FY2006MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Financial Statements
For the Year Ended
September 30, 2006
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
` Table of Contents
Page
Independent Auditors' Report-------------- -----------------------------------------
2-3
Management's Discussion and Analysis--•--•-------------------------------------------------- .......................
4-7
_ BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Assets
8
Statement of Activities
9
Fund Financial Statements
Balance Sheet - General Fund
10
Statement of Revenues, Expenditures and Changes in
Fund Balance - General Fund
11
Notes to Financial Statements
12 - 17
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - General Fund (Budgetary Basis)______________________
________ 18
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards-------------- -
19 - 20
Independent Auditors' Management Letter ---------------- ••................................ •-----___•--------21
- 22
INDEPENDENT AUDITORS' REPORT
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida:
We have audited the accompanying financial statements of the governmental activities and the
major fund of Monroe County Comprehensive Plan Land Authority (the "Authority"), a
component unit of Monroe County, Florida, as of and for the year ended September 30, 2006,
which collectively comprise the Authority's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the Authority's management. Our
responsibility is to express opinions on these 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
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 assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the governmental activities and the major fund of the Authority as of
September 30, 2006, and the respective changes in financial position for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
January 11, 2007 on our consideration of the Authority's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of the 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.
2
The management's discussion and analysis and required supplementary information listed in
the foregoing table of contents are not a required part of the basic financial statements but are
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 express no opinion on it.
Ir
Orlando, Florida
January 11, 2007
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Monroe County Comprehensive Plan Land Authority (the "Authority"),
we offer readers of the Authority's financial statements this narrative overview and analysis of
the Authority's financial activities for the fiscal year ended September 30, 2006.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Authority's basic
financial statements. The Authority's basic financial statements comprise three components: 1)
government wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government -wide Financial Statements The government -wide financial statements are
designed to provide readers with a broad overview of the Authority's finances, in a manner
similar to a private -sector business.
The statement of net assets presents information on all of the Authority's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases
in net assets may serve as a useful indicator of whether the financial position of the Authority is
improving or deteriorating.
The statement of activities presents information showing how the government's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Also, capital assets are capitalized and depreciated on the statement of net assets
whereas related purchases are expensed on government fund financial statements.
General Fund. The General Fund is used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However,
unlike the government -wide financial statements, the General Fund financial statements focus
on near -term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near -tern financing requirements.
Because the focus of the General Fund is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for the General Fund with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near -
term financing decisions. Both the General Fund balance sheet and the General Fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between General Fund and governmental activities.
The Authority adopts an annual appropriated budget for its General Fund. A budgetary
comparison statement has been provided for the General Fund to demonstrate compliance with
this budget.
4
Notes to the Financial Statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government -wide and fund financial
statements. The notes to the financial statements are an integral part of the basic financial
statements.
Other Information. In addition to the basic financial statements and accompanying notes, this
report also presents certain supplementary information.
Government -wide Financial Analysis
The Authority's assets consist of cash and cash equivalents, mortgage receivables issued for
affordable housing, amounts due from other governments primarily for tourist impact tax and
park surcharge fees, and capital assets in the form of acquired land. Cash and cash equivalents
are the assets typically of most importance to the Authority's Board of Directors and to the
public, as these assets are the resources most readily available to meet current and future
needs for property acquisition and mortgage financings.
At the close of the most recent fiscal year, the Authority had cash and cash equivalents of
$9,683,180, as shown on the Statement of Net Assets on page 8. This compares with
$8,026,902 at the end of the previous fiscal year, an increase of $1,656,278. This increase was
due to cash revenues in the current year exceeding cash expenditures and capital outlay for
land of $2,278,748. Of the $9,683,180 shown as cash and cash equivalents, $2,791,423 is
restricted for the acquisition of property within the Key West Area of Critical State Concern.
A comparison of net assets of all types as of September 30, 2006 and 2005 is provided below.
