FY2022 Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Financial Report
September 30, 2022
Contents
Independent auditor's report 1-3
Management's discussion and analysis 4-8
Basis financial statements
Government-wide financial statements:
Statement of net position 9
Statement of activities 10
Fund financial statements:
Balance sheet—general fund 11
Statement of revenues expenditures and changes in fund balance—general fund 12
Notes to financial statements 13-31
Required supplementary information
Schedule of changes in the Authority's total OPEB liability and related ratios 32
Florida Retirement System Pension Plan
Schedule of the Authority's proportionate share of net pension plan liability 33
Schedule of the Authority's contributions to the Florida Retirement System Pension Plan 33
Health insurance subsidy plan
Schedule of the Authority's proportionate share of net pension plan liability 34
Schedule of the Authority's contributions to the health insurance subsidy plan 34
Schedule of revenues, expenditures and changes in fund balance—budget and
Actual—general fund (budgetary basis) 35
Supplementary independent auditor's report
Report of independent auditor on internal control over financial reporting and on
compliance and other matters based on an audit of financial statements
performed in accordance with Government Auditing Standards 36-37
Schedule of Findings and Questioned Costs 38-39
Independent auditor's management letter 40-41
Report of independent accountant on compliance with local government investment 42
Policies
Corrective action plan 43
1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
RSM
Independent Auditor's Report
Governing Board
Monroe County Comprehensive Plan Land Authority
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and the major
fund of the Monroe County Comprehensive Plan Land Authority (the Authority), a component unit of
Monroe County, Florida, as of and for the fiscal year ended September 30, 2022, and the related notes to
the financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and the major fund of the
Authority, a component unit of Monroe County, Florida, as of September 30, 2022, and the respective
changes in financial position for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of the Authority and
to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to
our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Emphasis of Matter
As discussed in Note 11 to the financial statements, the Authority has restated its beginning net position
of its governmental activities and beginning fund balance of its general fund to reflect the adjustment of its
previously issued forgivable mortgage receivables to their net realizable value. Our opinions are not
modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue
as a going concern for 12 months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
P O Vifl,,.R (31° V h E V alIA3 U t14 D R T0()N.1
/"<<<a.J l b l 1 IA X, C D S L)f i f I'q(.:,I
1
f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,I,I�aI ry,ra il.a�f I�1 r3, 0,r60 n,�,i�l ,ii9.ir,,,f ✓.c, mw.rI, a "'i1 i;h�:
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgement made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Authority's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgement, there are conditions or events considered in the aggregate, that
raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Required Supplementary Information as listed in the table of contents be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also Issued our report dated March 31,
2023, on our consideration of the Authority's Internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of Internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Authority's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
Authority's internal control over financial reporting and compliance.
Fort Lauderdale, Florida
March 31, 2023
3
Monroe County, Florida
Comprehensive Plan Land Authority
(A Comprehensive Unit of Monroe County, Florida)
Management's Discussion and Analysis
As management of the Monroe County Comprehensive Plan Land Authority (the Authority), we offer
readers of the Authority's financial statements this narrative overview and analysis of the Authority's
financial activities for the fiscal year ended September 30, 2022.
Overview of the Financial Statements
This discussion and analysis serve as an Introduction and guide to the Authority's basic financial
statements. The Authority's basic financial statements consist of three components: 1)government-wide
financial statements, 2)fund financial statements, and 3) notes to the financial statements. Following the
notes is the required supplementary information. This section contains funding information about the
Authority's pension plans.
Government-Wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broad overview of the Authority's finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all of the Authority's assets, deferred outflows of
resources, liabilities, and deferred Inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Authority is improving or deteriorating.
The Statement of Activities presents information showing how the Authority's net position changed during
the most recent fiscal year.All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Compensated absences
and pension related items do not use current financial resources and, therefore, are not reported as
expenditures in the General Fund.
Fund Financial Statements. The General Fund is used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, the General Fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. This Information is useful in evaluating the Authority's ability to fund new acquisitions in
the near-term.
Since the focus of the General Fund is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for the General Fund with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term Impact of the government's near-term financing decisions. Both the General
Fund Balance Sheet and the General Fund Statement of Revenues, Expenditures, and Changes in Fund
Balance provide a reconciliation to facilitate this comparison between fund level and government-wide
activities.
The Authority adopts an annual appropriated budget. A budgetary comparison statement has been
provided to demonstrate compliance with this budget.
Notes to the Financial Statements. The notes contained in this report provide additional information that
is essential to a full understanding of the data provided. The notes are an integral part of the basic
financial statements.
Other Information. In addition to financial statements and accompanying notes, this report also presents
supplementary information required by the Governmental Accounting Standards Board.
4
Monroe County, Florida
Comprehensive Plan Land Authority
(A Comprehensive Unit of Monroe County, Florida)
Management's Discussion and Analysis
Government-Wide Financial Analysis
Statement of Net Position. In the Statement of Net Position, the Authority's assets total $85,224,508
and include cash and investments, amounts due from other governments for tourist impact tax and park
surcharge fees, mortgages receivable, deposits, capital assets in the form of acquired land, equipment,
and intangible assets in the form of affordable housing restrictions. The mortgage receivables consist of
ten long-term balloon loans issued for the acquisition of affordable housing sites as described in Note 3,
three of which are forgivable.
Cash and investments are the assets typically of most Importance to the Authority's Board of Directors
and to the public, as these assets are the resources most readily available to meet current and future
needs for property acquisition. The Authority's cash and investments total $20,585,142. This amount
compares with $21,069,138 at the end of the previous fiscal year, a decrease of$483,996. Largely due to
an increase in expenditures of$5,664,078 which was caused mainly by$4.5 million of construction
funding provided to Key West Housing Authority for the construction of affordable housing. Approximately
64% of the Authority's assets consist of land and intangible assets acquired for specific public purposes,
approximately 11% consist of mortgages and approximately 24% are categorized as cash and
investments.
The Authority's current liabilities consist of accounts payable, accrued wages, and compensated
absences (annual leave and sick leave)forecasted to be used during the upcoming year. The Authority's
noncurrent liabilities consist of compensated absences that are forecasted not to be used during the
upcoming year, as well as net pension and net other postemployment benefits liabilities. Total liabilities
are $966,661.
The Authority's resulting net position is categorized as investment in capital assets, restricted specifically
for the acquisition of land or the activities described in Section 380.0666, Florida Statutes. (listed as
restricted), and amounts which may be used for all purposes authorized by the Authority's enabling
legislation (listed as unrestricted). The Authority's total net position is $82,838,730, an increase of
$3,176,993 from prior year. Of this total, $54,045,870 is Invested In capital assets, $12,449,964 Is
restricted, and $16,342,896 is unrestricted.
The following table provides a condensed comparison of the Authority's Statement of Net Position at
year-end for 2022 and 2021:
2022 2021
Cash and investments $ 20,585,142 $ 21,069,138
Other assets 8,852,509 10,138,461
Capital assets 54,036,857 50,384,478
Total assets 83,474,508 81,592,077
Deferred outflows of resources 383,721 150,538
Total liabilities 966,661 452,090
Deferred inflows of resources 52,838 27,877
Net Position:
Investment in capital assets 54,045,870 50,384,478
Restricted 12,449,964 13,891,925
Unrestricted 16,342,896 15,385,334
Total Net Position,as restated $ 82,838,730 $ 79,661,737
5
Monroe County, Florida
Comprehensive Plan Land Authority
(A Comprehensive Unit of Monroe County, Florida)
Management's Discussion and Analysis
Statement of Activities. In the Statement of Activities, the Authority's revenues total $10,324,978 and
Include Intergovernmental revenue consisting of tourist impact tax and park surcharge fees and
investment income consisting of interest on cash and investment accounts. Tourism Impact tax
represents a 1% tourist Impact tax charged on short term rentals remitted back from the State of Florida
Department of Revenue as a result of areas of critical state concern identified by the State of Florida
within Monroe County. Park surcharge fees are fees that are remitted back from the State of Florida
Department of Environmental Protection as a result of a surcharge for Individuals attending state parks in
identified areas of critical state concern within Monroe County, as enacted by Florida Statute 380.0685.
The Authority's general revenues increased by$1,826,892 compared to the prior year. The increases in
revenue from 2021 to 2022 were due to increased Tourism Impact Tax, a slight increase in park
surcharge and a new effort to pre-acquire land in the Florida Forever program boundary and resell it to
the State of Florida, thereby increasing the resources the Authority has for long term land acquisition.
