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Fiscal Year 2009 IMONROE COUNTY, FLORIDA TAX COLLECTOR Financial Statements For the Year Ended September 30, 200 MONROE COUNTY,, FLORIDA TAX COLLECTOR Table of Contents Page Independent Auditors' Report_... BASIC FINANCIAL STATEMENTS Balance Sheet - General Fund 4 Statement of Revenues, Expenditures and Changes in Fund Balance - General Fund 5 Statement of Fiduciary Assets and Liabilities - Agency Funds 6 Notes to Financial Statements .. ...--...--........... ....... 7 - 12 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures - Budget and Actual - General Fund ......._............ ....... 13 OTHER SUPPLEMENTARY INFORMATION Agency Fund Descriptions ... ........ 14 Combining Statement of Changes in Assets and Liabilities - All Agency Funds ......... 15 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 Gover went Aid iting Standards ............ ........---........ 16 - 17 Independent Auditors' Management Letter-...........--- . ....... ... 18 - 19 4 INDEPENDENT AUDITORS'' REPORT To the Honorable l anise D. Henri'quez, Tax Collector of Monroe County, Florida: We have audited the accompanying financial statements of the major fund and throe aggregate remaining fund information, of the Monroe County, Florida Tax Collector (the "Tax Collector") as of and for the year ended September 30, 2009, which collectively comprise the Tax Collector's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Tax Collector's management. Our responsibility is to express opinions on these financial statements based oil our audit. We conducted our audit in accordance with auditing standards generally accepted in the United .Mates of America and the standards applicable to financial audits contained in Govern mrmer7t 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. As discussed in Note 1, the accompanying financial statements were prepared for the purpose of complying with Section 1 . 0(2), Florida Statutes, and Chapter 10.550, Rules of the AuditorGeneral-Local Crmverrmrrm nt Entity Audits, and are not intended to be a complete presentation of the financial position of Monroe County„ Florida, and the results of its operations and the cash flows of its proprietary funds in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the major fund and the aggregate remaining fund) information of the Tax Collector as of September 00, 2009, and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United .Mates of America. 2 In accordance with Governnient Auditing Standafds, we have also issued Our report dated ~January 30, 2010, on our consideration of the Tax Collector'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 Our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide all 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 Audifing Standards and should be considered in assessing the results Of Our audit. The budgetary comparison schedule on page 13 is not a, required part of the basic 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 performed for the purpose of forming opinions on the financial' statements that collectively comprise the Tax Collector's basic 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 basic financial staternents. This combining statement has been subjected to the auditing procedures applied in, the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 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. CHERRY BEKAERT & HOLLAND, L.L.P. )A Juk L. Orlando, Florida January 30, 2010 3 BASIC FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA TAX COLLECTOR Balance Sheet - General Fund September 30, 2009 Assets Cash and cash equivalents $ 3,653,732 Prepaid expenses 5,436 Due frorn Board Of County Commissioners 8,979 Due from other governments 4,78,4 Total Assets $ 3,672,931 Liabilities and Fund Balance Liabilities AcCOUnts payable $ 30,805 Accrued wages and benefits payable 135,612 Due to Board of County Commissioners 3,141,342 DUe to other governmental units 365,172 Total Liabilities 3,,672,931 Fund Balance - Total Liabilities and Fund Balance $ 3,672,931 The notes to the financial statements are an integral part of this statement. 4 MONROE COUNTY, FLORIDA TAX COLLECTOR Statement of revenues, Expenditures and Changes in Fund Balance General Fund Year Ended September 30, 2009 Revenues Charges for services ,55 ,5 7 Expenditures General government Personnel services 2,837,417 Operating expenditures 674,425, Total expenditures 3,511,842 Excess of expenditures over revenues (958,315) Other financing sources (uses) Transfer from Board of County Commissioners 4,464,829 Transfer to Board of County Commissioners ( ,141, 42) Transfer to other governmental units (365,172) Total other financing sources 958,315 Excess of revenues over expenditures and other - financing use Fund balance at beginning of year - Fund balance at end of year - The notes to the financial statements are an integral part of this statement. 