Current and other assets
Capital assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
2006 2005
$ 16,701,779
15,419,967
32,121,746
24,584
$ 14,991,957
18,396,236
33,388,193
29,747
37,769 46,366
62,353 76,113
15,419,967
2,791,423
13,848,003
32, 5�
18,396,236
1,635,215
13,280,629
33,31 ,
UW-
L
Governmental activities
The Authority's fiscal 2006 revenues included $2,716,861 in tourist impact tax and park
surcharge fees, $1,135,742 in property sales, $398,246 in investment income, and $208,182 of
conservation land donated to the Authority by the Village of Islamorada. The land contribution
conveyances portion of expenses consists of $4,273,928 of land donated to the Board of
County Commissioners for affordable housing and the cost of the land sale to the State of
_ Florida for conservation of $1,189,271. General government expenses were $248,519. These
government activities had the combined effect of decreasing the Authority's net assets by
$1,252,687. Government activities for fiscal 2006 are provided below:
Revenues:
Intergovernmental
Interest
Property sale
Land contributions
Total revenues
2006
$ 2,716,861
398,246
1,135, 742
208,182
4,459,031
2005
$ 3,150,766
262,715
3,413,481
Expenses:
Land contribution conveyances 4,273,928 3,605,299
Cost of land sale 1,189,271
General government 248,519 309,530
Total expenses 5,711,718 3,914,829
Increase (decrease) in net assets $ (1,252,687) $ (501,348)
Financial Analysis of the General Fund
As noted earlier, the Authority uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
The purpose of the Authority's General Fund is to provide information on near -term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the
Authority's financing requirements. In particular, unreserved fund balance may serve as a
useful measure of a government's net resources available for spending at the end of the fiscal
year.
The difference between the fund balance of the General Fund and govemment-wide net assets
is that government -wide net assets include capital assets (land), whereas capital assets are
expensed when purchased in the General Fund and noncurrent liabilities (compensated
absences) are only recognized when due in the General Fund. The Authority's land presented
on the government -wide statement of net assets was $15,419,967 and compensated absences
were $51,880 at September 30, 2006. Accordingly, government -wide net assets were
$32,059,393 whereas the fund balance of the General Fund was $16,691,306 at September 30,
2006.
6
i
Because of this difference in presenting land, land purchases are presented as expenditures
only on the General Fund Statement of Revenues, Expenditures and Changes in Fund Balance
and. land donations to other entities (land contribution conveyances) are accounted for as
expenses only on the government -wide statement of activities. A reconciliation of the change in
fund balance of the General Fund to the change in net assets of government activities is
presented on page 11.
General Fund Budgetary Highlights
The Authority budgets its revenues and expenditures on the same basis of accounting as
presented in the basic financial statements of the General Fund, except that mortgage
assistance cash outlays and receipts are budgeted as operating activities and compensated
absences are not budgeted in personnel expenditures. There were no supplemental
appropriations to amounts originally budgeted for fiscal 2006. Variances between final budgeted
and actual operating categories included actual revenues $390,849 more than budget and
actual expenditures $7,311,173 less than budget. The variances were primarily due to the
conservative nature of budgets established, with interest income comprising most of the
revenue surplus and pending real estate closings and reserves for specific acquisition projects
comprising most of the positive expenditure variance.
Capital Asset Administration
The Authority's investment in capital assets as of September 30, 2006 amounts to $15,419,967,
a decrease of $2,976,269 from $18,396,236 at September 30, 2005. The decrease was the net
effect of land contribution conveyances for affordable housing purposes of $4,273,928, cost of
land sales for conservation of $1,189,271 and land acquisitions of $2,486,930.
Requests for Information
This financial report is designed to provide a general overview of the Authority's finances for all
those with an interest in the government's finances. Questions concerning any of the
information should be addressed to Mark Rosch, Executive Director, at 1200 Truman Avenue,
Suite 207, Key West, FL 33040.