The program expenses in the Statement of Activities total $6,747,985 and consist of amounts paid as a
result of general government expenses and land purchases. The $5,209,911 in general government
expenses includes the Authority's personnel and operating expenses plus the amount by which
compensated absences increased during the current year. Total program expenses for fiscal year 2022
compared to fiscal year 2021 increased by$5,664,078 compared to the prior year, largely due to $4.5
million of development funding provided to Key West Housing Authority for the construction of affordable
housing in fiscal year 2022.
The following table provides a condensed comparison of the Authority's governmental activities at year-
end for 2022 and 2021:
2022 2021
General revenues:
Intergovernmental $ 9,438,516 $ 7,780,532
Investment income 182,129 25,629
Miscellaneous income 684,032 473,504
Land contributions 20,301 218,421
Total general revenues 10,324,978 8,498,086
Program expenses:
General government 5,609,911 600,324
Costs of land sold 889,826 -
Land contribution conveyances 648,248 483,583
Total program expenses 7,147,985 1,083,907
Increase in net position 3,176,993 7,414,179
Net Position, beginning of year 79,661,737 73,597,558
Restatement- See note 11 - (1,350,000)
Net Position, beginning of year, as restated 79,661,737 72,247,558
Net Position, end of year $ 82,838,730 $ 79,661,737
6
Monroe County, Florida
Comprehensive Plan Land Authority
(A Comprehensive Unit of Monroe County, Florida)
Management's Discussion and Analysis
Financial Analysis of the General Fund
As noted previously, the Authority uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
The Authority's General Fund financial statements provide information on near-term inflows, outflows and
balances of spendable resources. This information can be useful in assessing the Authority s ability to
fund new acquisitions in the near-term.
Balance Sheet. The General Fund Balance Sheet lists the Authority's assets and liabilities in a manner
similar to the government-wide Statement of Net Position. However, since the General Fund Balance
Sheet is a fund-level presentation providing a near-term perspective, the assets section excludes the
Authority's capital assets, the liability section excludes compensated absences and net pension and other
postemployment benefits (OPEB) liabilities and deferred outflows, and inflows related to pensions and
OPEB are excluded. Presented in this manner, the Authority's assets are $31,178,638 and its liabilities
are $38,231.
This statement identifies $31,140,407 of total fund balance. Of this total, $9,169,025 is attributable to
funds the Authority may receive in the future from the repayment of mortgage loans and is, therefore,
classified as nonspendable; $12,449,964 is attributable to funds restricted for land acquisition and is,
therefore, classified as restricted; $4,293,248 is attributable to funds assigned for reserves; and
$5,228,170 is attributable to funds which may be used for all purposes authorized by the Authority's
enabling legislation and is, therefore, classified as unassigned. The Authority budgets its assigned for
reserves fund balance based on contingency needs, end of year cash balance, and Rate of Growth
Ordinance (ROGO)Administrative relief and is subject to fluctuate yearly.
Statement of Revenues, Expenditures and Changes in Fund Balance. The General Fund Statement
of Revenues, Expenditures, and Changes in Fund Balance lists the Authority's revenues and
expenditures in a manner similar to the government-wide Statement of Activities. However, in this format
the expenditures include land purchases (as capital outlay) and excludes pension related items, and
compensated absences. Presented in this manner, the Authority's revenues are $10,304,677 and its
expenditures are $10,326,925.
General Fund Budgetary Highlights. The Authority budgets its revenues and expenditures on the same
basis of accounting as presented in the basic financial statements of the General Fund, except that
mortgage assistance cash outlays and receipts are budgeted as operating activities and compensated
absences are not budgeted in personnel expenditures. There were no supplemental appropriations to
amounts originally budgeted for fiscal year 2022.
As shown in the Budget and Actual schedule, the Authority operated within the limits established by its
adopted budget. Actual revenues were more than the budgeted amount by$2,679,677, while actual
expenditures are $13,536,294 less than budget. Most of the revenue surplus consists of an increase in
intergovernmental revenue. The investment income of$182,129 consists of interest. The majority of the
expenditure surplus is due to fewer land acquisitions than budgeted. The schedule's positive expenditure
variance includes budgeted reserves held for specific acquisition projects.
7
Monroe County, Florida
Comprehensive Plan Land Authority
(A Comprehensive Unit of Monroe County, Florida)
Management's Discussion and Analysis
Capital Asset Administration
As shown in Note 4, the Authority's investment in capital assets amounts to $54,045,870, an increase of
$3,661,392, compared to the prior year. The increase was the net result of land and intangible asset
acquisitions less depreciation, conveyances, contributions, and write offs.
Long-Term Debt. The Authority's long-term debt consists of compensated absences, pension, and
OPEB liabilities. During the year, the Authority's long-term debt increased by$521,284, primarily due to
an increase in the net pension liability.
Requests for Information
This financial report Is designed to provide a general overview of the Authority's finances for all those with
an interest in the government's finances. Questions concerning any of the information should be
addressed to the Authority's Executive Director. at 1200 Truman Avenue, Suite 207, Key West, FL 33040.
8
BASIC FINANCIAL STATEMENTS
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Statement of Net Position
September 30, 2022
Assets and Deferred Outflows of Resources
Assets:
Cash and investments $ 20,585,142
Due from BOCC 1,134,306
Due from state of Florida 64,434
Mortgages receivable, net of allowance 7,419,025
Deposits 225,731
Equipment,net of accumulated depreciation 9,013
Capital assets—land 38,337,051
Intangible assets 15,699,806
Total assets 83,474,508
Deferred Outflows of Resources:
Pension 368,746
Other postemployment benefits 14,975
Total deferred outflows 383,721
Liabilities, Deferred Inflows of Resource and Net Position
Current liabilities:
Accounts payable 8,347
Accrued wages 29,884
Compensated absences 22,225
Total current liabilities 60,456
Noncurrent liabilities:
Compensated absences 166,817
Net pension liability 684,388
Other postemployment benefits liability 55,000
Total noncurrent liabilities 906,205
Total liabilities 966,661
Deferred Inflows of Resources:
Pension 16,858
Other postemployment benefits 35,980
Total deferred inflows 52,838
Net Position:
Investment in capital assets 54,045,870
Restricted 12,449,964
Unrestricted 16,342,896
Total Net Position $ 82,838,730
The accompanying notes to the financial statements are an integral part of this statement.
9
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Statement of Activities
Year Ended September 30, 2022
General revenues:
Intergovernmental- Tourism Impact and State Parks $ 9,438,516
Investment income 182,129
Miscellaneous income 684,032
Land contributions 20,301
Total general revenues 10,324,978
Program expenses:
General government 5,609,911
Cost of land sold 889,826
Land contribution conveyances 648,248
Total program expenses 7,147,985
Increase in net position 3,176,993
Net Position, beginning of year, as restated 79,661,737
Net Position, end of year $ 82,838,730
The accompanying notes to the financial statements are an integral part of this statement.
10
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Balance Sheet—General Fund
September 30, 2022
Assets
Cash and investments $ 20,585,142
Due from BOCC 1,134,306
Due from state of Florida 64,434
Mortgages receivable, net of allowance 7,419,025
Deposits 225,731
Total assets $ 29,428,638
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 8,347
Accrued wages 29,884
Total liabilities 38,231
Fund balance:
Nonspendable, mortgage loans 7,419,025
Restricted, land acquisition 12,449,964
Assigned, reserves 4,293,248
Unassigned 5,228,170
Total fund balance 29,390,407
Total liabilities and fund balance $ 29,428,638
Amounts reported in the statement of net position differ from amounts
reported above as follows:
Fund balance—total governmental funds $ 29,390,407
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported above 54,045,870
Deferred outflows of resources related to pensions 368,746
Deferred outflows of resources related to other postemployment benefits 14,975
Compensated absences are not due and payable in the current period and,therefore,
are not reported in the governmental funds (189,042)
Net pension liability (684,388)
Other postemployment benefits liability (55,000)
Deferred inflows of resources related to pensions (16,858)
Deferred inflows of resources related to other postemployment benefits (35,980)
Net Position of governmental activities $ 82,838,730
The accompanying notes to the financial statements are an integral part of this statement.
11
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Statement of Revenues, Expenditures and Changes in Fund Balance—General Fund
Year Ended September 30, 2022
Revenues:
Intergovernmental:
State park revenue $ 493,258
Tourism impact revenue 8,635,686
Tax Collector excess fees 309,572
Miscellaneous income 684,032
Investment income 182,129
Total revenues 10,304,677
Expenditures:
Current:
Personnel 527,556
Operating 5,017,489
Capital outlay 5,181,880
Total expenditures 10,726,925
Deficiency of revenues over expenditures (422,248)
Fund balance, beginning of year, as restated 29,812,655
Fund balance, end of year 29,390,407
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balance-total governmental fund $ (422,248)
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the cost of those assets is capitalized net of accumulated depreciation
of$2,715 5,179,165
Land contributions of$20,301, cost of land sold of$889,826 and conveyances of$648,248
are not reported in government funds (1,517,773)
Some expenses do not use current financial resources and, therefore, are not
reported as expenditures in government funds:
Compensated absences (12,307)
Change in pension accounts (56,274)
Change in other postemployment benefits accounts 6,430
Change in net position of governmental activities $ 3,176,993
The accompanying notes to the financial statements are an integral part of this statement.
