Green P.A. , Inc.
Certified Public Accountants
March 24, 2003
-22,
M014ROE COUUTY. FLORIDA
MUNICIPAL SERVICE DISTRICT,
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30. 2002
Variance
Original Final Favorable
qqgt Actual (Unfavorable)
Operating Expenditures:,
Administration $ 341,112 $ 338,612 $ 316,660 $ 21,952
Franchise Operations 3,848,296 3,950,296 3.950,296
Cudjoe Key Transfer Station 2,420,757 2,432307 2,420,799 11,908
Cudjoe Key Landfill 284,623 284.623 219„849 64.774
'Cudioe Key Post Closure 41,191 39,691 23.767 15,924
CudJoe Key Lined Post Closure 1,120,453 1.120.453 195,156 925.297
Long Key Transfer Station 2,191,318 2,191,318 2�184.872 6,446
Long Key Landfill 186.149 186.149 171.862 14.287
Long Key Post Closure 44,768 44.768 42,381 2,387
Key Largo Transfer Station 2.206,402 2,206,402 2,197,647 8.755
Key Largo Landfill 125,538 230,538 189,314 41,224
Key Largo Post Closure 37,425 35,925 30,123 5,802
Pollution Control 491,696 486,168 362,282 123,886
Recycling _100,000. 300,q00' ___.I 4,431 145,569
Total Operating Expenditures 13,639,728 13.847,650 12,459,439 1,388,211
Non-Operating Expenditures:
Operating Grants:
Recycling Grant m 9,586 89,586
DEP Recycling Grant 127,,034 127,034
Litter and Marine Debris
Removal 12,839 12,839
Small Counties Recycling �mw50,0001 50,000
Total Operating Grants ............... .__.. ?79.45� 279,459
Capital Outlay 1,877,933 1,888,961., 424L9 802
Debt Service-,
Principal Retirement 455,000 455,000 455.000
Interest and Fiscal Charges ____446 72 45,772- 420,125
Total Debt Service 900.772 . 90q,_772 875,125 25,647
..................
Total Non-Operating Expenses ..2 705 3,069,192 1,196,743 .872., 4
Operating Transfers and Reserves:
Reserve for Contingencies 850,782 631,832 631,832
Transfers to Other Funds 1,417,500 1,417,500 1,272,527 1 4,973
...............
Total Transfers and Reserves 2.268,28 049,332 1,272,527 7 LD!�
Total Expenditures _$j 66_ .......14.. 2%
A.A86 5 _JL LQ,2� . .........9
.23-