7
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Statement of Net Assets
September 30, 2006
Assets
Cash and cash equivalents
$ 9,683,180
Due from other governmental units
264,036
Mortgage receivable
6,754,563
Capital assets -land
15,419,967
Total assets
32,121,746
Liabilities and Net Assets
Current liabilities:
Accounts payable
4,191
Accrued wages
6,282
Compensated absences
14,111
Total current liabilities
24,584
Noncurrent liabilities:
Compensated absences
37,769
- Total noncurrent liabilities
37,769
Total liabilities
62,353
Net assets
Invested in capital assets
15,419,967
Restricted
2,791,423
Unrestricted
13,848,003
Total net assets
$ 32,069,393
The notes to the financial statements 8
are an integral part of this statement.
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Statement of Activities
Year Ended September 30, 2006
General revenues
Intergovernmental
Property sale
Investment income
Land contributions
Total general revenues
Program expenses
Land contribution conveyances
Cost of land sale
General government
Total program expenses
Decrease in net assets
Net assets -beginning of year
Net assets - and of year
The notes to the financial statements 9
are an integral part of this statement.
$ 2,716,861
1,135, 742
398,246
208,182
4,459,031
4,273,928
1,189,271
248,519
5,711,718
(1,252,687)
33,312,080
$ 32, 059, 393
L MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Balance Sheet
General Fund
September 30, 2006
Assets
Cash and cash equivalents
Due from other governmental units
Mortgage receivable
Liabilities and Fund Equity
Liabilities
Accounts payable
Accrued wages
Total liabilities
Fund equity
Reserved for mortgage loans
Reserved for land acquisition
Fund balance - unreserved
Total fund equity
Total liabilities and fund equity
Amounts reported in the statement of net assets differ
from amounts reported above as follows:
Fund balance - total governmental funds
Capital assets used in governmental activities are not financial
resources and therefore are not reported above.
Compensated absences are not due and payable in the current
period and, therefore, are not reported in the governmental funds.
Net assets of governmental activities
The notes to the financial statements 10
are an integral part of this statement.
$ 9,683,180
264,036
6,754,563
$ 16,701,779
$ 4,191
6,282
10,473
6,754,563
2,791, 423
7,145, 320
16,691, 306
$ 16,701,779
$ 16,691,306
15,419,967
(51,880)
$ 32,059,393
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2006
Revenues
intergovernmental
$ 2,716,861
Property sale
1,135,742
_ Investment income
398,246
Total revenues
4,250,849
Expenditures
Current
• Personnel
177,543
Operating
65,462
' Capital outlay
2,278,748
Total expenditures
2,521,753
Excess of revenues over expenditures
1,729,096
Fund balance, beginning of year
14,962,210
Fund balance, end of year
$ 16,691,306
Amounts reported for governmental activities in the statement
of activities are different because:
Net change in fund balances -total governmental fund
$ 1,729,096
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those
assets is capitalized.
2,278,748
Land contribution conveyances are not reported on government
funds; this is the amount of land conveyances during fiscal 2006.
(4,273,928)
Cost of land sales are not reported on government fund; this
is the cost of land sales during fiscal 2006.
(1,189,270)
Land contributions received are not reported on government
Rands; this is the amount of donated land received during fiscal 2006
208,182
Compensated absences do not use current financial
resources and are not reported on the Governmental Funds but
are included in the Statement of Activities.
I
(5,515)
' Change in net assets of governmental activities
$ (1,252,687)
The notes to the financial statements 11
are an integral part of this statement.
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2006
Note 1 - Summary of significant accounting policies
Reporting Entity — The Monroe County, Florida Comprehensive Plan Land Authority (the
"Authority") is a legally separate entity from Monroe County, Florida. However, the Monroe
County Board of County Commissioners serves as the governing board of the Authority and is
able to impose its will. Therefore, the Authority, for financial reporting purposes, is considered a
blended component unit of Monroe County, Florida. The financial statements of the Authority
are included as a special revenue fund in the Monroe County, Florida Comprehensive Annual
Financial Report.
