Loading...
Fiscal Year 2019 MONROECOUNTY,FLORIDA TAXCOLLECTOR FINANCIALSTATEMENTS As of and for the Year Ended September 30, 2019 And Reports of Independent Auditor MONROECOUNTY,FLORIDA TAXCOLLECTOR TABLEOFCONTENTS REPORTOFINDEPENDENTAUDITOR .................................................................................................. 2-3 FINANCIALSTATEMENTS 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 ..................................................................................................................... 7-13 REQUIREDSUPPLEMENTARYINFORMATION Schedule of Revenues and Expenditures - Budget and Actual - General Fund ............................................................................................................................................... 14 OTHERSUPPLEMENTARYINFORMATION Agency Fund Descriptions .............................................................................................................................. 15 Combining Statement of Changes in Assets and Liabilities - All Agency Funds ......................................................................................................................................... 16 SUPPLEMENTARYREPORTS 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 ........................................................... 17-18 Independent AuditorÓs Management Letter ............................................................................................... 19-20 Report of Independent Accountant on Compliance with Local Government Investment Policies ...................................................................................................................................... 21 ReportofIndependentAuditor To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida ReportontheFinancialStatements 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 ÐTax CollectorÑ) as of and for the year ended September 30, 2019, and the related notes to financial statements as listed in the table of contents. ağƓğŭĻƒĻƓƷ͸ƭResponsibilityfortheFinancialStatements 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 financial statements that are free from material misstatement, whether due to fraud or error. !ǒķźƷƚƩ͸ƭResponsibility 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 from 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 auditorÓs 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 CollectorÓs 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 CollectorÓs 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 the major fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2019, and the respective changes in financial position thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. EmphasisofMatter 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, 2019, and the changes in its financial position for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. OtherMatters RequiredSupplementaryInformation Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents 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 managementÓs 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. SupplementaryandOtherInformation Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Tax CollectorÓs 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 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. OtherReportingRequiredby GovernmentAuditingStandards In accordance with Government Auditing Standards, we have also issued our report dated February 18, 2020 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 CollectorÓs internal control over financial reporting and compliance. Orlando, Florida February 18, 2020 3 FINANCIALSTATEMENTS MONROECOUNTY,FLORIDA TAXCOLLECTOR BALANCESHEET GENERALFUND SEPTEMBER30,2019 ASSETS Cash and cash equivalents$ 4,575,699 Due from Board of County Commissioners 1,259 Due from other governments 5,455 Total Assets$ 4,582,413 LIABILITIESANDFUNDBALANCE Liabilities: Accounts payable$ 415,344 Accrued wages and benefits payable145,841 Due to Board of County Commissioners3,706,838 Due to other governmental units314,390 Total Liabilities 4,582,413 Fund Balance - Total Liabilities and Fund Balance$ 4,582,413 The accompanying notes to the financial statements are an integral part of this statement. MONROECOUNTY,FLORIDA TAXCOLLECTOR STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE GENERALFUND YEARENDEDSEPTEMBER30,2019 Revenues: Charges for services$ 2,655,200 Intergovernmental - Board of County Commissioners6,418,223 Total Revenue 9,073,423 Expenditures: General government: Personnel services 3,346,399 Operating and capital outlay expenditures 1,705,796 Total Expenditures 5,052,195 Excess of Revenues over Expenditures 4,021,228 Other Financing Uses: Transfers to Board of County Commissioners (3,706,838) Transfers to other governmental units (314,390) Total Other Financing Uses (4,021,228) 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 MONROECOUNTY,FLORIDA TAXCOLLECTOR STATEMENTOFFIDUCIARYASSETSANDLIABILITIES AGENCYFUNDS SEPTEMBER30,2019 ASSETS Cash and cash equivalents$ 7,208,052 Due from individuals 13,397 Total Assets$ 7,221,449 LIABILITIES Undistributed collections$ 7,161,554 Due to individuals 59,895 Total Liabilities$ 7,221,449 The accompanying notes to the financial statements are an integral part of this statement. MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteЊΓbğƷǒƩĻofoperationsandsummaryofsignificantaccountingpolicies Reporting Entity Î The Monroe County, Florida Tax Collector (the ÐTax CollectorÑ) is a separately elected county official established pursuant to the Constitution of the state of Florida. The Tax CollectorÓs financial statements do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the ÐCountyÑ) taken as a whole. The financial statements of the Tax Collector have been prepared in accordance with accounting principles and reporting guidelines established