Fiscal Year 2005 MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Financial Statements
For the Year Ended
September 30, 2005
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Table of Contents
Page
Independent Auditors' Report..................................................................................................... 2 - 3
BASIC FINANCIAL STATEMENTS
Balance Sheet - General Fund 4
Statement of Revenues, Expenditures and Changes in
Fund Balances - General Fund 5
Notes to Financial Statements 6 - 9
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual -
General Fund o 10
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report 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....................................................................................11 - 12
Independent Auditors' Management Letter_______________ ................................................ ........13 - 14
INDEPENDENT AUDITORS' REPORT
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the accompanying financial statements of the major fund of the Monroe
County, Florida Property Appraiser (the "Property Appraiser"), as of and for the year ended
September 30, 2005, which collectively comprise the Property Appraiser's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the Property Appraiser's management. Our responsibility is to express an opinion 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 includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
As discussed in Note 1, the accompanying financial statements were prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, and are not intended to be a complete presentation
of the financial position of Monroe County, Florida, and the results of its operations and the cash
flows of its proprietary funds in conformity with accounting principles generally accepted in the
United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the major fund of the Property Appraiser as of September 30, 2005, and
the changes in its financial position for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
January 12, 2006 on our consideration of the Property Appraiser's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of
the 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 and should be considered in assessing the results of our audit.
2
The budgetary comparison schedule on page 10 is not a required part of the basic financial
statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted primarily of
inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and we express
no opinion on it.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
LL.
West Palm Beach, Florida
January 12, 2006
3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Balance Sheet
General Fund
September 30, 2005
Assets
Cash and cash equivalents $ 409,243
Total assets $ 409,243
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 45,762
Accrued wages and benefits payable 43,287
Due to Board of County Commissioners 258,709
Due to other governmental units 61,485
Total liabilities 409,243
Fund balance -
Total liabilities and fund balance 409,243
The notes to the financial statements 4
are an integral part of this statement.
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund
Year Ended September 30, 2005
Revenues:
Charges for services
Board of County Commisioners $ 2,646,493
Other taxing districts 628,968
Investment income 10,509
Miscellaneous 7,725
Total revenues 3,293,695
Expenditures:
Current:
Personnel services 2,249,241
Operating expenditures 591,818
Capital outlay 132,442
Total expenditures 2,973,501
Other financing uses:
Transfers to Board of County Commissioners (258,709)
Transfers to other governmental units 61,485 J,
Total other financing uses (320,194)
Excess of revenues over expenditures
Fund balance, beginning of year
Fund balance, end of year
The notes to the financial statements 5
are an integral part of this statement.
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
of to Financial Statements
Year Ended September 30, 2005
Note I ®Summary of significant accounting policies
Reporting Entity— The Monroe County, Florida Property Appraiser (the "Property Appraiser")
is a separately elected county official established pursuant tote Constitution oft State of
Florida. The Property Appraiser'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 Statements No. 14 and No. 39 of
the Governmental Accounting Standards Board (GASB). Although the Property Appraiser'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 Property
Appraiser is reported as a part of the primary government oft County.,
Measurement focus, basis of accounting, and financial statement presentation ® The
Property Appraiser'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-Local
Govemmental Entity Audits, is require the Property Appraiser to only present fund financial
statements.
The General Fund is used to account for all revenues and expenditures applicable to the
general operations oft Property Appraiser., 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 Property Appraiser
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 expenditures is reflected as transfers out
and as liabilities tot 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 Property Appraiser,
Budgetary Requirements — Expenditures are controlled by budget appropriations in
accordance with the 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,
Cash and Cash Equivalents and Investments — The Property Appraiser's cash and cash
equivalents consist of cash on hand and demand deposits,,
Capital Assets — Tangible personal property used in the Property Appraiser'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 office space used in the Property
Appraiser at no charge.