12
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Note 1. Nature of Organization and Significant Accounting Policies
Reporting Entity—The Monroe County, Florida Comprehensive Plan Land Authority(the Authority) is a
legally separate entity from Monroe County, Florida (the County). However, the Monroe County Board of
County Commissioners serves as the governing board of the Authority; therefore, for financial reporting
purposes, the Authority is considered a component unit of Monroe County, Florida. The financial
statements of the Authority are included as a discretely presented component unit in the Monroe County,
Florida Annual Comprehensive Financial Report.
The Authority was established under Monroe County, Florida Ordinance 031-1986 pursuant to Florida
Statute 380. Its purpose is to operate a land acquisition program in Monroe County, to implement the
Monroe County Comprehensive Plan and address issues created by it.
Basis of Accounting—Government fund financial statements are organized for reporting purposes on the
basis of a General Fund, the Authority's major fund, which accounts for all activities of the Authority and is
accounted for using the modified accrual basis of accounting. Revenues are recognized when they
become measurable and available as net current assets. "Measurable" means the amount of the
transaction can be determined and available means collectible within the current period or soon enough
thereafter to pay liabilities of the current period. The Authority considers all revenues available if collected
within 60 days after year-end. Expenditures are recognized when the related fund liability is incurred.
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Budget— Prior to, or on September 30, the Authority's budget is legally enacted through passage of a
resolution. Budgeted to Actual Expenditure reports are employed as a management control device during
the year for the fund. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America (U.S. GAAP). except that mortgage assistance cash outlays
and receipts are budgeted as operating activities and compensation accruals are not budgeted. For the
fiscal year 2022, the following adjustments were necessary to present the actual data on a budgetary
basis for the General Fund excess of revenues over expenditures:
U.S. GAAP basis $ (422,248)
Compensation accrual difference (5,911)
Mortgage funds (400,000)
Non-U.S. GAAP budgetary basis $ (828,159)
Capital Assets—Capital assets are defined by the Authority as land and those assets with an initial,
individual cost of$1,000 or more and an estimated useful life in excess of two years. Such assets consist
of land and equipment which, when purchased, are recorded at the Authority's cost. Where land was
acquired by donation on or prior to September 30, 2010, the asset was recorded at the Authority's
transaction cost plus the higher of the tax assessed value at the time of donation or 115% of the 1986 tax
assessed value. Where land was acquired by donation after September 30, 2010, the asset is recorded at
estimated acquisition cost, derived from the Authority's transaction cost plus the tax assessed value at
the time of donation. Land is not depreciated since it does not have a determinable useful life. Equipment
is depreciated using the straight-line method over the useful life of the equipment.
13
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Deferred Outflows and Inflows of Resources— In addition to assets, the statement of financial position will
sometimes report a separate section for deferred outflows of resources. This separate financial statement
element, deferred outflows of resources, represents a consumption of net position that applies to a future
period and so will not be recognized as an expense or expenditure until then. The Authority has several
items that meet this criterion —pension and other postemployment benefits (OPEB) related deferrals and
contributions made to the plans subsequent to the measurement date. The statement of financial position
also reports a separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that applies to a future
period and so will not be recognized as revenue until then. The Authority has several items that meet this
criterion — pension and OPEB related deferrals.
Long-Term Obligations— In the government-wide financial statements, long-term debt and other long-
term obligations are reported as liabilities in the applicable governmental activities.
Compensated Absences—The Authority'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 percentage and maximum hour limitations. The amount of vested accumulated
compensated absences payable based on the Authority's annual and sick leave policies, is reported as a
liability in the government-wide financial statements. That liability includes earned but unused vacation
and sick leave. Vacation leave is accrued based on length of employment. Sick time is paid out based on
length of employment up to one half of all accrued sick leave, with a maximum of 120 days with 15 or
more years of service.
Net Position— Net position in the government-wide fund financial statements Is classified as net
investment in capital assets; restricted and unrestricted. Restricted net position represents constraints on
resources that are either externally imposed by creditors, grantors, contributors or laws or regulations of
other governments imposed by law through state statute.
Fund Balances— In the governmental fund financial statements, fund balance Is composed of five
classifications designated to disclose the hierarchy of constraints placed on how fund balance can be
spent. The government fund types classify fund balances as follows:
Nonspendable— Include amounts that cannot be spent because they are either not in spendable
form, or for legal or contractual reasons, must be kept Intact. This classification includes inventories,
prepaid amounts, assets held for sale, and long-term receivables.
Restricted—Constraints placed on the use of these resources are either externally imposed by
creditors (such as through debt covenants), grantors, contributors, or other governments; or are
imposed by law (through constitutional provisions or enabling legislation).
Committed—Amounts that can only be used for specific purposes because of formal action
(resolution or ordinance) by the government's highest level of decision-making authority.
Assigned—Amounts that are constrained by the Authority's intent to be used for specific purposes,
but do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the
governing body, another body(such as a Finance Committee), or by the Executive Director to whom
that authority has been given. With the exception of the General Fund, this is the residual fund
balance classification for all governmental funds with positive balances.
14
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Unassigned—This is the residual classification of the General Fund. Only the General Fund reports
a positive unassigned fund balance. Other governmental funds might report a negative balance in
this classification, as the result of overspending for specific purposes for which amounts had been
restricted, committed or assigned.
Cash and Investments—The Authority's cash and investments consist of demand deposits and highly-
liquid investments with maturities of 90 days or less when purchased.
Use of Estimates—The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenditures during the
reporting period. Actual results could differ from estimates.
Subsequent Events—The Authority has evaluated subsequent events through March 31, 2023, in
connection with the preparation of these financial statements, which is the date the financial statements
were available to be issued.
New GASB pronouncements—The following are new accounting pronouncements that have been issued
but are not yet effective:
GASB Statement No. 96, Subscription-Based Information Technology Arrangements. GASB Statement
No. 96 provides accounting and financial reporting guidance for subscription-based information
technology arrangements (SBITAs). It is based on the standards established in Statement No. 87,
Leases. It:
• defines a SBITA as a contract that conveys control of the right to use a SBITA vendor's IT
software, alone or in combination with tangible capital assets (the underlying IT assets), as
specified in the contract for a period of time in an exchange or exchange-like transaction;
• requires governments with SBITAs to recognize a right-to-use subscription asset—an intangible
asset—and a corresponding subscription liability (with an exception for short-term SBITAs—those
with a maximum possible term of 12 months); and
• provides guidance related to outlays other than subscription payments, including implementation
costs, and requirements for note disclosures related to a SBITA.
The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 99, Omnibus 2022. The requirements of this Statement are effective as follows:
The requirements related to extension of the use of LIBOR, accounting for SNAP distributions,
disclosures of nonmonetary transactions, pledges of future revenues by pledging governments,
clarification of certain provisions in Statement 34, as amended, and terminology updates related to
Statement 53 and Statement 63 are effective upon issuance.
The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after
June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and
the classification and reporting of derivative instruments within the scope of Statement 53 are effective for
fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is
encouraged and is permitted by topic.
15
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB
Statement No. 62. The primary objective of this Statement is to enhance accounting and financial
reporting requirements for accounting changes and error corrections to provide more understandable,
reliable, relevant, consistent, and comparable information for making decisions or assessing
accountability. Effective Date: For fiscal years beginning after June 15, 2023, and all reporting periods
thereafter. Earlier application is encouraged.
GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance
for compensated absences. That objective is achieved by aligning the recognition and measurement
guidance under a unified model and by amending certain previously required disclosures. Effective Date:
The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and
all reporting periods thereafter. Earlier application is encouraged.
Management is in the process of determining what impact, if any, implementation of the above
statements may have on the financial statements of the Authority.
Note 2. Deposits and Investments
As of September 30, 2022, the Authority has the following deposits and investments:
Demand deposits $ 377,378
Local Governmental Surplus Trust Florida PRIME 20,207,764
Total deposits and investments $ 20,585,142
The Authority places its cash and investments on deposit with financial institutions in the United States.
The Federal Deposit Insurance Corporation covers $250,000 for substantially all depository accounts.
