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Fiscal Year 2005 OOE COUNTY, FLORIDA PASSENGER FACILITY CHARGES Schedule of Passenger Facility Charge Receipts and Expenditures For the Year Ended September 30, 2005 MONROE COUNTY, FLORIDA PASSENGER FACILITY CHARGES Table of Contents Page Independent Auditors' Report---------------- ----------------------------------------- 2 Schedule of Passenger Facility Charge Receipts and Expenditures_____________________________________ 3 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Schedule of Passenger Facility Charge Receipts and Expenditures Performed in Accordance with Government Auditing Standards------------------------------------------------------------------------------------ 4 - 5 Independent Auditors' Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program and on Internal Controls over Compliance----------------------------------------------------------------------------------------- 6 - 7 Schedule of Findings and Questioned Costs__________________________________________--------------------------------- 8 Summary Schedule of Prior Year Findings-___------------------------------------------------------------------------- 9 INDEPENDENT AUDITORS' REPORT To the Honorable Mayor an Surd of County Commissioners of oniroe County, Florida We have audited the accompanying Schedule of Passenger Facility Charge Receipts and Expenditures (the "Schedule") of Monroe County„ Florida (the "County") for the year ended September 30, 2005. The Schedule is the responsibility of the County's management, Our responsibility is to express an opinion on the Schedule based on our audit. e 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 Goveminent 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 Schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Schedule. An audit also 'includes assessing the accounting principles used n significant estimates made by management as well as evaluating the overall presentation of the Scheduler We believe that our audit provides a reasonable basis for our opinion. The accompanying Schedule was prepared forte purpose of complying with the Rules and Regulations of the Federal Aviation Administration relative to Passenger Facility Charges and is not intended to be a complete presentation of the County's airport revenues, receipts, expenditures, or expenses. As described on the Schedule„ the Schedule was prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In our opinion, the Schedule referred to above presents fairly„ in all material respects, the activity of the Passenger Facility Charge cash receipts and related expenditures of Monroe County„ Florida, forte year ended September 30, 2005, on the basis of accounting described on the schedule. This report is intended solely for the information and use of the County Mayor, Board of County Commissioners and management of Monroe County, Florida, and the Federal Aviation Administration„ and is not intended to be, and should not be, used by anyone other than these specified parties, t • s r West Palm Beach, Florida February 1 , 2006 2 MONROE COUNTY, FLORIDA PASSENGER FACILITY CHARGES Schedule Of Passenger Facility Charge Receipts and Expenditures For the Year, Ended September 3O. 2OO5 Passenger facility charge receipts available for approved projects, beginning Ofyear $ 2.479,093 Amounts collected and includible OO quarterly reports 1.072,925 Interest income 51,598 Total passenger facility charge receipts available 3.803.818 Expenditures paid (364,685) Passenger facility charge receipts available for approved projects, end Ofyear 3238931 BASIS OF ACCOUNTING The above information includes all passenger facility charge receipts and expenditures for Monroe Countv, Florida. The Schedule was prepared on the cash basis of accounting. Under this bosis, cash receipts are recognized as revenues when monies are received and expenditures are recognized when paid. 3 1 1 a i R � INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE SCHEDULE OF PASSENGER FACILITY CHARGE RECEIPTS AND EXPENDITURES PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Board of County Commissioners of Monroe County„ Florida We have audited the Schedule of Passenger Facility Charge Receipts and Expenditures (the "Schedule") of Monroe County, Florida for the year ended September 30, 2005 and have issued our report dated February 13, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing standards, issued by the Comptroller General of the United States, Internal Control Over Financial_f3e orti g In planning and performing our auditor, we considered Monroe County„ Florida's internal control over financial reporting in order to determine our auditing procedures forte purpose of expressing our opinion on the Schedule and not to provide assurance on the internal control over financial reporting. Our consideration of the Internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the Schedule being audited may occur and not be detected within in a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operations that we consider o be material weaknesses. Corry„ fi.pncq and Other Matters As part of obtaining reasonable assurance about whether Monroe County, Florida's Schedule is free of material misstatement„ we performed tests of its compliance with certain provisions of the Passenger Facility Charge Audit Guide for Public; Agencies, noncompliance with which could have a direct and material effect on the determination of the Schedule. 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. This report is intended solely for the information and use of the County Mayor, the Board of County Commissioners and management of Monroe County, Florida, and the Federal Aviation Administration, and is not intended to be, and should not be, used by anyone other than these specified parties. West Palm Beach, Florida February 13, 2006 5 s INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM AND ON INTERNAL CONTROLS OVER COMPLIANCE To the Honorable Mayor and Board) of County Commissioners o Monroe County, Florida omlirnc We have audited the compliance of Monroe County, Florida (the "County") with the compliance� requirements described in the Passenger ,Facility Charge Audit Guide, for Public Agencies, issued by the Federal Aviation Administration (the "Guide"), for its passenger facility charge program for the year ended September 30, 2005. Compliance with the requirements of laws and regulations applicable to its passenger facility charge program is the responsibility of the County's managements Our responsibility is to express an opinion on the County's compliance based on our audit. e 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, Our audit does not provide a legal determination on the County's compliance with those requirements. In our opinion, the County complied in all material respects, with the requirements referred to above that are applicable to its passenger facility charge program for the year ended September 30, 2005. Internal Control Over_ � nce The management of the County is responsible for establishing and maintaining effective internal control over compliance with requirements of laws and regulations applicable to the passenger facility charge program.. In planning and performing the audit, we considered the County's internal control over compliance with requirements that could have a directand material effect on the passenger facility charge program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internall control over compliance in accordance with the Guide, Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws and regulations caused by error or fraud that would be material in relation to the passenger facility charge program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operations that we consider to be material weaknesses. This report is intended solely for the information and use of the County Mayor, the Board of County Commissioners and management of Monroe County, Florida, and the Federal Aviation Administration, and is not intended to be, and should not be, used by anyone other than these specified parties. West Palm Beach, Florida February 13, 2006 7 MONROE COUNTY, FLORIDA PASSENGER FACILITY CHARGES Schedule of Findings and Questioned Costs Passenger Facility Charge Program For the Year Ended September 30, 2005 F�aqqgD_g_e_rE_aP �qme__Pro_armn Internal control over passenger facility charge program: • Material weakness(es) identified Yes ...........................x.................. No • Reportable condition(s) identified that are not considered to be material weaknesses Yes No Noncompliance material to passenger facility charge program ......­MX.............................I No Type of auditors' report issued on compliance for passenger facility charge program- Unqualified Any audit findings disclosed .........................................................lies x_­ No 8 MONROE COUNTY, FLORIDA PASSENGER FACILITY CHARGES Summary Schedule of Prior Year Findings Passenger Facility Charge Program For the Year Ended September 30, 2005 There were no audit findings in the prior year. 9