The Authority was established under Monroe County, Florida Ordinance 031-1986 pursuant to
Florida Statute 380. Its purpose is to operate a land acquisition program in Monroe County, to
implement the Monroe County Comprehensive Plan and address issues created by it.
Basis of Accounting — Government fund financial statements are organized for reporting
purposes on the basis of a General Fund, the Authority's major fund, which accounts for all
activities of the Authority and is accounted for using the modified accrual basis of accounting.
Revenues are recognized when they become measurable and available as net current assets.
"Measurable" means the amount of the transaction can be determined and "available" means
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. The Authority considers all revenues available if collected within 60 days after year-end.
Expenditures are recognized when the related fund liability is incurred.
The govemment-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
Capital Assets — Capital assets are defined by the Authority as assets with an initial, individual
cost of $1,000 or more and an estimated useful life in excess of two years. Such assets consist
of land and, when purchased, are recorded at the Authority's cost. Where land is acquired by
donation, the asset is recorded at the Authority's transaction cost plus the higher of the tax
assessed value at the time of donation or 115% of the 1986 tax assessed value. Capital assets
are not depreciated since they do not have determinable useful lives.
Cash and Cash Equivalents and Investments — The Authority'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.
12
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2006
Note i — Summary of significant accounting policies (continued)
Budget — Prior to, or on September 30, the Authority's budget is legally enacted through
passage of a resolution. There were no supplemental appropriations during the year. Budgeter!
to Actual Expenditure reports are employed as a management control device during the year for
the fund. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America, except that mortgage assistance cash outlays and
receipts are budgeted as operating activities and compensation accruals are not budgeted. For
the fiscal year 2006, the following adjustments were necessary to present the actual data on a
budgetary basis for the General Fund:
GAAP basis $ 1,729,096
Compensation accrual 6,282
Non-GAAP budgetary basis $ 1,735,378
All appropriations lapse at year-end.
Compensated Absences — The Authority's policy grants employees annual leave and sick
leave in varying amounts. Upon termination of employment, employees with six months or more
of credited service can receive payment for accumulated annual leave. In general, sick leave
payments are granted upon termination of employment to employees with five years or more of
credited service. The maximum payment is subject to percentage and maximum hour
limitations.
Use of Estimates - The preparation of the financial statements requires management to make
use of estimates that affect reported amounts. Actual results could differ from those estimates.
Note 2 — Deposits and investments
As of September 30, 2006, the Authority has the following deposits and investments:
Demand deposits $ 157,281
Local Government Surplus Trust Fund 9,525,899
Total cash and cash equivalents $ 9,683,180
Cash accounts are maintained in demand deposits, which are insured by the Federal Deposit
Insurance Corporation or covered by the State of Florida collateral pool, a multiple financial
institution pool with the ability to assess its members for collateral shortfalls if a member
institution fails.
13
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2006
Note 2 — Deposits and investments (continued)
The Authority's investment policy is in accordance with Florida Statute 218.415. This policy
authorizes investments in demand deposits, the Local Government Surplus Trust Fund, money
market funds with the highest credit quality rating from a nationally recognized agency, or direct
obligations of the United States Treasury. The Local Government Surplus Trust Fund does not
have a credit quality rating.
Note 3 — Mortgage receivables
Mortgage receivables as of September 30, 2006 are as follows:
First mortgage due from not -for -profit agency, collateralized by land,
payable in full August 2007, interest free (OR 1475-134)
First mortgage due from governmental agency, collateralized by land,
payable in full April 2028, interest free (OR 1514-594)
First mortgage due from governmental agency, collateralized by land,
payable in full May 2031, interest free (OR 1697-2076)
Second mortgage due from governmental agency, collateralized by
land, payable in full January 2034, interest free (OR 1965-1039)
First mortgage due from governmental agency, collateralized by land
and building, payable in full September, 2045 interest free (OR 1395-
1409 )
Third mortgage due from private company, collateralized by land,
payable in full May 2050, interest free (OR 1749-2340)
Third mortgage due from private company, collateralized by land,
payable in full September 2053, interest free (OR 1939-405)
Total mortgages receivable
$ 13,984
382,554
1,500,000
2,210,000
59,025
1,089,000
1,500,000
$ 6,754,563
The mortgages receivable are equally offset by a fund balance reserve which indicates that
they do not constitute "available spendable resources," even though they are a component of
total assets.