The Authority, from time to time, may have amounts on deposit in excess of the insured limits and the
remaining balances are insured 100% by the state of Florida collateral pool, a multiple-financial institution
pool with the ability to assess its members for collateral shortfalls if a member institution fails. As of
September 30, 2022, the demand deposits have a bank balance of$379,435.
The Authority's investment policy is in accordance with Florida Statute 218.415. This policy authorizes
investments in demand deposits, the Local Government Surplus Trust Fund, money market funds with
the highest credit quality rating from a nationally recognized agency, or direct obligations of the United
States Treasury.
As of September 30, 2022, the Authority had $20,207,764 invested In the Local Government Surplus
Trust Fund, all of which is invested in Florida PRIME. Florida PRIME is a qualifying external investment
pool presented at amortized cost, which approximates fair value. There are no restrictions or limitations
on withdrawals; however, Florida PRIME may, on the occurrence of an event that has a material impact
on liquidity or operations, impose restrictions on withdrawals for up to 48 hours.
The Florida PRIME is rated by Standard & Poor's. The current rating is AAAm. The weighted average
days to maturity (WAM)of the Florida PRIME at September 30, 2022, is 21 days. Next interest rate reset
days for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL)
of Florida PRIME at September 30, 2022, is 72 days. The Florida PRIME was not exposed to any foreign
currency risk during the period from October 1, 2021, through September 30, 2022. The Florida PRIME
did not participate in any securities lending program in the period October 1, 2021, through
September 30, 2022.
16
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Note 3. Mortgages Receivable
Mortgages receivable as of September 30, 2022, are as follows:
Second mortgage due from governmental agency, collateralized by land, payable
in full November 2034, interest free (OR 1697-2076)and (as amended at
OR 2442-1497). $ 1,500,000
Second mortgage due from governmental agency, collateralized by land, payable
in full January 2034, interest free (OR 1965-1039). 2,210,000
First mortgage due from governmental agency, collateralized by land, payable
in full September 2045, interest free (OR 1395-1409). 59,025
Third mortgage due from private company, collateralized by land, payable in full
May 2050, interest free (OR 1749-2340). 1,089,000
Third mortgage due from private company, collateralized by land, payable in full
September 2053, interest free (OR 1939-405). 1,500,000
Second mortgage due from governmental agency, collateralized by land, payable in
full July 2040, interest free (OR 2475-1762). 836,000
Third mortgage due from governmental agency, collateralized by land, forgivable
July 2040, interest free (OR 2475-1767). 800,000
Second mortgage due from governmental agency, collateralized by land, payable
in full November 2041, interest free (OR 2541-877/884). 225,000
Third mortgage due from governmental agency, collateralized by land, forgivable
November 2041, interest free (OR 2541-885/895). 550,000
First mortgage due from private company, collateralized by land and building,
forgivable June 2027, interest free (OR 3177-673/677) 400,000
Total mortgages receivable 9,169,025
Allowance for forgivable mortgages receivable (1,750,000)
Total mortgages receivables, net $ 7,419,025
The mortgages receivable are presented as Nonspendable fund balance, which indicates they do not
constitute "available spendable resources," even though they are a component of total assets.
17
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Note 4. Capital Assets
A summary of changes in capital assets is as follows:
Balance Balance
September 30, September 30,
2021 Additions Deductions 2022
Capital assets, not depreciated:
Land $ 34,675,944 $ 5,199,181 $ (1,538,074) $ 38,337,051
Intangible assets 15,696,806 3,000 - 15,699,806
Total capital assets, not depreciated 50,372,750 5,202,181 (1,538,074) 54,036,857
Capital assets, depreciated:
Equipment 23,486 - - 23,486
Total capital assets, depreciated 23,486 - - 23,486
Less accumulated (11,758) (2,715) - (14,473)
Total capital assets, depreciated, net 11,728 (2,715) - 9,013
Total capital assets, net $ 50,384,478 $ 5,199,466 $ (1,538,074) $ 54,045,870
Current year additions include $20,301 of land contributions. Monroe County provides the Authority's
office space at no rental cost; however, the Authority pays for utilities. The intangible assets referenced in
the above table consist of affordable housing restrictions that run in favor of the Authority.
Note 5. Long-Term Debt
The following is a summary of changes in the Authority's long-term obligations for the fiscal year ended
September 30, 2022:
Balance Current
October 1, September 30, Portion
2021 Increases Decreases 2022 of Balance
Compensated absences $ 176,735 $ 52,328 $ (40,021) $ 189,042 $ 22,225
Net pension liability 176,411 507,977 - 684,388 -
Total OPEB liability 54,000 1,000 - 55,000 -
$ 407,146 $ 561,305 $ (40,021) $ 928,430 $ 22,225
18
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Note 6. Other Postemployment Benefits (OPEB) Plan
General Information about the Other Postemployment Benefits:
Plan Description—The Authority participates in the single-employer, defined benefits healthcare plan (the
Plan)administered by Monroe County, Florida, (the County). Section 112.0801, Florida Statutes, requires
the Authority to provide retirees and their eligible dependents with the option to participate in the Plan if
the Authority provides health insurance to its active employees and their eligible dependents. The Plan
provides medical coverage, prescription drug benefits, and life Insurance to both active and eligible
retired employees. The Plan does not issue a publicly available financial report. No assets are
accumulated in a trust that meets the criteria as set forth in Government Accounting Standards Board
(GASB)Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions.
The County may amend the Plan design, with changes to the benefits, premiums and/or levels of
participant contribution at any time. In an open session, on at least an annual basis and prior to the
annual enrollment process, the County approves the rates for the coming calendar year for the retiree
and Authority contributions.
The Authority is responsible for funding all obligations and the following disclosures are based on the
Authority's net OPEB obligation.
Benefits Provided— Employees who retire as active participants in the Plan and were hired on or after
October 1, 2001, may continue to participate in the Plan by paying the monthly premium established
annually by the County. Employees who retire as active participants in the Plan, were hired before
October 1, 2001, have at least 10 years of full-time service with the Authority and meet the retirement
criteria of the Florida Retirement System (FRS) but are not eligible for Medicare, may maintain group
insurance benefits with the Authority following retirement, provided the retiring employee contributes the
amounts as shown in the following table.
Contribution as Percentage of Annual Actuarial Rate (1)
Plan Years of Service with Monroe County
Year 25+ 20-24 10-19
2022 and thereafter HIS 25% 50%
(1) Participation in the Plan is at a cost equal to the FRS Health Insurance Subsidy(HIS)for 10 years
of service (currently$5 per month for each year of service credit at retirement with a minimum
HIS payment of$30 and a maximum HIS payment of$150 per month).
Retirees who have met the requirements for early retirement, have not achieved age 60, and whose age
and years of service do not equal 70 (rule of 70), must pay the standard monthly premium until the age
criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be based on the
preceding table. Surviving spouses and dependents of participating retirees may continue in the Plan if
eligibility criteria specific to those classes are met.
19
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
An employee who retires as an active participant in the Plan, was hired prior to October 1, 2001, has at
least 10 years of full-time service with the Authority, meets the retirement criteria of the FRS, and is
eligible for Medicare at the time of retirement or becomes eligible for Medicare following retirement, may
maintain group health insurance benefits with the Authority following retirement, provided the retiring
employee contributes the Actuarial Rate for Medicare retirees as determined by the actuarial firm
engaged by the County, less a $250 per month Authority subsidy. Alternatively, retirees meeting these
criteria may elect to leave the Authority health plan and receive a $250 per month payment from the
Authority, payable for the lifetime of the retiree.
Employees Covered by Benefit Terms— Eligibility for postemployment participation in the Plan is limited
to full-time employees of the Authority. At September 30, 2022, there were no terminated employees
entitled to deferred benefits. The membership of the Board's medical plan consisted of:
Active employees 3
Retirees and beneficiaries currently receiving benefit -
Total memberships 3
Contributions—The County establishes, and may amend, the contribution requirements of Plan
members. The required contribution Is based on pay-as-you-go financing requirements, net of member
contributions.
Total OPEB Liability:
The Authority's total OPEB liability of$55,000 was measured as of September 30, 2022 and was
determined by an actuarial valuation as of September 30, 2022.
Actuarial Methods and Assumptions—The valuation dated September 30, 2022, was prepared using
generally accepted actuarial principles and practices, and relied on unaudited census data and medical
claims data reported by the board.
The total OPEB liability for the Authority in the September 30, 2022, actuarial valuation was determined
using the following actuarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:
Actuarial Cost Method Entry Age Normal based on level of percentage of projected salary.
