Fiscal Year 2021 MONROE COUNTY, FLORIDA
REPORTS ON SCHEDULE OF PASSENGER
FACILITY CHARGES AND ON COMPLIANCE AND
INTERNAL CONTROL
As of and for the Year Ended September 30, 2021
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MONROE COUNTY, FLORIDA
TABLE OF CONTENTS
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..................................................................1-2
Report of Independent Auditor on Compliance for Passenger Facility Charge Program
And on Internal Control over Compliance Required by the Passenger Facility
Charge Audit Guide for Public Agencies.......................................................................................................3-4
Schedule of Findings and Questioned Costs Passenger Facility Charges ......................................................5-6
CorrectiveAction Plan..........................................................................................................................................7
Schedule of Passenger Facility Charge Revenues and Expenditures................................................................8
Summary Schedule of Prior Year Findings..........................................................................................................9
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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 Mayor and Board of County Commissioners
Monroe County, Florida
We have audited, in accordance with the 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 governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of Monroe County, Florida (the "County"), as of and for the year ended September 30, 2021, and the
related notes to the financial statements, which collectively comprise the County's basic financial statements,
and have issued our report thereon dated March 31, 2022 for the purpose of compliance with Section 281.39(2),
Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local Government Entity Audits.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County's internal control
over financial reporting ("internal control") as a basis for designing 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 County's internal control over financial reporting. Accordingly,
we do not express an opinion on the effectiveness of the County's internal control over financial reporting.
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 combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the County'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 and therefore, material weaknesses or significant deficiencies may exist that have not
been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule
of findings and questioned costs as item 2021-001 that we consider to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County'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 financial statements.
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.
Monroe County, Florida's Response to Findings
Monroe County, Florida's response to the finding identified in our audit is described in the accompanying
schedule of findings and questioned costs. Monroe County, Florida's response was not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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 result of that testing, and not to provide an opinion on the effectiveness of the County'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 County's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
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Tampa, Florida
March 31, 2022
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Report of Independent Auditor on Compliance for Passenger Facility Charge
Program and on Internal Control over Compliance Required by the
Passenger Facility Charge Audit Guide for Public Agencies
To the Honorable Mayor and Board of County Commissioners
Monroe County, Florida
Report on Compliance for the Passenger Facility Charge Program
We have audited Monroe County, Florida's (the "County") compliance with the types of compliance
requirements described in the Passenger Facility Charge Audit Guide for Public Agencies (the "Guide") issued
by the Federal Aviation Administration (the "FAA") that could have a direct and material effect on the County's
passenger facility charge program for the year ended September 30, 2021.
Management's Responsibility
Management is responsible for compliance with the requirements of federal statutes, regulations, and the terms
and conditions of its passenger facility charge program.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for the County's passenger facility charge program
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and the Guide. Those standards and the Guide require that we plan and perform
the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on the passenger facility charge
program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with
those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the passenger facility
charge program. However, our audit does not provide a legal determination of the County's compliance.
Opinion on the Passenger Facility Charge Program
In our opinion, the County complied, in all material respects, with the types of compliance requirements referred
to above that could have a direct and material effect on the passenger facility charge program for the year
ended September 30, 2021.
Report on Internal Control over Compliance
Management of the County is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our audit of
compliance, we considered the County's internal control over compliance with the types of requirements that
could have a direct and material effect on the passenger facility charge program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance
for the passenger facility charge program and to test and report on internal control over compliance in
accordance with the Guide, but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of the passenger facility
charge program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of the passenger facility charge program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of the passenger facility charge program that is less severe than a material weakness
in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant
deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have
not been identified.
Report on Schedule of Passenger Facility Charges Required by the Guide
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the
County, as of and for the year ended September 30, 2021, and the related notes to the financial statements,
which collectively comprise the County's basic financial statements. We issued our report thereon dated
March 31, 2022, which contained unmodified opinions on those financial statements. Our audit was conducted
for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of
passenger facility charges is presented for purposes of additional analysis as required by the Guide and is not a
required part of the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. The information has been subjected to the auditing procedures applied in the audit of the
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 auditing standards
generally accepted in the United States of America. In our opinion, the schedule of passenger facility charges is
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Guide.
Accordingly, this report is not suitable for any other purpose.
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Tampa, Florida
March 31, 2022
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MONROE COUNTY, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
PASSENGER FACILITY CHARGES
YEAR ENDED SEPTEMBER 30, 2021
Part I. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? X yes _no
• Significant deficiency(ies) identified that is
not considered to be material weakness _yes X none reported
Noncompliance material to financial statements noted _yes X no
Passenger Facility Charges
Internal control over passenger facility charges:
■ Material weakness(es) identified? _yes X no
■ Significant deficiency(ies) identified that is
not considered to be material weakness _yes X none reported
Noncompliance material to passenger facility charges _yes X no
Does noncompliance warrant qualifying audit opinion
for the major program? _yes X no
Nonmaterial noncompliance _yes X no
Type of auditor's report issued on compliance for
passenger facility charges: Unmodified
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MONROE COUNTY, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
PASSENGER FACILITY CHARGES
YEAR ENDED SEPTEMBER 30, 2021
Part II. Financial Statement Findings
Finding 2021-001 Material Weakness in Internal Control over Construction-in-Progress Recognition
Criteria: The County is responsible for establishing and maintaining internal controls over financial reporting
including distinguishing period expenses from construction in progress (capital asset) additions.
