Fiscal Year 2011I
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special -Purpose Financial Statements
For the Year Ended
September 30, 2011
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special -Purpose Financial Statements, Required Supplementary Information,
Other Financial Information, and Independent Auditors' Reports
For the Year Ended September 30, 2011
Table of Contents
Independent Auditors' Report ............................
SPECIAL-PURPOSE FINANCIAL STATEMENTS
Special -Purpose Balance Sheet - General Fund .............................................
Special -Purpose Statement of Revenues, Expenditures and Changes in
Fund Balance - General Fund ----------------------------------------------------------------.....------
Special-Purpose Statement of Fiduciary Assets and Liabilities -
AgencyFunds --------------------------------------------------------------------------------------------------------
Notes to Special -Purpose Financial Statements ..............
REQUIRED SUPPLEMENTARY INFORMATION
Paqe
2-3
4
5
6
7-13
Schedule of Revenues and Expenditures - Budget and Actual -
General Fund .....--------------- 14
OTHER SUPPLEMENTARY INFORMATION
AgencyFund Descriptions------------------------------------------------------------------------------------------- 15
Special -Purpose Combining Statement of Changes in Assets and
Liabilities - All Agency Funds----------------------------------------------------------------------------------- 16
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of the Special -Purpose Financial Statements Performed
in Accordance with Government Auditing Standards ......................................... 17 - 18
Independent Auditors' Management Letter .............................................................. 19 - 20
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INDEPENDENT AUDITORS' REPORT
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida
We have audited the accompanying special-purpose financial statements of the major fund and
the aggregate remaining fund information of the Monroe County, Florida Tax Collector (the "Tax
Collector') as of and for the year ended September 30, 2011, as listed in the table of contents.
These special-purpose financial statements are the responsibility of the Tax Collector's
management. Our responsibility is to express opinions on these special-purpose financial
statements based on our audit.
We conducted our audit in accordance with 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. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
special-purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the special-
purpose financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall special-
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinions.
As discussed in Note 1, the accompanying special-purpose financial statements were prepared
for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550,
Rules of the Auditor General -Local Governmental Entity Audits, and are not intended to be a
complete presentation of the financial position and changes in financial position of the Tax
Collector. Additionally, the special-purpose financial statements present only the Tax Collector
and are not intended to present fairly the financial position and changes in financial position of
Monroe County, Florida, taken as a whole.
In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of the major fund and the aggregate
remaining fund information of the Tax Collector as of September 30, 2011, and the respective
changes in financial position thereof for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
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In accordance with Government Auditing Standards, we have also issued our report dated
January 31, 2012 on our consideration of the Tax Collector's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, 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 internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be considered in assessing the results of our audit.
The budgetary comparison schedule on page 14 is not a required part of the special-purpose
financial statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and we express
no opinion on it.
Our audit was conducted for the purpose of forming opinions on the special-purpose financial
statements. The accompanying combining statement of changes in assets and liabilities — all
agency funds is presented for purposes of additional analysis and is not a required part of the
special-purpose financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the special-purpose financial statements and, in our opinion,
is fairly stated, in all material respects, in relation to the special-purpose financial statements
taken as a whole.
This report is intended solely for the information and use of the Tax Collector's management
and the Florida Auditor General, and is not intended to be and should not be used by anyone
other than these specified parties.
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Orlando, Florida
January 31, 2012
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SPECIAL-PURPOSE
FINANCIAL STATEMENTS
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special -Purpose Balance Sheet
General Fund
September 30, 2011
Assets
Cash and cash equivalents $ 3,510,361
Due from Board of County Commissioners 5,991
Due from other governments 5,210
Total Assets $ 3,521,562
Liabilities and Fund Balance
Liabilities
Accounts payable $ 31,477
Accrued wages and benefits payable 52,243
Due to Board of County Commissioners 3,127,987
Due to other governmental units 309,855
Total Liabilities 3,521,562
Fund Balance
Total Liabilities and Fund Balance
See notes to the special-purpose
financial statements. 4
$ 3,521,562
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special -Purpose Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2011
Revenues
Charges for services
Intergovernmental - Board of County Commissioners
Total revenue
Expenditures
General government
Personnel services
Operating expenditures
Capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses)
Transfers to Board of County Commissioners
Transfers to other governmental units
Total other financing sources (uses)
Excess of revenues over expenditures and other
financing uses
Fund balance at beginning of year
Fund balance at end of year
See notes to the special-purpose
financial statements. 5
$ 2,365,263
4,449,647
6,814,910
2,707,083
638,724
31,261
3,377,068
3,437,842
(3,127,987)
(309,855)
(3,437,842)
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special -Purpose Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2011
Assets
Cash and cash equivalents
Due from individuals
Total assets
Liabilities
Undistributed collections
Due to individuals
Total liabilities
See notes to the special-purpose
financial statements.