Inflation Rate 2.5% per annum
Salary Increase Rate 3.5% per annum
Discount Rate 2.16% per annum (Beginning of Year)
4.02% per annum (End of Year)
Source Bond Buyer 20-Bond GO Index
Marriage Rate The assumed percentage of eligible dependents was based on the
current proportions of single and family contracts in the census
provided.
20
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Spouse Age Spouse dates of birth were provided by the Authority. Where this
information was missing, male spouses were assumed to be three
years older than female spouses.
Medicare Eligibility All current and future retirees were assumed to be eligible for
Medicare at age 65.
Amortization Method Experience/Assumptions gains and losses were amortized over a
closed period of 11.3 years starting on October 1, 2019, equal to
the average remaining service of active and inactive plan members
(who have no future service).
Plan Participation Percentage The assumptions for participation of eligible retirees in the
Authority's postemployment benefit plan are:
Retirees with 25+Years of Service: 100%
Retirees with 20-24 Years of Service: 75%
Retirees with < 20 Years of Service: 50%
The actuarial assumptions include an annual healthcare cost trend rate of 7% Initially, reduced by
decrements of 0.25% to an ultimate rate of 4%. The assumptions included a discount rate tied to the
return expected on the funds used to pay the benefits, and assumes for an unfunded plan, that the
benefits continue to be funded on a pay-as-you-go basis.
Mortality rates were based on the Pub-2010 projected forward using the SOA scale MP-2021.
Expected retiree claim costs were developed using 24 months historical claim experience through July
2022.
Changes in the Total OPEB Liability:
Total OPEB
Liability
Balance at the beginning of the year $ 54,000
Changes for the year:
Service cost 3,577
1 nte rest cost 1,239
Changes in assumptions or other inputs 5,868
Benefit payment (9,684)
Net change in total OPEB liability 1,000
Balance at the end of the year $ 55,000
21
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate—The following presents the total
OPEB liability of the Authority, as well as what the Authority's total OPEB liability would be If it were
calculated using a discount rate that Is 1-percentage-point lower(3.02%)or 1-percentage-point higher
(5.02%)than the current discount rate:
Current
1% Decrease Discount Rate 1% Increase
3.02% 4.02% 5.02%
Total OPEB liability $ 61,000 $ 55,000 $ 50,000
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates—The following
presents the total OPEB liability of the Authority, as well as what the Authority's total OPEB liability would
be if it were calculated using a healthcare cost trend rates that are one-percentage-point lower (5%
decreasing to 4%)or one-percentage-point higher(7% decreasing to 6%)than the current healthcare
cost trend rates:
1% Decrease Current Trend 1% Increase
(5% Decreasing (6% Decreasing (7% Decreasing
to 4%) to 5%) to 6%)
Total OPEB liability $ 54,000 $ 55,000 $ 57,000
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended September 30, 2022, the Authority recognized OPEB (benefit) expense of($6,430).
At September 30, 2022, the Authority reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 4,941 $ (26,383)
Changes of assumptions or other inputs 10,034 (9,597)
$ 14,975 $ (35,980)
22
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
The amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB (benefit) expense as follows:
OPEB Amount
Years Ending June 30:
2023 $ (11,042)
2024 (11,042)
2025 333
2026 267
2027 670
Thereafter (191)
$ (21,005)
Note 7. Florida Retirement System Retirement Plans
General Information—All of the Authority's employees participate In the FRS. As provided by Chapters
121 and 112, Florida Statute, the FRS provides two cost-sharing, multiple-employer defined benefit plans
administered by the Florida Department of Management Services, Division of Retirement including the
FRS Pension Plan (Pension Plan), and the Retiree Health Insurance Subsidy(HIS Plan). Under Section
121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan)
alternative to the FRS Pension Plan, which is administered by the State Board of Administration (SBA).
As a general rule, membership in the FRS is compulsory for all employees working in a regularly
established position for a state agency, county government, district school board, state university,
community college, or a participating city or special district within the state of Florida. The FRS provides
retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members
and beneficiaries.
Benefits are established by Chapter 121, Florida Statute, and Chapter 60S, Florida Administrative Code.
Amendments to the law can be made only by an act of the Florida State Legislature.
The state of Florida annually issues a publicly available financial report that includes financial statements
and required supplementary Information for the FRS. The latest available report may be obtained by
writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box
9000, Tallahassee, Florida 32315-9000, or from the Web site:www.dms.myflorida.com/workforce
operations/retirement/publications.
Pension Plan:
Plan Description—The Pension Plan is a cost-sharing, multiple-employer defined benefit pension plan,
with a Deferred Retirement Option Program (DROP)for eligible employees.
Benefits Provided— Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class
members who retire at or after age 62 with at least six years of credited service or 30 years of service
regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final
average compensation based on the five highest years of salary, for each year of credited service. Vested
members with less than 30 years of service may retire before age 62 and receive reduced retirement
benefits.
23
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Special Risk Administrative Support class members who retire at or after age 55 with at least six years of
credited service or 25 years of service regardless of age are entitled to a retirement benefit payable
monthly for life, equal to 1.6% of their final average compensation based on the five highest years of
salary, for each year of credited service. Special Risk class members (sworn law enforcement officers,
firefighters, and correctional officers)who retire at or after age 55 with at least six years of credited
service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly
for life, equal to 3.0% of their final average compensation based on the five highest years of salary for
each year of credited service.
Senior Management Service class members who retire at or after age 62 with at least six years of
credited service or 30 years of service regardless of age are entitled to a retirement benefit payable
monthly for life, equal to 2.0% of their final average compensation based on the five highest years of
salary for each year of credited service.
Elected Officers class members who retire at or after age 62 with at least six years of credited service or
30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to
3.0% (3.33% for judges and justices)of their final average compensation based on the five highest years
of salary for each year of credited service.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of
credited service for all these members and increasing normal retirement to age 65 or 33 years of service
regardless of age for Regular, Senior Management Service, and Elected Officers class members, and to
age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support
class members. Also, the final average compensation for all these members will be based on the eight
highest years of salary.
As provided In Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan
before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living
adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit
on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-
living adjustment is a proportion of 3 %determined by dividing the sum of the pre-July 2011 service credit
by the total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1,
2011, will not have a cost-of-living adjustment after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly
retirement benefit payments while continuing employment with an FRS employer for a period not to
exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund
and accrue interest. There are no required contributions by DROP participants.
Contributions— Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants,
are required to contribute 3% of their salary to the FRS. In addition to member contributions,
governmental employers are required to make contributions to the FRS based on state-wide contribution
rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The
employer contribution rates by job class for the periods from October 1, 2021 through June 30, 2022 and
from July 1, 2022 through September 30, 2022, respectively, were as follows: Regular-10.82% and
11.91%; Special Risk Administrative Support—37.76% and 38.65%; Special Risk-25.89% and 27.83%;
Senior Management Service-29.01% and 31.57%; Elected Officers-51.42% and 57.00%; and DROP
participants— 18.34% and 18.60%. These employer contribution rates Include 1.66% and 1.66% HIS
Plan subsidy for the periods October 1, 2021, through June 30, 2022, and from July 1, 2022, through
September 30, 2022, respectively.
24
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
The Authority's contributions to the Pension Plan totaled $66,610 for the fiscal year ended September 30,
2022.
Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions—At September 30, 2022, the Authority reported a liability of$580,810 for
Its proportionate share of the Pension Plan's net pension liability. The net pension liability was measured
as of June 30, 2022, and the total pension liability used to calculate the net pension liability as determined
by an actuarial valuation as of July 1, 2022. The Authority's proportionate share of the net pension liability
was based on the Authority's fiscal year 2022 contributions relative to the fiscal year 2022 contributions of
all participating members. At June 30, 2022, the Authority's proportionate share was .001561%, which
was an increase of.000679% from its proportionate share measured as of June 30, 2021.
For the fiscal year ended September 30, 2022, the Authority recognized pension expense of$56,274. In
addition, the Authority reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 27,585 $ -
Changes of assumptions 71,529 -
Net difference between projected and actual earnings on
Pension Plan investments 38,351 -
Changes in proportion and differences between Authority Pension
Plan contributions and proportionate share of contributions 186,107 -
Authority Pension Plan contributions subsequent to the
measurement date 20,609 -
$ 344,181 $ -
The deferred outflows of resources related to the Pension Plan, totaling $20,609, resulting from Authority
contributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the
net pension liability in the fiscal year ended September 30, 2023. Other amounts reported as deferred
outflows of resources and deferred Inflows of resources related to the Pension Plan will be recognized in
pension expense as follows:
Years Ending June 30:
2023 $ 79,265
2024 57,072
2025 30,178
2026 134,862
2027 22,195
Thereafter -
$ 323,572
25
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Actuarial Assumptions-The total pension liability in the June 30, 2022, actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.40%
Salary Increases 3.25%, average, including inflation
Investment Rate of Return 6.70%, net of Pension Plan investment expense, including inflation
Mortality rates were based on the PUB2010, base table varies by member category and sex, projected
generationally with Scale MP-2018 details in the valuation report. The actuarial assumptions used in the
July 1, 2022, valuation were based on the results of an actuarial experience study for the period July 1,
2013, through June 30, 2018.