Condition: During the year ended September 30, 2020, the County added $7,381,343 of expenditures as
construction in progress for capital projects even though the County did not acquire title upon completion of
construction. During fiscal year 2021, another $4,598,794 of such expenditures were recorded in construction in
progress prior to the County realizing that such costs should be expensed, after which the County corrected the
error.
Effect.To restate capital assets and net position as of September 30, 2020 resulting in a reduction of previously
reported capital assets and net position in the amount $7,381,343. The 2021 recording error of$4,598,794 was
corrected during the fiscal year.
Cause: Management determined that a previous policy to capitalize certain costs related to capital outlays
whether or not the County would retain the title to the asset upon completion of construction, was in error.
However, once management realized this incorrect accounting treatment, corrective action was taken.
Recommendation:We recommend that the County revise the capitalization policy over capital assets to ensure
that only expenditures related to capital projects owned by the County are included as construction in progress
and other items are expensed in the proper period.
Management's Response:We agree with the finding.
Part III. Passenger Facility Charge Program Findings and Questioned Costs
None reported
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G,,I COURr,C
°A Kevin Madok, CPA
. .......b,�' Clerk of the Circuit Court& Comptroller— Monroe County Florida
�RoE GOUNSy a J 1
CORRECTIVE ACTION PLAN
Material Weakness
Finding 2021-001 —Material Weakness in Internal Control over Construction-in-Progress
Recognition
Name of Contact Person: Pam Radloff, Finance Director
Corrective Action: The County revised its policy so capital outlays that result in the County not
having title to the completed project will be expensed annually rather than classified as
construction in progress. In addition, the County updated its construction in progress schedule so
staff are asked to review whether the County will be acquiring the asset's title upon completion of
construction. The revised schedule requires the preparer to expense, rather than capitalize, the
capital outlay if the answer to this question is no.
Proposed Completion Date: Immediately
KEY WEST MARATHON PLANTATION KEY PK/ROTH BUILDING
500 Whitehead Street 3117 Overseas Highway 88820 Overseas Highway 50 High Point Road
Key West,Florida 33040 Marathon,Florida 33050 Plantation Key,Florida 33070 Plantation Key,Florida 33070
305-294-4641 305-289-6027 305-852-7145 305-852-7145
MONROE COUNTY, FLORIDA
SCHEDULE OF PASSENGER FACILITY CHARGE REVENUES AND EXPENDITURES
KEY WEST INTERNATIONAL AIRPORT
YEAR ENDED SEPTEMBER 30, 2021 AND
EACH QUARTER DURING THE YEAR ENDED SEPTEMBER 30, 2021
Quarter Ended
December 31, March 30, June 30, September 30, Year Ended
2020 2021 2021 2021 September 30,2021
Revenues:
Receipts' $ 358,088 $ 558,787 $ 926,967 $ 804,990 $ 2,648,832
Investment income 1,249 1,451 2,448 3,159 8,307
Total Revenues 359,337 560,238 929,415 808,149 2,657,139
Expenditures:
Application#17
Noise insulation program(NIP)-Design&construction 41,300 - - - 41,300
Access road-Design&construction 32,867 77,710 7,947 44,645 163,169
Total Application#17 74,167 77,710 7,947 44,645 204,469
Application#18
Baggage handling system upgrades phase 2 255,145 - - - 255,145
Replacement of existing chiller-construction 123,717 - 123,717
Rehabilitate terminal customs facility phase 3-
Construction and additional design costs 381,301 - 600,654 - 981,955
Environmental assessment taxiway&apron extensions 206,489 105,269 - 51,881 363,639
Rehabilitate taxiway&taxiway A Lighting-
lighting-design and construction 47,719 75,992 98,469 - 222,180
Terminal expansion design phase 1 17,030 - - 17,030
Terminal departure area modifications-construction 563,308 196,046 196,293 955,647
Total Application#18 1,594,709 377,307 895,416 51,881 2,919,313
Total Expenditures 1,668,876 455,017 903,363 96,526 3,123,782
Net PFC Inflows(Outflows) $ (1,309,539) $ 105,221 $ 26,052 $ 711,623 $ (466,643)
Revenues received and expenditures spent on approved projects in the schedule above agree to the Passenger Facility Charge
Quarterly Status Reports(PFC Reports)submitted by Monroe County to the Federal Aviation Administration(FAA).
1 PFC revenues are shown on this schedule when the cash is received(cash basis).
Note 1-Basis of presentation
The accompanying schedule was prepared for the purpose of complying with the Rules and Regulations of the
Federal Aviation Administration relative to the Passenger Facility Charge Program and is not intended to be a
complete presentation of the County's airport revenues, receipts, expenditures, or expenses.
Passenger Facility Charge revenue is recorded when received rather than when earned and expenses are
recorded when paid rather than when the obligation is incurred. Investments and investment income are
recorded on the modified accrual basis and investments are valued at amortized cost.
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MONROE COUNTY, FLORIDA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
YEAR ENDED SEPTEMBER 30, 2021
Part IV. Prior Year Audit Findings
None reported.
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