by the Governmental Accounting Standards Board (ÐGASBÑ). Entity status for financial reporting purposes is governed by Statement No. 14, as amended. Although the Tax CollectorÓs Office is operationally autonomous from the County, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, under GASB guidelines, the Tax Collector is reported as a part of the primary government of Monroe County, Florida. Description of Funds Î The accounting records are organized for reporting purposes on the basis of a governmental fund and fiduciary funds. General Fund Î 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 Î 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 Î The Tax CollectorÓs financial statements are prepared for the purpose of complying with Florida Statute Section 218.39(2), and Chapter 10.550, Rules of the Auditor General (the ÐRulesÑ), which requires the Tax Collector to only present fund financial statements. The General 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 ÐBoardÑ) 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 Î 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 MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteЊΓbğƷǒƩĻofoperationsandsummaryofsignificantaccountingpolicies(continued) Cash and Cash Equivalents Î The Tax CollectorÓs 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 Î 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 Î The Tax Collector permits employees to accumulate earned but unused vacation and sick pay benefits. The Tax Collector is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation is accrued in the government-wide financial statements of the County. A summary of activity for the Tax CollectorÓs compensated absences obligation is as follows: Balance, October 1, 2018 $ 168,312 Additions139,152 Deletions(140,721) Balance, September 30, 2019 $ 166,743 Use of Estimates Î The preparation of financial statements requires management to make use of estimates that affect reported amounts. Actual results could differ from estimates. Distribution of Excess Revenues Î Florida Statutes provide that the excess of Tax CollectorÓs fee revenues over expenditures is to be distributed to each governmental agency in the same proportion as the fees paid by the government agency bear to total fee income received by the Tax Collector. The amount of undistributed excess fees at the end of the fiscal year is reported as amounts due to the Board of County Commissioners and other governmental agencies; the transfer of total excess fees are reported as other financing uses. Subsequent Events Î The Tax Collector has evaluated subsequent events through February , 2020, in connection with the preparation of those financial statements, which is the date the financial statements were available to be issued. NoteЋΓ5ĻƦƚƭźƷƭandinvestments The Tax Collector follows Florida Statutes for its investment policy, which authorizes investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, and obligations of the U.S. Government and government agencies unconditionally guaranteed by the U.S. Government. Cash and cash equivalents consist of demand deposits insured by the Federal Deposit Insurance Corporation (FDIC) 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. As of September 30, 2019, the Tax Collector has demand deposits with a carrying amount of $11,772,451, a bank balance of $11,495,508, and petty cash funds of $11,300. 8 MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteЌΓwĻƷźƩĻƒĻƓƷsystem Plan Description: The Tax CollectorÓs employees participate in the Florida Retirement System (ÐFRSÑ). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (ÐPension PlanÑ), and the Retiree Health Insurance Subsidy (ÐHIS PlanÑ). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (ÐInvestment PlanÑ) alternative to the FRS Pension Plan, which is administered by the State Board of Administration. 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 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 OfficersÓ 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% (3.33% for judges and justices) 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 new 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 or 33 years of service regardless of age. Also, the final average compensation for these members is based on the eight highest years of salary. The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and beneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service, with a minimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded by required contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of gross compensation for all active FRS members. In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (ÐDROPÑ). This program allows eligible members 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. There are no required contributions by DROP participants. 9 MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteЌΓwĻƷźƩĻƒĻƓƷsystem(continued) For those members 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 party administrator selected by the State Board of Administration. Employer and employee contributions, including amounts contributed to individual memberÓs accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. The Tax Collector recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the defined contribution plan, and the HIS Plan, amounting to $154,244, $64,235, and $47,048, respectively, for the fiscal year ended September 30, 2019. The Tax CollectorÓs payments for the Pension Plan and the HIS Plan after June 30, 2019, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $41,852 and $11,137, respectively. The Tax Collector is not legally required to and does not accumulate expendable available resources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government-wide financial statements of the County, following requirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions Î an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date Î an amendment of GASB Statement No. 68. Funding Policy: All enrolled members of the FRS Pension Plan are required to contribute 3.0% 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, 2018 through June 30, 2019 and July 1, 2019 through September 30, 2019, respectively, were as follows: regular Î 8.26% and 8.47%; county elected officers Î 48.70% and 48.82%; senior management Î 24.06% and 25.41%; and DROP participants Î 14.03% and 14.60%. During the fiscal year ended September 30, 2019, the Tax Collector contributed to the plan an amount equal to 9.37% of covered payroll. 