The long-term expected rate of return on Pension Plan Investments was not based on historical returns,
but instead is based on a forward-looking capital market economic model. The allocation policy's
description of each asset class was used to map the target allocation to the asset classes shown below.
Each asset class assumption Is based on a consistent set of underlying assumptions and includes an
adjustment for the Inflation assumption. The target allocation and best estimates of arithmetic and
geometric real rates of return for each major asset class are summarized in the following table:
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation Return Return Deviation
Cash 1.0% 2.6% 2.6% 1.1%
Fixed income 19.8% 4.4% 4.4% 3.2%
Global equity 54.0% 8.8% 7.3% 17.8%
Real estate (property) 10.3% 7.4% 6.3% 15.7%
Private equity 11.1% 12.0% 8.9% 26.3%
Strategic investments 3.8% 6.2% 5.9% 7.8%
100.0%
Discount Rate—The discount rate used to measure the total pension liability was 6.70%. The Pension
Plan's fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the discount rate for calculation of the total pension
liability is equal to the long-term expected rate of return.
Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate—The following represents the Authority's proportionate share of the net pension liability calculated
using the discount rate of 6.70%, as well as what the Authority's proportionate share of the net pension
liability (asset)would be if it were calculated using a discount rate that is one-percentage-point lower
(5.70%)or one-percentage-point higher(7.70%)than the current rate:
Current
1% Decrease Discount Rate 1% Increase
5.70% 6.70% 7.70%
$ 1,004,472 $ 580,810 $ 226,579
26
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Pension Plan Fiduciary Net Position— Detailed information regarding the Pension Plan's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State-Administered Systems
Annual Comprehensive Financial Report.
HIS Plan:
Plan Description—The HIS Plan is a cost-sharing, multiple-employer defined benefit pension plan
established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at
any time. The benefit is a monthly payment to assist retirees of state-administered retirement systems in
paying their health insurance costs and is administered by the Florida Department of Management
Services, Division of Retirement.
Benefits Provided— For the fiscal year ended September 30, 2022, eligible retirees and beneficiaries
received a monthly HIS payment of$5 for each year of creditable service completed at the time of
retirement, with a minimum HIS payment of$30 and a maximum HIS payment of$150 per month. To be
eligible to receive these benefits, a retiree under a state-administered retirement system must provide
proof of health Insurance coverage, which may include Medicare.
Contributions—The HIS Plan Is funded by required contributions from FRS participating employers as set
by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active
FRS members. For the fiscal year ended September 30, 2022, the HIS contribution for the period
October 1, 2021, through September 30, 2022, was 1.66%. The Authority contributed 100% of its
statutorily required contributions for the current and preceding three years. HIS Plan contributions are
deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not
guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or
available funds fall to provide full subsidy benefits to all participants, benefits may be reduced or
cancelled.
The Authority's contributions to the HIS Plan totaled $5,917 for the fiscal year ended September 30,
2022.
Pension Liability Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions—At September 30. 2022, the Authority reported a liability of$103,578 for
its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of
June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by
an actuarial valuation as of July 1, 2022. The Authority's proportionate share of the net pension liability
was based on the Authority's 2022 fiscal year contributions relative to the 2022 fiscal year contributions of
all participating members. At June 30, 2022, the Authority's proportionate share was .000978%, which
was an increase of.000082% from its proportionate share measured as of June 30, 2022.
27
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
For the fiscal year ended September 30, 2022, the Authority recognized pension expense of$10,894. In
addition, the Authority reported deferred outflows of resources and deferred Inflows of resources related
to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 3,144 $ (456)
Changes of assumptions 5,937 (16,023)
Net difference between projected and actual earnings on
Pension Plan investments 150 -
Changes in proportion and differences between Authority Pension
Plan contributions and proportionate share of contributions 13,779 (379)
Authority Pension Plan contributions subsequent to the
measurement date 1,555 -
$ 24,565 $ (16,858)
The deferred outflows of resources related to the HIS Plan, totaling $1,555, resulting from Authority
contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of
the net pension liability in the fiscal year ended September 30, 2023.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
the HIS Plan will be recognized in pension expense as follows:
Years Ending June 30:
2023 $ 3,072
2024 1,661
2025 1,498
2026 902
2027 (566)
Thereafter (415)
$ 6,152
Actuarial Assumptions—The total pension liability in the July 1, 2022, actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.40%
Salary increases 3.25% average, including inflation
Municipal bond rate 3.54%
The actuarial assumptions used in the July 1, 2022, valuation were based on the results of an actuarial
experience study for the period July 1, 2013, through June 30, 2018. The municipal rate used to
determine total pension liability increased from 2.16% to 3.54%.
28
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Discount Rate—The discount rate used to measure the total pension liability was 3.54%. In general, the
discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting
at the long-term expected rate of return for benefit payments prior to the projected depletion date.
Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered
to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by
the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted
as the applicable municipal bond index.
Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate—The following represents the Authority's proportionate share of the net pension liability calculated
using the discount rate of 3.54%, as well as what the Authority's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is one-percentage-point lower(2.54%)or
one-percentage-point higher(4.54%)than the current rate:
Current
1% Decrease Discount Rate 1% Increase
2.54% 3.54% 4.54%
$ 118,501 $ 103,578 $ 91,229
HIS Plan Fiduciary Net Position - Detailed information regarding the HIS Plan's fiduciary net position is
available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual
Comprehensive Financial Report.
Investment Plan:
The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The
Investment Plan is reported in the SBA's annual financial statements and in the state of Florida Annual
Comprehensive Financial Report.
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the
Investment Plan in lieu of the FRS defined benefit plan. Authority employees participating in DROP are
not eligible to participate in the Investment Plan. Employer and employee contributions including amounts
contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part
on the performance of investment funds. Benefit terms, including contribution requirements, for the
Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is
funded with the same employer and employee contribution rates that are based on salary and
membership class (Regular Class, Elected Authority Officers, etc.) as the Pension Plan. Contributions are
directed to individual member accounts, and the individual members allocate contributions and account
balances among various approved investment choices. Costs of administering the Investment Plan,
including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06%of
payroll and by forfeited benefits of plan members for the periods October 1, 2021, through September 30,
2022. Allocations to the investment member's accounts during the 2022 fiscal year, as established by
Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows:
Regular class 9.30%, Special Risk Administrative Support class 10.95%, Special Risk class 17.00%,
Senior Management Service class 10.67%, and Authority Elected Officers class 14.34%.
29
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
For all membership classes, employees are immediately vested in their own contributions and are vested
after one year of service for employer contributions and investment earnings. If an accumulated benefit
obligation for service credit originally earned under the Pension Plan is transferred to the Investment
Plan, the member must have the years of service required for Pension Plan vesting (including the service
credit represented by the transferred funds)to be vested for these funds and the earnings on the funds.
Nonvested employer contributions are placed in a suspense account for up to five years. If the employee
returns to FRS-covered employment within the five-year period, the employee will regain control over their
account. If the employee does not return within the five-year period, the employee will forfeit the
accumulated account balance. For the fiscal year ended September 30, 2022, the information for the
amount of forfeitures was unavailable from the SBA; however, management believes these amounts, if
any, would be immaterial to the Authority.
After termination and applying to receive benefits, the member may rollover vested funds to another
qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution,
leave the funds invested for future distribution, or any combination of these options. Disability coverage is
provided; the member may either transfer the account balance to the Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan or remain in
the Investment Plan and rely upon that account balance for retirement income.
The Authority's Investment Plan pension expense totaled $0 for the fiscal year ended September 30,
2022.
Note 8. Fund Balance
As a general rule, the Executive Director will select the most restricted resource permissible and available
to fund a given activity. This practice will generally track the following hierarchy: miscellaneous funds
consisting of grants restricted for specific purposes, State Park and Tourist Impact Tax funds, and lastly
unrestricted sources such as interest income and unrestricted miscellaneous funds. In terms of fund
balance classification, expenditures are generally to be spent from restricted fund balance first, followed
in order by committed fund balance, assigned fund balance, and lastly unassigned fund balance as
applicable. The Executive Director has the authority to deviate from this practice if it is in the best interest
of the Authority.
