Fiscal Year 1999 MONROE COUNTY FLORIDA°
PROPERTY APPRAiSER
FINANCIAL STATEMENTS
SEPTEMBER 30., 1999
KEMP & GREEN, P.A.
CERTIFIED PUBLIC ACCOUNTANTS_
CONTENTS-
Page
Independent Auditors' Report 1-2
E FinanciStatements: 11
Combined Balance Sheet All Find 'T, pes and Account Groups 3
St ofatementc� n raleFund ndit-uresm and Changes in, Find
4
Staternent ,of Revenues Expenditures and' Changes in Fund
Balance 7, Budget and Actual . (Budgetary Basis) General
Fund S.
Notes to Financial Statements -10
Other Reports:
Independent Auditors' Rep6rt on Compliance and on Internal
Control over Fihaneial Reporting 1 w12
Independent Auditors® Management Letter 13-1
KE REEN, P.A.
y fi ci Public Accountants
1438 KENNEDY P.IVE
P. O. 1529
KEY WEST, R.ORIDA 3,1041-1529 MEMBER F ERICAN INSTITUTE
° • . K , C.P.A. (3105) 294-25&1 AND FLORIDA INSTITUTE of
MAR{A E; GREED, 'C.P.A. FAX # (30 s) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
Mr. Ervin H. Higgs
.Property Appraiser
Merinos County, Florida
have audited .the financial statements- ' the Property Appraiser of Monroe
County, ' Florida ("Property Appraiser,"),, as of S ptember. 30,, 1999 and for -the
year then ended, as 11sted in , the accompanying table of contents, `These
financial statements are the responsibility` of the Property Apprais r. Our°
responsidi it " is to express. an opinion`dn these' firlanci l -statements 'based on
our audit.
W - conducted.- -our . audit in accordance with generally acc peed auditing
standards.''and,GovernTent Auditing Standards, issued bar, tIhe Comptroller General,
of the United States. These standards require that w plan and perform the
audit to obtain reasonable assurance abort Whether ,the financial statements
are free of material.' misstatement. An audit includes examining, on a `test
basis,, evidence supporting the amounts and disclosures' in the financial
statements- An audit `also includes assessin the accountin
g` g principles used ...
and significant estimates rude by management, well as evaluating the
overall financial statement presentations We believe that our audit provides
`a reasonable basis for our opinion.
As discussed it Note l; the financial statements, present only the Property
Appraiser and are not intended to present fairly the financial' position of
Monroe County, Florida and the results of op rpticans and cash, flows f its
.proprietary fund types in conform t,y with generally accepted accounting
principles.
In `dur opinion, the financial statements :referred to above present fairly,, in
all material respects, the financial. posi-tion of the Property Appraiser as of
September 30, 1999i and the results of its operations for the year then ended
in conformity with ,generall,y 6ccepted ,accounti'ng principles
In accordance with Government Auditing Standards„ we have also issued a report
dated February 3,' 2000 or, our- consideration of the Property Appraiser's
internal control over financialreporting, and our tests of. its compliance
with certain provisions of laws, regulations, contracts and grants;
Kemp & Green, P.R.
Certified Public Accountants
February 3 2000
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MONROE OONTY. g
ROHM AP RAISE
COMBINED BALANCE SHEET R ALL FUND TYPES AND ACCOONT GROUPS
SEPTEMGER 30, '1999
Governmental ' Account
no Type Group Totals
Lung-Tenn (Memor°ah-
General Debt di�rn onl yl
Assets;
Cash-and Investments 363s55
363,855
Prepaid Expenses, 28,10 25,10
Amount to� be Provided 111.272 1L1,272
Total Assets 391 .963 111 72
53.235
Liabilties.`
Accounts Payable 5m 66 y266
Accrued Wages
.And Benefits Payable 54k984 54„954
Due to Other Governments 64 p 181 .64,181
Doe to Individu is
Long-Term Debt. 111 2 --Ill 72
Total Liabilities
22 ,431 7 235,703
Fund Balance 267.532
267, 2
total -Liabilities and
Fund Balance 3 1,96 3 1 111;272 03.235
The,-accompanying notes are.an integral
part of these financial statements.
