Fiscal Year 2017MONROE COUNTY, FLORIDA
SCHEDULE OF ACTIVITY OF THE LANDFILL
CLOSURE AND LONG-TERM CARE ESCROW
ACCOUNT
Year Ended September 30, 2017
And Report of Independent Auditor
MONROE COUNTY, FLORIDA
TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITOR
FINANCIAL STATEMENTS
1-2
Schedule of Activity of the Landfill Closure and Long -Term Care Escrow Account............................................3
Notes to Schedule of Activity of the Landfill Closure and Long -Term Care Escrow Account ..........................4-5
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Cherry Bekae
Report of Independent Auditor
To the Honorable Mayor and Board of County Commissioners
of Monroe County, Florida
Report of the Schedule
We have audited the accompanying Schedule of Activity of the Landfill Closure and Long -Term Care Escrow
Account (the "Schedule") of the Monroe County, Florida Municipal Service District Waste Fund (the "Fund") for
the year ended September 30, 2017, and the related notes to the schedule.
Management's Responsibility for the Schedule
Management is responsible for the preparation and fair presentation of the Schedule in accordance with the
financial reporting provisions of Section 62-701.630 of the Florida Administrative Code, which is a
comprehensive basis of accounting other than accounting principles generally accepted in the United States of
America, as more fully described in Note 2. Management is also responsible for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of the Schedule that is free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on the Schedule based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the Schedule is free
of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Schedule. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the Schedule, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation and fair presentation of the Schedule 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 entity's internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the Schedule.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the Schedule referred to above presents fairly, in all material respects, the cash receipts and
disbursements of the Schedule described in Note 2.
Emphasis of Matter
Basis of Presentation
We draw attention to Note 2 to the Schedule, which describes that the accompanying Schedule was prepared
for the purpose of complying with Section 62-701.630 of the Florida Administrative Code, and is not intended to
present the financial position or results of operations of the Fund.
Restriction on Use
This report is intended solely for the information and use of management, the County Mayor and the Board of
County Commissioners of Monroe County, Florida, and the State of Florida Department of Environmental
Protection and is not intended to be and should not be used by anyone other than these specified parties.
Orlando, Florida
March 27, 2018
2
MONROE COUNTY, FLORIDA
SCHEDULE OF ACTIVITY OF THE LANDFILL CLOSURE AND
LONG-TERM CARE ESCROW ACCOUNT
YEAR ENDED SEPTEMBER 30, 2017
Balance, September 30, 2016
Plus deposits:
Investment income
Additional funding per DEP requirements
Balance, September 30, 2017
The accompanying notes to the schedule of activity of the landfill closure and
long-term care escrow account are an integral part of this schedule.
$ 1,766,307
9,433
13,528
$ 1,789,268
3
MONROE COUNTY, FLORIDA
NOTES TO SCHEDULE OF ACTIVITY OF THE LANDFILL CLOSURE AND
LONG-TERM CARE ESCROW ACCOUNT
YEAR ENDED SEPTEMBER 30, 2017
Note 1—Reporting entity
Monroe County, Florida (the "County") is a Non -Charter County established under the Constitution and the laws
of the state of Florida. It is governed by an elected Board of County Commissioners (the "Board") which is
governed by state statutes and regulations. In addition to the members of the Board, there are five elected
constitutional officers: the Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and the
Supervisor of Elections. The constitutional officers each maintain separate accounting records and budgets.
Note 2—Summary of significant accounting policies
Basis of Accounting - The Landfill Closure and Long -Term Care Escrow Account ("Escrow Account") was
established to comply with the escrow requirements of Section 62-701.630(5) of the Florida Administrative Code
["Section 62-701.630(5)"]. This rule requires the County to have sufficient funds on deposit in an interest -
bearing escrow account for the purpose of funding the estimated landfill closure cost of the County's landfill.
Currently these funds are invested as demand deposits.
The balance and activity of the Escrow Account are presented and reported within the County's Municipal
Service District Solid Waste Fund. The Landfill Closure and Long -Term Care Escrow Account cash is held by
Regions Bank in its capacity as the County's investment custodian.
The Schedule of Activity of the Landfill Closure and Long -Term Care Escrow Account is presented on the basis
of cash receipts and cash disbursements, which is a comprehensive basis of accounting other than accounting
principles generally accepted in the United States of America and is only intended to present the balance
segregated for the purpose of complying with Section 62-701.630(5).
Landfill Operating Status - The landfill capacity of the County's previously operated landfills located on Long Key
and Key Largo are 100% used and have no remaining landfill life. Closure of these landfills was substantially
completed during the year ended September 30, 1994. In Fiscal Year 2012-13, the County requested and the
Florida Department of Environmental Protection ("FDEP") agreed to early release of all long-term care
requirements for the Key Largo and Long Key landfills.
The County also has an unlined landfill site at Cudjoe Key which has never been used and which the County
does not presently intend to use. Accordingly, no future closure cost is accruable except for post closure costs
estimated to be incurred in the coming year for Cudjoe Key. At September 30, 2017 the estimated future cost for
post closure maintenance was $177,812.
Landfill Management Escrow Account - The County established a separate restricted cash account for landfill
management escrow. Currently, the escrow, which is part of the County's cash and investments, is annually
adjusted based on the current inflation factor used to adjust all other landfills. The Code requires that the
escrow be funded for closing costs on a straight-line basis over the design life of the permitted portion of the
landfill and for one year's long-term care costs beginning one year prior to closure. Since the County has no
intention to operate the unused landfill, its closure costs were fully funded in 1996.
The landfill is required by state and federal laws and regulations to make annual contributions to a cash escrow
account to meet financial assurance requirements. During the year, additional funding of $13,528 and
investment earnings of $9,433 were added to the escrow account. In accordance with laws and regulations, the
landfill had cash of $1,789,268 held for these purposes at September 30, 2017. In the event closure escrows
and interest earnings prove inadequate due to inflation, changes in technology or additional post closure care
requirements, these costs may need to be covered by charges to service users.
4
MONROE COUNTY, FLORIDA
NOTES TO SCHEDULE OF ACTIVITY OF THE LANDFILL CLOSURE AND
LONG-TERM CARE ESCROW ACCOUNT
YEAR ENDED SEPTEMBER 30, 2017
Note 2—Summary of significant accounting policies (continued)
At September 30, 2017, the escrow balance was based on the following calculation:
Estimated post closure costs, beginning of year
Change in estimate
Estimated post closure costs, end of year
Landfill management escrow cash restricted for long-term care
Cudjoe Key
Landfill
$ 1,766,307
22,961
$ 1,789,268
$ 1,789,268
Although the escrow account is available for all post closure costs, the County funds its minor routine post
closure costs as part of its Solid Waste operations budget. Accordingly, the escrow liability established pursuant
to Florida Administrative Code is considered to be long-term and the related assets will be used only on an
emergency basis.
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