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, P.O. Box 9000, Tallahassee, Florida 32315-9000. That report may be viewed on the Florida Department of Management Services website located at www.dms.myflorida.com/workforce_operations/retirement/publications. 10 MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteЍΓhƷŷĻƩpostemploymentbenefitsplan(theͻht9.tƌğƓͼΜ In addition to the pension benefits described in Note 3, the Tax Collector offers to its employees a single- employer defined benefit healthcare plan, which is administered by the Board. Florida Statute 112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in the OPEB Plan if the County provides health insurance to its active employees and their eligible dependents. The OPEB Plan provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The OPEB Plan does not issue a publicly available financial report. No assets are accumulated in a trust that meets the criteria as set forth in GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The Board may amend the OPEB Plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. On at least an annual basis, in an open session, and prior to the annual enrollment process, the Board approves the rates for the coming calendar year for the retiree and County contributions Eligibility for postemployment participation in the OPEB Plan is limited to full-time employees of the County, and the Constitutional Officers. An employee who retires as an active participant in the OPEB Plan and was hired on or after October 1, 2001 may continue to participate in the OPEB Plan by paying the monthly premium established annually by the Board. An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS but is not eligible for Medicare, may maintain group health insurance benefits with Monroe County following retirement, provided the retiring employee contributes the amounts shown in the table below. Contribution as Percentage of Annual Actuarial Rate Plan Years of Service with Monroe County Year 25+ 20-24 10-19 (1) 2018 HIS 17% 18% 2019 HIS 18% 26% 2020 HIS 20% 34% 2021 HIS 22% 42% 2022 & Thereafter HIS 25% 50% (1) The new retiree contributions began a five-year phased-in approach beginning January 1, 2018. (2) Participation in the Plan at a cost equal to the FRS Health Insurance Subsidy (HIS) for ten years of service (currently $5 per month for each year of service credit at retirement with a minimum HIS payment of $30 and a maximum HIS payment 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 retireeÓs cost of participation will be based on the preceding table. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. 11 MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteЍΓhƷŷĻƩpostemploymentbenefitsplan(theͻht9.tƌğƓͼΜ(continued) An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS and is eligible for Medicare at the time of retirement or becomes eligible for Medicare following retirement, may maintain group health insurance benefits with Monroe County following retirement, provided the retiring employee contributes the Actuarial Rate for Medicare retirees as determined by the actuarial firm engaged by the County, less a $250 per month County subsidy. Alternatively, retirees meeting these criteria may elect to leave the County health plan and receive a $250 per month payment from the County, payable for the lifetime of the retiree. The Board engages an actuarial firm on a biannual basis to determine the CountyÓs accrued net OPEB liability. The Tax Collector has no responsibility to the OPEB Plan other than to make the periodic payments determined by the Board, which are presented as expenditures when made and amounted to $190,152 for the year ended September 30, 2019. Further information about the OPEB Plan is available in the CountyÓs CAFR which is published on the ClerkÒs website at www.clerk-of-the-court.com. NoteЎΓwźƭƉmanagement 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 WorkersÓ Compensation, Group Insurance, and Risk Management internal service funds. Under these programs, the Workers' Compensation provides $500,000 coverage per claim for regular employees. WorkersÓ Compensation claims in excess of the self-insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention, and building property damage is covered for the actual cost of the buildings with a deductible of $50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Tax Collector makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. NoteЏΓ/ƚƒƒźƷƒĻƓƷƭ Operating Leases Î The Tax Collector leases office space and equipment under operating lease agreements. Total lease payments made in 2019 were $103,774. The following is a schedule by years of future minimum rentals under noncancelable operating leases as of September 30, 2019: YearEndingLease September30Payments 2020$ 59,319 2021 54,656 2022 12,490 2023 9,530 Total$ 135,995 12 MONROECOUNTY,FLORIDA TAXCOLLECTOR NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,2019 NoteАΓ\[źƷźŭğƷźƚƓ 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 BoardÓs 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 CollectorÓs financial position. 