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Fiscal Year 2001 MONROE COU.NF, FLORIDA ® TAX ,COLLECTOR FINANCIAL STATEMENTS SEPTEM E[ 0, Q0 RA GREEN CERTIFIED PUBLIC ACCOUNTANTS CONTENTS_ Pa e Independent Auditors' Report 1w2 Financial Statements Combined Balance Sheet - All Fund Types Statement of Revenues and Expenditures - Budget and Actual - General Fund ' Notes to Financial Statements 5-10 Supplemental Information: Combining Balance Sheet l Agency Funds 11 Combining Statement of Changes in Assets and Liabilities All Agency Funds 12 Other Reports-, Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting 13-14 Independent Auditors' Nanagement setter15-16 MA VA GREEN, P.A. MARIO RODRIGUEZ, P.A. Certified Public Accountants Members American Institute and Florida Institute R 0.Box 1529 of Certified Public Accountants 3132 Northside Dr., it ioi Tel.(305)294-2581 Key West,FL 33041-1529 Fox(305)294-4778 INDEPENDENT AUDITORS' REPORT Ms. Danise D. Henri quez Tax Collector Monroe County, Florida We have audited the financial statements of the Tax Collector of Monroe County, Florida ("Tax Collector"} 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 Tax Collector. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 opinion. As discussed "In Note L. the financial statements present only the Tax Collector, 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 generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in a1l material respects, the financial position of the Tax Collector as of September 30, 2001, and the results, of its operations for the year then ended in conformity with generally accepted accounting ,priniciples. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information listed in the accompanying table of contents is presented for purposes of additional analysis and is not a required part of the financial statements. Such .1- 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 in relation to the financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued our report dated January, 12, 2002 on our consideration -of. the Tax Collector's internal control over financial reporting, and on 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 the results of our audit. Marva Green PA.,., Inc. Certified Public Accountants November 16, 2001 .2® m MONROE COUNTY.,FLORIDA TAX COLLECTOR Ca lLNE & CE SHEET - ALL FUN TYPES SEPTEM ER 30, 2001, GwaTmmtal Fidriary Total s Lug- As Cash Invesbumts 2,238,689 $ 3,567.778 $ $ 5,806,467 Aomjits Reoeivable 17,957 17,957 Awit to be P of Long-Term Debt - - 61,783 61,783 Total AsseLs $ 2,23B,689 $ 3,585,735 $ 61,783 $ 5,896,207 Liabilities: Acaults Payable $ 14,237 $ $ 14, 7 Aaned Wages and Benefits 48,096 UndistrihM Collections - 3,575.M 3,575.7M Due to IrKividmis - 10e000 10.000 Conssioners 1,747,6141,747,614 Due to OUw Gumnents .7 - - .7 Long-Tem . 61,783 . l Liabilities . $ 3,5ffi,735 $ 1. $ 5,886,207 The, accompanyinq notes are an i ntegr part of these financial statements. rr ® NON QE COUNTY,,-FLORIDAJAX COLLECTOR STATME Cf:EEN E U EENUITRE BUDGET AND ACTUAL - GENERAL FUND FOR THEAEAR ENDED SEFTENDER C, 20Q1, Variance Favorable Revenues: Charges for Services $ 4,424,580 $ 4,504,179 3 79,599 Interest Income 2 ,665 26, 85 Total Revenues 4.424,580 4,531,06406® Loss Distribution of Excess Fees from Taxing Districts �,,,3,. 1 ,894 �1�6�3�� _� .590462,) Net Revenues 2,607,686 2&354,706 (252n970) Expenditures, Current: � General Government: Personal Services 2,047,836 1,814.856 232,900 Operating Expenses 555,,199 535,201s Capital Outlay 51 4t0l, Total Expenditures 2 607,686 2,354,708 252X8 Excess of Revenues Over (Under) Expenditures The accompanying notes are an integral part of these financial statements. 4 - MONROE LOWY,, FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS S_E...