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Fiscal Year 1994 MONROE COUNTY FLORIDA PROPERTY APPRAISER FINANCIAL STATEMENTS SEPTEMBER 30. 1994 KEMP & GREEN, P.A. CERTIFIED PUBLIC ACCOUNTANTS CONTENTS Page Independent Auditors' Report 1 Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 2 Statement of Revenues, Expenditures, and Changes in Fund Balance - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) General Fund Notes to Financial Statements - Supplemental Information: Combining Statement of Changes in Assets and viabilities Agency Fund 1 Other Reports Independent Auditors' Report on the Internal Control Structure and Management Comments 11-1 Independent Auditors' Report on Compliancy 1 Certified Public P.A. 1435 KEN E Y DRIVE P. 0. BOX 1529 WM- 0. KEMP, C.P.A. KEY WEST, FLORIDA 3304 1-1 529 MEMBER OF AMERICAN INSTITUTE MARVA E. GREEN, C,P.A. ( 5) 294-25 1 AND FLORIDA INSTITUTE OF INDEPENDENT AUDITORS' REPORT FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS Mr. Ervin H. Higgs Property Appraiser Monroe County, Florida We have audited the financial statements of the Property Appraiser of Monroe County, Florida ("Property Appraiser") as of September 30, 1994 and for the ,year then ended, as listed in the accompanying table of contents. These financial statements are the responsibility of the Property Appraiser. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditin Standards, issued by the Comptroller General of the United States. These standards require that e plan and perform the audit to Material misstatement obtain reasonable assurance about Whether the financial statements are free of . n audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates rude by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1, the financial statements present only the Property Appraiser and are not intended to present fairly the financial position of Monroe County, Florida and the results of operations and cash flows of its proprietary fund types and none pendable trust funds in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all Material respects, the financial position of the Property Appraiser as of September 3 , 1994, and the results of its operations for the year then ended in conformity With generally accepted accounting principles. Our audit was made for® the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information listed in the accompanying table of contents, which is also the responsibility of the management of the Property Appraiser, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing of the financial statements and, in our opinion socedures farly stated n al lalied inthe mnateaudit ral respects when considered in relation to the financial statements taken as a whole. Kemp & Green, P.A. Certified Public Accountants February 24, 19 -1- MONROE COUNTY FLORIDA =RQPER��V�A��P6 H��r 1EPTEM6ER 30, 1994 Governmental Fiduciary Account Fund ree EUng—T-N-2 -_ Grew_P_ Totals _General Aagncy_ Long-Term (Memoran- Qebt -42L only) Assets: Cash and Investments $ 49,176 $ 366,683 $ Prepaid Expenses 36,082 - $ 415,859 Amount to be Provided - 4 70 36,082 --1-0-0.,4 70 Total Assets I5 258 1--256,683 0,4 7 0 Liabilities: Accounts Payable $ 27,310 $ Accrued Wages 16,73 $ $ 27,310 Due to Other Governments 6,$117 - 16,733 Due to Individuals - 6,117 Long-Term Debt 366,683 366,683 ------z— _100.470 ___1_0_0_..,_4 70 Total Liabilities _50, 1_60 366,683 _10-0,4 70 _517,313 Fund Balance 35.098 _ 3 5-,-0 9_8 Total Liabilities and Fund Balance 2 5 8 ,683 1-00 470 j_j§=2 The accompanying notes are an integral part of these financial statements. -2- ONROE COUNTY FLORIDA PROPERTY RPPRRISER STATEMENT OF RE EN��ES E PENDITRIRE RND CHANGES IN FUND aA__ANCE GENERAL FEND FOR THE YEAR ENDED EPTFiEER 30 194 Revenues: Board of County Commissioners Other Taxing Districts 1,662,71 Charges for Service 291,326 Other 2 Total Revenues 13 9 1 67 652 Expenditures: Current General Government: Personal Services Operating Expenses 1,435,390 Capital outlay 489,613 Total Expenditures 4 972 Excess of Expenditures Over Revenues 14 7 z975 Find Balance, Beginning of Year (3,33 Fund Balance, End of Year 3 421 35 09 The accompanying notes are an integral part of these financial statements -3- MONROE COUNTY FLORIDA PROPERTY_APPRAISER STATEMENT OF REVENUES AND EXPENDITURES AND CHANGES IN FUND BALANCE _ BUDGET AND ACTUAL BUDGETARY 8ASI5 _ GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 301994 Actual Variance Revenues: ----Bgdget (Budgetary Favorable Basis—J-- (Unfavorable) Board of County Commissioners $ 1,627,507 $ 1,662,781 Other Taxing Districts 363,627 291326 $ 35,274 Charges for Service - , (72,301) Miscellaneous ----1_3 52 52 ,493 93 Total Revenues 1 9 9_1.134 1,967,652 ---J3 4 482) Expenditures: Current: General Government: Personal Services 1,449,131 1,472,738 Operating Expenses 496,030 460,433 (23,607) Capital Outlay 35,597 ----45..973 972 1 Total Expenditures —1,9-91..134 1,979J43 11_,_gg1 Excess of Expenditures Over Revenues, Budgetary Basis of Accounting (11,491) (11,491) Adjustments: To Adjust Expenditures for Accruals 8 168 168 Excess of Revenues Over Expenditures, GAAP Basis of Accounting (3,323) (3,323) Fund Balance, Beginning of Year 38 421 ----------=-=�-� 38,41 Fund Balance, End of Year 1—�38421 L 3 5 098 1=__L3 323) The accompanying notes are an integral part Of these financial statements® -4- MONROE COUNTY FLORIDA PROPERTY OP�WV�C _ NOTES_ToFINANCIAL STATEMENTS SEPTEMBER 30._1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting principles and Policies used in the preparation of these financial statements. eo®r�inEhtit - The Property Appraiser of Monroe County, Florida ("Property Appraiser") is a separate Constitutional Officer as provided by the laws of the State of Florida. For financial reporting purposes, it is deemed to be a part of the County's primary government, and therefore is included as such in the Monroe County Comprehensive Annual Financial Report. Basis of Presentation - These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board. The Property Appraiser utilizes the following fund types and account groups: Governmental Fund Type: The General Fund - This fund is used to account for all revenue and expendi- able to the general operations of the Property Appraiser that are 1—ur—es not required either legally or by generally accepted accounting principles to be accounted for in another fund. Fiduciary Fund Type: The_!99RLZFund - This fund is custodial in nature and does not involve measurements of results of operations (assets equal liabilities) . The Agency Fund is merely a clearing account for assets held by the Property Appraiser as an agent for individuals, private organizations, other governments, or other funds. Account Group: General Lon -Term Debt Account Group account fo - This account group is established to r the long-term debt of the Property Appraiser financed from governmental funds. �sis ofAcc�ounti_h - The modified accrual basis Of accounting is followed by the General Fund. Under the modified accrual basis Of accounting, revenues are recorded when received or when susceptible to accrual, that is, measurable and available to finance the Property Appraiser's operations. Expenditures are recorded when the liability is incurred except for accumulated sick pay and vacation pay which is not recorded as an expenditure. Budgets are prepared on the cash basis. MONROE COUNTY FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 1994 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Bu �etary Reouire�en t - Expenditures are controlled y appropriations in accordance with the budget requirements set forth in the Florida Statutes. The budgeted revenues and expenditures in the accompanying financial statements reflect all approved amendments General Fixed Assets - The tangible per property used y the Property Appraiser in its operations is shown in the General Fixed Assets Account Group of the Board of County Co n addition, the office space and certain other expenditure hers used in the Property Appraiser's operations are prod ded at no cost by the Board of County Commissioners. Undistributed Excess Fees - Florida Statutes provide that assessed fee revenue collected by the Property Appraiser in excess of expenditures shall be retained and applied to next years operating costs. The mount of undistributed excess fees at the end of each year applicable to the Board o County Commissioners of Monroe County is reported as fund balance. orr2 en sate Absences - The Property Appraisers olio y grants leave and sick leave in varying amounts. Upon termination ofemployees eloarnenal employees with six me or more o credited service can receive payment for accumulated annual leave In general , sic leave ter�nlnation of employment to employees with five payments are granted upon service. The max"mum payment is subject to years or more of credited mum hour limitations. Accumulated sick leave is accrued toe the nextent that suces and h mounts would normally be liquidated with expendable available financial resources. The remaining liability is reflected in the General Long-Term Account Group. Total Col urns on Cor fined Statements - The column entitled "Totals (Memorandum 0n1y� of this report is included for informational column is not cor arable to consolidated financial information, as This e basic reporting entity 1s y 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 included in this column. NOTE 2 - CASH AND INVESTMENTS Cash and investments at September 30, 14 consist of the following. Demand Deposits 4 ,176 Deferred Compensation Plan Investments (at Market Value) 366 6B3 $ 15 B59 -6- MONROE COUNTY FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30m 194 NOTE 2 - CASH AND INVESTMENTS (Continued) Demand and time deposits are fully insured in accordance with Florida Statute 280, which established the multiple financial institution collateral pool . Deferred compensation fund investments are uninsured and unregistered with securities held by another entity which are not in the Property Appraiser's name NOTE 3 - LONG-TERM DEBT The following is a summary of changes in long-term debt for the year ended September 3 , 1994. Accrued Compensated Absences Long Terra Debt, Beginning of Year $ 82,239 Debt Issued 2 31 Long Term Debt, End of Year 100 470 NOTE 4 - LEASE OBLIGATIONS The Property Appraiser pays rent under cancelable operating leases for office