L
$ 5,755,062
3,849
$ 5,758,911
$ 5,736,821
22,090
$ 5,758,911
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 1 - Summary of significant accounting policies
Reporting Entity
separately elected
of Florida. The
financial position o
taken as a whole.
— The Monroe County, Florida Tax Collector (the "Tax Collector") is a
county official established pursuant to the Constitution of the State
Tax Collector's financial statements do not purport to reflect the
r the results of operations of Monroe County, Florida (the "County")
Entity status for financial reporting purposes is governed by Statements No. 14, as
amended by Statement No. 39, of the Governmental Accounting Standards Board
(GASB). Although the Tax Collector's Office is operationally autonomous, it does not
hold sufficient corporate powers of its own to be considered a legally separate entity for
financial reporting purposes. Therefore, the Tax Collector is reported as a part of the
primary government of the County.
Description of Funds — The accounting records are organized for reporting purposes
on the basis of a governmental fund and fiduciary funds.
General Fund — The General Fund is used to account for all revenues and
expenditures applicable to the general operations of the Tax Collector that are
not required legally or by accounting principles generally accepted in the United
States of America to be accounted for in another fund.
Fiduciary Funds — Fiduciary funds of the Tax Collector are Agency Funds, which
are used to account for assets held by the Tax Collector as an agent.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation -
The Tax Collector's special-purpose financial statements are prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the
Auditor General for Local Governmental Entity Audits (the "Rules"), which requires the
Tax Collector to only present fund financial statements. In conformity with the Rules,
the Tax Collector has not presented the government -wide financial statements, related
disclosures or management's discussion and analysis, which are required to present a
complete presentation of its financial position and changes in financial position.
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 1 - Summary of significant accounting policies (continued)
The General Fund is used to account for all revenues and expenditures applicable to
the general operations of the Tax Collector. This fund is presented as a major
governmental fund and uses the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized when measurable
and available. Revenues are considered to be available when they are collectible within
the current period or soon enough thereafter to pay liabilities of the current period. For
this purpose, the Tax Collector considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However,
expenditures related to compensated absences and claims and judgments are
recorded only when payment is due.
The extent to which General Fund revenues exceed General Fund expenditures is
reflected as transfers out and as liabilities to the Monroe County Board of County
Commissioners (the "Board") and other governmental agencies in the same proportion
as fees paid by each governmental unit to total fees earned by the Tax Collector.
The Tax Collector reports the General Fund as a major governmental fund and agency
funds as a fiduciary fund type. Agency funds are custodial in nature and do not involve
measurement of results of operations.
Budgetary Requirements — Expenditures are controlled by budget appropriations in
accordance with the budget requirements set forth in the Florida Statutes. The budget
is prepared on a basis consistent with accounting principles generally accepted in the
United States of America.
Cash and Cash Equivalents — The Tax Collector's cash and cash equivalents consist
of demand deposits and highly liquid investments with maturities of 90 days or less
when purchased. All investments are reported at fair value.
Capital Assets — Tangible personal property used in the Tax Collector's operations are
recorded as expenditures in the General Fund at the time assets are received and a
liability is incurred. Purchased assets are capitalized at historical cost in the
government -wide financial statements of the County. In addition, the Board provides
administrative office space used by the Tax Collector at no charge.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 1 - Summary of significant accounting policies (continued)
Compensated Absences — The Tax Collector permits employees to accumulate
earned but unused vacation and sick pay benefits. A summary of activity for the Tax
Collector's compensated absences obligation is as follows:
Balance, October 1, 2010 $131,274
Additions 201,758
Deletions 20( 3,393)
Balance, September 30, 2011 129 639
Use of Estimates - The preparation of financial statements requires management to
make use of estimates that affect reported amounts. Actual results could differ from
estimates.
Note 2 — Deposits and Investments
As of September 30, 2011, the Tax Collector has demand deposits with a carrying
amount of $9,255,598, a bank balance of $9,365,946, and petty cash funds of $9,825.