�PTNBE 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting principlIes and policies used in the preparation of these financial statements. RepgrjjngEDjj it Col ) a- The Monroe County Tax Collector ("Tax lector® is separate Constitutional Officer as provided by the laws of the State of Florida. For financial reporting purposes, it is deemed to be part of the County's primary Government, and therefore is included within the County® funds 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 Tax Collector 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 Tax Collector that are not required either legally or by generaTly accepted accounting principles to be accounted for in another fund. Fiduciary Fund Type: The, Aqgncy Fund - These funds are custodial in nature and do not involve measurement of results of operations (assets equal liabilities). Agency Funds are merely clearing accounts for assets held by the Tax Collector as an agent for individuals, private organizations, other governments or other funds. Account Group: General Lqng-Term_Qeht Accqunt Croup - This account group is established to account for the long-term debt of the Tax Collector financed from governmental funds. ,5- MONROE COUN %m FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMEWS SEPT EMBE R 30, 2001 ,, NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of-A.q�ntin - The modified accrual basis of accounting is followed by the General Fund. Under the modified accrual basis of accounting, revenues are recorded when received or when susceptible to accrual , that is, measurable and available to finance the Tax Collector's operations. Expenditures are recorded when the liability is incurred except for accumulated sick pay which is not recorded as an expenditure® Budgets are also prepared on the modified accrual, basis.. Budgetaryappropriations in Requirement Expenditures are controlled by 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. Property Tax Col Chapter 197, Florida Statutes governs property tax col I ecti on s. Current Taxes - All property taxes become due and payable on November 1. and are delinquent on April 1 the following year. Discounts are allowed for early payments of 4%, 3%, 2% and 1% in November through February, respectively. UMaiLIaxeS - Sale of Tax Certificates ® The Tax Collector advertises, as required by Florida Statutes,. then sells tax certificates on all real property for unpaid taxes. Certificates not purchased are issued to the County. Any person owning real property upon which a tax certificate has been sold may redeem th'e certificate by paying the Tax Collector the face amount of the certificate plus interest and other costs, Tax Deeds - The owner of a tax certificate may, at any time after taxes have been delinquent (April 1) for two years, file an application for tax deed sale. The County, as a certificate owner® may exercise similar procedures two years after taxes have been due (November 1) . Tax deeds are issued to the highest bidder for the property, which is sold at public`�auction. MONROE CQUIN ITY FLORIDA TAX COLLECTOR NOTE5-TO FINANCIAL STATEME S SEPTEMBER 30 2001 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) General Fixed Assets - The tangible personal property used by the Tax Collector in its operations is shown in the General Fixed Assets Account Group of the Board of County Commissioners. In addition. ithe office space and certain other expenditure items used in the Tax Collector's operations are provided at no'cost by the Board of County Commissi.oners. Refund., of Excess Fees ® Florida Statutes provide that commission fee revenue in excess of expenditures held by the Tax Collector shall be distributed to each governmental agency in the same proportion fees paid by the governmental agency bear to total fees collected ice. The amount of undistributed excess at the end of each year is reported as a liability and total excess fees are reported as a reduction of revenues® Compensated Absences ® The Tax Collector's policy grants employees annual leave and sick leave in varying amounts. 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 1-imitations. 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 Co tined State ntsThe 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, addi tion, interfund type eliminations have not been made in arriving at the amounts included in this column, .7® MONROE COUNTY FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30 Pnnl NOTE 2 - CASH AND INVESTMENTS Cash and investments at September 30. 