5 MONROE COUNTY, FLORIDA TAX COLLECTOR Statement of Fiduciary Assets and Liabilities Agency Funds September 30, 2009 Assets Cash and cash equivalents 5,492,082 Due from individuals 3,520 Total assets $ 5,495,602 Liabilities Undistributed collections $ 5,386,942 DUe to individuals 108,660 Total liabilities $ 5,495,602 The notes to the financial statements are an integral part of this statement, 6 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Financial Statements Year Ended September 30, 2009 Note 1 - Surnmary of significant accounting policies Reporting Entity- The Monroe County, Florida Tax Collector (the "Tax Collector") is a separately elected County official established pursuant to the Constitution of the State of Florida, The Tax Collector's financial statements do not purport to reflect the financial position or the results of operations of Monroe, County, Florida (the "County") taken as a, whole. Entity status for financial reporting purposes is governed by Statements No. 14 and 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 and not required legally or by accounting standards generally accepted in the United States of America to be reported elsewhere, 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 Financiai Statement Presentation - The Tax Collector's financial statements, are prepared in accordance with Chapter 10.550, Rules of the Auditor. General, which requires the Tax Collector to only present fund financial staternents. 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. 7 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Financial Statements Year Ended September 30, 2009 Note I - Summary of significant accounting policies (continued) The extent to which General Fund revenues exceed 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. 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 staternents of the County. In addition, the Board of County Commissioners provides at no cost administrative office space used by the Tax Collector. Compensated Absences — The Tax Collector permits employees to accumulate earned but unused vacation and sick pay benefits. Related long-term obligations, announting to $141,177 at Septernber 30, 2009, are included in the government-wide financial statements of the County, Use of Estimates - The preparation of financial statements requires management to i-nake use of estimates that affect reported amounts. Actual results could differ from estimates. Note 2— Deposits and Investments As of September 30, 2009, the Tax Collector has demand deposits with a carrying amount of$,9,136,089 and a bank balance of$9,166,,727. Demand and time, deposits are fully insured by the Federal Deposit Insurance Corporation for the first $,250,000 at each institution 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. 8 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Financial Statements Year Ended September 30, 2009 Note 2 — Deposits and Investments (con,tinued) 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. Note 3— Retirement System Plan Descrip don— The Tax Collector's employees participate in the Florida Retirement System ("FRS"), administered by the Florida Department of Administration. Employees elect to participate in either the defined benefit plan ("Pension Plan"), a cost sharing, multiple-employer, 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 5,5 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 3.0% 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 2.0% 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 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 3.0% (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 FIRS in accordance with Florida Statutes. 0; MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Financial Statements Year Ended September 30, 2009 Note 3 — Retirement System (continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Prograrn ("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. 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 J 1.us. Funding Policy — The FRS is noncontributory for members, Governmental employers are required to make contributions to the FIRS based on statewide contribution rates. The contribution rates by job class at September 30, 2009 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, 2009, the Tax Collector contributed to the Plan an amount equal to 10�,3,3% of covered payroll. Tax Collector contributions to the FRS for the fiscal years ended September 30, 2007 through 2009 were $2 ,904, $248,597' and $,249,060, respectively, which were equal to the required contributions for each fiscal 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 CASE Statement No. 27. Note 4—Other Postemployment Benefits (OPEB) The Monroe County Board of County Commissioners (BOCC) administers a single- employer defined benefit healthcare plan (the "Plan"). In accordance with Section 112.0801 of the Florida Statutes, the BOCC is required to provide retirees with the opportunity to participate in this Plan because Monroe County provides a medical plan to active County employees. The Plan provides health care benefits including medical coverage, prescription drug, benefits, dental benefits and life insurance coverage to both active and eligible retired employees, The Plan does not issue a publicly available financial report. 