Fiscal Year 2001 NR E COUNTY, FLORIDA
PROPERTY APPRAISER
.FINANCIAL STATEMENTS
EPTEN . . 0 1
MARVA GREEN P.A., INC.
CERTIFIED PUBLIC ACCOUNTANTS
CONTENTS
Rage
Independent Auditors* Report 1-2
Financi l, Stte nts:
Combined n Sheet -- Fund `hypes and Account Groups
Statement of Revenues, Expenditures, and Changes in Fund
Balance - General Fund 4
Statement of Revenues. Expenditures and Changes in Fund
Balance - Budget and Actual (Budgetary Basis) m General
Fund 5
Notes to Financial Statements 6-10
Other Reports-
Independent Auditors® Report on Compliance and on Internal
Control over Financial Reporting 11-12
Independent Auditors' Management letter 13-14
MARVA GREEN, P.A.
MARIO RODRIGUEZ, P.A.
Certified Public Accountants
Members American Institute and Florida Institute
of Certified Public Accountants
P.0.Box 1529
3132 Northside Dr., Suite 101 Tel.(305)294-2581
Key West, FL 33041-1529 Fax(305)294-4778
INDEPENDENT AUDITORS REPORT
Mr. Ervin H. Higgs
Property Appraiser
Monroe County, Florida
We have audited the financial statements of the Property Appraiser of Monroe
County, Florida ("Property Appraiser") as of September 30, 2001 and for the
year then ended., as listed in the accompanying table of contents. These
financial statements are the responsibility of the Property, Appraiser. 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. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit 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 opini-on.
As discussed in 'Note 1, the financial statements present only the Property
Appraiser and are not intended to present fairly the financial position of
Monroe County, Florida and the results of operations and cash flows of its
proprietary fund types 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 Property Appraiser as of
September 30, 2001, and the results of its operations for the year then ended
in conformity with U.S. generally accepted accounting principles.
"J"
In accordance with Government Auditing Standards, we have also issued our
report dated April9. 2002 on our consideration of the Property Appraiser's
internal control over financial reporting and our tests of its compliance
with certain provisions of laws. regulations, contracts and 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 our results of our audit.
area Green ® W Inc.
Certified Public Accountants
April 9. 2002
2 -
NONROE COUNTY,_ELORI
PROPERTY APPRAISER
COMBINED BALANCE SHEET ALL FQNL Q...TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2001
Governmental Account
Gf s Fund1w... ......� moup.-.W.-
Total
Long - Term (Memoran-
moral.._ ......... ebt du m only)
Assets:
Cash and Investments $ 404,054 $ $ 404,054
Prepaid Expenses 13,411 13411
Amount to be Provided for A .lk� 25,1K
Retirement of Long-Term Debt
Total Assets
Liabilities:
Accounts Payable $ 45,877 $ $ 45,877
Accrued Wages
And Benefits Payable 61,815 61.815
Due to Other Governments 55,908 55.908
Long-Term Debt 125,,186 125j, 86
Total Liabilities 163 600 125,186 288 786
Fund Balance 253AM5 253 865
Total Liabilities and
Fund Balance
The accompanying notes are an integral
Part of these financial statement
3
MONROE COUNTY. FLORIDA
R PERrY APPRAISER
STATEMENT OF REVENUES D EXPENDITURES, D CHANGESN
FUNDB_BALANCE w BUDGET AND ACTUAL (BUDGETARY _BASIS) GENERAL FUND
FOR THE YEAR ENDED SEPTE B ER. 21YI
Revenues:
Board of County Commissioners
Other Taxing Districts5,
Interest Income 16,571
Miscellaneous 30,,83,
Total Revenues w 3
Expendituresm
Current
General Government:
Personal Services
Operating Expenses
Capital Outlay 97.5
Total Expenditures 2,410,191,
Expenditures in Excess of Revenues � 5 )
Fund Balance, Beginningof Year 79
Fund Balance, n Year 53&65
The accompanying notes are an integral
part of these financial statements.