2000 consist following: Demand Deposits - $ 3,973,482 Investments b Money Market Fund 1 R32 L=I&QL4 Z Demand and timedeposits are fully insured in accordance with FloridaStatute 280, which establishmultiple financial institution lateral Legally permissibleinvestments are defined by Florida Statute 218.415 and primarily consist Federal and State securities. NOTELONG-TERM DEBT followingThe is a summary of changes debt for the year ended September 30, 2001. ,Accrue Compensated Absences Long-Term Debt, Beginning Year, Deb t Issued , Long-Term Debt, End of Year NOTE 4 W LEASES The Tax Collector pays rent under cancelable operatingleases for office space, office equipment and vehicles. Rental expense for the current year was approximately 5 , MONROE COUNTY FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30 2001 NOTE 5 RETIREMENT PLAN Substantially all full -time Tax Collector 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 591,900 full -time employees of various governmental units within the State of Florida. The System provides for vesting of benefits after 10 years of creditable service. Normal retirement benefits are available to employees who 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 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 ' ive highest years of earnings. Employees are not required to contribute to the System. The Tax Collector 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 32399-15W 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 employees, 18.44%. and elected officials, 15.14%. The Tax Collector's contributions made during the year's ended September 30, 2001, 2000 and '1999 were $147,036, $153,912, and $216,195, respectively, equal to the actuarially determined contribution requirements for each year. NOTE 6 - DEFERRED COMPENSATION PLAN The Tax Collector offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all' Tax Collector employees, permits them to defer a portion of their salary until .9- MONROE COU TY, FLRT A TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SPTEMBER 30, 001 NOTE 6 DEFERREDCOMPENSATION PLAN (Continued) future years. Participation in the Plan is optional . the deferred compensation is not available oyees until termination, irement, death, or unforeseeable emergencies Pl an assets are not subject to the aims of the Tax Collector'sgeneral- creditors'. NOTE 7 w RISK MANAGEMENT The Tax Collector it exposed to various risks loss related tort: theft f, damage to, and destruction assets; errorsomissions; injuries to employees; and natural disasters. The Tax Collector participates in the coverage provided Board of County Commissioners of Monroe County Workers Compensation® Group Insurance and RiskManagement Fund internal service funds. Under these programs he_ Worker's Compensation Fund provides 5 ,0 0 coverage per claim for regular employees The Group Insurance Fund provides coverage up to $85,000 for eachis claim. Risk Management provides $100,000, for each general liability claim and $100,000 for most property damage claims. Windstorm, Flood Property,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 exceeded this commercial coverage -in any of the past three years. The Tax Collector makes payments to the Worker's Compensation, Group Insurance and RiskManagement Funds based estimates of the amounts needed to pay prior year andIcurrent year claims. ® - MO ROE CO NTY, FLORIDA TAX CT R COMBINING BALAN SHEET - AFL AGENCY FUNO SEPTEMBER 30, 2LO! Property Tag and Total Tax License All Agency --funds— Assets Cash and Investments 3,262.350 305,428 $ 3,567,778 Accounts Receivable 8,316 0,6411 Total Assets ,270,666 $ 315,06 3,585,735 Liabilities: Undistributed Collections $ $ 3,575,735 Due to Individuals a 57 143 10,000 3 Total Liabilities $ 3,270,666 MONROE COUNTY FLQKDA TAX COLLECTOR COMBINING STATEMFRT F C AGES IN SETS AMD LI I xT ES ALL. AGENCY FUNDS FOR THE YEAR ENDED. SN'TDER 3 91 Balance 0alance DA RT TAX F1J 2000 Additions . Deductions 2001 Assets: Cash and Investments 3,003,056 164,630.908 $ 1,64,451„614 S 3,262„350 Accounts Receivable � 6,36 Total Assets $ 3,085,003 $ 164®637„277 $ 1.64.451,614 $ 3,270,666 Liabilities: Undistributed Coll,ections. $ 3,079„590 $ 159,923,725 $ 159,742,506 $ 3,260,809 0ue to Individuals 4.713m5 4p709,10 9e� Total Liabilities $ 3,005,003 $ 164p637,277 $ 164,451,614 $ 3,270,666 T&A L Assets: Cash and Investments ,205 9.284,547 9,275,404 30M20 Accounts Receivable' „ .2 u 7,345 9.641 Total Assets $ 290,501 $ 9.291,892 $ 9,275,404 $ 315,069 