The following schedule provides management and citizens with information on the position or the General
Fund balance that is available for appropriation.
Total fund balance—General Fund $ 29,390,407
Less:
Nonspendable, mortgage loans 7,419,025
Restricted for land acquisition and affordable housing 12,449,964
Assigned for reserves 4,293,248
Unassigned fund balance 5,228,170
$ 29,390,407
30
Monroe County, Florida
Comprehensive Plan Land Authority
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Note 9. Risk Management
The Authority 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 Authority participates in
the coverage provided by the County for Workers' Compensation, Group Insurance, and Risk
Management internal service funds. Under these programs, workers' compensation provides $500,000
coverage per claim for regular employees. Workers' compensation claims in excess of the self-insured
coverage are covered by an excess insurance policy. Risk management has a $5,000,000 excess
insurance policy for general liability claims with a $200,000 self-insured retention and building property
damage is covered for the actual value of the buildings with a deductible of$50,000. Deductibles for
windstorm and flood vary by location. 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 Authority makes payments to the Workers'
Compensation, Group Insurance, and Risk Management Funds based on estimates of the amounts
needed to pay prior and current year claims.
Note 10. Commitments
The Authority had $1,673,082 of commitments to acquire various properties as of September 30, 2022.
Note 11. Restatements
The Authority identified two mortgage receivables with pre-existing forgiveness provisions that are
expected to be exercised totaling $1,350,000 that were not being reported at their net realizable value of
$0. As a result, the beginning net position of governmental activities was restated from$81,011,737 to
$79,661,737 and beginning fund balance in the general fund was restated from $31,162,655 to
$29,812,655.
31
REQUIRED SUPPLEMENTARY INFORMATION
Monroe County,Florida
Comprehensive Plan Land Authority
Schedule of Changes in the Authority's Total OPEB Liability and Related Ratios
Last Ten Fiscal Years*
2022 2021 2020 2019 2018
Total OPEB liability:
Service cost $ 3,577 $ 3,461 $ 4,845 $ 3,658 $ 3,511
Interest 1,239 1,166 2,759 3,577 6,887
Differences between expected and
actual experience 5,868 - (65,958) - (84,685)
Changes in assumptions or other inputs (9,684) 329 9,083 11,167 (3,632)
Benefit payments - (486) (125) (2,802)
Net change in total OPEB liability $ 1,000 $ 4,470 $ (49,396) $ 15,600 $ (77,919)
Total OPEB liability-beginning of year $ 54,000 $ 49,530 $ 98,926 $ 83,326 $ 161,245
Total OPEB liability-end of year $ 55,000 $ 54,000 $ 49,530 $ 98,926 $ 83,326
Covered-employee payroll: $ 397,669 $ 314,000 $ 305,163 $ 263,000 $ 253,896
Total OPEB liability as a percentage
of covered-employee payroll 14% 17% 16% 38% 33%
Notes to Schedule:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.75.
Effective January 1,2018,the Authority implemented cost-saving benefit changes for its other postemployment benefit plan.These
included premium rates that are calculated based on expected retiree costs for Medicare retirees and lower premium subsidies for
eligible retirees.
32
Monroe County,Florida
Comprehensive Plan Land Authority
Required Supplementary Information
Last Ten Fiscal Years"
Schedule of the Authority's Proportionate Share of Net Pension Plan Liability
Florida Retirement System Pension Plan
Year Ended June 30,
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Authority's proportion of the net pension liability 0.001561% 0.000881% 0.000796% 0.000773% 0.000620% 0.000609% 0.000473% 0.000454% 0.000455% 0.000507%
Authority's proportionate share of the net position liability $ 580,810 $ 66,539 $ 345,140 $ 287,870 $ 284,720 $ 273,194 $ 207,490 $ 186,661 $ 180,758 $ 174,421
Authority's covered payroll $ 356,389 $ 316,900 $ 300,603 $ 287,870 $ 284,720 $ 273,194 $ 207,490 $ 186,661 $ 180,758 $ 174,421
Authority's proportionate share of the net position
liability as a percentage of its covered payroll 61.36% 21.00% 114.82% 92.50% 65.54% 65.91% 57.58% 31.40% 15.37% 50.09
Plan fiduciary net position as a percentage of the
total pension liability 82.89% 96.40% 78.85% 82.61% 84.26% 83.89% 84.88% 92.00% 96.09% N/A
Data was unavailable prior to 2013.
Schedule of the Authority's Contributions to the Florida Retirement System Pension Plan
Year Ended September 30,
2022 2021 2020 2019 2018 2017 2016 2015 2014
Con tractu ally requ ire contribution $ 66,610 $ 33,882 $ 28,221 $ 25,151 $ 18,759 $ 16,323 $ 12,914 $ 11,462 $ 9,002
Contributions in relation to the contractually
required contribution 66,610 33,882 28,221 25,151 18,759 16,323 12,914 11,462 9,002
Contribution deficiency(excess) $ $ $ $ $ $ $ $ $
Authority's covered payroll $ 370,115 $ 314,669 $ 303,763 $ 294,194 $ 282,358 $ 276,221 $ 227,265 $ 193,209 $ 182,750
Contributions as a percentage of covered payroll 18.00% 10.77% 9.29% 8.55% 6.64% 5.91% 5.68% 5.93% 4.93
*Data was unavailable prior to 2014.
33
Monroe County,Florida
Comprehensive Plan Land Authority
Required Supplementary Information
Last Ten Fiscal Years*
Schedule ofthe Authority's Proportionate Share of Net Pension Plan Liability
Health Insurance Subsidy Plan
Year Ended June 30,
2022 2021 2020 2019 2019 2017 2016 2015 2014 2013
Authority's proportion of the net pension liability 0.000978% 0.000896% 0.000869% 0.000875% 0.000872% 0.000857% 0.000672% 0.000600% 0.000607% 0.000597%
Authority's proportionate share ofthe net position liability $ 103,578 $ 109,872 $ 106,069 $ 97,882 $ 92,265 $ 91,644 $ 78,333 $ 61,262 $ 56,796 $ 51,972
Authority's covered payroll $ 356,389 $ 316,900 $ 300,603 $ 287,870 $ 284,720 $ 273,194 $ 207,490 $ 186,661 $ 180,758 $ 174,421
Authority's proportionate share ofthe net position
liability as a percentage of its covered payroll 29.06% 34.67% 35.29% 34.00% 32.41% 33.55% 37.75% 32.82% 31.42% 29.80%
Plan fiduciary net position as a percentage ofthe
total pension liability 4.81% 3.56% 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% N/A
Data was unavailable prior to 2013.
Schedule ofthe Authority's Contributions to the Health Insurance Subsidy Plan
Year Ended September 30,
2022 2021 2020 2019 2019 2017 2016 2015 2014
Contractually required contribution $ 5,917 $ 5,228 $ 5,058 $ 4,885 $ 4,766 $ 4,586 $ 3,774 $ 2,643 $ 2097,
Contributions in relation to the contractually
required contribution 5,917 5,228 5,058 4,885 4,766 4,586 3,774 2,643 2097,
Contribution deficiency(excess) $ $ $ $ $ $ $ $ $
Authority's covered payroll $ 370,115 $ 314,669 $ 303,763 $ 294,194 $ 282,358 $ 276,221 $ 227,265 $ 193,209 $ 182,750
Contributions as a percentage of covered payroll 1.60% 1.66% 1.67% 1.66% 1.69% 1.66% 1.66% 1.37% 1.15%
"Data was unavailable prior to 2014.
34
Monroe County, Florida
Comprehensive Plan Land Authority
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual—General Fund (Budgetary Basis)
Year Ended September 30, 2022
Variance
with Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
State park revenue $ 360,000 $ 360,000 $ 493,257 $ 133,257
Tourism impact revenue 4,140,000 7,240,000 8,635,686 1,395,686
Tax Collector excess fees - - 309,573 309,573
Miscellaneous income - - 684,032 684,032
Investment income 25,000 25,000 182,129 157,129
Total revenues 4,525,000 7,625,000 10,304,677 2,679,677
Expenditures:
Personnel and operating 5,230,016 5,785,016 5,550,956 234,060
Capital outlay 16,094,114 18,484,114 5,181,880 13,302,234
Contingency 1,000,000 1,000,000 - 1,000,000
Total expenditures 22,324,130 25,269,130 10,732,836 14,536,294
Excess(deficiency)of revenues
over(under)expenditures (17,799,130) (17,644,130) (428,159) (17,215,971)
Fund balance,beginning of year 22,429,425
Fund balance,end of year $ (17,799,130) $ (17,644,130) 22,001,266 $ (17,215,971)
Reconciliation of budgetary to full accrual basis:
Reconciling items:
Mortgages receivables 7,419,025
Compensation accrual (29,884)
Fund balance,end of year(full accrual) $ 29,390,407
35
SUPPLEMENTARY INDEPENDENT AUDITOR'S REPORTS
1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
RSM
Report of Independent Auditor
on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards
Governing Board
Monroe County Comprehensive Plan Land Authority
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
Issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the governmental activities and the major fund of the Monroe County Comprehensive Plan
Land Authority(the Authority)as of and for the fiscal year ended September 30, 2022, and the related
notes to the financial statements, and have issued our report thereon dated March 31, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority's internal
control over financial reporting (internal control)as a basis for determining the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Authority's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. We identified a certain deficiency in internal control, described in the
accompanying schedule of findings and questioned costs as item 2022-001 that we consider to be a
material weakness.