14
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2006
Note 4 — Capital assets
A summary of changes in capital assets is as follows:
Balance Balance
10/01/2005 Additions Deletions 09/30/2006
Land $ 18,396,236 $ 2,486,930 $ 5,463,199 $ 15,419,967
The City of Key West leases two properties with a cost of $441,073 from the Authority. These
properties, which are included in capital assets, are used to provide parking and city
recreational facilities. The terms of the leases provide for rental of $1 per year for 30 years,
expiring in the year 2022. Monroe County provides the Authority's office space at no cost.
Note 5 — Accumulated compensated absences
The amount of vested accumulated compensated absences payable based on the Authority's
annual and sick leave policies, is reported as a liability in the government -wide financial
statements. That liability includes earned but unused vacation and sick leave. Vacation leave is
accrued based on length of employment up to a maximum of 320 hours. Sick time is paid out
based on length of employment up to a maximum of one half of 120 days.
The change in accumulated compensated absences during the year is as follows:
Balance Balance Current
10/01/2005 Additions Deletions 09/30/2006 Portion
Compensated
absences $ 59,545 $ 19,625 $ 27,290 $ 51,880 $ 14,111
15
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2006
Note 6 — Retirement system
Plan description — The Authority's employees participate in the Florida Retirement System
("FRS"), administered by the Florida Department of Administration. Employees elect
participation in either the defined benefit plan ("Pension Plan"), a multiple -employer cost -
sharing defined benefit retirement plan, or the defined contribution plan ("Investment Plan")
under the FRS. As a general rule, membership in the FRS is compulsory for all employees
working in a regularly established position for a state agency, county government, district
school board, state university, community college, or a participating city or special district within
the State of Florida. The FRS provides retirement and disability benefits, annual cost -of -living
adjustments, and death benefits to plan members and beneficiaries.
Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida
Administrative Code. Amendments to the law can be made only by an act of the Florida
Legislature.
Benefits are computed on the basis of age, average final compensation, and service credit.
Regular class employees who retire .at or after age 62 with 6 years of credited service or 30
years of service regardless of age are entitled to a retirement benefit payable monthly for life,
equal to 1.6% of their final average compensation for each year of credited service. Vested
employees with less than 30 years of service may retire before age 62 and receive reduced
retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters,
and correctional officers) who retire at or after age 55 with 6 years of credited service, or with
25 years of service regardless of age, are entitled to a retirement benefit payable monthly for
life, equal to 3% of their final average compensation for each year of credited service. Senior
Management Service class employees who retire at or after age 62 with at least 6 years of
credited service or 30 years of service regardless of age are entitled to a retirement benefit
payable monthly for life, equal to 1.6% of their final average compensation for each year of
credited service. Elected Officers' class employees who retire at or after age 62 with at least six
years of credited service or 30 years of service regardless of age are entitled to a retirement
benefit payable monthly for life, equal to 3% (3.33% for judges and justices) of their final
average compensation for each year of credited service. A post -employment health insurance
subsidy is also provided to eligible retired employees through the FRS in accordance with
Florida Statutes.
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 those employees who elect participation in the Investment Plan rather than the Pension
Plan, vesting occurs at one year of service. These participants receive a contribution for self -
direction in an investment product with a third parry administrator selected by the State Board of
Administration.
16
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
(A Component Unit of Monroe County, Florida)
Notes to Financial Statements
Year Ended September 30, 2006
Note 6 — Retirement system (continued)
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
may be obtained by writing to the State of Florida Division of Retirement, Department of
Management Services, 2639 North. Monroe Street, Building C, Tallahassee, Florida 32299-1560
or accessing their internet site at www.frs.state.fl.us.