The Tax Collector places its cash and cash equivalents on deposit with financial
institutions in the United States. The Federal Deposit Insurance Corporation (FDIC)
covers $250,000 for substantially all depository accounts. The Tax Collector 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 institution
pool with the ability to assess its members for collateral if a member institution fails.
Florida Statutes and the Tax Collector's investment policy authorize investments in
certificates of deposit, savings accounts, repurchase agreements, Local Government
Surplus Funds Trust Fund administered by the Florida State Board of Administration,
money market funds, direct obligations of the U.S. Treasury and federal agencies and
instrumentalities.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 3 — Retirement System
Plan description — Substantially all full-time Tax Collector employees participate in the
Florida Retirement System ("FRS"), administered by the Florida Department of
Management Services. Employees elect to participate in either the defined benefit plan
("Pension Plan"), a multiple -employer; cost sharing public employee defined benefit
retirement plan, or the defined contribution plan ("Investment Plan") under the FRS.
FRS provides retirement benefit, disability benefits, annual cost -of -living adjustments,
and death benefits to Pension Plan members and beneficiaries of various governmental
units within the State of Florida. Benefits are established by Chapter 121, Florida
Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can
be made only by Act of the Florida legislature.
For employees hired before July 1, 2011 and enrolled in the Pension Plan, the FRS
provides for vesting of benefits after 6 years of credited service. Normal Pension Plan
retirement benefits are available to employees who retire at or after age 62 with 6 or
more years of service or after 30 years if under age 62. Benefits are also based on the
5 highest state fiscal years of compensation earned during covered employment. For
employees hired July 1, 2011 and thereafter enrolled in the Pension Plan, the FRS
provides for vesting of benefits after 8 years of credited service. Normal retirement
benefits are available to employees who retire at or after age 65 with 8 or more years of
service or after 33 years if under age 65. Benefits are also based on the 8 highest state
fiscal years of compensation earned during covered employment. Pension Plan
retirement benefits for all employees are based on age, average compensation and
years -of -service credit. Early retirement is available after 6 years of service with a 5%
reduction in benefits for each year prior to the normal retirement age.
In addition to the above benefits, the FRS administers a Deferred Retirement Option
Program ("DROP"). This program allows eligible employees to defer receipt of monthly
retirement benefit payments while continuing employment with a 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.
For employees electing to participate in the Investment Plan rather than the Pension
Plan, vesting occurs at one year of service. These participants receive a contribution of
self -direction in an investment product with a third party administrator selected by the
State Board of Administration. Investment accounts may be withdrawn by the employee
90 days after termination or retirement.
The Florida Division of Retirement issues a publicly available financial report that
includes financial statements and required supplementary information for the FRS. The
report may be obtained by writing to the State of Florida Division of Retirement,
Department of Management Services, PO Box 9000, Tallahassee, FL 32315-9000, or
from the website www.frs.state.fl.us.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 3 — Retirement System (continued)
Funding policy - The FRS was noncontributory for Pension Plan and Investment Plan
members until June 30, 2011. As of July 1, 2011 all members, with the exception of
Deferred Retirement Option Program (DROP) members and re-employed retirees,
contribute 3% of their eligible wages. Participating employer contributions are based
upon state-wide rates established by the State of Florida on an annual basis effective
each July 1. The rates applied to employee salaries effective as of July 1, 2011 are as
follows: regular employees, 4.91 %, special risk employees, 14.10%, special risk
administrative support, 6.04%; elected officials, 11.14%, senior management 6.27%,
and DROP participants 4.42%. The Tax Collector contributed to the plan an amount
equal to 9.57% of covered payroll during the fiscal year ended September 30, 2011.
The Tax Collector's contributions made during the years ended September 30, 2011,
2010, and 2009 were $221,225, $255,448, and $249,060, respectively, equal to the
required contributions for each year.
The Tax Collector has historically contributed amounts equal to required contributions
and, therefore, does not have a pension asset or liability as determined in accordance
with GASB Statement No. 27.
Note 4 — Other Postemployment Benefits (OPEB) Plan
The Monroe County Board of County Commissioners (BOCC) administers a single -
employer defined benefits healthcare plan (the "Plan"). Florida Statutes 112.0801
requires the County to provide retirees and their eligible dependents with the option to
participate in the Plan if the County provides health insurance to its active employees
and their eligible dependents. The Plan provides medical coverage and prescription
drug benefits to both active and eligible retired employees. The Plan does not issue a
publicly available financial report.
The BOCC 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 BOCC approves the rates for the
coming calendar year for the retiree and County contributions.