x
PROPERTY LAeERk1SLR
a181E�HQUI OF REKENffS AND EXPEILD11URES, AND CHMGES IN
FUND BAtANCE - BUDGET AND AST L
FUND&RY BASIS)
FOR THE YEAR&NPED SEPIEMBER-30, 001
Actual Variance
(Budgetary Favorable
nfavoriLb e)
Revenues:
Board of County Commissioners $ 2.190.219 $ 1.810.394 (379.825)
Other Taxing Districts ®3 405.136 (77,208)
Interest Income 16,571 16,571
Miscellaneous
Total Revenues 2...k7L5Q J4___Z.2b1131 09,63Z)
Expenditures:
Current:
Cleneral Government:
Personal Services 2.005,023 1,762.991 242.032
Operating Expenses 482.540 516®3 (33,782)
Capital Outlay
Total Expenditures 2..54 6 2,3M,2 03,17
Excess of Revenues Over/
(Under) Expenditures 125.000 (101.357) (226.357)
Other. Financing (Uses):
Reserve for Contingencies 00 .................
Excess of Revenues (Under)
Expenditures and Other Uses (101.357) (101,357)
Adjustments:
To Adjust Expenditures for
Accruals (45,903) (45.903)
To Adjust Revenues for Accruals
Excess of Expenditures Over Revenues.
GAAP Basis of Accounting (125,,959) (125,959)
Fund Balance,, Beginning of Year 4 24 ...........
Fund Balance,, End of Year 79. 4 R65L--UZL=I )
The accompanying notes are an -integral
part of these financial statements,
5
HONROE COUNTY FLORIDA
PROPERTY APPRAISER
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER-10,.,-.200 1
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting principles and
policies used in the preparation of these financial statements.
ReDorting Entity - The Property Appraiser of Monroe County, Florida ('Property
Appraisers) is a separate Constitutional Officer as provided by the laws of
the State of Florida. For financial reporting purposes, it is deemed to be a
part of the County's primary government, and therefore is included as such in
the Monroe County Comprehensive Annual Financial Report.
Basis of Presentation - These financial statements have been prepared in
conformity with the accounting principles and reporting guidelines established
by the Governmental Accounting Standards Board. The Property Appraiser
utilizes the following fund types and account groups:
Governmental Fund Type:
The General Fund - This fund is used to account for all revenue and
expenditures applicable to the general operations of the Property Appraiser
that are not required either legally or by generally accepted accounting
'principles to be accounted for in another fund.
Account Group:
General Lop Ajerm Debt_AgAcqnt_grWp - This account group is established to
account for the long-term debt of the Property, Appraiser financed from
governmental funds.
Basis of Accountin 2g - The modified accrual basis of accounting is followed by
the General Fund. Under the modified accrual bas'is of accounting. revenues
are recorded when received or when susceptible to accrual ., that is® measurable
and available to finance the Property Appraiser's operations. Expenditures
are recorded when the liability is incurred except for accumulated sick .pay
and vacation pay which is not recorded as an expenditure. Budgets are
prepared on the cash basis.
6
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 001
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgetary Requireggnt - Expenditures are controlled by appropriations 'in
accordance with the budget requirements set forth in the Florida Statutes.
The budgeted revenues and expenditures in the accompanying financial
statements reflect all approved amendments.
General Fixed Assets - The tangible personal property used by the Property
Appraiser in its operations is shown in the General Fixed Assets Account Group
of the Board of County Commissioners. In addition® the office space and
certain other expenditure items used in the Property Appraiser's operations
are provided at no cost by the Board of County Commissioners.
Undistributed Excess Fees - Florida Statutes provide that' assessed fee revenue
collected by the Property Appraiser in excess of expenditures shall be
retained and applied to next year's operating costs. The amount of
undistributed excess fees at the end of each year applicable to the Board of
County Commissioners of Monroe County is reported as fund balance.
Compensated qqgs - The Property Appraiser's policy grants employees annual
leave and sick leave in varying amounts. Upon termination of employment,
employees with six months or more of credited service can receive payment for
accumulated annual leave. In general , sick leave payments are granted upon
termination of employment to employees with five years or more of credited
service. The maximum payment is subject to percentages and maximum hour
limitations. Accumulated sick leave is accrued to the extent that such
amounts' would normally be liquidated with expendable available financial
resources. The remaining liability is reflected in the General Long-Term Debt
Account Group.