Funding policy — The FRS is noncontributory for members. Governmental employers are
required to make contributions to the FRS based on statewide contribution rates. The
contribution rates by job class at September 30, 2006 were as follows: regular 9.85%; special
risk 20.92%; special risk administrative support 12.55%; county elected officers 16.53%; senior
management 13.12%, and DROP participants 10.91 %. During the fiscal year ended September
30, 2006, the Authority contributed to the plan an amount equal to 9.85% of covered payroll.
The Authority's contributions to the FRS for the fiscal years ending September 30, 2004 through
2006 were $8,985, $10,636 and $12,451 respectively, which were equal to the required
contributions for each fiscal year. The Authority 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 7 — Risk management
The Authority is exposed to various risks of loss related to tort; theft of, damage to, and
destruction of assets; errors and omissions: injuries to employee; and natural disasters. The
Authority participates in the coverage provided by the Board of County Commissioners of
Monroe County Worker's Compensation, Group Insurance and Risk Management Fund internal
service funds. Under these programs, the Worker's Compensation Fund provides $1,000,000
coverage per claim for regular employees. Risk Management has a $5,000,000 excess
insurance policy for general liability claims with a $100,000 self -insured retention, and building
property damage is covered for the actual value of the building with a deductible between
$100,000 and $250,000, 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 Authority makes payments to the Worker's Compensation, Group
Insurance and Risk Management Funds based on estimates of the amounts needed to pay
prior and current year claims.
Note 8— Commitments
The Authority had approximately $1,723,375 of commitments to acquire various properties as of
September 30, 2006. .
17
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
COMPREHENSIVE PLAN LAND AUTHORITY
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund (Budgetary Basis)
Year Ended September 30, 2006
Revenues
Intergovernmental
Property sale
Investment income
Total revenues
Expenditures
Current
Personnel
Operating
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balance, beginning of year
Fund balance, end of year
Variance
with Final
Budget
Positive
Budget
Actual
(Negative)
Original
Final
$ 2,500,000 $
2,500,000
$ 2,716,861
$ 216,861
1,260,000
1,260,000
1,135,742
(124,258)
100,000
100,000
398,246
298,246
3,860,000
3,860,000
4,250,849
390,849
217,700
217,700
171,261
46,439
121,500
121,500
65,462
56,038
9,487,444
9,487,444
2,278,748
7,208,696
9,826,644
9,826,644
2,515,471
7,311,173
Reconciliation of budgetary -
to full accrual basis
Reconciling item
Mortgage receivable
Compensation accrual
Fund balance, end of year (full accrual)
(5,966,644) (6,966,644)
$ 2,241,003 $ 2,241,003
18
1,735,378
8,207,647
7,702,022
9,943,025 $ 7,702,022
6,754,563
(6,282)
$ 16,691,306
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida:
We have audited the financial statements of the governmental activities and the major fund of
Monroe County Comprehensive Plan Land Authority (the "Authority") as of and for the year
ended September 30, 2006, which collectively comprise the Authority's basic financial
statements, and have issued our report thereon dated January 11, 2007 for the purpose of
compliance with Section 218.29(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
In planning and performing our audit, we considered the Authority'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 not 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
material weaknesses. A material weakness is a reportable condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts 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 over financial reporting and its operations that we consider
to be material weaknesses.
Compliance and Other Matters
As part of obtaining assurance about whether the Authority's 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 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.
19
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
Orlando, Florida
January 11, 2007
20
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Governing Board
Monroe County Comprehensive Plan Land Authority
Monroe County, Florida:
We have audited the financial statements of the Monroe County, Florida Comprehensive Plan
Land Authority (the "Authority"), as of and for the year ended September 30, 2006, and have
issued our report thereon dated January 11, 2007 for the purpose of compliance with Section
218.29(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. We have issued
our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters based on an audit of financial statements performed in
accordance with Government Auditing Standards, dated January 11, 2007, and it 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. Those rules (Section 10.554(1)(h)l) require that we address in the management letter,
if not already addressed in the auditors' report on internal controls, compliance and other
matters whether or not corrective actions have been taken to address significant findings and
recommendations made in the preceding annual financial audit report. There were no
recommendations made in the preceding audit report.