Eligibility for post employment participation in the Plan is limited to full time employees
of the County, and the Constitutional Officers. Employees who retire as an active
participant 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
BOCC. Employees who retire as an active participant in the plan, were hired before
October 1, 2001, have at least ten years of full time service with the County, and meet
the retirement criteria of the Florida Retirement System (FRS) may continue to
participate in the Plan at a cost equal to the FRS Health Insurance Subsidy for ten
years of service (currently $5 per month for each year of service credit at retirement or
$50 per month).
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 4 — Other Postemployment Benefits (OPEB) Plan (continued)
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 equal to the FRS Health Insurance Subsidy.
Surviving spouses and dependents of participating retirees may continue in the plan if
eligibility criteria specific to those classes are met.
The BOCC engages an actuarial firm on a biannual basis to determine the County's
actuarially determined annual required contribution and unfunded obligation. The Tax
Collector has no responsibility to the Plan other than to make the periodic payments
determined by the BOCC. Further information about the Plan is available in the
County's Comprehensive Annual Financial Report which is published on the Clerk's
website at www. clerk-of-the-court.com.
Note 5 — Risk Management
The Tax Collector 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 Tax Collector participates in the coverage provided by the Board for
Workers' Compensation, Group Insurance, and Risk Management internal service
funds. Under these programs, the 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 cost of the
buildings with a deductible of $50,000. Deductibles for windstorm and flood vary by
location. Monroe 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 Tax Collector
participates in the Workers' Compensation, Group Insurance and Risk Management
Funds based on estimates of the amounts needed to pay prior and current year claims.
Note 6 — Commitments
Operating Leases — The Tax Collector leases office space and equipment under
operating lease agreements. Total lease payments made in 2011 were $88,459.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Notes to Special -Purpose Financial Statements
Year Ended September 30, 2011
Note 6 — Commitments (continued)
The following is a schedule by years of future minimum rentals under noncancelable
operating leases as of September 30, 2011:
Year Ending Lease
September 30 Payments
2012
$ 79,844
2013
52,833
2014
45,437
2015
42,789
Total
$ 220,903
Note 7 — Litigation
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The Tax Collector is a party from time to time in various lawsuits and other claims
incidental to the ordinary course of its operation, some of which are covered by the
Board's self-insurance program. While the results of litigation cannot be predicted with
certainty, management believes the final outcome of such litigation will not have a
material adverse effect on the Tax Collector's financial position.
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REQUIRED SUPPLEMENTARY INFORMATION
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Schedule of Revenues and Expenditures
Budget and Actual - General Fund
Year Ended September 30, 2011
General Fund
Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Charges for services
$ 2,165,646 $
2,165,646
$ 2,365,263 $
199,617
Intergovernmental - Board of County Commissioners
4,569,054
4,569,054
4,449,647
(119,407)
Total revenue
6,734,700
6,734,700
6,814,910
80,210
Expenditures
General government
Personnel services
2,947,351
2,927,357
2,707,083
220,274
Operating expenditures
651,411
640,144
638,724
1,420
Capital outlay
-
31,261
31,261
-
Total expenditures
3,598,762
3,598,762
3,377,068
221,694
Excess of revenues over expenditures
3,135,938
3,135,938
3,437,842
301,904
Other financing sources (uses)
Transfer to Board of County Commissioners
(7,704,992)
(7,704,992)
(3,127,987)
4,577,005
Transfer to other governmental units
-
(309,855)
(309,855)
Total other financing sources (uses)
(7,704,992)
(7,704,992)
(3,437,842)
4,267,150
Excess of revenues over expenditures and other
financing sources (uses)
$ (4,569,054) $
(4,569,054)
$ $
4,569,054
0
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OTHER SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
TAX COLLECTOR
Agency Fund Descriptions
The Combining Statement of Changes in Assets and Liabilities —All Agency Funds is
presented on the following page. The purpose of each fund shown on this statement is
described below.
Property Tax Agency Fund — To account for the collection and distribution of local
property tax funds.
Licenses Agency Fund — To account for the collection and distribution of funds
generated from the sale of miscellaneous state licenses.
