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Fiscal Year 2005 MONROE COUNTY, FLORIDA Schedule of Activity of the Landfill Closure and Long-Term Care Escrow Account For the Year Ended September 30, 2005 MONROE COUNTY, FLORIDA Table ofContents Page Independent Auditors' Report----------------------------------------------------------------------------------------------------------------- 1 FINANCIAL STATEMENTS Schedule of Activity Of the Landfill Closure and Long-Term Care Escrow /\coount 2 Notes k} Schedule Of Activity Of the Landfill Closure and Long-Term Care INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Board of County Commissioners of Monroe County, Florida: e have audited the accompanying Schedule of Activity of the Landfill Closure and Long-Ter Care Escrow Account (Schedule) of the Monroe County, Florida Municipal Service District Waste Fund for the year ended September 30, 2005. This Schedule is the responsibility of the Fund°s managementOur responsibility is to express an opinion on this Schedule based on our audit. e conducted our audit in accordance with auditing standards generally accepted in the United States of America, Those standards require that we plana 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 and significant estimates made by management, as well as evaluating the overall Schedule presentation. We believe that our audit provides a reasonable basis for our opinion. As more fully described in Note 2, the accompanying Schedule was prepared on the basis o cash receipts and Gash disbursements, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America, for the purpose of complying with Section 2-70 .630 of the Florida Administrative Code. The Schedule referred to above presents only cash receipts and cashdisbursements of the Landfill Closure and Long-Term Care Escrow Account and is not intended to present fairly the financial position and results of operations of the Monroe County„ Florida Municipal Service District Waste Fund in conformity with accounting principles generally accepted in the United Mates of America. In our opinion, the Schedule referred to above presents fairly, in all material respects, the activity of the Landfill Closure and Long-Term Care Escrow Account of the Monroe County, Florida Municipal Service District Waste Fund, for the year ended September 30, 2005, on the basis of accounting described in Note 2. This report is intended solely for the information and use of the management, the County Mayor and the Boardof County Commissioners of Monroe County, Florida, and the State of Florida Department of Environmental Protection and is not intended to be andshould not be used by anyone other than these specified parties. West Palm each, Florida February 7, 2006 1 MONROE COUNTY, FLORIDA Schedule of Activity of the Landfill Closure and Long-Term Care Escrow Account Year Ended September 30, 2005 Balance, September 30, 2004 $ 1,662,096 Plus deposits: Interest income 46,075 Balance, September 30, 2005 $ 1,708,171 The notes to the financial statements 2 are an integral 1part of this statement. MONROE COUNTY, FLORIDA Notes to Schedule of Activity oft e Landfill Closure and Long-Term Care Escrow Account Year Ended September 30, 2005 ) Deporting Entity Monroe County, Florida (County) is a Non-Charter County established under the Constitution and the laws of the State of Florida.. It is governed by an elected Board of County Commissioners (Board) which is governed by State statutes and regulations. In addition to the members of the Board, there are five elected constitutional officers: the Clerk of the Circuit Court, Sheriff, Tax Collector, Property ,appraiser, and the Supervisor of Elections„ Summary of significant accounting policies Basis of Accounting The Landfill Closure and Long-Term Care Escrow account (Escrow Account) was established to comply with the escrow requirements of Section 2-701.630 of the Florida Administrative Code ("'Section 2-701..630"), This rule requires the County to have sufficient funds on deposit in an interest-bearing escrow account for the purpose of funding the estimated landfill closure coast oft e County"s landfill. The balance and activity of the Escrow Account is presented and reported within the County°s Municipal Service District Waste Fund. The Schedule of Activity of the Landfill Closure and Long-Term Care Escrow Account is presented on the basis of cash receipts and cash disbursements, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America and is only intended to present the balance segregated forte purpose of complying with Section 2-701 ohm Landfill Operating Status The landfill capacity of the County"s previously operated landfills, which include Cudjoe Key, Long Key, n Largo, are 100% used and have no remaining landfill life. Closure ofthese landfills was substantially completed during the year ended September 30, 1994. The County also has a landfill site at Cud)oe Key which has never been used and which the County doses not presently intend to use. 3 MONROE COUNTY, FLORIDA Notes to Schedule of Activity of the Landfill Closure and Long-Term Care Escrow Account Year Ended September,30, 2005 c) Landfill Management Escrow Account The County established a separate investment account for landfill management escrow in fiscal year 1996. The escrow, which is (part of the Board's cash and investments, is caicullated based on estimates made anni.jaHy by a registered professional engineer. The Code requires that the escrow be funded for closing costs on a straight-line basis over the design life of the permitted portion of the landfiH and for one year's long-term care costs beginning one year prior to closure. Since the County has no intention to operate the unused landfill, its closure costs were fully funded in 1996. At September 30, 2005„ the escrow balance was based on the following calculation-, Cudjoe Key Long IKey Key Largo Landfill Landfill Landfill Total Estimated post closure costs, beginning of year $ 1,433,618 $ 136,514 $ 83,319 $ 1,,653,451 Change in estimate 15,517 2,730 1,666 19,913 Estlmated post ciosure costs, end of year $ 1,449,135 $ 139,244 $ 84,985 $ 1,6731,364 I andfiH management Escrow cash $ 1,483,942 $ 139,244 $ 84,985 $ 1,708,171 4