Total Columns on Sg@hined Stag m enls - The column entitled "Totals (Memorandum
Only)" of this report is included for informational purposes only. This total
column is not comparable to consolidated financial information, as the basic
reporting entity is by fund type. and the various funds use different bases of
accounting. In addition, Anterfund type eliminations have not been made in
arriving at the amounts included in this column.,
7
W)NROE COUNTY, FLORIDA
PWC PC kff y APPRAISER
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
...........
NOTE 2 CASH AND INVESTMENTS
Cash and investments at September 30, 2001 consist of the following:
Demand Deposits
Demand and time deposits are fully insured in accordance with Florida Statute
280, which established the multiple financial institution collateral pool.
Legally permissible investments are defined by Florida Statute 125.31 and
primarily consist of Federal and State securities.
NOTE 3 - 'LONG-TERM DEBT
The following is a summary of changes in long-term debt fart year ended
September 30, 2001.
Accrued
Compensated
Absences,
Long Term Debt. Beginning of Year $ 116,189
Debt Issued S.L997
Long Term Debt, End of Year 1-25 186
NOTE 4 LEASE OBLIGATIONS
The Property Appraiser pays rent under cancelable operating leases for office
equipment. Rental expense for the current year amounted to $24,649.
8
MONROE COUNTY, FLORIDA
'A_&E_RW APPRAISER
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
NOTE 5 RETIREMENT PLAN
Substantially all fulY.-time Property Appraiser 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 621.300 fUllr_time
employees of various governmental units within the State of Florida.
The System provides for vesting 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 5X reduction of benefits for each
year prior to 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 the System.
The Property Appraiser 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 avail'able 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: regular 'employees, 7.30%, special risk loyees®
and elected officials, 15,14%, The Property Appraiser's contributions made
during the years ended September 30, 2001. 2000 and 1999 were $137.600,
$151,400 and $216,000, respectively, equal to the actuarially determined
contribution requirements for each year.
NOTE 6 - DEFERRED COMPENSATION PLAN
The Property Appraiser offers its employees a deferred compensation plan
created in accordance with Internal Revenue Code Section 457. The plan,
9
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
NOTES TO FINANCIAL STATEMENTS.,
SEPTEMBER 30, 2001
NOTE 6 - DEFERRED COMPENSATION PLAN (Continued)
available to all Property Appraiser employees. permits them to defer a portion
oftheir salary until future years. Participation in the Plan is optional .
The deferred compensation is not available to employees until termination.
retirement, death, or unforeseeable emergencies.
Federal legislation converted the Section 457 deferred compensation assets
from the Property Appraiser assets to employee assets® As a result of these
changes, plan assets are no longer subject to the claims of the Property
Appraiser's general creditors.
NOTE 7 - LITIGATION
The Property Appraiser is a defendant in various lawsuits and is involved in
other disputes wherein substantial amounts are claimed. In the opinion of the
Property Appraiser. these its and claims should not result in judgments or
settlements which, in aggregate, would have a material effect on the Property
Appraiser's financial position.
NOTE 8 - RISK MANAGEMENT
The Property Appraiser is exposed to various risks of loss related to tort,
theft of. damage to. and destruction of assets; errors and omissions; injuries
to employees: and natural disasters. The Property Appraiser participates in
the coverage provided by the Board of County Commissioners of Monroe County
for Workers Compensation, Group Insurance, and Risk Management internal
service funds. Under these programs, the Worker's Compensation Fund provides
$250,000 coverage per claim for regular employees. The Group Insurance Fund
provides coverage up to $85,000 for each medical claim. Risk Management
provides $100,000 for each general 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. The Property Appraiser makes 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 claims.
MARVA GREEN, P.A.
MARIO RODRIGUEZ, P.A.
Certified Public Accountants
Members Arnerican Institute and Florida Institute
of Certified Public Accountants
R 0.Box 1529
3132 Northside Dr.,Suite 101 Tel.(305)294-2581
Key West, FIL 33041-1529 Fax(305)294-4778
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON I!ffERNAL Wffaql VER
................
FINANCIAL KPORTING
.................
