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Fiscal Year 2014 r i MONROE COUNTY, FLORIDA TAX COLLECTOR FINANCIAL STATEMENTS As of and for the Year Ended September 30, 2014 And Reports of Independent Auditor i r r�� III MONROE COUNTY, FLORIDA TAX COLLECTOR TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR 2-3 ........................................................................................... 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- AgencyFunds.-------------------------------------------------------------------------------------------------------------------------------------6 Notes to Financial Statements 7-11 ------------------------------------------------------------------------------------------------------------- REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures- Budget and Actual - General Fund 12 OTHER SUPPLEMENTARY INFORMATION Agency Fund Descriptions--------------------------------------------------------------------------------------------------------------------- 13 Combining Statement of Changes in Assets and Liabilities -All Agency Funds -------------------------------------------------------------------------------------------------------------. 14 SUPPLEMENTARY REPORTS OF INDEPENDENT AUDITOR Report of Independent Auditor 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........................................................15-16 Independent Auditor's Management Letter ___ _____________________________ ________ ________ ________ ________ ___________17-18 Report of Independent Accountant on Compliance with Local Government Investment Policies 19 ---------------------------------------------------------------------------------------------------------------------------- 1111U u� III" Bekaer ,, Report of Independent Auditor To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida Report on the Financial Statements We have audited the accompanying 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, 2014, and the related notes to the financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Tax Collector's preparation and fair presentation of the financial statements 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 Tax Collector'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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2014, 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. 2 Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each fund of Monroe County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2014, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the budgetary comparison schedule on page 12 be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Tax Collector's basic financial statements. The accompanying other supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying other supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with accounting standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 20, 2015 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 in considering the Tax Collector's internal control over financial reporting and compliance. Orlando, Florida March 20, 2015 3 FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA TAX COLLECTOR BALANCE SHEET GENERAL FUND SEPTEMBER 30, 2014 ASSETS Cash and cash equivalents $ 3,173,479 Due from Board of County Commissioners 4,098 Due from other governments 5,371 Total Assets $ 3,182,948 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 10,465 Accrued wages and benefits payable 73,945 Due to Board of County Commissioners 2,830,466 Due to other governmental units 268,072 Total Liabilities 3,182,948 Fund Balance - Total Liabilities and Fund Balance $ 3,182,948 The accompanying 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, 2014 Revenues Charges for services $ 2,308,770 Intergovernmental - Board of County Commissioners 4,314,240 Interest earnings 9,742 Total revenue 6,632,752 Expenditures General government Personnel services 2,809,115 Operating expenditures 705,279 Capital outlay 19,820 Total expenditures 3,534,214 Excess of revenues over expenditures 3,098,538 Other financing sources (uses) Transfers to Board of County Commissioners (2,830,466) Transfers to other governmental units (268,072) Total other financing sources (uses) (3,098,538) Excess of revenues over expenditures and other - financing uses Fund balance at beginning of year - Fund balance at end of year $ - The accompanying 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, 2014 ASSETS Cash and cash equivalents $ 6,337,059 Due from individuals 1,723 Total assets $ 6,338,782 LIABILITIES Undistributed collections $ 6,318,654 Due to individuals 20,128 Total liabilities $ 6,338,782 The accompanying notes to the financial statements are an integral part of this statement. 6 MONROE COUNTY, FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 1—Summary 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 Statement No. 14, as amended. 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 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. 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 — General Fund 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. 7 MONROE COUNTY, FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 1—Summary of significant accounting policies (continued) 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. 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, 2013 $ 136,071 Additions 233,306 Deletions (209,537) Balance, September 30, 2014 $ 159,840 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, 2014, the Tax Collector has demand deposits with a carrying amount of $9,500,613, a bank balance of$9,576,168, and petty cash funds of$9,925. 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. 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 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. 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. 8 MONROE COUNTY, FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 3—Retirement system (continued) Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members 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 1.6% of their final average compensation based on the five highest years of salary for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members 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 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members 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 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011 affecting members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years of credited service and increasing normal retirement to age 65 with at least eight years of credited service or 33 years of service regardless of age. Also, the final average compensation of these members will be based on the eight highest years of salary. A post-employment health insurance subsidy is also provided to eligible retired members through the FRS in accordance with Florida Statutes. In addition to the above benefits, the FRS administers the 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. 