6
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2005
Note 1 ®Summary of significant accounting policies(continued)
Compensated Absences — The Property Appraiser permits employees to accumulate earned
but unused vacation and sick pay benefits. Related long-term obligations amounting to
$157,730 are included in the government-wide financial statements of the County.
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, 2005, the Property Appraiser has demand deposits of$409,243.
Florida Statutes and the Property Appraiser's investment policy authorize 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,
Note 3® Retirement system
Plan Description — The Property Appraiser's employees participate in the Ronda Retirement
System ("FRS"), a multiple-employer cost-sharing defined benefit retirement plan administered
by the Florida Department 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, FWida
Administrative Code. Amendments to the law can be made only by an act of the Florida
Legislature, Benefits are computed on the basis of age, average final compensation, and
service credit. Regular class employees who retire at or after age 62 with 6 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 for each year of credited
service. Vested employees with less than 30 years of service may retire before age 62 and
receive reduced retirement benefits. Special risk class employees (sworn law enforcement
officers, firefighters, and correctional officers) who retire at or after age 55 with 6 years of
credited service, or with 25 year of service regardless of age, are entitled to a retirement
benefit payable monthly for life equal to 3% of their final average compensation for each year of
credited service. A post-employment health insurance subsidy is also provided to eligible
retired employees through the FRS in accordance with Ronda Statutes,
7
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2005
Note 3® Retirement system (continued)
Effective July 1, 1998, the Legislature established a Deferred Retirement Option Program
("'DROP"). This program allows eligible employees to defer receipt of monthly retirement benefit
payments it continuing employment with a Florida Retirement System employer for a period
not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the
Florida Retirement System Trust Fund and accrue interest.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information fort FRS. The latest available report
may be obtained by writing tot State of Florida Division of Retirement, Department of
Management Services, 2639 North Monroe Street, Building C, Tallahassee, Florida 32299-1560
or accessing their Internet site at www.frs.state.fl.us.
Funding Policy — The FRS is noncontributory for members. Governmental employers are
required to make contributions tote FRS based on statewide contribution rates. The
contribution rates by job class at September 30, 2005 were as follows� regular, 7,83%; special
risk, 18,53%1 special risk administrative support, 9.92%; county elected officers, 15,23%; senior
management, 10.45%; and DROP participants, 9,33%. During the fiscal year ended September
30, 2005, the Property Appraiser contributed to the Plan an amount equal to 6.8% of covered
payroll. Property Appraiser contributions to the FRS fort fiscal years ended September 30,
2003 through 2005 were $105,142, $135,035, and $152,603, respectively, is were equal to
the required contributions for each fiscal year. The Property Appraiser 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,
Note 4—Risk management
The Property Appraiser is exposed to various risks of loss related to tort; the of, damage to,
and destruction of assets; errors and omissions,- injuries to employees-, and natural disasters.
The Property Appraiser participates in the coverage provided by the Board for Workees
Compensation, Group Insurance, and is Management internal service funds. Under these
programs, Workers Compensation provides $1,000,000 coverage per claim for regular
employees. Risk Management has a $5,000,000 excess insurance policy for general liability
claims with a $100,000 self insured retention, and building property damage is covered for the
actual cost of the buildings with a deductible between $100,000 and $250,000, 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 oft past three years. The Property
Appraiser makes payments to the Workers Compensation, Group Insurance and is
Management Funds based on estimates oft amounts needed to pay for and current year
claims.
8
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Notes to Financial Statements
Year Ended September 30, 2005
Note 5 -Commitments
Operating Leases — The Property Appraiser has entered into noncancelable lease
commitments for office equipment. Total lease expenditures amounted to $32,550 during the
year ended September 30, 2005. The following is a schedule by years of minimum future
obligations under the leases:
2006 $ 17,558
2007 14,268
2008 10,890
2009 6,942
2010 3,372
Total $ 53,030
Note 6—Litigation
The Property Appraiser is a defendant in various lawsuits and is involved in other disputes
wherein substantial amounts are claimed. In the opinion of the Property Appraiser, these suits
and claims should not result in judgments or settlements, which, in aggregate, would have a
material effect on the Property Appraiser's financial position.