.3.
a� MONROE UNITY FLORZDA
EROrERTY_ ;PRRAISER
STATEMENT OF RE4�ENliES cnr"ENDITf1RES AND CHANGES
IN FUND BALANCL ---fiEt ER,�L.Fl1NC
FOR iff YE•�R ENDED SEFTEMBER D 3D9
Revenues:
Beard of County Commissioners 2,033,233
Other Taxing Districts 459;33g
Interest. Income 1 ,
Miscellaneous
2 , 2
Total Revenues __2,537 850
Expenditures:
"Current:
General Gov&nment
Personal .Services
Operating Expenses , 478@651
Capital, Outlay 218.21
Total Expenditures 2.a419,315
Expendi,tures.in Excess of Revenue 8, 3
FunBalance, Beginning of Year I48. 7
Fund Balance, End of Year
267,532
The ,accompanying notes are an integral
part of" these financial statements.`
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MONROF COUNTY FaORLQ}
PROPERTY APPRAL
STATEMENT OF REVENUES AND EXPENDITURES ANC} CHANGES IN
FUND OAI�NCE ® CCIDGEI AND ACTUAI BUDGETARY OASIS} GENE'RAC_ FUND
FOR THE YEAR ENDED'SIFFT MBER 30 1999
Actual Variance
(Budgetary Favorable
Ci e basis (1ifavor°abl )
Revenues.
Board of County Commissioners $ 2.182,2292,033,233
Other Taxing Districts23,520 4 7>418 (26.1.02)
In'terest Income � � 15,716 15.716
Miscellaneous 2 562 29,716
Tota1 everiu s: 2.705.749 2,575-929 (129r820}�
Expenditures;
Current:
General Governm6nt;
Personal Services
1',924,149 1,702,682 221,467
�.. Operating Expenses 59 70(} 38,785 43,915
Capital Outlay _ 40.500 218.213
�177 713}:
Total Expenditures 2.547 849 _ 2,459,680 57.669
Excess of Revenues Over/
(Under) Expendtures 158, 00 116,249 ( 2:351)'
Other Financings (Uses);
Reserve for Cuntingenc>i s (158 400) ]:58.400
Excess of Revenues -(Under)
Expenditures.and Other lases 116, 49 116, 49
Adjustments:
To Ad,ust' Expend itures`-far
Accruals 40,35 4-0,35
To A84ust Revenues for Accruals (38,079) � (38,079);
Excess of Expenditures Over Revenues,
,.GAAP Basis'of Accounting, 118,53 118;535
Fund Balance, Beginning of Year 148,997 __ 148,997
Fund Balance, End 148997 267.532 118,535
The accompanying notes are an integral
apart of these financial statements.
MONPOE OUNTY, -FL.OPTOA
PROPERTY APPRAISER
NOTES TO FINANCIAL STATEMENTS
SPTFMEEP, 0 1999
NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
'The following ,is 'a summary of the accounting principles and
Policies used in the preparation of these financial statements.
e ertin Entity The Property Appraiser' of Monroe County,. Florida ("Property
Appraiser"),, is a separate Constitutional Officer as provided' by the laws of
the State of Florida. car financial reporting purposes; it is deemed. to be ,a.
part of the ountyes primary government, and therefore i. included as such in
the Monroe County Compr,ehensivd- Annual Financial Report.'
'asis of Presentation - These financial statements have been prepared in
conformity with, the accounting principles and reporting guidelines established'
by the Governmental Accounting Standards Board. The ropert;y Appraiser'
utilis the following fund types.and account groups
Governmental Fund Type:
The __General Fund - This fund is used to account for all revenue and
expenditures applicable. to the general operations of .the Property Appraiser
that' , are not required _either legally or by generally accepted accounting
principles t , be accounted for in anch or.fund.
Account,Group a
General L nc� Term Debt A €ant Or �zz This account group i s establ i shed to
account for the- long-term debt of .the Property Appraiser financed-, from'
governmental funds
Oilers of Accountin-g The modified -accrual 'basis of accounting'is followed by
the General Fund. tinder the 'nodified accrual basis of accounting; revenues
are recorded w en 'received or when susceptible to accrual - that is s measurable
and available to finance the Property Appraiser's , operations, Expenditures
are recorded when °the iiabiTity is incurred except for accumulated sick pay
and vacation pay which is not recorded as an expenditure. Budgets are
prepared ors the cash -basis.
nO.