71,.1 V.M P O VI E" (31° V h E V alIA3 U t14 D R T0()N.1
/"<<<a.Jl bl 1 IA X, C D S L)f i IN(",I
36
f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,IJ,I . ,ra il.of dIlf (113, 0,r60 hn,�hlml ✓.c, mw.rI, a "'i1 i;
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. 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 or other matters that are required to be reported under
Government Auditing Standards.
The Authority's Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the Authority's
response to the finding identified in our audit and described in the schedule of findings and questioned
costs. The Authority's response was not subjected to the other auditing procedures applied in the audit of
the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is Intended solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Authority's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Authority's Internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Fort Lauderdale, Florida
March 31, 2023
37
Monroe County Comprehensive Plan Land Authority
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended September 30, 2022
Section I -Summary of Independent Auditor's Results
Financial Statement
Type of auditor's report issued on whether the
financial statements audited were prepared in
accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? X Yes No
Significant deficiency(ies) identified that are
not considered to be material weakness(es)? Yes X None Reported
Noncompliance material to the Financial
Statements noted? Yes X No
38
Section II —Financial Statement Finding
IC 2022-001 Mortgage Receivables
Criteria: Internal control policies and procedures should provide reasonable assurance regarding the
reliability of the financial reporting process, including the accurate recording and disclosure of accounting
transactions. Receivables including mortgage receivables should be recorded at their net realizable value
in accordance with accounting principles generally accepted in the United States of America.
Condition: The Authority identified two mortgage receivables that were issued to a local government
agency more than ten years ago to provide funding for low-income housing with a provision that they
would be forgiven after 30 years if the funds continued to be used for their intended purpose. No
payments have been received on the loans since their issuance and no payments are expected to be
received. As such, the intent was that the loans would not be repaid, but rather forgiven over time making
their net realizable value zero. Since the loans were issued there have been no occurrences that have
changed the original intent of the loans. The total amount of the two forgivable mortgage receivables
outstanding, as of September 30, 2021, was $1,350,000 but the net realizable value was zero. As a
result, the receivable balance was overstated in the previously issued financial statements.
Context: The condition relates to the proper accounting for mortgage receivables on an ongoing basis.
Cause: Established controls requiring the reconciliation and review of mortgage receivables failed to
identify the errors noted.
Effect: The October 1, 2021, net position balance of the governmental activities and general fund
balance were overstated and have been restated to bring the reported value of the mortgage receivables
to their net realizable value.
Recommendation: We recommend that management establish policies going forward to evaluate unique
provisions in any loans made and perform an assessment at least annually on the net realizable value of
each loan giving consideration to the individual borrower's ability to pay and any forgiveness provisions
included in the agreement.
Views of Responsible Officials: Management concurs with the observation of the auditor regarding the
accurate recording and disclosure of mortgage receivable balances on an ongoing basis.
39
1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
RSM
Management Letter in Accordance with
Chapter 10.550, Rules of the Auditor General of the State of Florida
Governing Board
Monroe County Comprehensive Plan Land Authority Monroe County, Florida
Report on the Financial Statements
We have audited the financial statements of the Monroe County Comprehensive Plan Land Authority (the
Authority), a component unit of Monroe County, Florida, as of and for the fiscal year ended
September 30, 2022, and have issued our report thereon dated March 31, 2023.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards;and Independent Accountant's Report on examination conducted in
accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in
accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which are dated
March 31, 2023, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual
financial audit report. There were no findings or recommendations made in the preceding annual financial
report.
Official Title and Legal Authority
Section 10.554(1)(i)4, Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. The Authority was
established by Monroe County, Florida Ordinance 031-1986 pursuant to Florida Statute 380. There are
no component units related to the Authority.
Financial Condition and Management
Sections 10.554(1)0)5. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the Authority has met
one or more of the conditions described In Section 218.503(1), Florida Statutes, and to identify the
specific condition(s) met. In connection with our audit, we determined that the Authority did not meet any
of the conditions described In Section 218.503(1), Florida Statutes.
71,.1 V.M P O VI E" (31° V h E V alIA3 d.A 14 D E R 0()N.1
/"<<<a.J l b l 1 IA X, C 0 S L)f i f N(.:,I
40
f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,IJ,I . ,ra il.of dIlf (113, 0,r60 hn, hlml ✓.c, m .ri, a "'i1 i;
Pursuant to Sections 10.554(1)(1)5. b and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the Authority's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of the financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Specific Information
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor
General, the Authority reported (unaudited):
a. The total number of Authority employees compensated in the last pay period of the Authority's
fiscal year as 3.
b. The total number of independent contractors to whom nonemployee compensation was paid in
the last month of the Authority's fiscal year as 10.
c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of
contingency as $379,196.
d. All compensation earned by or awarded to nonemployee independent contractors, whether paid
or accrued, regardless of contingency as $62,646.
e. Each construction project with a total cost of at least$65,000 approved by the Authority that is
scheduled to begin on or after October 1 of the fiscal year being reported, together with the total
expenditures for such projects as follows: None
f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes,
before the beginning of the fiscal year being reported if the Authority amends a final adopted
budget under Section 189.016(6), Florida Statutes, is disclosed as required supplementary
information in the Authority's September 30, 2022, financial statements.
Additional Matters
Section 10.554(1)(1)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material, but which warrants the attention
of those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, Monroe County, the Authority, and applicable
management, and is not intended to be and should not be used by anyone other than these specified
parties.
�s q
Fort Lauderdale, Florida
March 31, 2023
41
1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
RSM
Independent Accountant's Report
Governing Board
Monroe County Comprehensive Plan Land Authority
We have examined the Monroe County Florida Comprehensive Plan Land Authority's (the Authority), a
component unit of Monroe County, Florida, compliance with the local government investment policy
requirements of Section 218.415, Florida Statutes, during the period from October 1, 2021, to
September 30, 2022. Management of the Authority is responsible for the Authority's compliance with the
specified requirements. Our responsibility is to express an opinion on the Authority's compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants . Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Authority complied, in all material
respects, with the specified requirements referenced above. An examination involves performing
procedures to obtain evidence about whether the Authority complied with the specified requirements. The
nature, timing, and extent of the procedures selected depend on our judgment, including an assessment
of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we
obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Authority's compliance with specified
requirements.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
In our opinion, the Authority complied, in all material respects, with the local investment policy
requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2022.
This report is intended solely for the information and use of the Florida Auditor General, the Authority, and
applicable management and is not intended to be, and should not be, used by anyone other than these
specified parties.
,?-s,4 as ,P.4R
Fort Lauderdale, Florida
March 31, 2023
71,.1 V.M P O VI E" (31° V h E V al14(3 d.A 14 D E R 0()N.1
/"<<<a.J l b l 1 IA X, C D S Uu i f N(.:,I
42
f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,IJ,I . ,ra il.of dIlf (113, 0,r60 hn,�hlml ✓.c, mw.rI, a "'ii i;
'ry
MONROE COUNTY LAND AUTHORITY tl�
1200 Truman Avenue, Suite 207, Key West, FL 33040f
Phone: (305)295-5180 Fax:(305)295-5181 ( °
'Stay Focused, Buy Land'
CORRECTIVE ACTION PLAN
Material Weakness -Control Deficiency
Section II—Financial Statement Finding
IC 2022-001 Mortgage Receivables
Name of Contact Person: Christine Hurley, AICP, Land Authority Executive Director
Corrective Action: The Monroe County Land Authority created Operating Procedure#300 to document
required procedures related to all active Mortgages and Notes held by the Land Authority to include
documentation, confirmation, accounting, auditing, and review procedures that will occur on a monthly
and annual basis to assure all mortgage amounts due are documented correctly, with consideration given
to those mortgages that are forgivable that should not be included as assets. This procedure, along with
required enclosures is attached.
Proposed Completion Date: Immediately
43