10 MONROE COUNTY,, FLORIDA TAX COLLECTOR Notes to Financial Statements Year Ended September 30, 2009 Note 4 — Other Posternployment Benefits (OPEB) (continued) The BOCC may arnend the plan design, with changes to the benefits, prerniums, and/or levels of participant contribution at any tirne. The B4OCC approves the rates for the coming calendar year for the retiree and County contributions at an open meeting prior to the annual enrollment process.. Eligibility for post employment participation in the Plan is limited to full time employees of the Board, the Constitutional Officers, the Land Authority, and retirees. Retirees hired after October 1, 2001 must contribute, the premium determined by the BOCC for all participants prior to the annual enrollment process. Retirees, hired before October 1, 2001, who retire from the County with 10 years of full-time service and are covered by the Florida Retirement System, must contribute $50 from each Florida Health Insurance Subsidy payment from the Florida Retirement System, Other conditions apply to employees hired before October 1, 2001 who have retired before the normaI retirement date, have not reached age 60, and whose age and years of service to the County do not equal 70. In conjunction with the implementation of GASB Statement 45 during fiscal year 2008, the BOCC engaged an actuarial firm, 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- COLM.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 Worker's Compensation, Group Insurance, and Risk Management internal service funds. Under these programs, Worker's Compensation provides $1,000,000, coverage per claim for regular employees, Risk Management has a 5,0OO,000 excess insurance policy for general liability claims with a $10,0,000 self-insured retention, and building property damage is covered for the actual value of the buildings with a deductible between $100,000 and $250,000. Deductibles for windstorm and flood vary by location, The 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 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. 11 MONROE COUNTY, FLORIDA TAX COLLECTOR Notes to Financial Statements Year Ended September 30, 2009 Note 6 — Commitments Operating Leases — The Tax Collector leases office space and equipment Linder operating lease agreemen:ts. Total lease payments made in 20�09 were $93,074. The following is a schedule by years of future minimum rentals, under non-cancelable operating leases as of September 30, 2009: Year Ending Lease --September 30 Payments 2010 $ 70,953 2011 39,558 2012 36,710 2013 8,649 2014 515 Total $ 156,385 Note 7 — Litigation The Tax Collector is a party from time to firne in various lawsuits and other clairns 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, 12 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA TAX COLLECTOR Schedule of Reverrues and Expenditures- Budget and Aclual-GeneraG Fund Yew Ended Septembet 30, 2009 General Fund .... .................... Variance Original Final Positive Actual Revenues Charges for services $ 2,127 821 2 127821 $ --__2,553 527 425706 Expenditures General government Personnel services 2,997,660 2,987,000 2,837,417 149,583 Operating expenditures 659,087 676,747 674,425 Total expenditures 3,656,747 3,663,747 3,511,842 151,905 Excess of expenditures over revenues 528,926) (1,535,926) (958,315) 577,61:1 Other financing sources(uses) Transfer from Board of County Commmioners 3,789,819 3,789,819 4,464,829 6 7'5,0 10 Transfer to Board of County,Commissioners (2,260,893) (2,253,893) (3,141,342) (887,449) Transfer to oflier governmental units .......... (365,172) ToW other financing sources(uses) 1,528,926 1,535,926 958,315 ........... m. Excess of revenues over expenditures 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 frorn the sale of miscellaneous state licenses. 14 MONROE COUNTY, FLORIDA TAX COLLECTOR Combining Statement of Changes in Assets and Liabilities All Agency Funds Year Ended September 30, 2009 Balance Balance September 30, September 30, 2008 Additions Deletions 2009 Property Tax Agency Assets Cash and cash equivalents $, 4,582,005 $ 266,265,359 $ 265,507,259 $ 5,340,105 Due frorn individuals 2,930 - 2,875 55 $ 4,584,935 $ 266,265,359 $ 265,510,134 $ 5,3401,160 Liabilities Undistributed collections $ 4,577,232 $ 254,147,913 $ 253,492,949 $ 5,232,1196 Due to individuals 7,703 12,1'17 446 112,017,185 1o7,964 4,584,935 $ 266,265,359 $ 265,510,134 $ 5,340,160 Licenses Agency Fund Assets Cash and cash equivalents $ 166,066 $ 10,233,190 $ 1 O,247,279 $ 151,977 Due from individuals 1,718 1,747 3,465 $ 167,784 $ 10,234,937 $ 10,247,279 $ '155,442 Liabilities Undistributed collections $ 166,217 $ 10,217,265 $ 10,228,736 $ 154,746 Due to individuals 1,567 17,672 18,543 696 $ 167,784 $ 1110,234,937 $ 10,247,279 $ 155,442 Total-All Agency Funds Assets Cash and cash equivalents $ 4,748,071 $ 276,498,549 $ 275,754,538 $ 5,492,082 Due from individuals 4,648 1,747 2,875 3,520 $ 4,752,719 $ 276,500,296, $ 275,757,413 $ 5,495,602 Liabilities Undistributed' collections $ 4,743,449 $ 264,365,178 $ 263,721,685 $ 5,386,942 Due to individuals 9,270 1.2,135,118 12,035,728 108 660 , $ 4,752,719 $ 276,500,296 $ 275,757,413 $ 5,495,602 15 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS r INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL. REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED RMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable l anise D. Henrique , Tax Collector of Monroe County„ Florida: We have audited' the 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, 2009, which collectively comprise the Tax Collector's basic financial statements, and have issued our report thereon dated January 30, 2010 for the purpose of compliance with Section 213,39( )A 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 Mates, Internal Control over Financial Departing In planning and performing our audit, we considered the Tax Collector's internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing our opinions on the 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 control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Tax Collector's ability to initiate, authorize„ record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Tax Collector's financial statements that is more than inconsequential will not be prevented or detected by the Fax Collector's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Tax Collector's internal control, 1 Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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, Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector"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 Goven7ment Auditing Standards. This report is intended solely for the information and use of management, others within the organization and applicable state agencies, and is not intended to be and should not be used by anyone other than these specified parties, CHERRY, BEKAERT & HOLLAND, L.L.P. Orlando, Florida January 30, 2010 17 �' I IMIRNS INDEPENDENT AUDITORS' MANAGEMENT LETTER To the honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida: We have audited the 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, 2009, which collectively comprise the Tax Collector's basic financial statements, and have issued our report thereon dated January 30, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United Mates 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, Disclosures in that report, dated January 30, 2010 should be considered in conjunction with this management letter. Additionally,, our audit was conducted in accordance with the provisions of 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. The Rules of the Auditor General (Section 1 . 54(1)(i)1) require that we determine whether or not corrective actions have been taken to address significant findings and recornmendations made in the preceding annual financial report. No recommendations were made in the preceding year's annual financial report.. The Mules of the Auditor general (Section 10. 4(1)(i)2) require our audit to include a review of the provisions of Section 21 .145, Florida Statutes, regarding the investment Of public funds. In connection with our audit, nothing came to our attention that could cause us to believe that the Tax Collector was in noncompliance with Section 21 ,41 5, Florida Statutes, regarding the investment of public funds. 1 The Rules of the Auditor General (Section 10.554(1)(i)3) require that we address in the management letter any recommendations to improve financial nianagernent. In connection with our audit, we did not have any such recommendations, The Rules of the Auditor General (Section M554(1)(i)4) require that we address violations of provisions of contracts and grant agreements, or abuse that have an effect on the financial statements that is less, than material but more than inconseqUential. In connection with our audit, we did not have any Such findings. The Rules of the Auditor General (Section 10.554(1)(i)5) provide 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) control deficiencies that are not significant deficiencies, In connection with our audit, we did not have any such findings. The Rules of the Auditor General (Section 1 O,554(1)(i)6) 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 this management letter, unless disclosed in the notes to the 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. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America requires us to indicate that this letter is intended solely for the information and use of management, the Florida Auditor General, and is, not intended to be and should not be used by anyone other than these specified parties, CHERRY, BEKAERT & HOLLAND, L.L.P. Orlando, Florida January 30, 2010 19