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, PO Box 9000, Tallahassee, FL 32315-9000, or from the website www.dms.myflorida.com/retirement. Funding policy — Effective July 1, 2011, all enrolled members of the FRS other than DROP participants are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2013 through June 30, 2014 and July 1, 2014 through September 30, 2014, respectively, were as follows: regular, 6.95% and 7.37%; county elected officers, 33.03% and 43.24%; senior management, 18.31% and 21.14%; and DROP participants, 12.84% and 12.28%. During the fiscal year ended September 30, 2014, the Tax Collector contributed to the FRS an amount equal to 9.49% of covered payroll. The Tax Collector's contributions to the FRS for the fiscal years ended September 30, 2014, 2013, and 2012 were $228,174, $154,581 and $127,978, 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. 9 MONROE COUNTY, FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 4—Other postemployment benefits (OPEB) plan The Monroe County Board of County Commissioners (BOCC) administers a single-employer defined benefit healthcare plan (the "Plan"). Florida Statute 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, prescription drug benefits, and life insurance 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 maintain their group health insurance benefits with Monroe County following their retirement provided they contribute a premium of$5 per month for each year of creditable service with the FRS at the time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. 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 a premium of$5 per month for each year of creditable service with the FRS at the time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. 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 of $500,000 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. 10 MONROE COUNTY, FLORIDA TAX COLLECTOR NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 6—Commitments Operating Leases — The Tax Collector leases office space and equipment under operating lease agreements. Total lease payments made in 2014 were $91,325. The following is a schedule by years of future minimum rentals under noncancelable operating leases as of September 30, 2014: Year Ending Lease September 30 Payments 2015 $ 89,193 2016 42,465 2017 7,672 2018 1,660 2019 1,336 Total $ 142,326 Note 7—Litigation 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. 11 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA TAX COLLECTOR SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL-GENERAL FUND YEAR ENDED SEPTEMBER 30, 2014 General Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues Charges for services $ 2,065,706 $ 2,065,706 $ 2,308,770 $ 243,064 Intergovernmental-Board of County Commissioners 3,681,994 3,681,994 4,314,240 632,246 Interest earnings - - 9,742 9,742 Total revenue 5,747,700 5,747,700 6,632,752 885,052 Expenditures General government Personnel services 2,905,741 2,855,708 2,809,115 46,593 Operating expenditures 688,804 741,958 705,279 36,679 Capital outlay - 19,820 19,820 - Total expenditures 3,594,545 3,617,486 3,534,214 83,272 Excess of revenues over expenditures 2,153,155 2,130,214 3,098,538 968,324 Other financing sources(uses) Transfer to Board of County Commissioners (2,153,155) (2,130,214) (2,830,466) (700,252) Transfer to other governmental units - - (268,072) (268,072) Total other financing sources(uses) (2,153,155) (2,130,214) (3,098,538) (968,324) Excess of revenues over expenditures and other financing sources(uses) $ - $ - $ - $ - 12 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. 13 MONROE COUNTY, FLORIDA TAX COLLECTOR COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED SEPTEMBER 30,2014 Balance Balance September 30, September 30, 2013 Additions Deletions 2014 Property Tax Agency Fund Assets Cash and cash equivalents $ 5,795,218 $ 278,467,107 $ 278,239,674 $ 6,022,651 Due from individuals 5,695 - 5,655 40 $ 5,800,913 $ 278,467,107 $ 278,245,329 $ 6,022,691 Liabilities Undistributed collections $ 5,786,192 $ 269,041,429 $ 268,822,875 $ 6,004,746 Due to individuals 14,721 9,425,678 9,422,454 17,945 $ 5,800,913 $ 278,467,107 $ 278,245,329 $ 6,022,691 Licenses Agency Fund Assets Cash and cash equivalents $ 268,299 $ 14,871,613 $ 14,825,504 $ 314,408 Due from individuals 589 1,094 - 1,683 $ 268,888 $ 14,872,707 $ 14,825,504 $ 316,091 Liabilities Undistributed collections $ 267,091 $ 14,839,360 $ 14,792,543 $ 313,908 Due to individuals 1,797 33,347 32,961 2,183 $ 268,888 $ 14,872,707 $ 14,825,504 $ 316,091 Total -All Agency Funds Assets Cash and cash equivalents $ 6,063,517 $ 293,338,720 $ 293,065,178 $ 6,337,059 Due from individuals 6,284 1,094 5,655 1,723 $ 6,069,801 $ 293,339,814 $ 293,070,833 $ 6,338,782 Liabilities Undistributed collections $ 6,053,283 $ 283,880,789 $ 283,615,418 $ 6,318,654 Due to individuals 16,518 9,459,025 9,455,415 20,128 $ 6,069,801 $ 293,339,814 $ 293,070,833 $ 6,338,782 14 SUPPLEMENTARY INDEPENDENT AUDITOR'S REPORTS 1111U u� III" Bekaer ,, Report of Independent Auditor 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 Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida: We have audited, 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, 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, 2014, and the related notes to the financial statements, and have issued our report thereon dated March 20, 2015 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. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal control. 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 financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 Government Auditing Standards. 15 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tax Collector's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida March 20, 2015 16 1111U ILI Cherry B,ekaert Independent Auditor's Management Letter To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida: Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Tax Collector (the "Tax Collector"), as of and for the year ended September 30, 2014, and have issued our report thereon dated March 20, 2015. Auditor's Responsibility 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; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Report of Independent Auditor 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 and Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in these reports, which are dated March 20, 2015, should be considered in conjunction with this management letter. Prior Audit Findings 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. Official Title and Legal Authority Section 10.554(1)(i)4., 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 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. Other Matters Section 10.554(1)(i)2., 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)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 17 Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Orlando, Florida March 20, 2015 18 uuu III" B e �e ,, Report of Independent Accountant on Compliance With Local Government Investment Policies To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida: Report on Compliance We have examined the Monroe County, Florida Tax Collector (the "Tax Collector") compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2014. Management is responsible for the Tax Collector's compliance with those requirements. Our responsibility is to express an opinion on the Tax Collector's compliance based on our examination. Scope Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Tax Collector's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector's compliance with specified requirements. Opinion In our opinion, the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. Orlando, Florida March 20, 2015 19