MONROE COUNTY: FLORIDA
PROPERTY APP ISER
DOTES TO FINANCIAL. STATEMENTS
E TEMBER 30 1.g99
NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cgntinupd)
dud ' tarw� R quiremdnt Expenditures are controlled by.' appropriations in
accordance with the budget 'requi ements set forth in the Florida Statutes
The budgeted revenues and expenditures A n ' the accompanying financial
statements> refld t all approved amendments.
General Fixed Assets - The tangible per property Used by the Property
Appraiser in its operations is shown in the General Fixed Assets Account Group the Board 'pf County Commissioners. In addition, the office -space and
certain ether expenditure .items used. in the Property 'Appraiser's' operations
are provided at no cost by'the Board of County Commissioners.
Undistributod .Excess Fees - Florida Statutes provide that assessed- fee revenue
collected by theProp- i y Appraiser in. excess of, expenditures shall b
e I
retained 'and applied . o next yepras operating' costs. The amount of-
undistributed
excess foes at the end of. each year applicale,..to the Board of
County Commissioners of Monroe County i s reported as fund balance. , ,
Q-ma nsated 'Absences - The Property Appraiser's policy grants employees annual
leave and sick leave in varying amounts, ., Upon termination of employment,
employees with six months or more of credited service can receive payment for
accumulated annual leave. In general _ sick leave payments are granted upon
termination, o employment to employees. with' five years or, more , of, credited
service. The maximum , payment is- subject to percentages and 'maximum , hour
limitations. Accumulated sick loavo' is accrued to the extent that such
amounts would -normally be liquidated with expendable available financial
resources. The. remaining liability is reflected in the General Long-Term Debt
Account Groin,
�.
Total olumns on Combined Stato�ndnts - The column entitled "Totals (Memorandum
Only)" of this report is ncldded. for informational purposes only. This total
column is not comparable to consolidated financial i nformat,i on, as the basic
<reporting entity is by fund type, and the various funds use different bases of
accounting.,' In addition, interfund type eliminations have not been 'rude in
arriving at the amounts .i ncl ud d in this 'column.,
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NONROE COUNTY, FLORIDA
PROPERTY AF?PRAISER
NOTES TO'FI AN IAL. STATEMENTS
SEPTEM ER 30 1999
NOTE 2 CASH AND INVESTMENTS
Cash and investments eats at, September 30, 1999 dbr-isi st oaf.the following:
Demand Deposits 55
Demand and time deposits are full, insured in accordance with Florida",Statute'
230, which established* 'the multiple financial institution collateral pool .
Legally permissible investments, are defined by Florida Statute 125.31 and,
primarily consist of Federal and State securities.
NOTE 3 LONO-TERM DEBT
The following is a summary of changes in long-term debt for the
September 30, I99 year ended ,
Accrued
'Compensated
Absences
Long Tern Debt, Beginning of Year 106,343
Debt Issued4,429,
Long Teri Debt; End cif Year $ 111,272
NOTE 4 - LEASE OBLIWIONS
The Property Appraiser.y pP pays rent .undr cancelable operating leases for effidd
equipment'. Rental expense for the current year amounted to 258200.
® .
QNROE CJQ3NY, FEORA
PROPERTY APPRAISER
NOTES TO FINANCIAL STATEJENTS
SEPTEM3ER 30 1999
NOTE 5 - RETIREMENT PLAN
Substantially all full -tire: Property Appraiser employees are participants in .
`the Florida ',Retirement .System ("The System"), a mul iple-employer costa
sharing public., retireih system. The. System, which is controlled` by the
_state Legislature andadministered by the State . of Florida, Department of
Administration, Division of tirem r p covers approximately 600A00 f l] -time
employees of various governmental units within the State of Florida.
The 'System .' ,
provides for vesting of benefits after 10 years of creditable
service. Normal retirement benefits are available to employees who retire t
or after age 62 with 10or more
,years of service: ...Early retirdmer�t is.available after 10 years of service with a 5% ,reduction of benefits for each
,year prior to normal retireMeInt age. Retirement benefits are based-upon-age.,
average compensation and years-of--service cred'it, where.avera e compensation is
computed as the average of individual 's five highest years of earnings,'
Employees ,ar6no"t required to contribute to the System.