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REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
PROPERTY APPRAISER
Schedule of Revenues and Expenditures
Budget and Actual-General Fund
Year Ended September 30, 2005
General Fund
Variance with
Final Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Board of County Commisioners $2,689,316 $2,646,493 $2,646,493 $
Other taxing districts 584,702 628,968 628,968
Investment income - - 10,509 10,509
Misceflaneous - - 7,725 7,725
Total revenues 3,274,018 3,275,461 3,293,695 18,234
Expenditure:
Current:
Personnel services 2,255,472 2,404,064 2,249,241 154,823
Operating expenditures 792,964 645,815 591,818 53,997
Capital outlay 225,582 225,582 132,442 93,140
Total expenditures 3,274,018 3,275,461 2,973,501 301,960
Other financing uses:
Transfers to Board of County Commissioners - - (258,709) (258,709)
Transfers to other governmental units - - (61,485) 61,485
Total other financing uses - - (320,194) (320,194)
Excess of revenues over expenditures - -
and balance, beginning of year
Fund balance,end of year $ $ $
10
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
INDEPENDENT IT T ON INTERNAL T L OVER FINANCIAL
REPORTING COMPLIANCE T AUDIT
F FINANCIAL STATEMENTS PERFORMEDIN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the financial statements of the major fund of the Monroe County, Florida
Property Appraiser (the "Property Appraiser") as of and for the year ended September 30, 2005,
which collectively comprise the Property Appraiser's basic financial statements, and have
issued our report thereon dated January 12, 2006 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. 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 Reporting
In planning and performing our audit, we considered the Property Appraiser's internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements 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 financial statements 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 financial reporting and its operations that
we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser'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.
11
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
a &V -. �L
® L P.
West Palm Beach, Florida
January 12, 2006
12
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Ervin A. Higgs,
Property Appraiser of Monroe County, Florida:
We have audited the financial statements of the Monroe County, Florida Property Appraiser(the
"Property Appraiser"), as of and for the year ended September 30, 2005, which collectively
comprise the Property Appraiser's basic financial statements, and have issued our report
thereon dated January 12, 2006 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.
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. We have issued
our Independent Auditors' Report 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, dated January 12, 2006, and it should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General. Those rules (Section 10.554(1)(h)1) require that we address in the management
letter, if not already addressed in the auditors' report on internal control, compliance and other
matters, whether or not corrective actions have been taken to address significant findings and
recommendations made in the preceding annual financial audit report. There were no
recommendations in the preceding year's annual financial audit report.
The Rules of the Auditor General (Section 10.554(1)(h)2) state that a management letter shall
have a statement as to whether or not the Property Appraiser complied with Section 218.415,
Florida Statutes, regarding the investment of public funds. In connection with our audit of the
financial statements of the Property Appraiser, the results of our tests did not indicate that the
Property Appraiser was in noncompliance with Section 218.415 regarding the investment of
public funds.
The Rules of the Auditor General (Section 10.554(1)(h)3) require disclosure in the management
letter of any recommendations to improve the Property Appraiser's financial management,
accounting procedures and internal controls. There were no recommendations in connection
with the fiscal 2005 financial statement audit.
13
The Rules of the Auditor General (Section 10.554(1)(h)4) require disclosure in the management
letter of the following matters if not already addressed in the auditors' reports on compliance
and internal controls: (1) violations of laws, rules, regulations, and contractual provisions that
have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper
or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (4) failures to properly record financial transactions; and (5) other
inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the
attention of, the auditor. There were no such matters noted.
The Rules of the Auditor General (Section 10.554(1)(h)5) also require that the name or official
title and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The Property Appraiser is a separately elected county official established pursuant
to the Constitution of the State of Florida. There are no component units related to the Property
Appraiser.
This report is intended solely for the information and use of management, the State of Florida
Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
West Palm Beach, Florida
January 12, 2006
14