The Rules of the Auditor General (Section 10.554(1xh)2) state that a management letter shalt
have a statement as to whether or not the Authority complied with Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit of the financial
statements of the Authority, the results of our tests did not indicate that the Authority was in
noncompliance with Section 218.415 regarding the investment of public funds.
The Rules of the Auditor General (Section 10.554(1)(h)3) require disclosure in the management
letter of any recommendations to improve The Authority's management, accounting procedures,
and internal controls. There were no recommendations in connection with the fiscal 2006
financial statement audit.
The Rules of the Auditor General (Section 10.554(1)(h)4) require disclosure in the management
letter of the following matters if not already addressed in the auditors' reports on compliance
and internal controls: (1) violations of laws, rules, regulations, and contractual provisions that
have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper
or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (4) failures to properly record financial transactions; and (5) other
inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the
attention of, the auditor. There were no such matters noted.
21
The Rules of the Auditor General (Section 10.554(1)(h)5) also require that the name or official
title and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The Authority was established by under Monroe County, Florida Ordinance 031-
1986 pursuant to Florida Statute 380. There are no component units related to The Authority.
As required by the Rules of the Auditor General (Section 10.554(1 xh)6.a), the scope of our
audit included a review of the provisions of Section 218.503(1), Florida Statutes, regarding
financial emergencies. In connection with our audit of the basic financial statements of the
Authority, the results of our tests did not indicate that the Authority met any of the specified
conditions of a financial emergency contained in Section 218.503(1). However, our audit does
not provide a legal determination on the Authority's compliance with this requirement.
The Rules of the Auditor General (Section 10.554(1)(h)6.b) state that a management letter shall
include a statement as to whether or not the financial report filed with the Florida Department of
Financial Services, pursuant to Section 218.32, Florida Statutes, is in agreement with the
annual financial audit -report for the current audit period and, if not, explanations of any
significant differences. The Authority, as a blended component unit of Monroe County, Florida
(the "County"), includes its financial information in the annual report filed on a consolidated
basis by the County. Our comparison of the financial report fled by the County with the Florida
Department of Financial Services to -the County's 2006 audited financial statements resulted in
no material differences.
As required by the Rules of the Auditor General (Sections 10.554(1)(h) 6.c. and 10.556), the
scope of our audit included financial condition assessment procedures as of September 30,
2006. It is management's responsibility to monitor the Authority's financial condition, and our
financial condition assessment was based in part on representations made by management and
the review of financial information provided by management. The results of our financial
condition assessment procedures disclosed no deteriorating financial conditions.
This management letter is intended solely for the information and use of management, the State
of Florida Office of the Auditor General, and applicable state agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
It
CL-iLl"&9,0-0� ** fferL7�,, `` a
P
Orlando, Florida
January 11, 2007
22
�isiry
MONROE COUNTY LAND AUTHORITY
1200 TRUMAN AVENUE, SUITE 207 • KEY WEST, FLORIDA 33040
PHONE (305) 295-5180 • FAX (305) 295-5181
April 11, 2007
Auditor General of the State of Florida
Room 231, Holland Building
Tallahassee, FL 32301
Re: Audit of the Monroe County Comprehensive Plan Land Authority
for Fiscal Year ending September 2006
Dear Sir. or Madam:
Below please find my responses to the management letter comments included in the annual
audit of the Monroe County Comprehensive Plan Land Authority for the fiscal year ending
September 2006.
Monroe County_ Comprehensive Plan Land Authority
No management letter comments. No response necessary.
Please contact me if you require any additional information on this matter.
Sincerely,
*\ , �
Marls J. Rosch
Executive Director