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MONROE COUNTY, FLORIDA
TAX COLLECTOR
Special -Purpose Combining Statement of Changes in Assets and Liabilities
All Agency Funds
Year Ended September 30, 2011
Balance
September 30,
2010
Additions Deletions
Balance
September 30,
2011
Property Tax Agency Fund
Assets
Cash and cash equivalents
$
5,338,834
$
273,368,046
$
273,122,275
$
5,584,605
Due from individuals
60
45,660
45,690
30
$
5,338,894
$
273,413,706
$
273,167,965
$
5,584,635
Liabilities
Undistributed collections
$
5,318,561
$
258,065,116
$
257,818,707
$
5,564,970
Due to individuals
20,333
15,348,590
15,349,258
19,665
$
5,338,894
$
273,413,706
$
273,167,965
$
5,584,635
Licenses Agency Fund
Assets
Cash and cash equivalents
$
155,728
$
13,917,692
$
13,902,963
$
170,457
Due from individuals
2,314
1,505
-
3,819
$
158,042
$
13,919,197
$
13,902,963
$
174,276
Liabilities
Undistributed collections
$
156,379
$
13,897,112
$
13,881,640
$
171,851
Due to individuals
1,663
22,085
21,323
2,425
$
158,042
$
13,919,197
$
13,902,963
$
174,276
Total - All Agency Funds
Assets
Cash and cash equivalents $ 5,494,562 $ 287,285,738 $ 287,025,238 $ 5,755,062
Due from individuals 2,374 47,165 45,690 3,849
$ 5,496,936 $ 287,332,903 $ 287,070,928 $ 5,758,911
Liabilities
Undistributed collections $ 5,474,940 $ 271,962,228 $ 271,700,347 $ 5,736,821
Due to individuals 21,996 15,370,675 15,370,581 22,090
$ 5,496,936 $ 287,332,903 $ 287,070,928 $ 5,758,911
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SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF SPECIAL-PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the special-purpose financial statements of the major fund and the aggregate
remaining fund information of the Monroe County, Florida Tax Collector (the "Tax Collector") as
of and for the year ended September 30, 2011, which collectively comprise the Tax Collector's
special-purpose financial statements, and have issued our report thereon dated January 31,
2012 for the purpose of compliance with Section 218.39(2), Florida Statutes and Chapter
10.550, Rules of the Auditor General -Local Governmental Entity Audits. We conducted our audit
in accordance with 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.
Internal Control over Financial Reporting
Management of the Tax Collector is responsible for establishing and maintaining effective
internal control over financial reporting. In planning and performing our audit, we considered the
Tax Collector's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinion on the special-purpose financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax
Collector's internal control over financial reporting. Accordingly, we do not express an opinion
on the effectiveness of the Tax Collector's internal control over financial reporting.
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 Tax Collector's special-purpose financial
statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies
in internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
17
h
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's special-purpose
financial statements are free of 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 determination of special-purpose
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Tax Collector's management,
others within the organization and applicable state agencies, and the Florida Auditor General,
and is not intended to be and should not be used by anyone other than these specified parties.
Orlando, Florida
January 31, 2012
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INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Danise D. Henriquez,
Tax Collector of Monroe County, Florida:
We have audited the special-purpose financial statements of the major fund and the aggregate
remaining fund information of the Monroe County, Florida Tax Collector (the "Tax Collector"), as
of and for the year ended September 30, 2011, and have issued our report thereon dated
January 31, 2012.
We conducted our audit in accordance with 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. We have issued
our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Special -Purpose Financial Statements
Performed in Accordance with Government Auditing Standards. Disclosures in this report, dated
January 31, 2012, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General -Local Governmental Entity Audits, which govern the conduct of local government entity
audits performed in the State of Florida. This letter includes the following information, which is
not included in the aforementioned auditors' report.
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 report. No recommendations were made in the preceding annual
financial audit report.
Section 10.554(1)(i)2, Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit of the special-purpose financial statements of the Tax Collector,
nothing came to our attention that could cause us to believe that the Tax Collector was in
noncompliance with Section 218.415 regarding the investment of public funds.
Section 10.554(1)(i)3, 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.
Section 10.554(1)(i)4, Rules of the Auditor General, requires that we address violations of
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the special-purpose financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such
findings.
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Section 10.554(1)(i)5, Rules of the Auditor General, provides that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on
financial statements, considering both quantitative and qualitative factors: (1) violations of
provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in
internal control that are not significant deficiencies. In connection with our audit, we did not have
any such findings.
Section 10.554(1)(i)6, 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 special-purpose
financial statements. The Tax Collector is a separately elected county official established
pursuant to the Constitution of the State of Florida. There are no component units related to the
Tax Collector.
This letter is intended solely for the information and use of the Tax Collector's management and
the Florida Auditor General, and is not intended to be and should not be used by anyone other
than these specified parties.
Orlando, Florida
January 31, 2012
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