The Property Appraiser has no responsibility to the System other than to make
the periodic payments required by state statutes. The Florida Division of
Retirement issues -a,- ,publicly, available financial r°eport :hat includes.
financial statements and required supplementary entary information for the- System.
The report may be obtained by writing to Florida Division of Retirement, 263
Monroe Street', Building C, Tallahassee, F 32399-1:560.
Participating employer . contributions' -, are based upon stateside °rates
established by the State, 'of Florida: These rates are applied to employee
salaries" as, follows. regblar. employees, 1.0:1:5% ' special risk employees,
21,.16t, and elected officials,, 17.99�. The Property Appraiser's contributIiores
made dgrin ,the ,years ended. September 30, °1. , 1.99 and 1997 sere $216,000,
235,400 and 231,30 , -respectively, equal' to the actuarially determined
contribution regpirments for each ,year.
NOTE 6 - DEFERRED COMPENSATION PLAN '
The Property Appraiser offers its 'employees a' deferred compensation plan;
created in accordance with Internal' Revenue Code Section 457. The plan®
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MONROE COUNTY. FLORIDA
<POPETY APP ISER
NOTES—TO FINANCIAL STATEMENTS
SEPI1ER 30, 1999
NOTE- 6 DEFERRED COMPENSATION PLAN (Continued)
available to all Property Appraiser' erployees, permits them to deferoa`portion
of their salary until future years. Participation in.,,the Plan is opti oraal m
The deferred compensation is not -available to employees ,until termination,
retirement, death, car unforeseeable emergencies'.
Federal l egi sl at,i,pn converted the Section '457, deferred compensation ,:assets
from' thb Property Appraiser assets .te employee assets, As a result cif ;these
changes, plan asses are no longer subject to the Claims of the Property
Appraisers general creditors.,
NOTE ,- LITIGATION
The .Property Appraiser is a defendant in. vari ous law '
ui is and is involved,- in'
other disputes v�herei substantial amounts are olaimed� n the-opinion of the
Property- Appraiser, these suits and claims "should not result in judgments or
settlements which, in aggregate, would have a material effect on the Property
Appraiser's financial position
NOTE 8 RISK MANAGEMENT
The Property Appraiser is exposed 'to various risks of loss related to tort;
theft of, damage to, and destruction of assets, errors and omissions; injuries
to employees; and natural disasters. The Property Appraiser participates in
the coverage provided by the Board of County Commissioners of Monroe County
for Workers .' Compensation; Group Insurance, and Risk Management internal
service funds, Under these programs— the Worker's Compensation Fund provides
0,000 coverage per claim for regular employees. The Group Insurance Fund
prdv.ides coverage 'up to ,000 for each medical claim.. Risk Management
provides ;. 1C ,000 for each general liability claim, and $100,000 for most
property damage claims. Windstorm, Flood and Property Damage' insurance, excess
coverage varies by individual , property. ' The County purchases commercial
insurance for claims in excess of co
verage provided by the funds an , for all
other risks of loss. Settled claims have not exceeded this commercial coverage
in any of the past three years. The Property Appraiser makes payments to �t e
Worker's Compensation, Group, Insurance and Risk Management Funds based on
estimates of the amounts needed to- pay prior and current ;year claims.
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Certified Public Accountants
1438 KENNEDY DRIVE -
P. O: X 1529
Wft E F KEY WIE T, FLORIDA 33041-1529 MEMBER OF E ICAN INSTITUTE 0. TE
MARlA E. REN,Cc.P,A ( 5) 294-2581 AND FLORIDA INSTITUTE OFX # (305) 294-4775 CERTIFIED PUBLIC ACCOUNTANTS
TNDEPENOENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL FZEORTING
Mr, Ervin H. Higgs
Property Appraiser
Monroe County, Florida
have audited, the firartcial statements of the Property Appraiser of Conroe
County, Florida Property Appraiser") as of and for the year ended September.