13 REQUIREDSUPPLEMENTARYINFORMATION MONROECOUNTY,FLORIDA TAXCOLLECTOR SCHEDULEOFREVENUESANDEXPENDITURES BUDGETANDACTUALGENERALFUND YEARENDEDSEPTEMBER30,2019 GeneralFund Variance OriginalFinalPositive BudgetBudgetActual(Negative) Revenues: Charges for services2,398,200$ 2,398,200$ 2,655,200$ 257,000$ Intergovernmental - Board of County Commissioners4,816,300 4,816,300 6,418,223 1,601,923 Total Revenue7,214,500 7,214,500 9,073,423 1,858,923 Expenditures: General government: Personnel services3,574,434 3,441,822 3,346,399 95,423 Operating and capital outlay expenditures805,522 1,726,653 1,705,796 20,857 Total Expenditures4,379,956 5,168,475 5,052,195 116,280 Excess of Revenues over Expenditures2,834,544 2,046,025 4,021,228 1,975,203 Other Financing Uses: Transfer to Board of County Commissioners(2,834,544) (2,046,025) (3,706,838) (1,660,813) Transfer to other governmental units- - (314,390) (314,390) Total Other Financing Uses(2,834,544) (2,046,025) (4,021,228) (1,975,203) Excess of Revenues over Expenditures and Other Financing Uses-$ -$ -$ -$ 14 OTHERSUPPLEMENTARYINFORMATION MONROECOUNTY,FLORIDA TAXCOLLECTOR AGENCYFUNDDESCRIPTIONS The Combining Statement of Changes in Assets and Liabilities Î 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 Î To account for the collection and distribution of local property tax funds. Licenses Agency Fund Î To account for the collection and distribution of funds generated from the sale of miscellaneous state licenses. MONROECOUNTY,FLORIDA TAXCOLLECTOR COMBININGSTATEMENTOFCHANGESINASSETSANDLIABILITIES ALLAGENCYFUNDS YEARENDEDSEPTEMBER30,2019 BalanceBalance September30,September30, 2018AdditionsDeletions2019 Property Tax Agency Fund Assets Cash and cash equivalents6,739,607$ 335,163,128$ 334,908,616$ 6,994,119$ Due from individuals 1,813 -1,813 - $ 6,741,420$ 335,163,128$ 334,910,429$ 6,994,119 Liabilities Undistributed collections$ 6,641,893$ 326,900,168$ 326,605,626$ 6,936,435 Due to individuals 99,527 8,262,960 8,304,803 57,684 $ 6,741,420$ 335,163,128$ 334,910,429$ 6,994,119 Licenses Agency Fund Assets Cash and cash equivalents$ 250,599$ 15,744,613$ 15,781,279$ 213,933 Due from individuals 10,138 3,259 -13,397 $ 260,737$ 15,747,872$ 15,781,279$ 227,330 Liabilities Undistributed collections$ 258,345$ 15,664,202$ 15,697,428$ 225,119 Due to individuals 2,392 83,670 83,851 2,211 $ 260,737$ 15,747,872$ 15,781,279$ 227,330 Total - All Agency Funds Assets Cash and cash equivalents$ 6,990,206$ 350,907,741$ 350,689,895$ 7,208,052 Due from individuals 11,951 3,259 1,813 13,397 $ 7,002,157$ 350,911,000$ 350,691,708$ 7,221,449 Liabilities Undistributed collections$ 6,900,238$ 342,564,370$ 342,303,054$ 7,161,554 Due to individuals 101,919 8,346,630 8,388,654 59,895 $ 7,002,157$ 350,911,000$ 350,691,708$ 7,221,449 16 SUPPLEMENTARYREPORTS ReportofIndependentAuditoronInternalControloverFinancialReportingandon ComplianceandOtherMattersBasedonanAuditofFinancialStatements PerformedinAccordancewith GovernmentAuditingStandards 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 ÐTax CollectorÑ) as of and for the year ended September 30, 2019, and the related notes to financial statements, and have issued our report thereon dated February 18, 2020 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. InternalControloverFinancialReporting In planning and performing our audit of the financial statements, we considered the Tax CollectorÓs 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 CollectorÓs internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax CollectorÓs 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 CollectorÓs 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. ComplianceandOtherMatters As part of obtaining reasonable assurance about whether the Tax CollectorÓs 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. 17 PurposeofthisReport 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 CollectorÓs 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 CollectorÓs internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida February 18, 2020 18 Independent!ǒķźƷƚƩ͸ƭManagementLetter To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida ReportontheFinancialStatements 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, 2019, and have issued our report thereon dated February 18, 2020. !ǒķźƷƚƩ͸ƭResponsibility 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. OtherReports 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 Standard s 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 February 18, 2020, should be considered in conjunction with this management letter. PriorAuditFindings Section 10.554(1)(i)1., 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. OfficialTitleandLegalAuthority 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 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. FinancialManagement Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. AdditionalMatters Section 10.554(1)(i)3., Rules of the Auditor General, requires that we communicate 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. 19 PurposeofthisLetter 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 February 18, 2020 20 ReportofIndependentAccountantonCompliance withLocalGovernmentInvestmentPolicies To the Honorable Danise D. Henriquez, Tax Collector of Monroe County, Florida We have examined the Monroe County, Florida Tax Collector (the ÐTax CollectorÑ) compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2019. Management of the Tax Collector is responsible for the Tax CollectorÓs compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax CollectorÓs compliance with the specific requirements. In our opinion, the Tax Collector complied, in all material respects, with the local investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2019. The purpose of this report is to comply with the audit requirements of Section 218.415, Florida Statutes, and Rules of the Auditor General. Orlando, Florida February 18, 2020 21