Mr. Ervin H. Higgs
Property Appraiser
Monroe County, Florida
We have audited the financial statements of the Property Appraiser of Monroe
County. Florida ("Property Appraiser") as of and for the year ended September
30, 2001, and have issued our report thereon dated April 9. 2002. We conducted
our audit in accordance with U.S. generally accepted auditing standards and
the standards applicable to financial audits contained in Goverment Auditing
Standards,, issued by the Comptroller General of the United States.
qojmliance
As part of obtaining reasonable assurance about whether the Property
Appraiser'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 which 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 Goverment Auditing Standards.
Internal Control Over Finanslal 12s�
In planning and performing our audit, we considered the Property Appraiser'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 is the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that
misstatements 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 course of performing their assigned functions. We
noted no matters involving the internal control over financial reporting and
its operation that we consider to be material weak'nesses6
This report is intended solely for the information and use of the Property
Appraiser and members of the County and State governments and is not intended
to be and should not be used by anyone other than these specified parties.,
I 1 10"1 �011%
PA-
Marva Green P.A. , Inc.
Certified Public Accountants
A,pril 9, 2002
12 gi
MARVA GREEN, P.A.
MARIO ROD RIGUEZ, P.A.
Certified Public Accountants
Members American Institute and Florida Institute
of Certified Public Accountants
R 0. Box 1529
3132 Northside Dr.,Suite 101 Tel.(305)294-2581
Key West,FL 33041-1529 Fax(305)294-4778
INDEPENDENT AUDITORS' MANAGEMENT LETTER
Mr. Ervin A. Higgs
Property Appraiser
Monroe County, Florida
In planning and performing our audit of the financial statements of the
Property Appraiser of Monroe County® Florida 1"Property Appraiser'), for the
year ended September 30. 2001, we considered the Property Appraiser's internal
control in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements. Although our audit was
not designed to provide assurance on internal control and its operations. we
noted certain matters involving internal control and its operation® and are
submitting for your consideration related recommendations designed to help the
Property Appraiser make improvements and -achieve operational efficiencies.
Our comments reflect our desire to be of continuing assistance to the Property
Appraiser.
Bred
Prior Year's Management Letter, Not ,Implemented
as of".A%) ember_ O. 2001
There were no recommendations and suggested accounting procedures as outlined
in the Management Letter for the year ended September 30, 2000.
Current Year Findin
None.
OTHER REQUIRED DISCLOSURES
Marva Green was the Auditor in Charge for the audit of the Property Appraiser�
We attest that the Auditor in Charge met the educational requirements pursuant
to Chapter 11.45, Florida Statutes.
The Property Appraiser was not in a state financial emergency as described
in Florida Statutes, Section 218.503M.,
13
We have reviewed the annual report filed withthe Department of Banking
Finance for Monroe County. Florida pursuant to Section 218.32, Florida
Statutes,, This report is in agreement i annual audit report which
incorporates the financial statements .of the Property Appraiser.
The Property Appraiser was in compliance wi requirements of Florida
Statutes 218.415 concerning local government investment policies.
This report is intended solely r the information and use of the Property
Appraiser and members of the County and State governments and is not intended
to be and should used by anyone other 'than these specified parties.
Marva Green P.A. ® n m ,
Certified Public Accountants
April 9. 2002
1
N- 10NROE (-",,ouN,ry PROPERTY A-PPRAISER
ro c o u u��rr c o u Pq"r 1 iOUSE R0. BOX 1176
KIIFY WEST, 1�1 ORMA 33040
PHOM: (305)292 3420
ERVIN A. HIGGS, C.F.X-CRA
........ .....
Thursday, May 09, 2002
Honorable Robert Milligan, Comptroller
Department of Banking& Finance
Bureau of Local Government Finance
Room 100 1 Capitol Building
"I'allahassee,Florida 32399-0350
RE: Management Audit Response
Dear Sir:
In response to the Auditors Report on internal control for fiscal year 2000-2001,please
find the following:
There were no findings for the fiscal year 2000-2001
If you require any further inforination,please feel free to contact our office,
Sincerely,
ERVIN A. HIGGS, C.F.A.-CRA
MONROE COUNTY PROPERTY APPRAISER
EA.Hjlk
MEMBER
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