equipment. Rental expense for the current year amounted to $ 8,5 9. NOTE 5 - RETIREMENT PLAN Substantially all full-tune Property Appraiser employees are participants in the Florida Retirement System ( ®The System' , a multiple-employer, cost-sharing public retirement system. The System, which is controlled by the State Legislature and administered by the State of Florida, Department of Administration, Division of Retirement, covers approximately 5 , 00 full-tune employees of various governmental units within the State of Florida® The System provides for vesting of benefits after 10 years of creditable service. Normal retirement benefits are available to employees who retire at or after age 2 with 10 or more years of service. Early retirement is mailable after 1 years of service with a reduction of benefits for each year prior to normal retirement age. Retirement benefits are based upon age, average compensation and years-of-service credit where average compensation is computed as the average of an in ivi ual 's five highest years of earnings® -7- MONROE COUNTY FLORIDA PROPERTY NOTES TO FINANCIAL STATES SEPTEMBER 30. 1994 NOTE 5 - RETIREMENT PLAN (Continued) The Property Appraiser has no responsibility to the System other than to make the periodic payments required by State Statutes. Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is presented in the System's June 30, 1993 Comprehensive Annual Financial Report. The amount reported below as "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to assist users in assessing the plan's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among government pension plans and employers. The System does not conduct separate measurements of assets and pension benefit obligations for individual employers. The pension benefits obligation at June 30, 1993 for the System as a whole, determined through an actuarial valuation performed as of that date, was $39.7 billion. The System's net assets available for benefits on that date (valued at market) were $29.1 billion, resulting in an unfunded pension benefit obligation of $10.6 billion. Participating employer contributions are based upon state-wide rates established by the State of Florida. These rates are applied to employee salaries as follows: regular employees, 17.10%; and elected officials, 26.07%. There are no employee contributions to the Plan. The Property Appraiser's contributions of approximately $213,000 made during the year ended September 30, 1994 were made in accordance with contribution requirements determined by the actuarial valuation of the System as of June 30, 1993. These contributions represented approximately .008% of total contributions required of all participating employers during the fiscal year of the System ended June 30, 1994. Total payroll for Property Appraiser's employees during the fiscal year ended September 30, 1994 was approximately $1,135,000, with the portion attributed to employees covered by the System being $1,130,000. The contribution to the System for the year was 18.85% of total payroll . There were no changes in actuarial assumptions, benefit provisions, actuarial funding methods or any other significant factors that affected the Property Appraiser's contribution during the fiscal year ended September 30, 1994. -8- MONROE COUNTY FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL. STATEMENTS SEPTEMRER 3 1994 NOTE 5 - DEFERRED COMPENSATION PLAN ............. The Property Appraiser offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Property Appraiser employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergencies. All mounts of compensation deferred under the plan, all property and rights purchased with those mounts, and all income attributable to those amounts, property or rights are (until paid or rude mailable to the employee or other beneficiary) solely the property and rights of the Property Appraiser (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Property Appraiser's general creditors. Participants' rights under the plan are equal to those of general creditors of the Property Appraiser in an amount equal to the fair market value of the deferred account for each participant. The Property Appraiser has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Property Appraiser believes that it is unlikely that the assets will be used to satisfy the claims of general creditors in the future. NOTE 7 - LITIGATION The Property Appraiser is a defendant in various lawsuits and is involved in other disputes wherein substantial amounts are claimed. In the opinion of the Property Appraiser, these suits and claims should not result in judgements or settlements which, in aggregate, would have a material effect on the Property Appraiser's financial position, -9- MO ROE COUNTY FLORIDA PROPERI� APPRAISER CORIIC STI"E6E �' F CACES � ASSE 'S APED �,.IARIEI�IES - AEC� FOR THE YEAR ENDED SEPTE BER 0 1994 DEFERRED Balance, Balance, C PE A ION FU D 199 Additions_ D d tions 1 9 Assets Cash and Investments 5456 71 674 _, 9 661 683 Liabilities: Due to Individuals 35 ffi5 0 7l 6 7 4 ±0,559 6 g6 83 -10- KEMP & GREEN, P.A. Certified Public Accountants 1438 KEN NE DRIVE P. O, BOX 1529 Wlad. 0. K .P.A. KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE MARVA E. GREEN, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE AND MANAGEMENT COMMENTS Mr. Ervin A. Higgs Property Appraiser Monroe County, Florida We have audited the financial statements of the Property Appraiser of Monroe County, Florida, ("Property Appraiser") for the year ended September 30, 1994, and have issued our report thereon dated February 24, 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Auditin i Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In planning and performing our audit of the financial statements of the Property Appraiser for the year ended September 30, 1994, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the Property Appraiser is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure Policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles® Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation Of Policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control Policies and procedures in the following categories: - Revenues/Cash Receipts - Expenditures/Cash Disbursements - External Financial Reporting - Payroll/Personnel - Controls Used in Administering Compliance with Laws and Regulations General and Specific -11- For all of the control categories listed previously, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in mounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. MANAGEMENT COMMENTS Our report on Internal Accounting Control has been presented in the previous section of this report. The purpose of this section is to disclose conditions which do not materially affect the Property Appraisers financial statements, and o disclose other items as required by the Rules of the Auditor Gene ral of Florida. The following comments and recommendations are made toassisttate the Property Appraiser in administering future operations. e orte in Prior Years e ort on Internal Control Structure and ana event Coents Not I leented as of Spteer 0 19 There were no recommendations and suggested accounting in the Management Comments section of the Report on Internal Conti l rocedures Structure and Management Comments for the year ended September 30, 1993. Current Year Fininos Public e ositor Annual n�r� Observation. The Property Appraiser did not timely file the Public Depositor Annual Report, required by Florida Statutes, Section 2 .17(3), which verifies that all public funds are being held by a qualified public depository. This report is filed to prevent losses from the default or insolvency of a public depository. Recommendation: The above referenced report should be filed with the Office of the Treasurer by the deadline. -12- OTHER REQUIRED DISCLOSURES We have reviewed the annual report filed with the Department of Banking and Finance for Monroe County, Florida pursuant to Section 218.32, Florida Statutes. This report is in agreement with the annual audit report which 'Incorporates the financial statements of the Property Appraiser of Monroe County, Florida. Marva Green was the Auditor in Charge for the audit of the Property Appraiser. We attest that the Auditor in Charge met the educational requirements pursuant to Chapter 11.45, Florida Statutes. The Property Appraiser was not in a state of financial emergency as described in Florida Statutes, Section 21Bm0 (1) ® This report is intended for the information of the Board of County Commissioners, management and others within the County, and officials of applicable federal and state agencies. This restriction is not intended to limit the distribution of this report, which is a matter of public record. PA- Kemp & Green, P.A. Certified Public Accountants February 24, 1995 -13- KEMP & GREEN, P.A. Certified Public Accountants 1438 KENNEDY DRIVE P, 0. BOX 1529 Wes. 0, KEMP, C.P.A. KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE MARVA E. GREEN, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS Mr. Ervin A. Higgs Property Appraiser Monroe County, Florida We have audited the financial statements of the Property Appraiser of Monroe County, Florida ("Property Appraiser"), as of and for the year ended September 30, 1994 and have issued our report thereon dated February 24, 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Au Standards, issued by the Comptroller General of the United States. Those lIisl'li-a-n-d-'Ird—� require that we plan and perform to obtain reasonable assurance about whether the financial statementsthe areaudit free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Property Appraiser is the responsibility of the Property Appraiser's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Property Appraiser's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the Property Appraiser complied in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Property Appraiser had not complied, in all material respects, with those provisions. This report is intended for the information of the Board of County Commissioners management and others within the County, and officials of applicable federal and state agencies. This restriction is not intended to limit the distribution of this report, which is a matter of public record. if Kemp & Green, P.A. Certified Public Accountants February 24, 1995 -14-