Liabilities. Undistributed Collections 297.898 9�27905% $ M62P520 314,926 Due o Individuals 03 12,336 1121.076 143- Total Liabilities $ 290,501 S M91,092 $ 9,275,404 $ 315,069 Assets: Cash and Investments 3.379.341 173m91.5, 56 $ 173,727,019 $ 3,567,778 Accounts Receivable 4p243 13�M, 17,957 Total Assets $ 3,383.584 $ 173,929,170 $ 173,727,019 $ 3,565335 Liabilities: Undistributed Collections 3.377,488 $ 169,203,282 $ 169,005„035 $ 3,575,735 Die to Individuals 6®0 6 4,725, 4m'721m 1,01 Total Liabilities $ 3.383.584, $ 173,929,170 $ 173.727,019 $ 3,585.735 MARVA GREEN, P.A. MARIO RODRIGUEZ, P.A. Certified Public Accountants Members Arnefican Institute and Florida institute P.0. Box 1529 of Certified Public Accountants 3132 Northside Dr.,Suite 101 Tel.(305)294-2581 Key West,FIL 33041-1529 Fax(305)294-4778 !NDEPENDENT AQDITORS.' REPORT ON COMPLI&RCE -AND ON INIERNAL CONTROL OVER FINANCIAL REPORTING Ms. Banise D. Henri Tax Collector Monroe County,,, Fl on da We have audited the financial statements of the Tax Collector of Monroe County,, Florida ("Tax Collector") as of and for the year ended September 30, ® and have issued our report thereon dated November 16, 2001. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Goverrment Auditing Standards, issued by the Comptroller General of the United States, Com liance As part of obtaining reasonable assurance about whether the Tax Collector'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. Intern I .Control Over financial.Re ting _p� In planning and performing our audit, we considered the Tax Collector,®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 -13- statements being audited may occur and not be detected within a timely period by employees in the normal course of performing it assigned functions. We noted no matters involving the internal control over financial reporting its operation that we consider to be material weaknesses. This report is in-tended solely information and use of the Tax Collector and members of County and State government and is not intended to be and should not be used by anyone other than these specified parties. Marva Gr Inc.- Certified Public Accountants November 16, 2001 ­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 Cr..Suite 101 Tel.(305)294-2581 Key West.FIL 33041-1529 Fax(305)294-4778 INDEPENDENT AUDITORS' MANAGEMENT LETTER Ms. Danise D. Henriquez Tax Collector Monroe County, Florida In planning and performing our audit of the financial statements of the Tax Collector of Monroe County® Florida ("Tax Collector") , for the year ended September 30, 2001, we considered the Tax llector's internal controls 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 operation, we noted certain ' matters involving internal control and its operation, and are submitting for your consideration related recommendations designed to help the Tax Collector make improvements and achieve operational efficiencies. Our comments reflect our desire to be of continuing assistance to the Tax Collector. ftgrtej in Prier par s Maim gmenj Lqtter Not Implemented, as of S )tember 30 2001 There were no recommendations and suggested accounting procedures as outlined in the Management Letter for the year ended September 30, 2000. Current None. Other Regaired, Disclosurps Marva Green was the Auditor in charge for the audit of the Tax Collector. We attest that the auditor in charge met the educational requirements pursuant to Chapter 11.45, Florida Statutes. .15. The Tax Collector was not in a state of financial emergency as described in Florida Statutes Section 218.503(l). We have reviewed the annual report filed with the Department of Banking and Finance for Monroe County, Florida pursuant to Section 218.32, Florida Statutes, This report is in agreement with the annual audit report which incorporates the financial statements of the Tax Collector. The Tax Collector was in compliance with the requirements of Florida Statutes 218.415 concerning local government investment policies. This report is intended solely for the information and use of the Tax Collector and members of County and State government and is not intended to be and should not be used by anyone otl,-ier than 'these specified parties® ,Marva Green P.A. , Inc. Certified Public Accountants November 16, 2001 .16-