30 1999, and have i'sued our report thereon 'dated February 3, 2000, Wd
conducted our audit, in accordance, with generally accepted auditing standards
and the standards- applicable tee' financial .audits contained in Government
Auditing .Standards, issued by the Comptroller General of the United States.
Comp Lli arl
As part of obtaining reasonable assurance . about whether the Property
Appraiser's financial statements are free- of �raterial misstatement, we
performed tests of its compliance with certain provisions of lairs,
regulations, contracts and grants; noncompliance with Which could have a
direct and material effect on the- , determination of financial `statement
amounts. However, providing an opinion on compliance with those_proVisions was
not' an objective of our audit and 9 accordingly, e do not express s oh an
opi-hion. The results of our tests disclosed no instances of noncompliance that
are required to be reportedunder Government Auditing .Standards.
Internal Control Over Financial Re ortina
In planning, and performing our audits we considered the Property Appraiser's
internal. control over financial reporting in order to determine our auditing
procedures for the purpose of expressing ,our opinion on . the . financial.
statements and net to provide ,assurance on the internal control over financial
reporting. Our consideration of the internal control over financial'-reporting
would not necessarily disclose all matters in the internal control over
financial reporting that; might be latenial weaknesses A `material weakness is
a condition in which the deli gn or operation of one or more of.:the' internal
control components does not reduce to a relatively love level the risk- that
misstatements in amounts that would e material in relation,to the financial
statements being audited may occur and not be detected within a timely period
:II"
by employees in the normal course .of performing their assigned functions. We
noted no matters involving the internal control over financial reporting and
its, operation that we consider to be material weaknesses.
This report is intended for the information of management;' federal awarding
agencies and pass-through entities. However, this. report.-is a matter of public
record and its distribution`--ins not limited.
Kemp & Green, 'P.A.
Certified Public Accountants
February 3 2Q00
Y
12
KEMP & GREEN, P.A.
Certified Public Accountants
143E KENNEDY DRIVE-,,
R 0. BOX 1529
KEY WEST, FLORIDA 33041�1529 EMBER OF ERICAN INSTITUTE
M � P® C.P.A. (305) 294-25E1 AND FLORIDA INSTITUTE OF
ARi�A E.. REEN, C.P.A. FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' MANAGEMENT LETTER
-Mr, Ervin A, Higgs
Property Appraiser
Monroe County, Florida
In planning- and performing our audit of the financial statements of the
Property Appraiser of Monroe County, Florida (."Property Apprai 11 ser"), for the
y ar ended September 30,, 1999, we considered the Property Appraiser's internal
control in order to determine our auditing- procedures for the purpose of
expressing, our opinion''on the financial statements, Although our audit was
net designed to provide assurance on internal control and its 'operations, we
noted certain Matters involving internal control and its, operation, and are
submitting for your consideration related recommendations designed to help the
Property Appraiser Make improvements 'and achieve operational efficiencies.
Ou.- comments refiedt our desire to bd o eontirlufn -a si Carl e to the F?reparty
Appraiser,
e�orted i n Pr r Year`s Management .Letter Not Irrlp erllented
as of September 30, 1999
There were no recormendations and su ested aecountin 9g 9 procedures as outlined
ire the Management Utter .for the ,year ended September 30, 1998.
Current Year Findings '
None.
CTER EQI� RED DSLOtJRES
Marva Green was the Auditor irl,Charge for the audit of the Property Appraiser,
e attest that 'the. Auditor in Charge Met the educational requirements pursuant
td Chapter 11. 5, Florida Statutes;
The Property Appraiser was not in a state of financial emergency as described
in Florida Statutes„ Section 21 , 03(1).
13
e have reviewed the annual report filed with the Department of Banking and
Finance for, Monroe .County, Florida pursuant to Section218e32, Florida
Statutes This report is in agreement with the annual audit report which-
incorporates the financial statements of the Property Appraiser. _
Requirements relative to Public Rec&ds,.Modern"ization Trust money do ,not apply
to the Property Appraiser,
.This report, is intended solely for the information of the Board of County
Corm i ssibners a`nd others within the County, and officials of applicable'
federal and stag agencies. This restriction is not intended to limit the
distribution of this report, lwhic 'is a..matter`-of publi c record.
Kemp & Cream, Pe . '
Certified Public Accountant
�Februar°y 3. 2600,
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